The labor world. [volume] (Duluth, Minn.) 1896-current, 1921-08-13
THE PRESIDENTS PLAN.


the relief Of the railroads.
The President is largely responsible.
for when he declared in his message
10 congress that he was presenting
scheme by which the railroads could
secure $j00,000000 with "no added
AK burden" TO the government, he
INDUCED in an amazing misstatement
Of the facts.
The newspapers controlled by the
railroads have taken their cue from
the President. Not half dozen Of
The large dailies throughout the coun-
try have given their readers fair
statement of the proposition.
The result is that even members Of
congress are ignorant concerning the
"details of the President proposal, and
vet within few days they will be-
called upon to vote on a proposition
which will take from the public treas
ury $500 100000 Of the peoples money
and give that vast sum to the rail
roads.
That is an accurate statement Of the
Presidents proposal, and any other de-
scription Of it is inaccurate and I'M
truthful.
Let lis consider the facts for mo-
ment. The railroads owe the govern
ment more than billion dollars on
account Of capital expenditures made
by the government for the benefit Of
the railroads during the period Of the
war, The railroads have put up secur-
i,y to insure the repayment Of about
$500, 100000 Of this sum. That leaves
the roads owing the government $780,
100000 which is not secured.
It is proposed that the railroads shall
deposit with the federal railroad ad.
ministration securities to protect this
indebtedness.
The President advises congress to
permit the war finance corporation to
purchase $500,oo0,000 worth of these
securities from the railroad admins.
tration. This would enable the rail.
road administration to pay that sum
to the railroads in settlement Of what
the government owes the roads because
Of so.called 'under maintenance
during the war.
The first question the ordinary citi-
gen will ask is: "What is the war
finance corporation7'
The answer is that it is as much a
part of the government as the railroad
administration or the treasury depart.
ment
Therefore, when the President talks
about the railroad administration sell.
ing securities to the war finance cor.
poraton he means that the government
will sell the securities to itself.
Where will the war finance corpora
ton get the money to pay for the Sc
rurities which are passed in this pc
cullar transaction?
In just one Of two ways-either By
drawing on the public treasury or by
selling bonds which congress has au
thorized the war finance corporation
to issue.
1t doesn t make particle Of differ
ence, so far as the government is con
cerned, which method is adopted. L
he treasury supplies the money the1
that branch Of the government mus
20 into the market and borrow $500,
100000. If the war finance corpora
tion supplies the funds it must issu
bonds.
And the people of the United State
are morally and legally bound to pa,
the principal and interest of thos
bonds.
It is unfortunate that Presiden
Harding felt it necessary to canon
flage this important transaction. TIL
people have right to expect thei
CQlcl eASCullFe W utdl lTduh1Y WIZ
them.
He should have gone before cor
gress and said:
II recommend that we give til
railroads ten years in which to pa
the $70o,00o,00O they owe the govern
ment, and that the secretary of tn
treasury be authorized to raise 5000
100000 with which the railroad &C
n,inistration may settle any claim
against the government which tn
railroads are able to sustain.''
Then the members of congress an
the "folks back home' would hav
known exactly what the Presiden
meant. He could not have been a,
cused of double dealing and those VIII
did not believe his proposal was
good thing would at least common
/ !, /.