The New York herald., 1921-07-27
Recommends War Finance
Corporation Be Authorized
to Buy Securities Held
by Director-Ge General.
NO EXPENSE INVOLVED
Action Would Provide
Money to Settle Claims and
Give. Assets for Railroad
Betterments.
FARM RELIEF ALSO ASKED
Kellogg Introduces Substitute
for Norris Bill to Permit FL
nancing Of Agricultural
Exports.
NO EXPENSE INVOLVED
FARM RELIEF ALSO ASKED

Exports.
Special Despotch to THE NEW Yosx HsaALp
washington, b. c., July =.
President Harding to-day sent
special message to Congress asking
that authority be granted to extend
financial relief to the railroads and
to the agricultural industry Of the
country through the War Finance
Corporation.
He proposed that the powers of
the corporation be increased to per-
nit it to accept and discount railroad
securities up to approximately $780,
100000, which would make available
to the carriers funds with which to
pay their obligations and negotiate
new equipment and supply pur-
chases.
Under the Presidents plan, no fur
ther appropriations by Congress
are necessary. The War Finance
Corporation will utilize It's revolving
fund to purchase railroad securities
now held by the Government, which
it will In turn float for cash to re-
coup this fund.
The President proposed agricul-
tural relief In separate legislation,
but through the War Finance Cor
poration. instead Of through new
corporation as provided In the Nor
ris bill, now pending in the Senate.
The PreAident's message appears
70 have broken what was fast grow
ing into q Legislative blockade IN the
Senate. Much favorable comment fol-
lowed the recsipt OF the nessage IN
the Senate, where the Norris Farm
Export Corporation bill Is under dis
cussion as the unfinished business.
Shortly before the message came In.
Senator kellogg (Minn.) introduced
a substitute for tho Norris bill, ap-
proved by the War Finance Corpora
ton and by Secretary Of Commerce
Hoover, virtually adopting the same
principle for the relief Of agriculture
as the President proposed for the
railroads.
Speedy Passage Foreeast.
Tho War Finance Corporation u to
be the agency for the relief of both
basic industries and tho Republican
leaders are. confident they have suf-
ficient votes for the adoption Of the
Kellogg substitute. Indications now
point to a speedy vote and the sending
of the amended bill to the House for
action there.
Senator Norris will try to put
through his own bill. but others in
the agricultural bloc" .foreseeing that
IL cannot command sufYicient votes. are
expected to back the Administration
bflI.
There will be no attempt to COM
hine railroad and farm relief In one
bill. leaders stated to-day. The pro-
sramme as now outlined contcmplates
disposal Of the farm relief measure. to
be followed by consideration Of the
railroad relief bill and probably the
anti-beer bill. While there was some
opposition manifested over the Presi.
dents proposal in Democratic circles.
II is believed they also will to large
that depression IN Agriculture. In
transportation and In all other lines Of
business and industry will be relieved
Has Cunnins's suppert.
Senator Cumniins (ra-) chairman of
the Interstate Commerce Committee. II
expected to introduce the railroad relief
BILL He IL now at Atlantic City. but IL
expected back soon. He 10 known TO
approve the Presidents suggestion and
IL said TO have conferred with him about
II more than two weeks ago.
Senator Norris was resentful over the
proposal of the substitute to-day. as
serting that members OF his committee
had not been able to learn anything
about II. had not been consulted ana
that Il had been secretly prepared"
Senator Keilogg denied there had been
anything secret about II. saying II had
been presented as soon a. II could be
prepared In the hope OF facilitating ac-
tion.
Debate on the farm relief bill was
Interrupted By the reading Of the Presi-
dents message, put was Immediately re-
surncd thereafter and continued through
out the day, Senator Kellogg and Sem
a;or Ransdell tLa-) making the most
extended arguments. There was the
usual crossnre OF interruption by sen-
ators interested In the measure. SEN
stor Kellogg devoted himself to explain
ing the main features OF the substitute
and his objections to the Norris bill
Senator Ransdeli opposed the substitute
and insisted that the Norris bill should
be approved in it's original form,
There was no reference In the debate
10 the Presidents railroad relief mes
sage. but II was discussed generally by