The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-01-27
THE CITps $50. 900, 900 DEBT.
Comptroller Kelly Presenting Facts that May
shut Off Much Drcary Debate.

Gen. +. b. Spinola introduced in the As
scmbly a few days ago proposal to amend the
Constitution so that the bonded debt Of this city
shall never exceed si5O0OO,OOO; that II the city
puts forth any bond that may increase the debt
beyond that sum, such bond shall bc void and
that any person who. in the name Of the city.
shall utter bond that will increase the debt
beyond 1850 100000 shall be deemed guilty Of Il
felony.
In compliance with n request from the Assem-
bly, Committee on Cities. to whom the bill was
referred. Comptroller Kelly sent to Hamilton
Fish, Jr.. Chairman OF the committee. ycetcr
day. n communication cmbodying his views Of
the proposed amendment
With respect to the part OF the proposed
amendment that makes it a felony for any per-
son to issue city bonds that would increase the
debt beyond $3.50 900 900 Mr.. Kelly holds that the
section puts the responsibility for tho bonded
dobt where 1t does not belong. He admits that
the Comptroller is. by law. designated us the
officer who shall issue the bonds Of the city.
His duties are ministerial only. Most OF the
bonds are issued in pursuance OF laws passed
by the Legislature. requiring him. on the requi
sition OF designated authorities. to issue bonds
to raise money for various purposes.
Mr. Kelly next discusses the proposition 10
limit the bonded debt. He says that on the 3ist
Of December last the bonded debt was siisl07.-
b5I79: that the city ia liable for 81 100000, the
debt Of the three Wcstchcstcr towns that have
been annexed to the city. and that there are
nearly four thousand claims against the city in
litigation. the payment Of which will doubtless
be ut some time forced 10y Judgments of the
courts. The bonded debt il made UP Of bonds
payable from taxation, or from the sinking
fund. and known as the funded or permanent
dch;' bonds payable from usst ssmcnts, called
the Temporary debt" and bonds issued In an
ticipaiion of the collection of taxes, and known
NJ revenue bonds. The bonds of the first
thorizng the opening and Improvement Of
the Central Park and other public parks
nnd places. the supply Of the city with water.
the payment Of riot damages. the erection Of the
Court House. tn" erection Of the Museums OF
Art ami Natural History. the Brooklyn bridge,
the building and Improvement uf the docks. and
many other public works. Many Of these laws
OF bonds. Tn" assessment bonds are issued to
raise money To pay for opening streets avenues,
ana boulrNaru-. under the direction Of the De-
partncnts Of Public Works and Parks. Many
largo works are in progress that will require
further issues of this class of bonds. The rev.
emu" bonds are issued in anticipation Of the
collection OF taxes Ia provide for the current eN-
pense- oil the city Government The amount of
these bonds fucuates. but toward the end Of
The year Tor which the taxes are levied II often
reaches s20.OOOOo0
Mr.. Kelly is fully alive 10 the necessity for
reduction Of the city debt. and II willing TO
have as many restrictions put upon the issue
OF bonds. and as many safeguards to limit their
Issue. n- the law can impose: but h" holds that
before the proposed amendment is acted upon
all existing laws comforting unlimited debt con-
trNriing powers ana authorizing and directing
the issue Of bonds should be repealed. and that
retlng the expenditure of the citys money
should bc Restricted.