The times. [volume] (Richmond, Va.) 1890-1903, 1898-12-25

| resolution 90 each Of the Senators and
REPRESENTATIVES in Congress from the
[ session. Forty-fourth Congress IT, r.
MR. JONES BILL
On January 18Th Of this wear ReDresen-
taive Jones Of Virginia introduced the
"A bill giving 70 certain States having
I Chains Tor moneys expended or expenses
| Incurred in defence Of the United states
| during the war Of 1912 10 1914 with Great
! Britain the right 10 have the same adj
! Indicated by the Supreme Court Of the
! United States.
Whereas the States Of New York
| Pennsylvania. Delaware Virginia. and
! South carolina have claims for moneys
| expended or expenses incurred I'm defence
Of the United states during the war Of
! 1870 and 1914. therefore
BE 1t enacted by the Senate and House
! or Represent atives Of the United states
| Of America IN Congress assembled. that
| any Of said states having n claim for
| in defence of tho United states in The war
/ Of 1872 10 1914 with Great Britain is here
| Dr. given the right. within one yoar from
| Tho passage m this Act 20 file petition
! I'm Tho Supreme Court Of the United states
| and have he same adiud'cato1 and deter
minc3. Said court shall oiWifhstan3-
! ing the statutes Of limitation or settle
monte heretofore made hear determine
and give judgment upon such claims no.
/ cordinc 10 law. and said court shall give
Sucn causes precedence
The bin has never been reportod from
committee. and under the rule Of Reed
viii doubtless remain buried
HISTORY or THE DEBT
All the important facts and contentious
In the case which 1 have been able 10 sc-
cure arc contained in the following syn
opSes of public. documents.
At the ilrst session Of the FOrty-ninth
Congress. Mr.. Connaliy f. Irgg. then q
member from Virginia. reported from th.
committee on Claims bid directing The
81 ..f e
settle tine accounts of certain States and
the city of Baltimore growing ont OF
moneys expended by said states and the
6 atty Of bal,imore, for military purposes
The report recitcd the fact that during
the war Of 1872 the States of MassaChu.
setts, New York. Pennsylvania. Delaware
Maryland, Virginia. South Carolina. and
the city % Baltimore advanced certain
moneys for military purposes. The 70
payment. with interest. many years sub
sequent was acknowledged. but attention
was directed 10 a formal protest from the
states against the method of computing
interest The method was his.
ITO compute interest on the sum ad-
vanced hy the state from the date of adj
Vancement ND 10 the time of refundins
20 The state by the United States any
portion of the sum advanced. deduct the
sum refunded from the advancement and
then compute interest on the balance and
$50 on until the final payment of the prin-
cipal."
THE OLD METHOD.
The rule is quoted from an official re-
port of the Second Auditor of October SD.
1893. Ia mentioning Il the Second Audit
tor said that mode Of computing interest
seemed TO nave been cOeval with the or
ganizati0n Of the government, as cxhib-
tied i'm the veto message of President An
drew Jackson, December g. 1872. on bill
entitled An act providing FOR the final
settlement Of the claims OfStatos for in-
terest on advances 20 the United State
Oil
In citing the protest Of the States Mr.
Trgg's report said:
1T was a plain neglect and refusal Of
tho United States To- refund the WhOl0
amount borrowed To illustrate: sun
pose I'm the emergency of war. Virginia
one Of the States, should borrow a mil
Hon dollars at per cent, and advance
the amount 10 the United States. Six
teen years atterward, when the intercs'
would about equal the principal the Unit
cd states should refund "a million. but
Insist that 1t shall be applied TO the pay
mcut Of the principal Sixteen years
afterward another million is refunded and
Il is applied TO the payment OF the item
of interest. the interest not bearing i'm
tertst. the whole debt, principal and ir-
terest, would Doe paid according 10 this
mode of adjustment Meanwhile Viz
eiuia has paid her creditors one million |
of interest during the first sixteen years.
another million during the period Of six
teen years and stu owes the million Of
principal Virginia. in the case supposed. |
paid out q million doiinrs more than the |
United states refunded"
MARYLAND PLAN.
Mr.. Trigg then cited the case Of the |
settlement with Maryland when her ac- |
count was reOpened and readjusted. This |
is explained in the report Of the Third |
subsequently. ne sand July s. l1SO. an |
act was passed reOpening the accounts of |
Massachusetts and Maine Massachusetts |
receiving the sum Of SOS 3G242. of which |
HaH |INHH 81 NssHH T.H
tegral part OF Massachusetts when the |
advances We're made. Prior 10 this set
Element the account Of Alabama was set
tied on the basis OF the Maryland settle |
ment a bill was then introduced 90 set
Iie the account Of virginia and other |
states on the same basis. il was agreed |
10 by the senate by a vote of 80 yeas 10
- nays in 1871 The House substituted |
the following. and on June J.. 1858. il
was adopted as a section of the act MAX
ing appropriations for civil service.
g. ANA be u iurther enacted, that the
Secretary Of the Treasury be instructed
20 report TO Congress at its next regular
session all applications made by State au-
lnoilly ol the states and cities Tor the
reopening and re-eXamination Of the set
Elements heretofore made with such States |
ard cities and upon the principle Of re-
adjustment upon which said claims are
based ana the amounts thereof and the !
Secretary OF the Treasury is further in
5trucied 10 report 10 Congress at its next
fr"uiff session the gross amount that
viii be required 10 pay such claims to
The States and cities OF the United
states"
Ia response. the then Secretary of the
Treasury. Hon. Howell Cobb. on January
:, 1859 transmitted 10 CONGRESS a state
nent prepared by the Third Auditor as
of December 10 1858 EEK. Doc. No So H.
r.. second session Thirty-hfth Congress-
The Auditor said South Carolina alone
had made application FOR reOpening and |
discrimination of her claim. The act |
however. required a report on "the prin-
'iple Of rcadJustments. upon which such |
claim is based and the gross amount |
'equired 20 pay such claim" upon such |
'ea dlustment. I'm pursuance Of this di-
'ection the Auditor stated the case in
he following words.
THE CASE STATED
1T appears that during the war OF 1912 J
'arlou- states and cites made advances |
n some cases by loans made and I'm 9TH
.rs from moneys IN their treasuries-on |
recount or the military forces and in aid |
b. the prosecution Of the war. These cX-
seudltures although not shown TO Ia .e !
icen made a. the request OF The general |
government We're held 10 have been made |
rom patriotic motives and TO have been |
or the use and benefit OF the United
States Accordingly, at the conclusion |
n tho war. provision was made by law
or reiasbursipg the states, &c. that had |
made such advances AT a later period
,Tovision was also made for payment OF
nfnfnet 80 oerfnin cases. Where the
Moneys so advanced had been taken out
4 the state Treasury and applied to the
uhIc service Il does not appear that
NY interest was paid by the United
states, so far as I have been able 10
nt. eNcan- IN me caec Of South Caro-
ina; and the act providing for payment
Z interest 70 her expressly recites: "The
aoaey so expended having bean drawn BY |