Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-01-30
EXPORTERS ONLY
ARE ALLOWED TO
BORROW FROM IT
They Have to Pay Higher
Interest Than to Federal
Reserve Banks.
ASKS TO BE SHOWN HOW
PLANTERS CAN PROFIT
Ono Loan Application Received
and 1t Was Denied by
Corporation.
WRITES LETTER TO vIRGINIAN
Moomaw Had Asked Senator TO
Explain His Vote on Measure
in Upper House.
ASKS TO BE SHOWN HOW
PLANTERS CAN PROFIT
WRITES LETTER TO vinGINIAN
Moomaw Had Asked Scnutor 10
Explain His Vote on Measure
in Upper House.
ny J. FREDERICK ESSARy.
SIAN Correspondence az The TIn,,-
Disput,l,.

1iSpUN'H.
WASHINGTON, Jan. 2a--Thc mos,
vigorous ana cotnprcheneiv. defense
yet made or the policy ot those who
oppose the bin 10 revive The War FL
nance Corporation, and. infcrcn:iaily.
tho most vigorous contamination O;
'Hosc who rushed ii through Congress.
was given out today by Senator Glass
NJ Virginia. In an analysis OF tho
credit situation.
senator Glass expressed hi, views
~ 10 tho revival Of the War Finauc.
corporation ana the charges that the
Federal reserve banks had corccd
drastic d"nat!cn OF credits to the In
jury OF tho farming interests In a
letter TO ID. l.. Mooinuw. Il prominent
virginia farmer. connected with the
Virginia Farm Bureau Federation
Mr.. Moomaw had written Senator
Glass. showing disappointment at his
vote against rcvivInG the ilnancc cor
poraiion and his previous defense Of
tho Federal reserve system.
Senator Glass letter il surch.rgcd
with statements OF fact, taken from
records. as well as with argument
Denying that any farmer or hort!-
culturist in the entire United states
w!ll be able 20 get : from tho War
'inauc. Corporation. unic6& directly
engaged In the export business. he
sends Mr.. Moomaw Il copy OF the
statute ana asks him to Indicate def
inito!y how lie o. any othcr farmer
will derive benefit. Proceeding ne
statcs that there is not a penny In
that. TO aid exporters. Il must bor-
row In the open market for use Of
a sinElcclass money that now is
available to ali classes.
submits Export Figures.
As TO aid TO exporters. and possible
indirect aid to farmers. senator Glass
submits figures TO chow that exports
in 1920 wore greater than ever he
fore. and maintains that what Is
needed Is not credit 10 finance more
exports. bu; an additional market FOR
them. He cites concrete Instances:
and 10 show that there has been no
lack Of credit. lie gives the figures
O, tho Federal reserve hanks. as 20
loans. and proves that more cr"di,
was extended in the low-prlcc period
81 1920 than in IN" high price period
AZ 1919. Also. he shows. since the re-
yival OF the War Finance Corpora
ton. only one application for a loan
has been made, and that was b. a
lumber exporter who was not willing
to undcrwritc his cwn transaction
nor to furnish the ample security re-
quircd by law.
in the face Of these indisputable
facts and figures" said the Senator
At one point in his letter. politicians
who tell the farmers that the fall in
prices Of farm products is due TO
Inadequate credits for commercial
purposes lack either understanding
or truthfulness: and / am sure that
YOU would not have me join one
class or the other by voting for i'm
provised Quack remedies or by prac-
ticing deception"
Senator Glass letter follows:
Text of Letter.
eff you or any other of the farm
ers and horticulturists, in Virginia."
who are dissatisfied with my atti-
tudc with respect to the bill reviv-
ing the War Finance Corporation and
implying a short rebukc OF the Fed
cral Reserve Board will be kind
enough to indicate to me just how
and in what respect any farmer or
horticulturist In the United States.
unless directly engaged in the export
business, will get one dollar from the
war Finance Corporation: il YOU
will he kind enough to inspect this
provision OF the law and definitely to
Indicate to me how you or any other
practical farmer in Virginia can cX-
pect TO derive any benefit from the
revival of this war function. you
Will have done for me what have
been unable to do for myself.
Il assume YOU know that there is
not single penny In the treasury OF
the War Finance Corporation. If it
makes any loans 1t must sell bonds
continued on Fourteenth Page)