New-York tribune., 1874-06-22
PRESIDENT GRANT AND THE DISTRICT
nFKT

PREHENsION-A PLAN THAT WOULD HAVE FILLED
THE POCKETS or THE RING-rTs DEFEAT. AND
GEN GRANTS EXPLANATION OF THE WAY IN
WHICH NE WAS INDUCED TO SEND THE MESSAGE.
trRoM REGULAR CORRESPONDENT OF THE TRIBUNE.l
WASHINGTON. June 20.-Ihe Presidents special
message recommending change in the character OF
the bonds into which ii is proposed 10 fund the
floating Indebtedness Of the District of Columbia,
did not meet with favorable reception 1t is true,
witbort doult that the 365 bonds proposed will not
be worth par either IN gold or legal tenders
and it was not intended either by the Com
mittee or by Congress- that they snouiu
be. The claims against the District and the Board
of Public Works besides interest on the debt ana
the paw of employees are mostly evidenced by cerbh-
cafes of Indebtedness eight per cent certlfcates,
&c The majority Of these were issued many
months OF a year ago, and have passed from the
bands of the contractors, to whom they were
originally given. The current price OF Board certli-
cafes for eight OF ten months has not been more
than 80 cents on dollar, and many OF
those who now have them bought them for
speculati0n at rates even lower than these.
Since II became known that the Joint Commit
tee would make no provision for funding these GER
tGcates they have advanced or 10 per cent IN the
market Where they are held by contractors, allow
,nce has generally been made in fixing the price of
coptraC work for the fact that IL TO be paid form
depreciated paper The largest holders Of the Dis
trct paper are the members OF the District Klng.
MI shepherd, IL is reported, has been Offering
durag the past month two. great amounts OF real
estate and agreeing TO receive IN payment Board
certificates. Some members OF Congress have also
invested IN this paper, Senator having ordered
monument firm of brokers in this city TO purchase on
his account 500 900 worth of it.
II the Presidents recommendation, that the inter
est on the funding bonds be increased as TO make
them worth par. either IN com or legal tenders were
carried into effect. the members OF the Ring, Seua-
toria specuiatOrs and Others, would realize at once
profit OF from 50 % 100 per cent on their invest
ments. which IN the aggregate would amount to
several millions of dollars. When 1t became APP
parent to the Ring that they could not defeat the
Committees bill, its members concentrated their
efforts to have II amended as is new suggested by
the President. Being unsuccessful IL That they
went 70 Gen. Grant.
The Joint Investigating Committee called on the
President TO-DAY 70 consult with him IN regard 10
his message When The matter was fully explained
n him. be entirely concurTed with the Committee
and said that he had not understood the subject De-
fore He asked the Committee 10 make THIS state
ment in their report, and II was at nrst put H. ou
the Committee afrerward concluded 10 omit II.
The Committee IN considering the fresiuenl
message bad the evidence before them that synul-
cate consisting of all the prominent members OF
the late District Ring and some of their most
favored contractors had been formed and that they
held or controlled about 3O0OO)0 worth of District
securities These men by Misrepresentation induced
Gen Grant % send his message 10 Congress. They
have been defeated IN their purpose, although DIS
trlct secaritIes advanced in the market from ~ TO
Is per cent il consequence Of the message.
TEXT OF THE PRESIDENTS MESSAGE.
WAsHINGI1N. June 21.-The President sent the
following message 70 Congress on saturday:
To NE Sea0c and House Qf RepreseatireS: respect
fully invite attention Of Congress % one feature OF
Tie BAL entitled An act f0r the government OF the Dis
frc uf Columbia and Tor other PURPOSES Provision Is
therein made TOT tie plyeut OF the debts Of the DIS
tr, I'M bonds 20 1e .sueG by the Sinking Fund Comms-
s9ners rum ug 50 years and bearing interest at the
rate OF sCI0 per uaum, with pay ment OF the prncl-
Ia aud guaranteed by the United STATES Tue
Government by when these dents were created Is
abolished and DO other provision seems 10 be made for
their payment. Judging from the transactions
In other bonds there are good grounds in opinion for
apprehension tnat bearing this rate Of interest
when issued Will worth mucl less than their equiva
lent in the money OF the United States This
appears 20 ne % lie unjust those whom these bonds
are paid. and the extent of difference between
fhelr face and real value looks Ike repudating the
debts o. the District. Ny opinion s that TO require
creditors o The District OF Columbia 70 receive these
bonds at par when Il Is apparent that TO be con-
verted into money thew must he sold at
large discount. viii not only prove greatly
injurious 10 the credit Of the District but will reflect
unfavorab!y upon the credit good faith Of tine
United states would recommend, therefore. that pro-
VISION be the pTeseat session OF Congress 10 n
crease upon these bonds that when sold
they Will bring equivalent in money, and that the
Secretary the Treasury De authorized TO negotiate the
sale Of these bonds ess than par aud pay
a1s ecf fhosp FSh ed IN
have valid claims agaiGs; the District Of Columbia
L. S. GAasr.
Executive Mansion, Washington, June 20.
REPORT OF THE COMMITTEE on THE PREsI-
DENTS SUGGESTION.
WASHINGTON June 20.-The following is the re-
mort on the Presidents message. submitted by Mr.
Allison from the Committee on District Affairs:
The Joint Committee the Affairs Of the District OF
Columbia 10 whom was referred the message of the
President relative 20 feature Of the bill emitted.
An act for the Of the District OF Columbia
and for other purposes report that the investigation
made by TINS Committee dscloses tle fact that much OF
indebtedness proposed 10 be funded into the bond
provided for created when there was no adequate
provision for payment and upon basis OF credit the
contractors at the time that they we're 70
the time OF payment Of
winch uncertain, by whereof these
evidences deprecated In value and while
there we're no means whereby the Committee
could determine the matter with absolute Ger
tsipIy. after giving the matter careful considera-
tion, they believe tnat a bond Of the character
provided for would he fully equal in value 70
what contractors expected receive under their
oonirac Beside this. the stuDding proposed is per
nissiye and not compulsory. The creditors hayr nil
the security they had the debt was created aud
IN addiuoD the option 10 accept the bonds provided
any creditor who shall take such boD6s NJ NJ
lie of . the securities he now holds. The
idea that there is anything Ike reputation
IN The bill is mistake. The bill does cOnp. auy