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204
November 28, 1941
9:30 a.m.
GROUP MEETING
Present:
Mr. Buffington
Mr. Thompson
Mr. Cochran
Mr. Gaston
Mr. Graves
Mr. Morris
Mr. Bell
Mr. Blough
Mr. Odegard
Mr. Kuhn
Mr. Haas
Mr. White
Mr. Schwarz
Mr. Sullivan
Mr. Foley
Mrs. Klotz
H.M.Jr:
Herbert?
Gaston:
Good morning. I guess I haven't anything
to talk about except one or two political
matters.
H.M.Jr:
All right.
Herbert, on these people who are coming in
all the time from Europe, I don't think that-
I think it is quite all right for a man like
Harriman to have free entry, but I don't see
why these other people should.
Gaston:
The regulations allow free entry to all
diplomatic representatives of foreign
countries, including consuls and their
205
-2staffs and their suites and they allow the
same privilege to all corresponding United
States officials, consuls and their families
and --
H.M.Jr:
Irrespective of how much they bring in?
Gaston:
Yes. The only limitation is that they shall
not bring in alcoholic liquors.
H.M.Jr:
Well, what would happen, for instance, if we
had a ruling that even though they had diplomatic
courtesy, they should file a Customs return?
Gaston:
I think it would be a - I talked to Johnson about
that same thing. I think it would be a sound
thing, only it is simply not according to the
rule. Of course, we couldn't exact the
forms. I think we probably could under the
law make a regulation with respect to United
States Government representatives that they
should make a declaration.
H.M.Jr:
Will you write a letter to Mr. Hull for my
signature that in the future I think any
United States citizen who has free entry should
file a Customs return and then we will let him
come in, but I will in each case furnish the
State Department with a copy of this return.
That gets back to that case of the Minister
from Persia who brought in fifty thousand dollars'
worth of rugs.
Gaston:
Yes. The rule is that they are allowed free
entry for anything that is their personal
property and for their personal use, and
that is free, even though it would be in
ordinary circumstances dutiable. The only
test is that it is for their own personal use,
and their own property. That is under the
regulations.
206
-3H.M.Jr:
It is regulations, it is no law, and those two
Ambassadors came back that time, one from
Germany and one from Paris, one bringing in
four hundred bottles of wine, and one eight
hundred bottles of wine.
Gaston:
That is a violation of the regulation. That
H.M.Jr:
Would you write a letter for my signature?
Gaston:
Would you mind if I talk it over with Mr.
H.M.Jr:
No, it is all right.
Gaston:
Just to see what basis we can put it on.
H.M.Jr:
O.K. I just don't see why they should be
permitted to bring in a large quantity of
is not permitted.
Johnson and the lawyers first?
dutiable savings, because I am sure some of them
cheat.
Gaston:
There is nothing to prevent their cheating,
because they have both free entry and freedom
from examination.
H.M.Jr:
And then we furnish the State Department with
a copy.
Anything else?
Gaston:
H.M.Jr:
Well, the only other thing was that political
matter.
Let it wait. Just like we are checking these
Ambassadors' reports and they put down twenty-
five thousand dollars for entertaining, lump
sum, and then we analyze it and we have thrown
quite a lot of it out. There is no basis to
believe that these fellows play the honor rule.
207
-4They don't, because under some of these
returns we have thrown out a large proportion
of what they put under it. I mean - and I am
sure they do a lot of cheating. I don't see
why they should be permitted . We have
examined one man, twenty-five thousand lump
sum for entertainment. We examined it, and
there wasn't any.
Gaston:
There isn't really any logical reason why
one of these United States representatives
should go abroad and buy a lot of things
for his personal or family use, and bring
them in without duty, but under the present
system he can do it.
H.M.Jr:
Well, nobody has got the guts to go up against
him, and I think It would be very wholesome.
Gaston:
Right.
H.M.Jr:
Foley?
Foley:
I want to clear up a misunderstanding in connection with that speech that Ganson Purcell
made out in Detroit. Ganson attempted to clear
that with us. He sent a copy to me, and I
showed it to Joe and to Harry. He was a little
disturbed because he said Chick had called up
the press man over there and -H.M.Jr:
At my request.
Foley:
Yes.
H.M.Jr:
Well, how should Chick or I know that he had
cleared it?
Foley:
Well, if we had been having regular meetings,
Mr. Secretary, or if we had had a chance to
bring it to your attention, I certainly
would have done it. It is my fault, anyway,
208
-5 and he is in the clear.
H.M.Jr:
Well, Chick doesn't have meetings.
Foley:
Well, it came over on Monday night before
Thanksgiving.
H.M.Jr:
Chick doesn't have meetings.
Foley:
Well, I should have shown it to Chick.
H.M.Jr:
Sometimes --
White:
I feel partly responsible. I don't quite see
why, unless it is going to be the understanding
that any public speech made will be referred
to him.
H.M.Jr:
Yes.
White:
Well, how about a statement that the Federal
Reserve Board Bulletin is sending us to clear?
Should that also go to Chick?
H.M.Jr:
Yes, so that he knows.
Schwarz:
I get some direct from the Board also.
White:
Well, it is a simple matter. I just didn't
know that was the procedure.
H.M.Jr:
He gets the questions. How is he going to
know?
Foley:
Well, it wasn't our speech, and that is why
I didn't send it to Chick. If it had been a
speech by somebody in the Treasury, of course
we would have sent it to him.
H.M.Jr:
Well, the only way I know is if Chick does,
see, so if you will do that.
209
-6Foley:
Yes, sir, that is right, and I think if Chick
would call up over there and say that --
Schwarz:
We haven't any objection --
Foley:
No, no, that we were in error in calling up
and criticizing them for not having done
it, because they had attempted to do it, and
it was on us and not on them. I think Ganson would
feel a little better about it. He felt kind of -
a little put out at having attempted to do what
was the right thing, and then being called down
for not having done it.
Schwarz:
I didn't know about it, so I called Bill
Raymond. He had to check and wait for Ganson
to come back to town.
Foley:
We read it and Harry read it, and we didn't see
anything objectionable in it. We made a couple
of suggestions and he incorporated the changes.
H.M.Jr:
Here is a letter to go to Bell, Foley, and the
Foley:
I understand.
H.M.Jr:
I don't think you do. Chick sends me a clip-
Comptroller on old man Giannini. You see what
happened, let me explain to you a minute --
ping on this thing. That is his job. I read
it. Why doesn't somebody tell me about it?
Chick doesn't know it, you see.
Schwarz:
In advance that way, if we have any objection
then when we get the copy we can --
H.M.Jr:
Just remember, "Here a Chick, there a Chick,
everywhere a Chick Chick." (Laughter).
O.K.?
Foley:
O.K.
210
-7H.M.Jr:
All right. What else?
Klotz:
That is silly.
H.M.Jr:
We get too serious sometimes.
Foley:
That is all.
H.M.Jr:
Would you (Sullivan) stay afterward? I have
got a couple of things.
Sullivan:
Yes, sir.
H.M.Jr:
Don't bring in any papers. This is just oneway traffic.
Sullivan:
O.K.
George Haas is taking the responsibility of this
gap study, the committee on which Harry's
outfit and Roy's outfit will be represented.
Then they are going to try to get representatives
from Federal Reserve, Budget, SEC, OPM, OPACS,
Agriculture, and Commerce, and we are drafting -H.M.Jr:
I think Hansen of National Resources --
Sullivan:
Yes, I think that should be added, and we are
H.M.Jr:
drafting also for your signature to the heads
of those agencies asking them to appoint a man
to --
Well, weather permitting, I will leave right
after lunch for the farm, butidon't send
anything in for me to sign. Get it to me
before lunch, if there are any letters. You
are taking care of Congressman Elliott?
Sullivan:
I will, yes.
211
-8H.M.Jr:
Good. Do you want a memo on it?
Sullivan:
No, sir, I have it right on my desk.
H.M.Jr:
Wonderful.
Cochran:
I have a letter here to sign renewing the Canadian agreement for another month.
H.M.Jr:
All right.
Cochrans
And you understand that they are selling
their silver more to the market now, and not so
much to us?
H.M.Jr:
Pardon?
Cochran:
They are selling their silver to the market,
rather than to us. We only obtained two hun-
dred thousand ounces last month.
H.M.Jr:
I wish I had dropped the price of silver before
we put through the tequila deal.
Cochran:
That becomes operative the first of December,
and Knoke is rather concerned lest the
Mexicans may sell the silver to us or even
withhold it from anybody for a while, and
force the price up on the market. Handy
and Harmon, I think, have written a letter
to the Department of State today and a copy
is to come to you, indicating their worry
lest this may upset the silver market, and
so on. Whether Knoke wanted us to approach
the Mexicans to tell them that we would be glad
if they would sell their silver to the market
or whether we should make any such approach as
that just after signing the agreement, I have
my doubts.
212
-9H.M.Jr:
Well, let's see what happens.
Cochran:
All right, we will wait until Monday and see
how it goes.
We are meeting with Mr. Bell this afternoon
on China at three thirty. Whether you wanted
to see me for a minute this morning on that
or whether you would rather wait, I didn't
know.
H.M.Jr:
Anything on China I want White in on.
Bell:
This meeting this afternoon is just - just to
see what is in the mill and needs to be cleaned
up. The Secretary doesn't have to be in on that,
does he?
Cochran:
Oh, no.
White:
No, it can wait, but there are some things.
Cochran:
Oh, there are definitely several things.
H.M.Jr:
Well, get together, folks.
Well, you (Bell) are going to be on the Hill,
I don't know, Merle may have some things, but
we have some things too.
but I did send you one note which I wish you
would think about, and that is the possibility
of raising the amount of F and G for the
balance of this year to a hundred thousand
dollars. Think about it and let me know Monday,
will you?
Bell:
Yes. This is for the rest of the year?
213
- 10 H.M.Jr:
Yes.
Bell:
All right.
H.M.Jr:
And the other thing, do you want to settle
that note thing today?
Bell:
You mean the Treasury bills?
H.M.Jr:
Yes, bills.
Bell:
Oh, I don't think it is so important. I thought
maybe if you could announce today that there
would be a reduction in the bills beginning the
tenth, it might help you to get a little better
price on Monday. But Monday morning, I think,
might be just as well.
H.M.Jr:
All right. Then the other thing, Dan, would you
do this for me, you and Dave? I would like to
see you - I will give you from nine to ten
thirty Tuesday for me to see people, see, on
Tuesday.
Bell:
Anything in the afternoon?
H.M.Jr:
And then in the afternoon from three to four
Bell:
Yes.
thirty, see.
214
- 11 H.M.Jr:
Bell:
Now, let's go out of town again and have
them come here. Anybody, say, from St.
Louis or even Richmond. I mean, that is
very important, you see. There is Chicago.
There may be people there that are follow-
ing the market closely. I doubt it. St.
Louis, probably.
H.M.Jr:
Well, it is just to get the feeling and it
makes them feel good.
Bell:
Anybody from Atlanta?
H.M.Jr:
Yes, and I want the president in Atlanta and
the First National Bank in Boston.
Bell:
Not Pope?
H.M.Jr:
Pope is your baby.
Bell:
I spent an hour with him yesterday.
H.M.Jr:
What is his name?
Foley:
Charley Spencer.
H.M.Jr:
I would like to have him. But if you and
Dave will fix up a list, including a few
brokers. All right?
Bell:
Someone from Chicago?
H.M.Jr:
Yes, very much so and this time from the
First National Bank of Chicago.
Bell:
All right.
H.M.Jr:
We have always had the Continental. Mr.
Brown might come in himself. He is a good
man.
- 12 -
215
Bell:
We might look at Minneapolis. There are
two or three banks up there.
H.M.Jr:
I can run over until Wednesday morning, too,
I would really like to see - I would like to
see more people. I will run over until
Wednesday morning with them.
Bell:
Fifteen or twenty minutes ought to be enough.
Probably three an hour.
H.M.Jr:
Three an hour is about all you can take.
Bell:
All right.
H.M.Jr:
And somebody from Minneapolis, St. Louis.
Bell:
Richmond and Atlanta, Chicago and New York.
H.M.Jr:
And Boston.
Bell:
Yes.
H.M.Jr:
I have never met the head of the new Federal
of Philadelphia.
Bell:
Let's see, he is not on the - I don't think
he is on the committee.
H.M.Jr:
That doesn't make any difference.
Bell:
Want him to come down?
H.M.Jr:
You might. He is here in Washington with the
OPM, I hear, or rather with Lend-Lease.
Bell:
Is he?
H.M.Jr:
Yes, I hear he is first assistant to Stettinius.
Bell:
He is all right. He is a very able fellow.
- 13 -
216
H.M.Jr:
Reagh, or something like that.
Bell:
Oh, no, Williams.
H.M.Jr:
That isn't the man I mean, then.
Bell:
You mean the Chairman of the Board?
H.M.Jr:
Yes.
Bell:
Well, he is an older man.
H.M.Jr:
The man I mean is the head of the Scott Paper
Company.
Bell:
Well, t hat is the Chairman of the Board.
H.M.Jr:
Then Williams is it.
Bell:
Williams is a much younger man who just went
in in place of John Sinclair.
H.M.Jr:
George?
Buffington:
I have nothing.
H.M.Jr:
Have you been having supper with Richard Ince?
Buffington:
No, not recently.
H.M.Jr:
But you have had supper with him?
Buffington:
Yes.
H.M.Jr:
Just checking up on you. He was at the house
last night. Neither I nor your wife could
find you last night, Ferdie.
Kuhn:
My wife was with me last night.
H.M.Jr:
What?
Kuhn:
Sure. (Laughter) We went out for dinner, and
- 14 -
217
I came home and the nurse had left a message
saying, "If you get home before nine, please
ring the Secretary's operator. "
H.M.Jr:
The operator said, "Mrs. Kuhn says that Mr.
Kuhn is out. If you want to reach him, I
may be able to, but I doubt it." She indicates
it was Mrs. Kuhn.
Kuhn:
Sorry.
H.M.Jr:
You had better train her better. It sounded
like Mrs. Kuhn. (Laughter)
Klotz:
That is very unkind.
Kuhn:
You may want to see the little fifteen minute
programs that we are getting up for all the
radio stations made up of the best items of
the Treasury Hour, you remember.
H.M.Jr:
I would like to take that Baby Snooks record
to play for the family. And listen, young
fellow, here is a must. I want Baby Snooks
to go on again, our program, and let her
repeat that thing. Let her repeat that one.
She doesn't have to do another one.
Klotz:
Oh, everybody listens to it, Mr. Morgenthau,
really.
Kuhn:
She is always good.
H.M.Jr:
Well, let's get another one.
Kuhn:
She can do it.
H.M.Jr:
But tell them I want Baby Snooks on the air,
will you?
Foley:
Gaston doesn't want to listen. (Laughter)
218
- 15 Gaston:
I told Ed as they used to say in the Spanish
American War days, "She makes my wound
quiver."
Klotz:
She is marvelous.
H.M.Jr:
Well, anyway, I want Baby Snooks.
The funniest thing, see if I can repeat this
right, who brought in this radio man?
Kuhn:
H.M.Jr:
I did.
He said he used to do radio programs for
Underwood Typewriter, but he said the Chairman
of the Board didn't like singing, his wife
didn't like - what? Something else. And
he said they never could get the husband
and wife, Mr. and Mrs. Wagner, to agree on
anything so finally in disgust he gave up
the radio program. So I said, "Have you
got it easy with the Treasury?" and he
says, "And How!" Nothing that they have put
on could the husband and wife agree on,
the president of the company.
Klotz:
That has happened before. (Laughter)
White:
What did you say, "Mrs. Morgenthau doesn't
H.M.Jr:
Oh, she is crazy about Baby Snooks.
Klotz:
Harry is being funny.
H.M.Jr:
As a matter of fact, it was terribly funny.
listen?"
Mrs. Morgenthau was like Herbert. She thought
it was terrible, and she was home on the farm
alone and she sat there gripping her chair
prepared to just have a terrible five minutes
while Baby Snooks came on, and she said it
was the first time in her life that she sat
- 16 -
219
alone in a room and just laughed out loud.
She says she has never laughed out loud
over anything on the radio before. The
other night when Baby Snooks was on she was
furious because her sister called up from
Northampton and she gave her sister hell
for interrupting her. (Laughter)
Gaston:
W. J. Cameron and the girl that precedes
Elmer Davis on the Palmolive, those are the
only two that I dislike more than Baby
Snooks.
Sullivan:
Cameron is the head of the parade.
Klotz:
I would go along with that.
H.M.Jr:
Have you something else?
Kuhn:
Our farm man at Defense Savings got several
phone calls from Agriculture to say how very,
very pleased they all were that you had
consulted with them on your farm speech.
The thing seems to be going the rounds over
there, and he said they just are all "Hearts
and Flowers" ever since that occasion, and
I asked what particular thing, and he said-H.M.Jr:
They feel just the same way as though if
Eccles ever consulted me about a speech.
Kuhn:
Well, apparently it was your talk with
Wickard that pleased them the most, before-
hand, about the stock piles and so on. I
don't know why.
H.M.Jr:
And I told Wickard I didn't agree with him
on the stock piles.
Kuhn:
I thought I would just pass it on as a matter
of interest to you.
220
- 17 H.M.Jr:
I want to say Wickard is a swell guy and he
is making some wonderful speeches.
Incidentally, Chick, I didn't see it, but
Secretary Knox's explanation of how he
signed the articles without reading them.
Schwarz:
That is right; would you like to see it?
H.M.Jr:
Would you give it to me to take to the
country with me.
Schwarz:
Surely.
Kuhn:
I have nothing.
H.M.Jr:
Blough?
Blough:
Any tax charts or memoranda today?
H.M.Jr:
Pardon?
Blough:
Do you wish any tax charts or memoranda today?
H.M.Jr:
I will take them to the country with me, and
I wish that you and your lawyers would con-
sider this very seriously with Mr. Sullivan.
When we complete the group on the steel, you
see, I would like to present it in colors
and with a little book to a joint committee
on taxation, Ways and Means and Financing,
you see, a joint meeting, and then with Mr.
Sullivan you could work out a way whereby
we could make this public and then I would
like to do a series of those just as fast as
we can turn them out.
Now, if we can't make them public, the joint
committee on taxation can, I think. Would
you look into the law and consult the clerk
of the committee and let--
221
- 18 Sullivan:
I think we had better wait and see what it
H.M.Jr:
Well, anyway, make sure in the Treasury how
can we go about making that public, you
see.
Sullivan:
Yes, sir.
H.M.Jr:
O.K., Roy?
Blough:
Yes, that is all.
H.M.Jr:
Harold, I read your memorandum on Sulds. I
shows first.
haven't got time to see him this morning, but
I will see him Monday or Tuesday and under
the arrangement that you and I have we keep
him until the first of January.
Graves:
Very good.
H.M.Jr:
And I will see him - I read the whole thing,
but I haven't got the time this morning, but
I will see him Monday.
Graves:
Would you like me to send word to him?
H.M.Jr:
If you please.
Graves:
Yes, sir.
H.M.Jr:
Why don't you give him three o'clock.
Graves:
Two o'clock?
H.M.Jr:
Three.
Graves:
Three o'clock Monday?
222
- 19 H.M.Jr:
Yes, and you look after Senator O'Mahoney.
Graves:
Yes, sir.
I examined that record and found that while
he mentioned two companies, he did not identify
one, so I have been trying this morning to
reach him to get the name of that company,
and I have so far not been able to get to
him.
H.M.Jr:
What he asked me for wasn't to get him any
business. What he is interested in is the
small businessman, you see, and he is trying
to interest me because they won't buy
Defense Savings Bonds, they will use a con-
tract, but I thought that possibly here are
a couple of fellows that could make something
for us over in Procurement.
Graves:
One of them, the one that was identified,
that is the Michigan Company, according to
Mr. Mack, to whom I spoke this morning, and
he has been a contractor for furniture for
the Government.
Of course, they build office furniture, and
I suppose it is a matter of the OPM deciding
that for that purpose they are not willing
to grant any priorities--
H.M.Jr:
Well, O'Mahoney--
Graves:
... in these days.
H.M.Jr:
... is a very keen fellow, and I would like
to go all through this thing, just to find
out what are the facts and everything else
so that--
223
- 20 -
Graves:
Using
these
what he
-- companies merely as an example of
H.M.Jr:
That is right.
Graves:
Well, as soon as I can get hold of him and get
the name of that other company --
H.M.Jr:
But his interest isn't getting contracts; his
interest --
Graves:
No, he said that.
H.M.Jr:
But O'Mahoney is devoting himself to this and I
would like to cooperate with him if I can.
Graves:
Yes, sir.
H.M.Jr:
Anything else?
Graves:
Mr. Bell has arranged for a rehearing on our
estimate.
H.M.Jr:
Who?
Graves:
Mr. Bell, and I am going over to the Budget at
eleven for that.
H.M.Jr:
Good. Want me to lend you my rabbit's foot?
Graves:
H.M.Jr:
Yes, sir. I don't think we will need it.
I don't either.
Graves:
I have nothing more.
H.M.Jr:
There is nothing in your report about that
Graves:
No, I didn't intend to make any particular point
of that.
draft business.
- 21 -
224
H.M.Jr:
Well, I think that that is the most significant
thing of all.
Graves:
Would you like a memorandum about that?
H.M.Jr:
Yes. George?
Kuhn:
Mr. Secretary, may I mention one more thing
briefly? I am ready to report to you any time
on that story that you had Commissioner
Helvering talking about, the dismissal of
those people up in New York.
H.M.Jr:
Haven't you released it?
Kuhn:
No, because Herbert and Ed and Chick and I
and the Commissioner all think it is dangerous
business.
Sullivan:
Me too.
H.M.Jr:
Well, that is enough for me.
Schwarz:
We have been checking through the lawyers and
I was going to bring that up.
H.M.Jr:
Forget it.
Kuhn:
The story has been done --
Foley:
We would have an action on our hands right away,
Mr. Secretary.
H.M.Jr:
All right, forget it.
Foley:
Dave Schenker called up yesterday and told John
and me about one of the boys on that list. He
says that he knows him and he has known him
all his life, and the fellow is unjustly accused
and has been dismissed without hearing and he
thinks it is terrible and all that. I called the
Commissioner and the Commissioner said he didn't
- 22 -
225
want to do anything about it, and I dropped it.
That is what we would be up against if we
published the list. It is bad enough anyway.
H.M.Jr:
The case is dismissed. (Laughter)
Sullivan:
Thanks for bringing it up, Ferdie. I forgot to.
H.M.Jr:
George?
Haas:
Mehl, over in Agriculture, seems to be following
up your idea on speculation. Here is a
clipping of some of his remarks. How often do
you want to see these reports on production of
aircraft and tanks? It has been about a month.
H.M.Jr:
I will see them again Monday.
Speaking of the case being dismissed, you have
heard my story about John E. Mack being in court
in the middle of a trial and it was a quarter
of twelve or around five minutes of twelve and
he looks up and says, "I see that Henry
Morgenthau, my very good friend, has come to
get John & Mack for lunch. Court is dismissed."
(Laughter) And the lawyer came up and says,
"Darn you, Morgenthau, I was just about ready
to get a decision, and now the thing may go
over for a week."
Peter, are you going to give me a title for
that, "There Shall Be No Night"? Did Mrs. Klotz
put that up to you?
Klotz:
Last night.
H.M.Jr:
How do you like that?
Odegard:
It is a beautiful card.
H.M.Jr:
How do you like the title?
- 23 -
226
Odegard:
I would like to think about it a little more
H.M.Jr:
You don't like that, "There Shall Be No Night"?
Odegard:
today.
I would like something, "On Guard Against the
Darkness" better. It is less hectic. And
besides, it is the slogan of the Defense Savings
Staff.
H.M.Jr:
What is?
Odegard:
"America on Guard."
White:
You shouldn't be afraid of the dark.
Klotz:
The old bogeyman. (Laughter)
Odegard:
To be on guard is not to be afraid.
White:
Yes, I know, but it implies something dangerous
and we try to train our children not to be
afraid of the dark. (Laughter)
H.M.Jr:
Harry, you are taking on a buzz saw, be careful.
White:
I will save it for him.
H.M.Jr:
Chick?
Schwarz:
There is a telegram from the Rotary International
Magazine asking for an article from you on
current economic problems. Unless you have some
reason for --
H.M.Jr:
Three thousand dollars and then I sign it and
Schwarz:
say I didn't read it. (Laughter)
Let the staff man write it.
H.M.Jr:
Yes.
ml
- 24 -
227
Schwarz:
That is all.
H.M.Jr:
Harry?
White:
We got a good many cables from Cassidy in
response to your request for information on
excess profits tax. Would you like them all
mimeographed and distributed?
H.M.Jr:
Yes.
White:
Do you want them digested?
H.M.Jr:
Yes.
White:
Do you want to take them up over the weekend?
H.M.Jr:
No.
White:
We got a report on the British film settlement
H.M.Jr:
White:
that you asked for, -Yes, I would like that.
from the British, but they didn't reply to
the other question yet. They may later. Incident-
ally, we have got the return of the Dutchess
of Windsor as to what property she has here.
I will send it for your edification.
Mr. Bewley asked those two questions about gold,
one of which you answered during the course of
the discussion. The second one was not
definitely answered. They would like an answer.
H.M.Jr:
What is the second one?
White:
The second question was, in view of the fact
that the Russians are going to come under the
Lend-Lease and therefore presumably will not
have goods to buy here, or very little goods to
228
- 25
buy here, their sale of gold to provide dollars
will be nil or small, In that event will the
British be able to acquire gold outsids of
first?
that arrangement which you had established
H.M.Jr:
Well, you can tell them - our English friend,
what is the financial arrangement with the
Russians. Look, toll the English to quit
jockeying around and come and tell me, Mr.
Morgenthau, we want to do this or this with
the Russians, 11 and tell them I am not used
to doing business this way, and tell Sir
Frederick Phillips to walk in here the way
he always does and say, "Look, Mr. Morgenthau,
WG want to sell the Russians so and so much.
We want to get paid in gold." O.K.
White:
And you would like to know the amount and the
specific transaction which is involved and
which is raising the question?
H.M.Jr:
Yes, and I would give him an answer like that.
All of this jockeying for position, I don't
like it. I haven't been on that basis with
the English.
White:
I will ask Sir Frederick to come in.
H.M.Jr:
To walk in here and tell me what is all of
this mystery about. If he has got something
the Russians need, I will give him an answer
so fast it will shake his false teeth.
White:
Sir Frederick? (Laughter)
H.M.Jr:
Yes,
White:
You wanted me to call your attenti on to the
proposal to establish that Parran committee.
Do you want to take that up now or sometime in
the future?
1
- 26 -
229
(Mr. Bell left the conference.)
H.M.Jr:
Parran committee?
White:
Or a committee to examine the food needs of
H.M.Jr:
Not today.
White:
With respect --
H.M.Jr:
White:
the public.
I have got a slight indigestion. I can't talk
about a minimum of nutrition.
Then this next thing should be passed. This
is the letter you said looked so good that it
must have been drawn by lawyers.
H.M.Jr:
Did you get that already?
White:
Well, Miss Chauncey had it, that is why you
couldn't understand it. (Laughter)
H.M.Jr:
I read that thing through and when I got through,
I said no economist could have written that.
It must have been a lawyer.
White:
I see.
H.M.Jr:
A page and a half of nothing.
White:
Well, I will have the lawyers rewrite it and
see if they can do better.
H.M.Jr:
Who wrote that letter?
White:
I wrote most of it. (Laughter)
H.M.Jr:
It is terrible.
White:
It is kind of a subtle point. (Laughter)
Sullivan:
Too subtle, Harry.
- 27 -
230
White:
That is what I get for trying to be a lawyer.
H.M.Jr:
Anything else, Harry?
White:
That is all.
Morris:
Nothing.
H.M.Jr:
Dave, Bell isn't here, but last night I did
read the memorandum which you fellows wrote
based on all of this stuff, and when I got all
through reading it, the only thing that I
noticed was that everything that you people
were in favor of was the 25% cash.
Morris:
That is practically all, and separating, which
we are doing, the cash from the refunding.
H.M.Jr:
But outside of that I couldn't get a thing out
Morris:
Well, the answer is that we don't see eye to
eye with the Federal.
H.M.Jr:
Yes.
White:
Why don't you get an economist towrite it?
of it.
(Laughter)
H.M.Jr:
All right. On Friday mornings Harry always
has beefsteak for breakfast.
I am willing to go along on the 25%, see,
and the only other suggestion, I know that
they will say that they can get the Defense
Savings Bonds but I think I would go back
again. I would let anybody that wants to
buy ten thousand dollars worth of this next
issue and hold it for six months, have a
hundred percent allotment. That is a suggestion,
not an order. Ten thousand dollars, hold it
- 28 -
231
six months, register it, put up 25%. Will
you pass that along?
Morris:
Yes.
Thompson:
In connection with Mrs. Honeyman's nomination,
I assume you wanted me to hold that until we
get Irey's report.
Thompson:
That is right.
I understand that the President asked for it
H.M.Jr:
No.
Gaston:
I inquired Ed Flynn's position on that. He
H.M.Jr:
immediately.
is a thousand percent against it. He was
talking to the President and Mrs. Roosevelt
about it.
H.M.Jr:
Gaston:
That is all right. I just want to be in the
clear about it. The President wants it and
Frances Perkins wants it. As far as I am
concerned, it is all right.
I think in view of the fact that I found out
he talked to the President not once, but
several times about it, we can ignore any
further efforts to clear it with Flynn, as
far as we are concerned.
H.M.Jr:
Yes, but I think --
Gaston:
That is a matter between him and the White House.
H.M.Jr:
That is right. Though the President followed
Flynn's advice on LaGuardia, that is no reason
why he should do the same on Mrs. Honeyman.
I hope everybody has a nice weekend.
11/28/41
232
Photostats of the attached furnished to
SSPS. Bell, Foley and Delano on this
late.
233
THE WHITE HOUSE
WASHINGTON
-
November 27, 1941.
MEMORANDUM FOR THE
SECRETARY OF THE TREASURY:
FOR YOUR INFORMATION.
