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DIARY Book 406 June 7-10,1941 - Book Page 406 120 Allison Engineering Company See War Conditions: Airplanes (Engines) Alsop and Kintner Alsop going into Navy and Kintner going into Army - 6/9/41 Amherst College See Speeches by HMJr Appointments and Resignations Collector of Internal Revenue, Iowa: Change as desired by Ed Flynn discussed in Rowe memorandum - 6/10/41 354,355 FDR - 6/10/41 373 Garrison, Lloyd K: To be considered for Under Secretaryship of Treasury; HMJr asks Miss Tully to check with a) HMJr and Frankfurter discuss after Frankfurter's talk with FDR - 7/8/41: See Book 419, page 2 b) FDR asics HMJr to get Garrison's last speech and send it to him: Book 419, page 159 Landis, James M. (Dean, Harvard Law School): To be considered for Under Secretaryship of Treasury: HMJr asks Miss Tully to check with FDR - 6/10/41 a) Declines Under Secretaryship of Treasury 6/19/41: Book 410, pages 168 and 181 b) Changes to acceptance on certain conditions 6/21/41: Book 411, pages 248 and 249 c) FDR will sign letter to Conant: Landis to straighten out situation with LaGuardia: Book 412, page 166 1) Letter as prepared in Treasury: Book 412, page 169 2) Conant answer - 6/30/41: Book 418, page 40 d) Lubin and HMJr discuss Father White's intercession with Senator Walsh - 6/24/41: Book 413, page 77 e) LaGuardia will release as head of Office of Civilian Defense, Second Corps Area 6/26/41: Book 416, page 206-A f) HMJr tells Landis he cannot sway Senator Walsh - 7/2/41: Book 417, page 143 1) Reports to FDR: Book 419, page 48 g) Landis'sletter to HMJr after HMJr-Walsh talk - 7/3/41: Book 418, page 41 h) Crowley intercedes - 7/11/41: Book 420, page 71 Argentina See Latin America Australia See War Conditions 373 -BBook Page Belgium See War Conditions: Foreign Funds Control Brown, J. Douglas See Defense, National (Dismissal compensation plan) Business Conditions Haas memorandum on situation for week ending June 7, 1941 406 245 -cCanada See War Conditions China See War Conditions: China; Lend-Lease Coast Guard Purchase of training ship DANMARK discussed at 9:30 meeting - 6/9/41 a) Knox-HMJr conversation - 6/20/41: 121 See Book 411, page 4 1) FDR's memorandum and letters from and to Bland (Committee on Merchant Marine and Fisheries, House of Representatives): Book 411, pages 31 and 34 Collector of Internal Revenue, Iowa See Appointments and Resignations Compensation, Dismissal See Defense, National - DDebts, Foreign Treasury advises State there should be no change in routine procedure at this time - 6/9/41 210 Defense, National Labor Resources: Effective utilization in all-out program - 6/9/41 a) HMJr's memorandum on problem after breakfasting with Mrs. FDR - 6/10/41 209 277 b) White memorandum: "A Program to Utilise Effectively Available Labor Supply" 6/10/41 c) "A program for total defense production and training" - 6/11/41: Book 407, page 54 d) Copies of letter to FDR, recommendations, draft of bill, and chart sent to Mrs. FDR, Currie, Judge Rosenman, Hopkins, and Lubin 6/13/41: Book 408, page 34 e) Chronology of HMJr's proposals prepared by White - 6/17/41: Book 409. page 210 f) Dismissal compensation plan proposed by J. Douglas Brown - 6/17/41: Book 409, page 216 See also Speeches by HMJr (Amherst Alumni Luncheon Address) 368 - D - (Continued) Book Page Defense Savings Bonds See Financing, Government Dismissal Compensation See Defense, National Douglas, Lewis W. See Speeches by HMJr (Amherst address) -FFinancing, Government Reconstruction Finance Corporation requirements for next three months discussed by Jones and HMJr - 6/10/41 406 323 Defense Savings Bonds: "Defense Savings: A United Front Appears' - Dallas report - 6/7/41 Field Organization News Letter, No. 3, giving resume of first month - 6/7/41 Daily sales, June 1-June 6. Dietz and HMJr discuss civil liberties playlets - 6/9/41 Congressmen to be kept informed: HMJr asks Graves to work out ways - 6/10/41 Texaco program - HMJr's suggestions - 6/10/41.. 80 84 96 184 348 349,351,353 Ohio, particularly northwest, thought by Wickard to be pro-German; asks HMJr about bond sales there - 6/10/41 a) HMJr's reply to Wickard - 6/24/41: 356 See Book 413, page 138 Foreign Debts See Debts, Foreign Forrestal, James V. (Under Secretary of Navy) HMJr thanks him for privilege of reading diary of his English trip - 6/9/41 France See War Conditions -G Garrison, Lloyd K. See Appointments and Resignations for consideration as Under Secretary of Treasury Germany See War Conditions Greece See War Conditions -HHungary See War Conditions 238 -IBook Page Infantile Paralysis Foundation See O'Connor, Basil Internal Revenue, Collector of - Iowa See Appointments and Resignations Iowa Collector of Internal Revenue: See Appointments and Resignations -JJackson, Gardner Asks for conference with HMJr concerning job 6/9/41 406 243 -LLabor See Defense, National Landis, James M. (Dean. Harvard Law School) See Appointments and Resignations Latin America Argentina: HMJr asked for information as to whether stabilization loan to Argentina is off before he testifies on Hill - 6/10/41. a) Foley answer 366 367 -NNetherlands See War Conditions: Foreign Funds Control: Lend-Lease - -0- - O'Connor, Basil Infantile Paralysis Foundation: HMJr asks if O'Connor wishes to recommend anyone as his receptionist 6/9/41 011 See War Conditions -PPuget Sound Power and Light Company See Reconstruction Finance Corporation 147 -RReconstruction Finance Corporation See also Financing, Government Book Page Jones' letter to Ickes concerning authority to make loan to dummy corporation for purchase of electric system of Puget Sound Power and Light 406 Company - 6/10/41 Revenue Revision 325 Comparison of volume of business, net profits, and Federal taxes of certain groups of corporations (engaged in shipbuilding, construction of airplane engines, etc., as well as industries not engaged in filling defense contracts): Blough memorandum and table - 6/9/41 a) Discussion at 9:30 meeting - 6/9/41 (See also Book 409, page 14 - 6/16/41) Tax certificates to be used in paying next year's income tax discussed at group meeting - 6/10/41.. a) HMJr, Eccles, White, Haas, Ransom, McKee, Piser, Bell, and Kuhn discuss - 6/27/41: See Book 415, page 36 b) HMJr, Haas, Bell, and Stewart discuss 7/2/41: Book 417. page 109 c) HMJr, Stewart, Bell, Haas, Currie, White, Kuhn, Ranson, McKee, Eccles, Goldenweiser, and Piser discuss - 7/2/41: Book 417, page 151 d) Press release on plan - 7/3/41: Book 418, page 133 1) Kuhn's notes for press conference: Book 418, page 137 e) Keynes is interested - 7/8/41: Book 419, page 39 f) Conference; present: HMJr. Bell, Broughton, Kilby, Jones, Callahan, Sloan, Buckley, and Edwards - 7/11/41: Book 420, page 86 g) Press comment - Merillat resume' - 7/11/41: Book 420, page 107 h) FDR informed of issuance August 1 and asked to participate in radio program - 7/18/41: Book 422, page 212 S- Salter, Sir Arthur See Var Conditions: Shipping Shipping See War Conditions 112 123 299 - S - (Continued) Book Page Speeches by HMJr Amherst Alumni Luncheon Address: HMJr, Odegard, and Kuhn confer on speech; Mrs. FDR enthusiastic about it - 6/10/41 a) Henry III's doubts as discussed with 406 279 Mrs. FDR and later answered by HMJr basis for speech b) Admiral King asked to check on conversations he and HMJr had on shipboard - 6/10/41 281 318 1) King's comments - 6/14/41: See Book 408, page 152 c) Lewis Douglas--HMJr conversation 6/11/41: Book 407, page 44 d) McCloy-HMJr conversation - 6/11/41: Book 407, page 48 e) Copy as interlined by HM,III - 6/14/41: Book 408, page 167 f) HMJr's reading copy - 6/14/41: Book 408, page 212 g) Henry III sends editorial from Cleveland #Plain Dealer" - 6/20/41: Book 411, page 160 h) Halifax's appreciation of speech 6/23/41: Book 412, page 318 1) Hochschild's congratulations acknowledged 6/23/41: Book 412, page 319 Stabilization Fund Devaluation extension discussed in Cochran memorandum - 6/7/41 17 HMJr asked for information as to whether stabilization loan to Argentina is off before he testifies on Hill - 6/10/41 a) Foley answer 366 367 -TTankers See War Conditions: Shipping -UUnemployment Relief Work Projects Administration report for week ending May 28, 1941 United Kingdom See War Conditions: Military Planning: Oil 258 -VWar Conditions Airplanes: Book Page Engines: Allison Engineering Company shipments 6/9/41 406 206,207 Shipments to United Kingdom and overseas commands - British Air Commission report - 6/10/41 384 Australia: Regulations governing persons owning United States or Canadian dollar currency 6/7/41 67 Canada: Report on general conditions - State Department report - 6/7/41 56 China: See also War Conditions: Lend-Lease Fox reports upon arrival in Hong Kong - 6/9/41 Exchange market resume' - 6/7/41, etc. Export Control: Export of petroleum products, scrap iron, and scrap steel from United States to Japan, U.S.S.R., Spain, and Great Britain, week 233 ending June 7, 1941 Foreign Funds Control: Foreign accounts in Federal Reserve Banks and 208 insured banks: Phillips-Cochran correspondence concerning competing claims between central banks now in occupied territory and the governments themselves, as, for example, Belgian and Dutch - 6/7/41 97,244,385 1 Hungary: Difficulties of situation discussed by Hungarian Minister and Cochran - 6/7/41 16 France: Setting up of three German Commissioners for foreign trade, Bank of France, and foreign exchange discussed in memorandum from American Embassy, Vichy - 6/7/41 63 Germany: France - Vichy: Setting up of three German Commissioners for foreign trade, Bank of France, and foreign exchange discussed in memorandum from American Embassy, Vichy - 6/7/41 Greece: German-occuping authorities to pay 20% premium on all purchases in Greece for German armed forces - 6/7/41 63 68 Greece: German-occupying authorities to pay 20% premium on all purchases in Greece for German armed forces - 6/7/41 68 - W - (Continued) Book Page War Conditions (Continued) Lend-Lease: First report - 6/10/41 406 358 China: Currie told of HMJr's approval of plan to take over portion of British contracts for China - 6/10/41 359 Netherlands: Cox memorandum to Hopkins raising certain questions in connection with proposed agreement - 6/9/41 Military Planning: Reports from London transmitted by Halifax 6/7/41, etc 175 98.101.109.262 264,387,389 War Department bulletin: German invasion of Greece - notes on 6/9/41 Oil: 266 British requirements - 6/7/41 8 Purchasing Mission: British Financial Position: Gold and dollar assets as of April 1, May 1, and June 1 8 Vesting order sales - 6/9/41 199,200 Federal Reserve Bank of New York transmits statement showing dollar disbursements, week ending May 28, 1941 201 Shipping: United States tank vessels in United States ports - 6/7/41 (See also Book 407, page 260 - 6/12/41) Salter's report giving comparative statement, May and June, of deficiency of ships for priority program of North America - 6/10/41. 69 374 Yugoslavia: National Bank governor and vice-governor removed - 6/9/41 Work Projects Administration See Unemployment Relief --Y- Yugoslavia See War Conditions 231 1 TREASURY DEPARTMENT INTER-OFFICE COMMUNICATION DATE June 7. 1941 TO Secretary Morgenthau FROM Mr. Cochran STRICTLY CONFIDENTIAL There is attached a copy of a letter which I received from Sir Frederick Phillips some days ago, and which I have told you that I should like to discuss with you before answering or filing. When Phillips handed this to me, I told him that my immediate and unofficial answer would be "yes". I told him, however, that I would like to discuss his note with some of my colleagues. Upon showing Phillips' letter to Mr. Foley, the latter suggested that I talk it over with Mr. Bernstein. It was Mr. Bernstein's opinion that recent legislation relating to foreign accounts in Federal Reserve Banks and insured banks was conceived for just such a purpose as that which Phillips may have in mind, namely. that of getting into the hands of the Dutch Minister in the United States funds of the Netherlands Bank which might be used to assist the British. Mr. Bernstein's suggestion was that he and I talk with Sir Frederick Phillips and give him an idea as to the possibilities of action under this new legislation. When I mentioned this idea to Under Secretary Bell the latter thought this quite a risky procedure, and did not favor it. He suggested that I draw up a fairly noncommittal reply to Phillips' letter. This I have done, as will be noted from the attached draft. My own thought is that I should give Phillips no written reply in the premises. When the matter came up in our conversation yesterday, I told Phillips that I could easily write him an evasive letter, but that we were not accustomed to dealing with him in such fashion. I told him that he had access to and knowledge of our own banking legislation. I added that if the inquiry had come from any source other than himself, asking us for forecasts in regard to difficulties concerning possible transactions in foreign accounts, we would decline to give any information. In his case, however, I certainly did not desire to block him from receiving any assistance or advice from us which some one in higher position than myself might see fit to give. I told him that I might find occasion to bring this matter to the Secretary's attention, but gave no promise. In this connection, my personal opinion is that both the State and Treasury Departments have been inclined to use too generously the authority conferred upon them by the Federal Reserve Bank Act under reference, a copy whereof is attached. It is my feeling that a certification from the Secretary of State could properly be required when there is a real question of authority, but that this procedure should not be used to facilitate an official in this country acquiring authority which it is doubtful that he previously enjoyed. That is, for example, this procedure has been utilized to permit Yugoslav and other Ministers in the United States whose countries have been invaded to draw on the Central Bank balances of their respective countries held in the United States, although they had no such authority prior to the invasion of their countries, and we have no evidence other than the Ministers' statements to the State Department that they should enjoy this authority now. I think it would be particularly 2 -2 undesirable for us to collaborate with the British toward the Dutch Minister, for example, gaining access to the funds in this country of the Netherlands Bank, which is not owned by the Netherlands Government, and all of whose officers have remained in the Netherlands. However sympathetic we may be to the British cause, the finan- cial and monetary authorities of the United States definitely have a responsibility for the safekeeping of Central Bank funds entrusted to banks in this country by them. I am strongly of the opinion that it is not for us to determine that such funds should be utilised by the Exiled Governments or ex-Ministers of invaded countries for purposes other than those which the Central Banks of those countries may determine. There will undoubtedly be a great need for such funds for the rehabilitation of the invaded countries once peace is established. BMR 3 THE BRIVINE SUPPEY COMBOSE IN WORSE AMERICA Box 600 Benjamin Fresklin Station Washington, D. 0. May 21, 1941 Dear Cechran, I as asked to confire the view which seems to prevail is London that even if the assets belonging to the Delgian and Datah National Beake here were unfresen there would be competing claims between the Director of the Belgies National Beak is Leader and the Datch Government on the one hand, and the Belgies and Datah National Banks situated is occupied territory on the other hand, 00 that 19 would be a matter of great difficulty for the Belgian and Datch Governments to obtain these funds. Would you agree with this view! Yours sincerely, (Signed) F. Phillips Mr. H. Morle Cochran, W. s. Treasury. Washington, D. 6. COPY - 5/23/41 - is 4 OFFICE OF TREASURY DEPARTMENT WASHINGTON THE SECRETARY May 29, 1941 Dear Phillips: In answer to your letter dated May 21, 1941, I have pleasure in attaching for your guidance a copy of the legislation recently enacted which relates to foreign accounts in Federal Reserve Banks and insured banks. From this legislation you will note the arrangement which is provided for certification by the Secretary of State as to those officials who may have authority to dispose of the property held in the name of foreign States or Central Banks with our own Federal Reserve and insured banks. You are aware, of course, that the United States Government continues to maintain diplomatic representatives accredited to the Governments of Belgium and the Netherlands, with present headquarters in London. On the other hand, it is my understanding that the Federal Reserve Bank at New York has no direct contact with the Netherlands Bank at Amsterdam or with the National Bank of Belgium at Brussels, in the name of which institutions the Federal Reserve Bank of New York continues to carry certain accounts. Faithfully yours, H. Merle Cochran Technical Assistant to the Secretary Enclosure. Sir Frederick Phillips, The British Supply Council in North America, Washington, D. C. mr Coderan 5 [PUBLIC LAW 31-77TH CONGRESS] [CHAPTER 43-1ST SESSION) 390] AN ACT Relating to foreign accounts in Federal Reserve banks and insured banks. