Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1911-02-15

realization of the relation between rev,
enue and expenditure.
Regulation of Expenditures. The law
relating to expenditures of public mon
ey should be amended in several re-
spects The limitation of the amount
to which expenditures may be made
without contracting after advertising
for tenders may well be raised from
$500 to $1,000; the provision would
still cover practically all cases where
contracting after advertising should
be required; other cases should be
discretionary to be governed by the
circumstances.
Another exception to the limitations
should be added so as to permit ,ex-
penditureS to be made, with the ap-
prevail of the Governor in the case of
the Territory and the Board of Super
visors in the case of county or city
and county, in excess of such sum
without contracting, when the work is
of such a nature that its extent or
character cannot be known or speci-
fed beforehand with reasonable GER
tainty, or when no tender is received
in response to the advertisement.
There should be some limitation up-
on the counties and city and county, as
there is upon the Territory, with ref
erence to the construction as distin-
guished from the repair of roads, even
if it is only a requirement that when
the amount involved is more than
81 900 the county or city and county
even though it performs the work it.
self, shall first advertise for tenders
and, if it rejects them, shall keep
full account of the cost and upon com
pletion of the work publish the cost
and the amounts of the rejected ten
ders
There should also be a strict provi-
sion to prevent any county officer who
has anything to do with the letting of
contract or the performance of work
for the county from being financially
interested in it, directly or indirectly.
There should also be provision
against the anticipation of revenues
by counties, that is, the incurrence of
obligations in excess of revenues for
a given period
Authority should be given to certain
Territorial officers to make rules, not
inconsistent with law. further control
ling and regulating the expenditure of
Territorial moneys, corresponding to
the regulations made by the depart
ments of the Federal Government in
regard to travelling and other eX-
penses.
The time within which warrants
may be presented for payment, should
be limited, as, for instance, to the
next biennial period after that in
which the warrants are issued. There
are now outstanding warrants amount
ing to several thousand dollars, cover
ing period of about thirteen years.
Somewhat similar provisions are
found in the County and Municipal
Acts, and claims against, the Territory
are barred in two years. t,t
TAXATION. ~
The receipts for the last fiscal year
exceeded those for the first year of
Territorial Government by more than
one and a half million dollars, or 20
per cent, and those of the first year
of annexation by more than a million
dollars, or AZ percent, notwithstand-
ing that the customs receipts had not
then been transferred to the Federal
Government. Since annexation the
general property taxes alone have in
creased by more than the entire
amount of customs receipts at that
time There have been large increases
in revenues from other sources also,
as, for instance from the public lands
and from the general and special in
come and Inheritance taxes, which be-
gan after annexation. There should,
therefore, be ample funds both for cur
rent expenses and permanent improve
ments. And yet even during the last
few years of unusually large revenues,
very little of the general funds have
been used for permanent improve
ments; and ordinary expenses have
had to be cut down to the quick, in
order to avoid a deficit. Why?
During the first five years of Terri
torial Government, owing to large eX-
penditures and the loss of customs re-
ceipts, a surplus of about 100000 was
expunged and deficit of about equal
amount was accumulated. That def
cit was then eXpunged, not, as COM
monty supposed, by the severe cuts
made in expenditures at that time. for
that did little more than bring expen-
ditures within revenues, but by chang
ing the times of collection of taxes
so as to obtain an extra half years
taxes in one fiscal year; In other
words, by increasing the rate of prop
erty taxes for that year by 80 per
cent, not to mention the imposition
of the general income tax few years
previously. How about the last tiye
years?
It is true the needs of the Terri
tory have increased, because this is
growing country, and yet for some of
these needs appropriations have been
reduced absolutely and for others rel
atively to the needs and to the in
creases in revenue; for instance, the
school population has increased two
thirds faster than the expenditures for
public schools. The prime cause of
the difficulty has been the establish
ment of local governments. This has
necessarily involved additional gov
ernmental machinery; for instance,
the salaries and incidental expenses
of mayor, supervisors and clerks
alone, who are entirely new officers,
amount to about $50, 900 in biennial
period Local government has also
necessarily involved much duplication
of governmental machinery; as, for
instance, by requiring five treasurer's,
auditors and attorneys Offices in
stead of one. The additional four Of
fees of these three classes cost an
additional $4,000 in a biennial pc
riod. But this is not all The Legis-
lature limits the amounts that can be
eynanded for TprritOrial needs of an