The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1907-02-22

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operations. In May, 1906. due to the
change provided by Acts 81 and so Of
the Session Laws of 1905, there went
into the Treasury all OF the specific
taxes for the year and one-haif OF the
property and income taxes, the remain
Ing one-half being paid in November
OF that year. In May of 1907 we viii
again have all of the specific taxes and
one-half OF the property and income
taxes. SO that, taking the two years
June 30, 1907. there will have been coll
lected the equivalent OF two and one
half years property and income taxes.
A SUGGESTION.
Those interested In an enterprise for
profit expect ut the close of certain
periods to enjoy the excess of receipts
over expenditures. This excess IL usu-
ally divided-part paid out In divi-
dends. and part sat aside into accounts
variously designated as capital, reserve,
surplus or undivided profits. The sum
OF these accounts represents additional
permanent improvements or assets.
A government Is not run for profit.
Its accounts do not distinguish between
operating expenses and permanent i'm
provements, This gives to certain tax
payers the idea that, no matter how
much they may contribute, all is found
to be absorbed in salaries and ex-
penses. They do not give credit for
the additional improvements or assets,
as they are not accounted for separ-
ately
This method of government account
ing is defective in that II does not en-
courage saving in operating expenses.
which In private enterprises is stimu-
lated by comparison with previous
results. Often an unexpended balance
in an appropriation, which is purely for
operating expenses, is taken by the
Legislature to mean that the limit set
was evidently to high, and the sue
ceeding appropriation Is made corre-
spondingly smaller. One such expert
ence inclines those who operate your
departments to extravaganza at the
close of the period, in order that 1t
might not be said that they had been
allotted too large an amount. Thus the
public generally has no ocular DEM
onstration OF the results OF economy,
and you will legslate wisely IL you
aim to encourage saving wherever 1t
may be found.
Due to public economy from many
sources throughout the Territory, the
present period will close on June 30,
1907, with a surplus--an excess of
amounts contributed by the taxpayers
over and above the disbursements for
operating expenses and additional i'm
provements.
Therefore, I urge you to adopt a new
method in Its treatment. To follow the
custom of the past. this balance would
be simply carried forward and sunk
mend that 1t be applied by special
ments, thus rewarding economy and
giving an OBJECT lesson to all. permit
sPecihc improvements as gained py the
iesui,s oi economy
Tins pan uoes no, mean that tne
90 90, "ouiu neree'ter uistih
= ISL pe."eeh opeiatii,s eMpehses anu
T., -, en,sn' s,, los oo.n WI pe louha
- - $3.50 NS'''s ~ 49,
neara,oo 80 S,r,aa,a 80 "a, ne ,,, up
nant rrona,,,y -, ,,,o,,a,,.. -,
I rihutes to some torn,h,a daeni,a
nv the taxnavers for anv nar,od L.
thus nut IN good usa
The following calculations will give
the balance that should be available
for this purpose.
FINANCIAL. sTATEntENr
ae ,oo, y" manu- '""e
'V' i'Vo '''''''''.''''''''.''S ''''''io'
o,...,,. , 70 90, 90
'''o''s 'ue we eou'''eS'' 'o'No'.i'
90 -
'oo''o''"
anan aN"''aoie July