Show Banks Command Gotham Determined City's Credit Must Not Fall 3 Tammany Splurge Curbed By DELOS SMITH United Press Staff Correspondent NEW YORK Jan 22 No 22 No municipality allty anywhere has a better credit rating than New York City with its assessed property valuation of 20 and its long standing unimpeachable record of having never railed failed an obligation Last fall it her bore rowed owed money and paid only 1 8 3 per percent percent cent interest Yet when the city borrowed bor- bor rowed owed this week to tide over ver a temporary fiscal emergency it had to accept an eleven day loan was forced to pay 6 per cent interest and nd obtained these stringent terms only after lengthy negotiations It does not mean that New Yorks York's credit is in any way impaired or that thaC here thre is the slightest danger of deault default default de- de fault ault on municipal obligations It does docs oes mean that after ten years of unprecedented un un- spending spending often criticized as reckless and extravagant ex cx- the Tammany administration tion ion has been forced to toe the mark markby marky b by y the Wall street bankers who Insist inist insist in- in that the city put fiscal house housein in order if they are to open their purses for further financing In a word the bankers do not regard New Now NewYork NewYork York City a good financial or moral risk isk present conditions being what they icy are COSTLY USELESS JOBHOLDERS These conditions have more to do with supposed waste extravagance corruption and loose management in New Tew York City affairs than with top heavy or dangerous structure of or debt The bankers have reason to believe that hat municipal is littered with deadwood highly highly paid but useless jobholders that jobholders that the municipal pal al budget has increased out of ot all reason eason in twelve years that lat the Hofstadter legislative com com- now investigating New York City affairs has revealed evidence of ot bad ad faith and in some instances bad ethics in the management of municipal pal al affairs Therefore the bankers I I have lave said to the city of ot New York pre pre- I what they would say to a pr private 1 vate ate corporation seeking financial aid under the same circumstances put circumstances put I your affairs on a sound conservative business basis practice basis practice economy and I efficiency in management management eliminate eliminate waste vaste and extravagance When you do this well we'll lend you all the money you n need ed And where all aU municipal reform elements backed by courageous crusading cru cru- ading newspapers failed to shake I Mayor James J. J Walker and his Tammany Tammany Tam Tam- many confreres out of the habits of ot princely spending the bankers sueI sue sue- I Last fall fail citizens appeared before the board of ot aldermen and anti protested against an an estimated 1932 budget Some estimates place it as high as They were vere heckled b by their public servants and arid several were forcefully ejected from rom the hall hail But today these same office holders are frantically reduce lag ing ng expenses eliminating useless expenditures ex cx- all all because some gentlemen gentlemen gentlemen gentle gentle- men down in Wall street ordered it done BANKERS SAY CUT MORE I The Tammany administration already al ale ai- ai ready has placed on its suspense calendar projects and proposed expenditures expenditures ex ex- ex that would have cost The bankers think this sum negligible in its application to the fiscal fiscal fis fis- 0 cal structure that dictates credit rat rat- lag ng Therefore they are still paring and will continue to pare until the Wall street men are satisfied One of ot the projects to fall was the home lome relief bureau o of the department of public welfare opened to give physical relief to families of the un un- un employed The bankers ruled the city could not afford it but the charity was vas saved through a loan of from rom the emergency unemployment relief committee which was matched with a gift from the New NewYork NewYork NewYork York state temporary relief admin admin- Further economies economics will be effected because the bankers hold a n powerful club The eleven day loan was vas to meet In obligations due duc uc Wednesday To make up the balance the city had to draw on its ready cash which left some on hand a sum when the extent of municipal day to day needs are arc con con- compares to a Main street merchant with in the bank In addition the city has obligations totaling over to jo o meet be be- I tween now and May when the first 1032 1932 tax ta payments are due This money must come from Wall street If U it is not forthcoming the financial structure of the worlds world's largest city will topple The bankers do not intend intend in in- tend to allow it to topple but they will save it on their own terms Mayor Walker attacked the bankers and sought vainly for lor congressional aid He lIe wanted a provision for loans to o municipalities from the reconstruction tion lon finance corporation Business observers outside of those definitely affiliated with Tammany hold lold that the attitude of the bankers is s sound This opinion is exemplified in a statement of ot William H. H Wheelock Wheel Wheel- ock president of a realty concern which received wide attention They the bankers have not been blind to the fact that New Yorks York's budget was steadily increased when well managed enterprises have found it necessary to cut wages and reduce overhead in general he said Nor have lave they been deaf to the voices condemning extravagance of management management man man- under the present regime Reports coming from city investigations invest invest- such as are arc now being conducted conducted conducted con con- ducted by Mr Seabury have not added to their confidence in the methods meth of conducting business by this administration except as practiced for or the advantage of the political organizations organizations or or- behind the tion In a word the city of ot New York is not at the moment a good financial or moral risk and must pay the penalty penalty pen pen- alty in the rate of interest consequently consequently consequently conse conse- demanded by the bankers |