NEW YORK’S FINANCES

Greymouth Evening Star, 2 October 1933, Page 7

NEW YORK’S FINANCES

BANKS TO TAKE CHARGE TAMMANY CLEAN-UP [BY CABLE PRESS ASSN. COPYRIGHT.] NEW YORK, September 29. New York City has accepted a plan for strict regularity, by which the banks are virtually to control the City's methods of taxation for the duration of a four year credit, plan. This is in return for an allowance of 54 million dollars until December, and for the creation of a revolving fund to save the city from virtual bankruptcy. Following on the city’s acceptance of this plan, there was a development in the political situation to-day, with an indication of a possible overturn of Tammany Hall's control of municipal affairs at the coming November election. This was the announcement by Mr McKee that he will then contest the Mayoralty of New York as an Independent Democrat. Mr McKee, as cabled in October of last year was then a Mayoral candidate, who received sensational evidence of Ins popularity when, although Mr O’Brien was elected Mayor, the former’s name was written on ballot papers by almost three hundred thousand voters.

Tammany defections noted in recent primaries, indicate Mr McKee has a good chance of election, although the situation is further complicated by the candidacy of Congressman La Guaidia, on a, third so-called Fusion ticket.

Mr McKee is said to have the support of President Roosevelt, who is reputed as havmg a desire to oust Tammany Hall from the control of the New York Democratic Party.

SHIPPING SCANDAL EVIDENCE OF GRAFT. WASHINGTON, September 29. The Senate Committee to-day received evidence that during both the Coolidge and the Hoover Republican Party Administrations, the Export Steamship Corporation obtained 45,230,000 dollars in Federal grants, and that the Line bought for 1,351,000 dollars 23 ships, which had cost the U.S. Government 42,114,000 dollars. The Company still owes the U.S. Government 1,246,000 dollars. Its mail ■subsidy alone totalled 18,397,000 dollars for a ten year period. It was alleged that a 500 dollars tailoring bill had been paid by the subsidiary concern ’ for a former United States Shipping Board Chairman. The vessels were sold to the Export Company at between 6.66 and 7.50 dollars per ton. while another bidder offered eight dollars. The Treasurer of the Export Line testified that the Company was in a “worse condition now than in 1930.”

BANKS TO RE-OPEN.

WASHINGTON, September 29.

It is announced that the United States Treasury has completed plans to re-organise and to re-open three hundred and seventy-five National Banks in thirty-seven States. _ The last general banking report showed’ that 275 banks with deposits of 1765 million dollars, to have been unlicensed, as compared with 13,080 banks of all kinds operating on an unrestricted basis, with deposits totalling 31,930 millions of dollars.