Evening star. [volume] (Washington, D.C.) 1854-1972, 1878-12-09
The District Sinking Fund.


to make Pursuant to provisions of the act
OF June II. 1918. the books records files OF the
cfice, and the balance OF moneys to the credit
or me commissioners OF the sinking-fund were
transferred TO the Treasurer OF the United
states On the 1st OF july last. The report says:
Assuming the amount appropriated for the
sinking fuEd for each loan TO be invested, at
the beginning CT each year in bonds of tnat
loan at par, with interest compounded semi.
annually. and appropriations 10 be made for tie
interest on the full amount of the loans. inc!ld-
iHs tI1e sinklng ttnd, II appears upon conlputa-
ton That the following amounts should ba de-
voted annually TO the sinking fund during the
remainder as the periods which the several
loans have TO run: For the market stock bonds
Sl5ooo; Tor the per cent. permanent improve
ment bonds Slol 500; for the first issue of per
cent. permanent improvement bonds :. .nj5 IS:
ior the ~ year per cent. fundng loan bonds.
S2n,lS3s 81: for the 80 year 6 per cent. funding
lean bonds. SI.i12.21: for the - year 3.65 bonds
s95Io $50: total annual appropriation required
But half of this, or s12s.110.72. will be paid
from the revenues OF the District. This is blt a
very small percentage OF the debt of the Dis
trlct, being, In fact less than siX-tenthS OF one
rer cent. OF the debt. and less than eleven cents
Of the tax on each 500 of property-a proDor-
ton much less than that set apart i'm 1873 the
date CT the last enactment upon the subject.
] sincerely hope that the sinking fund will not
be dependent for means upon whatever surplus
1unds may remain after the demands for re-
pairs Of streets and sewers are all satisfied but
that in future the laws relating to the debt of
the District may be fully carried out
The estimate OF S256,22i25 for the sinking
fund is based upon the requirements of existing
laws, and cannot properly be reduced While
they remain in force. II is. however objected
oil behalf OF the authorities Of the District. that
tne amount is unfeasonably large. and that ii
Will curtall more than is ludciOuS tile amount
10 be applied TO the repair and Improvement of
the SuCets and sewers. on the other hand, il is
claimed that the obligation To maintain the
SINKING 1und under existing laws being q mat
ter of contract with the creditors OF the District
should be strictly complied with. II is believed
mat substantial Justice Will be done 10 all of the
interests affected. by making provision for a
sinking fund sufficient for the eXtingaiShmen;
OF the entire debt upon the maturity Of the 3.65
loan. The funded debt OF the District exclusive
OF the water stock. for the payment OF which
provision is made out OF the water fund is
81. $3.50. Assuming that the amount appro-
piiated for the sinking fund could be Invested
so as TO yield four per cent. per anntm upon the
Investment. the proposed object could be accom-
pilSEed 10y the annual appropriation OF
Sl'2-26G.l3. The annual amount required for in
telest, exclusive OF the interest on the water
stock. which is payable ont OF the water fund is
S9>5.33,+ l2, making the amount required for both
sinking fund and interest Sl.l55, ,5o3.55.
III order TO save the necessity for annual ap-
plopilatlon for the sinking fund and interest
on Tie debt ana for drawing and reinvesting
the interest Oh the sinking fund, it is recon-
IlcEued that permanent annual appropriation
be made OF the above gross amount for both
purposes by general enactment. and that the.
provisions CT law be repealed which require the
inscription upon the books OF the Sinking-fund
account. and the drawing and reinyeStInent of
the interest thereon. The amount available for
the sinking fund would increase from year 70
yearaS the interest charge should diminish Ii
is also recommended that the amount apprO-
priated for these purposes be made payable
from the proportional appropriation made by-
United states, and that it take precedence OF all
other dues and demands.
The following draft OF an act TO effect this OBJ
ject is respectfully submitted for Your eonsid-
eratlon ana that or Congress. 1t is believed to
emoody proposition upon which the represen-
tat1veS OF all the interests involved can unite
ana which Will remove out of the held OF con-
troveISy all questions affecting the mainte-
nance OF the sinking fund and the payment OF
The interest On the debt of the District:
he 1t enacted. DC. That there is hereby an
propliated out of the revenues OF the District OF
Columbia for the fiscal year ending June 30,
1850, and for each fiscal year 1hereaitet. until
the debt OF the said District and OF the cities OF
Washington and Georgetown shall be entirely
eXtlnguiSl.ed. Ire sum OF Sl-1'5.5s3.55, for the
payment OF the interest on the funded debt OF
the said District and cities, exclusive OF the
water stock. and for the maintenance of a Sink
ing 1und for the redemption thereof, which
sum rs hereby constituted permanent annual
appropriation, and shall be annually charged
10 the appropriation for the year by the United
states for its proportion OF the expenses OF the
District OF Columbia. And the payment OF the
sum hereby appropriated shall have priority of
all other claims and demands upon the
revenues OF the said District, whether arising
from taxation OF from appropriations by
d1SbuTSed by the Treasurer Of the United States
upon the warrant of the Secretary of the Treas
ury. And any excess OF the said sum over and
above the amount required for the payment of
interest on the funded debt, exclusive of the
water stock, shall be applied by the Treasurer
OF the United States TO the purchase and re-
demptlon OF the debt OF the said District and OF
the cities of Washington and Georgetown in
the manner prescribed by existing laws: Pro
ridcd, That so much OF the act of the Legislative
10, 1911, entitled San act to create commission
ers OF the sinking fund and to prescribe their
duties." as requires the said commissioners to
lnSclibe on their books the amount of bonds
stocks, and certificates Of Indebtedness pur-
chased BY them On account Of the Sinkfng-fllnd
and to collect the interest thereon, be, and the
same is hereby. repealed.