Evening star. [volume] (Washington, D.C.) 1854-1972, 1880-07-28

Iue lolloWIuS Is the IuIl CeXJ OF the OplnIOl
OF First Controller Lawrence touching the 3.65
mention has heretofore been made in THE STAR:
TREASURY DEPARTMENT..
FIRST COMPTROLLER'S OFFICE.
Washington, d. c., July 26, 1850.
Hon. Jas. Gildlldn Treasurer OF the q. s.:
SIR Il have the honor to acknowledge the
receipt of your letter of the 30th ult asking for
AN act to provide for the settlement OF all
outstanding claims against the District of Co
lumbia and confer jurisdiction upon the court
OF claims to hear the same and for other pur-
poses, >" approved June 16. 1880.
Section OF the act OF Congress providing for
the settlement OF all outstanding claims against
the District Of Columbia and conferring juris-
the same. and for other purposes, ap-
proved June Is, 1850, enacts 90 That the
Treasurer OF the United States. as
District of Columbia is hereby authorized and
directed to redeem the outstanding certificates
Of the late board Of audit, created by the act
approved June 20. 1S74, with the interest ac
crued On said certificates by issuing and deliv-
eT1Dg TO the owners or holders OF such certifi-
Gates, bonds of the District of Columbia as pro-
vided in section seven Of the act approved June
20, 1874, entitled 'An act for the government of
the District OF Columbia, and for other pu--
poses," and acts amendatOry thereof, said bonds
to bear the same date. same rate OF interest,
and interest and principal be payable at same
time, and subject to all the conditions, pledges
OF faith, and exemptions as the bonds author
lied to be issued by the said seventh section of
said act, and shall be signed By the said treas
urer as eX-officiO sinking fund commissioner OF
the District of Columbia, and numbered, coun-
terSfgned. sealed and registered as the said sew
coupons from said bonds up to the date OF such
certificates"
Your letter asks my opinion upon the follow
ing points, viz: 80 At what date the interest on
the 500 bonds to be issued In redemption Of the
board of audit certificates In question shall
commence, and whether under existing law
there is any appropriation for the payment OF
interest upon the 800 bonds SO issued.
1t seems plain from the language OF the sec
ton quoted that the interest is to commence at
the date Of the certificates that the bonds are
issued to redeem.
Before can answer the second question it
will be necessary to consider some of the a IT'S
OF Congress- relative to the payment of interest
On the 1865 bonds OF the District or Columbia.
The issue OF bonds was provided tor by the
act OF June 20, 1874. the seventh section OF
which, as amended by act of February 20, 1875,
"And the faith of the United States is hereby
pledged that the United States will, by proper
proportional appropriations, as contemplated
the property Within said District such taxes as
will do 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 principal thereon at
maturity" !See U. S. Statutes, vol. Is, p. 1872,
This act also provided that the interest of
these bonds should be payable at the Treasury
OF the United States.
The next general provision relative to the
payment OF interest Is found in the latter part
OF section 4, of the act of Congress providing a
permanent form of government for the District
OF Columbia, approved June II, 1873. where it is
enacted that Hereafter the Secretary OF the
Treasury shall pay the interest On the 3-65
DOndS OF the District OF Columbia, issued in pur-
suance of the act OF Congress, approved June
20, 1874, when the same shall become due and
payable; and all amounts so paid shall be
Tlf O c q nc lrf Of f1,n
year by the United States toward the expense
vided."
The First Comptroller has decided that this
clause In the act of June II, 1878, did not make
an appropriation for the payment of interest
OF the 3.65 bonds, and that the amount neces-
sary to pay such interest should De included In
the yearly estimates, and appropriations made
Dy Congress for the expenses of the District
under the provisions OF section 3, OF the same
The appropriation for interest for 1880 and
prior years, have been exhausted. and conse-
qnently there Is no money available for the pay
ment OF interest on the bonds to be Issued
unless it can be paid out OF the appropriation
for the current fiscal year.
The estimates of the Commissioners of the
District OF Columbia, as approved by the Secre-
provisions of section 8, of the act Of June ii.
1878, for the fiscal year ending June 80, 1881.
contained an item .for interest and sinking
fund On the funded debt of the District, eXclu.
sive OF water bonds, s1.l55. .5S3. 55."
This estimate was based upon the amount OF
the funded debt of the District at the date,
December, 1879, when 1t was submitted, and
was only for the sum necessary for interest and
sinking fund for the fiscal year 1881, under the
provisions of law, on the bonds Of the District
which were then outstanding.
Congress, by the act making appropriations
for the District OF Columbia for the fiscal year
ending June 80, 1881, approved June 4, 1880
appropriated for the sinking fund and interest
On the funded debt, exclusive OF water bonds,
one million one hundred and tfty-five thousand
five hundred and eighty-three dollars and fifty
hye cents" the exact amount estimated.
The act authorizing and directing the Treas.
urer to issue 3.65 bonds to redeem outstanding
certificates Of the late board of audit was not
passed until twelve {12) days after the passage
OF the act making the appropriation.
The amount appropriated for the payment OF
interest by the prior act will not be sufficient
to pay the interest falling due during the fiscal
year 1881 on all the bonds previously Outstand-
Ing and those to be issued under the act OF June
16, 1850.
The question, therefore, arises, did Congress
intend that the sum appropriated should be ap-
piled exclusively IN paying interest on bonds
outstanding prior to the act OF June 16, 1880, or
that all should share the b nefit or the appro-
priation? The act OF June Is, 1850, makes the
new bonds '.sulject TO ar the conditions, pledges
OF faith and exemptions as bonds previously
outstanding. One OF the conditions" impressed
on these bonds by the act OF February 20, 1915.
s oy aba BBs pro
ing to be levied upon the property within said
District, such taxes as will do so, provide the
revenues necessary to pay the interest On said
boz DIS as the same may become due" Another
condition Impressed on the bonds by the act of
June II, 1878, is, that "the Secretary of the
Treasury shall pay the interest on the 3-65
bonds OF the District OF Columbia when
the same shall become due and payable
Congress was SO careful to provide the Ger
tain means OF payment that in case the District
should fail to raise its proper proportion an ad-
vance from the Treasury is provided for.
The lew bonds to be issued under the act of
June 10th, 1850, were made subject to all
these conditions" In other wordS, tt Is mani
fest that they were, by the act OF June 10th.
1SS:, in all respects placed on the same footing
and with all the rights OF prior bonds. Unless
the language OF a statute imperatively 80 re.
quires, 1t should never be SO construed as to
lnpute 10 Congress purpose to refuse paw
ment or an admitted and overdue liability and
purpose TO withhold from officers OF the gov
efnment the means OF performing duties i'm
posed oy Congress; yet these results follow If it
be decided that the interest on the new bonds
can not be paid.
1t may be said that one of the conditions, to
which these bonds is subjected is, that eSti-
mates shall be made and submitted to Congress
Tor the amount required to pay interest (Rev
Stat. SG69, Act June II, 1SIS 20 Stat. 100 and
that an appropriation shall be made. Estimates
wtre mace and submitted to Congress for bonds
OF this class generally-'fOr interest on the
funded debt OF the District"
But 1t will not be doubted but Congress can
appropriate without such estimate, II after the
appropriation act OF June A. 1850, 1t had been
expressly provided by law that the previous