The New York herald., 1921-01-05
Follows Senate's Lead i'm Over
riding Wilson's Stand by
$50 to 66.
PLAN NEEDS A BILLION
Houston Can Halt Carrying
Out Provisions Of Measure
Unless 1T Is Amended.
Special Despatch TO THE New YORK HERALD.
New York Herald Bureau,
Washington. ID. c., Jan. 4.

Washington. ID. G., Jan. 4.
The House to-day repeated yester-
days action OF the Senate in passing
over the Presidents veto the joint
resolution reviving the War Finance
Corporation to relieve the economic
distress of the farmers The vote was
$50 to 66.
Party lines were obliterated in the
vote, which was taken without formal
ity of debate. Democrats and RepubH
cans joining in the overwhe lining re-
pudiation OF the Presidents action. Of
those who stood by the President
seventeen were Democrats and the
rest Republicans. A stir occurred
when the names of Good. Cannon and
Fess. strong Republican leaders, were
found among them.
In the face of crushing defeat op-
ponents of the resolution retaliated to-
night with the statener- tnal the VIC
tory is an empty one, They declared
that the War Finance Corporation, al
though restored will be unable TO func-
laton will be required to provide them.
Doubt that Congress will be willing to
take this step with deficit Of a billion
and a half dollars facing II at the end
of the fiscal year was generally ex-
pressed. although proponents Of the
resolution said that bond issues might
be put through to raise the needed
money
II is pointed out that even If Congress
decides to carry through the legislation,
which has been described by one Re-
publican as n "travesty carried TO the
extreme" fund of about $1,000. .000,-
600 must be provided. In such a case
the uncompromising attitude of Secre-
tary Houston OF the Treasury will be
encountered. Mr.. Houston has fatty
refused to extend further credits to Eu-
rope. although possessing discretionary
powers to do so. because OF the situation
there. and 1t is said that If Congress IL
intent on overcoming his opposition it
must first amend the act establishing
the War Finance Corporation TO divest
him Of his authority. which he has an
nounced he would exercise.
Further. critics of the proposition con-
tend that II Congress legislates funds
TO vtalize the corporation II win mean
not only higher taxes, but the relief
it will provide for farmers will be only
temporary. as they maintain The present
situation is due TO natural economic
forces and must be met sooner or later.
Eugene Myer. Jr., former head of the
War Finance Corporation, said to-day:
Final passage of the resolution di-
recting resumption of the War Finance
Corporation may be interpreted as a
turning away from the extreme policy of
reckless dciiation in favor OF a more
constructive attitude Congress, In the
original passage of the resolution direct
ing the resumption OF the corporation.
indicated in unmistakable terms it's de-
sire to have the corporation function
with the powers heretofore authorized
and within the limits OF the discretion
provided. The Secretary OF the Treas
TRY chose TO cause veto BY the Presi-
dent. while Congress In passing the
measure over the veto has signined its
desire 10 have the Secretary carry out
Its mandates.
Economically considered (: is hoped
that II may mean tho dawn of a brighter
day for Americas producers. merchants
and bankers"
Mr.. Myer asGcrted that n lid not cx-
pcct TO be reappoiutcd az head OF tho
corporation because Of the conflict OF
views between him and Secretary
Houston.