The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-01-14
The Management OF the city FL
nances.

The Management OF the city FL
Mr.. William E. Warren, who has had many
years experience as Deputy City Comptroller
under Mr.. Halves and MIR. Brennan, calls at
tention to the fact that we have now in the
Sinking Fund surplus over and above the
amount OF Indebtedness chargeable to that
fund. He asks why not pay off at once and
cancel that portion of the debt or SO much of
it as the holders may be willing to surrender,
and apply the residue of the amount in pur-
chasing and withdrawing any other city
stocks or bonds? And he suggests that if any
legislation is required in this matter the
Common Council should ask for it.
The authority to use the money accumu-
lated in tho Sinking Fund in such a manner
as will most effectually benefit the city and
relieve the taxpayers is fully given by
law. Section 102 of the charter of
1873 provides as follows :->It shall be
lawful for the Commissioners 81 the
Sinking Fund of the city of New York in
their discretion, and they are hereby en-
powered in such discretion, to cancel any
portion of the Indebtedness of the said city
held by them which is by law redeemable
from the Sinking Fund, and to sell any stocks
and bonds which they may hold that are not
payable from said fund, and with the pro-
ceeds of such sale of stocks and bonds to buy
any other stocks and bonds which are payable
from said stocks" The wisdom of Mr.. War
ren's suggestion will be conceded. The
amount of city debt redeemable from the Sink
ing Fund is a trife under twenty-thr million
dollars. The total sum in the Sinking Fund
on December 81 last is said to have been be-
tween twenty-six and twenty-seven million
dollars, thus showing that there has &C
cumulated in the Sinking Fund more
than three millions and O half Of
money over and above the whole
amount of debt redeemable from that fund.
We are asked every year to raise large sum
by taxation for interest on the city's stocks and
bonds held by the Sinking Fund. We believe
the Comptroller has never condescended to
explain how much the gross amount of inter-
est required is and what SUM- is set off by the
receipts of the Sinking Fund for the payment
Of interest on the city debt. This whole
interest question is among the mysteries Of
the Finance Department demanding investi-
cation. But why should we pay any interest
at all on twenty three million dollars of debt
when we have the means of paying the debt
at once and of stopping the interest? The
Sinking Fund holds probably two-thirds Of
the bonds and stock redeemable by
itself Why should they not be wiped
out and taken from the city debit Why
should not the surplus then left be used to
purchase such bonds Of the same character as
their holders might be willing to SELL in order
that they also might be cancelled? Why
should not the three millions anda half excess
over and above the whole debt payable from
the Sinking Fund be in like manner used to
buy up and cancel other interest bearing
bonds?
| The answer to all these questions is, be-
cause we have q narrow-minded, incompetent
person at the head the Finance Department
who occupies his time in paltry intrigues and
in impairment and illegal interference with
the patronage of other departments of the
city government instead of studying the broad
interests of the taxpayers and Of the city.
A competent and clear-headed fnancier
would rid the city at once of its Sink
ing Fund debt, thus saving more than one
million and half dollars in interest every
year. He would then seek to turn all the
streams of income into the general fund, and
to husband aud increase the city revenues
from all sources, in order to tighten every
year the heavy burden of taxation. Such o
financial policy would lift mountain weight
from the groaning real estate interests and
would make land in New York desirable in
vestment once again. But Comptroller Green
is charlatan, who wraps himself up in his
own impudence and ignorance, and follows
his own whims and vagaries, holding himself
responsible to no authority With proper
person at the head of the city finances we
should soon find our debt decreasing and our
taxation lightened.