The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1905-09-15
LIMITS
THE LOAN
Governor Will Borrow
For Roads $780,
600 Only.

Governor Carter has decided to Dor
row only $4,000 of the s1,377 600 loaI
authorized by the last Legislature. Hi.
determination was expressed in a let
/ Executive Chamber.
| Honolulu, Hawaii, Sept. 13, 1905.
IA. j. Campbell, Esq, Treasurer, Terri
tory of Hawaii.
| Dear Sir: After consultations with
you and a number Of other gentlemen,
| propose to lay down the following
policy in relation to the proposed new
loan, as passed by the last Legislature,
which carries appropriations for ST.
81, 100000.
AS you are aware, our Indebtedness
has increased from the sum of $780,
100000 at the time of annexation, until
| it is today 3,137, 10000. Prior to an
nexation, this community carried a
loan as high as $4,000, 10000. While
that was at a higher rate of interest
yet large proportion of our revenues
came from customs receipts-indirect
Observation-Disclosures now our only rev.
enue is from direct taxes.
In the early SOS, under the leader
ship of Hon. S. G. Wilder, this COM
munity cleaned up all this indebted
ness and had a cash balance on hand.
From that time on each succeeding
form of government and Legislature
has added to the debt, so that our peo-
pie have practically never felt the
pinch of not only paying for the main
tenance of the Government, but also
contributing towards the return of the
principal previously borrowed.
10 GxyA cir1o on
nexation We have paid off the paltry
sum of $129, 90 of our bonded in
debtedness out of the proceeds of land
sales. No Legislature has as yet seen
fit to esta blish a sinking fund to meet
our Indebtedness, and the last Legis-
Iature refused to pass an Act making
the proceeds of our land sales and the
revenue from land applicable to our
debt and its interest. 1t ought to be
clear to any thinking man that the
rapidity with which we are accumu-
lating a debt should be checked, if pos
sible. The question arises, is it not
obligatory upon the Administration to
carry out the mandates of the people
expressed through the Legislature?
A casual examination of this Ques-
ton will show that the authority to
issue bonds was established by Act AZ
as from time to time provided for by
the Legislature. A glance at Act Of
the Extra Session of 1905 will show
that the language used in the bill can
not in any sense be considered manda-
tory.
You will remember that at the time
of signing the bill, I sent a message
to the Legislature then in session
stating that the lateness with which /
had received the bill prevented a thor
ough examination. and that had sign
ed it, reserving for later time an ex-
in detail of the items.
One of the causes which led up to
the large appropriations is the desire
De the Representa- ves from each is
and to secure as large an appropria-
ion as possible for their constituents,
md that I fear has in some cases blind
I'd their judgment as to the necessity
'or the appropriation or the need of
borrowing money to carry out the
work. / believe it would be a much
wiser policy for the Legislature to al
ow the various counties in given cases, .
which it has passed upon and approved /;
o issue their own bonds, for then the
espc visibility of payment being entire
Y upon their own shoulders, more eau
ious action and better Judgment would
,e exercised in determining the method
u expenditure.
L think you will agree with me that
n the case before US we should not
necessarily lay down the theory that
10 Territorial loan money should be