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BOARD OF GOVERNORS OF" THE FEDERAL RESERVE SYSTEM R-888 WASHINGTON ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD September 22, 1941 Dear Sir: In the Board's letter of Septanber 2, 1941, S-296, each Federal Reserve Bank was requested to advise the Board as to the steps that have been taken to establish and maintain contact vnth the various State Defense Savings Bond organizations and to furnish i t wit,h a brief statement each month of the activities of the liaison officer in connection with the Defense Savings Bond Program. The first replies to the above-mentioned letter have now been received fron1 all Federal Reserve Banks, and there is enclosect a summary thereof in order that you may be informed as to the part other Federal Heserve Banks are tak~ ing in connection with the Defense Savings Bond Progrc-un. It is our present intentior. to forward to you regularly surnrua.ries of the montl-'J.y reports of the Federal Reserve Bank liaison officers as long as it is felt that they may be of interest or assistance in connection v;ith the Defense Savings Bond Program. ~;;,·~ ~-(~.-~ L. P. Bethea, Secretary. Assistani~ Enclosure TO THE PRESIDENTS OF ALL FEDF.R.Al.. RESEHVE BANKS COPY TO LIAISON OFFICEP..S. R-888-a l.Od SU~~~ OF AUGUST 1941 REPORTS OF ACTIVITIES OF FEDERAL RESERVE LIAISON OFFIGERS IN CONNECTION WITH . DEFENSE SAVUmS BOND PROGRAM Boston Telephone contact has been made with the State Administrator for Massachusetts, and some publicity was arra.."lged for September 9, on the occasion of Secretary Morgenthau's visit to Boston. The Bank's liaison officer has offered his services to the Massachusetts Administrator in any w~ that he can be of help. Some correspondence has been had with the State AWninistrators in Con.YJ.ecticut, Rhode Island, Verm-:>nt, and r,1aine. No Administrator for New Hampshire has as yet been appointed. New York The liaison officer is taking an active part in the organization of the New York State Committee, his assistru.1ce having been solicited 'biJ the State Chairman. Letters have been written to the State Chairmen of New Jersey and Connecticut, offering the Reserve Bank's cooperation nnd expressing its willingness to help in ~~ w~ it can. W.~ile friendly and appreciative replies have been received, there has been no further development. The Bank's Research Department has been assisting the New York State staff in selecting and preparing infor.nmtion which is desired in formulating plans for the sale of Defense bonds and stamps. The Bank Relations Department has alsr) been of assistance to the State organizations in working towards 100 per cent qualification of eligible banks as issuing agents. Philadelphia The work of the liaison officer has been largely confined so far to dealing with emplqyers desiring information regarding pay roll deduction plans, businessmen who are interested in giving savings stamps as premiums, and individuals who are contemplating making regular purchasas for the purpose of building up a retirement fund. Some confusion has resulted from the fact that organizations have not been set up in Penns,ylvaniu and Delaware, and emplqyers who are instituting p~ roll deduction plans find it difficult to get in touch with the proper representatives of' the Defense Savings Staff in W~shington. In come cases, however, the liaison officer has been able to suggest pay roll deduction 104 -2- R-888-a plans for consideration and has assisted in editing the prelimina!"J announcer::ents. In addition he was in close touch with six large companies no7l operating pay roll deduction plans a.l'ld gave them help in getting organized. He was also of assistance in expediting the delivery of advertising material to the retail trade in order that merchants might have pro:r:;er displays for their s:~.v:ings stamp ca.rnpaign scheduled for the week September 15-20. One of Philadelphia's leading newspapers has inaugurated a plan whoreb<J its neY:sboys aro to sell Defense Savings Stamps direct to their customers. Every newsboy is to carry a supply of albums and ten-cent Defense Savings Stamps. Cleveland Ohio. Recently the State Administrator opened an office in Cleveland and tho liaison officer has discussed •'ith him the progress of the campaign in Ohic-. The Ohio Bunkers Association has been ver:; active in urging banks to qualify as issuing agc·nts a."ld the liaison CJfficer sends each week to the Secretary of the Associn.tion tb~ na.mes of queclified agents that have been added to the list. The Superintendent of Banks nus also been interested in this matter, and inquiries received from banks for information with respect to qualifying as issuing agents indicate that they have been urged to take this action by the Superintendent of Banks. West Virginia. Letters hav-e been forwarded to the State officials offering the Reserve Bank's assistance. The names of banks that have qualified as issuing agents are being furnished to the Cow~issioner of Banking in response to his request. Pennsylvania and Kentucky. No appointmen+.s have as yet been made in these States, but it is understood that chairmen and administrators will soon be appointed. Ricr.u'Ilond The State organization of Defense Savings Staff has been completed in only two States in the District, North Carolina and South Carolina, in each of which a State Chairman, State Administrator, and Deputy State Administrator has been appointed. In the District of Colwnbia, Virginia, and West Virginia, State Chairmen have been app)intod, but no appointments have been made of State Administrators and Deputy State Administrators. No appointments have been made as yet for Maryland. On July 30, Messrs. B. M.. Edw:::.rds and G. F. ~Ulton of the Treasury Department held a. mooting in Ricb..mond in the office of the Secretary of the Virginia Bankers Association for the purpose of selectine names of persons who might be invited to serve e..s members of the State organization in Virginia. The Bank's liaison officer attended the meeting and took part in the deliberations. 