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Reproduced from the Unclassified / Declassified Holdings of the National Archives March. 3, 1941 SPECIAL PROGRAM OF EMPLOYMENT COUNSELING FOR WPA WORKERS on the CORPORATE BOM) STUDY Description of the Corporate Bond Study The Corporate Bond Study is a quantitative investigation of the market and yield experience of domestic corporate bonds and of the terms of corpo rate bond financing for the first four decades of this century. The technical plans have been prepared by a research staff contributed by several public and private agencies (Board of Governors of the Federal Reserve System, Comptroller of the Currency, Federal Deposit Insurance Corporation, Federal Reserve Bank of New York, National Bureau of Economic Research, Inc., and Securities and Exchange Commission) working under the general direction of the Committee on the Corporate Bond Study of the National Bureau of Economic Research, Four private financial services (Fitch Investors Service, Moody’s Investors Service, Poor's Publishing Company, and Standard Statistics Company) have provided investment manuals and other source materials, in addition to making their technical experts available for consultation. The Study was started under a WPA grant about two years ago. As a WPA project, data on corporate bonds over the period 19 00-1939 are being assembled and organized. When the tabulations are completed the cooperating agencies will have available for analysis a large body of statistical data on the characteristics and behavior of corporate bonds which can be used in studying; (a) the behavior and loss experience of bonds according to industries, quality, maturity, and other characteristics; (b) the use of the capital market by business corporations; that is, the industrial classes of corporations using the capital market, the types of security used, the terms of contract, the purpose and possibly the net cost of borrowing; (c) the relative merits of market price, legal lists and investment agencies’ ratings as an index of bond quality; and (d) fluctuations in long-term interest rates and their relation to capital market activity. Aim of Employment Counseling Program As a special activity, one of the agencies engaged in the Corporate Bond Study, namely, the National Bureau of Economic Research,. Inc,, has undertaken a special program of employment counseling for the WPA workers on the project. Since it is planned to close the WPA project on June 30, 1941 this special program will be entirely concerned with employment counseling for about 200 WPA workers who will be released from this project between March 1 and June 30, 1941. Because of the nature of the work to which personnel provided by the WPA have been assigned on this project, special efforts have been made to secure the highest type of WPA worker. The performance of some of the men on the project as well as their previous background has been sufficiently impressive to promise future success if properly placed in regular employment* Reproduced from the Unclassified I Declassified Holdings of the National Archives - 2 - The ultimate aim of the employment counseling program is to aid qualified workers on the project in obtaining regular employment. This objective can, of course, be realized only by recommending to prospective employers those vjorisers who meet their specifications* Since the program is entirely experimental in nature, no prediction '•-an be made as to the percentage of the total working force who will receive jobs through its operation. However, it is certain that the advisory aspects of the program will be valuable to the workers# The Employment Counselor, who will be in direct charge of the program, is trained in personnel work# She will attempt to learn the needs of employers and acquaint them with the qualifications of workers* Frequent consultation with the Employment Counselor will give each VJPA worker the benefit of expert guidance in planning his own efforts to secure regular employment, Qporation of Employment Counseling Program The program will include a survey of the market demand fbr men and women having the training and experience of those employed on the Corporate Bond Study* For example, the special training facilities and other opportunities offered by the National Defense Program will be fully explored. After the coopera tion of employers has been gained, specific recommendations will be made concerning companies and industries to which individuals should make application for employ ment* The results of such applications will be carefully followed up so that the applicant may be assisted in every possible way. "How to Apply for a Job” will be one of the most important parts of the program* The experience, training and aptitudes of the WPA workers on the project will be thoroughly investigated through interviews, detailed application forms, references, and probably some tests relating both to specific skills and to general aptitudes. Through these methods it is expected not only to improve the chances for the re-employment of Corporate Bond Study 'MPA workers in private enter prise, but also to help employers in selecting workers who meet their needs* The entire program is being conducted by the National Bureau of Economic Research, Inc, The Employment Counselor, furnished by the National Bureau of Economic Research, Inc*, who-will be in immediate charge of the program, will work under the guidance of a committee which will include personnel experts as well as representatives of the Work Projects Administration and other organizations representing both the government and private industry. At the close of the program a complete report will be made covering procedures followed and results obtained. It is hoped that some of the knowledge gained may prove applicable to other WPA projects and that thus the program will make a general as well as a specific social contribution* Duration of Employment Counseling Program Under the present plan the program will be in operation for the period February 17; to August 31, 1941. This will allow the Employment Counselor a two months’ follow-up period after the Corporate Bond Study releases all WPA employees on June 30,j 1941* Reproduced