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subsection (e) of section 14 of the Federal Reserve Act, as amended, is amended by inserting before the period at the end of the first sentence thereof the following: or for foreign banks or bankers, or for foreign states as defined in section 25 (b) of this Act" SEC. 2. Section 25 (b) of the Federal Reserve Act. as amended, is amended by adding at the end thereof the following new paragraphs: "Whenever (1) any Federal Reserve bank has received any property from or for the account of a foreign state which is recognized by the Government of the United States, or from or for the account of a central bank of any such foreign state, and holds such property in the name of such foreign state or such central bank: (2) a representative of such foreign state who is recognized by the Secretary of State as being the accredited representative of such foreign state to the Government of the United States has certified to the Secretary of State the name of a person as having authority to receive, control, or dispose of such property; and (8) the authority of such person to act with respect to such property is accepted and recognized by the Secretary of State, and so certified by the Secretary of State to the Federal Reserve bank, the payment, transfer. delivery, or other disposal of such property by such Federal Reserve bank to or upon the order of such person shall be conclusively presumed to be lawful and shall constitute a complete discharge and release of any liability of the Federal Reserve bank for or with respect to such property. "Whenever (1) any insured bank has received any property from or for the account of a foreign state which is recognized by the Government of the United States, or from or for the account of a central bank of any such foreign state, and holds such property in the name of such foreign state or such central bank; (2) a representative of such foreign state who is recognized by the Secretary of State as being the accredited representative of such foreign state to the Government of the United States has certified to the Secretary of State the name of a person as having authority to receive, control, or dispose of such property: and (3) the authority of such person to act with respect to such property is accepted and recognized by the Secretary of State. and so certified by the Secretary of State to such insured bank, the payment, transfer, delivery, or other disposal of such property by such bank to or upon the order of such person shall be conclusively presumed to be lawful and shall constitute a complete discharge and release of any liability of such bank for or with respect to such property. Any suit or other legal pro- 2 PUB LAW 31.) ceeding against any insured bank or any officer, director, or employee thereof, arising out of the receipt, possession, or disposition of any such property shall be deemed to arise under the laws of the United States and the district courts of the United States shall have exclusive jurisdiction thereof, regardless of the amount involved; and any such bank or any officer, director, or. employee thereof which is a defendant in any such suit may, at any time before trial thereof, remove such suit from a State court into the district court of the United States for the proper district by following the procedure for the removal of causes otherwise provided by law. "Nothing in this section shall be deemed to repeal or to modify in any manner any of the provisions of the Gold Reserve Act of 1934 (ch. 6, 48 Stat. 337), as amended, the Silver Purchase Act of 1934 (ch. 674, 48 Stat. 1178), as amended, or subdivision (b) of section 5 of the Act of October 6, 1917 (40 Stat. 411), as amended, or any actions, regulations, rules, orders, or proclamations taken, promulgated, made, or issued pursuant to any of such statutes. In any case in which a license to act with respect to any property referred to in this section is required under any of said statutes, regulations, rules, orders, or proclamations, notification to the Secre- tary of State by the proper Government officer or agency of the issuance of an appropriate license or that appropriate licenses will be issued on application shall be a prerequisite to any action by the Secretary of State pursuant to this section, and the action of the Secretary of State shall relate only to such property as is included in such notification. Each such notification shall include the terms and conditions of such license or licenses and a description of the property to which they relate, "For the purposes of this section, (1) the term 'property' includes gold, silver, currency, credits, deposits, securities, choses in action, and any other form of property, the proceeds thereof, and any right, title, or interest therein; (2) the term 'foreign state' includes any foreign government or any department, district, province, county, possession, or other similar governmental organization or subdivision of a foreign government, and any agency or instrumentality of any such foreign government or of any such organization or subdivision; (3) the term 'central bank' includes any foreign bank or banker authorized to perform any one or more of the functions of a central bank; (4) the term 'person' includes any individual, or any corporation, partnership, association, or other similar organization; and (5) the term 'insured bank' shall have the meaning given to it in section 12B of this Act." Approved, April 7. 1941. 6 TREASURY DEPARTMENT INTER-OFFICE COMMUNICATION DATE June 7. 1941 TO Secretary Morgenthau FROM Mr. Cochran STRICTLY CONFIDENTIAL Sir Frederick Phillips telephoned me at 12:45 yesterday. He said that Sir Edward Peacock had received word from Mr. Jesse Jones that the latter saw no reason for opposing the loan proposition involving the British thread companies. Consequently, Sir Frederick asked if it would not be all right to go ahead with this transaction. I told Phillips that I was seeing Mr. Bell at luncheon and desired to discuss this matter with him, since it was the Under Secretary who had been in touch with Mr. Jones for the Treasury. As soon as I had talked with Phillips, I telephoned Mr. Bell to report the conversation. When we met at luncheon, Mr. Bell said that he had talked with Mr. Jones and that the latter stated that he had given no such clearance. On the contrary, he was of the opinion that a loan considerably above the sum mentioned by Peacock would be warranted. When we came up from luncheon, there was a copy of a letter from Mr. Jones to the Secretary, which is attached hereto. Shortly afterwards we received a photostatic copy of this letter from the Secretary's office, since it had been handed to Mr. Morgenthau when he was at the Cabinet Meeting. In agreement with Mr. Bell, I telephoned Phillips yesterday afternoon and told him that Mr. Jones had informed us that he had not given a clearance to the transac- tion in question. Phillips agreed with me that the transaction should be definitely held up until we are in touch with Sir Edward Peacock next week. It will be recalled that Peacock hopes to see the Secretary, perhaps on Tuesday. When the Secretary called me from the farm at 10:15 this morning, he said that Mr. Bell had informed him of the confusion which had arisen in connection with this transaction. The Secretary agreed with my suggestion that no draft letter acknowledging Peacock's communication on this proposition should be prepared before Peacock's visit to us next week. PMR C June 6 0 Handed at Cabinet P Y FEDERAL LOAN AGENCY WASHINGTON Jesse H. Jones eral Loan Administrator June 6, 1941 Dear Henry: With regard to the proposed loan by the banks and insurance companies to the British-owned American thread companies, it appears from the information which we have been able to obtain on short notice that the RFC could safely afford to lend as much as $30,000,000 in the expectation that earnings from the properties would fully amortize the loan within a reasonable time. This would provide the British with $14,000,000 more than the banks and insurance companies propose to lend. We will be glad to give prompt consideration to such a loan upon receipt of more definite information. Sincerely yours, (s) Jesse Administrator Honorable Henry Morgenthau, Jr. Secretary of the Treasury Washington, D. C. Copy:bj:6-7-41 8 C 0 P Y PRITISH EMBASSY, WASHINGTON, D.C. June 7. 1941 Dear Dr. White, I enclose a statement of British gold and dollar assets as at April 1st, May 1st and June 1st. I hope this is in the form you require. I have obtained from Mr. Piercy, the British representative handling petroleum here, the following rough figures of British oil requirements (annual rates in $ millions): Rest of Requirements of oil U.K. Sterling Area Total from U.S.A. 35 10 45 from dollar sources outside U.S.A. 60 30 90 95 40 135 Total Yours sincerely, /s/ Dr. Harry White U.S. Treasury Washington, D.C. R.G.D. Allen 9 C 0 P Y BRITISH GOLD & DOLLAR ASSETS April 1st, 1941 May 1st. 1941 June 1st. 1941 old fficial dollar balance . Total gold & dollars ess gold not available: Belgian gold borrowed Scattered gold Reserve against immediate liabilities 225 117 69 159 148-1/2 115-1/2 294 276 264 11 18 10 105 105 105 9 133 10 124 10 126 vailable gold & dollars 161 152 138 arketable securities ** 526 507 473 *** *** *** rect & miscellaneous investments Private dollar balances are excluded since they represent minimum working balances. April 1st figure is estimated market value of securities unsold at that date. Subsequent figures are obtained by deducting actual sales and make no allowance for depreciation (or appreciation) of value. *** Amounts realised on direct investments: April $ 36 millions, May $ 25 millions. Estimates of value of unsold investments would now be devoid of meaning. ashington, D. C. une 7th, 1941 imc Dlaw Recrea fromJune Bell7,1941 (incussed with MEMORANDUM FOR THE PRESIDENT: seely 619) The State and Treasury Departments have drafted and discussed various provisions for inclusion in a Lease-Lend Agreement with the British. This memorandum lists first those matters on which both Departments believe the decisions are clear and, second, those matters on which the decision is less clear. In the latter situation, the considerations favoring alternative procedures are outlined. It is suggested that the question of form of the Agreement be passed without decision at this time and, once you decide the less clear points, an agreement can be drafted in a very short time. Clear Points 1. The Agreement should not include provisions relating to economic and other problems of the emergency, of post-war relief and of reconstruction. Provision shall be made in this Agreement for the designation of a British-American commission which will sit continuously for the purpose of 10 11 -2formulating solutions not only of those international economic problems which confront both governments, but also of those larger problems involved in a postwar relief and reconstruction. Such commission will seek to work out problems with existing inter-American bodies. 2. The Agreement should include the following: (a) An undertaking by the British to supply similar aid to us should our defense at any time require it. (b) An undertaking by the British to examine sympathetically our needs for additional bases, with a view to giving full support and assistance sotthe strengthening of our defense. (c) An undertaking by the British to return to the United States, upon request of the President, all material transferred which is in existence at the end of the var, whereupon the charge therefor shall be written off. 12 -3(d) Against their obligation to the United States for non-military materials, food, and similar items, the British shall receive credits for property, Services, information, facilities, or other considerations or benefits accepted or acknowledged by the President, the value of which considerations and benefits shall have been determined by the President. The terms and conditions of liquidating the balance of the British obligations for such non-military materials shall be determined by the President, perhaps after receiving recommendations of a joint United States and United Kingdom commission. Unresolved Points 1. The principal material that will be lease-loaned to the British will be military material which will be destroyed or used up in the var. The question arises what, if any, compensation shall be received by the United States for such military material. 13 Alternative ways of handling this matter are: (a) Write off the value of such materials upon their being consumed or destroyed. (b) Britain to furnish the United States war materials or articles not produced in the United States for suchoof the var materials transferred to Britain and consumed or destroyed which are not, in the opinion of the President, offset by one or another fora of consideration or benefit received or accepted by the United States. (c) Keep, as at present, what is essentially an open account, leaving for determination says a later at [Bone more propitious/time the question of what, if any, compensation shall be paid therefor by the British. Considerations Affecting the Selection of One of These Alternatives (1) It will unquestionably have a good effect on British morale to know that the 14 -5 cost of that part of the hose which is destroyed in putting out the fire is not a mortgage on Britain's future. As against this must be weighed the reaction, particularly at the present time, of the Congress and the American public to our receiving no consideration or payment for the bulk of the materials lease-loaned to Britain other than the use of such materials, when Britain has islands and investments in the Western Hemisphere. with there supp (shee. to biff , (11) To wipe off the obligation will keep the total British obligations within more manageable proportions and will thereby reduce the post-war settlement and adjustment problems. The alternative is to make clear to the British that they will not be expected to repay dollar for dollar for such war materials. Because of the inability now 15 6- to forence an appropriate basis of settlement, flexible powers are given to the President so that he say determine what, depending on future circumstances, say fairly be required of the British in compensation for such materials. (111) If, because of the foregoing, this is not a propitious time to crystallize the nature of the obligation of Britain for used-up war materials, then the matter can continue to be dealt with as at present, 1.0., through the continued maintenance of the open account for such materials. 2. Shall the value of the consideration and benefits received by the United States from Great Britain be determined by: (a) The President. (b) The President acting with the advice and recommendations of a joint British-American Commission. (c) A joint British-American Commission. 6/5/41 16 June 7. 194 Filee Mr. Bechras AS 4 e'slock yesterday afternoon 8 received the Bugaries Maister, at his request. Sve days previously the Secretary had called - to his office whos he was receiving the Minister for the first time. a that occasion the Haister had recounted to the Secretary his difficulties with the Rangarian Foreign Office as a result of his inability to obtain from our Foreign Funds Centrol the treatment of Hungarian official funds which the Foreign Office thought proper. I explained to the Secretary that there had been a 119910 confusion is the premises and that 11 was difficult for both Mr. Pell. our Minister to and Rr. de Ohika to have this rather complicated situation facing them while they are both see at their respective posts. The Hungarian Minister was of the impression that Mr. Pell's conversations with the Hungarian Foreign Office left the feeling that there would be little trouble is obtaining the arrangement is Washington which the Bangarian Government desired. Consequently, the Bangarian Foreign office had scolded their Minister here severely for his recommendations favering compliance with the requiremente of our Control. the Secretary added se to see what help I could give is the premises. I told his that we had conferred with Mr. Borie a few days previously and that I thought the affair was new following a proper course. The Minister came out to my office following his interview with the Secretary, and chatted with se for a while, since I had known his rather well several years whos he was Bungarian General General is New York. Upea his visit yesterday. the Minister stated that following the receipt of his last message from Delepeet, be had called on Mr. Berle at the State Department, and that the Latter had recommended that he como on to the treasury to see what we would do to arrange the matter under reference. Consequently, Mr. de Chilka had - to no. I told his that since his call earlier is the week we had received a further message from our Maister as Dadapoot. I recemented that he call on Mr. Peble ea Monday to discuss the question anow. AS 9:30 this morning I telephoned Mr. Poweon. in Mr. Poble's absence. to report the above conversations. I asked Mr. Seveon to inform Mr. Poble thereef before the latter receives the Fangaries Minister. I added my recommendation that we meet the Imagerias demande and liquidate this troublessme question. PMP 10:1ap-6/9/41 17 TREASURY DEPARTMENT INTER-OFFICE COMMUNICATION DATE June 7. 