(Immediate Release) (P-60)

RECONSTRUCTION FINANCE CORPORATION

WASHINGTON

September 2, 1932.

The Reconstruction Finance Corporation upon application of the Governor, made available today, to the State of Utah, the amount of $390,000 to meet current emergency relief needs. These supplemental funds are to benefit the county of Salt Lake to the extent of $360,00 and the county of Tooele to the extent of $30,000 and were made available to the State under Title I, Section 1, subsection (c) of the Emergency Relief and Construction Act of 1932.

The Governor will administer the relief funds through the State Relief Committee.

Supporting data from the Governor of Utah pointed out that "due to abnormal delinquencies in tax payments through the State, resulting in a severe shrinking of current revenues, the State was compelled, after paring operating expenses to the bone, to resort to a short time loan of $1,000,000 in June on tax anticipation notes to carry on its purely governmental operations." Another loan of this type may be necessary to provide for the purely governmental activities to the close of the year.

The Governor also asserts that the county government in these counties is confronted with an impossible burden and facing a real crisis. Salt Lake City has current obligations in the form of tax anticipation notes and it is committed not to increase its indebtedness until these notes are retired. In the case of Tooele county, the emergency needs have been precipitated by the great curtailment of mining operations resulting in a payroll reduction from $200,000 to around $35,000 per month. Both banks within the county have failed.