The New York herald., 1877-03-07
THE CITY DEBT.

vIEws-NoT DANKRUPT-THE SINKING FUND
UNPAID AssEssMENTs--THE STATE TAXES.
The question OF tho financial standing Of this city is
Que that deeply interests taxpayer The proper
tion OF citizens that fully understand the citys imam
cal problems is small compared with those that have
some vague idea OF immense debt. How 1t is To be
PAID or indeed whether II Is ever to be paid ALL Is
question that rarely suggests itself to the average
citizen. On the opposite side there those who go
SO far seriously ask II the city Is bankrupt In
the interview below that question will be found an
swered by Comptroller Kelly to whom visit was
paid yesterday by representative OF the HERALD.
That gentleman having courtcousy consented to give
his views the subject the following conversation
ensued:-
at is stated Mr. Kelly, that the city is unable to
its debts, that In fact It Will become bankrupt,
unless there is general reduction OF expenses What
is your opinion OF this ?"
"Ncw York respect be considered bank
rupt nor IN any manner tending 10 bankruptcy either
as city government or commercial community.
While is that the debt OF city is very large
and the taxes are heavy. the fact We have been
passing through OF unprecedented depression
ana slagnaon of business OF a kinds throughout the
country, effect OF which Is especially elt BY tho
city o New York. This contraction was the natural
reyulsion IRON previous period OF great expansion
and ARTIFICIAL prosperity. Sucn state OF Affairs
elect upon tho pubic mind; everybody suffers IRON
loss OF business aud income, and the burden OF
is felt severely at ths time than days OF pros
perity, consequently the expenditures and debt tho
city hecomc subject 10 criticism and condemnation
Tor extravaganza aud mismanagcmenI People in
times of depression too apt u look TO the
government Tor relief and for tue means OF restor-
ing them to prosperity, Whereas In TACT, the govern
ment Of city country dependent on its people,
The government OF the city OF New York eau never
become bankrupt whilc II retains It's commercial and
financial pre-cmlnencc in the country, winch rests
tirey with It's merchants, man uacturers aud capital
lists, who by their intelligence and enterprise find
ways and means Tor extending aud increasing lis busi
ness in all directions. The future greatness and pros
perlty OF the city otNcw York depend upon hem and
not upon the government Of the city But looking at
the city government tod day, with It's own means and
resources the present Indebtedness is IN no respect
cause OF alarm Us New York possesses ample re-
sources III itself 10 meet II, II the city has any iuture
and not destroyed by some catastrophe OF naturc"
'what Is the real Indebtedness oi tue city Of New
YorkY
iherc is great misunderstanding and misapprehen.
sion on THIS subject among people gencruily. The
Of the CITY In tho shape OF bonus ana stocks
all kinds may be stated IN round numbers
$780, 900, 900, but the city Is itself holder OF nearly
$50 OO0, U0O OF these bonds and stocks which
vested IN the sinking fund, while over $22 900 Of
the amount are In tho shape OF assessment bonds,
winch ~ the amount OF about $l5, ,00O 900 VIII DO u
aud over S6 000 900 in bonds
issued In anticipation Of the taxes OF the past year
which have 10 be collected These Offsets to the total
bonded debt reduce the actual Indebtedness Of the city
TO about 500 600 000 There claims against the city
10 large amount that might be added 10 It's actual in
debedness but these and all other liabiities
than counerbaancci by arrears OF taxes. mortgages
and other forms Of properly belonging to tho city IN
dependent OF Its real estate, which has been estimated
at valuation by experts as appraisers, AZ nearly
s25000 000 In view OF these facts It would seem to
be surd to talk ABOUT the bankruptcy OF the CITY,"
THE SINKING FUND.
