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J^ffice Correspondence Governor E c d e s From__ FEDERAL RESERVE BOARD Date_ July 12, 1935 Subject:. Lauchlin Currie Attached is a batch of letters for your signature. Two are addressed to the Chairmen of the Federal Reserve Banks of Chicago and Cleveland, and the other four to presidents of nonmeraber banks. They are all in connection with preliminary work on a projected "white collar" study on the ownership of deposits, and have been read and approved by Mr. Goldenweiser. I am sorry to have to bother you with these things at this time, but we felt that personal letters from you would be the best way of ensuring cooperation. July lk§ 1955. Mr, W. H, Fletclv | , Acting Federal lesc-rvc Agent, Federal Reser |. of Cleveland, »l&nd, Ohio* Dear Vr. Fletch rj The eaoloeed letter is, I think, ^clf-c plsn&tory. X should be very grateful if you veuLd have ribbon copies stede antl *ddre»« the«f under your signature, to the following! Kr. R. B. TullO86, Pr oident, Fir^t Satioasl Ben-: an Compaay, •pringfield, Ohio. Mr. H. E. Frfceaan, I L&gonda N- tioaal Bank, Springfield, Ohio. it, Mr. J. M. B^eler, PrFirst latioiial Bcnk snc. Tri.t Hanilton, Ohio. Mr. C. . » Gete&rt, Presidentf !• Sec tion&l &enk.t Haailtoa, Ohio* I should also be grateful if you would send replies or copies of replies to ae &s soon as you receive thea. Sincerely yo. , Marriner S. £cdes Governor LCjem •in -.. ' ixxg mplojfmat for * iit- • collar* • on iat afl li*f roll • Oa* of :i . .. I year.* I t 1 ffslt thft/. tbt a tut : / sdU;ht y i 1 . igalfie&at for the later?: ~ Loa of oariilt x>li Io- been ten Cov-rar Ecci co«anttio*t :o* ecc«f« to t i n ai.: 9 vtastht i you think :hct be; 5t-l«ct . ;lta or< f ated & as * » eaa •.- th • who v< ,'*»» O6t«orthy to your deposit 1 aw.y b?i.r# b»en fore* • I or « >loy no* r to you -m -loya b »n obvious ® to *• i i e of • highly &ct •;', i t dkwri««'. s t a t l A i - j w r that the oaiy p<«r. o Id • I ' . I iar<* &f».i'i*t leakiv • I t v, K n<?«#e?swary to telnet c lcno..n to trust irt4U Gov roor Ecd«fr «l«h a as co—nfa a*f/!\. o I p t0 >lo3T»«» • r o < hy co«p©t'-n a abera o ^»wnm1 y «^ i n un M M i l M a- n o »:o ••cu'i;s n -y:;v ' i t.i.<w which Li i I I v-d a Import* n . Xc 7 July 12, IMH. Mr. Van Vechtsn Shaffer, Guaranty Bank and Trust Coapany, Cedar R&pida, Io®a» Dear S i n The Federal Reserve Board h&s b«en invited to submit ajjllcationa for pro; mder the %orks r l i v the purpose of prosecuting studies of a deeir&blfc char&cter while at the same iiae affording loyaent for "white collar* worker relief rolls. One pro ill L* being investigated in a saaple stiw1/ af the distribution of ownership n tcl chaoses la such ownerff ship in the critical years 1928-52. There is at present ao information on t :bj*et nd it i felt th iai,_ht yield resultc ••iifleant for the interpretation of business conditions and, therefore, for the foroulftion of credit lour bank has been tentetively selected ex one which it •ould be desireblr: to iacl.ue in U M saaple study* Since the investigstion would require access to the deposit 1 »i the selected beaks, I wish to inquirt- whether you think it would be feasible for you to cooperat . The Board 1 na.1 before it can a&ke any coaatita nts in initi&tiag iject it auct first secure sosie aBsuranccs of cooperation froa L ,-cted bfinks. Th i ic request woxild probably aaouat to something like d M k oi- co i r : pace for two clerks who wo^ld have access t to your deposit ledgers &nc credit files. Th at has occurred to •8 that you m&y have been forced to lay off capable *nd trustworthy clerks or bookkeepers whom yo lad to see usef lly otyloye•.