The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-01-27
CITY DEBT.
Comptroller Kelly's Reply. to the AS
Sembly Committee.
TIE BONDED INDEBTEDNESS
A Mortgage OF One Hundred
and Fifty Millions.
A PLEA FOR RETRENCHMENT

Comptroller Kelly has addressed the following COIN
muncation to tho Assembly Committee on Affairs Of
Citics in pursuance OF resolution requesting his
views upon the proposed constitutional amendment
submitted by Mr.. Spnola in the Stale legislature
CRY oy NEW YORK. DEPARTMENT OF finance
CoMPTRoLLERs OFFICE, Jan 20 1871 J
Hon HAMILTON FISH, Jr., Chairman OF tho Assembly
Committee on Affairs OF Cities, Albany NJ "
SIR have the honor 10 acknowledge your conm1-
nicatIon Informing me OF resolution passed by INC
COMMITTEE on Affairs OF Cities ON the 18th inst re-
Qucstng my the subject oil the proposed con-
m, ase bonded Indebtedness OF
the city Of Now York 10 tho sum oil *ioo'ooooo' us
follows:-
county Of New YORK shall all times be kept within the
sum $1,000 ooo and all bonds aud stock. issued sy
debt beyond the limit naued snail be void in both
Tor any person bonds stocks il the
Of sad Ely and sogny h .ov s1ua q All" '
No one can be more solicitous than myself that
cectua measures shall be taken to stop the increase
sibIe to relieve the community OF the burden of ex-
Cessive Pubic deot anu taxes arc iuscPaT-
able and taken together they constitute the question
not easily disposed OF and settled In the hrs place ~
demands Tor It's solution clear and accurate knowi-
edge OF ali the relating to IT, as 10 its origin, It's
nature and its amount ana, second, ~ cannot DC
trca,ed wisely as an Independents question: win re-.
spect merely TO q certain amount OF indebtedness, put
must be regarded comprehensively and inteigently
with reference many imI orant pubic interests and
t,on therefore cannot be reached by any crude or
partial or arbitrary legislation but must be considered
aspects ana bearings upon the great inter-
Personally, / am very anxious that not another
dollar shallbe added TO The bonded deb' Of the CITY
while am Comptroller, and desire 10 have as many
restrictions put upon the issue oil stocks ana bonds OF
the city aud many safeguards to limit II as me law
can impose; but am not Wiling 10 accept anu pear
the mpu,aton OF any responsibility for the debt which
does properly belong 10 the once OF comptroller
OF The city OF New York.
The first remark have TO make upon this proposed
OF the State constitution, then Is that IS
whollv inpractcable under existing laws To use u
tonely pertinent and orcible old adage III puts
the cart before the horse" IL deals with effects m
stead of causes proposes to place the responsibility
for the bonded debt does not properly belong
The proposed constitutional amendment makes Il "a
felony ana pun such Tor any person 10 issue
any bonds stocks in the name OF the city and county
beyond u certain limit .
do not know OF ''any person. VINO can issue Oonas
and stocks OF this city except the Comptroier whom
the law desicnates the official ''person" who shall
isaue them in pursuance of ITS provisions
He is the only person specifically designated as the
ministerial agent the law issue bonds and stocks
in the name Of the Mayor. Aldermen aud Commonay
OF the city OF New York; but he performs this duty
however in conjunction with the Mayor and other
officers OF the city government Tney are all
like himself only ministerial agents n,o car
ity with the requirements OF the law the Mayor
aud other Guy officers unite with the comptroller ID
inc issue OF bonds and stocks TO pay debts already
lawfully contracted, or TO raise money Tor special OBJ
jccts PURPOSES they are not responsible for the
bonded debt mus authorizeu "pu 1ica.e. an ny
aware that a dollar OF bonded debt OF this CITY has
ever been issued unlawuiy.
But the proposed constitutional amendment as
sumes that tie .person who shall tissue any bonds
or stocks in tho name of city and county" is re-
sponsibe Tor the bonded debt, and, therefore, pro-
poses punish him for the issue OF stocks and bonds
beyond certain limt to be established by the State
constitution. -
The Comptroller and other officers OF the city govern
mcnt certainly would not issue any bonds or stocks
beyond liked limit II the proposed constr utional pro-
hi bion orce even II hcn existing acts OF the
INIT
any purpose whatever. and although lawful claims of
the creditors Of tho city might demand satisfaction.
There numerous existing Jaws which net only
authorize but direct The Comptroller upon The requis
ton OF certain designated authorities TO issue bonds
and stocks money tor many diiieren purposes
and objects.
INDEBTEDNESS.
Our present Mayor the Hon. smith Ely. Jr, refers,
in his inaugural message TO the Common Council to
existing laws this character, by which the bonded
indebtedness may be Increased. The following is list
OF thcm:-