Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-02-19
Document Surveys
Progress of Ter
ritoryAnd Points
Out Some Needed
Changes
CONTINUED nom page H.

eHt legislature could not want Tor
better opportunity-let IL but be
guided solely by patriotic resolve to
serve only the public veal.
FINANCES.
This has Eeen a subject of prime
Importance during the last six years
in consequence of growing needs and
the establishment of local govern
ments. Much, but not all, has been
accomplished in the solution of the
problems thus presented. The tax
system has been reyolutionized by
separating the sources Of revenue OF
the Territory and the local govern
ments, by making each of these gov
ernments independent with respect to
revenues and expenditures, and by
substituting for a fixed tax rate for
all purposes elastic rates to meet
varying requirements. This has re-
suited in a large increase In revenues
and terminated the demoralizing and
wasteful Influences of common
money bag. Provision has been made,
by means OF special income tax for
the important objects of immigration
and the conservation and develop
ment OF natural resources. The pub
lie school system has been put on an
adequate, largely automatic, indepen-
dent financial basis. Many minor adj
ditions to revenues or economies in
methods have been effected, such as
securing the federal aid Of $4,000
year for the College OF Hawaii and
providing for the deposit OF public
moneys in banks at profit OF more
than $4,000 q year in interest be-
sides the prevention of financial in
convenience through the withdrawal
of large sums from circulation. OF
other matters, mention may be made
OF the regulation of the expenditure
of public moneys, the requirement OF
q uniform system and frequent pub
lication of local government accounts,
the prevention of undue anticipation
OF revenues by counties, the prohibi-
ton Of public officers from being or
becoming interested in contracts with
which they have had to do officially,
the amendment of the laws relating
to the sinking fund and the refund OF
public bonds, and appropriations for
many important improvements with
special provisions to secure the ecc-
nomical expenditure Of the funds and
the payment Of the bonds issued
Current Revenues and Expenditures.
- The gap between needs and means
ever tends to widen. It Is seldom
brideed satisfactorily for any con-
siderable period. The task OF max
ing ends meet Is perennial. Desire to
have and reluctance to pay pull in OPP
posite directions
Fortunately, the last six years have
been years of plenty as we'll as years
of expanding needs. During that
period imports and exports have In
creased from s47.f41.S00 to $S4,
760: property values, as assessed Tor
faxation, have increased from $lSl,-
175,O15 to $176,S34,S0l; bank deposits
have increased from $7,74S,696.44 to
Z SIS. Is9. 1850. II is matter OF
qualification that Notwithstanding the
great increase in expenditures to
carry out progressive policies, the net
cash balance in the general account
has increased from sl65,845.4s on July
i. 1908. to 1851, 967.73 on December
81. 1912, or, what is of more signifi-
canoe now that so many special funds
have been created out of current rev.
enues. that there has been an increase
in the net cash balances of all cur
rent revenue accounts during the
same period from s175,604.6S to 81
517,SS9. 81; that during the year and
a half that has already elapsed of the
present biennial period the net cash
balance in the general account has
decreased only from $660,303.49 to
s6s1.s67. rs, and that the net cash bal
! ance in all current revenue accounts
have increased from $1.0S1, 050.72 to
Sf.517 $685.
This favorable financial condition,
however, affords no ground for opti-
raistic recklessness in making ap-
Dropriations for the coming period.
ON the contrary, there is greater ne
cessity that there was two years ago
for the pursuit of business-like meth
DDS. There should be careful inyestl-
cation in each case followed by wise
discrimination. For there is much
reason to expect natural decrease
instead of a desired increase in rev.
enues during the coming period, es-
pecially in income and inheritance
taxes: and 1t should not be forgotten
thar the balance shown shortly after
a taxpaying period is not a true indi-
cation of the amount that can safely
be appropriated. Sufficient should be
maintained to carry the government
to the next tax paying period.
However much economy may be ex-
ercised, however much efficiency may
be achieved, the fact remains that,
owing to the separation of the terri
tory into islands, the broken char
acter of each island, the nature and
distribution of the population, the
subtropical climate, the relations of
the territory to countries both east
and west that abound in infectious
diseases, the fulfilment of govern
ment obligations in this territory is
expensive, and with the rapid increase
In population and the fuller realiza'
ton of the needs and obligations the
expense is constantly increasing.
Moreover, hitherto the government
has been extremely paternal eas com
,.arod win Governments on the main