The Birmingham age-herald., 1922-01-18
PASSES ON AMENDMENT 10 HE RESERVE BANK ACT
Appointive Membership of Body Is Increased From Five to Six-Vote Is
 63 to 8
By Associated Prssa

washington, January 17.--Ths first step to bring about farmer represen- tRtion on the federal reserve board was taken by the Senate late today on tho passage of the Kellogg Smith compromise bill increasink the boards appointive membership from five to six, and providing thst the agricultural interests shall have A spokesman among them.
 By the bill, which constitutes an amendment to the federal reserve act. the limited designation of the pres ent law is wiped out and instead ot tho specific provision for the nam ing Of two bankers to the board, the statute. if agreed to by the House. VIII ulreet the President In making appointments to the board to have due regard to a fair repressntatIon or the financial, agricultural, indus trlsl and commercial interests and geographical divisions of the coun- try The measure also proyid ss mat hereafter no federal rsserve bank may enter into contract for banking homes if their cost Ia to ey- ceed s250,000, unless the consent of CoHeiesS IS ilrSt given.
 The vote by which the bill passed was S3 to 2. Seven of those who opposed were republicans
 Harris Amendment
 There were many attempts 10 chanse the compromise. but all save the amendment restricting eonstrue- ton, by Senator Harris, democrat, Georgia, were killed. The agreement on the compromise, which bore the approval not only Of all of the agri. cultural bloc leaders in the sena--. but that of President Harding well, held fast throughout
 Senator Smith. democrat South Carolina, who first offered the spe- cific provision as to farmer represen- tation, withdrew his amendment an called upon his democratic colIeaeufs to support the substitute which Ee declared to be adequate and to meet all demands
 While the Senate was moving slo'.- ly toward passage of the measure, word was received by senators that Mir. Harding would observe the in- tent Of the legislation and would name the farmer members He hal previously indicated disapproval ot the eri ginal proposal and tue com- promise measure fesulted.
 HCNItn Hnd 8t-tNS
 Prior to the vote there were sev- eral hours of heated debate, in winch Senator Glass democrat Virginia, former Secretary of the Treasury. and one of the authors of the re- serve act. defended the system ana the board and criticised Senator Het- lin, Alabama, also a democrat, for the latter's frequent attacks on ths board
 Senator Mclean, republican. chair man of the Senate banking and cur rency committee. which was overrId- den by the acceptance of the sub stitute bill, also defended the board. but assailed extensively those who, he said, were going ahead deliberate ly to fool the farmer" He declared that the solution of the present eco homie situation lay not in class leg islation," but In return of the peo- pie to working and saving.
 Mir. Heflin declared that board which would permit orders to go put for the construction of bank build ing like that proposed for the New York federal reserve bank, and which iB to cost around s20000,0 ,00O, was Covered all over with suspicious of graft" He declared the American people were fin no humor to fool with those fellows making up tho reserve board. adding that it would be a great blessing if they would "get out so we could put others in who are not dominated by Wall street"