New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-09-09
MUNICIPAL POLICY.


CONSOLIDATION OF CITY SECURITIES.
gxNTRoIIER GREEN FAvoRs THE SUBSTITUTION OF
A STANDARD FIVE FER CENT GOLD BOND PAYA-
mR IN FORTY YEARs FOR THE INNUMKRABIR
CLASSES OF BONDS AND STOCKS NOW oUTsTAND-
HG-ovER HUNDRED MILLIONS or THESE
SECURITIES.
Controller Green has addressed an elaborate
letter 10 Mayor Havemeyor the subject of consoli
eating the stocks and bonds Of the caty ana
county into single class. There are row moro
thAn seventyhve different classes OF stocks ana
eonde maturing every year from 1878 to 1917 ana Dear
eng various rates Of interest from 20 per cent. Some
registered and some coupon bonds part payable lh
geld and u part payable IN currency. They amounted
July 20 tiO6 65ii77 eXcuave OF bonds msueu III an
ucipaon OF and assessments Oh these the SihAps
Fund holds 81 27Oei2 which are chehy long DonuS
The greater par, Of the outstanding bonds Of the city are
registered bonds and the work OF making the constant
transfers as they sold by one individual 10 ano'ner
very considerable Each class of bonds and stock mas
Nh own pecnar form OF certificate, and the chance Oi
srrorsls multiplied with the increase OF varieties Inc
tu,pc9iments in the way OF accomplishing conSohaa-
ton of these securities the Controller thus sums up
There Is a large amount OF the debt held IN trns,'
"a hx executors and administrators who may not have
Ihe power 20 convert the securities hea ny Ihch m
,Sely cpti"pa ON The par Of tho holders of existing
s"nds q The provisions OF the sinking tund Tor inc
ss ,n5 Which "pply in different degrees
certain no neS proceeding the original
holders a. now secured The bonds iail que az un'
ami t,eriods Thcy bear different rates or interest O.
rere are erent provisions OF law for the security Oh
the various classes OF bonds g. There Is now eAsns
aud registered due IN 1901 Stocks payable from the
rxsting sinking Fund can only be pad as they mature
suit Of the revenues OF tins fund.
The Controller thinks that IL possible to fix upon
standard bond payable years at per cent interest
payabe semi-annually principal and interest payable
On gold while the general features of these bonds Shod
be- the same they might be made TO mature at dnereht
dates IL found indispensable 20 meet the existing
conditions OF stocks aud bonds now Outstanding
A table OF equalizations of values, taking time OF
payment Of principal, gold and currency, and
rate Of interest consideration should be publicly
Yr.aoned uy the rule OF which any holder OF existing
.4oeg could exchange his bonds for the consolidated
bends Adequate provisions Of Law must be secured 30
~ 10 render the bond perfectly clear and unmstakabe
as 10 the suceney OF legal authorization ana 80 that
ANY stocks or bonds after TO be- issued for any pu
pose except short bonds PAYABLE out Of taxes or assess
mems shah be issued Of the consolidated class Tho
Controller adds:
lam inclined 10 think that tho existing provisions OF
law with modification are sufficient To authorize
this consolidation, with the exception That they seem 10
require recognition Of the distinction between city ana
county bonds, and that each shall be known by name
specified by law. The whole legislation would nave 10
he rec preserve involate the rights and secu
y existing holders unless they voluntarily elect 70
very soldly held by conservative classes They are
IN no sense speculative. and holders viii not convert
INTO new security without lnducement being Of
fered aud in many cases they cannot convert me
United states Government has the right within certain
periods pay on classes OF It's securities, and may thus
compel holders either 10 receive thef money OF 70
accept other securities This Is not so with the CITY or
New-York Holders cannot be compelled 10 take the
prncpal TN the security is due by the terms OF the
6ond 1 have had limitations from very responsible
sources that the bonds of the city at five per cent
tlaed az par but this cannot done Il the Legislature
L. col authorizing
interest and under Requirements "a 10 thcI ISSUE tDa
wond make them competitors with consolidated hond
nj "A low rate Of interest. The method Of now raising
money bonds as now required by the laws Tor
fbe city b very expensive ana unsatisfactory but
bou,f whether legislation on this subject be hcld
steadily and systematic enough 60 effect much improve
rnent without entire reconstruction OF ON sinking
flud and financial that the provisions OF Ia"
on ths subject shall form part Of the contract OF issue
and thus be unassailabe The perpetual changing by
The Legislature of the details Of financial AFFAIR."
As well those Of all departments OF the clY render
Il very difficult TO establish aud MAINTAIN
ANYTHING that can be- called system. Tho
interest accOunt of the city aud county would 10
greatly reduced II a consolidation were tncCted as
have doubt the city securities could with proper
legislative system be placed much iower rates II is
"a nc horne IA mind that am not discussing the wisdom
OF present fiscal system out am dealing win thngs
M md them. one hundred millions of city securities
arr outstanding III We had 70 Deeh over hv . wiz
oar present knowledge we should, as municipal cor
poaton avoid system that requires us 10 borro" 40 an
ucpdtOn OF taxes Iomccl c"ttebl 10 ~
anticipation Of collection OF assessments TO meet the cost
classes % bonds 10 meet the outlay for the eXtrdord
nary improvements required by growing population.
Tie lcal UNITY OF diuulub w INV aul'Nt u ~
suate erroneous relative to the general sub
,ect Of bonds 10 CudeavOr To reduce rapidly
s IL possible the burden OF interest on existing loans
and 10 MAINTAIN and the credit of the city that
future securities be al lesser rates OF interest and
OH The most ia VOT3ble tcrius.
ACCOMMODATING the Controllers letter rs a statement
which will be found below, showing the amount Of
stocks and bonds which will mature from year
There is also an elaborate statement showing all the
classes Of stocks and bonds with Of
and the Of maturity In this table IS titles of
cunues mentioned, maturing from 1873 10 1912 In
the condensed form In which the table is presented
below the general purposes for which these securities
have been issued revealed
CITY AND COUNTY STOCK.