WAR DEBTS PROBLEM

Taranaki Daily News, 21 December 1931, Page 15

WAR DEBTS PROBLEM

AMERICA AND CANCELLATION. SIDELIGHTS. OF DEPRESSION. Outeide the opinion of the politicians, public opinion in America is in favour of the cancellation of war debts, said Mr. E. D. Reed, who arrived at Auckland last week. He is going to Sydney with hisjvife.to take over the position of manager for Australia of an advertising agency. Mr. Reed said there was an organisation in the United States whose avowed object was the cancellation of "debts. “They object to this ‘pistol at the head’ attitude,” he said. “The book ‘Honour or Dollairs’ more or less represents their view. Politicians, on the other hand, are concerned with dollars and cents, talk of which catches the vote.’’

Economic conditions were gradually becoming better, he said, but consumers as well as producers would have to see a lower value given to the dollar before things became normal. The depression, while undoubtedly real, was worse in some States than in others. Money “drives” to aid the unemployed were being inaugurated all over the country. Some towns had their share collected, ten days before the allotted time. Some of the unemployed were taking advantage of public generosity. In one ■place which Mr. Reed visited, the Government was offering three dollars (about 12s) a day for roading works, and even though that wage was exclusive of transport, it was refused by some.

Speaking of the falling off in revenue and the deficit expected, Mr. Reed said-that there was in America an agitation for a sales tax, or an increased income tax on the incomes of those in receipt of over £BOO a year. A man with an income, of, say, £lOOO, or 5000 dollars on the old reckoning, and no children, would be taxed on, 3000 dollars, with 2000 free. Eor each child under 16 years he was allowed 300 dolMr. Reed said he did not think that America’s large holding of gold would help her. "The dollar will depreciate before it will improve,” be said. America refused to accept payment in goods, on account of war debts owing, and had demanded payment in g» 1{ l- That, he thought, was on. account of the fact that tariff walls in America had made for over-production there, with a Consequential difficulty of disposing of goods locally manufactured, even before thoee

imported into the country could be.considered. He thought the fact that England had consented to protect herself with a tariff would help her trade.:,"lt will prevent her becoming the dumping ground of the world,” he said.