Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-02-19

the taxes were collected. Under the
new system the counties, like the
territory, receive the taxes and other
revenues when they are paid. This
is a much safer and better method.
When the Territory has surplus il
can without Inconvenience carry both
itself and the counties, but it does not
always have a surplus sufficient to
carry the counties as we'll as itself
and, indeed, has not always had one
sufficient to carry itself alone. More
over, it is best for the counties to
shoulder their own financial RESPONSE
bilities and thus emerge from the
stage of infancy. Each county should
voluntarily set aside sufficient cash
Easis fund to carry it from each tax
time to the next This could be done
without great Inconvenience by a
gradual process Thus far, however,
in some cases at least, the temptation
of an outgoing board of supervisors to
spend al the futzAs available has.
proved too great Thus, the incoming
board has been left in the lurch. /
recommend, therefore, that the accu-
mutation of a cash basis fund by each
county and the city and county be re-
quired by statute, as is done by
statute or city charter in many other
places.
The Territory experienced similar
difficulties until 1t accumulated suf-
f1cient surplus for working basis in
its general account, and it is now ex-
periencing like difficulty in its new
Iy created special school fund which
it is hoped viii be gradually over
come. This is met for the time be-
ing ty the provision which permits
temporary Announcements to be, made
from the general fund to special
funds. 1t would be better both for
the Territory and for the counties If
the taxes were collectable in January
and July instead of in May and No
yember.
1t has been suggested that the Ter
ritory might loan its surplus funds to
the counties at interest instead of de-
posting them in the banks to bear
interest. This could be authorized by
statute and there may be no serious
objection from the standpoint of the
Territory to this being done as a
business transaction, but not only
could the counties not thus borrow
under the provisions of the Organic
Act without the approval of the Pres
ident, but they could not always rely
on the Territory having the requi-
site funds at it's disposal.
There is a growing sentiment on
the mainland tnat the Looks of local
governments should be audited or he
subject to audit by some Independent
authority provided for by state law.
Recent occurrences in one of the
counties here emphasizes the aGvisa-
bility of some sucn provision. County
books should be audited from time To
time by tue Territorial Auditor or by
an auditing company or person of rec
ognized standing acting under statu-
tory authority. Better checks should
be provided also in the county and
municipal acts for controlling the re-
ceipt and, expenditure of moneys.
Bonded indebtedness, Permanent
improvements. ....@
During the present fiscal period
bonds have been issued to the extent
of SO, 900 900, namely, $1,500,000 on
August /, 1911, and 81 ,500,000 on Sep
TENDER 3, 1912. The prices obtained
ritory. Although these bonds bear
only 4 per cent interest, the first issue
was sold at premium of Sz3,S13.75,
or at the rate of 101.5S75, and the
second issue was sold at a premium
of SS,S31.34. or at the rate of 100.5SS7.
Through special arrangements the
Territory was saved the cost of ex-
change for transferring the proceeds
from New York, where the L9nds
were sold, to Honolulu. In the case
of the second issue the Eonds were
delivered in installments, thereby
avoiding the payment of considerable
sums in interest before the bond
money could be used. Much of the
money on hand awaiting expenditure
under contracts has been deposited in
banks at interest, which has now ag-
gregated about $4,000. Thus, up to
the present time the yield, including
premium and interest, is about 3d.
055 900, of which there has been ex-
pended or contracted s2,649, 1918.
An additional. privilege was obtained