Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-08-04
LIE IS PASSED
At PROBE INTO
RESERVE BOARD
CREDIT SYSTEM
John Shelton Williams, For
mer Comptroller of the
Currency INDUCES Ia
Some Strong Language
OFFICERS AROUSED BY
SEVERE CRITICISMS
Governor Harding Demands
a Hearing on Personal
Grounds to Deny Charges
Concerning Himself.
tny The Assoelnted pressl

washington, Aug. 3.-Critictsm
Of federal reserve system credit
policies, continued today before a
congressional commission by John
Skelton Williams, former comp
troller of the currency, aroused
resentment by the SYSTEMS two
highest officers Governor Harding
of the reserve board, and Governor
Strong of the New York reserve
bank. In one of the frequent ver-
bal interchanges Governor Hard
ing charged across the committee
room, swinging his fist, but was
halted by struggling associates just
in front of his adversary, who re.
matned cool, but was rising for the
threatened encounter.
statement Is False"
A few minutes later Mr.. Strong,
while reading to the commission a
report which charged Mr.. Williams
with false and misleading state
ments," was interrupted by the
former comptroller, who shouted:
THAT statement of yours 10
false"
Governor Strong, however, con-
tinued reading and presently re-
ferred to Mr.. Williams as being
Jealous of his prerogatives.
'At this point, l request the
committee to require the comp
troller to make oath, whether he
has stated the whole truth or not"
Governor Strong exclaimed.
Chairman Anderson ruled, amid
the confusion, that it was feasible
to adopt the policy at this stage Of
the game"
Williams Charges.
Both federal reserve officials,
with a number of associates, had
sat apparently unmoved during
two days, along with an audience
which numbered many senators
and representative allied with
the agricultural bloc" in con-
gress, while Mr.. williams elaborat-
ed three general charges. He said
first that the board had counte-
nanced undue lendings to a New
York banking group during the
last two years, for speculative uses.
while forcing liquidation in south
ern and western agricultural dis
tricts, and that it had allowed ex-
tortionate interest charges, and
generally failed to lease down"
initiation.
Demands n Hearing.
Governor Harding today rose
out of the audience and demand
ed a hearing on personal grounds,
to deny allegations concerning him
self, as Mr.. Williams had made
them. and presently with Cover
nor Strong, produced from the
confidential files of reserve bank
offices correspondence and reports
to combat Mr.. Williams criticisms.
To answer letters and memoran.
dums read by Mr.. Williams and
which he said he had sent to his
associates in the reserve board
during 1890 and 1921, protesting
their policy and course. Governor
Harding demanded and received
permission to read a letter of re-
sponse which the board made to
Mr.. Williams in 1921.
Criticism Misleading.
1.-THE federal reserve board feels
constrained to say" the letter said.
that your action has demon
strated the futility of discussions
with you on questions of honor or
fair play"
Mr.. Williams criticism of the
boards handling of credit probe
lens and contained in the corret
spondence and repeated to the cons
gressional commission were char
acterized in Governor Harding's
letter as ignorant, inaccurate and
misleading"
THE object seems to have been
(TOptfpuad an pnpa TUo \