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W. P. G. HARDING, GOVERNOR
- - - - , VICE GOVERNOR
EX-OFFICIO MEMBERS
.
ADOLPH C. MILLER
CHARLES 5. HAMLIN
WILLIAM G. MCADOO
SECRETf~Y-•OF THE
TREASURY
~··
JOHN SKJ.,:.Li , ·• WILLIAMS.
FEDERAL RESERVE BOARD
COMI'TROLLER OF THE CURRENCY
WASHINGTON
J. A. BRODERICK, SECRETARY
161
L. C. ADELSON, ASSISTANT SECRETAilY
W, T. CHAPMAN. ASSISTANT SECRETARY
W. M. IMLAY, FISCAL AGENT
ADDRESS REPLY TO
FEDERAL RESERVE BOARD
X-1216
SUBJECT: Cl.ASSIFICATION AND
REGrSTPjNTS
UNDE~
REJJ.ASSIF~CA'I'ION 01;'
DR~FT LAW~
T!ffi CELECTlVE
Dear Sir:
For your infor.mation there i~ enclosed herewith copy
of letter from this office to the Provost-Marshal General
submitting certain questiona and photostat copy of reply
received, both of which explain themselves.
From inquiries received and complaints filed with
this office by several banks it appears that the interpretations
given to tha rul5ngs of the office of the Provost-Yarshal
General by the local or district boards have not been entirely
uniform and that in son:e instances bank employees who were
originally given a deferred classification on other grounds
than that of their employment have had their defe rr·ed classification withdrawn under regulations dated May Z.3Jil918: and
generally referred to as the tJ!Nork or Fight" rogu.J.ation3.
Thii3 although the Provost-Yarshal General under date of July 5,1918 1
ruled that bank employees were not 3Ubje~t to reclassification
under this order.
The forces of the banks have already been materially
depleted by the loss of registrants between the ages of 21 and
31. Under the new selective draft law which extends the age
limits so as t~ include those from eighteen to forty-five 1 inclusive, it is of course obvious that aome steps must be taken
to secure deferred classification for those employees who are
vitally necessary to the successful operations of the banking
business.
With the constantly increasing demands made upon the
banks a further material depletion of their forces would render it difficult for the banks to perform the services required
of them by the United States in the present .emergency.
X-1218
-2-
1 .
~bile the Federal Reserve Board, of course# realizes that
the officers of the Federal reserve banks will not desire to
ask for deferred classification for employees who rray be spared
to enter the military service., it is of prilne importance to our
Government that its fiscal operations conducted through the
banks shall be maintained at the highest standard of efficiency
and to this end that all necessary steps should be taken to
procure a proper classification of neces3ary employees in
accordance with the letter and spirit of the selective draft
act and regulations of the War Departttento
To this end it is necessary that some uniform practice
should be adopted by the several banks in presenting claim for
deferred classification and that the regulations and rulings
of the War Department which spacifically affect bank employees
should be called to the attention of all local boards.
The accompanying memorandum which suggests a rr.ethod of
procedure to be followed has accordingly been prepared for
the information of the officers of Federal reserve banks and
member :banks.
Respectfully~
Governor,
•
The Chairman,
Federal Reserve Bank,
:162
..
X-12lP <::.
COPY
FEDERAL RESERVE BOARD.
Major Getleral E.H~ Crowder,
Provost ~~rshal· General~
War Department 1
Washington, D.C'!.
S i r:
Receipt is acknowledged of your letter of September 6~
addressed to the Secretary of the Federal Reserve Board, and
which relates to a ruling reported by the press as having baeD
made by your office to the effect that bank clerks nay be given
a deferred classification on the ground that they are engaged
in an essential occupation or employment ..
You state that your office has not ruled that employees
of banking institutions as such are entitled to deferred classification.
The Board understands that bank clerks as a class are not
by reason of their employment entitled as a matter of right to
a deferred classification, but has understood your previous
ruling to be th~t where a bank clerk has for other reasons been
given a deferred classification, it is not necessary for a local
or district board to reclassify him under what is knowa as the
work or fight order.
ll
As pointed out in previous correspondence with your office#
the forces of the banks have already boen materially depleted and
the officers of the banks are endeavoring to replace as rapidly
as possible those who have been called under the selective draft
law with women or with men who are not of draft age. It is
difficult at best;however, for the banks to maintain~ force
sufficient to meet the demands made upon them in the ~resent
cirournatances and, since the age limit has been extended so as to
include most of the officers as well as the employees of the bank,
the problem of ~mintaining the banking forces has becorr.e an even
more serious one•
~~ile there is no desire on the part of the Federal Baaerve
Board, nor of the officers of the federal reserve banks, to
X-1218
c.c
164
ask for exemption or deferred classification of nonessential
officers or employees who ~ay be utilized in the military service 1
1 ou will 1 of course, understand that if such officers and employees
are required un~er the work or fight order to seek other employment 1
it will be impossible for the banks to perform the services required
of them by the United States.
