Evening star. [volume] (Washington, D.C.) 1854-1972, 1875-10-25
THE DISTRICT S-65 ROyDs.
United States Bound for Their PAYMENT.
Opinion Of attorney Gertral PierspOut.

Of the principal and interest OF the District
! 5 G5 bonds:
DEPARTMENT OF JUsrIcF.)
! WASHINGTON, October 22d. ISIS
To The President oftse United States
SIR-The question submitted by the Presi-
dent 10 the Attorney General is whether the
faith of the United States is pledged to pro-
vide for the pay ment OF the in terest and prin-
ciEal of the 3-C5 District bonds
| That the faith of the United States is so
| pledged have no doubt whatever; and re-
spectfully suggest that the contrary opinions
which have been given by some eminently
| respectable lawyers have resulted from a
nasty and superficial examination of the
| question. The true relation which the Dis
| trict OF Columbis bears TO the federal gov
ernment seems to have been entirely over
| looked.
Under article ], section 8. clause Il of the
constitution, Congress has power "to exer-
else exclusive legislation, in all cases what
soever, over such District mot exceeding ten
miles square, as may. by cession of particu-
lar states and the acceptance of Congress.
become the seat of the government of The
| United States, and 10 exercise like author
| lty over all places purchased by the consent
OF The legislature of the state in which the
same shall be, for the erection OF forts, mag
aZlnes; arSenals, dock yards, and other need
| ful buildings"
| Section 795, revised statutes OF the limited
| States, provides "that all that part of the
territory OF the United States included with I'm
the present limits OF the District of Column
pa shail he the permanent seat of the gov
eminent of the United States"
| Thus Congress has supreme legislative
power over the District OF Columbia; a power
which has never been delegated TO any local
nun 1Graliiy; Congress exercising direct ex-
elusive and absolute legislative authority
over the District.
| Congress fixes the rate of taxation declares
| what property shall be subject TO or exempt
| from taxes in the District, and prescribes the
mode Of assessment and the enforcement of
| collection of the taxes imposed. ISee the act
OF Congress approved March 3, 1875, entitled
IAN act for the support of the government
| OF the District of Columbia for the fiscal year
ending j une 80, 1876, and for other purposes "l
The Treasury OF the United States is by law
the sole depository of the taxes and revenues
| OF the District. The debt for which Congress
authorized the issue OF these bonds was made
by officers of the United States, whom the
President had appointed, and whom the SEN
ate had confirmed, and the debt was con-
avenues and sewers of the District, which
are the exclusive property of the United
states tSee Van Ness VS.. city OF Washing
ton, Peters. o..
Had there been no specific pied ge on the
part OF the government, ii would have been
bonId upon every principle of law, gold
falth and common honesty To pay the inter
est and principal of these bonds. Toe debt
was incurred by its own officers. the money
borrowed was expended for the improvement
OF It's own property, under its own direction.
passed an act which provides, in the seventh
section, for the issue of the District 1865
bonts; and to leave no doubt about the liza
bility OF the government, the act of February
20, 1915, was passed, entitled IAN act To
amend an act entitled an act for the govern
ment of the District of Columbia, and for
other purposes" approved June 20. 1874.
Section Z. THAT the sinking fund commits
sioDeTs OF said District are hereby continued;
and II shall be the duty OF said sinking fund
commissioners TO cause bonds of the District
of Columbia 10 be prepared, in sums of fifty
and 1--WE hundred dollars, bearing date August
tirst, le.+, payable fifty years after date,
bearing interest at the rate of three and sixty
i've one hundred per oentum per annum,
| payable semi annually, TO be signed by the
secretary and the treasurer of said sinking
iuEd commissioners, and countersigned by
the comptroller of said district, Add sealed
as the board may direct, which bonds shall
be exempt from taxation by federal, state, or
municipal authority engraved and printed at
the expense OF the District OF Columbia, and
in form not Inconsistent herewith; and the
faith OF the United States is here by pledged,
that the United States will, by proper pro-
| portlonal appropriations, as contemplated
IN inns act, and by causing to be levied upon
| property within said District such taxes as
VIII GO so, provide the revenues necessary to
| pay the interest on said bonds as the same
may become due and payable, and create a
sinking fund for the payment of the princi-
| pal thereof at maturity. Said bonds shall be
Numbered consecutively, and registered In
| the Office of the controller of said District,
and shall also be registered in the office of
states, for which last-named registration
| the Secretary OF the Treasury shall make
such provision as may be necessary; and
| said Commissioners shall use all necess ary
means for the prevention of any unauthor-
| lied or fraudulent issue of any such bonds.
And the said sinking fund commissioners
bonds AT par for like sums OF any class of in
debtedness in the preceding section OF this
act named including sewer taxes or assess
meDts paid, evidenced by certificates of the
auditing board provided for in this act"
The act still further provides that "the in
ter ,erest of all said bonds shall be payable at
seven reads: "And the faith OF the United
states is hereby pledged that the United
states viii! = provide the revenues
necessary TO pay the interest on said bonds
as the same may become due and payable,
and create sinking fund for the payment
| OF the principal thereof at maturity"
The fact that the act points out the means
over which the United states has the abso-
lutte power to provide the revenues to meet
these obligations only strengthens the pledge
OF 1altn which The government gives.
IL was never yet imagined that the obiiga-
ton OF the government was relaxed or its
iaith less securely pledged whea it obtained
loans In 1872, and subsequently,, and pledged
the proceeds OF public lands and the customs
revenues 10 secure the payment OF those
loans, because OF the mention Of those re-
sources OF the nation.
The faith OF the United States is clearly
pledged 10 the payment of the interest on
these "S65 District Bonds as the same falls
due, and TO the payment of the principal OF
the bonds when the same mature.
There is no way short OF shameless vio-
iatlon of the elearest principles OF settled
law and honest dealing that the government
can escape from the full payment of these
bonds.
FIRST. The Urited States themselves con-
tracted the debt Tor which the bonds were
given.
Second The United States used the money
or labor for which these bonds were given %
Improve their own property.
IhiTd The United States them selves au-
tborized the issue OF these bonds 10 secure
their own debt.
Fourth The United States by specific act
OF Congress pledged the faith of the nation
for the full payment Of these bonds, and
thus Induced innocent holders TO take the |
same and part with value. F.s
Fffh. The United States to give additional |
credit to these bonds, pointed out the very |
ways and means by which they would Sc
curely provide the revenues to meet the inter- |
est and principal, the government having |
absolute control over the ways and means |
suggested.
SsT,h The United States still further added |
to its pledge, and strengthened confidence in
its pliRhted faith, by providing in the same |
act OF February 20, 1875, that "the interest of |
az said bonds shan be payabte at the Treasury Of
the Cnifed States"
II the faith Of the United States is not |
pledged to the payment of both principal |
ara interest of these bonds as the same ma
ture, then the United States have never |
pledged their faith for any debt.
1t Is entirely clear that IL any Individual |
stood In the same relation towards the bond