The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-06-05
Frederick Haskin's Letter
Shall Finance Corporation Stay?

directors of the corporation ~
which Secretary of the Treasur-
Houston then was chairman. adonf.
ed a resolution suspending actfv-
ties. No new loans were made. tho
corporations offices merely col
lected payments on the loans ont
standing.
( That summer came the heavy fan
in prices, particularly in prices If
farm products. In the autumn an
agitation was started to revive the
War finance corporation to helm
the farmers because people had
achieved the habit of thinking this
great government bank could be
turned to almost any purpose
There were many who opposed the
revival, declaring that it was time
the government got out of business
After a spirited contest, the
corporation was revived by con
gressional action, and proceeded to
make loans TO stimulate exports. II
had been urged that if exports of
farm products could be stimulated
prices of these goods would rise
and the American farmer would be
relieved.
Then in August, 1921, the cor
poration's organic act again was
amended to permit it to make ad-
vances on agricultural products,
whether or not they were for ex-
port. The corporation created an
elaborate system of committees
ramifying the entire country. Each
committee was, in effect, a local
agent for the great government
bank at Washington. A farmer.
needing credit, would borrow from
his local bank. The local bank
would turn the note over to the
committee which would forward il
to Washington to the corporation.
The corporation would advance
money against it. Of course, not
every note made by a farmer
would fit the requirements Of the
law and regulations. The farmer
actually got his money from his
local bank, but it, in many cases,
would not lend if it did not know
it could pass the note on TO the cor
poration. In this way a large sum
of money has been advanced to re-
lieve the farmers during the last
10 months.
Railroad Securities Purchased.
Another use the corporation
made of its funds was to purchase.
the director general Of
railroads. securities of American
railroads which had been pledged
with the director general on ac-
count of additions and betterments
made by the government during
federal control When it appeared
that the railroads were in dire
need of funds, following their re-
turn to their owners, the War fin
ance corporation arranged To sell
these securities to the public. thus
raising funds to advance to the rail-
roads.
A brief summary will show how
much money this great govern
nent bank has advanced to differ
INT groups of the American peo2ic.
Advances made TO May Is In fin
lnce exports have amounted TO
OF this sum $33 572,-
.73 has gone to aid cotton exports,
md s5,209,St0 for grain. Other
exported under this
assistance include tobacco, canned
ruits. meat products, condensed
milk, textiles, sheet steel, copper,
ugar mill machinery. agricultural
machinery, railroad equipment and
umbeT.
Advances Tor the relief Of agri-
and livestock interests
rom August "a. 1921, when this &C
ivity was authorized, to Mas u,
he latest date for which Figures
ave been compiled, aggregate
97,648,133. This financing in
ludes cotton, grain, livestock. SD
ar beets, rice, canned fruits. aired
ruits, peanuts, tobacco and general
gricultural purposes. Much Of
his assistance was advanced
through cooperative farming asso-
iations. Advances made TO bank
1g and financing institutions
mounted to s239,161, 914, and that
ortion made through the coOpera- -
ives to S5S,522, 219.
OF all these advances. whether to
anks, cOoperatives. or exports,
347, 934.253 has been in aid of the
industry. and this vast
lrmers found difficulty in get
ng bank credit through other
ources, In consequence. the farm
rs of the country are strongly op-
osed to a curtailmcnt of the func-
ons of the corporation.