Evening star., 1923-02-09
Fiscal Chaos Again?

sentative Cramton, for whom the
WaShinStonians who know him have
great respect. should try to reopen
the fiscal relations peace settlement
OF June 20. 1922, and to plunge the
House and Senate into the old hurtful,
hateful, wearisome wrangle over the
issue of definite OF indefinite proper
tionatc contributions toward capital
upbuilding, and over the ratio (o0-60
or 6o-40) of definite proportionate con-
tlibution.
The understanding when the act Of
June 20, 1922, was agreed upon by
House and Senate viewed that act as
a compromise measure disposing for
many years of these troublesome fiscal
relation issues. The Districts contri-
button toward capital upbuilding was
increased from 30 to SO per cent; its
tax on intangible personality was in
creased 66 2-3 per cent. and the founda-
tion was laid for increa sing its realty
lax: it was deprived of exclusive credit
for large sums of miscellaneous re-
ceipts hitherto solely enjoyed this ac-
tion infiicting heavy loss, and il was
compelled to accumulate from its tax
money of present years tevery cent of
which was needed 10 meet the urgent
municipal needs of today a fund of
millions 10 provide i'll advance for
meeting the first half-year expenses
of 1878. In partial compensation for
these drastic eXactions the District
was to enjoy for five years and in
definitely thereafter the benefit OF ap
moximate certainty as to its ratio OF
propurtionate contribution: ii was
through increased respect TO be shown
to the Commissioners estimates to
have in substance the privilege Of in
ffuential participation in shaping ap-
preparations Of which it should pay
60 per cent, and it was TO he spared for
q long period the hurtful deadlocks
over ratios between House and Senate
which annually endangered the Dis
trict appropriations and undeservedly
prejudiced House sentiment against
the capital community.
But no sooner is the definite 60-40
ra ito fixed by compromise agreement,
leaving only the surplus question to
be decided equitably by Congress. and
almost before the capital community
has adjusted itself to its new fiscal
organic act and has begun to enjoy
the promised bliss of fiscal peace, a
proposition appears to repudiate the
agreement upon the 6040 ratio, to
substitute a system of indefinite con-
tribution by capital and nation and to
prccipitate Washington taxpayers into
the fiscal chaos from which they have
recently emerged.
The vital feature of the act of 1922,
carried over from the act Of 1878, is
that it fixes a definite equitable stand
ard of national participation in capi-
tai making, related to the contribution
exacted i'm taxes from the capital com.
munity, and does not leave this stand
ard to the shiftings Of caprice.
Two practical questions in respect
to financing the capital have been of
vital Importance from the beginning
l) Shall the national and local con.
tributions be definite or indefinite, re.
lated or independent? t2) Who shall
determine the relation Of the amount
of these contributions. respectively?
The history of the capital has dem.
onstrated distinctly that these con-
1ributions should be definite and re.
lated: and that il indefinite and unre.
lated to insure justice each contrib.
lltor should have a voice in determin.
ing the amount of his contribution.
Since the day of the creation Of the
capital the nations obligation toward
the nations city has been the same
primary, exclusive and dominating
Not the obligation itself but the de
gree in which 1t has been recognized
and met has been the huetuating fac
tor in the equation.
From 1900 to 1S74-8 the national and
local capital contributions were in
definite and unrelated. Each contrib
uted what it pleased toward capita
upbuilding. The nation measured it.
own obligation in terms Of dollars a.
next to nothing. The local commu
nifty raised and disbursed its owT
taxes at its pleasure. 1t measured it.
capital obligation considerably beyond
the limits Of it's meager taxable re
sources and twice became PRACTICAL.
bankrupt in performing almost un
aided the nations task of capita
building.
In 1878 the nation confessed its vic
lation or gross neglect Of its capita
obligation. 1t gave practical expires
sion to its revived sense Of this obi
CATION in its undertaking to pay one
half the accumulated funded indebted
I.ess Of the District and oYfe-half o
future expenses. 1t took from the Dis
trict the power Of self-taxation an
assumed completely exercise Of tn
right to fix the local contribution q
well as its own. In thus exercising
taxation without representation owe
the District the ration safeguarde
the national community by the pledg
that to every dollar collected In take
from the local taxpayers should b
added a dollar from the national treas
rry and that the aggregate revenu
should be expended for capital uT
building. This provision protected tn
District from excessive taxation b
causing . taxgathersr. alien to tn
anreprsssntsd District to spcrorEaat
from his own treasury sor ths Oal
,rict's bensnt ewsry time hs eppr<