New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1872-12-31
THE CITY'S MONEY.
THE CHAMBERLAIN AND THE DEPOSITS.

FOR THE TAXPAYERS OF THE CITY AND COUNTY
OF NEw-YORk - CARD FROM THE CITY
CHAMBERLAIN.
TO the Edttor Of Ths Trtbune
SIR In your paper of last Saturday ia an
article under the head OF The Comptroller and the
Deposits" which, 1t seems to mo, demands my
bands II you thoroughly understood the law and tho
practice Of our City Government 70 s finances you
would not be " ready z complain 81 the Chamberlain
for the omission interest the public moneys
1t the Common Council that had the right 10 author
ize expenditures 1t the duty Of the Comptroller
audit amounts aud draw warrants the fund.
and the province OF the Chamberlain TO be the custodian
of the and them out the warrants OF the
Comptroller, countersigned by the Mayor.
Until within few years banks, through their pres
dents and Cashiers were Chsmberlains, and only 5000
year allowed compensation for all the labor and
responsibility Of the POSITION IL being understood on all
hands that the OF tho money by the bank made
adequate compensation At that time there was no
state collected, and the amount deposit in tho
bank was not very large. But when State tax
imposed and the city deposits largely increased, and
while Mr.. Sweeney Chamberlain, law was pro-
posed in the Legislature that he should deposit tho pub
lie moneys such banks would allow the largest In
terest them IL was, however, recoected at Albany
that such an experiment had once been tried with
the funds of the State, and had resulted disastrousy
IL had been found that the weakest banks offered
the largest rate Of interest, and by their foiure
the State had lost several hundred thousand dollars so
the proposed law was not adopted. II was palpabo.
however, that something should be done to produce
some compensation from the by banks OF such large
sums OF money as were then In the Chamberlain's
hands. SO that officer ayailed himself OF law which
allowed him to designate not less than three banks In
which all tue moneys OF the City and County should DO
deposited, and from time to time change them
That law provided for compensation by the banks for
the moneys thus deposited with them by enaoting that
these selected banks should pay proporonatey TO tho
,fnfe1 DhaVa Tlatn
salaries TO be fixed by him OF his clerks and Deputy
Chamberlain thus providing compensation for
the depositor an exemption Of the City and County
all expense for receiving keeping, ana paying out
some to slOOOOOOO year. Mr. sweeny' how
ever went further for he made It condition IN select
ing his depostaries that they should pay interest on tho
monthly balances Out Of that interest he paid the
expenses OF his office and paid the balance into the
Treasury Those balances thus turned over by him ana
his successor amounted TO $4,000 That was the system
which found in operation when took the ONCE ana
continued It and intended to carry II out was ap'
pointed jan G. 1872, and when came into office found
that the following letter had been sent by tho CONF
10 all the depostaries
CITY OF NEW YORK, DEPARTMENT OF FINAScE'
CoMPTRoLLER's OFFICE Dec, l6 1872 j.
To he Broadcqy National Bank designated Depository
ofhe moneys ofhe Ciy and County or Seg t9In FOf
several years the moneys or the CITY anu COuny Vi
New-York raised by taxation and from other sources
have deposited with you IN accordince WIN Ine
designation made required by law and for the use OF
moneys thus deposited you have agreed 10 pay the an
nua interest four per upon the said balances 10
the credit of the City or County. ~ mas oSen ba
practice understand TO keep separate accounts OF tue
moneys deposited and OF the moneys accr1lng a. %
drawn from you by warrant signed ny the COmprOuer,
Of county moneys Of the Clerk Of the Board
pervlsors, while the accrued interest you nave ao"eo
to be drawn by the check OF the Chamoerlan alone.
AS the moneys deposited with you belong to the city
and county and not to the Chamberlain OF course te IN
% 3 20 n aaf The accrued interest
In tha nf
be legally drawn from you by warrant signed pY tno
Comptroller countersigned by the Mayor and IN the case
of county moneys by the additional signature OF the
Clerk Of the Board OF Supervisors. Inc ChamOeTlalh
has no authority 10 draw such interest money TO
qure you pay the to him by check or otherwise
In these circumstances have now to request that AZ
the end of each month you will please add to the credit
of the accounts Of the city and county your books
the amount Of interest which accrues upon the daily
balances the credit OF each account and that you IN
form Of such credits that S1tTss
by you the funds deposited the city and county,
or the accrued interest thereon will be sanctioned
this Department unless such payments made by war
rant signed by the Comptroller and Mayor, and where
necessary, by the Clerk OF the Board of Supervisors
AND II. GREEN, Comptroller.
Shortly after my appointment requested the Comp
to withdraw that letter. and proposed to him that
would get the checks for the interest from the depos
tories payable the order Of the Comptroller thathe
might credit the to such accounts as in his judg
ment might seem proper. This he refused. giving no
reason therefor.
On the sth Of February, 1872, the Broadway Bank
ceved the following letter from the Comptroller showing
his determination persist in his OF ths 10th OF
December:
CITY OF MISUNDERSTANDING OF FINANCE
CONTROLLERS OFFICE, Feb. 3. 1874
To The Broadtcay National Bank; In my communica-
ton TO of the 10th December, 1871 called your
attention the subject OF the interest deposits OF
the City and County Of New-York in the following
words viz;
add to she credit Of The accounts Of the city and county On Jour book,
credit of each account and that
credits that corresponding entries be made in the books VI ths
As no statements OF interest for the months OF Deem
January last have been received by this Depart
ment, would request that the DO furnished
fully yours AND. Il. GREEN. Comptroller.
Afterward called those depoStaries for the
interest the sums in their hands, and received tho
following replies TO my demand
THE NATIONAL PARK BANK OF NEw-YoRK.
80 w;YoRKt June s. 1872.
your of this date asking for check for $3.50 7S
beng the amount Of interest accrued 70 date on the
with this bank In answer beg to say under date Of
Feb 1874 the Comptroller. Mr. Andrew II. Green. gave
and to which. our governing authority, now call
your attention.;
The Interest thereon. will De sanctioned bJ this depart
unless such made By warrant signed the Comptroller
,isOrs.' Yours respectfully. J. L. WORM, Cashier
UNION Taur COaPAsr SEw.YoRK 70 BRoADwAr, COR org
IA PALMER co., ca1@srlain ss Dss1 s1' Referring 70
copy a ,eS S% I Moo sn Uf3 oa S 70 & ne
interest accrued the deposit Of the County Sew YORK has 6ses
letter With much respect truly j. H. fROTHrSaaAn President
In the meantime, after the Broadway Bank had re-
ceived the Comptroers letter ofhe 10th OF December
and before appointed Chamberlain had referred
the matter Judge Edmonds. my counsel and had re-
ceiyed from him the following reply
NEw-YoRK, Dec. 2sth 1871, al Broadway.
Under chapter OF the laws OF 1866, the Broadway
Bank was selected as one OF the depOstaries OF tho
moneys Of the Mayer, Aldermen and Commonalty OF the