National Republican. (Washington City (D.C.)) 1872-1888, 1881-01-14
AWAY ABOVE PAR.
THE BONDED DEBT OF THE DISTRICT.
Annual Report Of Commissioner Gilfllan-Grati-
flying Reduction in Principal and Interest
The District Commissioners Get
Their Usual Dig in the Ribs.

Treasurer Gilfillan has submitted to Secretary
Sherman his third annual report as commissioner
of the District sinking fund. The report notes
reduction during the year of the principal OF the
bonded debt of 900 49, 49, and the annual interest
of s276 The credit of the District has so appre
cated that the six per cent. bonds, which IN 1910
could be bought at five per cent. below par, could
be had at no less than ten and half per cent pre-
MUM in August last and are even higher than that
at this time, if they can be obtained at all. Inc
365 loan, which could be bought in 1879 at S2A Is
now held at a premium of from two to four per
cent The loans now outstanding and the amount
of them are: Georgetown general, eight per cent,
$4,000; permanent improvement, six per cent,
81 $50 $50 permanent Improvement, seven per cent,
$4,000 twenty year fundinT SIX per cent,
80; market seven per cent, S15OOOO; twenty-year
funding, five per cent 81 OS9 800; wafer seven per
cent, 1897 900: thrty-year funding, SIX per cent,
$500 0O0 water seven per cent S6G O IN nity!ta YEA
funding, threesixtyf per cent. sliU1O,VO Iotil'
SD, IA, 400.
With the exception of small loan, maturing
July next, no bonds will mature untlI ioSl anu
until that time it is hardly probable that the SINK
ing fund can be invested to yield even 500 per
cent.
ment of the sinking fund in any bonds OF the DIS
trict which may be most advantageously pur-
chased, the profit of the transaction IN the saving
of interest, to inure TO the sinking fund IN queS-
ton.
The estimate for 1882 for sinking fund and in
terest, 81 and exceeds that for the pSS
the interest and sinking fund upon the increase III
the principal of the three-siXty-tiye loan amount
ing to 81 256 50 authorized by the act OF june TO-
1850 When the act of June i6, $780, is complied
with, the bonded debt of the District will be S22
81 $50 the annual interest thereon SJ9l SSH ana
the amount required sinking fund.- S222, l0J2o,
which, invested annually to yield three-andSiXty-
five one hundredths per cent. per annum, Will ex-
tinguiSh the entire debt August /, 192i
If the bonded debt has reached its maximum
under existing laws, and no furtherlncrease there
of be contemplated, Il permanent annual appro-
priatiOn of 81 2l3,9i97 should be made for the eX
tinguiShmcnt of the debt.
The Treasurer makes an elaborate statement of
his objections TO the bill providing for the CONVEX
sion of eight per cent. certificates OF ndeotedness
and accrued interest thereon, amounting III
all to SS14 GOO, into three per cent Oonu,
TO run for forty-four years Referring 10 the
law authorizing the conversion OF Doaru Oh aualt
certificates, the report says:
alt is suggested that the decision to allow no IN
tereSt upon the certificates, but to allow interest at
cent upon the bonds from the date of the certiti-
Gates, was not only in accordance with the section
in question, but seems TO be also full compliance
with the demands of justice, as It places holders OF
certificates-many OF whom refused bonds of the
threesiXty-five loan when offered them by the
District of Columbia in 1874, 1879 and lSI6,upon
the same footing with those who surrendered their
certificates for bonds of that loan i'll those years
Referring to the special assessment draWDack
system, Mr.. Gilfillan says:
1t is unnecessary to statethat tits system when
obtains under this government only i'll the admin
istrato of the affairs of the District of Columbia,
and seems 10 invite irregularty injustice ana loss
of revenue"
Referring to the statement in the District Com,
misSiOners' report to Congress that the United
States is indebted to the District for street
improvements since 1871 and that one-half OF the
work done in Slash Run sewer, Tiber sewer, ana
Boundry sewer should be charged to the United
States, that half amounts to 81 040, l5l.54. The
Treasurer says that the Government is not given
credit for its share Of all the appropriations: II
given credit for one-half of the appropriations
made for interest on the threesiXty-fve bonds, by
the acts of February !, 1870 March Sd, 1879, July
81, 1876, and March g. 1877, the Indebtedness
of s55, 1927, claimed by the District Commission
ers, would be eXtinguished and leave the District
indebted to the United States.
In reference TO the Linthicum loan the report
says: 1.-The Secretary of the Treasury and the First
Comptroller have recommended that the matured
notes be paid and the interest stopped, on the
ground that the District no longer needs the loan,
and can borrow at lower rate" The recommen-
dations in the report are summarized as follows:
l. That in the present favorable condition OF the
revenues of the District, there be no further in
crease of the bonded debt of the District by the
funding of floating debt and accrued interest.
.. That section 6 of the act of June l6, 1880 be
modified to enable the Treasurer OF the United
States to satisfy the judgments Of the Court of
Claims in threesiXty-fiye bonds or in money to be
realized from the sale of bonds as may be most ad
vantageous for the public interests. 3. That
authority of law be given for the investment of the
fund on the three-siXtyiye loan in any bonds of
the District of Columbia. 4. That the provision re-
curing the aforementioned appropriation to be
invested in three-siXty-tive bonds at par be re-
pealed. B. That the deficiency in the appropria-
ton for interest upon the threesiXty-tye loan be
there will be default in payment of the February
(ISSll dividend.