Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-08-05
RESERVE BOARD HEAD
CALLS FOR OPTIMISM
Declares System SAW Financial
Troubles Coming and Provided
Against Them.
CONDITIONS ARE IMPROVING
Governor Harding, Before Congress
Ni"hai Commission, Denies With
lrawai of Farm Crcdits-Atti-
iudc of Board misunderstood
NV Asso rrc.. !

MA"iilNiTON, Aug. t--'redi, p,l-
icies "f the Fcrcral rcserv. sp.,.m
continued under examination Of Il
congressional commission today in 4
continuously stormy atmosphere.
Win Governor Harding. of the re-
''rEt board az Tho sole witness
'Th. Federal Reserve Board did,,
create this financial dcpr.ssIo,, " ,;,,,.
'rnor Harding exclaimed toward ,,.
eNn Of IN. day Il, saw /; coming
"h" got ready To protect things an!
~ OBJ" ought to hc grateful! il ala 50.
~" all "" need !s cessation Of p.s
'miSm which inarkS bad times as
foolish optimism marks good times
We al know now .vcrypody was 20
,h% 'i"zy IN I'll" boom during tn.
Situation WIN worL our.
'"ls situation is going to work
r"'. 'htFts no comparison between
iis condition Of "a year ago and con-
i"!iI.hS today Take cotton. win :,
lev E!cId. aud exports picking nm
'ah h"H everywhere are fully justified
IA carrying loans.
Nh we've got To do is TO re, ont
'i everlasting pcs.mism. and uuft
saying everything is going to INC
dogs. Why. a man has TO pu, ny, =
E'od cheerful fac" If hc wants crcdi,
You can; talk 10 the Dankcr like
YOU 40 TO the tan assessor"
previously sharp discussion had
taken place ia which Representative,
Funk. R.publIA.n. Illinois. K.nrcs.n.
iativ. mills. Republican. New York.
and Iai~ Governor Harding par,ici-
p..tcd.
IN ke"niy disappointed" Repre-
sentative Funk sad, because the re-
s'TN" system has been CHALLENGED
complained Of. criticized and charg ed
on one ground. tha; i, has discrimi.
mated against agriculture. And we've
not heard one word from ,his viii
7lusS."
Eniitlrd To Detailed Kr>pousc.
Representative Mills lcdprd TO the
fray. asserting tha, the commission
hah allowed John shelton Williams.
former Comptroller oC the Currency.
during two days to make charge ar
Ter charge aSains; the reserve board
anu that Governor Harding was ON
titicd 10 common Justice" in the
privilege of Il detailed response. MIR.
funH told Mr.. Mills 10 handle your
affairs and I'll handle mine while
Chairman Anderson rulc, thar The
governor vas within his rights"
Has the reserve board called in
farm credits" MIR. Funk demanded
later.
NO. sir; /, never has" Governor
! Harding rctOrtcd.
How about the circulars OF the
| SAN Francisco Reserve Bank" Mr.
! Funk continued. concerning the price
| Of wheat in 1897"
| Il \-novcr heard Of that before. -
Governor Harding said. Did it cause
break in wheat priccs?"
1T had some effect" Mr.. Funk re-
! spondcd
! Does Not Regulate Prices.
The board has cautioned reserve
banks not To issue circulars" Cover
nor Harding continued. ITS the jot
| OF a banker to look TO the value of
his collateral. but TO do il in Il quiet
| way. Ii Is not the function OF the
! reserve system TO regulate prices IN
! or down, hut 10 maintain credit"
! In general. MIR Harding said "the
attitude Of the reserve board toward
! agriculture has been greatly mis-