Evening star. [volume] (Washington, D.C.) 1854-1972, 1938-05-22
Municipalities
Drained ofCash
Cleveland and CHICAGO
Sources of Revenue
Drying Up.
BY JOHN C. HENRY.

the starvation lines" of the early
1905 have been reported in two
- of Americas great cities-Cleveland
and Chicago-during the past few days.
Bewildered hungry, sick in body and in
soul. thousands have clustered about the
public relief stations of these cities and
read with fright, with dull anger or with
an occasional happy lack of all emotion
that there could be no more relief pay
ments. At certain centers they were told
they might obtain surplus foodstuffs," at
few others there could be obtained
emergency relief" Some wondered what
further misfortune void be needed to
bring them into the classification of
emergency cases.
The majority Of those so confronted
by the prospect of deepening restitution
already have been sufficiently unfortunate
as to be unemployable lacking in the
physical or mental ability to help them
selves even if opportunity were at hand.
Many have lived for years on public as
sistance as the maldistributed wealth and
resources of the worlds richest nation ac-
crued to others. 1t is unlikely, however,
that these people are thinking so much
about how our social and economic systems
should be reformed as about how they
were to obtain the bare necessities of life
In the immediate future.
And just as their needs are imme-
diate so may the responsibility for their
plight be confined to the present and
recent past
Division of Relief Responsibility
In the summer of 1885 it became the
positive policy of the Federal Government
to acknowledge its responsibility for aid to
the needy jobless. if they were in the
''employable" category but to leave wholly
to the States and local governments the
responsibility for supporting the unemploy-
ables. BY December of that year the
transfer of employables from the direct re-
lief rolls of the Works Progress Administra-
ton had been completed.
In the week ending February 90, 1896,
the w. P. A. reached its peak of 3,o35.852.
From that date until the week ending Oc-
tober S, 1887, there was more or less
steady decline to low of 1,448111 Since
then. the trend has been upward with re-
grettable rapiditX until total of 2,627,848
was recorded last Saturday. May IA.
During this period Of approximately two
and one-half years, the States ard local
communities have handled the problem of
the unemployables by varying formulate and
with widely differing effectiveness. The
condition leading to such crises as those
just uncovered in Chicago and Cleveland
have arisen principally. of course. in the
large cities where any trend toward loss Of
jobs usually results in mass unemployment.
Rapidly Rising Burden.
A fair idea of how extensive and rapid
this increasing restitution has been, par
ticularly among those on direct relief. is
given in report only few days ago from
the Social Security Board
Studying all types of public relief, the
statistical service of the board found that
an estimated 100000 persons were re-
ceiving public aid of some kind in March
of this year in 100000 American house.
holds.
All types of relief expenditures for that
month Appropriated S234.800,000, an in
crease of per cent over February. OF
the total. s47,887O00 was contributed by
the States and localities
Dependent for 80 per cent of their total
revenues upon general property taxes. al
ready burdened by excessively high rates,
the cities have found themselves unable to
bear their share of the sharply increasing
load recorded during the past six months.
A few. among them New York, have had
some success with a sales tax and others
hov rfoS, NIT hoc ND
difficult to- administer special levies of other
types.
Chicago, for instance, is now seeking the
permission of the State Legislature for the
city to impose a schedule of taxes on gaso-
line, on checks, on soft drinks and on
cigarettes and other forms of tobacco. The
revenue from such levies, calculated as high
as 100000 for a year, would be earmarked
for relief and relief only" Cleveland,
equally hard pressed, has asked permission
to impose comparable schedule.
New Tax Inequities Created.
Obviously, such emergency type of taxa
ton is being undertaken without due re-
gard for the Implications which lead to vir-
utal confscation or for the damaging eff
Apparently, then, the inadequacy of re-
lief facilities and funds may not be blamed
upon the cities.
Committed to the policy of refusing re-
sponsibility for direct relief to the unem-
ployables, Harry Hopkins, Works Progress
administrator. pulls no punches in declar-
ing fatty in regard to the Cleveland and
Chicago crises:
Il think the responsibility should be
put where it belongs-on the Legislatures
Of these two States. There has been no
complaint from either State that the Fed
eral Government is falling down, and
there have been no requests from officials
or relief agencies in Cleveland or in Chi
cago for additional Federal assistance.
THE situation is somewhat the same
In both States. Each has ample funds
in its treasury, and it is simply the failure
of the Legislature to appropriate for home
relief that has caused the distress. The
State of Illinois has $4,000, 900 in its treas
ury,, and Ohio has sufficient funds also.
It is up to the Legislature to get busy"
Mr.. Hopkins contends that the w. p A.
has done its full share to aid the two
stricken cities. increasing the Federally-
financed work relief rolls in Cleveland
from 10000 to 10000 and in Chicago from