The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1904-02-26
TERRITORIAL
FINANCES
The Governor and
Business Men
Confer.

According to the arrangement an
nounced in that days Advertiser, the
Governor held a conference at the ex-
ecutive. chamber yesterday morning
with the following named business
men, Treasurer A. n. Kepoikai and
Auditor j. II. Fisher taking part:
f. j. Lowrey and Jas. f. Morgan,
representing the Chamber of Com
merce; Geo. w. Smith, Robert Cation
and Jas. Wakefield, the Merchants As
ISOLATION; T.. I. Spalding, the bank of
Claus Spreckels e Co.. C. H. Cooke, the
Bank of Hawaii, and NJ. P. Robinson,
the First National Bank.
Treasury statements were laid be-
fore the meeting and, having obtained
the views of the business men, Gov
ernor Carter decided to call another
conference later at which fuller state
ments will be presented and the Gov
ernment's line of action in Territorial
financing more particularly defined
than was practicable on this occasion.
Mr.. Spalding having referred to the
situation as being Serious" and the
Governor asking him to explain the
word, went on to speak of depression
of business which was aggravated by
doubts respecting certain Government
securities. He thought the admins
tration ought to cease referring the re-
sponsibility to the Legislature, while 1t
Strengthened out certain matters with
in executive control Reference was
made to the borrowing of money on
Treasury notes, of which the legality
was not assured. The only reliance
of the banks was in the good faith and
ability of the Treasurer to take the
notes up when due. To this was now
added the dubious position of Treas
ury warrants under appropriations of
last Legislature. At meeting of
bankers 1t had been decided to cash no
warrants, until that question was judi
cially decided, excepting those for sal
aries the payment of which the Treas
urer had assured. Another desidera-
tum was a complete statement of the
financial obligations and resources of
the Government.
Auditor Fisher, at the reference just
made, rendered an immediate state
ment that $4,000 was appropriated
against s3,6OO,0OO of probable revenue,
making the problem one Of saving a
million dollars in expenditures.
Governor Carter spoke of the policy
of economy he was endeavoring to
carry out, saying if it was in his power
the Territory would owe less the first
of next year than it did the first Of
this year. Messrs. Cation and Smith
gave their views, which were similar
to those of Mr.. Spaldng, as to settling
the legality Of Treasury paper, and Mr..
kepoikai suggested the borrowing Of
Sl5O,0O0 to meet the salaries and pay
rolls for the current month, adding
that Treasury notes could not be issued
until April nor paid until November.
The Governor then proceeded to ex-
plain that the bringing of a test case
was delayed while he was absent on
account of his inability to communi-
cate by wireless telegraph with Attor-
ney General Andrews when the latter
had asked for instructions. There was
no question in his mind about the le-
gality of warrants for necessary ex-
penses" of the Government, but the
difficulty came in constituting the mean
ing of the Organic Acts authorization
of necessary expenses with reference
to particular appropriations.
Mr.. Smith having observed that there
was so much delay in bringing test
case it was a natural inference that
one was not desired, the Governor re-
piled that it was not a natural infer
ence but an inference drawn.
The Governor introduced the matter
| of his personal relations with the
Treasurer, assuring the meeting that
such were of an amiable nature, but he
added that the public would condemn
him If he trusted man who had once
broken his word to him.
Mr.. Spalding was supported by Mr..
| Robinson in saying that, though the
banks may have been mistaken as to
certain of the warrants, until the at
| mosphere was cleared of haziness the
banks had decided to take none of the
warrants.
Mr., Lowrey asked IL an extra ses-
sion of the Legislature would be the
alternative of an adverse judicial de-
cision on appropriations.
Governor Carter assured him it would
be even so, with an interval of chaos
to boot. Then, when Mr.. Spalding
asked him how the passage of the
County Act would affect Territorial
finances, the Governor said it would
make matters worse. Under the
County Act the Territory had an in
come of $4,000 month against ex-
penses of $4,000, while under the ex-
listing status the income was 100000
and the expenses $225,0OO.