The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-12-04
Trends
Aldrich Speech is
Given More Than
Usual Significance.
: BY VINCENT s. LYONS
Times Financial Editor

- Ii YIN
Times Financial Editor
W1NTHRoR W. ALDRIcH.
w chairman OF the Chase Ma
tional Bank Of New York. the ma
tons largest. bank, delivered a
highly interesting speech yesterday
afternoon before the Common
wealth Club Of San Francisco.
More than ordinary significance
may be attached TO the views of
Mr.. Aldrich for he, unlike many
other bankers, is not addicted to
the habit Of expressing opinions on
every random development in the
financial life of the country.
The head of the Chase National
chose as the topic of his address,
The Financing Of Unemployment
Relief" a problem of the highest
import at the moment. Mr.. Aid
rich's views or the subject we're
being aired only a few hours after
Secretary Of Treasurer Morgen-
thau had announced that the Gov
eminent was offering s900,000,000
OF new securities, the proceeds of
which would be applied toward the
meeting Of relief during the winter.
Undoubtedly the most ringing
phrase of the address was when he
declared that Il think that the
municipalities and states must very
speedily abandon the idea that the
Federal Government is a convent
ent place to deposit burdens which
they themselves are IN position
to bear" Such a remark is the
direct opposite of the proposal of
Mayor La Guardia of New York
City, that municipalities be per-
mitted to get money for relief
needs from the United States Gov
eminent at one-eighth of l per
cent
MIR. ALDRICH continued along
wi this trend of thought and
expressed the belief that munich
palities and states must realize
that they can not go much far
Their in financing relief by borrow
ing rather than by current taxes.
If they are to preserve their credit
they must soon bring their bud
gets into balance, he said, which
means that in part new sources Of
local taxation must be found.
The Chase National Bank is one
OF the institutions which has been
helping to finance New York City's
roller ana other needs and the city
has been encounterlng little diff
nculty IN bringing about a balance
of it's budget. In a further effort
to restore equilibrium the NUM-
cipality last week levied per
cent sales tax and 3 per cent
tax on utility revenues. Both OF
these measures come up for ap-
proval tomorrow.
In view of this it would seem
that New York City has attempted
to meet Mr.. Aldrich'S demands by
creating new sources of local taxa
ton. The only trouble is, how
ever, that those persons who are
asked to share the burden of in
creased taxation Immediately be-
gin to protest.
n
TTOME relief, in the opinion of
Il 4 Banker Aldrich, is better
adapted for the present situation
than is work relief BY home re-
lief, it is pointed out, is meant the
distribution of food, clothing, coal,
etc, and a certain amount of cash
for rent. gas and electric light
bills. Work relief, the speaker
added, has supplanted this method
and has been based on the theory
that the unemployed are less like
" to become demoralized if they
are working for what they get and
that the state receives something in
return for the relief extended.
A great difficulty in meeting the
problem of unemployment relief is
the fact that the granting of re-
lief, and particularly the granting
of work relief, is so apt to become
the prey of politicians, Mr.. Aldrich
AYERS. To arrest this tendency, the
head of the Chase National sug-
gested the creation of some new
inStrumentality in each locality
which is made up neither of poll
ticians nor of social workers, which
will study the situation, follow its
development daily and see to it
that relief is adequate, and eco
nomically administered.
Complete accord with this pro-
posal will be expressed on all sides.
With the unemployment problem
the nations chief obstacle and the
leading drain on resources every
effort should be made to get the
maximum of relief at the minimum
of cost and waste.
Turing the course of his adj
II dress Mr.. Aldrich declared
that he, with other members of
the Chase organization. has been
making a tour of the country
studying business conditions. Chi
cago. Milwaukee, st. Paul, Mime
apolis, Seattle and Portland were
visited and from the tenor of Mr..
Aldrich's remarks conditions are
beginning to show material i'm
provement.
Both in the eastern portion Of
the country. where manufacturing
is the principal activity, and in the
agricultural communities farther
west there has been during the last
few weeks not only a recovery
from the pessimism which had ex-
listed during the summer months.
but also a real upturn in the trend
of business, Mr.. Aldrich reported.
Business sentiment as whole
is distinctly better" he continued.
and believe that it might be said
with truth that confidence is rap
idly being re-establiShed in those