The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1905-12-19
GOV. CARRIERS
FULL REVIEW OF
THE TERRITORY

The greatest change Of the year has
been brought about through the pass
age by the last Legislature OF a county
act, by which there has been subdi-
vision OF various functions OF the gov
eminent through the establishment Of
a county system. The Territory is di-
vided into five counties, but the pow
ers granted are not SO wide or so COM
plete as those usually existing on the
mainland The measure, in way. was
| experimental. not carrying with 1t the
power OF taxation. so that for the pres
ent the situation is unique in that the
work undertaken by these counties is
provided for by allotment of what has
hei etofore been Territorial income.
The Territory's finances are in excel
lent condition. and the great reduction
made in expenditures during the special
session Of the Legislature In 1904 is now
being appreciated.
The fiscal year ended June 30, 1906,
shows a most favorable balance, and
| for the second time since annexation
the expenditures have been kept Cith-
in the income. Another very important
change is that the tendency that has
developed of overdrawing or exceeding
appropriations made by the Legislature
has been checked; this, It is stated Is
due to good judgment displayed by the
| Legislature and better methods adopted
by heads of departments.
The assessed value of taxable prop
erty on January /, 1904, was $l23, sos ,5O4,
divided as follows: Real estate, $63,-
\ 5l6,S79; personal property, $50, ,3Sl ,525,
while the assessable value of the prop
| erty on January /, 1906 was, real es-
tate, S67 500 ,036. personal property, S66.-
4l5,O64, aggregating S133, ,924 100, show
ing an increase over the previous year
of s1O.02j596 The total revenues of the
Territory, including a cash balance on
July /. 1904, of $56.613.29, aggregated s2,-
All 1861 on the 3Oth of June, 1905. The
total disbursements during that period
amounted to $2,9SS ,O57.1O. leaving a net
current Indebtedness July /, 1905, of
! S57s63O.79.
During the twelve months covered by
the report it is stated that the cur
rent receipts of the Territory have eX-
ceeded the obligations incurred during
that period by $50, ,S499l and, figuring on
a conservative basis that the floating
Indebtedness of $576,6SO.7 outstanding
period will all be paid during the pres
ent year, it is believed that on June
80, 1906, there will be cash balance in
the treasury.
In this connection, the Governor
states, it is but just to Hawaii to point
out that since annexation the contri'
buttons made by this Territory to the
Federal Government from customs rev
enues alone have amounted to s6,O59,'
171.51. This is more than half as mucf
again as the entire debt of the Repub-
lie of Hawaii which the United States
assumed at that time. Considering
that the area Of the Territory is only
6640 square miles, occupied by l55,OOC
people, 1t is difficult to realize how Ha-
wall has been able to stand such
strain upon it's resources Under these
circumstances the people urge thell
claims for liberal appropriations FOL
public buildings, improvement of har
/, bors, and for lighthouses as being just
Any improvements requested in the IN
, terest of harbors and lighthouses arr
for the benefit of the American navy
, and American commerce as much al
, for the islands, which are becoming
more and more an important factor II
the growing development of trans-Pa
cific trade.
The bonded indebtedness of the Ter
ritory on June 30, 1904, was s21s5,OOO
During the past year this was further
increased by the sale of one thousan'
4 1-2 per cent $1,000 bonds at a premium
of one tenth of l per cent. and decreas
, ed by the payment of 5 per cent. bonds
amounting to $4,000. thus making
{ total of the bonded Indebtedness of tn
) Territory OF $S,l37,00O an amount no
exceeding 1-2 per cent. of the taxabl
: property of the Territory.
, Under the legislative power provide'
by section 55 of the organic act, n
debt of the Territory can be author
{ lied except to pay the interest upo
: the existing Indebtedness, to suppress
insurrection, or to provide for the com
mon defense. except that, in addition I
any Indebtedness created for such pur
, poses, the Legislature may authoriz
} loans by the Territory for the erection
of penal, charitable, and educationa
institutions, and for public buildings
n wharfs, roads, harbors, and other pub
lie improvements. The total OF sue
indebtedness is restricted to per cen
s of the assessed value of the taXabi
d property, and for such loans no bon
|. or other instrument of any such In
J. debtedness can be issued unless mad
y redeemable in not more than FIVE year
|. and payable in not more than fiftee
years from the date of the issue there
4 of; nor shall any such bond or II
a debtedness be incurred until approve
K by the President of the United State
: The limitation as to the length
7 time for which bonds can be issued ha
a the Governor states, greatly hampers
o. the Territory. One class of investo
~ does not desire a bond OF so short
!, term as fifteen years, and there a
!, ways win be considerable expense
"a the Territory in making provision
:. refund its Indebtedness. on the 9th
y, hand, another class of investors prefe
-, a bond where n sinking fund is esta
~ lished for the redemption OF certa
- percentage every year, To meet sue
=, the more modern system is to issue
" bond redeemable any time after o
~ year and payable before twenty yea
providing that 5 per cent OF the iss
re shall be redeemed each year, II W