Lot 24: Ford, Gerald R. Historic typed letter signed as President, 2 pages (10 ½ x 7 in.; 267 x 178 mm.)

Profiles in History

December 18, 2012
Calabasas Hills, CA, US

More About this Item


Description:

24. Ford, Gerald R. Historic typed letter signed as President, 2 pages (10 ½ x 7 in.; 267 x 178 mm.), “Washington, D.C.,” 14 May 1975, the Honorable Abraham D. Beame, Mayor of New York City, on White House stationery.

Ford refuses to bail out New York.

Ford writes in full: The purpose of this letter is to respond to your and Governor Carey’s request to me for my support for Federal legislation which would enable the City of New York to use the credit of the United States for a period of 90 days and in the amount of $1 billion.  As you and Governor Carey explained it to me, this 90-day period would enable the City to bridge the period needed for the New York State Legislature to act upon your request for increased taxing authority and subsequently enable you to submit, and the City Council to adopt, a balanced budget for the fiscal year beginning on July 1, 1975.

I was deeply impressed with the problems you and the City Council must face in the next few weeks in meeting the financial problems of the great City of New York.  I was also deeply impressed with the difficult steps confronting you to eliminate the extraordinary imbalance between current revenues and current expenses.  However, it was also clear that the City’s basic critical financial condition is not new but has been a long time in the making without being squarely faced.  It was also clear that a ninety day Federal guarantee by itself would provide no real solution but would merely postpone, for that period, coming to grips with the problem.

For a sound judgment to be made on this problem by all concerned, there must be presented a plan on how the City would balance its budget.  This, given the amount involved to accomplish that balance, would require an evaluation of what the City can do through curtailment of less essential services and subsidies and what activities the City can transfer under existing state laws to New York State.

Fiscal responsibility is essential for cities, states and the Federal government.  I know how hard it is to reduce or postpone worthy and desirable public programs.  Every family which makes up a budget has to make painful choices.  As we make these choices at home, so must we also make them in public office too.  We must stop promising more and more services without knowing how we will cover their costs. [Highlighted in margins with red marker]

I have no doubt that the adoption of sound budget policies would have a substantial and beneficial effect on both short and long term credit of the City of New York.  More specifically, in regard to your request to me for support of Congressional legislation to provide Federal backing and guarantee of City debt, I believe that the proper place for any request for backing and guarantee is to the State of New York.  For such `bridge loan legislation’, it seems to be both logical and desirable for the State of New York to arrange under its laws a ‘bridge loan’ to the City in the amount that you estimate will be needed during the City’s fiscal year.

In view of the foregoing considerations, I must deny your request for support of your Federal legislative proposal.
[Highlighted in margins with red marker]

I have asked Secretary Simon to follow closely the credit situation of the City of New York over the next few weeks, and to keep me informed.  The Federal Reserve Board, under its statutory responsibilities, will, I am sure, likewise monitor the situation very closely.

Secretary of the Treasury William E. Simon, a holdover from the Nixon administration, headed Ford’s Economic Policy Board in charge of coordinating the administration’s overall economic policy, a tight money policy which sought to fight inflation (despite rising unemployment, up to 9.2% by June, 1975) by reducing government spending.  In early 1975, President Ford was asked by financially strapped New York City to lend them federal funds for the famous New York City Bail Out.  In this historic letter, President Ford refused.  Finally, on November 26, 1975, after the city itself raised taxes and cut spending, Ford signed legislation extending $2.3 billion in short-term loans, enabling New York to avoid default. 

