Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-01-26

bonds out to the extent Of some twenty
one millions. as was the case over a quar-
ter of q century ago, the total funded debt
now reaches the sum Of about twelve and q
half millions.
How It Has Been Done.
In this interval of time the city has not
only grown wonderfully in population. but,
of course. its financial resources have ex-
panded. Almost new city has sprung up
owing to the advance of the population be-
yond the former urban bounds. Streets
have been opened and improved and all the
departments of the city government have
protection. the fire security and the other
facilities and necessities throughout a
greatly enlarged territory.
1t Is interesting to know how this has
been done without adding to the funded
debt. Certainly it would not seem possible
for any municipality, however well man.
aged. to be able to keep up with all the
needs Of growing city with no other re-
sources than current revenues, unless the
latter were produced by a higher rate Of
taxation than Is common in cities. 1t may
be said at once that during all this period
the taxation has never been anything else
than equitable that is, generally speaking,
for the system that prevails here is a tar
get for criticism both in and out of Con-
gress, as all taxation is apt to be.
Nevertheless it is true that what are ex-
traordinary charges in the annual budget
Of city were never attempted to be raised
In this city by direct increased taxation.
The natural query Is. How was it done?"
or. rather. How is 1t done?" An answer is
found in the course followed in financing
the necessary extensions of the water and
the sewer systems OF the city. In those
two directions, as a rule, are to be found
the sources of a large part of the bonded
Indebtedness of any city.
Here. where practically not only sewer
provision has to be made for an enlarged
territory, but also what amounted to a new
system had to be installed, the expense
was great. and, in fact. during the past six
progress some five millions of dollars has
been expended for that purpose. Then
there is what is called the high water
service. which is providing that necessity
of modern life for the use of the great
population that has flowed past the old
borders Of the city and located on the hills
that surround it. A greater supply had to
be secured for the city proper with new
reservoirs and filtration plant.
.. For Water and Sewers.
For the latter purpose it is estimated that
more than s2,OOO.O0O have been expended
from year to year and the entire cost to
carry out the adopted plans will amount to
81 100000. For these two purposes the sum
of 100000 has been spent in the last ten
years or SO. Now, where has the money
come from? The answer is that a large
part has come from the current revenues
of the city and the balance is represented
in advances from the United States treas
ury. which bears interest at the rate Of 2
per cent.
At the close Of the fiscal year which end
ed in June last the total amount-of the
advances or as it is called the floating debt
of the District was within 100000 of reach
ing $3,OOOOOO. The city is also to pay half
of the 81. SOC, 600 which is the contribution of
the government toward the cost to the
steam railroads of the new union station
and terminals in this city. This will in
crease the floating Indebtedness and bring
up its total to about $3.75O.000.
Paying OF the Debt.
Under the terms of the arrangement by
which advances were made from the treas
ury instead Of resorting to the usual meth
Of municipal finances and issue bonds, the
repayment of this money was to begin after
the close Of the past fiscal year. The re-
turn of a portion Of this debt to the gov
eminent by the payment of more than
$5OOOOO Is provided for in the appropriation
bill which Is now pending in Congress.
At the same time that slice Of half a
million Is being taken off the floating debt
the surplus revenues of the water depart
ment. which amounts to about $3.50. 600 Is
to be applied to a reduction of the indebted
ness due from the extensions of the water
supply. so that it will be seen that during
the present fiscal year in addition to meet
ing the current expenses Of the municipal
government this city is also going to pay
over three-quarters OF q million dollars OF
floating indebtedness.
Opposed to Bond Issue.
1t should be borne in mind that under
the operation Of the sinking fund law,
which has been in force now for a good
many years. the funded debt Of the Dis
trict is each year being decreased. For the
past year something like $750.0O0 was
paid on account Of interest on the funded
debt and sinking fund charges.
It will be recognized that in the manage
ment Of the finances of the District some