New-York tribune., 1906-05-10
DEFENDS CITY CREDIT
Mr.. VANDERLLP SPEAKS.
Sasiags Bank Men Meet-Franchise
T0r Fight to Go On.

- .r,r.eenth annual convention Of the Savings
-. Association Of the State Of New York be-
=, Yesterday morning in the Chamber OF Com
--,e " Bayard Van Rensselaer,. the president.
u.s rhe gathering 20 order. In his welcoming
sz-.ss gr Van Rensselaer, told OF the large gain
-, ,7uuaber of accounts IN the savings banks OF
ne state II the last year, and also said that
.,,,nt -. due depositors from the savings banks of
- stste had increased over S93000.o0o in the pre-
,ious year
- president Van Rensselaer, said he thought il
,sId he q mistake 10 continue this work II il
would mean dragging the association into party
politics
william II S. Wood president of the Bowery
Savings Bank. chairman Of the committee acting
sor the repeal Of the Franchise Tax Law, advised
carving en- The fight until the Law was repealed.
Tben followed a vigorous discussion. in which il
sppeared that the majority Of the speakers favored
keeping Up The fight. and it was so decided.
Mr.. YANDERLIPs SPEECH.
Frank a Vsnderlip, viee-president OF the Ma
,ionsl city Bank Of New York spoke on .'NScw
York Citys Credit" lie said in part:
IT'S not alone in newspaper headlines that basis
4 io o o Ssr York to % coTni,iaS g & en@
cea-. ~ - m -eF1oc+5 -, ~. ,l1ro, ,I
sar New York City bonds has been telling a dis
Soat $4,000 of bonds bearing ~ per cent inter
esI. and 10 sell them at par or above Then its
per cert bonds. then 3is per cent, and recently IL
has found il no longer possible 10 Put out 81 per
cent bonGs- ana tfe rate mas been adNanced 20 4
per cent. rate beyond which the charter limits
These per cent bonos were SOLD az a premium
bit the market has not been bGoyanL. and the pes
e for less premium than did the recent issue.
This changed condition. this increasingly unfa-
vorah nasts upon which the city Is forced sell
c5anCei situation in the money market itself The
Tste for money. however. b. no means fully ac
counts for the present state of the markets meas
IRE Of me ciry's credit There are to-day many
railroad PONDS Seit.siE at higher prices fhau the
bonds of The city Of New York. although the rail
abe tax exemption features which The city bonds
Taking the situation at the beginning Of the pres
eat yesr, that being the latest date for which de-
a. ns5res ,sl 'e ral Go ~e @ nc @ t1at sross Lunoeo
dsnt stzIlolns = 1lst SeNWti'sp "a must AZ once
c-& pH EI000ool0 from that however for the city
tressurv 10 the credit of the various sinking funds
A tota Of S49l,eft09 OF outstanding debt does not
fr--l,er -s57,-oT of sss llo nno f bo77ds Sor tie
payment OF which specific revenues were pledged
iong before tie creation OF greater New York.
These revenues are to-day much larger than are
necessary for The purpose. and taxpayer viii be
called upon 10 contribute oy direct taxation 81 for
their redemption That brings our total down 70
S2e bur e % o5 5y oo make . further ;r Teductions n @
" tLe ai'4I s-o''''V DolIus "e1s issuel 70 pto
Tloe flnos 70 build tle suoWaT. no one doupts
70 take care Of that obligation No one believes
Slat mere : neeo IoE nose Denos 20 become 4
orect ouroen upon taApayeTs, Il ms brings as down
not incurred without great increase Of the citys
There has been value received. There IS included
in rha- total bonds issued for dock PURPOSES The
return equal 10 payin interest on S56050o66 Of dock
bonds and providing fully for sinking fund for
thsn i250 $4,000 Of bonds the interest and sink ns
fund requirements Of which must be provided for
That is the real debt whose burden is felt by the
s1paseFs II Is o..Iy one-thra oI the sum thar IS
public mind. Il ought 10 be regarded small OBJ
population.
GIFTS WEALTH GREAT
Bevsrtng 10 the other side Of the account. Mr..
Tsnderlip said:
Let Us look FOR a moment a. the other side Of
a5sipai corporation that has created this debt and
p-ecged us faith and credit for its payments? In
lnteAgence and financial integrity surely Il IS a
community which can challenge comparison The
increase Of the city's debt mRy have been rapid.
tlt nowhere else on EARN at any TIME IN history
can be found so great increase IN the value Of
dozen years. Nowhere else is there a city growing
50 fast IN numbers. and nowhere else are building
activities great or SO substantial i we regard
the city's obligations as large let Us look at the
ssv Is oregixtF Of the income OF ne national gov
Eru,nent- The revenue of the city of New York
today Is greater than had been the Of the
whole national government IN any year in its
history up 70 1864 Cne-sixth Of the entire banking
resources OF the nation are centred IN this city
Ne have here the financial centre Of the country
cal integrity ot me city s obligations the potent
weight of sound financial judgment that would be
dereloped would be overwhelming-
The expenditure Of some Of the money that has
has, IL some instances been unwise. In some eX-
'ravagant. in some dishonest. Granting the very
worst OF all that however still have situa-
uon in which the citys integrity is safeguarded by
charter provisions Of such a character that the
cty's obligations are among the most secure OF
ihose issued by any body polite in the world.
Perhaps some Of you are afraid Of the socialistc
much less fear from any prospective radical po-
Utica Development than some tinnid hnanciers
imagine.
believe one Of the greatest mistakes Of city
fnsnceerirg has been the issue Of long term bonds
curing tins period OF DEPRESSED municipal credit
par I VIII make prediction
Before ren years more have passed and in the
eseAt oi me rea!lzatcn o. certain conungencles
toward which conditions seem now inevitably work
y the city New York VIII selling at 125. The
contingencies by which 7 limit this prediction are
These There viii. I believe be a rapidly widening
.lefAst Tor New York securities. Strong boxes OF
tl1s city VIII 30 the future contain all OF these
return reason why should not come
% nave an internatonal market for them. With a
,L,osaenitg market VIII come a marked appfecla-
len Il price, bur the time viii eventually come
Ener the city viii cease to float the new issues
LV e5IallN men Lat Deen Ia
ls-lsuc There viii be quicker market response 70
g,-ef an escape from tho pressure OF new Donos
~ nc suspension Of new issues VIII De IolloWso
pg another influence which Is certain TO have q
most buoyant effect prices. If new issues should
tonai debt limit or from other reasons the de-
ilslds for the sinking funds could then be met II
Under such conditions the city ought now TO issue
nor time obligations and not burden future gen
.rauons which viii more clearly understand the
Tle strength OF her credit, with long term high
There IS believe one important reason why
tlefe has been 2 failure TO comprehend the true
merit of New York City's obligations That reason
Eeeping. Fortunately that situation is clearly
by the present Controller.
ae need only better understanding OF Inc true
tiFelgth of New York City's obligations When we
nave that the market quotations OF New fork