New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1860-01-04

z, y
=, under sr;. T. slo Consuiion:.. e4a5S5 . Ss29 ~
g1soL art TO pay floating tebt ' sS.s 1900"
ContiI gent dsbt.............''..'. S'o"o0
Total deb, SS3 R83 es Is
The rross revenues Of ii canals for tie year ssgo g
Expense Of repairs, collection sc......... sG 70
Surplus ACKNOWLEDGEMENTS" $4,000 81
Upon this exhibit of the State Indebtedness the Con-
troIler remarks:
1.-The sum of ST. ZOO, 600 is appropriated by the Con-
stituon to pay the interest aud principal OF tho old
canal debt aud the amount % so6 00e 81 will all be
absorbed and leave efficiency OF 800 ,e39 IS. The
interest of the old canal debt is s64, 263 o., which
leaves of the surplus the OF 1871 H 63
only TO apply the principal The surplus revenues
being only applicable to the old canal debt the interest
on the remaining Indebtedness Of the State OF S2l 6
239 &C. must be paid by taxation lhe annual interest
on tbis Indebtedness Is a. 243 5 49, which requires
nearly nil tax to provide for The Last Legislature
refused 10 provide me91s 70 pay the interest on the
new canal debt of SD 600 600 insisting If the report
OF the majority of the Finance Committee in the Son,te
is to be deemed the opinion OF the Legislature that the
Commissioners OF the Canal Fund Possessed the power
under the third section of the 9TH Article OF the Con-
stitution borrow the money for thar purpose and
that it was their duty TO exercise thai power. The
Commissioners of the Canal Fund declined 10 increase
the debt Of the State by loanDg money 70 pay interest
upon the grounds expressed in the report OF the MI
pory Of the Finance Committee Of tie Senate, aad in
the report of the Commissioners to the Legislature of
ls5s.
"Ihe Controller has no doub of the correctness Of
the eNpTsfrel m the reports ro'errcl 3e
question Of expediency The practice OF borrowing
money year after year pay interest is aphorret
to every principle of sound finance so ssniheant OF
impending bar kruptcy. and so Illuminating 70 the dig
ni,y and character of the State that the Controller
incred to altribae the pegsct of The ~ Legislature
10 feeling Of timdity in imposing the necessary lax
for that pun pose, rather than deliberate Intention to
fasten upon the State such preoedent-a precedent
which practically overrides every safeguard OF the
financial article Of the Constitution, and dooms the
people Of the State 10 everncTeasng and neyer-endng
irdettedpess A moments reflection must convince
every one of the folly Of waiting for the revenues 10
reach an amount winch will pay the interest on THIS
debt. II will require 81 100000 Of surplus revenues
or 797 g99 IS more than was realized the last year.
TO accom-, lish this result. There has n,yer been but
two wears lin is47 and 1851, when the necessary
amount was received. The existing and constantly III
creasng competition and the consequent and necessary
reduction Of tos, render 1t impossible thu. anything
like that sum will ever again be realized nom the
canals; consequently part OF the revenues can be
apnled 10 the payment Of interest Of the now debt until
the old canal debt and the general fund debt amount
ing 10 more than slSOOO,J V are paid oil, which WIZ
require taking the two past years as criterion, nearly
40 wears BY which time II money are continued 70 he
BORE wed 20 pay the interest the new debt Will nave
sweed 20 more than 900 000, COO The Constitution
contemplates the payment OF the principal within 10
wears afier The debt was created and Of course the
Sinking Fund on the credit Of which rs proposed TO
borrow money have no existence after that PERIOD
and prior that time II is certain thai the revenues
will not reach IT, But If this was not so, the credit oil
the State could not be sustained under such p0lcy
for onehalf the PERIOD ii would require to pay prior
liens upon the revenues. The only resource theh
would be the power OF taxation 10 pay 'nc n..r
which would be 40 largely increased az to render the
;muosition of taxes intoerable And yet II has beei
claimed that State officers should loan money on the
credit of such a Sinking Fund.- fund hopeie7siy
destitute OF revenues, present ana prospective ,
The Manhattan Bank Of New-York City Is comph-
Deuteo for advancing 1885 900 to pay the interest for
which no provision was made by the Legislature.
The Canals are now 20 nearly finished that no ques-
ton will probably be raised to the propriety OF
promp,y providing means fully complete them. This
can only be done by taxation but viii not be neces-
sary to impose the whole amount in single year. 1t
is believed tina, seven feet of water may be obtained
throughout the entire length with the amount Of
tax as was imposed the purpose by the last Legs-
lature
The amount expended upon and required for Canal
urrores since the adoption OF the amendment Of the
Constitution in 1854, il as follows:
gorfosed un der the amendment. 'Ss@ w
Premiums on I.oans ga ~ So
Loan to pay sortne go go o.
Required TO complete I
eissis,sea 70
From the facts presented and referred to, the Con-
troer estimates that the following sums are necessary
10 be raised by the Legislature for the inInedias wns
Of the State:
TOr tbs ordinary support OF TIE oo'eit'ssH ,o -
| fiscal year commencing on tn. lat day Of oe,ose,
u..t pcludina 205 20 interest On the beneTh
Fund Debt and other debte tie ineEes oil which o non M
peysbls fron The General Fund. ri's"oo" '"
For interest on Canal Debt O. tlaopc" two ana M, q,
For ps,nsnt Of porary loan, made by tho Com ma ~ ~
OF uId, due Jny J. looV''' <oof'
Total .ssc'oep 4"
This does not include anything for proceeding win
work on the Canals. II the same amount ~ was lss'
wear l.,ied shall be raised $3.50 COO, it will inereaso
the above sum to $3.50 900. The Controller has no
doubt but the tar for general purposes may be redaeed
with safety 10 one mill on the dollar, IA there VIII DC
no outstanding liabilities W absorb any portion OF II.
mill tax will Yield, in round numbers, si,fooVoo,
which with tie other revenues Of tue General funo,
of abou, 500 O0O will constitute fund OF si,o""V
for general purposes. OF this, nearly sieooo ~ re-
| ouired for interest the General Fund deo'. 'ne
balance u e. 20O, 900 il believed W te ample ior AL
The neeefsary expenses Of Government and ekeeeaS
the estimates herewith presented more than si"VV"'
| Twelve pages OF Mr. Church's Report afe ae-
voted 70 a vindica,ion Of The las' Report OF 'no
Controller from the attack of the isse Canal '"n'-
4" missioner Rugges." Asths IL extrn'eo's f"R"'' VIC
| IAN il over without further notioe. .,.,.,
The School Fund shows aggregate OF s-'''c,|'i'
of which sf2 600 IL cash ID Treasury Revenue '''S
wear testinlstedl, 1926 000i payments TIE 'a'ne'
Literature fund, espissl, $4,000 revenue s'z''|i
| naxuen,s si2.5u0 United states Deposit fondi
c,nit.l. siOIiOOo; revenue, $l'o,voi EXPENSE
| .,Ia. IN Noyotubu amounted ID