Great Falls tribune., 1922-01-18
HARDING T0ACT
0N|NTENT, BILL
PASSES SENATE
Compromise Measure
Increases Membership
From Five to Six.
Bitter Attack on Body
and Defense Of It En-
liven Legislation.

Washington. Jan. 17.--The first step
to bring about farmer representation
on the federal reserve board was taken
late Tuesday by the senate in the pass
age Of the Kellogg Smith compromise
bill increasing the boards appointive
membership from five to six and pro-
viding that the agricultural interests
shall have spokesman among them.
The vote was 63 to Q. Seven of
those who opposed the proposition
were republicans and two democrats.
They were:
Pomerenc, Ohio. and Williams, Of
Mississippi, democrats; Brandegee and
Mclean. both of Connecticut Calder
and Wadsworth. New York: Edge, New
Jersey; Keyes and Moses, New Hamp-
shire, republicans.
Needs Action of House
BY the bill, which constitutes an
amendment to the federal reserve act,
the limited designation of the law is
wiped out and instead Of the specific
provision for the naming of two bank
ers to the board, the statute if agreed
to by the house, will direct the presi-
dent in making appointments, to have
"due regard to a fair representation
Of the financial, agricultural. indus
trial and commercial interests and geo.
graphical divisions of the country"
The measure also provides that here
after no federal reserve bank may en-
ter into a contract for banking homes
if their cost is to exceed S2J00OO un-
less the consent of congress is first
given.
Bloc Agreed to 1t
There were many attempts to change
the compromise, but all save the
amendment restricting construction
by Senator Harris, democrat. of
Georgia, were killed. The agree
meDt on the compromise, which bore
the approval not only of all the
agricultural bloc leaders in the senate
but that of President Harding, held
Senator Smith. democrat. of South
Carolina, who first offered the provi-
sion as to farmer representation with
drew his amendment and called upon
his democratic colleagues to support
the substitute, which he declared to be |
adequate.
While the senate was moving SLOWLY |
toward vote, word was received that |
Mr.. Harding would observe the intent |
Of the legislation and would name the |
farmer member. He previously had
indicated disapproval Of the original
and the compromise measure
resulted. /,
Prior to the vote there were several
hours of heated debate.
Charges that there was graft in con-
1ection with the ordering of the con-
struction of the new district federal
.eservc bank building in New York
we're made in the senate by Senator
Heflin, democrat, Alabama, in the
course Of an attack on Governor Hard i
ng and other members of the federal
'eserve board.
Glass Oenounces Boards Foes
Denouncing "those who would de-
'troy the great reserve banking system
or the sake of politics." Senator Glass.
Virginia. declared that much
more good would be accomplished for
he country IF some senator's and
'thers would talk sense to- the hank
rs instead of nonsense to the farm
rs"
"Why not tell the farmers the truth
'nce?" querried the speaker. why
INSIST on drawing the picture of defla-
ion and credits as the monster which
rought reduced prices. Why not
how that a lot of banks did not take ,
dvantage of the resources of the re- /.
lContinued on Page Two.) y