The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1903-09-18
BOOMS
OUR BONDS
TELLS THE SAN FRANCISCO PEG
PIE ALL ABOUT OUR LOAN
FUND AND HIS TRIP EAST.

The Chronicle of September has the .
following concerning Secretary George
Carter:
George X. Carter, Territorial Secre-
tary of Hawaii, arrived from the ISL
ands yesterday EN- route to Wash
ington and New YORK. on business con- 9
nected with the recent territorial bC:Id
issue. He will go from here direct
to Washington to call on President
Roosevelt, whose approval of the bond
issue is necessary before the securities
can be placed on the market. If the
issue is approved by the President,
Secretary carter will then go to New
York and arrange for the sale.
THE loan bill passed by the last
Legislature" saI~ Secretary Carter
last evening, provided for the tssu-
ance of $2,ov0,0UO of bonds for public
improvements. OF this amount, how
ever, only $1,zOU,000 can be issued dur
ing the present fiscal year, owing to
a regulation in the organic act OF the
Territory which PROHIBITS 1ne issuance
of bonds in excess of l per cent of the
total tax list of the Territory for each
year. The assessed valuation of prop
erty in the islands this year is Sl2Z,-
0OO, goo, so we Will only be able 10 issue
about $4,000 of bonds before July
next. The remainder of the y-,jOO,OUO
OF bonds, or so much as may be law
fully issued as determined by the next
assessment, will be placed on the mar
keC next year. The loan appropriation
bill passed by the Legislature specifies
how the money shall be expended.
There is one item of 100000 for new
roads, designed for che opening up of
new country. Another Item is one
Of 100000, for public buildings, lnclud-
ing school buildings, a new territorial
insane asylum and a new territorial
penitentiary. Congress failed to make
any appropriation for harbor improve
| ments IN the islands, so we nave maze
| provision in the oonu issue Tor the
expenditure of 500 vOU for the building
of new wharves and the deepening or
the harbor Of Honolulu. The present
depth of thirty feet is Insufficient to
permit some of the larger steamships
now afloat and building TO enter the
harbor with safety, ana we propose to
| dredge the harpor to a depth OF thirty
four feet. Part of the proceeds from
the bond issue will be used to complete
the sewer systems OF Honolulu and
| Hilo.
I'VE have been waiting patiently
for four years for an opportunity u
raise money for public improvements
in the islands. When the islands were
annexed we were deprived of our Gus
toms revenues, which amounted to
SlOJ,OOO month, as wei as our postal
receipts, which aggregated a nice sum.
Ihls compelled the Territorial gov
| eminent to run along on a depleted
treasury and scant revenues. The
first Legislature, which was doml-
mated by the Home Rulers, failed 10
pass d loan bill. The last Legislature,
however, which was overwhelmingly
X q IN lif4nr hos u.
bond issue, and we now nope to Je
able, shortly to undertake many much
needed public improvements Trere
is only one possible obstacle that
stands in our way. The bonds which
we are preparing to offer are short
term securities. They are redeemable
at the expiration of nVe years, as pro
vided in the organic act of the Terri
| tory, and there may be some difficulty
IN hnding a purchaser or purchasers
Tor the securities on that account.
snail go first to Washington to see
what action the President has taken
in regard to the approval of the bond
issue, and when the approval of the
President is obtatded l shall go to
New York and arrange for floating the
bonds. The Territory may not legally
dispose of the bonds for less than 9S,
and 1t remains to be seen whether the
securities can be sod at that figure
Ii not, we will have to ask Congress
to amend the law so as to grant the
Territory more latitude in the issuance
of bonds.
so far as L have been able to ascer-
tain no other Territory or municipality
is restricted to the issuance of five
year bonds, and we regard this restric-
ton as hardship. The bonds may
n 70 int F,,,
years in the discretion of the Terri
tory, but the fac :. that they are re-
deemable at the expiration of five
years is likely t. operate to our dis
advantage in marketing them at a
good figure"
Another matter that will demand
some of Secretary Carter's attention
during his stay in Washington is the
disposition of an unpaid balance OF
$4,000 in the Congressional appropria-
ton for the settlement of the accounts
of the Hawaiian Postal Savings Bank.
The United States Government agreed
to pay all dePositors in the Postal say
ings Bank, amounting to about $3.50, 000
when the islands were annexed, and
warrants in favor of the depositors
were drawn on the Treasury and sent
to Honolulu for distribution. Secretary
Carter says thai about 20oo depositors
have failed to appear and procure
their warrants. Their deposits are in
small amounts, the total amounting
to about $4,000. They were mostly Chi
nese, japanese and Portuguese, and
all are supposed 20 have died or to
have disappeared from the islands
Carter will now endeavor TO have this
amount which remained uncailed for
in the United States Treasury, credited
to the Territory so that it may be used
for other purposes.