Thursday, May 21, 2009

California unlikely to be told 'drop dead'

Back then
New York's 1975 plea for loan guarantees got a curt reply from President Ford, but he never said “drop dead.”

California unlikely to be told 'drop dead'

New York's 1975 plea for loan guarantees got a curt reply from President Ford, but he never said “drop dead.”
New York City's plea for loan guarantees in 1975 got little sympathy from President Ford. But the Golden State's financial mess is another matter.
By Robin Abcarian
9:37 PM PDT, May 20, 2009
Whether California will wrest loan guarantees from the federal government is not yet known, but the plea for help is unlikely to inspire the kind of antipathy that met New York when it was on the fiscal ropes in 1975.

President Ford's memorable lack of sympathy for the city's plight inspired the iconic headline "Ford to City: Drop Dead."

In October 1975, New York City was in a mess, much of it the city's own doing. Residents benefited from a number of public amenities, including rent controls and affordable transportation.

To many policymakers in Washington, New Yorkers were spoiled, arrogant and in need of a financial whupping.

"Any attempt to provide a federal blank check for the leaders of New York City would ensure that no long-run solution for the city's problems will ever occur," Ford said.

Instead of loan guarantees, the president proposed legislation that would allow the city to declare bankruptcy.

Ford never uttered the words "drop dead," but the Daily News' headline reflected what New Yorkers heard.

"We want time to tighten our belts," said Gov. Hugh Carey. "Mr. Ford proposes to put that belt around our necks."

What is less well remembered than the famous headline is that a month later, Ford reversed himself and signed a law giving the city up to $2.3 billion in loan guarantees.

A year after that, he lost New York, and the presidency, to a peanut farmer from Georgia.

robin.abcarian@latimes.com




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