Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-01-08
If Deficit, U. S. Advances to
D. c. With Interest; if Sur
plus, D. C. Advances to
u. S. Without Interest.
FOR GOOSE AS FOR GANDER
THEODORE w. MOVES.

trict revenue to meet one-half the
amount of annual appropriations in
accordance with the organic act. Such
deficits have been met by advances
from the national Treasury, repaid
later with 2 per cent interest.
The same principle which has been
wisely applied to deficits should be
equitably applied to sIrpluses. If
Congress appropriates more in any
year thnn twice what it has exncted
In District taxes it advances the def
lett and reimburses itself later. If
1t apprOpriates in any year less than
twice the amount of District reve-
nue the resulting surplus should, on
precisely the same principle, he held
In trust in the Treasury, to be later
used. when needed, for the Districts
benefit.
For seven years in the period be-
tween 1900 and 1910 deficits were
.huS handled. If the law concerning
these deficits were broadened in it's
terms SO that it applied to surpluses
as well as deficits, the absolute JUS
tice would be done which equity de-
nands.
New Law Concerning Surpluses.
Thus broadened. the law would read
In some such shape as follows:
That hereafter the Secretary of the
Treasury is authorized and directed
to advance, on the requisition of the
Commissioners of the District of CO.
lumbfa, made in the manner now pre-
scrtbed by law. out of any moneys in
the Treasury Of the United States
not otherwise appropriated such sums
ns may be necessary from time to
time to meet the general expenses of
said District, as authorized by Con-
gress, and to reimburse the Treasury
for the portion OF said advance pay
able by the District Of Columbia out
of the taxes and revenues collected for
the support of the government there
OF. III In my year the taxes and reve-
nues of the District of Columbia shall
be fnsuffcient to reimburse the Treas
ury for the portion of said advances
payable by the District of Columhfa.
such unpaid advance shall be relm-
bprAeAs TO said Treuury ont Of the
revenues Of the District OF Columbia
s0f the saeeeedAng year or years, to-
Eether with interest thereon until no
retnNuxs<d- IT In any year the faxes
and revenues OF the District Of CO.
mmbia shall be more than sufficient
ttOn OF said advances payable by the
District Of Columbia, such surplus OF
revenue shall be held In the Treasury
~ . trust funa for the benefit of snid
Oistrict, and be available aS revenue
Of the District of Columbia for meet
able by said District In the succeeding
year or years.
That all laws in conflict herewith
are hereby repealed.
This suggested provision Is worded as
above only to make it embody and build
upon as precedent the provision
concerning deficits as it appeared in
the District Of Columbia appropria-
ton laws of the lean or tax revenue
deficit years in District finance The
same legislative end is attained by
the simple and direct provision urged
for several years by the Board of
Trade:
That unexpended surpluses OF Dis
trict tax money shall be held in the
Treasury as n trust fund for the benz
eht of the District and be available
as District revenues for meeting the
the District in the succeeding year or
years.
The above provision in substance
ought in equity to find a place in the
District appropriation bill The Dis
trict should have the benefit of this
IA
whenever it is most needed; not solely
in payment of the. Districts share of
the funded debt, but to meet any debt
of any sort, or to prevent a deficit in
current maintenance under the half
and-half law, or to make part of
sinking fund to finance some great
project or municipal improvement
which requires a larger immediate
outlay than can be spared from cur
rent revenues.
Repeal Law Restricting Estimates.
Supplementing the proposed amend
ment of the appropriation bill to
dispose equitably of surpluses there
should be another amendment to pre-
vent the artificial and automatic
creation of such surpluses and to tend
to reduce them to a minimum. 1t
might take the following shape:
That hereafter the estimates OF the
Commissioners of the District of CO.
lumbin for nny fiscal year shall state
the reasonable and necessary expenses
of the government of the District of
no arbitrary relation to the total esti-
mated revenues of the District of CO.
lumbin for such fiscal year.
That NIL laws in conflict herewith
nre hereby repealed.
ANY wording of the new law is, of
hereafter the Commissioners shall not
be limited in their estimates in any
fiscal year to twice the amount of the
estimated revenues of the District, as
now provided in the act of 1909.
The law of 1909 (section T. public
act No. 3O3, second session Sixtieth
Congress. approved March 3. 19O9) y
which this amendment in effect re-
peals, prohibits the Commissioners
estimates from exceeding in any year
twice the amount of District reve-
nues On its face this law seems to
recognize and emphasize the obliga-
ton, under the act of 1878, to appro-
pirate for the Districts benefit twice
the amount of its revenue. and to au-
thorize the Commissioners to make a
budget apportionment of this amount
in the way which will best meet the
Districts most urgent needs. But the
House has never treated these limited
estimates as a budget apportionment,
but has continued to cut from the
estimates each year several million
dollars, precisely as was done when
the estimates were submitted with
out restriction. After preventing the
Commissioners from estimating be-
yond the exact amount which should
be appropriated annually for District
maintenance under the law of 1873
preparation bill the appropriation of
only part of these estimates, Con-
gress has fallen into the habit of re-
fusing consideration of proposals of
District appropriations which do not
appear in the Commissioners esti-
mates. Under these conditions a sur
plus of unexpended District tax
money is inevitable.
Danger in Artificial Surpluses.
The law Of 1890 thus prohibits the
statement by the Commissioners and
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