The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1890-08-27
CITY BANKING.
How the Public Funds Are
Collected, Checked and
Guarded.
"A NEW CHARTER DECEPTION.
Despite Much Fine Talk the Water
Department Still Goes as 1t
Pleases---Slow-Goi
Financiers.
NEW CHARTER DECEPTION.

The number Of taxpayers who are ac.
quainted with the bookkeeping at the
City Hall is perhaps comparatively small.
To most citizens the financial system Of
the city with its Sinking Fund Commits
sioners, its Board of Finance, City Col
lector, Treasurer and Comptroller, and
Water Registrar, it seems most COM
plicated affair On the contrary however
it is simple enough and readily under
stood If one will only take the trouble ~
look into its details. All n,nnevs with
are paid to the city eventually reach the
City Treasurer through these channels
All taxes and assessments through the
City Collector, all licenses, &c, through
the City Clerk, and all water ra.es and
assessments through the Water Regis
trar. The money is paid direct to
the Treasurer by these officials
upon the City Collector and City Clerk
Every receipt for taxes or assessments
which is given at the City Collectors
office, or every license which is issued by
the City clerk must be countersigned by
the Comptroller, who keeps an account of
the amounts the receipts or licenses re-
present, and at the end of the day the
treasurer's cash must correspond with
the amount of that account. The Comp
troller never handles any of the money.
LOOSE WATER DEPARTMENT METHODS.
In the case OF the Water Registrar
however, it is different. He pays his re-
ceipts direct to the treasurer and there is
nothing of the check upon MIN that there
is upon the City Clerk and the City Col
Iector. The Comptroller does not coun-
tersign the receipts which he issues and
no oJher precaution is taken to make
trr,,
urer all he has collected, as there is in
the case of the other two
officials. This state of affairs
was made possible by the old
charter, and was long recognized as
dangerous and unsafe. Accordingly
when the new charter was prepared q
provision was inserted, providing that
this careless manner of conducting the
finances of the water department. should
be done away with, and the moneys due
the department. should be paid TO the
City Collector in the same manner and
under the same conditions that other
taxes and assessments are paid.
The provision, however, contained a
proviso that the change should not take
place until such a time as should be desig-
mated by the Board of Finance. Soon
after the present fnanciers began the
mismanagement of the city's finances
they passed resolutions directing the
w ater Reg gistrar to make the change In tbs
method of collecting the moneys due his
department in accordance with the pro-
vision of the new charter, and
the taxpayers breathed easier When
the time arrived for making the change,
however, the Board extended the period
and the water rents are now collected in
the old way. For whatever may result
from this neglect of their plain duty the
people will hold the financiers RESPONSE
Bile.
WHERE THE FUNDS ARE KEPT.
When the treasurer receives the moneys
he credits them to the various city ac-
counts and deposits them IN the banks
which have been designated by the Board
of Finance as public Repositories. All the
| moneys collected for taxes go into the
general fund.-" as it is called. from
which funds are drawn for various ac-
counts not otherwise provided for, as
| they may be needed. This is the largest
| account the city has, and at this time it
is large. A small portion of it is in the
| Hudson County National Bank, while by
| far the greater part Is deposited in the
Second National Bank, where it draws
/ no interest.
| There is the assessment account which
| is deposited in the Hudson County Ma
tionaI Bank. The funds derived from
liquor Licenses, which is one OF the larg-
1 est in the city. is almost all in the Second
| National Bank, with a small portion of
| 1t in the Hudson County. From time to
time small portions of the license ac-
counts are set aside for specific street inn
provements which is designated as the
special street account. That small ac-
count is in the Hudson County National,
which also has the moneys which are
| provided to pay the interest upon the
| city's Indebtedness.
The moneys received for water rates
and assessments are kept separately in
| what is designated as the water account,
| which at present are divided among the
Hudson County and the Second National
banks, with the lions share as usual in
the Second National. All the large
amounts. which go to make up the sink
ing fund, are kept in the Second National
Bank. All these funds at present are
large, anu if the banks, which are using
them each day in their business and de-
irving an income from them, paid the city
| interest upon the balances the munich
palIty would be the richer by several
| thousand dollars.
| Arrested for Gambling.