Evening star., 1918-02-19
WANTSPRES|DENT
|. TO NAME THE BOARD
Congress Likely to Amend Bill
Designed to Create War
Finance Corporation.
McADOO'S IDEA OPPOSED

Prospects are bright for the early
passage in Congress of the admlnlstra-
tion's bill creating the War Finance Cor
poration to restrict the issue of indus
trial securities and to aid the financing
of enterprises engaged in or collateral
to furthering the war. 1t its effect upon
private undertakings, investment securi-
ties and public and private financing
most important war measures of the ses-
SION
1t seems quite certain however. that the
bill will be amended in one important par
ticuar-the Secretary of the Treasury
will not be authorized to appoint the four
associate members of the corporation
upon his sole initiative. as provided in the
bill as drawn. Congress will insist that
these officers shall be appointed by the
President and confirmed by the Senate.
Indicates Use of Brakes"
1t is said at the Capitol that this amend
ment will be the first step taken IN the
present determination of Congress TO put
down the brakes on further unlimited ex-
tension of power to the executive prancn-
The Senate committee on finance, Which
has the bill under consideration, mas
unanimously adopted an amendment au-
thorizing the President instead OF the
Secretary of the Treasury to appoint
these officers. The ways and means COM
mittee of the House. which is now work
ing the bill, Will, 1t IS salu, auopt d hAe
amendment.
Secretary McAdoo, in the published
hearings before the finance committee
is on record as expressing ms Wiling
ness to acauiesce in this decision 10
vest the appointing power in the Presl-
dent, if he must although the COM
mittee knows that his personal prefer
ence is to the contrary. In the course
of the hearings he engaged in spirit
ed colloauy with members of the COM
mittee. defending the original PROPOSE
ton in the bill for the selection OF the
members of the board by himself, with
the assent of the President. but as TINS
talk took on a decidedly political tinge it
was stricken from the record.
Secretary's Reasons Disclosed.
The record does show. however, the
Secretary's reasons for insisting that
the board shall be created in a way to
action with the Treasury Department,
and to give the Secretary of the Treas
ury the power of veto over its acts.
"One reason why in the composition
a.,
committee, cit is proposed that the Sec
retary of the Treasury shall nominate
the directors with the Presidents ap-
proval, is to be certain that we Will
have an organization which Will re-
ciprocate thoroughly with the Treas
ury and its policies. If you were to
confer those powers on an independent
board in which the Secretary of the
Treasury would merely have vote
that board could do things inconsistent
with the policy of the Treasury, which
are indicated by the Secretary of the
Treasury. and a very unfortunate situa-
tion might be produced. We must be
sure that the operations of this cor
poration are in complete harmony with
the policies of the Treasury.
Thinks Veto Power Necessary.
II think it essential that the Secre-
tary of the Treasury shall have the veto
power. The fundamental prin-
ciple Of this bill is to create an addi-
tional agency to assist the Treasury of
the United States to raise money in
carrying on this war. 1t is vital that
the policies be those of the United
States Treasury. and we must not take
any chances of having those policies
conflict, because if power is consti-
tuted which might eventuate in differ
ences of opinion about policy it might
seriously affect the financial plans of
the government. The Secretary of the
treasury mas enormous emergency DOW
ers already. which must be exercised
instantly. Some one must have the re-
sponsbility and some one must act in
some cases.
The attitude Of senator's and repre-
sentatives who have expressed them
selves upon the bill seems to be to
give the Secretary as wide latitude as
possible. hating only at permitting him
to select of his choice the members of
the board. who will hold such vast
power.