The same problem is invmlved in the maintenance of the force
of the Federal Reserve Board. A case. has arisen during the past
week which illustrates the difficulties that are being encountered.
One of thQ ~ssengers employed by the Federal Reserve Board who is
within the draft age 1 w~s classed in Class 4 ~a) by the local board
in January 1918 because of the fact that he had dependents and not
because of the fact that he was employed by the Board. Under the
wotk or fight order he was recently sumnoned before the board to
show cause why he should not be reclassified and has been advised
that he nust find another position within ten days or he will be
subject to the draft.
The effect of this ruling appears to be that the work of the
Federal Reserve Board is classified by the local or district board
as nonessential. it is, of course, obvious that if this position
is to be taken by your local boardJ and if every employee of the
Federal Reserve Board who for other reasons has been given deferred
classification1 is required under the work or fight order to seek
other employment or to be subject to the draft, it will not be
posdble for the Board to perform its functions.
In your lett0r to this office dated July 5,1918, you state:
11 1 beg to advise you that bank cJ erks are excepted from
the operations of the regulations v'ihich provide for the withdrawal of deferred classificat.:i.on and or.!er :r.umber of registrants found to be idlers or engaged in nonproductive occupations or employments."
It is assumed that this ruling will also apply to clerks and
employees of the Federal Rese~e Board, but this view has apparently
not been taken by your local board and has not been regularly applied
by other local and district boards to bank clerks and employees. In
other words, it appear:J to thio off ica that so:a:e of the local boards
have confused your regulations which relate to the original classifications of registrants with your work or fight regulation which requires
reclassific3.tion of registrants in a deferred class who are engaged
in nones3ential occupations.
-3-
165
In order that the Board nay be advised as to the proper
procedure to be followed in cases which affect its employees
and rr.a.y advise the Federal reserve banks and member banks in
cases affecting officers and employees of such banks 1 this
office will greatly appreciate a specific r.uling on the following
cases:
First 1 - Are employees of the Federal Reserva Boara excepted
from the operations of the regulation~ which provide for the withdrawal of deferred class·ification and order number of registrants
found to be idlers or enzaged. in nonproductiva occupations or
employment 1
Second1 - Is it w.i.thin the province of a local or district
board to reclassify a ragistrant engaged in an occupation or
employment which has been except.ed frorr. the operation of the
work or fight regulation; where the deferred classification
of such registrant is not based upon his employment but upon
other grounds?
Third 1 - If a local or district board reclassifies a registrant
under the work nr fight regulation on the ground that he is engaged
in a nonproduct:.ve occupatil)n or employment, is the finding of the
board concluzive or rray H be reviewed other -than by the President?
Four,- If a' local or district board reclassifies a registrant
(;n the ground that he is engaged in a nonproductive occupation or.
employment and the attention of the board ~.s called to the fact
that the occupation or employment engaged in is ':'!ne which has been
excepted by your off ice from the operations of the work or fight
order, can the board annul such reclassifi.ca.t:"Lc~ .'
ll
The Board would like to issue a circular to t!ia banks outlining procedure to be follOIIVed in cases where local b~Jards have
reolassified employees under the work or fight orde;.· in violation
of your ruling of July 5, and also as to the procedure to be followed
in Obtaining a deferred classification for essential officers or
employees when those who are required to register on September 12 are
classified. It is understood, of course, that none of such registrants
will be given a deferred clasaification because of their employment,
even though banking is classified as an essential occupation, unless
the officer or employee is one whose services cannot be dispensed
with without serious detriment to the work of the bank.
-4-
X-1218
If your office has prepared any forms to be used in this
connection or any specific regulations as to thG rrethod of
procedure to be follqned1 the Board will greatly appreciate
it if you will have it furnished with copies. It desires to
cooperate with your office in every way in facilitating the
prop•r classification of the employees of the Federal Reserve
Board and the officers and employees of the seve:;.·aJ banks.
