The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-01-03
President Refuses To Sign Bill
and Gives Reasons.
Board Revived Cannot Help the
Nations Producers.
EXPORTERS NEED NO HELP
European Demand For Ameri-
can Products Not Decreasing.
Increase In Taxes Only Result
Seen by Wilson.
president Wilson's veto message
appears on page 81


Washington, Jan. 3.-The senate
passed today over the presidents veto
the bill reviving the war finance cor
poration.
President Wilson in submitting his
veto gave a resume of business condi-
tions in the United States and in rela-
tion to foreign affairs in which he said
neither the farmers nor business in
general would be aided by the revival
of the war finance corporation.
May Add to Taxes.
The measure might also increase
taxes in this country, the president
charged. because it would involve ad-
ditional borrowings by the treasury or
by tho finance corporation, owned by
the government.
The vote on the veto was So to in
favor of overruling the president.
The veto message was read in the
house. but action was deferred. 1t
was thought possible that the ques-
tion of the passing the resolution over
the veto would be taken up tomorrow.
The president wrote:
'I am in full sympathy with every
sound proposal to promote foreign
trade along sound business lines. 1 am
not convinced that the method pro-
posed is wise that the benefits, if any,
would offset the evils which would
result. or that the same or larger ad-
vantages cannot be secured without re-
sort to government intervention On
the contrary. apprehend that the re-
sumption of the corporations activities
at this time would exert no beneficial
influence on the situation in which i'm
provement is sought, would raise false
hopes. among the very people who ex-
hn hfI 4Frt1
to the natural and orderly processes
of business and finance.
No Export Decline.
Exports of products have not de-
clined since the armistice. On the con-
trary. they have greatly increased
From an aggregate value before the
war OF less than two and one-half
billions of dollars and of about six
billions the last year of hostilities, they
rose in the calendar year 1919 to more
than $1,000 100000, and this figure
probably will be exceeded for the last
calendar year. For the first eleven
months of the last calendar year we
exported more than seven and one
half billion dollars worth of domestic
merchandise. These have been large
ly privately 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 payments.
"It is remarkable that Europe is
able to make as effective a demand
for as large a volume of our goods
as she is making.
Cannot Help Producers.
Under the law, if the activities of
the corporation were resumed, no di-
rect advances could be made to pro-
ducers and if they could be, they
would not accomplish the object in
view. They would not create a de-
mand for our products. They could
be made only to exporters or to banks
engaged in financing exports and If
they did in some measure stimulate
exports. they would probably not have
the effect apparently most desired OF
substantially increasing those of agri-
cultural commoditis.
TT is highly probable at the most
immediate and conspicuous effect of
the resumption of the corporation S
activities would be an effort on the
part of the exporters to shift the fl
nancing of their operations to ordi-
nary commercial channels to the gov
ernment This would be unfortunate
TT would continue the government
as an active factor in ordinary bus'-
ness operations. If activities of any
consid derable magnitude resulted, they
would necessitate the imposition o1
additional taxes or further borrow
ings. either thru the war finance cor
poration or by the treasury. In either
case. new burdens would be laid upor
11zae-s