Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-06-07
The HQSkin Letter 81 T : %ssz


Washington, D.. c., June 4.-Once
Corporation, one Of the greatest bust
ness institutions ever organized, is de-
pendent upon the view which congress
entertains of it's usefulness. This ex-
pertinent of the government in the bust
ness of directing financing of citizens
has been subject several times since it's
organization either to change of pur-
pose or chance of complete abandon
ment.
The War Finance Corporation is
one of the biggest banks in the world.
and it is conducted by the government
of the United States. 1t has a capital
of $500 100000 in government funds,
and authority to issue bonds to vast
amounts.
The original act creating the cor-
poration was approved April 5. 1918.
This was entirely a war measure. 1t
States entered the war, the treasury
offered the Liberty loans which abb
sorbed so much of the peoples money
that private corporations sometimes
had difficulty in getting enough funds
invested in their enterprises to keep
them going. The government recog-
nized that this was injurious, so this
corpcrttion was authorized to make
loans to enterprises of almost any
character which were engaged upon
work tending to assist in the prosecu-
ten of the war. Some of the companies
making war material were in financial
difficulties and loans were made to
them. Street car companies which
carried employees in munition factories
to and from their work were eligible
- .Ann-& III No. ~.Ar
some of them seemingly remotely con-
nected with the prosecution of war.
were found to be performing some du-
ties which helped the cause and there
fore received loans.
Coupled with this function, the War
Finance Corporation act gave to the
capital issues committee, which it ere
ated, the authority to suppress the
issues of blue sky stocks and bonds,
that is securities of a doubtful value.
in order that funds be conserved for
investment in governmen emf bonds and
legitimate private enterprises.
Help for CattIemen
As the war developed, it was found
desirable to expand the functions of
the corporation. One of the first add
tional powers it was given was to
make loans to cattlemen on their stock.
1t was shown that many cattlemen were
killing off their stock because they
could not get enough money from the
banks to carry them over the winter.
It was recognized that the country
must have food. and that it would be
q national calamity to permit the stock
| mept TO kill their immature stock for
lack of financing.
Immediately after the armistice,
there was a general belief that the
exports from the United States. which
had reached a high tide during the war.
would drop away to practically moth
ing. This was regarded as an unde-
sireable development, so steps were
taken to stimulate exports. The belief
was that if American exporters could
extend credit to foreign buyers, the
foreigners would take American goods
in substantial quantities. 1t was ar
ranged that the American exporter,
upon granting credit to the foreigner,
could then borrow of the War Finance
Cooperation which would await payment
from abroad.
Affairs developed so that the corpo-
ration did very little of this sort of
business. A wrong guess had been made.
Instead of a need existing for the
stimulation of exports, they sprang of
their own accord to previously IN
dreamed Of proportions. Much credit
actually was given. but it was worked
on bankers acceptance through the
federal reserve banks in a manner
which did not require the good offices
Of the war finance corporation. But
that is another story, which. if fol-
lowed, would open q discussion of the