The Republican journal. [volume] (Belfast, Me.) 1829-current, 1921-01-20
THE WAR FINANCE CORPORATION

This corporation was authorized by act
of Congress a few months before the
close of the war. 1t had $500, 0O0, 900
capital, all of which was furnished by
the United States Government. The
corporation officers were Chairman,
Mana director, Director, Secretary
treasurer, General Counsel, Consulting
<Cou nsel, Assistant Counsel, Chief Clerk
and Chief Bookkeeper. These officers
had long list of clerks, stenographers,
agents and other helpers. The reasons
why this corporation was gained were
clearly stated on the floor CT Congress by
Representative Mann of illinois, and were
as follows:
stWe have the goods. The people of
Europe have the want They desire our
goods, but they can purchase them only
by payment in cash, by credit or by ex-
change. They cannot pay the cash.
They cannot give US in exchange suffi-
,.ie.t in the way of goods to enable us to
purchase the products which we desire
to sell to them. Tney can obtain from
us the goods which we wish to sci! ard
which they wish to buy only on credit,
but the individuals in our country or the
CORPORATION seeking to make the sales to
Europe cannot themselves carry credit
lines s, fficient to enable them to proceed
with sales without taking all of the ready
cash. The only way in which we can
furnish sufficient credit to the people in
Europe to make the purchase from US is
by having the investing public in Amer
ica take up these lines of credit and carry
them, If the War Finance Board can
loan money to the people making the ex-
norris to Europe and then in turn issue
fheir bonds and the American investing
public will purchase those bonds, that
credit is furnished"
The corporation made large loans and
credits and when the armistice was signed
had about 1915, 600, 900 unexpended. The
Secretary of the Treasury knowing that
the act of Congress creating the corpora
ton was considered 10 be war measure,
very properly then suspended its activi-
ties, The above gives in brief the pur-
pose, history and status of the corpora
ton from its authorization down to about
a month ago.
Owing to the slump in prices and the
large surplus of farm products, the farm
ers of the country found themselves face
TO face with enormous losses and the
mail of congressman was loaded with
petitions for relief. 1t was feared that
without relief to the farmers, business OF
almost all kinds would go down with
theirs. 1t was claimed, therefore, that
giving aid to the farmers would not be
class legislation but was wise legislation
for all. A joint resolution was passed by
Congress to rehabilitate the War Finance
Corporation to operate mainly in the sale
of agricultural products to foreign pur-
chasers The resolution and its pream
bles are as follows:
Whereas there exists in the agricul-
Iural sections of the country unprece-
denied and unparalleled distress on &C
count of the ina biIity of the farmers to
dispose of the corn. wheat, cotton, wool,
livestock and other commodities now in
marketable condition at prices that will
pay the cost of production; and
Whereas the people of Europe are in
dire need of the agricultural products
now in possession of the farmers of this
cou ntry, but are unable to purchase on
account of existing financial conditions;
and
Whereas, under an act of Congress,
there was established the War Finance
Corporation for the purpose of financing
the expectation of American products to
foreign markets; and
Whereas the activities of the War
Finance Corporation were suspended in
May, 1920, by an order Of the Secretary
of the Treasury; and
Whereas the banks of the country are
unable to extend credit to the farmer in
order that the farm products may be
held until they can be sold in fair and
Reasonable market; Therefore be it
Resolved, ETC., That the Secretary of
the Treasury and the members of the
War Finance Corporation are hereby d.
Iected to revive the activities of the War
Finance Corporation, and that said cor
.por alton be at once rehablltated with
the view of assisting in the financing of
the expectation of agricultural and other
products to foreign markets.
The President vetoed the resolution in
a message which was dignified and con-
sentative. Without debate the Senate
%'passed it over Mr.. Wilson's head' by
vote of So to 5. Twenty-Five Democrats
went on record against the veto and three
Republicans voted in it's favor. The