New-York tribune., 1921-01-04
Action Following Presi-
dents Message Shows
That He Has Lost All
Hold Upon His Party
Is
Defeated, s. to 5
Senator Edge Disagrees
With Underwood Argu-
ment That This Course
Is Need of Nation Now

From the Tribune's Washington Bureau
WASHINGTON, Jan. 3.-Presi-
dent Wilson, on the advice of Secre-
tary of the Treasury Houston, to-
day vetoed the joint resolution to
revive the War Finance Corporation,
whereupon the Senate, disregarding
party lines, promptly passed the res
olutlon over his veto by vote of
53 to 5.
The House will take similar ac-
ton tomorrow and the resolution
will become law despite the veto and
the opposition of the President and
Secretary Houston.
President Wilson in his message
said that he disapproved the bill be-
cause the corporation was war
agency not desirable or needed in
peace time. He held that it would
raise false hopes among the people
who would expect most and would
be hurtful to business. He could not
see that it would exert a beneficial
influence on present conditions.
Wilson Grip Lost
The President held that the govern
ment should not be called on to finance
private business now at public expense.
The bill as enacted would result in
additional credit burdens. He asserted
that the nation should resume its
usual business methods and expressed
his sympathy with the widespread de-
mand for abolishmen: of war agencies
and the removal of government inf1u-
ence from business
Passage by the Senate of the resolu-
ton over the veto was viewed as Of
unusual significance. In the first
place, it revealed the strength of the
feeling in Congress that something
should be attempted to help out the
agricultural producers in the present
emergency. In the second place. il
showed clearly that this Administra-
ton has at last completely lost its
grip on the members of it's own party
in Congress.
The only speeches made on the reso-
luton were by Senator Underwood,
Democratic leader, and Senator Harri-
son. of Mississippi, prominent on the
Democratic side. Both favored pas
sage over the veto. Senator Harrison.
who spoke just before the veto mes
sage arrived, said:
Il hope the Senate and the body at
the other end of the Capitol can take
up Immediately the resolution and pass
1t over the Presidents veto. ] shall
Join cheerfully in such an operation. :.
Houston Is Blamed
However, Mr.. President, we all
know the situation at the White House
We know that since the President was
taken sick he has not been as free to
advise with the Congress as he was pre-
viously to that time. We know that
the information which he obtains as
general rule is from mis- Cabinet off
GERS and it would seem to me very
unfair to the country, indeed it would
be very unfair to the Congress of the
United States and TO the representa-
tives Of the American people, should
the Secretary of the Treasury have mis-
way and his advice be taken by the
President of the United States.
THE Senate by practically unani
nous vote said that the War Finance
Corporation should be revived. There
was no opposition TO that proposition
to amount to anything at the other end
of the Capitol. The people believe
that some benefit will accrue from
revival of that corporation. What we
now need are markets abroad and
credits to obtain those markets.
Nothing Harmful Seen
$50 I cannot understand the reason
ing of the Secretary of the Treasury
to continue to oppose the revival OF the
War Finance Corporation after his
statement to the Agricultural Commit
tee of the Senate"
Senator Underwood, Democratic
leader, said:
When the bin was before the Sem
ate l voted for it and | ha Aot
changed my opinion as to the advisa-
bility of the measure becoming a law.
see nothing harmful in this bill and
very much that may be helpful to the
people of the country. There is no
reason that | can see why the War
Finance Corporation cannot render aid
to the people Of this country as cf-
fectively as in time of war. and so far
dS tne UIanCldi COnulLlONS are CON
cerned we are in a far more dis
tressing situation to-day than ever in
the course of the war;
He said there was no danger to the
Treasury and none TO the finances ii
the law were properly administered.
Penrose's Attitude
The debate probably would have pro-
ceeded at some length if Senator
Thomas had not previously piven
notice of a speech on the Colombian
treaty. The roll was called and. as in
dicated, ahowed SO TO 5 for passing
over the veto. Those voting to sus-
tain the veto were Senator'S Elkins, Of
West Virginia; Keyes, of New Hamp-
shire; Sutherland, Of West Virginia.
Republicans, and Gerry, of Rhode
Island, and Thomas, of Colorado.
Democrats. Senator Penrose was
paired, but said if at liberty to vote
he would vote no.
The Democrats who voted to pass the
resolution over the veto were Senators
Ashurst. Arizona; Beckkam, Kentucky.
Culberson. Texas; Dial. South Caro-