TAMMANY DEFIES BANKS

Poverty Bay Herald, Volume LIX, Issue 17953, 3 December 1932, Page 5

TAMMANY DEFIES BANKS

CANNOT RAISE REVENUE NEW YORK COUNCIL ADDS TO BUDGET NEW YORK. Oct. 21. The board of estimates voted a £111.700.000 budget for 1933, after a stormy session in which £357,000 previously ordered out was restored. 'J he budget, as it stands, cannot be increased, but may be reduced at filial public hearings set for October 27 and The session, devoted entirely to voplaoementn instead of retrenchments, was the T’ammany blot’s “staiulpat answer to the bankers’ warning of impending bankruptcy. The acting-Mayor, Mr. -Joseph V. McKee, call ed the voting of £200,000 for temporary employees in the hospitals a “political racket.” By refusing to lined the demands for drastic, economies, I lie icily finds itself in the peculiar situation of needing money badly and deliberately taking a course that makes it increasingly difficult to borrow a, dollar. At the same time, it was pointed out, the budgetmakers are piling up trouble ahead, for economists are agreed that sufficient revenue to meet such a budget, cannot bo raised by present taxation. The aldermen, it was learned, have been advised the city, which has only £f,200.000 in the treasury, can meet its most pressing lulls bv calling in availaide State funds, using part of the December tax collections or otherwise siuiiVluig departmental finances. The impression among city officials, however, is that this credit-damaging move will not be necessary. They believe the bankers, while continuing to exert pres-

sure for economies, will not dare to refuse the city the money it needs, as any actual collapse of credit would wreck the value of bonds hold by basics.