The New York herald., 1922-01-18
BLOC MAKES SENATE PLACE
FARMER ON RESERVE BOARD

because OF too much credit extended
during the war period.
This country is going ahead said
Senator Edge, "by mutual cooperation
ard due regard for the fair and equal
treatment of all classes Of business. If
we begin to legis1ate in the interest OF
any special group OF citizens we will
break down our system of government.
BY the passage OF this measure we will
establish a precedent which will often
return to plague u.s.
Senator Mclean, who is chairman OF
the Banking and Currency Committee.
declared it to be a mistake to put the
representative Of any special class on
the Federal Reserve Board.
There are now some fifty Federal
Reserve Boards" the Senator said,
"end these are administered for the
common good and not in the interest
Of any group or class Of citizens. Now
YOU propose that instead of having a
united country we establish private
wigwams to supply each tribe with
tomahawks and scalping knives so one
can go out after the scalps or the
others"
The supporters of the bill wasted
very little time in answering argu-
ments. Several amendments We're pro-
posed by them to aid farmers still
further in procuring easier credits
from the Federal Reserve system than
are granted to persons engaged In
other businesses.
KenyOn's Frank Admission.
Senator Kenyon frankly admitted
that the purpose OF the Kellogg
amendment is to place farmer on
the Federal Reserve Board.
"The Republican national platform.
he said. "is committed to such legisla-
ton and the President in recent ad-
dresses indicated that he favored the
idea. We do not expect this legisla-
ton will correct all the ills Of the
farmer, but it should be helpful"
He said the Kellogg amendment was
lust and would accomplish the same
purpose as the bill introduced by SEN
ator Smith. Democrat IS. c., which
| directed the President to appoint a
farmer on the Federal Reserve Board.
Senator King, Democrat (Utah)
asked if the purpose OF the Kellogg
amendment could not be accomplished
without adding another member to the
Federal Reserve Board.
Senator Kenyon replied in the mega
tive, explaining that there will be no
vacancy on the board until next Au-
gust, and the only way that repre-
sentative of agriculture could be APP
pointed to it was by increasing the
number Of members.
Senator Smith declared he had becn
falsely accused of aiming his bill at
Gov. Harding Of the Reserve Board
He said it was just a coincidence that
Gov. Harding's term will be the first
to expire, and that he Cthe Serator)
did not know it when he introduced
his bill. which he has since withdrawn.
In advocating the McKeller amend
nient making the commercial paper of
cotton factories eligible for rediscount
in Federal Reserve banks, Senator
Swanson, Democrat (Va), said that
during the deflation period Federal Re-
serve banks cut Off the privilege.
Senator McKeller explained his
amendment had been submitted to the
Secretary Of the Treasury and MEM
bcrs of the Federal Reserve Board
and that they approved Of the propo-
sition.
This statement provoked Senator
Norris. Republican (Neb), to deplore
sarcastically the necessity for mem
bers Of Congress going to the heads Of
the different departments to obtain
approval of legislation.