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244-. 211 - Distribution & Activity of Deposits
(Jan - Sep 11 1935)I
Statistics

f




Reproduced from the Unclassified / Declassified Holdings of the National Archives

Form F . R. 567

E ND
K IN D OF M A T E R I A L OR NUMBER

name

DATES

or

su b jec t

(In c lu s iv e )

P A R T NUMBER




SHEET

2 4 4 .2 1 1

\
Distribution & Activity of Deposits
Statistics

Jan

p a rt

Sep 11 1935

-

1

©

Reproduced from the Unclassified / Declassified Holdings of the National Archives

W O R K S PROG RESS A D M IN IS T R A T IO N
WPA-40
H A R R Y L . H O P K IN S

W A L K E R -J O H N S O N B U IL D IN G

6550

1734 N E W Y O R K A V E N U E N W .
W A S H IN G T O N , D . C .

z vy &

A D M IN IS T R A T O R

T2l*£ >

September 11, 1935

TO ALL STATE WORKS PROGRESS ADMINISTRATORS:

Some question has arisen concerning the numbering of
Advices of Change in Allotment, Treasury Form A-3a.
The present form indicates that the Advice Number and
the Work Project Number are the same. However, the office
of the Commissioner of Accounts and Deposits has decided
that Advices of Change in Allotment should be numbered con­
secutively by States in the order of their issuance.
The original Work Project Number is shown in the body
of Form A-3a.
The number in the upper right corner, there­
fore, should be the nAdvice of Change in Allotment" number.
The phrase "Work Project Number" may be disregarded.




Harry L. Hopkins
Administrator

11

Reproduced from the Unclassified / Declassified Holdings of the National Archives

F o r m N o . 131

copy-jc

Office Correspondence
To

Mr Korrill

From

Mr# Clayton

FEDERAL RESERVE
BOARD

D£l

Date

R E S E R V E B OAR D FI LE
f f a p t a t a h ia i* 1 1 .

101

Subjects

2221

OXi,

I told the telephone operator that the call was to be charged to the
IWdersl loserte Board# is we discussed several Board matters including tbs
f white coller project, the penalty rate on 10B loans and the BIS matter, the
conversation was extended, I believe about forty minutes#




Original filed 806,001 ~ B e d e s

«86HtSR’

In a conversation with Governor Ecclee lest night, he noted that In
a recent syndicated despatch from Washington it was stated thrt the Board had
set had a stitlif for seven wssfrs, Will yen please advise the longest period
during recent months in which no meeting of the Board was held#

Reproduced from the Unclassified / Declassified Holdings of the National Archives

y-U

6 U , ^ v v * - Xi 6- 1 r ,;
r-

September 10, 1955•

Memorandum to Mr, 0*Connori

In accordance

with the talk that Judge Thomas bad

with you this morning regarding the proposed WPA project on
the distribution and activity of deposits, I attach a copy
oi a memorandum to the Board, dated Septembsur 4, 1955, from
Dr* Goldenweieer, which, however, was submitted only a few
days ago, together with a mimeographed memorandum explaining
the proposed project*

We understand that under en executive

order September 12 has been set as a time limit for filing
formal applications*

In the circumstances Judge Thomas

desires to have a meeting of the Board tomorrow morning
for the purpose of determining whether the proposed applica­
tion should be approved*

The formal application is being

prepared and w i n be ready for submission to the Board at
its meeting tomorrow morning.

Secretary*

Attachments.
CM yd




CD

lr^

»
''•*"

Reproduced from the Unclassified / Declassified Holdings of the National Archives

F o r m N o . 131

O ffice Correspondence
Mr. Morrill.

To

Lauchlin Currie

From

aL

i,y
r
1 f K t*

.J U o
Attached\ are the revised
/
i

revised pages 1 and 5 of




CL^v-vt

FEDERAL RESERVE
BOARD

JG

U-

September 10, 1935.
--r
1— ‘—
r
•' f ; b\ i*k Lf'+S’l;
Suhier.t • Request for allotment of funds
under Emergency Relief Appropriaticn
Act of 1935.
Date.

Reproduced from the Unclassified / Declassified Holdings of the National Archives

<A ' O-i

d' 1

September 9, 1955*

Meaorandu* for Couaeali

I have received this morning from the Division of
Research and Statistics the attached five copies of "Applica­
tion for Allotment of Funds under Emergency Relief Appropria­
tion Act of 1955* which

X

understand to be the application

contemplated by the memorandum from Dr* Goldenweiser to the
Board of which a copy was furnished you recently*
Although the Division of Research and Statistics
has not yet received a reply from Governor Eccles regarding
this project it is believed that the attached application
should be given special consideration by counsel before it
is presented to the Board in view of the fact that we are
advised that the time limit for filing the application is
September 12, 1955*

Secretary*

CM yd




Reproduced from the Unclassified / Declassified Holdings of the National Archives

{To be prepared in quintuplicate.
Additional or detailed data to be
attached using c o r r e s p o n d i n g
num bers)

Date
Department
project N o.

FEDERAL PROJECTS
Return to
National Emergency Council,
Washington, D . C.

Application for Allotment o f Funds under
Emergency R elief Appropriation Act o f 1935
x

---------------- —

N . E . C. N o.
Official
project No.

—

Amount
requested $
Amount
approved $

Department or Independent Office:

Board of Governors of the Federal Reserve System

Bureau:
\
Location of project:

/

Countrywide (See attached sheet)

State:

County:

City ©r town:

General location, if other than above:

1. Description of project and character of work:
A sample study of changes in the distribution and activity of deposits for the
years 1928-1931. The work will consist largely of the transcription and tabula­
tion of selected personal and business accounts and of credits to personal
accounts.

(a) Relative priority of this project in comparison with all projects embraced within the program of
the Bureau:
Only project.

2. Total estimated cost of project:
(а) Amount previously allotted or appropriated__________________________ $_________
(б) Amount of allotment requested in this application____ $__599,719_____
(c) Additional amount required to complete............. $________ ______
(d )

_________

T o t a l _________________________________________________ $___599JL719

3. Give source of funds, if any, under 2 (a):

U. S. GOVERNMENT PRINTING OFFICE




N . E . C . Form 1— Page 1 o f 3

16—3872

Reproduced from the Unclassified / Declassified Holdings of the National Archives

12. Is any part of this project in conflict with previous congressional action?

No

13. Under what provision or classification of projects specified in Section 1, Emergency Relief Appropriation
A ct of 1935, may allotment be made legally?
The requested allotment appears to be one for

"assistance for educational, professional and clerical persons" within the meaning of clause
14. Has validity of proposed allotment been approved by legal staff of Department or Independent Office?

Yes
15. From what other Federal agency, if any, has an allotment for this project been requested?

None

16. Status of plans:
(a) Surveys?
(b) W ork plans?
(c) Sketch plans?
id) Detail plans? x
(e) Specifications?
17. Status of land or sites:
(а) Acquired?
(б) Negotiations completed?
(c) Negotiations pending?
{d) Negotiations not begun?

/

18. Is project wholly or partially self-liquidating under present laws?
(Give details on separate sheet as to wherein and to what extent)

19. T o what extent will this allotment increase or decrease the annual expense of physical upkeep and operating
cost to the Federal Government? jjo Cham e

(a) Increase, $

B y what agency to be borne?

(b) Decrease, $
20. Extent of participation, if any, by other agencies:

None

21. Justification (a short, concise statement giving reason or necessity for the proposed allotment, including
any comments or further statement about the nature of the work. An additional sheet may be inserted
if necessary): ^ jt is expected that this study will yield results of value to
commercial bankers in planning the allocation of their assets and to the Reserve
Administration in formulating its credit policies.

Allotment of fimds for this project requested by:

The Board of Governors of the
Federal .Reserve System
(Department or Independent Office)

(Signature of Head of Department or Independent Office)

H. S. GOVERNMENT PRINTING OFFICE




N. E. C. Form 1—Page

3 of 3

16—3872

Reproduced from the Unclassified / Declassified Holdings of the National Archives

(To be prepared in quintuplicate.
Additional or detailed data to be
attached using c o r r e s p o n d i n g
num bers)

Date
Department
project N o.

FEDERAL PROJECTS
Return to
National Emergency Council,
Washington, D . C.

Application for Allotment of Funds under
Emergency Relief Appropriation Act of 1935

N . E . C. N o.
Official
project N o.
Amount
requested $
Amount
approved $

Department or Independent OfficeBo&rd of Governors of the Federal Reserve System
Bureau:
Location of project: Countrywide (See attached sheet)
State:

County:

C ity or tow n:

General location, if other than above:

1.

Description of project and character of work:

A sample study of changes in the distribution end activity of deposits for the
years 1928-1951♦ The work will consist largely of the transcription and tabula­
tion of personal and business accounts and of credits to personal accounts.

(a)

2.

Relative priority of this project in comparison with all projects embraced within the program of
the Bureau:

Total estimated cost of project:

(a) Amount previously allotted or appropriated.............................. .......
(b) Amount of allotment requested in this application_____
(c) Additional amount required to complete_______________ $_______

(d)

3.

T o t a l _____________________________________________________ ___________________________ ________

599,719

Give source of funds, if any, under 2 (a):

U. S. GOVERNMENT PRINTING OFFICE




N . E . C . Form 1— Page 1 o f 3

16—3872

Reproduced from the Unclassified / Declassified Holdings of the National Archives

CD

(2)

(3)

(4)

Amount

Percent of
Subtotal

Percent of Total
Allotment

Daily Average
Number to be
Employed

(Dollars)

4. Estimated division of allotment:
(a) Labor:
( 1) Unskilled.... ................ .
(2 ) Skilled_______ _____
(3) Technical and clerical.
(4)

S ubtotal .

6,160

1.1b

1.03

524,725.

aa.frL

BlLmASL

_257

.88-52..

,950

(b) Superintendence............

x x x

(c) Other expenses on project:
( 1) Supplies, materials, equipment.
(2 ) Contingent expense__ ,
"KenT
(3) Land_________

(d)

49,505
19,555

S ubtotal , other expenses.

(4)

100

..530,385.

13

100

68,836

T otal
(should correspond with
amount shown in 2 (&))___________

599.-719

8.25
5.25

71.92.
28.09

-11-48.

100

x x x

-950

— Do not include any estimate of general administrative expenditures for salaries of employees located in Washington
or at any regional office or for general office expenses at such offices. Application for funds for such expenses should be made
on N. E. C. Form 2.
N

ote.

[State number of hours
5. Estimated expenditure per man-year of employment: $
per month and wage rate basis (P. W. A., union scale, or o^f^)' foiled in 4 and 5.]
The monthly wage rates to be paid follow those established in the schedule of
monthly earnings which appeared in the W.P.A. Circular No. 1, issued June 15, 1955.
6.

Estimated total man-hours:
1,355,200

7. Estimated period of preparation before work at site can be started
8.

days.

Estimated daily average number of employees each month during execution of project:
L

751

2'

1,010

3"

1,010

4-

558 10"
7 1,010 8- 1,010 99. Estimated elapsed time from beginning work t i lomplJtion

1,010

8*

5
11.

1,010

6-

1,010

12.

months.

10.

(a) What part of labor on project would usually be handled by contract?
(b) What part of labor on project would usually be day labor?

11.

If this project is in fulfillment of some specific statutory authorization, give date of such law and statute

%
%

reference.

0 . S . GOVERNMENT PRINTINS . T r i e s




N. E. C. Form 1—Page 2 of 3

16—6878

Reproduced from the Unclassified / Declassified Holdings of the National Archives

12.

Is any part

of

this project in conflict with previous congressional action?

pivviou*,

C

lie ting

congressional action has been found*

13. Under what provision or classification of projects specified in Section 1, Emergency Relief Appropriation
Act of 1935, may allotment be made legally? T h e requested allotment appears to be one for

•assistance for educe tlon&l* professional and cl ere la! persons •wi thin the Beaming of cl&use(e)L
14.

16. Status of plans:
(a) Surveys?
( b ) Work plans?
(c) Sketch plans?
( d ) Detail plans?
(e) Specifications?

this allotment*

Hone

x

17. Status of land or sites:
(a) Acquired?
(b) Negotiations completed?
(c) Negotiations pending?
(d) Negotiations not begun?
18. Is project wholly or partially self-liquidating under present laws?
(Give details on separate sheet as to wherein and to what extent)

No

19. To what extent will this allotment increase or decrease the annual expense of physical upkeep and operating
cost to the Federal Government? Ho Ch&ngt
(a) Increase, $
(b)

By what agency to be borne?

Decrease, $

20 .

Extent of participation, if any, by other agencies: Hone

21 .

Justification (a short, concise statement giving reason or necessity for the proposed allotment, including
any comments or further statement about the nature of the work. An additional sheet may be inserted
if necessary):
j,g expected ttkt this study will yield result,8 of w l u t to COB*

nercial bankers in planning the allocation of their assets and to the Reserve Administrate
tlon in formulating its credit policies*
It Is understood that all funds allotted upon the basis of this appliestlon will
be handled*disbursed and accounted for by the Works Progress Administration or by the
Treasury Department and none of such funds b the Board of Governor; of the Federal
i M e r r e Syetae or b, M y Federal Reeenre ^
ment of funds for this project requested by.
The Board of Governors of the
Federal Reserve Syst m
(Department or Independent Office)

(Signature of Head of Department or Independent Office)

O . S . GOVERNMENT PRINTING OFFICE




N. E. C. Form 1— Page 3 of 3

JO—3?73

Reproduced from the Unclassified / Declassified Holdings of the National Archives

(To be

prepared in quintuplicate.
Additional or detailed data to be
attached using c o r r e s p o n d i n g
numbers )

Date
Department
project No.

FEDERAL PROJECTS
Return to
National Emergency Council,
Washington, D. C.

Application for Allotment of Funds under
Emergency Belief Appropriation Act of 1935

N. E. C . No.
Official
project No.
Amount
requested $
Amount
approved $

Department or Independent Office: Board of Governors of the Federal Reserve System
Bureau:
Location of project: Countrywide (See attached sheet)
State:

County:

City or town:

General location, if other than above:
1.

Description of project and character of work:

A sai^le study of changes in the distribution and activity of deposits for the
years 1928-1951, The work will consist largely of the transcription and tabula­
tion of personal and business accounts and of credits to personal accounts.

(a) Relative priority of this project in comparison with all projects embraced within the program of
the Bureau: Only project

2.

Total estimated cost of project:

(а) Amount previously allotted or appropriated.......................................................

$.....................

(б) Amount of allotment requested in this application____ $--599>.719-...........
(c) Additional amount required to complete___________ $_____________

(d)

T o t a l ----------- ------- ------- ---------------------------

3. Give source of funds, if any, under 2

U. S. GOVERNMENT PRINTING OFFICE




_________
$

5 99,719

(a):

N. E. C . Form. 1—-Page 1 of 3

16—3872

Reproduced from the Unclassified / Declassified Holdings of the National Archives

(1)
Amount
(Dollars)

4. Estimated division of allotment:
(a) Labor:
( 1) Unskilled___ ______
(2 ) Skilled.,............. .......... .
(3) Technical and clerical.
(4)

(b)

1.05

15

524,725

98*84

87.49

957

88.52

950

100

X

(1) Supplies, materials, eqffiffip|ent.
(2 ) Contingent expense,.
(3) Land.
S ubtotal , other expenses___

T otal
(should correspond with
amount shown in 2 (6 ))........... .......

(4)
Daily Average
Number to be
Employed

1,16

550,885

S ubtotal .

(c) Other expenses on project:

(d)

(3)
Percent of Total
Allotment

6,160

Superintendence____

(4)

(2)
Percent of
Subtotal

49,505
19,555

X

71.91
28.09

8.25
5.25

100

11.48

68,856

599,719

X

X

X

X

100

950

N o t e .— Do not include any estimate of general administrative expenditures for salaries of employees located in Washington
or at any regional office or for general office expenses at such offices. Application for funds for such expenses should be made
on N. E. C. Form 2.

5. Estimated expenditure per man-year of employment: $
. [State number of hours
per month and wage rate basis (P. W. A., union scale, or other) used in 4 and 5.]
The monthly wage rates to be paid follow those established in the schedule of
monthly earnings which appeared in the W.P.A. Circular No* 1, issued June 15, 1955*
6.

Estimated total man-hours:

1,558,200

9

9

7. Estimated period of preparation before work at site can be started
8.

days.

Estimated daily average number of employees each month during execution of project:
j

781

7 1,010

2

1,010

g

1,010

3.
Q

9'

1,010

4

1,010

5

558
in
( * - » . ) 10'

9. Estimated elapsed time from beginning work to completion
10.

15

(a)

1,010

6. !>010
12.

11.

months.

What part of labor on project would usually be handled by contract?
(6) What part of labor on project would usually be day labor?

%
%

11. If this project is in fulfillment of some specific statutory authorization, give date of such law and statute
reference.

U. S. GOVERNMENT PRINTING OFFICE




N. E. C. Form 1— Page 2 of 3

16—3878

Reproduced from the Unclassified / Declassified Holdings of the National Archives

12 .

Is any part of this project in conflict with previous congressional action?

Ho previous conflicting

congressional action has been found#

13. Under what provision or classification of projects specified in Section 1, Emergency Relief Appropriation
Act of 1935, may allotment be made legally? The requested allotment appears to be one far
■assistance for educational, professional and clerical persons "within the meaning of clause (e)
14. Has validity of proposed allotment been approved by legal staff of Department or Independent Office? Counsel

16. Status of plans:
(a) Surveys?
(b) Work plans?
(c) Sketch plans?
(d) Detail plans? X
(e) Specifications?
17. Status of land or sites:
(a) Acquired?
(b) Negotiations completed?
(c) Negotiations pending?
(d) Negotiations not begun?
18. Is project wholly or partially self-liquidating under present laws?
(Give details on separate sheet as to wherein and to what extent)

Mo

19. To what extent will this allotment increase or decrease the annual expense of physical upkeep and operating
cost to the Federal Government?
No change

(a) Increase, $
(b)
20 .

21 .

Decrease,

By what agency to be borne?

$

Extent of participation, if any, by other agencies:

None

Justification (a short, concise statement giving reason or necessity for the proposed allotment, including
any comments or further statement about the nature of the work. An additional sheet may be inserted
if necessary): It is expected that this study will yield results of value to com­

mercial bankers in planning the allocation of their assets and to the Reserve Adminis­
tration in formulating its credit policies#
It is understood that all funds allotted upon the basis of this appli­
cation will be handled, disbursed and accounted for by the Works progress Administra­
tion or by the Treasury Department and none of such funds by the Board of Governors of
the Federal Reserve System or by any Federal Reserve bank.


U. S. GOVERNMENT PRINTING OFFICE


Allotment of funds for this project requested by:

The Board of Governors of the
__________ Federal Reserve
____________
(Department or Independent Office)

____ _(signed)

Thomas.____________ ____

(Signature of Head of Department or Independent Office)

Vice Chairman
N. E. C. Form 1— Page 3 of 3

JG—-3872

Reproduced from the Unclassified / Declassified Holdings of the National Archives

(To be prepared in quintuplicate.
Additional or detailed data to be
attached using c o r r e s p o n d i n g
num bers)

Date
Department
project No.

FEDERAL PROJECTS
Return to
National Emergency Council,
Washington, D. C.

Application for Allotment of Funds under
Emergency Relief Appropriation Act of 1935

N. E. C. No.
Official

project No.
Amount
requested $
Amount
approved $

Department or Independent Office: Board of Governors of the Federal Reserve System
Bureau:
Location of project: Countrywide (See attached sheet)
State:

County:

City or town:

General location, if other than above:
1.

Description of project and character of work:

A sample study of changes in the distribution and activity of deposits for the
years 1928-1951. The work will consist largely of the transcription and tabula­
tion of personal and business accounts and of credits to personal accounts.

(a)

2.

Relative priority of this project in comparison with all projects embraced within the program of
the Bureau: Only project

Total estimated cost of project:

(a) Amount previously allotted or appropriated_______ ______ ____
(b) Amount of allotment requested in this application........

$.

$..59_9>ZL9.

(c) Additional amount required to complete___________ $________
(

d)

T

o t a l ______________

_____ __________________________________________________

3. Give source of funds, if any, under

u . S. GOVERNMENT PRINTING OFFICE




2

$....599-,319-

(a):

N. E. C. Form 1— Page 1 o f 3

16—3872

Reproduced from the Unclassified / Declassified Holdings of the National Archives

(i)
Amount
(Dollars)

4. Estimated division of allotment:
(a) Labor:
fl) Unskilled
( 2 ) Skilled___
. __ ______ ___
(3) Technical and clerical ________
(4)
( b)

(d )

1.05

15

524,723

98*84

87.49

937

88.52

950

100

X

(c) Other expenses on project:
( 1 ) Supplies, materials, equipment.....
( 2 ) Contingent expense Rent. ___
(3) Land

T

49,503
19,335

other expenses__

X

<

X

71.91
28.09

68,836

(should correspond with
amount shown in 2 ( b ) ) _____ .

(4)
Daily Average
Number to be
Employed

1.16

550,883

S u b t o t a l ________ _____ _________

Subtotal,

(3)
Percent of Total
Allotment

6,160

Superintendence___________________

(4)

(2)
Percent of
Subtotal

8.25
5.25

11.48

100

otal

599,719

X

X

X

100

950

N o t e .— Do not include any estimate of general administrative expenditures for salaries of employees located in Washington
or at any regional office or for general office expenses at such offices. Application for funds for such expenses should be made
on N. E. C . Form 2.

