New-York tribune., 1920-11-28

|; addressed them on this matter, and
they passed resolutions favoring the
restoration Of the War Finance Cor
poration. In Kansas City the National
Farmers Union was in session. and
expressed themselves as favorable to
it. Testimony of special interest was
elected in Chicago and In New Orleans
from leading bankers.
James Is. Forgan. chairman Of the
First National Bank of Chicago and
Inember Of the advisory committee Of
the Federal Reserve Board, said to the
Senate committee that while he had
favored the Secretary's action to sus-
pend activities in May, he is in favor
OF resumption at the present time Mr.
Hecht. president of the Hibernia Bank
and Trust Company, Mr. Cla borne.
vice president of the Whitney Central
National Bank of New Orleans de-
scribed the distressing conditions in
volved with regard to cotton, cotton
seed cottonseed oil and cottonseed
cake, expressing the opinion that tho
activity Of the War Finance Corpora
when 1t was and that 1t should be re-
sumed at this time. Mr.. Hecht is espe-
clally active in the formation of the
Cotton Export Banking Corporation
under the Edge law, and said that in
ms opinion, this corporation would be
able to become effective with greater
rromptness and in much larger measure
II lt were able to obtain the COOPER
alton of the War Finance Corporation
ne also said that the 100000 900 Edge
Jaw banking corporation, now being
discussed, would be in the same nosi,
ton"
Houston Heada Ornout%tou
Secretary Of the Treasury Houston
hoios nrmiy to the belief that the
sooner the government can withdraw
from all it's wartime connections witb
business the better ii will be for the
country. His convictions are strong
on TINS point. The first impulse Of
many who are searching for the wav
out, he says, "is to turn to the rov-
ernment. and especially to the Treas
ury' as the sole instrumentslity for full
economlc salvation. This disposition
ven developed before the war, was re,
lnforced during hostilitics by practices
OF the government which became necee9
sary Tor the successful prosecution Of
the war and for the preservation Of
national life. VI
lhls attitude 30 extremely mani
1cs1Pd IS unwholesome and menacino
ana II is of the highest Importance
that individuals and communities ree
urn 20 normal degree of self-hc,p
@.u sen -re!lahce. We have demoblizcd
many groups, but we have not d.
moblllzed those whose gaze is concen-
trated on the Treasury. In the present
circumstances producers whosa nroa~
ucts cannot be satisfactorily martntod
and whose prices arc falling aro d.
manding that the Treasury intervene
they ask either that it deposit money
IN certain sections or that the actiI;,
t'es or the War Finance Corporation
be resumed. '''0ii
No Money to Lend
Neither Of these things ia foas,h,o
The Treasury has no money to Innd
and no money to deposit except for
government purposes. 1t is not in the
DankInP business and should not he
IL Is borrowing money periodically 10
meet current obligations in the in,er-
Vals between large tax payments ut q
cost or about per cent On several
occasions before the Federal Reserve
system was instituted, the Secretary or
the Treasury, at tmo when tho
treasury had surplus, did deposit
small sums OF money in banks in vari-
GUS sections of the country TO meet
emergencies; but this necessity is
obviated by reason Of the existence and
practlces Of the Federal Reserve sys.
| TEN.
Furthermore, tho War Finance Cor
poratlon was a war agency, and was
created to help win the war. II wa
clearly desirable that war agencies
should cease to f'tction as quickly as
possible. The only power Of the cor
poration which has amy possible hear
ing on the immediate situation il ono
which was inserted after the armistice
with particular possible state Of fecta
IN view. Fearing that with the cessa-
ton OF exports for military Durnoses
after the armisticc, exports mipb, not
90 forward, Congress empowered the
corporation. In order to promote com'
nerce with foreign nntions, to make
advances under certain conditions A..
a matter Of fact, exports not on]v djd
not decline, they increased at an ns.
founding rate, and 30 per cent OF hi.
ycnr's approximately consists Of avri.
cultural products. 1t 10 clear thst ths