The Birmingham age-herald., 1921-08-07
By HUGH W. R0BERTS z Washington Bureau The Age Herald
 800 Davidson BuiIdIuw

Washington, August 6.-(Special. ] Some time ago John Skelton Williams, erstwhile comptroller of the cur rency. delivered speech in Au- gusta. Ga. in. which he severely crit icised the federal reserve board, and its governor. W. P. G. Harding
 This week as a witness before Che joint congressional commission mak- ing study of the ills of agriculture, MT. Williams read letter which he had addressed to Governor Harding and which contained not only the gist of the Augusta speech, but much of the alleged information on which various southern senator's had ruth lessly proceeded against the board and it's governor.
 Among the charges in the Williams letter was that the board had dis criminated against southern banks in favor of Wall street, and by so do-
 ing had contributed to the specula . tive opportunities of Wall street. There was a declaration also that Governor Harding had promised to put into MT, Williams hands the minutes of certain board meetings, which alleged promise he had iS- nored. The letter also contained the allegation that a member of the board, reference having been made, lit was thought, to Governor Hard ling, had expressed the sentiment that it was better to be unanimous than right"
 M Harding's Reply
 .l The case of Williams against itfe board was apparently based on that !. letter. The case of the federal re- serve board, likewise, is apparently based on tho reply of Governor Hard ing. His reply follows.
 "Mr. Johnu Skelton Williams, care ' Richmond Trust Company. II Richmond, Va.
 sir: I acknowledge receipt of your letter of March 26, 1921.
 .'I not that you have taken the precautfon to forward to each board member, including the Secretary or the Treasury and the-e eComptroller' of the Currency, copies of this com munjcation.' Because of the inter . ence. which is clear, and because of the terms in which your letter IS couched. the other members of the board have requested me to adviss vou that they must decline even to Acknowledge the communlcaoloh which you have addressed to them individually.
 AS the chief active executive Of fioer of the federal reserve board, I acknowledge your letter addressed to me as governor only because of the necessity of placing a flat con- tradiction of it's misstatements ana half truths upon a record composcu largely of letters with respect to which you have reserved complste freedom of action,' and about Wnich YOU might use your discretion as to whether or not (you) should at any time give publicity
 You charge that the statements and arguments in your letter of Jam uary IT, 1921, are still unanswered and that the serious complaints Nn vour various letters) touching board nolicies and reserve bank supervl- sion and management never have been refuted or explained away
 by the board either orally or in writing and stand essentially un- challenged.'
 nIt seems from review of ths real facts that the gravamen Of your complaint If it may be digni- fled as a complaint. is not, as you state. that the federal reserve board has in the past wilfully failed to answer your 'statements and argu- ments or that it has failed in It's public duty to give due weight to matters of public interest. whether proposed by you or any other per son, whether in public or private life. but rather that the other members of the board, in the exercise of thesr best judgment, have not agreed with your arguments or opinions nor voted their approval of motions mace by you embodying these opinions.
 No Definite Programme
 Tn other words. your letters of Oc- tober IS, 1920; Decembre 2S. 1920; January 17, 1921. February 1s. 1921. and February 26, 1921. were long and confused expressions of your views of various subjects. They con- taned no definite programme and. while charging the board with cer- tain responsibilities, made no spe- cific recommendations except as noted herein. Apparently those let ters were intended not as serious | attempt to persuade the federal re- serve board of the merit of the views \ they expressed. or to procure any formal action, but as means of making a record during the waning days of your tenure of office Of ig- norant, inaccurate or miSleading statements which you might in your discretion at some time hand to the public with purely sentimental and fictitious appeal to their sympa- thies and false hopes--not to their reason or better judgment. Your present letter of March 26 tends to corroborate these conclusions since It Is ingeniously drafted, not at fair. prejudiced exposition even Of the record as both you and the federal reserve board know it, but as q biased presentation of facts and fam cies which fully Ignore the actual disposition which has been made or the issues under consideration.
 Tt is solely to anticipate any mis- understanding that might result from your efforts that the federal reserve board has instructed me to digniiy vour letter by a reply. Certainly you yourself must be fully aware | that 1t is not true that tho con-