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Hokitika Guardian, 3 December 1932, Page 4

The attitude of America in reference to the war debts was discussed by a recent arrival from America, who expressed the opinion that the action of United States had been misjudged. 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 had to work for what they got. They were very much afraid of the dole. Road-making schemes and other public works wer e absorbing great sums of money, and for the relief of banks large 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. Th© Government Iliad been hard pressed, and had been “having a terrible timet balancing the budget.” On top of this it has been buying off tile war debts held by the people. The American nation is up to its ears in debt. When we were paying for- th e war we went right down into the pockets of the people. Rich and poor alike bought bonds. So the debts are not bold by the Government, but by the pooy’e. However, there is a feeling among the people of tbc count]— that if they cm get seme reason 'bid assurance from tbc rest of the, world that armaments will he limited there will he a greater chapee of war debts being cn| down. At present it is an unfortunate fact that 90 per cent, of the federal taxes have tt. bo used in paying for wars, past and future. Tf that could bo •brought down i' would bp a relief. The credit of the Government s f 'll stood high, ?j3 had been proved when a loan Was floated' some months ago at a very lew rate. The fact was, of murso, 1 hnt the Government had hoop almost, the on ty thing with which

investors felt secure. Nevertheless, the Government would have to meet large payments to people who held bonds subscribed to during the war and maturing next year.