Full text of Industrial Development Activities of the Federal Reserve Banks

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RESEARCH LIBRARY  »  JUL 26 1974 fEOEKAL rtESEWVE BANK OF ATLANTA  INDUSTRIAL DEVELOPMENT ACTIVITIES  »  OP THE  FEDERAL RESERVE RANKS  IG-  .613 \~7FGLI   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Federal Reserve Bank of Atlanta  Jane 195^  INDUSTRIAL DEVELOPMENT ACTIVITIES OF FEDERAL RESERVE BANKS  I. Does your bank have a definite policy concerning the role your Research Department should play in the industrial development of your District? If so, who defined it -- the Board of Directors? the management? the Research staff? Please outline this policy.  II.  In relation to the industrial development of your District, what does your Bank do in regard to the following:  (Please indicate and describe fully activities of the type mentioned engaged in by your Bank and the policy justification.)  A.  Provision of Statistics 1.  Special tabulations of regular statistical data in form differing from that ordinarily published. At request of:  at  Member banks  b. Reporting firms  c*  Other private firms and associations  2. Inauguration of new statistical series serving primarily interests of specialized groups of business.  3, Enlargement of current reporting series to provide local data not essential for Bank's own use«  4. Collection by own staff of other primary data (special surveys) at request of:   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  a. Member banks  3474 9  Page 2 b. Private firms and associations  5. Assembling of secondary information from published Census reports and other published sources at request of:  a.  Member banks  b,  Private firms and associations  6. Purchase of special tabulations and compilations of statistics from outside sources (firms, Census, universities) for use in industrial development by: a.  Member banks  b,  Private firms and associations  c< General distribution  7, At own initiative publishing brochures containing largely compila­ tions of secondary statistical material.  8, Subsidizing collection or working up of statistics for analysis and publication by another institution or association.  3,  Provision of Analytical Services 1,   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Monthly Review articles by own staff analyzing potentials in a particular industry or locality or dealing with community industrial development techniques,*  Page 3  w  2, Monthly Review articles on the same topics by outside personnel,  3, Preparation by own staff of industry or locality analysis for:  a, Member banks  b, Private firms or associations  c, General distribution at own initiative  4. Sponsorship or assistance to industrial and developmental clinics,  P  5, Loan of personnel for industrial development purposes to:  a. Member banks  b. Private firms  c. Regional associations  d. National associations  6, Purchase of specific industrial and/or market analysis from:  a. Universities  »  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  b. Consulting firms, experts, etc.  Page 4  I  c. Other associations  7.  C,  Sponsorship or partial sponsorship of more general economic studies bearing upon industrial development such as tax systems, etc. Studies to be done by (1) universities, (2) consulting firms, (3) nonprofit associations.  General Questions 1.  Does your bank confine its industrial development activities to those arising from specific requests from its directors, member banks, regional, local, and industrial associations, or has it adopted policy of actively seeking industrial development by searching for all opportunities? Please comment on basis for policy.  2. If actively seeking out opportunities, what means are used to bring them to attention of interested parties? Are initial con­ tacts made by Bank or through cooperating associations? How are requests for specific contacts handled?  3. In honoring requests for information and aid, what distinction do you make in regard to requests from:   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  a.  Directors  b.  Member banks  c.  Reporting firms  d. Nonmember banks and competing financial institutions  Page 5  e. Other private individuals and business firms  f.  Local associations, chambers of commerce, etc.  g. Industrial associations  h, Bankers associations  i.  Employers associations  4, Is any attempt made to recover expenses connected with industrial development activities? How do you fix charges for special publications ?  5, Is any entertainment expense used for industrial development purposes ?  6, At the present time, how many professional employees are engaged in industrial development work? (Indicate answer in tenths, as 1.5)  How many clerical and statistical employees?  7, Please list specific projects of an industrial development nature performed in the year ended June 30, 1953, Indicate the cost of each project as nearly as can be estimated (including printing costs where applicable).  Committee on Research and Statistics Conference of Presidents  November 16, 1953 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  I   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Conference of Presidents Committee on Research and Statistics  Summary of the INDUSTRIAL DEVELOPMENT ACTIVITIES OF FEDERAL RESERVE BANKS  Reports received from Reserve Banks on policies toward and extent of industrial development activities in which they are engaged indicate considerable diversity  both in attitudes toward this type of activity and in actual participation and im­  plementation of policies adopted.  The reports, requested by the Research  Committee of the Conference of Presidents, apparently indicate, however, that in the majority of banks the question of participation in local industrial develop­ ment work has arisen and that a conscious policy of some sort has been adopted  »  or evolved as a result.  Purposely no attempt was made in the questionnaire to define "industrial development activities" as it was felt that no single definition could cover the general area of investigation assigned to the committee.  The lack of a precise  definition of "industrial development" meant that some banks excluded activities  of a promotional character in the agricultural field while other banks considered their own industrial development work to be an inseparable part of a wider program of regional research and development which included agricultural  programs.  Insofar as possible, however, this summary disregards activities  exclusively concerned with agriculture, commercial bank operation, and retail trade when the motive for such activities appears to be largely unconnected with industrial promotion work.  I  In a similar manner, no attempt was made to  state the period of time in which activities of this kind mentioned in the question­  naire should be enumerated.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  It was recognized that Federal Reserve BanL  -2-  policies and the demands for their services have not remained static.  As nearly  as possible, the tabulations reflect policy and actions in the present and recent  past. The summary below represents an attempt to standardize the reports of the twelve Federal Reserve Banks so that a uniform evaluation of Reserve Bank  activity in industrial development may be obtained.  Inevitably some differences  have resulted in interpreting answers to the questionnaires leading to erroneous classification of some Reserve Banks.  It is hoped, however, that the report as  a whole adequately represents a summary of industrial development activities of  the several Federal Reserve Banks.  »  General Policy A general policy on the role of the Reserve Bank in industrial develop­  ment activities has been formulated or evolved by nine of the twelve Banks.  These general policies represent a considerable variance of opinions on the  proper role of Reserve Banks in economic development of the region.  Further­  more, the presence or absence of a statement of a particular function in a formu­ lated policy does not always mean that the Reserve Bank concerned particpated in, or abstained from, the particular type of activity.  Nevertheless, policy  statements seemed to be generally accurate in the description of the activities of the Banks in this field.  Of the banks having a formulated policy, those banks with essentially  »  active or positive policies tend to regard such activity as a facet of a more  general regional research program required by Reserve Bank concern over local  economic and financial conditions.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  -3-  The Federal Reserve Bank of Boston summarizes its attitude on I research as follows:  1.  Our research program will be more vital and more helpful to the extent that it ties in with the needs of the district.  2.  Any effort to bring about economic development in the region must be consistent with the development of the nation as a whole and not merely at the expense of other parts of the nation or the world. The broad basic principle has been that high level economic stability in the nation will be better attained if each region pulls its own weight than if some regions act as a drag upon the others.  3.  Our member banks will be sounder institutions if they serve prosperous and growing communities than if they serve com­ munities that are depressed and subject to the shock of busi­ ness removals or business failures to a greater than normal extent.  Starting with these convictions, we have designed our research program to point out clearly the nature of trends in the regional economy and par­ ticularly the shift in the character of its industry. We have concentrated on finding the sources of industrial growth and the obstacles to industrial growth. These inquiries have led us into such fields as the ways in which individuals and companies in communities can finance and build industrial plants, the ways that special private financing institutions (development credit corporations and the like) can assist the growth of industry and finally to studies of the types of industry that have the best prospects for growth in the area. A slightly different slant to its research program is held by the Federal  Reserve Bank of St. Louis.  The program at that Bank can be paraphrased from  answers to the questionnaire as follows:  Part of the research program at St. Louis is pointed at regional economic research. The emphasis has been mainly on method to raise district income as the Eighth Federal Reserve District is primarily a low income area. It is a fairly well diversified region and has substantial basic resources which, however, have not been utilized fully or effectively. Better and more efficient resource use is a requisite to a higher level of income in the District. This should be fostered both by basic research and efforts to acquaint and educate the people of the District on these  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  -4-  problems. Because of the nature of the District, much of the research is necessarily, agricultural in character. In addition, an effort has been made to gain a basic knowledge of the processes included in economic growth, especially the persistence of unequal growth rates within the district, and the role of capital and credit in such processes Much of the later type of work has involved the application of national social accounting techniques to the District and its component areas and analysis by this and other means of the characteristics of these areas affecting their economic development. The policy of the Minneapolis Bank is to "develop a program whereby  major industrial trends are given intensive study. These studies should empha­ size technological developments affecting industry in the District more so than normal growth factors of business ... or emigrations and immigrations of firms. "  Those banks having essentially a negative or passive policy toward  cooperation in industrial development work stress the "storehouse" view of the research function and the inappropriateness and danger of developmental activity  to the position of Reserve Banks as public institutions. Indicative of this approach is the policy statement of the Federal Reserve Bank of Richmond.  This bank’s policy concerning its role in the industrial development of the Fifth District is based upon the premise that the System function of pro­ moting monetary and credit conditions favorable to sustained economic progress does not justify the assumption by an individual Reserve Bank of the role of proponent either for the development of a specific industry or for the competitive industrial development of its district. This policy does not preclude the provision of information to banks and to the public in accordance with the System policy of making available to others such information as it developes for its own uses. It does rule out, however, the assumption of initiative by the bank in developmental programs, the undertaking or sponsorship of special studies in connection with such development, and the provision of statistical and advisory assistance of major proportions to the proponents of such development.  In a similar vein is the statement of the Federal Reserve Bank of Dallas:   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  (a)  The Research Department should represent, in a sense, a storehouse of economic and financial information available to any legitimate user. The Department should have on file or should be in a position to obtain information regarding factors which are important with respect to the location of industry in the District.  (b)  The Research Department should disseminate in a general way through its publications industrial and other economic informa­ tion relating to the District which might be of value to persons interested in the economic potentialities of the area.  (c)  The Research Department should be in a position to provide economic information in direct response to inquiries relating to industrial location problems in the District. The Department is expected to avoid any attempt to direct the location of industry to one part of the District as against another part, except insofar as such economic information provided by the Department may assist the inquirer in reaching his own decision.  (d)  Information supplied by the Research Department of the bank should be objective and factual in nature and should be given without any suggestion or recommendation with regard to specific industrial locations or potentialities.  The other banks with formulated policies on the role they should play in  industrial development tended to amplify one or the other view or reconcile the two views.  As a general conclusion, answers to the questionnaire indicated that those banks which have developed either policies of active or passive concern toward  industrial development activities represent districts which have undergone recent economic change, contain depressed areas, or in which major industrial problems have recently appeared.  The climate in these districts has apparently required  that some policy be determined on the scope of Research Bank activity in this area.  The Reserve Banks indicating they recognize little or no need to formulate a policy on industrialization are New York, Philadelphia, and Chicago.  The New  York Bank stresses the abundance of agencies in its District active in promotional  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  -6-  I  work as one reason that its load is small as well as the fact that its research  activity is largely concerned with money market affairs and the small amount  of development work it does "reflects an appropriate division1 of labor1 among the Reserve Banks."  The Philadelphia Bank in general acts only as a source of  information, advice, and consultation and in view of the small outlay, has formu­  lated no specific policy.  The Chicago Bank stresses the lack of depressed areas  in its District as one reason the problem has not arisen in its district and that  no policy has been required. Most banks that are active in development work have consulted their  directors about their work in the field although only two banks (Boston and Kansas City) have requested and received formal approval of the directors.  Other banks active in industrial development work indicate that they have dis­ cussed the program from time to time with individual directors, or in informal consultation with the directors* Research Committee.  In the remaining banks  with a formulated or adopted policy, this policy has been determined by the  bank's management or its Research Department, or jointly by both. Provision of Statistics  All Federal Reserve Banks indicated that they have from time to time  provided special tabulations of regular series maintained by them in connection with the normal work of the Research departments.  The number of requests  for such information motivated by questions exclusively concerned with industrial  I  development is minor, most report.  Virtually all banks indicated, however, that  such aid is given only when convenient to the department and only when proper   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  »  TABLE A POLICY TOWARD INDUSTRIAL DEVELOPMENT ACTIVITY  Reserve Bank  No Policy Exists  Boston  Policy Exists Informal Formally Consul­ Accepted tations With Management 4By Directors Directors Research  General Character of Program Find & publicize sources of anPobstacles to industrial growth  X  Indicated Reason For Formulation or Non-formulation of Policy Effect of economic change In region on national and regional economy and banking structure  New York  X  Supplies informa- Existence of other agencies tlon on request and preoccupation with money when convenient market affairs  Philadelphia  X  Supplies informs- Small expenditures Involved tlon on request when convenient  Cleveland  X  Richmond  Chicago  Few localities In district can qualify for preference,  Supplies informs- System cannot be proponent tlon on request of Industry or community when convenient  X  X  Atlanta  Mainly Informstlonal. Some work on specific problems  Supplies informs- System cannot be proponent tlon on request of Industry or community when convenient  Supplies Informs- Few depressed areas and tlon on request therefore little demand when convenient  X  St. Louis  X  Find & publicize Better use of resources needed methods of raising to raise substandard income income through of region better resource use  Minneapolis  X  Intensive study Reason not given of major Industri­ al trends  Kansas City  Develop informstlon and foster understanding of region  X  Reason not given  Dallas  X  Supplies informa- System cannot be proponent tlon on request of Industry or community when convenient  San Francisco  X  Mainly informa­ tional. Some Work on specific problems   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Obligation of public agenoy to provideInformation for better use of resources without espousing special regional causes  I  TABLE B PROVISION OP STATISTICS FOE INDUSTRIAL DEVELOPMENT PURPOSES  Reserve Bank  Provides Special Tabs of Regular Series  Inaugu­ rates New Series  Enlarges Present Series at Request of Others  Collects Primary Data at Request of Others  Assembles Secondary Data at Request of Others  Purchases Special Tabs & Compila­ tions  Publishes Brochures & Other Secondary Data  Boston  X  New York  X  Philadelphia  X  Cleveland  X  Richmond  X  Atlanta  X  Chicago  X  St. Louis  X  Minneapolis  X  Kansas City  X  X  Dallas  X  X  X  San Francisco  X  X  X  I  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  X  X  X  X  X  X  X X  X  X  X  X  X  X  X  X  X  X  X  X  X  X  X  X  X  /  X  Subsidizes Collection & Preparation of Statistics By Others X  -7-  I safeguards such as the disclosure rule are observed.  New statistical series  were inaugurated or attempted by six Reserve Banks partly because of outside requests.  These series were usually minor and most banks indicated that they  were attempted only when the bank itself seemed also to gain from the additional data.  Such series inaugurated or attempted include indexes of tourist activity  (Boston); clay products, farm implements, warehousing (Cleveland); waterborne  trade and mortgage lending activity (San Francisco).  Enlargement of present  series at the request of others has been done by six Federal Reserve Banks al­  though most indicate such changes have been minor.  Most typical is the addition  of smaller towns to regular series on bank debits, retail sales, etc., at the  I  request of local merchants and associations.  Only one Federal Reserve Bank (Boston) indicated in the questionnaire that it collected primary data at the request of other associations or firms and this, only if the information seemed to ’’yield useful information pertinent to the  whole regional economy. " The four studies given as examples by the Boston Banh were done in cooperation with (1) the New England Council and nine regional  manufacturers’ associations, (2) State Development Commissions, (3) New Eng­  land Shoe and Leather Association, and (4) the Greater Boston Chamber of Commerce.  