The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1905-02-16
SELECTIONS FROM THE MESSAGE

bc we'll to 1dopt the Federal system of
reuuHug 900 license fees to Doe paid ON
the nrst day of July. and that iu is-
suing them the first payment should
be- propurtioucd To- the uuexpired term
of the year 10 July LIST following l}y
such 60 plan the revenue can be rec
ceiycd at period of the year when
, the funds in the Treasury are likely
to be lowest 1t would have other adj
ditonal advantages and would be Of
some convenience to the public.
While the Organic Act limits our Dor
rowing capacity to seven per cent of
the taxable property within the Terri
tory and we are atill within this limit,
and while it may be said that our pres
ent Indebtedness is not yet as great as
| that carried by this community prior to
anneXa ton, yet it does not seem to me
unwise to sound a note of warning and
call your attention to changed condi-
| tons that, i'm time of financial depres-
| sion, might exert an unfortunate infu-
ence on Hawaii
! First, under the old regime, the bur
| den of local government was relieved
! by tariff and postal revenues; now, the
! income from these sources has been di-
! verified.
! Second. In former times, the bulk of
! our indebtedness was carried within
! the community itself. There was only
"a small outflow of interest. At present,
we must be prepared to send abroad
each year the sum of $685. 100 90
! in payment of Interest," in addition to
which there is usually paid some $685.
| 100000 for interest charges within the
| Territory. Thus o Ter one-twentieth of
our whole revenue is already consumed
| i'm the liquidation of interest, more than
one dollar per capita of our population.
Third. We must not forget that our
former bonded Indebtedness was paid
by the United States of America and
| that this community has not yet eXpe-
rienced the burden of maintaining rs
current expenditures, interest on its
debt and, at the same time attempt
ing to raise sufficient revenue to make
payments upon the principal.
Our Islands, comparatively speaking,
! are well developed. There are no great
areas unoccupied and there is no as
surance that at the end of fifteen
years, our taxable wealth will have
| sufficiently increased in value to allow
for further borrowing or that our posi-
ton will be proportionately better than
it is today
In the readjustment of our affairs,
following the surrender of customs du-
ties in order to obtain public improve
ments the pressure to borrow has been
very great; but of the two millions of
/ indphtpHnagg Of
authorized by the last Legislature, only
thirty-eight per cent was for the crea-
ton of revenue-producing property.
We inherited, in the organization of
this Territory, much property and a
small debt. Will not posterity charge
us with poor management if we do not
bequeath to it property, the value of
| which, in proportion to the debt we
leave, will be greater than that which
was entrusted to us? But if we could
show that, from the debt we have in
Cured, we have created improvements,
the revenue from which will in time
pay back the cost, then, beyond doubt,
our action would be commended.
1t is a maxim that every community
must either progress or retrograde. AL
ready our community is burdGnad by
taxation eXcelled or equalled by few.
| This does not justify us in leaving TO
| posterity a burden greatly increased by
the payment of interest, and also the
necessity of providing for the principal.
l recommend that the bonded indebt-
edness be not increased, in the coming
biennial period, above the amount of
$5OO,OOO.O year, and that it's proceeds
be applied, as far as possible, to those
improvements which will produce rev.
enue. Suggestions for loan appropri-
alton bill will be presented for your
! consideration.
Inc underlying principle of our law,
in taxing real property, is that the
! actual market cash value at which the
! property can be sold is a fair, just and
equitable value on which to assess the
| proportion due the Government for all
those benefits it gives in return, among
them the right of the individual to have
and to hold property.
| Accustomed, as are our taxpayers NV
long usage, to the existing system OF
| valuation, | hesitate to recommend any
change, particularly as our people are
remarkable in their willingness to SUP.
port the Government by the prompt
payment of all taxes. l venture the as.
sertion, without fear of contradiction
that no other community in the Union
be 1t city, county, Territory or State
can show, in proportion to it's popula.
ton, so small a ratio of appeals and de.
hnquencies with such high valuations
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