from the Unclassified I Declassified Holdings of the National Archives - 3 - Supervising Staff The following is the supervisory staff representing the sponsoring agencies on the project: Winfield W* Riefler, Chairman of Committee on the Corporate Bond Study, National Bureau of Economic Research, and Professor of Economics, Institute for Advanced Study, Princeton, New Jersey 7/illiam J. Carson, Vice Chairman of Committee on the Corporate Bond Study and Executive Director of the National Bureau of Economic Research, 1819 Broadway, New York City Melvin W# Brethouwer, Director of the sponsors staff assigned to the Corporate Bond Study, 625 Madison Avenue, New York City Harold G* Fraine, Associate Director of the sponsors staff assigned to the Corporate Bond Study, 625 Madison Avenue, New York City For further infomation, write to: Miss Virginia Burdick, Employment Counselor Corporate Bond Study, 625 Madison Avenue, New York City Telephone: Eldorado 5-2673 Reproduced from the Unclassified / Declassified Holdings of the National Archives BOARD OF G O V ERN ORS OF THE FEDERAL RESERVE SYSTEM W A S H IN G T O N O FFIC E OF THE June 13, 1941. Mr. Winfield W. Eiefler, Professor of Social Sciences, Institute for Advanced Study, Princeton, New Jersey. Dear Mr. Riefler: lour telegram of June 11, 1941* advising of your acceptance of appointment by the Board, effective July 1, as a class C director of the Federal .Reserve Bank of Philadelphia for the unexpired portion of the three-year term ending December 31, 1941* has been received. I wish on behalf of the Board to welcome you again into the official family of the Federal Reserve System and express the hope that you will enjoy your duties and associations in this new capacity. If he has not already done so, Mr. Thomas B. McCabe, Chairman of the Federal Reserve Bank of Phila delphia, will communicate with you in the near future, advising you in a general way with respect to the duties of the office and the steps to be taken in connection with qualifying therefor. The other members of the Board join with me in the suggestion that whenever you are in Washington, and it is convenient for you to do so, you call at our offices for a visit. M. S. Eccles, Chairman. C H A IR M A N Reproduced from the Unclassified I Declassified Holdings of the National Archives G vw m am of s ta ts o Washington P I June £4, 1941 My dear Mr. i4 ille rt I acknowledge the re ce ip t o f your le t t e r o f June 16, 1041 transm itting a coassunic&tion signed fcy you, fa rcy W* B ld w ell, W infield R ie fle r , Eugene S ta le y , A lvin H. Hansen, A llan Sproul, and Jacob Titter. I acknowledge also the re ce ip t of s im ila r coaaunications addressed to A ssistan t S ecretaries B erle and Achesoa. In these coasnini cations I t i s recommended th at the consideration fo r a l l m aterials delivered to Great B rita in tinder tbs Lend-Lease Act be defined as use o f these ma t e r ia ls by the B r it is h in the struggle against the aggressor powers and that such use should be accepted by our <k>vernment as f u ll and adequate consideration in the meaning of the A ct, The purpose of the recommendation, i t i s understood, i s to insure that th is wav s h a ll not leave a legaoy o f intergovernnental debt that would poison in tern atio n al re la tio n s . I wish to express appreciation of your courtesy in giving the Department the b en efit of your views on th is important subject and to assure you that they are receiving Boat ca refu l consideration. S in ce re ly yours, (Signed) Mr. Fran cis P. M ille r, Council on Foreign R ela tio n s, In c ., 45 East 65th S tre e t, Sew fo rk , Sew York Suaner Welles Acting Secretary Reproduced from the Unclassified I Declassified Holdings of the National Archives C O U N C IL O N FO R E IG N RELATIO N S, I NC’ 4 5 EAST 65T H STREET N E W YORK. C IT Y J u ly 8, 1941 Professor Winfield Riefler The Institute for Advanced Study Princeton, New Jersey Dear Win: Upon my return to New York after two weeks1 absence I find this letter from Mr. Sumer Welles in reply to our communication of June 16. E v e r y o u rs , i X a j .u a J9 Francis P. Miller Administrative Secretary Reproduced from the Unclassified I Declassified Holdings of the National Archives p f c Fallow Citl7ensJ Peace is not found merely in ?»n absence of rmed hostilities. For more than six years Hitler ruled Germany and expanded it* boundaries without firing a shot* but who would dare to call those six ter:or~strlcken years, years of peace? now a full decade since Jnpan invaded Manchuria and embarked on the c n Chin,**.. est of Except fer the Panay incident, in all those years there has be n km of arms between this country and Japan. wo would hardly cite It is clash our relations with Jspsn during this aeriod as an example of the meaning of peace. Peace, in short, is a condition that involve* far nore than the absence of war. It la well to recall this stmale truth when the subject for our consideration is the Peace Aims of America, for there has been little real peace in the world since the outbreak of the first World War. It is particularly important to be aware of this truth vrhen we concentrate specifically upon economic and financial ■■’ attors. l*or no area of fyrar-n activity nore greatly affected by the presence or absence «f peace. fhere is a second truth about peace as it existed before l^lH that, has a vital significance for tha problem of economic peace aims. It was that war did not neceserrily rupture tho international fabric of peace. Despite all its wars, the century from Waterloo to the Marne was, in a very ftmdamental senso, a century characterised by tho condition of -neace. aspectr’tion that paace would continue. Common people everywhere lived in an *he economy of the world, including its financial arrangements, were-built upon that expectation. the demoral1station of war tended to be localized. During th^t century, 3ven the existence of a war as devastating *>« that which wracked this country from 186l to IS65 had llritrd external renercussions. Such repercussions as did occur were not -corrsrrrA'e in tude -to those that followed Munich, when not <s shot was fired. Reproduced from the Unclassified I Declassified Holdings of the National