Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1921-08-04

rupted by the former comptroll
THAT statement of yours is false"
Governor Strong. however, continued
reading. and presently referred to Mr..
| Williams as being Jealous of his pre-
negatives"
| And that's he, too" the latter
| interjected.
AT this point I request the COM
mlttee to require the comptroller to
! make oath. whether he has stated the
| whole truth Or not Governor Strong
exclaimed
Chairman Anderson ruled amid the
conufsion that it was mot feasible to
adopt the policy at this stage of the
game"
Senators Hear Charges.
Both federal reserve officials, with
number of associates. had sat ap-
parently unmoved, during two days,
along with an audience which num-
bered many senators and representa-
tIves allied with the agricultural bloc"
IN congress, while Mr.. Williams elab-
Grated three general charges. He said
first that the board had countenanced
undue lendings to a New York bank
ing group during the last two years
for speculative uses, while forcing
liquidation in southern and western ag-
ricultural districts and that it had al
lowed extortionate interest charges,
and generally failed to lease down"
initiation.
Governor Harding Wednesday rose.
demanding hearing on personal
grounds, to deny allegations concern
ing himself as Mr.. Williams had made
them, and presently with Governor
Strong. produced from the confidential
files of reserve offices correspondence
and reports to combat Mr.. Williams
criticisms. Governor Harding demand
ed and received permission to read n
single letter of response which the
board made to Mr.. Williams in 1921.
The federal reserve board feels
constrained to say the letter said,
that your action has demonstrated the
futility of discussing with you on the
questions of honor or fair play
"Mr. Williams criticisms of the
boards handling of credit problems and
contained in the correspondence and
repeated to the congressional commits
sion were characterized in Governor
Harding's letter as Ignorant, inaccur-
ate and misleading
Failed to Attend Meetings.
AS to the criticism of lending to the
New York banks. the Harding letter
said that out of ''disordered mass of |
details and statements forwarded by |
Mr.. Williams it had been impossible |
for the board to understand what ac- |
ton he desired taken. The letter |
said also that out of eighty meetings !
of the board preceding Mr.. Williams |
retirement from office he had attend |
ed Is during their entire time. Is dur
ing a part of the time, and during A |
vas absent entixs ly." |
The reading of the letter resulted in
a remark from Mr.. Williams about
poison gas" and retorts in which
Governor Harding asserted his own
desire during all of the preceding con-
troversies within the board to settle
matters peaceably, but to fight if neces
sary.
Governor Strong read extracts from
m official confidential report made to
the board by him on the Few York
banking system. 1t referred to Mr.
Williams semi-official reports as zig
norant and misleading" and accused
him of violations of propriety and dis
loyalty to his associates
One New York bank. which Mr.. Will
ams said held $130,0OO,OOO in federal
reserve loans. Governor Strong declar-
ID, held also $112,OOO,OOO in govern
nent securities, adding that most of
is loans were made to carry purchases
Turing the war" While it was lending
directly or indirectly to it's
,wn officers Governor Strong said. it
ield $15,0O0,00O in liberty bonds as
and additional securities as
we'll.
Mr.. Williams charged that 80 per
'ent interest rates in New York honey
markets meant the starving of farm
ng districts. !
Did Not Understand.
Had the comptroller understood the
of the reserve SYSTEM" Gov
rnor Strong responded. ''he would ;
those rates resulted from
he constant withdrawal of funds from
tew York to send to other sections of
he country"
"a general denial is hardly an effec-
ual answer to specific charges and
Mr. Williams said whep
is turn came again. and later - ex-
ressed the opinion that the New York
ank, dealing with reserve funds, pass {
d money out with prodigality" during !
eriods when borrowers elsewhere were Z
eing restricted. He concludes his two Z
ay discussion with observations that /
there never bad been the currency /
1flation in this country some people '
elevod." that there vas NnrAaenk fnn-al =