Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-07-30
DISTRICT FINANCES
OCCUPY THE HOUSE


Continued from First Page)
they would appropriate part of this in
terest out of the general fund In the
Treasury and part out OF the Dlstrlct
revenues, carried in the appropriation at
the time, following the time Oh the
passage of these actS?"
Certainly" said Mr.. Taylor.
Regards Government as Pledged.
II understand" said Representative
Borland of Missouri, 1.-THE gentleman has
cited in his very able speech the law
justifying the Secretary of the Treasury
in paying principal and interest out OF
the joint revenues of the District and the
general government, and the purpose OF
the gentlemans speech was principally to
prove that warrant of law existed for
such a method of payment
THAT is my idea,'' Mr. Taylor ad-
mitted. Il wanted to present the debate
and the facts. If / am not correct, gem
tlemen can correct me-
Does the gentleman CONTEND Mr..
Borland inquired, that the faith of the
United States is pledged to the holders of
the bonds for the PAYMENT
Il do not think there is any question
right into the bond l think under the
moral pledge of the act of 1874 the gov
eminent of the United States could be
held for the whole amount of the bonds
rapidly becoming in 1874. OF course, that
is all a matter of the past now
THAT is said Mr.. Borland, because
at the time the bonds were issued in
1874 the United States had formed a
provisional government and was prac-
tically in charge of the District as re-
ceiver."
Under the act of 1874, yes" replied
Mr. Taylor.
Now the United States" said Mr. Bor-
land, subsequent to that time, formed q
permanent government for the District. -
Yes: in 1875
Subsequent to the issue Of these
bonds Mr.. Borland asked.
-Four years afterward,' Mr.. Taylor re-
piled.
And undertook" Mr.. Borland contin-
ued, then to form a permanent govern
ment, and put certain burdens upon the
property of the District. Is 1t the gen.
tleman'S contention that the United
States is estopped in any way from COM
pelling the District to pay its indebted
nesS?'
mo, I think not" said Mr.. Taylor. II
think that the United States can do pref
ty nearly anything it wants to with ref
erence to this District. AS 1 am informed
and who knew something about it, at the
time this agitation was going on with ref
erence to the liability of the government,
before the bonds became subject to a
permanent annual appropriation and be-
fore the government, as claim, acknowl-
edged it's liability to pay half of the
principal and interest, these bonds were
away below par. l understand that after
the sinking fund was created, for some
little time they were still below par. but
,I,e,or @,,x1 AI1 r,,tr, 20
ment said. We will pay half of the
bonds they went up and they have been
above par most of the time since
I'VE are not able to say at this time
how much Of that debt was inflated"
suggested the Missourian.
No Mr.. Taylor admitted, 81 imagine
it would be very difficult"
Increase of Floating Debt.
do you know" asked Mr.. Borland,
anything about the course of dealing
under the former Commissioners of the
District. by which the floating debt was
allowed to increase?"
II do, indeed" Mr.. Taylor responded.
with the idea that it would subse-
quently turned into bonds?''
yes"
"And half of it saddled on the govern
ment?" said Mr.. Borland.
Il do" Mr.. Taylor responded, land 1
was one of the members who helped to
put a stop to that by the passage of a
law SO they could not do il any more"
Il think the gentleman was one OF the
men that tried to stop it and succeeded
said Mr. Borland.
land the debt is pretty nearly wiped out.
The, District decided to increase the
floating debt, and the District turned it
into bonds" Mr.. Borland continued.
49,
said Mr.. Taylor. They were getting on
the books of the United States govern
ment and were getting mighty close to
s4,OO0,O0O when We discovered that some
time or other If we did not pay it back
we would have to issue bonds, and We
stopped the Commissioners doing bust
ness, but that was not this board of
Commissioners
And no bonds were ever issued on
that" suggested Representative Mann OF
Illinois.
NO" replied the Ohio member.
II observe" said Representative Davis
of Minnesota, that the gentleman read
various provisions of law, in which the
faith and credit of the government is
pledged toward the payment of these
bonds and portion of the interest Does
Ii not occur to the gentleman's mind
that possibly the government in the
somewhat obscure language which adj
mts of two or three constructions has
indOrser on a promissory note, or
guarantor? In case they We're not obig-
ed, which possibly and probably they
are, in various laws to pay, If the prin-
cipal defaults. does that still leave the
government in the position not to re-
ceive any reimbursement from the prin-
cipai debtOr?
II think not replied Mr.. Taylor. "If
the District did not pay its half the
government could make it pay"
'Pledging the faith of The government
for half and half payment OF principal
and interest, and making the appropria-
ton therefor" Mr.. Davis continued, does
the gentleman consider that that obli-
gates the government to pay them and nd
seek no compensation from the debtor?
Il do not think the gentleman under
stands my POSITION said Mr.. Taylor
The law I base my contention on is
one in which the government agrees to
pay half. The payments have been made
legally. / do not justify the government
in assuming the debt. If Congress wants
to change the law it can do So"
Suppose the government took it back,
would not that affect them asked Rep
resentative Sims of Tennessee.
Il do not think the government could"
Mr. Taylor replied. 1.-The government
could not say we agreed to do a thing
and then after thirty-five years later say
it had changed it's mind
Il do not saS that they would ever do
It, continued Mr.. Sims. but what law
is there in the way of it?
johnson Restates His Position.
The act OF 1874 Chairman Johnson
suggested, "contemp1ates such future