F.D.R.
V
(COPY )
6156 Olympic Blvd.
Los Angeles, Calif.
234
November 17th, 1941.
President Franklin D. Roosevelt
c/o Edwin M. Watson
White House
Washington, D.C.
Re: First Trust & Savings Bank
Pasadena finally succumbs.
My dear Governor:
I do not wish to burden you at this time but
knew that you would be interested to learn that A. P. Giannini of the Bank of America has finally taken over the First
Trust & Savings Bank through an exchange of stock by the
Bank of America's indirect holding company -- Transamerica
Corp. The deal is one share of B. of A. Stock and $15.00
cash for one share of First Trust & Savings stock. The
normal market for First Trust & Savings being $30.00 per
share. In other words, a $60.00 consideration for $30.00 stock.
In some cases they gave as high as $75.00 to get the deal started.
Mr. McDonnell, the First Trust president will receive
three-quarters of his present salary as a pension, and was practically told to leave the keys on the inside after having built up
and being a credit to this bank and community for over forty years.
It seems that the Italian's blitzkrieg" was too powerful
for this small independent bank to cope with. This is a blow
against free enterprise. Mr. McDonnell advises me that he had sent
a letter to Mr. A. P. Giannini admitting his defeat and added that
they both were getting along in years, and when they had passed on he
at least would get a great deal of satisfaction knowing that he had
had no part in selling our present and future generation down the
river. He is definitely right, as per my letter of November 11th and
the enclosed.
The middle man is being squeezed between the top and the
bottom by groups like Giannini and General Wood on the top, and
Lewis and Bridges at the bottom -- one group is well organized politically because they have the votes; the other is financially able to
control and operate a large lobby in Washington and several other
states. The only way for the middle class to survive is to unite like
the Unions.
Very confidentially,
(Signed) H. R. O'Keefe
P.S. I note where Mr. Nelson, formerly of Sears Roebuck & Co.
will resign if Mr. Odlum who handles the small independents is
granted Four Hundred Million Dollars worth of defense orders.to be
distributed. He, Nelson, does not want to even give the independents
the crumbs.
H.R.O.
IMPORTANT:
Don't you agree that the secret ballot should be definitely included
in your new labor setup. IT WOULD GIVE EVERYONE THE RIGHT TO VOTE
AS HIS CONSCIENCE DICTATES.
235
ASSISTANT SECRETARY OF THE TREASURY
November 28, 1941.
MEMORANDUM
To:
From:
Secretary Morgenthau
Mr. Gaston
Ed Flynn called me from
New York just now (11:45 A.M.)
about the proposed Honeyman ap-
pointment. He said it would be
terrible' and would "ruin us out
there". He said he was going to
write to Mrs. Roosevelt and asked
me to ask you to hold it up while
he was taking the matter up with
the White House. Since we have
ordered a character investigation
the matter will have to wait
until the President's return in
any event.
My
Mr. Graves read this conversation.
236
November 28, 1941
2:08 p.m.
HMJr:
Vice Pres.
Hello. Hello. Hello.
Wallace:
Hello.
HMJr:
Hello, Henry.
W:
How are you?
HMJr:
Well, I've still got a back, unfortunately,
W:
Gosh, that's tough. I was hoping you could
between the third and fourth lumbar.
play.
HMJr:
W:
But it's getting better.
Fine. I've got an article written here for
the Atlantic Monthly, in which I'm developing
somewhat this same theme that you developed
before the Grange meeting.
HMJr:
W:
HMJr:
Yes.
And there's a reference or two to gold in it,
and before I send it I'd like to have you take
a look at it, if you can take the time.
Well, I'm leaving at two-twenty-five, but Harry
White's available.
W:
I'll just send it over to him then.
HMJr:
Would you do that?
W:
That'11 be fine.
HMJr:
W:
If you don't mind, because I imagine you want
action.
Yes, I want to send it along now. It's chiefly
along this same line
HMJr:
W:
Good.
that you were bringing up there.
237
2HMJr:
Fine. Well, I appreciate the courtesy; and if
you'11 send it to Harry, he'11 look at it.
I've got a letter here from Nelson Rockefeller
W:
HMJr:
Yes.
about a matter which is of great interest
W:
to him and to Milo Perkins and to me.
HMJr:
Right.
W:
and it has to do with the effective
functioning of the economic defense program.
HMJr:
Yes.
W:
It seems that Nelson has given a hundred and
five thousand dollars; Perkins' outfit a hundred
and forty thousand dollars, to the Department
of Commerce for expansion of their statistical
and research groups
HMJr:
Yes.
W:
for preparing the basic material on which
both offices rest.
HMJr:
Yes.
W:
They - Jesse Jones and Harold Smith and Wayne
Taylor and Milo had all gone over the proposition
all in accord, and - well, I'll quote now from
Rockefeller's letter. They were consolidating
certain groups in Milo's outfit and Rockefeller's
outfit on the South American front
HMJr:
W:
I see.
with certain of the groups in Commerce -
that is, they're utilizing the groups in Commerce.
HMJr:
Yes.
W:
Really making a unit between three different
HMJr:
departments, you might say.
I see.
-3W:
238
Wayne Taylor was greatly pleased with it, but
this is what came up apparently - well, I'll
quote:
"Wayne Taylor was delighted with the arrangements
and stated that an unusual circumstance would
make it possible as the Maritime Commission was
leaving the Commerce Department to occupy its
new building, which will be ready next week,
thereby vacating a hundred and ten thousand
feet in the building. Final arrangements for
the completion of the whole program were being
made yesterday, when it was discovered that
Secretary Morgenthau had gained permission from
the President for the allocation of the new
Maritime Commission building for the Public
Buildings Administration in order to get the
latter out of the Treasury building immediately
to make room for the expansion of Treasury
activities."
Nelson goes on to say, "While we presume
Secretary Morgenthau's needs are real, we
feel that they should not be taken care of
right away so as not to jeopardize this
important consolidation
HMJr:
W:
HMJr:
Oh.
because of the far-reaching implications,"
and so on.
The hundred seventy thousand feet we're getting
are to be used one hundred per cent for LendLease Procurement; and I think that between
Rockefeller and buying for the English and the
Russians and the Chinese, I think that we'd
better come first - with all due respect to
Nelson Rockefeller.
W:
Well, it's not really Nelson. It's also the
HMJr:
Well, it's all set as of the first, and I can't -
Economic Defense Board.
we simply, Procurement can't buy this stuff for
the English and the Chinese unless we have the
space. The building is ours anyway, and these
-4-
239
fellows are just squatters. All I'm interested
in is getting Public Buildings out of the ProW:
HMJr:
ourement Building. That's my only interest.
Could I ask this - if you could see if you could
possibly get them some other place.
No, no. I'm not going to interest myself, Henry.
Please don't think - I've been all through this
now for months, and my only interest is to operate
under Lend-Lease.
W:
HMJr:
Well, it does throw an awful jam into our plans.
I just wanted you to know that.
Well, it's just a question of whether the buying
of war materials comes first, that's all; and
that's what we're charged with. And it's a
hundred per cent to buy war materials for England
and China. And - I mean, as to what happens to
the people when they get out, I don't know; but
there's a building belonging to the Treasury in
which Public Buildings is occupied and
W:
You just don't feel that there's any other place
where you could get these folks placed.
HMJr:
No. I have nothing to do with that. I asked
for a hundred and seventy thousand additional
square feet in my own building, and they gave
it to me, see? And they're moving Public Buildings
out. Where they go, I don't care, frankly. It
was all settled. They had a big meeting at which
everybody was represented in the Public Buildings
Office - I think on Monday. I'm afraid, Henry,
I wouldn't budge an inch, because I've got this
responsibility of buying and after all, these
fellows are fighting and we've got to give them
the stuff.
W:
Yes, I'11 agree with you on that; but I was just
wondering if there isn't some way to handle the
thing in a way that it will take care of you and
us, too.
HMJr:
Well, I don't know about that; but they had this
-5-
240
meeting which fifteen or twenty people attended I think it was on Monday - and it was decided
there that we could have the balance of space
in our own building.
W:
Now, what does it get down to? It finally gets
down to where this Public Administration's out-
fit is going, is that it?
HMJr:
No. It just gets down - I say I need the balance
of the building, and Public Buildings says, "All
right, you can have it." Now, what maneuvering
they do on the outside, is just none of my concern. I mean, I just haven't interested myself,
because it doesn't - all I was - I presented our
case and they said, "Well, do you need it for
what you're doing? and "you can have it."
W:
HMJr:
Yeah.
It's just as though you had somebody else in the
Department of Agriculture and you had to buy
food for the English and you say, "I need a
hundred and seventy thousand square feet to
buy this food for England. will you please ask
these interlopers to get out of the Department
of Agriculture?"
W:
Sure.
HMJr:
What?
W:
Sure, I'm not disputing that at all.
HMJr:
And they get out. Where they go - that's some-
body else's concern.
W:
Yeah. Now, the interlopers in this case are
whom?
HMJr:
Public Buildings.
W:
Public Buildings. All right, sir.
HMJr:
Sorry.
W:
All right.
6
HMJr:
Okay.
W:
Good-bye.
HMJr:
Good-bye.
-
241
242
November 28, 1941
12:15 p.m.
HMJr:
Hello.
Operator:
Mr. Paul.
HMJr:
Hello.
Randolph
Paul:
Hello, Mr. Morgenthau.
HMJr:
Paul, can you hear me?
P:
Pardon?
HMJr:
Hello.
P:
Yes.
HMJr:
Can you hear me?
P:
Yes, I can hear you.
HMJr:
Morgenthau.
P:
Yeah.
HMJr:
This is the proposal that I'd like to put up
P:
HMJr:
to you which I've been thinking about for a
week. I talked with John Sullivan this morning,
and what I'm saying is entirely agreeable to
him; in fact, he said he suggested it ten days
ago. My thought is that John Sullivan - as far
as the tax bill - will be what the English call
a barrister who presents the bill on the Hill.
Yes.
And I'd like you to be our solicitor and have
full charge in the Treasury of the preparation
of the bill - take full charge of the staff and
everything as far as it goes in preparing the
bill.
P:
I think I see what you mean, Mr. Morgenthau,
and it might be possible to work out an arrange-
ment like that; but there are certain complications about it, and I think it would be
-2-
243
something that I should discuss with you personally and perhaps also with John.
HMJr:
of course. Well, I wanted you to think it over.
I've talked with John, I've given it very careful thought, and I think you would supplement
each other wonderfully. I want you to think
about it over the week-end, you see?
P:
Yes.
HMJr:
Now the point is that if you came down here -
I mean, certainly I would - it would call for
your undivided attention - oh, if we get a tax
bill through by the first of July, we'll be
lucky.
P:
Oh, I should say it would.
HMJr:
See?
P:
Yes.
HMJr:
And I thought you might be thinking about it,
and when you come down Monday, we can have a
talk.
P:
Well, now I can't be down Monday. I'm trying
HMJr:
Well
P:
to finish up with that dental work.
Well, no, Monday I have to give a lecture - I
have to preside at a luncheon at Philadelphia,
and
HMJr:
P:
Well, when would you think
then I have to give a lecture in Trenton
Monday night, and Tuesday morning - I can't get
down until Tuesday afternoon.
HMJr:
That's all right. But the point would be once
if you did get settled here, then a lot of these
meetings that take place in my room wouldn't
have to take place. You'd be free to invite
-3-
244
in anybody that you wanted to help you, see?
It would be your job to build up a staff and
get the tools to work with. In other words,
I'd give you carte blanche.
P:
Well, let me think about that and I'11 talk with
HMJr:
Does it appeal to you at all?
P:
Pardon?
HMJr:
Does it appeal to you at all?
you Tuesday.
P:
Yes, I - well, I feel more or less this way,
that there are problems of responsibility and
I'd like to talk with you about a couple of
points of it. I feel more or less that one is
duty bound to do his job these days.
HMJr:
P:
HMJr:
But I meant leaving out - impersonal - whatever
you want - but I mean as to the broad, sensible
side, as to the division of the authority.
I didn't quite understand that.
Well, I mean as to the position. I mean, you're
to be the complete authority for the preparation
of the bill.
P:
HMJr:
P:
Oh, I see. Well, yeah, I suppose there are
matters of title there, too.
Well, we can fix them.
And I feel more or less this way, Mr. Morgenthau,
that these are not times to - one just has to do
his job. Everybody. I feel quite differently
from the last occasion, where we discussed a
somewhat similar matter before.
HMJr:
Well, I appreciate that and it is; and as we go
after additional money, it's more and more difficult. And without trying to flatter you, you
brought in a spirit which is exactly what I
wanted - it's like a breath of fresh air - so I
hope you'll see your way clear.
-4-
245
P:
Well, I'11 think it over and
HMJr:
And John takes the attitude that this 18 his
P:
Okay.
HMJr:
So he's all right.
P:
Yes.
HMJr:
See?
P:
I see. Well, then
HMJr:
idea.
We'll talk about it. I tell you what I'11 do.
What time will you be in Tuesday?
P:
Well, I'm - I think it won't be until after
lunch.
HMJr:
P:
Well
Of course, I may be able to get down there by
lunch time if the weather is good.
HMJr:
Well, I'11 hold time for you.
P:
In the afternoon.
HMJr:
Yes. I'11 put you down for three o'clock on
Tuesday.
P:
What is your telephone number
HMJr:
Where?
up at Poughkeepsie, if I should want to
P:
ask you any questions over the week-end?
HMJr:
Well - Poughkeepsie LD-20.
P:
LD20?
HMJr:
Poughkeepsie. It's a special number.
P:
LD20.
-5-
246
HMJr:
Poughkeepsie.
P:
All right. I don't think I will, but I might
HMJr:
Well
P:
All right. Thank you very much.
HMJr:
Okay.
want to ask you something.
247
November 28, 1941
2:06 p.m.
John W.
Pehle:
this old matter that we discussed with
Stopford.
HMJr:
With who?
P:
Stopford.
HMJr:
Stopford?
P:
Yeah. For ten million dollars.
HMJr:
Oh, yes.
P:
And the application has now come through.
HMJr:
Yes.
P:
It indicates nothing except that they want the
account put in a free account.
HMJr:
I see.
P:
Now, the only further information we have is
that a man by the name of Myorga came over
here on the Clipper to see about the matter,
and he talked to Stopford.
HMJr:
I see.
P:
And that's all.
HMJr:
Okay.
P:
Right. I'11 put it through. Good-bye.
248
November 28, 1941
MEMORANDUM FOR THE SECRETARY'S DIARY
On Friday, November 28, 1941, Pehle received
through regular channels, an application of the Swiss Bank
Corporation, New York agency (NY-310733), to effect the
transaction referred to in the Memorandum For The Secretary's Diary, dated November 5, 1941. This transaction
was the subject of a letter addressed to Secretary Morgenthau
by Lord Halifax on November 1, 1941.
Pehle called Secretary Morgenthau at 2:10 P. M.
on November 28 and advised him of the application and it
was agreed that the application should be approved. This
action was promptly taken.
Jose
249
November 5, 1941
MEMORANDUM FOR THE SECRETARY'S DIARY
On Monday, November 3, 1941, Pehle received, by
messenger from the British Embassy, a letter addressed to
Secretary Morgenthau by Lord Halifax, Ambassador of Great
Britain to the United States. A copy of this letter is
attached hereto. Pehle discussed the matter with Secretary Morgenthau on Tuesday, November 4, at 2:45 P. M. At
9 P. M. the same day Stopford, of the British Embassy, and
Pehle came to the Secretary's home and discussed the matter
with him.
Stopford stated that at the time that Italy en-
tered the war Sir Samuel Hoare reported that certain Spanish
generals might be influenced in their actions through mone-
tary considerations. Accordingly, the British paid certain
sums to such persons and an additional amount was placed in
the Swiss Bank Corporation in New York in the account of
the Societe de Banque Suisse, Geneva. These additional
funds are subject to certain neutral controls and apparently
payments are made therefrom at stated intervals provided the
Spanish generals live up to their agreement. Stopford said
that it was felt that if the funds were frozen here the persons concerned might feel that through our freezing the
British were conniving to withhold the funds.
Secretary Morgenthau raised the question as to
what position we would be in if Spain entered the war and
the British asked us to re-freeze the funds. It was decided
that such question would have to be decided when and if it
arose.
Secretary Morgenthau indicated to Stopford that
the Treasury would issue the requisite license.
230
MOST SECRET
BRITISH EMBASSY,
WASHINGTON, D.C.
1st November, 1941.
Dear Mr. Secretary:
I have been asked by the
Secretary of State for Foreign Affairs personally
to ask for your assistance in the following matter.
Among the frozen funds held by the Swiss Bank
Corporation in New York in the name of the Societe
de Banque Suisse, Geneva, is an amount of
ten million dollars which are the proceeds of a
payment made from British sources to certain
persons for political services rendered. The
Secretary of State anticipates that a serious
situation will arise for us unless means can be
found to unfreeze these funds. He asks whether
it would be possible for you to give directions,
if an application is duly made by the Swiss Bank
Corporation, for these funds to be transferred to
a new free account with the Swiss Bank Corporation.
It is suggested that the reason to be given by the
Swiss Bank Corporation in this application should
be the need to fulfil an outstanding obligation.
The Secretary of State adds that
the Prime Minister wished you to know that this
request is also a personal one from him. I will
only add that, if you feel that you would like to
have any further information in regard to this
transaction,
I shall be very glad to come and see
you
at your convenience.
Believe me, dear Mr. Secretary,
Very sincerely yours,
Halifex.
The Honourable Henry Morgenthau, Jr.,
United States Treasury,
Washington, D.C.
LASS OF SERVICE
his is a full-rate
gram or Cableinless its de
WESTERN
racter in-
/ a suitable
above or
the address
pre-
A N. WILLIAMS
PRESIDENT
UNION
251
(14)
DL-Day Letter
NT-Oweight Telegram
LC-Delearnd Cable
J. c. WILLEVER
NEWCOMB CARLTON
CHAIRMAN OF THE BOARD
SYMBOLS
FIRST
Ship Radiogram
STANDARD NOV
shows in the date line on telegrams and day letters STANDARD TIME point
16
NAB149 62 GOVT=SN WASHINGTON DC 28 444P
HON HENRY MORGENTHAU JR, SECRETARY OF THE TREASURY=
PHONE BEACON 211 FISHKILL NY=
REFERENCE IS MADE TO SPACE MATTER DISCUSSED THIS AFTERNOON.
IT IS NOT DESIRED TO JEOPARDIZE LEND LEASE ACTIVITIES IN
ANY WAY BUT WE MUST ALSO PROTECT OTHER IMPORTANT DEFENSE
ACTIVITIES. THEREFORE, I REQUEST THAT YOU DEFER THE MOVE
OF PUBLIC BUILDINGS ADMINISTRATION ABOUT A MONTH AS THAT
WILL PERMIT THEM TO OBTAIN SPACE IN EMERGENCY BUILDING
UNDER CONSTRUCTION. WOULD APPRECIATE EARLY REPLY=
H A WALLACE.
x
THE COMPANY WILL APPRECIATE SUGGESTIONS FROM ITS PATRONS CONCERNING ITS SERVICE
252
November 28, 1941
Honorable John E. Mack
Poughkeepsie, New York
PLEASE TELEPHONE ME AT BEACON TWO ONE ONE BETWEEN EIGHT THIRTY
AND NINE TONIGHT
HENRY MORGENTHAU, JR.
EHF:mp 11/28/41
252
November 28, 1941
Honorable John E. Mack
Poughkeepsie, New York
PLEASE TELEPHONE ME AT BEACON TWO ONE ONE BETWEEN EIGHT THIRTY
AND NINE TONIGHT
HENRY MORGENTHAU, JR.
EHF:mp 11/28/41
253
TREASURY DEPARTMENT
WASHINGTON
November 28, 1941.
MEMORANDUM ON MEETING OF THE JOINT
COMMITTEE ON REDUCTION OF NON-DEFENSE EXPENDITURES
A meeting was called for 10 A. M., Friday, November 28, in
the House Ways and Means Committee Room in the Capitol. There were
present
Senators:
Byrd
George
Glass
McKellar
LaFollette
Congressment
Doughton
Treadway
Taber
Cullen
Woodrum
Cannon
Treasury:
Under Secretary Bell
Mr. Heffelfinger
Budget:
Budget Director Smith
Mr. Lawton
Mr. Beecher
Mr. Beecher's Assistant
General Accounting Office:
Mr. Tyler
Mr. Tyler's Assistant.
Senator Byrd opened the meeting and explained that Mr. Smith,
the Budget Director, had present certain of his assistants who were
familiar with the estimates of appropriations of the 000 and NYA.
Senator Byrd stated that no record had been made of previous meetings
and he suggested that a transcript be made of the information furnished
by the Budget representatives. The committee agreed with this suggestion.
Mr. Beecher of the Bureau of the Budget explained that the
current appropriation for the CCC was $246,000,000 and that when Congress
had enacted the appropriation it placed a limitation on the amount which
could be spent per enrollee, which had the effect of providing for a
gross enrollment of 230,000 in the Corps. He said that there has been
a downward trend in the number enrolled in the Corps and because of this
downward trend the effect of the Congressional limitation was to restrict
CCC expenditures by some $46,000,000 for the current fiscal year. The
Budget, however, after taking into account the downward trend in the
number enrolled, had placed in reserve $95,000,000 of the funds
available to the CCC. On this basis the amount available for expenditure
in the current fiscal year would be $150,000,000 instead of $246,000,000
254
2-
appropriated. He said the present enrollment was 148,000 as against
an estimated enrollment of 232,000 at the time the appropriation
estimate was originally submitted to the Congress in January, 1941.
In reply to a question Mr. Beecher stated that the officials
of the Corps had attempted to overcome in some respect the downward
trend of enrollments by permitting continuous enrollments instead of
permitting enrollment only at one time each quarter, and that it was
not necessary to be a member of a relief family to enroll in the Corps
under present law.
Congreseman Doughton asked who determines the need of
employment of the persons applying for enrollment in the Corps and Mr.
Beecher explained that the local welfare agencies certify enrollees to
the Corps and determine the need of such enrollees for employment.
In reply to a question by Congreseman Treadway Mr. Beecher
stated that at December 1 there will be about 900 000 camps as against
some 1200 odd camps contemplated in the estimates 03 the appropriation.
In reply to a question by Congressman Taber as to whether
there is any downward trend in overhead, Mr. Beecher explained that
there was not. Congressman Cannon said he understood the smaller
camps were being eliminated. Mr. Beecher explained that while what
he considered as overhead was not showing any substantial reductions,
nevertheless there were considerable reductions in expenditures for
operation and maintenance of the Corps and pointed out that with a
lesser enrollment accumulated stocks of clothing and equipment from
discontinued camps were being used.
Mr. Beecher presented statistics which showed that 19.3%
of enrollees in the Corps come from families receiving Federal relief;
8.7% from families receiving local relief; 14.8% from families eligible
for relief; 49% from families which are considered as being below an
adequate living standard, and 7.9% who had no dependents. The present
enrollment period is for six months although reanrollments may lengthen
the period spent in the Corps to two years. In answer to a question
Mr. Beecher explained that enrollees were given training in work
experience, such as working on soil conservation projects under the
Department of Agriculture, in the forests constructing roads and
highways and fighting fires under the Forest Service, doing work in
the National and State forests, as well as participating in the
educational program sponsored by the 000.
In reply to Congressman Taber's inquiry as to what is the
basis of the Budget reserve from the current year's appropriation, Mr.
Beecher explained that the reserve was predicated upon the Bureau's
255
observation a short time ago that the enrollment then was 151,000 and
a continued downward trend in the number enrolled was anticipated.
Mr. Beecher said that he did not think there would be any further
increases in the reserves anticipated for this fiscal year.
In reply to general inquiries Mr. Beecher stated that information available to the Bureau of the Budget indicates that the bulk of
enrollees in the Corps are boys below 21 years of age and that the
Corps will accept boys ranging in age from 17 to 25 years. Fifty
per cent of enrolees are 17 years of age; 24% 18 years of age, and
more than 90% are below 21 years. At the present time about 20% of
enrollees in the camps are negroes. Mr. Beecher explained in reply
to a question of Congressman Doughton that the selecting agents,
that is the local welfare agencies, before certifying enrollees to
the Corps, clear with the local school authorities as to whether such
enrolleeshave complied with all local school requirements.
Senator Byrd asked that the 000 be requested to furnish
information showing the actual time worked by enrollees. Mr. Beecher
explained that the enrollees worked on the basis of a forty-hour week
but there seemed to be considerable impression prevailing in the
committee that as a matter of fact the enrollees did not work the
full time they were scheduled to work. Senator Byrd also asked that
there be furnished information showing the cost of operation of the
000 Press Relation Section. Mr. Beecher stated that Mr. McNutt,
the Federal Security Administrator, within the last 60 days had
issued an order to the 000 and NYA directing them to discontinue any
activities which might be said to represent advertising or propaganda
for the encouragement of enrollments in 000 or NYA.
In reply to a question by Congressman Treadway Mr. Beecher
stated that an enrollee receives wages of $30 per month, of which
$15 must be allotted to his family (originally $25 was required to be
allotted to family): that $7 is deposited in the account to the credit
of the enrollee and paid to him when he leaves the Corps, and that the
balance of $8 is the net cash payment available to the enrollee per
month.
In reply to a question by Congressman Cannon as to what
amount could be cut out of the appropriation for the 000 and still
enable the Corps to carry out legislation enacted by the Congress,
Mr. Beecher stated that for 1942, the current fiscal year, the
Corps would spend $150,000,000. Mr. Beecher stated that the
$95,000,000 reserved by the Budget from 000 appropriations were
applied against the following categories of expenditures:
256
Pay, subsistence, medical service, etc.
Camp maintenance
Salaries and expenses for care of enrollees
Project salaries
Project expenses
Salaries, field offices
Expentes of field offices
Departmental salaries, Washington
Departmental expenses, Washington
Miscellaneous
TOTAL
$60,054,000
5.714,000
4,579,000
6,368,000
13,031,000
2,519,000
1,235,000
413,000
151,000
936,000
$95,000,000
Congressman Doughton asked whether there is any distinction
in the requirements as between the NYA and 000 with respect to the
basis of eligibility and Mr. Beecher explained that so far as he knew
there was no distinction, it usually being a matter of choice with the
youth as to whether he would enroll in the 000 or take advantage of
opportunities offered by the NTA. In connection with the 000 Mr.
Beecher referred to statistics which showed that 31% of enrollees came
from urban areas including cities with population of 2,500 or more,
and 69% came from rural areas.
Congressman Treadway and Senator McKellar asked that there be
furnished information showing the member of employees in the 000 on
salaries; the number and cost of employees on the basis of the amount
of the appropriation, $246,000,000, and the number and cost on the
basis of the estimated expenditures of $150,000,000. The question was
asked that if the law is amended to limit enrollees to persons on
relief, how much could the present estimated expenditures be reduced.
There was no further discussion of the CCC and the committee
continued its discussion of the NYA.
Mr. Beecher explained that appropriations for the current
fiscal year amounted to $151,767,000, representing $91,800,000
appropriated for the regular program and $60,000,000 for defense
activities. Mr. Beecher stated that the Budget had impounded, or
placed in reserve, $28,400,000, of which $7,000,000 applied against
the $60,000,000 defense appropriation, and $21,400,000 was against
the regular program. In explaining the basis for the Budget Bureau's
impoundment Mr. Beecher said the Budget Bureau had asked the NYA not
to make any novadditions to its student aid enrollment between the
time when the reserve was set and the beginning of the second school
semesters also, when the second semester starts that NYA réduce its
college program by 25%
--
257
In reply to an inquiry by Congressman Cannon as to what the
prospects are for next year, inasmuch as the Budget Bureau must now
be considering the 1943 program, Mr. Beecher stated that he was not
in any position to make an observation for 1943 at this time.
In reply to an inquiry by Senator McKellar as to the number
of persons on the NYA rolls, Mr. Beecher stated that information
furnished as of October 18 showed the following enrollment:
Out-of-school program
Student-aid program
Defense training program
TOTAL
168,000
370,000
78,000
616,000
Senator McKellar asked that Mr. Beecher furnish a
description of the education received by the students in the out-ofschool program. In reply Mr. Beecher stated that the defense
training program, employing some 78,000 students, consisted of work
in shops approved by the OPM. These shops are set up by the NYA and
are not connected with any industrial concerns. The other out-of-school
program is carried on in shops for wood work, radio work, clerical work,
power sewing for women, etc., and the program goes beyond shop work and
certain construction work is undertaken on a small scale in rural areas,
such as making small additions to schools, recreation centers, etc.
Wages paid to youths in the defense shop work range from $22 to $25 per
month and in the other shops from $16 to $24 per month. Training is
given for about three months in defense shops and about six months in
regular training shops. Mr. Beecher stated that there were about
15,000 students in resident centers under the regular program and
19,000 in resident centers under the defense program.
Senator McKellar asked that he be furnished a list of the
schools which get money from the NYA. There was a general discussion
of the student-aid program and some of the committee members appeared
to be under the impression that NYA made commitments direct to schools
and colleges. Mr. Beecher explained that the NYA does not make any
payments direct to schools or other institutions; that under the law
a quota is set as to the amount which may be expended in each State
and the State school authorities in effect allot the amount available
to each to the various schools and other institutions desiring to
participate in the program. The schools and other institutions then
designate those youths in their student bodies who most need assistance
from the Government to enable them to continue their education and the
Government makes payments direct to the students. The selections by
the schools are made under general regulations and procedure
258
- 6-
established by the NYA. In reply to a question by Congressman Treadway
Mr. Beecher explained that the students work for the schools in order
to earn their pay. They do minor jobs such as tending to telephone
switchboards, clerical work in schools, library work, etc. Mr.
Beecher also pointed out that the average payment to students in
high schools is $5.00 per month and the average payment to students
in colleges is $12.50 per month.
Senator Byrd pointed out that while the Government may not
make payments direct to schools, colleges, etc., the schools do
benefit by the Government payments from the standpoint of the tuition
paid by the students and to the extent of such tuition paid from
assistance by the Government the schools are receiving a direct
benefit from this program.