Archives 2 . What is the explanation of this paradox? Is there to "be found in the contrast of these two situations a clue to the nature of the peace for which this country ia groping? What was there in the nineteenth century that permitted r>sace to sur vive the impact of war, -nd vhnt hare we lost in this twentieth century th-t has denied us peace, even in tho absence of war? Specifically, in the area of economics nnd finance, what were the sources of strength of the nineteenth century? '-'hat has happened during the course of the last generation to undermine that strength? must we do, if 4Tictory is ours, to reconstitute an economy of ijjteace? what The no are the fundamental ouesti^ns that we as Americans m e t ask ourselves today. In terms of economic organisation the nineteenth century was great because it accept'd inplicitly the economic unity of the world. Its economic Institutions, therefore, In spite of glaring faults, were in accord with the genius of ths times. The great foult of the aconoml-e- twentieth century, by contrast, ha? lain in its tendency to sol It apart. In the economic sphere, the genius of our times lies clearly in the applica tion of science and invention to the satisfaction of human wants. This application has express d itself in the industrial revolution, in the advent of the machine, in the creation of means of rapid, almost instantaneous, coromunicntion, and in the annihilation of distance. It is in these factors, predominantly econoaic, that our culture today differs most strikingly from the culture of the ancient world. It is in these respects that the civilization that has developed around the shores of the north Atlantic during the last one hundred and fifty years is unique. In our era alone, for the first time in all the Ion/' history of the human race, has it been reasonable for man to contemplate the possibility of the abolition of poverty. But the application of science and invention to the satisfaction of human which wants has its own requirement•/ $e cannot disregard. Just as the human body needs oxygen, if it is to exist, our new machine technology needs scope within which to Reproduced from the Unclassified / Declassified Holdings of the National Archives 3. operate. The subdivision, and specialization of labor implicit in the industrial revolution require larger factories; the substitution of piwog mid the machine for human labor requirealarger markets? the availability of foods in sufficient variety to ■pemit a balanced diet requires varied sources of supply. , In fact, there is a siso requirement in practically all of the techniques and discoveries on which we base our plnns for the improvement of the standards of human living. It wrs the rr^at fortune of the nineteenth century that it wan' dominated by nn economic -*hilosophy which was attuned to those requirements — the philosophy of economic liberalism, of free economic activity with as little as possible in terference by the state. Hence we enjoyed, in effect, the advantages of a world wide organisation of society ia the area ef e conom ise >aa& ft o aaeei| wk lie Rational ism 4ceialne4--»H»e®ial'LA»4 politico! -phoneme non. It Is true that there were tariff bnrriers, but they were unimportant compared to those to which we have since become accustomed. National impediments to the f ree movement of capital and also to in ternational migration were minor compared to the situation in recent years. Many of the most effective weapons in the nodern arsenal of economic nationalism,.such as rigid quota restrict inns on international trade, exchange controls, blocked currencies, and bilateral, clearing Agreements, vere^unknown. In can economic sense the world was a unit. It was under these conditions of economic unity and economic poace that our modern world evolved. Across national geographical boundaries the new industrial techniques spread with anasing rapidity. From the shorts of Western % r o p e there flowed out to all the world n swelling stream of population, capital, skills, that developed new continents. rrrkets were opened up. Hew sources of raw materini5, new industries and new Whole regions specialized in their production to feed -the«« nftw..warl-A-iiy.arkot», and depended for the articles of their consumption ear .J;ho--3»^Auctrg,~o, f~“the-'--we»rld'--~7tadeT 'rTT«rk&t«. For the first Reproduced from the Unclassified I Declassified Holdings of the National Archives k. time in the history of the human race, goods became widely abundant. living increased over vide areas of the globe. water supplies and sewage protection. Standards of Great cities arose, with sanitary The Incidence of death and disease declined. Within a hundred years the population world was doubled. Uo country benefitted more from this development than the United States. Our wealth, ourppopulation, and our power today are a product of the world economic development of the nineteenth century. The present pattern of our country>***lr *Jts great cities and its preponderance of population and Industries along the Eastern seaboarc^W5till xeflect^this development, the fact that^the stand a living witness to thftt. nnr 1m? n>* »4 JLb*~’2M&g age ..thli Aevel0Tm aw4i^ ^ftA>.4h>-x aiiwatft fraMitdwlan jfefllltltwl biwaflHftgyr Hew York, Boston, Philadelphia, Baltimore are gr^at because the economic activities of the United States have been part and parcel of a world economic system. flq m r t nnrt From I91U on, 'vJV . .... w^yy»AH aAhu-O — mankind has become painfully aware that a political boundary' s f»ormently al-se-This economic unity was shattered by the first VorljdLW*,r. an economic boundary. • Progressively, from I91U on, our economic world, with all its regional specialization in skills, population, and productive activities, has tended to fractionalize, to break up into blocks between which large and growing impediments have existed to the flow of trade, to the movement of populations, -a-c-<syu'y-vW"C to the process of investment. Inevitably, under these circumstances,disintegration /TN 1 « -* '* ■ ' 'I t k^ has been characteristic of the timesf aad gt»ryH\ti^n -nd hoptyfreggness1haw* tended ‘ ^liijii \^ VW-- ) Ttr Jithfrjy m l '^ULA'-'vA ^ * \ It is this fact of disintegration to which