Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-08-06
Governor Replying to VIII
IiamS, Says Rumor Prob
ably Grew Out of JocuIar
Remark He Made

The charge of John SWelton Will
liams, formerly comptroller of the
currency, that Governor w. P. G..
Harding, of the federal reserve
board, informally advoted the aboli-
ton or removal of the federal reserve
bank of Atlanta, has been pointedly
denied by Governor Harding, in let
ter to Governor M. B. Wellborn, of
the local institution.
Mr.. Williams charge was made in
speech that he delivered at Au-
gusta on July IA, last, and contain
ed the further statement that Cover
nor Harding also favored the dis
establishment or removal of the fed
eral reserve bank at Dallas.
Governor Harding's letter to Mr..
Wellborn, which has been made pub
lie with the consent of its author,
follows:
Dear Governor Wellborn: 7 have
your letter of July 80 relative to
Shelton Williams. I had already
noticed what Mr.. Williams had to
say in his Augusta speech regard
ing my attitude toward the Atlanta
bank and desire to say that what
he said either demonstrated that
ne mas I'LL 6IlIlI6 1dCh VI liulllOI VI
else that he made deliberate and
willful Misrepresentation with a
view of making me unpopular in
Georgia.
HOW Eumor Started
1.-THE only foundation for what
he had to say is this: Some time
ago, following the injunction which
was served on you, the board re-
ceived a number of abusive letters
from officers and directors of some
of your Georgia state banks. Il re-
marked at a board meeting in jocu-
lar way that if the Georgia banks
felt that the federal reserve bank
whether we ought to continue to in
flict it upon them and it might be
well to ask congress to let us move
the bank to Chattanooga. This is
all there is to it. and no other men,
Der of the board misunderstood me.
eff you need any concrete evil
dence of my friendly interest n
the federal reserve bank of Atlanta,
would refer you to my co-opera-
ton with you in all your building
matters and particularly to what
did recently in smoothing the way
for the acquisition of the Austell
property and the enlargement of
your bank building.
yours very truly,
(Signed) ''W. P. G. HARDING.
washington, August 1, 1921"
| The statement to which the fore
going letter Immediately refers, as
it appears in the manuscript of Mr..
Williams Augusta speech, follows:
williams Charges
"In the latter part of 1914. while
the European war was raging, and
world finances in a delicate cOndi-
ton, three or four members of the
board made a determined effort to
secure the closing up of four Of the
twelve Federal Reserve banks, their
efforts to do SO being finally de-
| feated as a result of Secretary Nc
Adoo's appeal to President Wilson
and the effective action Of the at
| torney general.
| L think it will surprise you to
know that again in the early part of
| this year the governor of the federal
reserve board, who halls from your
adjoining state, proposed at federal
reserXe board meeting, and informal
| ly advocated, the disestablishment or
removal of the only two federal re-
serve banks located south of the
states of Virginia and Missouri:
namely, the Federal Reserve Bank of
Bank of Dallas. I cannot conceive
what his purposes were. but in let
| ter which [ had occasion to address
him under date of March &c, 1921,
| said to him very plainly, etc"
| Governor Harding's letter to Gov
ernor Wellborn denying Mr.. Will
| liamS' Augusta Differences to the dis
establishment or removal of the re-
serve banks at Atlanta and Dallas
is a side-Iight on bitter controversy
in which the distinguished bankers
have been engaged for some time,
and which is now being aired be-
fore a congressional investigating
committee.
AS comptroller of the currency.
Mr.. Williams, who is a banker of
Richmond, Va, was an eX-officio
member of the FEDERAL reserve board,
of which Governor Harding is the
head. Since Mr.. Williams retire
ment from office he has made sew
eral attacks upon the reserve board
and the methods that have been fol-
lowed by it in directing the policy
Of the federal reserve banking sys-
tenn