Code of fair competition for mutual savings banks as approved on October 9, 1933 by President Roosevelt


Material Information

Code of fair competition for mutual savings banks as approved on October 9, 1933 by President Roosevelt
Portion of title:
Mutual savings banks
Physical Description:
iv, 4 p. : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Savings banks -- United States   ( lcsh )
Banks and banking -- United States   ( lcsh )
non-fiction   ( marcgt )


General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1707-03."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004930884
oclc - 645137186
System ID:

Full Text






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This publication is for sale by the Baperintendent of Doenments, Govrnen
Printing Office, Washington, D.O., and by district oflices of the Bureau of
Foreign and Domestic Commerce.


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]MurrvaL SavIwas BANKSE

Ailappictio hain ben dlymade, pursuant to and in full
bbmpliance with the provisions of tteIo h ainlIdsra
aeovery Act, approved June 16, 1933, for my approval of a Mutual
Savings Banks Code of Fair Competition, and hearings having
:~;biesn held thereon and the Administrator having rendered his re-
;fort containing an analysis of the said code of fair competition
together with his recommendations and findings with respect thereto,
and the Administrator having found that the said code of fair com-
pe~tition complies in all respects with the pertinent provisions of:
.title.I of said act and that the requirements of clauses (1) and (2)
ofsubsection (a) of section 8 of said act have been met:I
NOWTHEEFORE, I, Firanklin D. Roosevelt, President of the
UniitedStates, pursuant to the authority vested in me by title I of
the' National Industrial Recovery Act, approved June 16, 1933, and
otherwises, do adopt and approve the report, recommendations, and
findings of the Administrator and do order that the said code of
fair competition be and is hereby approved.
October 9, 1933.
Approval recommended :
Huoan 8. JoHNSON,
15092 '--133--208---83 Irrr

OCTOBER 4, i1988.
Th~e W~hite Houlse.
MrY DEAR 1\IR. PRESIDENT: I have the honor to submit and recom-
mlennd for your approval the Mutual Savings Banks Code of F~air
Competition. Within sixty days after your approval, a supleD1-
mentary code of fair practices provisions shall be filed with the
Administrator for his approval.
The Code was proposed by, and has been accepted by, th :Na-.
tional Association of Mutual Savings Banks, representing 92%.o~of
the 565 mutual savings banks in the country, 96%J of their total
assets of $10,938,000,000, and 96%0 of their total number of depositors
of 13,300,000.
The Code has been approved by the several Advisory Boards of
the National Recovery Administration.
A complete report is being transmitted herewith to you. Signifi-
cant features are: there have been only a few minor failures. of
mutual savings banks and not one in the State of New York they
have more employees now than in 1929; a small number o~f em-
ployees fall within the minimum wage level of the Code; and the
statement by Labor Advisors that banking employees receive higher
comparative wages than those paid by industry generally.
I find that the Code complies with the pertinent provisions of
clauses (1) and (2), subsection (a) of Section 3 of the National
Industrial Recovery Act.
Respectfully submitted.
Hroon S. JoHNsoTP, Admin~lGistrator.


ii:.:- .PREAMBLE

To e?~ fec~cutue the policy of Title I of the National Industrial Re-(
aswer : i Act;:4uring the period of emergency, the following provisions ;
rire' established as a Code of Fair Compe~tition for Mutual Savings

; thb.e b.term ~mutual savings bank as used herein means at savings
ban:` ~tik operating under a state law, without- capital stock or stock-
:_o~lders, and solely in the interests of its depositors.
The provisions of this Code shall apply to and affect only the
eglr.bankingr operations of Mutual Savings Banks.
The term employer as used herein means any mutual savings
The~ terms employee or banking employee as used herein
sallaU mean any person employed by a mutual savings bankr in any
capacity in connection with its banking functions and operations.
T 13he term "L United States proper as used herein shall mean the
(brty-eight (48) states of the United States and the District of
::,The term "Administrator as used herein shall mean the National
R' Recovery Administrator.
Population for the purposes of this Code shall be determined by
rforence to the 1930 Federal Census.


The effective date of this Code, except as specifically provided for
hereisfrter, shaHl be the second Monday after its approval by the
President of the United States.


SE~mployers shall comply with the following provisions of Section
Z (a) of Title I of the National ~Industrial Recovery Act:
(1) Employees shall have the right to organize and bargain col-
lectively through representatives of their own choosing and shall be
free from the interference, restraint or coercion of employers of
labor, or their agents, in the designation of such representatives or
int self-organization or in other concerted activities for the purpose
E collective bargaining or other mutual aid or protection.
S*(2)S N~o employee and no one seeking employment shall bje required
asc a condition of employment to join any company union or to refrain

2 i

from joining, organizing, or assisting a labor organization of hisl:
own choosing.
(3) Employers shall comply with the maximum hours of. labar,;
minimum rates of pay, and other conditions of employment, ap-
proved or prescribed by the President.

On and after the effective date of this Code no person under six-
teen (16) years of age shall be employed by any bank; provided,
however, that where a state law prescribes a higher mmnmmum'age, no
person below the age specified by such state law shall be emploed~
within such state.