1941 TO Secretary Morgenthau FROM Mr. Cochran Personal STRICTLY CONFIDENTIAL Since you will be called upon to testify before the Senate Committee shortly on the extension of the Stabilization Fund and the authority to devalue further the dollar, may I make the following purely personal recommendation. In my memorandum of January 24, 1941, I recommended harmony with the Federal Reserve System and banking institutions in the face of our prospective borrowing proagram. In your broadcast on Thursday evening you expressed your genuine appreciation of the support which the American banks have so far given to your Defense Bond program. Obviously you will continue to require this support, and even more, for a long time to come. Considering that we are calling upon the public for such complete confidence in Government securities, should we not give them every possible assurance as to the stability of the currency in which these bonds are denominated? No one needs to con- ince me that the Secretary of the Treasury would be one of the last in this country o favor any further devaluation of our dollar. I think it unfortunate, however, that he Secretary is obliged in present circumstances to support a continuation of the evaluation authority if the granting of this authority arouses the slightest fear mong our people that eventual utilization of this power is probable. I should have preferred that the letter from the President to Congress submitting his 1941 extension legislation had not contained a request for a renewal of the evaluation authority. I did not see this correspondence until after it had been quoted in the press. Now that this program has been followed so far, however, there .s nothing that could be done except to yield gracefully in the Senate if strong opposision develops there against the devaluation authority. As I said, my preference would have been for the Secretary of the Treasury to give further evidence of his own conservative ideas on monetary matters by voluntarily suggesting that this authority be permitted to lapse. Before the Senate Committee I think that he should take advantage of any situation to come out for this policy. That is, he should state that if the representatives of the American people to whom the Treasury is confidently looking for full support of our defense program have the least concern with respect to the future of our dollar, he desires to be the first to have this concern removed. The Secretary could very properly refer to the fact that since he has been in office there has been no utilisation of special powers which might weaken the dollar in the least. On the contrary, he has steadfastly worked to make the dollar the keystone of the world's currencies. If the people through their Congressional representatives feel, however, that in this period of stress and acrifice they would be happier to see no authority existing for lowering further the gold content of their dollar, he would insist that their wishes be met. From a technical standpoint, I see no possible reason for our wanting to devalue the dollar further. No European country has ever, to the best of my knowledge, 18 -2 devalued a currency twice in the same generation with any success attending the second devaluation. Germany has sought steadfastly to prevent the second devalua- tion of the reichamark, after the bitter experience following the World War. It is true that Germany has resorted to trick marks for foreign transactions, but it has kept the reichsmark a fixed currency from the internal standpoint. I believe that for us to tinker with our currency further would mean a national catastrophe. Certainly it is no time to leave doubts in the minds of our people with respect to the dollar when we are calling on them for big loans and taxing their wealth and revenue heavily. Only this week we have heard of withdrawals of currency for hoarding purposes in various parts of the United States because of the fear that the legislation suggested this week at the instance of the War Department might permit seisure by the Government of private banking deposits. However far-fetched these fears may be, they are bound to grow as our country becomes more involved in the international difficulties. Should our taxes pile up enormously and our country suffer through labor disorders as well as become engulfed in a terrible war, it is entirely conceivable that people would not only become concerned as to the value of their money, but also seek places of safe refuge. To meet such contingencies our currency should be as strong as possible, and our Stabilisation Fund should be available. BMP. 19 TREASURY DEPARTMENT INTER-OFFICE COMMUNICATION DATE TO Secretary Morgenthan FROM Mr. Cochran June 7. 1941 STRICTLY CONFIDENTIAL When I reported to you at Staff meeting on June 5 the receipt of a letter from Under Secretary of State Welles reporting his suggestion that the Colombian Ambassador discuss directly with the Treasury the question of possible cooperation of our Stabilization Fund with that of Colombia, you left to Mr. Bell's group the question as to whether we should receive the Colombian Ambassador now or, as Mr. Bell suggested, postpone any new negotiations on Stabilisation matters. Mr. Bell and I were definitely of the opinion that no new negotiations should started in June. In the first place, we are still likely to have a number of questions arising with the institution this month of the Stabilization Board in China. be The Argentines may also possibly approach us for some arrangement to substitute for the unratified arrangement which we entered into some months ago. Then too, there remains the task of getting the extension of our Stabilization Fund through the Senate yet this month. dated 619141 When I mentioned the Colombian matter to the Secretary, when he was talking with by telephone from the farm this morning, he approved the idea of my drafting a Letter to Mr. Welles suggesting the postponement of any Treasury discussion with the Colombian Ambassador until after Congress determines the extension of the Stabilisaion Fund. A first examination of the Colombian proposition would indicate that this is request for around $1,000,000 to supplement the Colombian Stabilisation Fund to such an extent that it may be able to pay arrears of dollar exchange due for imports into Colombia. This arrangement would presumably supplement credits to be extended to Colombia by the Export-Import Bank. It has been my argument that the Stabilisation Fund should not be used for loans of this purpose to Latin American countries, that is, making up their trade deficits. The Secretary's recommendation along these lines when Peru was seeking a Stabilization Fund arrangement has apparently been successful one, in that we have purchased copper and other Peruvian products to a build up stock piles in this country and have relieved the dollar exchange shortage of Peru by this method, without the necessity of a Stabilisation Fund arrangement. Conceivably something of this sort might be done with Colombia, or the whole problem left properly in the hands of the Export-Import Bank. Recalling our negotiations with the Colombian Ambassador concerning the settlement of private debts owed American holders of Colombian bonds, new negotiations with the Colombian Ambassador on a Stabilisation arrangement could not be looked forward to with much pleasure or confidence. While I an not favorable to the idea of making any definite commitment to the British or anyone else at present as to what we might, with our Stabilisation Fund or gold, do to help them in the future, I believe it is very much to our own interest 20 -2to refrain from small Latin American operations with the Fund and conserve our resources if the Fund is extended after June 30. 1941. In a real emergency, the Secretary could always go before the appropriate Committees of Congress and raise the question as to buying sterling if the British urgently require dollars. We undoubtedly shall have a real role to play with our Stabilization Fund in post-war reconstruction of the international financial system. Canada may prove one of the best fields to enter toward this end. But with the future so uncertain at present, I think we should continue a cautious policy and certainly not become involved in petty or political-financial arrangements with Latin American countries, particularly with those having a bad debt record. 21 OFFICIAL COMMUSBCATION THE SECRETARY OF STATE WASHINGTON D.C. DEPARTMENT OF STATE WASHINGTON In reply refer to June 4. 1941 RA Caused 49/41 My dear Mr. Secretary: The Government of Colombia has submitted, through the Colombian Ambassador, a request for financial and economic assistance involving credits for public works and agricultural development purposes and cooperation with the Colombian stabilization fund. There is enclosed a copy of a translation of a memorandum on this subject presented to the Department by the Colombian Ambassador. Copies have also been made available to the Export- Import Bank and to the Department of Agriculture. The Department is requesting that the Export-Import Bank take action with respect to the general public works and agricultural development credits. The question of cooperation with the Colombian stabilization fund appears to the Department to be properly a subject for discussion with the Treasury. In The Honorable Henry Morgenthau, Jr., Secretary of the Treasury. 22 -2- In the light of our previous discussions regarding the possibility of monetary and stabilization arrangements with certain of the other American republics, in which from time to time reference to Colombia has been made, I am suggesting that the Colombian Ambassador discuss the matter directly with the Treasury. Sincerely yours, Apth Under Secretary Enclosure: Copy of memorandum with attachments. 23 (TRANSLATION) Item the Jam that The Government of Celebbia, after a careful study of the national commute situation and the disturbances in internal order that eight be produced If both the public works now being executed and the plans for industrial promotion and agrapian defense were found to be paralysed for lack of resources, has come to the conclusion that 18 is an indispensable accessity to secure extraordinary funds in order to prevent the economic and social that would be brought about by the wateresses responsion of such efforts of the present administration. The tial object of the policy of public works and industrial and agricultural promotion that the Government has been pushing is that of conserving the nation's purchasing power and reducing as much as possible economic flustuations and drastic reductions in the standard of living of the workers and the population in general. This program forms part of the economic, fiscal and monetary polier that the Government has been saintaining, in order to reduce, as far as possible, the effects of the erisis produced by the var, and today it constitutes a plan Judisiously studied and natured and in active execution, in the main. The said plan was approved by the National Becnonic 24 w I Council as specially ouised w stimulate industry and the development of important agricultural regions and to - a more direct amount for consumers' goods, in keeping with the variable circumstances of the - in each of the regions that are going to be improved by the works planned. The object of a loan for insuring the Fapid completion of the system of highways and for giving an impulsion to the schemes for industrial and agricultural development given in Annomes 1 to 8 is to counternot the possible dangers of all commonie depression that is about se occur and, on the other hand, to stimulate the demand for articles of consumption by the most rational and scientific means, such as that of directly augmenting the purchasing power of the laboring assess. THE PLAN FOR INVESTMENTS The determination of the works and public services of undeferrable urgeney, requiring the immediate atten- tion of the State, has been the subject of a very eareful study on the part of the Government. The investments that have been planned with the aid of specialised technical organizations in each branch are calculated at U.S. $13,000,000, or 25 or twentyethe million seven hundred narry thousand Celembian surrency, at the rate of exchange of 198 present, and the list thereof: is the following, without any when of priority having been strietly indicated a. Expenditures during the first year of work of the official plan on defense or the banana industry and agricultural develope Peese b. ment in the Departments del Registere ..... 1,857,539.00 Gest of She irrigation and arainage works. 2,187,800.00 O. Resources for the development of the works of the Runceipel Improvement Fund d. e. Increase in capital of the Industrial Prem 2,000,000.00 notion Institute Construction of three large hydroclestrie plants f. 5,782,000.00 Increase in capital of the Stabilitation Fund. 8. 1,202,000.00 Cost of the works included when the plans for highways, regulation of and sion and construction of public buildings & Pale same years the benefits plant was - is ⑉ 4,002,000.00 26 on a large seale and came se be a very notable item in Ceterbia's foreign trade. Unfortunately, an epidente on the plantations, known by the scientific name of Signtoke, same along to affect, to the first pleas, the prosperity of that flourishing industry to a marked extent. Later, the inovitable Peparcussions of the European confliet represented the situation in the Departments dol Negdalena, which saw the exports of fruit reduced to a staimm, which experts had been made, in large quanti ties to regland and Holland in particular in former times. The of the Department having been prestruted by the advance itrometeness that have just been nextioned, ss so - unsveidable duty of the national Government to protest by wheterer name are within 135 reasts the interests of the Indubitants of that motion, which are closely beeted with - whole of the - common of the country. emotion - in this field - be Identified to protecting the - Intertary, the future proports of which - - but 18 - with more prestical alma, 1 - that or / - / called - to take the - to - of this please / earing - years comminded almost the was - explorees in that Notes of - I - - - Individual the - of 6 27 prime importance which the Government plane so pasts I Departments del Registere, in accordance with the fure. going remarks, and the cost of which 10 calextated of - one million eight hundred thisty thousand five hundred - Be COST OF THE IRRIGATION AND DRATHAGE WORKS THAT CA 85 ACCORD 3RF If A Profession 9 TV YEARS The Government has favored a policy in the matter of irrigation and draisage of lands, for the purpose of inconclusive porating in agriculture wide areas of the territory of the country which 60 far have been almost entirely left out of such activities because of natural obstacles and which can easily be saved. Annex No. a enumerates one by one the works planned, the cost of WHIC 10 calculated at two million one hundred eighty-seven thousand five hundred peses. The works cleaned cruld not be pashed with the ordinary resources of the Treasury, and the delay in t eir execution becomes an actual loss of wealth. It is true that considerable work has already been done, but various incompleted projects still remain, which it is indispensable to terminate as noon as possible. As It is impossible to make reference to each of the items included under the plan for drainage and irregation, only three works are mentioned, which in them selves alone given an idea of the importance of the plan of 7 28 of official action in this field. Pretness of the Digress I Due to the insufficiency of the Seravita River, the natural discharge free the Priquene Lagoon in the Departments of Boyood, an approximate extent of 26,000 fanegadas (39,180 aeres) of land of extraordinary fertility was flooded is that region is the relay season. The construction of a large drainage eanal has been planned, to replace the bed of the Saravita River, a work which is well advanced and will allow the utilisation of the area formerly liable to flooding. Prainess of the Secances Valley This work is similar to the proceding, in as such as it involves the construction of a main canal running to the lower portion of the Sogamoso River and returning the flood waters to the said river. The work was begun in 1936 and will benefit an area of 7,000 fanegadas (11,130 aeree), likewise fertile enough for cultivation. Burglagrands Irrigation Canal (Causa Valley) These works were commenced as early as 1936, and have the purpose of providing water for irrigation and watering over 29 -7- over an area of 15,000 fanegadas (23, 850 acres), for developing water power on a small scale, the land along the canal generally being lower than the canal, and for supplying drinking water to the town of Bugelagrande. The Government is being reimbursed for the sums spent on the works of drainage and irrigation, and there is an improvement tax equivalent to thirty per cent of the net benefit obtained by the owners of the lands benefitted, that 10, after deduction of the amount for the cost of execution of the works; the State may receive in land the amounts that are to be paid for one resson or another. C. RESOURCES FOR THE DEVELOPMENT OF THE WORK OF THE CONTRIPAL IMPROVEDOR PUND A custom that has been established in the political and administrative organization of the country with fortunate consequences for its normal development caused the very life of the sunicipal units to depend almost exclusively, for many years, on the aid voted by the National Congress, with a standard that was not always characterized by equity and the proper selection of the real needs of each city or town. with 30 -8- With the purpose of fundamentally correcting this anonalous situation, the present Government issued Extra- ordinary Decree 503 of 1940, which established the Municipal Improvement Fund, an organization provided with reletively considerable income of its own, and called upon to provide methodically the municipal public works of essential importance, such as the construction of aqueducts, severs, hospitals and buildings for primary instruction. The direct aid of the Congress to the sunicipalities has been suspended, with evident benefit to good order in the preparation and application of the national budget. Colombian cities, especially the small ones, are confronted with real problems of elementary hygione, such as the supplying of potable water and the building of sewer systems, which are aggrevated by the constant mensee of tropical diseases. The accomplishment of such works with the yield from the taxes st the disposal of the Municipal Improvement Fund would require work extending over very many years, with evident injury to the public health. Hence Decree 803, mentioned above, foresaw this and authorized the procuring of loans intended for the accomplishment of the works mentioned, among which the Government would select, first of all, the meet urgent ones connected with the building of 31 of aqueduete and sewer systems, which would call for the immediate investment of one million one hundred two thousand pesce ($1,102,000.00). The Manicipal Improvement Fund could guarantee, from its own income, the service on the credit operations intended for the financing of the works entrusted to it. The Bank of the Republic, in virtue of an agreement concluded with the National Government now in effect, has the character of trustee for all the credit operations which are entered into for the Improvement Fund, and for that purpose the said Bank collects directly the yield from the taxes established by Deoree 503 of 1940. Annex No. 3 contains complete data on the organisation of the Municipal Improvement Fund, its financial capacity and the work it has performed up to this time. D. INCREASE IN THE CAPITAL OF THE INDUSTRIAL PROMOTION INSTITUTE. This corporation, created by Extraordinary Decree 1157 of 1940, 1s operating at present with a capital of two million peepe subscribed by the State and a small additional amount from . private credit institution. The orrenic Decree provides that the capital of the Institute must not be less than four million pesos, an 32 -10- an amount still very slight, in view of its function as a promoter of industries in a