Hitler and ' Goebbels refer when they speak of the chaos of the democracies. It is to the obvious need for economic reintegration that they appeal when they offer to con struct a new order for Europe. Reproduced from the Unclassified / Declassified Holdings of the National Archives 5 Thor#.'is genuine a-openl in this offer of theirs. Let us Americans wake no mistake on .that score. The economy of the world must have unity. It is far too highly specialized to continue to exist on a block basis without incredible problems of industrial readjustment, ■problems coranarable with, but ouch greater in m;?nitude than those with which we have been wrestling in tha case of cotton surpluses in the south. Let ua make no mistake, also, with respect to the place aad function of democracy in this process. Readjustment of the world’s economy to a block basis puts Incalculable strains on the democratio process. Whole regions of specialized skills do. not shift their -production or their population easily under tho normal incentives of a free economy. The strong a m of tha State is almost essential to effect such shifts, and in tho erercise of that strength, it is very difficult for Anon# our Peace Aims, consequently, we oust place first the reconstruction of a world economy. This does not mean that vre must seek to restore the economy of the nineteenth century, with all its glaring faults. ,.'<*e must, hovrovar, seek to work out our economic problems and endeavor to effectuate our social ideals in terms of economic policies and of an economic organisation that transcends political boundaries, tfe cannot allow economic nationalism to continue unchecked. This requirement must be placed first aaong our Peace A ins, not only because a < > world economy is our most pressing aaanowi* need, and is in accord with the technical requirements of our times, "but also, because it is fundamental to the attain ment of our <?i»m«erntlo social and our political Ideals. We must realise that con quest by Hitler is not the only threat to a democratic life. Given ^jHLctory, vre must still reverse the conditions that have produced disintegration, if our social ond cultural life, as we have known it, is to survive. Reproduced from the Unclassified / Declassified Holdings of the National Archives 6. Second, we must avoid the weaknesses and faults of the 19th permitted it to give way under the strain of the first V.'orld *>’ar? i. faults? century uhidh ftha.t were these Why was it that an economic system funf’o mentally in accord with basic scientific tendencies and prinary economic needs failed to *er**w 0■ ***■ •>*'!!WAih“ *I****# *• v^AwiWi*#?* N-*'4there are two great charges to &e snaue ngainst the eoonomic organisation of tv affasts..taiartl■x e m a e tr ct^on fV *. ^ o l l e w ^ t h e first World War? the nineteenth century, the first was the continued axlstenc® of poverty in the aidst of expanding wealth, the second was the T-revalence of economic insecurity. It <-'as a century of great oxoansion for society, of groat opportunity for the in dividual, of rising standards of living for the mass of the people, hut, coexistent with these gains, thore continued throughout th e century 4b.athe last skilled and least fortunnte n U 'atnn"fff '-■.*c4«t-y-tI-o fact of poverty and actual hunger. Periodi cally, also, over rauch larger areas, the advent of degression in tho ebb of the business cycle "brought widespread uneTmloyment and distress. eliminate these faults, or to niti Lack of provision to •*\ ■5 te r -*their coneaauencee, raust he charged to the economic organization of the nineteenth century. Adequate provision to accomplish these ends must rank high among the Peace Aims to w h i c h we dedicate ourselves. These faults were already widely recognised in the nineteenth century and )y steps to deal with them had been instigated in rsany countries •mac the first ’vorld War broke out. What was not realised was the insecurity of a world economy politically organized into a series of separate nation states, each answerable for its actions only to itself. tKt- Many saw the dangers of war in « form of military ag- gression betveen these states. Kurasrous atte-rots wms mad© to mitigate these dan gers, as for axasrple through arbitration treaties, and thorough the establishment of the Hague Court, There wore many, also, who raw the explosive dangers to peace inherent in political minorities, and, in consequence, brought great pressure on the noace makers at Versailles to draw national boundaries according to the Reproduced from the Unclassified I Declassified Holdings of the National Archives ■principles of self-dat©rainat ion. There were few, however, who appreciated the economic throat implicit in tha uncoordinated action of a multitude of sovereign states, should these states ever adopt the prrctice of extensive intervention ia economic affairs. It mt? this almost universal failure to re cognise the vulnerabilit of the world's economy that accounts for tho neglect of ocononlo coniiderations in the Councils of Yrtraeilles. It was thie ignorance of the basis of our general well- beinr t.h*»t account a also for the minor role nasi^ed to economic problems in the early conception of the League of Nations. After the "arrowing experience of the first ’A'orld Wnr, there was widespread recognition of the necessity of pone type of limitation, on the right of sovereign nations to wage ag^reeaive war. There was almost no appro elation, however, of the necessity of co^arable limitations on national sovereignty in the realm of economic activity. It was .