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

he next generation gets the benefit OF
them. Under the bond Issue policy
both the present and the future genera
tons receive the benefits and both help
to pay for them.
1t 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 as
well as the interest thereon. which at
5 per cent in twenty years will amount
to as much as the 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 will be borrowed
as needed. Furthermore. a few thou
sand dollars placed in the bank at CON-
pound interest Is sufficient for q sink
ing fund.
The above objection would In a meas
ure apply to any similar transaction
in the business world. and yet today
90 per cent of all the business of the
civilized world Is done on q credit ba-
sis. II nations. states. counties aud in
dividuals had listened to this argu-
ment this country of ours would today
be almost as little known and AZ little
developed as the continent of Africa.
When Il community is building pub
lie roads for the use Of it's people all
Of the money borrowed for this pur-
pose is placed In circulation among the
people. They use it in their business
transactions; they make 1t earn an in
terest often worth far more to. them
than the interest which the county
pays for the sum. In other words. the
county has the roads and the money
which has been spent upon them.
The whole structure Of our indus
trial and governmental fabric rests
upon the mechanism Of credit. The
amount Of legal tender actually in cir
culation in the United States In 1910
was only S3452 per capita and would
be pitifully inadequate to meet the
demands Of business If all transactions
were conducted on a cash basis, The
building of our great railroads. the
financing Of our war of independence
und subsequent conflicts have been
conducted through the powerful agen-
cy of credit. Our entire banking sys-
tenn. involving 1883. s34 600. rests up
on the foundation stone Of credit.
Would it be wise to advise thrifty
young farmer to refrain from buying
farm because he had not the entire
purchase price in cash? Would 1t have
ever been possible for the vast do
mains Of the early landed proprietors
to be divided up into small farms If
the practice of partial payments had
not been introduced? '< Il
1t is evident that the construction of
large mileage of improved roads at
one time would result in a lower cost
per mile than If the roads were built
q mile or so at a time, ais the contrac-
tors having large plants and the quar-
ries furnishing large quantities of ma
terial could utilize their equipment and
material at less relative expense than
on small jobs. - -. - > = = =
Because improved roads 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 rs the
country property and thus relieves the
farmer of part Of the burden which
he now bears under the old district or
township system. In nearly every
county in the United States which op-
crates under the pay as you go" plan
the country property alone bears the
entire cost Of road building.
A bond issue Is not an unjust bur-
den on posterity. because through the
increase in the value Of land and the
development Of agricultural resources
posterity Is benefited. Therefore the
son who inherits the wealth thus pro-
duced 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
substantiate this point the following !