The Birmingham age-herald., 1921-07-20
GOVERNOR HARDING DEFENDS BOARD IN FARM AID POLICY
Gives Official Statistics to Show Advances on Long Term Loans Doubled
 During Last Year
By Associated Press

w dSIill5 bOH, Juiy i1.--l1l NlEOL ous defense of the federal reserve boards policy toward agricultural in- terests, Governor Harding before the Senate banking committe today, gavC stead of curtailing farm loans, as charged by critics, the federal re- serve systems advances on long term loans virtually doubled during the last year.
 T deny the charges, so frequently made,P said Governor Harding that the board has sdiscriminated against agriculture. On the contrary any discrimination has been in it's favor. All criticism Is not supported by the facts"
 Governor Harding appeared before the committe to oppose a bill by Senator Kenyon, republican, Iowa, proposing enlargement of the board by appointmer Of an additional mem Der representative of agriculture.
 This, Governor Harding said, the board was decidedly" of the opinion'' would be "unwise.' subversive and class legislation"
 Where would you stop?" Govern or Harding asked. Why not give the motor. oil and other interests di- rect epresentation?"
 Increase General
 Contending that the boards policies had aided rather than hurt agricul- tural interests. Governor Harding said that liquidation and depression had been most severe among manu- featuring interests. Loans on agri- tural paper during the last year, he said, showed decrease only in the Boston, New York and Chicago dis trictst the country as a whole, he sald, showed an increase in agricul- tural ioans.
 Referring directly to the cotton loan situation where criticism had eentered, Governor Harding said he presented statistics for the Atlanta district showing that loans had in- creased from $60S,000 on January l. ls@u, to 70, 412000 on Jnue 30, 1920. This, Governor Harding said, was when cotton was selling around 40 cents pound. The total loans in suosequent months given by Governor Harding were; July 1920. s10,927 ,000, August $15, 100000; October, sl7ooo.- poV' November sl7.s44,00o, and December, 1920. $15.497,00O.
 Indignant at Charges
 Yet we are charged with all sorts or coercion against cotton farmers sald Governor Harding indignantly.
 We are charged with expressing the farmer and forcing the sale of cot ton'
 senator Glass observed that 1t would have been good thing if the farmers had been forced to sell at 40 cents as now they can't get Is cents"
 Governor Harding declared that men now criticizing the board had been foremost in advising farmers to hold their cotton when it was around 40 cents.
 Governor Harding emphasized that the law gave the board no power to issue or reduce bank notes; that this power lay with the banks them seleves.
 A resolution Ito direct" President to remove all members of the board, and appoint new members, was introduced today by senator Watson, democrat. Georgia. It pre- scribed that the new members be not mere assiduous servitors of the Morgan, steel. packers" and other interests"
 Preambles of the resolution charged the board with having, through Its unlawful contraction of money and other policies with hav- ing inflicted irreparable loss of SS1,- 100000 upon the hepless American people, and with having loaned the larger part of the banks funds to "monopolistic profiteers"
 That the board had been 'insolent- ly needless of the cries of it's vic- tims," also was asserted by the reso- l lution, Senator Watson announced | that he. would debate the resolution 1 soon.