To this end the Board will be g13.d to receive any and all
instructions you tray d.esire to have tnns:nitteC: tc the 'b::l.nks
cr to have published in its monthly bulletir.• it v•ill also
be glad to have its connoel confer with a representative of
your office if agreeable to you 1 in order that the Board may
obtain the inforrration neces~4Y tc enable it to deal with
questions arising under your regulaticns.
Respectfully,
Governor.
•
•
:16.6
X-1218 b
CLASSIFICATION OF REGISTRANTS UNDER THE ACT OF
MAY 18.1917 ..
AS ORIGINALLY ENACTED:
Under the Act of M~·Y 18:)l~J.7.• ent:itled "An
Act to Authorize the President to Increase terr.por.::.rily the
Military Establishment of the United :=:tates "., registxants
n:ay be given a defe:::-red classiEcatio::J. by reason of their
employment when r engaged in indu.stdes 1 ::.ncluding ag.d.cul ture,
found to be necess.;J.r-y to the rr.air.tenance of the military establishlr.ent .• or the e:fe ~tive operations of the military forces.;
or the maintenance of r.at :i.onal :interests during the emergency."
The, Dist-rict Board has exclusi·.re jurisdiction
over cases of this sort and local lJOards are not authorized to
give a registrant a deferred classifi.c2,ti0:1 on the ground of hia
employment • It is understood that the Jistrict Boards have ruled
that banking is not an industry withil"~. the rreaning of this statute)'
and that bank clerks cannot.,.therefore.J be given a deferred classification by reason of thair employment ..
AS AMENDED BY THE ACT OF AUGUST 31,1918:
The Act of August 31 1 1918 1 amends the Act of
May 18.,1917" in several particulars. The provision quoted above is
auended so that registrants rr~y now be given a deferred classification
when 11(ingaged in industries_._Q_r~~tiCJ!l§_..Q..''=' 611l]loymen"tJL, including
agricultural,found to be necessa17 to the rr.aintenance of the military
establishment, etc."
In response to an inq'tli:-y S'.tbmittsd by the
Federal t\eserve Board_. the Provost }l.arsre.1 General., under date of
September 16,1918, has ruled as follows~
"Under this amendwent district boards may
properly consider cla~s for d~ferred cla3sification of
those engaged in banking, and as with industrial claims,~
so with occupational claims, each case must be considered
by the district board on its merits .. It must be shown both
.tha~:tho enterprise in which the registrant is engaged is
necessary, and that he is necessary to the enterprise."
\
RECLASSIFICATION OF REGISTRANTS BETWEEN THE AGES OF 21 AND 31 EN::;
GAGED IN ESSENTIAL EMPLOYMENT:
It is understood that a number of bank employees
whose claina for deferred classification were based on the ground
of their employment, have not yet been called to the military service.
The question, therefore., arises whether in view of the amendment above
quoted, these employees may now be given a deferred classification ·
if it can be demonstrated that they are necessary to the successful
operation of the banks employing them.
--=
c..g.
....tLL\
X-1218 b
-2-
.\
The Provost Yarshal General has been asked for a ruling on this
question. If he rules that such cases may be reopened by the District
boards, a copy of his ruling will be furnished upon request for pre- .
sentation to the District boards,and in such cases, banks should apply
for a reclassification of those employees who are necessary to the
operations of the bank. Each case willJ of C')Urse.., have to be considered
on its merits.
WITHDRAWAL OF DEFERRED CtASSIFICATIOJLUNDER THE
WORY~ O::t F!GHT
ORDER;
It appears that in some instan~es registran·i;s bet-viE''3n the ages of
21 and 31 have been given a deferred clasJificaticn on grounds other
than their employment and have subsequently been r~r.lassified under
what is usually referred to as the nwork or Fight Orde:-r.. This order.,
which was pron:ulgated on May 23,1918, provides in part that:
"Whenever.. after July 1,1Sl8., any registrant in Class
1, 11, 111, or lV, wherever he nay be located, is reported to
or observed by any loca~ board*** to be an idler~ or to be
engaged in any occupation or employrrent defined and described
in these Regulations or any amendments thereof as a nonproductive
occupation or employment, such iocal Board shall, by notice as
hereinafter prescribed, notify h~ and set a day and hour when
the registrant rray appear and present such evidence, by affidavit
or otherwise., bearing upon the reasons for his status.,as he may
care to submit.ft
.
