The New York herald., 1922-03-06
Storm of Protests Unparal-
leled in National Legis-
lation Assails Congress.
BANKERS SEND WARNINGS
Chances for FOrdney Scheme
to Pass Declared to Be Any
thing But Easy. X
ny LOUIS sEIBOLD.

ny LOGiS
Special Dispatch 70 THE New YORK Hrrs,sy
New York Herald Bureau.
Washington, ID. c.. March s.
The frenzied attempt of the Re.
publican bonus Ways and Means Com
mitteemen. to make the banks in the
Federal Reserve system conduct a
pawnbroker business is meeting with
tremendous opposition.
The scheme to issue insurance SER
vice certificates with a borrowing
value Of So per cent. in three years
at cost of $4,000 100000 to the peo-
pie Of the country on maturity has
provoked a storm of protests un-
paralleled in national legislation.
1t is condemned by bankers in vie
lagos as well as in the large cities.
Spokesman for the agricultural bloc
predict that the most influential
group in Congress will oppose it with
even greater vigor than was directed
against the sales tax because ":t is
even worse than straightout taxa
ton"
Labeled ms Partisan Measure.
BY excluding the Democratic mem
bers from participation in framing
the bill Chairman Fordney and his
Republican associates have labeled it
as a partisan measure.
Caaatn. T,a,.t~,. Gfo.. ti,n o,,tt1-
the Federal Reserve banking law,
describes it as "the most vicious pro-
posal yet made in regard to the
bonus" The Democratic Senator
from Virginia says that the banks
of the country will be forced to do
one OF two things.
"In self-defense" said he they
will have TO refuse to make the loans.
and Congress cannot force them to
make them, or else they can make the
loans and become so choked up with
unmarketable, frozen assets that an
impossible business condition will be
created"
The opposition OF the Agricultural
bloc is indicated clearly BY the state
ment Of one OF its most important
leaders that the insurance service ccr-
tihcates to be proposed by the Wa
and Means Committee rs tie worst
suggestion yet made. and IL CARRIED
be tho chief vicre..- Of 1t because lhs
banks. loaded with unmarketabis
bonus certificates. win not be able 70
extend 10 the farmers credits now
vitally needed"
The farm bloc did not awaken 10 the
gravity Of the situation to be brought
about by the new bonus raid scheme
until to-day. II win be called into
counsel by its leaders within the neSs
day or two TO decide upon the course
Of action regarding the decision or the
Fordney committee to report the In
surance certificate scheme.
Outlook for Plan Not Rosy.
Opinions expressed BY farm bloc
leaders to-day regarding the proiee-
devised by Mr.. Fordney and his bonus
associates were decidedly unfavorablc.
Coupled with the downpour or pro-
tests from small banks upon whicn
the farmers and local industries are
compelled TO depend for credit the
chances for the Fordney plan APP
peared to-day 10 be anything but ROSY
Final Judgment and decision as -
the proper course 10 take is reserved
until the completed measure is sub
mitted 10 the full Ways and Meaqs
Committee. embracing the Democrats
who have been shut out up 70 date
Sufficient information regarding thu
provisions Of the Fordney measure j.
known to justify the statement, how
ever. that II win Eave hard sleddiug
II running the gantlet OF both expert
and popular criticism.
II Is not unlikely that the new plan
will have 20 be patched up consider
ably. The chief defect OF IL Is that i
appears TO have been decided upon
without discountins vital objections
due 20 lack of knowledge or the
bankine laws of the country OF the
conviction that these can he made over
TO accomplish the purposes in view
Inquiry among some Of the Repub4
licsn members who indorscd the new
insurance certificate plan out OF hand
and presumably without matching II
up with the banking laws revealed ths