The herald., 1895-01-27
HERALDs SUNDAY MoRN1gG. JANUARY q 1885,
THE HAWAIIAN BONO STORY
Minister Thurston Talks Of
Island Finance.
The Government Can Borrow for
Only Two Purposes.
A TO sejt,ng Bords fer Twenty i've
Cents on the DoiiEr sths Mins-
ter Says IL Is Bosh.

WASHINGTON. Jan. %. -Ministsr
Thurston was seen to-day relative to the
statement that the Hawaiian govern
msnt was selling honda in this country
at 20 cents on the dollar for the purp ose
ofinduencing feeling in favor OF annexa-
alton. Mr.. Thuraton made the follow
ing statement:
There ia no more possibility OF euch
thing being done by the Hawaiian
government than by the United States
governments. BY law the Hawaiian
government can borrow money for tw o
pnrporss only. viz: First, TO pay post-
al SAVINGS bank depositors in case the
treasury is unable to meet the demand {;
ascnd, Tor the purpose of constructing
certain public improvements. such as
war vessels, roads, bridges. hsrbors and
public buildings which, together with
the amounts to be spent for each, are
spscehed in the several acts authorizing
the loans. So far from being in trouble
concerning financial matters. the pro-
vieional government WAS. and the re-
public is now, stronger in that DEPART
ment than in any other. The continu-
GUS balance in ths treasury has ranged
from $4,000 to 100000.
THE LAW FoRBIDs 1T.
IF it were true that the Royalists
had not paid their taxes, it would make
no appreciabls difference to the treas
ury. as the amount which they pay is
very small. As q matter of fact, how
ever, the ROyslists have nearly all paid
their taxes, ths delinquents being no
greater in number or amount than usual.
GAS to selling bonds in this country
at rs cents on the dollar, there is not a
shadow of truth in either part OF the
statement In the frat place the several
loan acts prohibit the issue OF bonds at
less than 80 cents on the dollar, and in
the second plscs the government has
sold no bonds in this country, as it has
borrowed all the money it nseded in
Honolulu at aud 6 per csut. The
bonds being sold over the treasury
counter for par, no discount or commits
sion wss paid or allowed to anyone.
THE net increese of the debt for the
fiscal year enning March 81. 1894, was
5000, 298. all of which was expended on
the public works. Not only has the
government not been obliged to borrow
money for its current expenses, but it
had such large surplus on hand from
current receipts that it advanced from
the current receipts in the treasury to
the loan fund accounts the sum of $685.
493, which was expended ON the speci.
fed public works and also met run OF
over $500, 900 on the postal savings bank.
At the end OF the period new deposits
had reduced the amount 80 advanced
from current receipts to the postal say
ing bank to $2l9. 4Q2.
A FINANCIAL SHOWING.
1.-THE new financial result of the
period may be summarized ns follows:
The government has paid all current
expenses; has built public works au-
thorizsd by the several losn acts TO the
amaunt OF $3.50 900, for which it bor-
rowed in round numbers only 5000, 900,
the remaining sum being furnished from |
current receipts, and paid all bonds and |
treasury notes maturing during the !
period, amounting to 1886 1000; has paid
all maturing interest on bonds, amount.
ing to 1919 600; has repaid to postal
savings bank depositore the sum OF $780,
600; has deposited, sinking fund to
meet bonds maturing in the future OF
the sum of $24, IT'S. and closed the period
with 1910, 229 in the treasury.
"The government is now installing a
pumping plant and additional water
mains in Honolulu to the amount of |
about $500 All of the pipe and
machinery we're bought in this country. |
1t is also building a seres of Hharves |
from 800 to 800 feet in length, TO accom-
MEDIATE the large steamers now running |
TO Australia and Japan"