New-York tribune., 1920-12-19
gallot PIP to 81 i'm Favor
of Measure Designed
to Increase Foreign
Trade to Help Farmers
Opposition Makes
A Vigorous Fight
Predicts Plan Will Main
tain High Prices and
Postpone Tax Revision
s.om The rrsbuxe's woshtnoto~ Bursc.

WAShlNG lON, Zee. lo.-OeSplCc
stubborn opposition, the House late
This afternoon, after FIVE hours debate,
usssed the resolution directing the
Secretary OF the Treasury TO revive the
activities OF the War Finance Corpora
lion. The vote was 212 to 81.
The measure already has been
adopted by the Senate in a viva voce
vote and now goes to conference. 1t is
expected little difficulty will be met by
the conierees in adjusting the amended
resolution to the satisfaction of both
Houses, but a strong belief prevails
that President Wilson will veto it, as
Secretary Of the Treasury Houston has
consistently advised against it.
Should the President bend to the
wishes OF tho majority the revived
corporation will Immediately be given
ssSO0OOo00 from the public treasury
with which 70 finance expectation of
agricultural products to foreign mar
sets and thus enable the farmer to get
price that will cover production cost.
The principal opponent of the resolu-
ton in the House to-day was Represen-
latlve Louis r. McFadden, OF Pennsyl-
Yania, chairman OF the Committee on
Banking and Currency which reported
The measure out favorably by vote
Of 10 6.
Arguments of Opposition
Speakers for the opposition declared
the activities of the War Finance Cor
poration would giut the bond market
and increase the already too heavy ma
would postpone the repeal of the ex-
eess profits tax and at the same time
ma ntain high prices.
representative Martin McFadden, OF
Illinois, another strong opponent Of
the measure, said the outcome would
be another s1,000,0O0,O00 added to the
S1l 600. 100000 now owed the United
States by foreign countries.
i IS "1u 1, liz declared, virtually
nullify the work of the 100000 900
corporation organized at Chicago a few
weess ago by American bankers, as this
orgsnlZ u us Ooncs are not tax ex-
smpt, while the government. bonds
would pay no taxes.
As passed by the House, the resoiu-
ion has been shorn OF the preamble
which enumerates .he conditions that
have made adoption necessary, and
Section =, directing the Federal Re-
serve system TO grant liberal extern
SONS OF credit to the farmers upon the
security OF agricultural products by
perm ing the rediscounting of notes
o. extension.
In reporting the measure to the
House the commit.e declared European
purchasers would be unable TO buy in
American markets unless long-term
credits should be made.
The exporters of the nation cannot
grant these long-term credits unless
they in turn can finance them" says the
pear unable TO do this further than
!aey have. Il therefore becomes nee
essary 20 induce the investing public
% pu. is resources at the service of
tie exporters, and the only agency
hrougn which il appears feasible now
y 90 that IS through the War Finance
c'-poration, which can cell its bonds
70 me investing public and use its
money 10 finance exports.
Declared Ready to Function
IT is argued that this function can
Nst be performed by private enter
Pases. The War Finance Corporation
mas perfected lis organization and with
ou, delay could afford the relief de-
slted, and which is necessary. The
private corporations proposed to be
ofganlzed under the Edge law have not
PERFECTED their organization and we
souid not hope TO have them operated
-'f many months to come
me testimony is conclusive TINT
sns-sdged collateral can be secured by
.af exporters, and inasmuch as by the
*lms Of the act the War Finance Cor
.ola'ion can advance only to persons
az corporations engaged in business
:,,ls - l,ls country it is certain that it
~! junction as it dur ny the period
y us operation, making advances only
sHste the Loans were underwritten by
Icups Of American bankers, whose in
sss'semsnt guaranteed the repayment
ins effect of the activities contem.
s'@So Dy this corporation under thiz
tcsatlnasd on ssse three