Evening star., 1921-12-26
War Finance Corporations
Report Shows Large Sums
Used to Revive Trade.
NATIONWIDE AID GIVEN.
Boards Help Broadened to Include
Wheat, Fruit, Tobacco and
Meat Exports.

and industrial problems Of the pres
ent The corporation was originally
created ito promote commerce with
foreign nations through the extension
of credits. and to aid in the transit
tion from the conditions Of war to
the conditions of peace; to make ad-
vances not exceeding s1,000.000 to
American exporters and American
banking institutions for the purpose
of financing the expectation OF
domestic products" This authority
was exercised until May. 1920. when
activities were suspended
In January, 1921, Congress adopted
a resolution directing that the ac-
tivitics of the corporation be re-
sumed with the view of assisting in
the financing of the expectation OF
agricultural and other products to
foreign countries.
"As raw cotton is our greatest ag-
ricultural export product. attention
was directed first to this important
factor in the problem" says the re-
port 1T became Increasingly clear.
however. that the situation in Europe
had changed. Sound business men
were no longer willing or anxious TO
buy on credit, because of the risk m
yolved in exchange fluctuations. To
meet this situation the corporation
offered to make advances to finance
the carrying of stocks OF American
cotton in foreign warehouses. 1T was
then suggested that it would be de-
Sra BILE to make advances on cotton
stored in America which was under
contract for sale to foreigners: and
the corporation agreed to render such
assistance.
Cotton Trade stimulated.
Early in July the corporation agreed
to make an advance of $o.000.0O0 TO
cooperative association in Mississippi
to carry 100000 bales. This stimu-
lated considerable interest and ad-
vanceS were made TO cooperative
associations in Texas. Oklahoma and
Arizona, as well as to banking insti-
tutions in the south to assist IN
financing large quantities of cotton for
export in a similar manner. In all.
the corporation agreed to finance ap-
proximately million bales of cotton
and it was not long before there was
marked Improvement in the cotton
situation The business outlook in
the south was changed and discour-
agement gave way to confidence ana
hope says the report. But the i'm
provement extended beyond the south.
''The increased buying power was nat
urally reflected in other producing
sections and in our manufacturing and
industrial centers.' the report adds.
The corporation indicated its readi-
ness to finance other agricultural COM
modities intended for export in ac-
cordance with the methods that had
been devised for financing cotton.
Large advances were authorized to CO.
operative associations on wheat. dried
fruit and canned fruits and vegetables
and to exporters or banking institu-
tions on tobacco. condensed milk and
meat products. Loans for the ex-
portation of railroad equipment. cop
per and sugar mill machinery were
approved. .s
Boards scope Broadened.
"Soon it became necessary" says the
report. that provision be made for
the carrying of our commodities in
larger quantities for longer period
of marketing. Not only was the mar
keting abroad slow. but our own mer
chants and manufacturers were oper
!. ating on a basis of the lowest possible
stocks. and were buying only to meet
current demands.
The War Finance Corporation was
amended. broadening the powers of
the corporation so as to advance not
only to exporters and banking inSti-
tutions, but also to dealers in. and
handlers of. agricultural products.
until these products could be sold and
exported. Loans could then be made
for not to exceed three years. The
corporation was authorized to loan to
persons or firms or corporations out
side the United States. certain
conditions of payment. This privilege
and authority was extended to loans
exceptional eases the corpora ton was
authorized to buy paper of domestic
banks. such paper being secured by
agricultural products and live stock.
and paper issued by Edge law bank
ing institutions.
These advances were limited to ST.
0o0.0O0.O0O at any one time. AgrcuI-
tural loan agencies We're established
in important agricultural and live
stock districts. Thirty-three agencies
were established The managing "di-
rector of the corporation visited all
the large cities of the west to make
the needs of agriculture. The CO.
operation of state bankers associa-
tions has been sought and obtained.
s24 Applications Approved.
Dp to November 80. 1921. s24 appli-
cations from banking and financing
institutions for advances for agricul
tural purposes. involving aprroxi-
by the board of directors. OF this
number. 790. involving approximately
S3S.T26,000 were acted upon during
the month of November.
Large advances have been granted
to cooperative associations on rice.
wheat. cotton and canned fruits. From
August "a to November 30. 1921, the
advances granted by the corporation
to cooperative associations for agr!-
cultural purposes total s39,597. 900. and
poses to banking Institutions and yeX-
porters aggregate $3S.S47.000.
Within the past few months new
agricultural and live stock loan COM
panies. with total authorized capital
of more than $5.000,00O. have been
formed in Utah. Wyoming, Colorado.
Texas. New Mexico, Montana and Ne
braska. Liberal advances are made to
them on the same basis as loans to
other financing institutions.
Ear1v n Nnvemher a holt d.
yisory committee was formed ito aid
in deyising methods for meeting the
situation in the most effective way"
Warren T. McGrady, Governor Of In
diana, was chairman. This commit
tee has been active and has brought
about "a noticeable improvement in
the corn situation"
Noteworthy Results Attained.
Tho work of the corporation 'is
strengthening the banks with slow
assets to carry their old agricultural
loans" and helping stronger banks
considering the magnitude of its
task" says the report, "it is felt that
noteworthy results have been achiev-
ed. Its very existence has tended to
inspire confidence. The right meth
DDS have been adopted"
\ The Secretary of Agriculture was
added to the corporation by the agri-
Advances granted for export and agri-
cultural purposes to November 80.
1921, amounted to s133,547.21539 OF
this amount $51,524,209.34 was to as
sist in financing exports, and $S2,023,-
O05.05 for agricultural purposes"
Cotton, grain, live stock and railroad
equipment lead the list of commod-