Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1921-01-07
war FINANCE VETO
The Presidents Reasons for DiSSa.
pr0Yal.
1T WOULD ONLY RAISE FALSE HOPES

is Sound.
President Wilson's message vetoine
the Gronna resolution follows:
To the senate Of the United States;
am returning without my signature
S. ]. Res 212; Joint resolution direct
ing the war finance corporation to take
certain action for the relief Of tho
present depression in the agriculture
sections Of the country, and for othe!
purposes" .
Joint resolutions direct the reviVa
of the activities Of the war finance
corporation. This corporation is &
governmental agency. It's capital stock
is owned entirely by the United States
1t was created during hostilities for
war purposes. The temporary powers
which it is now proposed to revive
were conferred in March. 1919, to assist
if necessary. in the financing of cX-
ports. The general powers Of the cor
3oration expire SIX months after the
'crmnation of the war and the special
powers with respect to the financing OF
exports expire one year after the ter
mination of the war. While we are
technically still in a state Of war, II
mquestionably was presumed, when
this added power WAS granted. thar
peace would have been formally pro-
claimed before this time and the linn
tation Of one year would have expired.
In May, 1920, in view Of the fact that
Export trade had not been interrupted,
but had greatly expanded, and that cX-
1orts were being privately financed in
'arge volumes, the war finance cor
ooration, at the request OF the sccrc-
:ary of the treasury and with my ap-
,roval, suspended the making OF ad-
!anccs.
This resolution was passed by con-
-ress apparently in view of the recent
sudden and considerable fall in prices,
especially Of agricultural commodities
With the thought that some European
Countries 10 which certain products
we're customarily shipped before the
var might again be enabled to resume
heir importation, and that larger
masses Of domestic exports TO Euro
)eun countries generally m ght be
stimulated, with the resulting enhance
nent Of domestic prices. | am in full
sympathy with every sound PROPOSE!
% promote foreign trade along sound
BUSINESS lines. ! am not convinced
nat the method proposed is wise that
lie benefits. if any would off:i": the
wills which would result or that Tho
,amc or larger advantages cannot DC
secured without resort to governmental
Intervention.
On the contrary, I apprchcnd thai
he resumption OF the corporations ac-
iviticS at this time would exert no
beneficial influence on the situation III
which Improvement is sought. would
.aisc false hopes among the very pco'
,le who would expect most, ana woult
)e hurtful to the natural and orderly
PROCESSES of business and finance.
Large government credits were c%-
! ended during the war to certain Ga-
.opean governments associated with US
II the struggle. These ceased sevcra
months after the armistice. except toi
commitments already made. TheA
:hould not now hc resumed, either d.
acily or Indirectly The recent Brus-
els conference. composed of experts
from many European countries AM
rom other nations itself. rNpreSS'o
hn ooinion that further credits Slluuit
lot be accorded directly by govern
ncnts. | do not believe that they
;h1uld be accorded indirectly.
Exports Of domestic products have
lot declined since the arm :Sticc. Oh
he contrary, they have greatly IN
reasrd. From an aggregate value be-
ore the war of less than II billions
# dollars and or about six billions, ih'
ast wear Of hostilitirs, they rose il
he calendar year 1919 to more lhti
=, 500 .0OO, 900. and this figure Will prob
BY be exceeded for the last calendar
For the first / months OF last cal
.ndar year, we exported more tllli
seven and half billion dollars wnrti
# domestic merchandise. These h;iT'
,cen largely privately financed. The
difficulty in the way of still larger on
,orts docs not seem to lie so much II
he lack Of financial ability here as i!
';uropc's lack Of means to make pay
nent Her productive energies ana tlI'
;p,viccs which she renders have not Yej
cached Il point where they ba!anc" tho
yalue Of commodities taken from TIL:
nation, and her ability TO furnlS" i"l
additional exports securities whIci
BUSINESS men would feel justified II
akin" is restricted. The experts o
the brussels conference reported tia
one or the chief obstacles To the
granting of credits is the absence II
borrowing countries of sufficient Scc"'
.itirs for ultimate rcpaymcnis.' INT!
his obstacle is removed. ii is Difficult
q see how materially larger exports it
europe arc to D." made even, II OK
loi.tcrs, aided Or un;Iid.'d by govern
nrnt finance, Stand ready To do thci
rrrt II is rcmarklbl' that Eurup'
70. Il Il Fl,