The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-10-21

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ground that II was against law. This motion
was opposed from two SIDES -drst on behalf Of
Sharp himself, and second, on behalf Of the
Corr 0ration. So that the curious spectacle
was presented in the case Of "a house divided
against Nself"
We do not know what may be the merits Of
the claim. Mr.. Sharp may possibly have had
good cause of action against tho Hity, and it
is also within the bounds of possibility that the
report Of the referee was fully justified by the
law and the facts. But it must be admitted
from all the developements that have been
made within the last few years as to the man.
Der in which collusive suits have been got up
and adjudged by referees invariably against
the city, that the prescriptions are strong the
other way. The system has grown much into
vogue within the last few years, and the city
has been grossly victimized by it.
CRY DEBT UNPRovIDED FoR-AN IMPORTANT
FINANCIAL QUEsrIoN.-It may not be generally
known to our citizens that floating debt has
been accomplishing against the city for many
years past, which now amounts to between two
and three millions of dollars, and for the ex-
tinguishment Of which no provision has been
made. From variety of causes-the nom
payment of taxes on personal estate, the remis-
sion by the Supervisors of sums charged in
excess, and the failure Of tax collectors to ac-
count faithfully for the moneys collected by
them-it invariably results that the revenues of
tho city government are below the amounts
estimated for. The system on which the city's
finances are administered is to borrow money
on revenue bonds in anticipation Of the receipt
bonds with the money received for taxes The
closing up of each years business leaves
number of these revenue bonds unredeemed,
and these are paid out Of the next years taxes.
They have been going on increasing in amount
from year to year, till they now reach between
two and three millions Of dollars. The interest
on them, amounting to about two hundred
thousand dollars is regularly paid, but there is
no provision for the payment of the principal.
What is to be done with this debt?
That is a question which we understand will
be brought before the State Legislature at its
next session. There are two ways Of providing
for the redemption of these bonds. The one is
by adding them to the regular funded debt of
the city, and paying them off out of the sinking
fund. The other is by including them within
the next tax levy. If the first named mode be
adopted, the payment of the debt will not prove
very onerous but if the latter plan be carried
out, it will have the effect of increasing next
years tax levy to thirteen or fourteen millions
Il dollars and the rate Of taxation, from the pre-
sent high figure of dollar and seventy. nine
cents per hundred dollars, to about three per
cent. This consideration makes the question
one of very great Importance.
1t is said that the plan of making up similar
deficiencies in Brooklyn is by including the
deficit of one year in the tax levy of the next;
and this plan has the twofold advantage of
| rendering unnecessary the creation of debt
and of allowing the tax collectors to pocket all
the arrears they can manage to pick up. We
| fear that our own collectors of taxes and ar
rears initiate those of Kings county in the lat
ter point. AT least Alderman Franklins re-
ago, and by that body quietly laid at rest,
would justify such presumption, for it showed
an aggregate of some six millions of dollars
that passed into the hands Of our tax collec-
tors and never found its way out. Wonderful
are the mysteries Of our municipal financial
system; but the immediate question now is as
to the exthguishment of the particular debt
that we have specified. 1t is an important
question for our citizens.
EPISCOPAL OBLrvIoUsNEss IN MONEY MAT
TERs.-A suit has just been concluded against
the Roman Catholic Bishop of Rhode Island,
which, if the facts are correctly stated, is any