country of incipient development. The Government, however, is serely attempting at present to complete the stated capital of four million pesos indicated by Decree 1157 of 1940. The present administration, convinced of the imperative need for stimulating the industrial development of the country, did not hesitate last year in supplying its quota for the organisation of the Institute, despite the fact that at that time many national services were also urgently demanding the financial aid of the State. On the other hand, the founding of this organization likewise followed the Government's purpose of eliminating a practical drawback, traditional in our legislative annals, that of granting national aid to industries which individuals or certain official organizations were planning to establish. Now, such assistance can be greated only through the Institute, the management of which is is the hands of an autonomous Board composed of real exports and business men and presided over by the Minister of National Economy. The Institute has as its main object to subscribe for shares in undertakings which private enterprise and capital have not been able to develop satisfmerorily themselves, after 33 -11- after a serupulous study (has been made) of the suitability and safety of the investment. So in no case can it be an organization competing with private industries which operate normally. E. CONSTRUCTION OF THREE LARGE HYDRO-ELECTRIC PLANT3. The industrial development of the country, which is being initiated chiefly by means of the official action exercised through the Promotion Institute that has been discussed above, encounters an insuperable obstacle in the lack of electric power in sufficient amounts and under reasonable conditions as to price. Although 11 is true that during the last few years we have made some progress in the work of providing our municipalities with electric services indispensable for domentic use and public lighting, 11 is no less true that it has been possible to set up only one comparatively large plant for attending to the needs for industrial production in recent times, at Guedelupe, Departmento of Antioquia. The reproductive usefulness of this work has been manifest and is evident at eight, if we observe the extraordinary progress of the city of Medellín, as a manufacturing center of first importance in Colombia. Technical 34 -12- Technical studies that have been going on for a long time make it advisable that the construction of three large hydro-electric plants be undertaken without delay, distributed over the national territory so that they can be utilized by each of the principal areas which, thanks to a combination of favorable circumstances, are destined to attain a considerable indiatrial development in the near future. In this way, one large electric plant has been planned for the west of the country, another in the east and the last in the Departamento of Boyaca. All of them utilize natural waterfalls which se far have represented an unproductive capital, and their estimated costs amount altogether to the sum of five million seven hundred twenty-eight thousand pesos, which are given separately and in detail in Annex No. 4. F. INCREASE IN CAPITAL OF THE STABILIZATION FUND. The Government of Colombia has begun to establish on sound bases the outlines of a policy of public credit and regulation of international exchange. An instrument of this policy has been the Stabilisation Fund, the work of which, although provided for by Law 7 of 35 -13- of 1935 was not really begun until last year, in virtue of the provisions of Extraordinary Decrees 563 and 669 of 1940. This organization, which protects Colombian export and import trade from sudden fluotuations of exchange, has contributed effectively toward maintaining the stability of our monetary system and consequently toward guaranteeing the interests of foreign investors in the country. By means of a system based on the acquirement of oredite for adequate periods, the stabilization Fund has been able to advance to foreign exporters, at special rates of exchange designated reasonably, the value of the goods shipped to Colombia, the payment for which had to be postponed for a long time because of the unfavorable conditions of our export trade during the past year and que to the severe standards of control of exchange which it was neces- sary to order in defence of the metallic reserves or the Central Bank of Issue, by means of the classification of goods imported into the country in four priority classes. Trade with the United States of America nso been greatly benefittei, in the first place, by the policy of the Stabilization Fund to which reference hea been made. The Fund has e capital of its own of three million three hundred thousand pesos and although it has credit available, 36 -14- available, in view of the solidity of its organization, 18 is necessary to endow it with new resources which will allow it to perform its functions better and which can in no 0688 be less than two million pesos, & sum which the Govern- ment is planning to devote to augmenting its capital. The management of the Fund is entrusted to an autonomous Board composed of the Ministry of the Treasury and Public Credit, the Governor of the Bank of the Republic and one member designated by the President of the Republic. U. COST of THE WORKS INCLUDED IN THE PLANS FOR REGULATION OF NAVAGATION AND CON FTRUCTION 2) PUBLIC BUILDINGS. In Annex No. 5 there is described in detail the plan for public works and in . separate seperandum there can be seen the observations on the economic importance of the roads that are included in the plan for national highways, regarding the undeferrable need for improving the navigation services and with respect to the urgency of accomplishing the construction of various public buildings. The Government is developing a plan of works is the capital of the Republic which is giving employment to a considerable number of hands. As these works are bound to be suspended is case the country can not obtain reseurees derived 16 37 -15- derived fres the utilization of external credit, we shall be feeing a truly difficult situation, since our economy would be unable to abserb the large number of workers employed on such building work. The continuation of the letter is, without any doubt, - essential factor in the maintenance and stability of social peace in the country. The works mentioned could not be kept up with the ordinary resources of the budget, for the Government will find itself forced within a short time to establish priority for public expenditures, attending preferably to the payment of interest and emortization of the public debt, interior policing and the strictly necessary services. 38 RA UNITED MR. B POLITICAL DUGGAN MAY 23 1941 DEPARTMENT OF -MEMORANDUM The Collecto) DATO DE LAS SUMAS QUE SE PAGAN POR ARRENDAMIENTO DI LOCADIBON OF PARA OFICINAS NACIONALES EN BOGOTA. MAY 23 1941 Mayo de 1941. THE AMERICAN REPUBLICS DEPARTMENT OF STATE Servicio Dirección Canon mensual Total Mrio. de Correos y Telégrafos: Oficinas principales del Minis terio. Oficinas de Correos Auditoria Fiscal del Mrio Depósito de Repuestos Archivo del Ministerio Edif.Hospicio $2.100.- Calle 16 cra.8 #18-26. cra. 8,calle 19 800.80.100.- calle 14,cra.5 200.- 3.280.- celle 16,cra.16 660.- calle 12,/-2-60 380.350.- Cra. 9a 140.- Mrio. de Educación Nacional: Depósitos y almacenes 660.- Ministerio de Gobierno: Procuraduría General Identificación Electoral Depósitos Imprenta Nacional Oficina Médico-Legal cra.7 #8-65 cr.19A 12-73 80.- 810.- 140.- Ministerio de Guerra: ficinas de Intendencia, Aviaión Civil, Marina, Sanidad,Di rección General de Servicios y otras alleres de la Maestranza cr.7,calle 7a. 1.100.Calle 10 #2-43 180.- 1.280,- Ministerio de Hacienda: Oficinas del Ministerio Cra.ba. entre calles 13 y14 1.350.- 1.350.- Ministerio de la Economía: Departamentos Agricultura, Ganaderia. Comercio y Empresas de Servicio Público Proveduria. Turismo, Almacenes. Bco.Central H. 1.550.- Calle 15-0-23 800.- 2.450.Pasan : 9.970.- 39 -2Vienen $ 9.970. Ministerio de Minas: Oficinas principales del Mrio., Calle 12 #8-74 500.- Cr.8A #15-39.- 160. - Ed. Cardenas. f.025.- Interventoria de Petroleos Archivo y Sec. Ingeniería Ed. Vasquez 40. 700.- Ministerio de Trabajo: Oficinas principales del'Mrio.. Otras oficinas del Mrio Ed.Camacho R.. 500.70.120.- cra. 12 #7-93.. Calle 19 #6-25 Oficina para desocupados Almacenes 1.715.- Contraloría Gral.de la República Ed. Sefair Cra.7 #5-70. Oficinas Principales Depósitos Otras dependencies Censo Nacional 1.400.50.- Ed. Solano 125.300.- Estadística y Comercio Exterior Calle 12#10-43 Cra. 9 #11-12- 150. 2.025.- Consejo de Estado Cra. 7 #7-68. 600.- 600.- Tesorería General de la Rep Ed.Banco de la 1.000.- 1.000.- Museo Nacional Bco. de la Rep. 360.- 360.- Sociedad de Agricultores Cr. 8 #11-66.. 300.- 300.- República : $16.670.- Total Arrendamientos pagados mensualmente Arrendamientos pagados anualmente $ 16.570.$..200.040. - (fdo) E. de Santamería Director General de Edicios Nacionales 40 REPUBLICA DE COLOMBIC Seccion Numero Ministeria de Hacienda ANEXO Na I y 'Credito Publico Boyotie mayo 9 de 1941 INVERSIONES NECESARIAS PARA EL PRIMER AÑO DE LABORES, 0 SEA, PARA LA INICIACION DEL PLAN OFICIAL SOBRE DEFENSA Y FOMENTO AGRICOLA EN LA ZONA BANANERA DEL DEPARTAMENTO DEL MAGDALENA. Campaña oficial contra la infeccion de la Sigatoka (Vease presupuesto discriminado anexo) $ Nuevos cultivos (maquinaria agrícola, crédito y parcelaciones) Centrales de beneficio 353.895.00 500.000.00 100.00.00 Ganadería 50.000.00 183.605.00 Riegos y drenajes Almacenes (Comisariatos) Centro Nixto Crédito Bananero 100.00.00 50.000.00 500.00.00 $1'837.500.00 DETALLE DE LOS POSIBLES GASTOS DE LA CAMPA.A CONTRA LA SIGATOKA Y DEL CENTRO DE INVESTIGACION Y FOMENTO EN UN ANO. Administración y direccion Investigación y Extension Viaticos 12.120.00 23.400.00 54.000.00 6.900.00 4.500.00 Otros Gastos 20.475.00 Jornales Transportes aquinarias y equipos de trabajo Fungicidas y materiales sanitarios Construcciones Imprevistos $ 105.00.00 105.00.00 15.000.00 7.500.00 $ 353.895.00 41 Levian REMUBLICA DE COLONBIA Numero Ministerio de Hacienda ANEXO N° 2 Crédito Publico Bogola mayo 9 de 1941 sobre las sumas necesarias para la intensificación de las obras de irrigación y desecacion rea lizables por el Ministerio de la Economía Nacional en un plazo de dos años, con un presupuesto de $2'187.500.00 que son 1'250.000 dólares al cambio del 175% A). CONCLUSION DE LAS CBRAS QUE SE EJECUTAN ACTUALMENTE, SIN INCLUIR LAS QUE VAN A SER TER INADAS BM UN PLAZO DE DOS o TRES MESES, COMO LA REPRESA DE SAMA CA Y LA IRRIGACION DE MARIQUITA.- a) - Desecacion de Fúquene Para la terminacion del Canal de Ubaté y el sector que falta del Saravita en doce meses Para la construcción de esclusas regu ladoras y algunas obras accesorias Para pagar el segundo avaluo de los $90.000.00 70.000.00 terrenos beneficiados 9.000.00 Total para Fúquene $169.000.00 $169.000.00 b) - Desecacion de Sogamoso Para la terminacion de los canales proyectados Para la adquisición de tres equipos de dragado (aproximadamente) Para los avaluos de los terrenos be- neficiados Para las obras complementarias de regulación $180.000.00 80.000.00 15.000.00 70.000.00 Total para Sogamoso $345.000.00 $345.000.00 Pa8an $514,000.00 42 Section DE COLONBIA Nalemoro Ministerio de Hacienda y Cridito Publico -2- vin. n Bogota $514.000.00 c) - Irrigacion de Bugalagrande. Para la conclusion del canal princi-. pal y sus obras accesorias hasta la region de Riopaila, en diez meses $ 80.000.00 $ 80.000.00 Total para la conclusion de las obras que se ejecutan $594.000.00 B). OBRAS ESTUDIADAS Y DE LAS CUALES SE TIENEN PRESUPUESTOS MAS 0 MENOS COMPLETOS. a) - Represa del Sisga en Choconta, incluyendo indemnizaciones b) - Represa del Ríofrio en Tabio.... c) - Una esclusa sobre el rio Bogota, similar a la que se construyó en la Ramada d) - Esclusa del Tunjuelo, en Bosa $300.000.00 300.000.00 90.000.00 30.000.00 e) - Para iniciar el plan irrigatorio de Llanogrande y Llano de Oriente, a base del rio Neiva, en el Municipio de Campoalegre, incluyendo la posibilidad de adquirir los terrenos beneficiados para parcelarlos y de establecer una planta electrica para cinco mu300.000.00 nicipios $1'020.000.00 Total para las obras estudiadas c) OBRAS ESTUDIADAS POR ALGUNOS DEPARTAMENTOS, PERO CUYOS PRESUPUESTOS REQUIEREN UNA REVI- SION POR PARTE DEL MINISTERIO DE LA ECONO - MIA NACIONAL. a) - Para iniciar irrigaciones de Enciso, Capitanejo y Servità, en el Departamento de Santander $ 83.500.00 b) - Para iniciar la irrigación de los llanos bajos del Tolima, a base 160.000.00 de los rios Coello y Luisa Total para las obras estudiadas por los departamentos $243.500.00 $243.500.00 43 Seccion kennica DE COLONBIA Numero - historio do Hacienda - 3 y Cridito Publico Bogota NOTA: Estas obras no podrían realizarse en un plazo de dos años. D) OBRAS URGENTES DE REALIZACION FACIL Y DE POCO COSTO Y PARA LAS CUALES LOS PRESUPUESTOS SON APRECIABLES CON BASTANTE EXACTITUD POR EL VALOR DE OBRAS SIMILARES. $ 80.000.00 a) - Represa del rio Teatinos b) - Irrigacion de Alvarado, en el To- 50.000.00 lima Total de estas obras $130.000.00 $130.000.00 E). ESTUDIOS PARA INICIAR, CON SUS VALORES APROXIMADOS. a) - Estudio de irrigacion en el Departamento del Atlantico $ 50.000.00 b) - Estudio de un plan irrigatorio en Valledupar y en la provincia de Padilla c) - Estudio del Canal del rio Palo para beneficio de los Municipios de Candelaria, Miranda y Pradera d) - Para estudios en el Tolima e) - Para los estudios detallados so bre los ante-proyectos existentes en los Municipios de Carnicerías, la Jagua, el Agrado,Yaguará, Cabrera, Aipe y Baraya (Huila) f) - Para estudios en algunas regiones del Norte de Santander Total para los estudios 50.000.00 30.000.00 20.000.00 30.000.00 20.000.00 $200.000.00 RECAPITULACION A) - Conclusión de las obras que se adelantan B) - Para las obras estudiadas c) - Para obras estudiadas por los Departamentos D) - Para obras de facil realización E) -- Para iniciar los estudios mas importantes SumaTOta1 $200.000.00 $ 594.000.00 1'020.000.00 243.500.00 130.000.00 200.000.00 $2 187.500.00 44 Seccion MEMBER DE COLOMBIA Numero ANEXO N° 3 Ministerio de Hacienda y Crédito Publico Bogota mayo 9 de 1941 sobre la estructura económica del Fondo de Fomento Municipal. ESTATUTOS QUE RIGEN SU ORGANIZACION Y FUNCIONAMIENTO. Decretos Nos.503 (marzo 8), 562 (marzo 27) y 575 (marzo 27) de 1940. RECURSOS ECONOMICOS DEL FONDO. a) - Impuestos de la Ley 12 de 1932; b) - Utilidades en el Banco de la Republica; c) - Impuesto sobre consumo de grasas y lubricantes; d) - Impuesto sobre primas de seguros; e) - 20% sobre el superavit fiscal de cada vigencia; f) - Las sumas que se apropien en el presupuesto de gastos de cada vigencia para el Fondo; g) - Los intereses y reembolsos de las sumas que otorgue en prestamo el Fondo; h) - El producto de operaciones de crédito y las sumas que los departamentos, intendencias, comisarías y municipios consignen como aportes para obras. Las operaciones de crédito que obtenga el Fondo pueden hacerse con dos finalidades: a) - Para incrementar el cupo general de los departamentos, intendencias y comisarías, y b) - Para incrementar el cupo de un determinado departamento, intendencia o comisaria, del Municipio de Bogota, o de determinada obra del Fondo de Fomento. Hasta la fecha solamente se ha efectuado una operación, consistente en la emision de la suma de $3 000.000.00 en "Bonos de Fomento Municipal de 1940", autorizados por el Decreto 1634 de 1940, para incrementar las obras de Fomento Municipal del Municipio de Bogota, determinadas en el Decreto 1350 de 1940. La emisión de bonos se autorisó para amortisacion en 30 afios y con un interes anual de 6%. El servicio de los aludidos bonos 10 cubre el Fondo de Fomento Municipal al Banco de la Republica en virtud del 45 Section REPUBLICA DE COLOMBIA Numero inisterio de Hacienda 'Credite Publico 2 - Boyota. contrato de fideicomiso celebrado el 20 de septiembre de 1940, y se hace por cuotas trimestrales de cincuenta y cuatro mil seiscientos noventa pesos ($54.690.00) o sean doscientos dieciocho mil setecientos sesenta pesos ($218.760.00) anuales, con cargo al cupo del Municipio de Bogota en la distribución de los recursos del Fondo. FACULTAD PARA CELEBRAR OPERACIONES DE CREDITO El Decreto 503 de 1940, Art. 52, dispone: "El Gobierno podrá efectuar operaciones de crédito interno o "externo, a corto o a largo plazo, con garantía de los recur"sos propios del Fondo, y el producto de dichas operaciones "se aplicará a cumplir los fines previstos en este Decreto,de "conformidad con lo establecido en el ordinal g) del Art. 2a. "Los contratos que se celebren en desarrollo de esta autoriza"ción, no requieren, para su validez, sino la aprobacion del Exmo senor Presidente de la Republica, previo el concepto fa"vorable del Consejo de Ministros y de la Junta Nacional de "Empréstitos. Esta última formalidad no será necesaria para "aquellas operaciones de Tesorería que impliquen únicamente "adelantos a cuenta de las entradas ordinarias del Fondo, y "que deban quedar saldadas dentro de la misma vigencia fiscal "en que se otorguen." DISTRIBUCION DE LOS RECURSOS DEL FONDO De conformidad con lo dispuesto en el artículo 11 del Decreto 503 de 1940, del total de entradas correspondien tes a los ordinales a), b), c), d), e) y f), la ciudad de Bo gotá tendra derecho a un cupo del 15% y el resto se destinara a inversiones en los departamentos, intendencias y comisa rías, distribuyendo el 80% con relacion a la poblacion que pa ra cada una de ellas arrojo el censo de 1938, y el 20% restan te, por partes iguales, entre las mismas entidades, siendo en tendido que las intendencias y comisarías se considerarán en conjunto como dos unidades. A su vez, la distribución de lo que del 20% citado corresponda a las intendencias y comisarías, se hará sobre la base de la poblacion respectiva de cada una de estas entidades. APLICACION DE LOS CUPOS Y OBRAS DE FOMENTO E1 Decreto 503 de 1940 establece las siguientes 0- bras que pueden atenderse con los fondos del fomento municipal: 46 Seccion menualica DE COLOMBI Numero inisterio de Hacienda 3 'Cridito Publico Bogola Acueductos, hasta un 60% del costo de la obra; Alcantarillados, hasta un 60% del costo de la obra; Locales escolares para la enseñanza primaria, hasta por el total de su costo; Hospitales, hasta por el total de su costo, y Plantas Eléctricas, en la proporcion de aporte que establece la ley 126 de 1938 Con respecto al Municipio de Bogota el Decreto organico del Fondo dispone que el Gobierno senalará por decretos especiales, las obras con destino a las cuales el Fondo puede hacer operaciones para la ciudad dentro del 15% previsto. ARBITRIOS FISCALES DEL FONDO EN EL BIENIO 1940-1941. En 1940 ingresaron al Fondo de Fomento Municipal las siguientes cantidades: $1'717.666.42 Por rentas de la ley 12 de 1932 208.773.62 Por participación en Superavit fiscal de 1939.. Por apropiaciones presupuestales 452.000.00 T. o t a 1 $2'378.440.04 Para 1941 se hallan presupuestadas a favor del Fondo las siguientes cantidades: Rentas de la ley 12 de 1932 $2'347.863.45 298.224.93 Impuestos sobre grasas y lubricantes Impuesto sobre primas de seguros Utilidades en el Banco de la Republica Participación Superavit fiscal 1940 Total RESUBRED 88.648.35 456.666.66 340.000.00 $3'531.403.39 Total para el bienio: 1940 1941 $2'378.440.04 3'531.403.39 $5'909.843.43 47 Section DE COLOMBIA Numero Ministerio de Hacienda Cridito Piblico Bogota. Los productos de las rentas del Fondo de Fomento en el primer trimestre del presente año, se han presentado asi: $ 661.826.59 Rentas de la ley 12 de 1932 443.87 Impuesto sobre primas seguros 92.913.14 Impuesto sobre consumo de grasas y lubricantes. 