5. Estimated expenditure per man-year of employment: $891*24
. [State number of hours
per month and wage rate basis (P. W. A., union scale, or other) used in 4 and 5.]
The monthly wage rates to be paid follow those established in the schedule of
monthly earnings which appeared in the W.P.A. Circular No* 1, issued June 15, 1955.
6.

Estimated total man-hours:

1,355,200

7. Estimated period of preparation before work at site can be started
8.

days.

15

Estimated daily average number of employees each month during execution of project:
1. 751

2. 1,010

3. 1,010

7.1,010

8. 1,010

9.

558

4. 1,010

5.

( 2 mo*)

83

6.1,010
12.

11.

. 10.

9. Estimated elapsed time from beginning work to completion

1,010

months.

10.

(a)

11.

If this project is in fulfillment of some specific statutory authorization, give date of such law and statute
reference.

What part of labor on project would usually be handled by contract?
(6) What part of labor on project would usually be day labor?

6 . * . eeVERHMEMT PRINTING .F N C R




If. E. C. Form 1—Page 2 of 3

%
%

16— 3878

Reproduced from the Unclassified / Declassified Holdings of the National Archives

12.

Is any part of this project in conflict with previous congressional action? No previous conflicting

congressional action has been found.

13. Under what provision or classification of projects specified in Section 1, Emergency Relief Appropriation
Act of 1935, may allotment be made legally? The requested allotment appears to be one for
"assistance for educational, professional and clerical persons "within the meaning of clause (e)
14. Has validity of proposed allotment been approved by legal staff of Department or Independent Office? Counsel
ince. for educational, pro­
ope for,"ass
idvises that in his opinion requested a!
~- n
jection to Board of Govi,is,
noo _„
lej
for
this
pro]
' requested:
,
era ors request­
None
ing this allot­
16. Status of plans:
ment.

(а) Surveys?
( б)
(c)

id)
ie)

Work plans?
Sketch plans?
Detail plans? X
Specifications?

17. Status of land or sites:
(а) Acquired?
(б ) Negotiations completed?
(c) Negotiations pending?
(d) Negotiations not begun?
18. Is project wholly or partially self-liquidating under present laws?

No

(Give details on separate sheet as to wherein and to what extent)

19. To what extent will this allotment increase or decrease the annual expense of physical upkeep and operating
cost to the Federal Government?
No change

(a) Increase, $
(b)
20.

21.

By what agency to be borne?

Decrease, $

Extent of participation, if any, by other agencies: None

Justification (a short, concise statement giving reason or necessity for the proposed allotment, including
any comments or further statement about the nature of the work. An additional sheet may be inserted
if necessary): It is expected that this study will yield results of value to com­

mercial bankers in planning the allocation of their assets and to the Reserve Adminis­
tration in formulating its credit policies.
It is understood that all funds allotted upon the basis of this appli­
cation will be handled, disbursed and accounted for by the Works Progress Administra­
tion or by the Treasury Department and none of such funds by the Board of Governors of
the Federal Reserve System or by any Federal Reserve bank.

Allotment of funds for this project requested by:

The Board of Governors of the
_________ .Federal Reserve System_____ __ ___
,

(Department or Independent Office)

____ X signed}.aL.„.J.._.Thomas._____________ ____
(Signature of Head of Department or Independent Office)

Vice Chairman
U. S . GOVERNMENT PRINTING OFFICE




N. E. C. Form 1— Page 3 of 3

16— 367 2

Reproduced from the Unclassified / Declassified Holdings of the National Archives

F o r m N o . 1 31

Office Correspondence
To

FEDERAL RESERVE
BOARD

Board of Governors_________________

From Mr. Vest, A ssistant General Counsel.

Date September 9, 1935.
Snhjert; Request for a llotment of funds
under Emergency Relief Appropriation
Act of 1935.
ero

I have reviewed the attached application for an allotment of
funds under the Emergency Relief Appropriation Act of 1935 in the
light of the memorandum dated September 4, 1935, from the Division
of Research and Statistics and a copy of a mimeographed memorandum
dated September 3, 1935, with reference to this matter.

It is under­

stood from the statement in the memorandum of September 4 that the
request for an allotment of funds from the Works Progress Administra­
tion for the purpose in question and the supervising of the project
as proposed would involve no handling by the Board or its representa­
tives of any funds allocated to this project by the Works Progress
Administration, that all disbursements will be made directly by
representatives of the Works Progress Administration, and that the
Board will have no duty of any kind in connection with this matter
except to furnish a certain amount of supervision.

On the basis of

this under standing, there is in my opinion no legal objection to the
Board’s requesting the allotment of funds from the Yforks Progress
Administration for the study of the distribution and activity of de­
posits as proposed in the attached memoranda, and the attached appli­
cation is, in my opinion, in proper legal form.
Respectfully,

forge B. Vest,
Assistant General Counsel.
Attachments.




16—852

Reproduced from the Unclassified / Declassified Holdings of the National Archives

a'+M-.AU

Q-j ^ p r^^*v

September 9, 1955.

Memorandum for Counsel;

I have received this morning from the Division of
Research and Statistics the attached five copies of 11Applica­
tion for Allotment of Funds under Emergency Relief Appropria­
tion Act of 1955” which I understand to be the application
contemplated by the memorandum from Dr. Goldenweiser to the
Board of which a copy was furnished you recently.
Although the Division of Research and Statistics
has not yet received a reply from Governor Eccles regarding
this project it is believed that the attached application
should be given special consideration ty counsel before it
is presented to the Board in view of the fact that we are
advised that the time limit for filing the application is
September 12, 1955.

CM yd




Reproduced from the Unclassified / Declassified Holdings of the National Archives

r

>

September 5, 1935.

Memorandum for Counsel:

You will find attached a copy of & memorandum
dated September

4 from the

Division of ^search and Sta­

tistics to the Board in regard to a proposed Works Progress
y<*■»mt*

Administration project

on

the distribution and activity of

deposits, together with a copy of a mimeographed memorandum
t. ■

"

dated-September- 5 on this subject and a copy of a memorandum
»*

1

-

... ....

dated June ^ e n t i t l e d "Memorandum on r/hite Collar Projects
under the Works Relief Program" •

there is also attached a

copy of a memorandum which I have sent today on this sub­
ject to Messrs. Thomas, James and Szymcsak, the only ap­
pointive members of the Board who are here today.

Secretary,

CM yd

( W




.. r >
;V<t- ia-fjfe.
'* V.l ,

Reproduced from the Unclassified / Declassified Holdings of the National Archives

2 4 - 4 .>1/

(lh j z + n j L

September 5, 1955.

Meaorandu, to »r. Jaaeat

There Is attached e copy of a memorandum from
the Division of Research and Statistics on the subject of
a proposed WPA project on the distribution and activity
of deposits.

You will find attached also a copy of a

memorandum prepared in the Division of Research and Sta­
tistics under date of September 5 on this subject, together
£

v.

•

. % **

_

with a copy of the memorandum of June 26, 1935,

The pro­

posed application is being prepared in the Division of
Research end Statistics,
X am advised by Dr, Currie that the matter has
been taken up by mail with Kr. hecles and that hie response
is being awaited before asking the Board to take definite
action upon the recommendations contained in the memorandum
submitting the matter to the Board,

If there are any

questions regarding this matter upon which you wish further
information it is suggested that you ask Dr, Currie to
come over to see you about them.

Secretary,

CK yd




Reproduced from the Unclassified / Declassified Holdings of the National Archives

.2 H U
D/jcuiUG,

X)<i ->*-■September 5, 1955.

Maaorfcndu. to Mr, Szymcaak:
q/UI

There Is attached a copy of a memorandum from
the Division of Research and Statistics on the subject of
a proposed WPA project on the distribution and activity
of deposits.

You will find attached also a copy of a

memorandum prepared in the Division of Research and Sta­
tistics under date of September 5 on this subject, together
with a copy of the memorandum of June 86, 1955. I The pro­
posed application is being prepared in the Division of
Research and Statistics.
X am advised by Dr. Currie that the matter has
been taken up by mail with Hr. Boole# and that his response
4

is being awaited before asking the Board to take definite
action upon the recommendations contained in the memorandum
submitting the matter to the Board.

If there are any

questions regarding this matter upon which you wish further
information It is suggested that you ask Dr. Currie to
come over to see you about them.




Secretary.

II

Reproduced from the Unclassified / Declassified Holdings of the National Archives

X t i

F o r m N o . 1 31
f

f *

In J tu Tju
1

/^ 1

j

Urhce Correspondence
T o ______ T h e Board____________________

FEDERAL RESERVE

D ate
S ubject:

F ro m ___ E* A# Goldenwei^gr

September 4, 1935*

WPA project on the distribution
and activity of deposits
epo

16—852

On June 26th the Executive Committee, on the basis of a memorandum
submitted by the Division of Research and Statistics, authorized the
Division to explore the feasibility of sponsoring two projects to be
submitted to the Works Progress Administration and to be financed under
the Works Relief Appropriation* A copy of the memorandum is attached.
On the basis of the preliminary work done, I recommend that the Board
sponsor a sample study of the distribution and activity of deposits* This
sponsorship will involve no commitment of any kind by the Board except to
furnish a certain amount of supervision, and will involve no handling by
the Board of any funds allocated to this project by the WPA, since all the
disbursements will be made directly by the regional representatives of the
WPA* The mode of procedure has been discussed with individual bankers,
officials of various banking associations, and the Comptroller of the Curr*
ency, and it is felt that sufficient assurance of cooperation has been re*
ceived to justify initiation of the study. A general description of the
project is attached*
Information on the distribution of deposits, of changes in that distri­
bution, and on the credits to personal accounts should (a) be a step toward
the study of the motives which lead individuals and corporations to vary
the size of their deposit holdings, and thus aid in policy making and bank
management; (b) throw light upon developments in business, and hence aid in
the formulation of banking policy; (c) throw light upon the variability of
deposits by types of depositors and by size, and thus aid in the problems
of bank management and the proper allocation of assets; and (d) give a test
as to the correspondence of credits and incomes of various classes of cont»
sumers* A specific list of questions on which information of the type in
mind may throw light is contained in the attached description of the project*
If the Board decides to sponsor this project, it is recommended that
action be taken on the following matters*
1*

Approve the attached application.

2.
Authorize the Division of Research and Statistics to supervise the
project and to handle all correspondence in connection with it*
3* Authorize the Director of the Division of Research and Statistics,
or one of his associates designated by him, to represent it in all contacts
with the Works Progress Administration arising out of the application*
4* Authorize the Agent *s Departments of the Federal Reserve banks to
supply regional supervision of the project*
5* Authorize the Division to state in the formal submission of the pro*
ject that the Board will undertake to publish the findings odf the study which
in its judgment are significant and valuable*
/ c ^ ✓




y^TWJTES

ON

sep 121935yS^

Reproduced from the Unclassified / Declassified Holdings of the National Archives

zt(

Office Correspondence

FEDERAL RESERVE
BOARD

Date

September 4 , 1 955.
_ fit/

To__________ Mr. Morrill_____________ _

Subject:

White-collar project.

From_______ Lauchlin Currie

I have just sent you some material on the white-collar project.
The application form, which if the project is approved will be signed,
I suppose, by Governor Thomas, is not yet completely filled out.
I will get it over to you in the course of the day.




win me unudbbmeu/ ueciassmea Holdings of the National Archives

NOT FOE PUBLICATION

September 3» 1935

A PROPOSED WORKS PROGRESS ADMINISTRATION
STUDY OF THE DISTRIBUTION AND ACTIVITY
OF DEPOSITS

The Division of Research and Statistics, in investigating the feasi­
bility of various proposed projects, set up certain conditions which it was
felt should be fulfilled by any study submitted to the Board.
tions wore that:

These condi­

(l) it should yield results of immediate value to bankers;

(2) it should yield results that would aid the Board of Governors to dis­
charge its reponsibility for the formulation of credit policies;
should permit the efficient use of white-collar workers;

(3 ) it

(4) it should be

a study which would otherwise not have been initiated; and (5 ) it should
enlist the interest and cooperation of the bank officers whose consent would
be necessary in order to obtain information from bank records.

After investi

gation it was felt that a study of the distribution and activity of deposits
best satisfied these conditions*
The project consists essentially of a sample study of the movement of
deposit balances in business, financial, and personal accounts and of the
activity of personal accounts over the period January 1928 to June 1931 from
four sources of information:

the records of national banks now in the hands

of receivers, the records of active member banks willing to provide desk
space and access to back ledgers to relief workers, replies to a voluntary
questionnaire to be sent to all member banks, and replies to a voluntary
questionnaire to be sent to a selected list of large corporations.




uuuueu iium me unciassmea / Declassified Holdings of the National Archives

e ©

© O;
-

I•

2

-

The bearing of the study on problems of bank management
Few banking problems are more important or more difficult than that

of striking a proper balance between profitableness and liquidity in the
investment of funds.

The extremely low rates of interest on liquid paper

and the abundance of loanable funds make this a particularly urgent problem
at the present time.

One factor that makes the problem so difficult of

solution is the uncertainty of the future behavior of deposits.

If a banker

could be assured that in the event of a business recession his deposits would
decline by no more than ten percent, he would feel justified in making a dif­
ferent distribution of his assets than if he had to expect a possible shrink­
age of fifty percent.
A banker knows, of course, that some of his accounts are comparatively
stable, while others are subject to wide variation.
has been limited to his own bank.

His experience, however,

No general study of the variability of

various types of personal and business deposits, based on the history of
many accounts over a period of years, has ever been attempted.

Such a study

may disclose that various types of business and personal accounts conform to
fairly definite patterns of behavior at different phases of the business
cycle.

If this should prove to be the case, the proposed study would make

a valuable contribution to the fund of information which bankers have at
their disposal in striking a proper balance between profitableness and
liquidity in the investment of their funds.

It is appreciated, of course,

that the determination of the facts in a field of this nature must always be
subject to a wide margin of error.

Any narrowing of this margin of error,

however, would constitute a real contribution to the improvement of banking
practice in this country.




rxepiuuuuea irom me unciassihed / Declassified Holdings of the National Archives

- 3 The growth of the service charge among "banks in recent years has di­
rected the attention of "bankers to the widely varying costs and profits in­
volved in holding different types of deposits.

An aspect of this problem

which has been somewhat neglected is the fact that the profitableness of a
deposit to a bank depends not only on its size and activity, but also on its
( variability, which determines the kind of asset it permits a bank to acquire.
Definite information on the variability of various types of deposits might
furnish a basis for differentiation between them in determining service
charges and minimum balances.
Complete coverage tabulations of the deposits of closed banks as of two
dates, one in 1 9 2 9 and one in 1 9 3 1 * may reveal the sources of the drains of
funds to which banks are exposed during periods of financial strain and throw
i additional light on the efficacy of deposit insurance as a method of lessen­
ing the frequency of runs and failures.

II.

The bearing of the study on problems of credit policy
The Reserve Administration is concerned not only with improving banking

practice, but also with the formulation of national credit policies and exert­
ing an influence on the total volume of deposits.

It is believed that informa

tion on the distribution of deposits among individuals and businesses, on the
shifts in that distribution, and on credits and debits to personal accounts
would prove helpful in the determination of the deposit or monetary require­
ments of the country.

More specifically, such information would help to

answer the following questions:
1, Do changes in the rate at which money flows from pro­
ducers to consumers and from consumers to producers evidence
themselves initially in a change in the deposit holdings of
different groups? If so, such changes would throw light upon
current and prospective business trends.




reproduced from the Unclassified / Declassified Holdings of the National Archives

Jr1
- u

2. Is the downward, trend of business activity associated
in any way with a marked shift of deposits from personal to
industrial or financial accounts? Is an upward movement asso­
ciated with a shift in the opposite direction? How far should
such shifts be taken into consideration by the Reserve Admini­
stration in influencing the total volume of credit?
3. What are the changes in the deposit holdings of various
groups and classes in response to increasing or decreasing se­
curity speculation? Did the deposits of financial concerns in­
crease relatively to industrial and personal deposit holdings
in 1922-1929? What, if any, marked shifts occurred during and
after the stock market crash? Answers to these questions would
aid in understanding the economic repercussions of security
speculation.
4. What factors determine the deposit or monetary require­
ments of individuals and different types of businesses? How far
are such requirements a function of income, of wealth, of the
volume of operations, of business expectations, etc.? Informa­
tion on the distribution of deposits and of changes in the dis­
tribution is a prerequisite for a study of such factors.
5. To what extent and for what classes of consumers do
credits approximate incomes? What is the relation of the deposits
to incomes of various income groups in various phases of business
activity? What is the typical response of the deposits of in­
dividuals to increases or decreases in incomes?

Ill,

The use of white-collar workers
Since few of such workers are trained for skilled analysis, it is felt

that they could be used most effectively for simple transcribing and tabulat­
ing operations.

The transqription and tabulation of personal and business

checking accounts and of credits to personal accounts fall in this category,

IV*

Opportunity afforded by Works Relief Program
Valuable though the information in question would be to member banks

and to the Reserve Administration, it is doubtful whether it would be feasible
for the Board or the Reserve banks to undertake the tabulation, both because
of the magnitude of the task and because of the depressed state of bank




eproduced from the Unclassified / Declassified Holdings of the National Archives

- 5earnings.

The initiation of the Federal Horks Relief Program, however, makes

possible the transcription and tabulation of the necessary data with a minimum
of expense and inconvenience to member banks and Reserve banks.
The contribution which the Reserve Board and banks would make to the
study would consist in furnishing the services of one employee at each of the
banks and branches and three persons in the Division of Research and Statis­
tics for the duration of the study and the cost of mimeographing, correspond­
ence and mailing.

It is also anticipated that the Board would publish the

results of the study, provided that the investigation yields results, which,
in the opinion of the Board, meet the standards established for its official
statistical publications.
It appears therefore that the project under discussion fulfills admirably
all requirements.

It would aid in answering many questions of immediate and

practical concern to commercial bankers and to the Reserve Administration.
It would be a thoroughly cooperative study, since the Government would furnish
some workers, the banks would furnish others, the Federal Reserve banks would
furnish supervision, and the Federal Reserve Board would undertake the general
supervision of the project and the analysis of the results.

V,

Cooperation of bank officers and receivers
The plan of procedure has been discussed with officials of the New York

State Bankers Association, the Reserve City Bankers Association and the
American Bankers Association and has been revised at many points in accordance
with their suggestions.

It is hoped that it will be possible to obtain

official endorsement of the project from these bodies.

The original intention

was to place relief workers in a large number of active banks as well as in




IUVGU ,lum

unudssmea / Declassified Holdings of the National Archives

closed banks, but this part of the plan has been reduced to minor importance
because of objections from bank officers to whom the idea was presented.
The present scheme of procedure is to send letters to 500 banks whose full
participation would be especially valuable requesting that they indicate
whether they prefer to fill out a questionnaire or to permit relief workers
access to their back ledgers.

Banks preferring to fill out questionnaires

or failing to respond at all will be sent questionnaires similar to those
sent all other member banks.

The time necessary to fill out these question­

naires would vary from one clerk week for the small banks to two clerk
months for the very large banks*

It is hoped that some banks will be willing

to permit access to relief workers, since in this way the number of accounts
transcribed could be considerably increased.
The Comptroller of the Currency, in a reply to a letter from Governor
Eccles, indicated readiness to cooperate in the project and designated officials
in his office to work with the Board’s staff in negotiating with individual
bank receivers.

VI.

Description and scope of project
In view of the large number of banks and deposit accounts in this country,

it is not feasible to attempt a complete coverage study for the extended
period in mind.

Recourse must be had

to sampling.

In advance of responses

to the questionnaire and indication of the number of banks willing to give
access to relief workers, the nature of the sample to be obtained must remain
doubtful.

It may be pointed out, however, that the study constitutes an

attempt to utilize every possible source of information.

Precautions would

be taken to insure some representation of every important type of deposit.




Reproduced from the Unclassified / Declassified Holdings of the National Archives

^ Q

/

© ©

- 7-

To avoid confusion on the part of hanks answering the questionnaire only one
type of account would he requested from each hank.

From the study made in

the 100 odd closed hanks it is hoped to obtain 180,000 personal accounts and

l4 o ,000

business accounts.

No estimate of the number of accounts to he ob­

tained from hanks permitting access to relief workers can he made at this
time.

The questionnaire to banks would request information on 200,000 personal

accounts and 110,000 business accounts.

The questionnaire to corporations

would request information from 2,000 corporations.
credits and debits will also he available.

For the personal accounts,

To avoid movements in deposit bal­

ances ascribable to different days of the week or date of the month, accounts
will he transcribed as of the Wednesday between the sixth and the twelfth of
each month.

The size and type of all deposits in the closed banks and the

active banks permitting access to files will be tabulated as of a date in
June 1928 and a date in June 1931*
Balances of larger corporations which are customarily distributed among
many banks give rise to special difficulties when a sampling technique is
employed.

To include in the study that part only of a corporation's deposits

which happens to be in one of the banks from which responses will be secured
would offer a most insecure basis for drawing any conclusions as to the be­
havior of the total deposits of the corporation.

To exclude all large corpora­

tion deposits, however, would seriously impair the representativeness of the
sample, and detract from the value of the study.

