, 1873-12-20
CUSTODY OF THE CITY FUNDS.

| moi, Council aomo suggestions as to tho future
management of city finances which aro worry i,n-
portant. Aftor referring to tho Gago dofalca-
tion md tho financial condition of tho city, he
reminds tho Council that 1t Inns become tho pfac-
| tico to expond tho moneys appropriated long
| before tho tax leViod for TINT purpoao has been
collected. Thus tho appropriations for tho 1ls-
cal ycar ending March 81, 1874, wore ovor
| 3o,000.000, md n large part Of tho money hna
boon expended, and will all DO expended boforo
Juno next, when tho great bulk Of tho Tux for
1878 will lo collected. Ho also calls attontion to
tho practice Of drawing warrants upon tho
Troasuror payable out Of particular funds which
lad no money to their credit, and paying thom
out Of other money in tho Treasury belonging
to other funds. This Is prohibited by law. The
result is, TINT, whilo there is now On tho boohB
92,GG2.000 to the crodlt Of special funds thoro
Ia less than one-stird Of that sum in tho
Treasury. Ho insists that this practice must be
abandoned. Ho declares TINT ho cannot con-
siatontly with luis official obligations, continue
any sucli practice. To moot tho difficulty, il not
to nvort the municipal diahonor OF not paying
Its obligations while tloro is public money
in tho Treasury to the croli. Of apocinl funla,
ho suggests that the city HhR1l exercise tho a,,-
thority vested in It by tho Charter, of authoriz-
ing tho deposit OF city moneys. without regard
10 the fund to which they belong, with such
banks as will make tho required payments aud
givc proper security. To carry out this pro-
posed change, ho has submitted to tho Council
certain resolutions to bo adopted. Those pro-
vido tint, within twenty days preceding tho dato
Of any payment Of interest, tho Treasurer, upon
tic osdcr Of the Comptroller and Mayor, shall
purchase and deliver to tho Comptroller sight
exchange OIL Nov York for tho sum required
Within like poriod preceding tho dato of
making monthly payments to tho employees Of
the city, tho Treasurer shnll, upon tho ordor
of tho Mayor and Comptroller, deliver
to tho bank or banks named theroin such
amount Of the city's moneys as shall bo
designated in tho order. to bo Immediately do
posted in such bank or banks as, with the ap-
prosal OF the Mayor, slall undertake to furnish |
tho city the money to meot such payment. All
posted to tho credit Of Chicago, and shall be |
drawn upon tho ordor Of the Treasurer, counter
sUaed by tho Mayor and Comptroller.
These resolutions make important changes in
tho administration Of tho businoas Of the city.
They rovolutionizo the business Of tho Office Of |
the City Treasurer, and practically transfers to
THE Mayor md Comptroller the custody of tho
public money, without relieving the Treasurer
Of his responsibility. It Ia notorious TINT no
person can afford to assume the responsible
" Of the Rafe-keoping and disbursement |
of tho moneys Of tho City OF Chicago
for tho salasy Of s2,50o year,-or about ono.
half what the Treasurer has to pay for clerk
hro. However desirable it may DO to break up
Iho whole interest business, there should be
some proper and adequate compensation paid to
Eho City Treasurer, or modification OF his TO-
aponBibility. Tho deposit Of moneys in tho
,anks by tho favor OF city officers las been, in
Ill cities that practice it, fruitful sourco Of
and ioss. Would It not bo bottor to
,ivo tho Treasurer liberal and fixed salary aud
'nforco the strict sub-troasmy system in tho
custody and disbursement OF tho public money