Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-07-26
u. s. TO LEND BILLIONS
TO FARMS AND RAILROADS

WASHINGTON, July 25.-Billions
of dollars of credit for the farmers
and railro ads of the country are in
volved in a so-called "administra-
ton plan" for relieving both agricul-
ture and transportation from their
present difficulties, which was pre-
sented to many members of the sem
ate Saturday.
The plan, in brief, is to give the
war finance corporation broad pow
ers and large sum of money to
1. Finance export and domestic
sales of accumulated foodstuffs,
cotton and live stock and all agri-
cultural products.
2. Enable the railroads to get
back on their feet, by providing cred
it, and also by funding their debt
to the government on easy terms"
By including the railroads in the
the credit plan, it was stated, the
administration hopes to avoid the
necessity for huge direct appropri-
alton at this time of $5O0,000,00
or more, to pay the transportation
lines sums claimed by them as the
result of federal control during the
war.
Will Relieve Apprehension
This, it was pointed out to sem
ators, would greatly relieve the pub
lie apprehension which has been
caused by expectation of this half
billion payment to the railroads, the
request for $300,0OO,OOO for the ship
ping board, and Senator Penrose's
pessimistic statement that it would
not be possible to effect much re-
duction in taxes.
Eugene Meyer, Jr., director of the
war finance corporation, spent most
of the day at the capitol laying the
plan before Senators. Meyers sug-
gestions included one that the Nor.
ris bill now pending before the sem
ate be amended to meet the propos-
ais he outlined. Norris bill as It
now stands, creates corporation just
like the war finance corporation. en-
powered to use $1,000, 100000 of the
governments cash and credit to buy
agricultural products AMI sell them,
and to help farmers finance deals in
export lldIhPIS.
Meyers plan is to confide this
duty to the war finance corporation,
which, he pointed out to senators,
already is organized as to industrial
matters for just that sort Of BUSH
ness, and to- amend the bill to include
railroads as we'll as farmers. This,
of course. would require a tremen-
douS increase in authorization for
the use of cash and credit, so that
it is estimated, if the Meyer plan
went through, the finance corpora
of $2,000,0 100000 or more.
Meyer In Action
Meyer saw Norris, Kenyon, Pom
creme, Mccormick and many others,
members of tho senate agricultural
bloc" who were opposed to the plan.
They want the Norris bill to go
through the way it is, They want
congress really did something for the
farmer. But they were told that
unless they agreed to notifications,
the bill is in danger of defeat in the
senate by amassing of administra-
ton strength, and if not defeated
here, would almost certainly be We
toed by President Harding.
1t was brought out during the dis
cussions that Secretary Mellon is
now at work en- a vast "refunding
plan" which involves not only the
$4,000, 100000 owed by European
governments, but $7,000.000,000 short
time United States government obli-
cations, and billions in Liberty
bonds. Arrangements for paying a
soldier bonus are in contemplation in
the working out of this plan, it was
stated