The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1909-02-17
FREAR'
MESSAGE
,cont,nued frcpl Page Four.

rants.
There is a widespread impression
that the severe cuts in appropriations
at the special session in 1904 resulted
in expunging the then deficit OF near
Nv 500 600 and the accumulation OF a
surplus of more than 100000, and
that the cuts were required only tenn
porarily until that result could be at
tanned and that then it would be safe
TO resume the former figures. Such
was not the fact. Those cuts, amount
ing to something over 100000 year
resulted i'm little more than bringing
expenditures within revenues. The de-
ficiency was made up by a change in
the time of collecting taxes, which
brought an additional half-year's or
total of one and a half years taxes
into one year.
The last legislature succeeded in
bringing the appropriations within the
estimated available funds for the cur
rent period, including cash on hand
and estimated revenues. but without
making full allowances for additional
appropriations that might be and usu-
ally are required at the succeeding
sessions for the same period; appar-
emily only the non-eXpenditure of ap-
preparations to the amount of about
100000 will prevent a deficiency at
the end of the period, if such addi-
tional appropriations are made. The
need as well as the difficulty of max
ing ends meet by material reductions
is expenditures or increase in reven-
ues, is shown by the fact that, not
withstanding the care exercised by the
last legislature, the appropriations
made and required to be made for the
current period will probably exceed
the actual revenues for the same pc
riod by more than half million dol
lars.
The aim should be, still further, to
avoid all not strictly necessary ex-
pense so that as much as possible may
be available for what might be called
advance work as distinguished from
the mere keeping of the machinery Of
government in operation. To appro-
pirate in excess of actual needs for
operating expenses is not only to
waste the peoples money but to de-
prive them of needed internal i'm
provements and means for developing
the Territory.
Revenues.-The desired end can be
attained by a reduction in expenditures
or increase in revenues or both It
requires hardly less courage or firm
ness to propose or insist on an in
crease in revenue than it does to pro-
pose or insist on a decrease in eXpen-
ditures. Taxes and other revenues are
already high per capita, although it
is true also that the people of this
Territory are better able to pay high
taxes than the people in many other
places.
What may be classed as taxes proper
Of one kind and another amounted
during the last fiscal year to S10S5
per capita on the assumption of po-
i
classed as in the nature of taxes
amounted to an additional S1.61 per
capita. Other revenues amounted to
1924 per capita, making a total Of
$15.7O. The customs and internal re-
venue receipts of the Federal Gsv-
eminent in this Territory amounted
to $9.45, making a grand total of S25. Is
per capita or an aggregate of more
than four and a quarter million dol
lars.
We sometimes attempt to deceive
ourselves with the thought that the
property tax itself is only one per
cent, when in reality it is higher than
in most other places, for the reason
that property is assessed at its full
value. That, moreover, is only one
of many sources of revenue, and pro-
duces only half of the total
1t may be suggested that the mate
rial growth of the Territory has been
such that the revenues must have in
creased largely since the loss of Gus
toms receipts nearly nine years ago.
This has not wholly been the case.
Valuations became so inflated soon af-
ter annexation that many of them
have since fallen and the aggregate
that is taxable has increased but lit
tie. The general property taxes dur
ing the last fiscal year were only S64.-
900 more than they We're in the nscaI
year 1904. The income taxes were less
by $4,000 than they were in 1902, the
first year Of the tax. The increase
in taxes of all kinds since 1902 has
been only about 1857 900, which is but
but little less than the increase in
revenue from all sources, and less thar
enough to meet the interest and sink
ing fund requirements for the public
debt, most of which has been incurred
INCTTATA TING, no T7Nyi