Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1909-01-20

lmean anything. If It does not mean
anything, 1t is harmless to STRIKE IL
out. IL II does mean something, ! be-
ilcve that it by all means should be
struck otit,
Relating to Bonds.
The fourth section amends section
10 of the Organic Act relating % bonds
in three respdrt.: 1t does not alter thnt
section In the least as to the amount
Of bonds that may he lss"et in any on"
year or In tho aggregate. winch Is ]
"a err cent. of the assessed value Of Lrnp
erty for one year and per cent. in tn
aggregate. II does not alter certain
other limitations. such as that no bonds
shall be issued except with the APPROX
al of the President, but Il makes three
changes.
In the first place, II removes the
question OF uncertainty as to whether
the Territory may refund bonds issued
since the organization Of Territorial
government. The aci provides that
we may refund existing Indebtedness.
Does the word existing" mean at the
the time the Organic Act was passed
or al the time we wish To refund?
There Is n question Of uncertainty
which has been raised by eminent law.
years. Hitherto we have not been III
?, position TO rerund Guy bonds Issued
since the Establishment Of Territorial
government They have all been
bonds issued previously. Now We are
in position to refund 81 $4,000 OF ~
per cent bonds. II may not he best 10
refund the s3l5 OO0 but to keep those
as bonds 10 he paid on. But we may
, find II desirable to refund the other
81 100000 and save 10000 In interest
, a year. Before the coming biennial
period expires. there will be another
sl,000O0O of AZ per cent bonds to
refund, with perhaps a saving of $40.
600 year more In interest We want
, to remove the uncertainty as to whcth.
, er that can he done or not.
Secondly. this amendment provides
/ that instead Of being required to have
the bonds 5.l5ycar bonds. the Lcgis.
laturc may have greater latitude with
In n period Of thirty years; for in
, stance. our New York lawyers suggest
I that II may be found advisable Instead
Of making the bonds 5.i5.year bonds
to issue bonds portion Of vhlch--that
is, an instalmcnt-- may be PAYABLE In
one year. another installment In two
, years. and so on covering the period
Of thirty years That form of bond
they say, is coming into greater fH"nr
and II may be that when we come to
refund, II will seem best to make the
bonds Of that sort. The aggregate sell
ing price would he practically the
same, because they will pay little
more for the longtime bonds and a
little less for the short.time bonds: but
, It manifests an intention on the part
q Of the Territory TO pay the bonds and
n not simply to let them run the whole
J. period and then refund. II gives tn
i, Legislature little more latitude rs 4,
the time during which the bonds may
y run. Recommendation In this dircc
f, tion were made by Governor Dole an
+, also by Governor Carter-Governo
, Dole going part way and Governor Car
ter n little further. This goes ltt'C
J, further stlll, in consequence OF sugges
: lions by the attorneys.
q Thirdly, this Act provides that thu
i, counties may be permitted to issu
!. bonds without necessarily having tn,
, power OF taxation. Now there is som,
a difference OF opinion as to whether tn
counties should have the power 10 Is
sue bonds. They have II now undo,
"a the Organic Act, but only. accordin
10 the decision Of the Supreme Court
provided they have the power of taxa
:, ton. This amendment leaves II opeu
., to the Legislature. " II Is deemcl
best to permit the counties to issue
:. bonds without tho power of taxation
:, that can be done: at present II can not
, be done without that power. That he
Ing the case. II Is not at all improbable
that the Legislature will give the pow
4, or Of taxation. because there Is /;
!, widespread desire that counties shout
!, be permitted to issue bonds under an
~ propriate limitations. And II Is sim
"a ply question of whether they shout
4 have the power with the power of tax
= alton, or whether Il should he left dis
II cretionary with the Legislature to sa.
n. whether the time Is not vet quite rip
n. to give them the power Of taxation
10 whether that should be postponed witt
< view to developing county govern
" ment only as fast &c II seems wise an
not rushing II too fast.