Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-01-04
WHY HE SAYS mo"
Continued from PAGE One)

States. 1t was created during hostil-,
tiles for war purposes. The tenn
porary powers which 1T is now pro-
posed to revive We're conferred I'M
March, 1919, to assist if necessary in
the financing of exports. The gen
Cral 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 technical
~ in a state of war, it unquestion-
ably was presumed, when this added
power was granted, that peace would
have been formally proclaimed be-
fore this time and that the limitation
of one year would have expired.
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
Congress 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 importa-
ton and that larger masses of do
nestle exports to European countries
generally might be stimulated, with
the resulting enhancement of domes-
tic prices am in full sympathy with
every sound proposal to promote for
eign trade along sound business
lines. ! 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 govern
ment intervention. On the contrary
I apprehend that the resumption of
the corporations activities at TINS
time would exert no beneficial inf1u-
ence on the situation in which i'm
provement is sought, would raise false
hopes upon which the people would
expect most and would be hurtful TO
the natural and orderly processes of
business and finance.
Large government credits were ex-
tended during the war to certain
European governments associated
with us in the struggle. These ceased
several months after the armistice,
except for commitments already
made. They should not be resumed,
either directly or indirectly. The re-
cent Brussels conference, composed
of experts from many European coun-
tries and from other nations, itself
expressed the opinion that further
credits should not be accorded direct
IL by governments. l do not believe
that they should be accorded in
directly.
Exports of domestic products have
not declined since the armistice. On
the contrary, they have greatly in
creased. From an aggregate value
before the war of less than two and
O half billions of dollars, and of about
six billions the last year of hostil-
tiles, they rose in the calendar year
1919 to more than $1,000, 000, 900 and this
figure will probably be exceeded for
the last calendar year For the first
IL months of the last calendar year
we exported more ,han seven and
half billion dollars worth of domestic
merchandise. These have been large
~ private financed. The difficulty in
the way of still larger exports does
not seem to lie so much in the lack
OF financial ability here as in Europe's
lack of means to make payment. Her