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J Public Relations Work ■ ■ ■ Report of the Committee of Federal Reserve Agents https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Printed by order of the Conference of Federal Reserve Agents held at Washington, Dec. 4th, 1916 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PUBLIC RELATIONS WORK Report of the Committee of Federal Reserve Agents Chicago, Ill., July 14, 1916. TO THE FEDERAL RESERVE AGENTS: Your committee begs leave to report as follows: It has. visited the Federal Reserve Bank of Minneapolis, and has made an investigation of the system of public relations work in operation under the direction of Chairman Rich. It finds that the statements of this work made by Chairman Rich before the recent Third Conference are fully substantiated, and that the methods which he follows are producing very. satiS""factory results in District No. 9. Your Committee attaches hereto three memoranda prepared by Chairman Rich, one covering the scope and objects of public relations work, one covering the methods of public relations work. in Federal Reserve Banks, and one covering • suggestions for possible extensions of this kind of activity. It believes that so far as the details of the practical conduct of such activities are concerned, that they are well set forth in these memoranda. As principles upon which these activities may be properly founded, your committee reports as follows: 1. This work should not be a casual or incidental part of the duties of the Reserve Agent. A man should be assigned to the work to give it such attention as is required, and who will be charged with its responsibility. He may be a inan who is already in the bank, who can be trained and developed, or, if necessary, a competent and experienced man can be hired from the outside. He should be a man who can demonstrate his judgment and discretion (preferably one who understands newspaper methods), and who can stand in a close and confidential relation to the Reserve Agent. 2. A system of co-operation should be established between the Reserve Banks that are best posted and are successfully prosecuting this kind of work, and the banks which ate not so well posted and desire to engage in it. This would imply that the banks able to render assistance should hold themselves ready to contribute their advice and suggestions as requested by other Reserve Banks. 3. There should be a system for the interchange of material, information, ideas, methods of work, good suggestions, and the results, pro and con, of practical experience in these activities. The purpose should be to gather together all the practical informatio"n and all the good ideas that develop in any Federal Reserve Bank and make them available to all the Reserve Banks. 4. Such men as are detailed or employed on this work should be called together for a conference at Chicago, with Mr. Mosher of the Ninth Bank present. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 5. Any moderate expenses that may arise out of the handling of the preliminary work of establishing activities along parallel )ines should, with the consent of thy Reserve Agents interested, be pro-rated upon the banks fer wham the service is afforded. • • As to the details, and the practical side of the establishment and conduct of this ~ork, your committee does not believe it is necessary to report at this time, other than. to call attention to the memoranda by Chairman Rich attached hereto, and to suggest that these will be settled according to the best judgment and. experience of the Reserve Agents directly concerned, and the men whom they assign to this work, and that these matters, will adjust themselves in the orderly de- . velopment of this subject. • In conclusion, your committee begs leave to report that the system of work employed by Chairman Rich is produc-tive of substantial results for the Ninth Bank, and is of such a ,character ,.that it. can be adapted as conditions may necessi-, tate, and· applied in any Reserve District. Conducted with •judgment, keeping in mind that such publicity ·might be mis-. construed and harmful to the ~ystem, and ~with careful attention to the purposes which it can be made to serve, your committee believes that this is a desirable work, and that all the Federal Reserve Banks might well engage in it, but would suggest that great care should· be given in establishing it to provide for such conduct and supervision of the work as will guarantee that it is properly founded, and that it begins with the best opportunities of success. , It would probably be advisable, in view of this suggestion, and where this work is new, that it be introduced upon a moderate scale and expanded as experience may· warrant. Respectfully submitted, C. H. BOSWORTH, Chairman, WILLIAM McC. ·MARTIN, CHARLES M. SAWYER: 4 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • Public Relations· Work in the Federal Reserve Banks BY JOHN H. Rrcn 1. Scope and Objects. General The strength of the Federal reserve system will be in a measure proportionate to the confidence of the general public in the respective Federal Reserve Banks. Each Reserve Bank performs two kinds of functions. The first, of a purely banking sort, relates almost exclusively to the mem·ber· banks. When these have been discharged, practically all of the remaining -activities of the bank are of a character that directly affect the welfare of every citizen. Because of the very broad public service the· reserve banks are designed to render, it is desirable ,that they have at all