-.crumd that each country was free tt> separate itself fro® the rest of the world economically ‘ , r~ s that this freedom in itself carried little threat to world ne«ce as long as there was no military egression. We are all of us today, in a sense, victims of th© blindness of that time. The first V©rid War was itself, of necessity, the occasion for widespread accep* tance on the part of flovemnents of responsibility for the conduct of their in ternal economic affairs* It could not have been otherwise, for only through the exercise of such responsibility could the armies and industries of the various ■oovers he fully mobilised for the prosecution of the war. In the post-war period, governments a^.in everywhere were forced to assume responsibility for readjustment and reconstruction. It was government, finally, that was called upon everywhere to create sojne sort of economic order out of the chaos of 193'** Throughout EOst of the last two docadea, in fact, government* have been forced to active interven tion in economic affairs. They could follow no other coarse, for ^overnraent is the Reproduced from the Unclassified I Declassified Holdings of the National Archives only weans we possess "bjr which we can consciously affect or mould our collective economic life. It is through government alone that we carj in'stlttit-e^ ^i^'dwproved ,3vc',r,,v,. omic insecurity. ‘ WA*. It is through govorm nt ^,.<s-,v. V , < y - , f t M ■ > "if " alone that, in an age of economic tils- integration, we can give some measure of succour and support to our internal oconony while it roadjusts to the realities of that disintegration. In truth, the circumstances of which we are the victims are not found in the f?«ot that government has ;come to intervene in economic life, but that this Inter vention ha.f> been easecut ed simultaneous! y t>y a multitude of separate sovereign •. nation states without coordination of any kind. JSaoh state has looked primarily to its internal concerns, each state ha? been responsive primarily to internal ■political •nreseuros, no state has been able to count on any given course of action on tha part of other governments. As this process has„*»e<MWS&ad, it has corts neor to destroying the organic unity of our economic world. In a world in which the ;?ovemraent,s of separate rtates are forced to intervene in economic life, there Has been no political machinery with authority or power to protact the ^enornl •-.■sifare of tho world economy considered as a whole. •o , i ' C o ? « p le t« s ..-o u t - r; , , \ . '■■s V w '‘v ' v ■' j i\, V 1 v u sumrwry ,of'" / e w e r l e a n 'Pe«ce--Aim*' in-the area of -acono-mics’a a d V® have, in the arp*1! lest Ion of science and invention to the satisfaction of human wants, the Means to a mors abundant life. It is not Utopian to press forward to the abolition of abject poverty or to seeV to eliminate economic insecurity such as we have experienced in recent years. To make durable progress toward these hi^h ^oals, however, we must work with an economy that is in tune with the techniques on which w« count for their accompliehment. fhat means that we must Reproduced from the Unclassified / Declassified Holdings of the National Archives 9* reconstitute an organic world economy, we mast restrain political barrier* to economic growth, and we aust forge international instruments of government that are capable of directing and guiding the new world economy for the common good. More over, we must work for the8a end* in a spirit and through in '-titutw* that preserve the spirit *ntt equality and that afford a maximum of opportunity and freedom for the individual. We have examined the world economy^ coordinated through a superrace, offered by Hitler. We want none of it. What is necessary to accomplice these aim*? The key to this question lies primarily here in America, At the end of thie war, provided Hitler Is defeated, we will have a great opportunity to recreate a world economic environment attuned to our economic resources, our Political temperament and our social ideals. We now know we have the power, if we choose to expert it to the full, to insure the defeat of Hitler. Bo we have the insight, the determination and the will to win the peace? The opportunity will be ours, and the responsibility ours, almost exclusively, because at the end of this war we alone of all the powers will have ths resources, the foodstuffs, the raw materials, and the capital essential for reconstruction. We will, in consequence, detemine the nature of that reconstruc tion. Difficult times lie ahead; it is not possible to mobilize for a war of this Keproduced from the Unclassified I Declassified Holdings of the National Archives 9- reconstitute an organic world economy, we must restrain political barriers to economic growth, and we must forge international instruments of government that are capable of directing and ^uidinfj the new world economy for the common good. over, vre nust work for these ends in a spirit and through in-titutfew that Kore- p re se rv e the spirit -nrrf equality and that afford a maximum of opportunity and freedom for the individual. V© have examined the world economy coordinated through a super- rr.ee, offered by Hitler. We want none of it. What is necessary to accomplish thes© aims? primarily here in America. The key to this question lies At the end of this war, provided Hitler ia defeated, we will hove a great opportunity to recreate a world economic environnent attuned to our economic resource??, our political tenperament and our social ideals. We now -<nov v-re have the power, if we choose to expert it to the full, to insure the defeat of Hitler. tho peace? Do vre have the insight, the detemin- tion and the will to win The opportunity will be ours, and the responsibility ours, almost exclusively, because at the end of this war we alone of all the powers will have the resources, the foodstuffs, the raw materials, and the capital essential for reconstruction. tion. We will, in consequence, deter -ine the nature of that reconstruc Difficult tines lie ahead; it is not possible to mobilize for a war of this Reproduced from the Unclassified / Declassified Holdings of the National Archives 10 . magnitude and subsequently to demobilise without &reat readjustment. They need not, however, he disastrous times. They can, in fact, be the occasion for a new rebirth on a much wider scale of the living ways for which America has always stood as a -nromiae in »en*s minds. To effectuate that promisees and to embofiy it creatively in Urine institutions, ^oweyer>v. will require on our part wisdom, ^enoroslty, dedication, and deep concern for human welfare, the welfare of others as well as of ourselvee* Reproduced from the Unclassified / Declassified Holdings of the National Archives National Bureau of Economic Research, Inc. Employment Counseling Program Corporate Bond Study, 625 Madison Avenue, New York, N.Y. Report