WAR DEBTS

Hokitika Guardian, 23 December 1931, Page 3

WAR DEBTS

AMERICAN OPINION. AUCKLAND, December 19. Outside the opinion of the politicians, public opinion ill America is in favour of the cancellation of war debts, said Mr E. D. Reed, who arrived in Auckland by the Ventura. He is going to 'Sydney with his wife 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’ attitudfe,” he said. “The ‘Honour or Dollars’ more or Jess represents their views. Politicians, on the other hand, are concerned with debars and cents, talk of which catches ’ 6 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 ,tlre 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 Rebd visited, the Government was offering three dollars (about H2s) .a day for loading works, and even though that wage was .exclusive of transport, i:t was refused by some. “GOLD WILL NOT HELP.” „ Speaking of tire 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, £IOOO, or .5000 dollars on the old reckoning and no children, would be taxed on 3000 dollars, with 2000 free. For each child under sixteen years he was allowed 300 dollars.

*Mr 'Reed said he did not think that America’s large holding of gold would help her. “The dollar will depreciate before it will improve,”, he said. America refused to accept payment - in goods, on account of war debts owing, and .had demanded payment in gold. That, fie thought, was on account of the fact that tariff walls in America had made for over-production there, with a consequent difficulty of disposing /of 'goods locally manufactured, even before those imported into the country could De considered. He thought this fact that (England had consented to protect herself with a tariff would help her trader “It- -will prevent oher.-Wfbecomi-ngi the* dumping ground of the world,” he said..