The Washington herald., 1920-12-27
FARM CREDITS
HELP TRUSTS,
HOUSTON SAYS
Sees Big Interests Sole
Gamers From War
Finance Board.
FLOODED MARKETS
LEAD TO DISASTER
Treasury Head Declares
Both Demand and
Cash Are Missing.


The big interests. such as the
great electric, harvester and steel
corporations, and not the farmers,
will benefit il President Wilson
signs the Congressional resolution
reviving the War Finance Corpora
tion, according to Secretary Of the
Treasury Houston, in a statement
yesterday.
This resolution. aimed to estab-
lish credits for the sale Of Ameri-
can farm commodities abroad. has
passed both houses Of Congress and
is now before the President.
The President. il is understood.
will rely upon the advice Of Secre-
tary Houston and Gov. Harding, OF
the Federal Reserve Board, in his
treatment OF this measure, and be-
lief has been expressed repeatedly
that he will veto it.
The agricultural interests. for
whose welfare this legislation was
professedly passed, would be the
last TO benefit by it," Secretary
Houston said.
Big Interests Would Gain.
Those whose interests would be
served would be principally such
concerns as the International Har-
vester Company. the General Elec-
trio Company and the large steel
corporations. Why should the gov
ernment borrow money-and IL
would be compelled TO do so. for
contrary to the opinion which seems
g a l.
in the Treasury-to finance the op-
erations Of companies perfectly
able to establish their own mar
kets?
Here is my argument in nut
shell. You cannot create markets
for commodities where neither de-
mand nor the ability to pay il pres
ent. Despite the fact that Euro
pean exports from the United States
have been constantly on the in
crease for the past three years. the
-aenspd for agricultural products
has recently decreased.
Sees Impending Disaster.
That is a natural and inevitable
condition. With manpower and eco-
nomic facilities released from war
demands. Europe has devoted great
er attention to her own agricultural
necessities. Extending credit to
flood a market beyond its needs can
only result in disaster"
A charge made earlier in the day
by Gray Silver. Washington head
Of the American Farm Bureau Fed
Grafton. that Secretary Houston Rad
been more concerned with making
good report for his department
than in furthering trade relations,
and that such an attitude was re-
sponsible for his opposition to the
War Finance Corporation. was dis
missed lightly by the Secretary.
4 have devoted the best part OF
my life and the greater part OF my
cabinet career to advancing the in
terests Of the American farmer. and
1 am convinced that opposition to
the measure proposed is in accord
with srch an attitude" said the
Secretary.
Hopes for Wilson Approval
The resolution reviving the War
Finance Corporation is but the first
step in a campaign to open markets
in Germany. Austria, and possibly
Russia, according to Silver. Legis-
Iation now being drawn will pro-
vide credits in countries not now
dDie 10 MAKE aoeQuate payment Tor
American agricultural products,
particularly Germany. he said.
"We do not believe that the Presi-
dent will veto the resolution. We
have. in fact, been virtually assured
that approval will be given. II such
proves the case. a bill will be In
troduced enabling Germany to in
sure payment by mortgage bonds
which will be given priority to any
reparation demands. The same con-
sideration would be given any other
country that could provide proper
security, including Russia"
Silver admitted that the first ef-
feet of the resumption OF the War
Finance Corporation might be to
benefit companies like those named
by Secretary Houston, particularly
the International Harvester Com
pany, large banks and trust COM
panies, and the steel companies. but
he contended that eventually 10
would be merely incidental to bene-
fits derived by American farmers.
The psychological effect in re-
lieving the strained financial condi-
tions at this time would be tremen-
dous." he said.