The Hawaiian gazette., 1903-12-01
Ayers Hair vigor
THE LOAN FUND.
1.-THE omc,al and Commercial Record.

1.-THE Onicial and Commercial Record.1
The disposition of the loan fund is
one Of the earliest questions which will
have to be decided by the new terri
torial administration. One million dol
lars has been borrowed. Interest is be-
ing paid thereon and the sooner the
money can be put in circulation and
begin to bring some return, the better.
Governor Carter has expressed doubts
as to whether certain of the appropria-
tions to be paid out of the loan fund
are proper, on the ground that they
are purely local in character, and
should therefore be paid by the several
counties and not by the territorial
treasury.
Involved in this doubt are the au-
preparations for the Honolulu sewerage
system and the extension Of the water
works.
Both of these objects are vital to
the health and progress of Honolulu.
So vital are they, that the Record sug-
gests to Governor Carter that before
deciding the matter he take the advice
not only of the Attorney General but
of some of the other leading LAWYERS
Of the city.
The question involved Is largely that
of the legal power of the Legislature to
appropriate money for local purposes.
The following suggestions are pre-
sented as food for thought in this con-
nection:
Whatever may be the case after the
county governments are in existence,
there does not seem as yet to be any
Limitation upon the power of the legis-
lature to appropriate, which would in
validate the appropriations mentioned.
From time immemorial Hawaii has
had but one central government and
one appropriating power. The terrific
rial legislature possessed, and still pos
sesses all of the powers, in this respect,
that belonged to the legislature under
the Monarchy, the Provisional Govern
ment or the Republic of Hawaii, sub
Ject only to the restrictions of the Or
ganic Act, which is silent upon the
point in question.
Until some law is passed repeating
this power or otherwise depriving the
legislature thereof, it will continue to
possess it.
No such law has been enacted.
A Dill has been passed by the leeis-
lature attempting to provide for several
county governments, which will have
subordinate and limited powers of APP
propriation.-
such governments are not yet in ex-
istence however. They may never
come into existence. One important
portion of the law has already been
pronounced invalid by the courts. The
rest of it may follow the same course.
Even after the county governments
come into existence, there is a grave
question whether there Is anything in
the law preventing the territorial legis-
lature from thereafter continuing to
vote money for local objects AS a
matter of policy 1t may not be done.
AS a matter of power there does not
seem, In. the absence of law prohibit
ing IT, to be any reason why the Ha-
waiian legislature cannot appropriate
money for sewer in Honolulu, with
equal propriety with the appropriation
by Congress to deepen the creek at
Spodunk or build a breakwater at
Whatever the outcome of that prob
lem however, the question of national
Or state-territorial or county RESPONSE
olllty or power, is not involved in the
under the loan bill.
These appropriations We're made by
the legislature when 1t was the SUI
preme and only appropriating power.
1t had the power to make appropria-
ions, to be expended within two years.
IL mas acted within that power. The
TWO years will not expire until July /,
1905.
The fact that preliminary steps have
been taken to establish county govern
nents does not deprive the legislature
II any power or jurisdiction heretofore
Even II the county act contained the
specific clause that the legislature
'ould not appropriate money for local
purposes, and II contains no such
'lause, such provision would not be
binding. for no Legislature has any
lower to enact or law which shall bind
is successor
The next legislature can repeal the
county law. amend 1t or pass laws in
consistent Herewith; and such laws, IL
o passed will to the extent to which
hey go. supersede the county law.
In other words, the territorial legis-
AZURE Is still subject always to the
over OF Congress-the Supreme law
making and consequently appropriate
ng power in the territory.
It's appropriations under the loan Act
re therefore valid.