New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-05-15
ASSOCIATION
COlIMON SENSE AND FINANCE.
CuAMBERLAIy AGAINST CONTROLLER
WHY SHOULD THE CITY LEND AT Low RATE
OF INTEREST AND BORROW AT
HIGHER ONE1

Tho ,neetjnr ~ the sinking Fund Commissioners
Yesterday was cnvencd hv a set to- between Con
troller Myers anu City Chamberlain Grain some
routine business was transacted and the Commission
was about Ia jOurn. when Chamberlain Cram taxing
up a revenue bond and check drawn 10 the Con
trollcr's order by TIE Greenwich savings Bank for
$50 900. the bond to run until October 20 drawing
per cent ntcre>l called the attention of his fellow
Commissioners TO the transaction.
The city Ia, money in different banks and trust
COMPANIES Mr. Grain said (which draws only =
per cent interest The Holland Trust Company has
10000 Of the city's money At = per cent and tins
same company has loaned the city 10000 for which
we pay II > per In my opinion this l. bad way
Of doing business and believe 1t to be the duty OF ih'
Board To examine into such matters
The remarks of the young Chamberlain plainly
rettled the Controller. When Mr.. Grain had finished
>pcaAin. Mr.. Myer, said with biting sarcasm; 90
admit The great ,aeacity and brilliant financial ability
of the Chamberlain. but have no hesitation IN saying
that this is an improper matter to bring before a
public session Of the Commissioners. The trouble
with him giving Mr.. Grain look of PITY Is that he
doesn't know anything about finances and doesn't keep
himself posted He Is ignorant OF the policy Of the
city. which does ~ business an Imaginary basis 80
far as capital IL concerned. Tie city's policy j. TO
borrow money on the best terms II can. The former
Chamberlain, understood this. but this present Cham
bcraln apparently ignorant Of 1t. 1t is necessary
for u to keep money for contingency. The money
market few days ago went up to 10 per cent
made an offer today to borrow 81 OOO, 900 at per
cent and couldn't get it,
Mr.. Grain did not turn a hair while this rebukc
being administered, but replied quietly d" thank
the Controller for the information he mas delivered
The Controller think 1t impossible 20 get loans At
les than per cent. an1 II - for this reason That
felt impclIcd - call the Boards attention L. the sd3
jcct. fhe city has 52,O0o,OoO In the sinking Fund
contend that il is extremely unprofablc 10 let money
out at 20 small rate and then borrow at 30 high
iatc a. per cent.
Is i, policy 70 drain the city treasury ?"
asked the Controller angrlly. Why don't You get
better rate than J." per cent on the money YOU
is all Won get. Why don't You get more Let
have a vote on II" ne added. in gentle tone.
want 70 see the Wembcr, of this Board 20 on the
record
The Mayor suggested that the excited adhcrcnt,
Of opposite policies should each prepare clear STAT"
nent of ms views and submit u to the Boird today
Chamberlain Grain made tins explanation OF lIN
position after the Commission adjourned The cty
has binds of deposit. He'd respectively
All this money, which amounts u about 600
is deposited ~ fortyiolr different banks and trust
customary for the city TO borrow money revenue
Commissioners Ia loan the city money on these bonds
A. trustees their duty 10 obtain a high "A rat"
Of Interest ~ can be procured with safety The
city j. now borrowing money revenue bonds bar.
ing 3. > ana per cent Interest. II j. said mat
this j. the lowest rate Of interest which can be got
In the market II this Is IL /, proper for the
Sinking FUND Commissioner, to consider If they
cannot obtain a larger rate than = = per cent. II
on the other hand . ] = per cent j. what money !,
ought TO II is wrong 20 borrow 3. = and per
cent The ely has borrowed on revenue bonds sine
May 100000, Of which 100000 pays 81 per
cent and 100000 3 per cent
When the Controller was asked for his Views In reply
10 Mr. Grains, he said q" Life is 100 short. The
Chambcrlans ignorance Of the financial affairs Of this
city Is lamcntablc."