Other banks indicated that they collected primary data on agri­  culture and banking at the request of others but the answers were not tabulated  because of the non-industrial character of the work. Virtually all banks assemble secondary data at the request of others, but  »  nearly all indicated that such requests were acceded to only when therequest was   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  » TA2LE C PROVISION OP ANALYTICAL SERVICES ' FOR INDUSTRIAL DEVELOPMENT PURPOSES  Reserve Bank  StaffWritten Review Articles  Boston  X  Review Articles by Outside Personnel  StaffWritten Industry or Locality Analyses  X  Develop­ mental Clinics Sponsors or Assists  Loan of Personnel  X  Purchase of Industry or Market Analyses  Sponsorship of General Studies by Outside Associations  X  X  New York Philadelphia  X  Cleveland  X  X X  X  X  X  Richmond Atlanta  X  X  Ohioago  St. Louis  X  Minneapolis  X  X  Kansas City  X  X  Dallas  X  San Franoisoo  X  I  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  X  X  X  X X  X  X  X  »  -8-  relatively minor and could be done at the convenience of the Research Department. Three banks (Boston, Cleveland, and St. Louis) purchase special tabulations  and compilations useful in industrial development work. brochures and other compilations of secondary data.  Five banks have published  In general, such brochures  range from relatively simple compilations designed to reduce the work of  answering recurring questions on the regional economy (Example - "The Develop­ ing South" - Federal Reserve Bank of Atlanta) to the preparation of visual materials for presentation of problems of the region.  Only one bank (Boston) indicated that it subsidizes the collection and  preparation of statistics by agencies other than their research staff.  This, ac-  cording to the statement of the Boston Bank, occurred in conjunction with research  grants and loan of personnel to a study of "The Economic State of New England" by the Committee of New England of the National Planning Association.  Two other  banks, Chicago and Minneapolis, indicate they are favorably inclined to such  practice if and when it would fit into the work of the Research Departments. Provision of Analytical Services Nine of the twelve Federal Reserve Banks indicate that they have staff  written articles analyzing potentials in a particular industry, locality, or dealing with community industrial development techniques.  Industry and locality analyses  by the two banks reporting that they had performed such services were of relatively small proportions and only of slight importance.  The opinion was expressed by  at least one bank that this was the field of market analysts and should be left to them.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  »  -9-  Six banks participated in developmental clinics only to the extent of furnishing speakers.  None indicated that they sponsor such clincs although one  (Dallas) indicated it would not be adverse to sponsorship of such a program with  a banking association or an educational institution.  Two banks (St, Louis and  San Francisco) have loaned personnel to other organizations although not in the  strict sense of the word "loan".  The St. Louis Bank had indulged in cooperative  ventures with member banks as well as regional development associations  whereas the San Francisco Bank in the course of participating in certain regional and local associations has had personnel at work on specific projects of the associations.  Three closely allied questions dealt with (1) hiring of outside personnel  to do Monthly Review articles (2) purchase of specific industrial or market analysis and (3) sponsorship cf general economic studies by outside associations or institutions.  Because policy on these matters appears to be closely inter­  woven, they are best treated together.  The Boston Bank indicated its general views on the hiring of outside personnel and purchase of specific market analyses as follows:  Research effectiveness is greatly dependent on the technical competence of the individuals conducting the research. In many instances individuals not on the research staff of this bank have technical backgrounds which makes them eminently qualified to conduct research on topics beyond the competence of the department staff. Through a program of research grants approved by the Board of Directors in 1946 and continued ever since, the Bank has obtained research on special topics much more ef­ ficiently than its staff could complete the task and at considerable savings. Because the research was part of the special interest of the individuals engaged, the bank secured results of the studies at less than their full cost. In some instances, the bank made grants to specialists at educational institutions. At other times it engaged consulting firms  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  -10-  I  and experts. The following are illustrative of the studies obtained byresearch grants: A.  ’’Industrial Opportunities in New England". A survey of technical developments of potential importance to New Englandrs industrial development. Conducted by Arthur D. Little, Inc., consulting engineers.  B.  "Survey of Wood Waste Utilization in New England". A field survey of potentials for developing new uses for waste wood. Conducted by a professor at Dartmouth College.  C.  "Ideas for New Business Firms" and "Market Studies for New Businesses". A survey of experiences of new businesses in de­ veloping new products. Conducted by a professor at Massachusetts Institute of Technology.  D.  "Impact of Science on the Fishing Industry". A study of innovations and their impact with particular reference to the New England fishing industry. Conducted by the Director of Spectrochemical Laboratories.  In addition, the Boston Bank favorably regards cooperation with broad scale investigation sponsored by other agencies through research grants and loan of  personnel when it appears to be in the interest of the general program developed by the bank.  Example: A Study entitled "The Economic State of New England"  by the Committee of New England of the National Planning Association.  The Kansas City Bank indicated that it assisted the University of Kansas in a pilot study of an economic area by paying salary and expenses of an  economist in 1950.  Since that time the work has been taken over by a research  grant from state funds. The answer of the Federal Reserve Bank of St. Louis to questions of  hiring outside personnel, etc. , was conditioned somewhat by their policy of  I  considering two research consultants on the staff of a local university as an  integral part of the Research Department of the Bank, The St, Louis Bank   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  -11-  I  indicated that it has participated in planning and has contributed some work for the Southeastern Economic Research Conference, Committee of the South,  Arkansas Economic Council, etc.  The San Francisco Bank reports a study entitled "International Com­ modity Developments and California Agriculture" presently is being prepared by an outside economist  and at least one bank (Chicago) regards itself as  favorably inclined toward purchase of specific market or industry analyses  although never having done so.  In direct co ntrast is the policy of the Dallas  Bank which is to limit publications to those studies produced by employees of the bank with minor exceptions in the case of public addresses, System  announcements, etc.  General Questions None of the Federal Reserve Banks indicated that they considered them­ selves to be "actively seeking industrial development by searching for all opportunities."  The Boston and St. Louis Banks indicated that they considered  their programs in regard to industrial development to be a planned program  involving more than answering specific requests from directors, member banks  and associations but stated that their work could hardly be construed as a systematic search for individual opportunities for industrial development.  In the  case of these banks, results are generally made available to the public and  specific requests arising from such published information are referred directly to the person or agency furnishing the source of such information. In handling requests for information, four banks indicated that directors,  member banks, or reporting firms would generally be given preference over  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  -12-  requests from other individuals, firms or associations.  Only one bdhk  (Boston) reported any attempt to recover expenses, this in connection with  special publications sold to the public but given free to member banks.  Only  one bank, St. Louis, reported entertainment expense involved in development  work and this only in connection with agricultural dinners.  Obviously, Othet  banks participating in agricultural programs of a like nature did hot fcohsideir such activities as within the scope of the program.  Three banks attempted to determine the number of employees involved in development work and its cost but it was apparent that the figures are not  directly comparable because of differences of definition of the program.  The  Boston Bank stated that because it conceives of the industrial development  activities of that institution to be the public relations aspect of the regular research program, there was no basis for estimating the cost of "specific projects of an industrial development nature. ” That bank indicated that at­  tendance of its research staff at meetings,luncheons, etc., amounted to one-  fourth the time of one professional employee although no one employee, of course, did that exclusively.  Additional time spent by research personnel in  the evenings was not counted as it was done voluntarily. The St. Louis Bank reported it considered three professional and three  clerical workers to be employed on its regional research program and a rough  allocation of total expenses would come to $30,000 in salaries for this type of  I  attivity in the year period.  Publication costs for the Monthly Review, including  the current conditions section, totaled $10,765, 55.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Specific publication costs  >  -13-  were listed as follows:  July 1952  Eighth District Industrial Development and $ 911.15 the Defense Mobilization Program August 1952 Electric Power, A Resource for District 1,125.10 Development September 1952 Features of the Economic Geography of 1,476.15 the Eighth District 1,677.40 October 1952 Eighth District Income in 1951 1,220.65 Nov, 1952 Bank Reserves and the Flow of Funds Mechanization of Eighth District Dec, 1952 1,266.80 Agriculture May 1953 Sources and Uses of Eighth District 1,828.85 Funds in 1952 1,259.45 June 1953 Oil in the Eighth District $10,765.55 Total The Kansas City Bank listed the following specific projects of an  industrial development nature performed in the year ended June 30, 1953,  I  together with their cost, "Livestock and Meat Packing in Kansas City" "The Economic Effects of the Floods of July, 1951, in Kansas, Missouri, Nebraska, and Oklahoma” "An Economic Analysis of the Kansas City Metropolitan Area1'  $ 1,700  4,500 9, 500  The San Francisco Bank reported about 20 percent of the time of one professional employee and 20 percent of the time of one clerical employee could be regarded as allocable to industrial development work although various em­  ployees were, of course, involved.  Specific costs on projects prepared in  the year ended June 30, 1953, were shown as follows:  I  Mortgage lending report for Bay Area Council about (no printing cost) Consultation on commnnity survey program, California State Chamber of Commerce (no printing costs) Assisted in the development of bibliography of statistics for Port Promotion Department of San Francisco Chamber of Commerce (includes $20 mimeographing)   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  $  300  100  150  »  ►  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ACTIVITIES OF THE RESEARCH DEPARTMENT FEDERAL RESERVE BANK OF BOSTON  I.  ,  Policy  Activities of the Research Department are currently evolved and defined by the President, First Vice President, and Director of Research. The Board of Directors, acting through a Directors’ Research Committee, has considered and approved the present research program and the policy that motivates it. The current program evolved from a program approved by the Board of Directors in 1946, and is in keeping with the action taken at that time and since then.  The bank’s research policy is based on economic developments which are in some respects unique to the First Federal Reserve District. Our industry has been shifting in character and quality. We have been losing textile employment, hold ing our own in the shoe industry, and gaining in a variety of other industries, the most important being machinery, electrical machinery and transportation equipment. This transition within our industrial structure has developed stresses and strains which show up in areas like Lawrence, New Bedford, Fall River and Providence, which were heavily committed to the textile industry. With these facts in mind, we have built our research activities on the convictions that:  1.  Our research program will be more vital and more helpful to the extent that it ties in with the needs of the district.  2.  Any effort to bring about economic development in the region must be consistent with the development of the nation as a whole and not merely at the expense of other parts of the nation or the world. The broad basic principle has been that high level economic stability in the nation will be better attained if each region pulls its own weight than if some regions act as a drag upon the others.  3.  Our member banks will be sounder institutions if they serve prosperous and growing communities than if they serve com­ munities that are depressed and subject to the shock of business removals or business failures to a greater than normal extent.  Starting with these convictions, we have designed our research program to point out clearly the nature of trends in the regional economy and particularly the shift in the character of its industry. We have concentrated on finding the sources of industrial growth and the obstacles to industrial growth. These in­ quiries have led us into such fields as the ways in which individuals and companies in communities can finance and build industrial plants, the ways that special private financing institutions (development credit corporations and the like) can assist the growth of industry and finally to studies of the types of industry that have the best prospects for growth in the area.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  -2-  »  The term "industrial development activities" may include a wide variety of meanings. Our usual distincticn is that compilation, analysis, and publication of information is research. Committee and conference work with outside organiza­ tions by staff economists is considered to be more closely identified as industrial development work.  The research program has been complemented by a policy of encourag­ ing our economists to meet with various business and development groups in order to discuss the finds of our research projects and to help bring these findings to bear upon the development or promotional activities of the groups involved. We have cooperated with the New England Council, a leading regional organization, the bankers’ associations, local community groups, chambers of commerce and state departments of commerce. II.  Research Activities in Relation to Industrial Development of New England  A.  t  Provision of Statistics 1.-3. The Research Department considers on its own merits each request for special tabulations of regular statistical data, inauguration of new statistical series or enlargement of current reporting series. If some other agency can per­ form the service as well, or if the service is not of region­ wide importance the suggestion is declined. Requests for new statistical series, while few, may be dealt with by the department, or referred to higher officers or the Board of Directors, depending on the importance of the proposed series in the research budget and the public relations issues in­ volved.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  There are three special statistical services which the Re­ search Department performs on a regular basis. a. To provide information about the district’s vacation industry, the Research Department inaugurated and maintains regularly a vacation business index. We do not think of this index as a service, primarily serving a specialized group. It measures an important business activity for this district. In addition to monthly reports on the industry, the Research Depart­ ment occasionally prepares special tabulations of vacation lodging data for state development commissions. It also prepares tabulations of deposits in six Cape Cod banks to reflect the volume of resort business in that area. This is done as a service to the Cape Cod Chamber of Commerce.  b. The Research Department secures broader distribution of current economic data about the district by assembl­ ing regular statistical data for publication in the monthly publication of the New England Council, a  -3-  I  region-wide association of individuals, associations and companies.  c.  d.  4.  >  5.  I 6.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  To facilitate the flow of information about economic re­ search in the district the Research Department compiles and publishes (750 copies) a Quarterly Inventory of Economic Research in New England.  As a service, to our member banks, or to banks who par­ ticipate in the special surveys, we prepare the following reports: 1. Member Bank Income and Expense Survey 2. New England Mutual Savings Bank Report 3. Trust Department Operations Survey 4. Special Interest Rate Studies for Member Banks  Special surveys to collect primary data are conducted in cooperation with member banks and private associations but not simply in response to requests. To be accepted, a pro­ posed survey must be designed to yield useful information pertinent to the whole regional economy. The following ex­ amples illustrate this kind of study: a.  A 1949 survey of "The Present Position and Prospects of New England Manufacturers" in cooperation with the New England Council and nine manufacturers' associations in New England.  b.  A 1950 survey of Community Industrial Financing Plans in New England in cooperation with State Development Com­ missions .  c.  A 1953 survey of the New England Shoe Industry in co­ operation with the New England Shoe & Leather Association.  d.  A 1953 survey of the New England Electronics Industry in cooperation with the Greater Boston Chamber of Commerce.  Member bank requests for information when considered pertinent and proper are filled to the best of our ability but other requests for assembly of published information are very infrequent, not encouraged, and usually denied. Except for the publication of statistical tables in "The NEW ENGLANDER", the monthly publication of the New England Council, the Reserve Bank does not provide private firms and associations with special tabu­ lations of secondary information.  The Research Department occasionally requests the purchase of special statistical tabulations for use in preparation of Monthly Review articles, but not for use simply in industrial development activities.  -4-  7. On request, the bank has occasionally reproduced statistical compilations and visual materials prepared and presented by bank officers or economists in analyzing economic issues in the region. 8. See B, 7 below. B. Provision of Analytical Services  1.  In addition to the cooperative surveys listed on A, 4 above, members of the Research Department staff frequently analyze data, and publish in the Monthly Review articles dealing with particular important industries in the region or with community industrial development techniques. Illustrations of this re­ search are: a. ’’Cranberries, New England’s Big Little Industry”  b. ’’Planned Industrial Centers - I, Redeveloping Existing Facilities c. ’’Planned Industrial Centers - II, Developing New Sites”  d. ’’The Printing and Publishing Industry in New England” e. ’’The New England Apparel Industry”  f.  ’’The New England Textile Industry"  g. "The New England Chemical Industry"  h. "New England's Industrial Development Corporations” i. "The Development Credit Corporation of Maine” 2.  See B, 6 below.  3.  The studies illustrated in B, 1 above are invariably published in the Monthly Review for general distribution to as wide a readership as possible. The Research Department staff does not conduct industry or locality studies for limited use by any group or individual.  4.  Individual members of the research staff serve by invitation on committees, panels^nd in conference to assist industrial and developmental clinics. The Federal Reserve Bank does not sponsor such meetings in conjunction with other groups. On one occasion we were requested by the Stockholders Advisory Committee to present to member banks on the afternoon of the Stockholders Meeting day the findings of a special study of   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  -5-  I  Industrial Opportunities in New England (See B, 6 below)  5. Research staff members have not been loaned to any group for industrial development purposes. 