The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1921-07-29
900 MILLION LOAN
URGED BY HARDING
Message to Congress on 1.-TWO
Fundamental Activities"
SEEKS AID IN FARM EXPORTS
President Asks Solons to Permit the
Purchase of Securities by the
Finance Corporation-No Added
Burden to United States.

Washington, July II. = President
Harding, in a special message to con-
gress, asked it to extend the authority
of the War Finance corporation to pur-
chase securities, probably up to $5OO,-
100000, now in the hands OF the rali-
road administration, so that the pro-
ceeds may be used for settlement with
the railways. He also asked for IN
creased credit for financing agricui-
tural exports.
Railway claims, based on the 'ineffi-
cheney 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.
mo added expense" said the Presi-
dent, explaining his request, mo added
investment is required on the part OF
the government; there is no added LA
bility, no added tax burden.
"It 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
for which congress already has author
lied the issue, and turn them into chan
nels of finance ready to float them.
Provided for Return of Roads.
''The contract covering operation pro
vided that the railways should be re-
turned to their owners i'll as good con-
ditiOn as when taken over by the gov
eminent, and the transportation act,
recognizing that betterments and addl-
tons belong to capital account, provid-
ed that such sums as the railway COM
panieS owed the government for better
ments and new equipment, added dur
ing the period of government opera
ton, might be refunded.
There has been, at no time, any
question about the justice of funding
such Indebtedness to the government.
Indeed, it has been in progress to a
measurable degree ever since the re-
turn of the railroads to their owners.
1t has been limited, however, to such
cases as those in which final settle
ments with the railway administration
have been effected. The process is adj
mittedly too Slow to meet the difficult
situation which the owners of the rail-
roads have been facing and | believe
it essential to restore railway activities
and essential to the cOuntrys good for
tune to hasten both funding and settle
ment.
"Quite apart from the large sums OW-
ing to the government, which we are
morally and legally bound to fund, the
government admittedly owes the rail-
way companies large sums on various
accounts, such as compensation, depre-
citation and maintenance.
Relief for Farmer Urged.
''Pending proposals for relief and
their discussion have already brought
to the attention of congress the very
promising possibilities of broadening
the powers of the War Finance cor
pOration for the further relief of agri-
culture and livestock production. This
corporation has proven itself so help
full in the relief thus far undertaken
that | cannot help but believe that its
brOadened powers, as have been pro-
posed, to meet agricultural needs, will
enable it wholly to meet the nation
wide emergency. This is an impelling
moral obligation to American farming
in all it's larger aspects, and it will be
most gratifying to have your early
sanction.
"In the case of the railroads there is
a moral and contractural obligation,
and your favorable action is no less
urgent and will no less appeal to pub
lie approval Railway solvency and
efficiency are essential to our health
full industrial, commercial and agri-
cultural life. Everything hinges on
transportation.
1.-THE way now would seem to be
clear to very early adjustment and re-
lief, except for the fact that the rail-
way administration, though possessing
assets, does not command the funds
necessary to meet what will be its adj
mitted obligations.
There is no thought to ask con-
greSS for additional funds. Perhaps
$5OO,OOOOOO will be necessary. The
railroad administration has, or will
have in the progress of funding, ample
securities to meet all requirements if
congress only will grant the authority
to negotiate these securities and pro-
vide the agency for their negotiation.
with this end in view you are
asked to extend the authority of the
War Finance corporation so that it
may purchase these MISUNDERSTANDING
securities accepted by the director
general of railroads. No added ex-
pense, no added investment is re-
quired on the part of the government"