New-York tribune., 1868-01-03
TIE CITY FINANCES.
LETTER FROM THE CITIZENS ASSOCIATION 10
CONTROLLER CONNOLLY.

LETTER FROM TIE CITIZENS ASSOCIATION TO
CONTROLLER CONNOLLY.
CIriZYNs' ASSOCIATION OF NEW YORK,
No. sI3 broadway. Dec. 30. 1851.
The Ton EIcuArD h. CONNOLLY. Controller, de
DEAR SIR: The Citizens Association respect
fully calls your attention the great abuses detailed De-
low which have grown ny IN the management OF the
financial affairs OF this City and County AMI requests ihas
you the head OF tho Department of Finance VIII use
your best endcayors 20 put stop to system 50 dotFl
mental to the public interests. The matters detailed be-
low all occurred before January 1907 when your term
~, Office began According TO the Controllers cry Re
port for l-, page T. there was balance OF sJJ'Do W
the CITY Treasury January 1880 LIT u, Inquire me ,c.
Report II APPEARS that on January L. 1850, Sl332i] 0i the
(y R,yrur bonds issued iI 1855 wcrr hrn uut,idHdn-
Rnd from page - ~ the COuiy Report fy 1850 appears
thaf on ry l. 1876 sJ24TuO oi County Revenue honds,
.siird in 1863. outstanding. Is amount OF s.V'
ciplton of the taxes OF that year; but. although there
WIS nu balancr O 253-j ~ tc IicaHiIy rom
October a. ls the cnd ~ the year tsee page H. CJ
Report ls6 upon which the city ana County were paying
Interest 1T tine rate -? per year. the C.y bonds
@ S'f Is , ,a tna county h"nis no May 81, lss
county Report page ll3, 1866, The Cliy 4nd C1uy pay
Ing interest uUu inem per cent. and tho Bank pay
&c. IN rem, in fr,nn October ~ isj 10 the end
the year. Another pprtun Of tie balance on hand jan
J. 1870 from uuycscd balances OF tha slnk'nZ
sinrc Ort"r should nave been applied to TIE pui-
chase of thr CITY bonds l-ce sIj ~ Sinking fuu ou,
u, bgf ALTON gl g. sT 100 OF lie Keycnur bonds ~
1875 az ~. outstanding the whole of this balance whirl
nyrr1.ed ai,t SaOoD t,ee page Ii2 CITY lieporti
nlnwrd to lie Idle ia the bank, tho ry thereby losing tho
utcrr,'. Tie cry AID County began the year 1876 win
u cash balance Of gi,cCS upon winch tiey were pay g
r.i M I'M. rat, uf ~. 35, q q year l order that the
CHAMBERLAIN might have revenue of SiJ3JlS % year
los lending this amount 10 the Bank at per cent FROM
lne Cty report pse - L. pltars ,.a Oh si,Sn M - 40,
WIS reduced u Sjs,92 7a II money we're t'on needed
portion ~ the .JlJ ~ then ~ ihc Treasury, 10 TIE
cicl uf The sinking Fund could hny" bren borrowed ~ ic
Cy would -i have had the entire biiicr oi Slo+4 -
IL tc BANK. tlr loan being mere transfer from o.e nc
.lft. flf u.Ht stff
cr WIS done. From page 2s ~ the County krot u
nppcar- that ~ Mauh there wns borrowed lPoh Nnuiiy
Revenue bonds the further sum O t,uJ2C tne bOhln
~ ~ 80. l' i r,' sI , H.y.,rc b,',,, M Der rrnf
interest further amounting To 81 100 See page ~
- - i ". t i ti. m t,c bI,E tne weekly balance
irt,is = ultil tho end Of the mOuth u Amounted Ia
~ in Fund .uc, altre n that fi.d cont ;lnuc,l 10
nrrru.- uut II atc ai the rd of sac next mouth
g. ~, H. further sun, uf sI27s 80 was borroNcd
Cy aud Couty Account at ahd per cent lSee page u
Cy aud page County R-portl. As tAls loI OF s2l-
balance OF 'he bank n possible that tie bank lcnt tho
ttfy aud County portion of ifIf own lhohS "h'" INV
Clafn-rlnn lei c la tne H. receiving ior 20 doiug 4
per cent Ia October f1r tas ycars the city has
realized average ot oyrr S,oVlMo oi IhrS,
financial System would have prompted that those lfgo
tuu- % Interest should have been borrowed "hy
until October or November. especially when money was
90 b. had all Et four or nye per ecu different
conr~e however, was pursued Tue city hot "ly p.uu
.x or srvrn per cent a Summer because the buns ran
iuO the winter muuts but Ia October ana NON'inucr'
lsS although there actually paid into the Iteaaiiy
from taxes alone i9E,yei D. fsO gc Ill CITY ltpJiu,
yet uf tie Sisg 100 AZ ruNtnue bonds i-sur Ia tho r ,
part of ls Oaly sll5O0 were pad Or payable IN Ociober
aud sqoJ5,0O la November tnr remaining so0 bcihg
rcatturrd the following month aHd Hrarit A.WhOO
extending INTO 1857 cr pIgrgT CITY, and page - County
Rrpsrts la the summer months, when money MAS
cheap the balance allowed Ia dWiuGlr, sicc tLc
bank could hardly afford to pay the Chamberlain Tour p
cent upDn same. but u October, when mon was III
demand and when the taxes came i, Instead oi Apply
lug the city pay of the bonds Issued, the lonis
were allowed remain upOu Interest, while the funds
allowed tO accumulate ~ bank untl. n NoNrh,f T.
they Amounted % 1cJsy1s 10 tsco , Cty lepuO.
upon which the CITY ald County were paying al tie rate
of sSOO.OO "a year, aId the Chamberlain was rtfelllag
from nu bank at the ue oi S0 Jsy year. or ncay sO
per day As an inducemont Tor parties to ay their taxes
tuay allowed discount oi sJ1 lCJ sc upon the sjo3. q
paid during October (sec page ~, County ErpUrD.
thc-e milins of revenue bOuds permitted 10 fr-
main outstanding for months, drawing interest NJ per
cent while the average balance vi $4,000 raised ht tue
extra expense IN October was permitted u be Idle In
bank fruu October 20 10 December 2,co page lij Cty
Reporl)-aud this balance, humebudy, other than the
"a, y realizing at the rate OF 81 900 day Prom PAGE
~ CITY aud lis County Reports. IL appears That whe
the balance ws lying l. Ia Baua the City and
County Uf NewYUrk actually paid subsequent October
% 1876 for interest the revenue bonds EO less than
Sl5JS.s From your fnanrla experience yOu must sec
how mnnstrous Ia that system by whch the C.ty and
County lose annually between SO0OO0 and SiOJO0J II II
bo necessary that ANY legislation should be secured to en-
nble you 10 the public money 70 pay the pubic OAl
without having constant recourse Ia the system
OF iS-ung Revenue bonds rcdermabe at late day, the
Association that you VIII heartily cooperate with
It To secure such legislation reina very Respectfully,
PETER COoPEk
Chairman OF Citizens Association of New York.