The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-04-28

The Credit or the city or New York
and tho Public Debt.
An evening contemporary reviews tho
present financial condition Of the city and
county of New York with the object OF show
ing that while we are burdened with debt Of
great magnitude our resources in property
available to creditors exceed our liabilities
and render the public bonds o security unsur-
passed in merit for investment No person
questions the present solvency of the city, and
public indebtedness viii be paid. 1t may not be
very satisfactory to find that, on liberal valu-
alton, the city property is estimated as worth
about $244. O0O, 900, of which $106, O00 600 is
in the parks, while our gross debt ON tho
3lst of March last was $13s, GOO, 900, with the
year. Nevertheless, every sane man knows
that if the figures were reversed and the debt
500, 600, 600 greater than the value of
the city property, every liability would
be duly met The honor of the
great commercial metropolis is security
enough for every bond that may be legally
issued on the public credit The marvel is
why we should still be paying seven per cent
interest, and that bids on our bonds should
range from par to three, or at most four per
cent. This prodigality might have been natu-
raj enough under the rule OF corrupt and reck-
less men, but after nearly three years Of 'sre-
form" administration we ought to be able to
borrow all the money we require at five per
cent. That we cannot do 80 to-day, and that
the public credit is not what it ought to be, Is
due to the fact that our financial management
tor the past two or three years has been
marred by obstinacy, stupidity and duplicity.
1t is clearly the fault Of the Mayor and
Comptroller OF the city that conflicting views
are held in regard to the magnitude OF the
present debt" and that 'there Is great want
OF information" in respect to our financial
condition generally. The trouble is tracea-
BILE to the anxiety Of Mr.. Green to make it ap-
pear that the public debt and expenditures have
decreased under his management while they
have, in truth, largely increased, and to
the amiable docihty of venerable
Mayor. who is contented to shuttle along at the
Comptrollers heels. No person can feel salts
fed that he knows the full amount Of the pub
lie debt because Mr.. Green's financial state
ments are artfully deceptive. Take one
example. Mr.. Green gives the total amount
OF money received in the treasury from De-
cember 81, 1873, to the 31st Of March, 1874, as
$40, 219, $685. From this he deducts total pay
ments, SIS, 121, $3.50, leaving balance in the
treasury at the close of business on March 81
OF $2,098, 1913, and he claims that the public
debt is reduced by that amount. In his state
ment Of payments from the. city treasury he
deducts the warrants outstanding on March 81,
amounting to 5000, 545, which, if paid, would
decrease the balance in the treasury to
ST, l91, 753. But in his debt statement, while
leaving the balance in the treasury as
So O98, 298, he includes the outstanding war
rants among the warrants actually paid. Thus,
while on the one hand he claims credit for the
whole treasury balance, on the other hand he
deducts from the debt the amount Of warrants
outstanding and not paid, and which, if paid,
would by SO much reduce the balance in the
treasury.
Taking Mr.. Green's figures, we find the
gross city and county debt on March 81 to
have been s136, 196, 1885, This is an increase
| Of SIS, OOO, 900 in three months, since Decem-
Der 81, 1873, or an average increase of
$50, OOO, 900 for the year. Since the 31st Of
March the issue Of bonds to pay the citys
share of the State tax deficiency has been
authorized, and these alone amount to nearly
81, 100000. This certainly seems to threaten
large increase of debt the present year.
When we look at the estimates on which the
enormous taxation of $50, 600, 600 is based we
find that out of ull this money only 81, 795, 202
is appropriated to the reduction of both city
and county debt At the same time,
tracing the stocks and bonds of the
city and county which fall due in
1874, 80 far as we can do 80 from the
report of the Commissioners of Accounts, we
find that the amount cannot be less than from
100000 to $20,000,O00. Thus, from
s13, OOO, 900 to $18, 100000 of the bonds and
stocks falling due this year are to be added to,
and not taken from the city debt This is in
accordance with Mr.. Green's "bridging over
policy. The outlook is not encouraging, and
while every person feels perfect confidence in
the honor OF New York CITY, these facts should
be looked squarely in the face. We cannot
help the public credit by concealing or mis-
representing our true financial condition, and
the sooner the city is rid Of the present mis-
erably incompetent and tricky ''reform"
administration the better it will be for the
people.
| Mr.. NEsMTH, OF OREGON, has achieved the
unenviable distinction of making the smallest
torney General Williams were formerly po-
litical rivals in Oregon, and Nesmith, under