The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1921-08-20
DALE ATTACKS WAR
FINANCE MEASURE
Administration Plan to Help
Agriculturists Is
Dangerous
ONLY COMMITTEE
MAN OPPOSING IT
This Legislation Adopted as War Meas
ure - Bill AmbiguOusly WOrded and
Gives Government toe Great Liberty
With National Funds, He Says.


With National Funds, He Says.
WASHINGTON, Aug. 20.-VigOrously
denouncing the policy of reviving and fur
Their perpetuating the powers of the wal
finance corporation for the purpose OF
financing a concern to go into the bust
ness of taking chattel mortgages on hogs,
Congressman Porter II. Dale or the Sec
ond Vermont district, in the house stood
out alone of the house banking and cur
rency committee in opposing the passage
Of the senate bill for the relief of produc-
ers of and dealers in agricultural prod
ucts. and sounded an impressive note OF
warning against attempting to initiate in
dividual and corporate credits by draw
ing upon the federal treasury.
IF we would put a little less thought
on how we can make certain interests
think we are attempting to aid them by
artificial Methods declared Colonel Dale,
and a little more energy into improving
our federal reserve system to meet pres
emf conditions. it would be more reason
able and more in line with common duty.
The Vermont congressman SAID IN part {:
MI. Chairman and gentlemen: You
recall very well in the spring OF 1918 the
conditions that existed in this country.
The German army had broken through the
western front and we were under the
greatest stresS-I should say, the strain
of doubt and perpleXity to the lInlt-at
that time or any during the war; and I'M
der these unprecedented conditions con
congress passed an act which required
legislators TO abandon common lines OF
reasoning and to think only of using every
Bo fro Gr1Fs n |
States-tO spur producers in this coun-
try to put out their products. What for!
For national defense, for national Sc
curity, to prosecute the war.
That is all we did it for. Congress
put together what was intended to be
merely the machinery to make loans TO
concerns whose products contributed to
the prosecution of the war. Ii was cor
pGration furnished from the treasury OF
the United States. if it were necessary.
with 100000 600 in capital stock, with
the authority to issue its bonds, as the
chairman of the committee has told you,
to the limit of $1,000 900 OO0-taX- exempt
bonds. In fact, it was a temporary frame
work with which to do what could not be
performed by a substantial structural
CORPORATION to meet in time of war what
the banks would not meet-and it was
composed, rs YOU know, of the secretary
of the treasury and four others. 1t was
empowered ana auIHOTlZtu IT. dtlNdliCf bt1
notes of banks. bankers, and trust com
panies which would loan to any firm. cor
DOrati0n or person whose operations were
necessary or cOntributary to the prOsecu-
ton of the war, and even under these cir
cumStances the value of the collateral to
these loans was restricted to 40 per cent
of its face value and we specifically re
strictpd the time when this extraordinary
corporation should stop operations and
begin to liquidate to six months after
the President proclaimed the end of the
war.
Now. when the distinguished leader
of the Democratic side (AIr. Kitchin) at
that time presented this kind of legisla-
ton. even for that purpose in time of war
he said it was radical, so unprece-
dented. so economically revolutionary
that the mind of even the most radical
would hesitate to endorse it. Nobody
took issue with him on his statement. 1t
was given general reiteration at that
time.
There were two predictions made re-
speeding that bill. three and half years
ago, to which / want to call your atten-
ton today. The gentleman from Ohio
(NIr. Fess) said: 1T will rot end with
the conclusion of the war. 1t will come
up a year after the conclusion of the war.
1t is dangerous and so forth, and so on.
The gentleman from Michigan (Mr.
,
the real purpose Of the bill was ultimately
to furnish money to railroads. That IS
what he said about it three and one-halt
years ago.
We'll. this war finance corporation
fulfilled its mission. and if it had stopped
when it was intended that it should stop,
though extraordinary, it would have
proved valuable as q war auxiliary. But
when that time came congress had become
somewhat accustomed to this economically
revolutionary method of raising money,
and we extended the time, and we en-
powered and authorized the corporation
to make advances to any firm or corpora
ton engaged in the business in the United
States of exporting domestic products who
were unable to obtain funds upon reason
able terms through banking channels, or
to any bank, banker, or trust company
who loaned funds to those concerns.
What was the excuse? Not the ex-
cuse that was submitted for creating this
abnormal institution in the first place,
namely. the prosecution of the war. No.
We had long since passed that necessity
by reason of our army, VIGOROUSLY. 1t
was in order to promote commerce with
foreign nations through the extension OF
credits See how we had gotten away
from our original purpose. And mark me,
gentlemen, there lies the danger today
Not half as much it is by the imitation OF
currency as by the initiation of credit that
this nation is imperiled at the present
time.
When with our new and powerful fed
eral land bank system, whenS with all
other kinds of financial institutions, you
have to empower corporation to advance
funds furnished by the national treasury
to bankers. firms, corporations and asso-
Citations who cannot obtain them through
any banking channels. in order to dc
what? To initiate credit. There, ] say
lies the danger. 1t may be avoided. II
may be one or two or three years before
we come TO it, but the risk is beyond the
taking by a safe pilot.
, Now. almost three years after the war
we come here to revive and rehabilitate
this old procedure again. What is tbs
purpose of this new and extended power
that is being asked for? Whenever, IL
the opinion of the directors conditions
arising out of the war-and all financial