The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1892-04-04
MDHRMOl2'S FINANCE,
More About How He Saved
Jersey City from
Bankruptcy.
TAX LEVY AND COLLECTION
Sound Ideas in His inaugural Adj
dress TO the Finance
Board in 1888.
LEVY AND COLLECTION

at is a generally accepted opinion that
certain notifications in the form Of our
local government in the interests Of econ-
omy are desirable"
Such was the remark made by Allan
l.. McDermott upon being elected Presi-
pent of the Board of Finance at its meet
iig on December 5, 1888.
Mr.. McDermott's attention was called
10 this remark yesterday by q JERSEY
CITY NEWS reporter, and without a mo-
ment's hesitancy he said such WAS my
opinion then. Such is my opinion now"
1t was at the time the above remark
was made that Allan L. McDermott
stepped forward and took charge of the
city's finances.
Marcus Beach, Simeon Smith, Marina
duke Tilden and Otto Witsch resigned
from the Board of Finance. They fed
as they thought from a sinking ship.
Had these gentlemen remained in office.
the financial crash would PROBABLY have
come. but fortunately Allan l.. McDer-
mott was sought out by the people. and
given control of the finances of the city
as President of the Board OF Taxation.
Upon assuming this responsible position,
he asked the assistance of the public gen.
orally in aiding him to put the city upon
a sound financial foundation, He asked
Tux payers for suggestions, and declared
that ne would adopt them if they would
produce the desired results. He wished
to act in concert with them, II in this
.- L. .-.-~ tI,-;, a4aEda,a g
TEEN and assistance.
A BAD FIX.
There was a temporary Indebtedness OF
So, 900, 600 to be met. Simeon IL. Smith
aud his Republican colleagues believed
that the crash was inevitable. BY re-
signing at the critical time, they hoped
TO throw upon the Democratic party the
onus of the financial wreck. Unfortun-
ately for the Republicans Allan L. Nc
Derinott saw through the game. His adj
dress to the members of the Board OF
Finance at its meeting December 5, 1883,
shows what his feelings We're. Here it
is in fuil:-
.'By IA provision in the city charter the
general management and care OF the
finances are committed TO this Board. NO
Guy eau duHauC6, Ill buC uldLldSculSoo Va
whose nance the element OF uoubO Is
encouraged. We are not here TO coutem-
plate the causes of our city DEBT. eXcepts SO
far as contemplation OF those causes
warns us to guard against Extravaganza
in the future municipal action. That the
debt which we are called upon to meet
was TO a considerable extent created in
advance OF the demands of public neces-
sity does not alter the fact that The credl-
tors of the city were without voice In the
creation of that debt. The credit OF a
city is TOO SEN tive a nature to be treated
as q toy or tool. Any appeal which bor-
ders upona proposition of d1shonor In
the matter Of an obligation should be
met wi tn contempt, for such appeals con-
tain a sentiment of more than ordinary
grossness. A wise cooperation OF the
debtor and creditor founded upon a
mutual desire for a decrease of our in
debtedness and a rigid maintenance of
our municipal honor will, l am confident,
bring the desired relief.
THE {
"The question Of retundiug our city
debt is one which demands and will re-
ceive careful consideration where the
debt can be refunded at a lower rate OF
interest than il now exacted, the wisdom
of such a course is self evident. L refrain
from advancing detailed proposition1n
this mat .er, because l believe that the
plan to be adopted should BIZ the outcome
Ol 0ul ohItOd OtAAON
however, conceive Of a more effective
method of attacking the prospective
value of a bond to bear i've per cent. In
terest thar to assail the credit of an eX-
isting bond bearing a larger Fate OF III
teresl which it is desirable to retire.
1.-The experience of certain cities in our
State teaches us that the proniptpayment
of municipal obligations cannot be met
BY u vacillattng policy without the ac-
compartments of disgrace and ruin. 10
those who, by reposing confidence III this
municipality, have become our creditors,
Icon1dently say that the obligations of
Jersey City will be met as they mature,
every dollar Will be fully aud honoraoly
paid, In the performance of our duties
we are entitled TO the aid OF all our citl-
gems. Any proposition which encourages
q belief that benefits can accrue TO the
citizen who neglects to make prompt pay
ment of his proportion of the public bur-
den is destitute of honor and good sense,
municipal government having its origin
in necessity, imposition OF taxes is tnevl-
table.
THE TAX LEVY.
I'm fixing the lax levy OF Jersey City
there are but two rules to be observed.
We should place in that levy an amount
which will meet the Obligations falling
due within the fiscal year without In
creasing the bonded debt. Secondly we
must determine upon the smallest sum OF
money with which the other require
ments of the city can be met. The total
having been ascertained, it becomes our
duty 10 impose, and the duty OF the
people to furnish the amount thus de-
terlnined upon u in Il spirit OF honesty
and economy.
Taxes having been determined upon
within a reasonable time should
be enforced. l believe in the collection
of taxes through the medium OF the
courts. Actions at law for taxes would
be unpopular with those who desire to
impose this share of the public burden
upon their more prudent fellow citizens
who make prompt payment. The pres
ent plan of collection by Advertisement
and sale contemplates that the property
owner shall be deprived of his property.
and there would be no greater degree of
severity in the proposition of a Judgment
upon which execution might issue AFTER
the lapse of u period equal to that now
given 10 redeem property SOLD for taxes.
In this and other matters | would recon-
mend that this Board net Ill concert with
the public spirited cifizens who are now
In an organized body considering the
question OF Legislative relief"
THE WATER DEBT.
.The water debt of Jersey City Is near
w 81 coo. 600. This debt should be met by
The revenue derived from the sale of
water. 1t is our duty not merely to re-
view the matters of expenditure in the
A Lucky Escape.
Fortunate is the man or woman residing in a