New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-10-25
CITY FINANCE
Continued from frst page.

-r.e6 20 purchase S30.oo1000 OF reve-
. bonds bssring interest at per cent
= ennun This acquisition OF funds
s-.hled the Controller TO carry on bust
-.ss for the remainder Of the year. The
-.,s If such a large amount OF revenue
s,,as. however. played havoc with the
rn-it to which these bonds are permitted
- be issued under the provisions OF the
city charter.
Ru. even with all this money at his
.,snossI during the last three months of
49, wear the Controller was unable 30
-ssund all that had been diverted during
she preceding nine months from trust
h5nds and from the proceeds of the sale
n corporate stock and assessment
hands. At the end OF the year. accord
,nx 70 the Chsmberlain's figures, there
xss still unrefunded S6.oo1. 6o4 OF the
amount so taken, and the records do
not show that this amount, or any part
n IL. has since been returned TO the
accounts from which ii was taken in
1907. This Chamberlain's weekly cash
statements also make IL plain that S.
1885 was taken from receipts in
tended for expenditure upon the current
wears budget. Both these amounts
were used to redeem revenue bonds is
sued in anticipation of the collection of
taxes Of years prior to 1907 in excess of
the tax collections and other revenues
available for their redemption
DETAILS OF THE METHOD.
Il bscame apparent to The Tribune
after an examination OF the Controllers
annual report for 1907 that TO find out
the exact method by which the city's
finances had been administered during
the year Of the panic it would be neces-
sary TO get at the weekly. monthly or
quarterly details Of the cash actually
received and paid out OF the city treas
ury IN order to show the sources and
dates Of receipts and the purposes and
dates Of expenditures. The question was
where 10 get this detailed information.
Il was. OF course, not to be had from
any officially compiled records. Under
section in the charter il devolves upon
the Chamberlain TO prepare each week.
for submission TO the Mayor and for
publication in The City Record a de-
tailed statement OF all moneys received
and all moneys paid out. with the week
~ cash balance to the credit Of the city
treasury.
A thorough analysis Of the ffty-ons
cash statements published by the Cham
berlain in The City Record" during
1907 made il possible. though il in
yolved an enormous amount of careful
work, 10 compile from these weekly cash
statements an exact counterpart of the
records contained in the charter report
OF the Controller. but giving receipts and
expenditures during the year by weeks.
months and quarterly periods.
The Tribune's segregation of the cash
receipts ana expenditures of the city
treasury for the twelve months Of 1907
Is given in four quarterly periods. and
an effort has also been made TO draw a
Clear line Of demarcation between the
amounts received for and expended on
account OF permanent improvement. as
essment and trust purposes on the one
Ede and the amounts received for and
appended upon administration of the city
government on the other
For purposes Of illustration two sepa-
rate tables are given, In which are in
GUIDED ali the transactions OF the city
treasury for the year. The first COM
pilses two groups-cOrporate stock &C.
counts, into which are received the pro-
eeeds OF the hfty-year corporate stock
bonds sold for permanent improvements
ana out Of which is paid the cost OF all
permanent Improvement works, and spe-
cal and trust accounts. into which are
paid the proceeds OF corporate stock and
assessment bonds sold for assessment
purposes. assessment bonds collected and
uust revenues received, and out of
which are paid the cost OF assessment
work the redemption OF assessment
bonds and various special and trust dis
eursernents- The second comprises all
The receipts legally applicable to defray-
Ing the cost Of city government and all
Expenditures made upon this account, so
undivided as TO indicate the source OF
receipts and the purposes of expendi-
lures.
HOW IT WAS DONE
First, the cash balance on hand in the
city treasury at the beginning OF the
year was apportioned TO the different
groups Of accounts. The charter report
figures, as has already been pointed out.
demonstrate that practically the whole
cash balance was hypothecated by war
rants issued in 1906 and paid in the year
ioio"lng- After charging each group
Win that part Of the opening cash bal
ahoe necessary 70 pay outstanding war
i@hS from the previous twelve months
'helaoed in their expenditures, $9S9.529
remained undistributed. This amount
has been charged, in The Tribune's seq
'essuon, as z receipt against corporate
STOCK accounts, because the charter re-
port figures show that at the first OF the
year there ought to have been S2,o26,-
Oop IN the city treasury from the sale in
me previous twelve months Of corporate
slock bonds that had not been trans
terrec 70 the accounts for the purposes