AMERICA’S PLIGHT

Hokitika Guardian, 11 January 1932, Page 6

AMERICA’S PLIGHT

LARGE CITIES FACE CRISIS.

GREAT FINANCIAL STRINGENCY

(United Press Association—By Eleetrio Telegraph.—Copyright.)

(Received this imy at 10. JO a.m.) NEW YORK, January 10.

With the revelation that New York is in grave financial difficulties following an appeal by Mayor Walker to the Federal Government, alleging that the Banks are “squeezing” the municipality which heeds a ninety million dollars loan to meet urgent obligations, four of Americas largest cities are facing an acute budgetary crisis, with actual or technical bankruptcy in the offing. Chicago, Detroit, Philadelphia, land this city are (those principally affected. Bankers here countering the allegations, point to extravagant expenditures and corruption, as making it impossible to float any such laige loan, even ait interest in excess of six per cent. Short time loans falling due, and unemployment relief are the dity’s most pressing requirements. It is uncertain whether these can he met.

Philadelphia, with a fourteen mif- ! lion dollars deficit, and hanks declining to underwrite a fifteen million dollars loan, was compelled to make 'its last semi-monthly payment of 25,639 employees with scrip. Tax receipts have fallen, and there are no 'prospects of obtaining sufficient revenue'So meelt, expenditure. , Detroit, requiring 44,000,000 million dollars, could not get the State authorities to approve of any bond issue ! in excess of 22,000,000, meanwhile “extravagantly overspent” on various unemployment relief measures, and needing 53,000,000 dollars to refund short time loans, the city cannot put its financial house in order.