The best way out of this

difficulty would be to obtain the deposit holdings directly from a sample of
the larger corporations.

It is planned, therefore, to ask the cooperation

of selected corporations in this matter.




rcepruuucea rrom tne unclassified / Declassified Holdings of the National Archives

s %

% ^
- 8 -

It is proposed that the study cover the period from January 1928 to
June 1931» inclusive.

By choosing this period the behavior of deposits during

an upswing, a critical turning point, and a depression may be studied.

The

period after June 1931 was so abnormal that it is highly questionable whether
generalization based upon it would be useful for current and future operating
purposes.

Transcription of very recent records would interfere too much

with current bank operating routine.

VII.

Superj-vision

General supervision of the project would be undertaken by the Division
*
of Research and Statistics. Designated officers in the Federal Reserve banks
would act as regional supervisors.

Field supervisors would arrange with the

local United States Employment Service, with closed national bank receivers
and with the participating banks’ officers for the appointment of whitecollar workers and would supervise their work*

Tabulation of all data would

be carried out in New York, where the largest number of skilled white-collar
workers are on the relief rolls.

VIII.

Confidential nature of source material
It is appreciated that the information required is of a highly confidential

character, and every possible precaution will be taken to prevent any dis­
closures.

The names of customers in closed and active banks where relief

workers aro used will be detached from the schedules by the field supervisors
and thereafter will be related to the schedules by code numbers.

Ramos of

customers would not be requested on the voluntary questionnaires sent to
member banks.




It is expected that the relief workers employed will be mainly

Reproduced from the Unclassified / Declassified Holdings of the National Archives

- 9 -

former employees of financial institutions who already appreciate the confi­
dential nature of personal financial accounts.

Finally, it is expected that

the hank officers and receivers concerned will suggest names or qualifications
and interview applicants sent to them hy the local United States Employment
Service, so that they will he in a position to satisfy themselves as to the
discretion and integrity of the persons given employment.

IX,

Time required for completion of pro.ject
If work can he started hy October 15, 1935> it is expected that final

tables will he available for analysis hy June 1, 1936.

It is planned to pro­

vide work for eight months for each person employed.

X.

The magnitude of the project
It is estimated that the project as now drawn up would involve the

expenditure of $535:000 and give employment to 820 persons




Reproduced from the Unclassified / Declassified Holdings of the National Archives

N

(3

t V.w£ ( ~

f

v/

4

r (

i
A M

September

3

.

1935

llARBXTOt S. BCCLSS

#

QOLDJWffBISEH KBCOMMjOTOS BY LETTER THAT BOARD SPONSOR HEYISED WHITE
COLLAR PROJECT.

LAlICHLIN CURRIE
LC/rj




J

u lc vnudbbmeu / ueciassinea Holdings of the National Archives

''rV

August 51, 1955

Honorable Me S« Eccles, Chairmen
Boerd of Governors of the
Federal Reserve System
Washington Building
Washington, D# C#
Deer Mr# Eccles*
On August 27 the President issued an order to the agencies administering
the Work Relief Project containing the instructions that all applications
for funds under that program must be in the hands of the Division of
Applications and Information by September 12, and that no application mould
be accepted after that date* This applies to shite-collar projects
such as the study of the distribution and activity of deposits ehich the
Division of Research and Statistics has hnd under consideration for some
time# Mr* Currie, who has been supervising the work on this project, left
for his vacation a few days before this order was issued and will be unable
to return to Washington until Tuesday, September 5# He has kept in touch by
telephone with preparations for the project, however, and feels the general
outline of the study is sufficiently definite to request your approval of the
project# He should like any comments that you may wish to m*ke and also, as
soon as possible, your permission to submit the project to members of the
Board now In Washington#
Although this procedure is unusual we feel that circumstances make the
matter one of sufficient urgency to justify it# Before a formal application
can be submitted to the Division of Applications and Information It is not
only necessary that your approval be obtained through the mails, but the
project must be presented to the Bonrd members in Washington and their
favorable action obtained, the metier mist be cleared with the Counsel* s
office, and the Coordinating Committee at tlie Central Statistical Board
must be consulted# A letter and outline of the project is also being sent
to Mr# Goldenweiser for his comments and approval#
It should be said that the Board may at this time approve the general
plan of the proj ect for submission to the Division of Applications and
Information, subject to change as to details and also conditional upon
obtaining the necessary cooperation from banks end other agencies*




Reproduced from the Unclassified / Declassified Holdings of the National Archives

I

Mr. E c d e e —

#2

An explanatory statement of the project, prepared for submission to
members of the Board, accompanies this letter# You are familiar with the
general outline of the proposal, as well as with the objections which were
raised against it in the form in which it was originally presented# In its
present form the study has been much restricted in scope in order to meet
these objections# It is now proposed to obtain information on deposit
balances and deposit activity from four sources! (1) the records of selected
closed national banks} (2) a questionnaire to be sent to all member banks
requesting information on a very small number of accounts from each} (5) a
questionnaire to a selected list of large corporations requesting information
as to their deposit balances over the same period covered by the information
requested from banks} and (4) the records of a small number of active member
banks who Mgr be willing to cooperate on the original basis of employing relief
workers to transcribe their records#
It may be that it will be considered inadvisable to attempt to obtain
information from any except the first of these sources# In that case, it is
still felt that such a study will yield significant and valuable results
although, of course, the bearing of such a study would be considerably
changed from what was intended for the stud/ now proposed# A study confined
to closed banks would naturally be an investigation into the causes of bank
failures and would include a study of the quality of bank assets, a matter
which is not covered by our present plans# The consent and approval of the
Comptroller of the Currency has already been obtained for the use of relief
workers in closed national banks, and details of this part of the project
are being worked out in cooperation with his office#
Detailed estimates of the number of workers to be employed and the
cost of the project are now in process of preparation end will be transmitted
to you in a few days# In our present conception of the scope of the project,
however, it la possible to estimate that about 1,000 people w3JU be given
employment for a period of approximately eight months at a cost of about
$500,000# The contribution of the federal Reserve System will consist of
the part-time services of one person In the statistical department of each
of the federal Reserve banks and their branches, the full-time services of
three persons in the Board1a Division of Research and Statistics, end
mimeographing and mailing costa, the latter not to exceed $10,000#
Very truly yours,

Woodlief Thomas
Assistant Director of
Research and Statistic#

IE—Jh




Reproduced from the Unclassified / Declassified Holdings of the National Archives

a < 4 4 ZA {

0 r*

Englewood Beach,
August 1, 1935*

Dear M.» Thoa&as

i m

I have your letter* I aa prepared to recommend to the
Board that the project for the study of deposits be authorised
a eeen*> of obtaining inform* tion that promises to be useful
the Briber h nks end to the System, as well as to afford
)loy»^nt to bank clerics on relief*
I take it that X n ed not go Into further details on the
subject and that all the preliminaries will be handled by
Currie and yourself*




Sincerely yours,
(Signed)

S* A. Goluenwelaer

tjj

' ' " ' UUUUCU " Um Ine

Unc,assified'Declassified Holdings of the National Archives

. 3 f; '$ r.
^S

l

S

U

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^

-L

/

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n c piuuuieu Iium me unciassmea / Declassified Holdings of the National Archives

Board of Governors
August 50, 1935
Division of Research and Statistics

MK

,

A PROPOSED WORKS PROGRESS ADMINISTRATION
STODX OF THE DISTRIBUTION AND ACTIVITI
OF DEPOSITS

The Board of Governors of the Federal Reserve System authorised its
Division of Research and Statistics to investigate the feasibility of
acting as sponsor for a project under the Works Progress Administration
which would have as its object the securing of valuable information in
the field of banking through the employment of white-collar workers now
on relief rolls.

After investigation of several proposed studies, the

Division of Research and Statistics submits for the approval of the Board
of Governors a proposed sample study of the distribution and activity of
deposits together with an application which it is recommended that the
Board authorize to be transmitted to the Division of Applications and
Information.

The project is submitted for approval at this time because

recent instructions to the agencies administering the Works Relief Program
indicate that applications must be received by the Division of Applications
and Information not later than September 12 and actual work on all projects
begun by October 22 .

In authorizing the application, it is necessary for

the Board to designate an agent to represent it in all contacts with the
Works Progress Administration arising out of the application, to authorize
its fiscal officer to certify that the contributions by the Board specified
in the application will be available, and to make a provisional commit­
ment to publish the study.




xt^uuuueu num me unciassinea / Declassified Holdings of the National Archives

-

2

-

The study submitted for approval conforms, in the opinion of the
Division, to certain necessary conditions which it was felt that such
a project should satisfy.

These conditions were that:

(1) it should

yield results of immediate value to bankers; (2) it should yield results
that would aid the Federal Reserve Board to discharge its responsibility
for the formulation of credit policies! (5) it should permit the efficient
use of white-collar workers; (4) it should be a study which would other­
wise not have been initiated; and (5) it should enlist the interest and
cooperation of the bank officers whose consent would be necessary in
order to obtain information from bank records.
The project consists essentially of a study of the movement of
balances in business, financial, and personal accounts and of the activity
of personal accounts over the period January, 1928, to June, 1951, from
four sources of information:

the records of national banks now in the

hands of receivers, the records of active member banks willing to

rovide

desk space and access to back ledgers to relief workers, replies to a
voluntary questionnaire to be sent to all member banks, and replies to
a voluntary questionnaire to be sent to a selected list of large corpora­
tions*
I. The bearing of the study on problems of bank management
Few banking problems are more important or more difficult than that
of striking a proper balance between profitableness and liquidity in the
investment of funds.

The extremely low rates of interest on liquid paper

and the abundance of loanable funds make this a particularly urgent problem




' t' cwa!» ,Mea M0,din9S of the National Archives

at the present time.

One factor that makes the problem so difficult

of solution is the uncertainty of the future behavior of deposits.

If

a banker could be assured that in the event of a business recession his
deposits would decline by no more than ten percent he would feel Justified
in making a different distribution of his assets than if he had to exoect
a possible shrinkage of fifty percent.
A banker knows, of course, that some of his accounts are comparatively
stable, while others are subject to wide variation.
however, has been limited to his own bank.

His experience,

No general study of the

var lability of various types of personal and business deposits, based
on the history of many accounts over & period of years, has ever been
attempted.

Such a study may disclose that various types of business

and personal accounts conform to fairly definite patterns of behavior
at different phases of the business cycle.

If this should prove to be

the case, the proposed study would make a valuable contribution to the
fund of information which bankers have at their disposal in striking a
proper balance between profitableness and liquidity in the investment
of their funds.

It is appreciated, of course, that the determination

of the facts in a field of this nature must always be subject to a wide
margin of error.

Any narrowing of this margin of error, however, would

constitute a real contribution to the improvement of banking practice in
this country.
The growth of the service charge among banks in recent years has
directed the attention of bankers to the widely varying costs and profits
involved in holding different types of deposits.




An aspect of this

Reproduced from the Unclassified / Declassified Holdings of the National Archives

problem which has been somewhat neglected Is the fact that the profit­
ableness of & deposit to a bank depends not only on its size and
activity, but also on its variability, which determines the kind of
asset it permits & bank to acquire.

Definite information on the Variability

of various types of deposits might furnish & basis for differentiation
between them in determining service charges and minimum balances.
Complete coverage tabulations of the deposits of closed banks as
of two dates, one in 1929 and one in 1931, may reveal the sources of
the drains of funds to which banks are exposed during periods of financial
strain and throw additional light on the efficacy of deposit insurance
as a method of lessening the frequency of runs and failures.
II* The bearing of the study on problems of credit policy
The Reserve Administration is concerned not only with improving
banking practice, but also with the formulation of national credit
policies and exerting an Influence on the total volume of deposits.

It

is believed that information on the distribution of deposits among
individuals and businesses, on the shifts in that distribution, and on
credits and debits to personal accounts would prove helpful in the
determination of the deposit or monetary requirements of the country.
More specifically, such information would help to answer the following
questionsi
1.
Do changes in the rate at which money flows from
producers to consumers and from consumers to producers evidence
themselves initially in a change in the deposit holdings of
different groups? If go, such changes would throw light upon
current and prospective business trends.




me unclassified / Declassified Holdings of the National Archives

*■

- 5 -

2* Is the downward trend of business activity associated
in any way with a *&rked shift of deposits from personal to
industrial or financial accounts? Is an upward movement asso­
ciated with a shift in the opposite direction? How far should
such shifts be taken into consideration by the Reserve Adminis­
tration in influencing the total volume of credit?
5.
What are the changes in the deposit holdings of various
groups and classes in response to increasing or decreasing
security speculation? Did the deposits of financial concerns
increase relatively to industrial and personal deposit holdings
in 1928-1929? What, if any, marked shifts occurred during and
after the stock market crash? Answers to these questions would
aid in understanding the economic repercussions of security
speculation•
4. What factors determine the deposit or monetary require­
ments of individuals and different types of businesses? How far
are such requirements a function of income, of wealth, of the
volume of operations, of business expectations, etc? Information
on the distribution of deposits and of cn&nres in the distribution
is a prerequisite for a study of such factors.
5. To what extent and for what classes of consumers do
credits approximate incomes? What is the relation of the deposits
to incomes of various income groups in various phases of business
activity? What is the typical response of the deposits of
individuals to increases or decreases in incomes?
III.

The Use of White-collar Workers
Since few of such workers are trained for skilled analysis, it is

felt that they could be used most effectively for simple transcribing
eu,d tabulating operations.

The transcription and tabulation of personal

and business checking accounts and of credits to personal accounts fall
in this category.
IV.

Opportunity Afforded by Works Relief Program
Valuable though the information in question would be to member banks

and to the Reserve Administration, it is doubtful whether it would be




nepruuucea Trom tne unclassified / Declassified Holdings of the National Archives

feasible for the Board or the Reserve banks to undertake the tabulation,
both because of the magnitude of the task and because of the depressed
state of bank earnings.

The initiation of the Federal Works Relief

Program, however, ,«&kes possible the transcription and tabulation of
the necessary data with a minimum of expense and inconvenience to member
banks and Reserve banks.
The contribution which the Reserve Board and banks will make to
the study will consist in furnishing the services of one employee at
each of the banks and branches and three persons in the Division of
Research and Statistics for the duration of the study and the cost of
mimeographing, correspondence and mailing, the latter being estimated
at |6,500.

It is also anticipated that the Board will publish the

results of the study, provided that the investigation yields results,
which, in the opinion of the Board, meet the standards established for
its official statistical publications.
It appears therefore that the project under discussion fulfills
admirably all requirements.

It would aid in answering many questions

of immediate and practical concern to commercial bankers and to the
Reserve Administration.

It would be a thoroughly cooperative study,

since the Government would furnish some workers, the banks would furnish
others, the Federal Reserve banks would furnish supervision, and the
Federal Reserve Board would undertake the general supervision of the
project and the analysis of the results.




Reproduced from the Unclassified / Declassified Holdings of the National Archives

V.

Cooperation of bank Officers
The plan of procedure has been discussed with officials of the

Reserve City Bankers Association and the American Bankers Association
and has been revised at many points in accordance with their suggestions.
It is hoped that it will be possible to obtain official endorsement of
the project

from

both bodies.

The original intention was to place

relief workers in a large number of active banks as well as in closed
banks, but this part of the plan has been reduced to minor importance
became© of objections from bank officers to whom the idea was presented.
The present scheme of procedure is to send letters to 500 banks whose
full participation would be especially valuable requesting that they
indicate whether they prefer to fill out a questionnaire or to permit
the use of relief workers in their files.

Banks preferring to fill

out questionnaires or failing to respond at ell will be sent questionnaires
similar to those sent all other member banks.

It is hoped that some banks

will be willing to permit access to relief workers, since in this way
the number of accounts transcribed could be considerably increased.
VI.

Description and Scope of Project
In view of the large number of banks and deposit accounts in this

country, it is not feasible to attempt a complete coverage study for
the extended period in mind.

Recourse must be had to sampling*

In

advance of responses to the questionnaire and indication of the number
of banks willing to give access to relief workers, the nature of the
sample to be obtained must remain doubtful.

It may be pointed out,

however, that the study constitutes an attempt to utilize every possible




uvcu " um

uiiuiassmea / Declassified Holdings of the National Archives

V . . .

.

9V,

SO

- 6 -

source of information.

Precautions have been taken to insure some

representation of every important type of deposit.

To avoid confusion

on the part of banks answering the questionnaire only one type of
account has been requested from each bank.
closed banks it is hoped to obtain
business accounts.

From the study made in

personal accounts and

So estimate of the number of accounts to be obtained

from banks permitting access to relief worxers can be made at this
time.

The questionnaire to banks requests information on _________

personal accounts and

business accounts.

The questionnaire

to corporations will request information f r o m ________ corporations.
the personal accounts, credits and debits will also be available.

For
To

avoid movements in deposit balances ascribeble to different days of
the week or date of the month, accounts will be transcribed as of the
Wednesday between the sixth and the twelfth of each month.

The size

and type of all deposits in the closed banks and the active banks
permitting access to files will be tabulated as of a date in June, 1928,
and a date in June, 1951.
Balances of larger corporations which are customarily distributed
among many banks give rise to special difficulties when a sampling technique is employed.

To include in the study that part only of a

corporation*e deposits which happens to be in one of the banks fro*
which responses will be secured would offer a most insecure basis for
drawing any conclusions as to the behavior of the total deposits of
the corporation.

To exclude all large corporation deposits, however,

would seriously Impair the representativeness of the sample, and detract




me unclassified / Declassified Holdings of the National Archives

__ zLz :~

■

-

■

__

ip e r*

80, 1886
j&jg-d

i-

^e*

{flt

...,,

- 9 -

from the value of the study. The best way out of this difficulty would
be to obtain the deposit holdings directly from a sample of the
larger corporations.

It is planned, therefore, to ask the cooperation

of selected corporations in this matter.
It is proposed that the study cover the period fro® January 1928
to June 1931, inclusive.
•»*<» >*.*•«•».; v

.

*

*

By choosing this period the behavior of deposits
_

w

j

'

.

;

i-1-

t --**—

i~ ir

Mir**ir k ‘

Jj..»»riii>i.riffn— r~ •

during an upswing, a critical turning point, and a depression may be
studied.

The period after June 1951 was so abnormal that it is highly

questionable whether generalisation based upon it would be useful for
current and future operating purposes.

Transcription of very recent

records would interfere too much with current bank operating routine.
VII.

Supervision
General supervision of the project will be undertaken by the Division

of Research and Statistics of the federal Reserve Board.

Designated

officers in the Federal Reserve banks will act as regional supervisors.
Field supervisors will arrange with the local United States Employment
with
Service,/closed national bank receivers and with the participating
banks* officers for the appointment of white-collar workers and will
supervise their work.

Tabulation of all date will be carried out in

New Xork, where the largest number of skilled white-collar workers
are on the relief rolls.
VIII.

Confidential Mature of Source Material

It is appreciated that the information requiwed is of a highly
confidential character, and every possible precaution will be taken




the Unclassified / Declassified Holdings of the National Archives

-

to prevent any disclosures*

10

-

The names of customers in closed and active

banks where relief workers are used will be detached from the schedules
by the field supervisors and thereafter will be related to the
schedules by code numbers and names of customers will not appear on
schedules received in response to the questionnaire.

It is expected

that the relief workers employed will be mainly former employees of
financial institutions who already appreciate the confidential nature
of personal financial accounts,

finally, it is expected that the bank

officers concerned will suggest names or qualifications and interview
applicants aent to them by the local United States Employment Service,
bo that they will

be in a position to satisfy themselves as to the dis­

cretion and integrity of the persons given employment.

In the smaller

cities it may prove desirable to bring in strangers from neighboring
large cities.
IX.

lime necuired for Completion of Project
If work can be started by October 15th, 1955, It is expected that

final tables will be available, for analysis by June 1, 1956.

It la

planned to provide work for eight months for each person employed.
X. The fcia£aitude of the Project
It is estimated that the project as now drawn up would involve the
expenditure o f ___________ and give employment to 4persons.