of Virginia Burdick for the period June 17 to September 16, 1941 Since the last report made to members of the Advisory Committee, the Employment’Counseling Program has been concentrating on three aspects of the WPA white-collar workers’ employment problem - physical rehabilita tion; psychiatric, vocational and personal counseling, and, finally, inter views with prospective employers who have expressed an interest in their problem. Many significant facts have been brought out as a result of these acitivities. Perhaps the most striking of these is the relation between em ployability as it is defined by private industry and the general health of the 7/PA worker. In our analysis of 175 Bond Study WPA workers made on May 15th, we classified 51 as unplaceable for various reasons. Thirty-one of these, or 18% of the total group of 175, were considered unplaceable because of health conditions, such as poor teeth, mental disorders, alcoholism, phy sical handicaps and generally poor physical condition. This analysis, which was made by the interviewer on the basis of information given ty the worker or his superiors, without the benefit of factual medical evidence, led us immediately to the conclusion that a physical examination of workers should be our next step. Unfortunately we were handicapped in instituting such an examination by the fact that we could not make it compulsory, and for bud getary reasons we had to ask the individual workers to pay 50<£ of the cost. As a result only 49 of the workers had a physical examination.1/ In many cases those who did not have the examination omitted it because they had been ill during recent years and were under the regular care of a private physi cian or clinic. For research-purposes therefore, our data is very incomplete. However, even in the small and probably above average group, as far as physical disability is concerned, 47^ needed follow up medical treatment (65% of these needed advice as to the most nutritious diet) and 29% needed dentures. In view of the fact that most corporations and all branches of the Civil Service are requiring prospective eraployees to pass physical ex aminations of increasing severity, this situation is particularly serious• We may, in fact, safely conclude that physical rehabilitation, in the.largest sense of the term, must be one of the most important phases of any WPA employ ment program. This point was brought home to us more forcibly than ever when one of our best men, who had not taken our physical examination, was offered a position by the Federal Reserve Bank of New York. He failed.to pass the bank's physical examination due to a hernia condition which hs had never cor rected because it did not bother him. He went into a hospital instead of into a job. In connection with physical rehabilitation, it is interesting to note that 42 workers from the Bond Study are now using the services of 1/ See attached sheets for detailed information on these medical, examinations. Reproduced from the Unclassified I Declassified Holdings of the National Archives -2 - either a dental clinic or of the private dentist who has been cooperating with us 1yj offering to meet clinic rates for Bond Study workers. Of course, the workers pay for these services out of their WPA salaries. This experience leads us to believe that if WPA workers were aw:.re of the low cost of dental facilities available in the City of New York they would be much more likely to give their teeth adequate care. The counseling aspects of the program have brought out one point quite clearly. Since the WPA administrative machinery automatically requires so many interviews, the natural tendency of a WPA worker is to be suspicious of one more interview. As an illustration of this initial negative attitude, several men on the Bond Study have recently told us that when we first started our program they planned to tell us as little as they could. This reluctance of the WPA worker to discuss his difficulties must be overcome before it is possible to be of any assistance to him. It is only overcome when the worker becomes convinced that the interviewer is sincerely trying to help him and. cannot do so unless he is willing to furnish full information about himself. Usually it takes several interviews before the WPA worker reaches this con clusion and loses his resistance to the interviewer. Then he becomes very friendly and is able to discuss his problem fully and freely. As an example, the last few men we have placed in private employment have come beck to tell us that there were other jobs open in the company where we placed them. It is probably true that any successful employment program with 7fPA workers must be based on frequent individual contact in order to attain such a basis of cooperation. This cooperative relationship is fundamental to effective guidance and placement. In this connection it is interesting to observe that three WPA Bond Study workers have agreed to consult a psychiatrist and are regularly doing so. Many other workers have asked for information concerning training courses available in the city. In fact the TOPA Administration set up a special commercial retraining course for the girls employed on the Bond Study. Several workers are interested in intensive vocational guidance which they are receiving at the YMCA. As far as contacting prospective employers is concerned, approx imately 66 2/ have been interviewed and asked to cooperate in our program. Most of the persons interviewed 7/ere the personnel managers of large corpor ations. With very few exceptions they have expressed great interest not only in our particular problem, but also in the general problem of finding employ ment for those now on WPA. On tha basis of our experience there can be little question of the social responsibility felt by industry in relation to the unemployment problem. Several facts, most of which are already known to those in the employment field, were brought out ty these interviews: 2/ See attached sheet for list. Reproduced from the Unclassified I Declassified Holdings of the National Archives -3 - 1. New York City has not as yet experienced any shortage of white-collar workers except, possibly, stenographers and typists, and certain types of specialized machine operators. 