(Immediate Release) (P-67)

RECONSTRUCTION FINANCE CORPORATION

WASHINGTON

September 12, 1932

The Reconstruction Finance Corporation, upon application of the Governor, today made available $633,180 to the State of Missouri, of which $628,930 is to meet current emergency relief needs in the City of St. Louis, and the remainder for State purposes.

These funds are made available under Title I, section 1, subsection (c) of the Emergency Relief and Construction Act of 1932.

This sum is made available to the City of St. Louis to supplement local, public and private funds. The Reconstruction Finance Corporation was advised that on November 8 the citizens will vote upon a bond issue of $4,600,000 to be used for relief and work relief. The funds made available by the Corporation are intended to cover the period until the proceeds of this bond issue are realized.

In support of the Governor's application it is stated that in the calendar year 1931 the City of St. Louis expended for relief $664,957.54 of local government funds and $1,278,292.42 of private funds for relief, including cost of administration.

In the Crisis Campaign for relief in March of this year the city pledged $600,000 for relief, which is now entirely expended. Recently when a shortage of funds developed the city agreed to advance another $200,000. To meet these advances, tax legislation has been passed that is expected to produce $1,000,000 by July 1, 1933. As it is impossible to anticipate taxes beyond certain limits, the City of St. Louis can assume no more obligations at this time and set them up against municipal revenue. It is further stated that the City of St. Louis has reached the limit of its taxing power on the assessed valuation of real and personal property.

In March of this year during the Crisis Campaign approximately $1,200,000 were raised from private subscriptions. The relief groups of St. Louis will conduct a campaign not later than December of this year for voluntary funds to be expended for relief purposes in 1933.

For the period September 1 to December 31, 1932 it is estimated that $1,345,000 will be required to meet the relief needs in the City of St. Louis. Estimated local funds available to meet this need are $451,608.

With reference to the availability of State funds, it is reported that the tax laws are such as to make it impossible, even if legal, to increase the rate of taxation and secure collections thereon in time to make available any money to relieve the immediate situation. Furthermore, constitutional limitations specify for the counties the rate of taxation determinable on the assessed valuation.