Arizona republican., 1921-07-27
HARDING SAYS GOVERNMENT MUST FUND RAILROAD DEBTS
 AND PROVIDE FARM CREDITS
Kellogg Substitute For Norris Bill Would
 Authorize Issue Of $1,00O, ,000, 900 On Bonds For War Finance Corporation

owing to the government. which we are morally and legally bound to fund. the government admittedly owes the railway companies large sums on various accounts such xs compensation. depreciation and maintenance.
 'The way now would seem to be clear to very early adjustment and relief, except for the fact that the railway administration, though pos sessing assets. does not command the its admitted obligations
 There is no thought to ask con- gress for additional funds. Perhaps $500. 900, GOO will be necessary The railroad administration has, or Will have in the progress of funding, ample securities to meet all require ments if congress only will Er&nf the authority to negotiate these se- curities and provide the agency for their negotiation.
 With this and fin view you are asked to extend the authority of the war finance corporation so that it may purchase these railway funding securities accepted by tho director general of railroads. No added ex- pense. no added investment h re quired on the part of the government There is no added liability. no added tax burden. It is merely the grant of authority necessary to enable c most useful and efficient government agency to use It's available funds to purchase securities for which con- gress already has authorized the is- sue, and turn them into the channelD of finance ready to float them-
 t1 can readily believe that so Gfm- pie remedy will have your prompt sanction. The question of our obli- gations cannot be raised. the wisdom of affording early relief Is not to be doubted and the avoidance of added appropriation or liability will appeal to congress and the public alike.
 On Farmers' Relief
 ~Pending proposals for relief and their discussion have already brought to the attention of congress the very promising possibilities of broadening the powers of the war finance corpo. ration for the further relief of aGri- culture and livestock production. This corporation has proven itself so helpful in the relief thus far under l taken that I cannot help but believe been proposed, to meet agricultural needs. will enable 1t wholly to meet 1 the nation wide emergency This b | an impelling moral obligation to American farming in all it's larger aspects, and it will be most gratifying l to have your early sanction l "In the case of the railroads there | is moral and contractuai obliga- l ton, and your favorable action is no Hess urgent and will no less appeal to public approval Railway solvency and efficiency are essential to our | heaIthful industrial. commercial and l aericultural life. Everything hfngep on transportation.
 After necessary and drastic cur tailments, after narrowing straits in
 meeting their financial difficulties. 1 the railways need only this financial aid which the fulfillment of our ob-' I legations will bestow. to inaugurafe | their far-reachng revival Its effects will be felt in various industries and l will banfsh to large. degree the de- pression which, though inevitable in wars aftermath, we are all 70 anxious. to see ended
 l With his message the president sent also to congress large amount of data from Director General Davis 1 of the railroad administration show
 ing the progress of liquidation % far and treating with present financial conditions.
 l Substitute for Norris Bill Senator Kellogg said that the bill drafted by Hoover and Director 4 Never had tn, approval of the treas ury department. It would authorize extensions of credit to producers or their associa- tions. exporters and also to bankers for agricultural export purposes Be- 1 side the finance corporations capital of $500, ,000. 900. a revolving fund it would be authorized 1 10 issua s1 GOO 900 900 on bonds.
 Champions of the Norris bill. how I ever. continued their fight in its be- half. but with amendments made to- Iaay to the agricultural committee de- signed to meet objections raised The