The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-01-15
THE CITY BALANCES AND THE INTEREST ON THE CITY
BONDS.

The following letter has been addressed BY Comps
troer Connolly to the chairman of Citizens Assoc.
ation in reply 70 communication published IN tho
HERALD few days slnce:- Il
CITY or New York. DEPARTMENT OF FIsAHcx \
CONTROLLERS OFFICE, Jan. 3, 1868. ! :,
PETER COOPER Esq, Chairman OF the Citizens Associa
ton OF New YORK;
DEAR SIR beg TO acknowledge yours Of the 30sh Of
December last, calling attention 10 the large amount
the weekly balances which were kept IN The treasury
o. C nav nes 'eS 10 mi STOP 70
detrimental to the public interests and must plead
my inability through sickness - my excuse Tor NOS
In reply thereto have the honor to state that the
tual necessities for carving on the city goyernment
site to have reserved FUND upon which 70 rely CASE
dnculty should In negotiation OF the rsvsnu
UsV%eOt While Tie BALANCE with the
been kept the average which has been deemed SAFE
judging from the experience Of past years. hoth - 70
the negotiation OF loans as well as TO the payments.
which Will fall duo. I
should be reduced low that upon stringency
the money market the could not meet ~ regus
lar w much Grsssr injury would % ,ncso
owing any loss caused through our payment OF In
tsrsst 7
present Chamberlain having determined 70 deposit
in the treasury the Of interest allowed BY the
hank after deductng the expenses OF his bureau tho
loss to the city from this source IN the future cannot DO
material.
It is impossible to determine accurately dates on
which the bonds shall mature, inasmuch as the
time when the becomes payable has varied during
the pas. ten years from Sept 20 October "a and
" money worth tho rate OF discount allowed
by law taxpayers will be apt 10 delay the ment Of
their taxes until within lew days before Tho lst OF De-
cember, the date upon which interest first becomeq
chargeable thereon Even in the 1867 number Oh
the banks OF this city did not avail themselves Of the
privilege OF the deduction oil the discount and allowed
the upon their shares TO remain outstanding until
the period within which the could be paid without
interest was just expiring.
As the balance in the treasury began 10 ms
crease 1867 through the payment OF the tax, ADJ
dressed 20 each holder OF tho revenue
bonds of the city, with ofer OF Immediate payment
and retired whatever bonds presented In answer
to such sfor. The aggregate received, however, was
not large the holders generally preferng to wait untS
maturity.
Purchases have been made during the year OF whats
stock OF the CITY could be bought, under the pro
of the sinking fund ordinance whenever avor-
able opportunity offered or The price demanded was
considered advantageous Tue net total Of such pur-
chases In 1867 So 500 600.
Thanking you Tor your offer TO cooperate in sccur-
ing whatever legislation may be necessary. avail my.
self OF this opportunity to state that shall endeavor
during my OF Office to keep the weekly balances ~
the lowest possible point which snail appear safe, and
my utmost exerons " prevent any accumulation
Of interest not absolutely essential Respectfully yours
RICHARD d. CONNOLLY, Comptroller