Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-13
PUBLIC FUNDS PAY
MOST FOR JOBLESSS
State, County and City Taxes
Meet TWo.Thirds of Cost
of Relief Work.
BY DAVID LAWRENCE.

Special Dispatch to The Raar.
BUFFALO, NJ Y, November 10
More than two-thirds Of the money be-
ing spent for food and shelter and re-
lief throughout the United States Is
coming out of public funds, namely
treasures. The remaining third comes
from private philanthropy.
These figures, just made available by
the Department of Statistics of the
Russell Sage Foundation after an ex-
haustive study Of 458 agencies in 81
cities. provoked some caustic comment
among some of the delegates attend
ing the National Conference on Gov
eminent here, and it was declared that
notwithstanding such Nationwide as
sistance by the cities, the Pres dents
Committee on Unemployment Relief in
Washington had refused thus far to
permit the city officials to have any
voice in the deliberations of the ma
tional committee.
For the first six months of 1881
approximately $8l 900, 900 have been
expended for direct relief by these 80
cities. This does not include any
funds for public buildings or projects
or any costs Of administration, but
represents actual disbursements to in
dividualS IN distress. About SIG 900 600
was expended out of S81 100000 for
what Is known as work relief" name
ly, created jobs supervised by the cities.
Relatively Small Sum.
At the rate Of spending thus far the
total amounts to be expended for di-
rect relief in 1881 probably will exceed
$170 100000, as the second half of 1881
is requiring more funds than the first
half AS appropriations go in a Ma
ton that spends 1000, 900, 900 an
nually for Federal, State and city gov
eminent and q billion for private
philanthropy. the spending Of $780,
000,0 is relatively small sum.
It Is less than 10 per cent of the
amount forgiven the allies and the Ger
man people through the elimination of
the $3.50, 000. 900 payment to the Ameri-
can Government in connection with
the moratorium proclaimed last June.
1t also doesn't begin to compare with.
the sums spent in the last decade, es-
pecially in the first few years after the
war, for relief in Russia and Central
Europe through the generosity Of the
American Government.
The relief just now is being in such
large part raised by taxation, notwith-
standing the yeoman efforts of the pri-
vate agencies, that some of the city
managers here said privately they did
not believe 1t was fair to put the main
burden on the States and cities without
help from the Federal Government Sir
Alexander Bundbury, controller Of the
British post Office and head of the Brit
ish Institute of Public Administration,
who was here making an address, re-
marked that what he saw in Detroit
was not much different from the dole In
Britain, except that In England a fam
lily gets the equivalent Of $3.50 week,
while in Detroit $40 per week Is given
family Of five.
Taxation Is Source.
The practice Of the cities in America
is varied. Some of them are not only
paying out money to give the distressed
families food and clothing, but money
is being spent to help them pay rent.
The source Of these funds is direct
taxation. Several Of the States, how
ever, do not have income tax laws and
cannot get them without the delays in
cident to constitutional amendment, so
the burden Is falling heaviest on real
estate. But even this as o source Is
drying up because Of the numerous FORE
closures Of property for non-payment
Of taxes.
In some cities the amounts expended
for direct relief will match the amounts
raised privately. In 1929 and 1880 the
public funds amounted to rs per cent
Of the total relief funds each year and
In the flrst half Of 1891 1t came down to
66 per cent, but the indications are that
before the end Of the year 1t will mount
to IS per cent again.
Many Of the States. are limited by
constitutional amendment In their bor-
rowing powers. Hence there Is Begin
ming to be . discussion of Federal aid
to the State and city governments either
by leans or by the matching principle,
Just as Is done In the building of roads.
Rural Areas Problem.
It was learned that some members of
Congress who have been investig ating
the true situation in the cities are pre-
pairing legislation to relieve the local
governments of some of the burden.
One OF the chief arguments is that in
dustry, which In times Of prcSpe-it7
distributes Its dividends to shareholders
Ill all parts of the country. leans on q
local government in a particular Vcin-
ity to keep its labor in cold storage"
throughout the depression and that
there Is no way to get proportionate
contribution from such industry, espe-
outside Of city limits.
The problem OF the rural areas which
have limited taxing powers and re-
sources also has been pointed out as
one reason why members Of Congress
from country districts are likely to seek
Federal aid, very much as did Arkansas
year ago.
1t was evident from informal discuss
sions here that many of the city on
Gals feel that tie Presidents Commit
tee for Unemployment Relief, while
doing splendid job in materially in
creaSing the usual sums raised for well
fare work. has not yet tackled the prob
lem OF raising the major expense of
relief and that the cities and counties
and States are left to do this Job with.
out the cooperation of the national
organization set Up by President Hoover
and with no prospect as yet of FEDERAL
aid, as the local taxation piles up Win
ter after Winter a bigger bill for the
property holder 20 pay.
tCopyright, 1870