Every evening, Wilmington daily commercial., 1921-01-04
VAR FINANCE BILL
HELD UNNECESSARY
Reasons Given by President for
Vetoing Measure Which SEN
ate Passed Again.

Hy : ssociated Press to Every Evening.
Washington. Jan. 4-Speedy duphca-
ton Of the Senate's action IN overriding
the Presidential veto was the general
prediction today when tho House again
took up the bill 10 revive the war finance
corporation. Although the measure orlglna-
ted in the Senate, its passage IN the House
was hv y wide majority with party INES
ohliterated, and a two-thirds vote 10
override the veto was confidently expect
cd by ITS proponents
Washington, Jan. S.-Preaident VIII
so9s message vetolng the Gronna ros :
nmtlon to revive the war finance cor
poration follows,
To the Senate Of The United States:
/ am returning without my signature
:. ]. res 2l2. jontresoution directing the
war finance corporation to take certain
action for the relief of the present de
preston IN the agricultural sections OF the
country and for the purposes.
The jOlnt resolution directs the re-
vival Of the activities Of the war Finance
Corporation This corporation IS govern
mental agency Its capital stock is owned
entirely bv tre United States II was
created during hostilities for war purposes
The temporary powers which IT. Is now
proposed 10 revive were conferred IN March,
1919 70 assist n necessary, IN the financing
OF exports The general powers OF the cor
poration expire six months after the ter
minatIon Of the war alNl the special powers
with respect to the financing Of experts
expire one year after the termination OF
the war WhIle we are technically stIll
IN state of war, it unQueStionably WAS
presumed when this added power was
granted that peace would have been for
mally proclaimed before this time and
that the limitation Of one year would
have expired
In Nav, 1920, IN view of the fact that
export trade had not been interrupted
but had greatly expanded and that ex-
ports were not being privately financed in
large volumes, the War Finance Corpora
ton. At the request of the Secretary Of tn
Treasury, and with my approval, sus
pended the making Of advances.
This resolution was passed by tho
Congress apparently in view Of the recent
sudden and considerable fall IN prices
especially of agricultural commodities,
with the thought that some European
countries to which certain products
were clistomariIy shipped before the war
might again be enabled to resume their
importation and that larger masses Of
domestic exports to European countries
generally might be stimulated with the
resulting enhancement Of domestic prices
] am IN full sympathy with every sound
proposal to promote foreign trade along
sound business lines. l am not convinced
that the method proposed is wise that the
benefits II any. would offset the evils which
would result or that the Same or larger
advantages cannot be secured without
resort u government intervention. On
the contrary apprchcnd that the re
sumption Of the corporation : actIvitie 5
at tins time would exert no beneficial
rfuc.cc on the situation in which i'm :
provcmcI.t Is sought. would raise false
hopes among the very people VI no would
expect most and would be hurtful TO the
natural and orderly processes OF business
AVID finance.
Large government credits were ex-
tended during the war to certain European
governments associated with us in the
struggle These ceased several months
after the armistice, except for commit
ments already made They should not
now be resumed. either directly or in
directly. The recent Brussels conference,
composed OF experts from many European
countries and from other nations, itself
expressed the opinion that further credits
N4lol4tl llbt Ut ~ EtffG} IL
ments. do not believe that they should
be accorded indirectly
Exports OF domestic products have
not declined since the armisticc On the
contrary they have greatly increased
From an aggregate value before the
war Of less than two and half billions 81
dollarsd an Of about SIX billions the last
year OF hostilitics, they rose in the calcn-
dar year 1919 To more than 81 900 600 .0C0
and this figure viii probably be exceeded
for the last calendar year For the first
eleven months Of last calendar year VIC
exported more than seven and half
billion dollars worth OF domestic merchan-
disc. These have been largely privatelv
financed The difficulty in the way OF still
larger exports does not seem II lie So
much in the lack Of financial ability here
as in Europes lack Of means 70 make
payment. Her productive energies and tho
services which she renders have not YET
reached a point where they balance the
value Of commodities taken from this
nation. and her ability TO furnish for
sddItionalexportss securitI Ies which business