times the best and most substantial degree of public support and confidence. Such support will be limited unless it is possible for the public to clearly understand and appreciate the service that the reserve banks are rendering. Public relations work aims to create conditions under which a Federal reserve bank can operate with the best degree • of efficiency. It seeks the co-operation and support of the public and the friendly interest of the member banks. It aims to ,create a favorable public opinion and to awaken an appreciative interest among members, and ha-ying accomplished those purposes, to direct this opinion and interest in such a way as to best serve the purposes of the reserve bank. In seeking to intelligently direct public opinion, it exerts at the same time an educational influence, that the support thus created may not only be substantial, but intelligent as well. Objectives Public relations work should not be undertaken without definite objectives. These objectives may be: (a) The building up of state bank membership. (b) The education of members to the proper use of dis-: counting facilities. • (c) The education -of the public as to the public service, as distinguished from the banking service, rendered by reserve banks. ( d) Preparing the way for the introduction and use of new facilities, such as trade acceptances, etc. • • • ( e) Facilitating the introduction of enlarged facilities as represented by· the par collection of checks. (f) The education of the public as to tµe significance of · the functions performed by reserve banks, and the intelligent employment of such facilities as· it affords for public use. (g) Correcting and directing the trend of opinion among member banks. (h) To exert the requisite degree of control upon both https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5 5. Any moderate expenses that may arise out of the handling of the preliminary work of establishing activities along parallel Jines should, with the consent of th~ Reserve Agents interested, be pro-rated upon the banks fer whom the service is afforded. As to the details, and the practical side of the establishment and conduct of this 'York, your committee does not believe it is necessary to report at this time, other than to call attention to the memoranda by Chairman Rich attached hereto, and to suggest that these will be settled according to the best judgment and. experience of the Reserve Agents directly concerned, and the men whom they assign to this work, and that these matters, will adjust themselves in the orderly development of this subject. • In conclusion, your committee begs leave to report that the system of work employed by Chairman Rich is produc-tive of substantial results for the Ninth Bank, and is of such a ,character Jhat it can be adapted as conditions may necessi-, tate, and, applied in any Reserve District. Conducted with judgment, keeping in mind that such publicity might be mis-. construed and harmful to the system, and with careful attention to the purposes which it can be made to serve, your committee believes that this is a desirable work, and that all the Federal Reserve Banks might well engage in it, but would suggest that great care should· be given 1n establishing it to provide for such conduct and supervision of the work as will guarantee that it is properly founded, and that it begins with the best opportunities of success. . , It would probably be advisable, in view of this suggestion, and where this work is new, that it be introduced upon a moderate scale and expanded as experience may· warrant. Respectfully submitted, C. H. BOSWORTH, Chairman, WILLIAM McC. ·MARTIN, CHARLES M. SA WYER: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4 • Public Relations· Work in the Federal Reserve Banks BY JORN H. Rrcn 1. Scope and Objects. General The strength of the Federal reserve system will be in a measure proportionate to the confidence of the general public in the respective Federal Reserve Banks. Each Reserve Bank performs two kinds of functions. The first, of a purely banking sort, relates almost exclusively to the mem·ber· banks. When these have been discharged, practically all of the remaining -activities of the bank are of a character that directly affect the welfare of every citizen. Because of the very broad public service the· reserve banks are designed to render, it is desirable ,that they have at all times the best and most substantial degree of public support and confidence. Such support will be limited unless it is possible for the public to clearly understand and appreciate the service that the reserve banks are rendering. Public relations work aims to create conditions under which a Federal reserve bank can operate with the best degree • of efficiency. It seeks the co-operation and support of the public and the friendly interest of the member banks. It aims to ,create a favorable public opinion and to awaken an appreciative interest among members, and ha-ving accomplished those purposes, to direct this opinion and interest in such a way as to best serve the purposes of the reserve bank. In seeking to intelligently direct public opinion, it exerts at the same time an educational influence, that the support thus created may not only be substantial, but intelligent as well. Objectives Public relations work should not be undertaken without definite objectives. These objectives may be: (a) The building up of state bank membership. (b) The education of members to the proper use of dis.: counting facilities. • •• (c) The education of the public as to the