The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-08-04
WILLIAMS DECLARES
THAT STATEMENT OF
NR. STRONG IS A lie
Governor Strong Had Referred
to Him as Being Jealous of
His PerOgatives
WANTED COMPTROLLER
PLACED UNDER OATH
Chairman Anderson Ruled That
It Was Not Feasible to
Adopt Such a Policy
tsx Ths AasoeIatsd er..s.,

(By The Associated Drass.l
WASHINGTON, Aug 3.-Criticism oi
ne federal reserve system credit poll
les which was continued today before
congressional commission by John Skel-
on Williams, former comptroller Of the
irrency, aroused resentment on the part
II the systems highest officers. Governor
Tarding sof the reserve board. and Cow
trnor Strong, of the New York reserve
lank.
In one of the frequent verbal inter-
changes Governor Harding charged across
he committee room, swinging his fist,
mt was halted by associates just in front
II his adversary, who remained cool, but
vas rising for the threatened encounter.
A few minutes later. MIR. Strong, while
eading to the commission report which
harged Mr.. Williams with false and
Misleading statements was interrupted
tin the former comptroller who shouted:
That statement of yours Is false"
Governor Strong, however, continued
eadlng, and presently referred 10 Mr..
yiiliams as being jealous Of his preroga-
ives"
And that's a lie. too the latter inter-
ected
AT this point. / request the committee
o require the comptroller to make oath.
neither he has stated the whole truth
+ not" Governor Strong exclaimed
Chairman Anderson ruled amid the
onfusion that It was not feasible to
dopt the policy at this stage Of the
anne"
Both federal reserve officials, with a
lumber OF associates, had sat apparently
nmoved during two days, along with an
udIence which numbered many senator's
nd representatives aliI1d VIII the er'Assssis
! nitural bloc in congress, while Mr..
Villains elaborated three general charges.
ia said first that the board had coun-
snanced undue lendings TO a New York
anking group during the last two years
or speculative uses. while forcing hqui-
alton in southern and western agricul-
uraI districts and that IL had allowed
xtortionate interest charges and general
failed to lease down. initiation.
Governor Harding today rose out Of
ne audience and demanded a hearing on
3ersonal grounds, 10 deny allegations con-
erning himself as Mr.. Williams had
nade them. and presently with Governor
trong, produced from the confidential
lies Of reserve offices correspondence and
eports TO combat Mr.. Williams criti-
isms.
To answer letters and memoranda read
~ Mr. Williams and which he said he
sad sent to his associates on the reserve
oard during 1890 and 1921, protesting
heir policy and course. Governor Hard
~ demanded and received permission to
cad a single letter of response which the
oard made to Mr.. Williams in 1921.
"The federal reserve boar1 feels con-
trained to say the letter said. that
our action has demonstrated the utility
xyf.t tAYr Df
lonor Of fair play"
Mr.. Williams criticisms of the board $
,andling OF credit problems as contained
4 the correspondence and repeated 10 the
confessional committee were character
red In Governor Harding's letter as zig
GRANT. inaccurate and mislead'ng.
"The object seems TO have | cen Nero
Z to make record during your tenure
r office OF statements to be banded to
he public later" the letter said in part.
AS an appeal to prejudice and sympa-
HES and not to reason The Harding
etter further said that the Williams
riticisms generally. were trivial ir-
svalent or subseptible Of constructive
1erpretation" and added that "a fall
re- ~ comply with you cannot be said a
allure to challenge your statements"
As 10 the criticism OF lending to New
york banks the Harding letter said that
tIi of go tiisordered mass of details and
tatementa' forwarded hy Mr.. Williams
had been 'impossible for the board to
nderstand what action he desired taken.
rho letter also said that out of eighty
aeetinrs Of the board preceding Mr..
viuiams' retirement from office, che had
ttended eighteen during the entire time,
ighteeen during a part Of the time. and
gnrinc forty-four was absent entirely"
II was charged also that Mr.. Williams
ad "circulated outside of the board con-
dental letters upon credit matters. and
,efused TO tell the board to what person
!. persons they had been sent.
,.he reading OF the letter resulted in a
smark from Mr.. williams about "noison
as, and retorts in which Governor Hard
nr asserted his own desire during all OF
he preceding controversy within the
soard 10 settle matters peaceahly but to
fsht n necessary.
Governor Strong read extracts from an
,fficlai confidential renort made TO the
board by him on the New York banking
vstem. II referred to Mr. Williams
senii-officiaI reports as Ignorant and
Misleading" and accused him Of viola
ions OF propriety and disloyalty to his
associates"
One Naw York hank, which Mr.. Will
ans said held 1890 200. o0o in federal re-
erve loans. Governor Strong declared
eid also $4,000 600 in Eovernmnet Sc
surities. adding that ''rnost Of its loans
we're made to carry purchases during the
(continued or Page Two)