The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1892-11-10

at last some fair prospect of a stable
Cabinet ~, it may not be out of
place to submit to your readers some
observations on the policy that the
new Ministry will have to follow. if
they earnestly care for the good of
the country, especially in financial
matters.
THE SITUATION
of the Kingdom is not worse than
that OF many other governments in
TINS era OF universal depression, but
the local effects of the general hard
times will require here more execu
tive ability than ever before. Thus,
the new Minister Of Finance will
find himself very far from being on
a bed of roses. don't know whether
the new incumbent is himself fully
aware of what is awaiting him and
whether he fairly looked out before
leaping into the portfolio; this is
none OF my business. But what I
can say, is that my information
is correct-the whole of the now in
coming taxes, due for the year end
ing on the LIST of July next, is al
ready needed at once to meet the
present outstanding obligations of
the Government, debts and refund
ing Of deposits in the post Office saw
ings bank. With what funds will
the Government hereafter carry out,
not only the necessary improve
ments, but even the ordinary running
expenses, is the first problem that
the new Minister of Finance has to
ponder over. 1t has been consid-
cred in this country that the finance
portfolio was simply sinecure, a
mere ffthwheel, that any Ounce
could fill. We will shortly be made
to realize that it is quite the reverse,
and that to put the Government
matters on right footing, it will
need the skill of our smartest "fnan-
ciers," if we have any here outside
of the banks; and, in my mind, the
most reliable, experienced, intelli-
gent and patriotic Minister of Fin
ance would be Hon. S. M. Damon, if
he were available for public service.
1t seems already conceded by all
parties that
is unavoidable and indispensable,
but that it will require our shrewdest
fnancier to realize this loan advan-
tageously. How about the new in
cumbent The country is certainly
worth the money Of a very large
loan, which would be just as safe as
in the best governed countries; but
it requires more tact than was found
in some of our previous Ministers
to manipulate it successfully, whilst
it will require careful judgment to
properly expend the loan, if it be
obtained, this last depending entirely
on the skill of the Minister and of the
agents he may select. Furthermore,
this is where an intelligent fnancier
will have occasion to show his ability
by taking advantage of the necessity
of the loan, 80 as to unburden our
financial situation generally. This
can be realized by
A CONVERSION, OR MITIGATION
of our Indebtedness, such as all civil
lied countries-England, France,
Italy, Germany, and America herself
have given us examples of at some
period of their history. In all these
Governments, the older loans OBJ
tanned at high interests have been
gradually reduced from 6, 5, per
cent. to 3, and even q. In this coun,
try, our bonded Indebtedness stands
I believe, as follows: $4,000 at II
per cent. $4,000 at 9 per cent.
$1,000 at 7 per cent. S1,o73,9OO at {
per cent. and the balance of the
Postal Savings Bank, say 100000
at 4 per cent. total, S2,S33. 900, fol-
which we pay interests, S155,2O6.
Now a new loan could certainly be
obtained under proper management
but not necessarily In London, be
cause there are other money markets
in the world which might be fennC
more advantageous; and it could bt
realized at 4 or 5 per cent. interest
and yet be quite desirable one fol
foreign investors because, at present
the best Government securities give
only 3 per cent, and the new
consols only q. II such loar
of saw four millions, out of which
S2,S33, 900 to reimburse all the Saving
Bank investments-or as much as /:
necessary-aud to cancel all our pres
emit bonds of every kind (whose re
endorsement the Legislature has til
perfect right to order, before the ex
piration Of their shortest term, jus
as much as any mortgagor has arigh
to pay off his mortgage before tn
end of the stipulated time), thi
would leave S1,167,000 for meetin
the forthcoming necessities Of til
administration and carrying out tn
necessary public improvements; an
this total loan, at 4 per cent. woui
require but S160,000 for interests,
only $4,000 year more than what
now paid. And such loan could a
the more easily be obtained at pre-
eut. as we have q fine feather in on
cap to advertize on, viz: the receI
deepening of the bar, a bona tic
Improvement which doubles the valr
of our harbor. Will the present II
cumbent realize these facts?
EMBARRASSMENT.