Reproduced from the Unclassified / Declassified Holdings of the National Archives

August 27, 1955

L.B. CURRIE
MARGINAL ACRES
HANCOCK, NEW HAMPSHIRE
APPLICATION MUST GO TO DAI BY SEPTEMBER 12
ON CLOSED BANK PHASE




KROST

AM CONCENTRATING

This document is protected by copyright and has been removed.
Article Title:

Work Relief Time Set by Roosevelt

Journal Title:

New York Times

Date:

August 26, 1935

This document is protected by copyright and has been removed.
Author(s):

The United Press

Article Title:

Deposit Survey of 500 Banks Asked by Board

Journal Title:

New York Tribune

Date:

August 23, 1935

This document is protected by copyright and has been removed.
Article Title:

Deposit Survey Proposed

Journal Title:

New York Times

Date:

August 23, 1935

This document is protected by copyright and has been removed.
Article Title:

Studying Bank Deposits

Date:

August 23, 1935

This document is protected by copyright and has been removed.
Article Title:

Banking

Date:

August 23, 1935

Reproduced from the Unclassified / Declassified Holdings of the National Archives

IX*.jjh. •*'.f‘'iGovernor Bcclee
Lauchlin Currie

fresent Status of the
White-Collar Project*

Acting upon your suggestion, I have interviewed various bankers, with
none too encouraging results* Hr. Colt evidenced a good deal of interest
in the project and said that he thought results night be very well worth­
while from the bankers1 point of view* He thought, however, that the N«w
fork banks would be adverse to allowing any white-collar workers access to
their hoc* ledgers* He suggested, •however, that If X pointed out ttyi value
of the study to individual banker# and then asked than to transcribe a lim­
ited number df accounts that I might get a pretty good response* 9 c said
that he would be glad to put a good man on the job for me* Hr* fmer.ion con­
curred in Mr* Colt* s views*
Today Dr* Golaenweiser and I had a conference with Mr* Hacht and Mi'*
Fleming* They seemed to be much more cooperative and interested than the
New York people, although they likewise felt that many bankers would be re­
luctant to use white-collar worker * Mr, fiecht, however, suggested that
a possible mode of operation would be to give the bankers a choice of having
workers supplied by us or of supplying the information themselves* H*> felt
we might find that in many cases the banks would not be adverse to taking
on former trusted employees. They took along a description of the project
and promised to get in touch with me after they had gone ovtr it thorou hly*
Offhand, they saw no objection to the A*B*A* endorsing the project*
I also obtained an interview with the Controller of the Currency,
after having first discussed the project with Hr* Await* Mr* 0*Connor
expressed himself as interested, and said that he would be glad to cooperate
with us in the study, end in so far as the receivers were agreeable, pvrmit
the transcription of the required information from the ledgers of the sus­
pended national banks* He suggested that X work out the details later with
Mr* Await and Mr* Gough,
It would seem, therefore, that although the project may have to be
restricted in scope, there is still a chance of obtaining some information
on the behavior of deposit# by classes, in the period from 1928 to the
middle ef 1951* When you get beck from your vacation X expect to have
ready for your consideration a revised plan of procedure*

LC:em




Reproduced from the Unclassified / Declassified Holdings of the National Archives

i

August 2£, 1935,
Present Status of the
Whito-Coll&r Project*

Acting upon your suggestion, I have interviewed various bankers, with
none too encouraging results# Mr, Colt evidenced a good deal of interest
in the project and said that he thought results night be very well worth­
while frou the bankers1 point of view. He thought, however, that the Hen
York banks would be adverse to allowing any whitrs-coll&r workers access to
their hack ledgers. He suggested, however, that if 1 pointed out the value
of the study to individual bankers and then asked them to transcribe a lim­
ited number of accounts that I might get a pretty good response. He said
that he would be glad to put a good aaa on the Job for me. *r. Emerson con­
curred in Hr, Colt1a views,
/
Today Dr* Qoldenweieer and I had a conference with Mr. Hecht and Mi'.
Fleming* They seemed to be much aorr cooperative and Interested than the
Hew York people, although they likewise felt that many bankers would be re­
luctant to uoe white-collar workers, Mr. Hecht, however, suggested that
a possible mode of operation would be to give the bankers a choice of having
worker© supplied by us or of supplying the information themselves. He felt
we might find that in many cases the benks would not be adverse to taking
on former trusted employees. They took along a description of the project
and promised to get in touch with me after they had gone over it thoroughly.
Offhand, they saw no objection to the A.B.A. endorsing the project.
I &li>o obtained an interview with the Controller of the Currency,
after having first discussed the project with Mr. Await, Mr, 0*Connor
expressed himself as interested, and said that he would be glad to cooperate
with us in the study, and in so far as the receivers were agreeable, permit
the transcription of the required information from the ledger© of the sus­
pended national banks, He suggested that I work out the detail# later with
Mr. Await and Mr. Gough.
It would seem, therefore, that although the project may have to be
restricted in scope, there is still a chance of obtaining some information
on the behavior of deposits h y classes, in the period from 1928 to the
Biddle of 1931. When you get back from your vacation I expect to have
ready for your consideration a revised plan of procedure.

LCtem




Reproduced from the Unclassified / Declassified Holdings of the National Archives

0-c
D

e p a r t m e n t

o f

C

o m m e r c e

O F F IC E O F T H E S E C R E T A R Y

WASHINGTON

August 16, 1S35.

Honorable Marriner S. Eccles,
Governor, Federal Reserve Board,
Washington, D. C.
My dear Governor:
I am glad to have your letter of August si suggesting
that an item in regard to the amount of money on deposit
in banks be included in the questionnaires for our Censuses
of Business and Manufactures. Although we have not had an
opportunity to give thorough consideration to any problems
that may result if this inquiry is included, I want to
assure you that the matter will be given careful considera­
tion, and every effort will be made to comply with your
request.
The work in connection with the preparation of the
schedule forms will begin at an early date, when attention
will be given to the practicability of securing data on„
deposit balances of business firms. Arrangements have been
made with the officials in direct charge of this project to
contact your organization.




Sincerely yours,

Reproduced from the Unclassified / Declassified Holdings of the National Archives

3T

i August 15, 1955*
The Federal Res rve Board

WPA project on the distribution

E, A* Goltienweiser

and activity of deposits
r\Atn*^ rn

UcJk u : ' —‘TfsrrA

On June 26th the Executive Committee, on the basis of a memorandum
submitted by the Division of Research and Statistics, authorised the
Division to explore the feasibility of sponsoring two projects to be
submitted to the Works Progress Administration and to be financed under
the Works Relief Aporojristion* A copy of the m; mor&ndum is attached*
On the basis of the preliminary work done, I recommend that the Board
sponsor a sample study of the distribution and activity of deposits,
with the proviso that, such sponsorship is conditional upon the obtaining
of adequate assurance of the cooperation of member banks in the project.
This sponsorship will involve no commitment of any kind by the Board
except to furnish a certain amount of supervision, and will involve no
handling by the Board of any funds allocated to this project by the WPA,
since all the disbursements will be made directly by the regional repre­
sentatives of the WPA* A general description of the project is attached,
to be used if and when the project is approved.

Information on the distribution of deposits, of changes in that
distribution, and on the credits to personal accounts should (a) be a
step toward the study of the motives which lead individuals and corpora­
tions to vary the size of their deposit holdings, and tkus aid in policy
meking and bank management; (b) throw light upon developments in business,
and hence aid in the formulation of banking policy; (c) throw light upon
the variability of deposits by types of depositors and by size, and thus
aid in the; problems of bank management and the proper allocation of
assets; and (d) give a test as to the correspondence of credits and in­
comes of various classes of consumers, A specific list of questions on
which information of the type in mind may throw light is contained in
the attached description of the project.
If the Board decides to sponsor this project, it is recommended
that action be taken on the following matters!
1, Authorize the Division of Research and Statistics to supervise
the project and to handle all correspondence in connection with it,
2, Authorize the Agent1a Departments of the Federal Reserve banks
to supply regional supervision of the project. In order to reduce admin­
istrative expenses, it would be desirable to have the workers in the
cities in which there are Federal Reserve banks or Federal Reserve branch
banks supervised by some person in the Agent*s Department.
5* Authorize the Division to state in its form 1 submission of
the project that the publication of the significant findings of the
study will be undertaken by the Board,

DigitizedXfor FRASER
http://fraser.stlouisfed.org/
FAfhTP,*,
Federal Reserve
Bank of St. Louis

a

from the Unclassified / Declassified Holdings of the National Archives

June 26, ISSSe

immmm m mam cwum m jm s m m rm m m m *iw mmm
Mr* fre a k 4* W3Jte«r has i&i&ted Hie 9 M M 1 Bseerm 9mrd to

mabsitt applim iloiis fear aHetam ts seder the Dorics B elief Eregma*
to flaeu w stisgr projects tfcieh i t m m * to undertake end supervise,
e t&eib witi giee eaployjs@$$t to
on r e lie f rolls*

cu ller m rlMHro ah prosaist

the matter m e referred by (kmrnaer Beclos te

the Dlirieim e f Beoeetreh fo r eeesideraUm amt study*
We here under eonsMeratltiB. two related projects* the fir s t
is a study o f the b e e r ie r e f dapecdhs i s SSSS*St» olasal fio d by
type, else end class e f depositor*
e f deposits esd the sh ifts Is

Xafscm tloa as to the oeserHJLp
is the course e f e business

cycle is « t preeest almost eooptetedy lacking*

I t is quite eon-

eeirehle that cash lalfcm htN i obtained m r r m tiy sight prove e f
reel w is e Is elding the Board la it s foorwklstte e f policy*
4 d iffersa t policy sight* for im % m m $ he called IW I f • rising
stock w h e t is w lw d * large transfer o f deposit* from perseaal
itfid

industrial holders to fiasa clel groape thi® i f i t m s hoisg
by previously idle iiaaneJUil deposits sad res sot resulting

la s drain on the isdustrisl circulation*

>Win» it sight he Assad

at s partieulsr SSao that deposits ef ceriseretioos were
rsy/Mly*

this would, m i l .for iiarestig&tteo as to whether the

increase m s dee te a sale of securities cad e consequent transfer
ef deposit* Area Hie
to

ttm

m

U X

d r o u l a t i m or whether it m s due

s sudden e e e m t l m e f baying on the pest ef cerperaticos*




la

from the Unclassified / Declassified Holdings of the National Archives

'k

general, s m&dm ch^-nge in tin deposit hdLdioi.'tr

Mxy large group

§§sm&§ i t U fo r study end investigation i s o f S r i s d rttn d jn it s

f&r o m n t md f u t s t truil tiniy esedltSsee# S sesyle

pt |p>i

study o f t he bdwviAr o f deposits i f ( llffn s t eeceesaie gyirnpg
i s the years iflS M S oi|M give id s Board i e n ffle la e t basin fo r
0 0 0 1 n lO g W a W a W OF a i t IB S C O lI A B ilis I O r O U rT S ll U u O V M t U i SB

tfndr nnbtsr *MfjVi three lig h t upon eerrest treads

wem*

ilMMi #fd i s th t

ossployf?os o f losdMI usdSF id s gener&l r-u;>orvt ols& o f th is DiviBlcm#
The m ood p rejeet i s eloeely related to the first#

Various

<V<m<sles swW' in vestigating the fe a s ib ility o f eoLl&bour&ting i s •
study of t ie soon nets h istory o f t typical iaseHses s ity o f betwess
f if t y

ose hesdred theeesnd popul&tio^; ijurlng the depression*

Xt is suggested that oeolk agencyf ■ etudy wMSdldi be yesdsrsd sons

s

ricvtnL by the hsujkgrotBis! provided by the studies o f

other aaroBOlos*

the

Thus. I f vs should Is s s a tija ts the behavior o f

depos it# by sXsosss o f depositors Is id s ssloetod s it y , us would bo
• U s to in terp ret our ftsdln g* i s the lig h t o f what eas happening to
Insosss , esployasat, asBufaeturing, trade, aortgagoo, ete#, i s that
•Ur.

we ere s o t as y s t i s a position to eehe « y sp eetfte rwgoewoada
tie s* to the Board, bet vs dhSSM lik e to be authorised to In vw tlgate
v*x

#%

the fe a s ib ility o f the projoe to msstieeed above
1

end,

i f upon in vest-

t}wr/ appear fe a sib le sad itvo^iso forthw hils re su lts, to stdsslt

a t a la te r date d efin ite roeeenoadotioso fo r the Beard *0 eoasideretioa.




Keproduced from the Unclassified / Declassified Holdings of the National Archives

(To "be distributed to selected
"banks and corporations if and when
the project is approved)

> «• ^rr7.v^,,-n.
, twiBTTfljmrrtW
NOT FOR PUBLICATION
August" l V 1935.

A SAMPLE STUDY OP THE DISTRIBUTION AND ACTIVITY OP DEPOSITS
I - General
Although much information is available on aggregate deposits,
little is known of the distribution of deposits among the different
groups of the community and the different types of business enter­
prise, or of changes in their distribution.

It is believed that

such information would contribute to an understanding of many ques­
tions of bank management and banking policy.

Valuable though such

information would be to member banks and to the Reserve Administration,
it is doubtful whether it would be feasible to ask the banks themselves
to furnish it directly, both because of the magnitude of the task
and because of the present depressed state of bank earnings,

The in­

itiation of the Federal Works Relief Program, however, makes possible
the gathering of the necessary data with a minimum of expense and incon­
venience to member banks*

In securing this information the Federal

Reserve System would, moreover, be cooperating in the Government*3
effort to provide employment for those who are now on relief.
therefore, proposed to initiate a Works Relief project,

It is,

in order to

have transcribed and tabulated for the periods January 1928-June 1931
,™l™,eellllll"l"eieillwle,eiim^ '
and July 1933-December 193^ the monthly checking accounts of selected
individuals and businesses; selected time deposits in excess of
$ 2 5 ,0 0 0 ; the bank borrowings of the selected businesses whose deposit
balances are transcribed; and the credits to the selected personal
checking accounts.




^ L

the Unclassified / Declassified Holdings of the National Archives

—

2-

II - Purpose
The information which it is desired to obtain hears on two dis­
tinct though related problems — the distribution of deposits and
the activity of personal checking accounts•

Information on the

distribution of deposits and of changes in the distribution should
(a) be a step toward the study of the motives which lead individuals
and corporations to vary the size of their deposit holdings, and
thus aid in both policy-making and bank management; (b) throw light
upon current developments in business, and hence aid in the formular*
tion of banking policy; and (c) throw light upon the variability of
deposits by types of depositors and by size, and thus aid in problems
of bank management and the proper distribution of assets#
More specifically, such information would aid in answering
the following questions:
1* What are the changes in the deposit holdings of various
groups and classes in response to increasing or decreasing
security speculation? Did the deposits of financial concerns
increase relatively to industrial and personal deposit holdings
in 1 9 2 8 -1 9 2 9 ? What, if any, marked shifts occurred during and
after the stock market crash?
2,
Do changes in the rate in which money flows from producers
to consumers and from consumers to producers evidence themselves
initially in a change in the deposit holdings of different groups?
3# Is the downward trend of business activity associated
in any way with a marked shift of deposits from personal to in­
dustrial or financial accounts? Is an upward movement associated
with a shift in tho opposite direction?
4# What is the significance of sudden and pronounced
changes in the deposit holdings of particular groups? Obviously,
knowledge of tic nature and extent of such changes is essential
before their significance can bo studied#




Reproduced from the Unclassified / Declassified Holdings of the National Archives

T

5. What factors determine the deposit or monetary
requirements of individuals and different types of bus­
inesses? How far are such requirements a function of
income, of wealth, of the volume of operations, of the
length of the period of production, of business expect­
ations, etc? Information on the distribution of deposits
and of changes in the distribution is a prerequisite for
a study of such factors*

6 , What changes in its deposits may an individual
bank experience in upward and downward movements of bus­
iness? This is an all-important question from the point
of view of bank management, and it must in the final analy­
sis be a matter for individual bank study. Generalized
information on the variability of deposits in the past,
according to location, size of deposits, and type of depos­
itors, should, however, be of assistance to bankers in
assessing the probable variability of their own deposits
and therefore in planning a safe and profitable distribu­
tion of their assets,
7* What is the reaction of different types of deposits
to the initiation of service charges? Some light on this
problem may be obtained by a study of deposits before and
after such initiation,
S, What is the relation of customers1 deposit bal­
ances to their borrowings from a bank? Do their deposits
vary directly or inversely with their borrowings? How
large are the deposits of borrowers in relation to their
loans? More comprehensive information on this subject
would be helpful both to bankers and to students.
Information on the activity of selected personal chocking
accounts would likewise aid in the understanding of various prob­
lems,

For a number

offyears

fairly comprehensive information

has been available on total bank debits.

The usefulness of this

series, however, has been impaired by the absence of breakdowns
by types of expenditures and by classes of depositors.

Highly

significant types of expenditures have been concealed in the enor­
mous total of expenditures, which have much less economic




Reproduced from the Unclassified / Declassified Holdings of the National Archives

—

significance.

Little can "be done at this time on a classification

of debits by types of expenditures, but a start can be made on a
classification by a particular group of depositors, namely, consumers.
If it can be established that credits, and, less certainly, debits,
correspond fairly closely to the incomes of large classes of con-*
sumers, particularly in the middle income groups, current credits
figures would be a valuable index of current incomes, one of the
most important of all economic series.

One of the objects of the

project, therefore,is ' to obtain the debits and credits to the peiw
sonal deposit balances studied.

By linking up this aspect of the

study with such data as are available on incomes, a test as to the
correspondence of credits, debits and incomes can be made.

Inform­

ation may also be obtained on the size of deposits in relation to
incomes and on the typical response of the deposits of individuals
to an increase or decrease in incomes,
III — Description and Scone of Project
In view of the largo number of banks and deposit accounts in
this country, it is not feasible to attempt a complete coverage study
for the extended period in mind.

Recourse must be had to sampling

and the problem becomes one of obtaining as good a sample as possible.
Some five hundred banks were tentatively selected in such manner
as to give assurance of an adequate representation of the deposit
balances of different classes of personal accounts, of different
classes of businesses, and of different regions of the country.




Reproduced from the Unclassified / Declassified Holdings of the National Archives

*

-5~
These hanks are being asked to provide desk space and to permit
access to their hack ledgers to from two to six relief workers,
depending upon the size of the hank and the space available.
If the hanks cooperate in as full a manner as it is hoped, it is
expected that about a million accounts for a five-year period will
become available for tabulation and analysis.

In addition, credits

and debits to a substantial group of individual personal accounts,
and the current bank borrowings of a group of business customers,
will likewise bo ^available,

It is planned to restrict the trans­

cription of deposits for the most part to checking accounts.

An

attempt will be made, however, to obtain a sample of time deposits
in excess of $25,000,

Accounts will be transcribed as of the

Wednesday between the sixth and the twelfth of each month.
Balances of larger corporations which are customarily distribu­
ted among many banks give rise to special difficulties when a
sampling technique is employed.

To include in the study that part

only of a corporation^ deposits which happens to be in one of the
selected banks would offer a most insecure basis for drawing any
conclusions as totftd Vbehavior of the total deposits of the corpor­
ation,

!To exclude all largo corporation deposits, however, would

seriously impair the representativeness of the sample, and detract
from tho value of the study.

The best way out of this difficulty

would be to obtain the deposit holdings directly from a sample of
the larger corporations.

It is planned, therefore, to ask the coop­

eration of selected corporations in this matter.




Reproduced from the Unclassified / Declassified Holdings of the National Archives

It is proposed that the study cover the period from January
192S to June 1931» inclusive, and from July 1933 to December 193***
inclusive.

By choosing .these two periods, the behavior of deposits

during an upswing, a critical turning point, a depression, and the
beginnings of recovery, may be studied.

The period from July 1931

to June 1933 is omitted because of the hoarding, bank failures, and
shifts of deposits, that characterized that period.

Such factors

would seriously impair the value of a sample study.
17. - Supervision
General supervision of the project will be undertaken by the
Division of Research and Statistics of the Federal Reserve Board.
Designated officers in the Federal Reserve banks will act as
regional supervisors.

Field supervisors will arrange with the local

United States Employment Service and with the participating banks*
officers for the appointment of white-collar workers and will
supervise their work.

It is expected in this way to reduce the

inconvenience to the participating banks to a minimum.

Tabulation

of the data will be carried out in New York, where the largest
numberof 'skilled white-collar workers are on the relief rolls,
7

Confidential Nature of Source Material
It is appreciated that the information required is of a

highly confidential character, and every possible precaution will be
taken to prevent any disclosures.

No agency other than the Federal

Reserve Board will have access to the original forms,

The

names of the banks* customers will be detached from the schedules




Reproduced from the Unclassified / Declassified Holdings of the National Archives

by the field supervisors and thereafter will be related to the
schedules by code numbers.

It is expected that the relief workers

employed will be mainly former employees of financial institutions
who already appreciate the confidential nature of personal finan­
cial accounts.

Finally, it is expected that the bank officers

concerned will suggest names or qualifications and interview appli­
cants sent to then by the local United States Employment Service,
so that they will be in a position to satisfy themselves as to the
discretion and integrity of the persons given employment.

In the

smaller cities it may prove desirable to bring in strangers from
neighboring large cities*
71 - Time Required for Completion of Project
If work can be started by October 1st, 1935* it is expected
that final tables will be available for analysis by June 1, 1936.
It is planned to provide work for eight months for each person employed,
VII — The Magnitude of the Pro.ject.
It is estimated that the project as now drawn up would involve
the expenditure of $1 ,300,000 and give employment to two thousand
persons*




Reproduced from the Unclassified / Declassified Holdings of the National Archives

F o r m N o . 1 31

O ffice Correspondence
To.

Governor Eccles

From

*_D VJL \\ ,

SERVE
FEDERAL RESERVE
BOARD

Date
Subject:
q r %
CL
W

i

i + c?
V yUJU
L UO

A u g u st 1 5 , - 1 9 5 5 .

Memorandum or
4 *a

w

ero

come tax returns.

