The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1904-02-26
The Governor and
Business Men
Confer.
Why the Banks are Shy
About Advancing
Money.
Assurances of Economy-Extra
Session Menace - What
County Act Means.

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 ]. H. 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; z. I. Spalding, the bank of
Claus Spreckels & Co.; c. II. 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 it
out certain matters with
oafa
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 a meeting of |
bankers it had been decided to cash no |
warrants. until that question was judi |
oially decided, excepting those for sal |
aries the payment of which the Treas
Irer had assured. Another desidera-
Ium was complete statement of the
financial obligations and resources of |
the Government.
Auditor Fisher, at the reference just
made, rendered an immediate state
nent that $4,000, 900 was appropriated /
gainst 100000 of probable revenue, |
making the problem one of saving
million dollars in expenditures.
Governor Carter spoke of the policy
Of economy he was endeavoring to
larry out. saying if 1t was in his power
he Territory would owe less the first
Of next year than it did the first Of
his year. Messrs. Cation and Smith
gave their views, which We're similar
o those of Mr. Spalding, as to settling
he legality of Treasury paper, and Mr..
xepoikai suggested the borrowing of |
$500 TO meet the salaries and pay
oils for the current month. adding
hat Treasury notes could not be issued |
Until April nor paid until November
rhe Governor then proceeded to ex-
plain that the bringing of a test case
vas delayed while he was absent on
account of his inability to communi-
ate by wireless telegraph with Attor-
ley General Andrews when the latter
lad asked for instructions. There was
10 question in his mind about the le-
.ality Of warrants for necessary ex-
lenses" Of the Government, but the
came in constituting the mean
ne of the Organic Acts authorization
f necessary expenses with reference
O particular appropriations.
Mr.. Smith having observed that there
vas so much delay in bringing a test
ase it was a natural inference that
ne was not desired, the Governor re-
lied that it was not q natural infer | I
nee but an Inference drawn.
The Governor introduced the matter ,
f his personal relations with the
treasurer, assuring the meeting that
UGH were of an amiable nature, but he
dded that the public would condemn
i'm if he trusted a man who had once
roken his word to him.
Mr.. Spalding was supported by Mr..
johnson in saying that, though the
anks may have been mistaken as to
ertain of the warrants, until the at
osphere was cleared of haziness the
snks had decided to take none of the
arrants.
Mr.. Lowrey asked if an extra ses-
on of the Legislature would be the
tentative of an adverse judicial de-
sion on appropriations.
Governor Carter assured him it would |
even so, with an interval of chaos J
boot. Then, when Mr. Spalding
,ked him how the passage of the :
ounty act would affect Territorial
1ances, the Governor said it would [
axe matters worse. Under the
,unty Act the Territory had an in 5
me of $685. 900 a month against eX-
.nses of $4,000, while under the eX- =
ting status the income was 100000 | p
Id the expenses 1925, 600
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