New-York tribune., 1922-01-18
Senate Votes to-
Put Farmer ON
Reserve Board
compromise Bill, Backed hv
Agricultural Bloc and
Harding, to Raise Mem
bership to 6, Passes. $50
Limit Ps OH BUILDINGS
Hettin Charges $50. coo. 600
Structure Plan Here Is Cow
cred With Graft Suspicion

-. = ~ (tAC wv AVVII
WASHINGTON, Jan. 17.-The first
step to bring about farmer representa-
ton on the Federal Reserve Board WAS
taken by the Senate late TODAY in the
passage of the Kellogg Smith compro-
mise bill increasing the boards ap-
ro'ntive membe ership from five to six
and providing that the agricultural in
tcrtsts shall have q spokesmsn amonr
them The vote was 63 to 9. Seven
OF those who opposed the proposition
were Republicans and two Democrats
They we're:
Pomcrcne. Ohio, and Williams. Mis-
slssippi Democrats; Rrandegec. Con-
necticut; Calder, New York; Edge. New
Jersey; keyes, New Hampshire; Nc
Lean, Connecticut: Moses, New Hamp-
shire. and Wadsworth, New York. Re-
publicans
Restriction Placed on Building
BY the bill, which constitutes an
amendment to the Federal Reserve act
the limited designation Of the law is
wiped out and instead of the specific
provision for the naming of two bank
ers to the board the statute. if agreed
to by the House, will direct the Presi-
dent, in making appointments to the
! board, to have due regard to a fair
representation Of the financial, agri-
cultural, industrial and commercial in
terests and geographical divisions of
the country" The measure also pro-
vides that hereafter no Federal Re
serve Bank may enter into q contract
for banking homes, if their cost is TO
exceed $3.50. 900, unless the consent of
Congress is first given.
There were many attempts to change
the compromise, but all save the
amendment restricting construction, by
Senator Harris, Democrat, Georgia,
compromise, which bore the approval
not only of all the agricultural bloc
leaders in the Senate but that of Pres
dent Harding as we'll, held fast
throughout.
Senator Smith. Democrat. South Car
olina, who first offered the specific
provision as to farmer representation.
Withdrew his amendment and called
upon his Democratic colleagues to sup
port the substitute which he declared
to be adequate and to meet all de-
mands.
Word From White House
While the Senate was moving slowly
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
armer member. He had previously in
dicated disapproval Of the original pro-
posal and the compromise measure re-
suited.
Prior to the vote. there were sew
| eral hours of heated debate in which
! Senator Glass, Democrat, Virginia, for
mer Secretary of the Treasury and one
of the authors of the reserve act, de-
tended the system and the board ana
criticized Senator Hef1in, Of Alabam~,
also a Democrat, for the latter's fre-
quent attacks on the board.
Senator Mclean, Republican, Connec-
ticut. Chairman of the Senate Banking
and Currency Committee, which was
overridden by the acceptance of the
substitute bill also defended the board
but assailed extensively those who, he
said. we're going ahead deliberately, to
"fool the farmer" He declared that
the solution of the present economlc
situation lay not in "cIass leglsiatlon'
but in return of the people to working
and saving.
Hefiin Scores Building Plans
Mr.. Hehin declared that board
which would permit orders to go out
for the construction of bank build
ing like that proposed for the New
York Federal Reserve Bank, and which
is to cost around $2o,000,000, was "cov-
cred all over with suspicion of graft
He declared the American people were
ain no humor to fool with those fell
lows" making up the Reserve Board,
adding that it would be great bless
ing if they would "get out so we could
put others in who arc not dominated
by Wall Street."
Opponents of the measure, headed by
Senator Mclean, made an attempt to
stave off its passage just before the
final vote by moving to send it back
to committee, but this was defeated, SO
to II.
Senator Harris, in addition to the
CONTINUED on page three)