Evening star., 1932-10-16
u. S, CREDIT STATUS
RANKS HIGH AMONG
NATIONS Of WORLD
Ratio of Debts to Assets Is
Smaller Than That of
Most Countries.
REDUCTION OF INTEREST
CHARGES AIDS TREASURY
Winners of World War Show
Larger Obligations Than
Germany.
BY MAX WINKLER.

Special Dispatch to The Star.
NEW YORK, October 15.-Those who
incline to appraise the credit standing
OF nation on the basis of statistics
alone will probably be alarmed at the
latest debt figures Of the United States.
For the first nine months, the total in
creased substantially more than 81
750, ,000,0 900, or over Is per cent, bringing
the total at the beginning of the month
up to $2o.611 PAL ,804, almost equivalent
to the level existing a little over seven
years ago.
From a peak reached in August. 1919.
at 26,596. 70l ,643, the debt Of the United
States steadily decreased. reaching a low
point of about S15,75o, 900, 900 at the
end of 1880. In other words, within 81
months, the reduction accomplished
within five and half years to the end
OF 1880 has been almost completely
wiped out
Reduction in Interest.
OF particular interest, however, is the
reduction in interest charges, which
continued at low level in reflection of
extreme ease in the money market Fer
the current year. interest on the debt is
estimated at S700, ,O0O,O ,OO0 or SITS .OOO.-
600 less than was absorbed for interest
payments in 1925, when the debt ap-
proximated the present total. and COM
pairing with s598000,OO0 paid in the
hscal year 1930-3l, which was the small
est interest paid on the war debt.
Professional pessimists should be in
terested in a comparison Of the debt
status of the United States with that
OF other important nations.
OF five countries examined. the show
ing made by the United States is more
favorable than that of the other nations.
with the exception of GERMANY. statis-
tics relative to which are exclusive of
rerarations The total Indebtedness of
the United States aggregates about S167
per capita. compared with about 81.
times as much for Great Britain. and
ll2 times for France Italy ranks fourth
with Sll3.20. Germany is last with a
per capital Indebtedness of S4l.56.
In point of wealth. the United States
is the undisputed leader. Its per capita
assets, estimated at 50 600 compare with
81 .955 for Great Britain, and $3.50 for
FRANCO. Germany is a distant fourth
with $500, compared with a per carita
wealth OF s1.lS4 prior to the war. Italy
is last with s610.
Curious though it may seem. the most
favorable ratio of debt to wealth is
shown by Germany. the loser in the
war For every hundred dollars of
wealth she owes S483. while. victorious
france owes Sl6.48 for every 500 of
wealth, and victorious Great Britain
almost. $50. The United States holds
second place with a debt to wealth
ratio Of 6.42-that is, debt of less
than $3.50 for every s1o0 of wealth.
Italy ranks third with a ratio of sl8.56.
In regard to the amount absorbed for
debt service Germany ranks first with
only S3.70 per capita. The United
States is distinct second with annual
debt charges of 1925 per capitast. This
figure includes expenditure in connec-
tion with debt retirement. Great Brit
ain heads the Its with annual charges
of S27.6l per capita. France is a close
second with s2408. followed by Italy
wit, SLAP. Inasmuch as French and
Italian figures represent appropriations
for the respective ministries CT finance,
the actual expenses in connection with
debt charges are appreciably lower than
the above figures.
Debt Service Ratio.
OF the country's total income. Ger
many eXpepds only 841 per cent for
debt service Italy is distant second
with 1881 per cent. The United States
is third with 28.42 Great Britain
spends for debt charges s40.11 for every
500 of income, while Frances appro-
priations for the ministry of finance are
at the rate of s50.61 for every 500 of
income.
If further proof is required as to the
fundamental soundness of the credit
position of the United States. and the
confidence of the investing public in
. United States Government securities.
fn ho fro inc wv
success of the sale, the other day. of
s45O, 100000 Treasury notes, for which
applications we're received totaling S.
1858 900 900. or more than $3.50 for
every dollar applied for.
Copyright. 1882. by North American News
paper Alliance. 1ncl