250.000.00 Utilidades en el Banco de la Republica Total en el trimestre $1'005.183.60 PROGRAMA DE INVERSIONES EN EL BIENIO 1940-1941 La Junta Directiva, al iniciarse el funcionamiento del Fondo, senaló la suma de $7 300.000.00 como monto total de los recursos del Fondo que debian distribuirse en el cupo de los departamentos, intendencias y comisarías, y el Municipio de Bogota, distribucion que dio el siguiente resultado: Municipio de Bogota Departamento de Antioquia del Atlantico de Bolivar de Boyaca de Caldas del Cauca de Cundinamarca del Huila del Magdalena de Narino de Santander del Norte de Santander del Tolima Intendencias del Valle Comisarías Total $1'095.000.00 782.351.22 236.717.83 531.296.92 514.796.73 534.126.40 288.681.42 578.196.50 206.045.42 280.545.57 353.803.99 282.834.12 442.654.48 402.386.95 441.186.45 197.083.94 132.292.06 $7'300.000.00 La Junta Directive del Pondo, hasta la fecha, ha aprobado contratos por un monto total de $5'493.554.43, distri- buídos así: Para acueductos Para alcantarillados Para plantas eléctricas Para hospitales Para locales escolares paSan $1'712,566.16 451.162.60 402.072.14 385.390.09 847.637.86 $3'798.828.85 48 Seccion menuslica, DE COLOMBIC Numero inisterio de Hacienda - 5 - y Cridito Publico Boyota V 1 e n e n $3'798.828.85 Contrato global Departamento de Caldas de Antioquia Municipio de Bogotá 384.126.40 447.772.62 862.826.56 Total $5'493.554.43 Por cuenta de los contratos anteriores se han efec- tuado pagos, por valor de $1'875.318.52. El manejo financiero del Fondo corresponde exclusivamente al Ministerio de Hacienda y Crédit to Público, de confor midad con el artículo 7° del Decreto 503 de 1940. 49 REMUSLICA DE COLONBIA Section Nú mero Ministeria de Hacienda ANEXO N° 4 'Cridite Publico Boyoli mayo 9 de 1941 PRESUPUESTO PARA LA CENTRAL HIDROELECTRICA DEL RIO PALO.- Características: Caída: 170 metros netos Caudal: 10 m3/seg. Potencia: 10.900 kilowatios en los bornes del generador Poblaciones que se benefician: Cali, Calcto, Puerto Tejada, Santander, Corinto y Miranda. Obras de captacion $ 50.000.00 Canal de conduccion: Longitud 12 Km. revestido en concreto reforzado a $124.25 metro Desarenadores: 900 metros cúbicos de concreto armado a $85.00 cada uno Obras de arte: túneles, viaductos, etc Cámara de carga: 250 metros cúbicos de concreto armado a $85.00 cada uno Anclajes: para tubería de presion 585 metros cu bicos a $30.00 cada uno Tubería de presión: Diámetro 84" Longi tud 600 metros. Peso 830 toneladas a $400.00 cada una.. Casa de máquinas: incluyendo montaje Maquinaría: 2 grupos de 5500 KW cada uno Sub-estaciones: Línea de alta tension: 60 Km a $4.000.00 Km tota1 1'491.000.00 76.500.00 160.000.00 30.000.00 17.500.00 332.000.00 45,000.00 190.000.00 110.000.00 240.000.00 $2'742.000.00 Precio del kilowatio generado y trasmitido $249.27. 50 DE COLOMBIA Seccion Ministerio do Hacienda y Cridito Publico Begolai. PRESUPUESTO PARA LA CENTRAL HIDROELECTRICA DEL RIO SUAREZ Características Caída: 100 metros netos Caudal: 10 m3/seg. Potencia: 6700 kilowatios en los bornes del generador Poblaciones que se benefician: Socorro, Contratacion, Simaco ta, Chima, Guane, Galan, Palmar, El Hato, E1 Paramo. Obras de captacion Canal de conduccion: 5 Km a $125.00 metro Desarenador: 800 metros cúbicos de concreto a $85.00 cada uno Camara de carga: 250 metros cúbicos de concreto armado a $85.00 cada uno Obras de arte: túneles, viaductos, etc Anclajes para la tubería: 300 metros cúbicos de $ 80.000.00 625.000.00 68.000.00 30.000.00 100.00.00 concreto cilcópeo a $30.00 cada uno Tubería de presion: 700 toneladas a $400.00 c/u Casa de máquinas: incluyendo montaje Haquinaria: 2 grupos de 3350 KW cada uno 9.000.00 280.000.00 40.000.00 130.000.00 Sub-estaciones: 120.000.00 160.000.00 Red de alta tensión: 40 Km a $4.000.00 cada uno $1'642.000.00 total Precio del kilowatic generado y trasmitido: $245.07. 51 Seccion MEMBER DE COLONBIC Numero Ministerio de Hacienda - 3 Cridito Publico Bogota PRESUPUESTO PARA LA CENTRAL HIDROELECTRICA DEL LAGO DE TOTA Características: Caída: 400 metros netos Caudal: 2 m3/seg. Potencia: 5.500 kilowatios en los bornes del generador. Poblaciones que se benefician: Tunja, Sogamoso, Duitama, Paipa, Corrales, Santa Rosa, Sotaquirá y alrededor de unos 20 municipios pequeños por donde pasarán las líneas de trasmision. Obras de captación: $ 50.000.00 Túnel: 300 metros de longitud para un gasto de 2 metros cúbicos/seg. a $150.00 metro 45.000.00 Cámara de compensación: para una altura de 30 metros y en concreto armado 85.000.00 Tubería de presión: Longitud 3.000 metros. Diámetro 42" incluyendo aparatos de seguridad, válvulas, etc Anclajes para tubería de presion: 300 metros cu bicos a $30.00 cada uno Casa de máquinas: incluyendo montaje Maquinaria: 2 grupos de 2750 KW cada uno Sub-estaciones Línea de alta tensión: 80 Km. a $4.000.00 Km Total 550.000.00 9.000.00 35.000.00 100.000.00 150.000.00 320.000.00 $1'344.000.00 Precio del kilowatio generado y trasmitido: $244.36 52 Seccion REMUBLICA DE COLOMBIA Numero inisterio de Hacienda 'Credito Publico Bogolii. EME Central Hidroelectrica de Rio Palo. $2'742.000.00 " Río Suares 1 642.000.00 " y -4- Lago de Tota Suma 1'344.000.00 $5'728.000.00 53 Seccion menusica DE COLONBIA Numero ALLXO No 5 Ministeria de Hacienda Cridito Publico Boyoli mayo 9 de 1941 COSTO DE LAS OBRAS QUE COMPRENDEN LOS PLANES DE CARRETERAS, DE REGULARIZACION DE LA NAVEGACION Y DE CONSTRUCCION DE EDIFICIOS PUBLICOS. Carreteras Sonson-Dorada (para dar paso en toda su longitud e iniciar algunas obras de arte definitivas) Pauna-Río Magdalena (para llevar la obra hasta el Rio Minero) Sogamoso-Casanare (para adelantar las obras has- ta cerca de la entrada de los llanos) Villeta-Guaduas-Honda (para terminar la obra) Neiva-Palermo-Palmirs (para dejar terminada mas de la tercera parte de la vía) Ciénaga-Fundación (para dejar terminada la obra) La Paz-Chiriguana (para terminarla) $ 650.000.00 180.000.00 210.000.00 360.000.00 500.000.00 100.000.00 100.00.00 Pasto-Puerto Asia (para terminar la carretera hasta Urcusique y hacer un camino de herradura de Urcusique a Puerto Asís) Gamarra-0caña (para terminarla) 100.00.00 160.000.00 bra) La Ceiba-Abrego (para ejecutar la mitad de la o- 600.000.00 Pandi-Colombia (para llevar la carretera hasta la Colonia) 200.000.00 Cali al mar (para dar paso con obras de arte pro visionales) 400.000.00 Bolivar-Quibdo (para dar paso con obras de arte provisionales) Istmina-Quibdó (para terminarla) 390.000.00 360.000.00 Cuestecita-Carraipia (para hacer la totalidad de la obra) 90.000.00 Venecia-Tres Esquinas (para hacer todos los estu dios) 100.00.00 Suma $4'500.000.00 54 Leccion DE COLOMBIA Name inistorio de Hacionda y -2- Cridito Publico Begolai Navradi6n Para compra de accesorios y repuestos de dragas $ 415.000.00 y equipo adicional para las mismas Para dotación de equipos mecánicos en los puertos del rio Magdalena y accesorios que permitan 230.000.00 su instalación Para la adquisición de un equipo adicional para manejo de carga en el Terminal Marítimo de Barranquilla Para montaje de talleres centrales en Barranqui lla (suma indispensable para su iniciación) Suma 60.000.00 400.000.00 $1'105.000.00 Construcciones Para terminar el edificio de correos nacionales $ 800.000.00 Para la terminación del edificio nacional de Pasto 290.000.00 Para terminar la construccion del edificio de los ministerios Para terminar las obras de la Ciudad Universita 600.000.00 ria Suma 600.000.00 $2'290.000.00 BESTMET : Inversion en Carreteras $4'500.000.00 Inversión en Navegación 1'105.000.00 Inversión en Construcciones Suma 2'290.000.00 $7'895.000.00 55 S int TREASURY DEPARTMENT INTER-OFFICE COMMUNICATION DATE June 7. 1941 TO Secretary Morgenthau FROM Mr. Cochran At 3 o'clock yesterday afternoon I received Mr. Coyne, Financial Attache of the Canadian Legation. He told me that he is leaving shortly for Canada to obtain information there with respect to the working of the plan enunciated at Hyde Park on the occasion of Prime Minister Mackensis King's recent visit with the President. Furthermore, Mr. Coyne hoped to obtain data sufficient to revise his report to the Treasury on the Canadian financial position. He will give us something on this subject as soon as possible. He is going to look particularly into the subject of re-registration of Canadian holdings of dollar securities and other investments. SMR. 13998 56 Ottam, June 7. 1941. No. 1581 Subject: Periodical report on general conditions in Canada. The Honorable The Secretary of State, Washington, D. 0. Sir: I have the honor to transmit a report on general conditions in Canada for the period from May 30 to June 6, 1941, inclusive. Respectfully yours, Pierrepont Moffat. True copy of the original signed by In quintuplicate to Department. 800 JGP/ems 57 5) Plans to implement Hyde Park declaration - Reports of monetary measures. A series of news reports from the United States has given publicity in Canada to a type of economic collaboration which is scarcely welcome in Ottawa, especially among those directing Canada's financial policies. A correspondent of the North American Newspaper Alliance wrote that a "stabilisation agreement" was likely, that the American dollar might become legal currency in Canada and that monetary measures under con- sideration might lead to a complete economic union. The author of this report based the foregoing predictions on allegations that the President and the Prime Minister were planning far in advance of public opinion or knowledge measures to link the American and Canadian economies more closely together. Other reports under American datelines have favored loans to Canada under the leaselend formula, and Senator Mead of New York has been reported as specifically referring to the desirability of closer collaboration on monetary matters. 58 IV. INTERNAL POLITICAL AFFAIRS. 1) Current political and other factors as related to Canada's war effort. There are at present three major subjects of interest in connection with Canada's war effort, the recurrance of Dominion-Provincial friction, the lagging drive for recruits, and the Victory Loan campaign. a) Dominion-Provincial relations: Ontario. Masking his fight to retain control over the lucrative income and corporation tax fields, Mr. Hepburn of Ontario last week based an implied refusal to vacate these fields on what he termed the unjust increase in the federal withholding tax on provincial bonds - a relatively trivial matter. In so doing he placed himself in the position of defending the American bondholder, of threatening his electors with double taxation, and of prejudicing the success in Ontario at least of the Victory Loan campaign. Nevertheless, the Dominion Government decided that it could not wait for time to make Mr. Hepburn's position indefensible and, with the success of the loan campaign and the importance of preserving Canadian unity in mind, abandoned on June 5 the proposal to increase the withholding tax on provincial bonds. This decision. an admission of Mr. Hepburn's nuisance value, had the effect of removing his given reason for retaining the income and corporation tax fields and left the next move up to Mr. Hepburn. The move was not long delayed. On the evening of the same day, although he had been the arch-wrecker of the abortive Sirois conference in January, Mr. Hepburn proposed that Prime Minister King call a Dominion-Provincial conference to discuss "a solution of 59 present taxation issues, provincial autonomy, industrial harmony and a spirit of wholesome good-will between the Dominion and Provincial Governments of Canada". Such honeyed language from Mr. Hepburn is an indication that he is in retreat and in effect the position now seems to be that he prefers to continue his fight for provincial autonomy at a full conference table rather than in a straight two way exchange with the Dominion Government. It is believed that at such a conference he would be prepared to agree at most to a wartime settlement of Dominion-Provincial financial re- lations and that he would insist on post-war restoration of the income and corporation tax fields. In this, to judge from a recent speech, he would have the support of Premier Aberhart at least, and could as well remind the government that in his budget speech of April 29, Mr. Ilaley had stated that the government did not intend to get the provinces out of these tax fields permanently. On June 6 the Prime Minister, who, it will be recalled, left the door open for a second Dominion-Provincial conference at the time the first one failed, replied to Mr. Hepburn that if all the Provinces "should unite in a request" for another conference, the Government would consider it at once. In other words Mr. King will not assume the responsibility for a second conference until it is safe to do so. It is evident, however, that an advantage has been gained by removing Ontario's alleged - if absurd - grievance and there is now ground for optimism that the teeth have been drawn from Mr. Hepburn's wilful threat to Canadian unity. 60 b) Recruiting Campaign - Army program. Confirming the unfavorable impression which the public had gained, the Minister of National Defence told Parliament on June 5 that only 7,655 out of the 32,000 required had thus far been recruited for the active Army during the present intensive campaign. The Minister professed optimism but none- theless there are two reasons for concern over the lack of enthusiasm of Canada's youth for voluntary service overseas. In the first place the pressure in favor of conscription both from the public in Ontario and certain of the other English speaking Provinces has been immensely increased and conscription sentiment is of course very strong among most Army officers. This issue has been much confused by special pleading in Canada and it has never been squarely and publicly stated by the Government. In effect and in simplified terms, if the campaign for recruits fails Canada will have to choose first between conscription and unity, and second between a major industrial contribution and a major contribution of fighting manpower. In the second place there is concern for Canada's war effort by reason of the lagging recruiting because Canada is pledged to send overseas this year the 3rd and 4th division, the armored division and the tank brigade. No important fraction of any of these units has yet left Canada. Aside from the military effect of any failure to carry out the selfimposed 61 schedule for the overseas despatch of troops, the ultimate political effects in Canada would be most serious. c) Victory Loan. In contrast to the foregoing aspects of Canada's wartime activity the Victory Loan, at the present early stage in the campaign, appears to be an unqualified success. It is demonstrating how generously the people will respond, financially at least, to a well planned and well organized drive. It is even said that the initial subscriptions were so large that the Government had to resort to the device of deferring an- nouncement of a part of the subscriptions for fear of the impression gaining ground that there was no longer need for everyone to participate. The easy success of this loan would be a source of immense satisfaction to a government which, critics to the contrary notwithstanding, has since June 1940 placed the primary emphasis on production and acted up to the present at least on the rather bold thesis that anything that could be produced by Canada could be financed. 2) Parliament - Minister of Finance. Parliament was unable to conclude its business by Friday night June 6, as hoped although sitting from 11 a.m. to 11 p.m. daily. Third readings have been given, however, to all of the budget bills and aside from the main estimates for the current year, little business of importance remains. It is perhaps worth noting that the handling of the budget by the Finance Minister, Mr. Ilsley, has through more than a 62 month of sometimes tedious, sometimes searching debate been characterised by patience, openness of mind, clarity of thought and expression, and a tenacity and adherence to important principles which have marked Mr. Ilaley as an exceptionally able man. His prestige has increased enormously. 