New-York tribune., 1920-11-28

Chicago, Des Moines, Omaha, Denver,
Kansas City. St. Louis and New Or
leans, and the banker was given an op-
portunity to sound out sentiment first
hand regarding the proposal to bring
the War Finance Corporation back to
life as an active force in export finance
in cases where private initiative has
failed.
The proposal to revivify the War
Finance Corporation, whose activities
ceased several months ago at the re-
quest Of Secretary Of the Treasury
Houston, has evoked much discussion
in banking and commercial circles and
although it has met with q favorable
response in many quarters, 1t has also
evoked criticism and opposition.
The proponents Of the idea to have
the corporation resume functioning
with its 0,OOo,O 900 at the disposal
of export trade by loans to American
exporters or to bankers who finance
American exporters, believe that some
thing of the kind is necessary to
finance commercial exchange with the
impoverished countries OF Europe
which need raw materials desperately ~
to get back into their industrial stride
but have not the wherewithal to pay
cash. This problem, they hold, is
much to huge to be met through the
ordinary channels Of finance.
Banks Unable to Help
In other words, the banks alone are
not in Z position to tackle the propo-
stion. Germany. for example, in the
days before the war used to consume in
excess of 100000 bales Of American
cotton a year To-day comparatively
little cotton is going to Germany-not
because she does not need it, but be-
cause she cannot pay the price. 1t is
the contention Of those who favor the
revival Of the War Finance Corporation
that if Germanys cotton needs can be
financed through such an instrument it
will benefit not only Germany but our
selves as we'll.
The opponents Of the idea argue that
1t Is not well to mix government with
private business and finance, pointing
out that the emergency of the war pc
riod having passed It is desirable for
the good Of everybody that the state
should separate itself as soon as pos
sible from affairs which should be left
to private initiative and cndeavor.
Secretary Of the Treasury Houston
holds this view
Plans for putting the War Finance
; Corporation into action again are going
ahead despite opposition, and it IS re-
garded as highly probable that legisla-
tion will be introduced in Congress
next month to this end.
Meyer States Position
Mr. Meyer, former managing director
OF tho War Finance Corporation, an
active proponcnt of the revival Of the
War Finance Corporation as g going
the interest Of tho country, said yes
terday:
The Senate reconstruction commit
tee in its tour OF the Central West, on
which ! was present. discus ed the. mat
ter OF the resumption of the War
Finance Corporations activities with
merchants, agriculturists and bankers
everywhere. With substantially no
important exceptions there Is com
plete unanimity in favor Of this re-
sumption. Not in one single place d d
hear talk about high prices or inflated
prices or evidence Of desire to re-
turn to inflated prices. What the farm
ers, the business men and the bankers
OF this country want now TO bring about
il the orderly marketing of our prod
ucts. to which idea tho Secretary Of
the Treasury expressed his adherence
IN his address to the bankers in conven-
tion in Washington on October 20.
Tho one concrete thing which the
Secretary Of the Treasury can do ut
this time 10 bring about promptly and
on a large scale effective help along
these lines Is to permit the War FL
nance Corporation TO resume it's activi
ties IN connection with assistance to
foreign trade, but this he refusca.
Not Partisan View
This Is no partisan mattor. and It IN
not sectional matter. Thsre is con.
gestion in the movement OF goods in
practicnlly all lines all over the coun-
tr and there is halting in the Iiquj-
dation Of the bank loans as II natural
consequence OF the halt In the move
ment OF goods. In Denver the Ameri-
! can Mining ConEress wan in session.