The object of requiring checking accounts to be reported on
personal income tax returns would be to throw some light upon the
distribution of deposits on the date selected (presumably Dec­
ember 51st), and to throw some light upon the distribution of
deposits according to different income groups. Together with the
data on the cash holdings of corporations as of the same date, it
is probable that a substantial part of the checking accounts of
the country would be accounted for.
Annual information on the cash holdings by income groups
would be a valuable aid in determining how far the size of deposits
is a function of income. It would also indicate the extent to
which the deposits of different income groups fluctuated with
business fluctuations. Thus, the information would aid in research
in the problem of the deposit or monetary requirements of individ­
uals.
There would be several weaknesses in such a series. In the
first place, it would probably be impracticable to secure the
information for a date other than December 51st. This date, from
the point of view of deposit holdings of individuals, is probably
the worst in the year* Secondly, the series would cover the de­
posits of only the comparatively few people who file income tax
returns. It is, of course, possible that this group holds the
bulk of the deposits owned by individuals. Thirdly, the information
would not be available for at least a year after the date to which
it applies (Statistics of Income for 1955 is not as yet published).
This would effectively debar the series from use for operating
purposes.
The Treasury would probably be reluctant to add this question
to its schedules. It would, in the first place, be of no use to
the Treasury, and its tabulation would put it to some extra ex­
pense. In the second place, such a question would cause wide com­
ment and surmise, and probably an official explanation would have
to be offered. The Secretary might feel that to explain that it
was inserted at the request of the Federal Reserve Board would
offer a precedent for requests by other agencies for information.




V , i.

16—852

" ,cu' ueciassiried Holdings of the National Archives

On the whole, I should favor deferring this request for the
time being* One of the objects of the WPA project on which we
have been working is to relate deposits to incomes (as ascertained
by regular credits) for a substantial group of personal accounts
over a period of years. If the project is approved and carried
out, we will be in a better position to decide whether information
on the deposit holdings of the middle and upper income groups is
significant for operating purposes. If we decide that it is, we
will be in a stronger position in approaching the Treasury. On
the other hand, we may regard the information as of sufficient
importance to inaugurate a monthly series obtained directly from
member banks.
Finally, I never like to ask for anything unless there is a
pretty good chance of getting it, and in this case I feel very
dubious whether the Treasury will accede to our request on the case
we can make at present. If, however, you feel differently, I shall
be very pleased to make out as strong a case as I can in a letter
under your signature to Mr. Haas.
One request I should like to make in any case is to have the
"cash" item on the corporation balance sheet returns that are filed
with the Bureau of Internal Revenue broken down into Currency,
Demand Deposits, and Time Deposits. Moreover, I should like to
have banks* balance sheets reported separately from the finance
group. From our point of view the usefulness of the tabulations
of the U. S. Statistics of Income will be greatly increased by these
two changes.




bl" ea 1uec|assified Holdings of the National Archives

i

Au^ut i 8, 1955,
The Honorable Daniel C. Hop* r,
Secretary of Commerce,
Washington, B« C,
Hy dear Mr, Secretary!
I have been Informed that a Census of Business to be
financed by the Works Progress Administration is in prepar­
ation in your Department# I also understand that you
propose to undertake the regular Census of Manufactures
for 1955# I an writing to insuir* whether It would be poss­
ible to include in your schedules a ^ueetion in which the
federal Reserve Board has a very keen interest# It relates
to the deposit balances of busineas firms#
As you doubtless are aware, one of the most serious
gaps in our financial stall.: tics is the absence of any
current information on the distribution of deposits* which
constitute the bulk of the money supply of the country#
Such information would, among oth r things, throw light
upon the degree to which various industries could finance
expansion without recourse to the beaks or the capital mar­
ket#
The Federal Reserve Board, itself, has under consider­
ation a sample study of the distribution and activity of
deposits over an extended priod. Complete coverage of bus­
iness deposits ae of a given date would be oxtrmmely valuable
to us as a means of ascertaining the coverage of our samples
of the deposits of various types of business#
If, In addition, the same information could be obtained
for the same date a year previously, some light would be
thrown on what has happened to the money created by the
banking system and where stoppages in the flow of purchasing
power have occurred,
Supplying the information would put your respondents
to very little inconvenience, aa virtually all business
concerns have readily available records of their cash hold­
ings.




Reproduced from the Unclassified / Declassified Holdings of the National Archives

Although I understand that the censuses are not intended to
cover financial aspects of business, I assure you that if an
exception is Bade in this case the Federal Reserve Board would
be deeply appreciative,
lours very sincerely,

( Signed) Marriner S. Eccfes
larriner S, Ecclea
Oov rnor

LC.em
<T<r.




neproaucea Trom tne unclassified / Declassified Holdings of the National Archives

F
(

Governor B o d e s
La uc hiin Currie

distribution of business deposits

With reference to the note I sent you Saturday on tills subject,
I spent a couple hours today with Dr. Beckusn, who is in charge of the
census of business. I broached the idea to him of the possibility of
obtaining information on business deposits, and he seemed to be very
favorably disposed. He suggested that we might work out some scheme
of cooperation whereby we would get the number of people employed in
banks on the December 51st call report, so that they would not have to
cover banks in their survey,
_
If you care, therefore, to send the letter I drafted to Secretary
Roper, I think the ground hae been prepared a bit.

LC.em




Reproduced from the Unclassified / Declassified Holdings of the National Archives

August 5, 1955*
Letter to Secretary Roper on

Governor Ecolee

Distribution of business deposits

Lauchlln Currie

I wonder if you would eare to take up with the Secretary of
Commerce the possibility of securing current informstion on the
distribution of business deposits through the proposed census of
business# As I indicate In the attached letter* I think the iaformation would be useful In various ways# I understand that the project
has been approved, but that the fin*1 schedules have not been completed
nor printed#
j.
^ 5

LC.em




Reproduced from the Unclassified / Declassified Holdings of the National Archives

J u ly 5 0 , 1 9 5 6 ,
Mr. O liv e r P* W heeler,
A s s is ta n t F e d e ra l R eserve A gent,
F e d e ra l R eserve Ik n k ,
Ena F r a n c is c o , C a l i f o r n i a ,
Dear Mr* W heelers
We a r e engaged in a p re lim in a ry in v e s t ig a ti o n to d eterm in e
th e f e a s i b i l i t y of u n d e rta k in g a w h ite - c o l la r p r o je c t u nder
th e Works R e lie f program to stu d y th e changes i n ow nership and
a c t i v i t y o f d w n d dapo& itc d u rin g th e p e a t le v y e e r c , As an
a id i a t h i s i n v e s t ig a ti o n I would a p p r e c ia te yo u r sen d in g me
some in fo rm a tio n a b o u t th e m ajor C a lif o r n ia b ran ch b a n k s,
Mr. C onklin t e l l s me that you had com piled a summary o f
th e p r in c ip a l b a la n c e s h t e t item s o f member banks end t h e i r
b ran ch es a t the tin t o f th«. Deoamfeer 5 0 , 1 9 5 5 , twuik c a l l , I
would be v e ry g r a t e f u l i f you would send me a t r a n s c r i p t o f t i d e
d a ta f o r th e in d iv id u a l bran ch es o f member banks which a r e lo c a te d
in any o f th e fo llo w in g C a lif o r n ia c i t i e s .




Ban F ra n c is c o
Los A ngelas
Oakland
B erkley

Long Beach
B a k e rs fie ld
G rass V a lley
Heveda C ity

Very truly yours,

E. A, Gtoldenweiser
D ir e c to r o f R esearch and S t a t i s t i c s

Reproduced from the Unclassified / Declassified Holdings of the National Archives

J?

ijj■
(I I

VM |-r» -

July 50, 1935,

Ownership o f d e p o s its study

G overnor E cclee
L a u c h lin C u rrie

^

;?VV. 2 '/ < y )

A ttach ed i s a l e t t e r to Mr, Anderson,\ Assistant Federal R eserve
Agent a t C le v e la n d , f o r your s ig n a t u r e . I t looks a s though
S p r in g f ie ld i s our b e s t b e t a s th e town in which to make a g e n e ra l
s u rv e y . I hope w ith in a week o r so to have th e b ig g e r p r o je c t re a d y
f o r subm ission to th e Board.




neproaucea trom the Unclassified / Declassified Holdings of the National Archives

■V i

,

J u l y £ 5, 1 9 5 5 ,
G overnor E colee

Ownership of deposits study,

L a u c h lin C u rrie

A tta ch e d t a a l a t t o r f f o r y o u r s ig n a tu r e to Mr, S te v e n s , e n c lo s in g
th r e e r e p l i e s to l e t t e r s he re e e iv e d i n c o n n e c tio n w ith th e w h ite - c o l la r
p ro g raa# and a ls o a n o th e r l e t t e r to a non-member bank.
Sometime when you a r e f r e e I should l i k e to d is c u s s th e whole
p r o j e c t w ith y o u .

LC.em




Reproduced from the Unclassified / Declassified Holdings of the National Archives

Z?

ROYAL INDEMNITY COMPANY
H E A D

O FFICE

♦ N E W

Y O R K

,ii(

,

8

JF.J. O NEILL ,PRESIDENT

JO H N

F. A.

BECKER,

GENERAL

AGENT

6 0 4 COLORADO B U IL D IN G
W a s h i n g t o n , D. C.
PHONE:

July

N A T IO N A L

25,

7132

1935.

Mr. Roland I. Robinson
Federal Reserve Board
424 Shoreham Building
Washington,
D.
0.

ft

My dear Sir:

z

In pursuanceto our conversation this morn­
ing, in the matter of the contemplated bond on benaif
of employees who are making a check for statistical
purposes only of deposits in banks throughout the
country, I enclose herewith copy of letter received
fnom the Royal Indemnity Company, Bonding Department,
under date of July 22, 1935, on the subject, which
is self explanatory.

jfab.
(enclosure)




f/

Reproduced from the Unclassified / Declassified Holdings of the National Archives

MEMORANDUM

From
Royal Indemnity Company
150 William Street,New York
Bonding Department

Re

To
Mr. John F. A, Becker
604 Colorado Building
Washington,
D. C.

July

22,

1935.

*

Dear Sir:

We have your letter of July 17th in connection with bond
wanted by the Federal Reserve Board in respects to certain
employees who are making a check for statistical purposes
only of deposits in banks throughout the country.
I have discussed tnis matter with the Rating Bureau as well
as the Surety Association and I do not see now we could
possibly write up a bond guaranteeing that these employees
are not in collusion with employees of various banks defraud­
ing these banks of property.
It seems to us that the banks now have such protection under
a Bankers Blanket Bond which they no doubt ncarry. Under the
Bankers Blanket Bond for these individual banks there is given
coverage for dishonest acts on their employees whether acting
alone or in collusion with others, it also gives coverage for
robbery, larceny, theft, etc., committed by any outside person.
I do not see how we could possibly, as aforementioned, write a
bond protecting three parties.
Yours very truly,

HHW:mm




H. H. WILSON
Underwriter.

Reproduced from the Unclassified / Declassified Holdings of the National Archives

5946

y y . -2 / /

2

WORKS PROGRESS ADMI1JISTRATION
1734 Hew York Avenue, .Washington, D. C.

if-5

Harry L . H opkins, A d m in is tra to r

C ir c u la r Ho. 3

STATEMENT
OE INFORMATION FOR SPONSORS

OF

FEDERAL STATISTICAL PROJECTS

J u ly 13, 1935

(ISSUED IN CONJUNCTION WITH THE CENTRAL STATISTICAL BOARD)




2

,c UMUId!* IIiea/ ^classified Holdings of the National Archives

5946

INFORMATION FOR SPONSORS OF FEDERAL STATISTICAL PROJECTS
UNDER THE EMERGENCY RELIEF APPROPRIATION ACT OF 1935

S e c tio n 1.

Fu n cti on o f the C o o r d in a ting Commit t e e .

The C en tra l

S t a t i s t i c a l Board has "been charged w ith the duty o f "prom otin g the im­
provem ent, developm ent and c o o rd in a tio n o f the s t a t i s t i c a l s e r v ic e s o f
the F ed e ra l Governm ent."

The Works P ro g re s s A d m in is tra tio n i s res p o n s i­

b le f o r "p r o v id in g f o r the c o o rd in a tio n o f such d a ta -c o m p ilin g p r o je c t s
as form p a r t o f the work r e l i e f program ".

The C oo rd in a tin g Committee

o f the C en tra l S t a t i s t i c a l Board and the Works P ro g re s s A d m in is tra tio n
has "been s e t up "by those two a g e n c ie s to in su re th a t,
s ta tis tic a l,

in the case o f

survey and re s e a rc h p r o je c t s fin a n c e d from funds made a v a i l ­

a b le "by the Emergency R e l i e f A p p ro p ria tio n A ct o f 1935, th ese re s p o n s i­
b i l i t i e s are p r o p e r ly d is ch a rg e d .
S e c tio n 2.
S t a tis tic a l,

D e f in it io n o f S ta t i s t i ca l , Survey and R esearch P r o j e c t s *

su rvey and re s e a rc h p r o je c t s may t e n t a t i v e l y bo sa id to

in clu d e th e f o llo w in g :
( a ) The c o l l e c t i o n o f in fo rm a tio n by means o f m a iled q u e s tio n n a ire s .
(b ) The c o l l e c t i o n o f in fo rm a tio n by means o f house to house canvas­
ses w ith o r w ith ou t sch edu les.
(c )

The c o l l e c t i o n o f in fo rm a tio n through in t e r v ie w s w ith re p r e ­

s e n ta t iv e s o f b u sin ess and in d u s t r ia l concerns o r w ith o th e r
s e le c t e d p erson s.
(d )

I n v e s t ig a t io n s not r e q u ir in g in te r v ie w s ( t r a f f i c

lan d u t i l i z a t i o n ' s tu d ie s ,
(c )

e tc .).

The c o m p ila tio n o f d ata from e x is t in g p u b lic o r p r iv a t e

re c o rd s .




surveys,

Reproduced from the Unclassified / Declassified Holdings of the National Archives

(f)

In d e x in g , tr a n s c r ib in g and im proving rec o rd s (o t h e r than

b ookbin din g and s im ila r re c o rd p r e s e r v a t io n p r o j e c t s ) .
( g ) E d it in g ,

ta b u la tio n ,

sum marization and a n a ly s is o f d ata

c o lle c t e d by any o f th ese methods e it h e r c u r r e n t ly o r in the p a s t.
S e c tio n 3.
s ta tis tic a l,

P r in c ip le s to Which P ro j e c ts Should Conform .

In p lan n in g

survey and re s e a rc h p r o je c t s s e v e r a l im portant p r in c ip le s

should be k e p t in mind.

These have been l a i d down in the P r e s id e n t 's

message to Congress on the work r e l i e f program, in P u b lic R e s o lu tio n
ho. 11 o f the 74th Congress, in E x e c u tiv e Orders ho. 7034, ho. 7046,
ho. 7060, and in C ir c u la r ho. 1 (June 15, 1935) o f the Works P ro g re s s
A d m in is tra tio n ,

In a d d itio n to the o r d in a r y c r i t e r i a o u tlin e d in these

documents (a p p lic a b le to a l l p r o j e c t s ) ,
l a r l y p e r tin e n t so f a r as s t a t i s t i c a l ,

the f o llo w in g seem to be p a r tic u ­
survey and re s e a rc h p r o je c t s a re

concerned:
( a ) Pub. Res. ho. 11, Sec. 11.

"ho p a r t o f the funds h e r e in

a p p ro p ria te d s h a ll be expended f o r the a d m in is tr a tiv e expenses
o f any departm ent, bureau, b oard , commission, o r independent
agency o f the Government i f

such a d m in is tr a tiv e expenses a.ro

o r d in a r ily fin a n c ed from annual a p p r o p r ia tio n s , u n le s s a d d it io n ­
a l work i s imposed th ereon by reason o f t h is j o i n t r e s o lu t io n . "
. ( b ) E x e c u tiv e Order 7046, P a r t 3 ( c ) .

"E xcept w ith the s p e c i f i c

a u t h o r iz a t io n o f the Works P ro g re s s A d m in is tr a tio n a t le a s t
90fo o f a l l persons w orking on a work p r o je c t s h a ll have been
taken from p u b lic r e l i e f r o l l s . "




Reproduced from the Unclassified / Declassified Holdings of the National Archives

W

5946

-3-

( c ) E x e c u tiv e Order 7034, 2 ( b ) .

f

"The D ir e c t o r o f the Budget

to pass upon a l l req u e sts f o r a llo tm e n t o f funds f o r adm inis­
t r a t i v e exp e n s e s ."

T h is has "been a m p lifie d in the D iv is io n o f

A p p lic a tio n s and In fo rm a tio n p ress r e le a s e o f May 10, 1935, P a r t
IV . "A d m in is tr a tiv e expenses a t the s i t e which a p p ly e x c lu s iv e ly
to a p a r t ic u la r p r o je c t s h a ll he in clu d ed in the a llo tm e n t a p p li­
c a tio n f o r such p r o je c t on DEC Form 1.

A l l o th e r a d m in is tr a tiv e

expenses, in c lu d in g s a la r ie s o f employees lo c a t e d in Washington
o r any r e g io n a l o f f i c e , s a la r ie s o f in v e s t ig a t o r s w ith h eadqu arters
in Washington o r such r e g io n a l o f f i c e s and g e n e ra l o f f i c e expenses
in Washington and r e g io n a l o f f i c e s ,

s h a ll he p re s e n te d in a spec­

i a l a llo tm e n t a p p lic a t io n to the Bureau o f the Budget on DEC Form

2 , which w i l l tran sm it i t s recommendations upon such a p p lic a tio n s
to tho D i v i s i o n . "
(d ) C ir c u la r Do. 1 o f the Works P ro g re s s A d m in is tra tio n , Sec. 4 ( f ) .
" P r o je c t s w i l l ho a llo c a t e d to l o c a l i t i e s f o r r e l i e f areas in r e la ­
t io n to the number o f w orkers on r e l i e f r o l l s in those a r e a s ",
i.c * ,

s t a tis tic a l,

su rvey and re s e a rc h p r o je c t s r e q u ir in g la r g e

numbers o f workers in one c e n te r ,

such as la r g e e d it in g o r tabu­

l a t i n g p r o je c t s , w i l l have to he. lo c a t e d in the la r g e urban areas
where the w h ite c o l l a r r e l i e f p erson n el i s

to he found.

W hile

county li n e s (w it h c e r t a in e x c e p tio n s ) may not be insurm ountable
b a r r ie r s in drawing p e rs o n n e l, c l e a r l y most p r o je c t s w i l l have to
p r o v id e employment w ith in easy commuting d is ta n c e o f th ese urban
areals.




^epiuuuuea irom tne unclassified / Declassified Holdings of the National Archives

«■

5946

(e )

The la b o r c o s t o f the p r o je c t s h a ll conform to wage s c a le s

and maximum hours p ro v id e d f o r in E x e c u tiv e Order 7046.

W hile

no form al announcement o f p o lic y con cern in g a llo w a b le exp en d itu res
p er man-year o f r e l i e f la b o r has been made to d a te ,

it

should be

n oted th at i f fo u r b i l l i o n d o lla r s i s to p ro v id e a y e a r ’ s work
f o r 3,500,000 persons on the r e l i e f r o l l s as o f May 1, 1935, the
avera ge c o s t p er man-year o f employment, c o n s id e rin g the work
r e l i e f program as a w h o le , is about $1,140.

Because p r o je c t s

c a r ry in g h ig h m a te ria l and o th e r c o s ts w i l l exceed t h is f ig u r e ,
it

i s e s s e n t ia l th at d e s ir a b le p r o je c t s in v o lv in g much lo w er

man-year c o s ts be p ro v id e d in s u f f i c i e n t volume to o f f s e t the
high—c o s t p r o je c t s .

T h is f ig u r e i s ,

t h e r e f o r e , s u b je c t to

c o n s id e ra b le v a r ia t io n in the case o f in d iv id u a l p r o je c t s .
C e rta in a d d itio n a l c r i t e r i a n ecessa ry to the s u c c e s s fu l com p letion
o f s ta tis tic a l,

survey and re s e a rc h p r o je c t s , are as f o llo w s :

P r o je c t s should bo o f a typ e p o s s ib le o f perform ance by w h ite c o l l a r workers on r e l i e f r o l l s .

In the usual in s ta n c e , p r e lim i­

nary p lan n in g o f s u f f i c i e n t thoroughness to enable s e t t in g up in
t e n t a t iv e fa s h io n a dummy se t o f f i n a l ta b le s and ta b u la tio n
forms w i l l be re q u ire d .
P r o je c t s should bo a d e q u a tely su p e rv is e d .
it

In t h is con n ection

i s p a r t ic u la r ly d e s ir a b le th a t th e sponsoring agency make

a v a ila b le to a s u b s ta n tia l d egree the te c h n ic a l guidance and
a d m in is tr a tiv e a s s is ta n c e o f i t s own e x p o r ts .

Inasmuch as com­

p e te n t te c h n ic a l s u p e rv is io n and s p e c ia liz e d equipment when



Reproduced from the Unclassified / Declassified Holdings of the National Archives

W

%£>
f
-5-

o b ta ln e d in the open market i s ex p e n s iv e ,

the w illin g n e s s and

a b i l i t y o f sponsors to c o n trib u te s u p e rv is o ry p e rs o n n e l, sp a ce,
s u p p lie s , e t c . , may p ro ve im portant in secu rin g ap p ro val f o r
the p r o je c t .
P r o je c t s should not be unduly burdensome on b u sin ess o r in d i­
v id u a ls c on ta cted d u rin g the course o f the p r o je c t s .
P r o je c t s should not d u p lic a te each o th e r o r e x is t in g inform a­
t io n o r e a r l i e r p r o je c t s .
S e c tio n 4,

S p e c ia l Proced u re f o r Making Proposa ls o f S ta t i s t i c a l ,

Survey, and Eoseonch P r o j e c t s . The C o o rd in a tin g Committee r e q u ire s more
d e t a ile d in fo rm a tio n than th a t e n te re d on EEC Perm 1 ,

P r o je c t sponsors,

on req u est o f the C o o rd in a tin g Committee, may be c a lle d upon to supply
the whole o r any p a rt o f the f o llo w in g in fo rm a tio n :
( a ) Name and address o f sponsorin g agency o r a g e n c ie s .
(b ) Statement o f s p e c i f i c purposes to be served b y th e p r o je c t .
(c )

Statem ent o f the uses to be made o f the r e s u lt s .