-. Any such fonaer emjloyoet o^ your b&n ; r bookkeeptri or ©ccountanta in your coiaauiiity aow relief or til In ri.eeive oa.oloyaGnt froa the Federal worka progrtoa, whose discretion and integrity is known to yo-i > &n o1 vi e i>.nd ha. ;py choice for all cone Since the itt.rivl to be stu :\ly co| ial characti-r, it la plann - : of court, to deidse statistical ,, .es which sill preserve this confidence. It is p e schedules in cuch a aannt-r tie ; the on I that wo .Id see the n&mes I b nks* urith the cch dules of dollar aaounts would be the original iseribing I • In order to safeguard &g&inst leaks at this point it wo /Id be necaseary to select ca.^able clerks that aould bv kno^n to aad trust*d by the b&ok or banks entered* L project to your attention as a ac^ae of aiding a bers of Mr« ¥&n Techtea Shaffer -2- your co launity now in unfortunate circumstances, as well as a meant of frosecuting an iovc^tig&tion which it is believed M be 01 vfilue and iaporttace? I very truly, •arriner S. Eccl- L Qovrnor LCjem IL July I t , USI« Hr. I, It* Sterens, Chairmen, Federal Reserve Bank of Chicago* Chicago, Illinois, P*ar Mr. Sterenst The enclosed l e t t e r i s , I think, self-explsn^tory, I should fca Ter. grateful if you wo :lu have rit-bon co.>i I au,o-.-. id address thea, racier your signature, to %he following! F, B. Bsrnerd, P I a t , Mt-rchtatE Bation^l B&nkf Miancie, Indiana. F. B. Bose, Her. Trust and liuncie, Indiana. Co,, ?.. Coquillette, Bercheats Metions1 B Cedar Bapids, Iowa. Williaa Barnes, J r . , Citizcni. fcUonal Beak, .r, I l l i n o i s , 0. B. Gorin, fg tf Millikin I s t i o m l Bs.nk# Decatur, I l l i n o i s . H. R. Gregory, President, The Matioaal Bsnk of DeC£.turt Decatur, Illinois* I should also be grateful if you would send replies or copies of replies to ae as aooa as you receive them. LC:em Sine r ly yourst Harriner 6. Eccles Th F dev \ Bourd has been invited to submit for pro. . Ml o I for th< pur.? a utlag studies oi t the iat affording employment for "unit collsr* s-orkt on. th relief roll,?, Otte proj ct i ili 1 . ted is a sample stucy of a the distribution of own.r^hip a • th ch m s la ^ueh ••• Lf in the cri' . t*t 19*~8-S2» Th .."orar-tioa oa t ;bj«ct mm it i. felt that . M ^ sight yi 1 dts .igBific&at for the iattrprct. tic , or , forwilation of crtdit polid . lour bfcnle has been teni u one which i+ be desirable to tl sompl , ?e been s.sked by GoTeraor B e d to cosaraBicate with you. Id '.JC6B8 tu t ,J:ril 1. , I i;h to li e whether you thizsi it &sible for you to coopersi . tfeftt before it caa aske tay cooaitaifcar. in initiating thi it B U S T sooc assureaces of coo,) ratios froa th selected 'basks. Thi r c i -obsbly aw mill to nosiethiag like desk or count r pi-ce for t«o clerk; who we access to your deposit 1 . I t hr 'a*t you ««y hs.ve been forced to l&y off capable and truetwon or bookkeepers *hoa you is; .ud to & s . d« Any ^ach forner f*ploy*:es o.' yoiir bsak, or oth.r bookkv t ia conataity nov^ r:-ceivi?i It i i to rt-c i¥e ea>loym^ nt froa th; Federal works e discretion and iai known to you a obrious am iee for all c , ^d* Since the mt.t rial to is of a highly », it la plf.na , oi c c r s t , to derist st&ti, «hich v ice. It i pto code schedules in such n r that toe only a I :I | if tht I f oules of doll.r f.aouati wo ;al -cribin^- cl.Tfe, In order to safeguard against 1 t thic point it m ce&sary to eel ct capable clerks that «oulc be known to snd trusted by the bank or d. Governor Eccles wishes «e to recoaaeac to /our ettenl as a seams of aiding ct>? f nploy e. or oth • r trutworthy • coapeten a--*b«rs of your c o m w m i t y nov. la um'ortunt ti circuit: , as vail a s a »•«&£ oi pro • cuting am. inv d c h it i beliered :.n. import.