2. Most corporations do not hire either men or women over 45 years 3/ of age for permanent jobs unless these per sons are specialists. 3. Most corporations expect prospective employees to pass a fairly strict physical examination. 4. Most corporations follow the policy of promotion from within so that they do not in general hire from the outside for the lowest ranking jobs which require young people who are unskilled. 5. Some corporations have had unsatisfactory results from hiring former WPA workers, and while they are not pre judiced against an individual WPA worker, they believe that in general the quality of the workers on WPA does not measure up to that of workers e.mployed in private industry. 6. Almost all companies are willing to give "courtesy inter views” to a few well-recommended WPA workers who seem to qualify for positions which may open up in the future. They believe that such interviews may serve to improve the worker's morale and interviewing technique and possibly may recruit some valuable personnel for the company. On the basis of recent experience with Bond Study workers it seems quite apparent that such interviews do improve morale. The very fact that the personnel executive of a private company will see them even though it is known that they are on a WPA project is very important in itself. Several workers have stressed the fact that they were well received and given advice as to the best approach to their problem. As a result there has been a noticeable improvement in their appearance and attitude. In every case the procedure followed with employers was as follows: The employer outlined expected personnel needs. There was a dis cussion of the workers on the Bend Study who might fill these requirements. Arrangements were made for interviews for a few people - usually less than six. These workers were referred, allowed tc fill out corporation applica tions and given a detailed interview. Between Aug. 18 and Sept. 12, 45 re ferrals have been made to corporations. Although it is too early to give pl acement figures, since prior to Sept. first the number of referrals was negligi ble, it is interesting to note that six persons have already been placed in 5/ In the analysis made on May 15, 1941, 69 of the men and 5 of the women participating in the Employment Counseling Program were over 45 years of age. Reproduced from the Unclassified I Declassified Holdings of the National Archives -4- private employment. Two others were offered permanent jobs ’out could not pass the required physical examination. The placements are as follows: Company Name Job Salary The Ford Instrument Go. Kielly-Muller Inc. The National City Bank The National City Ban The N.I. Central R.R. Union Carbide & Carbon Beasley, G. Garofallou, D. Brovm, A . Thompson, D. Shaw, R. Rose, E. Watchman Draftsman Auditing Clerk Check Sorter Statistical Clerk Stenographer (temporary) $.55 per hour 5?20 per week $1500 per year $1440 per year &135 per month |>20 per week During the next few weeks the placement drive will be intensive We hope that we shall be able to find private employment for the majority of our "most placeable workers1'. Since many of cur best workers, in terms of the needs of this project, are over 45 years of age, relatively few will pro bably be placed. Your cooperation and advice is earnestly sought. Whether or not our efforts will be successful may depend upon it. The detailed re port which will be submitted to the next meeting of the Committee will tell the final stcry • Reproduced from the Unclassified I Declassified Holdings of the National Archives ECONOMIC DEFENSE BOARD WASHINGTON. D. G OFFICE OF THE EXECUTIVE DIRECTOR October 1+, 194-1 Mr. Yfinfield Riefler Princeton University Princeton, New Jersey Dear Riefler: I appreciate your two letters of September 30 and I shall go over the resume of your program at my first opportunity which I hope will be this weekend. It will be interesting to meet Mr. WeidJ^han later on but since he does not meet the more specific needs of the moment I think we had better put it off for awhile. I am enclosing your appointment notice as consultant which entitles you to |10 perdiem plus travel and $5 subsistence while in travel status. When you come down we will want you to fill out some necessary forms in order to take care of the usual "red-tape" requirements. We have an office and secretary avail able for you and any mail addressed to you here will be promptly forwarded to you or handled for you by your secretary. With all good wishes, Sincerely y ours, f '■ Executive Director. Enclosure Reproduced from the Unclassified / Declassified Holdings of the National Archives ECONOMIC DEFENSE BOARD S. 41-7 L. 3 WASHINGTON, D. C. OFFICE OF THE EXECUTIVE DIRECTOR September 26, 194-1 Mr. Winfield Riefler Office of the Executive Director Dear Mr. Riefler: You are hereby notified of your Excepted by Law appoint ment to the position of Consultant at $10.00 per diem, when actually employed, with the Economic Defense Board, effective October 1, 1941* Your appointment is subject to a favorable report on the character investigation being made by the United States Civil Service Commission. The tenure of your appointment is for the duration of the emergency and is excepted by law. It does not, however, confer upon you classified Civil Service status. You are required to take the oath of office immediately. By order of the Chairman: Respectf”'1'1" Executive Director Headquarters: Princeton, New Jersey Authority: Public Law #28, 77th Congress Reproduced from the Unclassified I Declassified Holdings of the National Archives 270S-A KDB-369 ECONOMIC DEFENSE BOARD W A SH IN G TO N October 1, 1941 No. 4 Mr. Winfield Riefler, Consultant, Economic Defense Board, Princeton, New Jersey. You are hereby authorized to travel, as indicated below, the expense of travel to be paid from the appropriation: 90-1120006 (01) Emergency Fund for the President, National Defense (Allotment to Economic Defense Board) 1942. From Princeton, New Jersey To Washington, D. C. and return as frequently as may be necessary in the performance of your duties* For the purpose of official business of this Board. You will be allowed #5.00 per diem in lieu of subsistence and travel expenses. Reference to the number of this travel authorization must appear in your expense vouchers. This authorization shall be effective to March 31, 1942. 