Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-08-04
LIE is PASSED
AT PROBE INTO
RESERVE BOARD


merely to make q record during
your tenure of office OF statements
to be handed to the public later"
the letter said. "as an appeal to
prejudices and sympathies and not
to reason" 1t further said that
Mr.. Williams criticisms generally
were trivial, irrelevant or suscep-
tible of no definite constructive
Interpretation" and added that "a
failure to comply with you cannot
be said failure to challenge your
statements"
Record of Attendance.
AS to the criticism of lending to
New York banks, the Harding let
ter said that out of "a disordered
mass of details and statements"
forwarded by Mr.. Williams. 1t had
been impossible for the board to
understand what action" he de-
sired taken. The letter said also
that out of eighty meetings Of the
board preceding Mr., Williams re-
tirement from office. he had at
tended eighteen during their entire
time, eighteen during a part of the
time and during forty-four was abb
sent entirely"
1t was charged also that Mr..
Williams had circulated the boards
letters on credit matters and re-
fused to tell the board to what per-
son or persons they had been sent.
The reading of the letter result
ed in a remark from Mr.. Williams
about poison gas" and retorts in
which Governor Harding asserted
his own desire during all OF the
preceding controversy within the
board to settle matters peaceably,
but to fight If necessary.
Governor Strong read extracts
from an official confidential re-
port made to the board by him on
the New York banking system. 1t
referred to Mr.. williams semi
official reports as Ignorant ana
misleading and accused him OF
violations of propriety and dis
loyalty to his associates"
Strong Explains.
One New York bank, which MI
Williams said held $130,000,OOo IN
federal reserve loans, Governor
Strong declared, held also SIZE
100000 in government securities
adding that most Of its loans We're
made to carry purchases during the
war" While it was lending Viz
100000 directly or indirectly to US
own officers, Governor strong said,
IT held $15.t00,000 in Libartv bends
as collateral, and additional Sc
'curities rs well. "A
Mr.. williams charged that 20
per cent interest rates in New YORK
money markets meant the starving
of farming districts.
Had the comptroller under
stood the workings Of the reserve
system" Governor Strong respond.
ed, ''he would have understood
those rates resulted from the con-
slant withdrawal of funds from
New York to send to other sections
of the country"
much of the credit pressure re-
suited from organized movements
from various parts of the country,
Mr.. Strong continued, ito withhold
commodities from their usual mar
kets."
Nine Months Credits.
"a general denial Is ndIuly al
effectual answer to specific charges
and complaints Mr.. Williams SAID
when his turn came again and later
he expressed the opinion that the
New York bank, dealing with re-
serve funds, passed money out
with prodigality" during perioda
when borrowers elsewhere were
being restricted. He concluded bis
two days discussion with obseTVa-
lions that there never had peen
the currency initiation in this coun,,
trv some people believed" and
there was "present improvement
from the lowering of interest
rates" and that farmers are en-
titled to get through the reserve
system nine months credits on
warehouse certificates for their
produce, though dealers and prof.
teers should be restricted