6. Research effectiveness is greatly dependent on the technical competence of the individuals conducting the research. In many instances individuals not on the research staff of this bank have technical backgrounds which makes them eminently qualified to conduct research on topics beyond the competence of the department staff. Through a program of research grants approved by the Board of Directors in 1946 and con­ tinued ever since the Bank has obtained research on special topics much more efficiently than its staff could complete the task and at considerable savings. Because the research was part of the special interest of the individuals engaged, the bank secured results of the studies at less than their full cost. In some instances, the bank made grants to specialists at educational institutions. At other times it engaged consulting firms and experts. The following are illustrative of the studies obtained by research grants:  >  7.  A.  "Industrial Opportunities in New England”. A survey of technical developments of potential importance to New England’s industrial development. Conducted by Arthur D. Little, Inc., consulting engineers.  B.  "Survey of Wood Waste Utilization in New England". A field survey of potentials for developing new uses for waste wood. Conducted by a professor at Dartmouth College.  C.  "Ideas for New Business Firms" and "Market Studies for New Businesses". A survey of experiences of new busi­ nesses in developing new products. Conducted by a profes­ sor at Massachusetts Institute of Technology.  D.  "Impact of Science on the Fishing Industry". A study of innovations and their impact with particular refer­ ence to the New England fishing industry. Conducted by the Director of Spectrochemical Laboratories.  The Research Department has cooperated, through research grants and loan of personnel, in the sponsorship of a broad scale in­ vestigation of "The Economic State of New England" by the Com­ mittee of New England of the National Planning Association.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  k  -6-  C.  General Questions 1. The research program originates in planning by the entire research staff. Suggestions are not actively solicited but they flow in from many sources, including officers and directors of the bank, member banks and a wide variety of other individuals and organizations. A suggested research program is prepared for consideration and approved by the Directors* Committee on Re search. The key element in our program is to do research that is needed and useful for the district; not all such research can be planned in advance. 2. Research findings are published in the Monthly Review or in special studies available to all. Publication of industry studies usually results in requests for detailed information. In these instances, members of the research staff refer the inquiry to the original source of information whenever this is possible. In their meetings with industrial develop­ ment organizations individual members of the research staff call attention to the published findings of the research.  3. Requests for information coming from within the Federal Reserve System are usually quite reasonable and every effort is made to respond effectively. Requests from other sources are considered in relation to the research objectives outlined in Section 1. above. 4. Much of the research which has development implications is a by-product of basic regional research. Consequently, recovery of expense for a particular development classification of re­ search is well-nigh an impossibility. No attempt is made to recover expenses connected with research that has development implications. In two instances the bank charged for special publications. It fixed charges at levels calculated to cover the cost of reproducing the studies. The member banks received free copies.  5. No entertainment expense is involved in industrial development activities by the research staff. 6. No person is engaged full time in "industrial development" work. As a rough estimate, the total attendance by all members of the research staff at committee meetings and con­ ferences where the prime topic is related to industrial development may total 50 man days a year. Much of that time falls during lunch hours of business days. An additional period of time is spent during evening sessions as a matter of choice by the individual staff members.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  -7-  7. As explained in Section 1. above, we conceive our industrial development activities to be the public relations aspect of our regular research program. For this reason there is no clear basis for estimating the cost of ’’specific projects of an industrial development nature. ” Several research studies that might be considered useful for industrial development were undertaken during the 12 months ending in June 1953. These studies were an integral part of our research program and the results, when published in our Monthly Review, received widespread attention simply as re­ search findings:  Wood Flour:  A Study in Wood Waste Utilization  Planned Industrial Centers A Survey of New England's Electronics Industry  Cranberries: New England's Big Little Industry Market Studies for New Businesses Ideas for New Business Firms The Impact of Science on the Fishing Industry The New England Apparel Industry The New England Shoe Industry  Printing and Publishing in New England Vacation Business Index - Monthly  Good Forest Management Will Make New England's Woodlands More Productive New England Industrial Development Corporations  I  January 13, 1954   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ►  New »   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  OR.K  ' ‘ C} 1 ? ' ! >•> f 1 '-..J  U-  ‘  ■ rr  , .t iF  federal reserve bank of new  York New York 45, N. Y.  December 16, 1953  : > !  Mr. Malcolm Bryan, President, Federal Reserve Bank of Atlanta, Atlanta, Georgia. Dear Malcolm:  Your letter of November 16 requests information on each Federal Reserve Bank’s activities in promoting industrial development within its district. Such activities within the boundaries of our District result mostly from the endeavor of local citizens and businessmen to attract new industries to fill the void created by the removal of some important local plant, aided in some instances by State Government organizations. Our Bank has not been involved, directly or indirectly, in any of these undertakings. The Department of Commerce of the State of New York and the Department of Conservation and Economic Development of the State of New Jersey, as well as of the Port of New York Authority — which is a joint agency of the States of New York and New Jersey — are actively engaged in promoting trade and industry in their respective spheres. These agencies have fairly large budgets and staffs and also have regular publications. They are, therefore, the logical focal points of inquiries of the sort which in other situations might reach Federal Reserve Banks. As a result, our Bank has never confronted the problem of developing a definite policy concerning the role which our Research Department should play in the industrial development of our District.  It is rather well known throughout our District that the efforts of our Research Department are concentrated to a considerable extent on the money market, the Government securities market, and international finance. It goes without saying that we try to meet, as well as we can, any demands for regional statistical information that reach us from time to time. However, from what we know of the activities of the Research Departments of the other Federal Reserve Banks, we feel that the load of this nature which our Research Department carries is relatively small, but that it reflects an appropriate "division of labor" among the Reserve Banks. Most outside inquiries — but  9  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  FEDERAL RESERVE BANK OF NEW YORK  2  Mr. Malcolm Bryan President  December 16, 1953  I only in exceptional instances from agencies concerned with the promotion of industrial development, — are for regional and local information for which we are known to be the primary source, namely banking, department store and furniture store statistics. We have a relatively small number of requests for information for which we do not compile original data and we do not provide systematically any special tabulations serving primarily interests of specialized groups of business or for local areas. We do prepare special tabulations for member banks from time to time, but these relate primarily to such matters as bank earnings and expenses and salaries paid to bank employees. While our Monthly Review occasionally carries articles dealing with the economic situation in our District, such articles are not focused on potentials in a particular industry or locality or on industrial development techniques. I hope that this information will prove helpful in your survey. Please feel free to call upon us if you need any additional information. Sincerely yours,  I  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  I  “R  r  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  FEDERAL RESERVE BAHK OF PHILADELPHIA  INDUSTRIAL  OF  I.  DEVELOPMENT  FEDERAL  RESERVE  ACTIVITIES  BANKS  Does your Bank have a definite policy concerning the role your Research Department should play in the industrial development of your District? If so, who defined it -- the Board of Directors? the management? the Research staff? Please outline this policy. Our primary objectives are to contribute to the formulation of Fed­ eral Reserve policy through the assembly and analysis of informa­ tion; to make data available to businessmen, bankers, and others; and to promote economic literacy, with special emphasis on an under standing of Federal Reserve policy and its place in the economy. On industrial development, we attempt to be a source of information advice, and consultation, but do not take the initiative or devote much time to promotional activity. In view of the small outlay for this purpose, no specific policy has been formulated.  II.  In relation to the industrial development of your District, what does your Bank do in regard to the following: (Please indicate and describe fully activities of the type mentioned engaged in by your Bank and the policy Justification)  A.  Provision of Statistics:  1.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Special tabulations of regular statistical data in form differ­ ing from that ordinarily published. At request of: a. Member banks; b. Reporting firms; c. Other private firms and organiza­ tions .  Innumerable requests for statistical data are received, some of them calling for special tabulations of regular data. Only infrequently is it indicated that the data are wanted for industrial development activities. Our response would be gauged by the volume of work involved, the apparent usefulness of the information, the respon­ sibility of the person or organization requesting it, and the extent to which it might create a precedent for similar requests to other Reserve Banks. Ordinarily, such requests are made to obtain information to solve some operating problem, to gauge the progress of an in­ dividual bank or business concern against a background of common experience, to obtain material for a speech, or, possibly, to help a student complete his thesis. In one instance, we supplied statistical data to a local university group studying the anthracite region.  - 2 2.  Inauguration of new statistical series serving primarily inter ests of specialized groups of business: Virtually the only requests of this kind have c.ome from department store executives, who wanted additional in­ formation to guide their planning.  3.  Enlargement of current reporting series to provide local data not essential for Bank's own use:  Requests of this kind ordinarily are granted only where necessary to assure continued reporting of data needed for our regular series.  One major exception - our reports on factory employment, payrolls and working time in Pennsylvania and Delaware, which give us excellent basic data on manufacturing ac­ tivity in our area. They are handled in cooperation with the United States Bureau of Labor Statistics. Un­ til recently, state data in detail and broad summaries by area were prepared. At request of the Bureau, and as part of its national program, we now prepare detailed reports on eleven labor market areas - on a reimbursable basis.  4.  Collection by own staff of other primary data (special surveys at request of:  a. Member banks -  The only special survey that we can recall, un­ dertaken at the request of banks, concerned the impact of excess profits taxes on banks. This request, sponsored by the American Bankers As­ sociation, came to us (and to all other Reserve Banks) through the Board of Governors. b. Private firms and associations -  »  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  None since our cooperation with the local unit of the Committee on Economic Development in the closing stages of World War II. Information partly from secondary, partly from original sources was assembled for industries of local importance as part of a nation-wide attempt to Bmooth the transition from a war- to a peace­ time economy. This information was presented and refined at a series of industry meetings. The results proved more realistic than general eco­ nomic thinking at the time.  - 3 -  5-  Assembling of secondary information from published Census re­ ports and other published sources at request of: a. Member banks -  To a limited extent, but not specifically for purposes of industrial development,  b. Private firms and associations To a limited extent, but not specifically for purposes of industrial development. See also answer to II-A-U-b above, 6.  Purchase of special tabulations and compilations of statistics from outside sources (firms, Census, universities) for use in industrial development by: a. Member banks; b. Private firms and associations; c. General distribution. No purchases for industrial development purposes.  7.  At own initiative publishing brochures containing largely com­ pilations of secondary statistical material:  None • 8.  Subsidizing collection or working up of statistics for analysis and publication by another institution or association. None.  B.  Provision of Analytical Services:  1.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Monthly Review articles by own staff analyzing potentials in a particluar industry or locality or dealing with community in­ dustrial development techniques.  Two articles in Review dealt with community efforts to overcome loss of markets^etc. - "Operation Bootstrap" (Dec. 19^9) and "Operation Bootstrap - A Second Look" (Dec. 1952). Topics were selected by our own staff.  Numerous articles have been published in the Review deal­ ing with specific industries, but they have been mainly descriptive in character, emphasizing importance to local areas rather than stressing industrial development. These industries already have "arrived". The articles on the Delaware River Valley which appeared in 1951 and 1952, republished in a pamphlet under the title "Industry on the Delaware", were primarily descriptive, but doubtless were useful to those interested in encouraging further development of the area.  - 4 -  »  Other articles which have some of tie flavor of indus­ trial development might include: "New Horizons for Cities" (Nov. 19^7)j "What's New in Industry" (Oct. 19^8); "Business on the Jersey Shore" (June 1951); and annual surveys of capital expenditures in the Philadelphia area. 2.  Monthly Review articles on the same topics by outside personnel:  None.  3.  Preparation by own staff of industry or locality analysis for: a. Member banks b. Private firms or associations -  Very few requests; response usually limited to data from secondary sources. This is the field of market analysts. c. General distribution at own initiative -  None, except as indicated under 1 above. 4.  Sponsorship or assistance to industrial and developmental clinics:  No sponsorship and little assistance other than that rendered in the CED meetings referred to in the answer to II-A-U-b above. 5.  Loan of personnel for industrial development purposes to: a. Member banks; b. Private firms; c. Regional associa­ tions; d. National associations.  None. Our Industrial Economist serves on the Research Advisory Committee of the Philadelphia Chamber of Com­ merce, but not with the specific purpose of furthering industrial development. 6.  Purchase of specific industrial and/or market analysis from: a. Universities; b. Consulting firms, experts, etc.; c. Other associations.  None. 7.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Sponsorship or partial sponsorship of more general economic studies bearing upon industrial development such as tax systemsj etc. Studies to be done by (l) universities, (2) con­ sulting firms, (3) nonprofit associations.  No sponsorship. Have supplied statistical data and discussed statistical problems with experts working on state taxing problems in Pennsylvania.  - 5 -  C.  General Questions: 1.  Does your Bank confine its industrial development activities to those arising from specific requests from its directors, member banks, regional, local, and industrial associations, or has it adopted policy of actively seeking industrial de­ velopment by searching for all opportunities? Please com­ ment on basis for policy. As the answers to foregoing questions indicate, our participation in industrial development for the most part has been indirect - in responding to specific inquiries and has not been a part of a deliberate policy of expansion. Our position in this respect is outlined in answer to question I.  2.  If actively seeking out opportunities, what means are used to bring them to attention of interested parties? Are ini­ tial contacts made by Bank or through cooperating associa­ tions? How are requests for specific contacts handled?  We are hot actively seeking opportunities. 3.  In honoring requests for information and aid, what distinction do you make in regard to requests from: a. Directors; b. Mem­ ber banks; c. Reporting firms; d. Nonmember banks and competing financial institutions; e. Other private individuals and busi­ ness firms; f_. Local associations, chambers of commerce, etc.; g. Industrial associations; h. Bankers associations; i. Employ­ ers associations.  We try to be a center of economic information, which is freely supplied. Other aid is usually limited to advice and consultation. Each re­ quest is weighed on its merits, the volume of work involved, the responsibility of the in­ quirer, and similar factors, rather than on the origins - indicated in the question. 4.  Is any attempt made to recover expenses connected with indus­ trial development activities? How do you fix charges for spe­ cial publications? We do not enter into such activities to the extent of hav­ ing to recover expenses.  5.  Is any entertainment expense used for industrial development purposes? No.  »  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  - 6 -  » 6.  At the present time, how many professional employees are engaged in industrial development work? (indicate answer in tenths, as 1.5) None.  How many clerical and statistical employees? None.  7-  Please list specific projects of an industrial development nature performed in the year ended June 30, 1953* Indicate the cost of each project as nearly as can he estimated (in­ cluding printing costs where applicable). The second article on "Operation Bootstrap", published in the December 1952 issue of our Review. Specific costs negligible.  Committee on Research and Statistics Conference of Presidents November 16, 1953   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  F3DBHAL RESERVE BAHX OF CLEVELAND  »  INDUSTRIAL DEVELOPMENT ACTIVITIES OF FEDERAL RESERVE BANKS  ,;aN 13 IS'-' iU  I.  Does your bank have a definite policy concerning the role your Research Department should play in the industrial development of your District? If so, who defined it -- the Board of Directors? the management? the Research staff? Please outline this policy. See Attachment A  II.  In relation to the industrial development of your District, what does your Bank do in regard to the following:  (Please indicate and describe fully activities of the type mentioned engaged in by your Bank and the policy justification,)  A,  Provision of Statistics  1.  Special tabulations of regular statistical data in form differing from that ordinarily published. At request of:  a.  Member banks  Data supplied only upon request, and if available. b.  Reporting firms ditto, (as for example department stores.)  c.  2,  3,  4,   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Other private firms and associations ditto  Inauguration of new statistical series serving primarily interests of specialized groups of business. Have made several attempts to elicit cooperation of firms such as clay products, farm implement, and warehousing concerns, but response was not sustaining Enlargement of current reporting series to provide local data not essential for Bank's own use. We have been publishing a ’’Weekly Business Summary” for the Cleveland metropolitan area, as well as for Cincinnati, for several years. These statistical releases are well received. Collection by own staff of other primary data (special surveys) at request of:  a. Member banks Few such requests are received.  Page 2  b.  