The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1934-11-23
CLAIMS CITIES
ARE IN GRIP OF
coin LENDERS
Mayors Ratify La Guardia's
Demand For Cheap Fed
eral Credit
SAYS PROBLEMS OF
CITIES NEGLECTED.
By EVERETT HOLES
United Press Staff CORRESPONDENT


CHICAGO, Nov. 23.-CUP).-
The American Conference of May
ors, claiming the nations cities
are in "the Strengthening grip of
the money lenders" organized a
program last night seeking virtual
abolition of interest rates on mu-
nicipal debts.
| More than 200 mayors, loudly
cheering plan put forth by May
or F. H. La Guardia of New York,
ratified his demand that the fed
eral government provide loans at
interest of one-eighth of one per
cent.
+ Mayor T. Semmes Walmsley of
New Orleans, presiding over
session enlivened by bitter denun-
Citations of large banking inter-
ests, directed Mayor La Guardia
to draft a resolution embodying
his plan.
"From the excited expression I
am sure every delegate is in favor
of the proposal" said Mayor
Walmsley, dramatic figure of the
Louisiana battles of Huey Long,
his political foe.
The misunderstanding plan of
Mayor La Guardia was adopted
after the mayors had listened to
message from President Roose-
welt asking for teamwork" in his
recovery program.
From a member of the presi-
dents national resources board
came a charge that the federal
government, preoccupied with ag-
ricultural readjustment, has neg
lected many problems of the ma
TONS great cities.
DR.. Charles f. Merriam, men,
Der of the resources board and
University of Chicago professor,
struck at extremist proposals"
for decentralized industry, dis
solving the cities and sending the
people back to the farms.
1t is time, he declared, that the
government give closer attention
to the dire demands facing urban
communities.
La Guardia said municipal
credit has been shattered by the
high interest demands and attacks
of "our country's great financiers
whose own credit is not so hot"
eff the money-lenders had used
as much prudence, caution and
scrutiny in palminff OF their Sc
curities on the American people a
few years ago as they are exerciS-
ing now in regard to our munich
pal securities we wouldn't be IN
the present state of affairs" he
declared.
eff we don't fight back, with
every once of energy we have, the
bankers will be running our cities
in a few years. But they won't
be running mine-not at least for
three years"
The plan of Mayor La Guardia
which will be submitted to con-
gress in January, contemplates:
1. A large federal public works
program divided into (a) SELF
iiquidating projects such as hous-
ing; (b) necessary public works,
and (c) projects which would not
otherwise be undertaken.
2. The reduction of interest
rates on municipal borrowings to
one-eighth of one per cent.
8. Simultaneous converting OF
all state legislatures to enact con-
constitutional amendments giving
congress power to fix uniform in
terest rates.
4. Empowering cities to borrow
annually one-tenth of their total
bonded Indebtedness for refund
ing purposes, at one-eighth of one
per cent.
La Guardia, explaining that
nearly one-third of New York
City's S62O,OO0,OOO budget goes
for debt amortization, said any
amount of public works funds
congress might appropriate would
be useless if cities were forced to
pay four per cent interest.