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

| instrument which Is the superior law The relative
by any legislative executive act however sppropri
ate conclusive such act may have been when
ger portion OF the canal transferred to
Of these funds and smaller to another, than
the constituton epjoned the former became liable to
refund the and the latter entitled to receive the
II the Canal Debt Sinking Fund received more than
81 500 900 from the in the nst after
J. 1s46. the simplest mode Of correcting the account
in conformity with the constitution would doubtless
have been to withhold the amount OF such advance
| overpus from the subsequent contributions But as
the demands on the Sinking Fund for the payment of
tutioDsi appropriation Of 81 800 600 per annum the
result arrived at by issuing stock the
credit Of the Sinking Fund under the 5th section Of
the Tth article repay the Canal Com pletion Fund
the excessive payment which had been diverted from
it. To have retained from the subsequent conribu-
tons to the General Fund that portion OF the S400 900
transferred from the canal between the lst OF
June and the SOth September ls46, which was in
cess Of 600 per annum, would have embarrassed
the treasury by producing deficiency In the General
Fund, which must have been supplied by other loans
the credit Of the Sinking Fund This necessity ha,
been obvatsd by the bonds to the Canal Fund.-
for the precise amount of the excessive contribution
being $3.50 ss3 s3, and the interest thereon.
That the legislative authority was equally compe-
tent TO correct the account by mode the other
as public expediency may have required, seems too
plain to admit Of dispute. 1t may be contended that
ipsmuch the excessive carried from the canal
revenues to the Sinking Funds and the General Fund
after June let, 1876 applied TO the payment Of
tanding debts these debts were extnguished aud
cannot be revived and that the issue Of stock to
tion Of the provisions Of the seventh article which
strain the creating Of new debts But this argument
avoids the precise point volved In the discussion Ii
has not proposed to revive the debts which
paid But to the extent that the public creditors
funds TO the Sinking Fund, beyond the amount Of the
constitutional appro oprstion there dminu'ion
debt either in financial or constitutional sense
but simply q change In the form Of Indebtedness IL
nothing less thar the substitution OF
creditor for another
The fund from which the diversion made, became
a creditor fund and was mech entitisd TO repay
ment from the Sinking Fund ss the former holder Of
Entertaining firm conviction Of the correctness Of
these views. the comptroller respectfully submits tina.
the several loans above referred to- repay ment
OF advances rom funds which we're not to those which
contitutiopally cksrgable with the payment OF
the State debt now constitute part of the public
debt rs It existed the first day Of June 1876 In
Of the laws directing these loans TO be made
they are charged upon the Sinking Fuads created by
the constitution and the payments Of interest are
made from that source
The tenth section OF the seventh article Of the con-
titston provides that the state to meet casual
deficits or failures In revenues for expenses not
provided for contract debts but such debts direct aud
contingent singly or n the aggregate shall not at any
time exceed one million OF doilars."
Tive loans have been contracted during last fiscal
osu =, sIs eoo made q IN 'u, Of eSsntsr
1ss Laws of 1912 for the completion Of the State
Arsenal in the city Of New York. The comPtrolles
itusd certificate of stock for the cunt bearing
per cent interest," which Is held IN trust for the Com
mon School Fund, from vlich the money loaned.
Tbie certificate, with another for the amouat
bearing the interest and issued for the OBJ
iect in Is4s created new debt OF $50 900. for the
erection the arsenal which Is to bs repaid
the by the authorities city Of New York
from the proceeds OF real estate connected with the
old srsns which to be sold under the arrangement
reported TO the last legislature by the
on the 10th day Of September last loan OF S5o0Oo
was contracted by tbs Commissio Of the Csual
Fund In pursuance Of the act to provide fsr extra
ordinary r,psrs sSd Improvements OF canals" passed
These two fums making an aggregate OF $50 600 con-
stnte the only liability Increase q deot created
th.. .esttaA hV
Of the power conferred by the 10th section aboFe
ferred to
GENERAL FUND STATE DEBr
Tie srount Of the General fund state Debt.
chaiFeatle upon the sinking Pune created ~
!e, st7 of ths eous'iistion ~A' on the n ,o so, a.
