The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-03-17
SAYS REVIVAL
WAR FINANCE
IS DEFLAT| ION
Eugene Meyer, Jr., Believes
Corporation Will Start
Things Moving Thinks 1t
Will Help Conditions.
INSPIRES CONFIDENCE
BY MARK SULLIVAN

New York, as director of the War FL
nance corporation, has more immedi
ate meaning for business men, farmers
and other producers than any other
single act of the administration. l
say Immediate" interest because all
that the cabinet can do and all that
congress can do to affect business can
not possibly show results for months
or even years to come.
But Mr.. Meyer and the War Finance
corporation are expected to show re-
suits Immediately. Mr.. Meyer indeed.
is expected to be miracle maker, and
if faith can make miracles, Mr.. Meyer
, has the faith. His belief in the War
Finance corporation, its present eff
cacy, and it's ultimate possibilities is
almost a passion.
Some conservative bankers have not
looked with enthusiasm on the revival
of the War Finance corporation, but
since congress has revived it, every
body thinks Mr.. Meyer is the best man
to run it, and the news of his appoint
ment has been received with hunor-
GUS friendliness that says in effect:
Now Gene, go to it,"
Chosen by Wilson.
The appointment on President Hard
Ing pal IcIicStS ILLS SellliuCht ldIA-
er than politics. Mr.. Meyer is COM
monty looked upon as Democrat. Ger
tainly he has been a conspicuous fig
ure in the Democratic administration.
When the war came he severed such
of his banking and corporation connec-
tions in New York as might have been
embarrassing, and came to Washing
ton. Wilson made him managing di.
rector of the War Finance corporation
in it's first incarnation. The purpose
of that corporation was to provide
banking facilities to firms making war
goods
With the end of the war the institu-
tion was discontinued, but Mr.. Meyer
had a vision of making it useful in
facilitating exports to Europe. He per-
s.. .suaded congress to revive the institu-
7 ton for thisspurpose. 1t functioned for
a year, and then Secretary Houston
discontinued it on the ground that at
that time exports to Europe were go
ing out in increasing volume and there
was no need for government aid.
" Mr.. Meyer however, differed with
Secretary Houston. He believed pas
sionately in the value of the institu-
ton, and for more than six months he
made himself an earnest propagandist.
) going up and down the country per-
suading bankers and business men to
advocate a second revival of it.
Revves Institution.
The result of his efforts was that
when congress met in December it de-
cided, largely through MI Meyers
persuasion. to revive the institution
once more. Now President Harding
names Mr.. Meyer as the head of it
and puts it up to him to make good.
What Mr. Meyer has more or less
given business men and congress to
understand is that through the instru-
mentality Of the War Finance corpora
tion and of about five hundred million
dollars of government money which it
is authorized to use he can measure
ably revive the export of cotton, to-
bacco, copper ,and large variety of
other goods to Europe.
What the War Finance corporation
as it now exists, is, how it functions
and the kind of thing it is expected to
familiar public by describing typical
transaction carried out by Mr.. Meyer
before the corporation discontinued.
Form Syndicate.
In this case all the important cotton
spinners of CZecho-Slovakia formed a
syndicate. They gave their note to a
group composed Of the seven largest
banks in Czecho-Slovakia. These
banks indorsed the note and then
turned it over to the government OF
Czecho-Slovakia. The government OF
Czecho-Slovakia in turn indorsed the
note and sent it over here to America
Here, a group of American banks in
their turn indorsed the note, took il
( to the War Finance corporation, secur
} ed a loan of $4,000, 900 on it and with
the money bought that amount o
cotton in the southern states anC
shipped it to the spinners in CZecho
Slovakia. So far as the American gov
ernment is conce erned, the safety o
the loan obviously had the backing O.
all four OF the indors;ng and signing
groups. So long as any one link i1
that chain remained solvent. The
American government was secure.
Mr. Meyer believes earnestly tha
this sort of thing can be done on
large scale in Germany, France, Grea
Britain, and everywhere else. o
course, not all the transactions will
conform to this same formula, but ht
undertakes to see to it that the secur
ity is good in every case and that oul
government shall not loo a dollar
His own practical success as banker
makes confidence for his management
He says that the $500, 100000, or 81
which he will be permitted to use cal
be turned over and over again so a.
10 facilitate the export of many time!
that amount of goods.
Depends on Man.
OF course, this institution, like ever.
other institution, is the reflection o
some one personality. and will depend
largely on the man who manages it
II forcefulness and aggressiveness, ant
especially rcsourcefulness, can turl
the trick Mr.. Meyer will do it. No
everybody believes that "Mr. Meye
and his corporation can do as mucl
H. rs he hopes.
Indeed, there are very sound persons
: Who take the position that the who'll
thing is a mistake, that it involves
adding half billion dollars to Issues
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