Norwich bulletin., 1921-08-04
Defend Policies Of
 Reserve Credits
Critisism of John Shelton Will
 Hams Arouses Ire of Gov.
 Harding and Gov. Strong.

Washington, Aug. 3.-criticism of fed eral reserve system credit policies which was continued today before a congress slonal commission by John SkeIton will lams, former comptroller of the currency. aroused resentment on the part of tbe systems two highest officers. Governor Harding of the reserve board and Gov ernor Strong of the New York reserve pank. In one of the frequent inter changes Governor Harding charged across the committee room swinging his nst, but was halted by struggling asso- clates just in front of his adversary, who renamed cool but was rising for the threatened encounter.
 few minutes later Mir. Strong while reading to the commission a report which charged Mir. Williams with false and misleading statements" was interrupt ed by the former comptroller who shout ed:
 That statement of yours is false"
 Governor Strong, however. continued reading and presently referred to Mir Williams as being Jealous of his preor- gratfves"
 terjected
 At this point. I request the commit tee to require the comptroller to make Whole truth or not" Governor Strong exclaim- ed.
 Chairman Anderson ruled amid the confusion that it was mot feasible to adopt the policy at this stage of the game"
 Both federal reserve officials. aIons with number of associates. had sa, apparently unmoved during two days along with an audience which numbered many senators and representatives allied with the agricultural bloc," in con gress, while Mir. Williams elaborated three general charges. He said first tha the board had countenanced undue lend ing to New York banking group durin, the last two years, for speculative uses while forcing liquidation in southern ant western agricultural districts, and tha it had allowed extortionate interes charges, and generally failed to "eas down. imitation.
 Governor Harding today rose out o the audience and demanded a hearing o, personal grounds, to deny allegation concerning himself as Mir, Williams hal made them, and presently with Governo 1 Strong, produced from the conidentia 1 files of reserve offices correspondence an | eports to combat MT. Williams criticism. l To answer letters and memorandum l 1 he had sent to his associates on tn
 reserve board during 1920 and 192- protesting their policy and course, Gov
 ernor Harding demanded and receive 1 permission to read a single letter of rt l sponse which the board made to NJ l Williams in 1921.
 The federal reserve board feels COT
 strained to say" the letter said, "ths
 your action has demonstrated the fl | tility of discussions with you on que: | tions of honor or fair play'
 Mir. Williams criticisms of the board handling of credit problems as containe
 in the correspondence and repeated
 the congressional commission weI
 characterized in Governor Harding's le ter as ignorant, inaccurate and mi leading"
 ''The object seems to have been mer ly to make a record during your tenu
 of office of statements to be handed
 the public later" the letter said in pal "as an appeal to preiudices and symp thies and not to reason" The HardiI letter further said that MT. William criticisms generally were trivial, relevant or susceptible of no definite co l structive interpretation" and added tn "a failure to comply with you cannot
 said 2 failure to challenge your stat ments."