public service, as distinguished from the banking service, rendered by reserve banks. ( d) Preparing the way for the introduction and use of new facilities, such as trade acceptances, etc. • • •• ( e) Facilitating the introduction of enlarged facilities as represented by· the par collection of checks. (f) The education of the public as to tµe significance of · the functions performed by reserve banks, and the intelligent employment of such facilities as· it affords for public use. (g) Correcting and directing the trend of opinion among member banks. (h) To exert the requisite degree of control upon both https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5 . public and banking opquon 'in matters affecting the development of the reserve banks in their own fields. These purposes will alter and change as the requirements, of each reserve bank may determine. Considered as suggestions, they serve to indicate that public relations work ~long the right lines can be made very serviceable. This line of effort may. be considered in both an offensive and defensive light. It has already proven an· effective weapon against ill-considered and unjustifiable criticism; while on the other hand,· it has had great usefulness as an educational instrumentality, ·both with the public and with member banks. Publicity There is a sharp distinction between publicity and public relations work. Publicity is ordinarily considered to consist of a little more .than the preparation of material which newspapers are persuaded to print. Public relations work, as herein contemplated, is of a broader and more serious character. • So far as the Federal Reserve Act is concerned, and the· regulations of the Federal Reserve Board, it is clear that a Federal Reserve Agent might capably and efficiently perform all the duties that are specifically assigned to him, and still occupy in a Federal Reserve Bank a position involving no duties that could not be discharged by an experienced auditor of requisite character and integrity. The Federal Reserve Board was empowered to exercise very close supervision over the operations of each reserve hank, and was established as a governing and controlling authority. Within broad lines, it has delegated this leadership and authority, in each reserve bank, to its representative, the Federal reserve agent. The responsibility for leadership, in all the bro,tder activities of the bank, therefore. falls upon the Federal reserve agent. Public relations work is practically the foundation upon which the Federal reserve agent is to perform this service. He cannot work effectively without· a receptive attitude on the part of member _banks, .nor can_ he efficiently cover the broad field assigned to him without the friendly interest of the public. While he will have the active and valuable co-operation of the Governor, and of the other members of the banking staff, the responsibility of leadership -naturally falls on him, in the task of building l!P state bank membership and worl<:ing toward the creation of a single banking system, in the slow process of creating relations with member banks under "7hich the reserve banks can build up a volume of business and acquire their maximum usefulness and efficiency, in the preparation of the way for the introduction of new ideas and new methods, and in tne large field that is represented by the contact of the reserve agent, as the representative of the supervising and governing authority in Washington with the public. Public relations work is in a large measure the work of creating conThe Federal Reserve Agent https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 6 ·ditions under which these responsibilities can be discharged with the best effectiveness. Each Federal reserve bank has been handicapped since organization by certain obstacles, among which is a lack of clear and precise understanding of the law among the member banks themselves. - The provisions of the Act are not understood. Its purpose$ are not dear, especially to the country bankers, and there is a deficient knowledge on their part of the working of the reserve banks. Because of this lack of knowledge they are fair prey to every criticism of the reserve system, whether well founded or not, and it is noticeable that even at this time many of them believe that the r~serve banks are purely emergency institutions, that the country banks ordinarily have no paper of the right kind for rediscount, that the system of rediscount is involved and difficult, that contact with the reserve banks involves such red tape, that the reserve banks are too expensive in operation, that the check clearing plan is improperly founded, that it is an injustice to deprive them of exchange charges and of interest upon balances with correspondents, that the drift and tendency of the reserve system is to cut interest rates without compensating advantages. and that they have been handicapped, so far as the National banks are concerned, by being compelled to enter a system in which membership involves difficulties and loss of profit, and does not provide new opportunities for satisfactory earnings. It is apparent that there is a large amount of slow, hard work that must be done before the first point-that of creating a satisfactory working understanding with members-can be realized. A reserve bank that is not equipped to meet these objections, or to face annoying situations as· they may arise, from time to time, must necessarily exhibit a certain degree of helplessness. It is fair, at least, to conclude that the progress of the reserve