-nce# loar very truly # July 12, 13 5, Mr. Prank C. Belch, President, P^ople,s Savings Bank, C tic , Iowa. Dear Sirs The Federal Reserve Board has been invitrd to -.ubmit ap cation for p ojrctt under the works relief program for purpoiK or pmnmtliig rtmdlea of a deelrablCe cflfcrf.ctrr while :ie same time affording employment for •whitJkjoller* wor now on the relief roll;. One project whotc f< ity is inve ti^fitvd is a s&mpl y of th -ibutioii of oo n th cbxn 8 in such ownership in the critical ir If ljiH« T :;t no infora ;io:i on this tubJ-.ct and it tuoy mi^ht yield results signifies nt for the interprets-ioo of business* c:.editions anci, \ for ;mL "Az:•; o credit policies* lour bank has been tentv tivtly selected as one which it .o..'Id be desirable to Ittftlada ia tae sample istudy. Since the investigation would require access to the deposit 1 of the selected banks, I wish to in ,ui e whether you think it o Id be feasible for you to coop :< te. The Board i *r ytt before it can make any coiaaitatni „ in initiating thie project it HI first i ecure some eesursnees of cooperation from the selected banks* The ; > cific renuest m obably amount to something like desk or counter space for two clerks who wo^ld hrve access to your epo it ledgers bnc credi* . . The thought has occtxrrsd to ae that you may have been forced to l*j off trustworthy c or bookkeepers whosi you wo da be glaa to see Ubefully employed. Any ^uch former employees oi your b&nk, or ot bookkeeper;? or accountants in yoar coramaaity now receiving relief or liribl o r^coive eaploym n :ro ; th« F^d^ral works program, whose discretion and integrity i. known to you bt an obvious and happy choice for all G the raa t ri^l to be stuaied is of a highly confidential character, it i plann , • ~ , to dev ^tistic^l schedules whici; will preserve this co-ifidence. It ii motmlbla to code schedules in such a m ,ha.t the only persons th wo 2Id §mm tki n&mes of the banks1 era with the schedule* •f dollar amounts Nttld be th; oiiinal transcribing cl rk;i# In order to safeguard agninst leaks at this point It would be ntcei-S>ted Ir. Franfc C. lelch -.- Jfc.y I recommend thi. project to yo ir attention as a Means of aiding capable former employees or oth; r trustworthy aad coapetent **:ab*rs of your co^iuaity now in wfortunate circi stances, ae well as a m cuting an isreaiig which it i believed wouic be of Y&l importance? V*rj truly, •arriner S. Eccle« C 3 raor kv LC:ei July 1935. Mr. Henry A* Rentachl r, President, Citiz- as Savings Bank and Trust Cosp&ny# Hamilton, Ohio. Bear Sirt The Federal Reserve Board has been invited to subait applications for projects under the works relief prograa for the purpose of prosecuting I of a de; character while at the n a e time afi employment for "white collar* workers now on th relief rolls. One project whoce feasibility is being investigated it- a s&apl-of th? distribution of avjsarship of deposits ant, the changes in such own -r«hip in the critical y - •:. 19tfxtti Til • i. ;:i priiw»Jft 10 i:rorv 1 Ic: on tall •Ob• ject &n felt that th yield resuite sigaificent for the interpreta ion of business conditions and, therefore, for the foranlfctiou of credit policies* lour bank has been tentative! eted as one itoieh it would be desirable to include la the saapl fm Since t*ie investigation would require access to the deposit ledger* of the selected banks, I wish to in uire whether you think it wo Id be feasible for you to cooperate. The Board feels that before it can sake sny coaaita nJ in initiating this project it aust first secure sotte assurence8 of cooperation fros the selectei banks* Th;, p edLfio request woald probably aaotmt to soaething like desk or count r opece