10 AHE 1ECHK BVI SE bill 3 52 ehicopy 6-25-41 63 PARAPHRASE or TELEGRAN RECEIVED FROM: American Tobassy, (Paris) Vieby DATE: June 7, 1941, 3 p.a. NO.: 640 A Foreign Office souree informed us recently that the setting up of three German Commissioners, one for foreign trade, one for the Bank of France, and one for foreign exchange, formed a part of the latest Franco-German collaboration. A private source has now given us, in the strictest confidence, pertinent paragraphs of what is said to be Official Report no. 57 of the French Delegation to Wiesbaden, for the week May 11-18. The Enbassy believes that this information is authentic, it appears that a rather full summary by telegraph is worth sending to the Department: As for the Commissioner of Foreign Trade: The French Government agrees to the setting up of a Commissioner for Foreign Trade, who shall receive prior notification of any modification in policy concerning the foreign trade of France and trade between the Colonies and France itself, as well as between continental France and its territories under protectorate and mandate. All facilities for controlling the carrying out of import and export schedules shall be received by the Commissioner, and such schedules shall not be drawn up without the Can- missioner's approval. If the interests of Germany are involved, the Commissioner may vote the delivery of imports and experts. The Finance Ministry may be requested by the Commissioner to furnish 64 furnish all information he considers necessary with regard to foreign trade, and to furnish all documents he thinks necessary. Any economic negotiations with a third power which the French Government proposes to undertake shall be made known to the Commissioner, and the progress of the negotiations shall be made known to him. A special agreement between the French and German Governments will be necessary for the entry into office of the German Foreign Trade Commissioner. As for the Commissioner for the Bank of France: It is agreed by the French Government that a German Commissioner shall be established at the Bank of France. The Bank of France shall keep the Commissioner permanently informed of all measures taken by the Bank. The Commissioner may inquire into all the Bank's operations and decide what actions and operations must receive his prior approval before being carried out. On credit operations to be granted or requested abread, the Commissioner must give his prior opinion. the Commissioner will take cognisence of any balances, statements or other documents sent to the organization which is charged with control of banking, and through the Bank of France he may demand any and all supplementary documents and information from other banks. The authority of this Commissioner became effective OR the twentieth of May. (Note: Reference is made to telegram of July so, 6 P.M., 1940, mo. 215 from the Babasay and subsequent reporting that under their own regulations, last sumer the German occupying authorities installed a 65 - Commissioner, Schaeffer. Apparently the present agreement was for the purpose of putting the stamp of full approval on his authority by the French.) As for the Foreign Exchange Commissioner: It is agreed by the French Government that a German Foreign Exchange Commissioner shall be set up. Prior notification of any modification or addition to the French regulations having to do with gold and foreign exchange shall be made to this Commissioner. Likewise, he shall be notified regarding any measure for carrying out such regulations, being given a period of ten days within which his objections May be filed. The Commissioner is expensed to make suggestions for the medifiestion, supplementation and execution of existing provisions which, when they correspond to the interests of Germany and France, shall be carried out. Whenever German interests are involved, the Commissioner may vote French foreign exchange legislation. The Commissioner shall be given prior notification of any medification of legal provisions having to de with the exchange stabilization fund, and a ten day period for filing objections is stipulated. All transactions of the exchange stabilisation fund shall be permanently made known to him. Through the Finance Ministry, the Commissioner may request all information and documents he considers necessary with regard to French centrol of exchange. The Commissioner took office on the twentieth of May. 66 4- There are also interesting paragraphs on French control of the frontiers in the report, which are given below: (in paraphrase) It is agreed and declared by the French Government that the Commissioner of Foreign Exchange and the Commissioner of Foreign Trade may employ German custom agent not to 20 exceed 200 in number in the unoccupied suna in offer out their mission. By means of an intermittent Ontrolo it shall be the duty of these agents to supervise French customs operations regarding merchandise and monetary traditie at foreign frontiers and at airports where there is customs authority The supervisory organizations may, through the French liaison agent who accompanys them, suspend suspected operations or proceed to measures of specified control when danger of fraud is feared. The French Government shall be charged with taking all measures tending to facilitate the installation and work of these centrol organizations. It is agreed by the French Government that the number of open frontier ports shall be reduced to a minimu. The control services OR the part of Germany shall be effective the thirtieth of May. This telegram has been repeated to the Berlin Enbassy. LEARY. 67 AUSTRALIAN LEGATION, WASHINGTON, D. C. June 7th, 1941 Dear Mr. Cochran, We thought that perhaps informally you would like to have a summary of a recent telegram we have received regarding a change in the Australian National Security Exchange Regulations. The Regulations have been amended to provide that all persons in Australia who own United States or Canadian dollar funds or currency in any shape or form, either overseas or in Australia, must sell these funds to the Australian Government. The amendment provides, in addition, for the control of sales, loans, transfer or mortgages of any lands or securities owned by persons outside the sterling area to another person outside the sterling area. Unless permission is first obtained from the Common- wealth Bank transfers will in future be illegal. We thought that conceivably the information would be of use to you. Yours sincerely, (Signed) P. R. Heydon H. Merle Cochran, Technical Assistant to the Secretary of the Treasury. Treasury Department, Washington, D. C. OPY - da - 6/10/41 68 C 0 P PARAPHRASE OF TELEGRAM RECEIVED Y FROM: American Consul, Berlin, Germany TO: Secretary of State, Washington DATED: June 7. 1941, 12:15 p.m. NUMBER: 2244 Athens reports have been received to the effect that it has been agreed by the German-occupying authorities to pay a 20 percent premium on all purchases in Greece for the German armed forces because of the price rise since the conquest. Credit in the clearing account will constitute the form of payment. A certain percentage of all types of products exported to Germany will be left for the use of domestic industries in Greece. As in other conquered countries there have been substantial increases in prices and heavy purchases by Germany for export to Germany as well as sup- plies for the occupying forces. The inevitable result of paying through a clearing account will be to build up a large clearing debt which Germany will owe. Significance may be attached to the fact that it has been found expedient by Germany to promise not to take all raw materials, which are available in Greece in quantity and which Germany greatly needs, such as hides and skins, magnesite and iron ore, tobacco and resin. 20 USA VIA Copytalm 6-11-41 23 the BECEIRED U. S. TANK VISSELS IN PORTS of THE UNITED STATES RIO NAME CARGO CAPACITY PRESENT LOCATION as ANTISTAN Seattle 88 CAMDRE as R. J. HANNA ss LA PURISIMO 75,000 bble. 75,000 bbls. 95,000 bble. 62,000 bble. se EMIDIO 80,900 Mble. 88 88 CHRISTY PAYNE C.B.WATSON 88 OULFLAND 88 W.W.BRUCE as TRIMOUNTAIN as E. M. CLARK as ESSO DOVER 86 CARRABULLE 88 BEAUMONT PARKS MB as SS as IRENE ELLEN MEXOIL CHUDOIL NEW JERSEY as ARKANSAS 88 OREGON SS PAPOSSE Charlestes Charleston Charleston 33,350 bble. 43,000 bble. 10,500 bbls. 16,500 bble. Baltimore 88 6/5/41 6/5/41 6/5/41 6/6/41 6/6/41 6/5/41 6/5/41 6/6/41 6/6/41 6/6/41 6/5/41 4/22/41 Victoria,B.C.(mo earge) Active San Pedro,Cal.(mo earge) do Richmond,Cal. (no carge) . San Pedro (no carge) . California (no earge) . Jacksonville . Unreported Lake Charles, La. Wilmington, N.C. Baytown, Tense probably Terms part Deminican Republic 43,000 bble. Philadelphia 6/5/41 Cube Philadelphia Philadelphia 6/6/41 6/6/41 Atlantic City Philadelphia 6/6/41 Delath Teledo, Ohio Teledo Chicago Buffalo Lackswanna, N.Y. Cleveland or Bay City Bayonne, N. J. New York Unreported Part Arthur Texas Texas Jersey City New York Matenses melessee DIXIANO malessee 941 tens 86 WHITEFLASH 88 ROBERT E COLLEY 17,525 tens as E. H. BLUIM 18,740 teas . Sevannah 10,066 tens 80,000 bble. 81,500 bble. 72,000 bble. 72,000 bble. 72,000 bbla. 72,000 bbls. SS SS Bultimore REMARKS Buffalo Philodolphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philodalphia 16,600 bill. TOSTER OULF COAST SWIFTSURE Baltimere Bultimore Beltimore VOYAGE FOR WHICH LOADING OR INTENDING TO LOAD 6/4/41 6/5/41 5/29/41 6/6/41 6/6/41 6/5/41 6/6/41 6/6/41 6/6/41 6/6/41 6/6/41 6/6/41 6/6/41 6/5/41 SS as Partland, Oragon Portland, Oregon Portland, Oregon 91,800 bble. 50,000 bble. 55,000 bble. 81,456 bble. 80,000 bble. 119,410 tble. 108,790 bbls. J. W. VAN DYKE 151,000 bbls. ALBERT HILL 10,500 tens SS Tecome,Wash DATE OF ARRIVAL Chester, Pae - 10 days repairs Texas . . . . Active enlorgeing alterations setive do . . * . . . . . . . . . . . . 9 DATE OF RIG NAME MB WM PEEN 88 CALORIA CARGO CAPACITY 111,800 bbls. 1,250,000 gals. E880 NEW ORLEANS PAN MARYLAND 88 88 BOCONY VACUUM 88 BINKENREAD MB PAW AMOGO Barge PUROTL 88 W.S.MILLER 88 88 B DEDOLIA LIKE MIRAFLORES 88 SOLANA 88 LARRY DOHNMY se 88 MONTHBELLO 160,000 sble. 86,000 Dbis. 115,086 sbia. 72,000 sbic. 97,500 bble. 41,800 bble. 74,640 sbic. 80,590 bbls. 37,500 bble. 3,574 tess 62,000 bble. 11,386 tens 80,000 bble. 70,000 bble. ARRIVAL Philadelphia Philadelphia 6/6/41 6/6/41 Unknown Oube de Bester Corpus Christi Texas City . San Francisco San Transisso Sea Transisco Sea Frencieco 5/28/41 6/5/41 6/6/41 6/5/41 6/6/41 6/6/41 6/8/41 6/4/41 6/4/41 6/26/40 Sea Francisco San Francisco 6/6/41 3/29/41 Les Angeles 6/5/41 6/6/41 Honolulu Unreported 6/8/41 do Boston Providence, R.I. Beston Pertland, Maine Wilmington, N.C. San Frencisco Part Everglades, Florida Port Everglades, Florida Port Everglades, Florida Port Everglates, Florida as ALLAN JACKSON as ESSO CONCORD 100,000 bbls. Barge PURE WOFFORD 29,600 bble. Barge PURE TYOLINE 21,000 bble. 81,583 bbls. 15,000 bble. 91,695 bbls. 71,895 bble. 48,000 bble. 68,680 bble. New York New York New York New Yesk New York New Yeak 81,800 Mile. New York 86 ALBERT E WATTS MB BACOI ss BYRON D BENSON 88 C.A.CANFIELD 88 CASSIMIR as CITIES SERVICE FUEL as COMOL RICO REMARKS PRESENT LOCATION (molesses) as VOYAGE FOR WHICH LOADING OR INTENDING TO LOAD Document Document, Texas Texas City Port Arthur, Texas KL Segundo, Cal. . . . . . . San Pedro w Immilized unlargeing repairs Active Immilized undargeing repairs Assive do . . . 6/5/41 Unknown . Portland, Oregon 6/5/41 6/3/41 Astivo Port Arthur - 6/3/41 6/5/41 8/4/41 6/2/41 Port Arthur 6/3/40 Cube Azube Cube Port Arthur . Insetive Active . . . . 70 U. S. TAXK VESSELS IN PORTS RIG NAME MB E.G.SHUBERT ESSO ARUBA ESSO ANNAPOLIS E880 HOUSTON FLORIDA 88 FUEL OIL SS GAROCYLE MB GULFHANK 88 SS as ss SS 88 MAGNOLIA MOBILGAS 102,052 bble. 115,860 bbls. 145,000 bbls. 105,415 bble. 101,120 bbls. 18,666 bble. 80,440 bble. 120,786 bble. 126,207 bbls. 188,568 bble. 108,965 bbls. 79,810 bbls. New York New York New York New York New York New York New York New York New York New York New York New York 5/31/41 5/30/41 6/2/41 6/5/41 6/6/41 6/6/41 6/8/41 6/6/41 5/28/41 6/5/41 6/6/41 12/9/40 4/12/41 6/4/41 5/22/41 5/20/41 Calveston 6/5/41 5/14/41 6/6/41 6/6/41 6/5/41 6/5/41 6/5/41 6/1/41 6/5/41 6/5/41 6/6/41 6/6/41 6/6/41 5/28/41 5/27/41 Port Arthur Corpus Christi SS PAUL H HARWOOD as R. G. STEWART 102,052 bbls. New York as S. B. HUNT as STANDARD ARROW 128,568 bbls. 97,750 bbls. 112,976 bbls. New York New York New York SS MB SS as SS MS VIRGINIA VISTULA VICTOR H.KELLY PAT DOHENY SAMUEL So BROWN NORTHERN SUN SS METON SS SPENCER KELLOGO SS as 9,392 tons 12,958 tens 9,778 tens 7,965 tons SS SS ESSO BOSTON SS M. F. ELLIOT SS OLNEY 14,222 tens 8,166 tens 12,473 tons 9,260 tons 9,747 tens - Caripite Caripite Corpus Christi JUIT 7 1941 REMARKS Active do E. New Orleans . Port Arthur . Marcus Hock - Bocument . Las Piedres . Bocument Beaumont . Texas City . . - Inactive - - Inactive - repairs New York 75,033 bbls. New York 103,078 bbls. 13,081 tone(Est.)Los Angeles Los Angeles 82,000 bble. WILLIAM F.HUMPHREY 12,078 tens 7,060 tens A. S. HANSEN MOBILOIL W. E. HUTTON SS VOYAGE FOR WHICH LOADING OR INTENDING TO LOAD PRESENT LOCATION O. M. BERNUTE ULYSSES DATE OF ARRIVAL CARGO CAPACITY SS ss THE UNITED STATES (CONT.): New Orleens New Orleans New Orleans New Orleens New Orleens Becausont, Texas Bocument, Texas Bocument, Texas Bosumont, Texas Calveston, Texas Galveston, Texas repairs Lockport, Miss. - Active do Inactive libeled Active de Seattle Portland, Oragon . . New York . Marcus Hock . Houston . Havana . New York . Wilmington, Del. - New York Carteret, N. J. Carteret, N.J. Certeret, N.J. Certeret, N.J. w CONTAIN RTS CARGO CAPACITY NAME PRESENT LOCATION Houston, Texas as AMERICAN TRADER 12,946 tens as MARKAY M DOLOMITE 2 17,969 tens(Net.)Henston, Texas 3,400 Sons(Ist.)Houston, Texas as CITIES SERVICE 12,650 tens TOLEDO Mobile, Alabama DATE OF ARRIVAL 6/6/41 6/6/41 6/8/41 4/26/41 5/16/41 6/5/41 6/2/41 5/31/41 Mobile, Alabama 10,104 team 6/3/41 Mobile, Alabama 8,696 tens 5/21/41 Baytem, Texas 14,255 team 9,566 tens(Ist.)Port Arthur, Texas 6/5/41 Port Arthur,Texas 6/3/42 13,896 tens Port Arthur,Texas 8/26/41 10.409 tens Part Arthur,Texas 6/6/41 10,645 tens Texas City, Tease 6/6/41 14,190 teas Texas City, Texas 6/4/41 11,692 tens 6/8/41 Chicago 86,000 bble. Mobile, Alabena 8,297 tens(Not.)Mobile, Alabama Mabile, Alabama 11,696 teas GULF OF VENEZUELA 9,995 teas MS M. DAWRS $8 PAN CAROLINA se R. P. SMITH V. W. MILLS E. J. SAULER se 88 86 - ALPEA as CULFUREST MISSISSIPPI BERMIAN CLUB ss as as as MB like as PAN AMERICAN PAN GEOROTA TRAVERSE CITY SOCIETY ZEPHYR MATHE WESCOAST University RED CROWN Unimount Unknown GENERAL MARKHAM This MS SS ss ss WILLTAM T.COWAN 10,000 still. 42,500 bble. 46,000 bble. 66,000 bble. 25,000 bble. 65,000 this. EDWARD 0.SUKBERT 52,000 bbis. ALASKASTANDARD 10,500 bbls. HARRYFSINCLAIR 63000 lll. Eise BALTIMORE 43.000 able 90.000 eth VACUUM Chicago Chicago Chicago Chicago Chicago Chicago Chicago Keletish alaska Halveston Galueton Halveston 6/6/41 6/8/41 6/8/41 6/6/41 6/6/42 6/5/41 6/8/41 6/6/41 6/6/41 6/6/41 616141 VOYAGE FOR WHIOL LOADENG OR INTENDING TO LOAD Elyshill Carteret, N. J. Garteret, J. new york Carteret, N. N.J. Port Arthur Smiths Bluff, Tems Houston, Temm Smiths Bluff, Tease Smiths Rluff, Texas Unreported newyork do New York Unreported Philodolphia Daspported Baltin Unreported Cleveland Bay City Detroit Superior, Woomets Superior, Wineonais Bay City Detroit Green Bay REMARKS Active . . Immilised Active . . . . . . . . . . . - . . . . . . . Varuns alasha Parks Bustonne, nd new york Paulsboro 2 RIG MS VOYAGE FOR WHITES LOADING PRESENT LOCATION 5/18/41 6/4/41 6/1/41 4/11/41 6/3/41 5/26/41 2/11/41 Aruba, N.W.I. 13,513 tons 8,543 tone New York New York New York New York New York New York New York 12,603 tons 15,576 tons New York New York 6/4/41 5/22/41 United Kingdom repairs Active 9,500 tons 80,250 bbls. New York New York New York New York New York New York 6/3/41 5/9/41 5/3/41 5/26/41 United Kingdom Assive CARGO CAPACITY ANDREA BROVIG 15,300 tons 15,400 tons MS MS BELLO 8,537 tons 9,063 tons MS BETH MS DAGHILD MS EVITA MS FENRIS MS ONYION 89,508 bble. MS OLITTRE HAAKON HAUAN HAVPRINS MS HORGH SCOUT MS INNEROY MS JERNY MS KAIA KNUDSEN MS KONGSGAARD 13,064 tons 15,144 tons SS MELINE 80,145 bble. MS MS SS MIRLO MS SIR JAMES CLARK MS SANDAR MS SOLSTAD MS SPINANGER MS THORSHOW MS VARANGER MS GALLIA MS BRALANTA ROSS MS MS THORHILD SALAMIS 1941 DATE OF ARRIVAL NAME ARISTOPHANES ASTRELL MA 1 11,595 tons 12,499 tons 11,460 tons 6,042 tons 9,311 tons 121,800 bble. 11,150 tons 7,865 tons 9,562 tons 12,036 tons 12,760 tons 15,772 tons 13,891 tons 15,625 tons 13,187 tons OR INTENDING TO LOAD Aruba, N.W.L. United Kingdom United Kingdom United Kingdom ... Venezuela REMARKS Astive Active Active Active Active Active Innative Innotive - repairs New York New York New York New York New York New York New York New York New York New York Galveston Lee Angeles Lee Angeles Philadelphia 5/5/41 Halifax Active United Kingdom United Kingdom United Kingdom Active 4/9/41 Halifax 6/3/41 6/6/41 5/17/41 United Kingdom 6/6/41 5/10/41 Aruba 6/4/42 3/6/41 5/27/41 3/16/41 4/19/41 6/5/22 Aruba Aruba United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom ... Part-Arthur Innotive repairs Active 5/24/41 4/11/41 5/15/41 Active Active England United Kingdom Active Active Active Active Active Innotive Active - repairs Active Active - repairs Astive Inactive Innotive Active 3 CONFIDENTIAL DATE OF RTD NAME HOROH GIANT ISSETH SOUTIA as PETTER II CARDO CAPAGITY PRESENT LOCATION ARRIVAL 115,000 Mile. 92,000 tble. Philadelphia wave Lee Angeles 86,000 this. Lee Angres 6/5/41 6/6/41 9,113 tess VOTAGE FOR WHICH LOADING OR INTENDING TO LOAD REMARKS Mexico Active ... Active Teeopilla Departed Sid Jean, Polo, 6/6/42, for Active . to - repairs Mayageons, P. e 24 BRITISH TANK VESSELS IN PORTS OF THE UNITED STATES JM T 1941 CARGO CAPACITY IN TOMS EXCLUD- DATE OF ARRIVAL VOYAGE FOR WHICH LOADING OR INTENDING TO LOAD United Kingdom United Kingdom United Kingdom United Kingles United Kingles United Kingles nature United Kington United Kingles retive ING BONKERS PRESENT LOCATION 79,333 bble. 82,266 bble. 82,268 bble. 82,696 bble. 128,894 bals. 9,800 tens New York, N. Y. New York, N. Y. New York, N. Y. New York, N. Y. New York, N. Y. 11,000 tens 10,800 tens 78,500 bale. New York, N. Y. New York, N. Y. New York, N. Y. 4/21/41 5/17/41 5/17/43 5/1/41 4/8/41 5/30/41 5/26/41 6/4/11 6/6/41 104,819 bble. MS INVERILEN 92,750 bals. 11,000 tens MS MIRALDA 90,506 bble. MS PATELLA 71,403 bble. PEDER BOGEN 35 38 45,366 bble. POLAR CHIEF (Carrying New York, N. Y. New York, N. Y. New York, N. Y. New York, N. Y. New York, N. Y. New York, N. Y. 6/2/41 5/29/41 5/22/41 5/17/41 6/1/41 4/17/41 RIO as NAME ANGLO HORSE ss BRITISH CONSUL as BRITISH WORKMAN KS BULLMOUTE MS CHARLES F MEYER MS DARINA MS DAVILA MS DOLABELLA 33 HEATORIA (whale oil fastory) MS HORE SHELL whale oil) 33 SHIRVAN as SOURABAYA MS TRICULA MS VANCOLITE SS TOOO MS ATHELVIKING SS BRITISH PROGRESS SS LANSING MS ATHEL CROWN 67,479 bble. 8,005 tens 9,000 bble. 132,238 bble. 6,142 tens 13,709 tens 6,113 tens 7,454 tens 141,000 bble. New York, N. I. New York, N. Y. New