(d ) D e t a ile d d e s c r ip t io n o f the in fo rm a tio n to be c o lle c t e d .
( e ) Statem ent con cern in g sources o f d ata (w h ether a h o u s e -to house canvass, in t e r v ie w s w ith s e le c t e d p erson s,

e x is t in g

reco rd s, e tc .
(f)

Statem ent o f the scope o f the p r o j e c t ,

( s p e c i f y the g eo gra p h ic

a re a to be c overed and the number o f p erson s, f a m ilie s , b u si­
ness concerns, r e c o r d s , e t c . , to be in c lu d e d ).
(g )




I f p a r t i a l covera ge o r sam pling i s contem plated,

statem ent o f

p e r cent o f covera ge and d e s c r ip t io n o f sam pling tech n iqu e.

Reproduced from the Unclassified / Declassified Holdings of the National Archives

S B

5946
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6-

(h ) Hamo and address o f p r o je c t su p erin ten d en t, w ith d e s c r ip t io n
o f h is e x p e rie n ce and q u a lif ic a t io n s .
( i)

Statement o f the amount o f tim e p r o je c t sup erin ten d en t w i l l
d e vo te e x c lu s iv e ly to t h is p r o je c t .

(j)

I f an a d v is o r y com m ittee i s to fu n c tio n , a d e s c r ip t io n o f
such com m ittee, to g e th e r w ith th e q u a lific a t io n s o f i t s mem­
b e rs and a statem ent o f the tim e to he d evoted e x c lu s iv e ly to
the p r o je c t ;

a ls o the com pensation, i f any, to he p a id from

p r o je c t funds.
(k ) D e t a ile d statem ent on CC

Dorms 10, 11, and 12 (s e e samples

o f each a tta c h e d h e re w ith ) ite m iz in g p erson n el requirem ents
and e stim a ted e x p e n d itu re s .

Dorms w i l l ho s u p p lied upon

re q u e s t.
(l)

Statem ent o f methods to he used in s e le c t in g p e rs o n n e l:
Drom r e l i e f r o l l s ---- statem ent o f s p e c if ic a t io n s upon which
s e le c t io n s w i l l he based.
Hot from r e l i e f r o l l s — statem ent o f method o f s e le c t io n to
he used.

(m) P r o v is io n s f o r p u b lic a t io n and number o f c o p ie s o f f i n a l r e p o r t
which w i l l he a v a ila b le f o r d is t r ib u t io n .
As a generod r u le ,

the fo llo w in g d e t a ile d d ata ( Item s n to r ) w i l l

he re q u ire d in advance o f a p p ro va l o f th e p r o je c t , hut f o r c e r t a in pro­
j e c t s recommendation may ho made b e fo r e a l l o f the in fo rm a tio n g e n e r a lly
re q u ire d has boon subm itted, w ith the q u a l i f i c a t io n th a t a l l o f the f o l ­
lo w in g d ata must he subm itted f o r a p p roval b e fo r e f i n a l f u l l s c a le f i e l d
c o l l e c t i o n b e g in s :



Reproduced from the Unclassified / Declassified Holdings of the National Archives

(o )

In s tr u c tio n s f o r enum erations, t r a n s c r ip t io n ,

e t c . , in clu d ­

in g d e f in it io n s .
(p )

In s tr u c tio n s f o r ch eck in g, e d it in g ,
m ediate p ro c e s s e s .

coding and o th e r in t e r ­

I f m echanical ta b u la tio n i s contem plated,

c o p ie s o f punch cards should be su p p lied , to g e th e r w ith card
punching in s tr u c tio n s .
( q ) C opies o f ta b u la tio n work fo rm s , t a l l y

sh eets,

e t c . , and c o p ie s

o f s k e le to n ta b le o u t lin e s .
(r )

T a b u la tio n in s tr u c tio n s in c lu d in g an e x p la n a tio n o f the
sequence o f s o r ts ,

A

counts, t a l l i e s , e tc .

Any o th e r in fo rm a tio n , o f fu r th e r e x p la n a tio n o f t h is b u l l e t i n can be
o b ta in ed from the o f f i c e o f the Chairman o f the C o o rd in a tin g Committee,
Mr. Theodore J . K rc p s , Room 57, Walker-Johnson B u ild in g , 1734 New York
Avenue.
S e c tio n 5.

P re p a r a tio n o f CC Form 10, Labor rand Payr o l l A n a ly s is -

— A l l Employees on P r o je c t , Reg a r d le s s o f Source o f Funds f o r P a y r o l l .
Column 1, O p eration s to be P erform ed :

The item s e n te re d in t h is column

on the a t torched sample form a rc i l l u s t r a t i v e o n ly .
the census typ e o f p r o je c t .

If

They would ap p ly to

some o f them do not ap p ly to your p r o je c t ,

w r it e in the analogous o p e r a tio n which does a p p ly to the p r o je c t in ques­
t io n .

Try to p re s e n t the o p e ra tio n s f o r your p r o je c t in about as d e t a i l ­

ed a form as the one here i l l u s t r a t e d .
Column 2, O ccupation and C lass o f L ab or:
1 above a ls o a p p ly h e re .



The comments under Column

The item s w r it t e n in Column 2 o f the atta ch ed

Reproduced from the Unclassified / Declassified Holdings of the National Archives

form are i l l u s t r a t i v e — t h is column w i l l he blank on form s a c t u a lly sent
to sponsors f o r in fo rm a tio n .

The sponsor w i l l he asked to e n te r the

item s a p p lic a b le to h is p r o je c t in the same d egree o f d e t a i l fo llo w e d in
the i l l u s t r a t i v e e n t r ie s .
Columns 3 and 4, E stim ated T o ta l Humber o f E m ployees:

In column 3

e n te r the maximum number o f each c la s s to be employed a t any one tim e.
Hote th at the numbers e n te re d h ere a p p ly to a l l person s w orking on the
p r o j e c t , whereas EEC Form 1 asks o n ly f o r

those to be p a id from funds

made a v a ila b le by the Emergency R e l i e f A p p ro p ria tio n A ct o f 1935.

In

Column 4 e n te r the a vera ge number o f each c la s s to be employed f o r the
p e r io d in d ic a te d in columns 9 and 10.
Column 7, T o ta l E stim ated Labor C ost:

You are asked to e n te r here

e stim a ted p a y r o ll cost in clu d ed in your a p p lic a t io n f o r a llo tm e n t o f funds
under Emergency R e l i e f A p p ro p ria tio n A ct o f 1935 (UEC Form l ) .

P a y r o ll

c osts which w i l l be met from funds o f the sp on sorin g agency or from any
o th e r source should be e n te re d under Column 8 , 11From A l l Other S ou rces . 11
If it

i s planned to contribute, the s e r v ic e s o f c e r ta in in d iv id u a ls whose

pay you a re unable o r u n w illin g to r e v e a l, m erely n ote th is f a c t in the
aPProP r i a t e lin e or lin e s under Column 8 .
Columns 9 and 10, E stim ated Da te s f o r B egin n in g and Com pleting Each
O p e ra tio n :

The sp on sorin g agency, o f cou rse, i s unable to s ta te these

d ates a c c u r a te ly in advance o f a llo tm e n t o f funds and c e r t i f i c a t i o n o f
p e rs o n n e l.

The d a te s su p p lied should in d ic a t e when the p r o je c t could

s t a r t i f a llo tm e n t and c e r t i f i c a t i o n o f workers should be made prom ptly.




Jj

Reproduced from the Unclassified / Declassified Holdings of the National Archives

^

.............

"■

' ' ---- —

J

....... ....

...

(9 )

5946

These d a tes a re o f prime im portance in showing the tim in g o f the v a rio u s
o p e ra tio n s and o f the employment in v o lv e d in each such o p e ra tio n .
S e c tio n 6 .

P r e p a ra tio n o f GC Form 11. Labor and P a y r o ll A n a ly s is o f

R e l i e f and N o n -R e lie f to he P a id f r o m Work P ro g ram Funds O n ly.
1 and 2:

Columns

These columns are id e n t ic a l to Columns 1 and 2 o f CC Form 10

and the same comments a p p ly.
Columns 3 and 4, E stim ated Maximum Number o f E m ployees:

Only those

em ployees whom i t i s proposed to pay out o f a llo tm e n t o f funds under
Emergency R e l i e f A p p ro p ria tio n A c t o f 1935 (a p p lie d f o r on NEC Form l )
should be in c lu d e d .

Of these in clu d ed em ployees, e n te r the e stim a ted

maximum number to be employed a t any one tim e on each o p e r a tio n and
occu p ation s e p a ra tin g those i t
r o lls

i s a n tic ip a te d can be secured from r e l i e f

( Column 3 ) from those which w i l l have to be ob ta in ed from o th e r

sources ( Column 4 ).

I t i s r e c o g n iz e d th at the break between r e l i e f and

h o n - r e l i e f w i l l be determ ined f i n a l l y by the number and c l a s s i f i c a t i o n
o f r e l i e f p ers o n n e l a v a ila b le in the l o c a l i t y where the p r o je c t i s
be c a r r ie d on.

to

The estim a te d e s ir e d here i s the numbers r e s p e c t iv e ly

o f r e l i e f and n o n - r e l i e f p erso n n el req u es ted o f the Work s P r o g r e s s
A d m in is tra tio n by the p r o je c t sp on sor.
Columns 5 and 6 , T o ta l E stim ated Labor Cost:

This cost i s to be

met from funds made a v a ila b le b y the Emergency R e l i e f A p p ro p ria tio n A ct
o f 1935, broken to separate the amounts to be p a id ’w orkers drawn from
r e lie f r o lls

( Column 5) from amounts to be p a id f o r n o n - r e l i e f la b o r

( Column 6 ).

The sum o f the t o t a l s o f Column 5 and Column 6 should equal

the t o t a l o f Column 7 o f CC Form 10.




Reproduced from the Unclassified / Declassified Holdings of the National Archives

# €
(1 0 )

Columns 7 and 8 :

5946

Note th a t the sum o f the t o t a l o f Column 7 and

the t o t a l o f Column 8 should he sm a ller than the t o t a l o f Column 5 o f
CC Form 10 "by the number o f man-hours to be co n trib u ted or su p p lied from
sources o th e r than h ir e out o f funds made a v a ila b le b y the Emergency
R e l i e f A p p ro p ria tio n A ct o f 1935.
S e c tio n 7.

P re p a r a tio n o f CC Form 12, A l l Non-Labor Costs b y

Source o f Funds.

The v a rio u s item s on CC Form 12 are s e lf- e x p la n a t o r y

f o r the most p a r t.

Column 2 c a lls f o r a d e s c r ip t io n o f the g e n e ra l

c la s s o f e xp en d itu res l i s t e d in Column 1.

O pposite "R ent o f S p ace",

f o r exam ple, the a p p ro p ria te e n t r ie s m ight b e :
New York,

(b ) 30,000 square f e e t

Chicago,

( a ) 50.000 square f e e t

( c ) 10,000 square f e e t

Washington.
Column 5:

I t may be d i f f i c u l t to s ta te in d o l l a r terms a l l item s

coming under Column 5.

If

so, in d ic a t e e x te n t o f c o n tr ib u tio n , e t c . ,

in some o th e r terms and fo o tn o te the a p p ro p ria te item in Column 3 which
c a l l s f o r the t o t a l in terms o f d o lla r s .




5946
OPERATIONS TO
BE PERFORMED

an d p a y r o l l a n a l y s is

OCCUPATION
AND CLASS
OF LABOR

121
S u p erviso rs
Squad le a d e rs
Enumerators
Spot checkers

m
EEtEBRATIOE

a l l em ployees

on pro ject re g ard less

ESTIMATED TOTAL {ESTIMATED RATE OF PAY
PER HOUR
TOTAL
NUMBER OF
PER RTEEK
NUMBER
EMPLOYEES
PER MONTH
OF MAN
Maximum A vera ge
E TC ,(Spec­
HOURS
i f y -which)

— 111

111

(51

( 6)

of

source of p a y

TOTAL ESTIMATED
LABOR COST

ESTIMATED DATES>

FOR
FOR
FROM WORK FROM A IL BEGINNING COMPLET­
PROGRAM
OTHER
THE
ING THE
FUNDS
SOURCES OPERATION
OPERATIONe
( 8)
(7 )
(9 )
in )

T o ta l
EDITING

1

-Su pervisors
[E d itors
'o t a l i

IODING

s u p e rv is o rs
Coders

Total
"ABULi TING

S u p e rv iso rs
Pune he rs
T ab u la to rs
Computers
T ab le Maker£
Craftsm en
Tot a]

SUPERVISION,
GENERAL OFFICE
AND CLERICAL

Pro je c t D ir •
A s s is ta n ts
Stenographers
Cle rks

O

T o ta l
OTHER OPERATIONS
(S p e c ify __________

T o ta l

ESTIMATED NUMBER
OF EMPLOYEES.
1ST WEEK OF OPER­
ATIONS
LAST WEEK OF OPER­
ATIONS
Peak week o f op er­
a tio n s

Reproduced from the Unclassified / Declassified Holdings of the National Archives




LABOR

CC FORM 10

Reproduced from the Unclassified / Declassified Holdings of the National Archives

7CC FORM
- 11

G <j

o o

- 7 -

5946

LABOR AND PAYROLL ANALYSIS OF RELIEF AND EON-RELIEF
EMPLOYEES TO BE PAIL FROM WORK PROGRAM FUNDS ONLY

OPERATIONS TO
BE PERFORMED

OCCUPATION
AMD CLASS
OF LABOR

'

.
_
(i)
ENUMERATION

ESTIMATED MAXI­
MUM NUMBER OF
EMPLOYEES

W

FROM
RELIEF
ROLLS
~

S u p erviso rs
Squad Leaders
Enumerators
Spot Checkers
T o ta l

EDITING

S u p erviso rs
E d ito r s
T o ta l

CODING

S u p erviso rs
Coders
T o ta l

TABULATING

S u p erviso rs
Punchers
T a b u la to rs
Computers
T a b le Makers
D r a ft smen
T o ta l

SUPERVISION,
GENERAL OFFICE
AND CLERICAL

T o ta l
OTHER OPERATIONS
(S p e c if y )

T o ta l



P r o je c t D ir .
A s s is ta n t s
Stenographers
C lerk s

(3 )

OTHER

m

TOTAL ESTIMATED
LABOR COST
Persons
DRAWN
FROM
RELIEF
ROLLS
' (5 )

ESTIMATED
MAN HOURS
REQUIRED

PERSONS
DRAWN
FROM
OTHER
RELIEF
ROLLS
( 6 ) .....
(? y

OTHER

CC FORM 12

-

8-

r
ALL- NON-LABOR COSTS. BY SOURCE OF FUNDS

DESCRIPTION
OF
ITEMS
(2 )

m
RENT OF SPACE

RENT OF EQUIPMENT

TRAVEL

TRANSPORTATION, POSTAGE,
TELEPHONE, TELEGRAPH, ETC.

MATERIALS AND SUPPLIES

PRINTING, MIMEO. ETC.

OTHER

(S p e c ify )

TOTAL




TOTAL
COST

AMOUNT TO BE AMOUNT TO BE
SUPPLIED FROM SUPPLIED FROM
OTHER THAN
WORK PROGRAM
WORK PROGRAM
FUNDS
FUNDS

______ L 3 l) ____ ____ (4 )___________ _____ (5 )________

rvjpiuuucea irom me unclassified / Declassified Holdings of the National Archives

F o r m N o . 181

o

Office Correspondence

'*t

FEDERAL RESERVE
BOARD

6 . 1935 &
m
‘ !f
To, Mr. Currie and others on the Credit ComSubject: Formulation of the deposit
mittee dealing with white collar projects.
~ — "
---- F ro m R°land Robinson
ownership and deposit activity study.
Date. J W

6po

16—852

The deposit records of the Federal American National Bank and Trust Company
have been inspected, and experimental work with these records is now in progress
-™
"
" ^
in this office.

Several problems need consideration and decision before

definite plans may be made and schedules drafted for purposes of the study.
These problems are outlined below.
1.

A measure of size of monthly balances must be selected.

Several of the

figures that may be used are the daily average, the average of two or more single­
day deposit balances, the average of high and low balances, or the balance of
a specified day of each month.

The experimental work already completed indicates

that the computation of daily average deposit balances takes about 60 times as
much labor as the posting of the single-day deposit balances, that the average
of 5 single-day deposit balances takes about 8 times as much labor as the post­
ing of the single-day deposit balances and that selection of high and low deposit
balances and the computation of their average consumes about 10 times as much
labor as the posting of the single-day deposit figures.

On the basis of the

very small number of accounts covered in the experimental work there is no

Y

evidence to indicate that the average of 5 single-days or the average of the
high and low deposit balances give results substantially superior to those of
single-day deposit balances.

The tentative suggestion is, therefore, that

single-day deposit balances be used.
the choice of the day.

There are several considerations affecting

Since the payment of wages and salaries by employers

and the receipt of salaries and wages by employees is an important factor
affecting deposit balances, it is desirable to select a day on which influence
of this factor is constant.




The study made by Miss Joy of wage payments in the

unciass,r,ed ' Declassified Holdings of the National Archives

-

2

-

month of May 1931 indicates that a large proportion of wage and salary payments
are made by check and are made in weekly and biweekly intervals*

To allow for

this factor it would be desirable to keep the day of the week a constant factor*
It would also be desirable to stabilize, insofar as possible, the influence of
check payments made to settle trade accounts*

There is no existing study cov­

ering the periodicity of such payments but the opinion of Mr* Wilford White,
of the Market Service Section of the Bureau of Foreign and Domestic Commerce,
is that a large proportion of such accounts are settled in the first 10 days of
the month.

This excludes payment of public utility bills which are commonly

prorated equally throughout the month and are therefore not important.

It is,

therefore, desirable that the single-day deposit balances should avoid the first
10 days of the month.

In addition, the interest, salary, and tax payments

falling on the first (and the last) day of the month, as well as the 15th of
the month, make it desirable to avoid these days.

In view of these several

considerations it is suggested that the Wednesday after the third Saturday in
the month be considered as a desirable day of the month on which to collect
deposit balance figures.

This day falls between the 19th and the 25th of each

month*
Since this study will depend more on the comparison of changes of deposit
ownership rather than absolute proportions, it may be argued that a single-day
figure which would not be influenced by any periodicity of the month would be
about as satisfactory as a highly complex average of deposit balances.

A table

comparing the measures of deposit size is attached.,
2.

If deposit activity is to be secured some decision must be reached

about the size of the sample to be covered.

The securing of debits by straight

computation will take approximately 100 times as much time as the posting of




Keproduced from the Unclassified / Declassified Holdings of the National Archives

- 3 -

single-day deposit figures.

In addition, such direct calculations will call

for the provision of computing machines in each bank covered.

Since, as it

will be noted below, it will be highly desirable to make the work in each bank
consist of nothing more than transcription it would be desirable to construct
the activity schedules in view of such considerations.

If deposit activity

were to be secured by the transcription of credits to deposit accounts and monthend balances and deducing debits from such figures (the formula would be deposit
balances at first of the month plus credit minus deposit balances at end of
month equals debits) the amount of labor involved would be considerably reduced.
It would be feasible to construct schedules which would allow space for the
transcription of credits so that computations could be made outside of the
subject banks.
5. Some decision must be reached between the choice of covering a smaller
number of banks completely or securing partial coverage in a large number of
banks.

It is suggested that this latter policy be adopted.

The Works Progress

Administration prefers continuous employment so far as it is possible, and it
would be undesirable, if not impossible, to have too many workers in each sub­
ject bank.

It is therefore suggested that some rule be adopted that would limit

the coverage

for each subject bank to the work that could be completed by two

clerks in thirty weeks.

It is suggested that the banks be carefully selected

to give representation to each type of business account desired, but that within
each bank random sampling of the deposit accounts be followed by some such
device as the choice of letters of the alphabet.
4. Some technic should be devised to insure uniform treatment of the
deposit balances in the subject banks that are only part of the total deposit
holdings of individual and corporate depositors.




