Evening star., 1934-06-02
MARYLAND CRISIS
| ON RELIEF ARISES
Hopkins Tells State to Get
$e,OOO,OOO to Match
Federal Funds.

Informed by FedeTal HelleI hu-
ministrator Harry L. Hopkins that,
in the future, Maryland will have to
match all Federal relief funds. Gov.
Ritchie and his advisers today were
wrestling with the problem Of rails
ing s9,OO0,000 the States estimated
share of relief costs for the year
which began yesterday
Only three possible methods can be
followed:
/. A State bond issue which could
not be authorized until the Legis-
lature meets in January unles
special session is called.
2. County or city bond issues or
levies.
3. "A combination of State and
county financing.
Gov. Ritchie said he was uncertain
what course would be taken.
Immediate Steps To Be Taken.
"All I can say at this moment"
he declared. lis that we've got to set
up the machinery at once to raise
some money, and l expect to proceed
along that line Immediately"
In addition to serving notice on
Maryland ~that the Federal Govern
ment no longer would bear the States
relief burden, Administrator Hopkins
rejected the request of State Relief
Administrator Harry L. Greenstein
for S2,50O 900 to meet June's needs
and care for a 100000, 900 deficit for
May.
Instead, the Federal administrator
agreed to advance the State $780,
000 to be charged against the Gov
ernment's share of future contribu-
tionS
Out of that advance" Greenstein
explained, I'VE not only will have to
meet our current needs, but also will
have to take care Of the May deficit
and the Baltimore Emergency Relief
Commissions bill for expenditures for
the last half of May If both of these
items are settled, there will not be
very much left for June's operations
State Leaders Attend Farley.
Greenstein and the Governor to-
gether with Mayor Jackson of Balti-
more. Richard F. Cleveland, chair
man of the Maryland Emergency Re-
lief Commission; William L. Calvin,
a member of the commission. and
Maj. Gen Milton A. Reckord, ad-
jutant general of Maryland. con-
ferred with Hopkins for two hours
yesterday on the crisis which has de-
veloped in Maryland in regard to i'm
mediate relief funds.
At the conclusion of the meeting
the following formal statement was
issued:
The understanding with Harry l..
Hopkins, Federal emergency relief ad-
, miniStrator, is that the Federal Gov
ernment will take care of unemploy-
ment needs in Maryland during the
next IL months provided the State
or its political subdivisions pay half
of the total amount"
Greenstein admitted that the new
plan of financing relief might require
an immediate cut. possibly of drastic
proportions in the States relief load.
Hopkins Sets SIS.OO0.00O Figure.
1t was Hopkins, the Marylanders
said, who estimated that Maryland s
total relief requirements for the year
would be Sl8.000.O0O, which was So
100000 less than the estimate COM
piled by Greenstein.
If the State Is unable to raise its
full quota of $4,000 900. drastic cur
| tailments in every phase of the State S
relief administration will be neces-
| Sary. GreenStein said He noted that
! 86 per cent of the total relief outlay
is made in Baltimore City, which, he
, predicted, would be required to bear
a proportionate share of any reduc-
! tions ordered.
Prior to yesterdays conference
Maryland authorities hoped that the
Federal Emergency Relief Admins
tration would continue to carry the
State on the month-to-month basis
that has prevailed since a similar
conference on March %.
Greenstein had said that TO him
it was "intonceivable" that the F.
E. R. A. might decline to grant his
request for $2.5O0.0OO for June.
Confidence Takes Tumble.
In fact, so confident had the State s
representatives been. that they came
to Washington without any specific
proposition to offer to Hopkins, who.
it was reported, practically dictated
the $3.50 basis for future co-opera-
ticn in the absence of a definite offer
from the State delegation.
The conference was the outgroWth
of his recent announcement that no
further Federal appropriations would
be made for relief in Maryland until
an immediate understanding" was
reached as to how much the State
itself would put up in the future.
The one bright spot in the relief
picture that faced Maryland authori-
ties today was the decline that has
been noticeable in relief rolls in both
Baltimore City and the counties dur
| ing May. This. however, is said to
be caused by seasonable pickup in
employment.
Last year the Legislature author
ized a $l2,00000O bond issue, the
proceeds of which were earmarked
| for Baltimore Citys relief needs. All
! but $4,000 900 of this issue has been
spent and the remainder of the bonds
cannot be sold until August under
the terms of the act authorizing their
| issuance.
While the s2,000,00O would have to
be spent in Baltimore City, it could
be used to match Federal allotment,
leaving $7,O00000 to be raised from
other sources