The New York herald., 1921-08-04
FINANCE AND FISTS
FIGURE AT HEARING
Gov. Harding of Reserve Board
Resents Criticisms Of John
SHELTON Williams.
FAyORITISM IS CHARGED
Ex-C Comptroller Says Board
Countenanced Undue Lend
ings to Banking Groups.

WASHINGTON, Aug. 3.-Criticism OF
Federal Reserve system credit policies,
which was continued to-day before a
Congressional commission by John Skel-
ton Williams, former Comptroller OF the
Currency, aroused resentment on the
part OF the systems two highest off
GERS. Gov. Harding of the Reserve Board
and Gov. Strong of the New York Re-
serve Bank. In one of the frequent
oral interchanges, Gov. Harding charged
across the committee room swinging his
fist, but was halted by struggling asso-
ciates just In front Of his adversary
who remained cool. but was rising for
the threatened encounter.
A few minutes later Mr.. Strong while
reading to the commission a report
which charged Mr.. Williams with false
and misleading statements" was inter-
rupted by the former Comptroller who
shouted: That statement of yours Is
false"
Gov. Strong. however. continued read
ing. and presently referred to Mr.. Will
Jams as being Jealous Of his preroga-
tives."
And that's lie, too" the latter in
terjected
AT this point ! request the committee
to require the Comptroller 10 make oath
whether he has stated the whole truth or
not" Gov. Strong exclaimed.
Chairman Anderson ruled amid the
confusion that 1t was mot feasible to
adopt the policy at this state OF the
game"
Harding Demands Hearing.
Both Federal Reserve officials, with
associates. had sat apparently unmoved
during two days. along with an audience
which numbered many Senators and Rep
resentatives allied with the agricultural
bloc" in Congress while Mr.. Williams
elaborated three general charges He
said first that the board had countc-
nanced undue lendings to New York
banking group during the last two years
for speculative uses while forcing liqui-
dation in Southern and Western agri-
cultural districts. and that it had allowed
extortionate interest charges and gener-
ally failed to lease down. imitation.
Governor Harding to-day rose out OF
the audience and demanded hearing on
personal grounds to deny allegations
concerning 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.. Wiiliams's
criticisms.
To answer letters and memoranda
read by Mr.. Williams and which he said
he had sent to his associates on the Re-
serve Board during 1920 and 1921 pro-
testing their policy and course, Governor
Harding demanded and received permis-
sion to read a single letter of response
which the board made to Mr.. Williams
in 1921.
THE Federal Reserve Board .eels con-
strained to say the letter said, that
your action has demonstrated the
futility Of discussions with you on ques-
tions of honor and fair play"
Mr.. Williams's criticisms of the
boards handling OF credit problems as
contained in the correspondence and
repeated to the Congressional commits
ding's letter as Ignorant, inaccurate
and misleading"
As to the criticism of lending to New
York banks the Harding letter said that
out of "a disordered mass of details
and statements" forwarded by Mr..
1t had been impossible for
the board to understand what action"
he desired taken. The letter said also
that out of eighty meetings of the
board preceding Mr.. williamss retire.
ment from office he had attended eigh-
teen during the entire time. eighteen
during a part of the time, and during
forty-four was absent entirely"
II was charged also that Mr. Williams
had circulated outside OF the board