Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-06-07
FINANCES OF THE NATIONAL
CAPITAL PARTNERSHIP

hoatInG debt multiplied by two to ascer-
tain the true comparative debt burden
resting upon the local taxpayer in the re-
spectiye years
Comparing the debt burdens of 1890 ann
l!hii in accordance with this suggestion.
II the actual debt OF the local taxpayer
is viewed as ST.? 1S1.O1O (alI funded in
1870. it would be in 1907 the funded debt
Slntu6.:.n plus twice the floating debt
81, $50 t:; - or s7::;S1ln a total of Sill
"s7.to6. Or the funded debt of 1890 may
be divided by two to get the actual debt
OF the local taxpayers. with the result of
S!fS"u.I2o as the local debt of 1890: s
against $3.50 J6:; floating debt nlus one
half of $10,GO6:iO funded debt or SJ,J03,-
100, a total of $500. 12S for 1907.
APPLYING the same principles to tho
debt of 1905. 1905 and 1907 VIC find that
the funded debt toue-lalf of which falls
upon the local taxpayer has steadily de-
creased. while the floating debt (Which
falls wholly upon the local taxpayer has
steadily increased. with the result of an
actual though small increase of the
volume of Indebtedness resting upon the
local taxpayers. though on account of
the increase of population the per capita
debt has decreased.
Comparing the debt conditions Of the
District in the respective years. one can
not avoid the conclusion that the munich
pal debt has been wisely handled by Con
Gress. Especially is this conclusion en-
phasizcd by consideration of tho showing
made by 50 many American municipali-
ties of the creation of vast debts to
secure funds To be largely wasted or
stolen
The good Judgment Of Congress has
been shown not only in avoidance of
Nastefnl cNtraVa2ance in the piling up
OF municipal debt and in the steady re-
ducton of the funded debt, but also in
the unneSitatinc creation and increase of
moderate floating debt for the District.
the funds being necessary other
ohta Unable. and being expended cconom;-
caliY and protahly on necessary perma
nent public improvements.
debt is blessing or n curse accord
ing to circumstances. RI man borro~s
at = per cent and earns ~ per cent on
the money, or bOrrowS at :; per cent II
month III some mining region or rich new
country and earns 10 per cent n month.
his debt is clearly economical and profit
able. Otherwise If the figures are
vcrsed In accordance with the relation
of percentages paid and earned under
the MIcawbcr system of bookkeeping
suits financial happiness or unhappincss.
The bugaboo Of debt in the abstract
has no terrors for Washington. The capt.
tai has climbed by the steps of debt to
the pinnacle of national affection and
genuine prosperity. All of tho just and
fair treatment in its relation TO the ma
ton which tho capital has ever secured
until recent wears has been obtained
through the painful process of piiins ND
obligations for necessary public improve
mentS which the national government
should itself have made until the nation
in shame has partly fulfilled its oblisa-
tons and come to tho relief of q COM
munity bankrupted in tho philosophical
effort to perform neglected national
functions and to bear unsidcd the ia
tiunHl responsibilities in capita I-blilding.
The heavy debt incurred by the city's
taxpayers in meeting obligations which,
rs the Senate committee reported, did not
properly belong t" them. brought the ma
ton through Congress to tho ctys relief
i'm 1850 and led to the first formal rccog-
milton lay congressional committee of
tho nations financial obligations to the
nations city.
= The Shepherd debt II tho seventies for
laying tho foundations Of the Greater
Washington put tho local taxpayers in
virtual bankruptcy and led directly and
inevitably to tho halt-anG-.lalf contribu-
ton arrangement of the organic act of
1878, which is the sure guaranty of
great and creditablc National Capital.
The Districts honded debt. the payment
of which in annual sinkinc-fund Install
mcntS makes demands upon the current
revenues which are sometimes Sorely felt.
represents the cost of killing forever all
capital-rcmova1 projects, and Of faSten-
ing the capital immovably in the ten
miles square. II represents the half-and
half pledge o. the organic act. 1t repre-
sents the cost of laying the firm and
solid foundations Of the rev and Great
or Washington. And being shared III
economical and profitable debt that any
municipality ever contracted.
The Districts floating debt. while in
Cured under radically different cond
tons, may be similarly commended. The
dent of 1889 and that OF the seventies
were contracted by the local taxpayers
and iuStl.' forced upon and later i'll part
assumed by reluctant national gov
eminent. But our present floating debt
was created by Congress itself at re-
quest and the credit for this wise finan-
cial arrangement is shared by both IA
ton and city. Congress no longer needs
to he forced. Many representatives. OF
the nation in both houses Of Congress are
"a enthusiastically enlisted in the wise
upbuildng of the capital as the most 10y
al and devoted Washingtonian.
Many times. however. after the passage
of the organic act in 1878 Congress failed
to appropriate annually from the Treas
ury for District purposes an amount
equal to that raised by local taxation.
In violation of the letter and spirit of
the law it created District surplus OF
taxpayers money, not covered by an
equal amount from the national Treas
ury and expended at once i'll meeting
municipal needs: and permitted this sur
plus, agSregatins several million dol
lars, to be spent. without the doubling
contemplated by law, on projects financed
solely out of the revenues of the Dis
trict.
Turnabout is fair play. For nine years
instead of appropriating from the
Treasury less than the amount Of Dis
trict taxation. Congress has appropria ted
more and has treated these advances as
loans by the nation 10 the District at
= per cent interest There is this differ
ancc, however. between the two transac-
tons The advance nv the District from
its Surplus to the national partner will.
al, no ,1,l,rS n1 ftr,, -,
such reimbursement is demanded by
equity The advance by the nation to the