---Registry No. 504-1---02
Registry No. 504-1-02
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NATIONAL RECOVERY ADMINISTRATION
PROPOSED CODE OF FAIR COMPETITION*
BANK NOTE PRINTING
AS SUBMITTED ON SEPTEMBER 6, 1933
DO OUR PAR
The Code for the Bank Note Printing Industry'
in Its present form merely reflects the proposal of the above-mentioned
Industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery Administration
as applying to this industry
GOVERNMENT PRINTING OFFICE
Ia ml. by the S.uUEIS#U4SUS .1 Decumenia, Wahinglon, D.C. ------ PriceS semis
For 8se bY the 8aperte ndent of Documents, Wahinglon, D.C.
.- Price 56 enbt
ASSOCIATION OF BANK NOTE COMPANIES
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CODE FOR THE ASSOCIATION OF BANK NOTE
To provide a free and ready market for the buying and selling of
securities, such as bonds, stock certificates, and other negotiable
documents representing value, the various stock exchanges of the
United States have become a necessity to our business structure.
Owing to the enormous monetary value of the securities and their
wide distribution, it is imperative that they be protected against
counterfeiting and duplication and be safeguarded during manu-
facture in a manner equal to that employed in the making of the
currency of the United States Government.
For this purpose Bank Note Companies have been organized whose
particular and special function it is to engrave and print securities.
The principal stock exchanges through years of experience have
found it necessary to require the highest standard of qualifications to
be met by those bank note companies preparing securities dealt in
or listed on their Boards. Among these qualifications are: Quality
of workmanship, experience and reputation, financial responsibility,
proper plant and vault facilities.
There are ten bank note companies in the United States that have
been qualified to engrave securities for listing on all important stock
exchanges. Of the ten bank note companies, eight are subscribers to
this Code. The remaining two have been invited to join but as yet
have not signified their intention to do so.
To effectuate the policy of Title I of the National Industrial Re-
covery Act the following provisions are established as a National
Industrial Recovery Code for bank note companies.
The term Bank Note Companies shall be understood to apply only
to those companies whose business includes engraving of securities
acceptable for listing on all stock exchanges in the United States of
1. Working Hours.-To effectuate the policy of this Code of Fair
Competition maximum hours of labor shall be uniform for the whole
country. Standard working hours shall be eight hours per day, five
days per week, for all mechanical employees. The maximum hours
referred to in this section shall not apply to employees in a mana-
gerial or executive capacity who now receive more than $35.000 per
week, nor to employees on emergency maintenance and repair work,
nor to watchman service. When necessary, overtime and extra shifts
shall be permitted, provided that no mechanical employees shall
work more than the maximum 40 hours.per week during the present
emergency. It is not the intention of this paragraph to limit the
number of days a plant may operate.
In case of necessity, arising from an emergency or from the char-
acter of the work, or from the inability to obtain competent labor,
permission may be granted by the Executive Committee of the As-
sociation, upon proper showing being made, to exceed the foregoing
limitation, provided such permission shall be granted only upon
such conditions imposed by the Executive Committee as will make
certain that no employee will work more than 1,040 hours in any
2. The minimum wage in this industry shall be $14.00 per week of
40 hours, or 35 cents per hour for part time.
3. (A) Employees shall have the right to organize and bargain
collectively through representatives of their own choosing and shall
be free from the interference, restraint, or coercion of employers, or
their agents, in designation of such representatives or in self-organi-
zation or in other concerted activities for the purpose of collective
bargaining or other mutual aid or protection;
(B) No employee, and no one seeking employment, shall be re-
quired as a condition of employment to join any company union
or to refrain from joining, organizing, or assisting a labor organiza-
tion of his own choosing;
(C) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, ap-
proved or prescribed by the President:
(D) Employers and employees shall be free to bargain individu-
ally or collectively;
(E) Employees may be selected, retained, or discharged anq ad-
vanced on the basis of individual merit regardless of affiliation or
nonaffiliation with any labor organization.
4. The supervising and fact-finding agency for the Bank Note
Companies shall be The Association of Bank Note Companies, 1427
Eye Street NW., Washington, D.C.
The Companies shall furnish to this agency duly certified reports
every four weeks showing number of employees, maximum hours
worked by any employee in any week, and actual hours worked by
the various occupational groups of employees, and minimum hourly
wages. It shall be the duty of this agency to compile these figures
when, as, and if the President requires such compilation. It shall
also be the duty of this agency to investigate and develop facts
regarding complaints from any source and present the resulting data
to the Administrator, if circumstances warrant and if so instructed
by the Association.
5. Standards.-To provide a means to settle questions as to the
proper preparation of any securities there shall be set up a committee
of five persons, three of whom shall be from the bank-note industry,
one of whom shall be a representative of the Stock Exchanges, one
from the United States Bureau of Engraving and Printing, Wash-
6. Selling Below Costs.-The industry wishes to establish rules as
soon as satisfactory cost-finding methods, etc., may be worked out.
7. Firm Biddin.g.-Violation of the principle of firm bidding shall
be a violation of the Code. Firm bidding shall be understood to
mean that where there is competitive bidding the original bid sub-
mitted shall not be altered unless there is a change of specifications,
and such revised specifications submitted to all bidders.
8. Engravoing Charges.-All engravings are an element of cost and
must be charged for when made and shall not be prorated over sub-
9. Rebates.-There shall be no commissions, rebates, or allowances
made to any interests representing the buyer.
10. Guaranties.-There shall be no guaranty given against ad-
vances or declines in prices.
11. Competitors' Employees.-No person while in the employ of a
member of this Industry shall be induced by any means whatsoever
to leave that employment by any other member.
12. Terms of Payrment.-The regular terms of payment shall be
thirty days net. Interest to be charged after maturity at the pre-
vailing legal rate in the State in which work is done.
13. Misrepresentation.-No members of this Industry shall make
misrepresentations regarding its products or otherwise.
14. Defamation.-No member of this Industry shall resort to defa-
mation of a competitor or its product.
15. Storage of Unbilled Orders.-The principle of inducing com-
panies to place orders for securities to be prepared and stored in
vaults of members of this Industry to be billed and paid for as
delivered is to be discouraged.
16. Authors' Chan.ges.-Proper charges shall be made for substan-
tial authors' changes in proofs.
17. The industry may, when facts become available, present addi-
tions to this Code for eliminating destructive competitive practices
and for stabilizing the industry.
18. The President may from time to time cancel or modify any
order, approval, license, rule, or regulation issued under this Title.
UNIVERSITY OF FLORIDA
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