William G. McAdoo to Woodrow Wilson

I have received from Mr. Herbert Hoover, United States Food Administrator, a request to pay the sum of $10,000,000 to the Food Administration Grain Corporation as an initial payment on the capital stock of that corporation to which he has subscribed on behalf of the United States. This amount represents 100,000 shares of authorized capital. The corporation has been formed under the provisions of the Act of August 10, 1917, and in accordance with the Executive Order of August 14, 1917.

The Executive Order does not state, however, in what manner the Corporation will account for the public funds turned over to it. I enclose a draft of an Executive Order which I recommend that you sign. By this procedure the money would be placed to the credit of the Disbursing Officer of the Corporation upon the requisition of the Corporation and as needed by the Corporation. The funds would be accounted for under laws of the United States and the expenditures would be audited by the Treasury Department.

I am sending a copy of this letter and the suggested Order to Mr. Hoover.

Enclosure.