Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-02-05

/, 1913.
wise appropriated and the other hair
out of the revenues of the District OF
Columbia. for the purposes following
being the estimated expenses of the
government of the District of Columbia
for the fiscal year ending June 50:
1881, namely: For the sinking fund ana
interest on the funded debt, exclusive
of water bonds, $1,155, $3.50.
Proviso Ignored by Congress.
The same amount for sinking fund
and interest as was appropriated the
two previous fiscal. years, and TINS
amount covered now as then. the en-
tire debt of the District. including the
twenty-year funding bonds, issued un-
der act of June 10. 1880. notwithstand-
ing the proviso to said act.
That this act shall not he construed
to make the government of the United
States liable for either the principal or
interest of said bonds. or any part
thereof"
In this connection the treasurer of the
United States in his third annual report
on the mixing fund and funded debt of
the District of Columbia states:
For the current fiscal year June 30.
1881, and the two previous years. the APP
preparations for the sinking fund and in
been the amount permanently required
for the payment of the annual interest
on the bonded debt outstanding when the
amount of the appropr alton was fixed IN
1879, and to establish a sinking fund
which, invested to yield per cent per
annum, would eXtinguish the bonded debt
by the maturity Of the $50 loan August
/, 1924.
1.-The estimate for the service of the
fiscal year 1852. for sinking fund and in
terest, is 81 :13.94791, and exceeds that
for the past two and current years.
S''S,364 A.: which amount is the interest
and sinking fund on the increase in the
principal OF the $50 loan. amounting TO
S1,oJt;.15o, author zed by the act of June
16, 1880 the amount required for the
annual interest thereon being S1,S'l-3S.
and the amount required under the act OF
March q, 1879 CO Statutes. 41W. TO re-
deem the principal at maturity, being
ST.. 1894.
by the following table it appears that
when the act of June IL. 1850 providing
for the payment of Judgments OF the
Court of Claims in :;.65 bonds), is COM
piled with. the bonded debt of the Dis
trct will be SD ::21 80, the annual inter-
est thereon 1891 .S:iS.i2. and the amount
required as a sinking fund. S222 100
which, invested annually to yield 800 per
cent per annum. will extingush the entire
debt August l, 1924
Entire Debt Covered.
The appropriation for the next fiscal
year, 1881. act of March ). 1881, having
exactly the same title as the act for the
previous year. apprOpriates for sinking
fund and interest 81 .213. 941.31. covering
the entire District debt of S22,321.555o. To
this act. however. is attached the follow
ing very significant proviso:
That hereafter the said treasurer as eX
officio sinking fund commissioner as
for coi ha al n a
rotary of the Treasury, is hereby au-
thorized of the Treasury, is hereby au-
of the funded Indebtedness of said Dis
trct of Columbia for the sinking fund
authorized to be created for the redemp
ton and payment of the Indebtedness of
said District of Columbia as in his opin-
ion may be for the best interests of said
District of Columbia.
All of the subsequent appropriation acts
for subsequent Years are the same as TO
language but the act of March ), 1SS3.
provides that the sinking fund for the
water stock bonds shall be annually add
ed to the sinking fund for the funded in
debtedness of the District of Columbia.
Beginning with the act of March 3,
1879 creating the sinking fund for the
60 bonds, which Mr.. Blackburn SO
strongly opposed. Congress has appro-
priated each year for one sinking fund
which included provision for the old
funded debt with the $50 bonds. and. as
further emphasizing the intention to as
sumo and pay one-half of the old debt,
as we'll as the new, the act of March 3.
1881, which We have just quoted, author
lied the commissioners of the sinking
fund to purchase any of the funded in
debtednesS of said District.
United States Treasurer's Action.
Acting under this authority, the treas
urer of the United States, eX officio COM
missioner of the sinking fund, has gradu-
ally purchased and retired all of the
funded Indebtedness of the District, eX-
cept $50 bonds, TO the amount of about
SS,000,O00 A report Of his transactions
has been sent regularly to Congress each
year, through and with the approval OF
the Secretary of the Treasury. and this
report, showing what bonds have been
redeemed, has been before the appropria-
ton committees whenever the subject
has been Under consideration.
And yet Mr.. johnson is quoted in the
records s saying to the House:
Perhaps Year after year, for nearly
a third of a century. you have been pay
ing half of the interest on these bonds,
when it was never your debt. GU per-
haps have been paying half of the prin-
cipaI of the millions of bonds, when 1t
was never your debt.
Suppose it never was the debt of the
United States, does Mr. Johnson mean to
contend that the United States did not
have the power to assume and pay one
half this debt if Congress deemed it wise,
eXpedient and just to do so? Or that if
Congress had the power to do so, the
legislation we have cited Was not intend
ed to and did not accomplish that pur-
pose? Is il his contention that Mr.. ALI
son chairman of the committee on APP
proprations in the Senate for many
years, and chairman Of the joint select
committee which framed the act of 1874,
voted for and recommended to the Senate
each year for more than thirty years an
appropriation for the sinking fund to ex-
tingllish this debt, without knowing what
he was about?
Whose Debt Was It?
If it was not the debt of the United
States, whose debt was it? Mr.. Johnson
apparently believes that all Indebtedness
OF whatever name or nature resting on
the District of Columbia prior to the Goth
of June. 1874, was created by the people
of the District, because Congress did not
prior to that date. govern the District
directly as it does now; and that the peo-
pie by their votes brought all this debt of
So, 00o. 900 upon themselves, and conse-
quently the United states never became
responsible for ii, morally or legally:
never owed dollar of it and is not
obliged by law to pay dollar of it now.
Moreover, that to the extent that Con-
gress has appropriated money belonging
to the United States toward the payment
of this debt, it has good, just and legal
claim against the District of Columbia to
have the same refunded.