The New York herald., 1869-01-08

- sVS3
To he provided for. slaa, 92s
BOUNTY DEBT AND BOUNTY DEsr SINKING FUND.
The history OF this debt is familiar to the Legsla
ture and the public. Its creation recent and
approved by the people at a general election in No
vembef 1885, pursuant to section twelve OF article
seven OF the constitution. The act authorizing the
submission to the people OF the question whether q
debt should be created for the payment Of the
b0untfes authorized by the several laws enacted by
the Legislature at its session OF 1885, provided for
the levying OF tax sufficient to pay the in
years, and this provision, approved and ratified by
the people, has all the sanction and binding force OF
constitutional enactment The debt becomes due
in April, 1877, and there is power In the Legisa-
tire IL Ii were desirable to do to extend the time
OF payment with or without the consent OF its hold
ers. The constitution declares that 'tbe tax i'm
posed by such act he act submitted to and approved
by the vote OF the elect0rs in proportion to the debt
and liability which may have been contracted, in
pursuance ofsuch law, shall remain in force and be
Trepealabe, and be annually collected until the
proceeds thereof shall have made the provision
terest and principal of such debt and liabty.n II
is possible that it would have been better had the
years the extreme limit allowed by the constitution,
and thus extended the tax over q longer period.
But the faith of the State is pledged and the constitu
ton makes the act and guarantee irreversble. The
Comptroller In 1866 estimated that tax of two and
oneeghth mills upon the dollar OF the then valuation
of the real and personal property OF the State would
suce to meet the requirements OF the act and tax
OF that amount was levied, but proved insufficient
BY the sum OF S765,l2j. which deficiency was
three mills upon the dollar for the ensuing year.
The Comptroller In his report TO the Legislature in
ing fund moneys could be invested to yield six
per cent semannualy that TO pay the interest and
redeem the debt In twelve years from April, 1856,
the time at which the act for its creation became
law, S3.e5S,9l1 should be contributed annually to
the sinking fund or over two ana half mills on the
valuation OF 1865. The increased valuation OF the
taxable property OF the State since 1866 reduces the
rate. but does not diminish the aggregate amount
OF the necessary tax. In estimating the amount
necessary to be contributed annually to the sink
lug fund TO pay the entire debt and interest
within twelve years, allowance was not made
for the loss OF interest upon the portion OF
the tax PAYABLE by the city and county OF
New York for nearly nine months. That tax Is
practically not PAY able before December. and con-
stitutes over one-third, and nearly One-haf OF the
State tax. Neither was any allowance made for the
residents which Is estimated at about two per cent.
The amount therefore to be contributed to the Bounty
Debt Sinking Fund must he somewhat in excess Of
the estimate OF 1867. The tax OF three mills raised
larger amount than was necessary 10 make up the
deficiency OF the preceding year, and make the re-
CURED contribution for the year, and the tax on two
aud onesixth mills levied In 1868 was less than
would have been necessary but for the In the
levy OF 1851 The amount raised for the years 1866,
1867 and 1865 IL $46,053 IN excess OF the amount
tmated for those years tax OF two and nequarter
mills upon the valuation OF 1868 will raise S3S73 700
provisions OF the act. The following tables win show
the amount OF the debt at the commencement and
payments from the Sinking Fund during the year,
BOUNTY DEBT.
On the 3oth September 1S6s the outstanding stocks
and bonds representing this Indebtedness amounted
TO SIS, ,943 900. classified as fo0ws:-
ke9isterea STOCK. .oI 600
toupDu Z,iSo-bU
Comptroller's revenue bond unconverted. 1,090
on the soth september. 1857 the den. was SO
On the 3oth september, 1868, the debt 259s3000
Reduction during the past fiscal year. $4,000
BOUNTY DEBT SINKING FUND
The following table gives the receipts and paw
ments on account OF this und for the fiscal year
ending 3oth september, 1885,
Receired.
Balance on hand, October I. 1867 ...... s47a, 500
Proceeds OF mill tax levied In 1867 In
pursuance OF chapter 325, laws OF 1865. A. so2 456
Interest on investments. 1886
Total. IS, ,36s Gl0
Payments.
Interest on debt. ............. xl,Sr1. 900
Purchase OF stocks for invest
ment. ....-.....................1 1.o54,3s0
Accrued interest stocks pur
chased other than bounty loan
stOck ACKNOWLEDGEMENTS. 936
Premium, &c, on stocks pur-
chased. d....................... sa5sl
1906 100