Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1874-06-22
The President and the District FL
nanCeS.

The President sent to the Senate and House
of Representatives Saturday special message
recommending an increase of the rate Of inter
est on the bonds authorized to be issued for
payment of debts Of the District Of Columbia.
The President says:
II respectfully invite the attention OF Congress
to one feature OF the bill entitled An act for the
government of the District Of Columbia, and for
other PURPOSES Provision is therein made for
the payment Of the debts of the District in bonds
to be issued by the sinking fund commissioners
running fifty years and bearing interest at tho
rate ofthree and sixty-iVe one hundrrdths per
cent per annum, with the payment of the prin
cipal and interest guaranteed by the United
States. The government by which these debts
were created is abolished, and no other pruvlS-
ion seems to be made for their payment. judy
ing from the transactions in other bonds, there
are good grounds, in my opinion, for the aplrc
he.sion that bonds bearing this rate Of interest,
when issued, will be wor h much less than their
equivalent in the current money of the United
States This appears To me to be unjus to those
to whom these bonds are to be paid, and to the
extent Of the difference between their face ana
real value, looks like repudisting the debts Of
the District. My opinion is that tt require CT d.
tors of the District Of Columbia to receive these
bonds at par, when it is apparent thai to BE- con-
yerted into money they must be sold at u large
discount, will not only prove greatly Injurious
to the credit OF the District, but will reflect UNI
favorably upon the credit snd good faith of the
United States | would recommend, therefore,
that provision be made ut the present session of
Congress to increase the interest upon these
bonds, so that when sold they will bring an
equivalent in money, and that the Secretary OF
the Treasury be author zct to negotiate the sale
of these bonds q, not less than par, and ray the
proceeds thereof to those who may be ascertain :.
4 b,x,
Columbia" r
On motion of Mr.. Sherman, the message
was referred to the joint special committee 90
District Afflirs, who reported as follows:
1.-THE Joint committee on the affairs of the Dis
trict of Columbia, to whom WAS referred the
message of the President relative to one feature
of the bill entitled An act for the government OF
the District of Columbia, and for other purposes,
report that the investi CATION made by tins com
mi,tee discoses the fact that much of the IN
debtedness proposed to be funded into the bond
provided for WAS created when there was no
ADEQUATE provision for payment, and upon
basis of credit-the contractors underst .nding
ut the time that they were to receive evidences
of Indebtedness, the time of payment OF when
wss uncertan-by reason whereof thcse evi
dances we're deprecated in value. And while
there were no means whereby the committee
could determine the matter with absolute GER
tsinty after giving the sub ect careful c"nsiIer-
alton, they believe that bond OF the character
nrovided Tor would be, MS a ruiz, fully equal in
value TO what the contractors expected TO re-
ceiye under their contracts
besides this, the fundi"g proposed is per
missiye and not compulsory The creditors
have All the security they had when the deb.
WAS created and in addition the option to accept
bonds provided for. No Injustice therefore,
will be done any creditor who shall take such
boz DIS in Ii. of the securities he now holds.
1.-The idea thst there Is anything ilk9 repudla-