banks, the development of the volume of business with members, and to some extent, the growth of their earnings, will be proportionate to the ease and facility with which these misunderstandings can be cleared away and causes of friction eliminated. \Vhile much misunderstanding has already been eliminated, it is very likely true that each new regulation of t~e Board and each new attempt to broaden the activities of the reserve banks will create its own problems, the solution of which will be simplified where the cre~tion of such problem is foreseen and adequate steps ta¼:en in advance. The vital defect of most of the campaigns of public relations work unde~taken in the United States in th~-last 15 years is that those interested have waited until the last moment before acting. They have then asked expert men to do the im:.. possible thing of changing public sentiment, after it has already shown, a distinct set in the wrong direction. Public relations work in time would have been· much less expensive, and vastly more productive, in numerous familiar instances. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 7 Advantages There are certain advantages on the side of the Federal reserve banks in any work of this character .. The popular mind regards them, at least, to a very large extent, as Government banks. The public usually supports the Government. The reserve banks have had a favorable introduction to the people. It is comparatively easy to augment this friendly ·interest. Jt. is _very noticeable that in the work so far undertaken, help is being received from the most unexpected sources. In behalf of the FederaJ reserve banks, it has been possible to avail ourselves of the active assistance of very many men 'who, b~cause of their own responsibilities and business activities, would ordinarily be quite indifferent. The willingness to extend such support is particularly noticeable on the part of the press-it seems to be almost a fi.~ed rule that these banks are' entitled to and must receive editorial 'support. The peculiar organization of the 'Federal reserve system presents both advantages an'd disadvantages. It is clear that a centralized system of public r-elations work would always be at some disadvantage through the inability of an officer in Washington to intimately know the conditions in each district, and properly take advantage of- them. Without the most careful supervision, there would be the inevitable tendency that mainfests itself in other departments of Government activity, to allow such work to fall into routine lines with resultant loss of efficiency. Plans of Work The Federal reserve banks are so located, geographically, that the problem of creating harmonious and uniform lines of work in the twelve different institutions presents difficulties. To indicate the details of an effective and inexpensive system of publicity, in a suggestive memorandum, would be purposeless. The- best judgment would, however, agree upon the following general features: • 1. While the work in each of the reserve banks should be conducted along harmonious lines, the adoption of the same plan, with the same details, for each institution, is not practical and would not produce results. 2. _Each reserve bank should therefore, conduct its work as an independent unit under some form of central supervision or co-operation that will provide for an interchange of ideas and methods, and insure the directiol} of these twelve forces along lines that will produce harmonious results. 3. While still preserving the independence of each reserve bank in the conduct of its own work, it would be possible, without the expenditure of either a great deal of money or effort, to acquire a knowledge of conditions in each district, to advise in the selection of men in each reserve bank who could be educated to do a large amount of· good work, and to establish some plan for the exchange of the best ideas and methods. If ceptralized co-operation had no other object than https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 8 to create a clearing house for the gathering and distribution of good idea~, it would be of great value to each reserve bank. A considerable amount of such material would, in. the nature of things, be just as available in all of the reserve districts as in any one. It is essential that the cost of such work be· kept with'i~ the narrowe.st possible limits. Due to the natural advantages that the Federal reserve banks have, the expense of the work so far comiucted by the Ninth Reserve Bank has been insignificant. This serves to illustrate the practicability of creating methods for each of the other reserve banks that will involve little, if any, expense. It will probably be difficult to bring about harmony of action between the different reserve banks and secure the adoption of simifar methods of work, unless the subject is taken over by some ,central committee in behalf of the different reserve agents. Such a committee could inform . the different banks of the plans and methods which it believes to be prac-tical, and could suggest ways in which the twelve· banks inight work along parallel lines. Under the supervision of such a committee, it would be comparatively easy to gather together and sort useful material, so that each bank might be put into possession of the good ideas that come to the attention of any one. In conclusion, it seems to be clear that the most effective method of work will be that of making tach reserve agent responsible for the public relations work in his own district, but with such expert help as can be afforded him, and with such co-operation· as will insure uniformity and the best results. The volume of work involved in each case will probably not be great, and would not ordinarily require the employment. of additional help. It would probably prove true that there are men in the reserve banks who, with proper coaching and some training, can be made very effective in this line of work. