The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1918-02-08
PRESIDENT MUST
FIGHT FOR POWER
(Continued from page IL

and to prevent the banks extending
credit on anything but sound securi
ties. The provision of the bill which
gives the secretary of the treasury
the power to appoint the directors OF
the corporation, was criticized by
Senator Penrose.
McAdoo answered by saying that
the president already was over-bur-
dened and that he did not think fur
Their burdens should be placed upon
him.
We'll, the secretary of the treasury
| is also director general of railroads"
said Penrose. rs he not overbur-
dened?"
Il hope not said McAdoo.
The secretary appeared before the
committee to explain the measure,
which was drawn by him.
The present practice of the govern
ment in advancing as much as thirty
per cent of war contracts to contrac-
tors at low rate of interest was
drawing more and more heavily on
the treasury. he said.
The $500, 000, 900 government cor
poration, proposed in the BILL Is de-
signed to take care OF this needed
credit, he explained.
do you mean to say that present
going concerns not engaged in war
work shall be prevented from issuing
refunding paper?" asked Senator
| Townsend.
mo not exactly that" said McAdoo.
1--WE think that all such issues should
be first submitted to the government
for its approval though"
This bill would act in a financial
way as the draft law does, he said
1T would compel those who will not
voluntarily come to the government
for approval to do so along with those
who willingly come.
He further explained that the pro-
posed law would reassure saving banks
and mutual savings banks among
which there was some uneasiness now
| The government corporation would
be able to extend credit to this class
| of banks in the event Of heavy with
drawal, he said.
/ Commercial banks who were COM
peeled to extend credit to war indus
tries and take in return non-discount-
able securities would be protected
through assistance which the corpora.
ton would be empowered to extend,
| he said.
| Withdrawals from saving banks for
investment in war bonds, may create
embarra ssment among this class OF
banks, McAdoo said, and it was neces-
sary to provide some means of pro-
lection in case of such a contingency.
This is altogether probable if flu
ture government paper is issued with
higher interest than the bank rates.
We must protect the savings Of mil
lions of American working men-an
| interest which is vital to the whole
financial structure" he added.
! Insurance companies ar. also
similarly protected he said.
Railroad Control Bill.
| WASHINGTON: Feb S.-The rs 0
81 call was sent to shippers from the
country today to protect their inter
ests in the railroad control legisla
ton which will be taken up by both
branches Of congress next week.
| Clifford Thorne, former chairman
of the Iowa state railway commission,
and now representing a dozen large
shippers organizations through the
middle west, urged them to exert the
| fullest pressure to obtain enactment
| of a rate fixing clause which will
| leave that power with the interstate
commerce commission.
! Thorne claims that failure of the
house committee to adopt the senate
rate making provision has brought
the fight to the floors Of congress.
| The house measure leaves the power
with the president The senate
measure leaves it with the commits
sion, but gives the president the
right to initiate rates, as carriers now
| do.
UNLESS the senate provision is
adopted, the commission may be re-
duced to nominal control such as it
used to have Thorne warned.
Nobody has suggested that war
power overrides the rights Of rail
ways. The rights Of shippers are just
as sacred as those of the roads,
The railway legislation will reach
the senate floor Monday with pros
poets of few talkless days until the
measure is enacted. Dissenting men,