, 1879-07-20
SINKING-FUNDS.
WHAT THE COUNTY LOSES.

! WHAT THE COUNTY LOSES.
| The TRIBUNE published yesterday the opinion
Of Messrs. Stiles & Lewis, given to County
Treasurer McCrae,to the effect that he Is not re-
| quircd to invest In county or other bonds the
Sill, coo OF sinkng-fund money now 10 his hands;
and,indeed that he cannot do it with safety. since
| his successor might require him to turn over
| the money 10 cash, and not accept tender tu
bonds, which might be worth less than their
| face at the time the tender vas
made. This decision is pecuniarily an
unfortunate one. because it dcprvcs the county,
that is, the taxpayers, Of the interest on the
sinking fund. which would otherwise 20 Tar
toward paying of the principal OF their indebt-
edness.
By the imperative provision Of the Constitu.
ton, municipal bodies contracting debts are re-
quired, at the time Of incurrlng the Indebted
ness. to provide for the collection. by direct
annual tux, Of sufficient to pay the interest as it
falls due. and also to pay and,discharge the prn1
cipal within twenty years from the time
of contracting the debt. This has not
t besn done in Lon, Cook &c Gqnnss. oon Thsrs ere
iiro bonds nut out in 1s7s ant subsequent
years. There has been set apart toward the
pasmens Of these only Sl11,0o0. although seTen
wears have elapsed since the sale Of bonds be-
gan. lEeTe F6tOAl[s put kQ'TLee0 years aL Lut
most IN which taxes can be levied and coIlected'
for the payment Of the remaining a,3o3. 000.'
That would be S103,000 year. The idca Of =.
sinking fund is, that, as soon as auv money IS:
collected, it shall be invested. and in its turn
bear interest; so that bile the debt bears simple
interest the sinking fund is com pounding all the.
time THUS. for instauce If the $1t GOO now to the
credit OF the sinking fund were invested fn per
cent Governments, and II $75 090 per year for the
next thirteen wears were collected annually ana
also invested in 4 per cents. there would o6
enough on hand by the time the bonds fall due
to pay them oft. The taxpayers would thus
save, The annual difference between $1o0ooo ana
$4,000. But, under the law as it is given to"
Mr.. McCrea. u,ich he will undoubtedly follow,
no such profits will be obtained BY the taxDayers
Of the county. That the County lreasnles
makes anything out OF the $11 0O0 which hes
holds is denied for him. So, presumpt17el},,
the sum lies idle, doing good to no one
THE c1T1.
While on this subject OF sinking funds II
would not be out of place to call attention 70
the city indebtedness. The city has Issued slnee
the adoption of the new Constitution bonds -
the amount OF $5,101, 900. They fall due as lol-
lows: 1892. $8sS 900; 1893 5000: 1871. 81, "
600; 1875, LOCO; 1856. $3.50 900; 1s9S, *sss.
000: 1899, $94i4, ,00l. II proper policy mac oeeu
pursued there would have been col!ec.ea sn a.
nusl tar for sinking fund which " wouia 1,t,n nun
amount to about s277,o0 year. Such SUIT UT
properly invested, when collected ~
pay of ali OF these bonds a. maturity. n1s..
Had the provision Of the Constitution oeSa
nhryeG rnrre woulo be now Oh hant pea5ly
500. 900 TO the credit OF the sinking innos ~
also,,nt Of indebtedness incurred since me
adontion OF The new Constitution. 1nsseAo "
that, however, there Is only S2,l31&