The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1896-04-14
Continued Apathy by no Means
Public Economy.
MIR. DILLINGHAMs SUGGESTIONS.
Advocates Reiundine scheme on Terms
Not to be Made Public Figures
Given to Demonstrate the Practical
Side-Too Much Lett to Posterity.

Mn. EDll Oh- L ne puDllC ueDl Is q
matter which concerns ever. taxpayer
in the country.
The rate of interest paid on borrowed
capital by tn Government is not only
an indicator of its financial strength OF
weakness, but il also affects the value
of all property within Its borders.
The higher the rate of interest paid
by the Government the higher must the
rate be fixed for the individual Dor.
rover, and a corresponding deprecia.
ton will be made in the value OF al
property. A government which pays g
higher rate of interest than it ought t
pay loses not only in interest account
but also sustains a reactionary loss in
taxes, through depreciation of all prop.
erty. When money Is scarce and the
rate of interest high, all lines of bust
ness languish and progress IN every de-
partment of the country is slow.
If the country is to make any pro
gress, If the Republic is to be an i'm
provement upon the Monarchial form
of government. some sound financial
policy must be adopted and carried into
effect, by which the sugar industry and
the real estate, other than the homes
of the middle and poorer classes. shall
be taxed at the prescribed rate made by
law-or if the law is at fault it should
at once be so amended that the burden
of taxation should be equalized. If
there is to be inequality tolerated in the
assessment and collection of taxes,
feel sure no honest, manly man will
agree that the heavy end of the burden
should be borne by the professional
men, salaried men, laboring men and
widows and orphans.
All professions administering to the
care and health of the people should
be encouraged and not driven out of the
country by obnoxious and opprt ssive
license fees. A side light has recently
been thrown upon the chief source from
which tax revenue ought TO be de-
rived, revealing the indisputable fact
that if per cent. instead of 1-3 of l
per cent had been collected from that
source the treasury would not be short.
The proposition to consolidate the
debt and reduce the rate of interest
is the other side of the financial prob
lem-quite as important as the current
revenue. Why any man who has given
this question careful thought can op-
pose that measure, and urge that the
debt should be left as it now stands; or
favor the issue of bonds to refund the
debt, at higher rate of interest than
would have to be paid in the cheapest
money market in the world. am at a
loss to understand
If money can be obtained on our
bonds at per cent. or Az per cent, at
par and at no expense, so much the bet
ter for this country. But if expense
must be incurred, let the bonds be
placed at the least possible expense.
even if it should cost 171s per cent,
which is the maximum limit proposed |
by Minister Damon to cover all ex-
lenses connected with the loan, includ- !
ng commissions and discounts.
For the study of those who oppose a
oreign loan on the ground that it will |
possibly cost this country large bonus
which they say is to be saddled onto
'osterity, respectfully invite their at
ention to the following illustration of
ny view of the matter
| am informed that the average rate
t interest on the public debt as it now
lands is 67-16 per cent. Now. to il
lstrate my point, let us suppose, for
that there are two corpora
ions in this city, each with a debt of
5 100000, represented by bonds issued
pom the property owned by them. The
onds in each corporation are held by
My a few of the stockholders. The
me has arrived when the 1920 year !
onds may, at the will of the stock
olders Of each corporation, be called in
nd paid of, or refunded by a new is {
lie if the stockholders can find money
more favorable terms. We will des- I
nate these two corporations as A |
Id B. q
The stockholders of A have a meeting '
Id the question of refunding is dis t
ssed. The few stockholders who hold t
e soft investment in bonds paying Il
average Of 6-17 per cent. oppose s
~ change or attempted change. "as C
Will injure very seriously the credit o
the company, and the suggestion of u
treasurer to pay London syndicate
k Per cent. in expenses, commissions.
G., is simply ruinousp' The stock
lders who have no bonds make a few
ures and are frightened half out of :,
cir wits when they find that 171k per "
Mt on s4,00O.000 is 800, 1000. ITO pay
at amount would ruin us, sure. Oh.
f! Home loan is good enough for us. 81
en- at the present rate; and, too, we b;
mt to keep the interest in the hands 81
the stockholders of the company; we q
ow what we are about" til
Company B holds a meeting. The n,
'asurer makes the following state OF
mt: w
Ten years have expired since the is m
OF our 1920 bonds Though over OF
II or them are held by small mi to