Congressman Taber inquired as to the cost of operating
resident centers and was informed by Mr. Beecher that the estimated
cost of this activity was $15,600,000, and Mr. Beecher explained
that students in the resident centers received wages of $30 per
month, from which was deducted the cost of their subsistence,
leaving about $8 to $10 net cash available to students in resident
centers.
Senator Byrd explained the plan of the committee was to get
facts from the Bureau of the Budget on the various large programs,
such as the 000 and NYA, and that the next items to be taken up would
be WPA and the Farm program. He stated that after factual data was
obtained from the Bureau of the Budget the committee might decide to
call representatives of the agencies concerned to appear before it
to comment upon or justify their activities. Senator Byrd stated
that he hoped the committee could meet more or less continuously
and if possible to devote the entire day to their meeting, It was
decided that the next meeting would be held on Monday, December 1st,
at 10 A.M., and that the WPA program would be considered. Thereupon
the meeting adjourned at 12:05 P.M.
lost
259
MIGH
BARBOUR, N A.
M
COLD
MAINE
MILLER ANK
a ANDREWS FLA.
United States Senate
W. LUGAR -
COMMITTEE ON RULES
ALA.
M. A CLERK
17/2
November 28, 1941 8.
in
Honorable Henry Morgenthau, Jr.,
The Secretary of the Treasury.
My dear Mr. Secretary:
The next meeting of the Committee to Investi-
gate Non-essential Federal Expenditures will be held
Monday, December 1, at 10:00 a.m., in the House Ways
and Means Committee Room in the Capitol. A full
attendance is desired to hear additional information
to be given by Budget Examiners.
With best wishes, I am
Faithfully yours,
Hanny 7 Birth
Before
Prepared by: Messra. Conrad,
Barnett, Sandelin, Foy, Lindow.
260
Tickton, Murphy and Haas.
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE November 29, 1941.
Secretary Morgenthau
TO
FROM
Mr. Haas
Subject:
December Financing
SUMMARY AND CONCLUSIONS
Two major decisions with respect to the December
financing have already been made. You have decided that
the financing will be new money only and will amount to
$1.5 billions. Three major decisions remain to be made,
however. These are: (1) Should the financing be in one
issue or two? (2) Should a start be made toward obtaining longer call periods? and (3) Should the issue (or
the long issue, if there are two) shave the 2-1/2 percent
coupon which has been used on the last three long taxable
issues?
The first three sections of this memorandum discuss
these three problems. It is concluded: (1) that there
is a small margin in favor of the use of a single issue;
(2) that a start should be made toward obtaining longer
call periods; and (3) that the 2-1/2 percent coupon on
the long issue should not be shaved. The final section
of the memorandum gives the estimated yield bases and
probable premiums of a number of possible issues in order
to indicate approximately what can be done in the present
market.
261
Secretary Morgenthau - 2
I. Should the Financing Be One Issue or Two?
Your decision in putting the entire October financing
in one issue has been amply justified by the outcome. The
issue has gone exceedingly well and has had a tonic effect
on the market.
The October issue involved driving an entirely new
guide post in new long territory. This has now been done,
and the territory 80 opened up has proved to be good. This
creates a presumption in favor of again using a single 18sue this time -- a presumption which san only be overthrown
by a fairly strong showing of facts to the contrary. This
presumption is increased by the fact that there will be a
refunding issue of slightly over $1 billion in January,
all of which will probably be placed in the intermediate
maturity range. Against this background, it is valuable to
review what has happened in the market since the beginning
of October.
The following table shows the allotment of the 2-1/2's
of 1967-72 by classes of investors and their estimated
ownership on October 31:
262
Secretary Morgenthau - 3
Estimates of Shifts in the Ownership of 2-1/2 Percent
Treasury Bonds of 1967-72 Between Their Original
Allotment and October 31, 1941
(In millions of dollars)
Class of investor
Original October Net
allotment,
change
31
I. Banks and insurance companies
a. Commercial banks
(1) In New York City
(2) All other
All commercial banks
b. Mutual savings banks
C. Insurance companies
Total
115
296
56
- 59
447
+151
411
503
+ 92
90
+122
266
212
307
767
1,022
+255
+ 41
II. Other private investors
a. Dealers
b. Other financial corporations
O. Other corporations
d. Trust accounts
6. Individuals
f. Other private investors
g. Unclassified
Total
III. U. S. Government agencies
and trust funds, and
Federal Reserve Banks
IV. Total amount outstanding
1
Details not available.
70
1
50
142
53
204
99
57
675
421
148
148
1,590
1,591
-254
-
+1
263
Secretary Morgenthau - 4
In order to appraise the actions of these classes of
investors with respect to the 2-1/2's of 1967-72, it is necessary to know also how they changed their holdings of other
marketable United States securities during the month. These
figures are as follows:
Estimated Changes in Holdings of 2-1/2's of 1967-72 and of
All Other Marketable Issues of United States Securities
for the Month of October 1941
(In millions of dollars)
Class of Investor
2-1/2's of
1967-72
All Other
Marketable
Issues
All Marketable Issues
Commercial banks
+ 56
- 11
45
+447
+108
+555
+503
+ 97
+600
Mutual savings banks
+212
- 93
+119
Insurance companies
+307
+111*
+418
+421
-174
+247
(1)
(2)
In New York City
All other
All commercial
banks
All other private
investors
Total privately-held
marketable supply +1,443
- 59
+1,384
Net change includes $161 millions of Treasury bills, $150
millions of which were purchased by Equitable Life of New
York. Marketable issues other than bills decreased by $50
millions.
264
Secretary Morgenthau - 5
The above data are valuable on the present occasion prin-
cipally because they give some indication of the ability of
various classes of investors to absorb a long issue at this
time as compared with the beginning of October. The presumptive change since the beginning of October in the investment position of each of the classes of investors for which
some data are available may be reviewed as follows:
(1) Commercial Banks. These institutions
held on October 31 by far the largest blook of
the new issue -- $503 millions, or about 35 percent of the total privately-held supply. About
90 percent of this was held by banks outside of
New York City.
Banks outside of New York City are still in
a comfortable reserve position. Their ability
to absorb a new issue at this time, therefore,
is limited only by their willingness to do so.
They would probably absorb a substantially larger
aggregate amount in two issues than in one, however, because two issues would not only help
satisfy their intrinsic preference for a shorter
maturity, but would also permit them to obtain,
under existing rules, almost twice as much on
original allotment.
Commercial banks in New York City are un-
likely to purchase and hold any considerable
amount of a new long issue. They might hold
somewhat more of an intermediate issue, but not
much more. The reserve position of New York City
banks is still not easy, although it has improved
somewhat in the last several weeks. As shown in
Chart I, New York City banks have slightly reduced
their total holdings of United States securities
since the beginning of June, during which period
other banks have continued to make substantial ad-
ditions to their portfolios.
(2) Mutual Savings Banks. On June 30, the
last date for which figures are available, mutual
savings banks held $968 millions of cash, or about
$329 millions more than the 6 percent of their
265
Secretary Morgenthau - 6
deposits which, we are told, they consider as "required reserves. Since June 30, they have acquired,
on net balance, $192 millions of United States se-
curities -- $119 millions of them in October. As it
is unlikely that the deposits of mutual savings banks
have increased substantially since June 30 (they have
probably decreased slightly), these banks have rela-
tively little capacity to add to their total holdings
of United States securities at this time.
But mutual savings banks still hold a substantial
amount of tax-exempt securities which they could swap
in the market for a new issue, and they have in the
past shown themselves very willing to do this. The
mutuals may probably be counted upon, therefore, to
take a substantial block of the new issue, but mostly
on a swap basis. The outstanding securities 80
swapped would go principally to commercial banks.
(3) Insurance Companies. At the time of the
last issue, insurance company cash was near its alltime high. During October, the cash holdings of the
36 large life insurance companies which supply us
data dropped by $324 millions to $815 millions* -the lowest since the end of 1939 (Chart II). The
current accretion of new investible funds by all
insurance companies 18 only about $150 millions a
month, most of which has been spent in the recent
past in acquiring assets other than United States
securities. Insurance companies have, in the past,
been quite reluctant to dispose of substantial blocks
of old securities in order to acquire new. It is
clear, therefore, that insurance companies are in a
much weaker position to acquire a large amount of a
new long security now than in October.
(4) "All Other Private Investors. Private
investors other than banks and insurance companies
acquired, on net balance, $247 millions of marketable issues of United States securities during
October. These investors had acquired only
*
In addition, the $150 millions of bills purchased by
Equitable Life of New York during the month may probably
be considered as available for reinvestment in a long
issue.
266
Secretary Morgenthau - 7
$100 millions of marketable issues, on net balance,
during the fiscal year 1941. During the three preceding fiscal years they had decreased their holdings of marketable issues of United States seouri-
ties by a total of $2 billions. Their net
absorption in October was thus extraordinarily high.
Whether the addition to their portfolio during
October will prove permanent remains to be seen.
The potential resources of this class of investors -including all individuals and trusts -- are very
large. The extent to which these potentialities
can be realized in practice is one of the greatest
unknowns surrounding the financing program.
It is a matter of judgment whether the statistical considerations just set forth outweigh the initial presumption
in favor of a single long issue. They undoubtedly do establish that two issues would be more conservative. The
decision either way must be close. It seems to us, however
-- particularly considering the large January refunding
which will probably fall in the intermediate bracket -- that
there is some edge in favor of offering a single issue at
the present time. Whatever the decision in this matter,
however, it seems that it should be announced as soon as
possible, in order that the market may be adjusted to it before the terms of the issue are finally determined.
II. Should a Start Be Made Toward Obtaining Longer Call Periods?
The next problem is, should a start be made toward obtaining longer call periods. We recommend that it should.
It is certain that the burden of interest on the public
debt in the post-war period will be heavy. There is an important school of thought which believes that interest rates
267
Secretary Morgenthau - 8
during this period will be lower than they are today. This
school of thought may, or may not, be right. If it should
prove to be right, however, it would be a matter of national
good fortune, as it would permit an important reduction in
an interest burden in any event heavy.
The extent to which the Treasury will be able to avail
itself of a reduction in interest rates occurring in the postwar period will depend, in large part, upon the optional call
dates which it inserts in its bonds at the present time. It
seems that everything possible should be done to make such a
reduction in interest costs possible if the opportunity should
occur.
The most distant call date of any issue now outstanding
is that of the new 2-1/2's of 1967-72. This call is 26 years
distant. This seems about as long as it is prudent to commit
the Government of the United States to the payment of any
given interest rate. The Government ought to have the oppertunity at least once each business generation to take advan-
tage of a trend of interest rates in its favor if such should
occur.
It is suggested, therefore, that the call date on future
issues should not be made more distant than 1967. The final
maturity of future issues might, of course, be made as long
as the occasion prescribes.
A transition to longer call periods, if it is to be made,
should be gradual. It is suggested, therefore, that the new
financing, if in a single issue, should have a 10-year call
period. If two issues are used, it is suggested that the
longer have a 10-year call period and the shorter a 5-year
call period.
It is interesting to note in this connection that of the
four Liberty Loan issues floated in the last war, two had 15year call periods and one a 5-year call period. The remaining
issue was a fixed maturity. The long optional call periods
saved the Government a substantial amount of money during the
post-war period, and more would have been saved had such periods
been attached to all issues.
The refunding in 1932 of the 12 billions British War Loan
from 5 percent to 3-1/2 percent, made possible by the insertion
268
Secretary Morgenthau - 9
of a relatively early call date in the original issue, * was
a substantial contributing factor to the British recovery from
the depression.
III. Should the 2-1/2 Percent Coupon Be Shaved?
The next problem is whether the new issue (or the long
issue, if there are two) should shave the 2-1/2 percent coupon
which has been used on the last three long taxable issues.
The arguments in favor of shaving the coupon are (1) that
it would save the Government money, and (2) that it would help
lead the market toward yet lower rates.
The above arguments are perfectly sound, provided that
it is believed feasible to achieve and maintain a lower longterm rate. It is sometimes argued that, for reasons lying
within the realm of morals or ethics, the Government should
not out the rate below 2-1/2 percent. In our opinion, this
reasoning is without merit.
It is very doubtful, however, whether it will be feasible
to maintain a long rate lowe r than 2-1/2 percent for the duration of the war. The psychological set of the market at the
present time is too strong against it. If this is so, it would
seem better to keep the 2-1/2 percent rate than to out it now
and retreat later.
It is suggested, therefore, that the 2-1/2 percent rate be
maintained on a long issue at this time, and that the Government
take advantage of the present situation merely by lengthening
the call period as previously recommended.
IV. Possible Issues
An indication of what might be obtained in terms of interest
rates and maturities at the present time is given by the specific
issues listed below. The pricing of these issues is preliminary.
# It was first callable in 1929.
269
Secretary Morgenthau - 10
Estimated
Yield
Basis*
Probable
Price
(Percent)
1.83
101-17/32
2.13
101-16/32
2-3/8 percent bond
due June 15, 1960-65
(18 years, 6 months 23 years, 6 months)
2.26
101-23/32
2-1/2 percent bond
2.38
102- 6/32
percent bond
due December 15, 1951-56
2
(10 years - 15 years)
2-1/4 percent bond
due June 15, 1956-61
(14 years, 6 months 19 years, 6 months)
due December 15, 1965-75
(24 years - 34 years)
#
Based on closing bid prices, November 28, 1941.
Attachments
Char
LOANS AND INVESTMENTS OF WEEKLY REPORTING MEMBER BANKS
IN
NEW YORK CITY
DOLLARS
DOLLARS
BILLIONS
BILLIONS
JUNE
13
13
12
12
TOTAL LOANS AND
INVESTMENTS
11
11
10
10
9
9
7
7
U.S. SECURITIES
6
6
LOANS AND OTHER
INVESTMENTS
5
5
4
4
3
3
.
$
1941
1940
N
M
M
J
939
1942
.
$
1
INCLUDING GUARANTEED SECURITIES
Office of the Secretary of the Treasury
Division of Research and Statistics
F 218 -1
LIFE I INSURANCE COMPANY CASH HOLDINGS
.
1933
1934
1935
1936
1937
1938
1939
1940
1941
1942
1943
DOLLARS
MILLIONS
DOLLARS
MILLIONS
1200
1200
1100
1100
1000
1000
900
900
800
800
yrs
700
700
600
600
500
500
400
400
300
300
200
200
1933
1934
1935
1936
1937
1938
1939
1940
1941
1942
1943
*36 LEGAL RESERVE COMPANIES HAVING 82 PERCENT OF TOTAL ADMITTED ASSETS OF ALL
UNITED STATES LEGAL RESERVE LIFE INSURANCE COMPANIES.
Office of the Secretary of the Treasury
- of I - States
B 253
272
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE November 28, 1941
TO
Secretary Morgenthau
FROM
Dave H. Morris, Jr.
Subject: Summary of Treasury letter re proposed "Farm Credit Act of 1941"
(S. 1797 and H.R. 5336).
The proposed Treasury letter was first sent to the Budget Bureau on
November 6th. Recently, representatives of the Farm Credit Administration
requested changes in the letter and most, though not all, of their requests
were acceded to. The following summary is that of the final letter
Five major changes in the Federal Land Bank system are provided in the bill.
U.S follows:
1. Conversion of land banks and national farm loan associations into
membership cooperatives.
2. Sharing of losses and earnings between the land banks and the associations.
3. Setting of interest rates on farm loans.
4. Federal guarantee of the presently outstanding Federal farm loan
bonds and, in effect, an indirect guarantee of future borrowing.
5. Readjustment of excessive debt of farmers. (In effect through
the Government absorbing the losses.)
Additional changes are noted as follows:
1. Authorization of land bank borrowing from Federal Reserve Banks.
2. Shifting of Puerto Rican business from the Baltimore Land Bank
to the Federal Farm Mortgage Corporation.
3. Authorization to desist from enforcing deficiency judgments when
such would prevent farmers from making a living.
4. Empowering the land bank system to buy land, make various adjustments on indebtedness, etc., where necessary to help the farmer
operate a profitable unit.
It is noted that the general provisions of this bill are of primary
interest to the Department of Agriculture, but the Treasury Department is
concerned with the fiscal aspects of certain provisions and comments upon
them as follows:
273
2-
1.
The provision for Federal land bank borrowing through the Federal
Farm Mortgage Corporation under certain circumstances is, in effect,
an indirect guarantee of Federal farm loan bonds. The Treasury
Department favors a guarantee of future issues. In this connec-
tion, they feel that the bill should contain a provision that
the issuance of all securities, whether or not with a Federal
guarantee, should be made subject to approval by the Secretary
of the Treasury.
2. Attention is called to the possibility that this bill may make
financing through the system sufficiently attractive so that a
large proportion of the outstanding farm indebtedness now held by
other lenders may be transferred to the land banks over a period
of years. A limit will be placed to such a transfer by the eli-
gibility requirements of the system. While no estimates are available as to how much of the outstanding farm debt is eligible and
how mach is ineligible, it is pointed out that, as of December 31,
1940, outstanding farm debt was divided as follows:
Held within Farm Credit system
Held by others
Total
$2,600,000,000
4,200,000,000
$6,800,000,000
3. The provisions regarding interest rates are very complicated.
Rates on loans now outstanding and on loans made prior to July 1,
1946, are to be 3 percent until July 1, 1946. After July 1.
1946, rates are to be fixed at the cost of money to the banks plus
1g percent, but not above or below specified limits. These limits
vary, principally with the time when the loan was made. The ob-
vious intent of the bill is to have a 3 percent rate after July 1,
1946, also. To accomplish this it will be necessary for the system
to borrow on a 2-percent basis by July 1, 1946. It is pointed out
that the attainment of this objective may not be possible and,
therefore. it is suggested that, as a precaution, a provision be
inserted by which the maturity of new issues and loans would be
coordinated.
4. The provision for Federal Reserve short-term loans to land banks
would, in the end, permit multiple expansion of member bank deposits. This seems unwise under present conditions and the
Treasury Department favors the elimination of this provision from
the bill. It is suggested that the views of the Board of Governors
of the Federal Reserve System with respect to this provision be
secured, if this has not already been done.
Drong
THE LIBRARIAN OF CONGRESS
274
WASHINGTON, D.C.
November 29, 1941
Dear Henry:
What a charming note of yours
about the broadcast of "Freedom's Land".
I am delighted that you liked it and
grateful to you for putting it on.
Faithfully yours,
and
Archibald MacLeish
Mr. Henry Morgenthau, Jr.
The Secretary of the Treasury
Washington, D. C.
275
November 28, 1941
TO:
HAROLD N. GRAVES
SUBJECT: PROGRESS REPORT FROM DEFENSE SAVINGS STAFF
SALE OF BONDS
Actual cash receipts from the sale of E, F and
G Bonds for the first twenty working days of November
were $203,589,000, which is an increase of 1.1 per cent
over the same period in October. Sales for the first
twenty working days in October were $201,388,000.
Sales during the corresponding period in September were
$182,658,000.
PRESS
Three of the four Washington newspapers are now
publishing the "Minute Man Number of Shopping Days to
Christmas" feature.
Roger W. Babson's Column "Facts About Defense Bonds",
appeared in the Washington Post on Monday, November 24,
and was syndicated to 274 other daily newspapers. (See
column clipping attached.) (No. 1).
276
-2-
PRESS (continued)
Photographs of all CIO vice-presidents shown buy-
ing bonds, with captions explaining action taken by
CIO Convention on Pay Roll Allotment Plans, were sent
to union publications. A photograph of Philip Murray,
CIO president, was sent to the labor press in mat form,
with caption citing CIO endorsement of the Defense
Savings Program. (Copies of cartoons serviced to labor
press are attached.) (Nos. 2 and g). (Copy of cartoon
captioned "Speaking of Bonds" from Sheboygan Press is
attached.) (No. 4).
The Chicago Tribune requested information on total
administrative costs of the Defense Savings Staff. The
following information was supplied to John Fisher of the
Chicago Tribune Washington staff on Thursday, November 27:
"Total Expenditures and obligations, in connection
with the promotion and sale of Defense Savings
Bonds and Stamps, from May 1 through October 31,
1941 -- $1,626,564. Total Sales -- $1,775,124,000.
The percentage of expenses to the total sales is
approximately 9/100 of 1 per cent."
277
-3-
NEWSPAPER CARRIER PLAN
Five hundred and fifty-six newspapers have notified
the Defense Savings Staff that they are adopting the
plan inaugurated by the Philadelphia Bulletin to have
newsboys sell Defense Savings Stamps. Among the news-
papers already enrolled are the Chicago Tribune, The
Chicago Times, Chicago News, all Washington, D. C. news-
papers, the Los Angeles Times, San Francisco Chronicle,
San Francisco News, San Diego Tribune, New Haven (Conn.)
Register, New Haven Journal Courier, Atlanta (Ga.) Journal,
Louisville (Ky.) Courier, New Orleans Times-Picayune, New
Orleans Item, Bangor (Me.) News, Baltimore Sun, New York
Journal of Commerce, Brooklyn Eagle, Bronx Home News,
Cincinnati Enquirer, Pittsburgh Press, Pittsburgh SunTelegraph, Providence Journal-Bulletin, Kansas City Star,
Dallas (Texas) News, Dallas Journal, and Dallas Times-Herald.
(A complete list of the newspapers cooperating in the
Defense Stamp Carrier plan is attached.) (No. 5). Replies
are still being received at the rate of about fifty a day.
A full page advertisement from today's (Friday,
November 28) edition of the New York Times, "They're making
Liberty Bells out of Door Bells", explaining the birth of
the Newspaper Carrier Defense Stamp Plan, is also attached.
(No. 6).
278
-4RADIO
A series of fifteen-minute transcriptions, featuring
the nation's leading talent in outstanding bits from the
"Treasury Hour" programs and leading network shows, has
been prepared for release to all radio stations. The
recordings are miniature patterns of the "Treasury Hour"
programs, both in entertainment and in commercials. The
talent was "dubbed" from the original transcriptions.
The first four programs follow:
1. "The Man From Cemetery Ridge" - A story of
Abraham Lincoln writing the Gettysburg Address,
starring Henry Fonda.
2. Fanny Brice as "Baby Snooks", buying Defense
Savings Stamps. Also, Igor Gorin describing
how he got his American citizenship papers,
and singing the impressive "I Pledge Allegiance
to the Flag".
3. Walter Pidgeon in the Ben Hecht-Charles
MacArthur Play: "What Is America?". Barry
Wood singing "One For All, All For One";
"Back the Red, White and Blue with Gold"; and
the new song, "Abe Lincoln Had Just One Country".
279
-5RADIO (Continued)
4. Fay Wray and John Beale in the highly
patriotic drama, "The Last Boat". Barry
Wood singing "I'm A Military Man Now", the
new tune dedicated to General Pershing.
Bing Crosby and Donald Crisp devoted six minutes
of dialogue to the promotion of Defense Bonds and Stamps
on the "Kraft Music Hall Program", Thursday, November 27,
ending with Crosby singing "Any Bonds Today". Because
this program is heard in Canada, an appeal was also made
for Canada's War Savings Certificates.
Radio announcements for Defense Savings have been
set for the Army and Navy game in Philadelphia. Two
announcements are scheduled through the postmasters of
Philadelphia, to be broadcast by NBC, Mutual and Columbia;
four additional announcements are set for reading over the
Public Address System.
ANY BONDS TODAY
The J. P. Seeburg Corporation has produced fifty
special Minute Man automatic phonograph boxes, and in
cooperation with State Administrators is placing them in
such spots as Grand Central Station, New York, and in
280
-6ANY BONDS TODAY (Continued)
various banks and department stores nationally. A box
attendant presents a 25-cent Defense Savings Stamp to each
person paying a quarter to hear "Any Bonds Today". A
machine in the LaSalle Street Station, Chicago, sold $360
worth of Stamps on Sunday, November 23.
Eighty-five per cent of all Rudolph Wurlitzer Company
employees have signed to participate in buying $331,500 in
Defense Savings on an annual basis.
MOTION PICTURES
Prints of "America Preferred" have been supplied to
fifty Ford Motor Company film loan libraries. Film from
these libraries is shown to approximately 1,500,000 persons
monthly.
CONVENTIONS
Special Defense Savings display booths will be set up
at the national convention of the Association of Amusement
Parks, Pools and Beaches to be held at the Hotel Sherman,
Chicago, November 30 to December 5; also, at the U. S. Savings
and Loan League Convention at the Miami-Biltmore, Coral
Gables, Florida, December 1 to December 5.
281
-7BUSINESS PUBLICATIONS
The first in a series of advertisements on pay roll
allotment was released this week to 1350 business publi-
cations, with a basic, unduplicated circulation estimated
at more than 4,000,000. These publications are read by
administrative officers of industrial organizations,
department heads, purchasing agents, salesmen, plant
superintendents, foremen, and owners and managers of whole-
sale and retail business. (Proof of the advertisement is
attached.) (No. 7). Electros of it have been mailed to
400 publications with an audited circulation and offered to
950 other nonaudited publications.
The Associated Business Papers, an organization of the
most important "paid subscription" publications (total
circulation approximately 2,000,000) and the National
Business Papers Association, representing the "free-controlled
circulation" publications, have written to their members
urging cooperation "advancing the cause of Defense Bonds and
Stamps".
HOUSE ORGANS
First of a series of column features describing the connection between Defense Bonds and military equipment, was
released to 3300 house organs with an estimated total cirou-
lation of 15,000,000. (Copy of the first release is attached.)
(No. 8).
282
-8FIELD OFFICE
Nineteen state chairmen, administrators, and deputies
participated in a conference here.
Status of the field organization throughout the
country follows:
States
State and Local Committees
28
State Committees Organized
14
Changes Since Nov. 21
0
3
Administrators and/or
Chairmen appointed
Not started
8
2
TOTAL
52
4
t1
(including D. C., Alaska,
Hawaii and two field
divisions in California)
(See map attached.) (No. 9).
Eight field representatives are at work in the field
assisting state administrators in various phases of organizational work.
BANKS
The American Institute of Banking, the educational
section of the American Bankers Association, announces a
nation-wide mobilization of more than 250,000 bank employees
to aid the Treasury Department in the sale of Defense Savings
Bonds and Stamps. Four hundred and twenty-one local chapters
283
-9BANKS (Continued)
and study groups of the American Institute of Banking
throughout the nation will hold forums and panel discussions to aoquaint bank employees with all phases of
the Defense Savings Program as a means of enhancing
cooperation with the public.
WAR DEPARTMENT ALLOTMENT PLAN (CONFIDENTIAL)
The Finance Department of the War Department has
machinery set up for a pay roll allotment plan to sell
Defense Savings Bonds to 1,500,000 soldiers and about
400,000 civilian personnel. Official announcement is
expected about January 15, 1942, the effective date of
the plan depending in large measure on how soon the
Government Printing Office can supply essential material.
Finance Department officials expect the plan to sell a
minimum of $50,000,000 in Bonds annually.
The plan calls for appointment of a Senior Defense
Bond Officer in every army camp in the nation. An appro-
priation of $300,000 has been made for civilian help to
handle bookkeeping, accounting, etc., and assist the Senior
Defense Bond Officers, whose sole duties will be to promote
the sale of Bonds and Stamps to enlisted personnel.
-10-
284
WAR DEPARTMENT ALLOTMENT PLAN (Continued)
Pamphlets containing information based on the Defense Bond
Quizzes, prepared by the Press Section of the Defense
Savings Staff, and including a message from the Secretary
of War, will be issued to all War Department personnel,
civilian and military.
DIRECT MAIL
Direct mail order sales for the week ending November
28 were $772,351, bringing the total mail order sales to
date to $7,339,004. Preliminary testing of advertising in
small quantities occupied the Mail Order Division through
September 4 when the first mailing of size (397,000 names
on First Industrial Mailing) was dispatched. With the
exception of $329,368 produced in the preliminary testing
period, the total sales to date represent an effort covering
less than three months. The first prospect mailing to a
list of 2,000,000 names is now in progress. Orders received
from the first quantities mailed to this list in five days
of pulling have produced Bond sales of $22,158.
285
No.,
23
Too Much Loose Talk
By Roger W. Babson
Facts About Defense Bonds
While listening to many recent conversations, I have come to
believe that too many individuals are today decidedly talking
out of order. There is a good deal of "gossip" going the rounds
about unemployment defense bonds, inflation, further devalua.
Lion the dollar. the plight of the
size
and
servicing of the debt.
which basis
deal
further
of
741
ROGER W. BABSON
printing
The
financing
fense
de-
equi-
through
Treasury DepartHere
tiable
circum
urged
Bonds
directly contribute their
these critical times In
protect
are
way
needed
The
any
Mr.
far,
Mor
the
dispose
without
buy
they
286
FOR DEFENSE
UNITED
STATES
SAVINGS
BONDS
AND STAMPS
ON SALE AT YOUR PAY WINDOW
"Brother I'm in-every pay day!"
From: Press Section, Defense Savings Staff.
Treasury Department, Washington, D.C.
Ref tattotment No.3.
287
FORDEFENSE
YOUR
BUY
UNITED
STATES
SAVINGS
BONDS
AND STAMPS
WINDOW
LADOR
SAVES
TO
FIGHT
BONDAGE
SAVE
AMERICA.
ROLLIN
KINBY
"Hitler smash my union? We'll smash Hitler!"
To ALL EDITORS:
This cartoon was especially drawn by Rollin Kirby for the exclusive use of the American labor press. It is supplied to you in the enclosed mat form for your use in cooperating
with the Defense Savings Program. Publication in your paper will be a valuable contribution toward awakening the rank-and-file of your union to the necessity of increasing their
savings through Defense Savings Bonds and Stamps, and will be appreciated.
R. T all
The Sheboggan Press
288
THE
4
APPENDED
COMMENT
IS FROM THE
ISSUE OF..
Nov 25, I9AI
BY
II
C. 3. Broughton. Editor
Speaking Of Bonds
BONDS
DICTATORSHI
OUR INSURANCE
POLICY OF
LIBERTY AND
FREEDOM!
University
BONDS
AND
SAVINGS
STAMPS
PLESSIGN+T.S.
