The Birmingham age-herald., 1914-03-23
City's Annual Expense Is One-Fourth That of the
 Federal Government
EVERY PORTION OF
 NATION AFFECTED
The City's Bonds Are Now Held by Investors All Over the World. How the Bonds Are
 Distributed
Nv HOLLAND.


 New York, March 22.-tspecial.)-It was reported in this column some days ago that disbursements which will aggregate $1.oo0.ooo0o0, approximately, will be made by four men of the administration of Mayor Mitchell of New York during the four years of his term of office The re- port has been followed by some inquiries about the details of the purposes for which this large disbursement is to be made.
 The financing of New York city is re- garded by men of large financial assoca- tions throughout the country as a matter of national quite as much as of local inl- portance. For the financing which is need- ed in order to provide funds New York city requires is sometimes so great as di- Tectly to affect it. The marketing Of great loan issued by New York city in- wolves the cooperation of bankers and investors in other parts of the country, It frequently happens that considerable blocks of the bonds of New York city find their way to final investment among the people of France. They are also held in considerable amount by banks and in- yestors in other parts of the country than New York
 When it is recalled that the revenues re- ceived by the New York city treasury az gregated In the last calendar year s9ts, ,0oo,- 900, there will be discovered good reason for the statement frequently made that the financing of New York city and the revenues received by the city stand sec ond only to the fiscal ansactions carried on by the federal government Congress now provides for appropriations aggregat- ing perhaps S1,ooO 0c0,o00 a year, more or or less New York city must provide for Appropriations which in four years aggre- gate like amount.
 The revenue received by the city of New York are surpa ssed only by those which come to the government from customs sacs CT from internal revenue taxation. Anpiuxn.ately $50 100000 year must be contributed by the taxpayers of New York to the support of the city administration. These figures are not absolutely accurate, but they are approximately correct Yet notwithstanding the heavy payments made by taxpayers, the greater part of which is no doubt based upon assessments on real property. real estate continues to ap- preciate in value, although there are times when reaction is observed. That is the case at the present time. If all the precedents are followed, however, this reaction will be temporary.
 Running Into Debt
 Frequently complaint is made that the city of New York Is recklessIy assuming bonded obligations which have a long time to run and which if continued may almost bankrupt the city. The aggregate of bonds issued by the city now outstanding is greater than the aggregate national debt. This statement of itself is sui ficient to show how intimate the rea- tions of the financing of New York city ifya- throughout the United States is. The fact is that to a considerable extent other parts of the country are financing the long time bonded obligations of the city. How great these bonded obligations are may be illustrated by brief statistics which show the aggregate amount of bonds 1s- eued by the city for 15 years for some public worSs-from 1898 to 19l3 These fig ures cover only bonds which were issued and were sold to secure funds with which to construct public works.
 In 15 years the city sold bonds for water supply purposes aggregating Sl74,- o00,o0O round numbers. It issued bonds for rapid transit purposes aggregating nearly $e5,000,000 The bonds which it sold for schools and schoohouse sites amount ed to S102 000.000 round numbers. Libraries and sites are represented by bonds agsre- }gating s12. 600; parks by bonds aggregat- ing sSl, 100000: public buildings by bonds aggregating $50,000,000: docks and ferries by bonds aggregating $s6,0o0.0O0. In these 15 years the city of New York has sold !. an aggregate of ss6l 000,oo0 of bonds the proceeds of which were utilized in pay ment of public works and improvements. There were issues of bonds for other purposes. bringing the aggre- gate slightly above sl,o00 o00.oO0. In this respect the city of New York far sur passes the federal government. and is , probably unique among the cities of the world. To show to what an extent other parts of the United States aid in financing the needs of New York city it will be suf hcient to report that nearly sl2o,000,OOo of these long term bonds were bought at public subscription. Almost all of the bonds thus purchased are now included among the assets of various banking i'm stitutions. many of them outside New York, and considerable proportion of