New-York tribune., 1907-11-01
A BARGAIN, SAYS METZ
Thinks City Lucky to Get Money
at 6 Per Cent N0tC or Later.

Controller Metz said yesterday that he believed
he had made a good bargain in agreeing to pay
nor cent interest on the 600 special revenue
bouds TO be taken over by J. i. Morgan & Co., ul'
National City and the First National banks. Thlf
syndicate also has an option expiring on january
IS for $50 coo coo of the same kind OF bonds
I believe that money will be just as hard TO raise
nm January 1b as II is to-day" said the Controller
Yesterday eff / am wrong, then shall have MADE
a bad bargain for the city. II am right we shal
have acted prudently in making ample provision for
the city's financial necessities OF one thing am
assured and that is that we are lucky 10 get money
at 6 per cent at this time
"Compulsory borrowing now brings out In strong
light the glaring defect in the citys financial sys
tenn AS every knows, we do not raise our
taxes In advance we ought. We horroW money
every year about this time TO defray the running
expenses of the city. and do not collect taxes to
pay our current debts until October l next. when
we again begin the borrowing. we did the year
before The taxes which have been pouring into
the city treasury since October are being used to
redeem tho special revenue bonds issued twelve
months ago The system is miserable one We
ought 10 move back the date for the collection of
taxes two months at n time until get It back TO
January J. and refrain from spending money for
ordinary uses until have collected them. It
will require special legislation to make change in
the system perhaps. but It ought 10 be done.
We've got 10 have lot OF money right away TO
meet our obligations That is why have effected
a sale OF the bonds 20 the parties men
toned. The salaries for October amount TO about
S4 900, and the interest payments falling due
tomorrow reach about S6.O0O00O I FREQ to
say that do not regard the business outlook hope
fully. Too many people have been scared into with
drawing their money from the banks and hiding It,
In doing so they lose legitimate interest on their
money, and they prevent the same money from
serving useful purpose in the channels of COM
merce. Just how long the scare will last one
can tell.
''On all the contracts that the city has under
way work Will be carried forward usual Be-
cause money is hard to raise is no sufficient rea-
son why the city should infct hardship unnec-
essarily Little absolutely new work will be begun
for the present, for the good that money is
hard 10 raise and we ought to be economical.
with reference to Withholding some OF the SAL
ary checks for three or four days, so to dis
tribute the liquidation from the city repositories
l wish TO say that II ought not to be considered
a hardship for any city enploye 10 be compelled
20 wait TWO three days for his salary. He will
get it in few days. The who kicks ought
TO be thankful that he has a good job If the dis
patches true a whole lot OF ahoring men this
winter will wish they working for as good
a paymaster the city of New York"
The forthcoming issue or $50 900 revenue bonds
IT was said yesterday would be divided into three
classes running one two and three years. respec-
lively or the total issue Sl0OOO0OO viii be in
pounds sterling. and at least that amount, It was
reported in well informed quarters. would probably
be placed abroad, chiefly In france
The placing OF these bonds abroad. It was pointed
out, will enlarge American credits in Europe. while
those placed here can be used as a basis for de-
posits of government money, releasing 10 that ex-
tent other bonds pledged collateral for such
funds. The bonds thus released could be used as
a basis for increased circulation.
The o!5 AZ per cent city bonds of 1857 advanced
yesterday 1921 10i. The old Is of 1917 were
weaker.
August Belmont sent a check for 100000 to the
Controller yesterday for interest on subway bonds
Mayor Mcclellan would have nothing to say this
morning the revenue bond conference with J.
u Mo-gan