The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1925-01-06
WAR FINANCE
EARNS ONLY
INTEREST
Government Is Winding Up
Plunge Into Business With
out Loss or Profit
By WILLIAM HARD.

By WILLIAM h<AtSADs
: Seven hundred million dollars Of
public Governmental money put into
business and every cent sof it--and
more coming back!
That is the medal which Eugene
Meyer, jr.. managing director Of the
United States Wars Finance Cor
poration, is today getting pinned
20 him.
IRIS only trouble is 10 be sure
that he has proved that he has not
made any profit. for the United
States Government in the course OF
his transactions with farmers and
others, who directly or indirectly
have borrowed from the United
States War Finance Corporation tts
500. 600, 900 OF loans.
Profit UnseemIy
1t is thought that it would be
u1seemiy for the United ! States
Government to make q profit" on
loans to citizens.
1t is certain. on the other hand.
that If the United States War FL
nance Corporation should show a
loss" 1t would be attacked as an
other instance OF q Wasteful ana
improyident Governmental bureau.
Mr.. Meyers problem has been to
wind up the spacious and gigantic
life OF the United States War
Finance Corporation without show
ing either profit" or a loss.
This deIicatelk balanced task Mr..
Never seemed tbday on the verge OF
accomplishing when, his little check
for $499, 000 900, on behalf OF the
War Finance Corporation, was
turned in to the United States
Treasury and when the remaining
assets. of the corporation were con-
sidered and analysed.
The corporation had $500, 000, 900
originally subscribed to It by the
United States Government and it
additionally issued $500. 900 ,0Oe OF
bonds.
Who Got Loans.
!. The $780, 900. thus secured to
L in these two ways combined. it
loaned out to different varieties Of
Borrowers roughly and approx.
mately, as follows:
To institutions of various sorts
e1r war time purposes, $500, DOC. 600.
To institutions Of various sorts Tor
foreign export purposes. 800 .OOe. 900.
TO banks and to livestock COM
nanies and to cooperative societies
/. tor agricultural purposes, $780,.
O0C 900.
These were its loans. The ques-
zion was, would they come hack?
That question to date has been an
swered successfully through the fol-
!. The he 500, 900, 600 of bonds-out Of
loans returned-has been paid on
and retired. ,,,a
million dollars out OF the or1ginat
5000 .0O0 900 of stocks subscribed py
The Government has been-oH OF
Inans returned-now finally paid
off and retired.
stock Ia Liability.
TIE CorpoTationss only remaining
liability IL 500, 600 900 of stock.
Against that liability it has some
$50 600 900 of loans still due to 1t
and presently to be collected.
When these loans come back, the
corporation viii be able to pay OIL
ifs remaining $1,O0O.O0 of stock
and it will have earned not
profit but a moderate return
simply on the market value OF the
public money which it has used.
On the other hand 1t certainly
will have shown no loss what
soever
Thus the Governments biggest
plunge of all time into business has
fortunately brought It back to the
shore of solvency with all its
clothes on and few spare cents in
It, pocket.
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