FINANCIAL CRISIS

Hokitika Guardian, 20 January 1932, Page 5

FINANCIAL CRISIS

BANKERS REFUSE LOAN.

NEW YORK CITY’S DEFICIT,

(United Press'Association.—By Electric

Telegraph.—Copyright.;

XFW YORK. Jan IS

Despite desperate stnigg.es during the past few days by the Board of EsLinnite to find a way out of New York’s financial distress, it, is new feared that an unavoidable crisis has been reached, and a default upon notes totalling 58,500,900 dollars is feared to-morrow In addition to these notes, which are simp y those uoisidered to lie the most-immediate-Iv prosing ones the City is considerably worried about the ability to continue the daily-running expellees aside from salaries. An exam.nation of the “City Record,” New York’s official organ of civic affairs has disclosed that the City has paid no bills since January Ist. Salaries have been paid to date hut they have taken every available dollar.

A lengthy conference has been held by the Mayor of the City, Comptroller and other officials at the home of the President, of the National City Bank hut it was apparently without results, for the hankers appear to be unwilling to advance funds to enable the city to meet its obligations:

Despite large retrenchment having been already made or promised, these are still regarded as being insufficient. One prominent banker stated: “We are not particularly impressed by the fact that the Board of Estimate have placed approximately one hundred and twenty million dollars in projects on the shelf. Many of these projects, as a matter of fact, have been on the shelf for many \ears, and they were likely to have stayed there whether the City bad money or not.” THREE MORE BANKS CLOSE DUE TO WITHDRAWALS. XEWYORK, Jan 18. Among to-day’s outstanding bankrupticies in the United States were the Hudson River Navigation Corporation and the Spreckles Sugar Company. Hie Banks closed included First National and Commercial Bank of Champaign, Illinois, with combined total deposits of 6,500,000 dollars the First National Bank of Durham, Carolina. Its deposits on record on Saturday totalled, .‘1,500,000 dollars.. Tin* directors oi the latter Bank asserted that the closure was due to withdrawals since January lOtli of four million dollars of deposits.

The Chicago Depositors’ State; Bank with deposits of three million dollars has closed. This is due to the recent withdrawals of the additional three millions in .deposits. ANOTHER HOLD-UP. POWER LOANS WITH ELD. NEW YORK, January 18. The New York “Herald-Tribune’s” Montreal correspondent has reported that banks which are interested to the extent of twelve million dollars in the Beauharnois Electrical Power Corporation of Canada are withholding loans for the Power Company until the intention of the Canadian Government is known. The banks have for a month been doing the financing for the Beauharnois Corporation on the basis of a tacit guarantee by the Canadian Government, but further guarantees are apparently not forthcoming. It is understood that a block of stock represented m n payment by the Beauharnois Corporation for the' Sterling Industrial Company is to be returned to tbe treasury. It has been settled that Messrs Douglas. Henry and Sweezv should retire from the Board of the Corporation, but tin' membership ol the new Board s still undecided.