Evening star., 1933-03-12
Nation Occupies Outstanding
Lead on Basis of Per Capita
Obligations.
NATIONAL RESOURCES
OUTWEIGH LOANS is TO !
Statistics Show Extent to Which
Other Countries Have Gone in
Expanding Their Borrowings.
BY DIR. MAX WINKLER.
Special Dispatch to The Star.

NEW YORK, March Livery time
the United States Government is about
to issue a new loan, whether for pro-
ductive purposes or to refund maturing
obligations, many hold up their hands
in horror. What, one hears them ex-
claim. a new loan on top of an already
unbearably heavy debt and an equally
-unbearable debt burden? That such
views are untenable. and the result Of
superficial examination Of or complete
Jack Of familiarity with the situation
Is evidenced from latest statistics.
Americas total debt aggregates to-
day about $40, 500 900 900, or about $5,-
00,000,000 less than the peak figure
established in the first postwar year
Reduced to per capita basis, the an
debtedness Of the Nation amounts to
about $l65 for every man, woman and
child living in the United States.
Against this debt, there is the national
wealth Of the country, estimated con-
servatively at $3.50 per capita. In
other words. for every dollar of debt
the United States possesses more than
SIG Of national resources.
Debt Comparison.
This ratio is encouraging enough to
warrant the assertion, that the Govern
ment's debt Is not only not too heavy
but even an increase need not be viewed
with especial alarm. This thought is
advanced because Of the widespread
belief that the credit Of the Govern
ment would become seriously impaired
II 1t saw mt to assume additional
liabilities. particularly in connection
with protection which it might be called
upon or care to give to depositors. This
Is apparent If comparison is made with
similar statistics Of other important
nations
Take Great Britain. for example. Her
debt amounts, at par of exchange, to
about $36 500, ,000,0 900, or close to $500
per capita, or almost five times Americas S
per capita Indebtedness. The wealth
OF the Island Kingdom is estimated at
$2,l70, equivalent to q ratio of only
about %. That Is, for every dollar OF
debt the British possess less than So
Of resources.
On the basis Of a similar rate Tor
the United States, the debt of the coun-
try could @ be increased to approximately
Sl20, ,000, ,000, 900, and the Nations in
debtedness would still represent a
smaller percentage Of the resources
than IN the case Of Great Britain.
A large debt does not necessarily
imply insolvency, just as a small in
debtedness Is not dependable criterion
for nations solvency. Great Britain,
with a per capita debt of close to $500
Is still regarded as a first-class credit
risk, while Chinas credit Is relatively
low despite the fact that her per capita
debt amounts to only about so cents
There are many Intangible factors
which enter into the making I'D of a
nations balance sheet Good will is
not the least significant of these fac
tors. Certain corporations value their
good will at many millions. Why could
not nation adopt similar policy?
Compared with debt and wealth sta
tistics of other countries, the position of
the United States is distinctly more
satisfactory. The debt of France, in
Guiding political or intergovernmental
obligations, amounts to about Sass per
capita, while her wealth Is estimated at
$1,450. That IS to say, for every dollar
of debt France has less than S3.25 Of
resources. On the basis of French sta
tistics, the debt of the United States
should be approximately $103, 3,o00. 900, ,000
Other Nations Status.
The case Of Italy is also interesting
The kingdoms total Indebtedness, in
Guiding intergovernmental debts and
commitments to the Vatican, aggregates
about $242 per capita, compared with a
per capita wealth Of $605. In other
words, for every dollar Of debt the
kingdom Of Italy possesses only about
$3.50 Of assets.
Applying these figures to the United
States, it would seem that Americas
Indebtedness could be increased to SUBJ
stantially more than $3.50, 900 ,0OO.0 900.
Switzerland, which for some reason
or other seems to have appealed to
Americans as haven for funds fran
tically and needlessly withdrawn from
institutions, is also, on the basis of sta
tistics, in less satisfactory position
than the United States. The debt of
the Swiss Confederacy aggregates $237
per capita, while the national wealth is
estimated at $2,375, ratio Of about
10 to !.
Copyright, 1888. BY North American News
paper Alliance. Incl