100 -3- R-888-a Richmond (Cont'd) Tho Managing Director of the Baltimore Branch arranged for 15 bank- _ ers and other prominent citizel)S from vari·:Ju.s section;:; of ~~itll"'Jl~nd to meet with Messrs. Edwards a.'l'ld Milton at the Baltimore Branch building on August 26, to discuss a State organization. The meeting was fully attended a~d the results of the conference were gratif,ying. As soon us the Treas1..li'y' authorized the Reserve Bank to releasG the names of qualified issuing agents, a list v:as prepared as of the close of business AuguEt 2, 1941, and weekly supplement8 have been iss1.led since 'that time. The liaison officer h&s communicated v!ith each State Chairman appointed in the District, offering tho fullest cooporation and assist~ce of the Bank and inviting him to call whenever ~e or members of his staff m~ have need for its services. The State Chairmen have been sent copies of the list of qualified issuing agents in thci~ respective Stutes, and supplements are being sent to them as issued. The list and supplemc~nts hnve also been sent to the Secrctar.r of each State Bankers Aasociation in the District as well as to State Banking Commissioners and others entitled to have them. Atlanta The liaison officer made seven speeches during July and August to civic clubs, b~~kers meetings and trade associations, to a total audience of approximate~ 600. The taJ~s dealt in general with the problem of Defense financing, emphasizing in particular the necessity for public support of the Defense Savings Bond Program. The Managing Director of the Nashville Branch also addressed a group of about 150 members of the American Legion during August on "Why We Should Buy Defense Savings Bonds". The Reserve Bank has cooperated with the Georgia Administrator in special publicity for the promotion of bond sales, and the officer in charge of the Fiscal Agency Department has been photographed in the local press together with the Ad1ainistrator as. selling savings bonds to various fraternal organizations. A considerable volume of telephone inquiries from the general public have been answered by the liaison officer c.nd other officers of the Bank, regarding various questions relating to Defanse Savings Bonds. F..xplanations have been made to several business concerns rogarding salary deduction plans. Lists of qualified agents have been furnished to Bankers Associations and Building and Loan Associations that arc engaged in urging possible selling agents to qualify. The Reserve Bank, by telephone calls, personal visits and letters, has been in touch with tho various State Administrators in the District o.nd has volunteered its servj_ces, but no attempt has been made to press such J.Ub -4- R-888-n. Atlanta (Cont 1 d) services on the Administrators, leaving to them the determination of when and how the Reserve Bank can be helpf\ll. The Reserve Bank has been cordially received in every instnnce. Chicngo The liaison officer is sending a letter to each State Administrator in the District, with the exception of Illinois and Iowa, extending his cooperation in connection with the sale of Defense Savings Bonds. The Illinois A~~ini.stratcr has his office in the Reserve Bank building and is seen daily, while the Iowa Administrator has not as yet been appointed. A number of conferences have been hc~d with the Illinois Administrator, Rnd the Reserve Bank has supplied him with material,and literature to help hiu1 in his vwrk, but t.he stc.tus in the case of the other Stutes is that of just ngetting acqunintedu. St. Louis The Reserve Bn.nk has written to the State Chairmen and State Administrators, offering its cooperation and asking whether there is anything that can be done "bJ the officer::: and personnel of the Head OfficE:: or its Branches to assist in Defense Savings Bond sal·~S. The liaison officer intends to visit the offices of the Def8nse Savings Sb.f'f of each State in the District in order to pror;1ote closer relations, obt:1in firsthand information as to the work being done, and to coordinate the efforts. Lists of qualified issuing agents have been furnished to bankers' associations, building and loan associatLms, and others ~ntorested. Material has been furnished to an officer of a l,;cal bunk who was asked to address an organization on the subject of Defense Savings Bends. A request has been received f()r someone to address a convention in St. Louis on the same subject, and a speaker will be supplied. A number of firms ha-..re inquired about the pay roll deduction plan, and informatiun in regard thereto has been furnished. A pay roll deduction plan has been instituted for the Reserve Bank's employees .. The American Bankers Association's Defense Savings poster has been reproduced on the cover of the Bank 1 s "I,lonthly Review of Conditions", and consideration is being given to including in the "Monthly Rwhw 11 periodic information relative to progress in Defense Savings Bond sales, as well as reproducing additional postars on the cover. The err.ployees 