The Hawaiian gazette., 1917-03-30
FARM LOANS NOT
FAVORED IN HOUSE
Finance Committee Majority Goes
On Record Against Lyman's
Financial Measure

Chairman Cooke e house finance com.
mittee yesterday presented majority
report recommending the tabling Of
Representative Lyman's II. B. "a,
which would "encourage the establish.
ment of a rural population and pro.
vide ''capital for agricultural develop.
mcnt, and for other purposes. y Ly.
man and Kawaha, both Big Island
representatives, did not concur in the
report and may file minority report
recommending the passage of the
measure.
To allow the dissenting members Of
the committee to present their minor
ity report and to permit of wideope
discussion both of the divergent re.
ports and on the merits Of the measure,
if that be possible, consideration of
the majority report was continued
yesterday to next Monday. The major
ity report follows:
IThe object Of this bill is to assist
those engaged in agriculture upon a
limited scale by making il possible for
them to borrow money at more favor.
able terms than they can at present.
In order to accomplish this purpose,
the bill proposes to create a farm loan
board with authority 20 loan territorial
money appropriated for that purpose,
taking as security mortgages upon
farm land, whether held in fee simple
or under lease, and to borrow, using
these mortgages either directly OF in
directly as security, further sums,
which sums arc in turn to be loaned
upon like security. .n i.
''The BIN cafes an appropriation
of 100000 to be loaned under the
provisions of the act, and a further APP
preparation of $4,000 to create re.
serve fund.
Your committee has given careful
consideration TO this bill and believes
that il is in contrnvention of the pro.
visions of the Organic Act respecting
the incurring Of Indebtedness by the
Territory except in certain prescribed
| methods.
Although the bill continually re,
peats the statement that sums Dor.
rowed by the farm loan board shall not
involve the general credit Of the Terri
tory, yet the plain fact of the matter
is that the credit of the Territory Is
pledged in order to secure the requisite
funds. E..a."... ..rs.Ea.. s=..'., .
"Unless the credit Of the Territory
is in fact pledged, and therefore con
sidcrably larger sum than 100000 be
comes available to the farm loan board
for loaning purposes, the plan out
lined by the act would, in the opinion
of this committee, be Ineffective, or
in other words, the revolving FUND
would not revolve; and in practise il
! would come down TO an appropriation
Of 100000 for the purpose of loanint
| that sum, and no other sum, to a com
paratively small number of individ
uals. .. w.. 49, H.. ...... B..
"The bill provides that not mor'
than $4,000 could be loaned to any on'
individual, and If loans of this amount
were accepted, twenty individual
alone would secure assistance by
reason of this particular act. n
"While your COMMITTEES recognizes
the desirability of assistance in every
proper way to those engaged in agri
1 culture, yet your committee is furtheI
of the opinion that no sufficient reasoI
exists for selecting this class Al
against all other classes in the com
munity to receive such aid.
! "For the reasons given, your com
i mittee recommends that the bill b
| tabled