Request more information

Payment

Accepted forms of payment: American Express, COD (cash on delivery), Discover, MasterCard, Money Order / Cashiers Check, Personal Check, Visa, Wire Transfer
Shipping: For secure, convenient shipping, Profiles in History uses Federal Express exclusively for Domestic and International shipping, unless the buyer requests other arrangements in writing. Immediately after the sale, please contact our office for a shipping quote. Buyer is responsible for insuring their shipment. Shipping and handling charges will be added to your final invoice.
International Shipments: Buyer is responsible for all insurance, customs, import permits, taxes, duties and/or fees incurred with respect to their purchase. Shipping and handling charges will be added to your final invoice.
For those pieces that require special shipping and handling by a third-party shipper, the buyer is required to make all necessary arrangements for the transport of their purchase directly with the shipper.
Possession and Removal, Charges: No portion of any lot may be removed from the premises or possession transferred to Buyer unless Buyer has fully complied with these Conditions of Sale and the terms of the Online Registration, and unless and until Profiles has received the Purchase Price funds in full. Notwithstanding the above, all property must be removed from the premises by Buyer, at his or her sole expense, not later than seven (7) calendar days from the invoice date. If all or any property has not been so removed within that time, in addition to any other remedies available to Profiles all of which are reserved, a handling charge of one percent (1%) of the Purchase Price per month will be assessed and payable to Profiles by Buyer, with a minimum of five percent (5%) assessed and payable to Profiles by Buyer for any property not removed within sixty (60) days. Profiles shall additionally have the option, in its sole discretion, of transferring any of such property to a public warehouse at the full risk and expense of Buyer. Profiles, in addition, reserves the right to impose a late charge of fifteen percent (15%) per year on the Purchase Price if Buyer does not make full payment in accordance herewith. Profiles and Buyer acknowledge and agree that these charges are reasonably imposed to partially compensate Profiles for losses and expenses associated with any such delays.
Buyer's Premium
23.0%
From: To: Increment:
$0 $499 $25
$500 $999 $50
$1,000 $1,999 $100
$2,000 $4,999 $250
$5,000 $9,999 $500
$10,000 $19,999 $1,000
$20,000 $49,999 $2,500
$50,000 $99,999 $5,000
$100,000+ $10,000
Buyer: BY EITHER REGISTERING TO BID OR PLACING A BID, THE BIDDER ACCEPTS THESE "CONDITIONS OF SALE" AND ENTERS INTO A LEGALLY, BINDING, AND ENFORCEABLE AGREEMENT WITH PROFILES IN HISTORY.

READ THIS BEFORE YOU BID: NO BID MAY BE PLACED IN ANY MANNER UNLESS THE BIDDER HAS FULLY REVIEWED AND AGREES TO ALL OF THE "CONDITIONS OF SALE" PRESENTED ON-LINE. BY PLACING ANY BID, THE BIDDER REPRESENTS AND WARRANTS TO PROFILES THAT HE OR SHE HAS FULLY REVIEWED AND AGREES TO BE BOUND BY ALL OF THE "CONDITIONS OF SALE" AND THE TERMS OF ON-LINE REGISTRATION. WITHOUT SUCH REPRESENTATION, WARRANTY AND AGREEMENT, PROFILES WOULD NOT PERMIT THE BIDDER TO BID.

AS SET FORTH IN THE "CONDITIONS OF SALE", FULL PAYMENT MUST BE RECEIVED BY PROFILES NO LATER THAN SEVEN (7) CALENDAR DAYS OF THE AUCTION OR WITHIN FIVE CALENDAR DAYS OF THE INVOICE DATE, WHICHEVER IS LATER. PURCHASE PRICE IS THE SUM OF FINAL BID AMOUNT PLUS BUYER'S PREMIUM (23% OF FINAL BID PRICE), PLUS APPLICABLE SALES TAXES AND SHIPPING. BID INCREMENTS ARE SET FORTH ABOVE.
Photographs, Illustrations and Screen Sh: Photographs, Illustrations and Screen Shots: Unless otherwise explicitly set forth in the catalog description for an individual item, all photographs, illustrations, and screen shots are furnished solely for reference purposes and not as a statement, representation or warranty that the image depicted is the exact item offered. Due to the fact that multiple props, costumes, and other items are customarily made for and used on or off screen in a motion picture or other program, Profiles cannot and does not represent or warrant that the specific item depicted in the photograph, illustration or screen shot is the very same item offered at auction.
Trademarks: In the catalog descriptions, Profiles takes steps to identify and provide provenance for an item offered at auction. In many cases, the items offered were used in or in conjunction with motion pictures or other programs and is furnished in order to fully identify and describe the item offered at auction, including photographs, illustrations, and screen shots. Profiles in no way claims any connection to or relationship with the producers of the motion picture or other program. In all cases, the use of the titles or other elements of a motion picture or other program is for informational purposes only.
Copyrights: Unless otherwise set forth with respect to an item offered, the item offered at auction is a one-of-a-kind original piece, and Profiles makes no statement, representation or warranty concerning the copyright of such item. Depiction of the item in the catalog and other auction promotions is purely for informational and reference purposes regarding the offering of the item at auction. Unless otherwise set forth with respect to an item offered, Profiles makes no statement, representation or warranty concerning the successful bidder's right to copy, reproduce or adapt for any purpose any item offered at auction.

