Breakdown in the Credit of American Cities
Many American cities have abandoned attempts to dispose of issues of bonds within the last two or three months because of unsatisfactory bids. In nearly all of the larger cities more or less drastic cuts have been made in governmental expenses. The treasurer of Cook County, Illinois, announced on May 30 that the county must default, June 1, on about $900,000 bonds and interest, because of tax delinquencies and the failure to find buyers for $5,000,000 worth of tax anticipation warrants. It was also stated that only 41 per cent of the 1930 taxes for Chicago and Cook County had been collected—a delinquency amounting to about $99,000,000.
A list prepared in March, 1932, showed 122 cities and 104 counties, ...