The New York herald., 1922-01-18
HEFLIN IS REBUKED
BY GLASS IN SENATE
virginian Says Alabaman
Made Six Misstatements in
Nine Printed Lines.

Nine Printed Lines.
Special Dispatch to THE New YoRK HERALD
New York Herald Bureau.
Washington, ID. c., Jan. IL.
Senator Carter Glass (va.) scored
Senator Helflin <Ala.) to-day IN the
Senate because of his "misunderstand-
ings and Misrepresentation" of the
plans Of the Federal Reserve Board
concerning the new bank building to
be erected in New York.
In leading up to the subject Senator
Glass read from the Congressiond!
Record an extract from a recent speech
Of Senator Hcflin In which he attacked
the Federal reserve system.
"In nine printed lines" said Senator
Glass, II find the Senator from Alabama
made six distinct mistatements. H.
said that amendment was forced through
Republican Congress by which $780,
10000 a year was set aside by the
Federal Reserve Board for the construc-
ton of bank buildings without the con-
sent of Congress, that $26.000,0o0 is to
be used for a bank building In Wall
street. New York that the money oil
the banks is used by the officials for
speculative purposes. &c.
"Now as matter of fact the amend
ment to which he referred was passed
by a Democratic Congress, VIXEN tic
distinguished Senator from Alabama
was member of the lower house and
he voted in favor OF it,
again, $26,000.000 has not been ap-
propriated for building in Wal, street
for the Federal Reserve Bank. IN fact
the bank Is not to be built in Wall
street.
"Under the law the bapk cannot a2'
propriate 81 TO an individual for any
use"
wadsworth's Interpolation.
Senator wadsworth (Sew York; said
at this point "Other than the discrep
ancies pointed out. the statement by the
Senator from Alabama is all right"
"Yes," replied Senator Glass. AMI
there was a perceptible ripple of laugh
ter on the floor and I'm the galleries.
"Those statements" he continued. "are
indicative Of the accuracy of the as
sauts being made on the Federal Re-
serve system"
Senator Glass recalled that the Sena-
tor from Alabama charged on this
floor that w. p. G. Harding, the head
voted the Republican ticket in 1920.
although he was appointed to the board
as Democrat"
What difference does Il make how
h, voted in 1920" he added, ''just so he
gives the country good and faithful ser
vice? have n faint idea that many
other Democrats voted the Republican
ticket in 1920. judging from the re-
turns"
"And they have been sorry they did
it ever SINCE" declared Senator Cara
way Ark.).
Without paying any attention to the
interruption Senator Glass read a letteI'
from Gov. Harding addressed to him in
which the head Of the Federal reserve
system referred to the accusations made
by Senator Heflh. declaring the slurs
were false.
IT did not go home to vote in 1920"
he added. because at that time was
busy with work In my office. We wera
in the height Of the deflation period.
and ] was busy working out the redls-
count rates for the different banks"
Paragraph Sheds Light.
Senator Hef1in said It was not neces-
sary for him to go home TO vote. which
caused Senator Glass to reply:
There Is one paragraph In the letter
which did not read which would throw
some light on that subject which have
refrained from reading out of considera-
tion to the Senator from Alabama, but
since re Is so sure of his position |
VIII read It, Mr.. Harding said ne did
not care to go home to vote, as ba did
not wish to vote for the Senator IRON
Alabama"
Senator Glass added that "he cid not
a. y
territorial Misrepresentation of the facts .
Turning to Senator Heflin, he added
with emphasis: You simply do not
know anything about It. In fact few
Senator'S here know anything about the
complex problems OF the Federal Re-
serve system"
Next Senator Glass told OF the plans
for the new building in New York.
which. he said. Is to house the greatest
banking institution In the world" He
said revised figures show that the cost
will be less than $4,000. 900 and that Il
will not be located In Wall street
He ridiculed the declaration made by
Senator Hef1in that $26. 6.000.0 900 was 20
be spent on building to house 500
clerks. pointing out that there are now
employed in the bank and its annexes
nearly 1000 persons. Continuing. he
said tho Federal Bank I'm New York Is
being conducted In defiance OF the health
laws OF that city. and that because of the
poor working conditions hundreds OF
workers have contracted tuberculosis.
As evidence of the immensely Of the
New York bank Senator Glass asserted
that II houses five billions Of gold and
securities and every working day Il
moved $1s5.00o.000 OF cash and securi.
ties.
Considerable laughter was evoked
when Senator fIefiih took exception to
the cost OF the baths In tho proposed
bank building.
rs II possible tho Senator from Ala
bana does not believe In washing?"
asked Senator Glass. we have fine
marble baths IN the Senate office build
ing for the purpose"
II am strong for baths" replied Sena-
tor Hcflin. "and that II the reason ] am
working so hard on the Senator from
Virginia"
CLUB TO WELCOME I<OENIG.