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 9 Lines of Public Relations Work - Open to Federal Reserve Agents Bv JORN H. R1cH General Advantages should be taken of the local characteristics of the district.. Where there are commercial centers, there are commercial organizations. Where there are transportation centers, there are traffic oganizations. Whert there is a center for distributing business, there are strong credit organizations. Even in small towns, .there are business men's clubs, and where agriculture is importantJ there are numerous kinds of growers' and producers' associations, each interested in a special kind of activity. Banks are usually grouped by districts, and hold periodic association meetings. In large centers where banks are numerous there are usually bankers' clubs. Spotting a map of a reserv.e district, with dots indicating the location of class, public and special organizations of business men and farmers, will indicate that the pqints at which there are organized groups of men who are active in agricultural production or in business and banking, are numerous and well distributed. These points indicate opportunities of reaching the public. With slight effort, the reserve· agent can arrange to address such organizations on questions that broaden the public knowledge of the Federal -Reserve Act and the operations of the Federal Reserve Bank. One successful effort is usually followed by invitations opening the way to another. As this kind of work grows, i1;1formatio•n spreads rapidly and the Federal Reserve Bank is brought iPlto touch with the leaders in numerous communities, and with those who form public opinion. This line of work has been carefully followed since the organization of the Ninth Bank with the result that more thari 125 such addresses have already been made, largely by the Re·serve Agent, and his assistant, reaching audiences representing banking and all classes of business. In the Ninth Bank we have even gone so far as to address one or two of the representative labor unions, using for a subject the influence of the Reserve System in ,creating stable conditions of employment and in protecting. labor from losses, such as usually follow periods of stress. The difficulty has not been to find representative bodies through which to work, but to take care of the invitations that come. It should be borne· in mind that the audience reached by the speaker is comparatively small. Because of this, it ha& been the practice of the Ninth Bank to prepare manuscript addresses. Copies of these manuscripts have been prepared and given to the newspaper press for release upon .the day they were to be delivered. While the Reserve Agent may have spoken to• 100 men, the address, when printed, has been carried very frequently to the remote corners of the d_istrict and has reached many thousands -0f people. In fact, one of the reasons for mak10 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ing public addresses is the incidental opportunity to reach an immense number of business men through the public press, with a condensation of • the practical information presented ve,rbally. It has been found valuable to occasionally print and r-eproduce addresses in pamphlet jorm, for 'the purpose of summarizing _the useful activities of the reserve banks from time to time. It is our practice to maintain a special mailing list covering fiusiness men and others in the Ninth District, who are influential and who have a special interest in the Reserve Bank. Where friends and acquaintances are made through public addresses, or through other forms of work, their names are carefully recorded and they are supplied -from time to time with material of this character to read at their leisure, and with which to refresh their minds on the progress the institution is making. An investigation of the district will reveal the location and limits within which each principal newspaper. has influence. On spotting up the map, _it becomes easy to ascertain what selection . of newspapers cover the district as a whole. \¥here there are gaps and vacant areas, it is possible to fill them in by selecting the best of the local publications. By_ this process, a closely restricted list of newspapers. can be built up, which to the certain knowledge of the Reserve Agent, will reach all parts of his district and the business men and farmers therein. Personal touch with the editors of these selected newspapers-always without solicitation of services-soon builds up friendships.that open a convenient way to the use of the news and editorial columns of such papers. This process soon affords a dependable newspaper list, which will not only use what is given it in the way 9f statements for publication, but wjll solicit inform~tion and voluntarily open the way to reach their readers. The value of the process is that it avoids the necessity of broadcast requests for the publication of Reserve Bank news. _ It frees -the b_ank_ from any criticism that it is "s~eking publicity." This process gave the Ninth Bank the equivalent of 61 newspaper pages· of good material in nine months, and was then utilized only in an incidental