The Hawaiian gazette., 1918-02-19
CONGRESS HAS BUSY WEEK AHEAD
$50 sstyts > ss.F sa
"Wsr Corporation Finance Bill Is Bp

WASHINGTON, February 1s-tAs-
ISOLATED Press) IL Three important
measures win be before congress for
ednsideration this week These are
the administration s railroad legisih.
ton, McAdoois ssw6r Finance Corpof-
ation'' Bin and the urgent deficiency
Hill. The HITTER measure Il being given
the right Of WY over all other legisla-
tian. IT, tst - =, $3.50 4 q pysT Y g.y5'.
Relative "a, The War Finance Cor.
pration Bill and the importance which
he attaches 10 Il Secretary Of Treasury
McAdoe has authorized the following
statements: t{s,S, itsiS M %Fts tet
The proposed act to incorporate q war
finance corporation should be regarded
primarily as q measure to enable the
banks, both national banks and State
banks and trust eompanies, to continue
to, furnish essential credits for indus
tries and 5enterpFises which are neees-
sary q, pontribptory to the Proseeu,
The, GoyernmeBt's borrowing, par
tieularly. during the period immediate
preceding and following each Liberty
Loan, have ! tended 20 tpreempt the
credit facilities Of the banks and often
to- Prevsnt, them from giving needed
and IcustomAFy help 10 quasi'pgbhc and
private, enterprises 9n gitinS NtG2E}
Instances Bruneht TO Ngtice s'ic aE3
Many instances have been brought to
the aftenti6n Of. the Secretary of the
Treasury and OF the Federal Reserve
Board where railroads, public utilities,
power plants, etc. have been prevented
Prom obtaining the necessary advances
to enable them 10 perform vital service
IN connection with the war, because the
bank credits, ordinarily available 10
them, are being absorbed by the gov
eminent itself. s, air, go.
In, Europe central banks are. permit
ted to grant to banks and bankers
loans upon stocks and bonds, upon GER
tain well-defined terms. The Federal
reserve act does not provide for these,
and the War Finance Corporation is de-
signed to fill this gap as a war emer-
gency.. The provisions Of the Federal
reserve law which permit member banks
to rediscount. and purchase paper secur'
ed by the governments obligations
ana commercial paper have had the eff
fcctsof driving the banks to diserimin.
ate against loans on ineligible paper
even where such loans were vitality
necessary for war purposes. e.. ~ T.
Designated 10 AFFORD Relief ~
II Is believed that the proposed bill
has been wisely and conservatively
conceived as a war measure to give
relief from this condition during the
period of the war. The banks Of the
country would, no doubt, serutinize
with the utmost care both the loans
themselves and the security therefor
and would exercise their individual
judgement upon the borrower . credit
before assuming q liability for the
amount of the loan, and also because
they would be under the necessity OF
advancing, out Of their own resources
twenty percent Of the amount
loaned. The bill would authorize ad
vances to bank of only seventy five
percent Of the amount loaned by the
bank to O war industry.
influence on Credit
1t is confidently believed that the
more existence of the machinery which
this act would establish would Of 1t
self maintain confidence TO such an ex
tent that the aid Of the corporation
would only in relatively few cases be
called for, and that the banks would