New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-08-02
GREATER NETWORK BONDS.
WHAT BROOKLYN FINANCTERs THINK OF
THE SCHEME FOR FUNDING THE
cfTY'S DEBT.

SOME ARE IN FAVOR OF THE IDEA. WHILE
OTHERS ARE STRONGLY OPPOSED TO 1T.
AND GIVE REASONS.
Tbere is much difference of, opinion in financial
circles over the proposition IN the drea'er No"
work. charter to issue interminable bonds for the
funding OF the citys debt Several hnahcerS )"
Brooklyn talked on the subject yesterday.
George r. Southland the president OF the Frankhn
Trust Compony said II do not think II good
pIan Bonds running for definite term ana
sinking fund for their redemption Is the pt"'
method Thus money for bond Is procnre ou,'"e
its life There would be difficulty about selling
such bonds Investors would want to know wheh
they would get their money back. The idea Is eA-
detrimental and would pot be popular
, slias H. butcher NE president OF the Hamilton
Trus, Company said he had not had much time 10
corsid,r the matter, but regarded the proposition
fayorably. ,,.,
Frank Bailey the Vice presdcnt OF the Title
Guarantee and Trust Company, said Ihis ooho
plan does not appeal strongly 10 me- ~ see"'' :"
me that the issue Of bonds by az large ha'ie'p
itv as Greater New-York In small amounts 80 hs "
Inc taken by investors who now deposit In savings
banks would result in a reduction III the ''.e "a
interest paid by the city and the popu'arizhs VI '
c,tv bonds among the small investors when you
consider that there are people having depoh's
in saving banks and insured In lite insurance 'o''
pe MES than a number equal to majority Vi 'ote,'
of the United States It be readily seen thA u "
wise on the part OF the municipality TO cater u '
email investor. 1t may be that small ihVeS'o'"
would be willing to buy nterminabie pohds al '','
,ovy rate of interest provided that investments III
tbom became sufficiently popular to make the bonus
marketable under any conditions In such even.
bonds would be eagerly sought Tor because '"',
could he used as currency In small TRANSACTIONS al"
would all the time be bearing small amounts OF IN
hat
rather a dificult problem to decide now. ihe'e -
- ,onaorcv for rates OF interest to go downward.
pr;ush eorsoIs now net only per cent whereas
New-York City is compelled to pay S'a l"e'e a.
other reasons for the difference IN interest," P"' W
tho Two bonds than the difference IN rates pe."ee"
the two countries 1t is clear to me that 'hat o"e,
oroe is due IN the main to the failure to make l,
easy for small investors TO puy poh"s vi VIC"
municipality or general government Inc o,,'S
dongor in this plan that | can see Is that at the
,ar, wa may issue many millions OF bonds bearing
the same 49, per cent interest ana "heii VIC ~"
redeem them as is hoped TO occur IL '"'s"' "
roo.searv 70 nav as high as 30 for them FOR the
ordinary investor far as can Sec an i''ue'''o
bond Is az good forty-year oohu aS '"o ""'
meyer lives to see II mature anyway.
craral {, r Christensen, the president OF the
prootlvp Trust Company, said: Il am In favor OF
the citys issuing an interminaoie paper i"e
credit of New-York stands so hlgh th'' Suon q
hopd could he readily issued ana kept III MS"
market value But should object II the rate Is 10
no fixed once for all the time of issue IL shoulo
no subject TO change upon due notice say siA
months | believe In consols and THINK that 'he
plan Is correct in principle.
Edward Johnson the secretary Oh the re'pe'
Trust Company said: 1T Will reileVe the CITY i'0
time TO time CT the necessity or refunaihs anu win
o,so give il an opportunity keep them in good mar
he, value 1t may be that savings banks Will ho'
dc hay vi
s.n,n,r The interest should be fixed IN the begin
n,ng 81 a fair medium rate. Then holders II tney
20, tired OF the interest. can come ana se 10 tne
cttv when Il makes cali for IT'S bonus INC ptan
Vii do for the city bonds what Is now oady hesuso;
7, vii give them quotation and regular market
va,re The option of selling lies with the seer' mos
the city. and makes makes. the - oq hs permanent
as .t,n - 4nkins the president Of the First Ma
ionai Pank said: The interminaoie Donds Wouio pe
something similar to the IN cosos wants money ne
~oes into the market and sells. ana wnen ne mas
nnonev 10 invest he goes into me market anu puys'
IlesS hs city ~ Greater New York wanted to re-
lie nv NJ these bonds il would simply go INTO tne
market and pay the market price ior tnem; ~, ce t,v
t%n trobie and expense OF constantly advertising ie
hnnSs or paving bonds Cities like New YORK ana
Brooklyn VIII a%sys hands haNs would be- always sal
oble like New-Yoik Central stock ana wouiu ne
"rrted the same as the English consos are every
day You can always go IN ana MONEY! ney rcnsns easy"
.nnsfimes for very long periods: When sucn
period periods come. the CITY shoun 70 ,'u ,tns
~ n cold them | cannot any objection 10 tne
new pr oposal Just we have bonds raining que
he rot AZ Under the system proposed. the CITY couu
huv in the bonds when money was low anu sen, II
il chose when money was high Athougn ~ 4, Is "a a
new departure in this country, az saiu cahio' see
,ba cliy OhipctiOn