In answer to inquiry submitted by the Fe<!eral Reserve Board,the
t>tovost N.arshal General on July 5,19l8 1 ruled that bank clerks were not
subject to reclassification under this order) and under date of Septe~ber
16.,1918 1 ruled that ·
11 It is not within the province of a local or district
board to withdraw deferred classification or order number on the ground
that the registrant is engaged in a nonprodur.tive occt~pation in any case
which bas been excepted from the operation of. the Regulatio~s a~thorizing
such withdrawal."
· In any case in which a bank employee has been reclassified under
the "Work or Fight Otd.er}' the officers of the bank should call the
ttlatter to the attention of the Adjutant General of the State for correction.
CLAIM FOR DEFERRED CLASSIFICATION
SEJ:TEMBEE }.2:
OF BANK CLEfiKS \~0
REG!STERED ON
.
.
~~~ile the Provost Marshal General has ruled that under the Selective
Draft Act as arrended, bank clerks may be given a deferred classification
by reason of their employment, he has repeatedly called attention to the
fact that each individual case must be considered on its merits and
that no employees will be entitled as a class to autouatically receive
a deferred classificatiqn. Officers of banks desiring to file cla~ for
deferred classification of nec~ssary employees., should therefore procure
a copy of extract from Revised Selective Service Regulations, which sets
forth very clearly the procedure to be followed and character of proof
required in each case~
I
t
-3-
-"
'·
\
i69
Xl218 b
As each case rwst be considered on its own rr.erits, it is
suggested that banks seeking to obtain deferred classification for
necessary employees should proceed as follows:
First,- Prepare and submit to the Distr~ct Board evidence
showing the nature and extent of the bank•s ,.,perat:i.ons and ~ha!'a.cter
of service rendered to the Government, togethar w:t.th a?ly inf:).r'.!r,:l.tion
that nay be necessary to sa·Usfy the Board that ~he bank itself :i.e
11 a necessary occupation 11 1 within the meaning of the l!c·t of 1/ay 18,1917 1
as amended by the Act of .August. 31 1 191.8.
Second.t- .A list of those employees no~e3sa-.:-y tv the bank
should be carefully pr.epared and arrJ!1S?;orr:e:.1ts shovl.i ba made with such
employees to submit theil' quest:i.onn:lJ.ie::J t~J a ~omr:H+ee s.ppoJl'lted by
the bank before they are filed.
Proper notati0r. should be r.a.de by the b:l.nk or. the questionnaite
of claim for deferred classHication,. using $3ri0s n~ entitled,
"Industrial Occupation n ..
The Provost Warshal General has called attention to the fact
that it was necessary to print the questionnaires before Congrees amended
the law so that the necessary changes could not be rrade therein. While 1
therefore, banking has been held not to be an industry, claim for
deferred classification is made under this general head.
It is further suggested that such questionnaires should be
acoo~anied by an affidavit of an officer of the bank containi~g the
following infomation as to the statu!! · of each employee for whom a
deferred classification is claimed. ~
(a) Character of service rendered.:
(b) Length of time the employee has been in the service of
the bank;
(c) The capacity1 training and experience of employee, and
the extent ~nd value of his services;
{d) The effect on the oper~tions of the bs.nk tr.at might be
expected to result from·the loss of his servicGs;
(e) Difficulty that would be exper.Jencea. il'. f:i.lling the place
of employee;
(f) That officers of the bank have no reason to believe or
to suspect that the employee obtained service with the bank for
the priuary purpose of evading military service.
In cases where district boards decline to give a necessary
employee deferred classification, the vote of the Board should be ascertained and if one or more members voted in favor of deferred classification, the case may be appealed to the President. Such appeal must
be accompanied by the written and signed recormendation of one member
of the local board and either the Govornment Appeal Agent or Adjutant
General of the State.
•
~ dOPY OF PHOTOSTAT )
X-1218 (c)
WAR DEPArtTl'vlENT
Office of the Provost
W~rshal
General
WASHINGTON
'·
Honorable W~lliam P"G. Hardi.ag,
Gover:.aor 1 F3de.~.~al ResAr\1''3 :aoard~
We.shing-+:on . .IJ .. C.