Private firms and associations ditto  5. Assembling of secondary information from published Census reports and other published sources at request of: a.  Member banks  We try to accommodate the inquirer whenever possible (requests are not numerous)  b.  Private firms and associations ditto  6*  Purchase of special tabulations and compilations of statistics from outside sources (firms, Census, universities) for use in industrial development by:  a.  Member banks  We make occasional purchases of such material.  b,  Private firms and associations ditto  c.  General distribution  ditto 7.  At own initiative publishing brochures containing largely compila­ tions of secondary statistical material.  Monthly Business Review serves as vehicle for dissemination of District industrial analyses and discussion. 8.  Subsidizing collection or working up of statistics for analysis and publication by another institution or association.  This matter has not come up for definite determination.  B. Provision of Analytical Services  1.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Monthly Review articles by own staff analyzing potentials in a particular industry or locality or dealing with community industrial development techniques. Such articles appear at varying intervals as staff has time to develop the material.  Page 3 2.  Monthly Review articles on the same topics by outside personnel. One page of Monthly Business Review is set aside each month for contributions by industrial research organizations.  3.  Preparation by own staff of industry or locality analysis for: i a. Member banks  Manpower limitations have excluded this type of activity.  b.  Private firms or associations ditto  c.  General distribution at own initiative  ditto 4.  Sponsorship or assistance to industrial and developmental clinics. We offer to cooperate in all worthwhile undertakings, but question of financial support has seldom arisen.  5.  Loan of personnel for industrial development purposes to:  a.  Member banks  Question has never reached point where definite discussion was necessary. b.  Private firms  ditto c.  Regional associations ditto  d.  National associations  ditto  6.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Purchase of specific industrial and/or market analysis from: a.  Universities  Library occasionally makes such purchases.  b.  Consulting firms', experts, etc.  ditto  Page 4  c.  Other associations ditto  7.  Sponsorship or partial sponsorship of more general economic studies bearing upon industrial development such as tax systems, etc. Studies to be done by (1) universities, (2) consulting firms, (3) nonprofit associations. Question of such sponsorship has not arisen.  C, General Questions  1.  Does your bank confine its industrial development activities to those arising from specific requests from its directors, member banks, regional, local, and industrial associations, or has it adopted policy of actively seeking industrial development by searching for all opportunities? Please comment on basis for policy. Limitations of time and talent have restricted our activities to specific requests, but doubt that this bank would actively seek wider range.  2,  If actively seeking out opportunities, what means are used to bring them to attention of interested parties ? Are initial con­ tacts made by Bank or through cooperating associations ? How are requests for specific contacts handled?  Not pertinent.  3, In honoring requests for information and aid, what distinction do you make in regard to requests from:   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  a.  Directors  )  u0 inflexible priorities  ) ) assigned. Requests are con) ) sidered in terms of urgency, b. Member banks ) ) consistency with bank policy, ) ) and volume of work involved. c. Reporting firms ) ) ) ) d. Nonmember banks and competing financial institutions  Page 5  e.  Other private individuals and business firms  I  ) )  f.  Local associations, chambers of commerce, etc.  ) )  ) g.  Industrial associations  see above ) )  h*  Bankers associations  ) )  /  i.  )  Employers associations  )  4.  Is any attempt made to recover expenses connected with industrial development activities? How do you fix charges for special publications ? Not pertinent in our case.  5.  Is any entertainment expense used for industrial development purposes ? ditto I  6.  At the present time, how many professional employees are engaged in industrial development work? (Indicate answer in tenths, as 1.5) None, in the narrow sense.  How many clerical and statistical employees? ditto  7.  Please list specific projects of an industrial development nature performed in the year ended June 30, 1953. Indicate the cost of each project as nearly as can be estimated (including printing costs where applicable). None  I  Committee on Research and Statistics Conference of Presidents November 16, 1953  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ATTACHMENT A  L.i.il  I  M. ft. S. SECTlOf  This bank has been pursuing a fairly consistent policy, with rer spect to the role which our Research Department should play in indus­ trial development, to the effect that we do not initiate any broad  economic surveys or analyses of geographical subdivisions within the  District.  When and if our aid is sought, however, we are prepared to  be of some assistance, the precise nature of which will depend upon  the reasonableness of the request, limitations of manpower, and other  factors. This policy has been defined, or evolved, by management and the  Research Department.  It might be explained here that there are very few localities or  »  regions in the Fourth District which can qualify for preferential treatment in studying local economic conditions.  Virtually all com­  munities have shared with almost equal measure in the wartime and post­ war industrial expansion.  The only part of the District which seems to have experienced some degree of economic hardship, at least in a relative sense, is the bitu­  minous coal-mining area of Eastern Kentucky.  We have been sounded out  by local enterprise in that region, and have offered to render some pro­  fessional assistance only if the locality itself is willing to invest  some time and money in an analysis of its industrial potential. We are also giving somewhat more than mere verbal support to the Ohio Forestry Association.  The supply of water for industrial use is  becoming of increasing importance in this heavy-consuming area, and it  »  is our policy to encourage reforestation and other activities or prac­  tices which are necessary if the water supply is to remain adequate for the constantly growing needs of industry.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  v   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  INDUSTRIAL DEVELOPMENT ACTIVITIES OF FEDERAL RESERVE BANKS  I. Does your bank have a definite policy concerning the role your Research Depart­ ment should play in the industrial development of your District? If so, who defined it — the Board of Directors? the management? the Research staff? Please outline this policy. This bank1s policy concerning its role in the industrial development of the Fifth District is based upon the premise that the System function of promoting monetary and credit conditions favorable to sustained economic progress does not justify the assumption by an individual Reserve Bank of the role of pro­ ponent either for the development of a specific industry or for the competitive industrial development of its district. This policy does not preclude the provision of information to banks and to the public in accordance with the System policy of making available to others such information as it develops for its own uses. It does rule out, however, the assumption of initiative by the bank in developmental programs, the undertaking or sponsorship of special studies in connection with such development, and the provision of statistical and advisory assistance of major proportions to the proponents of such development. /This policy was defined by the management of the bank with the informal concurrence of the members of the Board of Directors. It has not been the subject of formal action by the Board of Directors. II.  In relation to the industrial development of your District, what does your bank do in regard to the following; (Please indicate and describe fully activities of the type mentioned engaged in by your bank and the policy justification.)  Reference will be made below to the bank’s policy of providing information upon request from bankers and the public. The general policy on this is that re­ quests for statistical data collected fcy this bank, or available in our Research Department and not generally available, will be met where the burden of prepa­ ration is not unreasonably great. In practice, this means that such requests which involve less than five man-hours of preparation will be handled as a matter of routine. Requests involving more than this amount of time will generally be the subject of discussion between research officers and bank and public relations officers, the decision resting upon the particulars of the individual request and the current work load in the Research Department.  A.  Provision of Statistics  1.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Special tabulations of regular statistical data in form differing from that ordinarily published. At request of;  a.  Member banks  Special tabulations are provided in consonance with the general policy stated above.  -2-  b.  Reporting firms Special tabulations are provided in consonance with the general policy stated above, but in order to promote relations with report­ ing firms, somewhat more favorable consideration is given to larger projects where they will contribute to the operations of a group of reporting firms.  c.  Other private firms and associations Special tabulations are provided in consonance with the general policy stated above.  2.  Inauguration of new statistical series serving primarily Interests of specialized groups of business. New statistical series are never inaugurated to serve primarily the in­ terests of specialized business groups. In a number of instances local series for a city (debits, department store sales, and building permits) have been set up with the cooperation of interested local groups, such as chambers of commerce. In every case, however, these series have fitted the statistical program of this bank, and the joint effort was utilized merely to secure local support.  3.  Enlargement of current reporting series to provide local data not essential for baric’s own use.  Some of the extensions of series to new localities, as described in the preceding answer, were of dubious value to our District sample and hence might be considered as ’’not essential” for our minimum requirements. With the goal of looking beyond District and national aggregates, how­ ever, we feel that they are desirable for our further analysis of District activity. 4.  Collection by own staff of other primary data (special surveys) at request of:  a.  Member banks  This bank has participated with state bankers’ associations in the collection of primary data through special surveys. These studies have invariably related either to bank operations directly or to the field of bank service to the community. b.  Private firms and associations None.  5.  Assembling of secondary information from published Census reports and other published sources at request of: a.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Member banks '  This is done in consonance with the policy stated at the beginning of this section.  -3b.  Private firms and associations  This is done in consonance with the policy stated at the beginning of this section. 6.  Purchase of special tabulations and compilations of statistics from outside sources (firms, Census, universities) for use in industrial development by:  a.  Member banka  None • b.  Private firms and associations  None. c.  General distribution  None. 7.  At own initiative publishing brochures containing largely compilations of secondary statistical material. Occasional publications intended to provide bankers, teachers, and others pith general economic infoimation on this District in a foim suitable for ready reference.  8.  Subsidizing collection or working up of statistics for analysis and publication by another institution or association.  None. B.  Provision of Analytical Services  1.  Monthly Review articles by own staff analyzing potentials in a particular industry or locality or dealing with community industrial development techniques.  None. 2.  Monthly Review articles on the same topics by outside personnel. None.  3-  Preparation by own staff of industry or locality analysis for:  a.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Member banks Occasional studies have been prepared upon the request of individual member banks which take account of the changes occurring in the economic environment of the bank. These studies have not had as  -4-  their purpose the analysis of the suitability of particular in­ dustries for the area or the suitability of the area as a location for industry groups* Instead, the area characteristics were taken into account principally as they influenced the operations of a given bank. b. Private firms or associations  None. c.  General distribution at own initiative  None. 4. Sponsorship or assistance to industrial and developmental clinics.  None. 5. Loan of personnel for industrial development purposes to:  a. Member banks None.  b. Private firms None. c.  Regional associations None.  d. National associations None.  6. Purchase of specific industrial and/or market analysis from:  a. Universities  None.  b.  Consulting firms, experts, etc.  None. c.  Other associations  None.  7. Sponsorship or partial sponsorship of more general eoonomlo studies bearing upon Industrial development such as tax systems, etc. Studies to be done by (1) universities, (2) consulting firms, (3) nonprofit associations. None.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  -5-  I  C.  General Questions  1.  Does your bank confine its industrial development activities to those  arising from specific requests from its directors, member banks, regional, local, and industrial associations, or has it adopted policy of actively seeking industrial development by searching for all oppor­ tunities? Please comment on basis for policy.  See general policy statement in answer to question I. 2.  If actively seeking out opportunities, what means are used to bring them to attention of interested parties? Are initial contacts made by bank or through cooperating associations? How are requests for specific contacts handled?  Not applicable. 3*  In honoring requests for information and aid, what distinction do you make in regard to requests from:  a.  Directors  The directors of this bank have not requested information and aid of major proportions other than in the conduct of the bank’s busi­ ness. As noted above, the directors are aware of the bank’s policy in the provision of information, and it is not expected that they will initiate requests for other than incidental information in the conduct of their affairs outside the bank. .  I  b. Member banks In considering requests that involve more than five man-hours of work, member banks are given a degree of preference over nonmember banks and the public-at-large.  c.  Reporting firms  See answer to question II. A. 1. b.  d. Nonmember banks and competing financial institutions  Nonmember banks and competing financial institutions are treated generally as members of the public-at-large except in those in­ stances where bank relations factors require that special consider­ ation be given the request of a nonmember bank and in cases where other financial institutions are regular sources of information for this bank. e. Other private individuals and business firms  p  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Requests from other private individuals and business films are handled in consonance with the general policy statement given at the beginning of section II.  -6-  f.  Local associations, chambers of commerce, etc. Requests from local associations, chambers of commerce, etc. are handled in consonance with the general policy statement given at the beginning of section II.  g.  Industrial associations Requests from industrial associations are handled in consonance with the general policy statement given at the beginning of section II.  h.  Bankers1 associations Requests from bankers1 associations are treated on a basis similar to that for requests from member banks in instances where bank relations considerations warrant special treatment*  i. Employers ’ associations  Requests from employers1 associations are handled in consonance with the general policy statement given at the beginning of section II. 4* Is any attempt made to recover expenses connected with industrial de­ velopment activities? How do you fix charges for special publications? Not applicable*  5*  Is any entertainment expense used for industrial development purposes?  6* At the present time, how many professional employees are engaged in Industrial development work? (indicate answer in tenths, as 1.5)  None. How many clerical and statistical employees?  None.  7* Please list specific projects of an industrial development nature per­ formed in the year ended June 30, 1953* Indicate the cost of each project as nearly as can be estimated (including printing costs where applicable) • None*  fc Federal Reserve Bank of Richmond F December 17, 1953   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ft  ft   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  December l6, 1953 FEDERAL RESERVE BANK OF ATLANTA  Answers to Questionnaire,  INDUSTRIAL DEVELOPMENT ACTIVITIES OF FEDERAL RESERVE BANKS  I. Does your bank have a definite policy concerning the role your Research Department should play in the industrial development of your District? If so, who defined it—the Board of Directors? the management? the Research staff? Please outline this policy. With respect to the relation of our research function to indus­ trial development, our policy is, in a sense, to have no policy. We are deeply interested, of course, in industrial development per se and in all related problems. We do not believe, however, that it is proper for a Federal Reserve Bank to prescribe specific courses of action to the economy and thus take a discriminatory position in favor of some types of business at the expense of others. Nor do we think it proper for a Federal Reserve Bank to participate as an active agent in industrial development. To do so would be to usurp to some degree the function of an entrepre­ neur without accepting the risks and responsibilities of that function.  This policy has never been formally drawn up by the Board of Directors or the management. It is believed, however, that it reflects the beliefs ,of the management since it has been de­ veloped from day-to-day operations and individual decisions that have been made, in part, by consultation with the management. In carrying out this general policy, it is believed that the Re­ search Department may legitimately engage in activities that have the following purpose or effect:   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1.  Assist in the development of tools needed for regional economic analysis by the staff.  2.  Assist in the investigation of the region’s financial structure.  3. Serve member banks as a source of information on econ­ omic matters in order to either assist in sound policy determinations or to promote favorable bank relations. Execution of this policy requires that the information or help provided be confined to that which can be made available to all member banks. This means that no ex­ tensive projects can be undertaken for single banks be­ cause this would involve favoring one bank over another, and, for another thing, it would involve too much time of research personnel.  -2-  I 4.  To help secure information on a quid pro quo basis.  5.  Foster good public relations by making information available that has been secured by the bank or assist ing in securing it elsewhere.  6.  Assist in public economic education that will foster a clearer concept of the relationship of monetary and credit matters to general economic growth.  Note: Answers to the following questions pertain only to activities of the past year. Policy justification is indicated by reference to the numbers prefacing the list above.  II.  In relation to the industrial development of your District, what does your Bank do in regard to the following:  (Please indicate and describe fully activities of the type mentioned engaged in by your Bank and the policy justification.) A.  Provision of Statistics 1.  2.  Special tabulations of regular statistical data in form differ­ ing from that ordinarily published. At request of: a.  Member banks > On some occasion when the disclosure rule will not be violated.  b.  Reporting firms No  c.  Other private firms and associations No  Inauguration of new statistical series serving primarily interests  of specialized groups of business. No 3.  Enlargement of current reporting series to provide local data not essential for banks own use. Yes. (4)  4.  Collection by own staff of other primary data (special surveys) at request of:   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  a.  