The Bridgeport times and evening farmer. (Bridgeport, Conn.) 1918-1924, 1918-02-06
U. S. WILL AID
WAR BUSINESS
OF THE COUNTRY

would create the eueFdl war lHdHC5
Corporation, with 100000 CAPT
tai and power to issue $4,000, 100000
in short-term notes, to- afford finan-
cial assistance to banks, firms or per-
sons whose operations are necessary
or contributory to the prosecution of
the war.
In order to restrict operations not
vital to the war, the bill authorizes
the corporation to refuse to license
the sale of such securities. No Sc
curities amounting to more than
100000 could be offered without first
obtaining approval from the corpora
tion~ 1t would thus have power to
stimulate and help war business and
to check unessential enterprises.
Senator Simmons said he would
call a meeting of the Finance Com
mittee early this week and begin
Immediately the consideration of the
measure with a view to amending it
and reaching a report to the SEN
ate.
Mr. Kitchin and l." said Senator
Simmons, introduced the War FL
nancing Bill just as we received it
from Secretary McAdoo. In the
House it was referred to the Ways
and Means Committee and in the Sen
ate to the Finance Committee. Secre-
tary McAdoo will be asked to ap-
pear before the Senate committee
and explain the measure and its pur-
poses. I expect speedy action on it
in the committee and in the Senate"
''The main idea of the BILL" said
IT,
OF more effectual prosecution of the
war"
The directors of the War Finance
Corporation would be the Secretary
of the Treasury and four other per-
sons approved by the President, to
have succession for a period of 10
years.
1.-The capital stock would be sub
scribed by the United States and
subject to call by three-fifths of the
directors. The salaries paid to direc-
tors is left to the Secretary of the
Treasury, but cannot exceed the an
nuaI salary of the principal officer of
an executive department of the Unit
ed States"
Broad authority is given to the cor
made for periods not exceeding five
years from the respective dates of
such advance "G) to any bank,
| banker or trust company which has
made and which has outstanding any
| loan Or loans to any person, firm, cor
| poration or association whose opera
tins shall be necessary or contribu-
| tory to the prosecution of the war,
and evidenced by a note or notes, or
| CD to any bank. banker or trust COM
pany which has rendered financial as
sistance directly or indirectly to any
such person, firm, corporation or as
| sociation by the purchase, of its
bonds or other obligations"
| These advances shall not exceed rs
per, cent. of the face value of the
loans and shall be made upon the
proluissory note or notes of such
| banks secured by the obligations
| which form the basis of an advance
by the government and any security
held by the banks as collateral One
| hundred per cent. of the face value of
the loan may be advanced upon addi-
tional security in compliance with
provisions of the War Finance Cor
poration.
Advances of funds may be made for
periods not exceeding 80 days ''to any
savings bank, or other banking insti"
tuition which receives savings deposits,
on the promissory note or notes of the
borrowing institution. whenever the
corporation shall deem such advances
to be necessary or contributory to the
prosecution of the war or important
to the public interest"
The note shall be secured by collat-
eral, according to regulations by the
corporation, which must be equal in
amount to at least 125 per cent. of the
amount of the advance. The rate of
interest shall not be less than 1 per
cent, in excess of the rate of discount
for 90-day commercial paper prevail
ing at the time of such advance at
the Federal Reserve Bank of the dis
trict in which the borrowing institu-
ton is located.
b The corporation is empowered fur
Their: in exceptional cases to make
advances directly to any person, firm,
corporation or association whose OPP
Grafton shall be necessary or contrib
utory to the prosecution Of the war,
for periods not exceeding five years,
upon such terms and upon similar Sc
curity"
The corporation is authorized to
buy, sell and deal in bonds and obi
cations of the United States.
Authority is given ito issue and
have outstanding at any one time its
notes or obligations in an amount ag
gregatins not more than eight times
its paid in capital $4,000, O00,000), such
notes or obligations to mature not
less than one year nor more than five
years from the respective dates of is
sue and to bear such rate of interest
as may be determined by the Board
of Directors. These notes may be
sold publicly and may be dealt in by
Federal Reserve Banks.
To prevent unnecessary use of
money in business, secclen of the
lbiIl provides that the corporation may
investigate and license or refuse to Ii
icense the sale or offering for sale or
for subscription of securities.
mo person, firm, corporation or as
ISOLATION shall sell or offer for sale OF
for subscription" the bill says, "any
issue or any part of issue of securities
hereafter issued the par or face value
of which issue shall be in excess of
100000, except in accordance with
such rules and regulations as the cor
poration, with the approval of the
Secretary of the Treasury, shall pre-
scribe; nor, when required by such
rules and regulations, except as per-
mitted by licenses granted by the cor
poration. The corporation shall,
however, grant licenses for any such
sale or any such offer for sale or for
subscription, which it shall determine