The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
...... X-950 Superseding X-690. MEMORANDUM FOR THE INFORMATION AND GUJDPNCE OF THE FEDERAL .RESERVE DISTRICT COlvl.AJ TTEES OUTL!NF. OF A PLAN FOR THE CONSERVATION OF CREDITS N.en in the councils cf ~he Na:t.:l.c-:1 a..Y-lpreciate a.lready that the greatest national problem of today ( becatlse of the war) is the Conservation of Goods and Services. It is recognized that this can be brought about only through cooperation and moral suasion. Hence the proposals hereinafter outlined are framed with that object in view. The problem above stated phrased in a different way might very truly be said to be the gigantic labor problem of releasing workers and raw materials for war industries by gradually curtailing unessential operations and doing it in such a way as to cause aa little hardship as possible to the workers or their employers. This is by no rr.eans an easy problem for it means a very gen- eral redistribution of labor. In connection with the Problem it will probabiy be necessary or desirable: (1) To coordinate wherever practicable with the War Savings Committees already launched in the different States and utilize those organizations (State 1 County 1 and Municipal) so far as possible. (2) To encourage the gospel of the "Conservation of goods ~nd services" until it is understood even thougp it and hannsring it in (3) ~s ~eans the first great essential. To urge that all public or private expenditures for nonessential improverr.ents be curtailed or postponed. ringing the changes upon it 1 This may mean sooner or later: - 2 - X-950 (a) (b) An appeal to the Governor and Legislature of every State for assistance.and cooperation. (c) ~~ appeal to the ~~yor and Council of every City for assistance and C00peration. (d) (4) An appeal to Congress for assistance and cooperation. An appeal to the pubJ i.e ut:i.l:i:ty or public service · con:missions of every State and C5.r:7 not to requ.ire extensions, improvements or bette rrr..;:::,ts which can bs •1efcrred till af.ter the war, and an u::-gfmt request that they refuse authority for increments +.o cap;i,;tal for improverr.ents which they think can be saiely deferred. To urge all corporations, copartnerships, and individuals not to make improvements which require new capital unless they be absolutely necessary. (5) As the Government 1 s war needs can be met both by economizing services on the one hand and by increasing production or the productivity of labor on the other~ it is well to urge an increased production along the more essential lines: (a) By the employment of women in all classes of industry where their labor can be used to advantage ~d especially wherever rren whose labor is required can be released thereby. (b) By increasing the productivity of men's labor through discussions and treaties with the representatives of organiZed labor or by adopting methods which will, during the period of the war~ result in the more continuous employment of labor or increase its productivity. lt rray be pointed out that great progress along both these lines has been made in European countries. (6) Waste or unnecessary consumption of bread# rraat, sugar, and other foodstuffs should be stopped, and to that end there should be the closest harmony and cooperation with the United States Food Administrator. X-950 - 3 - In the same way the consump~ion of other necessary staples~ such as coal 1 fuel oil 1 ga'3oljr.o .• etc. 1 shoul:. be restricted wherever possible 1 to the end that these essential purposes. ~ecessities shall not be useJ for un- In these matters there shoulJ be the closest harmony ani cooperation with the Fu.el.AJ.ministrator. (7) It is important) anl it shoulJ be borne in mind that the dis- charge of workers from one kinJ. of employment 1 unless some schezr.e is devised for their reemployment in some necessary work,~ beneficial effect but will be harmful. ~rds 1 In other nambere.i that labor is fluil only to a limited extent Will not have a it must be re- an~ that workers can not be shifted. quickly from one point to another or from one kind of work to another without a certain amount of enforced idleness ani pecuniary loss. (8) While it may be argued that some kin.is of employment are un- essential to the conduct of the war and therefore should be restricted 1 it must at the sane time be aJmitted that if the articles~ however un- essential to our needs 1 are exported - let us say to sons neutral country from which we are obtaining necessary articles- it is an inJustry which may properly be encour.aged 1 not at the expense of necessary in.iustries 1 but only through absorption of available labor. (9) It will probably be found desirable to adopt some sort of appl:i,cation blank, in the nature of a "certificate of necessity" for all proposed. capital expenditures and require all Natio~ and State banks when asked to leni money to corporations 1 copartnerships or individuals 1 to demand the filling out of such certification, it being unierstooi that this W«Duld not apply to seasonal or c omnereia]. borrowing, but only to .... X-·950 - 4 - extensions of creiit for improvements~ betterments, and other capital expenditures. The blanks when filled out ana attested would be passed upon by the District Coamittees and, i: approvei, passed on with that tee's recoxm;enlation to the Ca~ital Is:1ucs Corr1:1ht.e~;:~ in CoL~t- Wa~hington. (10) The CorrJirrl. ttee on r.a.pital IE:su:;w wiJ.l p21.ss cnly upon reque~ts in excess of $100. .,000 but will delegate to tha District Comnittees the authority to ~ke final decisions subJect to appeal to it in cases in- volving smaller amounts. (11) The carrying out of this program presupposes, and to be sue- cessful zrust have the hearty cooperat5.on of banks an.l bankers, merch::mts.and manufacturers, little an~ big all over the country, with the object in view of decentralizing the work and arresting the fLood of applications, so far as possible at their source. Charles S. Harr.Qin, Chairnan James B. Br~m Frederic A. Delano Jonn S. Drum Henry C. Flower Freleric H. Goff John Skelton Williarr.s ) ) ) ) ) ) ) Capital Issues Conmi ttee.
@FedFRASER