The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1856-02-22

Sh0u8h ic1et hn exW8ve9an0o t0o opArunon0 ana
buIesux should adopt and pursue . rigid, yet just
ms SINKING FUND AND 1Hs s1srrs FOR rs xAxAen~sz.
we nave IN prospect very large increase Of the city
debt only for those objects wp,ch have already been
alluded but also Tor the construction Of docks pers
&c, for the protection and convenience Of commsrss
which PROBABLY destined to rival that Of any city in
the world If the city construct such docks
CURED Tor The accommodation Of trade, portion ooIy
OF which, AZ how charge pays the general government
en- annual revenue Of forty millions of dollars, it will
be necessary to create large addition to the city debt
view would be much lees and Objectionable than
that Tor the great psrk, from the fact that the docks
the city for the outlay. Il would be stu better how
ever to lease or sell the city privileges to indivi
t tua ana sna,a the business men who msnags the
works % then experience has taught them are beat
adapted to facilitate the oommer,e oitbs city.
iIg PIERS pubic buildings, and the Croton Aqusducs
are secured 10 the pubic editors by pledge OF almost
ed from that PROPERTY as we'd as from other sources
Statements Nos. and 5. show the character and COM
Of these pledged i1uds There are two
the debt and the other for the payment Of interest.
The sinking funds by the ordinance 1874 placed
Mayor, Recorder, Comptroller, Chant erain aud the
the Finance Committee Of ssch Board Of The
There at this time accumulation OF fluids in the
hands OF the proler under the management Of
ssrssts sac w. "a 7ia s sue ns ;nsrs
portion OF the identical debt which this fdnd pledged
10 reimburse. These certificates have been purchased
redeemed from individuals who originally loaned money
to the city, sLd have transferred the certificates to the
Commissioners Of the Sinking Fund, which held BY
them for that fund and the Comptroller collects the 10
time to time, in other stocks.
mind, and the Comptroller has been called on BY the
Common Council to explain why it 10 that those evil
dences OF debt, after they have been redesed py the
identical fon(s which have been apart the pur
pofe not cancelled insteadof being retained by
lrustess ana the interest collected them from time
in report to he board Of Councllsn on the aosh Of
February 1854 in Doc No. 1 that Board Tho reason
is that the laws and ordinances, they stand do
net permit the Commissioners to e csrtfc
en- The contrary they require Them invest he surplus
the stock having the longest tune to run, ami to col
kct and reinvest the interest In stock OF smr charsc
ter when it can be DONE copy of title Of the ordi
rance of 1884, is appended and marked No 80, which
shows the conditions on which the investments OF the
surplus tund are to be made.
In view Of the rapid accumulation of the city debt and
the financial en,anglements which surround US, the
course Tor the city and decidedly advantageous to those
interested the present debt to have the surplus funds
VII eh is arst yabe ard have cancelled In doing
tits the greatest should be- taken only pre-
serve and secure all the rights Of the stockholders but
to Go in such manner preserve she confidence ia
the good faith Of the transaction.
The l@gislature Of the state at request Of the Common
Council passed acts in 1S45 ami in 1851 guaranteeing
the creditors Of the city that the ordinance February
22d 1sA4 establishing the Sinking Fund, should
coz sent Of the legislature Chapter OBS laws Of I845
and chapter 236 0, 1851.
\ would be necessary order to change the ordinance
Of 1874, that the alterations should prepared to
give ample protection to the holders OF all the ceti6-
Gates to be submitted to the Legislature and sanctioned
by an act to be passed BY them.
The Sinking Fund Of this city possesses the unobsc
tonabe features Of the sinking fund estab ishsd by M
Pitt in 1885, but it is entirely free from the objscona-
bic principle engrafted upon that system in 1892,
Which was to have exDgnished the debt Of England in
1887, but exploded in 1873, will be in susse-
ment Ct this city to its Sinking Fund may not BE- SO Sc
verely tried as was that OF England 10 her with b.
NY q W s a. the s time for Iaon
IS SAFE fcr the public creditors II the temptation
moved out Of our reach.
slant use for the ordinary Of the city govern
ment At stated periods wien the outstanding stscks
are not fast enough to absorb the
venue bond issued to the Conmissi OF SDkinQ
Fund 1t per cent interest to balances the ac:oun
The extent to which the surplus temporarily used may
October, 1885, Doe. 60 Of the Board Of Councfmen.
me state Of New York Ia constructing the Eeie canal
established sinking fund very sensible basis AT
Ter providing ample means for the payment Of the debt
il enacted in the law that the Commissioners OF the
Canal Fund after providing for the payment Of interest
thus rurehased should be cancelled This is tbs only
&c; tam msds 1t giving effect 70 sinking fund The
OF the term; and premium paid for tae stock the
government is remunerated for it in the removal Of all
In regard to principal and interest and in the credit
sipai canal debt Of seven and half millions was pai BY
pu1 chase a. large PREMIUM and the stock cancel
leo o. soon % purchased The extended from
1883 to 1916 The entire stock was redeemed and the
original anal debt extnguished.
The Revolutionary debt Of the United States aud the
pcacn Of The surplus revenues Of the government TO
me 81 u: stock and c.ncsng In TIL way
1s sas
.SI,a the gratifying Of free people, sisr e.
ch.rsr asn .aepenosnce BY . seven years. war, dis
al their obligations to the pubic creditors BY
M n Undue 49,
ness Of pledge Of the public faith.
The United States government is now reieemng, ct
with hsxioo BY using the surplus Of the 60
verrment for the purpose.
This is the mode in which the sinking funds of the
UDied States snd Ct the State Of New York have been
made effective and secured the actual exnguishmeut of
the Obligations Of government.
TIE SINKING FUND OF ENGLAND.
Let us now ste what has been the practical effect
far Is relates to the removal Of the debt by the SINKING
fund system Of England
tho psyn emit of the Brith debt under the admnitrs
ton Of Mr. Pitt in 1885, the interest OF the deot alb
sorbed more than Of the public revenue and
1t was then asserted thata former sinking funds had
failed OF producing great effects, because they
Iected to the annual discharge Of certain portion Of
destined it's future ana progressive liquidation; they
advanced therefore, by addition not multiplication, in
an alishnst,csi not geomstsical progrerson."
rected TO the prodgous powers Of the accumulation Of
money At compound interest and Dr. Price hsd demon
bhoseu, tb9t any sum- now
ever small increasing at that ratio, would, in given
time, extipguiah any debt, however great.
Mr.. Pitts plan was. that million yearly, made up
and taxes should be set apart and sacrey applied
to the purchase Of stock In lis speech In Parliament
he illustrated the operations OF his plan follows
this million said Mr.. Pitt be 30 applied Is 10 DO laid
out. with i1 growing interest win amount to large
sum In period that not long In the lie of ndvdua
ed but an hour IN the existence Of great naor and this viii
diminish the debt OF this country much The ext
gences o. from rasng he height has
hitherto DONE In the period Of twenty eight years the
OF q Million annually improved, would four
millions annu. But must be taken ha this be
not broken In This has hitherto this
country for the original snking fund had properly
Preserved can tasy be proved that our debts ct Tits
would not have been burdensome
To- has been found impraccsb because the Minister
Sum- which ought to have been regarded mos. 70
ed conDis toner's 70 be BY them applied guar terry buy up
stock BY which means no considerable will be
Long and very long has tho country struggled unds rs
row look forward 70 the object which the existence OF the
country depends minister could have the confidence
md hA NJ an