Johnson Act
Encyclopedia
The Johnson Act of 1934 prohibited foreign nations in default from marketing their bond issues in the United States
.
Senator Hiram Johnson
sponsored the Act which included a passage that forbade loans to nations in default on their debts.
On May 5, 1934, Attorney General
Cummings rendered an opinion on the meaning of the terms "default" and "partial default" used in the Act. He held that Czechoslovakia, Italy, Latvia, Lithuania, Great Britain and Canada were not in default, despite the fact that all but Canada were in arrears on their debts, while Soviet Russia was in default.
The Johnson Act has been amended since the Bretton-Woods Agreement and is still on the books.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
.
Senator Hiram Johnson
Hiram Johnson
Hiram Warren Johnson was a leading American progressive and later isolationist politician from California; he served as the 23rd Governor from 1911 to 1917, and as a United States Senator from 1917 to 1945.-Early life:...
sponsored the Act which included a passage that forbade loans to nations in default on their debts.
On May 5, 1934, Attorney General
United States Attorney General
The United States Attorney General is the head of the United States Department of Justice concerned with legal affairs and is the chief law enforcement officer of the United States government. The attorney general is considered to be the chief lawyer of the U.S. government...
Cummings rendered an opinion on the meaning of the terms "default" and "partial default" used in the Act. He held that Czechoslovakia, Italy, Latvia, Lithuania, Great Britain and Canada were not in default, despite the fact that all but Canada were in arrears on their debts, while Soviet Russia was in default.
The Johnson Act has been amended since the Bretton-Woods Agreement and is still on the books.