Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1912-08-14

he next generafiou gets the beneiit of
them. Under the bond Issue policy
both the present and thefuture genera.
lions receive the benefits and both help
TO pay for them 2
II may be argued that the system OF
borrowing money for road building Is
more expensive for the reason that the
money borrowed must be- paid back q
well as the interest thereon. which at
8 Ter cent in twenty years viii amount
to as much as tie principal. and there
fore for each dollar borrowed two will
have to be paid back at the end Of
twenty years. This is not strictly true.
however. The money VIII be borrowed
as needed. Furthermore. a few thou
sand dollars placed in the bank at COM
pound interest is sufficient for sink
ing fund. . -.~ III .~~ - 3 q
The above objection would ina meas
ure apply to any similar transaction
In the business world. and set today
80 per cent OF all the business of the
civilized world Is done on credit ba-
sis. II nations. suites. counties and In
diyiduals had listened to this arg,l-
tnent this country of ours would today
be almost as little known and as little
developed as the continent Of Africa.
When community Is building pub
lie roads for the use of its people all
Of the money borrowed for this pur-
pose Is placed in circulation mong the
people. They use it I'm their business
transactions: they make 1t earn an in
terest soften worth far more to them
than the interest which the county
pays for the sum. In other words. tile
county has the roads aud the money
which has been spent upon them. I.
The whole structure of our indus
trial and governmental fabric rests
upon the mechanism Of credit. The
amount of legal tender actually in cir
cuiation in the United States In 1910
was only $34.52 per capita and would
be pitifnliy inadequate to meet the
demands OF business II all transactions
were conducted on a csish sbasis The
building of our great railroads. the
financing Of our war Of Independence
and subsequent conflicts have been
conducted through the powerful agen-
cy of credit Our entire banking sys-
tenn, involving $1.S5S, S34. 900. rests up
on the foundation stone OF credit.
Would 1t be wise to advise a thrifty
young farmer to refriin from buying a
farm because he had not the entire
purchase price in cash? Would It have
ever been possible for the vast do
mains OF the early landed proprietors
to be divided up into small farms ne
the practice of partial payments had
not been introduced? -@@.. $. .,.,
. 1t is evident that the construction OF
a large mileage of Improved roads at
one time would result in a lower, cost
per mile than if the roads We're built
q mile or so at time. as the contrlc-
tors having large plants and the quar-
ries furnishing Iarge quantities OF ma
terial could utilize their equipment and
material at less elatire expense than
on small Jobs.
Because improved sroads benefit all
interests In the country all interests
should help to pay for them. A coun-
ty bond issue usually levies, the cost
upon the town property as well as the
country property and thus relieves the
farmer Of part Of Che burden which
he now bears under the old district or
system. I'm nearly every
county In the United States which OPP
crates under the ply as you GO plan
the country property alone bears the
entire cost of road building.
A bond issue is not IN unjust bur-
den on posterity. because through the
increase in the value Of land and the
Of agricultural resources
posterity is benefited. Therefore the
son who inherits the wealth thus pro-
dnced by the preceding generation
should certainly help to pay the cost
Of the factors which are instrumental
In bringing about this wealth.
The increase in farm values as the
result Of road Improvement is SO great
that the tax rate is frequently lower
than before the issuance Of bonds. 70
this point the following