The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1920-12-24
National Political Correspondent OF The
IntellIgcncer and New York
L'vepinp Post

lntcllRCnCtr anu Ne" YIN
Evening I'ost
J Washington Dec 23--There Is now
before the president. for veto or APP
prevail. the first S!ll passed by the pres
cnt session Of congress. The presidents
action will be important not only as re-
CARDS this present bill IN question. but
also as tho first in long series Of con-
nic,s between two schools OF opinion.
which contlilts will undoubtedly conf
pose the bulk OF American politics Tor
several years "a come.
Tie present bin Is for tho orestabl;sh-
men, of the War Finance Corporation
This corporation was an on Shoot OF the
treasury, originally organized during
the war for the purpose OF issuing gov
eminent bonds and utilizing the pro-
ccedS to aid private corporations dolnS
war work. which needed banking as
sistance. After the war ended, congress-
renewed the corporation for the purpose
OF facilitating exports.
| Las, May, Secretary Houston. by his
personal order, discontinued the corpor-
alton. He based his action chiefly on
tho ground that It was no longer n"r-
! essary to facilitate exports as goods
were already going abroad In unprcce-
dented quantities through the normal
activities of private vusineSS. ana on
the grounds that the treasury mad othcE
and more pressing needs for the money
! being at that time compelled to borrow
! for the purpose OF paying current p!Hs'
Farmers Protest Disconttnuancs
This dIscontinuance caused some com
motion at the time. But the criticism
was mild compared TO that which arose
later on and during the past :hTrc
months. AS soon as the exports slowed
: up, and for other reasons prices began
to fall, the farmer of the south ana
! West, who were among the chiet VIC
! inns Of the fall In prices began TO
! clumor for government ala.
: AS a part OF that aid they asked
Secretary Houston to withdraw his or
der and permit the War Finance Cor
noration again 10 function. Secretary
Houston refused on the ground that the
fail in prlces was due chiefly TO other
causcs which could not be materially
, remedIed by the resumption or the war
! Finance Corporation. and also on the
grounds that the timo has gone by ~heH
II was oxpedlent for the government 70
! be In the banking business. and that' az
, before, the government needed ri inc
! funds II was able to borrow Mt reaS-
enable rate for the purpose OF paying
| its ordinary bills.
| Finally, just a. soon as CONGRESS CSLi',e
together one OF the most obvious incl
dents OF it's temper was response I"
/ ,he uressure from farmers for RELIEF ana
II IeterrinatI ton to attempt come form
! of relief. The Senate Committee On Ag-
riculture held hearing in which, on tho
ana hand. the distress Of the farmers
was pictured by witnesses from the
South and West. and the SPECIFIC QucH-
ton OF rcvivinE tho War Finance t"rpo-
| n ton was covered By the testimony 81
Secretary Houston Of the Treasury Gov
ernor Harding of tho Federal Reserve
Eoard and the former managing director
or the War Finance Corporation, Eugene
Meyer.
THESE hearings took i'll n way the form
! OF i drbutC, Messrs. Houston and Haru-
Ing resisting the revival OF the war
Finance Corporation ard Mr.. Never
backed Icy the farmers earnestly adNo-
eating II.
| AM orc who followed these hearings
carefully felt that Secretary Houston
| and Gov. Harding wcro in rather tho
better positicn. They stood on tho solid
ground of economic FIRST principles. Tho
advocates Of tho measure more or less
! frankly based their argument ON
grounds III an expcdicncy justified BY
| the emergency.
0rouna's Bill
Al the close of the hearings, senator
! Gronna, chairman OF the Senate Commit
| tee on Agriculture. introduced a bill
/ containing two sections. The first Sec
| ton directed Secretary Houston 10 re-
v!vc tho War Finance Corporation. The
second section OF tho bill was clearly
! loss defensible. It directed the FEDERAL
, Reserve Board 10 take such action as
may be neces sary to permit tho menu
Der banks Of the Federal Reserve sys-
TEN, In accordance with law and consist
ont banking to grant liberal extensions
of credit to the farmers OF the country.
Much can justly ne said in favor OF
roviving the War Finance Corporation
on its merits: but the second section
tainted the bill as whole. 1t was
promptly and vigorously denounced b.
many Senator's, chiefly by Senator Nc
| Lean. Of Connecticut. L Republican and
Senator Glass OF Virginia, a Democrat.
Senator Mclean said: II think We haA
better not try 10 fool tho farmers
"If the chairman or tho committee can
point out that Section 3 would provide
single additional dollar for the accomo-
| dation of farmers seeking credit, l Will