18 POPULAR SCIENCE MONTHLY. 



sive, and so far useless. The entire charter is a series of compro- 

 mises, and every compromise on a salary was at the maximum rate. 



This method of arranging the expenses of the greater city in- 

 creased the cost of government beyond the highest estimates of 

 those who had advocated consolidation. The initial cost was fur- 

 ther increased by reason of the fact that no precautions were taken 

 to prevent the various municipalities to be united from increasing 

 their bonded and contract indebtedness during the last year of their 

 separate existence. The result of that oversight was that every 

 municipality, the former city of New York included, issued bonds 

 and entered upon contracts with somewhat reckless disregard of the 

 future. In this way a heavy burden of unnecessary expense 

 was added to the legitimate account charged against the consoli- 

 dated city. 



Greater New York began business in a condition of apparent 

 bankruptcy, because the debts exceeded the constitutional limita- 

 tion of ten per cent of the assessed value of taxable real estate. 

 To overcome this and to meet the extra expense of government 

 by the new system it was necessary to greatly increase the tax rate. 



The financial condition of New York on January 1, 1900, was 

 satisfactory except in the matter of current expenses. The gross 

 accepted funded debt on that date was $358,104,307.11, against 

 which there was a sinking fund of $105,435,871.70, leaving a net 

 funded debt of $252,668,435.41. Considered in connection with 

 the wealth of the city, this debt is not excessive. The city of 

 Paris, with smaller available resources, has a debt in excess of 

 $500,000,000. The gross expenditures of the city during 1899, 

 exclusive of permanent improvements, paid for from the proceeds 

 of bonds, were $93,520,082.03, and in 1900 the expenses will be 

 some $3,000,000 less. 



The total receipts of the city for the same period, from all 

 sources and for all purposes, were approximately $108,000,000. 

 The income was derived from three general sources, taxation yield- 

 ing $84,000,000. The budget, which represents the money to be 

 raised by taxation, was reduced $9,000,000 by income known as 

 the general fund. The chief items of this were: Excise taxes, 

 $3,000,000; school money from the State, $1,280,883.45; fees of 

 various county and city offices, $246,576.65; interest on taxes 

 and assessments, $979,185.35; and unexpended appropriations, 

 $1,356,786.57. 



Aside from the revenues classed as the general fund, New York 

 has no income from any source that can be applied to current 

 expenses for the reduction of taxation. The immensely valuable 

 franchises heretofore granted to private corporations yield a reve- 



