Evening star., 1921-07-26
Would Use Funds
of War Finance
Corporation
FARM EXPORT AID
is ALSO SOUGHT
Message Says Plan to
Help Rail Lines Will
Be Economical.

President Harding. in a special mes
sage to Congress today, asked it to
extend the authority of the war
finance corporation to purchase Sc
curities, probably up to $500.000,O0O.
now in the hands of the railroad ad-
ministration. 80 that the proceeds may
be used for settlements with the rail-
ways.
This the President told Congress
would open the way to early ad-
justment and relief" of the railroad
problem. There was no thought he
said of asking Congress for additional
money.
The message asked legislation au-
thorizing the war finance corporation
to increase credit for financing agri-
cultural exports.
Cites Governments Moral ObligatiOns'
That there were moral obliga-
tions upon the government to aid In
both respects was stated by the
President. who commended the War
Finance Corporation as an agency Of
great value in restoring economic
conditions Prompt action was re-
quested by the President. but he did
not ask that both features be con-
tanned in one bill.
Railway claims. based on the "inef-
ficiency of labor" during the war. the
President said. were to be waived for
the present to hasten settlement with
out surrender of any rights in court.
Although the railroads owe the gov
ernment large sums. the President
said, the government also owed the
railroads large sums on various ac-
counts.
NO added expense" said the Presi-
dent, explaining his request. mo added
investment is required on the part OF the
government There Is no added liability
no added tax burden"
1T Is merely the grant Of authority
necessary to enable a most useful and
efficient government agency to use It's
available funds to purchase securities Tor
which Congress already has authorised
the issue, and turn them into channels
OF finance ready to float them"
Eircctor General sends Data.
With his message the President sent
also to Congress-, large amount OF
the railroad administration. showing the
progress of liquidation so far and treat
ing present financial conditions
Republican leaders, after the receipt
of the message. adopted the plan Of
dealing with the railroad and asri-
cultural questions in separate meas
ures. Senator Kellogg, republican.
Minnesota, introduced bill. drafted
by Secretary Hoover OF the Depart-
ment of Commerce and Chairman
Meyer OF the War Finance Corpora
tion, extending the powers of the
War Finance Corporation to agricul-
tura1 export financing. 1t also would
increase the corporations revolving
credit fund from five hundred million
TO one billion dollars.
Kellogg Bill as Substitute.
The Kellogg bill was offered as
substitute for the pending Norris bill
TO create a new government export
financing corporation. with $780,
100000 capital. Provisions dealing
with railroad funding were stricken
from the Hoover-Meyer draft before
it was presented, and republican
leaders planned to consider later and
separately the Presidents recon-
mendations that the War Finance
Corporation take over railroad fund
ing.
In his memorandum accompanying the
Presidents message Director General
Davis submitted figures to show that
the amount Of claims settled by the
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