The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1853-01-05

Amount lived into the Treasury daring
tho year ending oVsh SEPTEMBER, 1882, (soe
statement A)....... S5Sa,cO0 ~
--
3alsnce due the Treasury on the s0th Sep
TENDER, 1852. .................. SOL DOT ls
TO this fund Belongs s,x per cent stock Is
suss on account Of tho bank fund, re-
decmsble in 1858 500. .,......... sos 752 %
Balance duo tho Treasury, Gee statement
above) ...................... eloe7 A.
Amount Of the fund on the soth September,
loSZ... Observation-Disclosures. 4786 81
Tho amount Annually set apart BY the constitution from
the surplus roveDues Of the canals liking fund to
pay the interest and redeem principal general
fund debt $3.50 COO The anoua interest the debt
and chsxgcable upon the sinking fund amounts to
$500 sSs w. whish shows an annual deficiency OF Sl0
sS8 o. to meet the pay ment efintei the debt
D,ns .ne pas. yea. ene HUDSON snd Berkshire Rail-
@lseCoe Per cent stock loaned by the State to that
company The payment Of thr interest falls upon
the treasury and by the constitution IL made charge
upon the sinking fund. No appropriation havag bees
made BY the Legislature The SIX rs interest duo
fore require appropriation S2 AIS for tho payment
interest o. THE debt durng hs present fiscal year
submit to The Legislature letter from the president
Of this railroad upon tho subject marked (N) have
also received nsce from Of the bond holders under
tbs sct chap Al 9, hs laws q isa7 that the company
l. 1854 and claiming tho benefit Of notice Of any pro
oeedirss taken by the ComptIolr forecose the liens
q the State and othe bond holders pursuant to the act
ofle40 On the rst Of January next another half years.
interest win BE- due upon the loan BY the state and II it
Is not paid, 1t Is quite certain be- shall pro-
ssed to fsrsolOse these ieos aSsoraing to the law
viii b. aesn from the above that II tho months
interest due the stock RED to had been paid pre-
ous to the close Of the fsoal that the balance
tho fund would have been reduced $500 ST. and
the sum Of S0SI7 Is mu,t be provided for meet the
charges for interest upon sinking fund for the
6ecN year.
It will be further seen that the entire SCOPE and de-
sign Of tho sinking fund created by tho constitution
pay the annual interest the general fund debt and
adually to exngui.h the prtscipsl been defeated
by legislative ncrea.e OF that debt which the opinion
Of the Conprollsr was not authorized BY the Consu
In connection with tho subject Of the General Fund
Debt, the attention OF the Legislature Is respectfully
asked 70 the provision necessary to be made for the
msnt or ext6nsion u that Of the
to M due on the dst Of October next On tho day
Comptroller bonds Issued In 1916 per Chap ia Of the
laws Of 1872 for loans from Individuals a an interest Of
trosr when they fell due ard As it & the arst time IN
the history Of the financial condition Of the State that
sns ns. nos promptly met her ssgssnents to the puOls
dueed such result is due to the Legislature aud in
justice to TIE course pursued BY the Comptroller in rs
In the Communication made 10 the Senate document
No o. before referred TO- he called the attention OF the
Lglsure to subject anc asked foy tho passage OF
law su.horiziug him to make . loan and also for an
appropriation to pay this debt when due He
oppressed doubts his poser existing provi-
OF the Legislature. 1t Is claimed, he aware that Dy
the third sectcn Of chapter $40 Of the laws Of 1SS
titled An got to provide for the deficiencies In the Sink
pg FUND under the provisien OF article Of the
Constiuten and by virtue u provision foupd In the
s that ample provision Is made to meet the payment
81 tuch pcrticr Of the General Fund Debt may fall
Is not that the power thus clainsd has been ex
scised BY any q his That the authority
given By the act OF 1913 to borrow not deemed
sudioenay comprehensive ey oonproAae ant, u evil
dent om the fact that he procured tue additional pro-
ysen to Be- enacted in the appropriation bill Of 1851
(ses Page e34 laws Of lssl The provtion thus made
- we'll Is tho place where found 10 unusual The
character Of that provision. and the objections to 1t
the report the Senate and abevs referred TO-
(Bee page ii Of that docunent)
The dicuty Is not 50 nush that the power to issue
new stock bonds upon which hs raise money to
the debt when due is conferred upon the Comptreer
BY the provisions Of law but that authority u given,
cut appropriation BY the Legslatars Scot Of Art
Of the constitution declares that mo moneys shall
che fund, under its except in Of
"a appropriation by lawn Money obtained upon issue
efnew stock or bond: in anticipation Of ne payment Of
any portion OF the State debt be paid Into the
sury 1t cannot elsewhs1e there other depository
Of the funds of the State than Its treasury by
w ana when 1t Is IN the treasury ths constitution pro-
hbits all and every of it, public agents nom any
deposition OF 1t except BY virtue Of an appropriation BY
Constitution thsand 1t Is submitted to the oonsdra
Sion Of the Legislature other evidence the many
schemes which modern hrAneikrng has devised to nu
MY the plain provisicRs Of that Ia, .raraent.
proposed to issue stock bonds at tbs lowest
rate OF interest the proceeds Of which, together With the
premium obtained upon the loan will be sufficient to
de- The outstanding Donds wheD they fall due aud IN
stead OF passing tbs money received from the bonds
s0ck thus Issued TO the credit Of the pot
the In bang which ID to gent
tee fo- the Com proller until the holders ths state
bonds shall receive their money and In ,hss way to
what is to BE- called exchange bonds stock
r the OLD execution OF the authority erred
upon the Comptroller by the provision Inserted
the appropriation bill OF 1851. IL u xlse claimed by
the same class Of 6Dsnoiers, that the constitution
cutes tssf in the payment Of the stat. debt insmch
the 7th article intended to provide aud pro.
vide the means to psy IT, and that Gt
sry to carry out ID q provision beyond the general
thorjy given to the Comptroller to superntend the
fscs Of the state He cannot yd his assent
to either Of the suggested medes Of paying tbs state
debt lie docs not choose to he exercise OF any
question which appropriately belongs 70 the innsdss
representatives Of the people.
The power to hsue bonds stock IL clearly gwen
and needs further legislative authority but the
stution does not permit the Comptroller to pay money
without an appropriation and kc cannot seat
NitutionAl limitation upon their exercise
Tie legislature failed to confer the authority asked for
70 make loan or to make appropriation to pay IL
when made and ON the hst day q June last circular
sued to the holders OF these bonds that conss
1uence Of the omission BY tho Legislature make the
be paid at xix psr oent until The proper provision
their payment was made. "A copy q this circular Is
Ths OcnptrsIlsr was subsequently, informed nv tn.
Manhattan Company that they had purchased these
bonds from the holders and would hold them ct A.
tsxest Of fosr and half cont nAt some action could
b taken BY the present Legislature In relation to their
payment
There Is means ct The disposa OF tho State from
which this debt and further debt Of ten thousand dol
hr to beooae due the hrst Of October next be
paid new loan under the existing laws, or In virtue