The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1852-07-02
Finances OF the Canals.
CIRCULAR

CANAL DEPARTMENT, ALBANY, juno rs, 1862.
To -, CANAL COMMISSIONER:
SHINY letter of the 18th instant written just a.
] was leaving town, for q short period, contained
an ntimation that would explain moro fully why
only fifty per cent of the estimates mado for each
month to January, could be paid, at least to the
close OF the fiscal year. My absence and ocoupa-
ton since my return have prevented my doing il
till now
On the 10Th of May, you were asked for yesf
monthly wants to January next. On tho 18th Mag
you were advised that your drafts would continue -
be paid on the old contracts and +" that you would
be duly apprised Of any want Of means to meet
them"
The returns of tolls in May showed the following
Dec Of tolls on 14th May as compared with 1851 sl,7s
This rapid decrease, after the middle of May,
amounting to $50,0G0 in sixteen days, in conneo-
ton with the decision of the Court of Appeais.
which limited the expenditure in the completion a
the public works to remainder Of the canal revenues
was of so alarming character as to lead to an i'm
mediate examination into the condition of the funds,
and particularly Of the probable for the fiscal
year ending September Both. This examina6oa
developeda state Of things about as follows:-
Loss Of canal and railroad tolls from Both Sep
TENDER, 1851 to LIST April 1852 .......... $2l 500
Loss of canal tolls from LIST April to 14th june
Estimated loss Of railroad tolls from LIST April to
Both September say....................... 1oosee
Increase Of expenditures OF superintendent for
February, March, April and May ....,....... 5000
$esl,1ov
Deduct this from surplus of 1851 which 9s4 4S4
And it leaves the sum of ACKNOWLEDGEMENT aa27m
AZ the surplus for the current fiscal year applicable
to me completion Of the public works, If the tells
sad repairs for the remaining ten weeks Of the yeK
should be about what they were last year This
was, Of course, very unexpected and startling de-
velopement. Before the decision of the Court Il
Appeals, on the 18th of May decrease in the canal
tolls and the loss Of the railroad tolls did not excite
any particular notice. inasmuch as the reliance fss
the Continuance Of the works was mainly on the
proceeds of the canal revenue certificates. And
after the decision, and before it came apparent that
the de rease Of tolls continuous it was not SUP
posed that the surplus would vary much from that
Of the preceding year. Up to the 18th of May. The
payments on contracts had been made from tho
avails of canal revenue certificates Since that
date they have been made from the surplus of the
current year, no portion Of which had been earned
before the LIST of April.
1t is proper to say that beyond the surplus Of tho
current fiscal year. whether it shall be $500, 900, e.
$500 600, no other or further means can be antio.
rated from the surplus revenues before LIST juno.
1893, as the receipts up to that date from the Goth
September, the close Of the present fiscal year, will,
probably, (as they were the last year, be more
than sufficient to meet the ordinary expenses of the
canas and the contributions the treasury and tho
canal sinking fund.
When it is seen that the aggregate payments, CO.
timated to become due on contracts, and for engi-
neer'Dg, not including miscellaneous payments, land
and other damages from June to January, both in
elusive, are over $S50,000 and that the only means
to meet them is the surplus of the current year. est
mated at the best present informa tion at 1892 0O
it is evident that reduction of so per cont upon the
estimated wants will not be sufficient to keep the
expenditures within the means to tho close Of
the fiscal year. unless there shall be large increase
in the tolls for the remaining nine weeks Of the
year. And it is more than likely that a more rigid
estimate Of expenditures than has yet been posi-
bic, which shall embrace engineering, land da-
images, &c, will show the necessity of q reduction
NM he a Qt ftv
From the foregoing it is apparent that the unex-
Iected and unprecedented dimnuton Of the means
present ano prospective will render 1t imperativoy
Necessary for the Canal Commissioners, under the
provision for that purpose in the contracts to sus
pend for the present. work, the prosecution Of which
the security necessities Of the navigation do not
Immediately caU fer.
You see that the estimates are over $3.50 0O0 for
seven months to January next. Suppose the esi-
mates. at the same rate to be carried to the lse
June, 1858 (before which date more means can
be had from tolls than the surplus Of the current
Year, and it makes total sum of 81, zoe, 900, 70
meet which the estimated means are only 1892 900,
which may fall off, and may, perhaps, be increased.
say 100000
the diminished amount stated, were TO be $500 OO0
which is the average Of previous years. il would net
be safe basis for expenditure OF more than tive.
thirds Of the $S500O0, estimated for six months
TIE real difficulty in al this matter. inispendeat
Of and beyond the expected dminution Of means Is,
that contracts have been enterednto and
much hey ond what the average REMAND of former
.ears. or a reasonable anticipation Of future ones,
would justify; aud the only way to correct the
error, is to resort to the power in the contracts to
delay work until its progress shall be adjusted to the
means Excuse the length Of this. MY apology 10
in the Importance Of the subject Should appear
to have travelled little out Of my way, you must
attribute il to my strong desire to impress the mat
ter upon your attention.
Very respectfully yours, Sc.
G. w. NEWELL Auditor