New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-01-07
LARGE SAVING PRACTICABLE.

Therefore. in order to escape, rather to
put off for eighteen years the extingushment
OF the debt the intention is TO burden ourselves
with interest charges equal "a per of
the principal. True. with mathematical ac-
curacy the whole proposition is worked out in
annual payments YET the result Will be practi-
caly as I have outlined II could pay this
debt in twenty annual instruments without in
terest, our obligation would call for S5,550,0D
annually. but S2.410,Oo0 in addition TO the
proposed yearly interest charges. This could
be done II the States revenues from indirect
sources were large enough but unfortunately
our present revenues are not sufficient for this
purpose. If as ] have indicated in prior mes
sages, however, advantage is taken of oppor-
tunities TO correct some very manifest inequal-
ties in our tax laws, the increased receipts
which would result would then in twenty years
provide for the total expenditure. But how can
this be accomplished. it may be asked? If the
State had additional revenues Of S5,J0O,OOO an
nually II could furnish probably all Of the
money that might be required for the first
five years without recourse TO the sale OF bonds
or leyies upon the localities. During the last
I'VE years of the work there will be OF course
a necessity for such sum may remain UNI
PAID. or an aggregate OF about S75.Oho,o0o-
The payment Of interest II the bonds were is
sued under the referendum plan would take
nearly two-thirds Of this new revenue II It
We're 10 be paid annually, and therefore no saw
ing would result. II is therefore necessary
that the interest should be deferred. that is.
the bonds 10 be issued should be Of such a char
ecter that the principal and interest might be
paid at maturity. Such bonds, however. might
NOT prove attractive to investors. and It would
be necessary therefore to have recourse to the
lul the plan have in mind for the best method
OF financing this public Improvement The defer
nent Of payment Of interest should not alone
ne our object. No large sum OF money should
De on hand until the necessity for its use
arises. Assuming. therefore. that the localities
VIII he called upon 10 bear this burden, the
proper financing Of this loan would be by the
issuance Of bonds upon which there would be
the smallest possible interest charges. AS
Stunning that new revenues Will be provided and
mat the period of construction WIFI be ten
years. S25,o00000 could be paid by the State
oy the end Of five years without levies upon
The counties. II levies were then made for the
remaining five years of S10000O00 annually
upon the counties in proportion TO their as
sessed valuation. this. with the continuance Of
the states contribution OF S5.oo0.000 annually
would provide the whole sum that is necessary
lor the completion OF the work Bonds could
De tnen issued which would represent the ag
gnegate OF principal and interest and could be
gwen 70 the localities in return for their levies,
provision being made for their retirement after
we State's primary payments for ten con-
secutHe years had been completed The period
Ior which these bonds be issued is but
s1tghteen years, because OF the constitutional
limitation