The Hartford republican. (Hartford, Ky.) 18??-1926, 1922-01-20
FARMERS T0-BE
ON RESERVE BOARD
Senate Passes Bill Enlarg-
ing Board From Five
To Six.

tation on the Federal Reserve Board
was taken by the Senate late today
in the passage of the Kellogg-Smith
compromise bill increasing the
boards appointive membership from
five to six and providing that the ag-
ricultural interests shall have a
spokesman among them.
The vote by which the bill passed
was SO to 3. Seven of those who OPP
posed the proposition were Republi-
cans and two Democrats.
Limit TO Building Cost.
BY the bill, which constitutes an
amendment to the Federal reserve
act, the limited designation of the
present law is wiped out and instead
of the specific provision for the nam
ing 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 fair representation
of the financial, agricultural, indus
trial and commercial interests and
geographical divisions of the coun-
try The measure also provides
that hereafter no Federal reserve
bank may enter into a contract for
banking homes if their cost is to ex-
coed S250,00 unless the consent of
Congress is first given.
There were many attempts to
change the compromise, but all save
the amendment restricting construc-
ton, by Senator William j. Harris,
Democrat OF Georgia, were killed.
The agreement on the compromise,
which bore the approval not only of
all the agricultural bloc leaders in
the Senate. but that of President War
rem G. Harding as well. held fast
Word From Harding.
Senator Ellison d. Smith, Demo-
crat of South Carolina, who first Of
fered the specific provision as to far
mer representation. withdrew his
and called upon his DEM
ocratic colleagues to support the sub
stitute, which, he declared to be ade-
quate and to meet all demands.
While the Senate was moving slow
ly toward passage Of the measure,
word was received by Senators that
Mr.. Harding would observe the intent
Of the legislation and would name
the farmer member. He had pre-
viously indicated disapproval of the
original proposal and the compro-
mise measure resulted.
Prior to the vote. there were sew
eral hours of heated debate, in which
Senator Carter Glass, Democrat, OF
Virginia, former Secretary of the
Treasury and one of the authors of
the Reserve Act. defended the system
and the board and criticised Senator
/. Thomas Helm of Alabama, also
Democrat, for the latter's frequent
attacks on the board
Hcfiin Sharply Critical.
Senator George p Mclean, Repub-
lean. of Connecticut. chairman of the
Senate Banking and Currency Conn
nittee. which was overridden by the
of,the substitute bill, also
defended the board, but assailed ex-
ensively those who, he said, were go
ng ahead deliberately to fool the
armer." He declared that the solu-
ion of the present economic situation
ay not in Glass legislation, but in a
eturn of the people to working and
aving.
Mr. Helm declared board which
would permit orders to go out for the
of bank building like
hat proposed for the New York Fed
raj Reserve Bank, which is to cost
round $40, 100000, was covered all
'ver with suspicion Of graft" He
declared the American people were
in no humor to fool with those fell
ows" making up the Reserve Board,
dding that It would be great
blessing il they would "get out so
We could put others in who are not
Dominated by Wall Street"
Other Motions Defeated.
Opponents of the measure. headed
" Senator Mclean made an attempt
o stave on its passage just before
he final vote by moving to send It
ack to the committee. but this was
Iefeated. So to II.
Senator Harris. In addition to the
compelling the reserve
'anks to ask Congressional consent
or construction OF banking houses.