The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1905-10-27

bonds for specific purposes.
The amount of means that the
county or the Territory possesses de.
pends entirely on the amount that the
people will give them. One of my op-
jections to the present form of county
government has always been that II
did not carry with It the right to levy
a tax. In this way an extravagant
administration of county is not felt
by the taxpayers and does not react
against such an administration. On
the other hand, an economical set of
officials who reduce the expenditures
and relieve the taxpayers receive no
credit for such a course. This, to my
mind, tends to put a premium on ex-
travagance. The reply to this, that
the county act limits the expenditures
to the income, is insufficient, as expert
ence will show that such limit can
not be enforced.
Returning to the loan Dill proper,
in consultation with the Superintend-
ent of Public Works (and not little
influenced by your own recommenda-
tions), I have concluded that it is
probably a sounder course to ignore
the classifications under Islands, as
contained in Act 6, and weigh the diff
ferent appropriations purely from the
point of whether 1t is businesslike and
sound to borrow money for such an ex-
penditure, and in a general way under
take only those works which produce
direct revenue or affect the health
and commerce of the community, in
addition to buildings for educational
purposes. In my opinion, 1t is not
right to expend many of the small ap-
preparations thrown into that bill as a
sop to several of the districts or to
carry out this idea of giving definite
proportions to each island. When the
bonds fall due, in many such cases
there will be nothing left to show the
expenditure. We have no right to ask
posterity to pay for any public work
or building that will not be in exist
ence when the bonds mature, and thus
leave them to pay for something the
use of which they will not enjoy.
In 1898 the inhabitants of these
Islands wiped out their last public OBJ.
legation and were free from all debt
Afterwards, the theory of public
debt was justified only for such
projects the revenue from which would
not only pay the interest but finally
the principal. From this we have
digressed until the Legislature has ac-
tually appropriated money out Of the
loan fund to buy so perishable an arti-
Gle as road machinery; in other words,
this community has gotten to point
where they appropriate loan money to
exc out what they ought to pay out of
their own pockets. It is very easy to
borrow where you have credit, but
when you borrow it has to be paid
back, and our children will groan and
complain when it becomes necessary
Gas it surely willy to increase the
taxes in order to pay the interest and
principal of our debt. The former
debt was paid by annexation, and
from that experience it would seem
that we still trust in some such Incl
dent to again come to our relief.
If the readjustment I have indi-
Gated be carried out in the present
loan of $3.50, 100000, it can be made to
include the Hilo Sewer System, $15,-
10000, and the Hilo High School, $780,
10000, provided we leave out the pur-
chase of Pauoa Water, which is, of
course, a direct revenue producing
item and would, If we followed our
definition strictly, come within the
items to be expended, but in order to
keep within that limit this item of
Ss0,000.00 must be left out. In doing
this, I certainly expect the admins.
tration to receive the hearty support
of the Hilo Chamber of Commerce.
Very sincerely yours,
(Signed) G.. R. CARTER,
Governor.
BOARD OF TRADE LETTER.
The letter from the Hilo Board of
Trade, which drew forth the Cover
nor's response, is as follows:
HILO CHAMBER OF COMMERCE.
Hilo, Hawaii, Sept 23 1905.
To His Excellency George r. Carter,
Governor of the Territory of Hawaii,
Honolulu, L. H.
Sir, This letter is written al the in