New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-01-07
breastworks OF protection armed only with a
toy Ratchet and pOpgun pistol?
TIE GoTERNOR.s MEssAGE.


The foundation stone Of Governor Odell's
plan for financing the canal improvement Is an
additional revenue OF S5,5oOOO0 annually from
indirect taxation. The rest is matter Of book
keeping and adjustment Of borrowing methods
so as 10 prevent the accumulation Of unnec-
essary interest charges The Governor believes
that for the first five years the cost Of the i'm
prove1ncnt could be met by this income. The
work would then have reached the point where
larger payments would be necessary. These
would amount TO S15,OO00OO annually for the
subsequent five years, when the canal would
be completed and at that rate paid for. To
finance the payments OF the last five years he
would continue TO meet S5,0g0,OO0 Of bills an
nually IN cash, and issue bonds at the rate
of 100000 a year for the remaining $780,
100000.
For the discharge Of these bonds he proposes
n novel plan. Instead Of having them bear In
terest for eighteen years, he would have the
interest at per cent accumulate until the dates
of maturity fixed according 10 the calculated
ability Of the State to pay them off, some each
year after the completion Of the canal The
bonds would run from six 10 twelve years from
the time Of issue, and the last Of them would
he taken up seventeen years from the first Dor
rowing, or twenty-five years from the begin
ming Of the Improvement As these deferred in
tereSt bonds might not sell easily, it is proposed
10 issue them to the counties, which can adj
vance money for them from the proceeds Of
taxation from their bond issues, or from
the accumuatiOns Of their sinking funds The
Governor calculates that thus the entire canal
debt OF SOL 100000 could be extinguished in
twenty-five years from the beginning, Of the
work, with no other taxation than the pro
posed new indirect revenue Of S5,5Oo,OO0. and
oR 81 rs-biR
the State would pay out II the money was all
raised as required on eighteen year bonds.
This plan IS 4 somewhat complicated one
which, Of course, the Governor has not promu
gated without careful consideration and expert
advice. If the stipulated new revenue IS Sc
cured, undoubtedly q great saving Of interest
can be effected by arrangements for early ex-
tinguishment Of the debt. We do not see, how
ever why the income OF S5,5O0OOO would not
IN the seventeen years from the first issue Of
the proposed bonds 10 the counties, just as ef-
fectively extngush the S75,OOO,OO0 OF debt
when turned TO the payment OF interest bear
ing bonds, issued at the rate OF S15OOOOOo
year for periods ranging from one 10 seven
teen years. adjusted to the balance Of the
100000 income available for principal pay
ments each year. The levy on the counties and
the deferment OF interest appear TO be only one
may have special advantages which will be
made more clear by subsequent discussion To
carry II out two constitutional amendments
which the Governor notes would be advisable,
and another which he does not mention would
be necessary, II the counties, he suggests.
were 10 issue their own bonds to meet the
States levy. The counties IN greater New-York
are forbidden to incur any debt Yet on an ap-
portionment Of the canal cost they would have
to take more than half the States bonds.
These, however are merely questions OF meth
OF. The essential thing IS the annual raising
Of IS, 100000 Of new indirect revenue The Gov
ernor gives no hint Of how this is TO be done,
beyond & reference in another part Of the mes
sage 10 the injustice OF taxation OF mortgages
as personal property. He proposes no subsu-
tute mortgage tax, or other new impost but
| probably has something in mind which he viii
| subsequently suggest
What the Governor says about the need OF
new State prison, new reformatoTy TO take
the place Of the RandalIs Island House OF Ref
uge, relief for Cornell University from the OBJ
! legations incurred for the School OF Forestry,
the abolition Of grade crossings the extension
OF the forest reserve and other important mat
/ tiers Of State business VIII meet we think. with
general approval These topics may inme-
diately be overshadowed by the larger CUES
! ton Of canal financing, but they are worthy OF
the serious attention Of the legislature.
----------------