The sun., 1918-01-29
M'AD0OSEEKS
$600,0O0,000 TO
AID WAR WORK
Plans Vast Corporation
With Unprecedented Pow
ers Over Finance.
WOULD LICENSE STOCKS
Self and Four Associates Could
Issue Notes for 4,OOO,-
100000 to Loan.
Special Drsnatch to TBg Su~.

nrms, corporations and associations
u hose operations are necessary or con-
tributory to the prosecution OF ke wsr
wa. asked Of Congress to cay by SEE
retary Of the Treasury McAdoo.
Such aid Is TO be furnished when such
orga ganixathns are unable to obtain funds
on reasonable terms from private
SOURCES.
The corporation 10 to have capital
stock OF hak q billion dollars. to be sub
scr.bed by the United States. The pro-
rtsed law. submitted by the Secretary.
provide, further the corporation NAV
issue its notes or obligations for eight
times its capital stock of half a billion
collars. giving i: a financial ;'ower al
most unlimited.
Will License Security Issues.
II is provided the corporation shall
have the power - license or refuse to
license any future capital or security Is
sues, in the interest OF the national Sc
curKy and defence. Heavy penalty 10
provided for any attempt at Notation not
licensed. Railroads In Government con-
|.
The legislation proposed Is the most
far reaching step ever undertaken In
national finance. The Law would give
20, ernment control Of practicall. all
financing in the United States during the
period Of the war and for a necessary
period Of rel.qu!dation after the war. Its
effect would be sweeping. taking In as II
does every financial operation Of I'm
portance. II Is proposed that the widest
,t ssiblc powers be given the corporation.
This Immense measure OF control over
ali private financial operations would be
placed in the hands Of the Secretary OF
tho Treasury as chairman Of the board
Of directors. and four associate direc-
tors. TO be named b. him, with the ap-
proval Of the PRECEDENT.
The War Finance Corporation would
be empowered to ADVANCE funds to the
s,,tssprisas needing dpch advances either
directly -,r through the regular hankinn
channels. tits to have q ten year iife
but - to cease all but reliQdidatint op'
eraticns six months after the end OF the
war.
House Gets BiM To-day.
The organization to pass upon all
security issues sought already has oeen
created through . committee OF the
Federal Reserve Board. but the COM
mit.ee 10 a. yet without direct power to
enforce disappYoval OF any financing
privately undertaken.
The bill will he introduced In the
House tomorrow By Carter Glass. chair
man Of the Committee on Banking and
Currency Hearings then will be held.
The bill As drawn represents the oes'
thought Of Treasury ofs'cials and GER
| tain members Of the Banking and Cur
rency Committee and Of the F1nanca
/ Committee Of the Senate. who hav<
given It long consideration, In draft
Ing II Secretary McAdoo consulted Nom
bers Of the Federal Reserve Board. hi
assistant secretaries In charge OF imam
ciai matters and John SHELTON Williams
Comptroller OF the Currency. Severe
conferences were held before 1t was pu
! in ANAL form.
Text oS the BiIl.
/ The full text Of the bill foilows:
IAN ACT to provide further for IN
national security and defence and 10
the purpose Of dssistin0 IN the prose
cuttox Of the Vor. to provide credit
for Industries and eHferp,ises IN tn
Uwtted States necessary or contr1bu
tory to the prosecution Of the tcdr an
for other purposes.
"BE 1T ENACTED by the Senate an
House o! Representatives OF the Unite'
! States OF America In Congress Assem-
bled, That for the purpose OF AFFORD
ing financial assistance. either directl
or indirectly. to persons, hrms cor
porations and associations who's
operations are necessary or contribu
tory to the prosecution Of the war 4
cases whore such persons, hrns, cor
porations or associations shall be ur
able to procure funds on REASONABLE
or practicable terms from tho geners
public or through the regular bankin
channels. and cor the purpose OF reGu
lating and controlling the Offering 70
sale or subscription Of securities here
after issued and for other purposes 1
aid Of the prosecution Of the war, tn
Secretary Of the Treasury. togeths
with four additional persons (wh
shall he the directors first appointe
as hereinafter provided) are hereb
created a body corporate and peliti
in deed and In law by the name, styl
and title Of the War Finance Co,
; poration' (herein called the corpors
tion) and shall have succession for
period OF ten years. provided that
no event shall the corporation excl
else any Of tho powers conferred b
this act, except such a. arc incident,
to the successful liquidation Of Il
assets and the successful winding u
Of its affairs six months after Il
termination Of the war. the date ,
such termination TO be fixed by pro,
iamation Of the President of the Unite
States.
CaDitaI Set ~ s6OO,O0o,ooo.
SECTION :. The capital stock Of Il
, corporation shall b $500. 1000 900, 9
! Of which shall b subscribed by Il
United States Of America, and SUI
, subscription shall. Upon the approx
of the Secretary Of the Treasury,
] subject TO call upon the vote Of thrs
J hfths OF the hoard Of directors of Il
corporation at such time or times
may bs deemed advisable; and the
. 10 hereby appropriated out of a
v money In the treasury, not othsrwi
n appropriated the sum 81 100000. .o(
n or 20 much thereof rs may be nscl
sary, for the purpose OF making pa
ment upon such subscription when a
as called. Receipts for naymcfits