May 15, 1951
I HAVE today approved S. 998, "To facilitate the financing of the defense contracts by banks and other financing institutions, to amend the Assignment of Claims Act of 1940, and for other purposes."
I have signed this bill because it is important to encourage private financial institutions to make loans for defense production. It is particularly important that small business be given this kind of financial aid in order to increase its participation in the defense program as promptly as possible.
This bill will facilitate the financing of defense contracts, but there is reason to believe that the provisions relating to tax claims and social security contributions provide a broader basis for exemptions than is necessary or sound. It may well be that interests of the United States with respect to taxes and those of persons covered by the Social Security Act with respect to contributions withheld from their pay are subordinated unnecessarily to the interests of private lending institutions.
I do not believe that it was the intent of Congress to bring about such a result or that the complete exemptions which may be mandatory under the bill are needed to accomplish its central purpose. Therefore, I am asking the Secretary of the Treasury to review the effects of this legislation most carefully, and if he finds it necessary, to present to the Congress appropriate recommendations for its amendment.
NOTE: As enacted, S. 998 is Public Law 30, 82d Congress (65 Stat. 41).
I HAVE today approved S. 998, "To facilitate the financing of the defense contracts by banks and other financing institutions, to amend the Assignment of Claims Act of 1940, and for other purposes."
I have signed this bill because it is important to encourage private financial institutions to make loans for defense production. It is particularly important that small business be given this kind of financial aid in order to increase its participation in the defense program as promptly as possible.
This bill will facilitate the financing of defense contracts, but there is reason to believe that the provisions relating to tax claims and social security contributions provide a broader basis for exemptions than is necessary or sound. It may well be that interests of the United States with respect to taxes and those of persons covered by the Social Security Act with respect to contributions withheld from their pay are subordinated unnecessarily to the interests of private lending institutions.
I do not believe that it was the intent of Congress to bring about such a result or that the complete exemptions which may be mandatory under the bill are needed to accomplish its central purpose. Therefore, I am asking the Secretary of the Treasury to review the effects of this legislation most carefully, and if he finds it necessary, to present to the Congress appropriate recommendations for its amendment.
NOTE: As enacted, S. 998 is Public Law 30, 82d Congress (65 Stat. 41).