The Washington times., 1916-01-06

| therefore, that either Congressional APP
| preparation for this interest must be
made OF that there must be deiauit IN
the payment of interest to which the
| faith of the United states is pledged.
| If the requisite sum be appropriated by
Congress. 1t is advisable that the In
terest should be paid in the Treasury of
/ the United States and the coupons can
bonds are registered In the office OF
the registrar of the United states Treas
ury. 1t might also be provided that such
sum as may be appropriated for this
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 its funded
| debt"
The future legislation" contemplated
| In the report just quoted must be read
| In connection with the act Of June %.
1874, providing that proper proper
tional sum" shall be paid by the Uni
ted states. the same TO be considered
md adjusted hereafter" and in view of
| the fact that Congress had already ap-
pointed committee to ascertain what
was a proper proportion for the Gov.
| ernment to pay: and that the report OF
that committee was the basis OF what Is
called the organic act of 1878. known as
| the h6lf-and-half plan.
The following from the remarks Of
Senator Thurman Of Ohio, made in
January, 1876. in the senate of the Uni
ted States. Is convincing:
"One word as to this guarantee, and
any further observations of mine.
This guarantee is as plain az words
can make it. 1t was maturely con-
sidered. and was subject OF much
debate in the committee that reported
, it. There were Senators who thought
III n
on the part Of the Government to pay
| the interest AMI also the principal.
| and all the contractors were clamor-
Gus for such u guarantee. The com :
mittee would not yield. 1t would only
make a qualified guarantee. and that
guarantee was in these words:
And the faith OF the United states
is hereby pledged that the United
states will by proper proportional ar-
act and by causing to be levied upon
The property within said District such
taxes as will provide the revenues 8
necessary to pay the interest on caid
| bonds as the same may become due
and payable. and create a sinking
fund for the payment OF the principal
at maturity
This act contemplated that the
General Government should pay a
proportional part OF the expenses CT
! the government within this District.
and that proportional part OF it. It
was supposed. would be ascertained
| by the joint committee that was to
frame permanent form OF govern
| ment for the District: AMI here Is n
| pledge that the Govcrnment OF the
United States will ny that proper
| tional part What it should be was
not determined by this act; IT was TO
be the subject Of investigation: but
whenever found. hero is the pledge
| that tho Government would, ny pay
| ments out OF tho nuhlic treasury in
| this District. contribute to paw the In =
terest on these So bonds and pro
vide q sinking fund for the ltauida- =
| tion Of the principal
! reference is also made to the act OF
March a. 1876. rineteenth statute.
traFe 211; to the net OF July 81. 1876,
and Of March :: iS7s; 900 NAE ,,
| lowed BY the so.called organic aot
Of June II. 1878. providing for the
nayment OF the debt Of the District
by definite apportionm"nt Of 90 pc
cent. respectively. bythe United Stats
The Comptroller OF the Treasury OF
, the United States in an official opinion
! rendered January 3. 1914. on this oues-
ton. reaches the following conclusions,
"It remains for us. upon the premises
thus. as ] believe. satisfactorily estab-
lished to predicate proper conclusions;
L. The Indebtedness represented by
the 2.65 bonds was Indebtedness OF the
| District of Columbia and not in any
| States, and the bonds OF the District OF
! Columbia.
%. To restore the credit OF the Dis
trict OF Columbia. make acceptable ia
| creditors Of the District 365 bonds by
! a guaranty OF payment and assume the
| to- o-be-determined equitable proportion ia
| be contributed by the United States to-
ward the expenses of the District. the
| United States covenanted with the hold
crs Of these bonds that il would pro-
vide. by taxation on the property with
| in the District, portion OF the revc-
nues necessary to pay the interest on
and principal of these bonds. and that
It would provide the other portion. To
| be determined. by appropriation out OF
the revenues OF the United States.
''3. Ey the organic act Of June H.
1873, the portion to be provided by taxa
ton on the property and privileges IN
the District was declared to be so per
cent and the portion to be apportioned
| 30 per cent. and that has ever since
remained and now is the law.
-. The liability Of the United States
to the holders of the S.SS bonds is
therefore that Of guarantor that one
half Of the principal and interest ot
these bonds will be paid out Of the
revenues Of the District, derived from
taxation on the property and privileged
| in the District. and that Of promisol
that It will provide for the payment Of
the other half by appropriations ou
OF the Treasury OF the United States
! 81 have. therefore to advise yor tha
| under the act inltinr sppropris tior'
| to pro,'idr for the expenses OF the gov
| ernDlcnt Of the District Of Columbia fo
the fiscal year ending June thrtieth
nineteen hundred and fourteen. and TO
other PURPOSES (37 Stat. ]%S). paymCn
TO be made during snid year OF intcres
on anG sinking fund for the payment o
the funded debt in question should h
| made. within the limits Of the amour
appropriated for said rSInoses. Will
moneys withdrawn from the Treasur.
of the United States by the Treasure
in accordance with section of tho &C
of March >. 1889 ("2 STAT. +ol. al,d - pc
cent thereo: cha -ged Ia the revenues .
the District Of Columbia and % per con
thereof charsed to the amount Ippro
Triftcd for the expenses OF tho Distric
from the moneys of the United State
and the money so paid should be &C
counted for acrrrdinGl,''
Or December IL. 1917. the ConDtrole
Of the Treasury rendered anotror Of
| dcisl oninion on this same matteT. al
herring to and r5affirsli'lg his CCnclu
SionS as las above rIteu
II Is our opinion that tho original IN
tent the understanding If members o
Congress the CnvarNinr practice Gf tn
years. tho provisions Of the variou
laws OF appropriation, the law dhfnitcl
fixing the respective arportionment o
payment and. above all. the t;stic
Of the matter a 8 affecting the Genera