Omaha daily bee., 1920-12-07
Plans Made
To Finance
Revival of War Finance Cor
poration and Action by Fed
cral Reserve Board Directed
In Senate Resolution.
Declare Passage Is Sure

Washington. Dec. 6.-Revival OF
the war finance corporation and ae-
! ton BY the federal reserve board per
hitting extension by banks of lib
eral" credits to farmers would be
directed in a joint resolution drafted
| late today by the senate agricul-
tural committee. The resolution will
| be reported to the senate tomorrow
BY Senator Gronna of North Dakota,
the agricultural committee chairman.
who will ask for imnediation con
sideration.
Members Of the committee draft
ing the resolution expressed con-
fidence that enough votes were as
sured to bring about its prompt
passage, but members of the finance
committee indicated that they would
ask that it first be referred to them
| for consideration, inasmuch as the
war finance corporation was created
under a bill drawn by their com
mittee.
Bill in House.
! Restoration of the war fnanc,
corporation to furnish financial aid
to farmers also would be directed in
concurrent resolution presented to-
day in the house of representatives
by Byrnes, democrat, of South Caro-
lima. 49,.
The senate agriculture committee
! decided to report its resolution as a
committee measure, hoping thereby
to save time. With unanimous con
sent under the senate rules the res
olution could be called twice in one
day and placed on the calendar for
| passage.
Senator Norris of Nebraska, mem
Der of the agricultural committee,
first proposed concurrent resolu-
ton which does not require approval
by the president, but other members
objected on the ground that such
resolution would not be strong
enough. While not anticipating the
action of the president, democratic
senators made clear their intention
of voting to override a veto if nee
essary.
The senate committees resolution
declared that unprecedented and un-
paralleled distress" exists among the
farmers because>ef their inability
to market their products at prices
equalling the cost of production and
that the people of Europe are in
dire need" of these products, but
not able to- purchase because of e&
listing financial conditions.
Unable to Give Credit.
1 The resolution further recites that
banks have been unable to extend
credit.to farmers so they may hold
their products until they can be sold
III fair and reasonable market"
| Then followed the resolutions dircc-
tions. which declare:
The secretary of the treasury and
the members OF the war finance cor
poration are hereby directed to re-
vive the activities OF the war finance
corporation and that said corpora
ton be at once rehabilitated with
the view of assisting in the financing
tof the expectation OF agricultural pro-
duce to foreign markets.
The federal reserve board is here
/ by directed to take such action as
may be necessary to permit the
member banks OF the federal reserve
system in accordance with law and
consistent with sound banking to
grant liberal extension OF credit to
the farmers of the country upon Sc
! >curity of the agricultural products
now held by them by permitting the
rediscounting of such notes of cx
tension. at the lowest possible rate
of ;ptaraeto