way and without any special effort. Reserve banks are public in a sense. The average man is interested in them. It sqould, therefore, be the policy to s~tisfy his interest by giving him all the information of their curcent operations, etc., that can be released without embarrassment to the bank or its interests. Such news, if properly brought to editorial attention, is more valuable to the newspapers than the average grind of commercial bank news, becau·se of the interest of the public above referred to. Reserve banks have contact with a broad field, and are _in a position to collect much more valuable information than the ordinary commercial bank. Friendly relations with the newspaper press are usually founded on a give and take process. The press • expects news. The Reserve Agent who keeps this in mind, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 11 and is judicious in his selection of the newspaper representatives with whom he will have friendly relations, will have no difficulty in having the work ot his bank brought to public attention. This applies more 'particularly to the larger newspapers in ,centers where reserve banks are located. It therefore appears that the Reserve Agent should have an accurate knowledge of the. organizations of his district, and should take membership in a few of the best, distributi!lg such memberships in such a way as to have personal touch with banking, credit, general business, traffic, producers and farmert' associations. These membership relations will give . him opportunities for promoting sentiment and stirring -up beneficial discussion, which will come without effort. He should. be represented in the best local commercial organizations, and should take an interest in its work and serve on its committees as a matter of policy. / He sho_uld. spot up a newspaper map of his district and get on the proper personal footing with the important editors. He should have a good knowledge· of their work, the policies of their papers and .the subjects of special interest to them. He is thus equipped to develop publicity opportunities along the most effective lines. He should invite such editors into his bank, and seek to have them learn from personal observation how a Reserve Bank works and what it does. The education on both sides is valuable, and soon produces opportunities for co-operation that bring results. • The daily progress o( the Reserve Bank should be watched with the question in mind, "What is thert here that the public has a right to know and would be interested in?" The dissemination of such information as can properly be released p-roduces a constant stream of information, going out throug~ the medium of reporters for the local press, who call daily, or should do so . . Where matters occur that justify broader newspaper attention, statements should be made, and mailed, marked for release locally out in-the dis_trict on the's~me date and at the same hour. The outside newspaper is jealous of the better facilities of the local newspaper and appreciates equal courtesy and equal treatment. Co-operation with the newspaper press can be indefinitely extended. Press associations form an extremely valuable channel through which the public can be given informqtion about the current activities of the Reserve Bank. In the Ninth Reserve District the- bank and the important press associations are working in co-operation, and the Reserve Bank articles are sent for use every Monday morning to all of the ·daily papers served by the association; and are condensed in shorter form for all .Jhe weekly papers. The newspapers thus served amount to 800. • , Through co-operation with- a leading daily newspaper, a Reserve Bank article, which is prepared so that it contains some- thing fresh and UP' to date for each Monday morning issue, is duplicated by the newspaper in advance and forwarded, at its https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 12 expense, to some 63 daily newspapers within the <!jstrict. The article appears in Minneapolis, and in these outside newspapers in the morning issues of the same daie. The ~ystem has been found to give soine prestige to the strong Minneapolis _newspaper that affords this service, and has been very valuable in spreading information about the Ninth Bank. • • These Monday morning articles take up subjects of current interest, such as the development of the check clearing plan,· the acceptance question and other developments that are of public interest and importance. , The directorates of principal banks should be listed. The names usually form a pretty good .list of the best men in each community. These lists, .carefully revised, can be kept within moderate limits and still show the names of the men whose opinions count. These men should be supplied at intervals ·with comments of value on the Reserve System. or the bank of the district. When this work is carefully done for a six months period it usually begins to ap-pear that there has been valuable discussion as a result. The cost is negligible: . Agricultural organjzations should be listed in the same way, with careful selections of the men who are influential in shaping their policies. Such lists are invafoaple at times and are of frequent use for the distribution of pertirr'ent material. . Officers of trade and commercial organizations, with their directors, form an additional list of value. _ Observation and discussion would indicate that· the general subject of public relati'ons work could be very greatly assisted if Reserve Agents would take the time and trouble