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February 26, 1898.
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Dd6teD P RFA.L EISTAJE. BuILDiKg ft;^m:CTUI^E .HoUSEJiOID DEOOlJTlOlt
Bi/siT^ESSAibThemes OF GetJeraI Wt^est.
PRICE PER YEAR IN ADVANCE SIX DOLLARS.
TEtEPHONB,
Published every Saturday
COKTLANDT 1370.
Communications should be addressed to
C. W. SWEET, 14-16 Vesey Street.
J. 'I. LIKBSEY, Business Manager:
"Entered at the Post-Offlce at Neui York, JV. i'.. «s second-class mailer."
Vol. LXI.
FEBRUARY 26, 1S9S.
No. 1,563
NEITHER at home nor abroad do the financial markets war¬
rant the scare that has heen witnessed here this week,
founded apparently on the belief in some minds that war is tbe
inevitable outcome of the investigation now being made Into
the loss of the battleship Maine. The bonds, of our government
have not been affected by this outcry, nor have Spanish bonds in
the European markets, and both would undoubtedly have suf¬
fered severely if it was at all probable that war would break out
between this country and Spain. London, whose political infor¬
mation and instincts are generally to be trusted, has been a
buyer, though not to so large an extent as is currently reported.
The buying came from London undoubtedly, but Londoners
were not always the buyers. The fact that London has been ap¬
parently a buyer on the top of all our advances of late is a sus¬
picious one, suggesting too much manipulation from this side
by those who want to keep up an appearance of activity on the
bul! side while realizing. Nevertheless, speculative interests
abroad have interested themselves in our securities to some ex¬
tent on this break. The New York selling itself has been largely
from margin accounts aud it would only be characteristic of the
speculative brokerage business' if the selling was encouraged
by brokers anxious to make tlie accounts in their oflices more
active. Yesterday's market showed that the scare has been
checked, and that the market is preparing to take on the phase
it usiiaHy assumes after excitement. This phase is a sharp reac¬
tion followed by dullness and drooping quotations. It taltss
some time to revive a speculative movement and meantime it
does not pay to attempt to keep up prices.
OtIR Inference that Britain had got all she asked for from
China is being supported by the facts as they transpire
from time to time. Looking back at the controversy, as well as
at the West African Anglo-French dispute, one thing that comes
out with striking prominence is what may be called the new
dodge in diplomacy of arousing one's public. The success of
this depends upon how far all the different governments are
united in their dread of war and in this there really seems to
be a European concert, which not even a party in opposition
would question. The French foreign office has worked this
dodge pretty effectively to obtain concessions from Britain, and
now Britain works it in Its turn. We can imagine a Foreign
Minister of either power saying in effect to the representative of
the other. "You see how I'm fixed, there's Parliament or the;
Chamber of Deputies, a writhing struggling mass on the floor of
the house or chamlier, and outside a howling mob who cannot
put Its dirty finger on the map at where the place we are con¬
tending about Is indicated, and what am I to do. I cannot re¬
cede, and unless you do we must fight. Do me a favor now and
I'll do you one next time." Then the concessions come. The
successful minister brags of the victory he has achieved, and
everything goes smoothly until a new hitch ai-ises and the one
who "arouses his public" first has the best chance of winning.
In fact there really does not seem now to be anything any one
power can claim, and maintain if obtained, that is worth fight¬
ing about. The trade of China is in British hands and for com¬
mercial and financial reasons must stay there for a long time
to come. The malarial swamps of West Africa even have been
parcelled ont and all that France or Britain could obtain from
one another would be very small advantages, not worth the
bones of a cooley, to say nothing of those of a Grenadier, who
costs considerable before equipped for the field. Consequently,
while there is a good deal of talk of war; war becomes more im¬
probable than ever, and enterprise more encouraged. From
Cairo to the Cape has had a fine sound as the route of a railway,
but it is now beaten in alliterative magniloquence by "from
Havre to Halifax," hy way of Behring Strait, which has been
suggested as a result of the Alaska-Klondyke movement. By
the way the Deutsche-Asiatische Banlc, which is to take part of
the Chinese loan is a sort of committee of leading banks and
bankers in Germany. The Vienna Creditors' Society, in its re¬
port for 1897, reports depression in every liue of business, except
building. The cutting off of Hungary from the Empire by a
customs' tariff which is threatened, would, if carried out, in¬
crease the depression in the industrial states. The question of
Indian currency and exchange is being urged on the govern¬
ment. Meantime the bazaars are handling silver ingots of
various denominations to relieve the stringency brought about
by the closing of the mints five years ago, and the consequent
restriction of the issue of the rupee, and the rates for money are
rising daily to panic figures.
