FINANCES The tabular statements on the following pages are of interest. The greater part of the revenues of the cities and counties of Hawaii are collected by the Territory and paid over to them to meet their expenses. The Territory in turn receives back from them the cost of assessing and collecting taxes and the proportion chargeable to them of the interest and sinking funds on territorial bonds issued to provide for local requirements. No county or municipal bonds have ever been issued. Following is a statement showing the total revenues (including cash balances at beginning of year), expenditures, and net cash balances at close of the year during the past nine fiscal years: Since its organization the Territory has paid and retired $938,000 of its bonds besides refunding $600,000 of 5 per cent. bonds at 4 per cent. The payment of all bonds, both principal and interest, constitutes a charge upon the consolidated revenues of the Territory. NOTE. The bulk of the property in the Territory is used for the cultivation of sugar and pineapples, and in assessing a plantation as an "Enterprise for Profit," the law requires that, "there shall be taken into consideration the net profits made by the same, also the gross receipts and actual running expenses; and where it is a company being a corporation whose stock is quoted in the market, the market price thereof, as well as all other facts and considerations which reasonably and fairly bear upon such valuation.' Owing to the low price of sugar in 1913, the assessments for 1914 were considerably lowered, but as the price of sugar was high for 1914 and 1915, the assessments for these years were increased. That of 1916, just completed as to plantations, has added $27,000,000 to their assessed value. Hence, the total assessments rise and fall relatively, according to net income. ASSESSED VALUE OF REAL AND PERSONAL PROPERTY Total. 1920 101.375 Place of Sale Honolulu New York Honolulu 1924 98.25 Honolulu 1941 101.5875 New York 1942 100.5887 New York 1944 100.01 New York & 1946 100. New York $8,024,000 Equivalent to 3.95% of assessed valuation. The above bonds were all issued for Public Improvements except the issues dated October 4, 1905, and May 15, 1916, which were issued for refunding. Bonds are all issued in coupon form without provision for registration, except the 1916 issue, which may be registered as to principal, the coupons remaining payable to bearer. Denomination: $1,000; except the 1914 issue $100, $500 and $1,000, and the 1916 issue $500 and $1,000. Principal and interest are payable at the Treasurer's Office, Honolulu; or at United States Mortgage & Trust Company, New York. Neither the Territory nor its predecessors have ever defaulted in the payment of any interest or principal of the public debt. LEGAL PROVISIONS IN REGARD TO DEBT United States Statutes Act April 30, 1900, as amended by Act May 27, 1910 (44 Statutes 443 Section 4) provides as follows: Purposes for Which Bonds may be Issued No debt shall be authorized or contracted by or in behalf of the Territory, or any political or municipal corporation or subdivision thereof, except to pay the interest on the existing indebtedness, to suppress insurrection, or to provide for the common defense, except that in addition to any indebtedness created for such purposes the legislature may authorize loans by the Territory, or any such subdivision thereof, for the erection of penal, charitable and educational institutions, and for public buildings, wharves, roads, harbor and other public improvements. Maximum Debt Authorized The total indebtedness incurred in any one year by the Territory or any such subdivision shall not exceed 1 per cent. of the assessed value of the property in the Territory or subdivision, respectively, as shown by the then last assessments for taxation, whether such assessments are made by the Territory or the subdivision or subdivisions. The total indebtedness of the Territory shall not at any time exceed 7% of such assessed value of property in the Territory; and of a subdivision shall not exceed 3% of such assessed valuation of property in the subdivision. Refunding Nothing in this act shall prevent the refunding of any indebtedness at any time. No Loan on Credit of Public Domain Nor shall any such loan be made upon the credit of the public domain or any part thereof. Term of Bonds Nor shall any bond or other instrument of any such indebtedness be issued unless made payable in not more than 30 years from the date of the issue thereof. President of the United States Must Approve Nor shall any such bond or indebtedness be issued or incurred until approved by the President of the United States. Hawaiian Statutes Act of April 25, 1903, as amended. Synopsis Total authorized issue, $9,000,000. Payable in gold coin of the United States. Must be authorized by an act of the legislature defining purpose. Interest not to exceed 5 per cent., payable semi-annually. Redeemable and payable at such time or times as will comply with the Act of Congress approved April 30, 1900, or any amendments thereof. Exempt from any and all Territorial taxes. A charge upon the consolidated revenues of the Territory. Denominations, place in which principal and interest payable and method of redemption to be determined by the Treasurer with the approval of the Governor. No bonds may be issued at less than 2 per cent. below their par value. Bonds shall be offered by public advertisement; or the Treasurer may, with the approval of the Governor, accept any bid without public advertisement for tenders, provided such bid shall be above the figure of the last sale. Refunding Extracts from Chapter 88, Revised Laws 1915 The Treasurer is authorized and empowered, with the approval of the Governor, to issue from time to time negotiable refunding bonds of the Territory of Hawaii, in an amount or amounts not exceeding at par value the bonded indebtedness to be thereby refunded. The bonds which may be refunded under the provisions of this chapter shall include among others any bonds which are payable or redeemable at the option of the Territory, or which the Territory otherwise then has the right to call, pay, or redeem, or any bonds of the Territory the holders of which may consent, may be paid or refunded, even though such bonds be not matured or callable or redeemable. |