The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-07-24


the tax collector this year two dollars and
ninety-four cents on every one hundred dol
lars worth of property they possess. That is
to say, man who owns a house assessed at
thirty thousand dollars will be compelled to
pay to the city eight hundred and eighty-two
dollars. If his house is mortgaged for fifteen
thousand dollars his account will stand about
as follows -
Interest on $4,000 mortgage. ST. $50
insurance ......-......-.............. $50
Repairs ana decay, one per 500
TOTAL. 50, 4O2
A house of this assessable value would rent
at two thousand two hundred dollars q year,
or, at an outside figure, say two thousand
four hundred dollars. The owner has
sunk the money be has paid down
between the purchase price and the
amount of the mortgage, and hence loses
the interest on that sum. Ii the house cost
thirty-eight thousand dollars he has paid
twenty-three thousand dollars in cash. The
interest on this amount if he had invested it
at seven per cent would have been 81, 610. To
have rented the house at the outside figure
would have cost him in addition to his interest
seven hundred and ninety dollars year.
For the privilege of owning the house. under
our present rurnous rate of taxation, he loses
about sixteen hundred dollars year.
This is bad prospect for property owners,
and it becomes important to inquire how it is
that our public debt is swelling at the rate of
twelve million dollars year and that our
taxes are increasing at the rate Of about three
millions annually. The City Record of
Wednesday last affords partial clew to the
way the money goes. The Corporation Coun-
sci gives his report of suits pending against
the city, numbering between three and four
thousand, and involving millions of dollars.
In addition to o litigation ruinous enough to
break down the most prosperous business we
have constantly increasing debt bearing for
the most part the exorbitant and unnecessary
interest of seven per cent Out of bonded
debt of one hundred and forty-two million
dollars, as reported by the Commits
sioners of Accounts up to January
l of the present year, only about
five millions bear five per cent interest, while
cent and for seventy millions seven per cent
interest. All the five per cent bonds were
issued before Mr. Green was at the head of
the Finance Department That eminent
fnancier has never marketed dollar of per-
manent debt at five per cent, but has renewed
or taken up old water stock bonds bearing
five per cent interest by issuine new bonds
eiv nopf Tn
1874, when money was easy and eagerly seek
ing investment, Mr. Green marketed nearly
four millions of bonds, authorized to be issued
to meet the State Sinking Fund deficiency, at
seven per cent interest To what moneyed
champions of the Comptroller these bonds
were marketed at this favorable rate of inter-
est is secret known only in the Finance
Department.
While Mr.. Green has thus been dealing out
the city stocks and bonds freely at the liberal
interest of seven per cent the banking institu-
tons, some of which have shrewdly taken the
bonds, have informed the City Chamberlain
that they cannot afford to pay as high as four
per cent on the city deposits With such
financiering ability as this at the head of our
financial affairs it is not to be wondered at
that real estate is crushed under an unbear-
able load of taxation, while there is no money
in the treasury to do the necessary work of
the city government. business that pays
seven per cent for the use Of money and re-
ceives three per cent for all it lends on
deposit cannot long keep out of bankruptcy.
The laws in regard to the expenditure of
money are certainly too lax, mainly through
the lobby efforts of the Finance Department.
But no laws, however conservative, could
effectually protect city resting under such
incompetent financial management.
PERSONAL INTELLIGENCE.