The sun., 1916-11-04

Inc next lATSe lteU1 vi lHCTease III
the appropriations Of 1915 over those
OF 1914 is that for:
mixing FUNDS. ......''''.''' $l''S''"oV
The 1914 requirements as finally de-
termlned were 1851. 900. and for Gov
ernor Whitman's first ear 1851 900.
I have already explained that the sums
TO be set aside by the state for the
payment of principal and interest ON
bonds issued for the canals. canal
terminals. highways, Palisades state
Park and Saratoga Springs lteserva-
ton. are fixed by the Constitution. The
people adopted the amendments pro-
viding for the works mentioned, and
also by their acts established the rate
per annum to be disbursed for these
purposes. Every Administration is
therefore bound. as the work proceeds.
to set aside the necessary amounts an
nually. II there are less bonds to be
issued In one year than In another be-
cause less work Is Gone no Governor
has the right TO claim an economy In
tho expenditures for sinking funds.
Conversely, when the requirements of
these funds In Governor Whitman's
s's'S st"s VI iiri bh WV Nv
Glynn's year the increase should not
be held up as an act of extra vaganCe
on the part OF the present Administra-
ton. In the face Of this obvious situa-
ton Governor Whitman's opponents
never admit that practically $4,000. 900
OF the increase Of 1915 over 1914 was
To meet the constitutional demand of
the sinking funds.
The Administrations of both Gov
crnors Glynn and Whitman have been
the benefciaries Of certain adjustments
made In the sinking funds. These ad-
justments have rendered ii possible to
appropriate less money than the con-
stitutional requirements demand. This
Is due to the fact that certain canal
sinking funds had served all their pur-
poses. and the balances remaining in
them were available for transfer to
other live accounts. thus reducing the
amounts necessary to be appropriated
for the latter. II also appeared that
large amounts of interest moneys had
been appropriated and paid into the
sinking funds on the s%upposition that
bonds would he issued in specific years.
but the bonds were not issued until
subsequent years. and these interest
moneys were unused. They were made
available principally through tho work
of Senator Elon r. Brown. the excep-
t%ionally able legislator who conducted
the inquiry into New York ci,y's
finances last winter.
Senator Brown. although only the
minority leader in the Senate at the
time, successfully resisted the efforts
made by Governor Glynn and others
to use SURPRISES in the sinking
funds for annual amortization pur-
poses on the sound principle that these
SURPRISES, having been put there 10y
constitutional mandate. thus creating
u contractual obligation with the hold
ers OF the bonds, could not properly
bc used for any other purpose than
the liquidation Of the bonds. The
committee ON state finances of the
constitutional convention held last
year. after giving the matter great
study. was almost unanimously Of the
same opinion. The rate fixed hy the
Constitution for providing the inter-
est and amortization charges on the
states bonds il much higher than the
rate required to raise the necessary
funds by the time the bonds expire
which will he in nifty years. The c;.
feet has boeH to load these sinking
funds unduly, So that al! tho epi!;eC
sums will he on hand Ia iiuI!iate ti'
bonds long before their maturity. Tn,
burden ia cast upon tbs generation
In the case OF higIwIN bonds this il
not an owl. for The siinp," reason tina,
no fcty year highway h""ds sh"u.'
ever have been authorized - tho
roads huilt WITH the proceeds of these
bonds Will not lat anything Ike iittl
wears. As n principe "f pubic finance
Il Is propcr. that the l,eup.e who build
use and exhaust tEcsr roads sAou
pay for them.
In my second paper called ait"n'
or to the fact that there WAS a offer
ercr in the appropriation Of lal'
1853. a97,27l So I'VE 1914 $40, W. 323
~ Of sliI"l.9i> -? The gross in
crcaScs OF the former Year over the
latter were SIS 500. S"I.3l. but there
were decreases ~ compared with 1871
of S2@1A.S5>.S2. :" that the net IN
crease was SIi,a9i,94A6?. have c>'
3 pi,nrl In detail items amounting I,
sl3,TSa.oSiSG wuich Governor Whit
mans Administrators had to provide