Guy Emerson to Benjamin Strong Jr.
Title
Guy Emerson to Benjamin Strong Jr.
Creator
Guy Emerson
Identifier
WWP18662
Date
1919 June 13
Description
Guy Emerson writes Benjamin Strong Jr. regarding the War Savings and Liberty Loan Committee.
Source
Benjamin Strong Jr. Papers, New York Federal Reserve Bank
Language
English
Text
MEMORANDUM
COPY
To: Governor Strong
From: Mr. Emerson
I should like to leave with you a few suggestions in regard to the New York stituation.
In the first place, let me state that the existing War Savings Organization in New York was built up partly to continue the existing War Savings Societies and similar work, which has been started furing the parst year and a half.
It was also intended to meet the directions contained in a letter from Mr. Leffingwell received about six weeks ago, which was transmitted to me by Mr. Sailer, which directed that a nucleus of a continuous sales force be established in anticipation of a possible future plan of the Treasury Department.
It should also be noted that a considerable amount of the War Savings work, which has been done since the first of January, has been carried by bureaus of the Liberty Loan Committee and that with the disbanding of that organization it was necessary to place essential men on the War Savings pay roll.
Ovbiously, we are now spending too much money in New York on War Savings alone in proportion to sales. Following the remarks of Mr. Leffingwell in the meeting yesterday, the War Savings Conference directed itself to this problem and it became obvious that there were only two ways to meet this situation, either by reducing expenses or by increasing sales.
It is, of course, easy to make some cuts in the present pay roll and thus reduce expenses, but with the present security I do not believe that a reduction of the working force will result in a proportionate and relative increase in sales.
In other words, if nothing is to be available except the War Savings Stamps I think it is very doubtful if we can ever meet the very reasonable requirement of the Treasury Department to the effect that expenses should be in a very modest ratio to sales.
It seems to me, however, that thrift applies to the whole body of our people and not simply to those of small means. We have a very real responsibilty toward those people to whom we have sold Government bonds during the past two years and Mr. Leffingwell stated this morning that he considered it part of his responsibility to keep in touch with these people, not only as future buyers of Government securities, but also from the standpoint of protecting the interests of those who came to the aid of the Government in its time of need.
He stated this morning to a Committee of the War Saving Organization, of which I was a member, in a conference lasting about an hour, that if the organization could be worked out with you so as to be considered a unit, with its publicity directed not only to thrift propaganda amongst possible War Savings Stamp buyers, but, also, to thrift propaganda to people of larger means leading to the purchase of new Treasury securities and the purchase of outstanding securities on the market and tending also to reduce the activities of swindlers, that he would feel that the Treasury money was being properly expended even though it was out of proportion to the actual sale of War Savings Stamps.
I know this idea has occurred to you and I think it may be a solution of our local problem if properly supplemented by a very careful re-consideration of our present salary roll and of expenditures which are in contemplation for the plans of this year.
One of my principal reasons for leaving this memorandum with you is to call attention to the fact that if anything at all is to be done it must be done with enthusiasm. Otherwise, we cannot maintain any organization in New York which will live up to the traditions of Government financing under your supervision. If the organization is cut down so low as to be really insignificant it will make no impression on the situation in the Second Federal Reserve District and might as well be disbanded entirely. We cannot hold men who have gone through the enthusiasm of liberty loan campaigns with their tradition of success unless we give them a job that they consider worth fighting for and a job which they realize is considered vital not only by the Treasury Department but by you personally who are their Chief.
I am willing to state without qualification that I believe there is a big job to be done in our District and that we have an organization which can do this job without undue expense.I do not believe that they have had a fair chance to demonstrate a sales ability up to this time. The first half of the year has been heavily loaded with expenses that will not be repeated during the balnance of the year and all sales activities have been restricted because of the Victory Loan.
I sincerely hope that some plan will be worked out which meets the necessary condition of thriftiness in our own organization which at the same time will not abandon the tremendously important steps in popular financing and in national thrift which have been started during the past two years.
