The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-10-19
The Comptroller Replies to Mr.
Morrell's Statements.
CITY FINANCES EXPLAINED.
He Claims to Have Reduced the
Debt So, 100000.
MAYOR COOPER APPEALED TO.
10y TELEGRAPH TO THE HERALD,

According to instructions called on Mr.. Kelly
this evening. at his rooms in the Dickinson House.
had tho following conversation with him in rela-
ton to the management of the finances Of New York
city and the reflections passed upon it,
CoRnEspoNDESr-ln the Ereaing Telegram Of yes
to-day Mr.. w. H. Morrcll states that in
consistent statements as to the city debt have
boon made by you; in particular that in 1877
you announced the actual debt OF the city in all
forms at 1856; that in your financial state
ment of August 1873. you stated tho total debt ut
Sl18.752700 and IN August 1870. the total debt Is
stated to be 1924. s7s $780, and that Notwithstanding
statements that you claim to have reduced tho
debt by $5.oOo.OOO. Have you any explanation to
make?
Mr. xELLY's EXPLANATIONS
Mr.. KELLY-l have not here with me the statements
made by me Comptroller. but this can say, that
each monthly statement of the debt OF the city
which published in each and every particular
q statement Of the facts they actually existed 1t
is perfectly easy for any DESTROYS Of doing so to
give u partial representation the subject to mis-
lead the public as to the correct nc
counts Of tine city debt. TO understand
it correctly the publ, must always bear in mind
that for about nine months of the year. that from
January to September each year. tho expenses of the
city government met by temporary loans OBJ
tanned on what are called revenue bonds issued on
the security and paid from the proceeds of the tax
for the year AS the taxes collected. The annual
tax levy is not confirmed until tho month
of September or October, and until the tax
levy Ia confirmed the taxes do not become lien on
the property aud are not payable by the taxpayers
During this period, however, from the LIST day OF
January until the confirmation of the tax levy in
September October. every branch Of the city
government has to be carried and all the expenses
connected herewith have to be provided for 1t Is
l.
provide the funds for this purpose. and do SO
by obtaining the temporary loans to which have
referred When the levy is confirmed and the taxes
begin to be paid into the city treasury in October
and the following months. pay these various tom
porary loans, that each years taxes are paid
into the treasury the temporary loans for tho year
are paid and discharged.
HOW COMPARISONS SHOULD BE MADE.
In comparing. therefore, at any particular period
the dobt OF the city of Now York. 1t is necessary
either put these temporary loans aside or to COM
pare those loans Of each period Of the year.
30 that may be what the current expenses Of
the city government. represented by these loans
amount to. The debt as it exists on the LIST
day of August in each year Is no proper COM
parison. On the LIST day of January there is only
balance remaining unpaid Of the revenue bonds
which had been issued during the previous year.
but on the LIST day Of August there Is included the
revenue bonds which had been issued to meet the
current expenses of the government during the first
seven months Of the year. Then. again. a
comparison, so far the bonds
arc concerned. even the LIST Of Au-
gust in each year. will give but a
partial view this subject because In one year the
department may. during the first seven months Of
the year. spend less than during the first seven
months of another year. But the expenditures for
I., AZ tl,;y
tho amount appropriated in the levy for the pur-
poses Of such department. It is matter which
the Finance Department has control. excepting
far as relates to salaries whether the other expenses
ofthe expended by the heads of such
department entirely during the first seven months
Of the year only partially For these reasons
therefore the account OF the revenue bonds OF the
| city should BIO compared by itself. and by
such comparisons the public will readily
| ascertain tho amount which tho Comp
troller has to borrow temporarily during
| portion Of each to provide for the current
expenses of the city, But all these revenue bonds
are paid of by tho taxes received each year. COM
parson OF the city debt exclusive OF these. will
show the public what tho state Of the
OF the city its bon DIS stocks at
| any particular date
| nEpUcKD THE DEBT EIGHT MILLION FOUR HUNDRED
THOUSAND.
In each Of my monthly statements have given the
amount of these bonds add stocks. and as the sink
| ing FUND Is pledged for their payment I have
shown the exact amount in the sinking fund on tho
day OF each Of my reports, and deducting the sink
ing fund from the total OF bonds and stocks, the
| balance. IA stated in my report. shows cor
| rectly the outstanding permanent debt of
| the city to cent. These reports show,
and show correctly that since 1entered on my duties
of no citv hav hoa unafc
as present correct reports. showing the per-
manent dobt of the city during my administration
| has been reduced upward of sS.400.o00.
EXPLAIN.
CoRRKspoNpESr-Mr. Morrell also states that Mayor
Cooper has Jailed to get any satisfactory figures
from the Comptrollor's Office for tho last nino
months.
Mr. KELLy-This Is q statement that Mayor
Cooper cannot himself truthfuliy make, and 1
should DO slow credit tho correctness OF tho state
mcnt OF Mr.. Morroli. Mayor Cooper has received
from the Comptrolcrs Office correct particulars ON
every matter which ho has desired information.
and know 1t is not in the power of tho Mayor
or of any living to show that any
statement issued from the Finance Department over
my signature Is any respect inconsistent with tho
actual facts. must refer you to MIR. Cooper
plain tho statement OF Mr.. Morro aud for tho sake
Of the public IL IL his duty Immediately to do so.
rmE pErAnrMESr rurIIc WORKS.
ConREsroSDESr-wha do you say to the statement
OF Mr.. Morrcll ~ to the economical management OF
tho Department OF Public worksy
MIR. KErI.y-At present this is . subject which
for obvious reasons l do not wish to enter upon
further than to remark that tho economy OF that
department. in SO far economy has boon secured
is not duo to the present management OF tho depart
mcnt. The department has expended In its
various branches all tho money appropriated
to It, and as tho law prohibits. any expenditures
in of appropriations is quite clear that tho
head of the Department Of Public Works could not
done.
commemorative do you say to the recon-
mendations Of Mr.. Morrell. a. TO introducing into
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