Evening star., 1923-10-23
Controller General Decides,
Joint Committee Asserting,
That Surplus ''on Books
of Treasury" Exists.
APPROPRIATION, NOT
LEGISLATION, NEEDED
Congress in Appropriating May
Raise or Lower Surplus by
Moral Credits of Either Party.
Editorial Correspondence Of The Star.
THEODORE w. MOVES.

Another burden imposed by the
new law upon the District is that of
accommodating a surplus which will
put it upon a so-called pay-as-you-go
basis in 1927. Congress determines
that after 1927 the nation shall no
longer Gas under the act of 1879 ad-
vance money for District uses in the
period of the current year before cur
rent tax collections are actually made.
and that by 1927 the District shall
have on hand a tax surplus which
will enable 1t to meet its share of
current expenses without borrowing
even for a few months from Uncle
Sam or anybody.
The amount of new surplus. IL any,
which the taxpayers of today must ac-
cumulate for the benefit of the taxpay-
ers of 1927 to put the District of that
year on a ''pay-as-you-go" basis is
obviously affected by authoritative
decision of the amount of District
surplus already accumulated in the
Treasury and available for this or
any other District use.
The law of 1922, in order to dispose
of all fiscal issues, provided for the
sional committee of the surplus in
the Treasury for the benefit of the
District and of any equitable credits
either in favor of the nation or Capital
which would alter the figures of
Treasury surplus to the Districts
credit, II moral as well as legal in
debtedness of either party to the
other were to enter into the calcula-
ton.
Surplus No Longer Bar to Peace.
1T L. g. Il
its task and has so decided the essential
issues submitted to it that Congress
may. IL it will. treat the fact of a
District surplus as definitely estab-
tsaslar issaa ey d Of ane cont Of
that surplus now in the national
Treasury, available for appropriation
at the pleasure of Congress, as ap-
proximately fixed. leaving only to be
determined by Congress at its leisure
the net District surplus after moral
indebtedness since 1874, either in
favor of the United States or of the
District. has been subtracted or added.
Thus the surplus issue as n factor
and preventing the equitable cOmpro-
mise settlement of all fiscal issues NO
longer exists to prohibit the procia-
nation by Congress of a wholesome
and beneficial fiscal peace I'm the re-
Iations of nation and Capital.
Analysis of Joint Committees Report.
The joint surplus committee was to
ascertain and report what surplus, II
any. the District of Columbia has to
it's credit on the books of the Treas
ury of the United States which has
been acquired from taxation or from
licenses"
1t was to Inquire into all matters
pertaining to the fiscal relations be-
tween the District of Columbia and
the United States since July 1, 1874"
1t was to ascertain and report
what sums have been expended by
the United States and by the District
of Columbia, respectively" on speci-
fed and limited lines of National
Capital maintenance and upbuilding.
1t was to find whether any money
is due. either legally or NOR
the District of Columbia or from the
District of Columbia to the United
States. and "in the event any money
may be, or at any time has been by
Congress or otherwise, found due.
either legally or morally, from the
one to the other on account of loans.
advancements or improvements made,
upon which interest has not been paid
by either to the other. then such sums
as have been or may be found due
from one to the other, shall be con-
sidered as bearing interest at the rate
of 3 per cent per annum from the
time when the principal should either
legally or morally have been paid
until actually paid"
Clear Intent of the Law,
The recognized intent of the law
is that the committee after inquiry
into the fiscal relations of District
and United States since July /, 1874,
and after ascertaining the sums ex-
pended by the United States and the
District in specified forms of Capital
upbuilding during that period. and
after determining in the light of
these Inquiries and Investigations
! what sums of money principal and
interest) are due, either legally or
morally, from one to the other of
the parties, shall add to or subtract
from any District surplus ION the
books of the Treasury" such sums of
/ money thus found, as equitable (mor-
all or legal credits of either the
District or the United States, the
final figure represe nting the real le-
gal and moral indebtedness from one
party to the other.
Decision of Joint Committee.
The Joint committee of six mem
berS {W1th one meIlUeT QlSSGnIiHS III
specffied particularly has thus func-
toned and reported. It finds ION
the books of the Treasury a Dis
trict surplus of a certain amount. 1t
deducts from that total certain ap-
propriations not yet paid, chargeable
I against the District during the fiscal
year In question. Finally 1t deducts
another sum approximating closely
the amount which will probably be
charged against the fiscal year in
81 IN hn q foi ,nI
and paid in the succeeding fiscal
year or years. The first figure rep
reseuts the gross District surplus ION
the books Of the Treasury" The
second figure represents the net Dis
trict surplus of the fiscal year of the
date of surplus ascertainment. The
third figure represents the net Dis
| trict surplus of the fiscal year after
all possible or probable deductions
chargeable against that year have
| been made. even though not actually
deducted until the succeeding fiscal
| year or years. The third or last
4 a arvro ranra SAINTS fharaf0ra the a,h-