The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1905-10-25
GARTER ON
LOAN FUNDS
HE GOVERNOR EXPLAINS HIS POLICY IN A LETTER
TO THE HILO BOARD OF TRADE-SAYS THE LOAN
MONEY SHOULD BE USED FOR IMPROVEMENTS
APPROVED BY SOUND BUSINESS POLICY

Governor Carter yesterday the o Hoard of Trade his
wer to the Boards letter regarding loan appropriations The letter
defines his attitude in allowing loan funds The general policy
stated an entire abandonment OF the policy annuncated in the letter
Treasurer Campbell directing bond of $5oooo and the sub
tuon the Governors judgment Of the policy any
appropriation for the judgment OF the legislature
October 2 1905.
IIio Chamber Of Commerce. IIio Hawaii.
Genemen-Up present have had an opportunity to
reply your letter of Sept 23d, re the bond issue.
peass approval Of the plan Of keeping the debt
ot the Territory at minimum Common would dictate such
course With this hreequarters OF million dollars the Territory
Twill have exhausted fifty of her borrowing capacity will
De paying nearly $500 day interest and this without any provision
yet being made by the Legislature this Indebtedness
During the last session of the Legislature Treasurer Campbell made
1.-THE sale Of public lands be aside for the redemption bonds
$4,000 with which not increased would take some wenour
off debt Such would bind the
such an extent that they made too large sinking fund.- the amount
could be reduced But it did appear either the people of
debt they creating to let poster do the worrying
Many the arguments brought regard ques
OF the work contemplated than the wisdom making expend
iture with borrowed money.
passed which, constitutional would evouonze whole sys
tenn government The Legislature had been through experience
such had been declared unconstitutional they could
not orsee the result of the second and could ae any
with certainty There of necessity change be
transition peodone OF friction and difficulty. For IfI
they had egated the theory that the counties take CHARGE
the entirely county act had declared uncons
tona would have been impossible any all
without special session of the Legislature.
Now the situation has been entirely altered the has been
ed and found constitutional
There plan that the Territory should
build roads and the counties repair and maintain the old
But definition has been laid down what road
work Everybody has different idea in regard to it.
note you, too make distinction between and
old roads and would be much obliged would give mel
definition Of what consider NEW road for kinds
OF arguments presented to me in regard to this question: and often
that the desire for the appropriation mos argument
know shove OF dirt taken of the gutter and thrown on
the road can be considered as new work. is new the sense
that it has been done before.
1t argued during the last session that certain districts with
small population and long distance would require their
road work And there considerable talk the Territory
could be done with any certainty that time and opinion
absolutely necessary that the Legislature should declare just
roads be Territorial roads, Territory
to be responsible for their maintenance well
know OF no authority by which the Executive could settle such
You argue that largely Territorial matters be-
cause the counties outside OF Honolulu have carry
that the Territory should build roads? If all necessary
Legislature should o the revenues as to give the coun
les outside OF Oahu sufficient the work
agree in the argument that until all the means given the
les they entitled to Territorial assistance The trouble
hat Territory and county too much mixed up
You state your letter that would be in line
Pmg county government to place the responsibility the county
Of selecting the specific purposes of county expenditures will
Ing to follow this to the extent OF their but
t before the counties are allowed to borrow they
should in each instance go the Legislature with request
mendaon for the right to issue certain amount of bonds for
The of that county Territory possesses
ponds entirely the that the people will give of
my to the present form OF county government has always
been that did not with the right levy In this
an avagan administration of county not felt by the taxpayers
and does not react against such administration On the other
economical of officials expenditures and relieve
tends to put premium The reply this that the
county act limits the expenditures the income insufficient
erence will show that such limit not be enforced
Returning to the loan bill proper consultation with the Supern
tendent OF Public Works land little influenced by
Cmmendaons have concluded that probably
ignore the casshcaons under islands, contained and
weigh the different appropriations purely from the point of whether
busnesse and sound to borrow for expenditure
and IN general undertake only those works which produce
drec revenue affect the health and the community
addition to buildings for educational purposes my opinion
not right eXpend many of the small appropriations thrown into that
bill sop of the carry this idea of giving
definite proportions each island When the bonds fall due many
such there will be nothing left to show the expenditure
no right to ask postery to for public work building that
viii not be in existence when the bonds mature and thus leave hem