Greater New York began business in a condition of apparent bankruptcy, because the debts exceeded the constitutional limitation 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 yielding $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, $3,600,000; 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 revenue to the city that is insignificant, the total collected rarely exceeding $300,000 a year. The gradual reduction of the city debt, except as it is maintained or increased by additional bond issues, is amply provided for by a steadily increasing and protected sinking fund. The total receipts of this fund in 1899 were $15,601,492.50. The Croton water rents, amounting last year to $4,590,502.55, are applied to this fund, as well as the dock and slip rents of $2,362,421.14. Some of the other chief items of this fund are: Revenue from investments, $3,573,519.34; ferry rents, $370,776; market rents, $251,500; interest on deposits, $520,526; installments included in the budget, $2,633,110. More, than $1,000,000 is derived annually from miscellaneous sources, including the sale of various odds and ends of property. The total interest charges on bonds in 1899 amounted to $11,275,822, leaving more than $4,000,000 of the sinking-fund income applicable to reduction of the funded debt.