The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1894-02-02
THE CITY'S FINANCES
Comptroller Hougn's An
nua1 Report For the
Fiscal Year.
DEBT SLIGHTLY DECREASED
Bonded Debt, Water Account Ex-
cepted, Is s13,461, 263.16-
Magnificent Showing,
DEBT SLIGHTLY DECREASED

city for the fiscal year ending November 30,
1898.
The report shows a slight increase in the
city's bonded Indebtedness of $349, 912. 80, or
an increase from s13, Ill $50. II to $13, 461,-
1868. 16, exclusive of the water debt.
While this increase in the debt really ex-
listed at the end of the fiscal year, still, it
was wiped out on January ], 1894, and with
it a slight part of the Indebtedness existing.
The increase was caused by the borrowing
of 100000 on 5 per cent. bonds in Septem-
Der to meet bonds maturing on the first day
of January.
The Board of Finance pursued an unusual
and unprecedented course when it borrowed
money for the redemption of bonds such a
long time before their maturity. 1t was this
act which resulted in the showing of the
apparent increase. Had the board pursued
the usual custom the money would not have
been borrowed until on or after December l,
which would nave barred the placing of the
sum so borrowed ON the list of bonded in
debtedness of the past fiscal years accounts.
The transaction at the time caused consid-
erable comment, and a review OF 1t and the
causes which lead to its consumrnation will
not be amiss.
On the first day Of October, 1893, which
was within the fiscal year S459,000 of bonds
fell due. On the first day of January follow
ing, $500, 900 more fell due. 1t was while
looking about for a purchaser of bonds to a
sufficient extent to insure the redemption of
the $459, 600 due in October, that a customer
was found who wanted all the Jersey City
bonds be could buy. The stringency of the
money market was creating havoc In imam
cial circles, and other cities found it impos-
sible to 1oat bonds at par or even below 1t.
The City of Boston was one of these. The
x-@ -~1 ~ rrao 1A0ylnd
while a customer was at hand to provide
not only for the October bonds, but for the
5000 0 batch falling due in January. The
board was about to advertise the sale OF
1855, 900 of bonds when the Sinking Fund
Commissioners appeared ON the scene and
declared their ability to pay $3.50 900 of the
October bonds and 800, 600 of the January
bonds. Here was S250,000 of the bonds pro-
vided for, and accordingly but 100000
worth were exposed for sale. Benwel q
EveriJt became the purchasers.
WHERE THE oND WENT.
They bought the bonds, it was reported,
for two insurance companies OF New York.
Of the $4,000 agreed to be delivered at n
| time required, S300,Q00 was. taken up for the
redemption of the October batch which were
| seven per cents at once. The $4,000 600 worth
| due in January were cared for, but at the
same time the money was borrowed in the
last fiscal year to provide for the payment
of bonds falling due this current year. As a
result the entire 100000 was chargeable to
| last years accounts, whereas, under ordin-
| ary circumstances, when money is plentiful,
| the S400, 900 procured in advance would not
| have been borrowed until absolutely neces-
| sary.
This action alone caused the apparent in
crease mentioned above, and prevented the
rendering of a report showing a decrease of
the debt of $50, 0S7.01, which would have
been the result had not the $500, 600 rightly
chargeable to the current years expenditures
been borrowed last year.
According to Mr.. Hough's report, the
bonded indebtedness on the first day of De-
cember. 1892, was $13, 111,350.17, while this
year it amounted to Sl3.46l, 263.l6. Tins
| Indebtedness is composed of general account
bonds amounting to 5 1854, 427. 80, assessment
account bonds to the amount OF 81, 74l,5OO
| and temporary loans bonds to the extent OF
| 1864, 335. 81, and Improvement certificates,
$91. 000.
During the year 81, 9S9, 920.05 was paid off
and certificates for improvements and bonds
were issued to the extent of 1889, $3.50 4.
| The debt of S13. 461 1868. Is is exclusive of the
debt OF the Water Department. In submit
| ting his report to the Finance Commission
ers, Mr.. Hough says:-
II nave the honor herewith to submit to
your honorable board the annual report of
| this office, with a statement Of the receipts
ana QlSDuTS6ul6uUS Ol uuC ClUJ uOdSuI y CA
| cepting water account, for the fiscal year
ending November 80, 1898; also a statement
| showing the financial condition of the city
| on December l, 1898.
THE BONDED INDEBTEDNESS.
On the first of December, 1892, the bonded
indebtedness of the city, excepting water
account, amounted to S13,l11 ,350.17, COM
| posed of general assessment and temporary
| loan bonds and improvement certificates.
| During the year the city issued bonds and
| certificates to the amount Of $2,239, 1913. 04
and paid 81, 9s9, 800. 05, leaving the bonded
debt at the close of the fiscal year water &C
count excepted, s13, 461 ,263.l6.
This is compoed off,
General account bonds.............. S7.9s4. 427 .s9
| Assessment account bonds........ 4.74i. 500. 90
Temporary loan bonds ............. 664, 33j. 81
Improvement certificates. 81 1000. 90
Tota. $13, 461 ,s63. 16
At the close of the year the bonded debt,
including loans and improvement certif-
| Gates. less sinking funds and cash to the