The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-09-03
The Management OF Our City Finances

The Management OF Our City Finances.
1t is always an Improbable labor to ex-
anime the financial reports made by Comp
troller Green, for the reason that they are not
only unreliable but are concocted for the
purpose of deception. The object Of the
Comptroller is to misrepresent our true fnan-
cial condition, and every statement that has
been made 10y the Commissioners of Ac-
counts proves that fact. The charter requires
that the Comptroller shall lay before the
people, two months before the election of
charter officers, detailed history of the re-
ceipts and expenditures of the Corporation
during the year preceding the first day Of the
month in which such statement is made, and,
in accordance with this provision of law, Mr..
Green last week published long array of
figures in the City Record. No person ever
sees the City Record; but this is of less conse-
quence since they could gain no correct idea
of our financial operations from the Comp
troller's muddled report. One fact, however,
appears to which it is proper that the atten-
ton of the taxpayers should be directed. .
In the twelve months from August l, 1873,
to August l, 1874, we borrowed money on city
and county bonds and stock to the total
amount of SAT, 1874, 4O8; of which SAL ,S39, 1913
was on city and SIS, 345, $50 on county account.
Of this large sum, s3l, O32,511 was borrowed
az the high rate of seven per cent interest;
S15, 551, 897 was borrowed at six per cent in
terest, and only 5000. 900 at five per cent. Yet
the whole amount of premiums received on
the sale of these bonds and stocks was
1921, Gal, or less than one-half of one per cent
on the total amount of stocks and bonds sold
Every business man in the city knows that
with unquestionable security he can borrow
money readily at the rate OF five per cent per
annum. The recklessness and gross inca
pacity of our present financial management
can be understood from the fact that while we
pay seven per cent on nearly three-fourths of
the bonds and stocks OF the city, secured upon
the real estate of all the property owners in
the metropolis as well as by the public faith,
we receive on their sale less than one-half of
one per ntpremium. This is a more striking
proof Of financial stupidity than is the fact
that the public debt is increasing at such an
enormous rate while our works of public i'm
provement are almost at standstll, and the
progress and prosperity of the city are dis
astrously checked
The present city government succeeded to
power under the most favorable auspices for
the Inauguration of wise and economical
financial policy. The profigacy of the old
municipal administration had momentarily
embarrassed the treasury, it is true but every
body remembers the promptness with which
moneyed institutions and citizens of wealth
stepped forward to the relief of the Comptrol-
Ter. At that time inancier OF ability would
have seized the opportunity to place the city
on a sound and solid financial basis.
Mr.. Green frittered away these advan-
tages and proved himself charlatan
in finance. He has ever since been managing
his department in his own interest or for the
qualification Of his personal likes and dis
likes. The people are kept in ignorance of
their true financial condition, and only know
that their debt is increasing and their taxes
growing heavier and heavier every year.
Mayor Havemeyer has stated TO more than one
citizen that if the true condition of our finances
and the true amount of our debt were
known it would be impossible to sell city
bonds at fifty cents on the dollar. We do not
know whether Mr.. Havemeyer is correct in
this prediction, but it is certain that the truth
cannot be much longer concealed, and then
the taxpayers will recognize the necessity of
transferring the management of the city
finances to competent hands.