The New York herald., 1922-03-20

ucipated by treating such securities al
Cancelled in computing the city debt, ano
when disposed of to the public such Sc
curities would have TO be met by taxa
ton. aI%ation has been increased BY
the simple process Of taking FUNDS prop
cry applicable to debt service on which
there is no constitutional limit for ad.
ministration expenses in addition TO q
tax exhausting the constitutional limita.
ton.
Defines sinking Fund.
"a sinking fund is defined as a fund
created by gradual accumulations for
sinking or paying a debt, or providing
against contingencies These sinking
FUNDS answer neither purpose OF the
definition. On the contrary they Pre-
mote the Increase of debt and extrava-
Sanee. involve a multitude OF costly
transactions without profit stimulate
z false sense Of security and confuse the
puoiic as to the city's real financial con-
d'tion. The Sinking Fund Commission.
as inc responsible director OF these
iunds. IS worse than useless and should
be abolished"
The report points out certain financial
reforms which conditions call FOR. They
are:
Sosiss ..,.,...........,.....,..si7ooo sir ooo, 900
Srbv avs tamortization aud in
terest on bords). s)............... 1850, 600
Ferries ,....,.............. 1000. .0oo
ac.harial payment of funded debt 1000. 600
I;Atrenchment from SO to 1Oeo on
CITY expenses Of administration
$50 ........-............... $500. 900
saYinS by advancing the tax dates. 5.J0o,o 600
Saving by bringing county govern
ment under the jurisdiction OF
the city, ...............:.::.. 900, 900
schools ..................... 5000. 900
Total ........,.,............ S5s, 80. 600
'These savings cannot be hoped for
from the city government as now or
ganized." the report continued. "They
cannot be achieved by law alone, but
they can be met by a. reorganization
of the city government with the aid Of
the law. 1t is not claimed that these
reforms can all be Immediately real
ized. but the plan can be Immediately
put into operation. great progress made
promptly and the end reached within
q reasonable time"
Some of the Recommendations.
The committee makes the following
recommendations
1.-THE changing of tax dates from
May and November to January
and July ], under a system of gradual
change to the prior month, and annex
a copy of the proposed bill for that pur-
pose.
Restoration OF the 'pay-as-you-go'
policy, as enacted in 1916.
Abolition of the sinking funds at
the earliest day practicable and of the
sinking fund commission. Care of the
funds to be vested in the Comptroller.
Repeal of the general fund bond
legislation and the application OF all
sinking fund receipts 70 the payment
of interest and reduction OF the city
debt, and specifically the application OF
funds received from income-p paying
properties to the debts created for the
acquisition Of such properties.
Placing public utilities on q self
supporting and independent basis, with
separate profit and loss accounts.
inauguration of an actuarial sys-
tenn of payments TO provide for the ex-
isting debt. and the Inauguration of a
new serial bond system on the same
basis to provide for new debt.
Amending Section 10. Article s of
the constitution in accordance with the
recommendation OF this report.
"Simplifications of government through
such constitutional amendment and en-
actment Of statutes in accordance with
the terms OF, this report"