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315 BOARD OF GOVERNORS R-22 CF" THE FEDERAL RESERVE SYSTEM WASHINGTON ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD Jnne 24, 1937. SUBJECT: Facilities Available at Reserve Banks for Purchasing Supplies at a Di SC01ll1 t. Dear Sir: Recently the Washington representative of the Retailers National Council called at the Board'S offices and stated that the National Retail Dry Goods Association had taken up with him a protest lodged vdth ti1at association by an association of merchants in one of the Federal reserve bank cities. This representative stated that the purchasing agent of one of the Federal reserve banks buys various articles for the employees of the Federal reserve ba1~ at substantial reductions below retail prices, and that tl1e local merchants are protesting such action on the part of the purchasing agent. The Washington representative of the Retailers National Council did not voice any opposition to employees of tho Reserve banks forming associations for the purpose of purchasing supplies at a discount, provided the supplies were not purchased through the bank's purchasing agent. The Washington representative stated that the association lodging the protest was informed that all Federal reserve banks had arrangements similar to the one complained of, and asked whether that were true. For the information of the Board, it will be appreciated if you will advise whether arrangements exist whereby employees at your bank or branches, if any, may purchase merchandise at considerably less than retail prices, and, if so, how tho arrangements wore established; whether the purchases made for the account of employees are made direct by the employees themselves, upon proper credentials, or whether they are purchased for the account of the employees by ono of their ovm representatives or by the purchasing agent of the bank; and whether tho purchases are paid for direct by the employees themselves, qy their own reprcsentativos, or by the bank nnd reimbursement obtained from the employees. The Board will also appreciate advice as to whether, in your opinion, employees of 316 R-22 -2- a Federal reserve bank should be allowed to make purchases of supplies through the bank's purchasing agent. Very t~T yours, Chester Morrill, Secretary • • TO PRESIDEN'fS OF ALL FEDERAL RESERVE BANKS.
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