The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1847-01-09
S5,296,I43 80


do do General fund debt. :. :. -. 1900 $50 40
Total cost of deferring the debt. SIS 29s I43 90
In paying the treasury and canal debts by the appca
ton Of the sinking funds there will be drawn from the
revenues OF the canals during the next 22 yesrs the
Principal Interest. To,al
Do III $s s:; 4
2as,o.ss. 81 s722i.ss2 % siOO'a,25 "a
The above sum Of forty millions of dollars does not
include the contingent loans to- railroads ($7l3 000)
with interest on this sum fer 2a,l years.
The preceding statement shows that during the next
2a years the State must pay on account Of interest for
money borrowed, the Of. .$l7, AL 892 90
There has been paid for interest on the
canal debt from 1917, to September 3Oth
Add payments of interest on railroad '''''' ~
stocks, from 1912 to Sept, 3Oth, 1876. -. 929770 81
And it makes total paid and to be paid
or IL uon:v 3 & aso az
public works il the most expensive mode which could
be devised Besides the consuming power of interest
the with which millions are acquired by gene.
ration to be paid by another leads to careessness and
extravaganza in expenditures Our experience full Of
instruction this point In 1898, new impulse was
given to internal improvements, and plan of borrowing
four millions year commenced and in less than
two years canal contracts made the amount Of
with such extravagant haste, that the commissioners OF
the canal FAM, in their annual report inform the Legis
that from lOh OF 1889, to
OF January ls4 period Of less than two years. there
has been expended the Eric enlargement and the
Genesee Valley and Black River canals moro than nine
millions Of dollars sum greater, it is believed, than
was ever expended during peace, by any government
m works OF internal improvement Doc No. 9, Of
leil, p. So
Most of the work done at that period cost the State
quarter II not onehird than would have been
required if the work had been prosecuted with the mo-
deratsn and economy which prevailed in constructing
the Erie and Champain canals
In v,w OF the extravaganza which has prevailed un
fart ha tuinray
OF interest paid and to be paid from 1917 to 1869 period
Of 81 years there is great for hsnkiuInes that
the important provisions which secure the application
Of the canal to the discharge OF the existing
debt and provide ample indemnity against the borrow
s for the s1ys been and
Every well wisher to the purity and permanency Of
free Institutions will cling to the financial amendments
in the Constitution as safeguard against prohgate
penditures and sure protection against social bank.
Iuptcy and the infamy of reputation.
Tho restrictions In the Constitution against borrowing
work deriment to tho substantial interests of the
State. IL the Legislature Is not permitted make loans
without the OF those who have them to pay the
over the property OF the constituent If the interests of
the State require expenditure of the money beyond
its revenues the Legislature draw by taxation upon
six hundred millions Of real and personal estate is
not apprehended that necessity will arise for ill.,
creasng taxes but II money should be required, the
taxpayers have much less to apprehend from this
Of raising money for State purposes than from the Dor
rowing system which has prevailed for the last twenty
years.
The amount Of dsb payable in ls47 only Sl3 900 co.
The two Sinking Funds, therefore, for this year. will
yield surplus available for tho next year. OF 1914 52l
besides the tax of one tenth of mill, amounting
$ss2l7 o..
In the years lsls and sAe as will be seen by referring
to the preceding tables Nos and ,, the total amount
pal falling due, is So. 4aa,lss H.
The means for paying this large amount are as FOL
One third of $4,000 90 for 1916, duo &C.
Surplus Of Sinking Funds for lsi7. s74 sal o.
Canal debt Sinking Fund for 1913 aud isao 900 600 90
Sinking Fund for Treasury debt for 1s4s
Tax Of lilo Of mil Tor isic ~, as and ''''' "
1919. 232 900 on
$4o2a 1877 90
This leaves deficit for the two years, unprovdcd for
The tenth section of article seven of the Consti.
tuition authorizes the Legislature to borrow million
of dollars ito meet casual dehcits failures IN revenues
for expenses provided for" AS the money derived
from the loan must be applied TO the
of the stock fsng due in July 5S and lSl9, the ag
gregate debt of the State will not be increased by this
operation.
But after borrowing the million Of dollars authorized
by the constitution there is still deficit OF 81 1893 9i9
H. About 100000 of this stock is held by the Comp
troller trust for the school and literature
fund and for the redemption OF the circulating notes OF
banks The 9th section of the act OF lS42 for pay the
deM of the State contemplated the purchase Of 81 700 900
of this stock with the moneys Of the u States opposite
fund and $500 0c0 with those OF the common school fund
the barren condition Of the general fund rendered it
indispensable to for the support VI the government
nv dollar OF the capital Of the funds alluded to which
the treasury The total eseved into the
treasury and thus used, belonging to those funds
1886 057 II this invested in the stocks of 9t5
and l5i9 it would give the State the control OF the ba
lance OF the debt and take it out OF the market The
vision the constitution for the relief Of the General
Fund will enable that fund.- with proper economy to
meet the demands it, and the sums hereafter paid into
the treasury account of capital Of the Common School
and U s. Depose Funds may DO invested in the stocks
| oil l6i3 and l549.
II the resources referred not deemed sufficient
the honor and good faith Of the State by the u
nent OF its obligations the 9Th section of the 7h article
OF the constitution the Legislature with ample pow
or IL provide the necessary means.
This section reads as iollows:-
80 II the Sinking Funds or either Of them, pro-
vided in this article shall prove insufficient to enable
the State tho credit of such fund.- TO procure the
to satisfy the claims Of the creditors of the state they
become payable, the Legislature shall, by equitable
make them respectively, sufficient perfectly to preserv
the public faith Every contribution o. advance to tn
direct revenues, shall with quarterly interest," at thu
rates then current be repaid into the Treasury Tor tn
of the State, out of the canal revenues,
be done consistently with the just rights of the
| TORS holding the ssid canal debt"
In 1850 and 1851, the Canal Sinking Fund is equal
the AMOUNT OF principal and interest falling due ia thos
years Aud the demands on account Of the Genera
Fund for thoe years consist Of the Indian annutes
the due to the Specific Funds, which be deie
red, as no stock has been issued account of thes
debts In the statement prepared for the Convention
(Doc a., page 40 it was assumed that the debts to 50,
cidc funds would be paid in five years. being in 1851
The following statement shows the character, aond
ton and progress Of the state debt for the last
The first column shows the OF State stock issue
and loaned to railroad and canal The
ond column the sum borrowed for the ordinary suppo
Of the government, including the stock issued TO job
Jacob Astor; The third column shows the amount
unredeemed stock issued on account of the sewers
canals. And the fourth, the total Of the whole deb
The dcbts given they appear in the annual report
on the 30th Of September in each year;-
Contingent Gen fund .1ggregai
Year. debt debt. Canal debt Si0te deb
1897. $4,000 g18,0J2 6,66,082 1854 1
1888. ..... .1497 700 liza 632 9,30820 1883 B.
1879. ...... l8T,700 1,s92,2H i0,783eI0 l4,0257
1870. laI2o6I ltl266l7 lg3a5 n