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. ,, I X-3409 August 1, 1922. Subject: Economy and Efficiency in Feder3.l Reserve Banks. My dear In connection with the matter of improving the operating rhethods of the Federal Reserve Banks with a view to securing greater economy and efficiency, I am writing to say that it is the opinion of the Board's committee, after a further and thorough consideration of the problem with the Auxiliary committee of the b;mks on economy and efficiency, that the largest and speediest results in promoting economy and efficiency within each of the Fed8r.ll P.eserve :Banks cw at this stage still be obt::tined through continuous and active work by the committees on procedure, or on economy and efficiency, that have been s.;:t up in each of the banks. In order that the :Board 1 s committee m:::ty be l::ept fully informed of the work being done by the committees of the baru~s, you are requested to Lu.ke a ra_c)ort on behalf of the corrr::li ttee of your bank showing the lines along which it is proceeding, and stating the results which have been accomplished to date. In this connection, we also wish to be informed whether your procedure committee is making a thorou6h review of eacl: department based upon a predetermined program, or whether it is dealing only with '-'lfhat appear to be the more obvious problems and matters requiring attention. It is our expectation that in prosecutin 6 ita '.vork, your committee will develop some improvements or ~odifications of operating methods which should be of value to oth9l' Federo.l Reserve Ib.n:::s. Any such improvements should be promptly reported to the Committee on Economy and Efficiency of tha Federal Reserve Bo,::crd in order that they may be passed on to the other banks. The Board 1 s committee will o.lso welcome any suggestions that may be offered ~vith raspect to improvement or modification of operating organization or rr.ethods affecting the Eeserve Banl:s as a whole. The comrrdttee would like to be advised of the policy your bank is pursuing with respect to reducing the number of your employees as the volume of business of your bank declines. Specifically, it would like to be informed whether you are retaining employees now in excess of your operating requirements in the expecto.tion that their services ·.vill be needed in the future, or whether you are releasing them, and if so, on what principle you are proceeding. ~ .. ~ -2- X-3439 The committee desires for its information a list of the members of your committee on economy and efficiency, specifying the chairman of the committee and the position in your bank occupied by each rrember of the committee. The Board's committee, in cooperation with the Auxiliary committee of the banks, is devoting continuous and systematic study, not only to the comparative operating costs of the several Reserve Janks, but to methods of oper~ting organization and detail affecting the banks in 6eneral. These matters will be made the subject of special letters at a later date. Believe me, Yours very truly, Chair~~ of the Committee on Economy and Efficiency. To the Governors of cll F .R.:JanJ:s Copies to all Chairmen. ~ '"· ~
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