New Britain herald., 1923-01-31
MILAN IS UPHELD
 IN SENATE FIGHT
Federal Reserve Amendment Goes
 to His Committee
Rf aRoRaH '. MANNINa

Washington. Jan, sl.-Ailer a des- nli0rN but bitter eontesi extending
 over three days the senate yesterday
 solea 10 uphold senator George r,
 Mclean sf Connecticut. chairman or
 the banking and currency committee, l in his contention that an amendment offered ta fhe Federal Reserve Aet
 bg Senator hefiin Of Alabama be re- l ferHed to his committee instead C. 70 inc agriculture committee, as pFor rided in Ar, Heiiln's molten
 The senate also voted As to Fl
 against Senator Haflinis motion 10 direct the Committee 10 report the amendment hack 10 the senate within
 five days, Ii was a decisive vote Of confidence hy the senate n the ialfs ness and integrity of lhe banking and currency committee which had in' sisted that all banking legislation be referred 10 il and opposed being hafs assed with provision for nasty eon- sldeFali0n,
 Senator Hetiin's amendment, ad- milledly meritnrious. would repeal tho power of the Federal Reserve hanks 10 charge q progressive rate Of interest nn loans such as resulted in tho Atlanta Federal Reserve bank in 1890 charging rates ranging np 10 gTs ner cent interest on some loans made to n national bank in Alabama.
 II is clear matter of record that l during the period of financial de- nation in iss0.ei the district Federal Reserve banks in Atlanta. Dallas, Kansas City and at. Louis charged rates of interest ranging np 10 s7 ia per cent. The nsurs be- came so notorious that early in 1921 | the practice was stopped and steps were taken to rebate all interest charges collected at over i2 per cent.
 Senator Hefiin has repeatedly and 1t has not been denied, that while the struggling farmers Of the south. verging on bankruptcy, were being charged these extortionate interest rates the traders. spectators. and financirs in Wall street were pay Ing only and per cent.
 Senator Mclean did not oppose the amendment nor was opposition to it voiced by any member of his com nittee. It seems that all the bank ng and currency committee members 'avor it, although they contend 1t is , bedause rules were ldopted by the banks two years ago the progressive rate of interest. Senator Mclean insisted it vas an affront and insult to the com nittee to insist that the amendment o to the agriculture committee.
 he ic hronic or referring bills to com- II nittee with an eye singly to the of the committee to the measure 1 think we may all feel it H sill demoralize our whole legislative rocedure," declared Senator Mclean 'hen Heflin first proposed his amend : nent. This bill should go to the q anking and currency committee. f; ills are being referred to the com- h littee on agriculture that should go ss ther to the committee on finance |. F the committee on banking and vf lrrency. They are reported out le next day If the senator is right n,
 his position, the only thing for us ..
 do is to abolish all the standing na 'mmittees and appoint each meI,- p pe 1T of this body committee to re- as ,rt out his own bills. That is what ses will lead to if the habit becomes ~, ,S .., ,n The principal speech against the ... ef1in proposals was made by Senator 1.' ,' arter Glass of Virginia, democrat ,ia ,a ho was secretary of the treasury V lring part of the time the usurious uo tes were charged. ea Senator Glass asserted that the ogressive interest rate was put in ~ rect only hv +haso eaaonat - sic stricts that asked for it, Atlanta, ou ansas City, Dallas and St. Louis, so sla at the charge that it was put in uo .ect only in agricultural districts by gr' 0 federal reserve board was mis- ae ading. 1t had not brought about pa hatlon, as charged, said Mr. Glass, lh' It on the contrary had brought pu out a better distribution of redis- unts. DO Il think it is time, for the mem- col ITS of the banking and currency tht mmittee to understand whether pro ey are under suspicion" declared cal nator Glass, "or whether they are CT
 be perpetually offended here by tin wing measures which properly Pc me under their jurisdiction re- vii rred to some committee that has vii thing whatsoever to do with the ab' arlts Of the proposition advanced" inc
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