OTHER NATIONAL DEBTS During the first quarter of the present century there was a substantial increase in the national debts of the world, largely the result of the World War. Country after country on the Euro pean continent experienced the same phenomenal growth in gov ernmental indebtedness as has already been revealed for the United States and the United Kingdom. During the period of post-war prosperity only moderate declines in public debt were recorded in most countries. The high level of economic activity in the United States permitted a reduction which was not common among the nations of the world. With the world-wide depression which began in 1929, came a new force toward larger public in debtedness, through lower revenues and in some countries, such as the United States, increased expenditures. The intensity and dura tion of the depression as well as Government fiscal policy led to greatly differing experiences as evidenced by the large increase in the United States and insig nificant change in the British debt. In the 193os, war clouds appeared on the horizon in ever increasing density until finally in September of 1939 war broke out on a large scale in Europe with all major powers partici pating actively, or else taking rather definite sides. There had previously been widespread hos tilities in the Orient when Ja pan entered China, in Africa when Italy conquered Ethiopia, and in Spain where a civil war raged for over two years. These incidents and growing war threats combined to bring about huge armament building pro grams throughout the world, re quiring additional Government borrowing. Thus the quarter of a century beginning with the outbreak of the World War in 1914 was one in which unprec edented increases in public debt occurred. Prospects for a reversal of this trend in 1940 were not promising.
Table III presents figures on national debts for leading coun tries throughout the world. The figures are largely self-explana tory and perhaps suggest a de gree of comparability which in reality is unfounded. The con version of the figures to a com mon monetary unit and a per capita basis, does not remove other and basic limitations to comparability. Particularly es
sential for adequate analysis are data relating national debts to the national wealth, the national income, Government revenues and expenditures, debts of other than the national governmental units and the nature of the tax programs. Such data are not generally available on a com parable basis for many coun tries of the world. In some of the countries shown in the table, the per capita debt ap pears relatively low, but per haps when considered in rela tion to the above factors may be especially burdensome. In absolute amounts the national debts of the United States and the United Kingdom are each nearly four times as large as the national debt of any of the other major countries. The United States debt rose above the British debt late in 1938 for the first time. On a per capita basis, however, the national debts of the United Kingdom and of Austra lia were more than double the average of any other country, total ling $807 and $730, respectively. The United States per capita debt of $317 was practically the same as that of Canada. The Nether lands, France, Belgium, and Italy all report national debts in excess of $200 per person.
Most of the South American countries indicate relatively mod erate or low debt levels.
Generally, per capita incomes are also low in those countries with small national debts.
This does not indicate a necessary relationship between a large debt and a high national income nor a low national income with a small public debt.
It may reveal a tendency for an increased governmental partic ipation in the economic activities in the countries which are highly industrialized and developed.
The world-wide trend toward more governmental activity will centre ever increasing attention upon Government budgets and upon national debts.
See also DEBT CONVERSION, INTER-ALLIED DEBTS, WAR FI NANCE, FINANCE, SINKING FUNDS, FLOATING DEBT.
See also the details given under the headings of the chief coun tries.