NEW DEAL POLICY

New Zealand Herald, Volume LXXV, Issue 23218, 12 December 1938, Page 13

NEW DEAL POLICY

AMERICAN BORROWING PUBLIC DEBT DOUBLED DISCHARGE OF LIABILITIES FORMER CONGRESSMAN'S VIEWS 1 The significance of the extent of borrowing in the American Federal; policy and its possible outcome werQ j described by the Hon. B. T. Castellow, a former member of the United States Congress and a past Solicitor-General in the State of Georgia, who arrived by the Aorangi last night on a holiday visit to the Dominion. Born and bred a Democrat, Mr. Castellow said he had followed the political. traditions of his family and his State in many years of public office. " Our principal difficulty in the United States lies in the fact that we have plunged deeply into debt, and the question is whether the improved conditions can continue when the time comes for us to discharge our liabilities rather than to increase them," Mr. Castellow stated. "It is comparatively simple for a country—or an individual —to maintain prosperous conditions while its credit is good and it pursues the policy of borrowing money and spending it. The public debt has been almost doubled since the Democrats have been in power." Recent Election Results The recent elections might be construed to show a drift away from thf» present policy, he continued, but the Democrat Party had retained control of the entire Government machinery. Considerable sums of money had beßp expended on New Deal projects, while some had been subjected to criticism, others had proved of very considerable value. It should be remembered that the country was in a deplorable condition at the time when the policy was applied.

The various markets had indicated improved economic conditions at the time of his departure from the United States in November, Mr, Castellow continued. The most serious situation arose from the low prices which ruled for primary products. Realising only eight j cent? a pound, cotton had been sold at! a loss, while the price for wheat had also been most unsatisfactory for growers. Subsidies and other similar aids had been employed to assist the farmers, but nothing in the nature of I a guaranteed price had been suggested. Effect of European Conditions Mr. Castellow, who is a former member of the Foreign Affairs Committer of Congress, said it was thoroughly realised by Americans that their country might be affected by European happenings and this feeling was exemplified . in the sensitivity of the exchanges to any suggestion of a, disruption in European relationships. Great concern ' was also being expressed on the Central European refugee question. Since his voluntary retirement from the Congress last year, Mr. Castellow has visited India, Sumatra, China and Japan. He ws>s in Pekin at the open- j ing of hostilities between the Chinese and Japanese and he said that, after a serenade of gunfire to accompany his breakfast, he contrived to find room in the baggage car of one of the last trains to leave the city.

Although his plans are uncertain, Sir. Castellow intends to remain in the Dominion for some weeks before proceeding to Australia.