Evening star., 1916-01-06
ABOLISH HALF-AND-
HALF PLAN, Joint
COMMITTEE URGES
CONTINUED from First Page.)

CONTINUED from First Page.)
4, 1875, issued under the act entitled
! An act for the government of the DIS
trfct of Columbia, and for other pur
poses,' approved June 20. 1874; said
interest to be paid by the treasurer OF
the United States, or the assistant
York on surrender of the proper cou-
pons: Provided, that the said sum
hereby appropriated shall be consid-
cred and adjusted as part OF the
proper proportional sum to be PAID oy
the United States toward the expenses
| of the government of the District OF
Columbia. and toward the payment OF
| the interest on the funded debt OF the
District"
The act of March 3. 1875. eighteenth
| statute, 343, is as follows:
ITO pay on behalf of the United
States, as a portion of the general eH-
penses of the District of Columbia
to be expended 2.u,tt BY the 6 cS%m{s. Sso ono.
Immediate use; and 100000 of this
sum shall be available from the pas
sage of this act. no salaries 70 DC
| changed from the standard nxeo uh-
der the act of June 20, 1874.
| ITO pay the interest on the 3.65 bonds
| issued under the act entitled An act
| for the government of the District OF
COIum Dla ana 1OT OLneT puIpoScS'
0OO and the salary of the commissioner
of the sinking fund, acting as treas
urer thereof, shall be $1,000 per an
num-"
Theory Of Interest on Debt.
The debates in the Senate and In the
House of Representatives Of the United
States during the years 1874, 1873 ana
Isis substantiate the theory that the
interest on the funded debt was then
understood by Congress as being paid
one half through District of Columbia
revenues and one-half through the gen
January 26, 1875 (vol Cong. Rec, p.
I749) the following dialogue took place in
the House prior to the passage OF H. r.
44S3, which later became the act OF Feb
ruary 1, 1875. from which we have just
quoted:
Mr.. Garfield am instructed by the
committee on appropriations to report
back with an amendment the bill Oh. r.
44S3) for the payment OF interest on the
3.65 bonds of the District of Columbia
The amendment of the committee strikes
out the words in coin after the words
's1S2,5OO'
Mr. Randall-Is there any report ac-
|companying this bill?
'tMr. Garfield send to the desk to be
read communication from the Commits
sioners of the District of Columbia.
Mr.. Randall wish to reserve a point
|of order on this bill.
Mr.. Garfield-Let the report be read.
"Mr. Holman--It should be understood
that the point of order on this bill is not
waived.
1.-The Speaker-The point Of order viii
be reserved till the communication has
been read.
Letter of Commissioners.
'sThe clerk read as follows.
"Office of the Commissioners of the
District of Columbia.
January IL, 1875.
ITO the Speaker of the House of Repre-
sentatives:
respectfully request that the attention
of Congress may be called to the neces-
sity of legislative provisions for the
payment of the interest on the bonds
authorized to be issued by the act of
Congress approved June 20. 1874. en-
titled an act for the government of the
District of Columbia, and for other
purposes These bonds are generally
known as 's.s5 bonds The act Of
Congress above cited pledged the faith
of the United States to Che payment
(by proper proportional appropriations
and by taxation on property within the
District) of the interest on said bonds
as well as to the creation of a sinking
thereof at maturity.
1.-The same act of Congress contem-
plates the ascertainment, through fu-
ture legislation, of the proper proper
of the District of Columbia, including
interest on its funded debt, which
should be borne by the District and by
the United States respectively. This
proportion has not yet been determin-
ed by the requisite legislation. Upon
= Ia dlI oh of he ! ii ri irf n
lumbia, other than the 365 bonds. the
interest, including that due January /,
1875, has been paid or is in process of
payment out of revenues from the
taxes on property in the District.
Advance Authorized for Interest.
AT the last session Congress author
lied an advance from the United States
Treasury for the payment Of interest
on the funded debt of said District. due
July /. 1874 (the 3.65 bonds not then
having been issued). but it was requir-
ed that the sum thus advanced should
be reimbursed to the Treasury of the
United States from the treasury of the
District, and this reimbursement has
been made in full. The BIS bonds re-
suit in principal part. from the funding
of floating Indebtedness of the late
board Of public works, which was
created py an act Oh congress, ana
whose operations were subject to con-
gressional control, and, to some extent
were independent of interposition on
the part of the municipal government
of the District.
After payment from the treasury Of
the District of the current expenses of
the municipal government and of the
interest on the funded debt of the Dis
trict, other than the 365 bonds, taxes
on private property will not afford suf-
ficient revenue to pay any part of the
interest on the 3.65 bonds, which falls
due February /, 1875. 1t results there
fore, that either congressional appro-
priation for this interest must be made
or that there must be default in the
payment of interest to which the faith
of the United States is pledged. If the
requisite sum be appropriated by Con-
gress, it is advisable that the interest
should be paid in the Treasury of the
United States and the coupons Cancelled
there. According to law, these bonds
are registered in the Office of the reg
istrar of the United States Treasury
, 1t might also be provided that such
sum may be appropriated for this
purpose shall be considered and ad-
justed hereafter as part of the proper
proportional sum to be paid by the
United States toward the expenses of
the government of the District of CO.
lumbia and of the interest on it's fund
ed debt"
What Was a Proper Proportionp
The future legislation" contemplated
in the report just quoted must be read