The Hartford republican. (Hartford, Ky.) 18??-1926, 1921-08-05
VOL. XXXIV
RESERVE BOARD Head
GETS AWRY AT CRITIC
Hearing On Federal Credit
Policies Marked BY
Counter Charge.

Washington. Aug. 2.-Criticism
os federal reserve system credit pol
icies which was continued today be-
fore a congressional commission by
John Shelton Williams, former comp
troller of the currency, aroused re-
sentiment on the part Of the system
two highest officers, Governor Hard
ing. of the reserve board, and Cover
nor Strong. of the New York Reserve
Bank. In one of the frequent verbal
interchanges Governor Harding
charged across the committee room
swinging his fist. but was halted by
struggling associates just in front OF
his adversary. who remained cool,
hut was rising for the threatened en-
counter.
A few minutes later Mr.. Strong,
while reading to the commission re-
port which charged Mr.. Williams
with false and misleading state
mnets" was Interrupted by the former
comptroller, who shouted:
THAT statement of yours is false"
Governor Strong. however, contin-
ued reading and presently referred
10 Mr.. Williams as being Jealous of
his prerogatives."
and that's lie too" the latter
injected.
AT this point l request the COM
mittee to require the comptroller to
make oath whether he has stated the
whole truth or not" Governor Strong
exclaimed.
Chairman Anderson ruled, amid
the confusion, that it was mot feast
BILE TO adopt the policy at this stage
of the game"
Demands Hearing.
Both federal reserve officials. with
a number of associates, had sat APP
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.. VIII
liams elaborated three general
charges. He said first that the board
had countenanced undue lendings to
a New York banking group during
the last two years, for speculative
uses, while forcing liquidation In
Southern and Western agricultural
districts, and that 1t had allowed ex-
tortionate interest charges, and gen
orally failed TO lease down" infla'
ton.
Governor Harding today rose out
of the audience and demanded
hearing on personal grounds to deny
allegations concerning himself, as Mr.
Williams had made them, and pres
emily with Governor Strong. produc
ed from the confidential files OF re
serve office correspondence and re
ports to combat Mr.. Williams criti
cisms.
To answer letters and memoran
dums read by Mr.. Williams and which
he said he had sent to his associates
on the reserve board during 1920 ant
1921 protesting their policy ant
course, Governor Harding demanded
and received permission to read sin
gle letter of response which the board
made to Mr.. Williams in 1921.
Criticism Termed Ignorant.
"The Federal Reserve Board feel
constrained to say" the letter said
THAT your action has dem
onstrated the futility of discussion
with you on questions of honor o
fair play"
Mr.. Williams criticisms of tn
boards handling Of credit problem
as contained in the corresponding
and repeated to the congressional
commission were characterized II
Governor Harding's letter as "ignor
ant. inaccurate and misleading
THE object seems to have beel
merely to make a record during you
tenure of office of statments to b
handed to the public later" the let
tr said in part, "as an appeal to pre-
judices and sympathies and not t
reason"
The Harding letter further sal
that MIR. Williams criticisms geneI
ally were trivial, irrelevant or sus
ceptible of no definite constructiv
Interpretation" and added that .
failure to comply with you can nc
be said a failure to challenge you
statements"
As to the criticism of lending
New York banks the Harding lette
said that out of "a disordered mas
of details and statements" forwarde