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


United States by which the bonds are
acceptable as security for United
States deposits in national banks at
their par value not exceeding their
market value instead OF at 80 per
cent of their par value, as previous
ly. They are also now acceptable, on
the same basis. as security for sepos-
its of postal savings bank moneys.
OF the s4,214,400 outstanding when
the territory was organized, s3.241,-
400 was paid by the United States
under the terms of annexation, leay-
ing a balance of $4,000. Of which
100000 of per cent bonds were re-
funded at per cent and the remain
der, 1878, 900, has been paid. Besides
these refunding bonds, the territory
has issued bonds as follows: In 1903.
S315 ,00c OF fire claims bonds, Of
which all but $4,000 has been paid
and the remainder of which viii be
paid on the first OF May this year,
and public Improvement bonds as
follows: s1,000,000 In 1908; $1,000 900
in 1905; $3.50, 900 in 1906; $4,000 IN
1907; 100000 in 1908; s1,500,000 in
1911; $1,000, 900 in 1912.
Thus the present bonded indebted
ness in S6,872, 900. This is enough to
caIl for most careful consideration Of
any proposed increase. The present
should bear its own burdens as far
as possible and not shunt them too
much upon the future. Moreover,
each increase in bonded Indebtedness
means an immediate increase in the
drain upon current revenues for in
terest and sinking fund
There are, however, some counter
balancing considerations. The present
Indebtedness is less than 4 per cent
of the assessed value of property,
which also is less than the real value,
while the limit to which Indebtedness
may be incurred under the provisions
of the Organic Act is per cent,
which at present amounts to $12,37S,-
436 and is constantly increasing with
the increase in assessed values. This
Indebtedness, moreover, includes
bonds issued by ,--e territory for the
benefit of the several counties, the
interest and sinking fund payable in
respect of which is to be reimbursed
to the territory by the counties, and
there are no county bonds; in other
words, represents the entire pub
lie bonded Indebtedness correspond
ing to the combined Indebtedness of
state and its counties and cities on
the mainland Again, many of the
objects for which this Indebtedness
has been incurred are revenue-pro-
ducing, thus increasing the revenues
with which to retire the bonds I'm
der the present sinking fund acts,
moreover, the Indebtedness will be
paid in much larger instalments in
the future than has been the case in
the past Then, too, there are pub
lie improvements of a revenue-pro-
ducing character which are required
immediately in the interests both of
the present and the future, for which
further Indebtedness may Justly be in
Cured if the terms of the bonds is
not made longer that the life of the
improvements. Again. the issuance
of bonds has by no means been look
ed to as the sole means for effecting
public improvements, nor do the re-
cent large issues indicate a shortage
III current, revenues or q lack OF
ability to meet the indebtedness For
instance, during the present biennial
period provision has been made for
the use of nearly $1,500,000 from cur
rent revenues for what might be
deemed capital expenditure, namely,
about sS50,000 by the territory and
s650,00e by the counties, including
among the territorial items expendi-
lures not only for new buildings,
wharyes and water works out of gen
eral and special current revenue
funds, but also for homestead and
other roads cut of the proceeds of
sales of public lands. and the amounts
set aside for the sinking fund on pub
lie improvement bonds and the so
called revolving fund of S250,000 for
enforcing the filling in of low lands
by private owners, which sum is ex-
pected to be returned eventually to
the general revenue account
Nevertheless. conservatism should
prevail in the matter of increasing the