New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1871-08-22
THE CITY CREDIT.

If Tweed, Hall, and Connolly manage our
finances much longer we shall come to point
where the interest of onr debt will so largely
exceed the productive value of our taxable
property that we can no longer pay 1t. The
business and the credit of the city will be
ruined together, and the Parks and other real
estate of the Corporation will have to be sold
to Day the interest on city stocks and bonds.
The science Of Ring tinancioring has been re-
fined to such degree that the Controller is
no longer limited by tax-levies or appropria-
tons, but he can add whatever he plcases to
the permanent debt, and as long as he with
holds his accounts no one need be the wiser.
OF course there are laws to prevent such ex-
travagance, but Mr.. Connolly has found out
how to disobey the laws. For example, in the
tax-levies of 1863 and 1869 will be found the
following enactment:
Neither the Board OF Supervisors of said county nor
any officer. agent member thereof or head Of depart
ment, shall incur any liability, make any contract or
contracts, permit vote for, authorize, audit or
allow directly indirectly any expenditure expendi-
lures any the objects aud purposes specified, the
aggregate of which expenditures and Of the Liabilities
under such contracts shall exceed the sum appropriated
for said purpose for any other purpose or object than
that herein specified"
Nobody pretends that the enormous sums
paid to Ingersoll, Garvey, Keyser 81 Co., were
appropriated by the Legislature. The pay
ments, so far as they were in excess of the
amounts specified in the tax-levy, were cOnse.
sequently illegal. But they were arranged in
the following manner:
Ia 1868 a section was inserted into the tax
levy authorizing the Controller to pay adj
81 d,
in anticipation of the taxes of the year, yet to
be collected.
In 1869 section was added to the
tax-levy authorizing the Controller, in
stead of paying these Revenue Bonds
with the collected taxes, to convert
them into Accumulated Debt Bonds, bearing
interest at 7per cent. and redeemable in 2Oyears.
1t was now decided that an adjusted claim
was merely bill that had been audited and
approved. Consequently, it was only neces-
sary to get the consent of the Mayor and the
Supervisors, and any charge, however exorbi-
tant, could be added to the permanent debt
which some time or other has to be paid.
Mayor Hall has, virtually admitted that these
adjusted claims" are nothing but the obhga-
tons to Ingersoll, Garvey 81 Co., incurred IN
excess OF the appropriations ana III ueh"hoe vi
the law just quoted Thus, after the annual
appropriation for finishing the New Court
House has all been stolen, Mr.. Tweed, through
IngersOll, sends in bill of 100000 for sup
plying that building with 20 miles of carpet
Mr. Tweed, through the Mayor and the Super
visors converts this bill into an adjusted
"claimn by simply indorsing it. Mr., Tweed,
through the Controller, sells Revenue Bond
to pay the adjusted claim, and then converts
the Revenue Bond into an Accumulated Debt
Bond bearing per cent. intersection 20 years.
Finally, Mr.. Tweed locks up the account DOCKS
so that the people may not discover his little
game.
The Accumulated Debt Bonds amount 10
12.jOO.OO0, and to this sum must De ADDED
sg3l2.OOO of Consolidated Thirty Years Bonds,
into which Controller Connolly announces thal
he shall convert part of the Revenue Bonus
of 1871. There may be a grave question as 10
the validity of this enormous addition TO the
debtor at least uf large proportion I" lt'
At any rate it seems 70 be OF the Inst M
pgsseYse that We Should pVt IL kclSnt. the