Evening star. [volume] (Washington, D.C.) 1854-1972, 1891-01-20


shop, and the family circle. Pretty much
everybody in the District reads it regularly. 1t
is therefore much the best advertising medium
in the city; and. in proportion to circulation,
It's adcrtisinq rates are also much the Cheapest.
THE MATURING DISTRICT BONDS.
Two Plans Proposed for Providing for Their
Payment
AorEsrroy CONGRESS WILL HAVE TO MEET BE-
FORE ADJoURSnENT-THE CONDITION OF TIE
DISTRICT DEBT-TREAsuRER HUSTON FAvoRs AN
OUTRIGHT PAYMEST-A ROUNDING SCHEME.
Amatter Of great interest to the District
was referred to in the debate on the District
appropriation bill last week. IL raises ques-
ton which Congress will have TO meet at once.
A considerable amount of the debt Of the
District Of Columbia falls due during this
fiscal year and another large sum during lSS2
There is no money to meet this debt. which Is
in the shape Of bonds Of various kinds, and
some action by Congress before adjournment
IL positive necessity.
THE MATURING BONDS
On July i, 1891, the following bonds are pay
able:
Six per cent permanent improve
ment bonds <,'Zo,foV
Seven per cent permanent improve
menf bonds ....-....--.-.....--. Z0,foo
Making total of. ..-..--. s3, 0lO, $50
In 1892 the following District bonds mature;
Twenty-year per cent funding bonds. 1915, 800
Market stock per cent bonds A, 400
Making total Of. .S92O. 300
II will thus be seen that in the next two years
- Ell l.alx of he
become payable. With what Is this to be metz
THE SINKING FUND.
There is the sinking fund, of course. In 1878
the control of the District sinking fund was
turned over to the charge Of the treasurer OF
the United States. The debt of the District
at that time was 81 LOG $50. Since then there
have been issued two series of bonds, an issue
of 3.65 funding loan bonds amounting to
S945 $50 and an issue Of per cent funding
bonds amounting to 81 ,O92, 300 making total
issue of q, 03S, $50. During the same period
bonds have been retired, by the action of the
sinking fund, amounting to "a 1868, $50, leaving
the outstanding debt of the District on June
/. 1880 Sl9 Isl $50. The debt since 1878 has
therefore been decreased q. 325, 500.
OF late years it has been the practice to ap-
propriate in each years appropriation bill for
interest on the debt and sinking fund Sl,-
23, 947.T.
THE DEBT TO BE MET.
The operations Of this sinking fund for the
fiscal year ending June 80, 1891, will, according
to the treasurer, reduce the amount payable at
that time to g, 700 600 and the sinking fund for
1892 applied to the bonds due in that year will
reduce the amount due to about $500, 600. This
leaves Congress and the District face to face
with the problem OF what Is best to be done
with s.. 200, 900 worth of bonds falling due in
1891 and 1892.
THE TWO PLANS.
There are two plans which have been pro-
posed, although neither has been discussed or
looked into as yet by the District committee.
To REFUND THE BONDS.
One provides for the refunding of the bonds
and Treasurer Huston has even submitted a bill
to this effect, which provides for the issue of
registered bonds bearing interest, payable
semi-annually, not to exceed per cent per an
num- The bonds to be redeemable at pleasure
after two years and payable ten years from
date. The proceeds Of the bonds to be applied
to the redemption of the bonds maturing in
1881 and 1892
1t is estimated that the sinking fund would
be well able to retire all of these bonds before
maturity and meet at the same time the other
outstanding bonds as they fall due.
CONGRESS TO APPROPRIATE.
The other plan is for Congress to appropri-
ate the sum necessary to meet the bonds matur-
ing in 1891 and 1892 as they fall due, the amount
to be repaid from the mixing fund in annual
installments. paving 3 per centum per annum
upon the principal sum remaining unpaid.
These are the two proposals. Either one
would meet the dilemma. yet neither has been
considered. One of these measures must be
adopted OF some other definite action taken BY
Congress before adjournment
What do our rulers at the Capitol and their
advisers think about the matter? Very little
Only few people have thought of the situation
at all.
THE TREAsuRKR's VIEWS.
Treasurer Huston, who is ex-oficio commits
sioner of the sinking fund of the District,
thinks the emergency could best be met by the
latter plan, appropriating the money outright
and receiving 1t back in installments. He ap-
proves of this plan on the score of economy and
thinks the whole amount could be returned in
SIX years
Mr. McoMAs ON THE SUBJECT.
Mr.. McCOmas, the chairman Of the subcom-
mittee of the appropriations committee, in
charge Of the District appropriation bill, has
thought Of this matter and referred to it in
speaking on the appropriation bill. To STAR
reporter Mr.. McComas sad he considered the
question of attending Immediately to these ma
turing bonds as Of the very greatest i'm portance.
The matter was without the jurisdiction Of the
appropriations committee, as all that commit
tee could do was to provide properly for the
interest and sinking fund according to the laws
He understood. however. that the District CON-
mittee. under whose jurisdiction the matter
fell, intended to report a bill containing either
the refunding or deferred payment plan. This,
he thought, should be done at once In case
the District committee failed to act which he
did not believe would happen, he should be in
favor Of adding, even contrary to rules a pro-
vision TO the appropriation bill covering the
question. Mr. McComas in favor of re-
funding the maturing bonds by issue of a new,
low interest bearing bond. which he was con-
ndent would be readily taken up.
THE DISTRICT COMMITTEE TO ACT.
Mr.. Grout said to the reporter that the Dis
txict committee had not as yet considered the
question Of the maturing bonds, but would un-
doubtedly do SO in a very short time and take
action on the matter. He had not yet suifi-
ciently studied the question to determine
which plan Of procedure he should favor
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