The Birmingham age-herald., 1921-08-03
N|LlL''.'MS SCORES
 RESERVE BOARD FOR "FAVOR|T|SM'
IeclareS There Is Abundant Ground for Complaints of Discrimination By the
 Farmers Generally
By Associated Preas

by ABeOCldlcu GrcSt
 Washington, August 2.-Policies of he federal reserve board during the sst IS monts or more were attacked pday before joint Congressional Dmmission by John Skelton Williams, ormer comptroller of the currency, ho charged that the board had dis layed undue favoritism Tn lending D New York banking groups, while outhern and western borrowers were nduly curtailsd. There was "abun- ant ground for complaints of dis riminati tion by farmers generally" he dded.
 The congressional commissio was ppointed to inquire into the agricuI- ure situation and~summoned Mir. Will ams in connection with it's investi- ration into credit facilities for farm ITS.
 Many of MT. Williams assertions were challenged in cross examination py Representative ogden Mills, repub- ican, New York, a commi ssion mem ,er, who was armed with volumes Of statistics. The clashes required com mission rulings time and again. Dur ng the examination, Governor Hard ng of the reserve board, and several other of it's officials were present. Mir. Williams statement had not been completed after six hours sessions.
 Southern Banks Pressed
 In December, 1919, Mir. Williams said, one New York state banking institution which he described as Known for speculative activities" borrowed s1sO,00O,O00 through the New York federal reserve bank. No law was broken, he said, but several other New York banks fin hard and | in good times" were allowed to hold out large amounts of reserve loans, while western and southern borrow CTS were being pressed to reduce loans. MT Williams read memoranda and letters irterchanged between himself and Governor Harding over the situation, or which he complained. The board, adopting the policy of forcing up interest rates. he said. was indirectly responsible for 50 per cent interest charges prevailing on the New York money markets ana this drained off funds from the farming sections" Mir. Mills met him at this stage with a series of status tics tending to show that Richmond, Minneapolis, Dallas, Atlanta, Kansas f,ity and St Louis banks were bor- rowing much greater sums propor- tionately than New York institutions
 Told Where to Get It
 "You've seen the figures havnt you?" Mr. Mills demanded during in- terchanges in which MT. Williams told him to Ego to the reserve board for the statements.
 One borrower of call money had to pay 200 per cent to get $l,OVo,- GOO loan, Mir Williams said, although Mir. Mills insisted he had misinter- preted the arrangement and the charge was 25 per cent. At the same time. he added, western institutions -discounting were "obliged to put up collateral of 100 and 200 per cent in excess of the amounts they got.
 .Give us one example of that, Chairman Anderson instructed the witness, but after an interchange MT. Williams repeated response, Se' it from the reserve board was ac- cepted as final Mir. Mills Likewise went into rules established by tnss board for credit control and the crea- tion by it of basis line" which de- termined a banks borrowing limit Governor Harding will follow MT :. Williams probably tomorrow.