COPY
To: Governor Strong
From: Mr. Emerson
I should like to leave with you a few suggestions in regard to the New York stituation.
In the first place, let me state that the existing War Savings Organization in New York was built up partly to continue the existing War Savings Societies and similar work, which has been started furing the parst year and a half.
It was also intended to meet the directions contained in a letter from Mr. Leffingwell received about six weeks ago, which was transmitted to me by Mr. Sailer, which directed that a nucleus of a continuous sales force be established in anticipation of a possible future plan of the Treasury Department.
It should also be noted that a considerable amount of the War Savings work, which has been done since the first of January, has been carried by bureaus of the Liberty Loan Committee and that with the disbanding of that organization it was necessary to place essential men on the War Savings pay roll.
Ovbiously, we are now spending too much money in New York on War Savings alone in proportion to sales. Following the remarks of Mr. Leffingwell in the meeting yesterday, the War Savings Conference directed itself to this problem and it became obvious that there were only two ways to meet this situation, either by reducing expenses or by increasing sales.
It is, of course, easy to make some cuts in the present pay roll and thus reduce expenses, but with the present security I do not believe that a reduction of the working force will result in a proportionate and relative increase in sales.
In other words, if nothing is to be available except the War Savings Stamps I think it is very doubtful if we can ever meet the very reasonable requirement of the Treasury Department to the effect that expenses should be in a very modest ratio to sales.
It seems to me, however, that thrift applies to the whole body of our people and not simply to those of small means. We have a very real responsibilty toward those people to whom we have sold Government bonds during the past two years and Mr. Leffingwell stated this morning that he considered it part of his responsibility to keep in touch with these people, not only as future buyers of Government securities, but also from the standpoint of protecting the interests of those who came to the aid of the Government in its time of need.
He stated this morning to a Committee of the War Saving Organization, of which I was a member, in a conference lasting about an hour, that if the organization could be worked out with you so as to be considered a unit, with its publicity directed not only to thrift propaganda amongst possible War Savings Stamp buyers, but, also, to thrift propaganda to people of larger means leading to the purchase of new Treasury securities and the purchase of outstanding securities on the market and tending also to reduce the activities of swindlers, that he would feel that the Treasury money was being properly expended even though it was out of proportion to the actual sale of War Savings Stamps.
I know this idea has occurred to you and I think it may be a solution of our local problem if properly supplemented by a very careful re-consideration of our present salary roll and of expenditures which are in contemplation for the plans of this year.
One of my principal reasons for leaving this memorandum with you is to call attention to the fact that if anything at all is to be done it must be done with enthusiasm. Otherwise, we cannot maintain any organization in New York which will live up to the traditions of Government financing under your supervision. If the organization is cut down so low as to be really insignificant it will make no impression on the situation in the Second Federal Reserve District and might as well be disbanded entirely. We cannot hold men who have gone through the enthusiasm of liberty loan campaigns with their tradition of success unless we give them a job that they consider worth fighting for and a job which they realize is considered vital not only by the Treasury Department but by you personally who are their Chief.
I am willing to state without qualification that I believe there is a big job to be done in our District and that we have an organization which can do this job without undue expense.I do not believe that they have had a fair chance to demonstrate a sales ability up to this time. The first half of the year has been heavily loaded with expenses that will not be repeated during the balnance of the year and all sales activities have been restricted because of the Victory Loan.
I sincerely hope that some plan will be worked out which meets the necessary condition of thriftiness in our own organization which at the same time will not abandon the tremendously important steps in popular financing and in national thrift which have been started during the past two years.
Original Format
Letter
To
Strong, Benjamin, 1872-1928
Files
Collection
Citation
Guy Emerson, “Guy Emerson to Benjamin Strong Jr.,” 1919 June 13, WWP18662, Benjamin Strong Jr. Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.