Member banks No  b.  Private firms and associations No  -3-  I 5.  6.  7.  Assembling of secondary information from published Census re­ ports and other published sources at request of: a.  Member banks Yes, on occasion to assist in preparation of speeches or data needed in member bank operations. Few requests are for major projects. In such cases the facilities of the library are made available or help is given by suggesting sources.  b.  Private firms and associations Special inquiries for data requiring little time on the part of the research staff are answered directly. In case of inquiries requiring more extensive research work alternative sources are suggested and the facilities of the library are made available. Sometimes this advice is given by personal conferences with callers.  Purchase of special tabulations and compilations of statistics from outside sources (firms, Census, Universities) for use in industrial development by:  a.  Member banks No  b.  Private firms and associations No  c.  General distribution No  At own initiative publishing brochures containing largely com­ pilations of secondary statistical material. Yes. An example is a mimeographed publication entitled "Statistics on the Developing South". This compilation was made to reduce the burden of satisfying frequent inquiries under the policy points 3> and 5 above. A small pamphlet "Sixth District Agriculture, 191^-1952"  has been prepared for essentially the same reasons.  8.  B.  Subsidizing collection or working up of statistics for analysis and publication by another institution or association. No  Provision of Analytical Services  1.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Monthly Review articles by own staff analyzing potentials in a particular industry or locality or dealing with community devel opment techniques. Yes. See 2, 5, and 6.  I 2.  Monthly Review articles on the same topics hy outside personnel. No  3.  Preparation hy own staff of industry or locality analysis for:  a.  Member hanks No  h.  Private firms or associations No  c.  General distribution at own initiative No  b-.  Sponsorship or assistance to industrial and developmental clinics. Do not sponsor hut provide speakers at request. Policy point 5 above.  5.  Loan of personnel for industrial development purposes to:  6.  a.  Member banks No  b.  Private firms No  c.  Regional associations No  d.  National associations No  Purchase of specific industrial and/or market analysis from: a.  Universities No  b.  Consulting firms, experts, etc.  No  c.  7.  Other associations No  Sponsorship or partial sponsorship of more general economic studies bearing upon industrial development such as tax systems, etc. Studies to be done by (l) universities, (2) consulting firms, (3) nonprofit associations. No  »  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  -5-  I C.  General Questions  1.  Does your bank confine its industrial development activities to those arising from specific requests from its directors, member banks, regional, local, and industrial associations, or has it adopted policy of actively seeking industrial development by searching for all opportunities? Please comment on basis for policy. This question does not apply since this Bank does neither.  2.  If actively seeking out opportunities, what means are used to bring them to attention of interested parties? Are initial con­ tacts made by Bank or through cooperating associations? How are requests for specific contacts handled? Does not apply.  3.  In honoring requests for information and aid, what distinction do you make in regard to requests from:  a.  Directors In general no distinction is made since most requests for information do not require extensive research. Requests for information of a more extensive charac­ ter made by directors, if not of a private character, are more likely to receive more favorable attention than others.  b.  Member banks  c.  Reporting firms  d.  Nonmember banks and competing financial Institutions  e.  Other private individuals and business firms  f.  Local associations, chambers of commerce, etc.  g.  Industrial associations  h.  Bankers associations  I.  Employers associations  ft  4.  Is any attempt made to recover expenses connected with industrial development activities? How do you fix charges for special pub­ lications? No  5.  Is any entertainment expense used for industrial development purposes? No   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  -6-  » 6.  At the present time, how many professional employees are engaged in industrial development work? (indicate answer in tenths, as 1.5) None  How many clerical and statistical employees? None 7.  I  I  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Please list specific projects of an industrial development nature performed in the year ended June 30> 1953- Indicate the cost of each project as nearly as can he estimated (including printing costs where applicable).  ►  con o I   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Federal Reserve Bank of Chicago  I  4  OFFICE OF THE PRESIDENT  December 7, 1953 Mr. Malcolm Bryan, Chairman Committee on Research and Statistics Federal Reserve Bank of Atlanta Atlanta, Georgia  Dear Malcolm: I have reviewed your questionnaire on current and recent j eraotices of the fieserye. Banks .in pj&moting industrial At the Chicago Bank, we have not had a program of the kind that your questionnaire covers. True, there are borderline activities which could be made to fit into your questionnaire, but they are not oriented about a developmental program.  So far as I can recall, the participation of this Bank in industrial development projects has never been considered by our Board of Directors or management. The Research Department often supplies area and industry information which it has assembled for its own use. It has occasionally been called upon to prepare special tabulations bearing on a community or industry interests. We have met most of these requests without a significant expendi­ ture of research resources.  The following are Illustrative:  I  1.  The Iowa Bankers Association supplies us with operating reports and balance sheets for Iowa non-member banks. From these we compile the same information on bank operations that we derive from our member bank reports. The operating ratios for member and non-member Iowa banks are furnished to the Iowa Bankers Association for circulation to their members.  2.  In connection with our deposit ownership survey, and to obtain better respondent cooperation, we have offered to make tabula­ tions of certain depositor characteristics for participating banks. These tabulations are only infrequently requested and have never been more than a fair equivalent of the individual bank’s expense in furnishing us with deposit statistics.  3.  In 1952 the Flint, Michigan, Chamber of Commerce asked us to investigate the feasibility of setting up a comprehensive in­ dex of retail trade in the city of Flint. In cooperation with   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  i i  FEDERAL RESERVE BANK OF CHICAGO  »  Mr. Malcolm Bryan  - 2 -  December 7, 1953  the merchants, we made a detailed investigation of the charac­ teristics of retail sales in that area. This request happened to coincide with our interest in the pattern of retail trade in a highly industrialized area. We welcomed the opportunity to obtain local cooperation. 4.  We make quarterly surveys of agricultural credit developments and changes in fann real estate values. These surveys are carried on with rural member banks and are widely used by them. However, they were instigated on our initiative for the primary purpose of supplying us with data on agriculture in the Seventh District.  5.  In common with all Reserve Banks, we provide numerous tabula­ tions of department store sales, which appear to be primarily for the benefit of respondents. I should, however, again re­ gard this as being the price that we must pay in order to get prompt and accurate reporting from this sector of retail trade.  6.  We have made a survey of the Chicago metropolitan area and one of the meat packing industry. We contemplate additional studies of the economic areas within the Seventh District. However, these are all undertaken on our Initiative and for the primary purpose of supplying us with a more accurate and complete under­ standing of the structure of the Seventh District economy. We may solicit local participation in these projects.  7.  We have net, in a long time, undertaken the compilation of sta­ tistics for a particular industry or area other than those re­ lating to banking and trade common to the entire System. We would, however, If our Interests justified it, participate in some cooperative arrangement with either an industrial group or an area group should the opportunity arise.  I  In short, our attitude is that, understanding the District’s economy is of primary interest and major concern to us, and when a local group or industry has an associated or similar interest, and  we find it practicable to cooperate with them, we will do so.  It might also be helpful to indicate some of the things suggested by your questionnaire that we do not do:  >  1.  We have not purchased special tabulations or compilations of statistics for primary use by others than ourselves.  2.  We do not publish compilations of secondary statistical mate­ rial. The only extensive statistical data that we release is that which is generated in our Research Department from reports of banks and retail establishments.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  FEDERAL RESERVE BANK OF CHICAGO  Mr. Malcolm Bryan  - 3 -  December 7, 1953  3.  We have not subsidized the collection or the analysis of data by another institution or association, but would not necessarily be adverse to doing so if our interests could be most economic­ ally served by such an arrangement. We are deeply interested in structural studies of localities and industries in our Dis­ trict and will probably produce a number of these in the future.  4.  We do not hire outside personnel to prepare articles for our monthly review.  $.  We do not lend any assistance to industrial or developmental clinics.  6.  We have not loaned our personnel for industrial or developmental purposes.  The character of the Seventh Federal Reserve District and the absence of any significantly depressed community within it prob­ ably accounts for the fact that we have had few, if any, requests for assistance of the character which seems to have motivated other Federal Reserve Banks to enter this field. On the periphery of our District—in southern Illinois, southern Indiana, northern Wisconsin and the Upper Peninsula of Michigan— there are problem areas, but within the confines of the Seventh District the underdeveloped or deteriorating communities have not been a recognized problem. Requests that come to us for cooperative assistance in studying the structure of areas within the District are handled on the basis that inasmuch as this is a problem of continuing and major interest to us, we would like to be helpful. We have tried to create the impression that while the resources of the Bank are not available for general subsidy or promotion, it is always ready to cooperate in research on common problems where the objectives and methods can be well defined.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Sincerely yours,  ^Preside resided^  •  /   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  SV. Loiu%  »  Reply of the Federal Reserve Bar  to the  Questionnaire on  Industrial Development Activities of Federal Reserve Banks *  *  I. Does your bank have a definite policy concerning the role your Research Department should play in the industrial development of your District? If so, who defined it -- the Board of Directors? the management? the Research staff? Please outline this policy. A qualified ”yes" is given as answer to both the first and second parts of  this question. The qualification reflects two points: (1) our uncertainty as to just  what is meant by "industrial development" in this district, and (2) just how definite must a policy be to be "definite" within the terms of reference of this questionnaire. Let me take up the second part of the question first. The functions appropriate  to our Research Department have been discussed fairly thoroughly from time to time with our full Board of Directors.  I understand that this policy goes back well into  Chester Davis’ administration and it has been carried on since I have been at St. Louis. Beginning back about 1945 or 1946, Bill Stead and Fred Deming put together a series of memoranda discussing the functions of a Research Department in the St.  Louis Bank. By 1947 or 1948 the basic conceptual approach of this Bank's research  program was defined pretty well. As the program began and as it took more definite   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  2  I  shape it was discussed at Board meetings. In the past five years it has been modified somewhat, but the modifications have been primarily to recognize new projects and techniques; the basic approach has not been changed. The new projects and techniques  also have been rather fully discussed at Board meetings. The Board has not been asked to approve a specific research project at any time that I can remember. The discussions were mainly informative and did not  conclude with request for approval. Opinion of Board members as to the general approach and as to specific projects was solicited, however. Reaction of the directors always has been favorable, and many times has been enthusiastic.  Thus, I believe, we may say that the role of the Research Department has been defined by the Research staff and the active management, and, for all practical pur­  I  poses that definition has been accepted and approved by our Board.  Now, let me outline briefly our approach to the research function here. As we  see it the Research Department of this Bank has these functions: 1. Analysis and interpretation of material for internal use. This requires  considerable staff time in reviewing numerous economic data and reports and synthe­ sizing information from various sources. In general it means that the Research staff be in possession of sufficient background so as to be able (with perhaps additional  specific research) to comment on a variety of questions of economic development  and economic policy. It involves keeping the officers and directors and the Board of Governors - the policy making bodies within the Bank or System - informed on economic and social developments and their significance. For the most part such  »  analysis and interpretation is concerned with the short-run rather than with the long­  term, with current or immediate future problems rather than with those of the more  distant future.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  3  I  2. Analysis and interpretation of material for use outside the Bank or System. In part this comes naturally as a by-product of the first function but it goes considerably beyond the by-product stage. Both short- and long-run analysis  is involved. Emphasis falls more strongly on long-run developments, and research is designed to point up these problems in the broad and present possible solutions  for them. Through this function the Bank has the opportunity to work toward over­  all economic development and improvement, either by itself or in cooperation with other agencies or bodies. Since the Federal Reserve System is regional in character,  the research carried out under this function has a strong regional slant. (This does not eliminate national economic problems from a regional research program; those  of special significance to a particular region naturally would come in for study.)  I  3. Extension or Public Relations. This function is tied very closely to the second and has the same basic objective. It involves carrying the findings and  results of the research work to the genetal public or special groups of that public through publications, conferences, meetings, and general public appearances. Both  through this function and function 2, the Bank has the opportunity of making its influence felt through its analysis and presentation of current problems as well as long-term problems,  4. Collection of data, both primary and secondary. Most direct data collection by a Reserve Bank is done as part of System programs. The System has certain responsibilities for the collection of data under the Federal statistical programs.  Such responsibilities exist irrespective of the use to which the System itself would actually put the data collected by it. The System, of course, finds such data (and   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  4  those obtained from indirect sources) vital in providing background for policy formu­ lation and for measuring effects of System action. Many groups and individuals out­  side the System use System-collected data as a basis for their own policy decisions.  And obviously the other functions of a Research Department could not be carried on very well without economic data.  Eighth District Regional Research Program  The research program at St. Louis (under functions 2 and 3) is pointed strongly at regional economic development. Since well before the end of World War II,  the Bank’s research staff has worked in this field, partly on its own and partly in co­  operation with a variety of other agencies, both public and private, groups and indi­ viduals. Among these are: regional offices of the U. S. Departments of Agriculture  (including the Forestry Service), Commerce and Interior, the Army Engineers, state  universities (particularly the colleges of agriculture), state resource and development bodies, state bankers associations, private development groups such as the Committee  of the South and the Arkansas Economic Council, newspapers and local chambers of commerce. The emphasis has been mainly on methods to raise district income. The Eighth Federal Reserve District is primarily a low income area.  It  is a fairly well  diversified region and it has substantial basic resources. These resources, however,  have not been utilized as fully and as efficiently as they could be. Better and more  efficient use of the resources, both human and material, is a requisite to raising the general level of income in the Eighth District.  I  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  5  Because the district is an important farm section with a large proportion  of its people living and working on farms, and because agriculture is a primary industry, considerable emphasis in the St. Louis program has been placed on agri­ cultural development. In many sections of the district, soil resources have been  depleted through bad land management practices; in many sections there has been relatively poor balance in agriculture. This is particularly true of the cotton growing areas of the district where dependence of the farm population upon one crop has been  entirely too great. Therefore, one phase of the regional economic development program at  the Federal Reserve Bank of St. Louis has been a program of research into land use practices and into possibilities for improving the use of this major resource in the  district. Another phase has been extension field meetings, sponsored jointly by the Bank, the colleges of agriculture and the state bankers associations, to point up the results of the research and to promote action along lines indicated by the  research program. Considerable work has been done on forestry and industry based on the use of forest products as taw materials. Several extension meetings on  forestry have been held under the same kind of joint sponsorship noted for agricul­ tural meetings.  The St. Louis research program for regional development has not, of  course, been confined to the field of agriculture. An effort has been made to gain a basic knowledge of the processes involved in economic growth, especially the  persistence of unequal growth rates within the district, and the role of capital and  »  credit in such processes. Werner Hochwald, Chairman of the Department of Economics, Washington University, was retained as a research consultant to guide the Income   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  6  Studies. Later Guy Freutel, Research Associate of Washington University, was also retained as a consultant to work with Dr. Hochwald particularly on the inter­ industry studies. The research projects undertaken jointly by this Bank and Washington  University constitute a major element of our present regional research program. Under them, the district as a whole as well as large regions within the district  have been analyzed with the help of national social accounting techniques. Smaller areas within the district, less suited for this approach, have been analyzed by com­  piling a large set of economic variables in the hope that intercorrelations of the vari­ ables might reveal some significant pattern of economic development.  