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TA) meeting of the Executive Connittee of the Federal Reserve Board 1.418 he. in Washington on Tuesday, October 11, 1932, at 3:45 p. PRESENT: Governor Meyer Mr. Hamlin Mr. Magee Mr. Lorrill, Secretary Mr. McClelland, Assistant Secretary Mr. Harrison, Assistant to the Governor. PRESENT ALSO: 'Ir. Burgess, Deputy Governor of the _ederal Reserve Bank of New York. 1114 Burgess stated that Er. Walter C. Teagle, Chairman of the SharetliE4c/rk Committee of the Central Banking and Industrial Committee, had cli8ctlased informally with the Federal Reserve Bank of New York the question °r obtain 1/1 its cooperation in a campaign to spread work which it is contil)14teci will be inaugurated among the banks in New York. Mr. Burgess 11/411 ated that it was felt that the attitude of the Federal Reserve Bank "ell York would be considered as a factor of material importance in the aq Qeess of such a campaign. clesire np the He said, however, that while it was the Committee to procure the cooperation of the various banking illatItIlt"ns 'the committee had not advocated any particular plan by which the l'e8u1t should be attained, but on the other hand had taken the view tbt the data118 Were matters for each institution to determine, the interested primarily in the accomplishment of the purpose 111111%7. Or the In the circumstances, Mr. Burgess stated that the official staff Pederal Reserve Bank of New York had been considering informally ke thocia ch 1 increased employment could be effected in the bank's and had worked out in a tentative way a plan which, however, 1114(1110t been Put in final form and had not yet been submitted to the board cir (ill'egtors 440414 be rorOf the bank. He said that it was thought that this Plan a s pecifically limited period, probably for the six months 10/11/32 -2- ttmilliovember 1, 1932, to April 30, 1933, inclusive. Under it the present (311king week of 5 1/2 days would be reduced to 5 days without, however, Q114118ing the present banking hours or closing down on Saturdays, it being t4e Idea th ct the one-half day reduction should be taken by all officers end eD1Ployee at such tines during the week as the proper conduct of the WOrk of the various departments would permit. Under this plan he felt that 'P10 nt for approximately 100 additional people could be provided in %tier to take care of the work now done by the existing organization. He '131.11ed that while it would seem theoretically that a reduction of one114111 daY 8hould require the employment of an additional number of people e(lilralent to one-eleventh of the present organization, or approximately 4(1(litional employees, 100 would suffice because of the falling off in or w°rk in certain departments which has taken place, together with thethat to SOMB extent the organization is maintained on a basis of 13rel€11'cttl°r1 for peak activity. He also stated it was not contemplated allY additional officers should be put on but that the employment of 1° -- People should be confined to the lower ranks. He left with the addressed to Governor Harrison by Assistant Deputy GoverliorInellloranaitm 3.0nes, in which it was stated the salaries of such additional elqq0 a 4. Yeea w0 41d range from 720 to ,2,200 per annum, which would result in audition to the payroll of about 465,000 for the six months. 4t4teci +, rtli at 311100 6 He the required working time would be reduced by 1/2 day it col/tended that this should result in a reduction of a corresponding entEl s' or one-eleventh, in the compensation of the existing employees, t' 48 811oh a reduction would be unnecessary to enable the bank to 0Ett, : the Plan, it was thought fair that all officers and employees 332 10/11/32 tE14 a reduction of 4c,) in their comensation which would provide the sum Of SEI59°00 required for the employment of the additional 100 people. In till's co nnection, he said that in other banking institutions in Yew York 411 for/11s of bonuses had been discontinued and pointed out that there had been 11 l*eduction in the cost of living that should more than offset the 4'1 N4ction, aside from the benefits of the shorter working week. At the conclusion of the discussion, Governor Meyer and Fr. ragee 144e4ted that they were inclined to look favorably upon such a plan if it Were re c°Mmended by the board of directors of the bank. Mr. Hamlin stated 144t he W°1114 like to reserve decision in order that he might give the matter consideration. At this Point Er. Burgess left the meeting. The members of the Committee then discussed sending Mr. Walter R. 44IThler) of the Board's Division of Research and Statistics, to Geneva at the tirle or the meeting in October of the preparatory committee of experts the ihter national monetary an.d economic conference, for the purpose of °11tEtihing first-hand information for the Board regarding its deliberations elicl regarding financial conditions in various European countries. The t° hAire a members present were of the opinion that it would be desirable x.epresenta,tive of the Board on the ground, not officially °411eeted with the committee or any delegation, and it was voted to author11'Grclner to make the trip, with the understanding that he will take 11° nart 11111 44/15 no any . - )roceedings of the committee referred to, that he official connection with any delegation thereto, and that he 11111 be Without recommendations of that committee authority to join in any tO eXprerla Eity OP on behalf of the Board or the Government, although illi°118 10/11/32 _4- tilere is no objection to his renderinL; assistance informally to the members 44(18t4fr Of the Anerican delegation in any proper manner. Thereupon the meeting adjourned.
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