York, N. Y. New York, N. Y. New York, N. Y. Paulsboro, N. J. Port Everglades Baltimore, Md. San Francisco Philadelphia 4/9/41 6/6/41 4/30/41 5/18/41 6/4/41 6/4/41 4/11/41 10/26/38 6/6/41 United Kingles United Kingles United Kingdom United Kingdom United Kingles United Kingdam United Kingdom United Kingdom United Kingdom United Kingdom Caripito United Kingdom Georgetown, B.O. United Kingdom Cuba REMARKS active Active assive Active active active MAIVE Active Active Active Active Active-Libeled letive Active Active-Libeled Active Active Active Active Immobilised Active molassee CONFIDENTIAL 5 adidas T 1841 CARGO CAPACITY IN TONS EXCLUDRIG MS NAME NORVIK SS ALGONQUIN ING BUNKERS PRESENT LOCATION 13,374 tons Boston, Mass. 74,751 bbls. MS PENELOPE MS PHOEBUS 12,915 tons 13,360 tons SS YORBA LINDA 11,150 tens* MS J. H. SENIOR 17,620 tons SS BEACOMOIL 9,540 tons 9,928 tons MS GOOD CULF MS BELGIAN GULF us LUBRAFOL MS SANTA HELHNA MS SPIDOLEINE SS MS SS POLARINE THALIA GEORGE G. HENRY 10,003 tens 9,877 tons 7,470 tense 7,200 tens 5,675 tens 13,100 tons 10,102 tons New York, N. Y. New York, N. Y. New York, N. Y. New York, N. Y. Baltimore, lid. Baltimore, Md. Port Arthur, Tex. Port Arthur, Tex. Port Arthur, Tex. Port Arthur, Tex. Port Arthur, Tex. San Francisco Los Angeles Honolulu DATE OF ARRIVAL VOYAGE FOR WHICH LOADING OR INTENDING TO LOAD 3/15/41 12/2/40 5/29/41 6/3/41 3/31/41 5/28/41 Liverpool 6/3/41 11/7/40 11/7/40 11/7/40 5/21/41 11/9/40 1/25/37 3/14/41 6/6/41 Caripito Aruba Texas City South America. Now in drydock. Venezuela Ferrol, Spain Tocopilla Manila REMARKS Active Inactive Active Active Active Active Active: Immobilised Immobilized Immobilised Active Ineabilized Immobilised Active Active-Due Honolulu on date indicated #Etinated CONFIDENTIAL 6 CARGO CAPACITY RIG NAME IN TONS EXCLUD- DATE OF PRESENT LOCATION ARRIVAL ING BUNKERS VOYAGE FOR WHICH LOADING OR INTENDING TO LOAD REMARKS DANISH MB MB INVA MAERSKWAKESK CAROLINE 12,599 11,825 Beston, Mass. Jacksonville 4/9/40 4/15/40 In susbedy of U.S. In oustedy of U.S. 9/3/49 In outsoly of U.S. 5/30/40 5/26/41 In outsity of U.S. OF 88 PAULINE FRIEDRICH 6,195 Beston ITALIAN as BRENSERO 38 COLORADO 7,750 6,900 New York Galveston In oustedy of U.S. SPANISH MB GAMPECHE MS CAMPERO MB CAMPONANES 7,453 7,453 10,024 Port Arthur, Tax. Port Arthur, Tax (Bet.) Port Arthur, Tax. 5/21/41 6/5/41 6/5/41 Unreported Bardelona, Spain Bilbao, Spain Active Active Active BELOTAN MS MB ESSO BELOIUM PRESIDENT FRANOQUI 14,600 7,000 Boston New York 6/4/42 Las Piedras, Ven. Active 5/31/41 United Kingdom Active 6/2/42 Aruba, N.W.I. Active United Kingdom United Kingdom Active Active APORTIONS ss LOS POZOS 7,358 Albany, N.Y. KETHERLANDS MS OCANA MB MAMURA 8.472 12,645 New York New York 4/24/43 4/8/41 CONFIDENTIAL CARGO CAPACITY RIO NAME IN TONS EXCLUD- PRESENT LOCATION DATE OF ARRIVAL VOTAGE FOR WHICH LOADING OR INTENDING TO LOAD 3/24/43 2/28/41 Mexico Tampico, Mex. REMARKS ING BURKERS MEXICAN JUAN CASIANO SS MS unknow TAMPICO SAJA d E ERO BERA MS Galveston Unlisted 9,667 (Set.) Houston 63978 lbs salveston 646141 231,890 bbls. Philadelphia 6/6/41 unreported Unknown Immilised Immobilised acture Active FRENCH as MEROPE as C.I.P. MS TOURAINE 9,541 10,228 (Set.) 7,377 New York St. Thomas,V.I. New Origans Inactive U.S.guards on board Inective, U.S.goards on board 5/23/41 6/6/41 7/6/40 Innotive; U.S.guards - board PHILLIPING SS MINDANAO 51,000 bble. Lee Angeles 5/30/41 Manila 6/5/41 Caaka Astive JAPANESE SS TOMAN MARU NO. 2 122,000 bble. Lee Angeles CONFIDENTIAL Active 88 79 June 9, 1941 Memorandum for Mr. Kuhn: The Secretary would like to have you send future opies Mr. Barth's memo to Ambassador Winant at the Embassy in London. I understand the Ambassador received the current one. .Chauncey 6/17/41 Mrs. Brown reported this memo was being sent to amt. Himant. 80 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE June 7, 1941 Ferdinand Kuhn, Jr. FROM Helen Dallas DEFENSE SAVINGS: A UNITED FRONT APPEARS Whatever the conflicts between capital and capital, labor and labor, and capital and labor, there seems to be complete agreement about the Defense Savings program. Sections of the public which are still at odds over the Administration's economic policies make common cause in their advocacy of Defense Bonds and Stamps. Thus the non-controversial course steered by the Treasury in its Defense Savings program has succeeded in winning and spreading good will. Divergent groups now back the bond campaign as a public demonstration of their patriotism, no matter what their other quarrels with the Government may be. In this matter they are rivals only in the sense that each seems to try to outdo the other in cooperating with the program. As organized labor seeks to maintain its position with the public, its leaders have issued statements and turned over union funds for the purchase of Defense Savings Bonds. President William Green was the first to say publicly that he thought the 81 -2bonds were a good thing, and he has been followed by many of his subordinates. This week President Murray of the C. I. 0. urged men receiving $170,000 in back pay for discriminatory discharges to buy as many United States bonds as they could with the money "as a token of faith in the American democracy which has made that back pay possible." At the same time, bankers have continued to support the program through paid advertisements, resolutions at banking conventions, and statements by leading bankers. Recently they have won much editorial praise for this activity. They have been praised for helping in a cause which, incidentally, benefits them by halting the flow of deposits into savings accounts already bulging with interest-bearing money. President W. Elbridge Brown of the Pennsylvania Bankers Association this week advised his fellow bankers to counsel prospective deposi- tors not to put their money into banks but to buy defense bonds instead. He then declared that "should the deposits be taken by the banks instead of being used for bonds, it would only increase the amount of excessive idle cash and reserves." With the banks as with labor, the Defense Bond campaign has helped groups which are poles apart on most other issues to get together on a national program of importance. 82 -3Progress in the Field Even before Secretary Morgenthau's speech announcing the sale of more than $400,000,000 in bonds during May, there had been a spreading over the country of the more optimistic editorial and financial comment that was reported last week in the New York papers. Big-circulation newspapers such as the Boston Post and the Philadelphia Bulletin have editorialized that the Defense Bond program has been misunderstood by papers that attempted to criticize it earlier, and that sales are good and steady. First editorial reactions to the Secretary's speech agree with him that the first month's results are a "wonderful start." The only critical note was again sounded by Congressman Crawford, who followed the Secretary's statement with another warning that defense sales are lagging and that the Treasury is misrepresenting the true state of affairs to the people of the nation. Financial papers warn that the public must not expect too much from the Defense Bond sales in June, because some subscribers undoubtedly purchased their full yearly quota in May. New bondselling ideas appearing in the press suggest, however, that at least the sales of Series E bonds may be increased by new devices. Typical newspaper stories of the week are concerned with 83 -4- "Dividends in Defense Bonds," "$1,000 a week in Prizes Given in Defense Savings Bonds," "Defense Stamps to be Given Employes of Oil Company," and "Mail Carriers Now Will Sell Defense Stamps." Certainly there is no sign in the newspapers or magazines that public interest is slackening. 84 FIELD ORGANIZATION NEWS LETTER WASHINGTON, D. C. U. S. TREASURY DEPARTMENT - DEFENSE SAVINGS STAFF JUNE 7, 1941 NO. 3 TO THE FIELD STAFF: A resume of the initial month for Defense Savings securities is very encouraging. Total sales were far more than reasonable expectations indicated. Primarily, we are interested in the numbers of buyers. Our task is to so well educate every man, woman, and child, that there will be millions of systematic purchasers of Defense Savings securities. This work is just beginning. The month of May was marked by a fine start, as the following figures will demonstrate: TOTAL NUMBER OF BONDS SOLD 1,134,000 These bonds were divided: Series E Series F Series G 991,000 24,000 119,000 TOTAL NUMBER OF STAMPS SOLD 10,172,000 The denominations of these stamps: 10 25 50 $1.00 $5.00 TOTAL VOLUME OF ALL SALES 2,598,000 5,501,000 1,240,000 717,000 116,000 $423,589,485.25 The above figures show that Americans invested in more than eleven million Defense Savings securities. It is impossible to give the number of individual purchasers at this time. It is reasonable to assume that the number is a substantial one. We can feel assured that we are presenting a most attractive set of securities; that thus far a portion of the public has approved our merchandise and that millions of potential buyers are available to our efforts. Sincerely yours, GALE F. JOHNSTON Field Director, Defense Savings Staff 85 NEW STATE ADMINISTRATORS Designation of 11 State Administrators, announced by Secretary Morgenthau on June 3, brings to 22 the number of states in which divisions of the Defense Savings Staff are being set up. The first eleven State Administrators were presented to readers of this NEWS LETTER in issue Number 1. The following men have just accepted this important responsibility in their respective states: ARKANSAS MAINE Roy G. Paschal Clinton A. Clauson Collector of Internal Revenue Collector of Internal Revenue Little Rock Augusta NEW JERSEY FLORIDA John L. Fahs John E. Manning Collector of Internal Revenue Collector of Internal Revenue Jacksonville Newark GEORGIA OKLAHOMA Marion H. Allen Collector of Internal Revenue H. Clifford Jones Collector of Internal Revenue Atlanta Oklahoma City TENNESSEE HAWAII Fred H. Kanne Lipe Henslee n. Collector of Internal Revenue Collector of Internal Revenue Honolulu Nashville INDIANA VERMONT Will H. Smith Collector of Internal Revenue Indianapolis Fred C. Martin Collector of Internal Revenue Burlington WEST VIRGINIA F. Roy Yoke Collector of Internal Revenue Parkersburg FROM OUR SENTINEL IN THE CARIBBEAN Cabo Rojo, Puerto Rico--Defense Savings Program was launched here by Postmaster Irizarry, Mayor Colberg, and Selective Service Board Chairman Delgado with stirring proclamations calling upon all citizens of Cabo Rojo (population 5,303) to "demonstrate our loyalty and patriotism." Senor Delgado called for: the unanimous cooperation of all Sons of the " Western Continent." Mayor Colberg, urging all to buy Defense Savings Bonds, said: "Our great President, Franklin D. Roosevelt, has assumed the leadership in the defense of our hemisphere He issues a call to every citizen cherishing his liberties and traditional rights to cooperate actively in the great work which must be realized in all haste." 86 MISSOURI Campaign Gets Underway In 131 Missouri cities local committees for Defense Savings are now functioning. Each city committee member is to serve as the chairman of a subcommittee to carry the Defense Savings message to a particular group. More than 200 prominent citizens are serving on the Defense Savings Committee for Metropolitan St. Louis. Honorary Chairman is Mayor William Dee Becker. Thomas N. Dysart is the General Chairman; Dr. Homer W. Anderson, Vice Chairman; and E. N. Mentel, Secretary. The Committee includes the Mayors of all municipalities in St. Louis County. Civic Service Luncheon Clubs in the state have been asked to devote attention to the Defense Savings Program and a suggested five minute address has been sent to their presidents from the state headquarters of the Defense Savings Staff. The Missouri State Federation of Labor at its 50th annual convention, May 21st, pledged unanimous support of the Defense Savings Program. The Ninth District of the American Legion, in convention, adopted a resolution endorsing the Defense Savings Program. One hundred of the largest industries of the state are displaying Defense Savings Posters in their plants. State Administrator Dan Nee and Deputy State Administrator Earl H. Shackelford are traveling more than 1800 miles a week in connection with the Defense Savings Program. Last week, they attended five patriotic rallies. #**# MISSOURI CONCERNS REPORT SYSTEMATIC SAVINGS PLANS The following large business organizations in Missouri report that their employees will be able to purchase Defense Savings Bonds through payroll allotments: Southwestern Bell Telephone Company All member banks of the St. Louis Clearing House Association Sheffield Steel Company Scullin Steel Company Terminal Railroad Association of St. Louis St. Louis, Mo.--A business concern here has awarded a Defense Savings Bond to each of its employees. The bonds were delivered with a letter stressing the need for patriotism and national unity and urging that all employees undertake to purchase Defense Savings Bonds regularly by buying Defense Savings Stamps. To make this method of saving entirely clear, the company presented each employee with an album in which an initial Defense Savings Stamp had been attached. 87 TEXAS Riding Hard! State Administrator Frank Scofield plans to meet with every county and Congressional District Defense Savings Committee in Texas as fast as time and the size of the state permit. The 15th Congressional District Defense Savings Committee met May 20 in Laredo. W. R. Montgomery of Edinburg, District Committee Chairman, presided, and John Shary of Mission, member of the State Committee, and Frank Scofield, State Administrator, were present. On May 21, Administrator Scofield met in Fort Worth with the Tarrant County Committee of which Lewell Lafferty is the chairman. He also addressed a special luncheon meeting of the Fort Worth Chamber of Commerce. Amon G. Carter, Fort Worth publisher and member of the State Defense Savings Committee, and Judge B. B. Stone, chairman of the Committee for the 12th Congressional District, also addressed this large gathering. TEXAS FAVORS SALARY SAVINGS PLANS In a letter to the more than 10,000 employees of the Texas and Pacific Railway Company and affiliated companies, J. L. Lancaster, President, announced that his organization will provide facilities for regular and convenient purchase of Defense Savings Bonds: "Every emoloyee desiring to set aside from salary or wages a regular monthly amount for the purchase of Defense The Company will deposit the Savings Bonds may do so monthly deduction in a special account and each time the deducted funds of a particular employee reach an amount sufficient to purchase a bond, one will be bought in his name and sent to him by registered mail." Here are a few of the other concerns in Texas which are making it possible for their employees to purchase Defense Savings Bonds through salary allotment plans: MISSION Citizens State Bank of Donna Southwestern Land Company Mission Times United Land Company Granjeno Development Company Texas Citrus Fruit Growers United Irrigation Company Exchange South Texas Mortgage Loan Company First State Bank & Trust Company Shary Products Company Southwestern Drug Corporation FORT WORTH Leonard Brothers First National Bank Fort Worth National Bank Chamber of Commerce W. C. Stripling & Sons Woolworth Southwestern Bell Telephone WACO Universal Atlas Cement Company Service Mutual Insurance Company Wm. Cameron and Company L. M. Kizer Claim Service Texas Life Insurance Company Frank L. Wilcox, C.P.A. J. S. Barnett and Company Stratton Stricker Furniture Co. 88 PROGRAM GETS UNDER WAY IN NORTHWEST Miss Marie Young, President of the Washington State Federation of Business and Professional Women and a member of the State Defense Savings Committee, and Mrs. Pearl A. Wanamaker, Washington State Superintendent of Public Instruction, participated in a special tri-state radio broad- cast on June 4. On June 11 Governor Arthur B. Langlie, Honorary Chairman of the Washington Defense Savings Committee, will deliver a radio address on the Program. 200 of the leading retailers in Seattle net recently with State Administrator Saul Haas and Deputy State Administrator William C. H. Lewis to work out plans for placing Defense Savings Stamps on sale in all stores throughout the State. Dividends Paid in Defense Savings Bonds. Louis K. Lear, President of the Queen City Brondcasting Company of Seattle, has announced that future dividends would be paid in Defense Savings Bonds (Series F) and Stamps. Several other companies are considering taking the same action. Stamps for Home Runs. Charles E. Sullivan, Seattle florist who for some time has been rewarding Seattle baseball players with a $10 bill for each home run, is now making the reward in Defense Savings Stamps. Gifts for Graduates. Defense Savings Bonds and Stamps make most appropriate gifts, Mrs. Pearl Wanamaker, State Superintendent of Public Instruction, has reminded parents and friends of graduating students. Newspaper Fill Ins. More than 30,000,000 reminders to "Buy Defense Savings Bonds," "Buy Defense Savings Stamps" will appear each week in Seattle and Tacoma newspapers. Newspapers in many other Washington cities are completing their columns by running these lines. # * Monrovia, Calif.-City Council instructed City Treasurer J. K. Petrie to purchase $2500 worth of Defense Savings Bonds for the city's emergency fund. Hawaii-The United Cane Planters Association of Hawaii reports to Socretary Morgenthau that it is urging its 300 members to "Buy Defense Savings Bonds." EXPENDITURES FOR NATIONAL DEFENSE "More than five billion dollars was spent (for national defense) from June 1, 1940 to May 1 of this year," reports Robert W. Horton, Director of Information, Office for Emergency Management. "That seems for a moment like a lot of money," continues Mr. Horton. "It is, but it is nothing when compared to the total effort required if our defense organization is to be carried out even on the schedule now laid down. "The second year's cash disbursements must be close to five times_billion dollars." 