The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-16
CASHBASISFOR
CITY YEARS,
SAYSTHE MAYOR
Tells for the First Time of
Steps to Get Out of FL
nancial Slough.
SPEAKS At DINNER
OF 600 CREDIT MEN

v.,-- Mitchell outlined TO che New
yo,x credit Mems Association az the
go..I Actor last night the policy of the
hoard of Estimate whereby within four
gsars ere city viii pay as 1t goes" II
All CO.. thu 'pNpayers OF the city little
,.,re perhaps. the Mayor admitted. for a
,sy years nut at the end OF that time the
1t W.. ,e reduced and the enormous
lob, o. 'ts city will be attacked.
-Se-, .,,-. six hundred credit men
.-e.sn, oHcp Edward u. Flannery. presi-
l-7' - tho organization, called upon
syeryhodv 90 greet the Mayor, who was
ate arrival and the Rev. Or. Joseph II.
Two called Cor three cheers for the head
~ q. rI'y administration.
They ,er, ,'l experts when IL came to
.iss,iaas OF money az crcdits--the repre-
,.riatv.- OF the great business houses
w.o say whether YOU can have the goods.
nd tho reprcsentatIve- Of the banks who
.ay whether YOU can have the money 70
agy the goods Just before the Mayor
,ane IN they had given arising salute
81, Pierre JAY. Who left the Bank Of the
MAINTAIN Company to become chairman
- tn board Of tho New York Federal
gsss-,e Bank. and then they turned 10
ae Mayor
MONEY ~ Life Breath.
Bs,ause credit IS the breath OF life 20
cry IN Institution. the Mayor explained. the
r.ty found Itself compelled TO borrow
mama, o., tu.at IN rn.turipg publications.
abroad I; had to pay a high rate OF
interest. but not NO high as private enter
prise has paid. It found It's credit good.
and h. concluded. ~ submit TO you
tia, tho city Of New York made a val
liable and great contribution 10 the entire
national problem abroad" The applause
Indicated that they agreed with him.
Then he spoke of the future.
Il suppose you know" he said. that
until \ few years ago the financial prac-
t.ce of the city was 10 loose that fifty
year bonds we're often issued for work
Il purely current and temporary ma
ture. In fact, in some of the investiga-
iions that | made as Commissioner OF
Acc counts a few wears ago. we found that
carbon paper for typevriting purposes
nad been purchased through the Issue
Of ftty year bonds.
THAT kind of practice and also the
fact that the city of New York has en-
Joycd a wonderful and rapid growth-and
We have needed Il very large number Of
permanent provements-account for the
fact that our bonded, funded debt has
rolled up to enormous figures. We all
.eal.zcd that sooner or later we were
going 10 have TO meet that question and
determine whether we should go on roll
,ng W the funded debt OF the city. add
.ng yearly TO the debt service carried
n III" budget OF the city, or whether We
would change the system OF financing
thoso improvements and adopt tho pay
. you go policy with regard to these
permanent Improvements.
settled for All Time.
This question Of financing ourselves
through this period a few weeks ago
brought that issue squarely up before the
Beard ot Estimate, and we met it and
'ae question has been settled. and !
.a.ns settled for all time in this city.
F7r those improvements that have al
rsaly been authorized we are going to
ssuo fifteen year serial bond. which
T.i' he r'.ir'd through fifteen annual In
ssmeuis to be carried In the tax budget
II the city,
FOR aN future public improvements
except those Of self-sustaining char
actor 80 will in the first year carry
0n'-oII rtcr Of The cost in the tax budget
nj
'"@ Nf'e'n year bonds.
in tine e"rond year we will carry one
bali N the tax budget and one-half
through the issue OF those bonds.
IN the third year we will carry one
quarter ana three-quarters, and In the
'olr'0. aui ] hope in all succeeding years,
ne entire amount OF non-self sustaining
pLo.' .upr1vrments will be carried and
paid 'nr m the city budget year by year.
Nov 'ha' means that within four years
MS city ought 10 be put squarely on the
pay AS sou go basis. and that after
aiie0r years these serial bonds will be
r-o1 out and we will begin reducing
n" 2r',' funded debt of the city OF New
'nrF eteajily and gradually from year to
.rrr
!, required a good deal OF thought,
atI I submit 10 you that II required some
'l-aE". 10 adopt that policy. because II
'... means IN the HTSt ythTh u lts
-''."''io1 that zee are going TO have 10
write nrsriy increased sums into the tax
'Nar of this city In order TO carry the
'Noi improvements and to amortizs
'ho' 0"oou year bonds.
Bslanc~ TO he struck.
W.. the long run ] think the BENEFITS
NH. balance the disadvantages TO the tax
..''' because when once we have got
' 'Ns basis securely. tho reduction in
m" tnn, service Of the city Is going 20
~" ~ least 10 "A material degree. the
10 "t-- t9rt may he made by reason NJ
N-'Hf those permanent public improve
n...- .H'p the tax budget Of the city each
.,.
~ same time, We are doing our
''' i'.""iug the suggestions that have
made by several commissions that
1850 ~.' I'M THIS city In consideration ~
." matter TO develop new sources OF city
DO. 100 order that we may tighten
'' ''n the burden that IL placed upon
90 '.' ID estate OF the city through taxa
w" reason Of this Increase in the
b. 'sn