Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-06-07

whole postwar boom and the sub
sequent price recession. At any rate,
little export financing vas done by the
corporation and, the war being over.
there was no more of the war aid
financing to be done. The business Of
the corporation sagged.
In fact, in May, 1920, the board of d.
rectors of the corporation, of which
Secretary of the Treasury Houston
then was chairman, adopted a resolu-
ton suspending activities. No new
loans were made; the corporations Of
fees merely collected payments on
the loans outstanding.
That summer came the heavy fall in
prices particularly in prices of farm
products. In the autumn an agitation
was started to revive the War Finance
corporation to help the farmerssbecause
people had achieved the habit of think
ing this great government bank could
be turned to almost any purpose. There
were many who opposed the revival,
declaring that it was time the govern
ment got out of business.
After a spirited contest, the corpora
ton was revived by congressional action,
and proceeded to make loans to stimu-
late exports. 1t had been urged that if
exports of farm products could be
stimulated. prices of these goods would
rise and the American farmers would
be relieved.
Then in August, 1921, the corpora
tons organic act again was amended
to permit it to make advances on agri-
cultural products, whether or not they
were for export. The corporation crea-
ted 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 it
corporation would advance money
against it. OF course, not every note
made by a farmer would fit the require
ments 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 corporation. In
! this way a large sum of money has
been advanced to relieve the farmers
during the last 10 months.
Railroad Securities Purchased.
Another use the corporation made of
ITO ihANdo was W loukh II
director general of railroads, securities
Of American railroads which had been
pledged with the director general on
account of additions and betterments
made by theh government during fed
eral control. When it appeared that
the railroads were in dire need of funds
following their return to their owners,
the War Finance corporation arranged
to sell these securities to the public,
thus raising funds to advance to the
! railroads.
A brief summary will show how much
money this great government bank has
advanced to different groups of the Am
erican people: Advances made to May
13 to finance exports have amounted
70 S5O,250,120. OF this sun S33,5T.-
373 has gone to aid cotton exports, and
$500 $40 for grain. Other commodi-
ties exported under this assistance in
clude tobacco. canned fruits, meat
products. condensed milk. textiles, sheet
steel. copper. sugar mill machinery, ag-
ricultural machinery, railroad equip
ment and lumber,
Advances for the relief of agricultur-
al interests from August "a, 1921, when
this activity was authorized, to May
10, the latest date for which figures
nave Deen compiled. aggregate S-5l,-
1873. This financing includes cotton,
grain, livestock. sugar beets, rice,
canned fruits. dried fruits, peanuts. to-
bacco and general agricultural products.
Much of this assistance was advanced
through cooperative farming associa-
tons. Advances made to banking and
financing institutions amounted TO
$3.50. 161 ,914, and hat portion made
through the cooperatives to SOS, .219.
Of al these advances. whether to
banks, cooperatives, or exports. $347,-
6S4, 1873. This financing includes cotton,
cultural industry. and this vast sum
has been lent in a period when farmers
found difficulties in getting bank credit
through other sources. In conse-
quence, the farmers of the country are
strongly opposed TO a curtailment of
the functions of the corporation.