National Republican. (Washington City (D.C.)) 1872-1888, 1874-09-15

THE CREDIT OF THE DISTRICT
We have somehow been impressed with
the idea that good credit anda good name
was important to the citizens of the District
of Columbia. 1t has, moreover, occurred
to us that they were particularly desirable
just at the present moment. Nearly one
year has passed since we were stricken by
cruel financial panic, which for a few
days threatened the solvency Of the entire
community. During that period we have
struggled against the direst financial mis-
!. fortunes. The Cookies, the First National
the Washington City Savings, and, finally,
the Freedman's Savings and Trust Com
pany surrendered successfully TO the pres
sure of the times. These failures sub
tracted from our business circles an inn
mense amount of active capital which has
been locked up in the effort to liquidate
their accounts. In addition to this, illus.
tratiye Of the old adage, sit never rains but
il pours, the famous ''memorialists'' set
their investigating machine in motion to
flock up the treasury Of the Board Of
Public Works, and bring all our District
improvements to a stop. By this means it
now turns out that some eight millions
more Of money, earned by lsborer and
contractors, is made payable in long low
rate bonds, which, though made perfectly
safe BY Government guaranty, are ''whis-
tied down the wind" by those whose in
terests imperatively demand that the credit
ofthe District should be maintained, if we
would not all 60 into liquidation together.
The conversion Of some four millions of
the real estate and collateral securities held
by the Institutions above named. which
have been forced into liquidation, into cash,
which is now imminent, in addition to the
placing Of eight millions Of tiffy-year 3.65
bonds, win require much larger amount
of money than now appears available A
large portion Of this money must be OBJ
tanned from abroad. The only way In
which il can be attracted here is By the
exhibition Of such confidence in the present
and future on the part Of citizens and capt.
talists in their ability and determination to
pay their debts as has been shown in the
past. This will inspire confidence in others.
But Is il not mistake TO bend all out ef-
forts toward keeping rates Of interest At q
high rangel What community can trans
act a safe and profitable real estate or mer
camille business upon capital borrowed at
ten per cent. per annumf Does the income
now received from improved properly in
this District warrant such rates II the
maturing mortgages are now foreclosedand
the sale Of the real property forced under
tie hammer, viii il command iis assessed
value It is all-important To us.as q COM
munity that II should. An will agree to
this
What means can be used by those most
interested TO turn into available cash these
eight millions Of iow-rate bondsz If they
can be 50 mobilized and manipulated as to
realize the cash the proceeds will 20 e long
way toward relieving the embarrussments
which must otherwise result from the fore
closure Of our real estate mortgages But
" cannot afford 70 realize upon them al
thirty per cent discount The result OF
such sale would Be eQuiyalent toa shrink