Reproduced from the Unclassified / Declassified Holdings of the National Archives

- 4 -

5. Some scheme of classification of business enterprise must be devised*
The classifications used in the Censuses of manufactures, distribution, agricul­
ture, and population, as well as the classification used in the Statistics of
Income, and the classifications used in the Belcher Report on "A program for the
examination of statistics relating to certain phases of industrial operations
have been examined and plans are now in preparation for presentation of a
suggested classification suitable for this study*

6* There are certain mechanical and administrative problems which need to
be reviewed*
(a) Since the records used are confidential it is desirable that
some scheme be devised to separate the body of the schedules from the
attached information concerning the deposit holders*

If these schedules

were divided at the subject banks and the part listing general information
about the depositors transmitted to one place and the body of the figures
transmitted to another place for computation and the two parts being joined
by duplicate numbers, the vital information of individual cases would be
obscured to all except the original transcribing clerks*
(b) Some plans should be made for canvassing the banks and determining
how receptive they will be to receiving and housing the relief clerks*

In

the event that many banks seem to resist the project it is suggested that
failed banks under the jurisdiction of the Comptroller of the Currency
might be used as subject cases*
(c) It is recommended that tabulation and computation be done outside
of the subject banks both in order to reserve the confidential character
of the information and in order to economize on the use of calculating
machines




Reproduced from the Unclassified / Declassified Holdings of the National Archives

- 5 -

7* It is suggested for consideration that this project should be adopted
only if this Division anticipates the provision of sufficient research time
to properly analyze and report on the findings*
Copies of tentative drafts of the schedules are attached*




Reproduced from the Unclassified / Declassified Holdings of the National Archives

r

Namo

Bank

Addre ss__________________
(street)
Business or -profession "

(state)

(town)
Code

(leave blank)
Size of account

Size (D & B).

(leave blank)

(leave blank)
Deposits
1932

1930

1931

192S

1929

J anuary

•20,

.21

22:

23

.29'

February

24

29

19

20

21

March

23

29

19

20

21

April

20

22

23

24

29

May

23

20

21

22

23

June

22

24

29

19

20

July

20

22

23

24

29

August

24

19

20

21

22

September

21

23

24

29

2-9

October

19

21

22

23

24

IJovember

23

29

19

20

21

December

21

23

24

24

19

-

Post deposits for each month of each year as of date in left hand column
or last preceding date




Reproduced from the Unclassified / Declassified Holdings of the National Archives

Bank

Name__
Address

(state)
Code_____________
(leave blank)
Size (D & B)_______ _________________Size of account_________________
(leave blank)
(leave blank)

(street)
Business or Profession__

1928

(town)

Activity
,,..-41,...,of
.-..sDeposit
r
........Accounts__________________
Check column
Credits during
Deposits at end Debits during
(leave blank)
month
month
of month

January

i
i
I

February

!
. -...... j
i

March
April
.May..
June
.July
August
September
October
November
December
.

i221
January
Feb ruary
March
1-------------->pril
May
June
_________

August
September
October
November
m

December




-

-

Reproduced from the Unclassified / Declassified Holdings of the National Archives

- 2 -

Deposits at end
of month

19 30

Check column
(leave blank)

Credits during
month

Debits during
month

January
t
February
----------------------------------------- L

i
I

March

_ _

..

_____

_________ ____ ___________ _

___—_

>

i
. I
f
1
}
j

April
May

1

June

___________

July
August
September

... ...jI

.

1

_______ _______________________ i

1

!__________

October

j

November

.............j

December
M l
J anuary
j
i

Feb marv
March
April'.
May

!
1
--- ------------ j|
,.,...,.....

June

1f

........................

j
j

July
August

i

September

1
1
1

October

1

..........

I
November

!

De cember
13^2
J anuary
Feb ruarv
March

!
1
|
.... r-....... . ■— ... ■!.... .
-------------------------------------------------------- r........
1
j
!
1 ... . . . . . . . .
|
i
1
t

May

i

!
i

1

I

.. ■■■ —

■

'■

1-----------i
" r

j

J u ly
August

i
i

September

1
I
!

O ctob er

|

November


http://fraser.stlouisfed.org/
December
Federal Reserve Bank
of St. Louis

----

1

Apart!-______________

June

'1•

i
j
j---------------

j

i
J ________

_______

1................ .... ■ ■■■■■— ■

Bank___ ______________________________ Address_______________ ______________________ _____________
(street)
(town)
(state)
Business or profession____________________________ Code,_______________ Size (D & 5)________________________ Size of account
(leave "blank)
(leave "blank)
(leave blank)

Hame

Deposit Activity
January

19
1
J

February

March

May

April

...........
/

■

O

June

July

August

September

October

November

■.

;
\
Credits

^
!
i

- ...

..-

...

1
X•>

a. Total credits

b. Deposit balance at end
of previous month
(a) plus (b)
{

, Deposit balance at end
of current month

i

Debits.(c) minus (d)
or

____ J

'This fonp may be varied to have from 5 to ^ 0 [ n o r e lines for credits.




1
------1

December

reproduced trom the Unclassified / Declassified Holdings of the National Archives

'Tvx ''t °ju

ALABAMA
Birmingham
/ Mobile
x
ARIZONA
^ Clifton
y Phoenix
ARKANSAS
✓
Little Rock
CALIFORNIA
Long Beach
Los Angeles
San Francisco
v- Bakersfield
✓ Grass Valley
y * Nevada City
COLORADO
Denver
✓
Pueblo
CONNECTICUT
Bridgeport
✓
Danbury
/
New Britain
New Haven
y .Waterbury
DELAWARE
Wilmington
FLORIDA
Jacksonville
Tampa
GEORGIA
Atlanta
y
Columbus

h«rt*jYVX-

^<yv

IOWA
y Sioux City
y Waterloo
Des Moines
KANSAS
Wichita
^
Coffeyville
y Independence
Kansas City
y
Topeka
KENTUCKY
Louisville
y Harlan
LOUISIANA
New Orleans
MAiNE
z Portlend
MARYLAND
Baltimore
y
Cumberland
MASSACHUSETTS
Boston
y
Brockton
Springfield
Worcester
K Medford
MICHIGAN
Detroit
y
Battle Creek
Flint
Grand Rapids
y Houghton
y
Kalamazoo
y
St. Clair

IDAHO
,y

Boise

ILLINOIS
Chicago
y
E. St. Louis
y
Springfield
INDIANA
Indianapolis
y
Bedford
y
Terre Haute




MINNESOTA
Duluth
k
Hibbing
Minneapolis
St. Paul
MISSOURI
y Joplin
Kansas City
St. Louis

r ,

'OCXS'*r

7

W i l l

3

Reproduced from the Unclassified / Declassified Holdings of the National Archives

-

2

-

MONTANA
Z Butte
Great Falls

OKLAHOMA
Oklahoma City
Tulsa

NEBRASKA
Omaha

OREGON
Portland

NEW HAMPSHIRE
zv Manchester

PENNSYLVANIA
Pittsburgh
z Beaver Falls
z Johnstown
z Chester
Scranton
\
Z
" Lancaster
z Allentown
z Norristown
z Pottstown
z Bethlehem
Philadelphia
z Pottsville
z New Castle

NEW JERSEY
Camden
Paterson
Z Perth Amboy
Trenton
NEW MEXICO
v
Albuquerque
NEW YORK
New York City
New York City- Brooklyn
New York City- The Bronx
Buffalo
Rochester
Z Jamestown
z Gloversville
Utica
Syracuse
Z Troy
^
Schenectady
NORTH CAROLINA
z Winston-Salem
z
Gastonia
z
Greensboro
z Charlotte
Z Durham
NORTH DAKOTA
z Fargo




z U lt W l
Youngstown
z Mercer, Pa.
Akron
Amherst
Toledo
Dayton

SOUTH CAROLINA
z Greenville
^ Columbia
SOUTH DAKOTA
k
Lead
TENNESSEE
Knoxville
Memphis
Nashville
TEXAB
Dallas
Houston
El Paso
z Beaumont
z Port Arthur
z Tyler

OHIO
Cleveland
Cuyahoga
Loraine
Cincinnati

RHODE ISLAND
Providence
Fall River, Mass.
New Bedford, Mass.

>
UTAH
Salt Lake City
z Bingham Canyon
VERMONT
z Barre
Z Burlington

Reproduced from the Unclassified / Declassified Holdings of the National Archives

o o
VIRGINIA
Richmond
WASHINGTON
Seattle
Spokane
^ Aberdeen
z Bellingham
WEST VIRGINIA
^ Wheeling
^ Huntington
s Clarksburg
✓ Charleston
Fayetteville
WISCONSIN

y




Milwaukee
Oshkosh

Reproduced from the Unclassified / Declassified Holdings of the National Archives

X
\
W-#,-r3 V-'
V4„
v

'

DATES FOR WHICH BALANCES ARE.
TO BE TRANSCRIBED

1928

1929

1950

1951

1955

1952

11

9

8

7

6

11

February

8

6

12

11

10

8

March

7

6

12

11

9

A p r il

11

10

9

8

6

May

9

8

7

6

11

June

6

12

11

10

8

Ju ly

11

10

9

8

6

8

7

6

12

10

September

12

11

10

9

7

O ctober

10

9

8

7

12

November

7

6

12

11

9

December

12

11

10

9

7

January

August




Reproduced from the Unclassified / Declassified Holdings of the National Archives

F o r m N o . 131

Office Correspondence
To______ Mr. G oldenw eiser

FEDERAL RESERVE
BOARD

Subject:.

F ro m ____ Mr. C a rp e n te r___

" p r o je c ts tin d er th e Works R e l ie f Program was d is c u s s e d a t th e m eetin g o f
th e E x ecu tiv e Committee o f th e Board y e s te rd a y and th e D iv is io n o f
R esearch and S t a t i s t i c s was a u th o riz e d t o make a f u r t h e r stu d y o f th e
m a tte r , a n d , i f i t should be d e cid e d t h a t s tu d ie s should be made u n d e r
th e Works R e l ie f Program , t o subm it a recom m endation to th e Board*




Reproduced from the Unclassified / Declassified Holdings of the National Archives

EXCERPT FROM MINUTES OF FLEETING OF EXECUTIVE COMMITTEE ON JUNE 26, 1935,
AT WHICH MEETING WERE PRESENT
Mr.
Mr.
Mr.
Mr.

Eccles, Governor
Miller
James
Szymczak

Mr. Morrill submitted a memorandum addressed to the Board by Mr.
Goldenweiser, Director of the Division of Research and Statistics, under
date of June 25, 1935, (to which was attached a memorandum describing
certain ”white collar” projects under the Works Relief Program in which
the Division is interested; stating that it is believed that the prospect
of obtaining information that will be useful to the Board is sufficient
to justify a certain amount of exploratory work which would not involve
any direct outlay for the Board, and proposing, if the Board interposes
no objection, to explore these projects further and prepare for the
Board1s consideration definite applications for allotments for funds
under the Works Relief Program.
Mr. Miller stated that when the matter referred to in the memo­
randum was first brought to his attention he was inclined to the opinion
that it was not the type of activity in which the Federal Reserve Board
should be interested, but that, upon further consideration, he concurred
with Mr. Goldenweiser that the information which would be made available
through studies of bank statistics may be useful to the Board, and that
if the Division of Research and Statistics reaches the conclusion that
useful studies could be made, he would favor the authorization of the
preparation by the Division of applications for allotments.




After a brief discussion it was agreed to
authorize the Division of Research and Statistics
to make a further study of the matter and, if it
should be decided that studies should be made
under the Works Relief Program, to submit a
recommendation to the Board.

Keproduced from the Unclassified / Declassified Holdings of the National Archives

X
y

y

June 2 6 , 1 9 5 6 ,
M D B A S M I OH WHITE COLLAR PROJECTS OTDI'.R TH> WORKS
RELIEF PiOGRAW

■ r . Frm k A, W alker h as I n v ite d t h ; F e d e ra l R eserve Board to
subm it a p p lic a tio n s f o r a llo tm e n ts u n d er th e Works

R e lie f Program ,

to fin a n c e any p r o je c ts w hich i t c a re s to u n d e rta k e and s u p e r v is e ,
and which w i l l g iv e employment to w h ite c o l l a r w orkers a t p r e s e n t
on r e l i e f r o l l s .

The m a tte r was r e f e r r e d by Governor E c c les to

th e D iv is io n o f R esearch f o r c o n s id e r a tio n and s tu d y .
We have under c o n s id e r a tio n two r e l a t e d p r o j e c t s .

The f i r s t

i s a stu d y o f th e b e h a v io r o f d e p o s its i n 1 9 2 8 - 6 2 , c l a s s i f i e d by
ty p e , s iz e and c la s s o f d e p o s ito r .

In fo rm a tio n a s to th e ow nership

>

o f d e p o s its and th e s h i f t s in owner h ip in th e co u rse o f a b u s in e s s
c y c le i s a t p re s e n t a lm o st co m p letely la c k in g .
-«gr

...

I t i s q u ite con-

;

c e iv a b le t h a t such in fo rm a tio n o b ta in e d c u r r e n tly ml. h t prove o f
r e a l v a lu e in a id in g t h t Board in i t s fo rm u la tio n o f p o lic y .
A d i f f e r e n t p o lic y m ig h t, f o r in s ta n c e , be c a ll e d f o r i f & r i s i n g
sto c k m arket In v o lv e d a la r g e t r a n s f e r o f d e p o s its from p e rs o n a l
and i n a u s t r i a l h o ld e rs to f i n a n c i a l groups th an i f i t was b ein g
fin a n c e d by p re v io u s ly i d l e f i n a n c i a l d e p o s its and was n o t r e s u l t i n g
i n a d r a in on th e i n d u s t r i a l c i r c u l a t i o n .

A gain, i t m ight be found

a t a p a r t i c u l a r tim e t h a t d e p o s its o f c o rp o ra tio n s were in c re a s in g
ra p id ly .

T his would c a l l f o r i n v e s t ig a ti o n a s to w hether th e

in c re a s e was due to & s a le o f s e c u r i t i e s and a con seq u en t t r a n s f e r
o f d e p o s its from th e f i n a n c i a l c i r c u l a t i o n o r w hether i t was due




lCKIUUUueu irom Ine ^classified / Declassified Holdings of the National Archives

— 2—

to a sudden c e s s a tio n o f buying on th e p a r t o f c o r p o r a tio n s .

In

g e n e r a l, a sudden change i n th e d e p o s it h o ld in g s o f any la r g e group
should c a l l f o r stu d y and inve; t i g a t i o n i n o rd e r to d e term in e i t s
s ig n if ic a n c e f o r c u r r e n t and f u tu r e b u s in e s s c o n d itio n s .

A sample

stu d y o f th e b e h a v io r o f d e p o s its o f d i f f e r e n t economic groups i n
th e y e a rs 1 9 2 8 - 5 2 m ight g iv e th e Board a s u f f i c i e n t b a s is f o r d e c id in g
w hether o r n o t th e c o lle c tio n o f c u r r e n t in fo rm a tio n on t h i s m a tte r
would throw l i g h t upon c u r r e n t tre n d s and th u s a id i n th e fo rm u la tio n
o f p o lic y .

The work would presum ably be done by form er employees o f

banks under th e g e n e ra l s u p e rv is io n o f t h i s D iv is io n .
The second p r o je c t i s c lo s e ly r e l a t e d to th e f i r s t .

V arious

a g e n c ie s a r e in v e s t ig a ti n g th e f e a s i b i l i t y o f c o lla b o r a tin g i n a stu d y
o f th e economic h i s t o r y o f a t y p ic a l Am r le a n c i t y o f betw een f i f t y
and one hundred thousand popul tio n d u rin g th e d e p re s s io n .

I t is

su g g este d t h a t each agency*s stu d y would be re n d e re d more s i g n i f i c a n t
by th e background p ro v id e d by th e s tu d ie s o f a l l th e o th e r a g e n c ie s .
T hus, I f we should in v e s t i g a t e th e b e h a v io r o f d e p o s its by c la s s e s o f
d e p o s ito rs i n th e s e le c te d c i t y , we would be a b le to i n t e r p r e t o u r f in d ­
in g s in th e l i g h t o f what was happening to incom es, employment, m ;n u fs u t­
u r in g , t r a d e , m o rtg ag es, e t c . , in t h a t c i t y .
We a r e n o t a s y e t in a p o s itio n to make any s p e c if ic recommend­
a tio n s to th e B oard, b u t we sho u ld l i k e to be a u th o ris e d to in v e s t ig a te
th e f e a s i b i l i t y o f th e p r o je c ts m u tio n e d above an d , i f upon i n v e s t i ­
g a tio n th ey a p p ea r f e a s i b l

and prom ise w orthw hile r e s u l t s , to subm it

a t a l a t e r d a te d e f i n i t e recommend:- io n s f o r th e Board*s c o n s id e r a tio n .




Reproduced from the Unclassified / Declassified Holdings of the National Archives

1

MEMORANDUM ON WHITE COLLAR PROJECTS UNDER THE WORKS
RELIEF PROGRAM

Mr, Frank A, W alker his I n v ite d th e F e d e ra l R eserve Board to
subm it a p p lic a tio n s f o r a llo tm e n ts under th e Works R e lie f Program ,
to fin a n c e any p r o je c ts which i t c e r e s to u n d e rta k e and s u p e r v is e ,
and which w i l l g iv e employment to w h ite c o l l a r w orkers a t p re s e n t
on r e l i e f r o l l s e

The m a tte r was r e f e r r e d by Governor E c c le s to

th e D iv is io n o f R esearch f o r c o n s id e ra tio n and s tu d y .
Wa have under c o n s id e ra tio n two r e l a t e d p r o j e c t s .

The f i r s t

i s a stu d y o f the' b eh av io r o f d e p o s its in 1 9 2 8 - 5 2 , c l a s s i f i e d by
ty p e , s iz e and c la s s o f d e p o s it o r .

In fo rm a tio n a s to th e ow nership

o f d e p o s its and th e s h i f t s i n ow nership in th e c o u rse o f a b u s in e s s
c y c le i s a t p re s e n t alm o st co m p le tely la c k in g .

I t i s q u ite con­

c e iv a b le t h a t such In fo rm a tio n o b ta in e d c u r r e n tly m ight prove o f
r e a l v a lu e i n a id in g th e Board in i t s fo rm u la tio n o f p o lic y .
A d i f f e r e n t p o lic y m ig h t, f o r I n s ta n c e , be c a ll e d f o r i f a r iv i n g
s to c k m arket in v o lv e d a la r g e t r a n s f e r o f d e p o s its from p e rs o n a l
and i n d u s t r i a l h o ld e rs to f i n a n c i a l groups th a n i f i t was b ein g
fin a n c e d by p re v io u s ly i d l e f i n a n c i a l d e p o s its and was n o t r e s u l t i n g
i n a d r a in on th e I n d u s t r i a l c i r c u l a t i o n .

A gain, i t m ight be found

a t a p a r t i c u l a r tim e t h a t d e p o s its o f c o rp o ra tio n s were in c r e a s in g
ra p id ly .

T his would c a l l f o r i n v e s t ig a ti o n a s to w hether th e

in c re a s e was due to a s a le o f s e c u r i t i e s and a co n seq u en t t r a n s f e r
o f d e p o s its from th e f i n a n c i a l c i r c u l a t i o n o r w hether I t was due
to a sudden c e s s a tio n o f buying on th e p e r t o f c o r p o r a tio n s .




In

Reproduced from the Unclassified / Declassified Holdings of the National Archives

g e n e r a l, a sudden change In th e d e p o s it h o ld in g s o f any la r g e group
should c a l l f o r stu d y end I n v e s tig a t io n In o rd e r to d eterm in e I t s
s ig n if ic a n c e f o r c u r r e n t and f u tu r e b u s in e s s c o n d itio n s .

A sample

stu d y o f th e b e h av io r o f d e p o s its o f d i f f e r e n t economic groups
An th e y e a rs 1 9 2 8 - 5 2 m ight g iv e th e Board a s u f f i c i e n t b a s is f o r
d e c id in g w hether o r n o t th e c o l l e c t i o n o f c u r r e n t in fo rm a tio n on
t h i s m a tte r would throw l i g h t upon c u r r e n t tre n d s and th u s a id i n th e
fo rm u la tio n o f p o lic y .

The work would presum ably be done by form er

employees o f banks under th e g e n e r a l s u p e rv is io n o f t h i s D iv is io n .
The second p r o je c t I s c lo s e ly r e l a t e d to th e f i r s t .

V arious

a g e n c ie s a r e in v e s t ig a ti n g th e f e a s i b i l i t y o f c o lla b o r a tin g i n a
stu d y o f th e economic h is tA ry o f a ty p i c a l American c i t y o f between
f i f t y and one hunc re d thousand p o p u la tio n d u rin g th e d e p re s s io n .
I t i s su g g este d t h a t each agency*s stu d y would be re n d e re d more
s i g n i f i c a n t by th e background p ro v id e d by th e s tu d ie s o f a l l th e
o th e r a g e n c ie s .

Thus, i f we sho u ld in v e s t ig a te th e b eh av io r o f

d e p o s its by c la s s e s o f d e p o s ito r s in th e s e le c te d c i t y , we would be
a b le to i n t e r p r e t o u r fin d in g s i n th e l i g h t o f what

was happening

jro incom es, employment, m a n u fa c tu rin g , t r a d e , m o rtg ag es, e t c , , in
th a t c ity ,
We a r e n o t a s y e t in a p o s itio n to make any s p e c if ic recommend­
a tio n s t o th e B oard, b ut we should l i k e to be a u th o r is e d to i n v e s t i g a t e
th e f e a s i b i l i t y o f th e p r o je c ts m entioned above a n d ,i f upon in v e s t­
ig a tio n th e y a p p ea r f e a s i b l e and prom ise w orthw hile r e s u l t s , to
subm it a t a l a t e r d a te d e f i n i t e recom m endations f o r th e B oard*•
c o n s id e ra tio n




Reproduced from the Unclassified / Declassified Holdings of the National Archives

^4-4'. 5 U /

I
MEMORANDUM ON WHITE COLLAR PROJECTS UNDER THE WORKS
RELIEF PROGRAM

Mr. Frank A. Walker has invited the Federal Reserve Board to
submit applications for allotments under the Works Relief Progran^
to finance any projects which it cares to undertake and supervise,
and which will give employment to white collar workers at present
on relief rolls.

