The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1907-02-21

MESSAGE
CONTINUED from Page One.)

he remainder IN november, the IOr-
ner time for the payment of the
whole, has prevented large accumula-
lions of money lying idle in the Treas
Try, has reduced the disturbance here
-ofore caused by its sudden Withdraw
al from circulation, and has increased !
the cash on hand in the Territorial .
Treasury during the months from June |
To November.
Care must be taken not to be misled |
in your calculations by the large |
amount available during the past year,
for in November, 1905, there went into
the Treasury the usual taxes, presum-
ably furnishing the cash for a years
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-half of the
property and income taxes, the remain
ing one-half being paid in November
of that year. In May of 1907 we will
again have all of the specific taxes and
one-haIf of the property and income
taxes. So that, taking the two years
June 80. 1907, there will have been col
lected the equivalent of two and one
half years property and income taxes.
a SUGGESTION.
Those interested in an enterprise for
profit expect at the close of certain
periods to enjoy the excess of receipts
over expenditures. This excess is usu-
ally divided-part paid out in divi-
dends, and part set 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 it does not en-
courage saving in operating expenses,
which in private enterprises is stimu-
lated by a 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 CORE
spondingly smaller. One such expert
ence inclines those who operate your
departments to extravaganza at the
close of the period, in order that il
might not be said that they had beer
allotted too large an amount. Thus the
public generally has no ocular dem
onstration of the results of economy
and you will legislate wisely if you
!, aim to encourage saving wherever il
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 fol
operating expenses and additional i'm
prOVementS.
Therefore. l 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 SUM
into the next period. But [ recon-
mend that it be applied by a specia
bill for specific permanent improve
ments, thus rewarding economy ant
giving an object lesson to all, permit
ting individuals to point out these
II
! results of economy.
This plan does not mean that tbs
government would hereafter distin
guish between operating expenses anC
improvements. for both will be found
in the usual bills for the coming period
but it will give. in a measure, the ap
! pearance of a dividend, and will illus
trate that whoever protects govern
ment property or prevents waste con
tributes to some tangible, definite
! gain. and that the excess contributed
by the taxpayers for any period i
thus put to good use.
The following calculations will Civ
the balance that should be available
for this purpose.
FINANCIAL STATEMENT.
Cash balance on hand June
50, 1906 ACKNOWLEDGEMENTS 5oo'o"l-o
Outstanding warrants -..-S '2,ZZ'.9
Amounts due the counties. 96,259l
$ 16S, 4S71
Balance available July 1,
1906. from present years. loo'S44-Z
Receipts LOT the III
year, six months collected
and six months estimated.
less land sales. .....-..... 'IoZ.o
Less amounts due counties.
including road tax-.... go, loo
1851, 056.2
Total amount available
for nresent wear. 81, 713, 900. 4
Total unexpended Territorial
balances. as shown by Au-
ditor's statement, July l.
D zoos $50, 1865
iOf this it is estimated that
there will be unexpended.' lIo'Voo'V
Net amount of Territorial
expenditures for this
year e. -Si'ff-'A Ae''
In addition to the foregoing, a4lo"
tances must be made as follows:
q ExDapSss of preSent session or III