Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-12-05
NEW SYSTEM NEEDED.
Commissioner Macfarland
Writes to Secretary Shaw.
THE LOCAL EXPENSES
PROVISION REQUIRED FOR Elk
TRAoRDINARY EXPENDITURES.
Adjustment of the Matter Earnestly
Desired by the Commits
sioners.
THE LOCAL EXPENSES

Commissioner Henry B. F. Mcfarland,
as president of the board of District Com
missioners, in transmitting the estimates
to the Secretary of the Treasury, forward
ed the following letter relative to the Dis
trict budget:
1.-The Commissioners of the District of
Columbia have the honor TO invite your
attention to the distinction made by them
In the preparation of the estimates for APP
preparations for the District of Columbia
for the fiscal year ending June 80, 1905.
presented by them to you on October 10,
1904, for transmission to the Congress be-
tween two classes of expenditures, a dis
tinction which they believe should be OBJ
served In any consideration of these estf-
mates. The Commissioners prepared them,
as they prepared former estimates in recent
years, to extraordinary expenditures on ac-
count of large projects of municipal i'm
provement, authorized by acts of Congress,
or of pressing necessity, which in either
event ought to be completed in the near
future, and, second, to the current ex-
penditures required for the proper MAIN
tenance of the District services
The Extraordinary Expenditures.
1.-THE first class comprises all estimates
relating to extraordinary projects of i'm
provement calling for large expenditures
within comparatively short period, al
though the benefits of such improvement
may be enjoyed for many years to come.
The cost of such improvements, it is every
where recognized, cannot be properly met
out of current revenues, but ought to be
spread over a long period, and, accordingly,
1t is customary elsewhere to provide for
their cost by issuing bonds and providing
a sinking fund, to meet principal and in
terest.
1.-The United States government does not
have to make any such arrangement to
meet its share of the cost of such improve
ments in the District of Columbia, because
1t has sufficient money in it's surplus funds
tn the treasury for that purpose. The Dis
trict of Columbia, however, has no ac-
cumulated surplus fund, but, like every
other municipality, must borrow money to
meet it's share of such expenditures, be-
cause its current revenues cannot bear the
demands of such extraordinary expendi-
lures without either such an increase of
taxation as would be confiscatory or such
a reduction in current expenditures as
would seriously cripple all the District
services. 1t Is obvious that neither of these
things can be permitted.
Government Loan Recommended.
1.-THE extraordinary projects of improve
ment authorized by Congress and required
by the community must be carried
just as important that all the regular mu-
nicipal services Of the national capital shall
be steadily carried on, and increased and
improved with the natural growth of the
District Of Columbia. The Commissioners,
therefore, have repeatedly recommended tc
Congress well knowing that Congress was
unWliilnS TO authorize the issue OF DOndS
for the purposel that the Secretary Of the
Treasury be authorized to make advances
from the United States funds to enable the
District to meet its share of the cost Of the
extraordinary improvements, with provi-
sion for repayment by the District within a
reasonable period, with interest, which can
be done out of its current revenues without
interfering with current expenditures. A
permanent arrangement Of any kind for
this purpose has not as yet been made by
Congress, but 1t will be once more asked
at the coming session by the Commission.
ers, to adopt this plan.
THE fact that Congress has made but
temporary provision, from year to year, in
the acts of February II, 1901; July l, 1902;
March 8, 1903, and April q, 1904, for adj
vances from the treasury with interest, to
meet any deficiency in the District rev
enues, on a general account, comprehend
ing both extraordinary and current rev.
enues, which legislation expires the LIST OF
July next, with no provision for the extra
ordinary expenditures Of the following f1s-
cal year, indicates that Congress Is still
considering what permanent arrangement it
will make in this regard, and encourages
the hope that such plan as the Commits
sioners have recommended may DO
adopted.
Businesslike Adjustment Wanted.