Show I I J Uncollected war debts seem scorn to be benot benot benot not the only debts debt that lie le he heavy vy on the spirits of the financially overburdened overburdened American citizen The Te current size sie of municipal debts Is without precedent it il is i asserted in an analysis by Moodys Moody's Investors Service Servie The survey urvey states that the public debt of the United States since the World war excluding federal obligations ob ob- ob has increased from approximately six si billion dollars to 17 billion dollars It cites cUes a national automobile automobile automo automo- bile bie spree as ns one of oC the causes of this rapid growth The remedy Moodys Moody's declares is the same mc as that used by corporations namely a sharp cut in operating expenses and this tills may involve reduction in wage wago scales of municipal and state The he current controversy between Mayor Walker and prominent bankers bank bank- ers era as to the possibility of a n substantial substantial tal loan loa for New York City relief lends particular timeliness to the discussion dis dis- dis of municipal finances the te survey continues For Now York Cit City the indication is i that real estate tax tx collections have held up fairly well wel and the ct city has not previously lad had as much trouble ns as many others in n placing short term ter loans although it i t recently paid 5 2 1 per cent If J for example the city should release that large arge portion porton o of the te debt issued for transportation purposes from the resources re re sources to the tax levy it might not need to reduce other oter operating expenses ex ox- Moodys Moody's places the responsibility for tor archaic methods Inefficiency and id carelessness in the handling of funds directly upon the individual citizen who it accuses of little grasp gasp of the problems of public finance City ity or county government accord accord- lag ig ng to the an analysis lysis may control the salaries and wages of only a n portion porton of the officials and ad e Reverting to specific instances of laxity upon the part of taxpayers the survey urvey turns to an authorization by the he state of New Jersey of ot in n highway bonds made in 1930 At Athe Atte Atthe he the te election electon th the vote was light and not all al voters acted on the referendum dum dun Moodys Moody's S says S Thus a mere fraction of the population voted n a huge debt increase upon the entire tate state Polities Politics however should not be allowed to escape its full ful share of the present responsibility We are arc witnessing wit wit- one of or those strange sange and in frequent periods when a politicians politician's bed of roses becomes a bed of thorns thors The only way in many cases in which taxes can continue to be collected and the banks placated Is to reduce expenses With Wih borrowing already alread hampered by a 3 poor bond market Increased in increased increased in- in creased attention will wi be given pay pay- rolls rols Municipalities and In many cases counties and states were just as extravagant extravagant ex ox- countes as S their Individual citizens in the period ending coding In i the fall al of 1929 In many many Instances highway programs pro programs pro programs grams were based on too short a period pe pc pe- pe nod of building and were inadequately pl planned nned both as to engineering engineer engineer- ing and financing Those states which which have gone at road rond building slowly or have financed a large part of the cost from rom current receipts arcin are arc In better beter shape shapo financially and now see sec some of their neighbors with wih complete com corn highway systems already getting getting get get- ting out of date The Tho gasoline tax tx has been halle as Os a fl solution of ot this problem But ft ii i Is not an entire entre success duo due to Inequitable inequitable able enforcement and injudicious handling The gasoline tax Is not n a panacea for lor state financial ills is In fact notwithstanding special taxation the tho highway burden has already fallen len lento to a n large degree upon the real estate tax tx which in many sections has hns become become be be- come excessive 4 5 8 The Te debt burden per capita capim in some of or the wealthy sections of the country country coun tr try is enormous Moodys Moody's states The Te actual bonded debt per citizen for lor forstate forstate state city county and special purposes pur poses in many sections of oC the country countr exceeds 00 and approaches 1000 And Ad these sections are arc not always boom towns in newly settled areas but include some of or our oldest com corn An Any analysis anal is of or the situation must inevitably reveal that the small town and the agricultural community in inmany inmany many instances have handled their finances fiances better beter than the large larse cities cites and prosperous suburbs The Te remedy as Moodys Moody's sees it i lies les either in a reduction of expenses or debt In many cases expenses can be cut and stop gap borrowing curtailed curtailed cur cur- tailed ed the thc survey asserts We think that the large banks will wm bring brins sufficient sum cleat pressure to bear upon the leading leading leading lead lead- ing borrowing cities cites to trim their expenses ex cx curtail curtal their borrowing and maintain their debt service servie but that the intervening period may appear very disturbing |