The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-14
SENATE FOR WAR
FINANCE BOARD
Orders It's Rehabilitation for
Peace Purposes After Long
Caustic Debate.
DEFENDS RESERVE BOARD
Bill Expresses Opinion for
More Liberal Credits at
Reasonable Rates.
DEFENDS RESERVE BOARD
Despatch 10 THE NEW YORK HERALD.
New York Herald Bureau
Washington, ID. C., Dec. l3.

New York Herald Bureau,
Washington, ID. C., Dec. I3.
Legislation directing the Secretary
of the Treasury to revive the War
Finance Corporation as a relief to
agriculture and other industries now
suffering from nationwide depression
was approved in the Senate to-day by
an overwhelming majority without a
record vote.
A mandatory provision in Section
of the resolution which directed the
Federal Reserve Board TO grant lib
eral credit extensions TO agricultural
and other interests was eliminated by
a vote of AZ TO IS, because OF violent
opposition from leaders in both parties.
The sentiment which developed during
"A long debate was almost a unit for
rehabilitation of the War Finance Cor
poration. but the proposal that orders
should be given 10 the Federal Reserve
Board by Congress as TO its banking
policy aroused not only opposition but
great animosity on the part of many
Senators from various sections without
regard TO party lines. and most of the.
discussion ranged around that subject.
Senators Defend Reserve Board.
Senator Glass Cva). Democrat was
particularly caustic in his criticism OF
those who blamed the Federal Reserve
Board. and he was Joined by Senators
Mclean Comm. Republican. chairman
OF the Banking and Currency Commit
tee. Hitchcock (Neb), Democrat. MEM
Der Of the committee; Edge ~. J),
Republican: King (Utah, Democrat
Pomerene (Ohio). Democrat, and others.
Some OF Senator Edges criticism was
directed at the War Finance Corpora
ton provision and this was answered
by Senator Calder (N. ". who an
nounced he spoke for the people of New
York, which contained the greatest
financial centre Of the country He had
no doubt. he said. that the activities of
the corporation would be Of vast benefit
to the whole country.
81 am sure the great body OF business
men OF America" he added will be
glad to see this corporation revived
and II will bring about benefits that
will react TO the good Of every citizen OF
the United states"
Senator Edge insisted that the legisla
tion was a move to increase prices and
create a false market.
Let us take our medicine hc said
get through with this depression
caused by the war and build on
more solid foundation. II we artflc-
tally keep up prices. and that is what
this means. we are simply putting OH
the evil day and In the end must pear
the inevitable loss
Moved bv criticisms against Section
2 senator Norris CNeb). Republican.
offered an amendment which elm
mated the mandatory provision and
merely expressed the opinion Of Con-
gross" that more liberal credits should
he extended al reasonable rates OF
interest" and this was agreed TO.
senator Glass. who before had made
several interruptions In defense OF the
Federal Reserve Board strongly op-
rosed Section Of the resolution and
said IL the board had not put on the
brakes" there would have been per
foct "saturnalia Of credit expansion
that would have undermined the sound
ness OF tho whole banking system
uroL.s Put on hut None Too Enrly
MY only criticism Of the Federal Re
serve Board Is that It did not begin to
put stop to credit expansion sooner.
said Senator Glass. we applied the
brakes none too early. II Congress wants
TO wreck the Federal Reserve system
and make 1t sy-tem for investors and
spcculators in commodities then Con-
cross should have the courage 20 take
such action in the open. But " Con-
rrcss wants to maintain IL as reserve
system responsible 10 the commercial
needs OF the country. then Congress
should recognize nat fact There has
been no improper cUrtailmcnt OF cred
it's"
senator Norris denied any intent TO
criticisc tho board and said the rcso-
luton was offered IN good faith.
"This situation affects consumers a.
well rs producers" ne said. "and N
these consumers now Join IN preventing
relief TO the producing interests. they
may expect that next year the producer
himself will ga on strike
would YOU bc willing 10 have this
legislation applied 90 other industries
asked Senator pomcrcue
certainly" replied Mr. Norris. "and
1 have so stated before
senator Pomcrcnc said his position
was that n the aid was 20 be extended
to the citizens Of the country at this
time that such aid should he at the
service not only Of the farmers but
- 49,. kv.rwhau Of ipJuufVy