New-York tribune., 1908-01-17
ATTACKS ALDRICH BILL.
Mayor Writes Senator Criticlsing
Clause Barring City's Bonds.

Mavor Mcclellan is opposed to the Adrich
currency bill in its present shape and wrote
Senator Aldrich yesterday calling attention TO
features of the bill which seem TO eliminate
the bonds of this city from those which may be
accepted as collateral by the Treasurer of the
United States.
The Mayor says that while the bonds of this
city are barred railroad bonds, naturally much
less desirable as collateral. may be accepted by
the government. He says that it may have
been through inadvertence that such proVl-
sions were included in the Aldrich bill. He was
ready to go to Washington to attend a hearing
on the BILL if there was to be hearing. As
there is not he sent letter which is in part
as follows:
the tinted States may accept with the approval
of the Secretary of the Treasury, security for
100000, bonds other interest bearing obligations
of any of the United States. any legally
any city or county in United States which has
OF fifteen years and which for period of years
previous TO such deposit has not defaulted in the
Of any | funded debt & a1thorzed 70 be Contracted By
II and which has at such date more t9an mar Nv twen5y my
thousand lnhabltants as established by Ine lasl ma
tonal census. and whose net Indebtedness does
not exceed 10 per cent OF the valuation OF the tax
The section further provides that first mort
street railway bonds, which has paid dividends OF
o @ on s eGfe f espa stock or period
of than five wears previous to the deposit
The term met Indebtedness which is applied in
the cities and counties only includes not only
funded debt but temporary bonds or notes issued
in anticipation OF the collection of taxes, bonds or
notes issued to carry over arrearages of taxes TO
be collected later and which arrearages in all
cities are charged with high rate OF interest. and
also includes liabilities due contracts let and to
lands authorized to be acquired, but not yet PAID
for.
The act as drawn therefore eliminates from
of the United States all the bonds of the city of
New York all the bonds of the city of Chicago
the country. This that first mortgage rail
road bonds Of the class described will be preferred
10 the bonds of the larger cities of the country
roads of the contr. T Il know of hut one execution
are encountered by net Indebtedness of more
than 10 per cent of their value. l do not believe
OF course that the act is intended to discriminate
in any against securities issued by some of
our larger cities and | assume, therefore: that
cities, used it meant to include only
such Indebtedness that which is counted against
the DEBT OF each city In determining IT'S borrowing
capacity under the constitution of the state in
which the said city is located.
fore the Senate Committee the words funded
are used in line 16 OF Section ? and the words net
Indebtedness appear IN line ls the latter meaning
the bill be amended that the bonds of city
state in which the city is located may be accepted
against circulation.
valuations of properly, together with the net in
debtedness of some of the largest cities in the
OF the Department of Commerce and Labor, Blu
reau Of Census. the condition shown being that at
the close of the year 1905 the latest punished.
The net debt given is that which is cassed under
fhs t;ts Of FndeH Debt Rfnenge ana Tbe Lax ak
sessed values include both real property and per
have tptTpdi,ced contemnates that both classes of
property viii be considered in determining the met
Indebtedness" under the 10 cent limitation pro