TIC imosi Teqaired 70 pay the anDaii interest
on this debt ..................-. aG3H3 70
The smount apart af a.. csusi revenues a. a
sinking fund TO pay the ami redeem IN. Pa.
cIIal 81 this debt, 4 $3.50 Ot0 per annum until the
canal debt thail have been exiinguished, when the
contribution TO the GessrL Fund Debt SHAKING Fund
Is be inerstfsd 20 $500 eco per After ap
plying the sinking Fund appropriation OF s35o,OOO per
snpum 90 Iay the interest on the debt there will be
merits Of annual interest and when the prseut sur
Plus In The sinking Fund Of SlS5l 10 han have been
Exhausted this deficiency must b. advanced from the
revenues ~ the GeIsfal Fund
10 the General Fund Debt as above stated which Is
ehargeahle tte sinking FUND The loan n sSooelfor
the ,sotion the state Arsenal In the city ~ New
York should be add,d The interest this amount be-
Ing go Der snnun nu, be paid iron the rsyeoae Of
the General Fund until the ssid Of $4,000 shall
be rpsd 20 the treasury by the corpoIstioa Of the
city Of New York.
The amount ~ the anal Deot ohsr-ssbe upon the
Sinking lund created by Sec Art OF the eoustitu-
ton. ~as. on the 3oth Stpt.mberi loi9, ~ follov.
brio canal enlargement. sslY3g pl
sIs1psa Lsis canal igjc %
,henabfo etnsi. ........ go .eett%- W
csfees ysiisy canal. 5GfSi .
orsiss River Improvement. ............. bssa So
TO rfo,iGe Tor dsGoissoieI under srt5 sf Ne -.
eottltSnon Sl'a'h w
Canal ectt paying interest. .sis35iBE %
To the shove amount shsui be added the dsbs
81 $50 COO ercs,d ia pursusBce ~ the act provjpg
fer extrsmdinsry Tepsrs and improvements, passed
Ami 9th lsia which the interest being 50 0eo per
NUT be- provided for ftcm other toan
the csrsl revenues 10 4 for the Lsvsurs 90 detsr.
mine whether this interest shan be sspped from the
of the general fund or by ssttss apart suf
fcsnt portion OF the moneys received for premiums
losps.
The principal cf the canal debt vas dinini.hei,
during the pest ntcsl yesr by payments from tbs ca
nal SINKING Fund, f3ioS55 2i, and Increased $4,000
by the lean above referred TO- making the actual
reduction 90 follo~s s.-
Frineiral of deit. September 20. igis. rsJinE
rissits, Il dsii s,risEs,i % $50. payss
intsrttt. ....s.s..t.s b,fit"B "
psniru,ion. -, 30 SIS "a
The srsrsssts suoupt Of the canal dsbt, Insulting
the osn Of $50 OuO above referred g., the
Goth Ct September, ls4p, sl64ll S2i %.
orsIshL Trsr DFnr siSsiSe rrrn- -.
krtunt received ni. ,he rrsssnrJ .stTf'0 "
Dsfe en'y IN the furd, On 'he loth Sept, -
1sss statsnasst b. Bj........-.....'-,...,.sss ss %
Amo-ut trznffsrrsd % re General lund
IeveBus. for years interest on
- sit5ii %
surtius q ~ sinkbg Tuni. 0h Sept, lttq si2fS %
ADD n fifs intsrtft soy ~, ~ debt crested
fortfs srfcfion 81 ths ssr fcrk Arscnsl. % be -
refunded from the General Tusd in25 t6
Ard IL tIcws ~ actual furrus o. Sl35S %
ftierrs stock issued
~ fe psrt Frrd fcdsmabs lt lehnary l.if and held
~ tle Ifafurrr fr fsid fundit trrs she sut
the csun this fnnt from tie
ii n Iune 18th gpnbcr. ssi for wheh The Ccmnis
gsrtrs Canal Fund sgrcd % ths Tftafursr. sti
.ef su al le r.ymsntc into tie rrsarury
ior uat rcrod ............ -. ,..... siiG C5j %
In tFisrU utst tft den ards up5r this fund. there
lsvc tssn advaneef aas from the Treasury. snH
tfefs Ttu rned q haiancs due the Ftnsfai fund
s.teHus ON he s0th sept. isso d.. ioii7s IS
Iss,irs ths amsun, q The q "a on The S0th Sept,
1870 ...s..... ... SEES 80
For the purpose of ju,ng this matter between tho
Sinking aud the tsenetsl uui revenue accounts
IL has tuggestsd IN former reports from this Of
49, ~. hort "A %