Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1914-09-22
NEW YORK CITY LEARNS ECON
OMY.


New York City has been forced to
change it's financial methods in order
to avoid confession OF bankruptcy.
There is a lesson which should be en-.
forced upon other governing powers.
New York has been going gayly
along for many years, borrowing mil
lions upon millions, on the assumption
and that her credit would always be
good, and that her creditors would al
ways be induced to take new promises
to pay in exchange for the old prom
Uses that had matured. Then came
the European war, and the creditors
wouldn't take new promises, but de-
manded cash!
New Yorks debts soon to mature
were about $sO,000,000. This week
S9,OOO,0OO must be paid. The New
York officials planned the usual re
funding issue" of bonds, and then
some! For public works going on and
planned they needed about 100000 900
more. They laid the case before the
bankers, and the bankers said:
Sorry, but we can't do anything for
you"
But we've got to have the money!"
chorused the city officials. "You can
not question the credit of the great
CITY of New York." And the bankers
said, in substances:
"You are just in the position of any
other business concern asking Tor
money-for credit. And we don't like
the way you do business. You don I
run the city on business principles.
There isn't suggestion of economy
in the way you run this municipal
business. You are extravagant. Els
pecially you have too many employees
who are not earning their pay
There is just one condition on
which you can get this money-this
credit, It is the same condition We
would impose on any other big bus1-
ness concern that came to US asking
for money to continue It's business.
You must run your business econom-
ically. We must have a voice in It's
supervision to see that you do so. You
have been running with the throttle
wide open, without any regard to real
economy, and that will not do"
The city officials went to work to
economic, in the usual way of politi-
cal flnanciers in pinch. They start
ed to annul contracts that had oeen
let and to withdraw projects for which
contracts were about to be let. But
lney didn't touch the pay rolls! Not
at first
That policy brought pressure from
other quarters. The people objected
to stoppage of needed improvements
already begun. The contractors
brought political pressure to bear.
Finally it was agreed that improve
ments not of the self-sustaining kind
should be paid for in the next three
years with a decreasing percentage OF
borrowed money and an increasing
one of taxes, and that after 1918 there
should be no borrowing for such i'm
provements.
Thus put between the devil and the
deep blue sea of much higher taxes or
no public improvements that will not
"pay their own way the New York
City government must cut the padding
from the pay rolls. There is no help
for it.
At time when the American people
are compelled to drastic personal econ
omies the need of economy in the bust
ness of government, state and city and
county and national, cannot be over
looked.
All have more or less padded pay
rolls. All have many soft jobs" with
little to do and plenty to get for their
holders. The people are very weary
o. the excessive cost and the scandal
GUS waste Of the average American
government.
The political party, organization.
leader, who "goes out with an ak"
against padded pay rolls is certain of
such public appreciation and support
for his efforts as the American people
have never given before.-Chicago
Herald.