The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-11-03
.CITYS PART In TIGHT TIME
COMPTROLLER POINTS OUT THE
EVIL EFFECT DE- HOARDENG.

Nv 80
-
wnsr nc Comes 60 Selling Revonue Ronda
the city Cannot Advertise Thom and
Docs the hest Nc Can-City Employees
Nav CpnsIder Themselves LnClxy Men.
Comptroller Metz rave out a statement
v..terdav regarding the City's finances, the
i.sue of $40. OOO, 900 OF 9 per cent. revenue
Dopds and tho general situation. He says:
nm receiving numerous letters from cit
t.ers askiug me n they can secure any OF the
: psr cent. short time bonds and saying that
tbev could he glad to invest In small amounts.
This vas the same situation that resulted
,rr,eI ately after the recent bond sale. IL Is
.,mDlv y Case Of Il told you So" We cannot
, advertise revenue bonds and We do not
borrow more than we need for a certain
reasonable period.
Wber the money received from the Morgan
.vpdi, ate ~ gone and we are compelled Co
lssue further bonds I shall be very glad 60
haze every one who has money TO loan OTsr
IL 70 the CITY. II money in still 9 per cent.
NJ that time we shall be glad TO take It,. At
any ratio We will be compelled to pay the
rate prevailing at the time the tender 10 made.
II any one has got money to loan at less
than q per cent. we will consider taking the
matter up II l feel justified in borrowing more
ss thu time. OF course this refers entirely
10 short time revenue bonds.
The amount OF two and three year bonds
"a necessarily limited because they can be
issued only to cover the arrearages OF taxes
unoollected. and experience has taught that
that averages about $1,000. 900 annually after
the hrst year. As the city gets 2 Der oent inter-
Get on unpaid taxes. we still earn 1 per cent
difference for having anticipated them at
this time and getting use Of this money SO
FAR In advance.
realize fully that having issued the $780,
100000 revenue bonds at this time Ia a question
81 policy based upon judgment only, and
IL might he well for me to state the reasons
on which 7 base my opinion that IL In a wise
thing to do. ] I'm not a pessimtst and IL
anv one In this city has opposed the knock
ing- and destroying" OF credits I think my
utterances place me on record as in tina
class.
So far through the Wtthdra wal Of currency
RON tho banks Wall Street and banking
intgests have been hit specially. 1t has
NOT extended TO the commercial and manu-
featuring branches to any great extent.
Unless tho money h redepoeited and credit
becomes reesta blished and the banks are able.
through the funds so deposited. to make
commercial lOans. we will SEQ in the coming
winter a spectacle OF the mills and manu-
factories being forced to shut down for the
following reasons: The manufacturer has
got to have cash every Saturday, for his pay
EOINN. M1d nkH AOL u ~ AOI NAA INV HA-
teriaI on an average In thirty DAYS. In
certain lines. such as the wOollen and cotton
industries. goods are sold by che mills on
four. eight and twelve months time. This
means that the manufactures has got to
supply the cash for his payroll and hts raw
materials for the amount Of goods manu-
factured during the period over which the
buyers credit extends. His collateral Is the
instability of collecting the bills due him
when thew become due and the value of the
raw material used and in process OF manu-
faOture. Upon this collateral the banks
have loaned for years and the amount in
each case IA limited only by the amount Of
business a man has done or can do.
To-day the only collateral on which any
money can he raised. even at high rates OF
interest. II Wall Street collateral. that is,
collateral that can be turned into ready cash
40 once. which certainly lie not the case with
lime loans based on merchandise and credit.
We therefore have the peculiar situation that
the only interests which were being pursued.
and on which the light was turned. are
the ones who are able to borrow money, even
n 70 a lesser degree than heretofore. while
legitimate and commercial collateral. which
Is the basis Of all our business, cannot be
realized upon by those who have II TO offer.
IN Lne am situalIon reau es'A.e OWneLs ol
'uan o oa"n h@,sn ,h"S ;s -
and risar hscanAs M hank or commercial
institution can afford TO put out money ex.
rept where 1t can he collected Immediately
IN case Of need. The result will be and must
ne. unless money Is reueposlteu IN tnS uahAs
20 ioNce the empower 70 shut uoNh' ueVHus
ne mas not got sunlcleht otptaI 70 SNIry Ms
plant TOT Iour. elEht or WE'VE mohtns y n'
eshhob DorTOW the money Ouo WIN. whei
~" SHUTS Gown; 20 Iar as ne " cOhcerheu n'
loses inc posSlols PROM ahu .ue nhteIeso on
ms investment my his he'p; howeVer, u
'mt ON aosoiuteiy anu thers rs Nnere eh'
iromple IA gong 70 oeSih unless ma''erS sr'
reahJus'ed promptly;
hNery IN aVa'Hpte 'Ash urs"hI ITO"
osnkinS INSTITUTION. Whe,hsr u DC from !
savings psnk or commercial pHnk' u cease'
o DC productive anu no one sise can use y
TOT any purpose IL therelOre Ionows Una
ia "~lthdraWer can 90 % srsuually oon
same what ne mas WlchoraWh because She
money user ceases 70 earn wneh |" u lOoAe
NJ ana unless MS " income Con.inues ns
'Anhot add 10 ~ Dut must uraN Vi "S Prnnoi
pa, Tor necessary eApehses,
Just as surely as water MINUS Ns own te'ei
money docs the ehnle AulnRs hhu NuNOIy "
I'm iaeRVfre AnaQ mt RhanHA the fact IN Nnl