The Hawaiian gazette., 1917-09-07
failure OF BOND
SALE TIES UP ALL
IMPROVEMENT WORK
Treasurer Mccarthy Now On
Way Home, Having Sold Only
100000 Worth In New York
BUYING OF SECURITIES 80
HERE IS NOW ONLY HOPE.
Construction Of Belt Road and
Many Other Projects Halted
Through Lack OF Funds

to Hawaii, according to cable adyices
received yesterday, and is due to ar.
rive here about the end of the present
month, after his practically futile at
tempt to market in New York terrific
rial bonds TO the amount of 81 500, 900
which were authorized by the last Iegis-
lature. Nay F5
To date only 100000 worth of bonds
have been sold, and of this amount but
$4,000 worth were disposed of in New
York, the financial center Of the Unit
oil States Treasurer McCarthy's trip
can, therefore, hardly be called an un-
qualified success, but that does not re-
fleet In any way upon the treasurer.
The fact is that the country is flooded
with bonds just now, the exigencies of
war being largely responsible. The
Liberty Loans, for billions of dollars,
have very naturally greatly affected the
bond market.
The $4,000 worth of bonds disposed
of by the treasurer in New York sold
for 90. The Bank of Hawaii has
bought 100000 worth at 9S.0S and
Bishop & Co. have taken $4,000 at 98.
An effort is now being made by Acting
Treasurer Henry Hapai to dispose Of
more bonds in the Territory. An ad-
yertisement issued by him says that
/ the 100000 realized from the sale Of
bonds "will be principally spent on
items that are in the interest of and TO
the advantage of the whole group" e
Up To the People .
OF the unsold balance of $1,000, 900
the advertisement says: "This sum ap.
proximately applies to the various isl.
ands as follows! Hawaii, $405,000; Ma.
nj, $205,000; Kauai, $4,000; Oahu
$650,000. II is up to the people Of each
of these islands to purchase each its
quota of bonds receiving a guarantee
that the money will be spent on each
island, in full or pro rata, to its sub,
scriptiOn. 1t is plainly a case of put
up the money, of which there is plenty
or going without the improvements. y
While the above statement may not
he entirely lucid, the apparent fact is
that unless the people of the Territory
purchase the bonds, which cannot now
be sold in the East, the contemplated
improvements for which they were is
sued cannot be made.tts,ttr
The territorial bonds pay interest Al
the rate of four per cent, and are non
taxable. The new Liberty Bonds are
expected to bear interest at the rate
of four and One-half per cent, but will
probably be subject to. tax, and the
war taxes on them will probably b'
more than enough to make up for the
difference of one. half of one per cen
between the interest paid by the ter
ritorial bonds and that paid by the Lib
erty Loan. -
But the cold fact remains that ouI
bonds have not sold and that unless tn,
people of the Territory who have money
to invest come through and purchas,
the bonds, we cannot have our bel
road, or new wharves and the many
other improvements contemplated b,
the Legislature when it authorized tn
bond issue.
Oahu Hard Hit
The Island of Oahu will be parti
cularly hard hit, for the people of thi
island have been counting heavily upol
the construction of the belt road, 70
which bonds to the sum of $4,000
were authorized.
The board of supervisors recently ap
propriated $4,000 out of the cash basi
fund for a survey of the proposed bel
road and that survey is now 10 progress
The board is paying out $1,000 a month
out Of current revenue, but that apprc
priation runs out at the end of tn
present month, and whether or not j
will be renewed is matter still to b
decided. Certain it is that unless W
buy our own bonds, we shall have n
belt road, for the present, anyway.
Meantime, however, the board of 81
pcrvisors is continuing work on tn
Pail road. The concreting has been eS
tended beyond the famous Hairpi
Turn, and an excellent job has bee
done. The turn has been Broadened b
extending the concrete out over tn
edge of the cliff, so that the curve ha
been shorn of its dangerous qualities
Work Nearing End i7r A..
But how much farther the work en-
be carried with the funds at present q
the disposal of the board is not know
but it is expected that the work wi
have to come to an end soon, for thi
year, at least. After the beginning Il
next year the board will have eonsit
erably more money with which to wor
and more progress along the line @
permanent improvements can be mad,
The failure to sell the territOrii
bonds will not hipder the downtow
street work contemplated by the boar,
according to a statement by Charles
Arnold, chairman Of the road COMM
tee of the board of supervisors. Their
is left in the permanent improyemer
fund, he says, $4,000, which can b
used to create the proposed improv,
mrnt district and pay the eity's in
+ tial expense. That Is expected to carr
the work over into NEXT year wbe