The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-05-09

When the original Sinking Fund bill was
returned to the Assembly without Governor
Robinson's signature it was alleged by in
discreet partisans, on the one side, that the
bill had been framed by Comptroller Kelly
for political purposes and not for the pub
lie good. and on tho other side that the
veto had been induced by enmity toward
Tammany, and was not based on honest
objections to the measure The Comp
troller has sagaciously made haste to prove
that his proposed financial policy is de-
signed in the interest OF the city, by sub
hitting to the Legislature q new funded
debt bill, which is Endorsed by some Of tho
most prominent fnanciers in the city
and fully meets the Governors objections
to the first bill, thus conceding the sound
ness and good faith Of the veto. The
present bill appears to DO wholly unobjec-
tionable, and is clear and distinct in its
language an essential feature of a good
financial law. The sinking fund for the
redemption Of the city debt is continued,
and the moneys and revenues supplying
the fund are pledged thereto until the final
the city, The sinking fund for payment Of
interest on the city debt is also continued,
and its surplus revenues are after this year
to be paid to the redemption sinking
fund. All moneys on hand or hereafter col
lected on account of assessments for local
improvements are to be paid into the re-
demption sinking fund and pledged and
appropriated to its purposes in the same
manner as it's revenues. The city bonds
and stocks originally secured by the re-
demption sinking fund are made preferred
charge on TINT fund and are fully protected.
Any outstanding bonds, not being revenue
bonds, may be called in and exchanged for
consolidated stock" issued at not less than
par, bearing five per cent interest and pay
able at not less than twenty nor more than
fifty years. This consolidated stock is to
be secured by the sinking fund after full
provision for the preferred bonds
and. stock. Any bonds falling due
and not exchanged for consolidated stock
or paid out of the proceeds of tho sale Of
such stock may be paid from tho redemp-
ton sinking fund, provided the payment
does not impair the preferred claim and is
deemed by the Sinking Fund Commission
ors to be for tho best interests of the city.
Whenever the surplus revenues of the sink
ing fund are found to be insufficient to meet
the bonds and stocks falling due in the next
calendar year an amount OF not less than
one million nor more than two million dol
lars is to be added to the tax levy and paid
into the fund to replenish it. Hereafter,
whenever any new bonds or stocks are is
sued other than revenue bonds, an amount
is to be raised by tax each year and paid
into the sinking fund sufficient with tho
accumulation OF interest, to pay such bonds
and stocks when they shall fall due. Assess
ment bonds hereafter issued are to bear
not more than six per cent interest and to
run for not more than ten years. and the
sale Of oil bonds, except revenue bonds, is
to be made on proposals invited by public
advertisement.
We can see no objection to any feature Of
this bill. The provisions for replenishing
the sinking fund, whenever needed, by tax
alton, and for raising an amount yearly by
tax sufficient to provide for the payment at
maturity of all new bonds and stocks that
may be issued are admirable, and will be q
wholesome restraint on the creation Of new
indebtedness. The bill will no doubt be-
come law, for neither the Legislature nor
the Governor will be willing to incur the
responsibility Of defeating so wholesome
measure.