Evening star. [volume] (Washington, D.C.) 1854-1972, 1892-02-20
DISTRICT FINANCEA
An Interesting Debate ON the Subject In the
Senate Yesterday.

Senate Yesterday.
IT AROSE ON TEE PROPOSITION TO ISSUE BONDS
TO PAY FoR THE EXTENSION OF STREETS ANp
AvKNUEs-sEvERAL SENATOR'S Express rHErr
VIEWS WITH CONSIDERABLE FREEDOM.
District finances received more than little
consideration in the Senate yesterday after.
noon. The measure under consideration was
the bill to extend the streets and avenues.
Senator Harris, who is in charge Of this i'm.
portant legislative project, called it up and
briefly argued the necessity for its immediate
consideration and passage. Every year Of
postponement would. he said, increase the cost
Of extension from 80 to so per cent
The debate was almost entirely on the propo-
sition to defray the expenses by issuing
100000 in bonds at 8 per cent. As stated in
yesterdays STAR, Senator Cockrell at once suc-
gested that per cent interest was more than
the United States ought to paw on apy Of its
obligations. The present Secretary Of the
treasury had no trouble in extending Az per
cent bonds at 2 per cent The bonds should
also be redeemable after thirty years and nav
able at fifty years. 70
senator Sherman thought twenty years
would be better than thirty and Senator Cock
rell thought so, too
Senators Stewart and Harris dissented, but
wouio compromise on thirty years. that would
be satisfactory to the business men of the Dis
stict ana the District Commissioners.
VALUE OF .. g. BONDS
Ihis, said Senator Cockrell, sis q United
states bond. 1t is not worth while to talk
ABOUT Its being District bond it is Q bond
OF the United States, and today bonds of the
united states drawing 2 per cent interest and
running twenty years would bring a big pre-
MUM. Now, what is the use of talking about
TINS question Of interest? United States
D0nd bearing any rate of interest is money for
all practical purposes in the United States and
the interest added to it
MI. harris-The Senator is quite right; the
Ialth OF the United States is pledged the bond
goes upon the market with all the dignity and
assurance OF payment that the United States
can give; out one-half Of the accruing interest,
one-haif OF the sinking fund that must ex-
tinguish these bonds at maturity, comes out of
she taxpayers OF the District of Columbia. They
have asked that these be made fifty-year bonds
In view OF the fact that they have to respond
pom 10 the principal and interest at maturity
period that the bonds have to run, beg that
the Senator will take that into consideration.
THINKS TWO PER CENT TOO Low.
Mr.. Sherman said: II do not want to partici-
pate In any proposed legislation that will pre-
vent the carrying of this measure into execu-
ton. 1 do not think there is anything in the
condltlon OF the money market which justifies
any one in saying that an ordinary PER cent
bond issued by the District of Columbia or by
the United States will sell at par. There are
several reasons why the recent bonds were
taken and continued at 2 per cent First, be-
cause all Of those bonds that we're continued at 2
per cent were held by national banks-I think
none OF them were held by private individuals
and the banks, rather than purchase other
bonds and go into the market to buy them at
the market price, preferred to continue them
along at the pleasure of the Secretary of the
Treasury at per cent. 1t cannot be said, there
fore, that per cent is the rate Of interest at
which We can negotiate bonds"
MR.. M'PHERsoNs ARGUMENT.
Mr.. Mcpherson suggested that no 2 per cent
bond could find much favor among the people
of this or any other country unless it carried
with it some special privilege. No government
in the world except the United States could
without special privileges float its debt at less
than per cent. 80 l say" continued the
Senator, If you wish to prevent these i'm
provements from being made. if the improve
ments themselves are dependent upon the is
sue OF these bonds, and take it they are, the
result will be that no improvements will be
made. The government issues the bond and
the government is responsible for its payment,
but the government of the United States is az
well the government of the city Of Washington.
1t pledges itself to pay oneShaf Of the interest.
1t pledges itself further torequire the payment
OF the other half of the interest by the people
Of the District or the parties benefited by the
improvements"
Senator Berry wanted to know why the United
States had to issue bonds to raise money. What
had become of the treasury?
Senator Harris said the treasury was not in
condition just now to lend money for the bene-
fit OF the people of the District OF Columbia.
Senator Berry then put himself ON record as
opposed to the borrowing Of money at this
time. He favored paying the cost with legal
tender notes.
Senator George also favored legal tender
notes.
TAXATION OF THE BONDS.
Senator Chiffon said the bonds should not
be exempt from taxation. Then he went on
"Here it is proposed to issue a large amount
of bonds and give those bonds life Of fifty or
twenty years, and if We 60 further and recog-
nlze the present basis of division, and pledge
the government faith accordingly, it may not
remain in the power of Congress hereafter to
rearrange and redistribute the expenses of the
District SO as to affect the liability Of
the general government in respect to the
1000, 600 Of expense about to be incurred.
think, therefore, in any point Of view the bill
as now constructed Is Objectionable, but beyond
all this, for one, have never believed that
there was any justice in imposing upon the
whole people Of this country 50 per cent or any
other considerable part Of the expenses Of this
city. On the contrary, have long been con-
WINGED that such division was fundamentally
wrong and unfair to the people Of the United
States who live outside OF the District of Co.
lumbia."
Mr.. Harris said: "In answer to the suggestion
Of the Senator from Texas will state that the
proportion of SO per cent Of the current ex-
penses of the administration of the government
organic law, based upon the fact that the gov
eminent of the United States owned quite half
or mora than half Of the property in the Dis
trict OF Columbia.
Il wish to correct statement that made my
self a few moments since in respect to the pro-
portion OF the expenses of carrying out this
plan. l have stated once or twice, / believe,
that the expenses would be paid one-half by
the government and the other half by the tax
payers Of the District Under the special pro-
visions of this bill one-third of the expense is
levied upon the adjacent property to thes i'm
provements."
SENATOR CoCKRELLs VIEWS.
After brief discussion on the 365 District
bonds aud their history Senator Cockrell at.
tackled Senator McPherson's conclusions. He
said:
1.-THE Senator from New Jersey speaks about
nobody taking q z per cent bond unless it 10
poses. This is more than 2 per cent
bond. Even il my amendment we're
to prevail these bonds would be
more than simply interest-bearing bonds
Why? Because the principal is exempted from
taxation by the federal government by the