National Republican. (Washington City (D.C.)) 1872-1888, 1874-08-31
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| - CONCLUSION IlaL dil Lle Q6DJS Oh the LIS
"trict contracted under the forms of loca
government which Congress has at diff
"ferent periods set up and organized there
"in, may be regarded. as so far debts o.
obligations of the United States that Con
"gress will make all the provisions neces
"sary for the prompt payment of the same
principal and interest, either by taxation
cor by appropriations out of the nationa
treasury"
In order to show that he does not stand
alone in the assumption that the indebted
ness of the District contracted by those
local governments of delegated powers
which were authorized by Congress ,arC
obligations of the United States" the
Judge quotes from the report of the Judi
ciary Committee of the Forty-third Con
gress on this subject, which says that sir
E'strict legal sense, there can be said to b o
mo such thing as local government Of
"the District of Columbia, for there can bt
ono government within the District indie
pendent of that of the Federal Govern
"ment; and whatever local authority there
"may be now existing, or which may be
hereafter set up within tho District, it can
"only be regarded legally as an agency Of
the Federal Government and whatever
authority this local government may ex-
"ercise, it must be regarded as the act of
"the United States through their delegated
representative"
From the foregoing 1t will be seen that
the people Of this District can neither create
debts nor raise money by taxGtion to carry
on government therein of any kind, MOI
to pay outstanding obligations, unless first
authorized by Congress to form a govern
ment and even then such acts can only be
regarded as the acts of the United States
Government through its authorized agents.
Consequently the whole present indebted
ness of the District, including that of the
old corporations of Washington and George
town, are obligations for which the Govern
ment of the United States is not only legally
responsible, but also for which that Gov
eminent, by the act of June 20, 1874, and
by the report of its Committee on the Ju-
dietary, has acknowledged its responsibility,
and for the payment of which, both prin-
cipal and interest it has pledged the faith
of the people.
The aggregate of the Indebtedness now
issued or provided TO be issued is about $751;
600, 900. estimating the amount to be IS
sued under the act of June 20, 1874, by the
commissioners Of the sinking fund, to be
Ss,0O0,OO0.) This aggregate comprises the
permanent improvement, or four million
six per cent. loans. payable, principal and
interest, in coin, which mature July 1,
1891; $3.50, 900 Of similar bonds, per cent.
in currency, maturing at the same time;
1886, 600 water stock bonds, per cent
currency, run twenty years; market stock
bonds, z per cent, $152, 400; Chicago relief
bonds, $4,000 7 per cent, due January
1, 1877. The above are all coupon bonds,
and with the exception of the two latter
classes, are payable semi-annually at the
First National Bank of New York. The
next class is the guaranteed bonds, So
called because of the special guaranty Of
the United States of their payment, princi-
pal and interest. They run fifty years and
are exempt from all taxation. They bear
currency interest Of one cent day on the
hundred dollars, or 1896 per cent. per an
mum. AS before stated they are estimated to
amount to eight millions and are to run fifty
years. Next are the funding loan bonds,
interest and principal, payable in coin at 8
per cent. They are authorized by Congress
and were issued to fund the floating debt of
the old corporation of Washington; 81, $780,
900 mature July 1, 1892, and $1,000, 900
November 1, 1902. The remainder of the
bonds are those issued by the old corpora
ton of Washington and Georgetown, mostly
payable at pleasure.
We have been thus particular in the
statement Of the amount and character of
the Indebtedness of the District in order to
show those who may have on hand or who
may have the offer of any of these securi-
tics what should be their intrinsic value.
That they are as safe as the bonds of the
United States Government we think no
one will have the hardihood to deny. The
funding loan six per cent. bonds, with
twenty to thirty years TO run and the inter
est payable in coin, ought to be worth at
least 10 to-day in currency, five may judge
oftheir value by that ofsix per cent Govern
ments, the only difference in the two really
being in the exemption of the latter from
taxation. E.
1t is plain to be seen that all attempts to
depreciate District securities are unwise and
real tangible foundation. They
are the attempts of spectators and sharpers
who desire to obtain them at low price
that they may sell them high. Our advice
topeople who have District securities of any
sort is to hold on to them unless they can
sell them at or very nearly par in currency.
Of one thing they may rest assured. They
can always borrow money upon them as
security at the banks, and they had
much better pay the slight difference in In
terest than TO sell them at any considerable
sacrifice. There are plenty ofshavers about
town quoting the certificates of the board
Of audit at sixty cents, seventy cents, and
eighty cents. People should bear in mind
that this board of audit has power to ad-
lust all legal claims against the District and
issue their certificate for the sum found to be
due. These certificates are redeemable by
the commissioners of the sinking fund in
bonds running fifty years. They
are to be issued In sums as small as fifty
dollars, and are especially adapted to the
wants of poor people who wish to accumu.
late their savings. What depositor in the
or City of Washington Saw
ings Banks would not now be glad to ex-
change their books for District bonds Of
the same smounti These bonds can be
sold for cash at moments notice when
ever the holder wishes to realize. We
would advise all persons who have accumu-
lations which they wish to draw interest
until such times as they can use them
otherwise to buy certificates Of the board
Of audit or District bonds. They will not
only be sure Of their interest when due,
but can always sell them and realize their
money with accrued interest whenever