New-York tribune., 1918-02-11
Credits Board Speeds Up
Supplies by Finan-
cial Aid =
Small Producers
Often Need Help
Federal Cash Enables Man
ufacturers to Avert
Shutting Down
staff Co'rospondencel

ctuU CO|TGSpOhOeiOeI
WASHINGTON, Feb. 10.-Approxi-
matcly $150,0OO,O0O has been advanced
by the government to contractors en-
gagged in government work, the War
Credits Board announced tonight. The
board asserted that these advances,
which ranged from 5 per cent Of
20 the maximum of 80 per cent,
( authorized by law, "have stimulated
the production Of war materials by all
contractors who have availcd them
selves of the system"
The War Credits Board was created
by the Secretary Of War, with the fol-
lowing members:
Samuel McRoberts, vice e-president of
the National City Bank of New York,
now a colonel i'll the ordnance depart
mcnt, National Army; M. W. Thomp
son, financial expert and accounting
lawyer of New York City, now leuten-
ant colonel in the Signal Corps, U. S.
A; and Edward Clifford, an investment
banker, of Chicago, now lieutenant
colonel, Quartermaster corps, National
Army.
The board elected B. w. Jones. vice
president and secretary of the Bank
crs' Trust Company Of New York, as
its executive secretary. A number Of
attorneys, bankers and accountants
were called in as assistants in consrd-
crlng the great number of applications
Immediately made for advance pay
ments on government contracts.
The law permits advances not ex-
ceeding 80 per cent of the contrast
price for supplies, such advances to
be amply secured.
Aid Is Promptly Extended
A statement prepared by the War
Credits Board includes the following
explanation of it's functions and activi-
ties to date:
"Whcn a concern that has a contract
with the War Department for supplies
has shown the board that it needs
financial assistance, and has been able
quate security, the board has approved
an advance payment and the money
has been received by the contractor
without delay - in many instances
where the case was urgent the money
has been paid over to the contractor
the same day application has been filed
However, the board does not act in any
sense as a bank. 1t is only when the
manufacturer has reached point where
financial assistance is needed, in addl-
ton TO his banking lines, that applca-
tlon for advance payment for his goods
is considered favoraby.
MANY manufacturers, on account of
delays caused by railroad congestion,
etc, used up all their capital, borrowed
all they could from their banks and
still did net have the money necessary
TO finish their supplies and make de-
llverles 10 the government SO as to
get payment In some instances thew
were on the verge of closing down their
plants because of their inability to get
cash for their payrolls.
"By authorizing advance payments
promptly the board has relieved all
spending their time trying to find
money, are now enabled TO devote
themselves entirely to the business of
producing war requirements.
Small Manufacturers Helped
"Therc is no doubt of the value of
the board to the manufacturer Of lin
tied working capital. No matter how
small the plant a man may have, if
he has the skill to make supplies need
ed by the government he now can take
contract and at the same time go be-
fore the War Credits Board and get
an advance payment sufficient to see
him through. 1t is hoped the small
manufacturers everywhere will realize
this and begin to take government con-
tracts, thus keeping their plants going
through the war and also getting money
back to their communities which had
been subscribed for Liberty bonds"
Between the time Of it's creation in
November and January "a the board
approved advances to contractors total
ling S145,5 900, and the board is en-
gagged daily in passing on requests.
Some of Boards Advisers
Among the men called into consulta
ton by the board are:
Edward NJ. Sebert, of the Bank Of
Pittsburgh; Captain Charles r. Hickox.
lawyer, OF New York, Signal Corps Re-
serve; Captain ] .Lothrop Motley. law
Yer, Boston, Quartermaster Reserve
Corps: Charles V. Runyan, lawyer,
Memphis; Dean Lucking, lawyer, De
troit, second lieutenant, Signal Corps
Reserve; c. w. Schroeder, banker, Ma
ational City Company, New York; W.
w. Moss. investment banker, Norfolk.
Va; Robert Forgan, vice president Ma
tional City Bank, Chicago; L. d. Lam
ing. First National Bank, PETERSBURG
H.; Donald NJ. Liddell, engineer and
accountant, Baltimore; William Ziep-
Ter, ir, second lieutenant. ordnance
New York City; Frank Kolbe, account
ant. University of Mchigan; B. B.
Bailey, investment banker. Albany; P.
w. Herrjck. banker. Cleveland, and A
t. La Frentz. president Of the Ameri-
can Audit Company, New York.