The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1850-01-07

With view to determine whether the General Fund
debt has been actually increased by this issue Of
bonds IL becomes material to ascertain what the
real amount OF that debt the drst Of une 1846 In
the report Of tho comptroller to the constitu-
tiopsl convention the General Fund d. BIT est-
mated to amount, on that day, to IS Ss5.5te "a
But IL Will be seen that, instead Of making q
Ssesncy ON the is of the psnopt sona
the exact amount Of the debt existed eight
previously on the Both of September 1915 as present
ed In his previous annual report to the Legislature Of
ls46, 1t was assumed by the comptroller that the
amount Of the debt had not been increased or dimn
ish.d between September, 1S46, aud June, 1885, but
The accounts not brought to rest at the lat
ter period, has any Official etateme mt been made to
the convention, or the Legislature based upon
rate analysis Of the receipts and expenditures to that
time, showing the definite amount Of the Treasury
debt. "a II existed the first OF Juue 1886 Indeed
would have been difficult task to ascertain 1t with
tsnty at intermediate point Of time before the
have shown conclusiveiy that the amount must have
been larger than the estimate before the at
,ns psL,Uo ,nn suaea 70 the nrst place, there was
June and septerbsr 80, ls46, the OF $500 600
Notwithstanding this large payment within the short
space OF four months appears from the comptrolers
annual report Of ls47 that the debt had increased to
the sum OF s5e92s40 % In referring to this subject
the report rays =" The above s the debt it stood
the first of June e. S5ss5,5i9 24). At the close
Of the hscal 1t sscerined that the debt had
increased slo7 Goo this is to be added with interest
1t is evident then that the revenues for the fiscal
yesr, ending September 80, 1856, insufficient to
meet The expenditures, and large deficit thrown
upon the general fund lt would be difficult TO deter
mine with precision what portion Of this deficiency
crued before or after the time fixed by the constitution
for the financial article regulating the disposition OF
the canal revenues to take effect To the extent that
the exstirg debt for which the sinking fund was
stituteo. So much Of the defcit II any,
stoned by the expenditures after the lst Of June lso
new debt to be provided for from other
ces irrespective Of the finking fund. But IL be
safely that the principal part If the whole
OF this deficiency must have existed at that period
q he
eiest for the fiscal year the fund debt had
then been paid and so far as the revenues we're def
cient, the payments made by the ordinary prac
tce Of using the moneys in the Treasury belonging TO
the School Fund and other specific funds.
This made apparent by the statement of balances
due from and to the General Fund on the Seth Septem
ber ls46, given in the apnrs report Of the comp
troler to the Legislature Of 1s47 IL Is there shown
that the ba ance due from the General Fund to the
specific funds, 81 0i0 063 81, and after deductipg
an the money In the Ir,s'ury, there Iemsined oa.
State debt ard afterwards quidated by the issue
OF conptrollers bonds to the School Fund and the
United States Deposite Fund The amount due from
the General Fund TO the specific funds the 30th Sep
ten bor ls45 war S74o,I6l 78 which was reported BY
the comptroller TO the convention part Of the State
debt existing the let June 1s4o thus showing that
the balances In favor OF the specific funds formed q
debt against the General Fund not only recognized by
law bSt int nded To be provided for by the
ton The balance due to the other funds for advances
TO the Treasury prior to June isio must have been
largely reduced by the transfer Of Sio00C0 from the
Canal Fund to thu General Frnd, between June 1t
and September 30th, lss6
The constitution approDriates from the canal rtve.
nues to the General Fund, such SUN not exceeding
S.Co0o0 per snnum. msy be required to dsfray the
ordinary e1pepfes Of the State he amount TO which
the General Fund entitled from the canal reve.
nues under this provision for the first third Of
sfer II to take effect third Of s2cooos,
sec c6o o7 whereas the amount nctusy Transferred,
exceeded that by $3.50 333 33 The act Of Apr 8,
1sis sfsumes. and IL Is believed correctly assumes,
that the canal Fund became the creditor OF the Gene
Fund for the Of this beyond
stitutops appropriation 10 upon this groond that
the compirosrr bends for $3.50 600 issued TO repay
lt~ hall -. Int m Faals
part d the debt existing at tn. time from which the
tnauciai article became operative and therefore
chhrgesbe upon the General Fund Debt sinking Fund.
