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MEMOR.hFDUri TO
AGET-TT'S CONFER:-CE
from
FEDER.".t RESERVE Bl)fBDI S
Cet'!I'UTTEE O'H ECONOMY & EFFICIENeY
The Federal Reserve BLard t s Co:1mi ttee on Economy and Efficiency desires to refer the follo·.'ling rrdt ters to t~"e Jgents for their
considerc:.tion ani for such action as L;.ay IT'ay desire to tate.
1.
Recorrmendation for investigation and comparison of the ex;ense~ of the various activities carried on in all bank<> as a rr.atter of' ~olicy.
L comparison of the c0st of the vs.rious c:wtivities carried
on as
rn:;.tter of ;JOlicy, most of wh:cr_ activities are un:iar the sup-
o.
ervisicn of the Agents, indicates a wide variation in the policy at
the several banks.
It is apparent that either some cf the baru-s are expending
too '11\lch for these purposes or other be:mls are not exrending enough.
It is reasond.ble to assume there will be a tendency on the
part of each bank, with
pro~ortionately
ing
ty
~.nd
~es~::ect
to those items for which it is expend..
less than the other banks to
incre~se
its activi-
there is thus bound tc result a subaL,ntial iucrei.i. e in the ex-
penses of all the banks.
It is the julgmen': of this
._,r:~.i ttee L~._ t
for these rurposes should be re.;l.oo ~:Ltly in
~;n.
crt icn at ,;;"ll banks
and that t}:e :;;olicy shcn..'Ll be rec:-.:; nably u::1i"'• r:-·
tem.
ths e.x·_- er:ii tures
t:C.r~·u~::-_(
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It is therefore Recorrmended that the Agents give consideration to this matter and designate a Committee of two to advise with
the Board's Committee on Econorey- and Efficiency with respect to such
activities.
2.
Re commendation for survey by the local Committee on Economy and Efficiency of the Agents
Department of each Bank.
This Committee understands that in several banks there has
been no survey wade of the Agents Department by the local committee.
In the judgment of this Committee this is a mistake.
It is
presurnei that the work of the local committees on Econorey- and Efficiency is carried on under the direction of the Board of Directors of
each bank of which Board the Agent is Chairman ani it is difficult to
see how the work can be fully effective unless similar standards are applied to the Departments under the immediate control of the Agent and
Chairman as are expected to be applied to the rest of the bank.
It is the view nf this Cowmittee that it is in the interest
of Economy and Efficiency that all employees under the supervision of
the Agent and Chairman should be subject to the same rules ani regulations and measure up to the sarne standards as other employees of the
bank and also that the work of the Agents Departments should be subjected to the same study and tests as to operating, organization,and efficiency as is the work of the rest of the: bank.
This Committee Recol!lr'lenis tha.t all ./'.gents 1vho have not already
done so invite a survey of their departments by the locJ.l Committee with
a view to the elimination of any durlication that may exi:s: with other
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departments of t}J.e bad.r, ?.-ls0 in arry cases \vhere it ·hc:.s not
~lready
been done, that ex;:Jenditures of all kinds incurred in connection with
the operation of the .,.'l.gents Departments be subj:acted to the same scrutiny and tests as are those incurred for other departments of the same
bank.
November 12, 1923.
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@FedFRASER