Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-12-05
The District Estimates.

In recommending cut in the District
estimates Secretary Shaw incidentally calls
attention in an emphatic manner. though
not i'm terms. to the necessity for an 1mrne-
date adjustment of the fiscal relations OF
the District and the general government
The Secretary, contrary to the practice
which has obtained for some years past
suggests that the estimates for the MAIN
tenance of the District be brought down to
the estimated revenues. thus involving cut
of a little less than 81, 100000.
The Commissioners estimates have of late
years been frankly higher than the ex-
pected income of the District warranted.
Congress having undertaken the prosecu-
ton of certain large permanent works with
out providing the means for paying their
cost otherwise than out of the current tax
revenues of the District with their compile
ment from the federal treasury. deficits
have annually accumulated, which have
been met by advances by the government
with interest at two per cent year. Those
advances. at the close of the current fiscal
year. will aggregate s2,313,959,07, and the
interest charge $4,000. The works already
authorized are costing more than enough,
added to the current expenses of the Dis
trict government, to consume the revenues,
next fiscal year there will be another deficit
to add to this sum.
The Commissioners have estimated for the
local expenses in two classes those for the
current maintenance of the municipality
and those for its permanent works. They
have scaled the estimates for the former
class to point somewhat below the
estimated income, leaving considerable
margin to meet the cost of the permanent
works, but not enough to defray the years
outlay on them and at the same time to
meet the sinking fund requirements in
volved in the federal advances. 1t is obyi-
ously impossible, under this system to
scale the appropriations horizontally to the
estimated income. To do so would involve
either a paralysis Of the municipal ma
chinery or the stoppage of work on the
permanent improvements.
Technically, the Secretary of the Treas
ury is observing the spirit of the organic
act which directs the submission of the es-
Inmates through him to Congress, in point
of the final framing of the budget. ITO the
extent to which Congress shall approve of
said estimates says that statute, Con
gress shall appropriate the amount of fifty
per centum thereof, and the remaining fifty
per centum shall be levied and assessed
upon the taxable property and privileges
in said District" Thus according to the
organic act the appropriations determine
the revenues. OF late years the estimated
revenues have determined the appropria-
tons, until the present condition was ere
ated by the effort of Congress to force the
District to pay for Its permanent improve
ments out of its current income. ......,-..-7
The plea of the Commissioners voiced in
Mr. Macfarlands letter to Secretary Shaw
accompanying the estimates. printed today,
is that these annual federal advances, rem
dered necessary by the policy of appropriat-
ing In totals which exceed the revenues, in
order to execute these great works, should
be established in law on the basis of a
definite long-term loan by the government
to the District, to be repaid in regular and
equal installments. The term now stated
in the statutes is absurdly and inequitably
short. 1t is. certain that. the District, at
the end of the period named in the last
advance will be still borrowing money
from the treasury. instead of being able
to repay it to liquidate a completed loan.
The public demand today. therefore, is that
the total cost of these works now in prog
resS be carefully estimated and the total
fixed as the general limits of the federal
advance, with provision. for the regular
and systematic repayment from year to
year out of the revenues left over from the
proper maintenance of the District govern
ment
This method of obtaining money to defray
the extraordinary expenses is eminently
satisfactory. save that 1t leaves the tax
payer of the present and the immediate fu-
ture in danger of bearing disproportion-.
ate share of the burden of liquidation
There need be little apprehension on the
score OF the Secretary's recommendation of
a horizontal cut. The total he fixes is still
sufficiently above the current appropriation
to insure fair degree of increase in the
budget if 1t should be reached by the ac-
tual appropriations. But there is reason to |
demur at the sudden and unwarranted |
change in the method of transmitting the !
estimates and the ignoring of the reasons |
for placing the estimates higher than the |
expected revenues