The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-01-03
Wilson In Veto Message
Warns Against Further
Federal Aid In Business
Declares Revived War Finance Commission Will Harm
Rather Than Help Business of Nation and Cannot
Under Law Extend Assistance to the
Country's Producers.

Washington. Jan. 3.-President Will
sons message vetoing the Gronna reso-
luton to revive the war finance cor
poration follows:
To the Senate of the L. S:
ct am returning without my sigma
ture Senate Journal Resolution No.
PIP, Joint resolution directing the war
finance corporation to take certain
action for the relief of the present de-
preston in the agricultural sections of
the country and for other purposes:
1.-THE joint resolution directs the re-
vival of the activities of the war fl
a governmental agency. Its capital
stock is owned entirely by the United
States, it was created during hostilities
for war purposes. The temporary
powers which it is now proposed to
revive, were conferred in March, 1919,
to assist if necessary in the financing
of exports. The general powers of the
corporation expire six months after the
termination of the war, and the special
powers with respect to the financing
of exports expire one year after the
termination of the war.
while we are technically still in a
state of war, it unquestionably> was
presumed, when this allied power was
granted, that peace would have been
formally proclaimed before this time
and that the limitation of one year
would have expired.
Purpose Now Gone.
"In May, 1920, in view of the fact
that export trade had not been inter-
rupted but had greatly expanded, and
that exports were being privately
financed in large volume the war
finance corporation, at the request of
the secretary of the treasury and with
my approval suspended the making of
advances
This resolution was passed by con-
gress apparently in view of the recent
sudden and considerable fall in prices,
especially of agricultural commodities.
with the thought that some European
countries to which certain products
were customarily shipped before the
war might again be enabled to resume
their importation and that larger
masses of domestic exports to Euro
pean countries generally might be
stimulated, with the resulting enhance
ment of domestic price. l am in full
sympathy with every sound proposal
to promote foreign trade along sound
business lines. 1 am not convinced
that the method proposed is wise, that
the benefits, if any would offset the
evils which would result, or that the
same or larger advantages cannot be
secured without resort to government
intervention On the contract 1 appre-
bend that the resumption of the cor
poration's activities at this time would
exert no beneficial influence on the
situation in which improvement is
sought, would raise false hopes among
the very people who would expec!
most, and would be hurtful to the nat
ural and orderly processes of business
and finance.
Europe Wants No Credits.
Large government credits were
extended during the war to certain
European governments with US in the
struggle. These ceased several months
after the armistice. except for COM
mitments already made. They should
not now be resumed, either directly OF
indirectly. The recent Brusse1 confer
ence composed of experts from many
European countries and from other
nations. itself expressed the opinion
that further credits should not be ac-
corded directly by governments. i dc