Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-12-09
SENATOR SMITH
PREDICTS SUCCESS
OF FARM AIDPIAN
BY THEODORE TILLER
The Atlanta Journal News Bureau,
623 Riggs Building.

WASHINGTON. Dec. S.-Despite
the hold-up in the senate of the Nor
ris resolution for re-establishment of
the war finance corporation and
lower rediscount rate by federal re-
serve banks. Senator Hoke Smith be-
lieves the corporation will be made
to function again and that the
agricultural situation will be re-
lieved
Senator Smith expresses confidence
that there are votes sufficient in both
senate and house to pass the reso-
luton. and that the initial opposition
of Senators Lodge, Glass and others
will not kill the plan.
In a statement issued here today.
the senior Georgia senator said:
eve have every reason to be en-
couraged to expect favorable action,
by congress for the re-establishment
of the war finance corporation.
cat a joint session of the commit
tee on agriculture of the senate and
house it was agreed to report at
once favorably a resolution directing
the renewed operation of the war
uIduCG COIpOIdIlOil, anu
ing that the federal reserve banks
liberalize discounts based upon paper
secured by agriculture products and
also recommending the board to re-
duce the rate of interest charged by
the regional reserve banks.
1.-THE war finance corporation Will
be in a position to aid immensely III
financing the sales on time of our ex-
ports to central Europe.
"It will be a governmental agency
studying all foreign credits and Sc
curities, and in position to raise
the time sales into central Europe
and elsewhere. 1t will. Of course.
cooperate with our exporters and
with corporations organized under
the Edge act. It will not compete
with them, but will support them.
"The resolution was reported from
the committee on agriculture by the
chairman of the committee. Senator
Gronna, and went over under the
rules of the senate. there having been
opposition made to immediate con-
sideration of the measure. We be-
lieve we have the votes in each house
to pass the resolution. 1t will be OBJ
served that it requires the renewed
operation of the war finance corpo-
ration.
cit only recommends broadening
Of the discount rate by the federal
reserve DOdTQ. we QLu iloI .PuS 40
this resolution a direction for the
lowering of the rate, because we
knew this would meet with very Sc
rious opposition, and we believed the
recommendation, at least for the
present, the wise course.
1.-THE strength of the movement Is
that we are letting the Republicans
lead. Western grain interests take
even more responsibility for the leg
islation than the cotton growlngln-
terests of the south. Of course, che
senator's and congressman from the
cotton growing states will all sup
port the measure. By the plan we
are pursuing we avoid standing SIM
ply for, a sectional interest. Indede,
the copper interests. zinc interests
and iron interests, as we'll as farm
products, will be helped by the re-
newed operation of the war finance
corporation.
II wish to say again that it will
not take the place Of the export cor
porations to which the banks of the
south are subscribing, and which in
Georgia is known as the measure es-
pecially advocated by Mr.. r. F.
Maddox. Of Atlanta
"The war finance corporation, to-
gether with the other agencies, W'ich
ought to be in operation by Jan try
l, should be able to finance the eX-
port of over a billion dollars worth
of our products and put them in
central Europe with the time cred
it's required there for purchases. 1t
will furnish an immediate market.
now closed, for a large amount Of
cotton d"