The same principle was adop'ed by the Leyisiatu1s
OF ls4s IN the psags OF the act authorizsg loan
Canal Completion Fund that portion Of the eurpias
81 the canals 81 $50 600 per (be-
louging to the sinking Funds and the General Fund.-
which wa, applied to The payment 81 tie canal debt
between June ], and September 80, 1915
whatever difference ~ opinion may exist as to tho
true construction 81 the constitution IN this respect
ct what point 81 time its provisions rssing g the
canal became operative - believed that
doubt eau be entertained respecting the nenon Of its
trainers
IL known to the convention before the final adop-
uon of the constitution BY that body that sum
,dbg the rate Of 81 800 GOO annum bad been
piled frc the canal revenues. tue psynent of the
csua deb', since June l. 1915 Vet they provided. by
the seventh article for distribution Of the canal
revenues into distinct fands commencing the hrst
of June one thousand eight hundred aud forty T."
to0 eco per annup Sinking FuDd, 20 pay the ins-
rect and redeem the principal the canal debt IL
txist'd at the time hrst Aforesaid y
Tie sane provision, In respect TO time controls the
application Of the canal revenues 20 other funds AID
ohiects IL could not hsve been conceived that any
temporary use or application of the funds ia meeting
the txgepcies OF the treasury could operats 10 nbvs
the insrpment and defeat It's ultimate execution ac-
eofdirg TO is plain and explicit terms. To give elect
20 the financial article not sbls
difbcul duty. IL wss forefesn and well uDdsrstoOd
that this might be easily secomplisbsd by opsning
sepsrat- account with each Of tbs funds TO which
tiops Of the canal assigned commencing
on the day preecribed II one Of these funds had
cdvsd more than the constitution oesigusd whilst
smother received less true account w.ud exhibit ths
debtor and the ctbfr creditor fund co the
amount of the excess dsnisrcy; and the balances
thur existing could not be 6isegarded In thu succeed
ing distribution tf the canal ressnues. The uniform
practice 81 the treasury ollowing the requirements of
Law that suhect bss recognized this distinction be-
tween the tsvsra funds created by frmer legislation.
II being concd,d that the amount applied to the pay
msbt oi the State debt was larger than the consttu
tion had Appropriated, and that the moneys we're
taken out OF that portion ~ the canal revenues which
bsd been set spsr Tor smother purpos can there be
the credit Of the Sinking Fund to rrpsy the
20 the fand from which IL tAksni In Othsr
vords does not the fund from which the excess wsl
tsksn stand In the place f IN. original essitor aud
Is ~ not equally entitled 60 be paid
For nsuy years the General Euud has been debtor
60 the School turd spd the Literature Fund and he
tssnces thus created have been viewed aud provided
fer invnishy Tart ~ the state sebt This system
re,ults from the sxgenciss frequeuy from the neces
in the nstsre Of things be continued In the sdiust
usnt end regulation of the several funds created By
the contiinhs ~ lSlhs 90 far ~ 70 fhfhre eson
the proporticr Of canal tos 90 which it s entitled
II may be urged that, although the financial provi-
sioBs Of the oonstution regulating the canal revenues
10 take ssct. By express terms, on the let ~
June. yet they did not become operative until they
subsequently, fsiined hy the people aud there
fore could rot act retro psct'sy IN reaon T. pay
ntnts and tsDfers Of the csuA unss made afef thst
ptfod and before the final adoption q The instrument.
But this rcsiusn T. believed 60 be unsnable aud alla
eous ~ the argument l. sound the oonclusion
csfgtiy follows that the authors q the c1nstit u0n,
either from Ignorance dssigu. tugrsfea upon "
provision which impracticahlo 81 execution thst
the plain sbd dsnnste terms u the instrument 90
b. rjsct,d in its Interpretation ard IN short that 90
execute u in the manner it Tr,scribes involvtsis
vicistior IN requires usurpsi0D ~ egsiave and
adribietfsfivs authority.
ghe comptroller Is not prepsred 90 adopt rule of
construction 90 repuEnabt ts reason aud precedent.
Itis true the constitution could u take effect until II
received he popular sanction.
The 18th section provides that shall be In force
cm Ind including The drst dag of January lst7,
cept ss - herein othervse provided But " vas ex.
ptefy provided that the nntnesl afcl- ~ far ss t
reste g. the canal should be n force frou
ebtscedsnt cay. matters not that the whole In
strumsnt cid not take effect til JsDuary lsfT. this