SHEBOYGAN PRESS
57
Suitor's Note-This - cartoon is a picstory of two kinds of bonds - the kind
Key have in Europe and bonds of freedom
uch a as Uncle
iere in the United States. There is no
Sam
life may be preserved you Sheboygan Press
asked to Buy A Share in
we
and was over a years
we can as as endures
our
readers America. priceless are Liberty innumerable acquired which sacrifices. hold 150 sacred That
and
and at in the thing hand helm. with dictatorship U.S. Liberty Defense and with Freedom Bonds go
liberty ago democratic through form only of enjoy government long
lavings Stamps. In order that our way of
on this hemisphere. Buy bonds today.
SEVSPAPERS COOPERATING IN THE
CARRIER PLANED THE SALE OF DEVENSE SAVINGS STATE
November 20. 1942
Birsingham News, Birmingham, Algbana.
Birmingham Age-Herald, Birmingham, Alghana.
Hanteville Times, Manteville, Alghama.
ARIZONA
ARRANSAS
Blytheville Courter-News, Elytheville, Arkansas.
KL Dorado News, 12 Dorado, Askanous.
KL Dorade Time, n Derado, Arkeness.
Payetteville N.W. Arkanasa Times, Fayetteville, Arkanases.
Little Reek Arkansas Descares, Little Back, Alikaneas.
Little Reck Gasette, Little Back, Arknesse.
CALIFORNIA
Chico Saterprise, Chico, California
Culver City Star-News, Calver city, california.
From Bee, Freeno, California.
Fallerten News-Tribuno, Fallerton, California.
Lee
California.
Lee California.
Lodi News-Sentine1, Less, California.
a California.
Medeste
Pasadena California.
Pasadona
Redding
BeddingCalifornia.
California.
Redding
Secresmente California.
Angeles Angeles Press-Courter, Boo, Courier Record, Searenlight, Star-News, Post, Times, News, Bee, Mediato, Pasadena, Bedding, Free Seasemente, Lee Lee Redding, Press, - Angeles, California. Angeles, California. California. Redding,
San Diego Tribuse-Sm, San Diego, California.
San Diego Union, San Disgo, California.
Sea Francisco Chronicle, San Francisco, California.
San Francisco Name, San Pressisce, California.
Sea Jess Rese, Sea Jess, California.
Valleje Chronicle, California.
Bollywood California.
Vallejo Times-Norald, Failate California.
289
290
COLORADO
Boulder Canora, Boulder, Colorado.
Colorado Springs Casatta, Colorado Springs, Colorado.
colorado Springs Telegraph, Colorado Springs, Colorado.
Fort Collins Express-Courier, Fort Collins, Colorado.
Greeley Tribune, Greeley, Colorado.
Public star-Journel, Puoble, Colorado.
Public Chieftain, Public, Colorado.
Storling Advocate, Starling, Colorado.
CONFECTIOUT
Bridgeport Post, Bridgeport, Connection
Bridgeport Telegram, Bridgeport, Connecticut.
Greenwich Press, Greenwich, Connecticut.
Greenwich Time, Greenwish, Connections.
Hartford Courant, Hartford, Connections.
Hartford Times, Hartford, Connectious.
Hiddletown Press, Middletom, Connecticut.
New Naven Journal-Courior, New Haven, Connectient.
New Naver Register, How Haven, Connecticut.
Waterbury American, Enterbury, Connections.
Waterbury Republican, Waterbury, Connecticut.
Waterbary Denoural, Weterbury, Connections.
DELAVANE
DISTRICT OF COLUNBIA
Washington News, Washington, District of
Teahington Post, Washington, District of Columbia.
Washington Star, Washington, District of Columbia.
Teshington Time Washington, District of Columbia.
FLORIDA
Clearwater Sun, Clearwater, Florida.
Fort Landerdale News, Forb Landordale, Florida.
Fort Pierce News-Prince, Fort Pierce, Florida.
Jacksonville Florida Times-Union, Jacksonville, Florida.
Pala Beach Sunday Post-Times, West Pala Beach, Florida.
st. Augustine Record, St. Augustine, Florida.
so. Petersburg Independent, se. Petersburg, Florida.
st. Petersburg Times, so. Petersburg, Florida.
Florida State News, Tellchessee, Florida.
fallohasune Daily Denocrat, Tallshasses, Florida.
Temperines, Tango, Florida.
Teape Tribung, Temps, Florida.
Sanford Herald, Sanford, Florida.
GEORGIA
salests Journal, Atlanta, Georgia.
Augusta Chronicle, Augusts, Georgia.
Columbe Ledger-Signisor, Columbus, Georgia.
Massa News, Macon, Georigia.
Nacon Telegraph, Mason, Georgia.
Wayerose Journal-Harald, Wayeoras, Georgia.
IDAHO
Ziabe Falls Fest-Register, Idaho Qus, Idaho.
Meesure Daily Idahoism, Mescow, Maile.
Insure I Issues,
ILLINOTS
Nomington Penagraph, Bloomington, Illinois.
Gaire
Illinois.
Champsign-Orbens, Illinois.
Chicago Illinois.
Chicago
Chicago Illinois.
Illinois.
Chicago
Benville
DetailsDanville,
Illinois.Illinois.
Jacksonville Jacksonville, Illinois.
Citizen, Time, Item, - Tribuno, Commercial-How Chicago, Courier, Chicago, Carise, Chicago, News-Canette, Chicago, Delialb, Illinois.
Jacksonville Journal, Jacksonville, Illinois.
Korgane Star-Courier, Servence, Illinois.
Noline Daily Dispatch, Meline, Illinois.
Fooria Peoria, Illinois.
Beek Island legal Heals Island, Illinois.
Beekford Star, Bookford, Illinois.
Rockford Register Republic, Rockford, Illinois.
Shelbyville Union, Shelbyville, Illinois.
Springfield Illinois State Journal, Springfield, Illinois.
Springfield Illinois State Register, Springfield, Illinois.
Undergon Waukegan, Illinois.
291
292
INDIANA
Alexandria Time-Tribune, Alexandria, Indiana.
News-Danner,
Indiana.
Huffton
Bluffton,
Indiana.
Brasil Times,
Elkhart Truth, Hilbhart, Initians.
Fort Wayne Journal-Onerra, Fort Wayne, Indiana.
Freekfort Times, Frankfort, Indiana.
Gary Pest Tribune, Gary, Indiana.
Cosher News-Democrat, Goshan, Indiana.
Haspond Times, Hasmond, Indiana.
Marion Chronicle, Marion, Indiana.
Narion Lender-Tribune, Marion, Indiana.
Michigan City News-Dispatch, Michigan City, Indiana.
New Albany Tribune, New Albany, Indiana.
Foru Tribune, Peru, Indiana.
Richmond Palladium-Item, Richmond, Indiana.
South Bond Tribune, South Bend, Indiana.
Spaneer World, Spaneer, Indiana.
Terre Haute, Tribune Star, Terra Haute, Indiana.
Vincennes Sun Commercial, Vincennes, Indiana.
Wabash Plain Dealer, Wabash, Indiana.
Nuncie Press, Indiana.
IOWA
Ames Tribune, Ames, I
Coder Hapids Gasette, Cedar Rapids, Iowa.
Clinton Herald, Glinton, Iova.
Creston News Advertiser, Creaton, Iona.
Davenport Times, Havenport, Iowa.
Davenport Democrat, Bagenport, Iova.
Des Moines Register, Des Meines, Iova.
Des Moines Tribune, Dea Mother, Iova.
Mason City Globa-Qasotto, Manon City, Iowa.
Nevada Journal, Nevada, I
Oakaloosa Herald, Oskaloose, Iona.
Sions City Journal, Sioux City, Iova.
Sioux City Tribune, Sioux city, Iova.
KANSAS
Independence Reporter, Independence, Kansas.
Legvenworth Times, Leavenworth, Kansas.
Liberal Southwest Times, Liberal, Kansas.
McPherson Republican, MePhorson, Kansas.
Salina Journal, Salina, Kansas.
Topeka Capital, Topeka, Kansas.
Topeka State Journal, Topeka, Kansas.
Whohita Seacon, Wichita, Kansas.
Wichita Eagle, Wichita, Kansas.
293
KENTUCKY
Bowling Green Park City News, Bowling Green, Kentucky.
Lexington Herald-Leader, Lexington, Aentucky.
Louisville Courier-Journal, Louisville, Kentucky.
Louisville Times, Louisville, Kentuckly.
Ownesboro Inquirer, Quencboro, Bentucky.
Ovensboro Messenger, Owensboro, Kentuckly.
Padueah Sun-Democrat, Padnoah, Kentucky.
(See Sa for additions to Kentucky.)
LOUISIANA
New Orleans Item, Age Orleans, Louisiana.
New Orleans Time-Pieayuno, New Orleans, Louisiana.
New Orleans States, New Orleans, Louisiana.
Monroe lines-Star, Honroe, Lousiana.
Monroe World, Monron, Louisiana.
Opelousas World, Opelousas, Louisiana.
Shreveport Journal, Shreveport, Louisiana.
Shreveport Times, Shreveport, Louisiana.
MAINE
Banger News, Bangor, Maine.
MA YLAND
Annapolis Capital, Annapolis, Maryland.
Baltimore News-Post, Baltimore, Maryland.
Baltimore Sunday American, Bultimore, Marylad.
Baltimore Sun, Baltimore, Maryland
Hagerstown Herald, lagerstown, Maryland.
Hagerstown Mail, Hagerstown, Maryland.
Salisbury Times, Salisbury, Maryland.
MASSACHUSETTS
Attleboro Sun, Atileboro, Massachusetts.
Fall River Herald News, Fg11 River, Massachusetts.
Greenfield RecordaryGasotte, Greenfield, Massachusetts.
Haverhille Gasette, Haverhill, Masanchusetts.
Cape Cod Standard Times, Hyannie, Massachusetts.
Holyoke Transcript-Telegram, Helyoke, Massachusette.
Laurence Eagle, Lawrence, Massachusetts.
Lawrence Tribune, Lawrence, Masaachusetts.
Pittefield Berkshire Eagle, Pittsfield, Massachusetts.
New Bedford Timos,Marcury, New Bedford, Massachusetts.
Page 5a.
SEENTUCKY
*********
KENTUCKY
Ashland Independent, Ashland, Ky.
Corbia fribuno, Corbin, Ky.
Corbia Times, Cerbin, Ky.
Danville Advents-Nessenger, Demville, Ky.
Frankfort State Journal, Frankfort, Ky.
Glangew News. Calagov, Ky.
Harlam Enterprise, Harlan, Ky.
Essard Herald, Hasard, Kg.
Madisonville Nessenger, Radisonville, Ky.
Keyeville Public-Ledger, Maysville, Ky.
Middleboro News. Hiddlebere, Ky.
Richmond Register, Eighmond, Ky.
Winchester Sun, Winchester, Ky.
294
MICHIGAE
Adrian Telegram, Adrian, Hichigan.
News, Amm Richigan.
- Alpena Arber News, Alpana, Arbbr, Michigan.
Bettle Creek Enquirer-Fees, Battle Creek, Michigan.
Bay City Times, Bay city, Michigan.
Benton Harbor News-Palladinin, Benton Harbor, Michigan.
Detroit News, Detruit, Michigan.
Detroit Times, Detroit, Michigan.
Flist Journal, Flint, Michigan.
Grand Rapids Press, Grand Rapids, Michgian.
Iremond Globe, Ironwood, Michigan.
Jackson Citizen-Patrict, Jackson, Hechigan.
Kaleassee Gasette, Kalamanoo, Michigan.
Lonsing State Journal, Laneing, Michigan.
Monroe News, Monroe, Michigan.
Maskegon Chronicle, Huskegon, Michigan.
Chose Argue-Fress, Deseaso, Nichgian.
Saginew News, Saginaw, Michigan.
Traverse City Record-agle, Traverse City, Michigan.
Port Euron. Michigan (Port Euron Times-Norald)
MINNESOTA
Albert Les Tribune, Albert Lea, Himesota
MISSISSIPPI
atlent Gulfport Herald, Biloxi, Mississippi.
Jackson Clarion Leader, Jackson, Mississippi.
Jackson News, Jackson, Niesissippi.
Maridian Star, Maridian, Mississippi.
MISSOURI
Cape Girardeau Southeast Missourian, Cape Girardeau, Hissouri.
Joplia Globe, Joplin, Missouri.
Joplia News-Nerald, Joplin, Missouri.
Kansas City Star, Kansas city, Missouri.
Mexico Ledger, Mexico, Missouri.
Sedalia Capital, Sedalia, Missouri.
Sedalia Democrat, Sedalia, Missouri.
MOB ANA
295
-70 age
ERBRASKA
Grand Island Independent, Grand Hand, Bebraska.
Mastings Tribune, Hestings, Nebraska.
Star, Nebraska.
NeCest The Lincoln Gasette, McCook, Lincoln, Nebraska.
Nebraska State Journal, Lincoln, Nobranka.
ZEVADA
Reas Gesette, Meno, Sevada.
Reno Nevada State Journal, Reno, Hevada.
NEW HAMPSHIRE
Manchester Union, Manchester, Hgar Hampahire.
Kanchester Leader, Manehester, New Kampahire.
Nashua Telegraph, Nashua, New Hampahire.
NEW JENSEY
Asbury Park Evening,Press, Asbury Park, New Jarsey.
Atlastic City Press, Atlantic City, New Jersey.
Atlantic City Usion, Atlantic City, New Jersey.
Bayenne Times, Bayenne, New Jersey
Canden Courier, Carden, New Jersey
Canden Post, Canden, How Jersey.
Elisabeth Daily Journal, Klisabeth, New Jersey.
Evening Journal, Finaland, New Jersey.
Evening Times, Vineland, New Jersey.
Jersey City Jersey Journal, Jersey City, New Jersey.
Long Brench Record, Long Byanch, New Jersey.
Millville Republican, Millville, New Jersey.
New Brenswick Home Howe, New Brunswick, New Jersey.
New Breaswick Sunday Times, New Brunswi.ek, New Jersey.
Newark Name, Newark, New Jersey.
Passais Herald Name, Passaic, New Jersey.
Pateroom Morning Call, Paterson, New Jersey.
Paterson Have, Paterson, New Jersey.
Partis Ashay Dear, Forth Ambay, How Jersey.
Plainfield Courier-News, Plainfield, New Jersey.
Trenton State Gasette, Transon, New Jersey.
Trenton Times, Trunton, New Jersey.
Trenton Times Advertiser, Treaton, ligar Jersey.
Union City Hadson Dispatch, Union City, New Jersey.
Bridgeton News, Bridgeton, New Jersey.
Hahaken Jerear Observes. Noboken. New Jersey.
Resristons Record, Merriston. New Jersey.
296
+
I KEKICO
297
Albequorque Journal, Albugnierque, dge Mexoci
Albequaryne Tribune, Allyuquezque, New Mexico.
NEW YORK
Albany Name, Albany, age York.
Dang abouty, lige York.
instended Recorder & Denoment, Amatordam, &go York.
Batavia Sams, Satavin, Mg York.
Signature Press, Nex York.
Singhamban - Binghanton, New York.
Puffels Courier-Represe, fgo York
Beaces News, Reacon, New York.
"uffale News, Huffale, Res York.
Canadaigna Cananilaigne, "as York.
Casekill zail, Catakill, Sign York.
Carning Leader, Commiss New York.
Cortland Standard, Cortland, New York.
Peneville trease, Deasville, Sex York.
Deskirk deserver, Bankisk, New York.
Dates Datra, New York.
Indicate Bulletin, Endinest, New York.
General Times, Geneva, San York.
Bless Falls Glass Falls, New York.
Glass Falls Times, Glans Falle, New York.
Glovereville & Johnstone Leader-Republican, #loversville & New York.
& Herald, Gloversville & Johnstom, New York.
Morali Tribune, Homell, Hau York.
Sudeca Mar, Bedoon, New York.
Beening Register, Hudson, New York.
Ithaca Journal, Ithaca, New York.
Jamestown Post, Jangatoon, New York.
Jamestorm Journal, anestown, East York.
Kingstan / Sim stem, New York.
header, Kingsten, New York.
Lastic Falle Times, istate Falls, New York.
Leekpart Union-Jia & Journal, Leokport, Sgs York.
Malene Velogram, Melene, New York.
Kanaramank Times, Management, New York.
- Observer, See York.
Medias Journal-ingleter, Medina, New York.
additional Time Ridileton, light York.
Mount formo Aggne, Fount Sugaron, New York.
Newburgh Neese Newburgh, ligar York.
Ba Acchelle Standard Star, Rew Aschelle, ligu York.
asida Dispatch, onside, New York.
Breaklyn Engle, Nga York, Egg York.
Breas Name Home, See York, New York.
Journal of See York, - York.
Treeport I Deview Star, Freepiet, How York.
Janaica Lemo Inlead Prem. Hear York.
Long Island city Sear-Journal, Long Island city, "or York.
Mators Falls agentte, Elegare Falls, New York.
North Tongwada News, North Tongwanda, New York.
Norwich Ogdensburg Sun, Journal, Norwich, Ogdensburg, How York. New York.
Ogdensburg Advance News, Ogdensburg, How York.
Olean Times-Herald, Olean, New York.
Onconta Star, Onsonta, New York.
Ossining Citisen-Register, Ossining, New York.
Gawego Palladium-Times, Oawago, New York.
The Evening Star, Peekskill, New York.
Plattsburg Press, Plattsburg, Sgu York.
Port Chester Item, Port Chester, New York.
Poughksepsie New Yorker and Eagle-lievs, Poughkeepsis, New York.
Bochester Democrat & Chronicle, Rechester, New York.
Agehester Times Union, Hochester, New York.
Rome Sentinel, Home, New York.
Salamanoa RepublicanePrese, Salamanca, New York.
Saratoga Springs Saratogian, Saratoga Springs, New York.
Schenectady Gasette, Schenectady, New York.
Schenectady Union-Star, Schenectady, liger York.
Syracuse Herald-Journal, Syracuse, New York.
Syracuse Herald American, Syracuse, New York.
Syracuse Post-Standard, Syracuse, New York.
Tarrytown News, Tarrytown, New York.
Tongranda Daily Press, Tongwands, low York.
Troy Record, Troy, New York.
Troy Times-Record, Troy, New York.
Utica Observer-Pispatch, Ution, New York.
Utica Press, Utica, New York.
Watertown Times, Watertown, New York.
White Plains Reporter, White Plains, New York.
White Plains Dispatch, White Plains, New York.
Yonkers Herald-Stateman, Xonkers, New York.
Hempstead Seveday. Hempstend, New York.
NORTH CAROLINA
Charlotte News, Charlette, North Carolina
Charlette Observer, Charlobte, North Carolina.
Concord Tribune, Concord, North Carolina
Fayetteville Observer, Fayetteville, North Carolina.
Greensboro News, Greensboro, North Casolina.
Greensboro Record, Greensboro, North^Carolina.
New Born Sun-Journal, New Born, North Carolina.
BaleighEines, Releigh, North Carolina.
Haleigh News & Observer, Raleigh, North Carolina.
Rocky Mount Telegram, Hocky Mount, North Carolina.
Salisbury Post, Salisbury, North Carolina.
Filmington Star-News, Wilmington, North Carolina.
"inston-Salem Journal, Winston-Salem, North Carolina.
Winston-Salem Twin City Sentinel, Winston-Salem, North Carolina.
298
-10-
299
NORTH DAKOTA
Grand Forks,Horald, Grand Yorks, North Bakora.
OHIO
Akron Deacon-Journal, Akron, Ohio.
Alliance Review, Alliance, Ohio.
Athens,Meeeonger, Athens, Ohio.
Cambridge Jeffersonian, Cambridge, Ohio.
Canton Repository, Canton, Ohio.
Cinsimmati,Enquierer, Cincinnati, Ohio.
Columbus Dispatch, Colubinus, Ohio.
Columbus Ohio State-Journal, Columbus, Ohio.
Conneaut News-Hereld, Conneaut, Ohio.
Dayton Journal Herald, Dayton, Ohio.
Dayton News, Dayton, Ohio.
Delgware Uasette, Delaware, Ohio.
Dover Reporter, Dover, Ohio.
East Liverpool Review, East Liverpool, Ohio.
Elyria Chronicle-Telegram, Elyrin, Ohio.
Hamilton Journal-News, Hemilton, Ohio.
Ironton Tribune, Ironton, Ohio.
Lina News, Lima, Ohio.
Marietta Times, Marietta, Ohio.
Newark Advocate and American Tribune, Newark, Ohio.
Painesville Telegraph, Painesville, Ohio.
Piqua Call, Pigua, Ohio.
Springfield News-Sun, Springfield, Ohio.
Warren Tribune-Chronicle, Warren, Ohio.
Youngstown Vindicator, Youngstom, Ohio.
Zanesville Times Recorder, Zaneaville, Ohio.
Zanesville Signal, Zanesville, Ohio.
OKLAHOMA
Bartlesville Exsminer-Intergrise, Bartlesvills, Oklahoma,
Blackwell Journal-Tribune, "lackwell, Oklahoma.
Said Eagle, Eaid, Oklahoma.
Zaid News, Knid, Uklahoma.
Maskages Phoenix, Muskages, Oklahoma.
Muskegee Times Democrat, Muskogee, Oklahoma.
Shawnee News, Shawnee, Oklahoma.
Shawnee Star, Shawnee, Oklahoma.
OREGON
Astoria Astorian=Budget, Astoria, Oragon.
Bend Dulletin, Band, Oragon.
Month Coon Bay Times, Marshfield & North Bend, Oregon.
Marchfield&Send
Medford Mail Tribune, Hedford, Oregon.
Portland Oregon Journal, Fortland, Oregon.
-11=
PENNSYLVANIA
Pa.
Allentown call-Chronicle, Aliquippa, Allentown, Pa.
Aliquippa Gasette,
Tribune,
Citizen, Pa.
Altoona Ambridge Altoona, Ambridge, Pa.
Bangor News, Bangor, Pa.
Beaver Falls liess Tribune, Beaver Falls, Pa.
Bradford Era Star & Record, Bradford, Pa.
Bradford Era Sunday Herald, Bradford, Pa.
Courier, Bristol, Pa.
Telegraph, Brownsville, Pa.
Bristol
Brownsville
Butler Eagle,
Butler, Pa.
Carlisle Sentinel, Carlisle, Pa.
Chester Times, Chester, Pa.
Clearfield Progress, Cleafield, Pa.
Columbia News, Columbia, Pa.
Connellsville Courier, Connellsville, Pa.
Corry Journal, Corry, Pa.
Daylestown Intelligencer, Doylestown, Pa.
Easton Express, Easton, Pa.
The Morning Free Press, Baston, Pa.
"Iwood City Ledger, Elwood city, Pa.
Erie Dispatch-Herald, Frankling. Pa.
Harrisburg News, Harrisburg, Pa.
Harrhsburg Patriot, Harrisburg, Pa.
Harrisburg Sunday Courier, Harrisburg, Pa.
Haselton Plain Speaker, Hamleton, Pa.
Haselton Standare Sentinol, Basleton, Pa.
Jeannette News-Dispatch, Heannette, Pa.
Jersey Shore Herald, "ersey Shore, Pa.
Johnstown Tribune, Johnstown, Pa.
Johnstonn Democrat, Johnstown, Pa.
Lancaster New Era Intelligencer-Journal, Lancaster, Pa.
Lancaster New Era Sunday News, Laneaster, Pa.
Du Bois Courier, Da Bois, Pa.
the Bois Express, Du Bois, Pa.
Gettysburg Times, Gettysburg, Pa.
Latrobe Bulletin, Latrobe, Pa.
Lebanon News-Times, Lebanon, Pa.
Lehigthon Leader, Lehigton, Pa.
Lewistown Sentinel, Lewiston, Pa.
Lock Haven Express, Lock Haven, Pa.
Mahanoy City Record-American, Mahonay City, Pa.
Monongahela Republican, Monongahela, Ps.
Harrisburg Telegraph, Harrisburg, Pa.
McDessport News, MeKeesport, a.
Mauch Chunk Times-News, Mauch"Chunk, Pa.
Meandville Tribune-Republioan, Handville, Pa.
Monessen Independent, Monessen, Pa.
New Castle News, New Castle, Pa.
New Kensignton Dispatch, New Kensington, Pa.
011 City Derrick, Oil City, Pa.
Philadelphia Record, Philadelphia, Pa.
Phoenixville Republican, Phoenixville, Pa.
Pittsburg Fest Gasette, Pittsburg, Fa.
Pittsburgh Fress, Pittsburgh, Pa.
Pittsburgh Sun Telegraph, Fiftsburg, Pa.
300
-12-
Poststown Heroury, Pottstown, Ps.
Pottsville Journal, Pottsville, Pa.
Pottsville Republican, Pottaville, Pa.
Penxsutaway Spirit, Punxautamey, Pa.
Reading Kagle, Reading, Pa.
Seading Times, Reading, Pa.
Renovo Record, Pa. Renova.
Ridgeway Record, Hidgeway,
St. Sarys Press, St. Marys, Pa.
Sayre Times, Sayre, Pa.
Seranton Times, Seranton, Pa.
Serantomian, Seranten, Pa.
Seranton Tribune, Seranton, Pa.
Shamokia News-Dispatch, Shanokin, Pa.
Sharon "erald, Sharon, Pa.
Shenandoah Herald, Shenandoah, Pa.
State College Centre Times, State College, Pa.
Sunbury Daily item, Sunbury, Pa.
Tamaqua Courier, Tamaqua, Pa.
Terentum Valley News, Tarentum, Fa.
Towanda Review, Towanda, Pa.
Tyrone Herald, Tyrone, Pa.
Uniontown Herald, Uniontown, Pa.
Uniontown Standard, Uniontown, Ps.
Vandergrift News, Vandergrift, Pa.
Washington Observer, Washington, Pa.
Washington Reporter, Washington, Pa.
Baynesboro K_eord-Herald, Waynesboro, Pa.
Baynesburg Democrat "essenger, Waynesburg, Pa.
"ilkee-Barre Record, ilkes-Barre, Pa.
Willing-Barre Time Wilkee-Barre, Pa.
Williamport Qasette-Bulletin, Williamsport, Pa.
Williamsport Sun, #illigaspart, Pa.
Williamsport Grit, Williamsport, Pa.
York Gasette Daily, York, Pa.
York Dispatch, York. Pa.
Carbondale Leader, Garbandale, Pa.
Hanover Sun, Ennover, Pa.
Horriston time-Herald, Horristown, Pa.
Strendsburg Record, Strondsburg, Pa.
Vest Chester Local News, West Chester, Pa.
PHODE ISLAND
Providence Journal, Providence, Shode Igland
Providence Evening Dulletin, Rhode Island.
Profidence Sunday Journal, Rhode Island.
Woonsocket Call, Woonsocket, Rhode Island.
SOUTH CAROLINA
Charleston Post, Charleston, South Carolina.
Charleston News & Courier, S. C.
Columbia State, Columbia, S.C.
Greenville News, Greenville, S.C.
Greenville Piedmont, Greenville, S.C.
301
-13SOUTH DAKOTA
Aberdsen Americanalieve, Aberdeen, S.D.
TENNESSEE
Chattanooga Times, Chattanooga, Tenn.
Johnson city Chronicle, Johnson City, Tenn.
Johnson City Press, Johnson City, Term.
Kashville Banner, Nashville, Tenn.
Nahhville Tennessean, Nashville, Tenn.
Knoxville News-Sentinel, Knoxiville, Tennessee.
TEXAS
Amarillo Globe, Amarillo, Texas.
Amarillo News, AnaPillo, Texas.
Big Spring Herald, Big Spring, Texas.
Borger Herald, Horger, Texas.
Brownsville Herald, Brownsville, Texas.
The Dallas Journal, Dallas, Texas.
Dallas Times-Herald, Dallas, Texgs.
Dallas News, Dallas, Texas.
K1 Paso Herald Post, =1 Pasto, Texas.
51 Paso Times, E1 Paso, Texas.
Fort North Press, For t Worth, Texas.
Fort North Star-Telegram, Fort Workh, Texas.
Galveston "our, Galveston, Texas.
Galveston Tribune, Galveston, Texas.
Henderson News, Henderson, Texas.
Houston Chroncile, Houston, Texas.
Houston Post, Houston, Texas.
Kilgore News Herald, Kilgore, Texas.
Marshall News-"esconger, Harshall, Texas
MoAlles Monitor, MeAllen, Texas.
Port Arthur News, Part Arthur, Texas.
San Angele Stadard-Times, San Angelo, Texas.
UT&H
VERMONT
Barre Times, Barre, Vermont,
Burlington Free Press, Burlington, Vt.
Burlington News, Burlington, Vt.
St. Albans,Neesenger, St. Albans, Vt.
302
-14VIRGINIA
Lynchburg Advance, Lynchburg, Va.
Lynchburg News, Lynchburg, Va.
Horfolk Lodger-Dispatch, Norfolk, Va.
Norfolk Virginian Pilot, Norfolk, Va.
Petersburg Progress-Indax, Petersburg, Va.
Richmond News Leader, Richmond, Va.
Richmond Times-Dispatch, Richmond, Va.
WASHINGTON
Brenerton Sun, Brenerton, Washington.
Seattle Star, Seattle, Wash.
Tacoma News-Tribune, Tacoma, Wash.
Tacoma Times, Tadoma, Wash.
Vancouver Columbian, Vacouver, Mash.
WEST VIRGINIA
Beekly Post-ierald, Beckley, West Va.
Bluefield Telgraph, Bluefield, West Va.
Fluefield Sunset News, Bluefield, Best Va.
Backley Raleight R_gister, Backley, West Va.
Sheeling Intelligencer, Wheeling, West Va.
Sheeling News-Register, Wheeling, West Va.
WISCONSIN
Fond Du Lac Commonwealth Reporter, Fond Du Lac, Wis.
La Crosse Tribune & LeadersCross, La Crosse, Wis.
Marinette Eagle-Star, Marinette, his.
Marshfield News-Herald, Marshfield, "is.
Milwaukee Journal, Milwaukkee, His.