1 mGnthly publication, "Four-Fuur News", has been sprinkled with reminders to buy Defense Bonds. The weekly "Field Organization Ncv;s Letter", issued by Defonoe Savings Staff, has proved very interesting and helpful. These letters are being studied with a view to compiling plans that can be utili:zed by various organizations. -5- R-888-a Minneapolis The Bank's liaison officer cm:tacted the Chief national Banl~ Examiner and the superintendents of banks in all States in the District, except Montana, and prevailed upon them to issue letters urging all bmks lUlder their supervision to qualify as issuing agents. Ever;y officer of th.;; R0sc;;rve Bank lent his support in such oases as banks offered objections ann the results were gratifying. A dafinite method of proc8dure has been established to interest emplcycrs and employees in a salary deduction plan for the purchase of Defense Savings Bonds, as follows: The liaison officer prevailed upon the Life Undorwritors 1 Association to appoint a pormancnt committGo to handle tho solicitation of employers and to follow each case to its conclusion. This committee picked 50 general agents, managers, Qnd top-flight producers who were chosen because of their long elCporience in contncti.rlg the ei,,ploye::· cb.ss, their perfection in selling, and their trained persistence in accomplishment. The group ·:ms invited to a lmwheon at the R::s0rve Bank o.nd was addressed by the Reserve Bunk's President, who emphasized the Trc::.:.1.sur:r' s edict that there should be no high pressure salesr,mnship. The he::1d uf the Minnen.poli:;; Comrni ttec also spoke and the Chairman cf the life insurance agi:mts 1 committee presented the dete:ils of the plan. 1. 2.. The Reserve Bank is holding a s..::ries of luncheons to which are invited the heads of all conce:ms employing a sufficient number of employees to make the salary deduction plan worthwhile. The practical, economic and patriotic backgro~~d is explained and the salarJ deduction plan laid before them. Each emplO'Jer is requested to sign a card designating the man in his organization to whom the salary deduction plan may be presented in detail. 3. The Hcserve Bank agrees to prepare letters on firm letterheads for the signature of the president of each compa.11y, directing the attention of emplO'Jees t::> the desirability of the bonds. The na.i'TlO o:~ each employee is to be typed on a pay roll deduction order card. The Press indicates full support of the salary deduction plrm and ho.s been present at the preliminary luncheons. While the pla..~ is entirely experimental, if the <:mthusiasm n.ncl. cooperation to date is any indication of the outcome, it is believed it will have mr.rke<l ~:uccess. If successful in ~\Unne apolis, it may be established in other largo cities in the District. Kansas City Contact has been established with Defense Savings Bor:d organizations in Colorado, Kansas, Misi3ouri, ·New Mexico ::md Oklahom~:., and they havo been advisvd of the Reserve Bank's deoire and vvillingness to cooperato with them in 1.08 -6Kansas City (Cont 1 d) connection with the Defense Savings Bond P:::ogra.."'l. No advice of the appointment of State Administrators for Nebraska or Wyoming has been received. The Bank's lir.ison officer has been working closely with the local Defense Savings Bond Committee and with similar co1mnittees in Colorado and Kansas, and information, supplies and assistance has been furnished as requested. Lists of qualified issuing agents have been furnis!.ed weekly to bankers 1 associations and to others interested. State Ba.."lkers 1 Associations ru1d the State Bank Commissioners are cooperating active~ and it is hoped that a more satisfactory showing of State Banks qualified as issuing ag~nts may be reported in the near future. Dallas Irnmcdiately following the appointment of the Texas State Administrator the Reserve Bank's President contacteu him and offered the services of the Bank in carrying on his work. Subsequently, the President attended a meeting of the Dalla<> Clearing House Association for the purpose of discussing the manner in which the Dallas banks :;w. y participate in the sales program a..."ld be of assistance to the State Administrator. The Bank's liaison officer hns contacted the State Administrators in .all States of the District, except Louisiana, where no appointment has been made. The liaison officer hr;.s v.lso c,::mt~ccted :-:m officer of a Dallas Bank who is representing the American Bankers' Association in its efforts to promote Defense Savings bond sales in Texab. W~b.ile the Reserve Bank hc.s tc::1dered its full cooperation to the State Administrators and to the A.B.A. representative} it he.s not yet been called upon to render a...TJy service or t0 P'-~rticipate n.ctively in the Sf'..les program. San li'ro.nciscc- Tho liaison ,;fficer is now enr;'lgcd in compiling the roster of personnel of the various organizations estublished in the District. It is the intention to maintain charts of each State's organization and personnel of all collt'Ilittces. Inquiry is being made through tha proper chnr. m;;ls regarding the professional and business antecedents of appointees, as it is believed that ·the importa.."lce personu.lities play in activities of wide scope make it very desirable to be aco:uuinted with those participating in leadership. No official notification has boon received <jf appointments of State Chairmen, Stnte Administrators, or Deputy State Administrators for California or Uta..~.
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