The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-02-02

subject thoroughly investigated. The result,
We think, would show that the sewing machine
people have made - much money from their
inventions a. they are entitled to receive.
The present city charter provides that the
Mayor and the City Chamberlain shall desig-
nate the banks or trust companies in which
all moneys Of the city and county shall be
deposited, ''but no such bank or trust COM
pany shall be designated unless its ohicers
shall agree to pay into the city treasury in
terest on the daily balances at the rate of not
less than four par cent per annum."' It
further requires that al interest accrued on
deposits shall Be paid 70 the Commissioners Of
the Sinking Fund. Prior to the passage Of
the charter of 1873 no law existed by which
the Chamberlain could be required to demand
or collect any interest on the deposits. For .
little over three years, however. the Chamber
lain had required the banks to pay four per
cent on the daily balances, and under
Chamberlain Bradley and his predecessor
nearly half . million dollars had been thus
collected and paid over 10 the general fund
During Chamberlain Palmers term of
oface the city lost the interest except on Q
trihing amount Of deposits, in consequence Of
the action of the Comptroller, who notified
the banks Of deposit not to pay interest to the
Chamberlain, and there was no law requiring
them to pay 1t to any other person or in any
other manner. The charter Of 1873 settled
the difficulty by the provisions to which We
have referred.
A bill is now before the State Senate-it
has already passed the Assembly -abolishing
that provision Of the charter which fixes the
minimum interest to be exacted of the banks
Of deposit and giving to the Mayor and
Chamberlain authority to agree with the
banks upon such rate as they may deem ex-
pedient We regard the bill as very dam
gerous one, and believe that for the public
good it ought to be defeated. 1t would give
to corrupt mayor and chamberlain the
power to use the deposits for their own adj
vantage, and to put any proportion Of the in
terest they might please to appropriate into
their own pockets OF course Mayor Wickhsm
and Chamberlain Lane would not do this;
but laws should be framed for the protection
Of the citizens without regard to the honesty
of the persons who happen to be for the mo-
ment in possession of the public Offices The
argument used by those who favor the pro-
posed alteration of the law is that the banks
cannot just now afford to pay four per cent
on the public deposits, and that circumstances
may arise which will render it yet more I'M
profitable for them to hold the city moneys
on such terms. But If the present deposit
banks are not willing to pay four per cent in
terest to the city there are plenty Of other
banks and trust companies in the city that
stand ready to do 80. Institutions quite a.
trustworthy and secure az any of the present
city deposit banks pay four per cent interest
to private depositors, and are prepared to pay
the same on public moneys There is no
good reason, therefore, why such an objec-
tionable alteration of the charter should be
asked for, and We regard the bill before the
Senate as one that ought to be rejected.
At the same time some amendments might
be judiciously made to tho thiry-Afth sec
ton Of the charter, relating to the public de-
posts. The Chamberlain gives bonds to the
amount Of one million dollars, which security
ID intended and ought to cover tho safe keep
ing Of the city moneys. The Mayor gives no
bonds at all By uniting the Mayor with the
Chamberlain In the designation of the banks
of deposit, thus taking the sole responsibility
away from the latter officer. We release the
Chamberlain's sureties in case the public
money should be deposited in an insecure
bank OF trust company, and should in conse-
quence be lost The bondsmen for the acts
of the Chamberlain could not be held to>an-
swer for acts committed by the Mayor and
Chamberlain jointly. It would, therefore,
seem eminently proper to place the power of
selecting the banks of deposit in the Cham
berlain alone, thus securing the city from loss
through his sureties, or to require special
bonds from the Mayor to answer for the safe
keeping of the deposits. It would also seem
to be desirable and just that the interest paid
on deposits should 60 into the general fund,
and thus directly decrease the taxation of the
year, instead of into the sinking fund, which
already possesses surplus over and above
the whole city debt for which it is pledged
These amendments to the law regulating the
city deposits and the interest thereon would
be Of public advantage. The proposal to
leave the rate of interest to be matter Of
public bargain between the banks and the
agents of the city is at once unnecessary and
dangerous.
! New Yorlk's Duty.
The eminently practical action which the
Philadelphia managers of the Centennial are
| now taking deserves fnir md favorable con.