Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-01-18
FARMERS GIVEN
one PLACE ON
RESERVE BOARD
Bill Passed Making Six Ap-
pointive Places Instead
S. of Five.
Heated Discussions Precede
Taking Of Vote on
Measure.

Washington, Jan. ~. = The
first step to bring about farmer
representation on the federal re-
serve board was taken today by
the senate in the passage of the
Kellogg-Smith compromise bill
increasing the boards appointive
membership from five to six and
providing that the agricultural in
terests shall have a spokesman
among them.
The vote by which the bill was pass
ed was So to 3. Seven of those who
opposed the proposition were Repub-
leans and two Democrats. They
were Pomerene, Ohio. and Williams.
Mississippi, Democrats; Brandegee,
Connecticut; Calder, New York: Edge,
New Jersey; Keyes, New Hampshire:
Mclean Connecticut; Moses, New
Hampshire, and Wadsworth, New
York, Republicans.
Farmers Protected.
By the bill, which constitutes an
amendment to the federal reserve act,
the limited designation of the present
Ao" % "APCO O0l dAlu lllSlCdu VI LIlC
specific provision for the naming of
two bankers to the board. the statute.
If agreed to by the house, will direct
the president, in making appointments
to the board. to have due regard to a
fair representation in financial, agri-
cultural, industrial and commercial
interests and geographical divisions of
the country" The measure also pro-
vides that hereafter no federal reserve
bank may enter into a contract for
banking homes If their COZ. is to ex-
coed $250,000 unless the consent of
congress is first given.
Compromise Stands.
There were many attempts to
change the compromise, but all save
the amendment restricting construc-
ton by Senator Harris, Democrat,
Georgia, were killed. The agreement
on the compromise which bore the ap-
prevail not only Of all the agricul-
tural bloc leaders in the senate but
that of President Harding as well,
held fast throughout.
Senator Smith. Democrat, South
Carolina, who first offered the specific
provision as to farmer representation,
withdrew his amendment and called
upon his Democratic colleagues to
support the substitute, which, he de-
cl&red to be adequate and to meet all
demands.
While the senate vas moving slow
ly toward passage of the measure.
word was received by senator's 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 compromise measure
resulted. Prior to the vote there were
several hours Of heated debate In
which Senator Glass, Democrat, Vir-
ginia. former secretary of the treas.
ury, and one of the authors Of the re-
serve act. defended the system and
the board and criticized Senator
Helm of Alabama, also a Democrat
for the latter's frequent attacks on the
board.
Called Attempt to Fool.
Senator Mclean, Republican. Con-
necticut, chairman Of the senate bank
ing and currency committee which
was over-ridden by the acceptance OF
the substitute bill, also defended the
Duard, but assailed extensively those
who, he said. were going ahead de-
liberately to fool the farmer"
He declared the solution Of the
present economic situation lay, not In
Glass legislation" but in a return OF
the people to working and saving.
Mr.. Heflin declared that a board
which would permit orders to go out
for the construction of a bank build.
York Federal Reserve bank and which
is to cost around $4,000, 900 wa.
covered all over with suspicion OF
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