Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-04-30
PRESIDENT APPOINTS
WAR FINANCE BOARD
Harding, Forbes, M e y er,
Mclean to Direct $780,
100000 Corporation
COMMITTEE ON CAPITAL
Operations Limited to Three
Billion Bonds to Speed Up
Kaiser's Doom

Washington, April 29.-Four directors
of the new $500, 900 900 war finance cor
poration and a new capital issues COM
mittee provided for in the war finance
corporation act have been named by the
President. Directors of the corpora
tion are William 2. G. Harding. OF
Alabama Allen 3. Forbes, of New
York; Eugene Meyer Jr., Of New York;
Angus w. Mclean, OF North Carolina.
Members of the capital issues commit
tee arc Charles S. Hamlin of Massa-
chuseUs; John Shelton Williams, of
Virginia; Frederick A. Delano, of Illi-
nois; James b. Brown, of Kentucky;
John S. Drum, of California Henry c.
Flower, of Missouri, and Frederick II.
Goff, of Ohio.
Directors Harding and Forbes are
appointed for two years; Meyer and
Mclean for four years.
The capital issues committee will use
the machinery already created by the
Federal Reserve Boards capital issues
committee. For many weeks the reserve
boards committee has been perfecting a
nationwide system for examining the
merit of proposed securities issues and
recently has revised its rules to conform
with the war finance corporation act.
McAdoo Chairman Ex-oHicio
The four directors of the finance COR
: poration, with Secretary McAdoo as
| chairman eX-ofIicio, are expected to or
| ganize and prepare to make loans to
! banks and necessary war businesses.
Paul M. Warburg, member of the Fed
| eral Reserve Board and chairman of
the existing capital issues committee of
the board, was not nominated on the
new committee, because Governor Hard
ing's nomination as director of the War
! Finance Corporation would throw heavy
duties on Mr.. Warburg, who is vice
governor of the board.
Mr.. Harding is now governor of the
Federal Reserve Board and formerly
was a prominent banker Of Birmingham.
Mr.. Forbes Is a New York banker
md Is now chairman of the advisory
committee of the capital issues COM
mittee Of the Federal Reserve Board.
Mr.. Meyer is a New York banker. Mr..
Mclean is a lawyer and banker of North
Carolina. Mr.. Hamlin is a member of
the Federal Reserve Board and was its
'rst governor,
Mr. Williams is Comptroller of the
Currency, and a member of the Federal
Deserve Board. Mr. Delano is MEM
ber of the Federal Reserve Board and
oymer vice governor.
How Loans Are Obtained
The corporation will start business
with capital stock of $500, 900, sub
.cribed entirely by the Government and
with authority to issue up to S3,000,000,-
900 bonds, with which to finance its
rperations.
Loans may be made to banks or trust
Dmpanies for not moro than five
years, sums amounting to IS per cent of
the face value Of loans made by the
MI IN aDy bugiDass ''Vyhoge Onppq .
ions shall be necessary or Contributory
- the prosecution of the war" taking
the banks notes. secured by adequate
collateral This applies also to banks
purchases of bonds of essential war busi-
'sses. One hundred per cent of the
ce value of the banks loan may be
lade If the bank deposits 33 per cent ad-
tonal collateral
Savings banks and building and loan
associations may borrow from the cor
poraton for not more than one year
under certain circumstances.
Direct loans to essential industries or
businesses may be made by the corr
loration II the directors find that the
dvance Is necessary to maintain the
usiness and if It has been unable to
Dtain a loan from banks. In these
ses 1875 per cent collateral Is required
The total amount loaned by the cor
l212 per cent of the corporatlon's
Dtal capital stock and outstanding
7nds Loans to any one bank or bust
, ess may never be more than $780,
100, 900, except to a railroad under Gov
'-nment control.
The new capital issues committee
will not have power to forbid issuance
Of securities not approved by II, but
under the system built up by the Fed
eral Reserve Board it is virtually i'm
possible for corporations or States and
local subdivisions to float issues with
out first obtaining the committees con
I sent. Its authority is limited to passing
: on issues of 100000 or more.
; The present capital issues committee
consists Of Paul NJ. Warburg, Fred
eric A, Delano and Charles S. Hamlin
|, members Of the Federal Reserve Board
. The advisory board, which probably viii
: be retained, consists of Allen B. Forbes
, of New York, chairman and F.sH. Con
of Cleveland, and Henry C. Flower, o
: Kansas City,
! The salary of the War Finance Cor
Q poration directors will be $4,000 ant
of the capital issues committee mem
bers $500.