Evening star., 1901-12-28
The Defcit and the Organic Act.

The Defcit and the Organic Act.
There Is no real obstacle IN the way OF
satisfactory solution by the House appro-
priations committee of the problem pre-
sented by the prospective failure OF the Dis
trict's revenues for the next fiscal year to
meet the local share of the full sum asked
by the Commissioners to maintain the capi-
tai 1t Is true that II the original estimates
are accepted by Congress and the bill Is
framed according to them, the District VIII
be unable to meet its share OF the liability
In cash collected within the next fiscal year
through the ordinary methods of taxation
There will be an apparent deficit 10 be met
either by direct advance from the federal
treasury to the Districts account OF by
bond issue. II the latter alternative Is
adopted. though the weight OF argument Is
against II. legislation to authorize the Issue
Will. of course, be necessary, and that leg
iSlation must originate with the District
committee. But if the federal advance Is
to be the means of solution, there Is no need
Of delay or a curtailment of the estimates
in the appropriations committee. or of I'M
mediate recourse to the District committee.
Examination of the organic act, which
provides the present system of government
for the District. discloses the precise order
and method OF preparing the Districts ac-
counts That act requires that the Commits
sioners shall submit annually TO the Secre-
tary of the Treasury a statement of the
work proposed to be undertaken by them
during the ensuing year, and an estimate
of its cost together with an estimate Of the
cost OF maintaining the District govern
ment. No intent is shown in the language
IL
framing their estimates, take into account
only the probable cash revenues from local
taxation
The estimates framed thus according to
the needs of the District as the law directs
and not with reference to the revenues in
sight are to be approved by the Secretary,
with such changes as he may deem neces-
sary in the public interest, and then sub
mitted to Congress That body is then to
pass upon the estimates and to the extent
that It approves of them, it shall appro-
pirate the amount of so per cent thereof out
of the federal treasury, and the remaining
80 per cent shall be levied and assessed
upon the taxable property and privileges Of
the District other than the property of the
United States.
The local taxation IS in theory adjusted
to meet the approved estimates; and the
estimates are not framed to accord with
future tax revenues. 1t is clear, however,
that the law contemplated neither deficit
nor surplus on the District side. Neither
Is possible today II the law Is strictly
executed. But in fact the Commissioners
have estimated according to probable rev.
enues: Congress has reduced these esti-
mates and appropriated in accordance. and
the District has. until very recent years,
found itself over-supplied with revenues
forming an annual surplus; and now. In
consequence of specific congressional viola
tions of the organic act, it faces deficit.
The annual SurpluSes thus accumulated
have gone into the hands of the federal
government and have been held there with
out the payment of interest to the District.
Why should not the treasury, having thus
exacted from the District advances or free
loans for many years, now advance to it's
local partner in the maintenance of the
national capital sum sufficient to meet
the current needs and the new projects
when the estimates exceed. for the present,
the revenues in sight? There should be
reciprocity in these advances. For many
years the District was required to raise by
taxation more than one half Of the amount
which Congress was willing to appropriate
Now TO meet a temporary emergency the
nation should be permitted to advance as a
loan some addition to the half which would
properly be collected from it.
The appropriations committee can justly
and legally take the organic act as guide
and, following 1t in this emergency, ap-
prove such of the District estimates as It
considers worthy of approval, and appro-
pirate out of the federal revenues enough
to meet the full federal half of the local
budget. framed according to the needs of
the growing District assuming that If the
Districts tax revenue shall not suffice to
meet its share of the expenditure, there
will be provided a partnership advance to
the Districts side of the account of a sum
sufficient to meet the local half with in
terest If preferred. This advance to meet
possible deficit of uncertain amount need
not in fact be authorized simultaneously
with the presentation of the appropriation
bill to the House. 1t may be provided at
later stage The whole case Is in the
hands Of the appropriations committees of
Congress and Of the treasury to adjust the
ACCOUNT between the partners as the re-
quir~ments OF the capital demand.
Unless ya,