HER OWN BONDS

Poverty Bay Herald, Volume LIX, Issue 17951, 1 December 1932, Page 4

HER OWN BONDS

AMERICA AND WAR DEBTS REPAYING HOLDERS Behind the American attitudo to the payment of war debts lie certain factors which the average foreigner is inclined to ignore. Of these, according to Mr. Norton Clapp, an American lawver from Tacoma, Washington, the chief one is the fact that the American Government has to meet the war debt to its own people, who subscribed to bond issues which have to be redeemed. Failure to legard this aspect of the Federal Government’s position lias led, in Mr. Clapp’s opinion, to America being misjudged by certain Australian newspapers.' lie discussed it on his arrival at Wellington from Sydney this week. ; ■

What, aggravated the position, lie said, was that the Government had to make immense expenditure to cope with the American internal situation. Unemployment was being met very largely through private and public support, and by local relief on the principle that the men bad to work for what they got-. “Wo are very much afraid of the dole,” Mr. Clapp laid. Road-making schemes and other public works were "absorbing great sums of nublie nionev, and for the. relief of banks largo funds had been provided. The aim had been to make the banks’ resources more liquid. Certain mortgages were being taken over and measures introduced for the relief of mortgagors. The Government bad been hard pressed, and had been “having a terrible time balancing the budget;” “On top of this,” said Mr. Clapp, ‘it bad been buying off the ®ar debts held

by the people.' The American nation is up to its eavs in debt. ' 'When .we were paving lor that war we went right down into the pockets of the people. Rich and poor alike bought bonds. So the debts ire not held by the Government, but bv the people. However, I think there is a . feeling among the people of the country that if they can get some reasonable assurance from the rest of the world that armaments will be limited there will be’a greater chance of war debts being cut down. “At present, it is on unfortunate fact that- PO per cent, of the Federal taxes have to be ised in paying for wats, past and future. If that could bo brought down it would be a relief. ’*