The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-03-19
THE FUNDED AND BONDED DEBT
Better Regulations Wanted
for the Issue Of Bonds.
THE PRACTICE OF BORROWING MONEY.
How Public improvements Should Be Car.
rid On.
MAYORS OFFICE, NEW YORK, March 10, 1875.


marked that, as to what the liabilities OF the city
really are, was not then in position to state. l
cannot do so yet. But, as stated in that Message,
have been informed by the Comptroller that that
portlon OF the Indebtedness known as the bonded
and lunded debt amounted on the 31st OF d ecem-
Der, 1874, to Sal, SO3,75s. which includes the
amount OF the sinking fund.
Since entering upon the duties Of the Mayoralty
have as a member OF the Board OF Estimate and
Apportionment ana as one OF the Commissioners
Of the Sinking Fund been required to pass upon
number OF applications for authority TO issue ad-
ditiona bonds which increase the debt OF the city.
Before any such bonds were voted the laws au.
thorizing them were examined. Those laws are
mandatory.
THE CITY DEBT.
The Common Council has no control over the
proceedings required to be taken under several Of
them. But some ofrlcer or department OF the city
government is py each OF them authorized to
prosecute public work OF some sort, and to In.
cur obligations for it In the name OF the city. For
the payment OF such obligations city bonds must
be issued, and the provisions OF the laws on the
subject are in such terms that the Board of EST.
mate and Apportionment or. as the case may be,
the Commissioners Of the Sinking Fund, can be
compelled to authorize the issue OF bonds to an
amount necessary to meet the obgatons-and
that whatever may be the opinion OF the men,
bers OF the Board commission as to the neces-
sity Tor or proprtety OF the work 1or which the
obligations were incurred.
II this system is to be continued in operation
the debt OF the city must 60 on increasing in
definitely. and 1t will probably. at the close OF
the present year, largely exceed the amount now
reached.
The burdens which the bonded and funded deots
have already imposed upon the taxpayers have,
In my Judgment, now attained magnitude which
cannot safely be increased.
ISSUE OF BONDS.
There should be better regulations as to incur
ring obligations requiring any further issue OF
bonds. Neither the Board of Estimate and APP
portiopment nor any other branch OF the city gov.
eminent should be called on to act upon the sub
ect when 1t Is helpless to apply check or remedy
for the evils fostered by the present system. The
action OF the Board should not be for the first
time invoked when an obligation has already been
Incurred and when the funds TO meet it must be
raised without discretion as to methods or
amounts; and 1t should be provided by statute
that no obligation payable from proceeds OF
bonds may be incurred by any otiicer or depart.
ment beyond the limit OF the appropriation made
by the Board tor the particular work out OF which
1t arises.
This is now the law in regard 70 all obligations
payable from the proceeds OF taxation; and as to
that class OF obligations the restraint has been
found 10 have salutary effect.
] urge the mat err upon your attention, and
statutes which apply to this city so lar amended
that except to meet obligations al eady incurred.
beyond lis present limit. Our progress in the
future should be determined by our ability to meet
our obligations in the past; and only III the ratio
In winch we actually pay for pubnc improvements
already executed or undertaken should we pro-
coed with new enterprises which require further
expenditures.
Undena well regulated system can see no rea-
son why: with wise and efficient admin stratlon
attain this OBJECT and at the same time progress
VIII public improvements as rapidly as the public
interests demand.
LOCAL IMPROVEMENTS.
With view OF Initiating some such system It
seems desirable that a limit should be fixed be.
yond when toe city authorities cannot proceed
with works OF regulatng grading, sewering or
paving Streets ROADS or avenues, the expense OF
wnicn is payable from assessments upon the prop /
suggest that this limit may be safely Fixed at, |
say SIS, coo. 000 as the maximum aggregate sum |
which the city authorities can lawfully ADVANCE |
Tor local Improvement on tue security OF assess
nentS payable by the property benefited.
These advances maze by the city on the security
oil assessments are. as it were, continually revoy-
ing. Moneys ire Taised on the bonds OF the city /
and advanced to pay Tor public WORKS as they pro- /
giess, ana for these WORKS, when completed, as
are applied toward payment OF the bonds. When,
however, as has frequently happened. tive assess |
wnicn bonds were issued, are not forthcoming TO
pay them at maturity and the city is Obliged to
redeem those oonds with the proceeds of general
taxation.
SYSTEM OF ASSESSMENTS.
Tnere Is no reason why an assessment lot aQ.
vances Tor such works snoud not be perfect
security to the city. II a limit Is liked, beyond
which no advances can be made for local improve
ments, payable from assessments, the terms OF
the law should De 50 simple and plain as TO relieve
US rom apprehension tnat In the iuture any
assessment imposed Tor the advances made by the
ciiy Will be vacated or set aside; and the assess
ment lund should be secured by law to be attn.
lnily applied toward the Obligations OF the city
undertaken on the Sc urlty OF 1t.
Proper regulations should also be enacted in
reference TO proce adlnas Tor street openings The
ate commissions Tor each opening should be aDol.
lshed. All streets laid down IN plans which have
been approved by the Legislature may be declared
opened by law, and IN all proceedings to deter
mine the compensation to be PAID by the city lor
property taken and Tor rights acquired, Tor such
Itrces, &c., The lees OF commissioners and the
expenses which can oe lawfully incurred by them
lnUulQ DC restricted.
In the past the ices OF commissioners and their
charges Tor the clerks and surveyors and others
law should ne so amended That excessive fees or
expenses OF Commissioners OF Estimate anG AS
Iessment shall not DC recoverable against the city.
BORROWING MONEY ON BONDS.
Since 1871 the practice has existed OF borrowing
money on the bonds OF the city IOr meeting the ex.
penscs incurred IN repairing or rebuilding sewers;
1he authority Ior 1t IS iouud Ia statue passed
March 20, is7I--the amount TO be expended In any
one year Tor The pui pose stated not TO exceed
500, 0OO SO long as this law remains upon the
statute Book u Is mandatory upon Toe city to pro-
stated, Tor repairs OF sewers. But TINS is
an expenditure which ought to be pro,
haplt raising money upon bonds Tor
any portion oil the ordinary expenses OF
the government rs Objectionable In theory AMI
IN operation that every effort should nc made 10
put an end to every Phase OF the system whlch al
lows a.; and, with TINS view the law referred to
Ihouid DO immediately repeaed-the repeating
act to take effect frCn ano after the end OF the
present wear.
Anoi her statute was passed In 1871 which au-
thOrizes the Commissioner OF Pubic WORKS acting
on ms own motion, TO take such lands ana pro-
ceed with such WORKS as he may CONSIDER neces.
sary Tor securing "a further and incXhaustDle"
supply Of water FIR the city. In this statute, as
originally passed. the commissioner was author.
lzeu 10 expend Tor TINS purpose an unllinl'ed
amount, anu the city was required. Oh MS fequisi
ton, 10 raise on city bonds sncn amounts as he
should ask Tor. subsequent statute, passed the
same year, limited the amount TO be expended
any one year Tor the purpose stated TO $l.0O0,000
THE WATER SUPPLY.
The question OF securing q proper supply OF
water ior fhe CITY IL OF undouDted Importance,
but IL should he considered IN all Its aspects.
q a ~ In Inn "a h.as-a nunA