New-York tribune., 1875-10-12
TIE DISTRICT OF COLUNBTA BONDS.

WHY THEY WE'RE IssUED-rIE ALIEGED AMOUNT
OF TIE DISTRICT rEBr-El FORTS To RAiSk HE
m.RgEr rVALUE OF THE BoSDs-rHEiR DECLINE
~ iEICE.
u.oa AZ occAsIoNAL CORRESPONDENT or THE TRIBUNE.
WAsu!NGroN. Oct. G.-The lcgll status and
volume Of the 3G5 Disr OF Columbia bonds have been
ateva subject of much discussion that hriei his
tory of them may help to clear up amy doubts stu re-
tanned by the public in regard to them
when the bill creating the present an interim govern
mcnt for the District read in the House of Repre-
sntatiycs June H. 1874 Nr Lawrence asked the fol-
loving question Of Judge wilson, the Chairman OF the
Special Committee who advocating IL;
Mr. Iawrencc-Is there anything IN this bill which
commits Congress to tie Endorsement or inc pas 'h' Oh
Mr.. Wii'on-No, Sir; I think can show that
the Committee has been careful .hout that
The pledge given il simply this: That
the Government Oi the tE.i'd 1,ates ltNihs
I, be- passed what will proper proportion (plya
bic hy the United Satcs) then tine Congress OF iie United
may be- ami 10y causing taxes be levied on The property
OF the District viii prG'le the oSary means 10 pay
! the interest and principal at maturity
Uuon these assurances and explanations the bill was
allowed 10 pass Tie Board of Au t provided for III The
same pil wa. to examine and audit FOR settlement all the
unfuuded and floating debt of the District OF COLUMBIA
and Of the Board OF Pdblic WORKS specified under
eight distinct heads. The Sinking Fund commissioners
of the District were have the 800 bonds prepared
engraved and printed at the expense of the District To
have them signed by their ercary and Treasurer ana
: countersierlcd by the Controller OF the District
and to have them registered IN ne oihce
OF the Controller OF the District ana IN uie
Office of the Register of the Treasury OF the Uned
States The Sinking Fund Commissioners were To
" use all necessary means for the prevention oi
/ auy unauthorized issue" of any Of such bonds,
and they were authorized TO exchange thes. bonds at
par for like sums o any class Of Indebtedness evidenced
by certificates the Board of Audit II S proper at this
point to remark that the payment OF large sums iby the
BOARD of Audit 10 contractors for differences between
the assumed value OF the District bonds IN which they
were to be d. "A and the $50 bonds in which they were
finally pad is certainly Illegal sine no provision was
made for auditing such claims, and it was optional with
contractors 10 hold their claims and sue for
the full amount or accept ;he 300 bonds ut par
The special Investigating Committee, which was So
violently assailed for cxacgeane the degradation To
which public affairs had in this District estimated
the total Indebtedness that may be funded d'resent
ard prospectiyel" in other words, the volume Of the
365 bonds at $500 $50 %. closes Kelley. Chairman
of the Sinking Fund Commissioners, now gives II "a his
opinion that il will reach Sl2,000OO0 On the represe
tation- the Committee Congress stood godfather for
this debt by the known aud implied guarantee already
referred to- fixed the rate of interest on Che Joyear
| funding bonds at 3 500 per cent.
The Ring nterc,ad az 10y inducing the President
TO write special TO Congress, III which he sad
that this action looked to him like repudaon to the
the difference between the actual ana par
value the bonds. lie closed with recommendation
Ia Congress to increase The rate of interest to bring
the value Of the bonds up to par Both the Senate and
the House referred this message To the Investigating
Committee. then still sitting the Administration ma
ioriiy of this Committee sent Subcommittee 10 tle
President Who after the matter was explained 10 MN,
saw that fhe bonds wond be worth much the paper
i'm which the expected To be paid when they
tno tbc work and admitted that his III, rsaEc had been
written in consequence of false representations made Ia
him and that the acton Of Consress was Just aud tar;
The members of the Investigating Committee reported
back Uheir respective houses mat after giving the
subject careful consideration they believe that bond
| of The character provided for would be, as Il rule
fully coual value to what the contractors expected III
| receive under their contracts
Not AT all daunted the Commissioners OF the Sinking
| Fund who have no official relations whatever with the
President Of the United states since they hold their
Missions FROM the Governor OF the District and BY the
authority of iaw % the District legislature, and are
consequently now subordnaUs Of tine Commissioners Of
the District through Moses Kelley, the WellknOwn ally
! OF the Ring, made direct Application to President
Grant be Informed whe her the $50 bonds To bc lssed
were intended by the statute be- paid hi coin or IN law
/ fl money OF the Unitcd States. The President very
strangely recognized them and referred their letter "a
tior found the pill too BIZ to swallow, and reported
| against II.
CAUSE OF THE INCREASE.
The next step was a recommendation by the Commis
sioners OF the sinking Fund in their report Of Last Decem
her that the 1868 bonds be made payable
in coin instead OF currency This effort to raise the
price of the bonds having failed the contractors peti