Milwaukee Sentinoi & News Sentinel, Wis.
Oahkoah Northwestern, Oahkosh, Wis.
Hacins Journal-Times, Racine, Wis.
Racine Sunday Bulletin, Racine, Wis.
Sheboygan Prezs, Sheboygen, Wis.
Stevens Point Journal, Stevens Point, "is.
WYOMING
Laramie Dulletin, Laramie, youing.
Laramie Hypublican-Boomerang, Larasis, Eyomig.
Rock Springs Rocket, Book Springs, Wyoming.
303
BLLETH
304
PLAN
SAME
OVER
PHILADELPHIA
ULLETil
ALL
*THIS
ULLETH
1941
is
that
They
antle
other
is
TIMES,
They are making door-bells into veritable
who buy Defense Stamps
Liberty Bella
Already they selling delivering
started
They have Philadelphia sales by
They were content merely to talk about
this country. They were the first volunteers
bridge the gap between those who sell and those
have
YORK
faction
Stamp sales They volunteered to will Defense
leader
They
They
the
NEW
Stampe and deliver
their
half.
United
to
Bulletin
II PHILABELPHIA-HEARLY EVERYBODY READS THE BULLETIN
Morgenthes
these
the
THE
then
speeding
The
addition
it
is
which
plan
making Liberty Bells out of door-bells!
Bulletle
stand
Evening
Job
country
Philadelphia
The
Net
the
Right across the nation, another Idea-born is Philadelphia is fostering liberty
IT'S NO WONDER proud of the Newspaper
States Treasury Department Earnest, energetie
Boys Bulletin to thousands Newspaper Boys did the real
Newspaper
Philadelphia
Boys
worked
HULADELPHIA
HULLETIN
They're
Report
No. 7
305
Defense Savings Pay-Roll Allotment Plan
can
Hove company heads country. their
help employees. their and themselves
voluntary
How big does a company have to be?
From
three employees on up. Size has nothing to do with it. It works
equally well in stores, schools, publishing houses, factories, or
banks. This whole idea of pay-roll allotment has been evolved
by businessmen in cooperation with the Treasury Department.
helps
workers provide for the future
pay-roll
allotment
helps
build future buying power
No chore at all. The system is so simple that A. T. & T.
plan
helps
defend America today
uses exactly the same easy card system that is being used by
hundreds of companies has ing fewer than 25 employees! It is
simple enough to be handled by a check-mark on a card each
Each organization adopts its own simple, efficient application
of the idea in accordance with the needs of its own set-up
pay day.
Plenty of help available. Although this is your plan
This is no charity plea. It is a sound business proposition that
itally concerns the present and future welfare of your company,
when you put it into effect, the Treasury Department is ready
your employees, and yourself.
and willing to give you all kinds of help. Loral civilian committees in 48 States are set up to have experienced men work
with you just as much as you want them to, and no more.
Truly, about all you have to do is to indicate your willingness
During the post-war period of readjustment, you may be faced
with the unpleasant necessity of turning employees out into a
onfused and cheerless world. But you, as an employer, can do
to get your organization started. We will supply most of the
something now to help shape the destinies of your people.
Score- of business heads have adopted the Voluntary Pay-roll
Alletment Plan as a simple and easy way for every worker in
necessary material, and no end of help.
the land to start a systematic and continuous Defense Bond
the coupon in no way obligates you to install the Plan. It will
The first step is to take a closer look. Sending in
saving> program.
Many benefits
present and future. It
simply give you a chance to serutinize the available material and
see what other companies are already doing. It will bring you
is
more than a sensible step toward reducing the ranks of the
samples of literature explaining the benefits to employees and
postwar needy. It will help spread financial participation in
describing the various denominations of Defense Savings Bonds
that can be purchased through the Plan.
National Defense among all of America's wage earners.
The widespread use of this plan will materially retard inflation. It will "store" part of our pyramiding national income
that would otherwise be pent as fast as it's earned, increasing
the demand for our diminishing supply of consumer goods.
And don't overlook the immediate benefit
money for
defense materials, quickly, continuously, willingly.
Let's do it the American way! America's talent for
working out emergency problems, democratically, is being
Sending the coupon does nothing more than signify that you
are anxious to do something to help keep your people off relief
when defense production sloughs off: something to enable all
wage earners to participate in financing Defense: something to
provide tomorrow's buying power for your products: something to get money right now for guns
and tanks and planes and ships.
and missed.
France left it to "hit-or-miss"
the time for you to act! Mail the coupon
write Treasury Department, Section A, 709
tested today. As always, we will work it out, without pressure
of coercion in that old American way: each businessman
Twelfth St. NW.. Washington, D. C.
strengthening his our house: not waiting for his neighbor to do
it. That custom has, throughout history, enabled America to
21 things done of its our free will.
FREE NO OBLIGATION
In emergencies, America doesn't do things
"hit-or-miss," We would get there eventually if we
Treasury Department, Section A.
709 Twelfth St. NW.. Washington, D.C.
left it to everybody's whim to buy Defense Bonds when they
thought of it. But we're a nation of businessmen who underPlease send me the free kit of material being used by
companies that have installed the Voluntary Defense
Savings Pay-Roll Allotment Plan.
-land that the way to get a thing done is to systematize the oper-
ation. That is why so many employers are getting back of this
Voluntary Savings Plan.
Like most efficient systems, it is amazingly simple. All you
Name
have to do is offer your employees the convenience of having
fixed -un allotted, from each pay envelope, to the purchase of
Defense Bonds, The employer holds these funds in a separate
bank account. and delivers a Bond to the employee each time
Position
Company
allotment accumulate to a sufficient amount.
Each employee who chooses to start this savings plan decides
Address
for him-elf the denomination of the Bonds to be purchased and
the amount to be allotted from his wages each pay day.
GPO
427922
30
No.8
R/datti
DEFENSE BONDS
BUY TANKS
THE TANK is to the
what the tackle is to the forward line of a football
It is the"break-through." Head-on, it crashes timber,
enemy fortifications. Once it has opened the way,
attacking force follows for the "mopping up."
The Nazis, using these great steel pachyderms which they
educe in vast quantities, have been able to break through
ery fortified line in 14 conquered countries.
In America, the medium-sized tank is the popular size. A
edium-sized tank weighs 30 tons. To make it takes as
uch steel as would be used in 500 refrigerators, as much
/ as goes into 87 average automobile tires.
The planning of a tank takes as great skill as a large-scale
instruction job. One recently converted automobile plant,
ced with retooling for tank production, had to put 200 engiHTS to work in day and night shifts for one month, mapping
machinery requirements and plant layout.
To match the mechanical might of aggressor nations today,
merica needs thousands of these tanks. They're rolling off
assembly lines now. They cost real money. Every time
to buy an $18.75 Defense Savings Bond or a 10e Defense
uvings Stamp you give your country money enough to buy a
ital part for another new tank.
**
r
*
Buy DEFENSE SAVINGS
BONDS and STAMPS
AT ALL BANKS, POST OFFICES, AND SAVINGS AND
LOAN ASSOCIATIONS
428701
307
UNITED STATES
LOOSE LEAF OUTLINE MAP
RANDMONALLY
THE SCOTTA CHICAGO
OB 101
308
PORDEFENSE
FIELD ORGANIZATION
BUY
UNITED
STATES
SAVINGS
News Letter
DEFENSE SAVINGS STAFF
BONDS
AND-STAMPS
TREASURY DEPARTMENT, WASHINGTON, D. C.
NUMBER 28
NOVEMBER 29, 1941
TO THE FIELD STAFF:
There are three important activities of the moment, which are being
pushed by many of our committees and which should have the prominent atten-
tion of all. They are:
1. The formation of Buy-a-Bond-a-Month Clubs. Reports from many
sections indicate the growth of plans which promote the purchase of a bond
every month. Association memberships and other groups are making pledges
to this end. In Pay Roll Allotment Plans, executives and other higher
paid employees are subscribing to allotments calling for the purchase of
a bond each pay day. Banks, Savings and Loan Associations, and Credit
Unions are sponsoring such clubs. It is important to the success of our
work that every effort be used to increase the number of individuals buying bonds with regularity. Every sales method we are using has as its
purpose, - regular, systematic, convenient saving.
2. The use of Defense Bonds and Stamps as Christmas Gifts. Our
securities should have a prominent place on the many gift lists. This will
be done, particularly if attention is focused on it. A real service can be
performed by our committees if this idea is given prominence in all our
activities. Also, Christmas cards containing Stamp Albums, now available,
may well serve to start many individuals on the road to bond ownership.
3. The teaching of thrift on the eve of holiday spending. Every
indication points to extensive holiday and Christmas spending this year.
It may reach staggering proportions. Now, as never before - for every funda-
mental reason behind Defense Savings - our committees should teach the value
of thrift and saving. A half million retail merchants - taking a long range
point of view - are doing their part. We should join them with all the
strength at our command.
21 SHOPPING DAYS
to Christmas
Sincerely yours,
GALE F. JOHNSTON,
Also GIVE
U.S. DefenseSavings
BONDS and
STAMPS
STORESBANKS
POST OFFICES
Field Director, Defense Savings Staff.
News Letter
News Letter
BUFFALO SAVES TO BUY FIGHTER PLANES
to a
FIRST CITY IN THE NATION to stage a
1
is Buffalo, nine
a
between
of campaign days fense time Savings sell November Stamps definite New within 24 York, and amount December given In the of period De- 2,
citizens of Buffalo will invest a minimum
of $175,000 in Defense Savings Stamps,
according to the sponsors of this campaign.
THIS DEFINITE OBJECTIVE is the amount
required to purchase two Buffalo-built war
planes--a Curtiss P-40 and a Bell Airacobra.
Hence, the elogan of the campaign: "Invest
in Defense Stamps - To Buy Buffalo-built
Airplanes."
Airline hostesses guard the
$250,000 worth of Defense Savings Stamps enroute to Buffalo
for the fighter plane campaign.
A SPECIAL FUND of $4,000 for special
posters and other promotional materials
was raised for this campaign by the committee of merchants sponsoring the
event. This committee is headed by Albin 0. Holder. Other members are
Henry W. Comstock. Kenneth V. Mallen, Joseph H. Schinatock, Kenneth E.
If
THAT'S MT RANE-THE IMPERT - THE
Smalley. Herbert M. Uline, A, B. Wright, and John F. Zietlow, Jr. Howard L,
Volgenay, executive secretary of the Buffalo Chamber of Commerce, and Lare
S. Potter, Deputy Administrator for the Western Division of the New York Defense Savings Staff, are also taking active parts in this big event.
From New York Evening Post
IN THIS ISSUE
TO THE LADIES - Pages 10 and 11
FIELD ORGANIZATION NEWS: Arkansas Reports - Page 12
HIGHLIGHTS; California, Georgia and Idaho - Page 13
Illinois, Kansas, Kentucky and Massachusetts - Page 14
Minnesota, Missouri, New Jersey
and North Carolina - Page 15
SYRACUSE BANK Forms Bond Club - Page 16
CHICAGO'S BIGGEST Bank Sells Bonds -
MANY ORGANIZATIONS are cooperating to make it a success:--
Retail stores to all kinds have stamps on sale at convenient
places, many of them having set up specially decorated stamp
booths. Throughout the downtown area, special window displays
]
BUFFALO Seeks Definite Objective - Page 3
CIO Endorses Program - Page 4
STAMP SALES Up For Fourth Month - Page 5
FIRST TOWN 100% For Systematic Savings - Page 5
PRIZES, Premiums and Commissions - Pages 6 and 7
IN THE SCHOOLS - Pages 8 and 9
have been arranged.
A special mailing to practically every household in town (the
225,000 accounts of the Buffalo Niagara Electric Company) brought
a direct appeal to every citizen, as the drive opened.
Army. Navy, Marine Corps and Coast Guard provided equipment and
details of men for a big parade.
DAY TO DAY PROGRESS of the campaign is being charted on a billboard in
Buffalo's Lafayette Square. The billboard carries large pictures of the
Page 17
BUYERS Interviewed - Page 18
COLLEGE ALUMNI Help - Page 18
RADIO PROGRAMS For Coming Week - Page 19
INDIANS Invest - Page 20
LEESBURG LIONS' Like Stamps - Page 20
two airplanes which symbolize the campaign's goal. Attainment of this goal
will be recognized in special plaques on two U. S. Army planes, commemorating this specific contribution of Buffalo residents to National Defense.
"MILLIONS FOR DEFENSE." the Treasury Hour program for December 2,
(Tuesday evening from 8:00 to 9:00 P. M., over stations of the Columbia Net-
work) will include a Salute to Buffalo. Be sure to tune in!
News Letter
News Letter
CIO FORMALLY ENDORSES PROGRAM
STAMP SALES INCREASE 19.2 IN OCTOBER
I
DELEGATES TO THE FOURTH ANNUAL CONVENTION of the Congress of Industrial
Organizations. meeting recently in Detroit, endorsed the Defense Savings
Program by adopting the following resolution:
SALES OF DEFENSE SAVINGS STAMPS for October reached a total of
$5,935,934, establishing the highest monthly total since the Stamps were
placed on sale last May 1, the Treasury Department announced on November
"WHEREAS, the United States Treasury Department has established
the Defense Savings Program as a democratic means of financing
the Nation's tremendous expenditure for defense, and
14. This figure, compared with the $4,978,000 worth of Defense Stamps
sold in September, shows an increase of 19.2 percent. It marks the fourth
straight month that the sale of Stamps has risen.
"WHEREAS, the purchase of these bonds is a patriotic duty in this
period of national emergency, and
first made available, have been as follows (figures rounded to the nearest
MONTHLY SALES of Defense Savings Stamps since May 1, when they were
thousands):
"WHEREAS, the liberal purchase of these bonds by workers consti-
tutes a safeguard against inflation and at the same time provides
a splendid financial backlog for themselves and their families
May
June
against any post-emergency readjustment in a safe and secure
July
August
investment;
September
October
"NOW, THEREFORE, BE IT RESOLVED. That this Convention hereby en-
5,936,000
Total $24,933,000
dorses the Defense Savings Program and urges its affiliated bodies, locals and members, to purchase Defense Savings Bonds.
A breakdown of sales by denominations indicates that approximately
21,385,000 separate stamps were sold during October, with the 25 denomi-
UPON BEING INFORMED of this action, Secretary Morgenthau wired a
nation leading all others and accounting for 14,406,000 sales. Approxinately 4,625,650 ten-cent stamps were sold during this month.
message of appreciation to CIO President Philip Murray.
OKLAHOMA TOWN REPORTS EVERY CITIZEN SAVING SYSTEMATICALLY FOR DEFENSE BONDS
OTHER LABOR NEWS:-
ACTIVE ASSISTANCE of the New Jersey State Federation of Labor in the
GENE AUTRY, OKLAHOMA claims the distinction and honor of being the
first incorporated town in the United States to have every citizen pledged
to buy Defense Stamps or Bonds regularly for the duration of the present
]
installation of pay roll allotment plans has been assured as a result of the
adoption by that organization's annual convention of two resolutions. One
endorsed the program in general terms: the other provided for the appointment by the Federation's president of a *Post Defense Security Commission,
which has the duty of:
$3,475,000
2,802,000
3,288,000
4,454,000
4,978,000
emergency.
THIS CARTER COUNTY TOWN of 259 inhabitants, formerly the town of Berwyn,
"Visiting all local unions, to point out the patriotic duty
was officially named "Gene Autry" in honor of its most prominent citizen,
the purchase of United States Defense Bonds."
Phillips was the principal speaker. State Administrator H. C. Jones was
present and received from Mr. Gene Autry the scroll prepared by Louis
Fiechl. Carter County Defense Savings Administrator, bearing the names of
all citizens of the town and their Defense Savings pledges.
of the unions and their members, on a voluntary salary allotment plan, to use part of their weekly surplus earnings for
AN IMPORTANT ACTION was taken recently by the Building Trades Council
of San Francisco when it adopted a resolution placing itself on record as
in favor of systematic savings through pay roll allotment and appointed a
committee to cooperate with San Francisco representatives of the Defense
Savings Staff in promoting widespread participation in allotment plans.
INVESTMENT of $50,000 in Defense Bonds by the International Union,
United Automobile Workers was reported recently by George F. Addes, Secre-
tary-treasurer of the Union.
who has a ranch nearby, at ceremonies on November 16. Governor Leon C.
THE DEFENSE SAVINGS CLUB of the Life Underwriters Association of
Pensacola, Florida has 62 members according to its president, 2. E. Bellah.
Every member is pledged to make regular weekly or monthly payments towards
the purchase of Defense Bonds for the duration of the present emergency.
News Letter
PRIZES. INPREMIUMS
AND COMMISSIONS
DEFENSE SAVINGS BONDS AND STAMPS.
News Letter
PRIZES PREMIUMS
AND COMMISSIONS
IN DEFENSE SAVINGS BONDS AND STAMPS.
(Continued)
Business concerns throughout the nation have keyed their sales and
other contests to the subject which dominates all our thoughts these days
by using Defense Bonds and Stamps instead of cash or merchandise in the
contests which they conduct among their salesmen, other employees, and
Defense Bonds were the awards sought by Underwood-
customers.
Through these contests, the Defense Savings Program and the essential
facts about the Bonds and Stamps are brought to the attention of many persons - the participants in the contests, and a great many others to whom
they explain the contests and the awards.
State and local committee members have done such to promote the use
of Bonds and Stamps as prises and premiums. However, the idea is still
good one and has countless adaptations and applications. Here are a few
examples:-
With a direct appeal to its underwriters to
support the National Defense Program, the General
American Life Insurance Company of St. Louis,
Missouri, conducted in October, a nation-wide sales
contest in honor of its President. All prizes were
in Defense Bonds and Stamps.
Defense Bonds and Stamps are the special awards
sought by the agents of the American Casualty Com-
BUY
DEFENSE BONDS
pany of Reading, Pennsylvania, in its nation-wide
sales campaign which closes January 17, 1942. The
campaign is "dedicated to the National Defense Progran of the United States of America and our belief
won'twin yea e
Defense.Bond
Elliott-Fisher Company branch office employees in the
company's "Minute Man' sales promotion contest. (At
the left, one of the pieces used in this sales competition.) The Stonhard Company of Philadelphia, BASUfacturer of building maintenance materials, has been
awarding Defense Bonds in various sales contests.
Assistant Sales Manager J. H. Dooley reports: "Our
salesmen value the bonds more highly than cash or ner-
Route salesmen of the Carolina Baking Company of Columchandise prises"
bia, South Carolina are awarded Defense Stamps for effecting
economies,
Special merit awards for good sales
safety records, and increased sales.
records are now made in Defense Stamps instead of cash by the Auto-Soler Com-
party of Atlanta. The Piers-Tucker Bag Company of Washington, D. C., offers commissions to its agents, either in Defense Bonds or cash, a $25
Bondand
Reily
being earned by selling $100 worth of merchandise. William
B.
Company of New Orleans gives a ten-cent Defense Stamp with every purchase of
three pounds of its Luzianne Coffee and 25-cent Defense Stamps to salesmen
for selling 100 pounds of this product.
Defense Bonds and Stamps, were among the awards for which Sears, Roebuck & Company employees competed in a company-sponsored "Supply Savings
Contest. Contestants turned in suggestions on how to save paper, metal,
and fabrics.
The Arkansas and Missouri Power
Corporation is paying all prises and commissions
earned by its employees in Defense Bonds and
Stamps. In the current "Beat the Promise"
campaign of the R. C. A. Manufacturing Company.
that every citizen and business firm should contribute
their utmost. both financially and morally to the maintenance of our Democratic Way of Life."
in which all departments of this large organisation are striving to exceed their production
The special awards in the "President's Month sales contest of the
Beneficial Life Insurance Company of Salt Lake City, Utah, were in Defense
Stamps are awarded as prises. The Prime
Bonds and Stamps. $100 Bonds were given to every salesman who wrote $85,000
keys, traditional Thanksgiving Day gifts.
worth of insurance during the contest period.
Defense Bonds were avarded top-notch underwriters - members of the
President's Club - of the Great Southern Life Insurance Company at its
annual sessions in Houston. The American Fire and Casualty Company, Orlando, Florida, gave $90 worth of Defense Stamps as extra prises in one of
its salesmen's contests this fall. A plan to award Defense Bonds and
Stamps in recognition of field organisation work has been adopted by the
Pacific Mutual Life Insurance Company. Defense Bonds were announced as
prises in the fall "Victory Drive" of the Mutual Life Insurance Company of
Columbus, Ohio.
FOR
DEFENSE
quotas and produce equipment ordered by the Army
and Navy ahead of schedule, Defense Bonds and
Tan-
ning Company of Berwick, Maine gave each of its
175 employees $25 Defense Bonds instead of turTen $25 Defense Bonds were awarded by the Down-
town Merchants of Jersey City during the five shopping days just prior to
Thanksgiving, instead of the customary turkeys.
The Quality Service Food Stores of Atlanta offer their customers a
Coupons pack10-cent Defense Stamp for every 10 wrappers from ABC bread
aged with Crescent Coffee are redeemed by the Crescent Manufacturing Company
of Seattle, Washington, in Defense Stamps - ten coupons being exchangeable for
two 25-cent stamps.
News Letter
News Letter
SCHOOLS
IN THE SCHOOLS
Public-spirited Clubwoman Launches Successful School Program in Akron
Teachers' Magasines (Continued)
1
One way to get a Defense Savings Program started in a city school
system has been recently demonstrated in Akron, Ohio. In September, not
stamp was being sold in the public schools, Early last month, the city's
40,000 school children were buying $3,500 worth of stamps each week, and
school
officialsstamp
expected
the total
of
one 10-cent
for each
child.to reach $4,000 before long-an average
Best display was that of the Oklahoma
Teacher, which devoted its November cover to
Defense Savings (see out). The lead story in
the magasine urged schools to get busy with
their programs. It is the second article on
this subject that the Oklahoma Teacher has
published this year. The author was Paul R.
Taylor, Superintendent of EL Reno City Schools
and Chairman of the Education Division of the
noticed with some dismay that
Some of the other teachers' magnines that
have recently published articles on Defense Savings include: The Sierra Edunational News (California), The Journal of the Florida Education Association.
Georgia Education Journal, Idaho Journal of Education, Midland Schools (Iowa),
Oklahona Defense Savings Committee.
]
while Defense Savings Stamps were
being sold in banks, postoffices
and many stores, they were not on
sale in the schools--the most
convenient places for children
Kansas Teacher, Maine Teachers' Digest, Massachusetts Teacher, New Mexico
School Review, Oregon Education Journal, Pennsylvania School Journal, Utah
Educational Review and the Wisconsin Journal of Education.
to buy.
buy themselves a share in America from
Mrs. E. M. Mink, who is in charge of the
school's Stamp Sales booth. The children
are Shirley Helm, Jaqueline Peck and
Wayne Jones.
TEACHER
How it happened is a onewoman story. The woman is Mrs.
Ray Fair, an Akron clubwoman
and enthusiastic Home and School
League member. When school
started this Fall, Mrs. Fair
AT MASON SCHOOL in Akron, three pupils
OKLAHOMA
full page displays to these articles.
So Mrs. Fair got busy. In
a short time, she had worked out
a plan, and had gotten it approved by city school executives,
o
A new article for teachers' magasines describing the SHARING AMERICA
program outlined briefly in last week's NEWS LETTER is now being prepared
by the Defense Savings Staff.
Postmaster Pat Webb and President
C. W. Enyart, of the First Cantral Trust Company. The plan
vas this:
Here and There
Junior high schools are among the most active participants in the Dofense Savings Program. For example: At Joe Brown Junior High in Atlanta,
Georgia. 30 ninth-grade boys and girls go into classrooms every morning
The Bank would buy the 10,
25 and 50-cent stamps in quantity from the Postoffice, and distribute them
to schools in amounts determined by each principal. The schools would not
have to put up money in advance, but would return proceeds of the sale to
the bank. Stamps would be sold in the schools each Tuesday by special committees from the various Home and School Leagues.
collecting orders for Stamps, which they later deliver. At Checktowage
District School No. 3. near Buffalo, New York, a committee of three eighthgraders handle all Stamp sales. At Caroline High School in Denton.
Maryland, the ninth grade mathematics
class introduced Defense Savings to
each class, then took charge of sell-
Mrs. Fair started the program with a week of public education. The
first Defense Stamp Tuesday brought in $1,100, the second netted $2,500,
ing the Stamps.
the third $3,000 and the fourth $3,500. Hats off to Mrs. Fair and the
Grade school children are
enthusiastic stamp purchasers. The
mothers of Akron who are cooperating with her on this program!
picture at the left shows a delegation from a Safety Harbor Florida
school marching to the airs of a
Teachers' Magazines Spread the Message of Defense Savings
]
During the past three months, state teachers' magasines throughout the
country have been publishing articles on Defense Savings prepared by the Dofense Savings Staff or written by local educators. Most of the magasines.
which are official publications of state teachers' associations, have given
Boy Scout Band on the way to the
postoffice to buy their stamps.
News Letter
News Letter
TO THE LADIES
TO THE LADINS
District of Columbia Women's Division Active
The Washington Club (Continued)
1
Savings program, arranged by Mrs. Frank Bunker, a member of the club's
governing board. Ten board members each gave a 2-minute talk on some
phase of Defense Savings. Two members read parts of "We Gale Have To
Stick Together," entitling their presentations, "Liberty and Women's
Job in Preserving It." Next, three members stood together and each
COOPERATION with the U. S. Office of Civilian Defense during Civilian
Defense Week, promotion of the idea of giving Defense Bonds and Stamps as
Christmas gifts, and assistance to a wide variety of women's clube in
ing special programs on the subject of Defense Savings are some of the stag- activities being developed under the auspices of the Women's Division Commit.
tee of the Defense Savings Committee for the District of Columbia.
read a part of Eva Curie's pamphlet, "It Is Not Too Late." After they
had finished this reading. one said, "It is too late for France": the
next "for Poland": the third "for Belgium": and so on in rotation,
naming all of the subjugated countries. Then, as a climax, they all
three repeated in unison: "But if we save a dine a day, it is not too
late for the U. S. A."
DURING CIVILIAN DEFENSE REEX, Defense Savings Stamp booths were set up
at two Washington high schools - Dunbar and Woodrow Wilson - and at both of
these schools the Defense Savings film "America Preferred" was shown. In
letter from the Office of Civilian Defense, the thanks of Mrs. Franklin D.
Roosevelt
ing in this were
way. extended to the D. C. Defense Savings Committee for co-operat-
THE MEETING OF THE HEADS of the leading women's organisations in the
District of Columbia called by the Women's Division Committee (reported in
the NEWS LETTER, November 22) continues to bear fruit. In addition to the
results previously reported, two additional organizations have been stimulated by this meeting into effective activity on behalf of Defense Savings
objectives.
The Washington Club, a 50-year-old women's organisation, devoted
its Annual Fall Meeting in November to an unusually dramatic Defense
1
"We have received many comments from both students and members
of the community on their interest in the Defense Savings Program," the letter continued, "and we hope that your excellent
exhibit will stimulate more buying and more awareness of the vital part which your program is playing in National Defense."
In other talks, based on the Secretary's speech "The Fight Against
Inflation, and other official publications, the objectives and methods
of the Defense Savings Program were outlined. The program was interspersed by the singing of patriotic songs. At its conclusion, the club
members voted enthusiastically to endorse the government's Defense San
ings Program, to invest club funds in Defense Bonds, and to have Defense Stamps on sale at every meeting and program of the Club. As the
members left the meeting, each one was given a kit containing the five
pamphlets issued by the Defense Savings Staff which had provided the
basis for the program.
The League of Women Voters in the District will include Defense
Savings in its study program. At its most recent meeting, copies of
"We Gale" were distributed to its members.
COLLEGE ALIMEAR CLUBS AND SORORITY ALUMNAE GROUPS in the District have
shown genuine interest in Defense Savings. Letters from the Women's Division
Committee to the presidents of these numerous organizations have brought a
gratifying response and already many of them have made arrangements to
devote attention to Defense Savings at their meetings.
MEMBERS OF THE D. C. WOMEN'S DIVISION COMMITTEE meet to discuss plans. From
left to right: Mrs.
Wilson Compton, Mrs.
Food for Thought
Henry A. Wallace,
Mrs. Daniel W. Bell,
Mrs. Raymond Clapper,
Mrs. Curtis Shears,
Mrs. John Jay O'Con-
nor, and Mrs. Harry
S. Bernton. The
eighth member of this
committee is Mrs.
Harlan Fiske Stone.
To call attention to the Defense Savings Program, the Minneapolis
Star Journal is running a series of statements on Defense Savings by prominent local women. In a recent issue, Mrs. L. R. Uphan, President of the
Minnesota Federation of Women's Clubs, said:
"My husband and I see Defense Savings Bonds as a way of
providing ourselves with an annuity. Every month we buy
a bond for $37.50 from our bank; 10 years from now we shall
receive $50 a month as each bond falls due. We can support
National Defense and at the same time make our own future
more secure.
10.
11
News Letter
News Letter
FIELD ORGAHIZATION NEWS
FIELD ORGANILATION NEVS
Leaders Appointed In Six States: Reports And Highlights From Many States
APPOINTMENT of an Honorary Chairman, a Chairman and four State Admin-
Reports and Highlights of Recent Developments (Continued)
istrators during the past ten days nearly completes the rosters of these
leaders
for the 52 divisions of our Field Staff.
The Arkaneas State Teachers Association has pledged the cooperation of
its members in promoting Defense Savings in the schools. Virtually every
school in the state is understood to have Defense Stamps on sale. The
Kappa Kappa Game sorority at the University of Arkansas staged a "dinnerdapce-for-defense." Defense Stamp albume containing the first stamps toward
Defense Bonds were favors. First owner of a Defense Bond in Rison vas a
10-year-old girl, little Miss Peggy Thomasson.
THE NEWLY APPOINTED Honorary Chairman is Governor George A. Wilson of
Iowa. The newly appointed State Chairman is Ernest Clayton. president of
the Industrial Trust Company of Providence, Rhode Island.
