New-York tribune., 1902-03-30
TO SAVE CITY MILLIONS.
MR.. CIRCUIT CONFIDENT THAT HIS BILL
WILL ACCOMPLISH ITS PURPOSE.
HOW 1T WILL wORK-RUMORs OF OPPOsI-
TON To ITS BECOMING A LAW-EM-
PLOYES IN TAX DEPARTMENT
AGAINST 1T.

Controller Grout is confident that II his bill
now before the Mayor. moving up the collection
OF taxes from October 10 the beginning of the
year becomes a law the saving TO the city will
amount TO nearly s.. 600 900 year with the law
in full operation. The heavy taxpayers are
likely TO oppose the bill il is said. and rumblings
of opposition 10 it already have been heard at
the Tax Department The employees in the Tax
Department do not want it, because 1t will make
this years work fully one-half heavier than
customary, and il will shorten. IL Il does not
entirely abolish. the summer vacations for
year or two until the law begins to work itself
out.
From scientific point of view. I'm the opin-
ion of experts. there is little doubt that the bill
is a good one, and that ultimately the city
would be great gamer by such law. From
the beginning OF the year until the time it col
lects its taxes the city is heavy borrower of
money. With the tax collected IN the fall il
pays it's debts and then starts in aglin 10 ere
ate new obligations. With all its wealth it is
IN n sense dependent upon the large financial
institutions for its money to run the govern
ment and TO meet its payrolls This year il will
borrow between $G0.OOO,OOO and S7O.OO0.OOO at
current rates OF interest The rate of interest is
seldom more than 3I2 OF per cent In 1901
this interest bill amounted to a round million of
dollars. This is To pay interest on :he money
borrowed In anticipating the taxes which are
not collected until October. This interest ele-
ment increases as the budget increases, and in
stead Of conditions becoming easier they grow
worse time goes on. ParadoxiCal as il NAV
seem. the city can add to its resources and les
its tax rate and yet still increase the burden
Of the taxpayer. If with the increase OF re-
sources came an increased budget with it would
come an increased appropriation for interest on
moneys borrowed 10 pay the city's expenses
which would have TO he paid by taxes
Controller Grout has planned his bill TO change
all this. and enable the city to avail itself OF its
resources. II is his theory that the city should
carry in the banks large balances. and receive
interest. instead of paying 1t QUITO get the
money and then spend it, not spend ir nd tben
get IT, To do this II will be necessary 10 col
lect the taxes near the beginning of the wear
instead OF in October, November and December
Mr.. Grouts bill covers forty pages of manu-
script and is designed 10 cover the around
minutely. Under the present law taxes he
come Hen the Hrst MONDAY In october each
year, and the penalty for non-payment begins
on December !. Under Mr.. CIRCUITS plan taxes
will. after 1909 become lien after February /
OF each year, and the penalty for non payment
will begin on April Of each year From IN3
to 1909 the transition is 10 be gradual as follows:
1905. 1904 and 1903 taxes yill become a lien on
the first Monday in February, but no penalty
for non-payment will attach until October /
Taxes during these three years paid before Au-
gust will be subject TO discount at the rate
of per cent a year. and this is expected 10
induce a large number Of advance payments.
lien the first Monday in February and the
penalty for non payment will be charged after
August i. with the provision that all taxes paid
before June i shall be subject 10 discount OF
8 per cent a year. For 1909 and thereafter
taxes Will become a lien on the first Monday in
February. and the penalty for non-payment will
attach after April L. Beginning with and after
1909 taxes paid before March / will be subject
10 discount at the rate of per cent year
10 be computed 10 the first of April next sue
ceeding.
The Controller thinks that with this law In
iull operation the saving to the city will be not
less than S2.Wo.OOO year. The period for