for two cl*rkH who iFOuld h&ve access to your deposit ledgers and credit fU«a. oght has occu to ae that you asy have been forced to lay off capable and trustworthy c or bookkeepers whoa you would be glad to see use* full taployed. Any such former eaploytes of your btnk, or othtr bookkeepers or accountants in your coraaunity now reaeiving relief or eligible to receive eaploynent froa the Federal works pi^ogrta, whose discretion and integrity i knona to you would be an obvious and happy choice for all cone rned» Since the arterial to be character, it i pinnn u f oschedules which will preserve to cooe schedules la such a a IL studied ie of a highly confidential a rse, to devise statistical this confidence. It i; p isible nn.-r that the only persons that Hr. Henry A. Seatschl r would see the aaaes of the banks9 OTnt—M with ths schedules of dollar a«cmnts WOMII! be the original transcribing el rk£. l a order to safeguard agsinst leaks &t t h i s point i t *o -1 b nec%& < to select c&pable di-rks that would be kno.n to &ad t r u s t d by the bank or banks &* •ay X recosBB€n<i this project to your atteatloa as a of a! capable for*«r ea^loyeeg or other trustworthy eovyetent memberi, of ytrar co^aaaity aow in unfortunate c.t i jutiog an Lnv t MM well as a aeaa which i t in believed would be o: r&lm «nu iaporteneet Ic -y tr«Iy t i a r r i n e r S. Sot Governor LCsem July 1; , 13'5. Mr. J. L. Prochaska, Pre-ioeat, United State Bank, Cedar Rapio; , Io- • . Beer Sir* .• Th Federal Reserve Board has been invit d to eubeit aprpliLom* for proj cto under the works relief program for the pur ir ble- tarnrootor while at the same time affording employment for "white collar* workers now on the relief rolls. On . la being d is a sample stucy of th. distribution of o».-nc.r.:;hip o ItfMlti and Q H otoag«Ni in such o - hip in the critical years 19£8-52. T: ^formation on t.iis subject anr it it felt that the i<tfcd.y night jlald results signififor the iat^rpretttion ol business conditions and, ther i , or the f orsul£': ion of credit pol Yo<ir bank aac one which it would be desirable to incl ;de in th seaple i-tuoy. Since the investigation require access tc B ers of the selected banks, I wish to inquire whether you thiak it would be feasible for you to . Th Board feels thmt before it can make any eosaMitmt nt - in initiating t j e t it s fir. assurances of cooperation from the sel^c-: banks. Th •p ci- i: request wo 3bably amount to something like desk or counter imtM for two clerks who would nsve eccto your deposit ledgeW MMi CJ . to me that you may have baen t bo lay off capable and tru worthy olerkj or bookkeepers whoa you would be glad to s e fully emplo. . lay aeh fora^r eaployeos o; your bank, or ot;. bookkeepers or MiMHtoBii in your cosiaunity now reeeiTi _Ief or eligible to receive employe :o» the Federal works program* whose discretion and integrity is k n o m to yon would be an obvious and happy choice for all concerned. Since the mfct-rial to be studied is of a highly confidential character, it ifl planned, of co'jrse, to derib-: ^tatisticeil schedules which will ^W'upoiio ^hi 00 iidence* It i: pc to code schi dulcs in such a Jtenn^r that the only persons ILE Mr. J. Li. Prochaska, would see the at-mes of the bank** customers with the of dollar tmouats would t* i i inal transcribing clrrke. In ;uard agi inst leaks ^t this point It woulc be n cess* ary to t ble clerks th&t would be kaovn to and trur' by t Ife;- I r I M H . c ii proj-ct to yourfttteatlonfesa «e&as ; of *i capable former employ c orthy tad competent aeabers of jaour comauaity now In uafortuatte circ\i»:cea, as well as a means o£ pm -ig an ion which it %a believed we taperta&ett lo Governor LC:em