The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-12
RESOLUTION CRITICISED
Senators Say Language
Fails to Instruct Reserve
Board to Act.
AMENDMENTS ASSURED
Elimination of Directions for
Extension of Banking
Credit Sought.
Special Despatch TO TIE New YORK HERALD
New York Herald Bureau,
To- M L Dec IL

specfdI Despdtch to TIE New YORK HERALD.
New York Herald Bureau,
Washington, ID. C., Dec. rs
Debate In the Senate to-day, pro-
longed beyond the period expected, on
the Gronna resolution to revive the war
Finance Corporation and to obtain more
liberal Federal Reserve credits TO agri-
culture and other industries. prevented
a final vote. An informal agreement
was made TO vote at o'clock Monday.
after a heated wrangle brought on by
an accusation by Senator Norris (Neb),
Republican, who drafted the measure,
that an understanding TO vote to-day
had been violated by Senators oppos-
ing It.
Early in the day considerable criti-
clsm was launched against the second
part of the resolution directing the Fed
eral Reserve Board TO adopt more lib
eral credit extensions. Senator Smoot
(Utah). Republican. raised the objection
on the ground that 1t meant nothing
since 1t first directed" the board to ex-
tend credits and then qualified that
mandate by the words Consistent with
provisions of law and the principles OF
sound banking" He commended the lat
ter words gave the board entire discre-
ton, and urged that II anything was
done the resolution should state def
nitely what Congress intended the re-
serve board should do. Otherwise it
left the whole question just where it is
now--in the hands of the board. which
is against further credit extensions.
Senator Smoot announced his inten-
ton to offer an amendment to strike out
that section. The same point was made
by several other Senators. Senator
Thomas (Col), Democrat, taking that
for his text for an extended speech.
'The depression in agriculture and
finance and, in fact, In everything else"
said Senator Thomas, lis one Of the in
evitable results of the war. People
should have foreseen it and prepared for
t. Measures like this simply seek to
make Uncle Sam the goat. It penalties
the thrifty for the sake of the unthrifty."
Senator Thomas at the same time an
nounced that he did not oppose revival
of the War Finance Corporation. The
rest of the debate was carried on by
friends OF the measure, fact emphasized
by Senator Smoot when Senator Norris.
late in the day, suggested bad faith in
Carrying out an alleged understanding
for voting to-day.
II am ready to vote now" said SEN
ator Norris.
$50 am l." chimed in several Senators.
including Thomas, King, Gronna and
others
You will make no progress by criti-
ctsm," said Senator King, who was one
of those asking postponement OF the
vote so that he may discuss the resolu-
ton.
Senator Glass (Va.). Democrat. en-
livened the exchanges by referring 10
yelled criticisms of the Federal Reserve
Board. which he insisted were unjust
and uncalled for
This led Senator Pomerene (Ohio)
Democrat, to say 1T is perfectly clear
to me that the Federal Reserve Board
can handle the business of the Federal
Reserve banks better than can the United
States Senate"
He said he was for the provision TO