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Show Disastrous Situation U. S. Senator Jake Garn said the Senate Banking Committee's vote to approve $1.5 billion in long-term loan guarantees for New York City sorsens a situation in which the federal government govern-ment is acting as the "bos" of a major American city. Garn, one of three members of the committeeto vote against the 15-year guarantees, also said the vote "reduces the pressure on the city fathers to end their wasteful practices and balance the budget." The Utah Republican noted that in 1975 he unsuccessfully un-successfully opposed federal guarantees for short-term, seasonal loans to the city "because of the disastrous precedent of involving the federal government in local affairs. "But the new plan is much worse," he said. "It will continue that involvement for nearly two decades and virtually turn New York City into a ward of the federal government." Garn said he agreed with Committee Chairman William Proxmire that the guarantees are wholly unnecessary. un-necessary. "I remain convinced that adequate sources of funds exist in New York, particularly par-ticularly in the state and city employees' pension funds and local financial institutions, to solve the problem" he said. He pointed out that New York officials had indicated that $1 billion in loan guarantees would be adequate, "but the committee com-mittee was insistent on being overly generous." |