The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1934-11-12
WALL STREET ORDERS
TAX PLAN TO PRECEDE
NEW LOANS FOR RELIEF
JObless Grid To Fight
Scheme To Place
Load on Workers
By ST GersOn

y
throughout the city were busy yes
terday planning action against the
new attack of the LaGuardia ad-
miniStration and the Morgan
Rockefeller banks on the jobless of
the city, the Daily Worker learned.
A letter from the most powerful
!, banks of the city, made public yes
lterday, was the cause for alarm in
hundreds of thousands of homes
where relief is the sole means of
maintenance.
Fear clutched the hearts of fam
lilies on the relief rolls as the news
broke that another relief crisis" has
been announced. Controller Joseph
D. McGoldrick made loan of
$1,000 900 from bankers group in
order to pay relief this week.
In advancing this paltry sum the
bankers group categorically de-
clared they we're not prepared to
loan any further money to the
city for relief until their tax pro-
pcsals and relief slashing program
had been put into effect
Chief among their proposals is a
tax on sales and jobs and two
cent transit taX-the 7-cent fare
which the LaGuardia administra-
ton is obviously preparing to put
into effect now that the elections
are over.
The Bankers Ultimatum
What is seen as a virtual ulti-
matum by the bankers and the city
government to the masses of New
York was made known by the Con-
troller when he issued to the press
copies Of the letter to him from
the banking group which had loaned
the million dollars earlier in the
day. The letter declares that no
further funds for relief will be
forthcoming unless an adequate"
tax program will be adopted by the
city.
The letter follows:
Dear Mr.. Controller:
"At the conference which we
had with you this morning you
laid before us the fact that the
City of New York will require
additional funds for the purpose
of meeting the expenses of unem-
ployment relief within the next
few days.
"On September IS, 1884, we ad-
dressed letter to the Mayor,
copy of which is attached, in
which we reviewed the various
proposals which were then being
considered by the Joint Commit
tee of the Board of Estimate and
the Board of Aldermen to meet
the unemployment relief needs of
the city. Since that date the
Municipal Assembly has passed
certain tax bills which you realize
are entirely inadequate to meet
the situation, and as a conse-
quence another crisis has arisen
with respect to emergency relief
funds.
I'VE are confident that the bank
ing community will be prepared
to advance funds against taxes
which are adequate to meet the
full requirements of the city for
unemployment relief, and in the
meantime, in order to be help
full, we are prepared to advance
S1,O00,00O additional against the
business tax so as to give time for
the passage of a tax bill which
will be adequate.
'The following gentlemen have
tn 1ntt
to you on behalf of all of us:
"Mr. George Whitney, j. P.
Morgan g. Co.; Mr. B. A. Tomp-
kins, Bankers Trust Company;
Mr.. Samuel A. Weldon, First
National Bank; Mr.. William C.
Potter, Guaranty Trust Company;
Mr.. Gordon S. Rentschler, Ma
tional City Bank
Yours very truly
WINTHROP w. ALDRICH,
chairman of the Board of Direc-
tors Chase National Bank of
the City of New York"
Funds totalling 100000 Dor
rowed from the bankers at 234 per
cent interest on Oct. 2 and carefully
estimated to last until just after
election day, have run out.
A Planned Crisis
Bearing all the earma.ks of nav
ing been we'll planned and coolly
calculated, the relief crisis" is seen
by many observers as the means by
which the big bankers and the
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