The Birmingham age-herald., 1922-02-27
Another Probe of Federal
 ReserUe Boards DefIation
 Policy Is Now Threatened

During the hearings, Senator Smith and Senator Heflin frequently ap peared, but neither remained long or suggested questions for the embar- rassment of Mir. Harding. It is not recorded that Senator Watson made an appearance. Senator Harrison of Mississippi, who was a member of the commission and at times asked questions of Mir. Harding. did not ex- ceedingly embarrass him. It was the opinion of the commission, that Mir Harding made an excellent witness. That he made fine impression on the commission is reflected in it's verdict.
 The commission did not charge that for the trouble in the agricultural belt the federal reserve system was even in the main responsible. This finding gave no satisfaction to John Skelton Williams, or the senators who are still pursuing the board and it's governor.
 Smiths Sad Picture | Said Senator Smith of South Caro- lima before the Senate: q think shall introduce a resolution and let it take it's fate, to have proper committee appointed to investigate this whole question of all parties con cerned in the administration of our hNAtA al ASSSANC GN StNth AAOiu lAb lAII1t when it began the deflation until the present day, and put men on their oaths-member banks. state banks, the whole push'--and let us know just who is responsible for this condi- ton. There is a boast of the fact that despite this condition there is S1,7o0, 900, 900 of free, idle gold in this country against which there is not federal reserve note or an obligation of any kind
 Have we converted the people into the horrible condition of a Tantalus that the flood reaches just to their lips and that they must thirst to death in a floodtide of plenty2"
 Light From Watson
 It was then that Senator Watson of Georgia interposed: Mir. Pres ident. with permission of the senator from Alabama (Mr. Heflin), I might say to the senator from South Caro- lima (Mr. Smith) that exactly this condition existed in England just ex- actly 100 years ago and that the Bank of England brought it about by doing exactly what the federal reserve board does"
 However Illuminating that ob- servation might have been. Senator Smith found it necessary to ask Sen ator Watson If he did not agree that an investigation should be ordered.
 Answering the senator" replied Senator Watson, "f will say, yes and with the permission of the senator from Alabama (Mr. Heflin), will tell kim how the situation was handled in England 100 years ago when the Bank of England did exactly what the federal reserve board has done destroyed the paper currency They hrA ohA f,.. IA state of affairs that Parliament first had to feed an army of unemployed ont of the public treasury and the government had to issue exchequer bills to increase the amount of cur rency in circulation. And thus the panic was lifted-was banished-in- stantly upon the issuance of those exchequer notes"
 This seemed to give Senator Smith the information for which he had groped. For he said: MT. President, have been forced by a sense of my duty to make the statement l have just made. I have not referred at all to the controversy between the senator from Virginia and the sem ator from Alabama"
 This prompted Senator Glass cf Virginia to remark: If I may cor rect the senator from South Carolina, there is no controversy between the senator from Virginia and the sen ator from Alabama. I made a speech which occupied 47 printed pages in pamphlet form, and. incidentally. I twice referred to the senator from Alabama"
 "Oh," exclaimed Senator Hef1in, q cannot permit that statement to go unchallenged" And ne proceeded to challenge 1t to the extent of page in the Congressional Record
 Heflin Proves Point
 As if to prove his point. Senator Heflin declared with ferver: "The senator took up a statement I had made about the extravagances in- dulged in the hrilding of the federal reserve banking house in New York, stating that there were six instances in which l referred to that. and that in all of them l was wrong. I said I did not agree with the senator in many things and he replied that he did not expect me to gree with him in anything. The senator displayed an inclination to criticise and belittle the part I played in that matter.
 He referred number of times to the things I had said about the de- flation policy of the federal reserve board and characterized them as pit fable nonsense and wicked mum mery. using expressions like that He insinuated that the people who did not agree with him were dema- gogues. I did not object to that, be- cause I heard what he said and paid my respects to him and his speech as we'll as ] could in an hour and Is minutes immediately following his speech"
 The explanation of Senator lief lin seemed to impress the Senate with the conviction that Senator Glass was in error when he declared that he had referred to Senator lief lin only twice. and that in inciden- tai manner.
 At any rate, nothing subsequently, occurred to suggest to Senator Smith an abandonment of his intention to call for another investigation of the federal reserve board.
 As elections approach. 1t is prob able that the republicans will not greatly object, and the chances are regarded as good that the investiga- ton will be ordered.
 
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