The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-01-27

about 81 ooo assumed by the city under tho law
| old claims and liabilities for several millions more
| FOUR THOUSAND cLAixx
Ncarv 1000 old claims against tho CITY arc 10 MI
gntion but what amount are legal aud Just, the pay
ment OF which will be eventually enforced by judg
mcnts OF The courts. cannot now DO even estimated
All these floating Liabilities Of the city must however
be taken consideration when are adopted
| for the regulation Of the bonded debt.
The present bonded debt amounting as above ssssco
nearly $3.50 00O. 10 say nothing Of existing ma
btcs and additions II under the constant operation
o. laws 70 force AFFORDS little Or no marg@ w'sa'' "'
This amendment does not make any distinction az W
different kinds and classes OF bonds and Stocks ou'
appears to apply 10 ana include In It's prohioory pro-
vision all kinds and forms OF bonds and stocks under
the general head s'bonded debt" There arc now
ever three distinct kinds and ciasses OF oonos
require separate consideration IN treating oil inc
bonded debt of the city
l. Bonds payable from taxation or from the SINKING
fund, known as .sThe Funded or Permanent Deb"
2 Bonds payable from assessments known Us ''"'
q bonds issued in anticipation of the collection OF
taxes known as "revenue bonds"
THE BONDED CLASSIFIED
The following statement exhibits tho amouu! o.
each class Of bonds composing the "bonded debt Of
the city OF New York on December 81. ls7c--
Funded Debt, or long bonds
Amount payable IRON sinking 49, .oo zoo
lunu. 49,, ;...;;cn as i9I 7sv
''''"' fA'" '''"' -,,----sll9, 031, sl3
Temporary debt assessment bonds
Amount payable IN whole or IN part from
assessments for opening and Improving
Revenue bonds payable IRON taxation.... 6.l04, s44
Total amount OF bonded debt of the city OF
New York December 81. 1875 ......... $14s 1915
SINKING FUND SECURITIES.
The securities hold by tho sinking fund amounted
on December 81, 1876 to SIS, 179, 102, OF which
amount the of s2l 49, $685. as above stated, Is
pledged the redemption Of the funded debt leaving
an Of So 1884, $50 In the sinking fund for the
redemption OF the city debt not now appropriated by
law to any special object
The sinking fund should, in my opinion, DO applied
the whole funded debt, including that portion
nf vvh NNQl IN
terest, is payable from taxation. The per.
pctuation and maintenance OF tho sinking fund
| consider wise financial measure, by which tho
present accumulation ana the future revenues OF the
city pledged TO that fund shall be applied 10 the
payment OF tho funded debt now by law payable
from taxation. BY this means taxation would
he equazed over long series OF years. and the
whole funded debt be eventually extinguished without
excessive and irregular taxation NJ periods when
the bonds mature. The revenues OF the sinking fund
estimated to be ample Tor accomplishing that de-
sirabe object besides aiording great convenience
and advantage in the operations OF the Finance Do
partment in borrowing money from the sinking fund
jor Investments from time time on city securities
and in making such Investments FOR the SINKING Iunu
Bonds Of the first class, or funded debt bonds
issued in pursuance Of special laws, such az the acts
authorizing the opening and Improvement OF Cen
tral Park and other public parks and places the sup
ply OF the city with Croton water the payment OF riot
damages the erection OF the new County Court House
aud the Third District Court House, the Museums OF
Art and Natural History, the Brooklyn Bridge, the
docks and many other public works and purposes, a
mum which In force, ana still compel further
Bonds OF the second class, or assessment bonds
issued to raise money TO pay the expense OF opening
and improving streets, avenues, boulevards, NC,
under the direction OF the Department OF Public
Works and the Department OF Pubic Parks
Bonds OF the third class, or revenue bonds, are Is
OF the collection OF taxes 10 pro-
vide for the current expenses oil the city government
and other annual appropriations. They nuctuate IN
amount, and toward the close OF the year Tor which
the levied they sometimes exceed $40 600 900
outstanding bonds.
NEW STREET OPENINGS
nnnu In WnF in
very recently the Supreme Court has appointed
missioners TO open about dozen streets IN the new
portion OF the city annexed 10 II from Wesichester
county. The payment Of awards Tor damages and
lands taken under these proceedings will require the
issue OF bonds for large amounts, and the improve
of the streets by regulating, grading curb
ing and guttering sewerng, paving, &c., which will
become necessary alter they are opened viii require
further issue assessment 10 pay the expense
RESTRICTING TAXATION.
shall not now discuss the question Of the proprl-
ETY. repeating all these existing laws which authorize
expenditures and the issue OF bonds aud stock, but
simply refer to them only to show how II o bonded
debt Of all kinds classes originates aud created
where the responsibility for II is to be iound and
leave the matter for your consideration.
beg you will observe also that expressing my
views, as requested by the Committee Affairs Of
Cities. upon the subject OF the proposed constitutional
amendment, do not oppose or object in any manner
TO the principle OF Limitation OF the bonded debt for
slrctions beng put upon she powor OF taxation,
sessmehts, borrowing money and contracting debit
by municipal corporations, which that section OF the
State constitution II is proposed 10 amend now i'm
poses duty upon the Legislature to provide Tor.
This subject attracting the earnest attention,
am glad to say Of many OF our most Influential and
intelligent citizens OF all classes and professions. and
that tho vital questions OF debt and taxation Will
soon lind IA wise and satisfactory solution.
have the honor to be, very respectfully,
JOHN KELLY, Comptroller.