FOUR ADDITIONAL STATE ADMINISTRATORS can be introduced to "reteran"
members of the Field Staff at this time: Walter N. Ruth. who will serve
in this capacity for the State of Maryland; William J. Starr, Jr.. a Man-
CALIFORNIA. *Pershing Square" in the heart of downtown Los Angeles
chester attorney, who has been appointed State Administrator for New Hamp=
shire; R. R. Wolfer, chairman of the board of the National Bank of Jamestown, who has been appointed State Administrator for North Dakota; and
Charles A, Christopherson, president of the Union Savings Bank of Sioux
will be the site of the "Defense House" which opens there for a six-weeks
"run" on December 1.
Falls, a dollar-a-year man who will serve as State Administrator for South
1
Dakota.
WITH THESE APPOINTMENTS, there are 39 Honorary Chairmen; 43 Chairmen;
and 49 State Administrators, one for each of the field divisions, with the
exception of Delaware, Kentucky and Nebraska.
,
Reports and Highlights of Recent Developments:
ARKANSAS. In a recent statement, Governor Homer M. Adkins urged the
purchase of Defense Savings Bonds and Stamps.
"Since Arkansas is industrially benefitting very materially
by the Defense Program, the Governor said, #let us all
respond to the government's call by buying Defense Savings
Bonds and Stamps in a generous manner."
State Administrator Roy G. Paschal, Deputy Administrator C. K. Wilkerson, and J. G. Burlingame, prominent business man and civic worker, discussed Arkansas part in the Defense Savings Program in a 15-minute round
table radio broadcast recently. The program was transcribed and the transcription is being sent to every radio station in Arkansas.
GEORGIA. Chairmen and committee members from counties in the sixth
and eighth Congressional Districts net in meetings held recently in Macon
and Waycross. U. S. Senator Richard B. Russell, Jray addressed the meeting
in Macon. State Chairman Arthur Lucas, State Administrator Marion H. Allen
and Deputy Administrator Arthur Cheathan attended and spoke at both neetMargaret Mitchell. author of "Gone With The Wind," and resident
ings.
of Atlanta, was photographed recently with State Administrator Allen as she
released a statement reading:
"Whether we go into var or not, we must be prepared for
var. If I can help by buying Defense Bonds, I an
glad to do so.
is estimated
that more
Georgians plan.
are now
Stamps saving were for DefenseIt Bonds
through
thethan
pay60.000
roll allotment
Defense
prizes in the Atlanta Bureau of Fire Prevention's poster contest.
IDAHO. First of the America Speake" programs
arranged by Deputy Administrator John Churchill was held
in Moscow, on the evening of November 11. Theme of Mr.
Churchill's dramatically effective address -which is to
be presented during the next few weeks in every city in
the state-is a graphic description of the blessings and
privileges of the American way of life. At the conclusion of his talk, be introduces the members of the local
*
*
TONIGHT
"AMERICA
SPEAKS'
PATRETIC
MAIN
The "group agent" bond and stamp purchase plan is being placed in
operation for the benefit of State Government employees. Deputy Administre-
Defense Savings Committee with the aid of a specially
constructed lighted display piece, which shows the role
or function of each member and emphasizes the committee's
Rallies to stimulate interest in the sale of Defense Bonds and Stamps
have been held in Paris and Stuttgart (Arkansas).
known meeting of any kind of importance within the state
has failed to have some representative of the Defense
Savings Program as a speaker. Local chairmen have
been asked by Administrator John R. Viley to reply to a
brief seven-point questionnaire on the activities of their committees.
tor C. K. Wilkerson outlined the plan recently to heads of all State Departments, at a meeting in the House Chamber at the Capitol.
12
representative character. It is reported that no
13
News Letter
FIELD ORGANIEATION HAVE
News Letter
FIELD ORGABIZATION LEVS
Reports and Highlights of Recent Developments (Continued)
Massachusette (Continued)
ILLINOIS. Six specially decorated Seeburg Automatic Phonographs have
been placed at the disposal of the Illinois State Headquarters for use in
plugging the song "Any Bonds Today!". In the picture at the left, one of
these phonographs is "on duty" at the LaSalle
Street Station in Chicago. The attendants are
three girls from the office of State Administrator Norman 3. Collins, who of their own volition
and without the knowledge of the Administrator
or his deputies, devoted one entire week-end-
Club.
Defense Stamps are prises at the card parties of the Chathan Woman's
"Mim Emerson College Freshman for 1942* received as a prise a
$25 Defense Bond.
MINNESOTA. Every one of the 50 members of the Defense Savings Commit-
for Rice County. Mianesota, has invested in at least one Defense Bond
and has pledged himself or herself to buy additional bonds at regular
tee
intervals. L. E. Chappuie of Fairbault, is the chairman. He and his
colleagues believe in practicing what they preach!
Saturday afternoon and evening and all day Sun-
day to attending the stamp booth located just be
side the patriotically decorated phonograph which
plays "Any Bonds Today1," for all those who purchase stamps. Their efforte netted Uncle San
about $350.
We would be glad to have similar
reports from other committees.
MISSOURI. The Committee for Metropolitan St. Louis has arranged for
every filling station in the city and county to display appropriate Defense Savings posters and to place Defense Savings Stamps on sale.
KANSAS. Investment of $50,000 in Defense
Bonds by the Kansas School Fund Commission was
the action taken by this group of school offi-
cials to signify endorsement of the Defense Sayings Program and to encourage school children to participate by saving for
NEW JERSEY. Local outdoor advertisers are making an important contri-
bution to the Program, particularly in northern counties. Pictured below
are a few of the outdoor displays which have been donated by their owners
to the promotion of the sale of Defense Bonds and Stamps.
Defense Stamps and Bonds. One of the first industries in the State to
report one hundred per cent employee participation in a pay roll allotment
plan was the Kornblum Packing Company of Kansas City, Kansas. Buck Jones.
movie star, autographed Defense Savings Stamp Albuma for his fans when ha
made a personal appearance recently in Atchinson. Kansas, at the suggestion
of Carl G. Klostermeier, Chairman of the Defense Bond Committee of the
Atchinson Junior Chamber of Commerce.
Armistice Day ceremonies in Leavenworth were in charge of William D.
Reilly, the active chairman of the Leavenworth Defense Savings Committee.
Many marchers in the parade carried Minute Man Posters.
KESTUCKY. A special effort to sell Defense Stamps vas made in Louisville on November 7 and 8, under the auspices of the Market Street RetailAssociation. Army equipment from Fort Knox, gaily decorated booths,
window displays, and a parade with several bands helped make the event a
success. Volunteers from the city's leading women's organisations staffed
the stamp booths.
MASSACHUSETTS. Steady progress in presenting the essential facts about
the pay roll allotment plan to employers and employees in the larger factories and businesses in the state is reported by State Administrator
Daniel J. Doherty. In Melrose, the Rotary and Lions Clubs donated $100
each to establish revolving funds to place Defense Stamps on sale in city
Newark
West Orange
Nevark
NORTH CAROLINA. Secretaries of central labor unions in North Carolina have been appointed to membership on the local Defense Savings Commit-
tees in their communities. The City of Greensboro, N.-C., has followed
the lead of the City of Winston-Salem and installed a salary allotment
plan, thus becoming the second city in the state to make this convenient
method of participation available. State Administrator Robertson reports
that many other cities in the state have installation of the plan actively
under consideration.
schools.
15-
News Letter
SYRACUSE BANK LAUNCHES A DEFENSE BOND CLUB
News Letter
ICAGO'S BIGGEST BANK PUSHES SALE OF DEFENSE BONDS
THE AGGRESSIVE SALES PROMOTION PROGRAM adopted by the Continental
THE NEW "DEFENSE BOND CLUB, established by the Onondage County Savings
Bank of Syracuse, New York to help Syracusans participate in the Defense Sayings Program, of ficially got under way November 3 with Mayor Rolland B. Marvin becoming the No. 1 member. The picture below shows Mayor Marvin making
his first payment at the bank's attractively decorated Defense Bond window.
ENDORSEMENTS OF THIS SYSTEMATIC SAVINGS PLAN
have come to Bank President Harold Stone from many
prominent Syracusans. Mayor-elect Thomas E. Kennody wrote:
Illinois National Bank & Trust Company to step up sales of ense Savings
Bonds was outlined in detail in the October 18th issue of the magazine,
"The Commercial West." Here are the fifteen steps which this bank has
taken in connection with the Defense Savings Program:
9. Informative mimeographed bulletins
1. A colorful electric flasher sign, folders, and blotters have been placed on the
defense bond and tax note folders
have been distributed to all officers and
information deak in the entrance lobby:
employee;
2. Eight large signa in red. white, and
blue have been placed in conspleuous
"With millions of Americans already making
great sacrifices for America's preparedness,
it seams a little thing to ask that everyone
take the trouble to make a personal investment which will provide money for the defense
effort. But no matter how good our intentions,
most of us are procrastinators by nature. The
is prepared to open and maintain club accounts by mail in order to make
this savings plan as convenient as possible.
"We share the government's belief that these bonds are best purchased
out of income, President Stone is quoted as saying. "If this method
is followed, the government will not only receive the necessary funds
for building tanks, guns, planes, and all other weapons we stand in
need of, but each bondholder will be building up for himself a reserve
fund which will stand him and the country in good stead when the United
States returns again to a peacetime economy.
tion about and selling bonds notes, and
stamps;
emmercial department;
dows have been provided, an informa-
in the city, urging their co-operation. The bank has indicated that it
has been mimeographed and supplied to
all personnel engaged in giving informa-
formation facilities have been provided in
the government securities division in the
tion booth, suitably decorated, has been
OF THE BANK'S OWN STAFF, 68 strong, practically all have joined the
Club; and letters describing the club plan have been sent by the bank to
all manufacturers, retailers, and other employers of 50 or more persons
sheets) about defense bonds and tax notes
A separate sales window and in-
solution. The important thing for many people
is to get started. Once started, I - sure
bonds, tax notes, and stamps:
11. A list of questions and answers (10
3. About 50 signs have been placed on
counters throughout the bank and its all.
listed safe deposit company;
Defense Bond Club of the Onondaga County Savingo Bank seems to me to offer an excellent
they will continue their weekly deposits."
10. More than 40 mm have been in.
structed and trabed in selling defense
floor locations within the bank;
12 The bank has made available to its
personnel a plan whereby regular de-
5. Five specially illuminated sales win-
ductions from salaries are made to apply
on the purchase of bonds and tax notes:
18. The bank's statement of condition
booklets carry the American Bankers As
sociation's defense bond cut on the back
erected, and six application desks have
been placed adjacent to the booth- all in
the savings department;
cover:
6. Defense bond and tax note folders
are kept available on counters and customers' desks throughout the bank and
14. The bank has joined with other
Chicago banks in publishing a series of
four cooperative advertisements In five
Chicago newspapers over . period of 20
its affiliated safe deposit company:
7. A defense bond blotter has been
weeks;
given to each savings department cus-
tomer making a deposit or withdrawal
15 Photographs have been made of the
bank's defense savings bond booth for re-
since July 1;
lease to various bank journals
8. A defense bond blotter one month,
and . tax note folder another month have
been enclosed with statements to mercial customers;
"MAKE THIS A MERRY AMERICAN CHRISTMAS*
Illustrated at the right is the specially designed "gift wrapper for Defense Bonds which has
been made available to bankers by the American Bank-
BONDS FOR THE VERY. VERY YOUNG
New arrivals in the homes of employees of Salkin and Linoff, Inc. of
Minnespolis, Minnesota now receive birthday greetings in the form of $25
Defense Bonds. Thirty-seven Bonds have so far thus been issued, according
to Samuel Salkin, head of the firm. The company operates a chain of stores
in the Northwest and is co-operating in other ways with the Defense Savings
Program.
Association. The association has also prepared
a new folder describing Defense Bonds, with the
same cut of "Santa" on the cover.
Thus the splendid cooperation being extended
to our program by bankers in all parts of the
country continues, much to the satisfaction of
the Defense Savings Staff.
17
16
News Letter
News Letter
ODDS AND ENDS
ON THE AIR
Local Bond Buyers Interviewed
Well-known buyers of Defense Bonds are being photographed by the Great
wich Times, Greenwich, Connecticut. Recent issues have contained pictures
and brief statements on Defense Bonds of a policeman, several local
a hotel desk
clerk, a pharmacist, a butcher, and housewife who had recently bankers,
purchased
bonds.
Leading Program for the Coming Week:
"FOR AMERICA WE SING"
Monday, December 1
Dr. Frank Black's Orchestra and Chorus
GUEST STARS: Robert Weede and Elisabeth Lennox, noted
radio and concert artists.
Here
is alike
simple
plan for publicising Defense Savings which other
papers
might
to use.
WILLIONS FOR DEFENSE"
Tuesday, December 2
College Alumni Association Helpe
Villanova College in Pennsylvania
joins the growing number of colleges
and universities which are finding
effective ways to boost the Defense
Savings Program. The cover of the
October issue of the Alumni Magasine
featured the Minute Man and carried a
two page article on the purposes and
aims of the Defense Savings Program.
*Gee! Come over every night-I's
saving to buy Defense Bondi*
8:00-9:00 PM (EST)
NBC Blue Network
THE TREASURY HOUR:
Variety program with leading
entertainers of stage, screen
and radio.
Thursday, December 4
"AMERICA PREFERRED
9:00-10:00 PM (EST)
Mutual Network
Alfred Wallenstein's Orchestra; Deems Taylor Commentator
GUEST STAR: Lauritz Melchior, Wagnerian tenor of the
Metropolitan Opera Company.
Saturday, December 6
The Alumni Association is also
THE TREASURY CONCERT"
9:30-10:30 PM (EST)
NBC Blue Network
The first of two special Saturday night concerts by the
suggesting that gifts to the college
NBC Symphony Orchestra conducted by Arturo Toscanini.
be made in the form of Defense Bonds
(Series F or G) registered in the
name of the Alumni Fund.
9:30-10:00 PM (EST)
NBC Hlue Network
off The Record. by #4 Reed
A New Use For Defense Stamps
On this program, radio listeners will be thrilled to hear the most
popular walts ever written, Johann Straus' "The Beautiful Blue Danube.
Not only has Maestro Toscanini never before played this number over the
radio, but this is the first time in his long career that he has ever in-
"There's a friend of nine who has been drinking quite a lot. wrote a
friend of the Defense Savings Program. "The other day when be bought no a
drink,
from his pocket a $50 Defense Bond Album and carefully checked off he
twotook
blanks.
"I asked him what that was for.
cluded it on one of his programs.
Other selections on this program are Beethoven's Septet in E Flat
Major and the Good Friday Spell from Wagner's "Parsifal."
Secretary Morgenthau will inaugurate the series with a brief introductory talk from the concert platform.
"oh," said he, 'every time I take a drink, I penalise myself fifty
cents. The next time I'm near a post office, I'm honor bound to fill out
the marked squares. I've already put one bond away, and this one is well
on its way. My kids get the bonds.
Moratorium on Autographs
think "When
twice. you know that even a free drink is going to cost 50 you
Bud Abbott and Lou Costello, movie and radio comedians, have suggested
that stars of the entertainment world declare & moratorium on autographs and
henceforth give their signatures only if the autograph hunters purchase Do-
"It's not a bad idea. I've started it myself."
fense Stamps.
Many stars on personal appearance tours have already adopted this practice. Chairmen of Publicity Divisions of local committees may want to take
this up with managers of their local theatres.
18 -
-19
News Letter
INDIANS INVEST COMPENSATION IN DEFENSE BONDS
"TALLEST SIGN" HAS
DEFENSE BOND AD
Above are the Caconcito Navajos who invested
$6500 in Defense Bonds out of the $17,000
awarded to them as the result of a trainschool bus crash. The Indians live near
Albuquerque, New Mexico.
KEEP 'EM PATROLLING
Spectacular display on the
the site
of the new home of the Minne-
Building, tower of the which Savage marks Exposition
apolis Coca Cola Bottling
Company.
This billboard on U. S. Route 1 features the destroyer Drayton, which
was built at the Iron Works in
STAMPS ON LUNCHEON CLUB'S MENU!
Bath, Maine. It is one of three
billboards donated to Defense
Savings by Columbia Markets
of Portland, Maine.
Scene at one of the regular weekly meetings of the Leesburg
Lions' Club where Defense Stamps
are regularly on sale. The club
was the first in Florida to report all of its members buying
Stamps each week.
U.S. GOVERNMENT PRINTING OFFICE
- 20 -
309
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE November 28, 1941.
TO
FROM
SECRETARY MORGENTHAU
E. H. Foley, Jr.
Here are the facts in the Guex tax matter:
1. The McKesson and Robbins Trustee in Bankruptcy
has impounded through court order proceeds of the insurance
policies payable to Marie Girard of Fairfield, Connecticut
(sister of F. D. Coster) on the ground that the premiums
were paid by Coster with stolen funds. I should think if
the total premiums were turned over to the Trustee by
Mrs. Girard the Trustee would be willing to release the
policies. This is a matter over which we have no control.
It is true that we have a jeopardy assessment against the
proceeds of the policies in connection with our tax claim
but even if we released this it would not result in payment
of the proceeds to Mrs. Girard.
2. There is an action pending before the Board of Tax
Appeals arising out of failure to disclose certain capital
gains in connection with stock transactions carried on by
Coster in the name of Mrs. Girard. We are claiming a tax
(including fraud penalty) of $108,000. The transactions
occurred in 1928, 1929, and 1932. The Statute of Limitations
has barred the action unless we are able to impute fraud to
Mrs. Girard. Clearly, there is fraud on the part of Coster.
Whether or not we will be able to attribute this to Mrs. Girard
is another matter. Mrs. Girard is represented by Mr. Koerner,
formerly Chairman of the Board of Tax Appeals, and Mr. Blair,
formerly Commissioner of Internal Revenue. Counsel for Mrs.
Girard have not been near Treasury representatives in the
New York office for over a year. Any disposition on the part
of counsel to negotiate a settlement might result in a mutually
satisfactory compromise arrangement.
8.107L
310
TREASURY DEPARTMENT
PROCUREMENT DIVISION
OFFICE OF THE DIRECTOR
WASHINGTON November 29, 1941
MEMORANDUM TO THE SEGRETARY:
With reference to your memorandum of November 27, 1941, you
are advised that a study has been initiated relative to costs and
prices in the steel industry and you will be currently informed as
to its progress.
With regard to the general problem of purchasing the present
situation may be covered under two categories, namely, those commodities subject to allocation by the Office of Production Management and those not subject to allocation.
Those items subject to allocation are, as you know, certain
raw materials, and of these our substantial purchases have been pri-
marily in the field of ferrous and non-ferrous metals. In the case
of these critical materials, where allocation is made by the Office
of Production Management to specific suppliers our procedure is to
egotiate with the suppliers for the best price commensurate with
the overall market situation. It is true that the allocation to a
particular supplier by the Office of Production Management to furnish a critical material precludes competition, however, in general,
prices paid by the Procurement Division for semi-finished steel products are $3.59 per ton less than the price limitations established
by the Office of Price Administration. Copper is being purchased for
$4.10 a ton and tinplate for $1.80 per ton less, respectively, than
established ceiling prices. Zinc is being purchased at prices as
established by the Office of Price Administration and not in excess
of published trade prices.
With respect to commodities not subject to allocation, competition is obtained through established statutory procedure or negotiation depending upon the facts in each case. In no case have
prices paid been in excess of established ceiling, while in many
cases they are below the ceilings, and almost invariably below published trade prices.
Constant effort is being devoted to the problem of antici-
pating requirements, consolidating purchases, broadening sources of
supply, simplifying specifications by eliminating non-essential items,
all of which, of course, have a definite bearing on the price situaion.
Clifton E. Mack,
Director of Procurement
CAR
311
MEMORANDUM FOR THE SECRETARY
November 28, 1941.
Mail Report
The subject of taxation still leads all others in
the comment mail received. Specific mention of Social
Security taxes has practically ceased, and mention of the
15% payroll idea has substantially fallen off. General
tax comment continues to be very heavy, and we have just
one letter supporting the idea of heavy new taxes to ninety
protests. In all, the tax mail has totalled around 500
letters during the week.
Anti-labor letters and those urging the restriction
of strikes have also somewhat fallen off, only 11 having
come in during the week. There are 5 ati-British to
2 anti-Russian letters.
Endorsements of the Secretary's statement for Government economy have come in every day, and include a number
of resolutions by business associations, etc.
The abusive mail has been directed largely against
the Administration in general, and has numbered 6 anonymous
to 1 signed. There have been only 3 such letters abusive
of the Secretary, and 1 of the President during the week.
16 more letters commenting on the Grange speech have
been received, and in the main, are favorable, although
the phrase, "Charity begins at home," occurs in a number of
them which then relate the difficulty the writer has in
feeding a family on the present income.
When it comes to ideas in regard to taxation, the
usual suggestions are still to the fore. Those include
sales tax, lotteries, inheritance taxes, tax on all sorts
of amusements, and slot machines, etc.
There is also a small but steady demand for the exemption
of doctors' and hospital bills, and there have been more
312
-2Memorandum for the Secretary.
November 28, 1941.
letters asking for old age assistance than we have seen
for some time. In many cases, these writers have small
pensions or very limited incomes which, if taxed, would
work a great hardship on the individual.
The new automobile tax has elicited quite a few
letters. There were 4 criticizing the Polk contract, and
others speaking of the difficulty of collecting the tax,
asking jobs, and making suggestions as to methods of getting in the money.
1-
313
GENERAL COMMENTS
Frank R. Pentlarge, (Lawyer), N. Y. C. The efforts of the
very small corporation involved to free itself from an absolutely unjust blocking of its accounts is almost pathetic.
Its very existence has been jeopardized through a delay
since August last of any action being taken by your Department. " * * Every effort has been made since August 1st to
have this matter given consideration. The writer has even
taken a trip to Washington to see what could be done, even
though as was heretofore explained, trips to Washington by
attorneys are beyond the financial resources of the concern
involved. It is handicapped in that it is unable to incur
large expense in obtaining its rights, and must rely on the
integrity and fairness of the Treasury Department in receiv-
ing proper consideration. If there is any reason why this
corporation should have its finances blocked, then in all
fairness to it, such reason as you think you have should be
fully and fairly stated with an opportunity for a hearing.
American citizens have a right, it is believed, to the open,
American way of dealing to which we have been accustomed in
the past. We ask on behalf of our client prompt considera-
tion with an opportunity of knowing the full details, if any,
attitude, with a further opportunity of presenting the
corporation's side of the case. (Letter referred to Foreign
why the request should not be granted, if you take such an
Funds Control.)
Warren A. Seavey, Cambridge, Mass. (Harvard Law School)
In the Pacific there are now immobilized large English and
Russian forces. There lies also a large part of our American
naval strength. If the Japanese menace can be removed, these
forces will be available for vital use elsewhere. The Japanese evidently cannot be removed until Japan's military
strength is broken. This can be done by China if given intensive aid, or through more direct methods. The destruction
of Japanese power can be undertaken with a minimum of risk and
without use of the draft Army. It is the most effective blow
against the Axis which the United States can now deliver
without a declaration of war. Further, many Americans who
are opposed to action in the Atlantic would welcome activity of
against Japan. # * I urge your earnest consideration
this suggestion.
-2-
314
Hobart Huson, Refugio, Tex. (Telegram) Re defense industry
strikes, why not freeze assets and bank deposits of offending
Unions same as done in cases other enemies of the U. S.?
Also suggest an organization of volunteers to be known as
Loyal Labor Battalion composed of platoons of skilled workers
of same craft or skill, to be a civilian organization, but
entitled to same rights after completion of service as military veterans. The various platoons to be sent wherever
needed to take place of strikers or speed up defense work under protestion of the Army.
Congressman James A. Shanley forwards a letter from G. F.
Stoeher, New Haven, Conn., which says in part - The follow-
ing plan is to raise money for the defense of the U. S. of
America. I think a law should be passed compelling the
people of the country to save a certain percentage of their
weekly wages, or personal incomes. It could be 15, 20 or
25 per cent - whatever the Government thinks best. These
savings accounts could be called Defense Savings Accounts
and would be available to the U. S. Government alone.
They should be made in any bank in which savings accounts
are insured, and in order to keep a check to see if everyone
is depositing the proper amount, the deductions could be
made and deposited by the employer.
Frederick L. Kahn, Chicago, Ill. To simplify income tax
payments and collections from millions of small taxpayers
of $25 or less, why not permit the use of Defense Savings
Stamps, and accept books with such stamps in lieu of cash
payments? Also, in order to encourage full payments of
taxes on March 15, and to save the tremendous clerical expense of sending statements on the small balances otherwise
due, allow a discount for those amounts that would otherwise
be due in June, Sept. and Dec., if paid on March 15. This
should be on the same basis as the rate of interest on the
small tax savings notes so that very small taxpayers will
get the same benefits as those buying such notes now.
-3-
315
FAVORABLE Comments on Taxes
K. B. Walton, President, Kents Restaurant & Baking Co.,
Atlantic City, N. J. It is a welcome relief to see in
this morning's paper the report that you in the Treasury
have now turned to a more common sense path of wartime
taxation. I refer to the report that you are now proposing higher excise levies on consumers' durable goods,
competing with defense articles for critical matters.
Surely, this is the soundest and wisest plan for any
additional taxation which may be needed. It taxes those
who can afford to spend for items which most people can
do without. # # # This proposal from your Department
really meets the needs of the day and is infinitely to
be preferred to the alarming proposals for 5% to 15% pay-
roll taxes on ALL individuals earnings. This latter
would attack many who are earning little if any more as
a result of the defense program. These newer proposals
are also far more for thy of wise statesmanship than the
talk we heard some weeks ago about drastic increases in the
Social Security taxes. We are already having enough dif-
ficulty in carrying that load.
-4-
316
UNFAVORABLE Comments on Taxes
Walter E. Olson, Secretary, Minneapolis Committee for Defense
Savings. The press has been carrying reports of proposed
legislation for the deduction at the source of a payroll tax.
We find that these reports have been embarrassing to us in
our efforts to make a success of selling Defense Bonds and
Stamps. Three months ago, with the cooperation of the
Federal Reserve Bank of the Ninth District, we inaugurated
comprehensive plan for voluntary payroll deductions for
the purchase of United States Defense Savings Bonds.
Employers and employees alike have readily assented to the
plan. Organized labor without a dissenting voice endorsed
a
it and is actively supporting it. At this date,
240
firms with 72,386 employees have pledged in writing their
support to the plan. Many concerns report 100% participation.
* The proposed legislation interferes with our campaign.
"Why buy bonds if we are going to be taxed?" we are asked.
ONE OF OUR CHIEF ARGUMENTS FOR VOLUNTARY PAYROLL DEDUCTIONS
IS TO ESCAPE A COMPULSORY SAVINGS PLAN. The latter may be
the alternative for the voluntary plan, but in our opinion,
such alternative should not be resorted to unless the voluntary
plan fails.
Frank E. Wetzel, N. Y. C. Your typically New Deal folder,
"Know Your Taxes", has been received. I am struck by your
introductory phrase, "Through our Representatives in Congress
we have decided upon an 'all out' Defense Program" and I wish
you would tell me whether you really believe that "our"
representatives have done this or whether it was done, as you
must know, through every sort of pressure from the White House.
(Asks a number of questions on economy, etc.) This letter
is written in the hope that you will be willing to provide a
fairly accurate answer to these questions, for I am still
laboring under the delusion that we are a sovereign people and
not slaves of a foreign power, or a political gang. I recognize
that there is some danger in writing you thus candidly, but I
feel that you ought to know how some of us have reacted to a
continuous program of fraud and deception.
-5-
317
Ensworth Reisner, Pastor, Strathmoor Methodist Church,
Detroit, Mich. A great furore has been aroused in Detroit
over the recent tax on admissions and I believe the matter
is no longer something for only the Bureau of Internal
Revenue, but something which should be brought to your
personal attention, for rightly or wrongly, many churches
feel that a total defense program of the Government is
bringing totalitarianism into America, and if this feeling
spreads, I believe that there is no greater danger that can
come to our Government. A great deal depends upon the interpretation placed upon the recent ten per cent tax law on ad-
missions, dues, fees, etc. Many ministers feel that there is
involved the principle of freedom of religion. The main
means of destruction of religious freedom in Russia was the
taxation of the essential functions of the church. Certainly
the Government should and has the right to tax commercial
enterprises conducted by the church, but as long as there
is freedom of religion, backed by the theory of the separation of church and state, many of us believe that the state
should not tax the essential functions of the church. An
additional difficulty is placed in the way of Methodists.
Our Discipline (official rules) specifically forbids us to
use the agencies of the church in any way to assist in or
promote the preparation for war. This includes financial
involvement specifically. Shall our people obey the Government and be their agents for collecting a tax for war preparation, or shall they obey the rules of the church and the rule
of their own conscience? This is a question which, though
quiescent at the present moment, has serious dangers inherent
in it.
William D. Kizziah, Salisbury, N. C. The man on a small
salary now is barely able to live and there are millions
of them and they have millions of votes that are ready to
break party lines if pushed too hard. They are patriotic
and 100 per cent Americans, and they want to remain that
way. Do not break their backs with income taxes. This war
cannot be paid for overnight. We of the South, are still
paying pensions for Yankee soldiers 76 years after the war.
This present affair cannot be paid for in this generation
without ruin to the American people.
-6-
318
Joseph C. Haus, N. Y. C. The basic idea of increasing
the income tax on those persons whose income has been
doubled or trebled due to national defense spending is
sound, and none can quarrel seriously with it. # # # I
realize that with the tremendous influx of people to
Washington, and with the billions of dollars being appro-
priated daily, it may be difficult for you to realize that
these are really depression years for millions upon millions
of workers. Those of us engaged in businesses not necessary
to national defense are being discharged or receiving salary
cuts because priorities have made it impossible for us to
obtain the materials essential to our business.
