Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-01-26


The only vital objection to the bond Dill
raised by Mr.. Bowen, representing the Ia
Dor organizations, Is that which ATTACKS
the principle of Understanding bonds. HIS
other criticisms could be duly weighed, ana
II considered sound be made the basis OF
amendments: but IL under no circum-
stances municipality should contract an
Understanding debt, any bond issue Is
logically prohibited in advance. The argu-
ment against bonds Is of course applied IN
this case to the conditions of the District,
but the line of reasoning which IS rehed
upon to establish that a bond-issue would
be uneconomical for Washington. with us
so-called annual surplus. would Demon
strate the greater folly of community
which without such a surplus should
enter upon this alleged extravaganza,
money draining and money-wasting pol
ICY Not to run into debt Is a sood
rule both for individuals and municipalities.
But when the business man can by the
immediate investment of larger sum than
he possesses cause the money to become
productive of vastly greater returns than
the interest charge on the loan, he wisely
runs into debt And so with a community,
which needs some great public works, that
must be completed before they can be en-
joyed In airy part. and which has not the
means in current revenues to meet the
large sums Immediately required for the
prompt and economical completion OF these
improvements. The benefits Of these WORKS
are enjoyed by the individuals constituting
the municipality of succeeding future
years, and Ii Is just that they snould De
paid for In accordance with some method
which will Distribute the cost equitaoly
among this succession of tax-paying and
benefited washingtons instead of taking II
I'm a lump, il that were possible. from the
current revenues of the Washington OF
today.
IL has been demonstrated that the piece
meal method of building a comprehensive
system of sewerage is thoroughly wastetui
and extravagaut. 1t Is vicious metnou
everywhere else. and it is a vicious method
here. Washington needs for this work q
much larger sum of money than can be
spared from the current revenues during the
time necessary for it's prompt completion,
even if Congress would make the required
direct appropriations, which, in the light
of experience, every one knows that Con-
,gress would not do. The conditions. there
fore, all seem to suggest the wisdom and
economy OF running into debt, IL our
national partner will authorize and par
ticipate in the indebtedness. The reason
ing is fallacious which treats Washington
as a wealthy Individual in whose case 1t Is
preposterous to suggest the necessity of
obtaining loan.
This municipality Is a partnership, and
the active and governing member OF the
firm, the national government, will not put
up In money Its share of the large i'm
mediate expenditures absolutely necessary
for the proper conduct and future pros
perity of the business. even if the other
partner. the local taxpayers, was able to
do so. Moreover, the citizens of today
could not afford to pay out one-half of the
sum required, and it would not be just to
require them to do go. The local silent
partner in the firm. keenly appreciatinG
the necessity of the proposed improve
ments, and finding it impossible to accom-
plish them through direct appropriations
of money. is endeavoring to induce the
active partner to raise the needed money
on credit, and this can be accomplished al
an exceedingly low rate of interest, for the
active partners credit is very good.
The permanent benefits of the bond-issu'
to counterbalance the temporary interes
snd sinking fund charges will be found IL
the improved health and attractiveness ant
the increased population and taxable values
of the city. 1t does not appear that Their
will be any necessity to raise the tax rate
The current needs of the city will be me
In the future by direct appropriation from
the current revenues In more or les
satisfactory manner and after more or les
of controversy, as they have In the recen
past. The so-called annual District sur
plus, which represents the amount of loca
taxes which Congress Is unwilling to NEE
by direct appropriations. will be decreased
by the sum necessary to pay the interes
and sinking fund charge on these bonds
Washington, unable to secure direct ap
preparation of this surplus, will cause il t
be largely applied in advance on the half
and-half principle to vitality necessary i'm
provements, and the temptation to Con
gress of using this unexpended balance il
some ill-atvised way or in violation of tn
principle of proportionate contribution is il
large measure removed.
Most of Mr.. BOwen'S reasoning against
bond-issue would. ii carried to it's logica
extreme, abolish credit and interest-bearinl
obligations. If ashington could be au
thorized to issue Notwithstanding obi
gations. prepared on silk-threaded pape
in the highest style of the art or other
wise, to pay for these improvements.
would of course be cheaper for the loca
taxpayers, but until the financial system
which now prevails Is revolutionized tn
District may consider itself fortunate If i
Is permitted to contract an interest-bea rin
debt for such worthy and vitality importan
purposes. in company with Uncle Sam. an
at the low interest charge which his credi
assures.
A MIR. Law, who was sat down upon b.
Tammany in an effort to reorganize tina
association. doubtless probably has som
suspicion that his name was against him.