Income and Product Accounts — The first national social accounting technique adapted for regional analysis was that of income and product accounts. These accounts for  the Eighth Federal Reserve District have been computed from 1929 through 1952 and presently provide a reasonably consistent time series with which to observe historical  change in the industrial sources of district income and in shifts in the relation of income  and components to population and its characteristics. Input-Output Accounts -- This Bank, working in c-lose cooperation with all agencies  engaged in national input-output work, constructed the first regional model of an inputoutput table for the American economy. In recognition of this pioneer effort, this Bank has been declared one of five research organizations to receive free a complete duplicate  set of all Federal input-output work, with the mandate to explore further uses of input-  output accounting as a guide to regional industrial development. (The other four: Harvard University, Princeton University, University of California, and the Rand  Corporation.)   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  7  Moneyflow Accounts — A system of regional moneyflow accounts would appear most helpful in appraising the role of financial institutions in the district’s economic  development. But the national jurisdiction of many financial and business institutions as well as the nation-wide scope of Federal Government activities, greatly compli­ cate the adaptation of moneyflow accounting to an ’’open" regional economy.  In full recognition of these limitations, an attempt has been made to allocate national moneyflow accounts to the Eighth Federal Reserve District for  certain categories of regional transactors, such as households and unincorporated  business, both of which receive or make relatively few payments from or to "foreigners beyond the district lines. For other transactors, such as national corporations and the Federal Government, the problem of identifying the regional identity of their funds  calls for very tentative estimates of their regional receipts and disbursements.  Both input-output and regional moneyflows accounts, are available only for a very limited period of time. In their present state, therefore, they contribute but little to the understanding of regional growth and development. Once a more  complete time series of these data has been compiled, however, their potential contribution to analyzing regional and interregional change as well as differential patterns of growth appears promising.  Income Estimates and Other Data For Small Areas -- For regional accounting systems, transactions with the "rest of the world" become relatively much larger than in the national accounting process. As the region diminishes in size to the point where most transactions are with the rest of the world, the task of constructing the accounts  finally becomes prohibitive. The analysis of small areas, therefore, calls for different  analytical approaches.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  8  These approaches abandon the double-entry recording of transactions  and, generally, seek single-entry measures of the great variety of local economic  variables which are available. These approaches are used at present for the analysis  of small areas within the Eighth Federal Reserve District.  A great amount of economic detail and its change over time can be sub­  sumed in a series of single-entry local income estimates, structured in terms of income components, industrial origin, income size distribution, and so forth. Such a series, beginning in 1929, is now maintained on a current basis for 99 income areas  within the Eighth Federal Reserve District. Local income data can be related to non-income transactions, such as  retail sales and bank debits, to information on asset holdings, such as car owner-  ship and bank deposits, as well as the "real” data on population and their charac­ teristics, the labor force, physical output, and so on.  In some cases the application of factor analysis by modem computing machines to these sets of descriptive variables for small areas is possible. In any  case, even without further statistical refinements, the inspection of such multiple descriptive series and their relative changes over time is helpful in the evaluation  of hypotheses on economic development. Data on the socio-economic characteristics have been compiled for the 99 income areas of the Eighth Federal Reserve District as a by-product of our work on local income estimates.  Multiplier Effect of the Program Developed on relatively moderate budgets, the program has been picked  »  up and carried on by others as specific results were obtained.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  9  Methods of estimating and analyzing income by small areas, as  developed by this Bank, have been used and adapted to the needs of many states inside as well as outside the Eighth District, such as Arkansas, Kentucky,  Mississippi, Tennessee among district states, and Arizona, Iowa, New York  outside the district. Even in other countries, such as Australia, our work here  has stimulated attempts to use income accounting for purposes of regional indus­ trial development.  The most widespread and pervasive influence of our efforts has been realized through the work of the Southeastern Economic Research Conference. This Conference was initiated by seven southeastern state universities under the  leadership of Professor Martin (University of Kentucky). Since its inception in 1949, the Conference has spent large sums for income accounting and related  methods of regional analysis throughout the Southeast and the Mid-South. Its work has been described in many quarters as a major contribution to southern  economic development. Many specific inquiries about our regional research program have been  stimulated by the publicity given to our work. Our technical advice, for example, has been required and used for more detailed industry studies undertaken by the  "Committee of 100" in Evansville, the Kentucky Agricultural and Industrial Development Board, the Mississippi Power Company, the Cleveland Electric  Illuminating Company, and many other organizations within as well as outside the Eighth District.  I  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  10  So much for the program. If we may define "industrial development" to include what we call "Regional Economic Development," I would say we have a  policy, a program, and a definite role for our Research Department in this field. That role is primarily the pursuit of basic research, the active cooperation of our  people with other groups (public and private) in the field both in basic research and its publication, and active enterprise on our part in carrying the results of research to the people (groups) of the district. You will recall the Knights Templar  were known as "Soldier-Priests." You might call our economics people "StudentMissionaries" (and I hope that their future development is not analogous to the history  of the Knights of the Temple). II. In relation to the industrial development of your District, what does your Bank do in regard to the following: (Please indicate and describe fully activities of the type mentioned engaged in by your Bank and the policy justification.) A. Provision of Statistics 1. Special tabulations of regular statis­ tical data in form differing from that ordinarily published.  We have provided a considerable number of statistical tabulations in form other than that ordinarily published partly to fulfill our responsibilities to the public  generally In the data collection spheres assigned primarily to the Federal Reserve System, banking statistics, and department store statistics. Thus certain tabulations  of bank call report figures for Louisville were recently made semi-annually from 1945 to 1953 and it was agreed to continue to make the summary data available as soon  as possible after the June and December calls. No terminal date on this extra service   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  11  was set. Further, operating ratios of all Missouri banks, member and nonmember,  are provided for the Missouri Bankers Association annually (with the cooperation of  the Federal Reserve Bank of Kansas City and the Finance Commissioner of the State of Missouri). Similarly principal assets and liabilities figures for St. Louis  banks are gotten together at the close of each year for an individual writing for an encyclopedia. Likewise, special tabulations are made on sales by departments for reporting department stores. And so on. The provision of statistics for this reason (primarily responsible for data in these two fields) might or might not be  in relation to industrial development of this district. These examples of tabulations we do not count as part of our regional research program. However, in connection with this program we have made a whole variety of special tabulations. Actually  none have been made in response to a specific request. The requests are more likely to come as general inquiries.  In addition, we have done considerable of this extra tabulation in connection with what we have called regional development. The answers to Section A of  Question II are given with this portion of our statistical tabulating work in mind. a, At the request of member banks  A measurable amount of work goes each year into providing facts and figures for our district banker -farmer meetings (noted above as an important phase of our regional research program). We list these here because the state banker associations are co-sponsors of the meetings. Actually they make requests for us to provide the  programs. The statistical tabulations ate an incident to that end.  »  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  12  P  b. Reporting firms  We do some of this mainly for certain department stores, but, as noted, would not count it as part of our regional research (our ’’industrial development”)  activities. c. Other private firms and associations.  Considerable tabulating work has been done for associations. (Hard to distinguish between private and semi-public associations.) For example, a sizable amount of extra statistical tabulating work and data collection by special surveys was required in the case of the estimates of liquid assets in Arkansas done  for the Arkansas Economic Council and, again, in the study of the disposal of surplus war plants in the South for the Committee of the South. Here again, the request was  for the result, however. The special tabulations we made were incident to providing  the final result.  2. Inauguration of new statistical series serving primarily interests of specialized groups of business. None, but we have had requests to do so, i.e., the vacation-tourist activity  measurement - similar to that now carried on by the Federal Reserve Bank of Boston.  3. Enlargement of current reporting series to provide local data not essential for Bank’s own use. None. To the extent that local data have been produced, and a lot have (that noted under H.A.l.a., for example), they have met our own use as well as that of  others.  »  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  13  I  4. Collection by own staff of other primary data (special surveys) at request of: a. Member banks  Yes. Mainly agricultural information, but some banking. See 11.A. 1.a. b. Private firms and associations  See II.A.l.c. 5. Assembling of secondary information from published Census reports and other published sources at request of: a. Member banks  Again, see II.A.1.a. b. Private firms and associations  See II.A.l.c. 6. Purchase of special tabulations and compilations of statistics from out­ side sources (firms, Census, univer­ sities) for use in industrial develop­ ment by: a. Member banks  » None  b. Private firms and associations  None c. General distribution We have purchased decks of IBM cards from outside sources (OASI and JM United Nations) in connection with our income studies and our input-output work.  The raw data were not for general distribution, of course, but the final result was.  7. At own initiative publishing brochures containing largely compilations of secondary statistical material.  None   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  14  8. Subsidizing collection or working up of statistics for analysis and publi­ cation by another institution or association.  None  B. Provision of Analytical Services 1, Monthly Review articles by own staff analyzing potentials in a particular industry or locality or dealing with community industrial development techniques. The following list would cover the principal Monthly Review articles by  our staff over the past three years dealing with district industries, regional potentials, community industrial development techniques or other aspects of our regional research  program:  1951  Sources, Uses, and Ownership of District Funds in 1950 - Wm. J. Abbott, Jr. and Werner Hochwald Farm Productivity, Income and Investment - Werner Hochwald and J. Keynon Lewis  The Eighth District and the Defense Program - Weldon A. Stein Regional Interdependence and District Development - Guy Freutel  Eighth District Income in 1950 - Werner Hochwald The Shoe Industry and Eighth District Development - Guy Freutel Postwar Changes in Eighth District Agriculture - Donald L. Henry  1952 Postwar Investment Trends and Secondary Reserve Policies of Eighth District Member Banks - Norman N. Bowsher  Sources and Uses of Eighth District Funds in 1951 - Werner Hochwald The Eighth District Balance of Trade - Guy Freutel   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  15  Eighth District Industrial Development and the Defense Mobilization Program  - William H. Kester  Electric Power, A Resource for District Development - William H. Kester Features of the Economic Geography of the Eighth District - Harry B. Kircher  Eighth District Income in 1951 - Werner Hochwald Bank Reserves and the Flow of Funds - Norman N. Bowsher Mechanization of Eighth District Agriculture - Donald L. Henry  1953  Sources and Uses of Eighth District Funds in 1952 - Werner Hochwald  Oil in the Eighth District - William H. Kester From Arkadelphia to Zeigler: A Study of the Place of Cities and Towns in the Eighth District Economy  - Harry B. Kircher  The District Stake in World Trade - Guy Freu tel District Income through a Generation of Change - Werner Hochwald  The Money Market and District Banking - Norman N. Bowsher 2. Monthly Review articles on the same topics by outside personnel. None. (It might be noted here that Werner Hochwald and Guy Freutel, serving  as research consultants to the Federal Reserve Bank of St. Louis, are considered an  integral part of the Research Department.) 3. Preparation by own staff of industry or locality analysis: We do not do, and do not contemplate doing, specific plant location analyses or specific plant solicitation. We have furnished information that helped in such,  however.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  16  a. For member banks None b. Private firms or associations None  c. General distribution at own initiative  None 4. Sponsorship or assistance to industrial and development clinics. None  5. Loan of personnel for industrial develop­ ment purposes to: a. Member banks None in a strict interpretation of "loan.” But there have been numerous  instances of joint, cooperative ventures with member banks usually involving only short trips away from our Bank on the part of our personnel.  b. Private firms None  c. Regional associations  Personnel have been loaned for industrial development purposes to regional  associations. For example, Clifton B. Luttrell was recently on loan for approximately six weeks to the Committee of the South and Frederick L. Deming served at various  times (for relatively short periods) with the Committee of the South, Committee for Economic Development, Greater St. Louis Metropolitan Planning Association, and the Arkansas Economic Council. d. National associations  None  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  17 6. Purchase of specific industrial and/or market analysis from: a. Universities i None  b. Consulting firms, experts, etc. None  c. Other associations  None 7. Sponsorship or partial sponsorship of more general economic studies bearing upon industrial development such as tax systems, etc. Studies to be done by (1) universities, (2) consulting firms, (3) nonprofit associations. None in terms of dollar sponsorship. We have participated in planning and contributed some work; for example, Southeastern Economic Research Conference,  Committee of the South, Arkansas Economic Council, and others,  C. General Questions  1. Does your bank confine its industrial development activities to those arising from specific requests from its directors, member banks, regional, local, and in­ dustrial associations, or has it adopted policy of actively seeking industrial development by searching for air oppor­ tunities? Please comment on basis for policy. Policy as defined in answer to Question I is applicable. We seek and are receptive to specific requests from all sources noted. However, it should, again,  be noted that we do not mean industrial development in terms of an individual plant. By "specific” we mean particular phase of our general or basic research into regional  economic development.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  18  2. If actively seeking out opportunities, what means are used to bring them to attention of interested parties? Are initial contacts made by Bank or through cooperating associations? How are requests for specific contacts handled? Not applicable; applies to industrial development in terms of an individual  plant.  3. In honoring requests for information and aid, what distinction do you make in regard to requests from: a. Directors b. Member banks c. Reporting firms d. Nonmember banks and competing financial institutions e. Other private individuals and business firms f. Local associations, chambers of commerce, etc. g. Industrial associations h. Bankers associations i. Employers associations We do not draw much distinction here. Practically speaking we have not had any specific requests from (c), (d), (e), or (i) and few from (a) or (b) individually.  We have worked mainly with groups to which belong people from all categories listed.  We have worked actively with (f), (g), and (h) and prefer it that way. 4. Is any attempt made to recover expenses connected with industrial development activities? How do you fix charges for  special publications?  Generally "no." There was one instance in which another Reserve Bank was  charged printing costs on a bulk distribution of the booklet "Bank Credit for Soil Conservation," but this was an exception.  5. Is any entertainment expense used for industrial development purposes?  Yes. Our agricultural development meetings (banker-farmer programs) usually involve a lunch or a dinner. This is the only example.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  19  6. At the present time, how many profes­ sional employees are engaged in industrial development work? (Indicate answer in tenths, as 1.5) Using our definition of "industrial development work" (our regional research program), we spend about 25 per cent of our total research salary budget on this  activity. This percentage is split about 18 per cent professional staff time and 7 per cent clerical. Virtually all of our professional personnel and a large share of the clerical staff spend part of their time on the regional research program. None, except Werner Hochwald and Guy Freutel, spend full time on it. Allocating  roughly, the equivalent of 3 professional employees and 3 clerical employees are  thus engaged in this activity. 7. Please list specific projects of an industrial development nature per­ formed in the year ended June 30, 1953. Indicate the cost of each project as nearly as can be estimated (including printing costs where applicable). Costing was not carried out in terms of specific end-products during year  ended June 30, 1953. Again using our own definition of development work and relying on the rough allocations of professional and clerical time shown in the answer  immediately above, it can be estimated that the entire regional research program cost about $30, 000 in salaries in the year period. Further the Monthly Review costs for such months as are listed above (Question n.B.l.) in the particular  twelve-month period selected are as follows, including in each case the Survey  of Current Conditions section printed in each Review:   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  20  July, 1952  Eighth District Industrial Development and the Defense Mobilization Program  $  911.15  Electric Power, A Resource for District Development  1,125.10  September, 1952 Features of the Economic Geography of the Eighth District  1,476.15  October, 1952  1,677.40  August, 1952  Eighth District Income in 1951  November, 1952 Bank Reserves and the Flow of Funds  1,220.65  December, 1952 Mechanization of Eighth District Agriculture  1,266.80  May, 1953  June, 1953   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Sources and Uses of Eighth District Funds in 1952  1,828.85  Oil in the Eighth District  1,259.45 Total  $10,765.55   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  H \ NW  INDUSTRIAL DEVELOPMENT ACTIVITIES OF FEDERAL RESERVE BANKS  Answers to questionnaire on this subject by the Federal Reserve Bank of Minneapolis  Conversations among members of the Board of Directors, the  I.  President, and members of the Research Department of the Federal Reserve Bank of Minneapolis have indicated broad outlines of a policy concerning the role the bank should play in the industrial  development of the District.  