Dear Sir:I am in receipt of your letter of September 11.~ in which you
ask for specific rulings in regard to the reoent amendments to the Selective Service Regulatioyw which prescribe certain occupations as nonp reductive •
First: Employees of the Federal Reserve Board are not included
within the operation of the RegW.ations vvhich provide for the withdrawal
of deferred classification and order number of registrants found to be
idlers or engaged in nonproductive occupations or employments, unlas3 they
are engaged in certairt occupations enumerated in paragraphs (a) and (b) of
Section 121-K, Selective Set"Vice Regulations, a. copy of which is herewith
enclosed.
Second: It is not within the province of a
to withdraw deferred classification or order number
registrant is engaged in a nonproductive occupation
been excepted from the operation of the Regulations
drawal.
Local or District Board
on the ground that the
in any case which has
authorizing such withw
Third: The findinga of a Local and District Board are conclusive,
unles3 there is at least one negative vote in the District Board and the
appeal is accompanied by the written and signed recommendation of one member of the Local Board and either the Government Appeal Agent or the
Adjutant General of the State~ in which case it may be rt;~viewed by the
President, as provided in Section 121-J.
Fourth: If a Local or District Board reclassifies a registrant on
the ground that he is engaged in a nonproductive occupation or employment
and the person, as a matter of fact, is not engaged in such nonproductive
employnant, the rratter should be called to the attention of the Adjutant
General of the State for correction, or if as outlined above there is a
negative vote in the District Board, etc. 1 it may be appealed to the
President.
Fifth: A mes3enger should not have his deferred clasGification
and order number withdrawn as he is not within the provisions of Section
121-K of the Selective Service Regulations.
•
Xl218 (e)
-241
t
With reference to occupational claims for deferred classification
for employees of the Federai Reserve Board, I am sending you herewith
two copies of the Questionnaire, the key 1:.st of occupa.ti.ons, an explanatory memorandurr. to be inserted in each Questionnaire ar.d an extract
from the revised Selective Se>:vice Regulations; which states the amended
rules with respect to classification on occupational grr,und.s.
As you are aware,, Congress has amended the Selective Service Act,
so that District Boe..r0.s r:rN-r have jurisdiction to co11sider and grant
claims for deferred c:La.s~-dficat:io:1 en the. ground of Emgagement in necessary industries., o~cupF.l.t:ions or e:'llp1 :JyrDen'ts, incluciing agrir!ul ture.
Under this a.mendn:.ent District Bcarus rray prcpe:.:ly c:onsider claims for
deferred classification by those engaged in banking,, <.mel as with industrial claims. so with occupational claimsjl each •Ja.se rr:·1st be considered
by the District Bna:::·d on its n:'3r:Us., lt rrlllst ·oe shown both that the
enterprise in whicn the reg:Lstran ~ is engaged is ne.::essary, and that he
is necessary to the ente.cy-r:tse. As state,;: in the ex11.::1.n.:d::rn'Y me:norand·~ml
enclosed herewi th 1 all such claims shou1.cl be rrade on the Questionnaire 1
using Series Xl entitled nrndustr:i.al Oceup3.+,1~mn, It was necessary to
print the Q.le3tionnaire 'before Congress ,,~noncl.e,l the Law, so thc.,t the
necessary changes could not be rrade the:tein •.
This office is not fully infor:r.ect as to the datus of employees of
the Federal Reserve Boarc1 1 but if trJey are legally er.lployoes vf the
United States, it is suggested that claims for their d.eierment might be
made under the provisj_ons for the deferred classifiGation of necessary
federal err;ployees,. for which provision is made in Series V11J._. Pa.r·c A,. of
the Questionnaire and i:r1 Section 77 of the Selective Service Fegt~lations.
A copy of this last mentioned Se.:tion is herewith G:'lc lozed 1 t,_.ge-';hf3::i with
a copy of telegram :S...2'710 0f Av.g;.l.st 20 giv:i.ng fi.E·ttJ.cr ::ns~ru-:ti)ns with
respect to the proof required in support of such clc.:i.rrH3.,
Attention is invited to the fact that clai1ls for necessary federal
employees are within the jurisdiction of the Local BcaJ:"dsJ whe rea.s, the
District Boards have exclusi.ve original jurisdiction of occupational
claims ..
E .. H... CROWDER.
Provost 1tarshal General.
By
JOSEPH FAIRBANKS.
Lieut. Colonel, Judge Advocate.
JF-lwr ..
Encls. - Two Questionnaires
Two Key Lists
Two Memo
~VO Ext~acts
s.s.R.
Sec. 121-K s.s.R.
Tel. B-2710
Sec. 71 s.s.R.
17i
@FedFRASER