The Washington herald., 1909-10-26

Congress win be asked at its next ses-
sion 10 pass a bill which provides for an
extension OF the time granted the Dis
trict Of Columbia in which to pay on
its Indebtedness to the United States.
The District, considered as a partner
with the United States, carries a bonded
debt Of approximately 100000 and a
debt to the United States OF 100000 on
account OF advances made rom the
United States Treasury. Congress re-
quires that this debt Of 100000 be paid
within five years, with interest at 2 per
cent
The bill provides that the Commission
ers shall first set aside a sum TO meet
all estimated and fixed charges required
by law. 10 be paid wholly from the reve-
nues available for appropriations. in
Guiding interest at per cent on the an
nual balance due the United States, and
that the annual estimates OF appr0pria-
tions for the expenses Of the govern
ment shall not exceed twice the estimates
OF the revenues then remaining.
Provision for Payment.
Provided. THAT the Commissioners
shall allow for the extinguishment OF the
bonded debt OF the District Of Columbia
out Of the combined revenue fund. by an
nually including in their estimates a sum
OF Sg75.4os. until the debt as evnced by
outstanding bonds shall have been extin-
guished: thereupOn and thereafter
! the Commissioners shall annually include
I in their estimates OF appropriations
an amount Of SiS774. payable
wholly from the revenues Of the District
Of Columbia. 10 be applied % the deot
/ then owing 10 the United States, until
/ such Indebtedness shall be eXtinguished.
! The Commissioners. I'm letter 10 the
! Speaker OF the House Of Representatives
| and the President OF the Senate, say,
in addition 20 current needs. provision
has been made FOR the payment OF 1915
| 40S on account OF interest and sinking
fund pertaining TO the bonded Indebted
ness. and provision has further been
made Tor payment 10 the United states OF
! $3.50. COZ. principal and interest. on account
OF advances made by the United States
20 the District proper.
The debt Of the District OF COlumbis
| considering the latter as made up OF
two partners. the District proper and the
United States includes a bonded debt OF
approximately Sl0O00.000 The District
proper owes the other partner. the United
states. approximately 100000. Inasmucf
/ as repayments on account Of this &.0ao0
| interest and principal. will be deduceeC
from the Districts future contribution.
20 the partnership fund. perforce the con
tributions Of the other partner, the United
States. will be diminished accordingly.
THAT is 10 say. In the future, as TIT
District proper repays 90 the Unite
States this 100000. with interest. tn
total means available OF the partnership
viii be reduced by an amount equivalen
20 SS000,ooo. with interest at . per cent
The financial condition Of the District
then, considered as a partnership, is pre-
cisely as II Il owed q bonded debt o
/ SlS.o0o.OJ0 bearing interest at 3.s5 pc
cent. and a floating debt OF approximate.
SS.Uoo00. bearing per cent interest
To BE Paid in Five Years.
1T appears 70 be the intention Of Con
gress that the floating debt shall b
paid of In Eve years. The bonded deb
must be paid of within fifteen years. &
the bonds are 20 be met al maturity
Thus the District. considered as a part
inership appears obligated to pay of 81
debt OF virtually SlS0o000o. wholly within
/ fifteen years and in very large part within
FIVE years
Due 20 payments on account Of debt
the combined resources Of the Distric
available for general purposes. are II
/ effect reduced In the estimates submitted
for the fiscal year 1911 by 1885. 4Os.
while. as above stated, current need
have been amply provided for. yet {
must be admitted that no sufficient pro
vision has been made for the man.
! great public works Of importance 10 III
future. which should be undertaken an
carried forward with reasonable rapidity
In the past. this provision has been mad
by general advances from the Fedora
Treasury. II is apparent. however. tina
, II this arrangement IS continued, N
amount Of debt now incurred will b
greatly increased. and its burden Wi
eventually rest heavily upon the District
The solution of this problem. in tn
opinion OF the Commissioners, lies i
extending the period of time in whicl
the debt of the District shall be paid
Extension Proposed.
1T is proposed. therefore. II Congress
shall extend the time during which IN
debt shall be paid 20 some such perio
as twenty-five years that It shall b
made obligatory upon the Commissioner
In submitting their estimates. to provid
annually for such reduction OF the deb
as will make 1t each year less and less
and finally eXtinguish il. principal an
interest. in about twenty-five years: Z
borrow more money from the Unite
States Treasury, or elsewhere. and I
provide annually for extraordinary I'm
provements on the scale on which the
might have been undertaken in 1911
l With this letter Commissioner Judso,
submitted estimates OF what he calls Eek
traordinary improvements" They are a
follows;
II Reclamation Of the Anacostia Flats. s.
552,320; Improvement OF Rock Creek Val
ley, 81, 10000; Improvement Of the harbo
front l,2Oo,OOO; high-pressure fire protec
ton system, $50, 600; park system Of tn
District of Columbia. $1,000, 900: suburba
trunk sewers, $4,000; municipal hosp
tai, 100000; elimination OF dangerou
grade crossings outside the city limits
100000; extension OF trunk water mains
I 100000; buildings for reformatory an
workhouse. T,00O0O0. This makes a tota
4 lie ga o. 40.