These conversations have not led to a  precise definition of policy in this regard.  Nevertheless, sub-  stantive ’’understandings”, both negative and affirmative in character,  concerning the activities of the Research Department in this area have emerged.  It is agreed that the Research Department should develop a program whereby major industrial trends are given intensive study.  These studies should emphasize technological developments affecting industry in the district, more so than normal growth factors of bus­  iness located here or the emigrations and immigrations of firms.  They would not lead to publications of technical papers on engineer­ ing or scientific subjectsj they would rather result in articles on  the economic implications of technological developments which reveal an understanding of their nature and their possible future course.  I  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  -2-  It is also agreed that Research Department personnel should keep in close touch with industrial development commissions and agencies, but that joint undertakings with them designed to attract  or induce the location of firms in the District should not be con­  tracted. Accordingly, the Department has engaged in studies of techno­  logical developments affecting major industries, especially mining,  petroleum, and agriculture. The Department has not entered into arrangements involving exchange of personnel or other cooperation with agencies devoted to industrial development, except that special requests for statistical  information, also made available to others, have been granted. Representatives of industry frequently make informal calls on the Department for information which might be helpful in their own studies, and for advice concerning research or statistical tech­  niques. In general, special studies made by the department have been made on its own initiative and for its own purposes.  Doubtless,  these have been helpful to others in making their own appraisals of industrial developments and for their purposes.  I  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  -3-  II. a.  No primary statistical data directly related to industrial activity in this district are collected by the research department. Since this is predominantly a non-industrial area, it is felt that current trends in industrial ac­ tivity can be evaluated adequately by utilizing statistics obtained from other sources.  Any requests from member banks for special "one time" tabulations of statistics available from our records would be acceded to if at all possible. This would apply to statistics for which we are the primary source as well as to data gathered from other sources. II. A. 1.  b.  Little distinction is made in the extent to which service is accorded requests from member banks, re­ porting firms, or others. In determining whether or not a special request may be satisfied, the availability of data, the work load of the department, and the time limit involved are usually the determining factors. Every effort is made to accede to such requests.  c.  Same as (a.) and (b.) above.  II.  A. 1.  II. A.  2.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  New statistical series are normally undertaken only as they are deemed to be necessary for furthering the ana­ lytical work of the research department. These series might, at the same time, perform the incidental function of providing information which would be of value to specialized groups of business; however, the deciding factor would not be their value to others but rather the extent to which they contribute to the work of the department.  -4-  II  At present, we have no current series directly related to industrial activity in this area. However, if we had assumed the task of collecting basic statistics in a given field, it would be difficult to escape from a sense of responsibility for providing users of such statistics with data which would be of real value generally.  3.  In recent years, no special statistical survey related to industrial activity in this district has been conducted at the request of a member bank or a private firm or association.  II.  A. 5.  b.  As mentioned in l.b. above, every attempt is made to satisfy requests of member banks, private firms and associations, or others for tabulations of secondary information from published Census reports and other published sources.  II. A.  6. a. b. & c.  No special tabulations or compilations of statistics from outside sources for use in industrial development have been purchased.  II. A. 7.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  While no such brochures have been published to date, there is no reason why they could not in the future be compiled and published should it be determined that such a course of action would be desirable.  -5-  II A.  8.  There has been no subsidy of other institutions or associa­ tions for the collection of statistics, although, again there is no reason why this would not be acceptable should circumstances warrant.  1.  Articles of this nature have been written from time to time as part of our program for devoting time to the study of industrial developments in the district.  2.  No articles of this nature have been written. none are contemplated.  II.  B.  II.  B. At present  II.  B. 3.  We have, on occasion, made analyses for given localities at the request of member banks. None of these, however, has been primarily industrial in nature—rather, they have been analyses of general business conditions.  II. B.  3.  II.  b.  Same as (a.) above.  B 3-  c.  From time to time, major developments are analyzed and the results of this analysis are distributed in the form of special publications.  II B. 4.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  None  -6-  II. B.  5.  a. b. c. &  d. None.  II. B.  6.  a. b. &  c.  None.  II. B.  7.  None  1.  Ve have conducted no industrial development activities in recent years. Our role has been that of study and investi­ gation.  2.  None are sought.  II. C.  II.  G.  II. a. As nearly as the work load, the availability of information, and the time limit permit, all requests are granted, regard­ less of source. Requests from directors are accorded a maximum of consideration.  II.  C. 3.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  b. & c.  Requests from member banks and reporting firms aro, Of course, given careful consideration.  -7-  d. to i.  No distinction would be made regarding requests from others  II. C.  4.  No.  5.  No.  6.  None.  7•  None of a truly development character.  II. C.  II.  C.  II. 0.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  KansksCitv  FEDERAL RESERVE 3ANK OP KANSAS CITY  INDUSTRIAL DEVELOPMENT ACTIVITIES OF FEDERAL RESERVE BANKS  I.  Does your bank have a definite policy concerning the role your Research Department should play in the industrial development of your District? If so, who defined it — The Board of Directors? the management? the Research staff? please outline this policy. In general, the Federal Reserve Bank of Kansas City has adopted the attitude that it is the responsibility of the Reserve Bank to develop background information and to foster an understanding of the region or District, the industries important to the region, and the process of economic growth. The Federal Reserve Bank is not an action agency in the field of industrial development; its function in that regard is informative and advisory. Actual steps in the fostering of new industry are most appropriately instigated by various business groups, chambers of commerce, and state industrial development commissions.  The policy followed by this Bank has been formulated by the management of the Bank, with the approval of the Board of Directors. II.  In relation to the industrial development of your District, what does your Bank do in regard to the following: (Please indicate and describe fully activities of the type mentioned engaged in by your Bank and the policy justification.)  A.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Provision of Statistics 1.  Special tabulations of regular statistical data in form differing from that ordinarily published. At request of:  a.  Member banks Data of quarterly averages of loans, investments, adjusted demand deposits, and time deposits, of Oklahoma weekly re­ porting member banks are sent to the Industrial Develop­ ment Department of one Oklahoma member bank for use in an industrial publication issued by that bank. Otherwise, special tabulations are only on very Infrequent requests.  b.  Reporting firms None  c  Other private firms and associations We have some standing requests only very indirectly re lated to industrial development which we fulfill as follows:   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  - 2 (1)  Oklahoma monthly hank dehits and deposits, hy cities, to Bureau of Business Research, University of Oklahoma.  (2)  Oklahoma loans, Governments, and ’’other” securities data monthly to Bureau of Business Research, University of Oklahoma.  (3)  Monthly data of building permits in reporting centers of Colorado to Bureau of Business Research, University of Colorado.  Other special tabulations would he only on very infrequent requests. 2.  Inauguration of new statistical series serving primarily in­ terests of specialized groups of business. None.  3.  Enlargement of current reporting series to provide local data not essential for Bank’s own use. None.  U.  Collection hy own staff of other primary data (special surveys) at request of:  a.  Member hanks  None  h.  Private firms and associations  None. 5.  Assembling of secondary information from published Census re­ ports and other published sources at request of:  a.  Member banks Only on very infrequent requests.  b.  Private firms and associations  Only on very infrequent requests.  6.  Purchase of special tabulations and compilations of statistics from outside sources (firms, Census, universities) for use in industrial development by: a.  Member banks  None  - 3 -  b.  Private firms and. associations None.  c.  General distribution None.  7.  At own initiative publishing brochures containing largely com­ pilations of secondary statistical material. None.  8.  Subsidizing collection or working up of statistics for analysis and publication by another institution or association. None.  B.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Provision of Analytical Services  1.  Monthly Review articles by own staff analyzing potentials in a particular industry or locality or dealing with community in­ dustrial development techniques.  Articles in the Monthly Review and booklets issued separately by this Bank frequently deal with topics relating to economic growth. Some are largely descriptive or analytical regarding the process of economic growth; some attempt to point out or investigate problems in the course of industrial development; and some direct attention to opportunities which exist for ex­ pansion and growth. 2.  Monthly Review articles on the same topics by outside personnel. The preparation of Monthly Review material for publication has not involved the use of outside personnel. Outside personnel was employed on two projects which were not prepared for use in the Monthly Review. One project undertaken for internal use was a study of the economic Impact of the 1951 flood; another was an economic analysis of the Metropolitan Area of Kansas City Present plans of the Bank do not call for further research of this type.  3.  Preparation by own staff of industry or locality analysis for: a.  Member banks None  b.  Private firms or associations  None c.  General distribution at own initiative Some years ago, an economic study of the Metropolitan Area of Albuquerque was undertaken by the Bank.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  - u -  4.  Sponsorship or assistance to industrial and developmental clinics.  None. 5.  Loan of personnel for industrial development purposes to: a.  Member banks None.  b.  Private firms  None. c.  Regional associations None.  d.  National associations None.  6.  Purchase of specific industrial and/or market analysis from: a.  Universities  None. b.  Consulting firms, experts, etc.  None. c.  Other associations None.  7.  Sponsorship or partial sponsorship of more general economic studies bearing upon industrial development such as tax systems, etc. Studies to be done by (1) universities, (2) consulting firms, (3) nonprofit associations. I The Bank assisted the University of Kansas in a pilot study pro­ viding economic information in an area in Kansas by paying the salary and expenses of an economist to work on the project in the summer of 1950* Since that time, the work has been expanded and continued with funds provided for research purposes by the state legislature.  - 5 -  C.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  General Questions 1.-2.-3. Does your bank confine its industrial development activi­ ties to those arising from specific requests from its directors, member banks, regional, local, and industrial association, or has it adopted policy of actively seeking industrial develop­ ment by searching for all opportunities? Please comment on basis for policy.  If actively seeking out opportunities, what means are used to bring them to attention of interested parties? Are initial contacts made by Bank or through cooperating associations? How are requests for specific contacts handled? In honoring requests for information and aid, what distinction do you make in regard to requests from: a. d. e. f. g. i.  Directors - b. Member banks - c. Reporting firms Nonmember banks and competing financial institutions Other private individuals and business firms Local associations, chambers of commerce, etc. Industrial associations - h. Bankers associations Employers associations  Requests for information and limited assistance are honored, from whatever source they arise, insofar as such assistance is in the interest of furthering the understanding of the economy of the District and can be handled within the scope and capabilities of the Research Department staff without in­ fringing on the time required for other responsibilities. The Bank does not actively seek these opportunities.  4.  Is any attempt made to recover expenses connected with indus­ trial development activities? How do you fix charges for special publications? No.  5.  Is any entertainment expense used for industrial development purposes?  No. 6.  At the present time, how many professional employees are engaged in industrial development work? (indicate answer in tenths, as 1.5.) How many clerical and statistical employees? At the present time, no staff time is involved in specific in­ dustrial activities, although members of the staff attempt to keep themselves informed on industrial development and other aspects of economic growth as a part of their over-all re­ sponsibilities .   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  - 6 7.  Please list specific projects of an industrial development nature performed in the year ended June 30, 1953* Indicate the cost of each project as nearly as can he estimated (in­ cluding printing costs where applicable).  "Livestock and Meat Packing in Kansas City"......... "The Economic Effects of the Floods of July, 1951, in Kansas, Missouri, Nebraska, and Oklahoma".... "An Economic Analysis of the Kansas City Metropolitan Area".............................................  $1,700 h-,500 9,500  Federal Reserve Bank of Kansas City February 4, 195^   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Submitted by the Federal Reserve Bank of Dallas  INDUSTRIAL DEVELOPMENT ACTIVITIES  OF FEDERAL RESERVE BANKS  I.  Does your bank have a definite policy concerning the role your Research Department should play in the industrial development of your District? If so, who defined it - the Board of Directors? the management? the Research staff? Please outline this policy. The Federal Reserve Bank of Dallas does observe a definite policy, defined and approved by the management, concerning the role of the Research Department in fostering industrial development of the Eleventh Federal Reserve District. The policy indicated in the preceding paragraph embraces the following principles: (a) The Research Department should represent, in a sense, a storehouse of economic and financial information available to any legitimate user. The Department should have on file or should be in a position to obtain information regarding factors which are important with respect to the location of industry in the District. (b) The Research Department should disseminate in a general way through its publications industrial and other economic information relating to the District which might be of value to persons interested in the economic potentialities of the area. (c) The Research Department should be in a position to provide economic information in direct response to inquiries relating to industrial location problems in the District. The Department is expected to avoid any attempt to direct the location of industry to one part of the District as against another part, except in so far as such economic information provided by the Department may assist the inquirer in reaching his own decision.  (d) Information supplied by the Research Department of the bank should be objective and factual in nature and should be given without any suggestion or recommendation with regard to specific industrial locations or potentialities. II.  In relation to the industrial development of your District, what does your bank do in regard to the following: (Please indicate and describe fully activities of the type mentioned engaged in by your bank and the policy justification.)  A.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Provision of statistics 1.  Special tabulations of regular statistical data in form differing from that ordinarily published. At request of:  a.  Member banks   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  - 2 -  Special tabulations of regular statistical data frequently are made upon request of member banks. Such requests are numerous and cover a wide range of economic data, although individually considered - no one is often particularly timeconsuming in its preparation. The policy justification in this matter is to maintain and build good will, to further economic information among groups in the District, and to provide economic data which may be of assistance to such groups in their planning and operating activities.  b.  Reporting firms See answer to (a) above.  c.  Other private firms and associations See answer to (a) above.  2.  Inauguration of new statistical series serving primarily interests of specialized groups of business.  No. The management of the bank does not believe that the Research Department should undertake to serve as a research agency provid­ ing particularized data to special business or industrial groups at the request of such groups. 3.  Enlargement of current reporting series to provide local data not essential for bank's own use. No, for reason indicated in (2) above.  4.  Collection by own staff of other primary data (special surveys) at request of:  a.  Member banks  No. The potential number of such requests from member banks over the District and the staff limitations of the Research Department make it seem imprudent to the management of the bank to initiate a policy of making special surveys or other­ wise collecting primary data for member banks.  b.  Private firms and associations No, for same reason indicated in (a) above.  5.  Assembling of secondary information from published Census reports and other published sources at request of:  a.  Member banks Such requests involving compilation of secondary information available in the Research Department files are complied with,  - 3 -  provided the work involved does not impose an unreasonable burden upon the time of staff members.  b.  Private firms and associations See answer to (a) above,  6.  Purchase of special tabulations and compilations of statistics from outside sources (firms, Census, universities) for use in industrial development by:  a.  Member banks All statistical data, either in raw form or compiled, pur­ chased by the bank are purchased with the view that such data are primarily needed by the bank for its own operations. Secondarily, of course, such information may be made avail­ able to member banks. No data or economic information are purchased by the bank at the initiation or direct request of member banks.  b.  Private firms and associations  See answer to (a) above. c.  General distribution  See answer to (a) above.  7.  At own initiative publishing brochures containing largely compila­ tions of secondary statistical material.  On a number of occasions in the past, the bank has published economic brochures containing economic information largely compiled from secondary sources covering selected groups of economically homogeneous counties in the District. Such brochures have been prepared in connection with bankers’ forums which were initiated and sponsored by this bank and attended by the principal executive officer of each bank in the selected county area. The' policy decisions underlying the preparation of such material have been based on the opinion of the bank's management that such forums and brochures provided an excellent opportunity by which general economic information regarding different areas in the District might be brought to the attention of leading member bankers for discussion purposes. 