The Hawaiian gazette., 1916-03-14
MAYOR ASKSB0ND !
issue FOR ROADS
! AND kc|TY HALL
Mr.. Lane Reads Message TO
Board Of Supervisors Stat
ing Public Needs
B. --A---- -E# t=
MONEY FOUND, NECESSARY
ON ACCOUNT or DEFICIT
Municipal Building Should Be
Built In Union Square and
Highways Improved

L. q.
| Following the practise Of President
Wilson in reading his messages to Con.
gress, Mayor Lane last night at the
board meeting read his message on the
needs Of the city for q bond issue The
message was heard aud placed on, file
to be taken up at future date not
set yet. The message Of the mayor
was as follows; ~ 2,
Financial Status Of city ., A.. Il
81 submit herewith for your Son.
sideration estimates of amounts re-
quired for public improvements.
| In my first message the question of
finances was disguised ut some length,
to which your attention is invited.
The large deficit pt the end of the
last fiscal year has lent serious as,
pect to this question. Il Illustrates
that the gap between needs and
means which often tends to widen il
seldom bridged satisfactorily for any
considerable period, while the task o.
making ends meet is perennial
AT first it has seemed as il little
that was urgent had remained und0ne,
and yet, at the beginning of the term
of the present board of supervisors,
with a net balance in the general fund
of $l,448.92, there has appeared the
usual formidable array Of pressing new
needs that never cease TO accumulate
with wonderful rapidity in a present.
day live political, Industrial and social
organism. .....T
"The government cannot, any more
than private enterprise, be success
fully financed on q small surplus with
which to meet the absolutely neces-
sary increases in expenditures. Not
only should allowances be made for
maint lining the government from one
tax, paying period to the next, but, if
possible, there should be maintained a
surplus as a margin for emergency ex-
penditures and temporary reductions in
4 revenues, The statue 4, of 5arr r public
finances at the present time Is such as
to require most careful thought in or
der to avoid another period okffinan-
cial deficiency at an early date.
Permanent Improvement
Seldom, has the board of supervi.
sors been confronted with SO many i'm
portant problems as now, but seldom
has il met under more suspicious con
j ditions of proving equal to the situa-
ton.
at will readily be seen that perma-
nent improvements within the next
few years must be provided for mainly
out of loan funds. Nothing has been
done in this direction since the estab-
lishment :. of city and county govern
ment that there is pressing need that
much shall be done during the next
few. years. The permanent improve
meEts required will be considered more
particularly elsewhere in this message,
under the appropriate headings; but,
in general, it may be stated here that
the principal needs are for a city hall
and roads.
Bond Issue Taken Up
1.-The limit prescribed by law to
which bonds may be issued is two and
e.half per. centum of the assessed
value OF property in the city and coun-
ty, or, say, $2,250,000, in the aggre-
gate, on an assessed valuation of $780,
100000, and bne-half of one per cen
tum Of such assessed value or, say,
$450,000, In any one year; but it will
probably be advisable in any event to
issue bonds, not all at once, but in in,
stalments, SO as to avoid keeping an
unnecessarily large sum in idlPness
and so as not to affect labor condition
too seriously. The total amount of
bond issue to be authorized is $780,
900, or, say, $400, 900 to be issued dur.
ing the first year, and $3.50, 900 during
the second year, .''-
Term Of Bond Issue
1.-THE term of which bonds may be
Issued is fifteen years, redeemable at
i any time after I'VE years; and the rate
of interest is not more than FIVE per
centum Der annum. PAYABLE semi an.
Hhpally. This should facilitate the sale
Of bonds at pari but, even if the con
dition Of the bond market is such that
the bonds may be sold at discount,
such sale cannot be made at less than
two per eentum below the nominal par
4 value of such bonds. If the rate of in
terest d five per centnm, there will
have TO he set aside annually for sink.
ing fund, in addition to interest, if
the term of the bonds is fifteen years,
m amount equal in the aggregate to
ths par value Of such bonds at ma,
.Ia.r' IN order TO justify the issue o.
bonds adequate provisions should be
made for the expenditure Of the pro.
ceeds 70 the best advantage and with,
cut waste, and for the upkeep of the
proposed public Improvements, so that
they will not require to be replaced
before the bonds are paid, for it would
be foolish In the extreme and unjust
70 the future. which must pay the
bonds, to permit, the ineurrence of SO
great an obligation without making
sure that the intended benefits would
> he realized. S 81, > ,.er"
} City HAL An Urgent Need
= As pointed out in my first MESA Q
! the desirability of acquiring suitable
site and building for a city hall Is
hecQming more urgent on account al
J the rapid growth of 0nr city and tbs
increased functions Of our loacl gov
eminent. .s't.