THE DEADLOCK ON IMPROVEMENTS AND THE RELIEF.
THE check that our municipal improvements have received
is a matter that is not receiving the attention It deserves
from the public of this city. There is, in our opinion, too ready
an acquiescence In the policy of the administration to defer all
improvements, except those already hegun, until a margin of
credit has been created, hy increased tax valuations presumably,
in order not to overstep the constitutional limit of debt. The
debt being what it is and the legal restrictions upon It being
what they are, it is only fair to state at the outset, the adminis-
ration had no other course to pursue than to be guided by these
two facts in the amount of obligation they assume on behalf of
the city. What is singular is that the position we are in has not
before this raised the question whether the provisions created
by law for the carrying out of public improvernents are all that
can be obtained?
Municipal history has proved conclusively that there ought
to he a safe legal limit set to the debt-raising power of a muni¬
cipality, and there is no reason to quarrel with the limit set by
the Constitution of this State. This Is a wholesome condition
which, considering how it has been governed, has most probably
saved this city from bankruptcy. Admitting then that there
ought to be a limit to the city's debt, and that ten per cent, of
the assessed valuation is a proper limit, ought not the work the
city has to carry ont financially and physically be In some way
made proportionate to the means at its disposal; or, if those
means are inadequate to supply its need for development, ought
it not be enabled to seek other assistance whereby it can obtain
tlie Improvements called for by its growth, if it can do so with¬
out taking upon itself the financial burdens belonging to them?
Must the city itself finance and build all the docks, bridges and
viaducts; lay out all the new thoroughfares and provide all the
supplies of water? And more important still, if the city, by
reason of the legal bar to its Incurrence of debt beyond a cer¬
tain point, is unable to obtain such of these things as are ab¬
solutely necessary to fullness of growth, must It simply go with¬
out them and lose the benefits that their possession would
bring?
There can be enumerated a long list of improvements, each of
which is crying to be made. We need municipal buildings to
house our homeless departments, au extension of the Riverside
Drive to arouse from death an important section of territory,-
more bridges, increased water supply, modern in the place of
antiquated docks, a main highway to open up another Import-
section in the annexed district, improved sewers, new
ant
schools, and above all, transit facilities that are in the proper
sense of the term rapid. Not only can none of these be obtained
now because the city has already availed itself of Its powers for
issuing bonds, hut they are placed in a future so remote as to be
invisible for practical purposes if they are only possible under
an expansion of credit through increased tax valuation and the
operation of the sinking fund. We may take it for granted, too,
that not only will the wants already named become more and
more pressing and greater in individual bulk as time goes on,
but they will be supplemented by others equally as pressing.
What our means will be to supply these demands with the lapse
of a few years it would he unwise to attempt to estimate, but
there is no reason to suppose that they will be adequate. If, to
make an improbably high estimate, the assessed valuations
are raised $100,000,000 a year for the next ten years and the debt
limit thereby increased $10,000,000 a year, and to the latter the
annual benefits from the sinking fund are added, they would be
insufiicieut for what there is to do.
This being the condition of affairs, is there anything that can
he done to remedy it? The only answer to this is, let the city
call in the aid of private capital to execute some of the work
required. This suggestion will doubtless raise a host of objec¬
tions, there are some that occur at once, but it is a proposition
that deserves debate. If found impracticable it can be dismissed
and something else substituted for it; but let us debate until
we get out of the stagnation or dead-lock into which we have