-7-
319
FAVORABLE Comments on Bonds
Edward Lindsay, Editor, Decatur Newspapers, Inc., Decatur,
Ill. A Decatur church has accumulated some $19,000 in a
building fund. It has postponed remodelling and additions
it had in mind because of shortage of materials. One member of the committee suggested that the $19,000 be put in
Defense Bonds. The four other members of the committee
were opposed to such action. In voting no, all four recalled that Liberty Bonds bought at $100 during the last
war eventually sold at $82. It seems to me that all of
this adds up to the importance of redirecting the publicity
on Defense Bonds to emphasize the point that funds put into
Defense Bonds cannot shrink, that the U. S. Government
guarantees a return of every cent invested, plus interest
whether the funds are withdrawn at maturity or earlier.
I am sure it would be useful if the President would be
willing to make this guarantee in a radio address, if you
would make it, and if local banks could be persuaded to
make this statement prominently. I am convinced that
$5,000,000 could be transferred from Decatur savings accounts to Defense Bonds if our people could be convinced
on this point. There probably is at least another $1,000,000
in open accounts (like the church fund) also available.
-8-
320
FAVORABLE Comments on Speeches
E. V. Krick, San Francisco, Calif. I am associated with
a bank here in San Francisco, and it was my privilege to
listen to your address at the American Bankers Association
convention. I was particularly struck with the comprehensiveness of your presentation, and wished at that time
that it were possible for some of us in person to give you
our ideas. That, of course, was out of the question. I am
therefore taking this means of sending you an idea that I
have had regarding the subject of taxation. * * * From comments I hear from those with whom I associate, the average
American is perfectly willing to stand his full share of
taxation, provided the application of the tax is equitable,
but I find a good deal of fear among groups of people who
cannot look for any particular increased income. There also
appears to be considerable resentment over the fact that
those who are profiting by the defense program are not, in
the opinion of the first group, carrying their proportionate
share of increased taxation.
Dr. J. W. Hickson, Montreal, has read with much interest and
approval the enlightening address of the Secretary of the
Treasury, Washington, on the Fight Against Inflation, and
thanks him for having sent a copy.
E. Hood Wilkerson, Attorney at Law, Eustis, Florida. The
(inflation) speech is replete with sincerity, honesty, sound
advice to the public, and sincere, honest, wise and efficient
statesmanship and leadership. It should remove all doubts
from one's mind as to the sincerity, efficiency, intelligence,
understanding and high purpose of this Administration to apply
lofty principles of statesmanship and leadership in the
administration of public affairs for the benefit, welfare,
advancement and well-being of every man, woman and child
within the borders of our country. I think that it is one
of the most statesmanlike, far-sighted, understanding and
sound speeches any statesman has ever made in our country.
It certainly set me straight and solid against inflation.
-9-
321
Miss Anna Sinclair, Los Angeles, Calif. I am writing this
on our National Day of Thanksgiving because I am thankful
and also delighted to know that there is a man in one of
the highest offices of the United States who comes out
with a statement, all may read, "That every one 'man, woman
child', the whole world over, should have enough food to
maintain health and morale, also that it is their right so
to have." I think this is the best statement I have heard
for a long time.
Dr. Nathaniel A. Davis, Los Angeles, Calif. This morning
I read in a local newspaper, with deep emotions of satisfaction and joy, that such a statement should have been
made by a Secretary of the Treasury, who is one of my
brethren in faith and race, your outline presented before
the Grange, of essentials in a program for national care
of our citizens and eventually of mankind everywhere. *
Your plan is not a mere theory. It is in no sense hypothetical.
It is SOUND. That which you urge MUST BE DONE and sooner
or later will. May you be able to make it AMERICAN PRACTICE
in your day.
- 10 -
322
UNFAVORABLE Comments on Speeches
Ira Jewell Williams (Lawyer), Philadelphia, Pa. I have
had various communications from you urging support of the
Defense Savings program. We favor all out effort in
support of the Allied cause, which is ours, but we are
suffering deathly discouragement by the pro labor closed
shop policy of the Government, and the antics of the
Frankenstein monster created by the present Administration
and encouraged by it. The best way to fight inflation
is to eliminate so far as possible the causes of inflation.
These include the purchase of gold and silver at fantastic
prices, and to the detriment of the Treasury; the reserved
right further to devalue the gold content of the dollar;
the reserved power to issue $3,000,000,000 of greenbacks,
and the continuance of non-defense spending including the
W.P.A. and the C.C.C. and the like.
W. E. Jeffers, Square Deal Stock & Fruit Farm, Albany, Ohio.
I do not understand how you can expect we people to take
your last statement seriously -- 'That this Administration-will do everything humanly possible to prevent inflation'
when this Administration has continually allowed labor to
compel inflation by unreasonable increase in wages and
organization dues. * * # If labor is allowed to exercise
the desires of human greed (there is no limit to such desires)
and refuses to allow the producers to receive a correspond-
ing increase in price for his products, then the difference
between the high cost for labor and high taxes, and the low
price for products will soon bleed the producer white.
323
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE November 28, 1941
TO
FROM
Ferdinand Kuhn, Jr.
Herbert Merillat
PRESS COMMENT
ON PRICE CONTROL:
SPOTLIGHT ON LABOR
The labor problem still holds the attention of editorial
writers. If the settlement of the captive coal-mine strike brought
a sense of relief to all but bitter enemies of labor, it did not
diminish the demand for laws to prevent strikes in defense industry.
The press can spare only a passing glance at price-control legis-
lation and other domestic issues. Its eyes are fixed firmly on the
coming fortnight, when anti-strike bills will have their day in
Congress.
Some few commentators have come to appreciate the relationship
among strikes, farm demands, tax worries, defense profits, and the
rising cost of living, and have called for an over-all program to
dispel domestic confusion. The vast majority of the press, however,
continues to ride its hobbies one by one. It can demand restrictive
legislation on labor one day -- anti-strike laws, wage freezing,
heavy taxation of low incomes -- and deplore labor unrest and low
national morale the next. It has long assailed the Administration
-2-
324
for failing to take decisive action to check inflation, but
there is seldom a hint in editorial columns that any groups in
Congress other than the farm bloc or friends of labor are blocking
efforts to halt price advances.
The Price-Control Bill
The chaotic situation during the House debate concerning
price-control legislation is reflected in the press. Neither the
Congressional Record nor editorial discussions offer much assistance to the hypothetical average man who seeks a guide through
the maze. The press continues to chastise labor and the farm bloc
as the bad boys who are punching holes in the price-control bill.
Clamoring for a crack-down on these two groups, it virtually ignores
the vital problem of enforcement provisions.
The press discussion all along has been cast in generalities
"over-all price control is the only effective control", "lower
ceilings on farm prices and 'stabilization' of wages are necessary."
The Gore bill has been widely praised as a measure embodying the
Baruch plan, with very little critical analysis of its provisions.
The press is more concerned with the size of the chunk that
should be bitten off than with the strength of the teeth wherewith
to chew it. "Effective" price control to most editorial writers
means "over-all" price control, not price control that can be
-3 -
325
adequately enforced. Should the bill authorize the Price Administrator to buy and sell commodities as a means of stabilizing
prices? Should the bill include a provision for licensing dealers
in commodities, in order to police its price ceilings? These
questions get little attention. News stories note the opposition
of Republicans and some Southern Democrats to these provisions,
but that opposition does not move many editorial writers to comment.
Some few papers -- the Baltimore Sun, the Christian Science
Monitor, the Richmond Times Dispatch, the Washington Post, the
Wall Street Journal -- have discussed the enforcement problems
and have reached varied conclusions. The Wall Street Journal and
Baltimore Sun oppose the licensing provisions, echoing Republican
alarm that they constitute a threat of intolerable regimentation.
"If we cannot have price control without the terrorism of a licensing
system", says the Journal, "we had better get along without it."
To this the Washington Post replies, "It would be absurdly illogical
for Congress to vote billions in support of the President's defense
policies and then refuse to set up an effective system of price
control on the ground that the agents of the President would thereby
acquire too great powers of control."
The Christian Science Monitor, noting the unseemly squabble
among labor, agriculture, and industry, sees in the fight against
-4-
326
the licensing provisions an attempt by industry to hamstring
price control. "The groups in Congress will better serve the
general welfare if they will strive to make price control work
on everybody instead of trying to keep it from working on themselves.
The liberal press is strangely apathetic on the whole question
of price control. The New York Post and PM support the Administra-
tion proposals, but elsewhere there is little comment. Even the
publications of organized labor have let up in their demands for
"effective" price control -- which to them means low ceilings on
food prices with no control of wages. "Labor", the weekly of the
railroad brotherhoods, did, however, applaud the rejection of the
Gore bill as a defeat for those who seek to freeze wages.
It is generally felt that the fight on the House floor will
lead to enactment, for sake of form, of an ineffectual pricecontrol bill, something that can be passed on to the Senate for
shaping up. Therefore, while deploring the spectacle of a fourmonth "study" of price control coming to naught in the House, the
press sees some hope that an effective measure may yet be enacted.
Taxes and Non-defense Spending
Editorial comment on taxes and non-defense spending has
dwindled to almost nothing while the press has concentrated on
the labor problem. Incessant rumors of Treasury tax plans continue
-5-
327
to appear in the news columns, but there is little editorial
discussion. In the field of government economies, there have
been some protests against the Rivers and Harbors appropriation
bill (particularly the St. Lawrence waterway project) and the
proposed veterans' pension bill. There also continues to be a
trickle of praise for Secretary Morgenthau's economy program,
but nothing indicating real or widespread interest in the subject.
328
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE November 28, 1941
TO
Ferdinand Kuhn, Jr.
FROM Alan Barth
EDITORIAL OPINION
ON FOREIGN AFFAIRS:
EYES ON THE ORIENT
Readiness
The prevailing editorial attitude toward Japan is one of
extreme exasperation. The press is prepared, and is striving to
prepare the public, for American shooting in the Far East.
Only a vigorously interventionist minority of American newspapers actually desires a war with Japan. But a heavy majority
of newspapers prefers war to any American "appeasement" of the
Japanese. There are few signs of dismay over the intimation that
talks with Japan's envoys have broken down; on the contrary, the
feeling commonly expressed is one of great relief that the United
States maintained a position of unqualified firmness.
For some time the press has been uneasy about the negotiations
with Mr. Kurusu. It saw no basis for a settlement between the two
countries, save through retreat by one or the other. Many commentators were apprehensive that the United States might do the re-
treating -- at the expense of China. The State Department's
-2-
329
declaration of American principles quieted most of these fears.
Every sign that there will be no yielding on this side is warmly
welcomed.
In the judgment of virtually all American editorial writers,
this country has exhibited a high degree of tolerance and patience
in dealing with Japan. The truculent tone taken lately by the
Japanese Foreign Office has, therefore, inflamed a long-smouldering
hostility. Behind this anger is a candid contempt for the Japanese,
a conviction that they could readily be defeated by the combined
American, British, Chinese, Dutch and Russian forces.
The Atlanta Constitution declares that there is practically
no public or congressional opposition in this country to a declaration of war against Japan. "From time immemorial", it states
editorially, "Americans are not the people to calmly and abjectly
accept a 'dare' from any nation. Japan should learn that fact and
trim its so-called diplomacy accordingly
Americans, right-
fully, feel that if ultimatums are to be sent, they should be
directed against Japan, and originate in Washington, not Tokyo."
This attitude, if somewhat extreme, nevertheless seems representative of a widespread desire to compensate for the patience
which the United States has displayed in accepting a "dare" from
Germany. Japan is currently a target for the aggressive impulses
- -3 -
330
which caution has hitherto prevailed upon the American people to
repress. Even the Scripps-Howard papers, which consistently
counseled restraint in dealing with the Japanese, have markedly
sharpened their tone. "A truce now," they reason, "would be
better than nothing. But at best it would be an uneasy affair,
masking preparations for a bigger war. Tokyo can get a fair deal
if she will settle now. If she misses this opportunity, she may
not get another one. She cannot continue as Hitler's partner
without risking the consequences."
While warning that war in the Pacific is a lively possibility,
much of the press inclines to the view that Japan will retreat
before the heavy odds against her. But nothing less than a full
retreat -- embracing withdrawal from the Axis, an end to aggression in China, together with reduction of Japanese forces along
the Thailand and Siberian frontiers -- would be looked upon by
the American press as a satisfactory basis for the settlement of
far eastern problems.
Discontent
Despite awareness of crucial situations in the Pacific, in
Russia and in Africa, editorial attention continues to be focussed
in large measure upon the domestic aspects of defense. Settlement
of the captive mine strike by arbitration does not satisfy the
-4-
331
editorial writers. Some of them -- Frank Kent, for example --
feel that, "Actually, it is rather a pity this coal strike did
not go to a final showdown;" `they seek the smashing of John L. Lewis
as a symbol of organized labor and are ready to charge, should his
demands be granted by the arbitration board, that the President
employed this solution merely as a devious means.for capitulation
to Lewis. Some, like the Birmingham Age-Herald on the other hand,
rejoice that the strike was "settled without extreme departure from
democratic methods
Settlement of the strike not only was
immensely gratifying from the standpoint of national defense, but
it was deeply reassuring as to the democratic processes of this
country." The pressure for anti-strike legislation by Congress
is unabated. In general, the press insists upon a drastic solution
of domestic problems affecting labor, production and prices as
indispensable to the national unity needed to face enemies abroad.
Uneasiness
Newspapers have been jolted into a sudden realization that the
British are not going to have clear sailing in North Africa. The
optimism with which Prime Minister Churchill announced the commence-
ment of the drive into Libya gave rise to premature rejoicing over
here. Nazi resistance, coupled with fresh news that Moscow is
-5-
332
seriously endangered, served to disrupt the complacency with
which the press had begun to regard the progress of the war.
Response
Two measures undertaken by the President during the past
week evoked the prompt editorial endorsement which seems invar-
iably to follow concrete executive action. The extension of LendLease assistance to the De Gaulle forces was warmly applauded. And
the occupation of Dutch Guiana was approved as a wise precaution
against possible Axis activities in this hemisphere. Both steps
were viewed as useful warnings to the Vichy Government. A number
of commentators have renewed their demands for a full severance of
relations with Vichy.
Unity
In the stress of excitement over more spectacular events, the
press gave curiously scant attention to the statements issued
recently by Senators Gillette and Taft, pledging their support to
any action taken by the President with the consent of Congress.
Since these two Senators have opposed the whole of Administration
foreign policy with considerable vigor, though with relative temperance, the present modification of their attitude seems highly
significant. It constitutes a further winnowing of the isolationist
forces and may presage a drift of all moderate and rational elements
in the country toward national unity.
Carbon copy to
rewhite 12/1
THE ASSISTANT SECRETARY OF WAR
DATES
333
WASHINGTON
LIMITED
INTERNATIONAL
4658
WITH
OFFICE
November 28, 1941
My dear Mr. Secretary:
Today I had Morris Wilson, Sir Frederick
Phillips, Oscar Cox, Ed. Greenbaum and Ed. Stettinius
in on the British take-outs. After some discussion
it became quite clear that the only way to resolve
the matter was to have Sir Frederick Phillips and
Morris Wilson sit down together and determine whether
moneys could and should be made available from the
second lend-lease appropriations to relieve the strain
on the British dollar position.
They told me that they would get at it
immediately and let me know promptly what their decision would be.
Sincerely,
The Honorable
Henry Morgenthau, Jr.
Secretary of the Treasury
334
BRITISH AIR COMMISSION
1785 MASSACHUSETTS AVENUE
WASHINGTON D.C.
TELEPHONE HOBART 9000
PLEASE QUOTE
REFERENCE NO
with the compliments of British Air Commission,
who enclose Statement No. 8, covering aircraft
shipped, for week ended November 25, 1941
The Hon. Henry Morgenthau, Jr.
Secretary of the Treas ry
Washington, D. C.
November 28, 1941
335
STATEMENT NO. 8.
AIRCRAFT DESPATCHED FROM THE UNITED STATES
WEEK ENDED NOVEMBER 25. 1941.
TYPE
DESTINATION ASSEMBLY POINT BY SEA BY AIR FLIGHT DELIVERED FOR
CESSNA
T-50
CONSOLIDATED
Liberator II
CURTISS
Kittyhawk
Canada
U. K.
U. K.
Middle East
Middle East
Port Sudan
Canada
GLENN MARTIN
Baltimore
Middle East Port Sudan
Harvard II
Canada
Mustangs
U. K.
U. K.
U.K.
U.K.
Autogyro
TOTAL
itish Air Commission,
November 27, 1941.
-
--
--
-
2
-
-
14
6
8
3
31
14
-
3
-
NORTH AMERICAN
PITCAIRN
USE IN CANADA.
1
-
-
-
14
-
-
-
29
5
336
TREASURY DEPARTMENT
Chambery
INTER-OFFICE COMMUNICATION
Mind
DATE November 28, 1941
For
Secretary Morgenthau
TO
FROM Mr. Cochran
STRICTLY CONFIDENTIAL
Official sales of British-owned dollar securities under the vesting order
effective February 19, 1940:
13,577
31,435
6,879
20
H
o
19
32,249
28,350
14,694
Total
Bonds Sold
1
18
$ Proceeds of
d
1
Nov. 17
$ Proceeds of
Shares Sold
45,826
59,785
21,573
a
y
21
27,147
22
Nil
Nil
Nil
102,440
51,891
154,331
281,095,374
37,329,464
318,424,838
281,197,814
37,381,355
318,579,169
Sales from
Feb.22,1940 to
Nov. 15,1941
27,147
Nil
Total
Feb.22,1940 to
Nov. 22, 1941
$ proceeds of non-vested securities sold
Nov. 10, 1941 to Nov. 15, 1941
$ proceeds of non-vested securities sold
Sept. 1, 1939 to Nov. 8. 1941
$ proceeds of non-vested securities sold
Sept. 1. 1939 to Nov. 15, 1941
900,000
237,500,000
238,400,000
GRAND TOTAL
9 Units sold from Aug. 18, 1941 to Nov. 22, 1941 for
11 Shares Stock Dividend sold Aug. 18, 1941 to Nov. 22, 1941 for
55.772 Rights sold from July 24, 1941 to Nov. 22, 1941 for
KMP
318,579,169
238,400,000
556.979.169
$42
$123
$102,853
337
TREASURY DEPARTMENT
INTER-OFFICE COMMUNICATION
DATE November 28, 1941
TO
Secretary Morgenthau
FROM
Mr. Cochran
STRICTLY CONFIDENTIAL
Official sales of British-owned dollar securities under the vesting order
effective February 19, 1940:
No. of Shares
Sold
Nov. 17
1,299
18
950
19
300
20
$ Proceeds of
Shares Sold
Nominal Value
of Bonds Sold
$ Proceeds of
Bonds Sold
32,249
28,350
14,694
45,000
39,000
10,000
13,577
31,435
6,879
H0LIDAY
21
500
27,147
22
Nil
Nil
Nil
Nil
Nil
Nil
3,049
102,440
94,000
51,891
9,829,476-1/2
281,095,374
45,448,016
37,329,464
9,832,525-1/2
281,197,814
45,542,016
37,381,355
Sales from
Feb.22,1940 to
Nov.15,1941
Total
Feb.22,1940 to
Nov.22,1941
HMP
For Miss Chauncey
338
November 28, 1941
COMPIRENTIAL
Dear Mr. Knoke:
Permit me to acknowledge for the Secretary
the receipt of your letter of November 27, 1941, oneleeing your compilation for the week ended November
19. 1941, showing dollar disbursements out of the British
Repire accounts and French accounts at the Federal
m
Reserve Bank of New York and the means by which these
expenditures were financed.
Faithfully yours,
H. Morle Cochran,
Technical Assistant to the Secretary.
L. W. Knoke, Esquire,
Vice President,
Federal Reserve Bank of Now York,
New York, New York.
HMC:bj: 11. 28.41
339
NOV 28 1941
Dear Mr. Ambassador:
The Mission has just forwarded to the State
Department, for transmission to the Cuban Govern-
ment, its first report dealing with the matters
of immediate concern which were discussed with
Cuban officials during my brief visit to Habana
at the and of last month.
In this report there is no consideration of
any possible shortage of fractional coins either
now or in the future in Cuba. Should you be in
formed by the Finance Minister that this problem
is causing him concern or that he is having any
particular difficulty in finding ways of meeting
it, the Mission will be glad to inquire into the
matter.
I hope that we can make good progress in the
preparation of our report relating to Cuba's longrun monetary and banking problems.
with all good wishes, I am
Sincerely yours,
(Sidned) H. n. White
H. D. White, Chief,
American Technical Mission to Cuba.
The Honorable
George R. Meesersmith
American Ambassador
Habana, Cube
11/28/41 - Forwarded to addresse vie AIR MAIL
thru Treasury Mail Room.
FAS each
11/28/41
340
HANDY & HARMAN SILVER PRICE RAISED
HANDY & HARMAN HAS ISSUED FOLLOWING
NOV
28
1941
STATEMENT-
-ON NOVEMBER 19 194 AN AGREEMENT WAS
SIGNED BETWEEN MEXICO AND THE UNITED STATES
BY WHICH THE UNITED STATES TREASURY DEPARTMENT
INDICATED ITS WILLINGNESS TO PURCHASE NEWLY
MINED MEXICAN SILVER DIRECT FROM THE MEXICAN
GOVERNMENT AT THE DAILY PRICE QUOTED BY THE
TREASURY ON THE DAY OF PURCHASE - THIS TREASURY
BUYING RATE HAS BEEN 35 CENTS AN OUNCE SINCE
JULY 10 1939 - AS A RESULT OF THIS AGREEMENT
MEXICAN SILVER IN THE AMOUNT NEEDED FOR AMERICAN
INDUSTRY HAS BECOME UNAVAILABLE IN THE OPEN
MARKET AT THE TREASURY PRICE OF 35 CENTS ACCORDINGLY THE NEW YORK MARKET ADVANCED TODAY
TO A PRICE SUFFICIENT TO OBTAIN THE NECESSARY
MEXICAN SILVER - ON THE BASIS OF THIS PRICE
WE HAVE RAISED OUR OFFICIAL QUOTATION TO 35
1-8 CENTSHANDY & HARMAN QUOTE SILVER- N Y FOREIGN
35 1-8C UP 3-8C - DOMESTIC 70 5-8C UNCH LONDON 23 1-2D UNCH
TREASURY DEPARTMENT
341
INTER OFFICE COMMUNICATION
DATE November 28,1941
TO
FROM
Secretary Morgenthau
Mr. White
Subject: Exports to Russia, China, Burma, Hong Kong, Japan,
France and other blocked countries, as reported to
the Treasury Department during week ending November 22,
1941.
1. Exports to Russia
Exports to Russia as reported to the Treasury during the week
ending November 22, 1941 amounted to approximately $3,600,000 for
a total of $52,409,000 since July 28, 1941. Motor trucks and chassis
constituted more than one-third of the total exports during the week
under review. (See Appendix C.)
2. Exports to China, Burma and Hong Kong
(
Exports to Free China were valued at about $1,200,000 of which
aircraft parts and motor trucks and chassis were the principal items.
(See Appendix D.) Exports to Occupied China were higher than for
any single week since October 11, 1941, amounting to over $470,000.
(See Appendix E.)
Exports to Burma totalled over $1,000,000 and motor trucks and
chassis and metallic cartridges accounted for about 85% of the total.
A large percentage of these exports are probably destined for Free
China. (See Appendix F.)
Exports to Hong Kong amounted to $600,000. (See Appendix G.)
3. Exports to Japan
Exports to Japan were negligible during the week under review.
Japan, however, might be the ultimate destination of some of the
exports to Occupied China and Hong Kong (via Occupied China).
4. Exports to France
No exports to France were reported during the week ending
November 22, 1941.
5. Exports to other blocked countries
Exports to other blocked countries are given in Appendix A.
342
SUMMARY OF UNITED STATES
DOMESTIC EXPORTS TO SELECTED COUNTRIES
AS REPORTED TO THE TREASURY DEPARTMENT
FROM EXPORT DECLARATIONS RECEIVED
DURING THE PERIOD INDICATED 1
July 28 to November 22, 1941
(In thousands of dollars)
July 28
Week ended
November 22
$45,803
$ 2,677
$ 3,581
$ 52,061
9,784
155
464
10,403
17,883
2,851
1,228
21,962
Nov. 8
U. S. S. R.
Occupied China
Free China
Japan
1,870 2
Burma 3
4,245
France
ocupied France
Total
Week ended
November 15
to
-
6
2
.4
Free France
1,870
5
5,354
1,021
88
-
-
-
-
-
-
Domestic Exports
6
2
.4
2,226
Spain
1,733
482
Switzerland
3,565
910
133
4,608
Sweden
6,892
2,478
132
9,502
French Indo china
303
1
2
Treasury Department, Division of Monetary Research
-
305
November 26, 1941
1/ Many of the export declarations are received with a lag of several days or more.
Therefore this compilation does not accurately represent the actual shipment of
a particular week. The longer the period covered, the closer will these figures
come to Department of Commerce revised figures.
2 Of this total $1,864 thousand was reported from July 28 to August 23, inclusive,
and shipped prior to freezing orders.
Demestic exports from August 23 through week ending November 8,amounted to $5,905.
3/ From September 11, 1941 to date - It is presumed that a large percentage of
material listed here, consigned to Burma, is destined for Free China.
C Includes both occupied and Free France through week ending October 4, 1941.
Occupied and Free France separated thereafter.
5/ Less than $500
APPENDIX B
Exports from the U.S. to China, Burma, Hong Kong, Japan, and U.S.S.R.
as reported to the Treasury Department, July 28, 1941 - November 22, 1941
(Thousands of Dollars) 1/
Exports to China
Total To Japanese To Ohinese
controlled controlled
ports
ports
July 28 - Aug.
Aug. 4 - Aug.
2
9
Aug. 11 - Aug. 16
Aug. 18 - Aug. 23
Aug. 25 - Aug. 30
Sept. 2 - Sept. 6
Sept. 8 - Sept.13
Sept.15 - Sept.20
Sept.22 - Sept.27
Sept.29 - Oct.
4
Oct. 6 - Oct. 11
Oct. 13 - Oct. 18
Oct. 20 - Oct. 25
Oct. 27 - Nov. 1
Nov. 3 - Nov. 8
Nov. 10 - Nov. 15
Nov. 17 - Nov. 22
Total
1,157
1,233
5
35
584
269
403
1,243
58
473
4,772
1,672
2,851
1,228
1,021
624
283
303
600
10,879
24,458
4,237
10,304
2,794
736
897
735
693
3,038 2
757
5,864
272
668
5,210
1,836
3,009
1,701
35,337
Hong Kong
1,225
5,312
2,794
1,278
1,352
1,305
Burma 3
to
449
684
542
462
to
Exports
654
983
235
234
742
634
456
389
810
297
937
3,978
Exports
395
-
969
309
1,352
2
156
352
80
552
1
204
2,281
3,822
110
267.
399
438
164
158
342
88
Exports
to
Exports
to
Japan
U.S.S.R.
1,657
4,523
551
986
159
42
2,735
1,023
4,280
5,217
6
-
752
-
2,333
323
-
-
6,845
1,924
5,623
4,484
4,552
2,677
3,581
1,869
52,409
-
5
-
1/ These figures are in part taken from copies of shipping manifests.
2 Figures for exports to Free China during these weeks include exports to Rangoon which are
presumed to be destined for Free China.
3/
It is presumed that a large percentage of exports to Burma are destined for Free China.
Treasury Department, Division of Monetary Research
December 1, 1941
344
APPENDIX C
Principal Exports from U.S. to U.S.S.R.
as reported to the Treasury Department
during the week ending November 22, 1941
(Thousands of Dollars)
TOTAL EXPORTS
Principal Items:
Motor trucks and chassis
Military tanks and parts
$ 3,581
1,382
432
299
274
Landplanes, powered
Refined copper
154
Brass and bronze plates and sheets
Non-rotating welding sets
171
121
109
Gasoline
Lathes
Auto replacement parts
Men's boots and shoes
108
72
Treasury Department, Division of Monetary Research November 29,1941
345
APPENDIX D
Principal Exports from U.S. to Free China,
as reported to the Treasury Department
during the week ending November 22, 1941
(Thousands of Dollars)
TOTAL EXPORTS TO FREE CHINA
$ 1,228
Principal Items:
Aircraft parts, n.e.s.
Motor trucks and chassis
Diesel engines
Steel bars
Road machinery and parts
Insulated copper wire
Tin plate and taggers tin
Tires and tubes
Aircraft engines
576
145
98
59
53
40
40
27
25
22
Well and refining machinery
Treasury Department, Division of Monetary Research November 29,1941
346
APPENDIX E
Principal Exports from U.S. to Occupied
Ohina as reported to the Treasury Department
during the week ending November 22, 1941
(Thousands of Dollars)
TOTAL EXPORTS TO OCCUPIED CHINA
$ 473
Principal Items:
Wheat flour
44
Hops
35
Medicinal preparations
Printing paper
Leather
Milk
Other paper and paper products
Auto replacement parts
28
28
26
26
25
23
Treasury Department, Division of Monetary Research November 29,1941
347
APPENDIX F
Principal Exports from U.S. to Burma
as reported to the Treasury Department
during the week ending November 22, 1941
(Thousands of Dollars)
TOTAL EXPORTS
$ 1,021
Principal Items:
Motor trucks and chassis
Metallic cartridges
Steel sheets
Lubricating oils
Tin Well
and
refining
machinery
plate
and
taggers
tin
Metallic containers
Tires and tubes
655
202
38
28
14
14
11
10
Treasury Department, Division of Monetary Research November 22,1941
348
APPENDIX G
Principal Exports from U.S. to Hong Kong
as reported to the Treasury Department
during the week ending November 22, 1941
(Thousands of Dollars)
TOTAL EXPORTS
$ 600
Principal Items:
Artificial leather, braces, garters,
belts and suspenders
212
Tires and inner tubes
Medicinal and pharmaceutical preparations
38
Printing paper
Miscellaneous office supplies
19
18
Motor trucks
32
22
Ginseng
17
Chemical specialties
Automobile parts for replacements
13
Milk and cream
11
Copper manufactures
13
11
Commodities exported for relief or charity
11
Fruits and preparations
10
Treasury Department, Division of Monetary Research November 22,1941
349
Y
W.T. 112/66/41
BRITISH EMBASSY
WASHINGTON, D. C.,
SAFE HAND
28th November, 1941.
