by larger institutions, and in many instances becoming local branches of the same. The largest financial transactions all over the country mostly emanate from New York, and, besides, New York City remains the main channel for all financial transactions between the Old and New Worlds. The New York clearing house is therefore the clearing house for the whole nation. The New York money market regulates the country's money markets, and is beginning to assert a dominant influence upon the European world. Many foreign loans have been floated in New York during the last few years, and many foreign securities listed on the New York exchange. The greatest industrial and railroad consolidations between 1890 and 1900, though chartered in New Jersey and Delaware, and uniting property located in various parts of the Union, are nevertheless all creatures of ‘Wall Street’—as the New York financial world has come to be known.
Finance. At the close of the Revolutionary War the State, by the sale of public lands, formed a general fund, the revenues of which were to defray the expenses of government, and for some time this was actually accomplished. Another fund was established for school purposes. In 1814 the State even paid out of this fund the direct tax levied by the National Government. A State tax became necessary after that, but was discontinued in 1826. In 1817 the State entered upon the system of public improvements, mainly canal construction, and a public debt of more than $7,000,000 was created for that purpose. At the same time a sinking fund was organized, and the tolls of the canals, as well as the salt duties, were assigned to it so as to prevent financial difficulties. After the construction of the main Erie Canal, other lateral canals were undertaken, which increased the public debt. In 1827 the State entered upon a new policy of lending its credit to private companies for public improvements, and $5,228,700 was loaned to ten companies, chiefly railroads. Some of them failed, the most important one being the Erie Railroad (in 1842). Their indebtedness ($3,665,000) became a burden upon the State fund. The total debt then amounted to more than $20,000,000, and the State was threatened with insolvency. A new course was therefore adopted in 1842. All expenditures upon public works were stopped, outstanding debts funded, and a tax imposed to meet the expenses of government and the payment of interest. The new Constitution of 1846 provided for a special canal sinking fund and a general sinking fund, and prohibited the creation of a new indebtedness except for war purposes, and even then only after popular sanction by a referendum. This last provision has been preserved in the present Constitution. Under these strict regulations the bounty State debt of $30,000,000 was created in 1805 to meet the expenses of the Civil War, and at that time the State debt reached its maximum of $53,000,000. After that the debt was rapidly reduced by means of the sinking fund. In 1870 it was only $32,400,000; in 1880, $8,988,000. The year 1893 saw the total extinction of the debt.
But a public debt was again created toward the year 1900 for purposes of canal improvement. After 1842 the main source of the State income was a direct tax upon all assessable property. Between 1890 and 1900 other sources, such as licenses, fees from foreign corporations, etc., became more important, and at the end of the nineteenth century several energetic efforts were made to separate the sources of State and local taxation. New taxes were laid upon banks, trust companies, public franchises of corporations. Further efforts in the same direction were made in 1902. On January 1, 1903, the debt of the State amounted to $10,000,000. The aggregate receipts of the ten funds for which separate accounts are kept were $27,040,558, or, subtracting transfers from one fund to the other, $24,042,462. The main sources of income were a State tax for general and for school purposes, 29 per cent.; inheritance tax, 14 per cent.; excise tax, 17½ per cent.; and corporation tax. 25½ per cent. The expenditures were $26,609,055, or, excluding transfers, $23,601,959, leaving a surplus of $440,503. Balance in treasury (1903), $6,992,599.
Government and Administration. The last revision of the Constitution took place in 1894, and on being approved by the vote of the people of the State went into force on January 1, 1895. It provides for a census in 1905 and every tenth year thereafter. It permits of amendments if passed in two consecutive Legislatures by a majority of each House, and adopted by a vote of the people. It provides for the submission to the people of the question of a constitutional convention every twenty years, or oftener if ordered by the Legislature. A voter in New York must have been a citizen of the United States ninety days, a resident of the State one year, of the county four months, and of the town or precinct thirty days. The registration of voters is required, but such registration cannot be required for town and village elections except by express provision of law. The holding of party primaries in the cities is regulated by statute. The Legislature consists of a Senate of 50 members, chosen for two years, and an Assembly of 150 members, chosen annually. Of the latter, sixty are elected in New York City. The Assembly districts are single-member districts. Each county, except Fulton and Herkimer, has at least one representative. The more populous counties are formed into Assembly districts, but county lines are not crossed. The members of either House receive a salary of $1500 and mileage. The capital of the State is Albany.
Executive. The Governor is elected for two years. He has the right to veto legislative measures, including items in appropriation bills, but his veto may be over-ridden by two-thirds of the members of each branch of the Legislature. He has the power to pardon; he may remove certain State and local officers; and with the consent of the Senate he makes appointments to a number of positions. With the Governor there are elected for the same term a Lieutenant-Governor (who is president of the Senate), a Secretary of State, a Comptroller, a Treasurer, an Attorney-General, and a State Engineer and Surveyor. The most important appointive officers are the superintendent of public works (who has charge of the State canals), and in addition the superintendents of banking, of insurance, and of State prisons; also a commissioner of labor statistics, a factory inspector, an excise commissioner, and a commissioner of agriculture. There are boards or commissions, also appointed, for charities, health, lunacy,
