The Birmingham age-herald., 1922-07-09
GOVERNOR HARDING
 STRIKES BACKAT CRITICS 0F BOARD
Declares Some of Charges Made Against Banking Body Might Be Regarded
 as LibeIouS
By Aaaoelated Preaa


 Washington. July s.-GovernoE Harding of the federal reserve board in letter sent to the Senate today struck back at senatorial critics of the board and It's policy.
 Assuming complete responsibility for recommending circulation by federal reserve banks of speech by Senator Glaas, democrat, Virginia, defending the board, Governor Hard ing declared that charges made against the board were misleading and untrue.
 Without mentioning by name, Sem ator Heflin. democrat. Alabama. who las criticised the board frequently, Governor Harding said that some of the Senate charges would have been resented as ilbelous" but for the con stitutional immunity of senators in debate.
 Governor Harding's letter written in response to a resolution by Sena- tor Heflin regarding circulation of Senator Class speech was accom- panied by letters from the Philadel- phia, Richmond and St. Louis reserve banks stating that they had circu- lated, respectively. 11.0oo copies, 1o.- 900 and 15,e0o copies of Senator Glass speech.
 In his letter Governor Harding said that on January IS he sent . letter to the governors of all re- serve banks stating:
 Think Senator Glass great speech defending federal reserve system should be widely and promptly cir cuIated.''
 The federal reserve board" Gov ernor Harding's letter to the Sem ate continued. assumes responsibih- ty for commenting this speech to the federal reserve banks for circu- lation. Neither the board nor the federal reserve banks regarded the speech as being an attack upon any senator and were not interested in from that point of view. This speech was and is regarded by the board as a fair presentation of facts. It was commended to the banks for circu- lation because 1t was an answer made in the Senate chamber to charges which had baen made on the floor of the Senate. It is a clear exposition of the policies. functions and opera tions of the federal reserve system during a critical period and is an important contribution to current economic discussion"
 Asserting that banking business rests peculiarly upon the foundation of public confidence, Governor Hard ing declared that the board and each bank, as custodian of the nations finances, had the right and the duty to take necessary steps to prevent undermining of public confidence.
 Those charged with the admins tration of a bank" continued Cover nor Hardings letter, have the right and are impressed with the duty of using all legitimate means. when necessary, to protect its good name and to prevent any Impairment of public confidence.
 Criticism welcomed
 criticisms of policy cannot be ob- jected to and have always been well comed by the federal reserve board, which has never imputed itself infal- lible To the federal reserve board 1t has appeared, however, that for the past two years much has been said
  that has not been intended to help, but to discredit the management of tho federal reserve system through at- tacks upon its integrity and pur- pose of members of the federal re- serve board and of officers and di- rectors of the federal reserve banks. These attacks have been so repeated ly made and have had such publicity as to justify the speculation that they are part of concerted move- ment against the federal reserve system. . Many of the attacks. the letter said, were personal abuses and were repeated and amplifled on the sen- ate floor at frequent intervals.
 Respecting the constitutional pre- rcgative of the members of the Sem ate" Governor Harding's letter con tinued "care has been taken to make no criticism of any member there of. This circumstance has been con strued as an admission of the truth of the charges so frequently made on the floor of the Senate, some or which would have been resented as libelous but for the constitutional im- munity above referred to-"
 Governor Harding promised to for ward statements from other reserve banks regarding circulation of Sem ator Class speech as they arc re- ceived.
 
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