to get ·out over their districts occasionally, and talk to their more important members and the more influential business m.en at local points, in their own offices. Where such visits occur it is •noticeable that the local people are very appreciative. Usually the opportunity of saying an effective word or clearing up misapprehensions presents itself. Even in the larger districts, the important • centers at least, could be reached in this personal way once a year or so. Where there are districts in which not more than a third of the member bankers have ever been inside the Reserve Bank this work ought to be especially productive . . Summarizing the subject: The Reserve Agent cannot afford to press public relations and publicity work to a point where his effort is apparent. His position and responsibilities are im-. portant and dignified. He should rather, by quiet and judicious work, seek to have opportunities for accomplishing these re~mlts present themselves without his solicitation. This can .be done with little effort through the systematic building up of the right personal relations. He should keep in mind at the same time the interest of the public in the Reserve Banks, and seek to, have _ 1iis list of callers include not only bankers who want to talk about rediscounts, but business and professional men, mamifacturers, and -others who are influentia1 locally, with whom he can discuss what the Reserve Bank is doing to facilitate business and sµpport the current activities of the district better than before. 13 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Suggested Extensions of Public Relatfops Work_ Bv JoH~ H. RICH - Once properly established, public relations work in a Federal Reserve Bank may be indefinitely extended. The growth of these activities, the manner in which they may be adapted to the opportunities presenting themselves from time to time, or to the changing necessities of the Federal Reserve Agent's work, is limited only by the fertility of ideas and the proficiency of the men to whom the work is assigned. As an indication of the manner in which the activities previously outlined may be extended, the following suggestions are offered: The Reserve Agent, or Jiis representative, should get out over the district occasionally to renew acquaintances with newspaper owners and editors for the purpose of building up and renewing the friendly relations from which opportunities for the use of newspaper space are a natural outgrowth. This contact is very valuable, and is usually followed by the development of an interest on the part of the editor that prompts him to offer his co-operation. The stronger state banks should be visited. Where there is a lack of interest in membership, the locaLnewspaper medium should be used to carry Reserve Bank articles with reference to membership of state banks, for the purpose of stirring up interest on the part of bank depositors and bank dire-ctors, which is oftentimes effective when the bank officers themselves are indifferent. . The crop ·and business reports repdered each month can be perfected and made more interesting, and it is suggested that it would be desirable to issue them in attractive, but inexpensive, printed form, and use the opportunity to insert on the back page a few paragraphs each month -explaining the development of the Reserve System, and the progress of the particular Federal Reserve Bank. If this is done, the report .should then go to a substantial list of the best· and most influential men in the district for the purpose of reaching non-banking, as well as banking sentiment. It is desirable to keep clesely in touch with the more important commercial organizations, such as trade bodies and Chambers o'f Commerce, and to have knowledge of the time of their annual meetings and the manner in which their programs are made up. This contact will afford frequent opportunitjes for the 'Reserve Agents to reach influential men with addresses, or should it prove practical, to invite to his district the agent of some other bank to present the Federal Reserve subject from a somewhat. different angle. Addresses of this character should be put in printed form for: tl}e purpose of utilizing them to present periodic summaries of ·the results .of the operation of the Reserve Bank, and the service performed for members and the public. With this in mind, the Reserve Agent might easily include at intervals of three or four months, a review of the progress of his bank, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 14 , issuing the address, when ready for mailing, to a list of t~e more substantial business men, as well as the more important member banks. In this manne.r, the Reserve Agent is able, from time - to time, to reach business men with fresh •information about the bank, and to attract-and hold their interest. Where the district is largely agricultural, as is the case with the Ninth District, an occasional add_ress devoted largely to practical discussions of the Reserve Bank .in relation to agri"." culture, could be used to great advantage by putting itiri printed form, -and forwarding it to the influential farmers in each locality. Lists showing who these men are can be compiled with- . -out great effort, and should be included in the file of mailing lists in each Reserve Bank. It is clear that concerted work to interest the public in trade acceptances· would be very valuable. The same practical ap-' plication of public relations work may be made in efforts to interest the public in the purchase of conversion bonds. While the Federal