8.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Subsidizing collection or working up of statistics for analysis and publication by another institution or association.  This bank does not subsidize the collection or working up of statistics by outside organizations. The management of the bank does not believe that Reserve bank funds should be used for the direct subsidization of economic research by outside groups.  - 4 -  Numerous factors are involved in this decision, ranging from the difficulty and justification of selection on the part of the Reserve hank to the question of the appropriateness of such use of Reserve hank funds.  B.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Provision of analytical services 1.  Monthly Review articles hy own staff analyzing potentialities in a particular industry or locality or dealing with community industrial development techniques. For several years, as a part of the Research Department's general economic service to the District, the Monthly Business Review of this hank has featured special articles dealing with various eco­ nomic subjects including industrial analyses and economic analyses of particular cities in the District. The motive and intent underlying these studies has been to provide information regarding the various economic sectors of the economy. These studies have not been limited to industrial development or the economic growth of cities hut have been well distributed over all economic fields, including banking and finance, agriculture, popu­ lation, income, industry, and business. Consequently, it cannot be said that their primary motivation is industrial development.  2.  Monthly Review articles on the same topics by outside personnel  No. In the Judgnent of the management of the bank, all materials carried in the bank's publications should be prepared by the bank's staff. On a very few occasions in the past, an exception to this general rule has been made when the Monthly Business Review of the bank has reprinted as its lead article addresses by other Federal Reserve System officials or printed statements of the Committee for Economic Development. In each of these cases, however, the address or statement reprinted was of broad, general interest and had no direct relationship to industrial development in this District. 3.  The preparation by own staff of industry or locality analysis for;  a.  Member banks No.  b.  Private firms or associations  No. c.  General distribution at own initiative  Only in so far as indicated in (l) above for publication in the bank's Monthly Business Review. 4.  Sponsorship or assistance to industrial and developmental clinics   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  - 5 -  The hank has not taken the initiative in sponsoring or directly assisting in connection with industrial and developmental clinics and, other than frequently providing speakers at various indus­ trial group meetings, has not been called upon to offer such sponsorship. In the event that such a request should be received, the bank would probably limit its sponsorship to participation with a bankers association or perhaps an educational institution such as a state university - or a bureau of business research of a state university. The bank probably would not co-sponsor such clinics with particular trade associations. 5.  Loan of personnel for industrial development purposes to:  -h.  Member banks No. The bank's policy does not permit the loan of its personnel to outside organizations - even to member banks. As indicated in an answer to an earlier question, it is felt that many factors - ranging from the problem of selec­ tion to the question of an appropriate use of bank funds militate against such a practice.  b.  Private firms  See answer to (a) above. c.  Regional associations See answer to (a) above. In this connection, the bank would approve membership of one of its Research staff members on a regional economic committee, provided such committee involved, in a sense, a public interest, as contrasted with a direct private interest as might be involved in the case of a trade association.  d.  National associations See answers to (a) and (c) above.  6.  Purchase of specific industrial and/or market analysis from* a.  Universities  No, except as such analyses might be released in the form of a publication which would be regarded as essential in connec­ tion with the work of the Research Department.  b.  Consulting firms, experts, etc. See answer to (a) above.  c.  Other associations  See answer to (a) above  - 6 -  7.  Sponsorship or partial sponsorship of more general economic studies bearing upon industrial development such as tax systems, etc. Studies to he done by (l) universities, (2) consulting firms, and (3) nonprofit associations. No.  C.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  General questions 1.  Does your hank confine its industrial development activities to those arising from specific requests from its directors, member banks, regional, local, and industrial associations, or has it adopted policy of actively seeking industrial development by searching for all opportunities? Please comment on basis for  policy. It has not been this bank's policy to initiate and actively seek opportunities for industrial development in the District. As indicated in answers to previous questions, the Research Depart­ ment of this bank undertakes to assemble basic economic informa­ tion relating to areas within the District, the District, and the Nation and to disseminate that information through its publica­ tions and direct correspondence and contact's to interested persons or groups in the District. The initiation of the use of such data for specialized or particular industrial development purposes under this bank's policy rests with the potential user. The basis for this bank's policy in this connection is that it is the management's judgment that the research function of the bank should not include active initiation or sponsorship of a particular industrial development but should be in a position to provide basic economic data for use by appropriate persons or groups. 2.  If actively seeking out opportunities, what means are used to bring them to attention of interested parties? Are initial contacts made by bank or through cooperating associations? How are requests for specific contacts handled?  This bank does not actively seek out such opportunities. 3.  In honoring requests for information and aid, what distinction do you make in regard to requests from: a. b. c. d. e. f. gh. i.  Directors Member banks Reporting firms Nonmember banks and competing financial institutions Other private individuals and business firms Local associations, chambers of commerce, etc. Industrial associations Bankers associations Employers associations  In general, it is the policy of the bank and its Research Department to answer all requests that are consistent with   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  - 7 -  the hank’s policy on such matters as promptly and as completely as possible. Efforts are made to handle such requests in a manner as to avoid distinction as between inquiring groups. If, however, the time factor should re­ quire a scheduling of responses to requests, priority would probably be given in the following order: (l) member banks, (2) reporting firms, (3) directors, (4) nonmember banks and competing financial institutions, (5) bankers associations, (6) other private individuals and business firms, (7) local associations, chambers of commerce, etc., (8) industrial associations, and (9) employers associations.  4.  Is any attempt made to recover expenses in connection with industrial development activities? How do you fix charges for special publications?  Since the bank does not engage in specific, direct industrial development activities such as making special studies for particu­ lar firms or groups, engaging nonstaff members to prepare such studies, or loaning staff members to private or outside groups, the question of recovering expenses in connection with such services has not arisen. No charge is made for the bank's regular publications, such as the Monthly Business Review. Reprints of articles which have appeared in the Monthly Business Review - and such cases have not been confined to industrial development - are supplied to appropriate organizations, such as chambers of commerce, bankers associations, and educational institutions, without charge.  5.  Is any entertainment expense used for industrial development purposes?  No. 6.  At the present time, how many professional employees are engaged in industrial development work? The answer to this question must depend entirely upon the defini­ tion and concept of "industrial development work." If the general operation of the Research Department of the bank involving the collecting, analyzing, and disseminating of basic economic data is regarded as representative of the concept of "industrial develop­ ment work," then it might be concluded that a large part of the time of the bank's professional staff is so occupied. On the other hand, if the concept or definition of "industrial development work" is more specific and pertains directly to the attraction of specific industries or firms to the District or to parts of the District (and I assume that is the concept of "industrial development work" as implied in this questionnaire), then virtually none of the time of the professional employees of this bank would be so consumed. It might be noted that the bank employs five professional economists, two of whom are designated as "Industrial Economist" and "Petroleum Economist," respectively. These men spend most of their time col­ lecting, analyzing, and disseminating information in their respective   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  - 8 -  fields of activity but spend virtually none of their time in direct attraction or solicitation of particular industry to this District. Obviously, to the extent that the general work of these men interests individuals or groups in the industrial or business possibilities of the Eleventh District, they have contributed something to the District’s economic growth, but this is a different concept than would prevail if these men actively "sat in' with industrial or business groups meeting for the express purpose of bringing a particular industry or firm to the District. In line with the above statement and inasmuch as we make no attempt to 'cost account' each particular phase of our staff's work, it is not possible to give a reliable answer to this question in terms of professional employees engaged in industrial development work to the tenth of a person. If a pre­ cise definition of "industrial development work" were provided, perhaps a reasonably precise allocation of time could be worked out over a period, but lacking such definiteness, any such answer would run the risk of being a misleading guess. How many clerical and statistical employees? See preceding answer. 7.  Please list specific projects of an industrial development nature performed in the year ended June 30, 1953* Indicate the cost of each project as nearly as can be estimated (including printing costs where applicable). See answer to (6) above.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  RWICVSCO  December 21, 1953  INDUSTRIAL DEVELOPMENT ACTIVITIES  of the FEDERAL RESERVE BANK OF SAN FRANCISCO  I.  '■  This bank’s policy with reference to industrial development in the Twelfth District  reflects our desire to provide data, analysis, and technical assistance to the community which is consistent with the aims of our research program.  In developing an understand­  ing of the District, a considerable body of information becomes available to us which  can be utilized by others for various purposes, including industrial development.  In  assisting persons or organizations interested in industrial development, we have made  available from time to time special tabulations, extra copies of various studies,  advanced schedules of studies in our research program, and have sent representatives to various committees.  We have had one condition that industrial development groups have  had to meet, namely, that our participation had to be consistent with our regular  research aims.  We have also regarded our position with reference to industrial develop­  ment as one of giving professional advice and assistance, but not as that of an active  promotional agency.  It is our opinion that organizations such as Federal Reserve banks,  universities, and other public bodies with general research facilities ought to contribute information and understanding which permit intelligent development and utilization of resources.  On the other hand, it appears inappropriate for organizations such as ours  to espouse special causes merely because they stem from the same geographic area in  which we are located.  The Twelfth District has been in the forefront in population growth and overall economic growth and activity for many years.  It has therefore been easier to adopt a  policy such as ours than it would have been had the District been faced with the type of  concern about the need for industrial development that has been present in some other parts of the country where less economic expansion has occurred.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  In addition, the veiy  -2-  size our District geographically has been a kind of deterrent to intense and active participation in promotional projects.  To make services along these lines available  to all who might request them, as we probably would have been forced to do, could  readily have led to the need for a research staff many times larger than we have been prepared to consider as necessary or desirable. This policy has been developed over a number of years by consultation between  the Vice President in charge of Research and the President of the Bank. II.  A.  Provision of statistics 1.  Special tabulations of data available in our Research Department will be  supplied to any person or organization with a reasonable need upon their request.  We  attempt to limit such tabulations to data that can readily be assembled or reorganized from information in our hands.  At present we collect only one special series—a series  prepared for the San Francisco Bay Area Council’s Real Estate Research Committee.  This  report covers mortgage lending activities of banks and other institutions in the San Francisco metropolitan area.  We have agreed to this program for two reasons.  It  supplies information to us that we could not obtain elsewhere, and it permits us to  reciprocate for information supplied to us on a confidential basis.  The data obtained  aid us considerably in analyzing mortgage activities. 2.  We have inaugurated special series on a few occasions.  example is an index of waterborne trade.  The most recent  This had been in our program for some time  and the only barrier was developing adequate data.  Port authorities and chamber of  commerce foreign trade groups entered a request for the data about the time we solved the technical difficulties.  The information would have been developed and published  even without the request, but we were gratified that data which we considered valuable to our evaluation of the District economy was actively sought by others.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  -33. We have expanded our department store, bank debit, and weekly reporting  member bank series from time to time.  In the case of department stores and to some  extent bank debits the expansion has been more on a quid pro quo basis than as a direct  benefit to us.  The effort involved in terms of personnel has not been significant and  no added printing or other reproduction costs have been incurred.  It has aided us to  some extent in measuring economic activity in some District areas and has given us channels of information not previously available.  The expansion of the weekly member  bank series represented primarily publication of more data already available to us. Since various officers of our head office and branches as well as the research staff  were interested, the small cost of mimeographing the additional data for general distribu­  tion seems unimportant.  Currently we are attempting to develop an index of industrial production for the Pacific Coast states.  This index is primarily for our own use, but agencies  interested in industrial development have expressed a considerable interest in the  results. 4.  We have no activities in this category.  5.  This is an occasional task performed for anyone with a legitimate request  and without access to the source data.  While we find these requests time consuming  and frequently of little immediate value to ourselves, we do believe that they serve  to enlighten and assist many persons and organizations engaged in various facets of economic research.  6.  No such program exists at present.  7» We do not follow this practice unless it is an integral part of a study  that we feel has merit within the scope of our research program.  have been few and infrequent.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Such compilations  -h-  8. We have not subsidized other agencies, and we have collected only one series for publication by others (see A. 1. above).  Several chambers of commerce and  industrial development agencies republish our statistical reports in whole or in part.  B. 1.  As a regular part of our research program we have published a number of  supplements to and articles in our Monthly Review covering industries which are of  considerable importance in the District economy.  Though almost every one of these  supplements and articles have been received enthusiastically by industrial development agencies, these studies have been designed to develop a better understanding of the  District economy rather than to suggest particular fields that hold promise of develop­ ment potentialities.  We have avoided discussions of particular localities as such  because of the size of the District and the involvement in minute area studies to which  it might lead because of competitive demands for attention.  2.  We have done practically nothing of this kind until recently.  We are now  about to publish a supplement to our Monthly Review entitled, "International Commodity Developments and California Agriculture."  This has been prepared by an outside economist.  It will find considerable use among state and local chambers of commerce and similar agencies.  3.  We have not prepared articles in terms of (a) or (b).  Our work under (c)  is covered in B. 1. above. 4.  We do not sponsor industrial development clinics.  Our research staff holds  memberships in a number of committees interested in industrial development.  is a member of the Board of Governors of the San Francisco Bay Area Council.  The President The Head  of the Research Department is Chairman of the Subcommittee on Research of the Plant Location Committee of the California State Chamber of Commerce.  Members of our research  staff have participated in community development clinics as speakers or panel members.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  -5We have not loaned personnel to any outside organization for the purposes  5.  Our staff has examined, reviewed, or even drafted questionnaires,  referred to.  memoranda, and occasionally reports for industrial development groups of which they  may be members.  C.  6.  None.  7.  None.  1.  The work of this bank has been limited to that done in response to direct  requests for information, comment, or consultation from persons or organizations with  a valid interest in industrial development.  As indicated in our policy statement, we  do not consider ourselves a promotional agency.  There are sufficient organizations  engaged in developing prospects and we can see no part that we might appropriately play on this score.  2.  Not applicable.  3.  No distinctions are made in terms of the person or organization if the  request appears valid.  We will not, however, accept membership in any organization  which represents, a limited interest group or which is not engaged in work for the general good of the community.  4.  Our direct expenses in this connection appear too limited to merit consid­  eration as reimbursable items. 5.  No.  6.  About 20 percent of the time of one professional employee (including the  time of all so engaged) and 20 percent of the time of a clerical employee can be  regarded as unequivocal direct personnel time. 7.  Mortgage lending report for Bay Area Council about (no printing cost) Consultation on community survey program, California State Chamber of Commerce (no printing costs) Assisted in the development of bibliography of statistics for Port Promotion Department of San Francisco Chamber of Commerce (includes $20 mimeographing expense)   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1300 $100  $150  -6No other projects seem suitable for enumeration since most of articles and  supplements were not originated with industrial development as a primary aim.  Neither  meetings attended, consultations or data supplied to developmental agencies have been listed above under projects.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis