Omaha daily bee., 1922-01-18

VictOrs in
Bank Fight
Senate Passes Bill Increasing
Size Of Federal Reserve
Board To Include Farm
Member. s
Heflin Charges Gsss,

Washington, Jan, 1.-THE first
step 10 bring about farmer repre-
sentation ON the Federal Reserve
board was taken late today by the
senate ia the passage OF the Kellogg
smith compromise bill increasing the
boards appoinIiye membership from
five 10 SIS and providing that the
agricultural interests shall have a
Spokesman among them.
The vote was bJ 10 y. Seven al
those who opposed the proposition
were republicans and two democrats.
They were: Pomerene, Ohio. and
Williams. Mississippi. democrats;
Brandegee. Connecticut: Calder. New
York: Edge. New Jersey; kcycs,
New Hampshire; Mclean. Con-
necticut: Moses. New Hampshire.
and Wsdswor,h. New York, rcpub-
leans.
Regard for Interests.
By the bill. which constitutes an
amendment 10 the federal reserve
act, the limited designation OF the law
is wiped out and instead OF the
specific provision for the naming OF
two bankers to the board. the
statute, il agreed TO by the house,
will direct the-president. in making
appointments, TO have "due regard
10 fair representation OF the
financial. industrial. agricultural and
commercial interests and geograph-
ical divisions OF the country.
The measure also provides that
hereafter no federal reserve bank
may enter into a contract Tor bank
ing homes il their cost is TO exceed
S250.0O0 unless the consent OF COIL
gress is first given.
There were many attempts TO
change the compromise, but all save
the amendment restricting construc-
iion, by Senator Harris. democrat,
Georgia. were killed. The agree
ment on the compromise. which
bore the approval not only OF all
the agricultural bloc leaders in the
senate but that Of President Hard
ing. held throughout. ...
Senator Smith, democrat, South
Carolina, who first offered the pro
vision as to farmer representation,
Withdrew his amendment and called
upon his democratic colleagues to
support the substitute, which he &c
clarcd to be adequate.
Harding Favors Plan.
While the senate was moving slow
ly toward vote, word was received
that Mr.. Harding would observe the
intent of the legislation and would
name the farmer member. He had
previously indicated disapproval of
the original proposal and the conf
promise measure resulted.
Prior to the vote, there were sew
eral hours of heated debate, in which
Senator Glass, democrat, Virginia.
former secretary of the treasury and
an author of the reserve act, de-
Tended the system and the board and
criticised Senator Hcf1in Of Ala
bama. also democrat, for the lat
ter's frequent attacks on the board.
Senator Mclean, republican, Con-
necticut, also defended the board, but
assailed extensively those who, he
said. were going ahead deliberately to
fool the farmer"
Mr.. Heflin declared board which
would permit orders to go out for
the construction of bank building
like that proposed for the New York
Federal Reserve bank and which is
to cost around $20,0O0,000 was cover
ed all over with suspicion of graft"
Opponents of the measure, heaoed
by Senator Mclean, made an attempt
to stave off its passage just before the
final vote, by moving to send it back
to committee, but this was defeated,
81 to II