Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1921-08-03
900 MILLION LOAN
URGED BY HARDING
Message to Congress on 1.-TWO
Fundamental Activities"
SEEKS AID IN FARM EXPORTS
President Asks Solons 20 Permit the
Purchase Of Securities by the
Finance corporation-NO Added
Burden to United States.


Harding, In a special message 10 con-
gress, asked II TO extend the authority
OF the War Finance corporation 10 pur-
chase securities. probably up TO $500
100000. now In the hands of the rail-
road administration. so that the pro-
ceeds may be used for settlement with
the railways. lie also asked for in-
creased credit for financing agricul-
tural exports.
Railway claims, based on the 'ineffi-
Cheney OF labor" during the war, the
President said. were 10 be waived for
the present 10 hasten settlement with
out surrender Of any rights In court
NO added expense" said the Presi-
dent, explaining his request, mo added
Investment Is required on the part .of
the government; there is no added liza
bllity, no added tax burden.
1T Is merely the grant of authority
necessary 10 enable a most useful and
efficient government agency To use its
available funds TO purchase securities
for which congress already has author
lied the issue. and turn them into chan
nels Of finance ready to float them"
Provided for Return of Roads.
'rhe contract covering operation pro
vided that the railways should be re-
turned 10 their owners in as good con-
dition as when taken over by the gov
eminent. and the transportation act.
recognizing that betterments and addi-
tions belong 10 capital account, provid-
cd that such sums as the railway COM
panies owed the government for better
ments and new equipment, added dur
ing the period of government opera
ton. might be refunded.
There has been, at no time, any
question about the justice of funding
such Indebtedness 10 the government.
Indeed Il has been in progress TO
measurable degree ever since the re-
turn Of the railroads TO their owners.
II has been limited, however, 10 such
cases as those I'm which final settle
ments with the railway administration
have been effected. The process is adj
mlttedly too slow 10 meet the difficult
situation which the owners OF the rail-
roads have been facing and | believe
II essential 10 restore railway activities
and essential 10 the country's good for
tune 10 hasten both funding and settle
ment.
quite apart from the large sums ow-
ing 10 the government, which we are
morally and legally bound To fund, the
government admittedly owes the rail-
wy companies large sums on various
accounts. such as compensation, depre-
citation and maintenance.
Relief for Farmer Urged.
sPendlng proposals for relief and
their discussion have already brought
10 the attention of congress the very
promising possibilities Of broadening
the mowers OF the War Finance cor
poratIon for the further relief Of agri-
culture and livestock production. This
corporation has proven itself so help
mi IN the relief thus far undertaken
that l cannot help but believe that It's
broadened powers. as have been pro-
posed. 10 meet agricultural needs, VIII
enable II wholly 20 meet the nation
wide emergency. This Is an impelling
moral obligation 10 American farming
IN all its larger aspects, and II VIII De
inost gratifying TO have your early
sanction.
in the case of the railroads there Is
a moral and a contractural obligation,
and your favorable action Is no less
urgent and will no less appeal TO pub
IL anproval. Railway solvency and
efficiency are essential 10 our health
IN industrial. commercial and agrl-
cultural life. Everything hinges ON
transportation.
.aThe way now would seem 10 be
c,ear 10 very early adjustment and re-
lief. except for the fact that the rail-
way administration, though possessing
assets. does not command the funds
necessary 10 meet what will be its adj
mltted obligations.
There Is no thought 10 ask con-
gtess for additional funds. Perhaps
500 600 600 will be necessary. The
railroad administration has, or viii
have in the progress OF funding, ample
securities 10 meet all requirements II
congress only viii grant the authority
"a negotiate these securities and pro-
vide the agency for their negotiation.
"with this end In view you are
asked 10 extend the authority of the
WAR Finance corporation so that II
may purchase these railway-funding
securities accepted by the director
general Of railroads. No added ex-
pemse. no added investment is re-
au,red on the part Of the government"