The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1903-04-21
THE LOAN BILL.
1.-THE Official aud Commsrcial Record

1.-THE Official and Commercial RecOrd.1
The Legislature is considering a loan
bill. The view point seems to be not
how little we can get along with, but
how much can be borrowed. Members
are fairly tumbling over each other to
suggest objects on which borrowed
money can be spent The limit which
the Organic act permits to betborrowed
has been reached already, fapd passed
by couple of hundred Thousand dol
lars by the Senate alone. The House
has yet to be heard from, and it's repu-
tation for conservatism and modesty is
not such as to warrant the belief that
it will cut the bill down. On the con-
trary it will probably add several hun
bred thousand dollars. The attention
OF the Senate was drawn, during the
debate, to the fact that the amount
being appropriated exceeded the limit
permitted by law. The reply was that
the Governor had power to cut down
the items, and bring the sum total
within the law. This suggestion was
apparently satisfactory, and the piling
on process proceeded again as merrily
as before.
These methods of constructing an ap-
preparation bill are fundamentally
wrong.
In the first place, the mania of bor-
rowing and spending, simply because
the power so to do exists, is begetting
n spirit of extravaganza which will soon
prove disastrous. Whatever is borrowed
must be paid within fifteen years. to-
gether with six per cent. interest there
on.
II the loan is limited to 100000 the
interest thereon at six per cent will
alone amount to s1,SOO,OU0 in fifteen
years. Within fifteen years therefore,
we will have to pay SO 500, 900. or at the
average rate of over $3.50, 900 per annum,
for our 2,OO0,O 900 worth of fun.
This amount must be collected by
taxation. If the evil day Is postponed
by failing to collect this tax in any one
year, then just that much more must
be collected In the succeeding years
For example, If no special levy Is made
during the first five years, with which
to pay the bonded debt, then the aver
age tax for this purpose during the re-
mainder of the term will be at the rate
of sSS0,000 per annum. II we wait for
ten years, the annual contribution re-
quired will be s760,0O0
In view or the fact that we already
have n territorial debt of a couple of
million dollars, the principal and inter-
est of which must be provided for, and
that II halt Is not called, each sue
cessive legislature will continue to APP
propriate the limit. is 1t not about time
that conservative men in and out OF
the Legislature should do some think
ing, and try to put on the brakes?
Another distinctly wrong feature OF
the present program, Is the proposition
TO stun the bill with all kinds of propo-
sitions, amounting in the aggregate to
far more than the legal limit and then
saddling upon the Governor the respon-
sibilty of selecting the items which
shall remain and of vetoing enough
items TO reduce the bill to the amount
allowed by law.
The members OF the Legislature are
the responsible representatives of the
people. They should investigate DELHI
crate and definitely decide upon the
items for which money should be bor-
rowed, and reduce the sum total to
the legal limit. The present method is
n rank abdication of their powers and
duties, in favor of the Governor. This
was never intended by the law and is
confession OF lack OF self control,
tending to show that we are not fitted
to intelligently govern ourselves.
II is fortunate that we have a Gov
ernor who can be depended upon to
eliminate the wild cat schemes. and
hold the bill down 10 objects which will
at least be beneficial.