ANNUAL REPORT, 1934 S3 



will continue. In most cases these charges are less burdensome than those first 

 submitted to the NRA. The current tendency to impose and increase such 

 charges, however, appears to be a reversal of the long-time trend. The past 

 history of deposit currency has been one of gradual elimination of exchange and 

 other charges on checks in the interest of the general welfare. 



Study of the various measured service schedules and systems of activity cost 

 analysis commonly used by banks reveals several fundamental weaknesses. In 

 banking as in many other lines of business joint and overhead costs constitute a 

 grave obstacle to any kind of cost determination. The attempt to arbitrarily 

 separate such costs is likely to lead to false conclusions. 



A number of popular articles giving the results of this study were prepared 

 during the year. Detailed analysis of the cost and historical aspects of the prob- 

 lem were stressed. Emphasis was laid on approaching the problem from the point 

 of view of public welfare and the banking system as a whole rather than from that 

 of the individual bank. It may well be that accounts which appear unprofitable 

 to a single bank are in the aggregate important to the whole banking system. 

 Furthermore, as a matter of sound social policy it is doubtful whether checking 

 facilities ought to be placed beyond the economic reach of large numbers of 

 people. 



National Recovery Research — Special Studies with Emergency Funds. (R. L. 

 Mighell.) This project was set up to include all the professional and technical 

 studies carried on with CWA and ERA funds under the direction of the Massachu- 

 setts Agricultural Experiment Station at the Massachusetts State College, during 

 the six-months' period March 3, 1934, to August 30, 1934. An average of about 

 100 and a total of nearly 200 different persons were employed during this period. 



The project was divided into forty-three sub-projects covering studies in nearly 

 all departments of the college. As far as possible these studies were designed to 

 supplement and fill in gaps in the normal research program and to accomplish 

 results capable of immediate application to the problems of recovery. Since much 

 of this work is reported elsewhere in this bulletin, only a few of the studies will 

 be mentioned here. A primary objective of the project was to secure normal 

 employment for the personnel. With the aid of the college placement service and 

 other members of the staff, about sixty persons were assisted in finding permanent 

 or semi-permanent positions before the project ended. 



With the cooperation of the New England Crop Reporting Service, an acreage 

 census of cranberries, asparagus, and strawberries was completed. Likewise a 

 checkup of onions, tobacco, and potatoes in the Connecticut Valley was made. 

 These studies fill a serious gap in crop reporting statistics and will improve the 

 official estimates for several years to come. 



Results from a study of farm production credit needs are being used by the 

 Farm Credit Administration in Springfield in developing a sound production 

 credit policy. 



A preliminary economic study of the Worcester and Boston produce market 

 areas was completed to the point of furnishing a quantitative description of the 

 sources of supply and the marketing channels for local fruits and vegetables. 

 Tentative plans for a number of new alternative regional market sites and lay- 

 outs were made. 



The development and construction by the psychology department of several 

 pieces of scientific apparatus for testing the ability of automobile drivers promises 

 to be of great practical value in the present effort to attain greater highway 

 safety. 