''I has beoD stated that as the city pays taxes
nually to meet the Interest upon the CITY bonds and
held securities by the sinking fund It would
be better 10 pay OIL these bonds and stocks and stop
the Of interest," ana by that means reduce the
annual taxes several millions what Is your opinion
this subjcctY"
.srho proposal to abolish the sinking fund and pay
of the and bonds II holds Is both unwse and
practicable In the first place, is unwIsc because the
sinking uud IS provision Tor the payment OF stocks
and bonds becoming duo at future date amounting to
S2l 000, ,00O The stocks and bonds held by
ings banks trust companies and capitalists cannot be
paid oil before they due, tho holders will not
part with them except at large premium. The por-
ton OF the bonds ana stocks held 0y tho sinking fund
payable by taxation had letter be applied 10 the pay
ment OF bonds and stocks becoming due at q future
date than cancelled the present tmc for the
that large amounts OF these stocks, aIng duo
IN some Iature Years would render inc taxation OF
this means the redemption Ut these STOCKS
ond bonds will be made easy, us taxation
long period OF time. bill tas been presented to the
Leg gsalure to provide Tor the application Of the secur
tics in tho sinking fund TO the redemption Of bonds
payable from taxation, thus relieving future years from
the danger OF excessive taxaton."
THE CirY's REAL ESTATE.
''What is your opinion Of the proposition to reduce
the bonded ucUt by the sale OF real estate belonging
the cilyY"
"a largo mount-possibiy $4,000 0OO-of city
property not required Tor munlcipa occupation
should be sold at early period as possible but it
would be olly sacrifice by selling at the present
time. The amount received could properly applied
to The reduction OF the debt while II would also n-
the properly that pays taxes TO the city, and
thereby be douoiy beneficial"
UNPAID ASSESSMENTS.
'lt has been published. as stated by you that OF the
$22 00O. 900 of unpaid assessments not more than
sLOOoOoO will ever bc collected. Is tnis statement
correctly
NO; It is a misunderstanding What have stated
in this matter is that $7,Ov0O0J Of the amount OF un
paid assessments viii probably never be colecleJ or,
rather that dcliccncy, arising from various causes
to the amount o perhaps 81 UUU 900, Will have 10 be
provdco by the issue OF bonds TO pay assessment
bonds, which have beon issued Tor street improve.
mcnts. F"
.'rhe inquiry has made how this deficiency in
the payment OF assessments mas arsen ana The qucs
tiuu has asked there any who 10 pay
their assessments, ana II so who are they?'
"A great numosr Of assessments have been vacated
by the courts upon various technical grounds which
have been taken advantage OF by many persons, and
that is u class who have not paid their assessments.
Under decisions OF The courts ALSO church property
has been relieved from the payment OF assessments.
large amount oil assessments also due by the
on us own property whicn forms part Ui The dei-
persons VINO have not paid assessments are
lnose ownlns properly on s'rces winch have
been repaved from .ne proceeds o ASSESS.
be assessed under special laws Assessment
bonds, TOO, have been issued Tor the Improvement OF
avenues The upper part the city, ony
onc-hail ot the cost OF which by law be assessed
on private property benefited by the improvements
These aud otner eau e have produced the deficiency
referred and thcc Iacs show who they ina. do
not pay their assessments.
THE STATE TAXES
at has been justly stated, Mr. Kelly added "that
the city OF New YORK suffered great injustice by
the imposition ol moro than one-half Of tho Stale
taxes. having paid within tho last ten years to the
State over $50 600 000 twotbirds OF the actual debt
OF the city. This wrong should be corrected Uy iaIr
equalization Of the valuation OF The property through.
out the state, which can best be ELECTED by an
appointment ID the State Board OF Equalization oil
n representative member from the city OF New York
who would INSIST tnat she be treated with simple JUS
tce ~ the matter OF STATE taxation This fact, that the
city has paid more tnan $60. 100000 to the tate III
or the last ten years which Is more than ity per
OF the entire Stale tax tor that pcrod explains
measure the burden OF public debt and taxa
tion at the present time No doubt u vast amount Of
money has been squandcred IN his city by expendi-
lures that IN gbt have been avoided and the public
debt has been greatly increased through frauds, job
berry and extravaganza, but II should be remembered
that the increase OF the city debt has manly been
brought about since the commencement Of the late
evil war under the operation OF an expanded currency
hicn Inns IN ~ erIuls