New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-05-18
4 Bad SYSTEM OF PAYING COUPONS.


4 BID SYSTEM OF PAYING COUPONS.
The system of paying coupons on the city
debt, now practiscd in the finance Depart
ment, is sadly defective. Otherwise IL would
not have caused o loss of $l4S.63O. The
accidental exposure that followed the death of
the clerk Carroll is the only reason that loss
was not much greater. Under the system OF
paying coupons practsed by the National Gov
eminent OF by large corporations, such loss
could not occur. The great city of New York,
paving over $S,O00,000 year on coupons,
ought to he equally well guarded.
Controller Campbell says that the system, de-
vised by cx-Controler Green, was " sufficient
providing all the subordinates did their duty
But there is no need of any such risk. And it
has not been lessened by the modification
which Mr. Campbell has made in the system
Instead of having the discussing clerk make
the second cancellation of the coupons, the
Controller has transferred that duty TO the
Auditor. That officer, no doubt, is trust
worthy man buC he cannot always be at his
desk. During vacation or in times of sickness
some one else must do his work. Besides, in
the mutations OF city politics there is no telling
who may lie Auditor six months hence. Tho
system is wrong, aud should ne changed with
out delay.
Until 1875 tile coupons were paid by the
Chamberlain and cancelled when paid. Every
coupon was, until that time, regarded as II
sufficient warrant for the amount 1t called Tor.
The Chamberlain is under 81, OO0,0 900 bonds,
and if lie paid coupon second time the city
was fully secured against loss. That system
was simple and secure. Daring the whole
period of our corporate existence no loss oc-
Cured under it. Coupons are paid in similar
manner by the National Government and by
all large corporations. Bat in 1875 Andrew
IL. Green discovered that coupons ought to be
audited, and he changed the system. Since that
time each coupon has had to go through the
circumlocution Office. and the result already has
been loss to the city of $lls, $50.
Every coupon is attached to bond duly GER
tilted by the Mayor and Controller, to which the
seal is affixed by tho Clerk of tho Common
Council. Each coupon is separately numbered
and signed by the Controller and reads that
the City Of New-York will pay To bearer at
the office OF the Chamberlain" and so forth.
Common sense and the experience of century
would show each coupon to be a sufficient war
rant for its face value-whch never exceeds
$50. But Mr.. Green, VINO was hunting for
technicaities, discovered a section in the city
charter which he thought required change i'll
the system of paying coupons That section
reads "The Chamberlain shall pay all war
rants drawn on the treasury hy the Controller
ana c0untersigned by the Mayor. and no
moneys shall he paid out of the treasury ex-
cept on the warrant of the Controller 30 cOnn-
@tersigned."
AS a coupon is attached to bond so counter
signed, it was before regarded as a sufficient
warrant. And it is yet on part of the city
debt. The interest ON n considerable part of
the debt, including the Sl5,O00,O00 Belmont
loan" is payable in London and Frankfort
The coupons on those bonds are accepted and
paid by the agents of the city in Europe, and
no further warrants are ever made out. But
for that part of the debt on which the interest
is paid in this city, every holder of petty $15
coupon must leave it ut the Office, not of the
Chamberlain, but of the stock and bond clerk
A voucher must then DO made out for the
coupon, and when that has gone through all
tie forms of an audit a warrant is drawn on
the Chamberlain. 1t Is signed by the Con
troller, and then sent to the Mayor for him to
sign. Upon that warrant, properly counter
signed, the Chamberlain draws Il check or draft
which IS again corntersigned by the Controller.
That check is sent to the disbursing clerk to be
given to the owner of the SD coupon upon his
presenting the receipt of the stock clerk aud
making affidavit that the above amount is due
and payable" A greater circumlocution farce
could scarcely be devised. No wonder it has
Al - ~ 81, -.
years from the time it was put in practice. The
municipality has got on cheaply at that price.
But the sooner we return to the uniform sys-
tenn followed before Mr. Green's great dis
covery, the better it will lie for the taxpayers.