The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-01-03

Interesting Letter from the Citizens Assoc
citation TO Comptroller COnnolly-The Revc-
nue. Bond System Under Review.

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Interesting Letter from the Citizens Asso.
citation TO Comptroller C0nn0lly-The Revc.
nue. Bond System Under Review.
CITIZENS ASSOCIATION NEW YORK.
No. Sl3 BROADWAY, Dec 80, 1867. !
hon. RICHARD B. CONNOLLY, Comptroller, &c. -
DEAR sm-The Citizens Association respectfully calls
your attention to the great abuses detailed below which
have grown up In the management Of tho financial
affairs OF this city and county, and requests that you
the head Of the Department Of Finance, Will your
best endcavors put sop system detrimental
TO the public interests The matters detailed below all
occurred before January l, 1887, when your term Of
office began.
According to the Comptroer's City Report for 1866,
page I, there balance OF s3,So7 966 in the city
treasury January l, 1865. Lot inquire the occasion
of this balance. From page SO OF the City Report il
appears That On Ssnaay / $3.50 400 OF the city
and from page 43 OF the County Report for 1896 ap
pears that on January 1885, 1924 700 OF county reve
bonds issued in 1865 were outstanding II also APP
pears that this amount Of 81 0 100 had been borrowed
July and August 1865 in anticipation Of tho OF
that year; but although there was average balance
OF EGO 325n the treasury from October 81 1855, TO
the end OF the year tsee page 1872 City Report 1869
Hpsn a. ho ns Of p S
not finally paid until March, 1866 (City Report.
page 232 $780, and the county bonds not until May "a
1866 County Report, page lI3, 1861 the city and
county paving interest upon them at seven per cent
aud the bank paying the Chamberlain at the rate OF
October IL 1865, TO the end OF the year. Another
portion OF the balance on hand January 1868, arose
from uninvested balances Of the sinking fund amount
Ing s5ss,6s4 This amount lying Idle since October
1865 shoud have been applied 10 the purchase OF the
city bonds tscs section Is of sinking fund ordinaucel
but although t23o 100 Of The bonds Of 1866
outstanding, tho whole Of this balance. which
averaged about 5000 600 tsee page 42 City kepor
allowed to lilo idle In the bank, the city thereby losing
the Interest
Tho city aud county began the year 1866 with cash
balance OF So 3e7 eo6 upon they were paying
terpst a
Chamberlain might have a revenue OF S135 91s year
by lending this smount TO the bank al four per cent,
u.s. 1906 by tho payment OF tho uonds tho bal
ante was reduced to 81, 15l, 25Z
II money were then needed portion Of the s642 5l3
then In tho treasury to the credit OF the sinking fund
could have been borrowed as the city would sli have
loan being 9 mere transfer from one account to
another on tho books OF the bank. Ihis,
the county Report II appears that in March there was
borrowed upon county revenue bonds the further
OF sos 200 In the month Of April 1885, with the large
balance OF 81 600 i0l In bank, there wore borrowed
upon bonds at per cent interest further
sums amounting 10 3o6 100 see page u City and page
% County Reportsl the whole Of which was permitted
DO idle in the bank, the weekly balance increasing
until al the end OF the month, IL amounted to
tho sinking fund since tho balance Of that fund conn.
ued 10 increase until II amounted at the end OF the
next month, to 81 o5,o3l In May, although the cash
balance was 81 500 0o0 the further sum Of 81 274 800
was borrowed city and county account at six and
per cent see paso q City and page % County
ally increase or decrease tho general balance OF the
bank, IT 10 possible that the bank lent the city aud
county portion OF their own money which the Cham
bsain let lie In tho bank, receiving for doing four
per cent In October, for the last six years. tbs city
has realized average Of a. 900 or taxes and
In November Of So 600 600 Therefore, wise financial
system would have prompted that those large at
interest should have been borrowed only until October
November, especially when money was 70 be had
summer at four or five per cent different course,
however, was pursued. The city not only paid SIX or
per cent all RUNNER because the bonds into
the winter months but In october and November, 1885,
although there was actually paid into tho treasury from
taxes sone $2 $50 93l lsee page Ill City Report yet
part OF 1866 only t4l6o00 were paid payable In
October and 81 095,0o0 in November the remaining
- 600 900 being scattered tho 10 lowing month nd
noay ST. 900 900 extending into 1867 tses page ~ City
aud page 70 County Repor,sl.
In the summer months. when money was cheap tho
balance was allowed to dwinde, since the bank could
hardly AFFORD 10 pny the Chamberlain four per cent upon
the same; but IN October when money was In demand,
and when the taxes came In, instead OF applying the
city funds 10 paw or tho bonds issued, tho bonds
allowed to remain upon interest while the funds we're
allowed to accumulate in bank, smith In November
they amounted TO f7o3s, 9Ts-isee page 1a3 City Re-
port-upcn which the city and county were paying at
the rate Of 100000 q year, and the Chamberlain
receiving from the bank Ut the rate OF $685. $50 year.
or nearly 81 900 per dav.
A. inducements for parties TO pay their taxes In
October, instead Of waiting until November the aty
actually SLOWED q discount OF s3T,ls3 upon the
g. 09S 33l paid during october lsee page 70 County
RsportI These millions OF revenue bonds permit
ted 10 remain outstanding for months drawing interest
per cent while the average balance OF IS $40 $50
raised at the extra expense In October permitted to
be Idle IN bank from OC0psr 20 TO December "a tsee
page ls3 CITY Reportl aud thus balance somehody
other than the city vas realizing At the rate " 81 900
day From rase ~ cy ard li3 County Reports u az.