The Birmingham age-herald., 1920-12-04
CONGRESSMEN AND
 HARDING CLASH IN
 JOINT CONFERENCE
Declaring He Has Been Target for All Kinds of Abuse, Re- serve Bank Chief Asks If
 He Is on Trial
By Associated Press

By Associated Press
 Washington. December s.-The con- gressional joint committee hearing of the agricultural situation developed to- day into dispute at times quite heated between Governor Harding of the fed- eral reserve board and members Of Congress.
 "Mr. Chairman, what is the purpose of this hearingT Governor Harding finally demanded, while he questioned Representative Byrnes. democrat, of South Carolina. 'Ts the federal re- serve board on trial: am I on trial herer' he continued, declaring he had been target for ''all kinds of abuse"
 Representative Byrnes said he meant no reflection on Governor Harding. !
 Circulars issued by the regional re- serve bank of Richmond Va, to mem Der banks, and which MT. Byrnes was attempting to show had resulted in rigid restriction of farmers credits were under discussion. Governor Hard ing said such circulars were not sub mitted to the board until printed, when they were looked over and attention of the issuing regional banks called to anything the board deemed unwise
 The board. he added, was not cen tra1 bank
 At one point Governor Harding told Representative Byrnes he ought to- read the federal reserve act and try to understand it." Mir Byrnes replied that he did understand the act, as he had helped frame it.
 TO ISSUE OWN STATEMENTS
 Senator-elect Heflin of Alabama asked Governor Harding if the law makers could issue a statement to the public as understanding his testimony to be that the reserve board was fa- vorable to banks extending all the credit possible to farmers.
 "The federal reserve board prefers to issue its own statemSts," Governor Harding replied.
 Approving efforts of the Richmond bank to restrict loans for non- essential purposes in 1919, Governor Harding said:
 q know some banks in South Caro- lima had been carrying large loans on cotton, some since 1917 in the face of an active market"
 Holding such cotton then, he added, on reserve bank funds. was plainly speculating."
 Governor Harding declared farmers need have no fear that the banks would not do their part and carry over loans on staple crops for which there is no market, provided the farmers would make a fair statement of their condi- ton to the bankers He cited figures which, he@said. showed there had been no restrlct1on on re~dlScOunts or aSrl- cultural paper.
 OPPOSES REVIVAL Secretary Houston, who preceded Governor Harding. strongly opposed projects to revive the war finance cor poration for the purpose of financing sales abroad of surplus farm products. Present price declines were due to re- adjustments following the war, he said, and he saw no solution for the prob 1&I- had devoted more thought to 1t than to any other subject for the last two months. In the course of his testimony, Gov ernor Harding said diversion of the $70,000,000 profits of the federal re- serve board for loans to cattle growers would be more effective than if ap- piled to agriculture generally. HeShad been asked as to his opinion on the proposal of Senator Hitchcock for em- ployment of these funds for relief The situation of the cattle growers, Governor Harding said, stood by itself and demanded relief. The suggestion of Senator Hitchcock, he continued. was outside the province of the board and matter with which 1t was not concerned. Answering the charge of profiteer- ing on the part of the reserve banks. Governor Harding said they had earned 6.96 per cent on their capital stock of Sl0O,OOO,000 and the reserve balances of banks amounts to $1,S00, GOO, 900. Doubt that exports could be increase unless some way was found for in creasing Europe's buying power and ability to furnish requisite securities was expressed by Secretary Houston He did not see, he added. how much reiief could be expressed at this time1 in that way
 He had no doubt, Mir Houston said mat the war Finance corpora tion would function" should Congress recraato it, but he added:
 T believe it would be against the public interest,"
 The secretary said he believed tha country was in for period of nrice recession and that nothing more fate ful could happen than that this nation embark on unsound fiscal policy in banking in seeking relief for the growers" RELIEF MEASURES DRAFTED 4 WasnlnSton, December 1.-Two meas ures looking to the relief of farm.rn have been drafted by Representative Dickinson. republican, of Iowa. who an- nounced today that they would be or- fered immediately after Congress con- venes on Monday. One is bill impos ing tax of 10 per cent on the total values Of all contracts for the sale ot grain when delivery is not made within 30 days, and the other is a resolutioo authorizing the appointment of a special committee to investigate grain, live stocs and cotton prices and to recommend leg isiation designed to remedy present con- ditions.