, 1880-01-04

found to he In the wrong. The decision Of
the Court was unanimous one.' :.
THE CITY FINANCES.
There are now two millions OF dollars III
the City Treasury; and in every broker
shop, bank, and grocery in the city are to be
found the Controllers irredeemable certif-
Gates, otherwise called city scrip. With IN
oyerhowing Treasury the city is making a
forced loan from its creditors, without In
terest and payable at some indefnit time In
It is the result Of the scientific bookkeeping
which provides for the accumulation Of an
average sum Of 81, ,ooQ, GOO in the Treasury at
all times,-it is now: S., ,000, COZ, and not q
dollar to apply to the payment due some
needy creditor.
When the city was in the financial distress
which reached its climax in May, 1876, and
which forced the city into a thorough
system Of retrenchment; when it was In ar
rear to Its creditors nearly five millions Of
dollars, and the city scrip was under protest,
there was, and had been for two years, a mill
ion OF dollars in cash in the Treasury, on
which the Treasurer was drawing 4 per cent
+ interest for his own personal profit. The re-
duction Of appropriations, the abolition Of
numerous useless Offices, the reduction Of
salaries, and. other measures Of economy,
have enabled the city, during the last three
years and half, to pay off between four and
five millions Of debt, and the back-tax law
has had the effect to increase the balance in
the Treasury from one to two millions Of
dollars.
OF course there is an inviting grab for this
money. Numerous schemes for Its distribu-
ton are proposed. It belongs to the city.
The scrip business, however proper when it
was Indispensable, has become disgraceful.
With millions in the Treasury it is shameful
that the city should still continue to issue
this deprecated paper.
The money from the back taxes is the
property of the city. In the hours Of mu-
nicipal distress the city borrowed S6oo,0oo Of
the City-Hall Fund. Some portion Of this
has been paid back and, expended. In the
same time of distress the city borrowed from
the fund set apart by law for the Sinking
Fund. The city owes these debts at this time.
In July next s7s1, 900 Of the public debt will
mature. That sum Of money due to the
Sinking Fund, if applied in July to the pay,
ment Of the maturing bonds, will reduce the
public debt and the annual interest thereon.
The remainder Of the maturing debt, which
now pays per cent interest, can then be re-
funded at 5 per cent interest, and the saving
will perhaps not be less than $4,000 year
in interest. The money for. this purpose is
now in the City Treasury, and, whatever
interest it produces, nothing goes,to the city.
Shall the city continue to pay per cent in
terest on bonds, while the money to pay the
bonds is in the Treasury producing no inter-
est-to the city? -
The money due the City-Han Fund was OBJ
tanned from the State, in trust; to replace the
destroyed building. The new building is in
progress; and why should not this fund be
made whole out Of the surplus money now
in the Treasury? The application Of money
uUN 4NlC LII II N14CAREA tAA<AAA k<sA-
alton, and, so long as the city has the money
in hand, why leave 1t in the hands Of the
Treasurer and levy taxes for the same pur-
pose e?>
Whatever sum Of t1iis money from back
taxes may be in the Treasury after repayment
of the City-Hal1 and Sinking Fund debts
should be held as permanent fund to meet
the semi-annual interest on the public debt.
The tax levied annually to meet the interest
on the city debt is not collected for eighteen
months after the first semi-annual payment
of the interest is due. The money to meet
the interest is therefore from six months to
twelve months in arrear Of the time for pay
ment, and has to be borrowed. The making
of any such loan for any such purpose
is illegal, and, though there has been patriot
ism enough 50 far to advance this money to
save the credit of the city, the time has come
when the city should no longer be subjected
to any such contingency. The use Of this
money, so far as it will go, to pay the interest
on the public debt will enable the city here
after, out of current revenue, to pay the in
terest as it falls due, without making any
loan, or resorting any longer to the illegal
and disreputable process of issuing scrip.
The Finance Committee Of the Council. at
themeeting Of Saturday, agreed to recommend
to the City Council the restoration, out Of
the surplus of the back taxes, Of the Sinking
and Building Funds. This is not only both
wise and polite, but it is also just. It will
greatly expedite the placing the business of
the city on cash basis It will put an end
to the scrip business, and for the first time en-
able the city to adapt its transactions to the re-
Quirenents Of the CONSTITUTIONAL contract
no debt, and to pay every obligation on de-
mand.
ENGIAND's NEW PERIL IN INDIA.
A new peril has arisen in India, which is so
seriously threatening the English rule that |
the Government and the press are very
anxiously discussing it. The danger which |