HOW TO SAVE NEW YORK

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determines to do something." Simon recommended that he be put in charge of a federal bailout "to determine that the city was irrevocably and unalterably on the path to fiscal responsibility before any aid could be given." He added: "Such aid should be so punitive in its terms and so painful that no other city not facing absolute disaster would think of applying for help."

In his forays around the country,

President Ford had been asking audiences for a show of hands from those who favored some kind of federal bailout for New York. In Knoxville, Tenn., last week the President asked: "How many in this room would recommend that the Federal Government go in and take care of the financial situation that the city of New York has?" Inevitably, only a few hands were tentatively raised, which the President obviously regarded as evidence that the people support his position. But top Democrats, including Senators Hubert Humphrey and Henry Jackson and Party Chairman Robert Strauss, charged that Ford was trying to punish overwhelmingly Democratic New York and play on the anti-New York sentiments in the country.

Last week the President seemed to alter his position slightly. He told a press conference that he saw no justification for assisting New York and had not yet heard of any bailout plan that would "justify approval by myself." But he did not say flatly that he would veto any bill passed by Congress. The President hedged: "I just am very reluctant to say anything other than no until I see the fine print."

Despite the rising fears, congressional action seems improbable until the crisis grows even worse. At best, New York Senator Jacob Javits hopes that Senate and House committees will have prepared bills by next month.

Then, if New York again teeters on the very brink of default, Congress can quickly debate, approve and send to Ford an orderly, well-considered rescue plan.

Opposition to helping New York is chiefly based on arguments that it will set a dangerous precedent. Before he softened his view slightly, Burns, for instance, argued that if the Government intervenes in the crisis, "self-reliance in our country, which has been diminishing, will be dealt another blow." Said he: "There's now a tendency to run to Washington to solve all of our problems. The free enterprise system involves a certain degree of risk, and we should let that risk be taken and the consequences as well."

Congress is least likely to approve proposals to loan funds to New York. The approach winning the most support in Congress and among city officials would have the Government guarantee enough Big Mac bonds to keep the city solvent while it undertakes the drastic reforms needed.

All of the eight proposals before various congressional committees would require the Governor to give ironclad assurances that the city would balance its budget within three years. The guaranteed bonds would be taxable and, if the city and state defaulted, would be paid out of their allotment of future federal revenue sharing. Declared Rohatyn: "We're not asking for a handout. Taxpayers elsewhere are not going to be penalized. Quite the opposite; if a federal guarantee is available, other cities will be vaccinated against the virus that has weakened us."

If New York is to get any relief, it