The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-04-08
New York Needs No New Taxes.

The only plausible and possibly de.
feasible excuse for direct state tax
or for the imposition Of new indirect
State taxes Is found in the alleged
necessities Of the sinking funds to
provide for the state debt. By the
practice Of economy. the application
Of honest business methods to the
states affairs. sturdy refusal to
embark in new enterprises no matter
how attractive the labels they bear,
the cutting of Of wasteful expendi-
lures the present revenues Of the
state will easily he made amply sufh-
clent to support It.
What. however. Of the various sink
ing fundsi
These must BE- maintained ad.
eQuate to the duty imposed on them,
inviolate from exploitation. n sacred
trust held for the payment OF the
States creditors. As to this there
has been and there can be no Iues-
tion. But the fact is that these funds
computed to September 30. the end
Of the fiscal year. are $22,0o3,0a1.21
in excess OF the charge against them,
and the excess. imposing needless
burden on the taxpayers. will grow
greater as the years pass. unless II IS
corrected by remedial legislation.
Were the sinking funds 10 be ad-
justed on basis completely protect.
ing the bondholders, this 500 O0O.OOO
would he released, not for expendi-
ture 10 meet State expenses. but 20
he credited to the funds in the future
until the interest and principal Of the
debts overlook the amount set aside
for their payment. with sufficient
margin for absolute safety. In other
words, IL the SURPRISES In the sinking
funds were merged in one fund dis
tributed equally over all the debts
the state could. without endangerine
its credit or injurlng It's creditors, es-
cape contributions for debt redemp-
ton purposes until the accrued por-
> ZION Of the debts reached the amount
Of the sinking funds.
To such a rea sonable consolidation
no bondholder could for moment
: object. His protection IL not increa sed
by storing in the state treasury ar
amount grossly in excess Of the
States debt TO him. The safety OF
his investment is in nowise enhanced
: by the blunder Of legislation that
made provision to pay him far greater
: than the ocea sion demanded.
Relieved of the sinking fund con
l tribution. the State treasury, without
0 resort to a direct tax, or 70 new indi
rect taxes whose effect will he to dis
: courage the entrance Of capital 10 this
state. il not actually To drive II
J. away. will be able from its present
a sources of revenue 70 accommodate
l. every legitimate charge against 1t, Il
r pay the cost Of liberal and efficien
I government and to maintain work
L ing balance sufficient for its purposes
T. but not ~ large AZ to endanger tn
9 morals OF any public officer.
o II happens fortunately for IN
d state that the authority necessar.
n for such reimbursement as may be de
h cided upon Is Immediately available
l. The Constitutional Convention cal
a consider this matter; the voters ca'
IT pass on 1t at the polls; and the pres
ent Legislature can enact. NJ a spe
cial session, the statutes necessary L
make effective auy remedy that ma.
seem advisable. This course adopted
- no question can remain as to the nc
., cesslty of a direct tax or new indire'
taxes, q matter of immediate COZ
. Germ To the public; and regardle'
'" Of these projected taxes, the stat
should be relieved of the heavy M
:. necessary burden imposed on 1t by th
~ unscientific method now In force