(1) On and after the effective date of this Code no banking em-
ployee shall work or be permitted to work more than forty (0
hours per week averaged over a period of thirteen (13) consecutive
(2) The maximum hours of employment prescribed in the fore-
going paragraph shall be subject to the following exceptions:
(a) Where cases of seasonal or peak requirements imoseupo
banking facilities an unusual demand, employees ofbnksbec
to such peaki demand may work forty-eight (48) hours per week for
a period not to exceed twelve (12) consecutive weeks in any calendar
year. Any such increase in hours of employment shaUl be reported
monthly to the Bankiing Code Committee provided for in Article
VII hereinafter.
(b) All banking employees required to perform extra workg or
observe later hours in connection with examinations as required by
law?, over which the bank has no control, shall be exempt during
such periods from the limitations upon hours of employment pre-
scribed in the foregoing paragraphs.
(c)1 Employees in banking institutions employing not more than
two (2) persons in addition to executive officers, in towns of less than
2,500 population, not part of a larger trade area, and employees ih a
managerial or executive capacity or in any other capacity of disrtine-
tion or sole responsibility(regiardless of the location olf the bank)
who receive more than thirty-five (35) dollars per week, shall be
exempt from the limitations upon hours of employment prescribed
in the foregomng paragraphs.
(d) These provisions for working hours shall not apply to night
watchmen employed to safeguard the assets of the bank, who cannot
with safety be shifted or changed during the night period.

(1) On and after the effective date of this Code no employee in
cities of over 500,000 population, or in the immediate trade area of
such cities, shall be paid less than at the rate of $15.00 per week;
no employee in cities between 250,000 and 500,000 population, or, in
the immediate trade area of such cities, shall be paid less than at

ght ottoin~paagrph.1I90 bank: shall include within the ceateg~ory
I; 0E:':''~~~ai# ticeaire than one such employee for every twenty (20)

Emploers shamll not j-educe the compensation for regular em-
~ljlE'ploy~ment now in excess of the minimum wages provided for herein,
9~l:~~totithstandingg that the hours worked in such employment may be
h'~-:: ~jlereby ~reduced.

(1) To efecturate further the policies of the National -Industrial
Rcovery Act, a Mutual Savings Banks Code Committee is hereby set
Ap'to~ act ass a planning and fair-practice agency and to cooperate
withI the Administrat~or in the' administration '"and: enforcement of
tid ~Zs Code. -This Committee shall consist of fifteen (15) I~presenta-
.irbs` ot~the Naitional' Association of Mutual Sa~vings 'Banks, who
.~ shall be truly representative of the membership of the Association, a
i ep~nsentativet selected by fifty-one (51) per cent (measured "by total
itsoiirces) of the non-members of the National Associatioh of Mutual
::ar'i~ngs Banks, and a representative or representatives, without
vdte, appointed by the President of the United States.
(2) T~he Mutual Savings Banks Code Committee may from time
-to time pi-esent to the Admninistrator recommendations, based upon
renditions in the banking business, which will tend to effectuate the
oparatlion of the provisions of this Code and the policy of the Na-
ii:: Itroinal Industrial ~Reco~very Act. Such recommendations shall, upon
a:..:ppr~oval of the A Wrninistrator after such public notice and hearing
4 hte may prescribe,, become operative as part of this Code.
('~3) The Murtual Savings Banks Code Committee may, subject to
thie appro~vat of the ABdministstratr, require from all bankas such
zs~ports as are: necessary to defetuate the purposes of 'this Code,
.and.'~shll'rionm its own initiative or upon complaint of any person
d;iffecti~ii~~ ed mnakel invest~igat~ion as to the functioning .and observance
of any provision: of %he Code and report the results of such inIvesti-
aion f$ the Administrator.
(4) The Administrator may from time to timb, after consultation
~II:with the Mutual Savings Baniks Code Committee, issue such admin-
ist: rative interpretations of the various provisions of this Code as
'are,:~~i j~~ necessary to elfectuate its purposes within the provisions of
ti;::hel 1'a~tional Industrial ]Recovery Act of 1933, and such interpreta-
t!j~~~I~rons'hall~ b6ecome operative as a part of this Code. Such' interpre-


& 3 ~~262 0380922

stations shall be promptly eqmm~unicated to members of, thk
tion, and any member shall -have the right to appeal to taie~
trator and he heard.

(1) Within sixty (60) days after the approval of this
Mutual Savings Banks Code Committee shall present to the
istrator for his approval a, supplementary Code containing Si
practice provisions.
(2) If the hours of banking operation of any mutual,e
are reduced, no such bank shall by reason of this fact
number of its employees below the number employed as onP:
1933. By hours of banking operation is meant the tile,
which the doors of the mutual savings bank are open for thy gh
qf serving the public.

(1) Membership in the National Association of Mutual
Banks shall be open to all banks included within the prove
this Code and said Association shall impose no inequitables
tions upon admission to membership therein.
(2) It is expressly provided that no provision of this
be interpreted or applied so as to conflict in any way
federal or state banking law or any ~rule, regulation, or .order
may have been or may be issued by any~ federal or state
authority applicable to mutual savings banks.
(3) This Code and all the provisions thereof are expre~issly
subject to the right of the President, in accordance wvith the
sions of Section 10 (b) of Title I[ of the National Industrial
ery Act, from time to time to cancel or modify any order,
license, rule, or regulation issued under Title I of said
specifically to the right of the President to cancel ormo
approval of this Code or any conditions imposed by him
ap royal thereof.
i4) Such other provisions of this Code as are not requiireI~
included herein by the National Industrial Recovery 'Act,
the approval of the President;,-be ziodified or eliminated as
in the circumstances or experience may niae
(5) The provisions of this Code shallexpr ntee
date of Title I of the Act or on the earliest date prior th
which the President shall by proclamation, or the C~ongress
joint resolution, declare that the emergency recognized. by
I of the National Industrial Recovery Act has ended.