The matter was referred by Governor Eccles to

the Division of Research for consideration and study.
We have under consideration two related projects.

The first

is a study of the behavior of deposits in 1928-32, classified by
type, size and class of depositor.

Information as to the ownership

of deposits and the shifts in ownership in the course of a business
cycle is at present almost completely lacking.

It is quite con­

ceivable that such information obtained currently might prove of
real value in aiding the Board in its formulation of policy.
A different policy might, for instance, be called for if a rising
stock market involved a large transfer of deposits from personal
and industrial holders to financial groups than if it was being
financed by previously idle financial deposits and was not resulting
in a drain on the industrial circulation.

Again, it might be found

at a particular time that deposits of corporations were increasing
rapidly.

This would call for investigation as to whether the

increase was due to a sale of securities and a consequent transfer
of deposits from the financial circulation or whether it was due
to a sudden cessation of buying on the part of corporations.




In

nepiuuuiea rrom tne unciassitied / Declassified Holdings of the National Archives

-

2-

general, a sudden change in the deposit holdings of any large group
should call for study and investigation in order to determine its
significance for current and future business conditions.

A sample

study of the behavior of deposits of different economic groups
in the years 1928-32 might give the Board a sufficient basis for
deciding whether or not the collection of current information on
this matter would throw light upon current trends and thus aid in the
formulation of policy.

The work would presumably be done by former

employees of banks under the general supervision of this Division.
The second project is closely related to the first.

Various

agencies are investigating the feasibility of collaborating in a
study of the economic history of a typical American city of between
fifty and one hundred:thousand population during the depression.

I t i s su g g este d t h a t each agency’ s stu d y would be re n d e re d more
s i g n i f i c a n t by th e background p ro v id e d by th e s tu d ie s o f a l l th e
o th e r a g e n c ie s .

Thus, i f we sh o u ld i n v e s t ig a te th e b e h av io r o f

d e p o s its by c la s s e s o f d e p o s ito r s in th e s e le c te d c i t y , we would be
a b le to i n t e r p r e t our f in d in g s i n th e l i g h t o f what

was happening

$o incom es, employment, m a n u fa c tu rin g , t r a d e , m o rtg ag es, e t c . , in
th a t c ity .
We are not as yet in a position to make any specific recommend­
ations to the Board, but we should like to be authorized to investigate
the feasibility of the projects mentioned above and,if upon invest­
igation they appear feasible and promise worthwhile results, to
submit at a later date definite recommendations for the Board’s
consideration.




Reproduced from the Unclassified / Declassified Holdings of the National Archives

Office Corresponuence
To----------- Federal R eserve Board

FEDERAL RESERVE
BOARD

Date Ju n e

25,

1935

Subject:J----------- WcDEftM

From-------- Mr. Goldenwe i se r
epo

There i s a tta c h e d a memorandum d e s c r ib in g c e r t a i n w h ite
c o l l a r p r o je c ts u n d er th e Works R e lie f program in w hich t h i s
D iv is io n i s i n t e r e s t e d .

I b e lie v e t h a t th e p ro s p e c t o f o b ta in ­

in g in fo rm a tio n t h a t w ill be u s e f u l to th e Board i s s u f f i c i e n t
to j u s t i f y a c e r t a i n amount o f e x p lo ra to ry work w hich would n o t
in v o lv e any d i r e c t o u tla y f o r th e B oard.

I t i s p ro p o se d ,

t h e r e f o r e , i f th e Board in te r p o s e s no o b je c tio n s , to e x p lo re
th e s e p r o j e c t s f u r t h e r and to p re p a re f o r th e B o ard 1s c o n s id e ra ­
t i o n d e f i n i t e a p p lic a tio n s f o r a llo tm e n ts to be fo rw ard ed to
Mr. W alker.

D
5igitized for FRASER


w m Trass o w

16— 8 2

Reproduced from the Unclassified / Declassified Holdings of the National Archives




Keproduced from the Unclassified / Declassified Holdings of the National Archives

4

T H E N A T IO N A L E M E R G E N C Y C O U N C IL

WASHINGTON
O F F IC E O F T H E

E X E C U T IV E D IR E C T O R
C O M M E R C IA L N A T IO N A L B A N K B U IL D IN G

May 11, 1935

14TH A N D G S T R E E T S N W .

To:

The Governor of the Federal Reserve Board.

From:

The Executive Director.

There are transmitted herewith, for use
in connection with projects considered eligible
under the Works Relief Program.
(a)

Forms, NEC I for allotment applications,
(federal projects).

(b)

Forms, NEC 2 for special allotment appli­
cations to the Bureau of the Budget,
(administ rative expenses).

(c)

Copies of •*Procedure governing the filing
and routing to the Advisory Committee on
Allotments of applications for allotments
under the Emergency Relief Appropriation
Act of 1935.»

Careful compliance with the procedure out­
lined and with instructions on forms will facili­
tate routing and submission of allotment appli­
cations to the Committee.




Frank C. Walker,
THE EXECUTIVE DIRECTOR.

Reproduced from the Unclassified / Declassified Holdings of the National Archives

(To be prepared in quintuplicate.
Additional or detailed data to be
attached using c o r r e s p o n d i n g
num bers)

Date
Department
project N o.

FEDERAL PROJECTS
Return to
National Emergency Council,
Washington, D . C.

Application for Allotment of Funds under
Emergency Relief Appropriation Act of 1935

N . E . C. N o.
Official
project N o.
Amount
requested $
Amount
approved $

Department or Independent Office:
Bureau:
Location of project:
State:

County:

C ity or tow n :

General location, if other than above:

1.

Description of project and character of work:

(a)

2.

Relative priority of this project in comparison with all projects embraced within the program ot
the Bureau:

Total estimated cost of project:

(а) Amount previously allotted or appropriated....... .................... ................ .............. $.
(б) Amount of allotment requested in this application_____ $__...... .......................
(c) Additional amount required to complete............ .............. $______ ___________

(d)

3.

.

T o t a l ______________ _______________________________ _________ ______________ $.

Give source of funds, if any, under 2 (a):

U. S. GOVERNMENT PRINTING OFFICE




N . E . C. Form 1— Page 1 of 3

16—3872

Reproduced from the Unclassified / Declassified Holdings of the National Archives

(i)
Amount
(D o lla rs )

(2)

(3)

Percent of
Subtotal

Percent of Total
Allotment

(4)
Daily Average
Number to be
Employed

4. Estimated division of allotment:
(a) Labor:
(1) Unskilled__ ________________
(2) Skilled.,_____ ____ __________
(3) Technical and clerical_________
(4)

Subtotal _____________

(b) Superintendence_____________

100
X X X

____

(c) Other expenses on project:
(1) Supplies, materials, equipment__
(2) Contingent expense...........
(3) Land______________________
(4)

(d)

Subtotal ,other expenses__

100

T o t a l (should correspond with
amount shown in 2 (&))_________

100

X X X

N o t e .— D o not include any estimate o f general administrative expenditures for salaries o f em ployees located in W ashington
or at any regional office or for general office expenses at such offices. A pplication for funds for such expenses should be m ade
on N. E: C. Form 2.

5. Estimated expenditure per man-year of employment: $
. [State number o f hours
per month and wage rate basis (P. W . A ., union scale, or other) used in 4 and 5.]

6. Estimated total man-hours:
7. Estimated period of preparation before work at site can be started

days.

8. Estimated daily average number of employees each month during execution of project:

9.

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

Estimated elapsed time from beginning work to completion

months.

10. (a) W hat part of labor on project would usually be handled b y contract?
(b) W hat part of labor on project would usually be day labor?

%
%

11. If this project is in fulfillment of some specific statutory authorization, give date of such law and statute
reference.

U. S. GOVERNMENT PRINTING OFFICE




N . E« C. Form 1— Page 2 of 3

16— 8872

Reproduced from the Unclassified / Declassified Holdings of the National Archives

12. Is any part of this project in conflict with previous congressional action?
13. Under what provision or classification of projects specified in Section 1, Emergency Relief Appropriation
A ct of 1935, may allotment be made legally?
14. Has validity of proposed allotment been approved by legal staff of Department or Independent Office?
15. From what other Federal agency, if any, has an allotment for this project been requested?
16. Status of plans:
(a) Surveys?
(b) W ork plans?
(c) Sketch plans?
(d) Detail plans?
(e) Specifications?
17. Status of land or sites:
(a) Acquired?
(b) Negotiations completed?
(c) Negotiations pending?
(d) Negotiations not begun?
18. Is project wholly or partially self-liquidating under present laws?
(Give details on separate sheet as to wherein and to what extent)

19. T o what extent will this allotment increase or decrease the annual expense of physical upkeep and operating
cost to the Federal Government?
(а) Increase, $

B y what agency to be borne?

(б) Decrease, $
20. Extent of participation, if any, by other agencies:

21.

Justification (a short, concise statement giving reason or necessity for the proposed allotment, including
any comments or further statement about the nature of the work. An additional sheet may be inserted
if necessary):

Allotment of funds for this project requested by:

(Department or Independent Office)

(Signature of Head of Department or Independent Office)

U. S. GOVERNMENT PRINTING OFFICE




N . E . C. Form 1— Page 3 o f 3

16— 3872

Reproduced from the Unclassified / Declassified Holdings of the National Archives

x)at©

{To he prepared in quadruplicate
and returned to the Bureau o f
the Budget)

Department N o.

N . E. C. N o.
Official
project No.

ADMINISTRATIVE EXPENSES
APPLICATIO N FOR ALLO C ATIO N OF FU N D S U N D E R E M E R G E N C Y RELIEF A P P R O P R IA T IO N ACT OF 1935

Department or Independent Office:
Bureau:
1. Description of program and character of work:
2. Total estimated administrative expenditures under program:
(a) Amount previously allotted or appropriated_____________ _________ _____ ___________________ $—..................... ........
(b) Amount of allocation requested in this application__________________ $___________________
(c) Additional amount required to com plete___________________________

$.................................... $_.............................. .

Total__________ _____________________ ______ ______________________ ____ ____________ $—

(d)

-----------------

3. Give source of funds, if any, under 2(a):

4. Estim ated division o f allocation:

Aggregate salaries

Number

Personal services:
(a) Su pervisory......................... ............... ..................................................
(b) Clerical ..................................................... ................ ........ .....................
(c) Professional and scientific -...............................................................
01
02

(d)

T o t a l........ ......... ........ ........... ....................... ..... ......................

Supplies and m aterials.................. ................................................................

05

Com m unication serv ice...............................................................................

06

Travel expenses (including local tran sp ortation )........ ..........................

07

Transportation of things (services including parcel p o s t ) .................

08

Printing and binding (including photographing, photographs and prints, and duplicating)

09

Advertising and publication of notices....................................................

10

Heat, light, power, water, and electricity ........................................ ........

11

Rents (building and equ ip m en t)...............................................................

12

Repairs and alterations .................. ..............................................................

13

Special and miscellaneous expenses...... ....................................................

30

Equipment (including vehicles)..................................................................
T o ta l...................................................................... ......................................

$

5. Justification: (An additional sheet should be used for this)
Allocation of funds requested by:

(Department or Independent Office)

(Signature of Head of Department or Independent Office)

INSTRUCTIONS
Administrative expenditures, for the purposes of this application, should include salaries of employees located in Washing­
ton or at any regional offices, salaries of investigators with headquarters at Washington or such regional offices, and general
office expenses in Washington and at the regional offices. No administrative expenses which tie in with the project at the site
are to be included. Application for allotment for such expenses must be made on N. E. C. Form 1.
U S. GOVERNMENT PRINTING OFFICE




16—3871

N. E. C

F orm 2

Reproduced from the Unclassified / Declassified Holdings of the National Archives

T H E N A T IO N A L E M E R G E N C Y C O U N C IL

WASHINGTON
OFFICE OF THE

E X E C U T IV E D IR E C T O R
C O M M E R C IA L N A T IO N A L B A N K B U IL D IN G
I4TH A N D G S T R E E T S N W .

CONTROLLING- PRINCIPLES ExTUliGIAT.SD 3Y THB PRESIDENT
TO DETERMINE THE ELIGIBILITY 0? PROJECTS UNDER TITO
WORKS RELIEF PROGRAM

“The projects shall be useful.
“Projects slie.ll be of a nature that a considerable
proportion of the money spent ' ill po into vra^es
for labor.
“Projects which promise ultimate return to the
Federal Treasury of a considerable proportion of
the costs will be sought.
“Funds allotted for each project should be actually
and promptly spent and not held over until later
years.
“In rail cases projects must be of a character to
Give employment to those on the relief rolls.
“Projects will be allocated to localities or relief
areas in relation to the number of workers on re­
lief rolls in those areas,’1
“ ..to move from the relief rolls to work on such projects
or in private employment the maxi;run number of persons in the
shortest time possible.“




Reproduced from the Unclassified / Declassified Holdings of the National Archives




PROCEDURE GOVERNING THE FILING AND ROUTING
TO THE ADVISORY COMMITTEE ON ALLOTMENTS OF
APPLICATIONS FOR ALLOTMENTS UNDER TEE
EMERGENCY RELIEF APPROPRIATION ACT OF 1935.

**********************

Prepared "by the Division of Applications and
Information of the National Emergency Council
under authority of Executive Order numher
7034, dated May 6, 1935.

Date

May 10, 1935

Approved Frank C. Walker
(Executive Director)

Reproduced from the Unclassified / Declassified Holdings of the National Archives

I
DEFINITIONS

As used herein:
(a)

The word "Act" means the Emergency Relief Appropriation

Act of 1935, approved April 8, 1935.
(h)

The word "Division" means the Division of Applications and

Information, established under Executive Order #7034, dated. May 6, 1935.
(c)

The word "Committee" means the Advisory Committee on

Allotments established by Executive Order #7034, dated May 6, 1935.
(d)

The terra "Public Works Administration" means the Federal

Emergency Administration of Public Works, established under Title II
of the National Industrial Recovery Act, approved June 16, 1933,
(e)

The term "Works Progress Administration" means the body by

that name established by Executive Order #7034, dated May 6, 1935,
(f)

The word "project" means any undertaking for which funds

may be properly alloted
(g)

under the appropriations made by the Act,

The term "federal project" means a project, exclusive of a

works relief project, hereinafter defined., the entire cost of which will
be borne by the Federal Government.
(h)

The term "non-federal project" means a project of a State,

Territory, Possession, including a subdivision or agency thereof, a muni
cipality or the District of Columbia, or a self liquidating project of
a public body thereof, which will be financed in whole or in part by a
loan and/or a grant from the Federal Government.




-1-

Reproduced from the Unclassified / Declassified Holdings of the National Archives

(i)

The term "work relief project" means a project of the

type referred to in Executive Order #7034, dated May 6, 1935, designed
to insure a maximum of employment and to he carried on hy the Works
Progress Administration.
(j)

The term "allotment application" means an application by

a department or agency of the Federal Government for an allotment of
funds for a project.
(k)

The term "pending application" means an application

heretofore filed with end pending "before the Public Works Administration
for a loan and/or a grant or allotment of funds for a project.
(l)

The term "fundamental principles" refers to the following

principles which the President recognizes in determining the eligibility
of projects:




The projects should, he useful,
Projects shall he of a nature that a considerable
proportion of the money spent will go into wages
for labor.
Projects which promise ultimate return to the Federal
Treasury of a considerable proportion of the costs
will be sought.
Funds allotted for each project should bo actually
and promptly spent and not held over until later years.
In all cases projects must be of a character to give
employment to those on the relief rolls.
Projects will be allocated to localities or relief
areas in relation to the number of workers on relief
rolls in those areas.
To move from the relief rolls to work on such projects
or in private employment the maximum number of persons
in the shortest time possible

-2—

Reproduced from the Unclassified / Declassified Holdings of the National Archives

0 j

A

n

II
FILING OF ALLOTMENT APPLICATIONS

Allotment applications may only be filed by the governmental depart­
ment or agency having principal jurisdiction of the contemplated work.
These allotment applications shall be filed with the Washington office of
the Division on prescribed forms.

Before filing any allotment application,

the comments and recommendations of any other governmental department or
agency having partial or technical jurisdiction over the project or special
knowledge with respect thereto shall be obtained.
All pending applications for federal projects shall be promptly trans­
mitted to the Division for review as to eligibility under the fundamental
principles, and shall then be returned to the originating governmental de­
partments or agencies with the Division's tentative selections.

The de­

partment or agency may then file allotment applications on N.E.C. form I for
projects tentatively selected by the Division, and also for any project as
to which the Division has not made a tentative selection, if, in the
opinion of the governmental department or agency concerned, it can be further
just if ied,
Pending applications for non-federal projects shall bo reviewed by
the Public Works Administration and allotment applications on N.E.C, form 3
shall be filed with the Division for such of the projects as the Public
Works Administration deems eligible under the fundamental principles.
Ill
ROUTING OF ALLOTMENT APPLICATIONS
Upon receipt of an allotment application the Division shall make a
notation thereof on its records, and transmit copies thereof as follows:




-3-

Reproduced from the Unclassified / Declassified Holdings of the National Archives

(a)

One copy to the Bureau of the Budget.

(h)

Two copies to the Works Progress Administration,

(except in

the case of allotment applications filed on the Works Progress Administra­
tion), one of which is to he returned with its recommendations, and, in the
case of unfavorable recommendations, with its comments.
Upon receipt of the recommendations of the Bureau of the Budget,
and recommendations (and comments, if any,) of the Works Progress Administra­
tion, such recommendations and comments shall he transmitted with the allot­
ment application to the Committee, provided, however, that if no recommenda­
tions are received from the Bureau of the Budget within three days after a
copy of such application shall have been forwarded to it, such application
may he transmitted to the Committee without such recommendation.

IV.
ADMINISTRATIVE EXPENSE.
Administrative expenses at the site 7/hich apply exclusively to a
particular project shall he included in the allotment application for such
project on N. E. C. Form 1.

All other administrative expenses, including

salaries of employees located in Washington or any regional office, salaries
of investigators with headquarters in Washington or such regional offices
and general office expenses in Washington and regional offices shall he pre­
sented in a special allotment application to the Bureau of the Budget on N.E.C.
Form 2 which will transmit its recommendations upon such application to the
Division.

A copy of such application shall also he transmitted by the Division

to the Works Progress Administration.
APPLICATIONS AND SUGGESTIONS WITH RESPECT TO CONTEMPLATED PROJECTS.
Applications, recommendations and suggestions with respect to con­
templated projects received by the Division shall he promptly referred to
the appropriate governmental department or agency.




-4-

Reproduced from the Unclassified / Declassified Holdings of the National Archives

Government departments or agencies receiving recomendations
or suggestions with respect to the initiation of federal projects shall
consider them and determine whether or not the contemplated projects
should he made the ha.sis of allotment applications.
All applications for non-federal projects shall he filed with
the state director of the Public Works Administration and all applications
for work relief projects shall he filed with the local or state administra­
tor of the Works Progress Administration.

Such applications shall he in

such form and shall he dealt with in accordance with such procedure as
may he prescribed by the Public Works Administration or hy the Works Progress
Administration, as the case may he.




- 5 -

PROCEDURE GOVERNING FILINQ AMD ROUTING OF APPLICATIONS FOR ALLOTMENTS
UNDER
THE EMERGENCY RELIEF APPROPRIATION ACT OF 1936.

SPECIAL a l l o t m e n t a p p l i c a t i o n s
"
for administrative
expenses
(Employees' salaries and general offlee expenses In Washington and Reglonml Offices; general Investigators1
salaries, etc.)

ALLOTMENT APPLICATIONS FOR
FEDERAL PROJECTS
(Projects exclusive of work relief projects, the entire ooet
of which will be borne by the
Federal Government.)

ALLOTMENT APPLICATIONS FOR
WORK RELIEF PROJECTS

ALLOTMENT APPLICATIONS FOR
NON-FEDERAL PROJECTS

(Useful projects of the type re­
ferred to In Executive Order No.
7034, designed to Insure a maximum of employment and supervised
by the Works Progress Admlnietratlon.)

(Projects of a State, Territory,
Possession, etc., or the District
of Columbia, which will be financed
In whole or In part by a loan and/or
grant from the Federal (Government.)

Prepared by Works Progress Administra­
tion on N.E.C. Pons 1; to cover proj­
ect applications approved by the Works
Progress Administration which may have
resulted from applications recommenda­
tions and suggestions submitted by
Individuals, states, counties, muni­
cipalities, Federal agencies or public
bodies; coordinated with, or based upon
local relief needs.
Allotment may be one lump sum covering
all needs for a given period.
Construction projects are coordinated
locally with P.W.A.

Copy to
x
for file.

■*»

Comments,
to be mac e within
3 da

National Emergency Council
Division of Applications
and Information
transmits

'

1 copy to
Bureau of
Budget.

ADVISORY COMMITTEE
ON ALLOTMENTS

PREPARED BY
NATIONAL EMERGENCY COUNCIL
DIVISION OF APPLICATIONS AND INFORMATION
_________________ MAY 10,1935___________




°XXX
for file.