Reserve Agents will naturally feel a hesitation in speaking outside their districts, it will be very possible for each Reserve Agent to call in the Chairman from some other district to occasionally address business organizations where the occasion is of enough importance to justify it. It will probably become . increasingly desirable, as these banks are older, to present the subject from new angles and to give it an element of freshness. There seems to be no reason why the Reserve Agents should not respond to invitations, transmitted through their colleagues. , _ • Once established, public relations wor"k should be prosecuted with the idea of continually refining the methods employed, and of making increasingly e~act classifications of lines of wqrk open in a particular district. This would involve, so far as the newspaper and periodical press is concerned, an effort to satisfy editorial demands with articles having a practical application to the class of people reached by the publication. As this work is undertaken, a very broad field opens up, and the ability of the Reserve Agent to reach individual business men is limited only by his ability to pr"epare special articles adapted to the uses of the particular publications which such business men read. In a special line of work such as this, it is ·naturally very difficult to duplicate the artic~e and use the same text in a number of different publications. , As a concluding suggestion, it. should be the established rule in the Federal Reserve Agen,t's department that every communication to the press that is of any consequence be handed to the newspapers in written form: No other method presents itself that will guarantee that the statements made ~ith refer- ence to a subject that is necessarily somewhat technical will go into the columns of the newspaper without being garbled and wit4_out showing. embarrassing misstatements. j • Where public addresses are delivered, it is highly desirable that the Reserve Agent have his address in manuscript form, and that he prepare duplicate copies for newspaper use. By 15 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis this method he safeguards himself from the inaccuracies that are sure to creep in where reporters have no copy to follow and translate the address into their own language. • It should be the inflexible rule in the' department of each · Reserve Agent who undertaj(es this work, that no statements or communications of any kind are to be released for publication until he has personally examined them. The Federal Reserve Agent is, after all, the one who must bear the brunt of any ·misstatements, and irrespective of how much confidence he may feel in those associated with him in his work, he should insist ·that this rule be followed. Copies of all newspaper statements, all articles prepared for publication, and all addresses delivered, should be retained in the files for future reference and use. By following this system the Reserve Agent has at all times a complete record of everything he has said and is in a position to conclusively meet any criticisms or any questions involving his public statements. In giving out addresses for publication in the newsp~pers, it should be remerpbered that the average newspaper has no space for a document as long as a forty-five-minute address. The Reserve Agent should, therefore, condense his address to a space of not more than 2,000 or. 3,000 words, including therein his salient points, and this should be the copy given to the newspaper for publication. This process assists the editorial department, because it relieves them of editing an immense amount of material that in the nature of things cannot be available for . publication. In·.,summarizing this question, it is well to add the comment that work with newspapers and publications is an important feature of public· relations work. It naturally follows that if _articles are to be written for the press, they ought to be the kind of articles that the press is anxious to .have. This involves that they must be "good newspaper stories." There is always the question whether a man who has not had the benefit of newspaper training can write a properly constructed newspaper article. Where Federal Reserve Agents have available bright young men with some ability to write, it would ,probably be possible, by coaching and training them, to very considerably increase their ability to write good newspaper articl~s. The best efficiency would probably not be attained, e~cept where it is possible to utilize untrained men of exceptional ability, without assigning this work to men of seasoned newspaper experience arid judgment. Newspaper ability alone is insufficient, because of the large amount of technical knowled,ge such a man must have. The problem of finding men having the right combination of experience, knowledge of the Reserv~ Act, and the operations of the bank, and the proper judgment and ability, will very likely present some difficulties. But such men will not be required except in banks. where the Reserve Agent has determined to adopt this form of work on a thorough and comprehensive scale. Where a more limited form of public relations work is undertaken, the problem of finding men can probably be solved by putting them into touch with the men already in the work, who can impart to them something of their own experience and training, watch their work and advise with them, and give them practical assistance. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
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