The New York herald., 1922-01-17
NORRIS SAYS FARMERS
WILL BE FOOLED AGAIN
Attacks Reserve Board and
Glass Defends 1t.


WASHINGTON, Jan. 16.-The Federal
Reserve Board, its general program and
its personnel and their activities were
attacked and defended i'm Senate debate
to-day Senator Glass, Democrat (Va.).
former Secretary of the Treasury and
known as the author of the Reserve act,
defended the boards personnel and
program. He branded criticism of the
board as for the most part the 'dema-
goguery'' of "eruptive politicians" Mr..
Glasss denials of charges that the board
was the cause OF the heavy decreases
in prices of agricultural products was
spirited and he offered figures In sub
sanitation of his statements. which he
said were "cold and indisputable."
senator Norris's Warning.
The other principal speech was by
Senator Norris, Republican (Neb), who,
thing which would aid the farmers,
warned that "the farmers are about to
be fooled again."
''rhey think" Mr.. Norris said, "that
this legislation will worl, wonders; that
1t will give immediate relief: that a sort
Of millennium will be produced. But it
won't and the reason it won't Is because
by no legislative act can Congress take
eway the discretionary power vested in
the Executive over appointments
Mr.. Norris announced that he proba-
bly, would vote for some Of the amend
ments which he said would be offered
to the compromise measure. but that in
most cases his vote would be "in pro-
test against what he described as
nearly maladministration of affairs by
the Reserve Board.
Mr. Glass. in the course Of his speech,
offered official statistics showing. he
said, that while prices of agricultural
products tumbled last year the regional
Reserve banks actually had increased
the volume of currency and enlarged
credits. He emphasized that the Reserve
Board had no power by law to increase
currency or order credits restricted and
defied anybody to show that the board
had "even so much as hinted" such q
policy to the Reserve banks.
Extension of Credit.
Figures showing the Shocking de-
cline" In prices of agricultural products
during 1920 were submitted by the Vir-
ginia Senator along with statements to
the effect that the amount Of paper re-
discounted by the Reserve banks in
creased from $2.215. 100000 on January
l, 1920, to $2,6S7. 100000 on the date in
1921. The currency in circulation in
creased from S3.00S, 100000 to 1885,
100000 between the same dates, he de-
clared.
Mr. Glass cited particularly the credit
figures of the Atlanta Reserve Bank.
where rediscounts on cotton paper were
largely handled, to show how the credit
facilities of the banks had been extend
nd 20
the figures. had rediscounts Of s88.000,-
600 on January 1, 1920, and rediscounts
of S166.000,000 a year later.
The circulating currency of that bank
increased between the dates mentioned
from $155,000,000 to $173.000.000. He
said also that figures from Reserve banks
in other agricultural districts were of
a similar character. While rediscounts
of agricultural paper increased in all
of them he added there had not been
corresponding credit increases in manu-
featuring eenters
81 am amazed at the generosity of
the banks the Senator continued.
"Some went so far as to imperll their
gold reserves. And in all OF this fam
fare of prejudice and vituperation
against the banks there has not been
one single fact given to show that they
We're delinquent or oppressive In any
particular"
Senator Heflin Democrat (Ala.), who
has been a critic of the Reserve board
interrupted to state that he could not
agree with all of the Virginia Senator's
conclusions and said he would take
care" of the arguments tomorrow.
Mr.. Glass did not conclude. announc-
ing he would speak again tomorrow.
Several Senators, in addition to Mr.
Glass, desire to discuss the legislation.
The Senate will meet an hour earlier
than usual. The vote is scheduled for
shortly after o'clock, but q movement
was on foot tonight to postpone It tc
later in the day.
Soma objection TO that plan was
voiced Senator Smith, Democrat. South
Carolina. saying that the matter was of
such Importance that the question of
postponing a vote ought not be brought
up.
"I know there are some who want
to talk" he added. but that's just for
the enlightenment OF the pulls and
such speeches can be made at any time"