"THE REAL BOGEY"

Poverty Bay Herald, Volume LXIII, Issue 18924, 28 January 1936, Page 11

"THE REAL BOGEY"

UNITED STATES' PROBLEMS

POSSIBILITY OP DPHEAVAT

••The real bogey is that the country has gone too far, and that a revolution will result. Every American admits the possibility of an upheaval but seems incapable of saying what form it will take. Some say it may 'be based on communism, others say it may be based on Fascism, while still" others believe it may be the west and the south against the east. To the traveller it appears that the only revolution likely to eventuate is thai capital will have to take a little less for its share of the profits in the future. One feels that America is too fat for communism." This was one of the many observations made by Mr ('. S. Thomas, n prominent Ohristehurch solicitor, who recently visited California, when interviewed b v the "Press."

With the presidential elections close at hand, i'Yviy American citizen was endeavouring to reach a conclusion as to whether Roosevelt's seemingly fantastic financial schemes had been successful, said Mr Thomas. According to the majority of the press the United Stales was at last emerging from the gloom. .Business was better and retail trade was booming, Christmas trade never before having been better. New cars were speeding from the factories through the showrooms to the buyers, who had held off their replacement orders as long as possible. Agricultural figures were higher, and, according to journalists, the national financial worries were a thing of the past. I'R KSID ENT »S HONEST Y This was not the opinion of the ordinary man of business, added Mr Thomas. He considered President Roosevelt absolutely honest, but there seemed to be a growing feeling that he had overstepped the bounds of sound finance, and had placed the country in a position from which it could not possibly recover.

Last year, for every dollar of income received the country spent two dollars. This year the President promised a reduction in expenditure, but, with the agricultural and unemployment positions as they were, that seemed impossible. The veteran soldiers' cash bonuses, recently sanctioned, would result, in a. still further load being placed on the shoulders of the taxpayer.

"The American to-day is something like the boy who whistles in (he dark," .said Mr Thomas. "lie says the farm lands, the factories, the oil, and the climate arc still there, and, although the natural resources are not inexhaustible, they are far from exhaustion." According to one authority, America could stand a. national debt of 75 billion dollars. At present the debt was between 30 and -It) billion dollars. Even America gasped incredulously at that estimate of her capacity.

President Roosevelt's schemes had been increased by the Town-end scheme of old-age pensions. Townsend was sweeping the country, and where, 12 months ago, his plan was. laughed ill, to-day il was a real issue. Recently ia Michigan in a. by election th" lirsl Townsend representative was elected, Under the scheme every "good citizen" over CO years of age would receive 200 dollars a mouth, the only condition being that it was spent within a month of receipt. The cost to the country would lie at least :!0 billion dollars.

SCHEME KIDJCULED "Ridicule is the only thing that will kill this economically unworkable plan," declared Mr Thomas. Recently a rival plan was propounded in a small community in one of the eastem states, and was called "The re-ure-at-birth plan." Under it each uew-born child would receive a 20,-000-dollav note-oMmnd from the Government, payable in 21 years. Interest, at 3 per cent, would be paid on the amount to the parent or guardian of the child during minority. That interest, together with a sinking fund of IOOQ dollars, would cost the Government 1600 dollars a year, compared with 2400 dollars required by the Towtiscnd plan. If a boy and girl of 21 years married they would have 40,000 dollars capital to live on, and if they became parents of quintuplets their income would increase by 2.V.1 dollars a month. As yet no comment by the Townsend followers litis been beard of this plan.