The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1911-02-15
increased nearly 25 per cent and of
Honolulu nearly 80 per cent.

FINANCES.
There were special reasons for a
large increase in revenue during the
last two years which will not hold
for the coming two years, and other
reasons which will make necessary
an increase in running expenses
which should use up the greater part
of the real surplus. For instance,
owing to the high price of sugar, the
general income taxes amounted to
$437 ,033.9G during the last fiscal year,
or $15S,91722 more than the average
fer the nine years during which
those taxes have been collected, or
S43,09343 more than they had ever
been before While they will fall
off little, if any, during the present
year, because this years taxes are
based on last years income, they will
fall off heavily next year because of
the low price of sugar this year.
Again, owing to an unusually large
number of deaths of wealthy people,
the inheritance taxes yielded during
the last fiscal year $150,153 II, as
compared with an average of only
s21 ,S27.S7 for the ten years during
which those taxes have been collected
which average itself is, because it
includes the large receipts of last
year, larger than the entire amount
received in any preceding year. Again,
during the last fiscal year the rev.
public lands were unusually large;
and, owing to the recent amendments
of the Organic Act, the sales must
necessarily be smaller hereafter, the
rents may be considerably reduced
by the withdrawal of cane lands for
homestead purposes, and a consider
able portion of the revenues must be
used for surveying and opening lands
for homestead purposes, as provided
in those amendments. Again, during
the last two years a special effort
was made to collect back rents, taxes
and other government claims, which
has resulted in an increase of rev.
enue to the extent of perhaps $780, |
900, which cannot be counted on for |
the coming period because such |
claims have now been collected pretty !
we'll up to date. Again, in view of
the stringency two years ago the |
whole financial situation was gone
over most carefully with view not |
only to the discovery of new sources !
of revenue and permanent methods !,
of economy, but view to cutting
down appropriations as much as pos
sible until financial conditions should
improve, with the result that many
appropriations were reduced below
the point of permanent safety, so
that now they should be restored or
increased in order merely to catch
up as well as to meet growing needs
which cannot be avoided
1t will readily be seen that with the
absolutely necessary increases in ex-
penditures for the coming biennial
ueriod and the absolutely certain
large falling-off in the revenues, there
will be comparatively little surplus
available for permanent improvements
out Of general revenues.
(The Governors table of financial
estimates is published elsewhere in
this issue Of the Starr
Permanent Improvements.
1t is evident from the foregoing that
permanent improvements during the
coming period must be provided for
mainly out of loan funds
Road Finances.
1t is generally supposed that $780,
600 should be appropriated from the
surplus for belt roads. There will
not be 100000 of surplus available
for this purpose, unless needs that are
both more pressing and morally bet
ter entitled to the surplus are neg
Il cted, or are provided for otherwise.
The first claims upon the surplus are
those of long-neglected and growing
reeds of the Territorial Government
and especially the needs of such ter
Iitorial institutions and buildings as
the industrial schools, the insane
asylum, the prison and the Judiciary
Buildings. Not only is it a terri
torial surplus, the counties having
practically no surplus although they
have shared in the increase in rev.
enues, but it has been accumulated
largely at the expense and through
the neglect of these territorial needs,
and these needs are more urgent than
those of belt roads. Why take from
these superior needs what naturally
belongs to them and devote it to
other needs, only to make necessary
continued neglect of the former or
an increase in taxes or an issuance
of bonds to provide for them? Why
not issue bonds for the belt roads
directly? Moreover, the need of
belt roads is so extensive that $780,
600 would make scarcely an impress
sion.
TAXATION.