New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1872-05-29
WORK OF THE LEGISLATURE.
WRETCHED CONDITION OF THE STATE
FINANCES.

MR. ALvoRD's DEFICIENCY BILL-sHAM SINKING
NEUTRALITY-SUSPICIOUS. FOR THE COMING
YEAR-THE CANAL DEBT TO BE PAID IN
CURRENCY.
iFRoM THB REGULAR CORRESPONDENT OF TfIE TRIBUNkl
ALBANY, May 25.-The most important law
passed by the late Legislature bearing on the finances
Of the State is undoubtedly Mr.. Mvord's deficiency PM
This bin provides for raising S66OOOO OF when S1ooOVV
Is for deficiencies in the Canal Fund, and SAoSO'OO
Tor deficiencies in the General Fund IN aocoru"noe
with the provisions OF Constitution OF inc STATE 1S
pum cannot be raised by the issue OF DohuS ueSs o
people shall so decide by their votes at general eleo-
lion The bill accordingly provides LOT SUBMITTING "
The people at the November election the question
whether the S6CC0OOO shall be raised by the
Issue of bonds or by direct tax. To raise
fhis sum by taxation would require the heaviest
lax for the purposes Of the State Government ever I'M
posed so there scarcely doubt that the decision VIII
be in favor Of an issue of bonds The bonds authorized
by the act are six per cents payable in currency, ana
redeemabe S22OOOOO in four years, s2OOOOo IN eight
wears 100000 in IL years May 49, 1872 the date OF
The passage OF the act simple calculation VIII sho"
that provide for the payment OF principal ana III
ierest Of these bonds, required by the law uDuer
which they viii be issued the Legislatures OF 1875 lo'
md 1875 viii have 10 each year in their appropa
ton bills an item OF sl1OoOOO for which an extra TAX Oh
onebalf mill viii have TO be imposed. For the eight
wears following, SO0OOO per annum VIII be suInceht'
For this additional burden upon the state, the Whoie
responsbnity belongs to the Legislatures Of 1870 and
ISL both OF failed to levy taxes sufficient 10
cover their appropriations.
THE GENERAL FUND.
IAaving ont the Expenditures OF money for educatona
purposes and for the maintenance Of the canals the
reminding incomes outgoes Of the State are cased
under the head Of payments to and from the Genera
Fund From the organization OF the State Government
m 10 the year 1884 the General Fund had substantial
existence 1t consisted Of United States securities bank
stocks bonds and mortgages, and other sources OF IN
come from which the State derived permanent reve-
me Independent Of taxation which was wellngh suf
Gent to pay all the ordinary expenses OF Government
Taxes were levied, when levied at all, only to
maintain this fund. and for years the rate
averaged less than one mill per dollar OF
fhe assessed value of property But the General Fund
was gradually but steadily encroached upon. Part oil
i revenues were diverted the canals and portions OF
fs principal were loaned in aid of railroads and other
internal improvements the capital Of this fund
amounted TO about S350O0O0 In 1910 TO Sl9l,sOj In
ISIS s37s In 1926 fell to S2Ss94s9 and in 1884 il
finally disappeared In 1854 there was General Func
debt OF OOO and last Controllers annual re
port Sept 30, 1871, there General Fund debt OF
s4OOOOO0 and General Fund deficiency Of over $780,
COO The name General Fund remains but the substance
n demnition body" There now no source Of reve
nue. worth mentioning only the pockets Of the people
gTbe canals continue cost the State much more than
they bring in as will be shown further on. The follow
ing figures taken from the Controllers official reports
will exhibit the rapid growth Of the General Fund dc
Gcency:
At the end OF the fiscal year. 1860 there was balance
she Treasury TO the credit Of the General Fund rev