New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-10-22


Municipal waste and extravaganza
during the last four years have been
largely responsible for an addition OF
soeQ 71sO6G TO the city's gross bonded
ssht as compared with an addition OF
s934 6lO.61O in the preceding five years
Asunicipal Ynismanagement and the con-
slant rnisapplication of the city's reve-
rpes during the last four years have been
,arqeIv responsible for an increase OF
s12 1a5 2ls in the interest charges Tor
carving the addition 20 the gross
bonded debt, as compared with an in
r,.ese Of s.. lO7. .657 in interest charges
.o- carving the addition 10 the gross
bonded debt in the preceding five years.
The Milling up Of this enormous addi-
SO, ~ the city's liabilities during the
les, four wears. and the inevitable and
constantly increasing burden upon the
.sx revenues each year 10 provide for
SIS redemption, has been matter OF ad-
rrinistrative policy. the reasons for which
ne taxpayers have never been fully IN
srred. The startling increase in the
20 of carrying that addition 20 the
cty's liabilities during each ~ the last
four years has been a matter OF man
agement Of the city's finances upon
which the taxpayers have been kept in
complete ignorance.
A CAUSE OF THE CHAOS.
The Erossest kind Of financial bungling
and the fragrant misuse of powers con-
serred in the city charter for financing
the annual budget by means Of money
raised by the sale of revenue bonds
issued in anticipation OF the collection
Of the tax revenues have not only sad
died the taxpayers with excessive inter-
est charges. but have seriously impaired
the credit OF the city as we'll
The lack in the existing system OF any
legal method OF taking up revenue bonds
issued from year 70 year IN excess Of the
taxes collected 20 redeem them is 20
some extent responsible for a few OF the
Administrative abuses of recent years.
To appreciate the far reaching effect
this lack in the system has had in Gre
sting conditions which have gradually
resulted in the disgraceful chaos into
which the city's finances have fallen it
Is necessary 10 clearly understand the
exact nature and working out Of the
means provided by the charter for A.
nancing the cost of city government
each year.
THE WAY THE MACHINE WORKS.
The Board of Estimate is charged with
the administrative function of deciding
the amount OF money 20 be spent each
A.,
chine commonly known as the city gov
ernraent There are two sources from
which revenue comes for this purpose
The general fund and the tax levy. The
general fund is fed from all sorts OF mis-
eellaneous revenues. such as licenses,
fees and other special taxes which ac-
crue 70 the city treasury. In later years
u has also received the surplus receipts
OF the sinking funds derived from reve-
mes pledged for debt redemption pur-
poses under the old sinking fund laws.
The bonds which these sinking fund rev.
ennes were pledged 70 redeem are gradu-
ally being paid of. but the revenues
nave been steadily increasing with the
CROWN of the city. On the ground that
tnese pledged revenues were piling up in
uae sinking funds far in excess OF the
heeos Tor which they were originally
tiiocateds the Legislature IN 1903 al
~"ed the city 10 transfer each years
surplus 70 the general fund. to be used
N supplementing the revenues available
Ior paying the cost Of city government.
1hese sinking fund revenues In SIX years
uine have contributed SOS, 10000 90 the
receipts Of the general fund.
"hen the budget IS made up in Oc-
''Der of each year for the next sue
oeeoing twelve months the estimated
revenues OF the general fund are first
a1oertaineds and the difference between
mat amount and the amount required N
meet the appropriations authorized in
ae budget constitutes the tax levy for
tne year. Though expenditures under
Ouoset appropriations thus authorized
sesin promptly upon the succeeding New
Isars Day, the taxes out OF which bv far
e greater part OF those expenditures
nave 10 be met are not due 90 be pais
Until the next October.
WHAT THE CHARTER SAYS
The system employed 20 provide money
Curing the nine months before the tax
collections for the year begin is an ex