New-York tribune., 1910-03-08


tions in the interest rate OF city bonds
also. The s4,9oo.0oo city bond loan OF
pittsburs bears ga per cent, and the rate
IS the same on the worlds fair bond Of
1902, issued by st. Louis. Philadelphia
has two small bond issues. one of which
bears 81 per cent and the other 3ls,
and Cincinnati has several minor issues
bearing interest at 3s5 per cent.
There was general satisfaction at the
clear and able financial statement OF the
city published by Controller Prendergast
yesterday.
Mayor Commends Controller.
The Mayor wrote q letter Of COM
rnendation TO the Controller. in which he
expressed his belief that the bonds OF
The city would rise in value and occupy
the place they should in the list OF nu-
nicipal securities He said he hoped
that the small investor would bid at the
forthcoming sale. as under the law such
bid may receive the preference If st IS
larger than that OF a bidder for a large
number of bonds.
The Mayor wrote:
Allow the Mayer 20 thank you heartily
sOr your clear ana abIe statement OF tile
eity's financial condition, published to-day
There is no safer security in the world
than \ bond Of This city, as you show. The
more than loose talk about the city $ credlt
during the last few years is much 10 be
regretted The constitution or the state
provides that the debt of the city can
never exceed 10 per cent of the real es-
tate valuation on the city tax rolls. In
that way, and in that respect alone. the
the accurate phrase Isl are as safe as real
estate first mortgages on 10 per cent of
the value of the real estate covered by
them.
In addition TO that. they have back of
them the taxing power OF the state for the
payment OF interest and principal
In addition TO that, the city owns in fee
simple real estate assets of the value OF
ever 100000 00O90 whereas its net debt is
only about one-third of that sum-namely,
less than $3.50 G0o.Cao.
And finally as YOU also point out. our
net cit debt does not exceed the total of
the city's revenues for four years.
Notwithstanding all of this. our per
when the bonds of Baltimore, for instance,
sold for 1877 and the bonds of other cities
sold equally well. This was caused by loose
and haseIess talk concerning our financial
credit timid is capital.
] feel certain that our bonds viii now
continue to rise until tney sell as they IoTe
sny city. I hope that even persons who
want 10 invest only a small amount will
bid at the forthcoming sale, since the law
now is that the small bidder is entitled to
have his bid complied with IL he is the
highest blGdeT. instead or DO Tor the
whole issue being given a preference.
Borough President McAneny, speaking
OF the financial statement of the Con-
troller. said:
The appearance of this clear state
nlent at time before the Board OF Es-
innate and Apportionment is committed
TO any particular line of expenditure in
detail is especially opportune. 1t is in
line with the policy Of the board an
bounced az the first of the year.
THE frank declaration of the plan for
Kidding ourselves of the incubus of paper
assets Of uncollectible taxes is most ad-
nlirable. We Will not be burdened from
year to year in the future by this in
creasing debt, as an allowance will be
made each year for such taxes as we
may have reason TO expect cannot be
collected.
McAneny on the Budget.
This statement of the Controller is
one of the first steps in the general pol
icy Of the administration in clearing the
decks So we may know just where we
stand and may go forward with i'm
provements with clear understanding
of how far we may safely carry them.
The next step in shaking things into
workable shape will be the preparation
OF our corporate stock budget. l under
stand that the various departments have
put in their requests for the budget and
all that remains is to collate and relate
them Then the Board of Estimate will
ne able to take into consideration the re-
quests of all the departments and square
them with what We consider the most
pressing needs of the city. We ought to
be able to-provide 1or almost all the ex-
penditures OF the year in this way, al
though Of course. some allowance will
have to be made for emergencies.
Il hope that in the future the board
viii be able to apportion pro rata in
advance with more or less precision
our resources among the various i'm
proyements, such as supways schools,
docks. parks. etc. The corporate stock
budget we are about to issue Will be an
example for those that will follow