The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-08-05
Our Financial Condition.

The city's financial statement up to July
81 is not encouraging to the taxpayers.
The gross funded debt, payable from taxa
ton and the sinking fund, has increased
since January l Of the present year one
million six hundred and eighty-seven thou
sand dollars, or m average increase Of
nearly three million dollars in the year.
The exact figures are as folows-
Funded debt July 81, 1871 1921 319 1s3
Funded debt, December 80. 1875 1l9.63l3l3
Increase in seven months .. slss7, $40
Meanwhile our expenditures for current
expenses appear to have been as lavish as
our addition to the public debt. During
the six months between january and July
l. or for the first half OF the present year,
there were issued warrants to the large
amount of twenty-six million dollars, OF
which only six and half millions were for
the redemption of the city debt. Over six
teen and half millions of these warrants
have been drawn for the current expenses
Of the government payable from the years
taxation. In other words, we have spent
during the first half of the present
year about one million dollars more than
the half years share of the full years esti-
mate--a proceeding which, if carried out
during the remainder of the year, would
leave us at its close with deficiency of two
million dollars despite the iberality of the
appropriations. We also find over fifteen
millions Of revenue bonds issued in advance
of the years taxation outstanding on July
Nv, int uhi ch ic
dead loss to the city, while the cash in the
city treasury is down to seven hundred
thousand dollars.
Now, this is certainly not a good showing.
We are aware that there are laws requiring
the issue of bonds for which the financial
officers of the city are not responsible.
This plea was constantly interposed by ex-
Comptroller Green to the repeated attacks
made on him by Tammany for his alleged
Encouragement Of the city finances. But
it was not considered a good defence
then, and cannot be accepted as a
good defence now. We insist that the city
could be saved great amount both of per-
manent debt and annual taxation by a
broad, capable financial policy. The fact
that our present municipal rulers used all
their power and influence to defeat, through
the Governors veto every law passed at the
last session Of the Legislature tor the cur
tailment of the debt-raising power and for
the decrease of our annual expenses rem
ders it incumbent on them to save the city
from these reckless and ruinous expendi-
lures They have no right to issue bond
ut more than four per cent interest, and no
right to issue fifteen million dollars worth
OF revenue bonds in the first half of year,
about one-half the whole tax levy. We need
capable financial management that will
give us immediate relief by we'll consid-
cred plan Tor the consolidation of the city
debt in long bonds at about four per cent
interest. The holders Of large amount of
our outstanding short bonds would gladly
exchange them for these long bonds. A
proposal for one hundred and seven thou
sand five per cent city stock was yesterday
made at q 05 premium, which is sufficient
indication that four per cent bonds would
find plenty Of bidders at par. We need
also to know just where we stand in the
matter of debt. At present we have no
such knowledge. Out of twenty-five mill
ions set down in these financial statements
as Temporary" debt returnable from assess
mcnts probably nearly one-halt belongs to
and should be scheduled as permanent
debt. There are unsettled Chains against
the city which must eventually be paid, and
no person knows their amount. This is
not healthtul financial condition, and un-
less we seek remedy we cannot hope to
escape the fate that always attends reck-
less and incapable financial management,
whether in public or private business