HER OWN BONDS

Waikato Times, Volume 112, Issue 18807, 1 December 1932, Page 3

HER OWN BONDS

AMERICA AND WAR DEBTS. REPAYING 'HOLDERS. HARD-PRESSED GOVERNMENT. Behind the American attitude to the payment of war debts lie oertan factors which dlie average foreigner is inclined to ignore. Of these, according to Mr Norton Clapp, an American lawyer 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 lo regard this aspect of the Federal Government’s position lias led, in Mr Clapp’s opinion, to America being misjudged by certain Australian newspapers. He discussed it with the Wellington Dominion ..on his arrival from Sydney by the Maunganui. What agravnted the position, he 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 ltic men had to work for what llicy got. “Wo are. very much afraid of the dole,” Mr Clapp said. Government Hard Pressed. Road-making schemes and oilier, public works were absorbing greal s'lims of public, money, and for tlie relief of banks large funds bad been provided. The- aim bad been to make Hie banks’ resources more liquid. Certain mortgages were being taken over and measures introduced for die relief of mortgagers. The Government bad been hard pressed, and bad been “having a terrible lime balancing the budget." •■(Hi top of this,’’ said Mr Clapp, “it lias been buying off the war debts hold by I he people. The American nation is up to its ears in debt. When we were paying for that war wc went.

right down Into the pockets of the people. Rich and poor alike bought bonds. So the debts are not held by the Government, hut by the people. However, I think there is a feeling among the people of the country that if they cun gel some reasonable assurance from ihe rest of the world that armaments will be limited there will he a greater chance of war debts being cut down. An Unfortunate Fact. “At present it is an unfortunate fact that 00 per cent, of the Federal taxes have to be used in paying for wars, past and future. If Mint could be brought down it would be a relief.” In 'concluding, Mr Clapp mentioned the possibility of conversion for some of the Government issues. The credit of the Government still stood high, ns had been proved when a loan was lioated some months ago at a verilow rate. The fact was, of course, that the Government had been almost the only thing with which investors fell, secure. Nevertheless, the Government would have io meet large payments to people- who held bonds subscribed to during the war and maturing next year.