89 ACTIVITIES IN NEW ENGLAND GOVERNOR SALTONSTALL HEADS MASSACHUSETTS COMMITTEE Governor Leverett Saltonstall is the Honorary Chairman of the Defense Savings Committee for the Commonwealth of Massachusetts. Women of the Legion Auxiliary in Massachusetts are informed of their role in the Defense Savings Program in an article by State Administrator Daniel J. Doherty in the current issue of the Massachusetts Auxiliare. The more than 150 councils of the Knights of Columbus in Massachusetts have been urged to cooperate with the Defense Savings Program by their State Deputy, who suggests that each Grand Knight appoint a committee to stimulate active interest in the Defense Savings Program and that the chairmen of these committees cooperate with the Defense Savings Committees of their respective towns. CONNECTICUT The Hartford Defense Savings Committee is arranging a big dinner meeting which will be attended by representatives of all local business concerns in which employees are purchasing Defense Savings Bonds by the salary allotment method. Bridgeport--The City of Bridgeport is buying $10,000 worth of Defense Savings Bonds for its Insurance Sinking Fund, City Clerk Fred Schwarzkopf has announced. Bridgeport--The United Young Men's Hebrew Assn. here purchased 25 $100 Defense Savings Bonds. Hartford-1,000 Boy Scouts carried Defense Savings Bond posters in the Memorial Day parade. New Britain--A large department store will distribute Defense Savings Bond leaflets with the monthly statements to its 5,000 customers. New Haven--The Herry R. Bartlett Post of the American Legion has invested its entire savings in Defense Savings Bonds. Stratford--Trustees of the Police and Fire Pension Fund have voted to purchase $15,000 worth of Defense Savings Bonds. Pewtucket, R. I.-- A group of 14 boys and 3 girls who deliver the local newspaper are undertaking to buy a 25 cent Defense Savings Stamp each week. The dealer from whom they get their papers has agreed to stock a supply of these stamps MICHIGAN Program Develops; School Children Active Public and parochial schools in more than 100 Michigen communities celebrated Monday, June 2 as Defense Savings Stamp Day. "School children carry the Defense Sevings message into their homes," Frenk N. Isbey, Chairman of the Michigan Committee points out, "Through their enthusiesm they arouse an interest in their older brothers, sisters and parents." SCHOOL CHILDREN have taken to the Defense Savings Program in a big way: More than two hundred thousand Detroit school children purchased stamps the first day they went on sale in the schools. Meny schools have established "Stamp Banks" built and decorated by the school children, where Defense Savings Stemps cen be purchased. Thomas Jefferson School of Ferndele, Michigan was the first school in the state to report that every pupil had invested in Defense Savings Stemps. Pupils who could not afford to buy stamps have been given regular "chores" by their teachers in order that they can carn the price of at least one 10-cent stemp each week. Many schools will feature Defense Savings in parades, etc. on Fleg Day, June 14. Arithmetic teachers are using facts about Defense Savings Bonds in teaching about interest, thrift and savings. TO HOLD THE INTEREST of school children during the summer, the Michigan Committee is encouraging the orgenization of essay, slogan and poster contests in every community, these contests to be open only to students who purchase Defense Savings Stamps throughout the vacation period. DETROIT RETAILERS PLEDGE SUPPORT The Retail Merchants Association of Detroit has unanimously adopted a resolution enforsing the Defense Savings Program and calling upon retailers to make it possible for their employees to purchase Defense Savings Bonds through salary allotments. FARM COMMITTEE FORMED Ruben V. Gunn, head of agricultural extension work in Michigan, Art Jorrett, Secretary of the Michigan Bean Growers Association and Victor Bielinski of the Michigan Farm Bureau Federation, make up a committee of three to help Leo Card, Agriculture's representative on the Michigen Defense Savings Committee, carry the message of Defense Savings to farmers throughout the state. 90 POINTERS ON SALARY ALLOTMENT PLANS 91 The following comments and suggestions on salary allotment plans will be of vital interest to all State Administrators, Deputy Administrators and the members of State Defense Savings Committees: A. The adoption of salary allotment plans for the purchase of Defense Savings Bonds is greatly to be desired, because they 1. Afford workers a convenient, regular, automatic method of saving money and purchasing bonds on the installment or budget plan. 2. Furnish a person with experience to purchase and register the bonds for the worker. 3. Save the time of both employee and employer. 4. Only one sale has to be made -- the initial one. 5. Make for continuous buying and saving. B. Bear in mind that: 1. The plan can be applied and adopted by any reputable business concern or industry employing people. 2. A concern does not have to qualify as an issuing agency or receive permission from the Treasury Department. 3. All that is necessary is to have the head of the business concern or industry agree to install the plan for those employees who desire to use it. C. Here are the steps to be taken: 1, Get out suitable announcement and salary allotment order. 2. Put money while accumulating, in a separate bank account to be held in trust for the employees to be used only to purchase bonds as directed. 3. As soon as sufficient money has accumulated to the credit of any particular employee to buy a bond of the denomination he has requested, send a check to a Federal Reserve Bank, qualified fiscal agent, post office, or U. S. Treasury with necessary information for registering and mailing bond, and bond will be mailed directly tobuyerby registered mail. In explaining these plans to labor, in working out the details of particular plans in cooperation with employees and in getting employees to request employers to install allotment systems, the representatives of labor on state and local Defense Savings Committees will be of great assistance to the program. Descriptions of plans now in use by national concerns, copies of letters announcing the plan to employees, and samples of salary allotment order cards are available through the Salary Allotment Division, Defense Savings Staff, Washington, D. C. and through the offices of the State Administrators. 92 SYSTEMATIC SAVINGS PLANS U. S. Treasury Provides Plan for Own Employees A plan for facilitating the purchase by Treasury employees of Defense Savings Bonds has been put into operation. Under this plan "group agents" present Defense Savings information to their fellow employees, secure pledges, and act as their agents in purchasing Defense Savings Bonds or Stamps at regular intervals. The able and popular Charles Schoeneman, Special Staff Assistant, was placed in charge of this program by Secretary Morgenthau. He has selected key men in every department, who are naming the "group agents" and enthusiastically backing their good efforts. All employees in the Treasury are being given an opportunity to sign a purchase pledge card which reads in part as follows: "I hereby agree to pay $ each pay period for the purchase of Defense Savings Bonds (or Defense Savings Stamps) through the Defense Savings Agent, designated for my group, or through other available facilities (post office or bank)". A complete description of this purchase plan will be made avail- able upon request. Bank Depositors Authorize Periodic Drafts The Riverside Trust Company of Hartford, Conn., has sent a letter to all of its depositors calling attention to its depositor purchase plan for Defense Savings Bonds, Here is the full text of the authorization used by the Riverside Trust Company in connection with this plan: , 1941 Riverside Trust Company Hartford, Connecticut Until further notice, I authorize you to charge my account on the and on the day of day and to purof each month thereafter, the sum of $ chase for me a Defense Savings Bond having a maturity value of $ Please have the bonds registered as . follows: Name Hold for my account until called for. Address Signature of Purchaser * BANK BLOTTER The National City Bank of New York is distributing an attractive red, white and blue blotter advertising Defense Savings Bonds. The bank and all of its 70 New York City branches are now selling these securities. 93 BANKS AND SAVINGS INSTITUTIONS PLAY IMPORTANT ROLE Savings and Loan Associations Cooperate More than 1200 savings and loan and building and loan associations have qualified as issuing agencies for Defense Savings Bonds. Several thousand other associations are expected to apply for certification as issuing agents now that it is possible for non-members as well as members of the Federal Home Loan Bank System to sell Series E bonds directly. Mutuals Collect Sales Data The National Association of Mutual Savings Banks has asked member banks to report regularly to the Association headquarters their sales of Defense Savings Bonds. These reports will enable the Association to know the volume of sales effected by mutual savings banks throughout the country. Virginia Bank Sponsors Defense Savings Stamp Day Schools dismissed classes a half-hour early and 2,023 school children from Danville and Pittsylvania, Virginia, brought their pennies, dimes and dollars to the American National Bank and Trust Company and invested in $3,377.75 worth of Defense Savings Bonds and Stamps. This was the reception which school children of Danville gave to the bank-sponsored Stamp Day. The bank made a gala occasion of this visit of the school children, served ice cream and soft drinks, and gave all its visitors pencils in patriotic colors and tickets to = moving picture. Tha bank is also awarding prizes to the classes which have the highest percentage of representation among the bond and stamp buyers. American Bankers Association Buys Defense Savings Bonds When ordinary people buy bonds, it is evidence that there is a good investment. When bankers advise people to buy Defense Savings Bonds, it is still stronger evidence that it is a good investment. But when bankers invest their own funds in Defense Savings Bonds, that's something. writes:W. Espey Albig, deputy manager of the American Bankers Association, "So that you may know we are cooperating, may I say that the Investment Committee of our Foundation yesterday ordered $50,000 invested. A philanthropic organization of which I am treasurer recommended a similar purchase a few days ago." Advice From Banker Bradshaw of Oklahoma Buy less and invest in Government bonds. That is the advice of Banker A. E. Bradshaw of Tulsa on how to finance the defense program. Mr. Bradshaw thus endorsed the Defense Savings Program before a recent meeting of the Oklahoma Bankers Association. - 10 - 94 INFLUENTIAL NATIONAL ORGANIZATIONS BACK PROGRAM General Federation of Women's Clubs The newsreels this past week carried the talk given by Mrs. John L. Whitehurst, newly-elected National President, at the General Federation's Golden Jubilee Convention in Atlantic City, in which she urges all the 2,000,000 members of the Federation's 15,600 clubs to buy Defense Savings Bonds and Stamps. Harford Powel, Information Director, Defense Savings Staff, addressing the General Federation's convention on behalf of the Defense Savings Program, urged the club women to familiarize themselves with Defense Savings Bonds and Stamps and to assume leadership in explaining the program to other women, to men, and to children. "Ne shall not be satisfied until every man, woman, boy, and girl in America is adding at least one bond or stamp a month to the Nation's wealth and to their own," said Mr. Powel. "That is the goal of this crusade." Support of the program by Chamber of Commerce executives thoughout the country has been pledged by the Board of Directors of the National Association of Commercial Organization Secretaries. Members of the International Ladies Garment Workers Union have pledged themselves to purchase at least $500,000 worth of Defense Savings Bonds according to David Dubinsky, President. The union has 265,000 members. The Jewish Welfare Board with more than 300 local affiliates has endorsed the Defense Savings Program and urged Y M H A's and other member agencies to promote the sale of Defense Savings Bonds and Stamps. 200 delegates from 17 states to national quadrennial convention of the Ukranian Workingmen's Association voted to purchase $50,000 of Defense Savings Bonds. Addressing the National Retail Dry Goods Association in Chicago, Harford Powel, Information Director, Defense Savings Staff, thanked department stores for the cooperation which they have extended to the Defense Savings Program. "We are pleased, of course to have stores sell Defense Savings Stamps, Mr. Powel said. "These, with the albums given away with them, are stepping stones to the ownership of Defense Savings Bonds. fe would like to see you introducing them to children, now that the schools have closed "Perhaps in the long off-season for Santa Claus in your toy departments, you might introduce the equally symbolic figure of Uncle Sam "Perhaps on important National Defense window, displaying not only Defense Savings Bonds and Stamps but also some of the hundreds of thousands of interesting items they are buying for the Army, Navy and Marine Corps, would add to the traffic in your store "Perhaps you could pay prizes in Defonse Savings Bonds "Perhaps, as a matter of good public relations, you could investigate ways of letting your customers buy their bonds from you." 11 95 RADIO Famous movie stars are plugging Defense Savings Bonds and Stamps in one-minute recordings now in use throughout the country. Fred Waring and his Pennsylvanians have introduced and featured the new song, "Dollars for Defense." in these times, invest your dollars and your dimes General Foods has set up a schedule for the rotation of announcements about Defense Savings Bonds and Stamps on eleven of its programs. Makers of Bayer Aspirin, Anacin, Kolynos Toothpaste, Dr. Lyons Tooth Powder, Phillips Milk of Magnesia, Louis Phillipe "Angelus" Cosmetics and Old English Wax will make regular announcements on the popular serial programs which they sponsor, according to their agency, Blackett, Sample and Hummert, Inc. The patriotic cooperation of these large concerns is deeply appreciated by the Defense Savings Staff. Business Firms Help Employees to Begin Saving Tide Water Associated oil Company has purchased $1 Defense Savings Stamps for each of its 10,019 employees. The stamps were presented in the albums which hold 75 of those stamps for the purchase of the $100 Defense Savings Bond. The Company announced that this is the first step in its campaign to raise one million dollars for National Defense among company employees. & suggestion that employees put their increased earnings in Defense Savings Bonds and Stamps was made by General Time Instruments Corporation of La Salle, Illinois, when it announced increases of 7% in rates of pay. To give employees an added incentive to hold bonds to maturity, the corporation has promised to pay employees who hold them for the full ten year term a bonus of 10% of the cost of the bond, The Ever Roady Label Corporation told its employees the company would pay 20 per cont toward the purchase price of a Defense Savings Bond and would finance the balance on a 30-payment plan. Thus, an employee subscribing to a $25 bond would start off with $3.75 (20% of the 18.75 purchase price) and pay the balance at the rate of 50 cents a work. All of the firm's 170 employees accepted the offer and subscribed for $6,000 worth of Defense Savings Bonds. ***** Standard Brands, Inc., food manufacturers and distributors with more than 10,000 enployoes, have placed Defense Savings Stamps on sale at its home office and in all of its division offices and plants throughout the country. Managers have been authorized to purchase and keep on hand a supply of stamps of all denominations and to encourage these sales in every possible way. The Now York City Housing Authority notified its 10,783 tenant families that their security deposits would be invested in Defense Savings Bonds. Chairmn Gorard Swope declared that this action would aid National Defense and in addition, obtain interest for the tenants. - 12 - 149 Savings Stamps 119 130 111 657 $ 148 June 7. 1941. 6,133 8,681 5,425 12,916 $39,132 $ 5,976 Series G 1,541 1,265 1,090 1,193 $6,186 $ 1,097 Series F Bank Bond Sales 3,143 3,110 2,800 2,453 $ 3,437 Series E $14,944 8,969 10,817 17,291 12,674 $60,261 Total $ 10,511 971 1,707 1,813 2,283 $9,108 $ 2,333 Series E Bond Sales Post Office On Basis of Issue Price Daily Sales - June 1941 (In thousands of dollars) 6,133 8,681 5,425 12,916 $39,132 $ 5,976 Series G UNITED STATES SAVINGS BONDS AND SAVINGS STAMPS 1,541 1,265 1,193 1,090 $6,186 $ 1,097 Series F All Bond Sales 4,113 4,817 4,614 4,736 $24,051 $ 5.771 Series E 11,788 18,998 14,487 11,252 $69,369 Total $ 12,844 sales. Stamp figures are estimated by the Post Office Department. Treasurer of the United States. The bank figures are taken from Federal Reserve Bank reports and include their own 2 3 4 5 6 Note: Figures have been rounded to nearest thousand and will not necessarily add to totals. Date Total June 1941 Source: Division of Savings Bonds. Figures shown as post office sales of Series E bonds are deposits by postmasters with the Treasury Department, Division of Research and Statistics. 97 TREASURY DEPARTMENT INTER-OFFICE COMMUNICATION DATE June 7. 1941 TO Secretary Morgenthau FROM Mr. Cochran CONFIDENTIAL Registered sterling transactions of the reporting banks were as follows: Sold to commercial concerns £31,000 Purchased from commercial concerns £ 8,000 Of the £31,000 sold to commercial concerns, £10,000 was bought by a Mexican firm. Open market sterling was quoted at 4.03-1/2, and there were no reported transactions. The Cuban peso, after opening at the current high of 5/8% discount, moved off to a closing discount of 13/16% In New York, closing quotations for the foreign currencies listed below were as follows: Canadian dollar Swiss franc Swedish krona Reichsmark Lira Argentine peso (free) Brazilian milreis (free) Mexican peso 11-5/8% discount .2321-1/2 .2385 .4005 .0526-1/4 .2366 .0505 .2070 In Shanghai, the yuan was again unchanged at 5-3/84, and sterling remained at 3.89-1/2. There were no gold transactions consummated by us today. No new gold engagements were reported. HMP.