The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1921-01-07
FRIDAY, JANUARY 7, 1921
WAR FINANCE CORPORATION

Whether or not the passage of the
War Finance Corporation resolution
will prove of benefit to the farmers
of the country is yet to be seen. The
measure was originally passed for
the purpose of financing exports to
other countries and of enabling these
countries to secure credit for such
periods as were necessary in order to
pay for the things exported. It was
and is government agency thought
to be necessary in order that the peo-
pie might be saved from panic fol-
lowing the END of hostilities.
Ordinarily, of course, the govern
ment has no part in the handling of
purely private business affairs. The
selling Of the products of the farms
to other countries in ordinary times
is a matter which should be handled
by the merchants and bankers and
not by the government. But a state
of war makes it necessary that the
government assume the handling of
many matters not ordinarily handled
by government agencies. And the
duty of the government to help in
war times does not end at the close
of hostilities we think.
Taking the view that the war was
over and that the government should
not longer function in matters of
private business the Secretary of the
Treasury sometime ago caused the
War Finance Corporation to cease
operation, and it's capital stock, con-
tributed by the government, has been
returned to the treasury. This along,
with the restrictions upon credit by
the Federal Reserve Board is believ-
ed by many people to be responsible
for the "two hundred per cent" fall
in the prices Of commodities. as fig
ured by ssaassTs Smith.
These times convince most of US
that we are, ,@offaanciers, but we
are willing tt. follow the lead of those
who believe that, ifyit was necessary
during war kmessfor the governpent
to assist producers in the sale of
commodities to other countries, then
for reasonable time after the war
such assistance is necessary. Especi-
ally do we believe this when so far as
we are concerned the war is still OH
between this country and Germany.
1t is true that hostilities have ceased,
as the president says, but until peace
is made the resumption of trade with
that country cannot be complete or
at normal. For these reasons, the as
sertion of former Secretary of the
Treasury, Mr.. McAdoo, that the acts
of the Treasury Department and of
the Federal Reserve Board in restrict
ing credit and in denying assistance
in the marketing of products have
been too drastic meets with general
concurrence in these parts at least.
Mr.. David Lawrence, who some
times writes as if inspired by the
administration, says that the War
Finance Corporation will not func-
ton for the reason that two of the
members are under Mr.. Houston and
that the two who are to be named
will be powerless because the Secre-
tary and his two assistants will carry
out the policy of Mr.. Houston, rather
than obey the mandate of Congress.
We shall not be surprised if this be
true. The President lately decided to
disregard a law passed by congress
and which he approved. Mr.. Houston
as a part of the present administra-
ton, no doubt, feels that he has
perfect right to refuse)to carry out
the terms of any law which do not
appeal to him, and to enforce such
as commend themselves to him. We
are in the hands of an administration
it seems which for all practical pur-
poses is both the legislative and the