The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1912-06-25
FINANCIAL BRIEF
boosts" HAWAII
Governor Tells Of Healthy State
Of Affairs in Statement to
Secretary Fisher.
LFrom saturday,s Advertiser.l

AIIOm OdtuEuhl huNtINlctAsl
While yesterdays mail brought to the
capitol no further information Of the
approval reported to have been given
the proposed million-and ia half bond is
sue by the President, letter from
Governor Frear to Acting. Governor |
Mott-Smith brought the brief which the
former presented to the secretary of |
the treasury in favor Of the issue. AT |
the time of writing the letter, Governor |
Frear had already seen the secretary |
but the negotiations were not then as
far advanced as they are now believed
to be.
Secretary Fisher wrote the Gov.
ernor, "says he can not come to Ha
waii until after congress adjourns."
A Real Booster
The brief in favor of the bonds was
made up largely of information regard
ing the condition of the Territory, the
laws under which the issue was to be
floated and similar points upon which
the secretary desired enlightenment
The brief also showed, however, the
Governor IS personal opinion of the Ter
ritory whose government he admins
tiers, and in many pertinent passages
he has out-Wooded II. p. w. in good
substantial legitimate promotion work
in quarter where it counts.
Governor Frear in speaking of the
new reimbursement clause by which the
counties will do much towards defray-
ing the debt, said;
"The existing arrangement was made
chiefly (1) for greater efficiency in the
expenditure of the money by securing
the expenditure of the money by more
competent persons, in some cases, at
least; (2) greater economy in the sale
of bonds because the credit of the Ter
ritory is better than that of the coun-
ties and because larger and fewer is
sues are thus made possible, and (3)
because the Territory can apply the
sinking fund to the payment of its
earlier issues, the counties having no
such earlier issues.''
Good Financial Condition.
Judging from that Gin some cases at
least, !" it seems that the Governor has
not forgotten the Oahu loan fund com.
mission. Anyhow, he continues else
where:
"The Territory is in splendid fnan
cial condition. 1t is able not only to
make liberal appropriations for current
purposes but also to provide for much
in the way of permanent Improvements
out of its current revenues, besides pro
viding for the payment of the interest
and principal of the public debt. The
last legislature made unusually large
: appropriations for the public health
public schools, etc, and provided fol
public improvements out of curren
revenues to the extent of about 1925,
900 for the biennial period. 1t als'
practically provided that the countie
Q should expend during the same periot
approximately 100000 out of their cur
0 rent revenues for public improvements
O In addition, extensions of the Honolul,
2 water and sewer works are made t.
some extent out of the revenues o
4 those works, which constitute specia
It fund, and much in the way of perma
IT nent improvements is done by prisoner
II and inmates of other institutions.
n ''Of the $4, 2l4 900 of bonds outstand
} ing when the Territory was organized
n SO ,24l 400 was paid by the Unite
q States under the terms of annexation
q and since then the Territory, notwitf
a standing the loss of over million do
p lars of revenue annually in custom
duties due to annexation and hard time
no during a portion of its life due to To-
the amount of $57s,O00 besides refund
ing 100000 of per cent bonds at
per cent Under the provisions of I'll
q sinking fund acts just referred to an
with the present improved financial COZ
ditions, payments will be much larg'
hereafter. -
Asks Better Terms.
Under the head of privileges reques
ed of the secretary of the treasury, IL
Governor says in his brief:
CAN issues of territorial bonds, e
cepting the fire claims, have been a
cepted by the United States treasul
no department as security for further d
ce posts in national banks on the basis
80 per cent of their par value. III
issues of public improvement bonds
1903, 1905 and 1906 and of refuI
cv bonds of 1905 were so accepted also
substitution for United States bonds
condition that the latter when thus I
ha leased should be used as security f
additional circulation, and the issue
nv 1907 was so accepted in substitution f
United States bonds without such co
dition.
"Of the four groups of bonds acceT
ed by the treasury department, the fir
consisting of United States bonds, al
of course, accepted at par as securi
N for both deposits and circulation; t
III third group, consisting of Philippi
IL Railway Company and Manila Railwi
Company bonds, and the fourth grol
w. consisting of state, city and railro
to bonds are accepted as security for
le- posts at 80 per cent of their mark
Ter value not exceeding 80 per cent of the
m par value A distinction, however,
it. made between bonds in the seco
'es group; these are all received as securi
I'D for deposits but those of the Philip
ne ines, Porto Rico and the District
at Columbia are accented at nar VIII