The Washington herald., 1921-07-14
FEDERAL AGENCIES
HELIEVEW WORST OF
DEPRESSION PAST
Initiative on Part of In.
dividual Business
"a
Men Needed.
FINANCE BOARD AID
War Finance Corporation a
Most Energetic Department,
Says Sullivan.
By MARK SULLIVAN.

All those agencies of the govern
ment which are concerned with the
state of business believe that the
worst of the depression has been
passed Departments Of the govern
ment to which this is matter OF
primary conceEn believe that what
is now most necessary is initiative
on the port of individual business
men.
Probably the most energetic Of
the government departments en-
gagged in helping business is the
War Finance Corporation. Its di-
rect function is the facilitating of
export trade by supplying credit
under proper conditions Like every
institution. the degree Of its effi-
cheney is determined largely by the
personalities of the individuals who
direct it.
Fhe War Finance Corporation
could fulfill the requirements of the
statute which created it by merely
sitting still behind the counter of
the Treasury and maintaining
readiness TO advance money to prop
erIy, equipped applicants. But ii is
the belief of the War Finance Cor
poration that what is most needed
is energy and initiative on the part
of Individual business men. and the
directors Of the corporation are not
content with waiting for applica-
tions for loans, but regard it as a
part of their function to stimulate
initiative on the part of business
men and bankers in those sections
OF the country where business is
most depressed.
Advances Cotton Loan.
For example, one day last week
the"'war Finance Corporation ad-
vaficed S5.OOO.OOO to a cooperative
association at Memphis. Tenn.
which has on its hands sc-ne 220.-
900 bales of long-stapIe cotton. The
purpose of this advance is to sup
ply, to the owners Of the cotton such
funds as they need in the imme-
diate present so that they will not
he under pressure to sell their cot
ton at any price they can get for it.
Fundamentally. tie purpose is to
let the European consumers of this
kind of cotton see that the growers
of II are protected financially. and
cannot be made to accept lower
prices. The desired psychological
effect should be to make the Euro
pean Spinners realize that cotton
has reached its lowest price. and
thereby stimulate buying on their
part.
Sends Remarkable Wire.
Having taken this step the War
Finance Corporation, with an ini-
tiative characteristic of it. but in
frequent in government institutions.
sentE a remarkable telegram to the
Federal International Banking Com
pany, of New Orleans. This bank
ing company was organized last
winter in the South under the Edge
law, through Subscriptions from
1,4O0 Southern bankers and other
subscribers, for the purpose of pro-
noting the financing of the export
trade. The telegram from the War
Finance Corporation to these South
ern bankers reads:
You have no doubt seen the an
nouncement that the War Finance
Corporation has agreed to make an
advance of S5,00O,000 to the Staple
Cetton Cooperative Association of
Memphis to assist in financing cot
ton to be held in American ware
houses for export. within a wear
THIS loan is considered absolutely
sSte business and helpful in promot-
ina the orderly marketing of the
crgp in the territory in which this
cotton is grown:
I'm view of the fact that YOUR
company was formed by Southern
interests to assist in the orderly
marketing of cottoR-to foreign buy
ers, Will it not be possible for YOU.
acrng in conjunction with other
backing institutions. to work out a
plan using existing export organi-