Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-03-04

dertaken and carried forward with rea-
sonable rapidity'
This situation-which has to a great
| extent been brought upon the District By
charging, I'm many instances. large appro-
/ priations wholly to the revenues OF the
District, in clear violation OF the organic
act. and by requiring advances of the
United States, made necessary by reason
| thereof. TO be repaid in too short period
demands careful consideration of the
Board of Trade.
Floating Debt, $4,000, 900.
Under the existing plan Of financing
the requirements of the District, while
the funded debt has decreased under the
payments to the sinking fund. the floating
debt has increased from approximately
81 BOO. 600 July 1. 1906 to about $4,000, 600.
| notwithstanding large repayments to the
| United States since that date. IL con-
tinued 1t promises to afford only tenn
porary relief at the expense of increased
I financial embarrassment. 1t is evident
| that the District cannot from its present
revenues meet its obligations 10 the
/ United States, provide for current needs
and do much I'm the way of permanent
Improvements. Such important public
works. necessary TO the health. convent
ence and comfort of not only the resi-
dents of the District. but of all who visit
/! the National Capital. as:
THE reclamation of the Anacostia fats,
improvement of Rock Creek valley, I'M
provement of harbor front. high-pressure
fire protection system, suburban trunk
sewers, extension of trunk water mains.
building of reformatory and workhouse,
acquiring land for park purposes, munic-
ipal hospital and other important works,
must be indefinitely deferred unless some
more satisfactory and effective plan be
provided for financing these projects than
the one now in practice, which has proven
after long trial only adapted, as was
I l. I41
needs.
Shall the debt under any form be in
creased? The Illuminating letter of the
Commissioners, already referred TO, turns
| a strong light upon the heavy penalty
which the District incurs in borrowing
money at any ordinary rate of interest.
Its annual interest charges are deducted
| from its revenues, resulting in a cor
of the United States toward the expenses
of the District. 80 that when the full
residue of the District revenues is ap-
propriated the practical result is the
same as il the District paid double the
nominal rate of interest on its debt. For
| instance. while ii pays $3.50 per cent on
its funded debt and per cent on its
floating debt, yet under the operation of
the 30 per cent clause of the organic
act the rate of interest is practically
BIO per cent on its funded debt and 4
per cent on its floating debt Every dol
lar of interest paid by the District re-
UuCSs the CoIibiHcu lcNCh0cS u TIC Las
trict and the United States available for
District needs by 50.
Against Further Increase.
Whatever the views of the Board of
| Trade may be as to the expediency OF In
crea sing the District debt, TO provide for
permanent improvements. your commit
tee feels assured that no member of the
board desires any further debt to be in
CURED in the way the present floating
debt was i'm great part created by re-
peated infractions of the organic act.
That act pledges Congress to appro-
| pirate 10 per centum, nothing less. of
| the amount of the approved estimates of
! the Commissioners, and authorizes the
! remaining 10 per centum. nothing more,
| to be levied and assessed against Dis
+! trict property.
'.One-half the total amount of the ap-
| proved estimates was made the measure
| of the tax levy upon District property
| after 10 per centum thereof has first
| been appropriated by Congress. Every
| appropriation made exclusively from the
: revenues OF the District. except for pay
ment of debt and interest. is in violation
| of that act. and costs the District two
| dollars for every one expended.
This act was a tardy recognition by
Congress of its long-neglected financial
| responsibilities and obligations to the
| District Of Columbia. Its observance has
| brought prosperity, it's non-observance
| floating debt. with all its serious conse-
| quences The Board of Trade should
! take note of how slowly but surely the