Important note to prospective bidders and disclaimer: Please note that all items in this auction are sold in "as is" condition. We do our best to properly describe all materials herein, but normal wear and tear is common due to the fragile nature of the items including their age and use in film and TV productions. We are not responsible for a zipper not working, a piece missing from a prop, etc. Tears or alterations to the fabric or original design of a costume, or broken/missing pieces to a prop are to be expected. While many of the props, costumes and other memorabilia are currently displayable in their screen-used condition, these items may require some restoration to be returned to their pre-production state. Many of the items featured have been modified and altered for subsequent productions and may differ from the original production usage. The term "working prop" denotes that the prop was originally made to do something unlike a static prop. This does not mean that the prop works today, although in many circumstances it may be possible to have the prop restored to its original configuration.

We strongly encourage you to either preview the items before bidding, or call for a more specific condition report on items of interest.
Please remember that the buyer is responsible for all shipping charges from Profiles in History's offices in Calabasas Hills, CA to the buyer's door. Items that are of unusual size and/or weight will require special handling and will incur an additional shipping premium as charged by the carrier. Please see Terms & Conditions of Sale.
Important Note: Important note to prospective bidders and disclaimer: Please note that all items in this auction are sold in "as is" condition. We do our best to properly describe all materials herein, but normal wear and tear is common due to the fragile nature of the items including their age and use in film and TV productions. We are not responsible for a zipper not working, a piece missing from a prop, etc. Tears or alterations to the fabric or original design of a costume, or broken/missing pieces to a prop are to be expected. While many of the props, costumes and other memorabilia are currently displayable in their screen-used condition, these items may require some restoration to be returned to their pre-production state. Many of the items featured have been modified and altered for subsequent productions and may differ from the original production usage. The term "working prop" denotes that the prop was originally made to do something unlike a static prop. This does not mean that the prop works today, although in many circumstances it may be possible to have the prop restored to its original configuration.
We strongly encourage you to either preview the items before bidding, or call for a more specific condition report on items of interest.
Please remember that the buyer is responsible for all shipping charges from Profiles in History's offices in Calabasas Hills, CA to the buyer's door. Items that are of unusual size and/or weight will require special handling and will incur an additional shipping premium as charged by the carrier. Please see Terms & Conditions of Sale.
How will I receive my property?: For secure, convenient shipping, Profiles in History uses Federal Express exclusively for Domestic and International shipping, unless the buyer requests other arrangements in writing. Immediately after the sale, please contact our office for a shipping quote. Buyer is responsible for insuring their shipment. Shipping and handling charges will be added to your final invoice.
International Shipments: Buyer is responsible for all insurance, customs, import permits, taxes, duties and/or fees incurred with respect to their purchase. Shipping and handling charges will be added to your final invoice.
For those pieces that require special shipping and handling by a third-party shipper, the buyer is required to make all necessary arrangements for the transport of their purchase directly with the shipper.
Possession and Removal, Charges: No portion of any lot may be removed from the premises or possession transferred to Buyer unless Buyer has fully complied with these Conditions of Sale and the terms of the Online Registration, and unless and until Profiles has received the Purchase Price funds in full. Notwithstanding the above, all property must be removed from the premises by Buyer, at his or her sole expense, not later than seven (7) calendar days from the invoice date. If all or any property has not been so removed within that time, in addition to any other remedies available to Profiles all of which are reserved, a handling charge of one percent (1%) of the Purchase Price per month will be assessed and payable to Profiles by Buyer, with a minimum of five percent (5%) assessed and payable to Profiles by Buyer for any property not removed within sixty (60) days. Profiles shall additionally have the option, in its sole discretion, of transferring any of such property to a public warehouse at the full risk and expense of Buyer. Profiles, in addition, reserves the right to impose a late charge of fifteen percent (15%) per year on the Purchase Price if Buyer does not make full payment in accordance herewith. Profiles and Buyer acknowledge and agree that these charges are reasonably imposed to partially compensate Profiles for losses and expenses associated with any such delays.
View full terms and conditions