NEW YORK'S PLIGHT.

Auckland Star, Volume LXIII, Issue 16, 20 January 1932, Page 7

NEW YORK'S PLIGHT.

Desperate Struggles to Meet Obligations. FINANCIAL DISTRESS. NEW YORK, January 19. In spite of desperate struggles in the past few days by the Board of Estimates of the city of New York to find a way out of the city's financial distress, it is now feared that an unavoidable crisis has been reached and that default upon notes totalling £.11,700,000 may have to be made to-day.

In addition to these notes, winch are simply the ones considered to be the most immediately pressing, the civic authorities are considerably worried about their ability to continue to meet daily running expenses apart from salaries.

An examination of the position by the "City Record," New York's official organ of civic affairs, discloses that the city has paid no bills since January 1. Salaries have been paid to date, but these have taken every available dollar.

A lengthy conference was held between the Mayor, Mr. J. J. Walker, the city comptroller, Mr. C. W. Berry, and other officials with the president of the National City Bank, Mr. C. E. Mitchell, but apparently was without results, for the bankers appear to be unwilling to advance funds to enable the city to meet its obligations. Large retrenchments have been made already or have been promised, but these are still regarded as insufficient.

One prominent banker stated yesterday : "We are not particularly impressed by the fact that the Board of Estimates has placed about £24,000,000 in projects which are 'on the shelf.' Many of those projects, as a matter of fact, have been 'on the shelf for many years and are likely to stay there, whether the city •has money or not."