's s m m Reproduced from the Unclassified / Declassified Holdings of the National Archives T H E FO R EIG N SERVICE OF THE U N ITED STATES OF A M E R IC A E.O .U./ A M ERICA N EM BASSY 40, B e r k e l e y S q u a r e , L o n d o n , W.1. TELEPHONE TO* GROSVENOR 4 9 6 1 . Th© Friends and Intimate Enemies of EOU. lv EOU is about to die, as it has lived, in a fashion contrary to all the accepted laws of biology. The organism will perish by continuous migration of its individual cells beginning September 1945, after nearly three years of vigorous and varied life. 2* Brief but undignified ceremonies in anticipation of this event will'be held on Monday, 3 September, at 41 Ovington Square, S*W.3. Refreshments will be served from 6 to 8 PM. 3# You are cordially invited to participate in these ceremonies, bringing along any assistance, animate or Reproduced from the Unclassified / Declassified Holdings of the National Archives TIME TIME THE W EEKLY & LIFE BUILDING ROCKEFELLER CENTER NEW YORK S 'E W S X A O A Z I N G E D IT O R IA L O F F IC E S November 19, 1941 Dear Professor Eieflert Yes, the footnote to our references to the International Labor Office was rather irrelevant — but interesting — and therefore the information was footnoted* Unfortunately limitations of space made lt Impossible for us to cover the sessions of the International Labor Office, and the tragic career or the League of Rations, as ftilly as we should have likad. But the point of the story — that if the task outlined by the President is to be carried out it Blast enlist the energies of the entire country — seemed adequately made. Wheat growing In Geneva, and the League Office quietly continuing in Princeton, seemed to suggest w h a t had happened to another magnificent idea when the country had not been united behind it* We are quite sure that TIME'a readers will interpret the story and Its footnote properly* She idea behind the League of Nations was magnificent, of course, and TIME) would be the last to disparage it. To the International Labor Office we wish much success, and we appreciate whatever it has accomplished* Nevertheless we do feel that our description of the atmosphere prevalllig at its recent sessions was accurate and therefore appropriate* All the same, please accept our thanfeB for your letter addressed to Nr* Luce. Tour remarks are being brought to the attention of TIMt's National Affairs Editor. I know he will understand the spirit in which they were made and regret any misunderstanding TIMB's references may have caused* Cordially yours Ann Elgar Tor the Editors Professor Winfield W« Riefler The institute for Advanced Study “ n, Hew Jersey Reproduced from the Unclassified I Declassified Holdings of the National Archives 'ey — - Y November 13, 1941 Mrt Henry R. Luce, Editor Time Magazine New York City Bear Kr, Luce* I am greatly puzzled by the policy which is reflected In the footnote reference to the League of Nations on the first.page of this w eek 's Time.' Strictly construed, it is, of course, irrelevant. The sowing of wheat on the grounds of the League Byll&lng in Geneva reflects the blockade of Europe an<? the shortage of Wheat in Switzerland. It tells nothing of the activity or inactivity ,of the League as such. The alleged fact that certain townspeople of Princeton, Kew Jersey are unaware of the local activities of the Economic and financial Section of the League appears similarly irrele vant. X imagine that the proportion of the townspeople of Geneva who were unaware of the presence the,_e of the same Economic and Financial Section was very much larger, even when the current activities of that section were most widely acclaimed. #ore broadly conetrued, the footnote also appears irrele vant. The purport of the article to which it Is attached 1b to question the advisability of the publicity surrounding the meeting of the International Labour Office. If this position Is correctly taken, what is the relevance of a footnote isk plying futility to that section of the League which has chosen to bureue its *?ork quietly at Princeton without publicity? On the broadest possible construction, the footnote stljLl appears irrelevant* Certainly Time is not a publica tion that has been unaware of the world"crisis. Its editorial policies have not been shaped to discredit successful inter** national accomplishment nor have they been characterized by Reproduced from the Unclassified / Declassified Holdings of the National Archives Mr, Henry R. Luce November 13, 1941 an emotional bias against the recruitment of technical per sonnel to aid in the solution of political, social, and* economic problems. In fact, Tine has always been charac terized by the opposite point"ofview. I have personally had as good an opportunity as anyone to observe the technical work of the Economic and Financial Section of the League, both in Geneva and at Princeton. You are, of course, aware of Its contribution before the outbreak of World War II, a*, for example, in the reconstruction of Austria and also of other Eastern European countries, In the field of nutrition, and in the current analysis of economic problems and the current compilation and publication of es sential economic and financial data. T can assure you that Its work since its arrival in this country has been equally solid. Its two publications — Europe’s Trade and The World ■Con on 1c Survey, 1959- 41 — as well as" Its' latest r ev'isl"oh of ’ iTaberler's Prosperity anti depression are all very real contributions." Its' o'iVu ^ cn'r'rent Vct.lvit^, namely the assem bling and analyzing of data that ’dll be needed in meeting the problems of post-war reconstruction, is not only funda mental, it represents a contribution for which this expert technical staff possesses unique qualifications. I hope you will understand the spirit in which this letter is 'written. It Is not for publication. I am genuinely at a loss' to understand the motivation back of the reference in this creek’s Time. Very sincerely yours, Winfield W. Riefler
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