The New York herald., 1922-02-10
BANKERS DEFEND
FEDERAL RESERVE
Speakers at Westchester Asso-
-ciation Dinner DenOunce
Attack by Williams.

The proposed appointment of dirt
farmer" as the eighth member OF the
Federal Reserve Board was vigorously
opposed last night by several hundred
Bankers Association at that organiza-
tion's twelfth annual dinner held az the
Hotel Commodore. Resolutions were
adopted expressing this viewpoint. and
also advocating the enactment of the
bill proposed by the Congressional Joint
Commission Of Agricultural Inquiry,
which provides for relief for the farmers
through the Federal land banks.
Denouncing as malicious political
propaganda the attacks of former
Controller of the Currency. John Skel-
ton Williams on the Federal Reserve
system, its officers. salaries and build
ing program, ]. III. Case, deputy gov
ernor OF the Federal Reserve Bank OF
New York said that Cows. Harding and
Strong of the Federal Reserve system
have capably taken care of the attacks
of this gentleman. an ex-office holder" "
and that all OF the charges have been
satisfactorily refuted. Mr.. Case also
referred &c the charges made yesterday
in the Senate by Senator j. Thomas
Hefiin of Alabama and said that the
statement that the Federal Reserve
Bank was lending $5,o00.000 to an in
dividual resident of Westchester was
ridiculous.
Regarding the attacks on the Federal
Reserve Bank in this city Mr.. Case an
swered the charges that salaries were
excessive and that $26,000,000 was to
be expended for the building of g new
bank here by saying that these charges
were also ridiculous and without founda-
tion. He said that the salaries of the
force employed in this city by the Fed
eral Reserve Bank were not even as high
as many other institutions are paying
and that the officers of the bank Eaei
refused to consider other offers of much
more money from private banking insti-
tutions.
Mr.. Case then read the recent report
issued by the Federal Reserve Bank TO
give the bankers an idea of just what
the system had accomplished. He said
that a building where better facilities
could be had was needed by the bank
in this city but that mo such ridiculous
sum as is charged will be spent in OBJ
tanning it," Mr.. Case suggested that the
bankers express their disapproval of the
attacks made by Mr.. Williams against
the system. During his speech MT.
Case did not refer to Mr.. Williams by
name, but merely termed him "a certain
gentleman and eX-officer holder"
"The agricultural report. which will
soon be issued, will show what the sys-
tenn has done for the farmer and for
the nation said Mr.. Case, "and be an
excellent text book for such gentlemen
as the one who has made these attacks,
and particularly the attacks against the
New York bank of the Federal Reserve
System
Jacob Fl. Herzog, president of the New
York State Bankers Association, branded
the attack of Mr.. Williams Az "a per-
sonal attack against every business man
Of the nation" Had 1t not been for the
Federal Reserve system we never could
have won the recent war, he said. Poll
tics and class legislation must be kept
out of tho Federal Reserve Bank. Mr..
FIerzog added, 4 'rrhe politician doesn't
%ant To see the Federal Reserve sue
ceed, for he knows that it is taking
$40. 900 900 out of his hands. With re-
gard to the appointment of dirt
farmer to the board, / say that class
legislation cannot be taken into the sys-
tenn. The Government cannot so into
the long time credit business. and the
fArmer cannot be taken into the Federal
Reserve board. for it would be catering
VI Il StDtCldl CiiHS. nc
bloc consists of twenty lawyers and one
oil man.
Among those present were Edwin w
Fiske. Mayor of Mount Vernon Edwin
J. Gallien secretary New York State
Bankers Association Robert \. Pate
son. president of the Westchester County
Bankers Association: George :. Edie,
II. b. Vincent, r. G. Brewer. George l..
Lyon. John II. Fisher. Robert Haviland.
Edward NJ. Fielder George L. F'lan-
dreau, j. Crawford Stevens, c. S. Nc
Clellan. David Cromwell. Frank NJ.
Tichenor. Harry NJ. Carpenter, Justice
]. A. Mcrschauser. Justice Addison
Young. Daniel 2. Hays. Edward A.
Rawles and Edward J. Gallien