New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-17

completely stumping the committee
counsel Let us be helpful to each
ether" pleaded Mr.. Brown. ~ know
what I want, but | don't know how to
get at it exactly. You must admit thai
the ordinary mind does not readily
grasp the details Of the city's finances"
Mr.. Craig remarked that Mr.. Brown,
Senator in 1908 had returned from a
vacation ''in time to vote for the gen
eral fund bond act To which Mr..
Brown replied that that is joke and
has no basis of fact
The committee counsel here put Mr..
Craig through sort Of civil service
examination en- the definition Of such
terms as corporate tan notes, special
cial revenue bond.
II see there has been large increase
in the corporate notes outstanding.
said Mr. Brown, land special revenue
bonds.
"The total Of all these securities held
by the public on December 81, 1917,
was $55, 100000 and the total held b.
the public on June 80 1921, was $751;,
100000, en- increase of $4,000 600
Do you think that is a safe way to
finance the city ?"
Il think it is entirely unsound. but it
is the only way the city can be financed
unocr existing legis alton. eXcent pos
slbly as to the corporate stock notes"
The issues Of revenue bonds,' Craig
added, ARE due entirely to two things.
Well, three things You NAV saw; r.
amount OF the annual budget to be
raised by taxation the date the Lcgis-
lature provides that the taxes MAY be
COLLECTED, and Tie rncollected taxes"
well, now | will ask YOU whether
you think this is a healthy way to
finance the city?' said Mr.. Brown.
MY answer to that, Senator, is this ::
That for two wears in succession have
asked the Legislature to advance the
date for the collection of taxes in the
second half of the year to July l, and
cach time the Senate, of which you were
FORMERLY member, has passed that
PILL only to have it fade away in Rules
Committee in the Assembly,"
"How about advancing the first date
of paymcnt?"
81 was wiling to get one date at 8
time and if we got one we would have
something to argue about little later
on. Furtherm ore, the changes involv-
ing change in the first date almost
amount to the whole charter revision
because they affect so many operations
the dates Of which are fixed in the
charter 1t does not apply at all to the
second half of the year.
You do regard the advance Of botF
dates advisable ?"
The second date is highly desirable. ;
Now the city pays a large amour
of interest each year as part of it.
expenses by reason of the issuance o.
these temporary indebtednesses? %
1t pays a very considerable sum
about $5,500,000
80 rnat in round figures it costs the
city each year for this temporary finan.
cling about S55O0.OOO?"
That is correct. That is, for the
temporary financing Of the tax matters
only"
"You know it cost the city something
upward of $4000,000 in 1914 to fnanct
its short term securities because of tn,
difficulty Of getting money!"
because they sold then abroad ane
couldn't get the gold over there te
meet them at maturity in London anc
Paris as they had agreed to pay"
- Don't you think that a couple 0.
hundred million Of short term papcl
for the City of New York, if it con
tlnues for a considerable period O
time, may meet with another tinancia
crisis ?"
Senator, | argued with the Legis
lature this year that the resporsi
bility for financial crisis would b.
upon them if they did not pass ths
tax date bill taking effect thi.
year, because the failure TO pass tha'
bill results in outstanding obligations
at sum far in excess or what the
money market is in condition to stanc
In normal times"
1T is a condition that ought to be
corrected. 1t is financially unhealthy
! The Legislature should advance tho