Evening star., 1922-01-31
Rate by Mail-Payable In Advance.
Maryland and Virginia.
No e-Repudiation.

NO f1eoge-kepuol
In the pending District appropria-
tions bill there is one provision which
the House should eliminate before
passing the bill. The House should
not approve the provision perfume
torily and trust to the Senate to apply
q corrective. The House should not
even propose to the Senate violation
by the nation Of its plighted faith. a
reputation by the nation of its legally.
binding promise.
This provision is the proposal that
the nation pay 40 per cent instead Of
SO per cent of this years installment
of interest and sinking fund on the
funded debt.
The half-and-half provision of the or.
ganic act of 1878 is in general subject
to change in the discretion of Con-
unfair; but not unlawful.
But the promise to pay one-half the
interest and sinking fund installments
Of the 3.65 bonds. which constitute the
funded debt, cannot lawfully or justly
or honorably be withdrawn or altered
by the United States. BY the terms
Of the bonds 1.-The faith ef the United
States is hereby pledged" to cause
payment of these bonds by proper pro.
portional appropriation and by levy
ing taxes upon District property.
The proper proportional appropria-
tion Of the United States" was fixed by
the act of 1878 at 50 per cent. and the
bond pledge, based on the faith Of the
United States, became a pledge to ap-
propriate so per cent out Of the Treas.
ury. and so per cent out of the rev.
enues of the District.
When Judge Downey of the Court
of Claims was controller of the Treas.
ury in 1914 he rendered an able, ex.
haustive and conclusive decision upon
this specific issue. 1.-THE United States
coyenanted with the holders Of these
bonds,'' he declares. THE liability of
the United States to the holders Of the
+. 3.65 bonds is therefore that Of guar.
antOr that one-half of the principal
and interest of these bonds will be
paid out of the revenues Of the Dis.
trict derived from taxation on the
property and privileges in the District
and that of promisor that it will pro-
vide for the payment Of the other half
by appropriations out Of the Treasury
Of the United States"
- Surely the House will not. if it takes
thought in the matter, propose that
the United States repudiate its prom
ise. it's pledge. its covenant.
No unbiased representative will vote
for this reputation If he will read
Controller Downey's decisions (21
Compt. Decisions 1913 and 20 Compt.
Dec. 441), and will consider Col. A. 8.
Worthington's thorough and able dis.
cussion of the controllers decisions
before the congressional joint fiscal
committee Of 1915 (see Report Of Hear
ings, p. 322 to 353, especially p. 341
ito 353).
80 The congressional joint fiscal com.
mittee of 1915. composed of Senators
Chiffon. Salisbury and Works, and
Representatives Rainey, Gard and
Cooper. unanimously sustained the
controllers decision, declaring that
the so per cent appropriation from the
moneys, Of the United States for pay.
ment Of these bonds was in acco.h
ance with ''tl,e original intent the
understanding Of members Of Con-.
gress, the unvarying practice Ot the
years, the provisions Of the various
laws of appropriation. the law def.
nitely fixing the respective apporti"n'
ment of payments, and, above all, the
Justice of the matter as affecting the
general government, the holders Of
the bonds and the District Of Coluni-
bia."
If the United States is bound to pay
80 per cent of this interest and sink.
ing fund, refusal to pay more than 40
per cent is as truly reputation in
principle and in essence as if the
United States had repudiated the obli
cation entirely.
During the discussion of 1895
concerning the relation of the United
States to the s.e5 bonds. the House at
Gne time passed, without due consid.
GRAFTON. q bill which provided that the
District should pay all Of two interest
and sinking fund installments due be.
tween 1871 and 1878. Controller Dow
ney's decision and that Of the congress
sional joint fiscal committee nf 1918
killed the House proposal that the
United States repudiate the whole of
these installments Of funded debt inter-
est and sinking fund. Will not the
House kill promptly in advance and
Of its own volition the pending pro
posal to repudiate in part tho nations
covenant and pledge?
At present a man who desires to ex-
-