The Birmingham age-herald., 1922-08-19
HARDING UNLIKELY
 ID BE RENAMED
 ON RESERVE BOARD
Belief Grows That President Will Name Some Eastern Republican Imbued With
 Wall Street Ideas
By HuGM w. RoREKTs

Washington Bureau, Tho Age-Herald, 'sae-s 500 Dayison Building.
 Washington. August 1s.--tSpecial) Democrats in Congress, with a few exceptions. have abandoned hope that President Harding will reappoint w. F. G. Harding governor of the fed eral reserve board.
 The idea prevails that at the proper time the President will send to the Senate the name of some prominent republican, possibly de- feated member of the reactionary wing of the Senate: For instance. ; there is discussion to the effect that Governor Edwards defeats Sena- tor Frelinghuysen, the particular friends of the President. the appoint ment will go to the New Jersey sem ator.
 The failure of the President to re- appoint Governor Harding Is not at- tributable to any criticism made against him by any member of Con- gress, or to any dissatisfaction en- tertained by the President respect Ing the administration of the govcr- nor. It is indicated that the Presi- dent was aware that the reappoint- ment of Governor Harding would precipitate bitter fight in the Sem ate, in which fight the bitterest op- ponent of the presidential action would be democrat, Senator J. President, it is generally presumed. concluded that If democrat would oppose the reappointment of south crner and democrat. he would re- serve the desirable plum for mem Der of his own party, and not pro gressive" member at that.
 In all probability. therefore,, the President will present an individual from the east. without Knowledge of farming conditions in the south and west, and obsessed with the Wall street method of doing banking busi- ness. At best. the great majority of southern democrats do not anticipate that the new administration will be an improvement over the old. and there is fear that conditions will not be as satisfactory.
 There is no agreement in Con- gress as to whether. the so-called de- flation policy of the Woodrow Will son administration was wise or un- wise, necessary or unnecessary. It was instituted by the former Secre- tary of the Treasury and adminis- tered by the governor of the federal reserve board. When for political effect William G. McAdoo suggested to President Wilson that money be made more easy" until after the presidential campaign, he received no satisfaction. Critics of the de- flation policy have insisted that it's rlgor was unnecessary and wrought great distress to the south and west, comforting in the meantime inefta- ble boons on Wall street.
 Defend DefIatiOn Policy
 Ardent supporters of the Wilson administration contend that the poll icy was necessary, and that 1t avert ed one of the most serious .'snics ever to threaten the financial life of the nation. The most conservative members of Congress declare that deflation was necessary in order that wild orgy of spending might | :, concluded, and Sheirscriticisma is con- fined to a statement that the policy was instituted too abruptly. The critics of the policy were Senators Heflin of Alabama and Watson of Georgia; It's principle defender among democrats, Senator Gl ss of Virginia. whom President Wilson made Secretary of the Treasury, and who Is nationally recognized as one of the ablest members of Congress- He was the author of the act creat- ing the federal reserve system. A poll of the Senate made prior to the conclusion of Governor Harding's term, August g, indicated that had the democrats name been sent to the Senate 1t would have been con- firmed.
 W. P. c. Harding was born in rural district of Alabama. and at an early age became runner in Tus- caloosa bank at a wage of s2.50 per week. When appointed member of the federal reserve board by Presi- dent Wilson he was president of the First National bank of Birmingham. one of the largest financial institu- tions of the south. He came to Washington at great financial sacri-