The sun., 1918-03-08
FINANCE BILL
WINS IN SENATE
President to Nominate Capi.
tai Issues Committee Sub
jcct TO Confirmation.
MUCH SHEARING Is DONE
Vote Is ~ to 3 After Final
Fight Against Original
Penalties Is Won.
MUCH SHEARING IS DONE
Special Despatch to The stv.

WARRINGTON, March THE Senat.
passed the war finance corporation bill
with a fund Of $4,000. 900, 900 to-day y
, five days later than its passage had beer
predicted by its proponents and witt
numerous amendments OF a vital char
acter in the structure OF the measure
The vote was "a TO on the final pas.
sage OF the bill, with Senators Harding
(Ohio) and Sherman Ull.). Republicans
and TIardwick tGa.), Democrat, voting
! no"
! Senator owen COkla), Democrat, made
brief statement before the vote was
announced. in which he said that II
there had been danger Of the bill being
defeated he would have voted for 1t. but
as it seemed to him certain that 1t would
pass he reserved his vote and voted
present"
The war finance corporation bill has
been sho,n OF many OF the features
which rendered it open to criticism in
the course of the Senate debate. During
its earlier consideration these funda-
mental changes included the elimina tion
of the section which made !nfra ction of
the rules and regulations as to the bor-
rowing Of money to be established by
the capital issues committee punishable
by fine or imprisonment and substituted
therefore a penalty clause referring only
TO the infraction OF the law itself
FlKht Modiaes section 2.
The fight on section OF the bill.
which ended yesterday in a victory for
the critics Of the origina! measure. re-
suited in modifying the powers Of the
capital issues committee TO the extent
that they could not prohibit the borrow
ing OF money for purposes of which they
did not approve but only express dis
approval thereupon.
To-day the Senate battled over the
amendment offered by Senator Owen
chairman of the Committee on Banking
and Currency. which provided for the
insertion in the section creating and
legalizing the capital issues committee
the provision that its members must be
appointed by the President instead Of
being designated by the Federal Reserve
Board. The debate on this point was
sharp and acrimonious.
The Committe" on Finance. through
its numerous members on the floor, stood
by the original provisions OF the bill az
they had reported It. They argued that
the Federal Reserve Board was re-
sponsible directly to the President and
the Secretary of the Treasury and that
the nominations of its members had 10
be confirmed by the Senate and that this
was enough. The critics. however. led
by Senator Hollis On. H. combatted
this argument and in the test beat the
Finance Committees contention. 81 to
35. in the open Senate,
As a result the bill as passed by the
Senate provides for the appointment of
the committee members by the President
and ratification OF their names by the
Senate. The bill as originally submitted
provided for appointment by the Federal
Reserve Board with the approval of Sec
retary McAdoo.
For Nominations bys President.
The following was the alignment on
this point:
Fletcher. Henderson. Hollis, Kendrick.
Kirby Lewis. McKellar. Nugent. Owen.
Phelan. Pomerene. Sheppard. Trammell.
Underwood. Nardaman. Walsh. Wolcott.
II. Republcans-Baird. Borah. Curtis.
Fernald, France. Freffnghuysen. Gronna.
Hale. Jones tWashington). Kenyon.
Mclean. McNary. New. Norris, Polndex-
ter. Sherman. Sterling. Sutherland.
Townsend Wadsworth. 20. Total. 81.
Against the observation-disclosures
Bankhead. Beckham, Gerry. Gore. Hard
wick Johnson tSouth Dakota, King.
Martin. Overman, Pittman, Ransdell,
salisbury. Shafroth, Shields. Simmons.
Smith (Ar.zona), Smith (Maryland).
Su,ith (South Carolina) Stone Swnu-
son. Thomas. Tillman. Williams-23
Republicans--Calder. Dillingham;, Hard
ing Kellogg. Knox. Lodge. McCumber,
Nelson. Page Smoot. Warren, Watson
IL. Total. 35.
The final vote on the measure rallied
to the Senate Chamber a full attendance
Practically every member In Washing
ton well enough TO attend was on hand
Sevent y-seven Senators answered "aye"
or mo" and there was also Senator
Owenss answer OF present"
The bill, which now goes to the
House, establishes a corporation with a
capital of $500. 200. 900. but with au-
thority to issue $4,000. 900. 900 In bonds
for making advances ana loans to trust
companies. savings banks, insurance
companies and corpora tions engaged In
war work. Management Of the corpora
tion is placed In the hands OF Secretary
McAdoo. who will be assisted by four
directors.