Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-01-18
WAR FINANCE
BOARD READY TO
CONSIDER LOANS
THE Atlanta Journal News Bureau
623 Riggs Building.
BY THEODORE TILLER

WASHlNGION, Jan. lo.-Both sec
, rotary Houston and A. w. Mclean,
managing director of tine war finance
corporation have given official as
surances that the finance corpora
ion has been revived to aid export
ng and that in accordance with the
mandate of congress the treasury de-
artment will promptly and faith
ully carry out the wishes of the
legislative body. When informed to-
aight of the statements of Secretary
Houston and Director Mclean, Sena-
tor Hoke Smith predicted that the an
nouncement would have a beneficial
effect throughout the agricultural in
dustry. Senator Smith had predicted
that although opposed to the legisla-
ton reviving the corporation, Secre-
tary Houston would not delay it's OPP
Grafton and would bow gracefully to
the will of congress.
The official statements have just
at rest rumors that there might not
be full cooperation at the treasury
department in making the legislation
Immediately effective. Congress
passed the finance bill over the veto
of President Wilson, who had acted
| on SeCreLdry I1ouSloH AoSoAAAAAi~4
| dation.
The official statements also bear
out forecasts in dispatches to The
Journal that there would be no re-
| bellion at the treasury department.
| against the action of congress. That
the finance corporation is now ready
| to pass on applications for loans is
| definitely asserted by secretary
| Houston and Director Mclean. Sen
ator Robinson, of Arkansas, today re-
ceived a letter from Secretary Hous-
ton in which full cooperation is
certain misunder standings regarding
the functions Of the corporation and
| it's powers under the law creating it.
TO Garry Out Law. =
"It goes without saying, I think"
writes Secretary Houston. that the
law as embodied in the recent resolu-
ton directing the resumption of GER
tain activities of the war finance
corporation will be executed In full
faith as any other law is executed,
AS I understand it, the views of an
! administrative officer as to whether
a given policy should be adopted mas
nothing to do with the execution OF
a measure embodying that policy
which has become law. The war
finance corporation is now organized
1t is ready to receive applications ana
| to consider them in accordance with
the law Fortunately the corpora
ton does not need reorganlzatlon.
| There is a quorum OF the ooaro al.
| ready in existence ready 10 TRANSACT
| business.
"The corporation is in a position
to function and is ready at any time
| to consider applications. II may %
we'll to call attention to the powers
as affected by the recent resolution
| of congress. They are set out In sec
ton Il of the war finance corpora
ton act. Under this section the cor
| poration is empowered to make ao,
vances upon such terms as are hos
inconsistent with the provisions Oh
the section as it may prescribe LOT
period not exceeding five years from 7,
the respective date of such advances:
THAT section provides that the rate
of interest on any advance snail no.
be less than one per cent per annun
IN avcess of the rate of discount Tor
ninetv-day commercial paper preVdll.
ing at the time of such advance, al
the federal reserve bank OF the uls
I trict in which the borrower Is ioCatSu.
You will note from the acI Iirar rson
4 advances must be made to a pers s!
| firm or corporation or assoclatloh
engaged in the business OF export
ing or to a banking company Whic or
makes advances to SUCH persons "a
firms engaged in the business OF eA+
nnrting The corporation cannot
make loans to the producer as suc ~
off is further contemplated thaL ~
+ha case of the exporter VINO shali
NOT be able to obtain funds upon re
sonable terms through pank Ilo hean
nels. and that there shall nave peG II
q Contract made in which a price Is
T+in11Iated there is a further Prov
sion of the law that an au inrv
shall be made upon the pronnlss So
note or notes of the borrower WIN WIFI
Iii one and adequate security in each
instance by Endorsement, or otlel-
wise.
"f fear there has been some mis-
understanding OF the nature VI '''0
powers revived. .1
Tn his inquiry Senator Rob1nsoIsi
smoke of the psychological effect Oh
revival of the finance corp9ratiodd
at once. The south, he salo' AM sa1
U vere strain and this strain is felt
nv the producers to a degree that -
we1l nigh indescribable: Al1post
everv cotton and rice farmer mas
suffered a loss this year ana many a. ~
of them will be compelleo 10 eo '
bankruptcy
sumed that although congress hao
Ieeislated upon the SuoJect III op
position to the views of secretary
4 Houston, he supposed, neVertneless'
that Secretary houston %ouiu
ahead and execute the will or con
gress. Senator Robinson added:
7Would it not be wise Immediately to
proceed with the reorgan1zatloh o.
the corporation? There never has
been such gloom and dependency as
now prevails in the south. Here In
Washington you do not come IN con-
tact with it and realize 1T.
thousands of men are abandon
ing their farms in hopeless despair.
Thousands more are remaining on
the farms solely because they have