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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 Uy'TMJuC^ ^ -L / y\yjL*^ml'~X% Tvjl yu2x>x^ j l ^ X — — ^Za^t~ ~fciz. ^ts->u ^-< l -^SLu j ^j ^ o^~ %juj GU» iv --------- L/^M \ AoL-eocc^ ^ X ' ! 0L^O yfj 4 ^ 'i j x X ji k X J L ^ C U "yfc* JbuuuJL. %Jbi~h A-4 ^ U - (Axyfe m W - rfca. 'jjL A A ^ Q A y y jf \ A j~ lJ j lu X ~ft\j»^'&Jik >X / vu C *A Jx ? C u i | U lAJl j2«-C-£>( * 'H j a J x aOn j m U ^ 6 A ^ vua Q A+yd C u M w u h \J A A A ._ 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 - 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.