Dear Mr. Cochran,
I enclose a copy of a letter which Mr. Thorold at
this Embassy has written to Mr. Reinstein at the State Department.
A copy of Mr. Stopford's letter to Mr. Acheson of
30th August was sent to you at the time. It referred to our
Export Licensing policy towards China and particularly towards
Shanghai.
My impression is that at present so far as your
Department is concerned the Indo-Chinese position is covered
by the General Licenses in connection with special accounts
A and B, and that you have already taken all possible steps
to prevent the financing of exports to Indo-China otherwise
than in exchange for strategic materials.
If you think it would be useful to discuss this
matter at any time, I shall be pleased to come and see you for
this purpose.
Yours sincerely,
(Sgd) W. Ritchie.
Mr. Merle Cochran,
Room 279. U.S. Treasury Department,
Washington, D. C.
WR:TMI
Copy:vw:12-1-41
350
BRITISH EMBASSY,
WASHINGTON, D.C.,
BY SAFE HAND
19th November, 1941.
My dear Reinstein,
We have recently had occasion to enquire from London
as to the policy which is now being followed in the British
Empire in respect of exports to Indo China.
In reply, we are informed that, while it is not proposed for the present to denounce the Decoux Agreement (which
provides for a certain amount of reciprocal trade between
British territories and Indo China), steps are now being taken
to tighten up the restrictions on exports to Indo China from
British territories, which have hitherto, with certain exceptions, been limited to normal trade. Consequently, His Majesty's
Government are now inviting British Empire countries to adopt
a policy comparable to that now in force for Occupied China.
Under this plan, no export licences would, except in
special cases recommended by His Majesty's Consul General, be
granted from any British territory for goods on the "nil list"
as set out in the appendix to Mr. Stopford's letter to Mr.
Acheson of August 30th. In respect of Indo China, there will
be added to this "nil list" finished leather and raw wool, and
possibly other commodities at a later stage. Commodities not
on this "nil list" could, subject to supply and consignee considerations, be licenced up to the average of the years 1936,
1937. and 1938 unless, after further study, it should seem de-
sirable to restrict some of them to a lower level. It is pro-
posed to maintain the existing embargo on petroleum, which was
imposed as a means of pressure to persuade the Indo Chinese
Government to sell rubber to the United States. The existing
Mr. J. J. Reinstein,
United States Department of State,
Washington, D. C.
351
-2arrangements in respect of jute manufactures will remain in force,
under which these goods are only supplied in sufficient quantities
to pack rice for British and Allied possessions.
His Majesty's Government propose to invite the Netherlands
Government to pursue a similar policy, and they would be grateful if
the United States Government could see their way to adopt restric-
tions no less severe. Particularly in the case of cotton, His
Majesty's Government are proposing to ask India and other Empire
Governments to add cotton, at least temporarily, to the "nil list",
but it is felt that such action would be ineffective if exports con-
timed from North or South America. His Majesty's Government would
therefore be grateful to know to what extent the United States
Government consider that they could prevent such exports by their
freezing machinery or by their influence.
I should be glad of an opportunity to discuss this question
with you and to learn your views.
Yours sincerely,
(Sgd) G. F. Thorold
GFT:HS
Copy:vw:12-1-41
0
352
P
Y
DEPARTMENT OF STATE
WASHINGTON
In reply refer to
November 28, 1941
FF 840.51 Frozen Credits/4315
The Secretary of State presents his compliments to the
Honorable the Secretary of the Treasury and transmits herewith
for his information a copy of a despatch from the American
Embassy at Buenos Aires, no. 3487, dated November 10, 1941
concerning a proposal that foreign banks and foreign branches
of United States benks be required to declare for whose account
they hold dollars.
Enclosure:
From Buenos Aires,
no. 3487. November 10,
1941.
eh:copy
12-1-41
C
353
0
P
Y
Buenos Aires, November 10, 1941
No. 3487
Subject: PROPOSAL THAT FOREIGN BANKS BE REQUIRED BY THE
UNITED STATES GOVERNMENT OR THE FEDERAL RESERVE
SYSTEM TO DECLARE FOR WHOSE ACCOUNTS THEY HOLD
DOLLARS IN THE UNITED STATES
STRICTLY CONFIDENTIAL
The Honorable
The Secretary of State
Washington
Sir:
I have the honor to report that it has been informally suggested
by the British Embassy here that it would serve a useful purpose in
the enforcement of the United States measures freezing assets of certain
countries if foreign banks and the foreign branches of United States
banks were required to declare for whose accounts they hold dollars in
the United States. There is enclosed a copy of a memorandum on the
subject prepared by Mr. Walter Simon, First Secretary and Financial
Adviser of the British Embassy, several days ago.
It will be noted in the enclosed memorandum that as an example of
the need for such a measure, a certain finance company in Luxembourg
was, according to reports, recently planning to endeavor, through an
operation with the Central Bank, to have an account of approximately
$100,000 U.S.cy. in the Bank of London and South America here converted
into Argentine pesos. Although the conversion would presumably have been
into blocked pesos, the British Embassy feared that later and before
the end of the war efforts might be made to release these pesos in
354
-2-
various forms. After consulting the British Embassy in Washington,
it requested the Bank of London in Buenos Aires to declare the owner-
ship of the dollars in its New York agency, and this action was taken.
At the same time, the local branch of the Bank of London declared all
its dollar accounts. The Bank of London has now been informed by its
New York agency that the account of the Luxembourg finance company
has been blocked.
The British Embassy feels that our Government or the Federal
Reserve System might be disposed to require in some way that the dollar
accounts in the United States of other banks in Buenos Aires and perhaps
elsewhere in South America be similarly declared.
Respectfully yours,
Norman Armour
Enclosure:
Memorandum,
Qn.
851
JWG:dnb
A true copy of
the signed orig.
eh:copy
12-1-41
0
(Enclosure no. 1 to Despatch no. 3487)
0
355
P
(COPY)
Y
SECRET
I learnt some weeks ago that a Luxembourg finance company
"Soporlux", held U.S.$ 99,900 in the Bank of London & S.A. here,
from the pre-invasion period. In accordance with the Argentine
regulations, these dollars were blocked here.
I also heard that the head of Soporlux, M. Montagne, was likely
to be coming to B.A. from Lisbon. I feared that he might arrange with
the Central Bank to sell them these dollars for pesos, (which trans-
action, the C.B. told me they would willingly carry out).
Although restrictions might be placed on the use of these pesos,
it would not be difficult to evade the restrictions.
Consequently, I asked our Embassy in Washington if steps could not
be taken in the U.S. to block these dollars, which form part of the
general dollar holdings of the Bank of London & S.A., in New York.
The reply was that procedure was not very definitely laid down on
this point, but it would be convenient if the Bank of London here, were
to declare the ownership of the dollars, to their New York agency.
This was done, not only as regards the Soporlux holding, but also
in respect of all other holdings of firms in enemy occupied or controlled
territory.
The New York agency has now notified the Bank of London here that,
"we must consider your Special Account blocked and any transactions connected therewith can only be effected under license from the U.S. Treasury".
This development would appear to open up a wide field for stopping
the leaks, if the U.S. authorities be prepared to insist, through the U.S.
banks having dollar accounts with Central and Trading banks in South
America, that the latter declare for whose account they hold dollars.
V.S.
eh:copy
12-1-41
C
356
0
PARAPHRASE OF TELEGRAM RECEIVED
FROM: American Embassy, Buenos Aires, Argentina.
DATE: Undated, but Rec'd November 28, 1941,
9:30 p.m.
NO. : 1347.
Refer to telegram dated November 19, 6 p.m., no.
949, from the Department; and telegram dated November 26,
7 p.m., no. 984.
With regard to the Embassy's telegram no. 1135
dated October 14, 6 p.m., further investigations have
been made relating to Trombino which confirm the infor-
mation contained therein. This matter has been referred
to the Foreign Office, who advised that they have given
no instructions to the Argentine Embassy in Bogota which
could have prompted the Argentine Charge d'Affaires to
insist on Trombino's being permitted to take out of Colombia
16 pounds of crude platinum. The Embassy has been informed
by the Foreign Office that instructions to refrain from
further intervention in the affair, except when instructions
have been received from Buenos Aires, would be forwarded to
the Argentine Charge d'Affaires in Bogota immediately.
ARMOUR
DM:mfs
Copy:bj:12-3-41
357
0
P
Y
DEPARTMENT OF STATE
WASHINGTON
November 28, 1941
In reply refer to
FD 894.515/95
The Secretary of State presents his compliments
to the Honorable the Secretary of the Treasury and
encloses a copy of despatch no. 322 from the American
Consulate General, Guatemala, Guatemala, dated
November 18, 1941, concerning gold shipments from
Japan to Guatemala.
Enclosure:
From Consulate General,
Guatemala, no. 322,
November 18, 1941.
Copy:bj:11-28-41
358
No. 322
AMERICAN CONSULATE GENERAL
Guatemala, Guatemals, November 18, 1941
SUBJECT: Shipments of Gold from Japan - Guatemala.
THE HONORABLE
THE SECRETARY OF STATE,
WASHINGTON.
SIR:
Referring to the Department's circular telegraphic
instruction of November 15, 6 p.m., 1941, I have the
honor to report that the Consulate General has made
appropriate inquiries of the Manager of the Banco Central
de Quatemala, who informs this office that there have
been no shipments to this Republic of gold from Japan.
The Manager states that one or two small commercial credits,
other than gold, placed by Japanese interests, have been
frozen by him.
RESPECTFULLY YOURS,
Harold L. Williamson,
American Consul General
851.51
HLW/HDE
Copies sent:
3 to the Department;
1 to the Legation.
A true copy of
the signed orig.
HVE
eh:copy
11-28-41
TREASURY DEPARTMENT
359
INTER-OFFICE COMMUNICATION
DATE November 28, 1941
TO
Secretary Morgenthau
CONFIDENTIAL
FROM Mr. Cochran
Registered sterling transactions of the reporting banks were as follows:
Sold to commercial concerns
Purchased from commercial concerns
256,000
£24,000
Open market sterling was quoted at 4.03-1/2. The only reported transactions
consisted of £15,000 purchased by two banks from commercial concerns.
Continuing its improvement, the Uruguayan free peso advanced 105 points (or
about 1$) to close at .5130.
In New York, closing quotations for the foreign currencies listed below were
as follows:
Canadian dollar
Argentine peso (free)
Brazilian milreis (free)
Colombian peso
Mexican peso
Venezuelan bolivar
Cuban peso
11-3/8% discount
.2390
.0515
.5775
.2070
.2580
1/8% discount
We sold $7,500,000 in gold to the Bank of Jave, which was added to its ear-
marked account.
The Federal Reserve Bank of New York reported that the Bank of Canada shipped
$2,173,000 in gold from Canada to the Federal for account of the Government of
Canada, for sale to the New York Assay office.
In London, both spot and forward silver were again priced at 23-1/2d, equiva-
lent to 42.67
The Treasury's purchase price for foreign silver remained at 35$. a quotation
which has prevailed since July 10, 1939. Handy and Harman's settlement price for
foreign silver, which has been 34-3/44 ever since June 17. 1940, was today raised
to 35-1/8.
We made no silver purchases today.
KMP.
Treasury Department
Division of Monetary Resear 860
Date
19
To:
Secretary Morgenthau
From:
Mr. Kamark
Material from Colonel
Donovan.
361
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE November 28,1941
TO
Secretary Morgenthau
FROM
Mr. Kamarck
Subject: Description of Hitler's G.H.Q.
Highlights
1. Hitler's G.H.Q. is located in a special train protected by a large number of anti-aircraft guns.
2. All information funnels into this caravan and all
important military and civil decisions are made here
by Hitler, personally.
3. The train caravan is supplemented by planes and
motor cars with which Hitler visits the front.
4. The war does not appear to have affected Hitler:
he looks the same and has kept "his good humor and
perfect heal th. If
362
The following is a description of
the General Headquarters of Hitler as related
by an aide of Horthy of Hungary on a recent
visit to Hitler:
From his special train, Hitler directs
all operations personally, devoting to them his
undivided attention and taking the most scrupu-
lous care over details. From this train he has
'conducted the campaigns in Poland, Belgium, the
low Countries, Luxemburg, Denmax Norway, Greece
and Yugoslavia. Still in the same train, the
Chancellor is today issuing his orders to the
entire Russian front, which extends for thousands
of kilometres.
Adolph Hitler has spent nearly two
years in his G.H.C. which with its military
offices and modern installations constitutes the
363
most highly perfected caravan - if I may so
term it - in the world. News from all parts
converges and is assembled there; it is there
that decisions are reached and all plans con-
cerning the war are drawn up; to that point all
reports, whether of major or minor importance,
are directed; troop advances or retreats, however small the units, movements and action of
submarines and aircraft and details of the
gigantic, almost inconceivable, organisation for
supplying the armies - a titanic task, organised
with clockwork precision.
It will not surprise anybody to hear
that this G.H.Q. is carefully concealed in the
woods, in the places where it cannot be detected
by enemy 'planes. It is known, however, that at
whatever sector of the front it happens to be,
a larger number of anti-aircraft guns are placed
-20
364
together with an extra heavy reinforcement of
military piokets.
In the middle of the encampment is the
Fuehrer's coach, and around him are the various
offices, which can be dismantled in a few minutes:
cars, autocars and caterpillar-cars complete the
circle.
The geographical and topogra, hical
maps on which the development of operations in
the East are noted hour by hour are situated in
a separate tent called "the eastern tent". In
the tent set aside for the 'west' are the geographical plans relating to operations against
England.
Among the various cars at the Head-
quarters is that of Herr Dietrich, head of the
Reich press; beside the radio coaches are placed
those for wireless telegraphy. There a stupendous
task is enrried out. There can hardly be a
365
wireless station in the world whose wave-length
is not picked up by these installations, which
are equipped with all the latest improvements.
The men in charge of these posts work day and
night.
The Fuehrer is therefore kept informed
of all that is happening in the Reich and all
over the world, hour by hour, minute by minute,
and if he does not go and it is because he is a
genius, a phenomenon of nature - which indeed is
tantamount to being mad.
Hitler generally spends the greater
part of his day in the so-called 'eastern tent. .
with his marshals he studies developments in the
military situation with minute attention. It
is doubtless in this tent that the ideas and
plans which surprise the enemy are conceived. I
would even venture to say that it is there that
modern strategy is evolved. And those in the
-4-
366
Fueltrer's immediate circle do not conceal or
dispute the fact that every plan which has
determined the German victories has been his
work. His is the spirit which guides this
formidable war machine, the greatest of all
time. From this G.H.Q. he also directs the
Reich's internal affairs. The Ministers, the
Party Chiefs, Goebbels and von Ribbentrop,
visit the Chancellor 'somewhere on the eastern
front.'
He nearly always travels by plane. He
[SHOULD BE FOCKE WULF, = FOUR- MOTOR BOMBE AM
has at his disposal an enormous 'FOKKER WULF'S and
("TINY"-?, THESE ARE THREE-MOTOR TROOP TRANSPORTS AND
a tiny 'JUNKERS 52th of the type used by the air
force. He uses one or other of these machines as
a rule when visiting the various sectors of the
front. The sheds of the G.H.Q. also contain a
third machine which is capable of landing on any
sort of ground. Furthermore he has at his
disposi a very high-powered grey car in which
367
he visits the combatant forces and a smaller
runabout called an *UKBERLAND-WASEN."
He east the same food as his soldiers
and sometimes takes his meals in the military
cancern.
People who have had the opprotunity of
seeing him at close quarters say that during these
two years of war his appearance has not changed.
The lines on his rather pale face have perhaps
deepened a little but he still keeps his good
humor and perfect health. His hair is beginning
to go grey at the temples, but his step has not
lost its elesticity, and he holds himself very
erect.
368
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE November 29,1941
TO
FROM
Secretary Morgenthau
Mr. Kamarck
Subject: Description
of the
Destruction of the Bismarck by
British Naval
Officer
a
Highlights
1. The Bismarck showed superlative gunnery.
2. She was much bigger than her reported 35,000 tons.
3. The British battleships "simply could not sink her;"
she had to be dispatched with torpedoes after 2g hours
of agony for her crew under the pounding of British
shells.
369
EXTRACT FROM A LETTER WRITTEN BY A NAVAL
OFFICER TO HIS WIFE IN ENGLAND
At long last we have had our fun, and oh boy,
oh boy, what fun, what a party!
We were the only ship to see it through from
start to finish, as you no doubt gathered from the
radio, and we finished up with a nice spot of bother
with a Heinkel. We got through it all with no
trouble or damage of any kind, except that my cabin
was wrecked by our own firings. Thank God I had put
your picture to bed.
We narrawly escaped being badly shot up on
the edge of the ice, north of Iceland (all this is
common property via B.B.C.) and managed to keep touch
with the enemy all the 1/2 light of Friday night.
We had a front row of the stalls view of the
action between the Hood and Prince of Wales, and the
German forces on Saturday morning, and saw the
terrible sight of the Hood blowing up. It was quite
appalling. You know the size of those ships -- the
splashes were twice the height of her mast. Poor old
370
Tubby! I an awfully upset about him and for many others
I know there. They had a mercifully quick release,
and it was all over in five minutes. It seemed
absolutely incredible. The sight of the Prince of
Wales steaming through the smoke and wreckage, firing
with all her guns and with fountains of splashes all
around her, was a never-to-be-forgotten sight.
Bismarok was hard hit at this time too, and turned
away with troubles of her own. Prince of Wales and
two cruisers then shadowed Bismarck all day during
her run to the South, and mighty respectful we were
of her superlative gunnery. We were far out to the
westward, running South in the longitude of South
of Greenland, and the most dramatic chase it was.
Twice she gave us the slip, and we picked her
up with air reconnaissance from carriers, and slowed
her up by F.Q.A. torpedo attack. The awful problem
was oil. Would we have enough to get heavy forces
on to her, before she got into Brest? On the last
night (Sunday) Viau's destroyers found her and almost
2.
371
stopped her with torpedoes, carrying out a super->
latively gallant attack at close range, and despite
a mighty hot reception, getting clean away with it.
The last morning broke off the Bay of Biscay
in a North West gale, and heavy rain squalls, and
we had some difficulty in picking up Bismarck in
the low visibility, always with the chance of being
blown out of the water at close range. We located
her and put on the Battleships, King George V, and
Rodney, and then began the unforgettable finale
which I shall remember to my dying day.
Bismarok was incomparably the biggest ship I
have ever seen, 35,000 tons -- nothing!! Our two
ships looked literally like picket boats. She
was simply gigantic. Our battleships ran in and
started the ball rolling, and she was soon being
hit with the colossal explosions of our heavy shell.
The explosions were indescribable. Huge flames of
fire all over her, and she was burning everywhere.
She fought back magnificently, but to no
372
effect, and one by one her guns were silenced.
We pounded away, our little shehls could be seen
bursting all over her, looking ridiouously small
on her huge structure. Every time we hit, the
troops oheered like made.
By this time, she was silenced, but still
looked an impregnable fortress desite the hammer
ing she had taken. Then started the most fantastic
phase of all, which made even the most blood-thirsty
feel rather sick.
We simply could not sink her, and we expected
large scale air attack at any moment. Two battleships and two cruisers steamed around about her at
close range, pumping all they had into her. It was
quite appalling. You would never believe the
frightful effect of our heavy shell. Colossal flashes
inside her, which must have been a shambles long
before this, and wretched men running hither and
thither on her deck, but she would neither surrender
nor sink.
4.
373
It is simply incredible that any ship could
stand half the hannering she took. Our heaviest
shells sent the water up three times her height,
and great chunks of her upperworks were blown away.
She was finally despatched with torpedoes.
A most dangerous and incomparable ship. Her
company were subjected to the long drawn out
sufferings of four days chase, and incessant attacks
and finally had 2-1/2 hours agony of what must have
been Hell on Earth. Thank God we blow up and sink
more easily.
If we had not sunk her, there is no knowing
what harm she might not have done, as great
concentration of our forces was necessary to deal
with her. I wish you could have seen her. Her
colossal size was like a Goliath, and her concentration and honey-combing of compartment must have been
superb.
5.
TREASURY DEPARTMENT
374
INTER OFFICE COMMUNICATION
DATE November 28, 1941
Sub
TO
Secretary Morgenthau
FROM
Mr. Kamarck
ject: Summary of Military Reports
Battle of the Atlantic
See attached chart: Ship losses in the third year
of the war are running below those of last year. While ship
launchings have been moving up gradually, they are still
running below losses.
The H.M.S. Devonshire (10,000 ton cruiser) intercepted an enemy armed merchant ship in the South Atlantic.
Thirteen minutes after beginning the battle the enemy's
magazine blew up and she sank. (The British are keeping this
engagement secret. Presumably, if the Germans believe their
raider is still at large in the area, they will not send
another. The mysterious disappearance of the vessel may also
affect German morale.)
(U.K. Embassy, London Report, November 22, 1941)
Photographic reconnaissance on November 21 showed
the two German battle cruisers, Scharnhorst and Gneisenau,
and the destroyer, Prinz Eugen, still in their usual positions
in Brest. (The two battle cruisers have now been tied down
in Brest for nine months. The R.A.F. bombing has not been
able to destroy these ships but it has succeeded in
neutralizing them.)
(U.K. Embassy, London Report, November 22, 1941)
E-Boat Attacks
on November 19, at 11:30 p.m., German E-boats
(motor torpedo boats) attacked a convoy off Cromer (off the
East Coast of England, north of London). Two British merchant
ships of 2,400 and 1,200 tons and a tanker of 5,500 tons were
sunk. The convoy escort ships engaged the E-boats and
probably destroyed two of them.
Five hours later at 4:45 a.m., on November 20, two
British M.G.B.'s (motor gun boats) intercepted the E-boats
returning to their base off the Hook of Holland. The British
375
-2-
Division of Monetary
Research
M.G.B. 64 and M.G.B. 67 engaged at least four E-boats. The
battle lasted a half-hour while the distance between the two
sides was closed to 200 yards. The enemy fire proved to be
wild. At the end of the action, one E-boat, s41, stopped
while the others made off. s41 then sank. Spitfires also
took a hand in the proceedings and off Holland attacked the
E-boats returning to their base. They may also have sunk
another E-boat.
During the night of November 23/24, E-boats made an
attack on a coastal convoy along the east coast of England
18 miles off Yarmouth. One tanker of 5,700 tons was sunk
and another ship of 4,200 tons was torpedoed but was towed
safely into Yarmouth. The escorting destroyer sank one
E-boat certainly, another one probably, and certainly damaged
still another one.
Later in the night, another attack was launched on
the convoy, and a Dutch ship of 2,000 tons was sunk. (No
mention is made of E-boat casulaties.)
(U.K.Embassy,London Reports, Nov. 20,21,24,25,1941
(These incidents illustrate one of the great dangers
British shipping faces which is seldom mentioned, but which
takes a heavy toll. The nature of the defense against these
raiders is also brought out. The coastal convoys are protected by escorting destroyers, motor gun boats and an umbrella
of fighter planes. If an attack is made, strenuous attempts are
made to cut off the raiders from their bases by a mobile reserve
of counter-offensive forces.)
Russian Naval Activity
On the second of November, a Russian submarine of
the Chuka class (700 tons) in the vicinity of Fuglo Sound
Nor thern Norway near Tromso) sank an unescorted westbound
vessel of 5,000 tons. On the ninth, the submarine sank an
escorted eastbound vessel of 4,000 tons. On the tenth,
a
4,000 ton eastbound vessel was sunk.
On November 12, the Russian submarine K-21 (probably
1,000 tons) near Hammerfest (Northern Norway) torpedoed two
ships of 4,000 and 5,000 tons. One sank.
On November 15 in Varanger Fjord (near Kirkenes, Northern
Norway) a Russian submarine of the Molodki class (I.e., Maliya Lodki,
or small submarine, 200 tons) torpedoed a south-bound tanker.
The tanker was later seen on fire.
(U.K. Embassy,London Reports, November 20,24,1941).
376
RESTRICTED
G-2/2657-220; No. 555 M.I.D., W.D. 11:00 A.M., November 28, 1941
SITUATION REPORT
I.
Eastern Theater.
Ground: The German advances continue north and south of
Moscow. German forces have reached the Oka River, north of Venev.
On the Orel-Kharkov front the German advance
continues.
In the Donets Basin the Russian counterattacks
in the vital region east of Artemosk are still under way.
II. Western Theater.
Air: The R.A.F. last night attacked Dusseldorf industrial installations, Ostend docks, and German airdromes in the Low
Countries. Nazi planes bombed objectives in East Anglia last night,
according to the British.
III. Middle Eastern Theater.
Ground: Gondar, north of Lake Tana, in Northern Ethiopia,
the last Italian stronghold in East Africa, has surrendered to the
British. Only a small band of Italians is reported still operating
in the Lake area south of Addis Ababa. Heavy fighting continues in
Libya, according to the German High Command.
The British say that activity remains great in the
Rezegh area, with the New Zealand (motorized) Division attacking west
from Rezegh. The corridor between Tobruk and the Rezegh area has
been maintained.
The Axis raiding force across the British supply
line in the frontier area has been dispersed but portions are still
at large.
There is no further news of the British force
which captured Gialo (200 miles west of Jarabub) some days ago.
Air: Italian sources admitted that Naples has again been
bombed. The British said that their air activity against ground
troops in Libya had been both extensive and effective yesterday.
RESTRICTED
CORRECTION TO
SECRET
By authority A. C. of
Paraphrase of Code Cablegram Date
Received at the War Department
DEC 3-1941
at 9:16, November 28, 1941.
G-2
HAB
Initials
Cable paraphrase I.B. #3, 12/1/41, should be corrected as follows:
Paragraph 4, first two sentences should read:
"The reasons put forward for the offer of close support
are two: suitable direct-support aircraft are not available,
and because of the inability to identify British from hostile
tanks."
(G-2 note: No information is available on the offer
referred to.)
Paragraph 4, last sentence, should read:
"The reasons given for this were the low-grade equipment
of the Air Formation Signals, Army Signal unit serving the
air organization by handling its ground line work. This
includes teletype, telegraph, and telephone."
Distribution:
Under Secretary of War
Assistant Secretary of War
Assistant Secretary of War for Air
Chief of the Army Air Forces
Chief of the Air Corps (5)
Assistant Chief of Staff, G-3
Assistant Chief of Staff, G-4
Assistant Chief of Staff, WPD
Record Section
Situation Section
BE Section
SE Section
CE Section
Air Section
G.H.Q.
Defense Aid Director, W.D.
Liaison Officer, Armored Force
State Department (2)
Treasury Department
Office of Land-Lease Administrator, O.E.M.
Director of Naval Intelligence (2)
SECRET
INFORMATION COPY
378
CONFIDENTIAL
UNITED STATES SAVINGS BONDS
Comparative Statement of Sales During
First Twenty-two Business Days of September, October, and November, 1941
(September 1-26, October 1-25, November 1-28)
On Basis of Issue Price
(Amounts in thousands of dollars)
:
:
:
$ 36,563
:
:
Series E - Post Offices
over
: October
$ 34,205
$ 33,880
$ 2,358
over
:
September
: September
325
$
: November
:
:
:
:
: October
October
November :
over
: October
: October
:
:
:
November
or Decrease (-)
:
Sales
Percentage of Increase
or Decrease (-)
:
Item
Amount of Increase
over
: September
6.9%
1.0%
Series E - Banks
69,176
65,762
59,931
3,414
5,831
5.2
9.7
Series E - Total
105,740
18,051
100,260
99,968
18,530
100,746
93,812
15,663
94,641
5.772
5.8
479
486
6,156
2,867
6,105
6.6
18.3
6.5
$224,050
$219,244
$204,116
$ 4,806
$15,128
Series F - Banks
Series G - Banks
Total
-
-
Office of the Secretary of the Treasury, Division of Research and Statistics.
- 2.6
- 0.5
2.2%
7.4%
November 29, 1941.
Source: All figures are deposits with the Treasurer of the United States on account of proceeds of
sales of United States Savings Bonds.
Note: Figures have been rounded to nearest thousand and will not necessarily add to totals.
UNITED STATES SAVINGS BONDS
Daily Sales - November 1941
On Basis of Issue Price
(In thousands of dollars)
Post Office
Date
All Bond Sales
Bank Bond Sales
Bond Sales
Series G
Total
$ 4,201
$ 7.535
352
9,092
7,205
3,794
6,962
9,280
1,457
17.332
11,822
7,407
13,818
16,878
6,211
5,835
994
3.459
10,288
9,569
6,862
7.515
5,412
5,502
2,967
5,110
3.754
936
5,312
4,145
3,107
2,375
11,750
7.714
8,764
6,603
3,259
4,025
4,811
7,897
7,320
8,903
6,564
3,636
4,788
797
3,259
4,025
4,811
10,621
8,273
10,405
4,542
1,987
9,669
5,631
6,475
3,976
4,542
1,987
12,166
6,804
8,485
6,662
9.337
9,364
7,973
6,068
3,467
5,290
4,605
4,779
954
3.996
3,387
4,631
5,382
891
3.996
3,387
4,631
5.382
3,852
891
3,852
10,817
7,491
10,890
10,940
9,522
$ 18,051
$100,260
$187,487
$105,740
$ 18,051
$100,260
$224,050
Series G
Total
Series E
$ 4,201
$ 6,518
$ 2,767
352
9,092
7,205
3.794
6,962
9,280
1,457
13,954
10,761
6,232
11,850
14,816
4,922
6,798
3,879
2,869
5,867
6,340
4,402
3,383
994
3,459
7,836
3.321
2,115
3,862
2,563
936
5,312
4,145
3,107
2,375
797
612
1,503
3,840
2,683
3,285
3.978
2,803
1,149
22
2,497
1,173
24
2,332
753
25
829
26
1,553
1,577
1,549
3,736
2,638
3.737
3,028
3,230
$ 36,563
$ 69,176
Series E
Series E
$ 1,017
$ 1,750
3.377
1,061
1,175
1,968
2,062
1,289
3,421
2,818
1,694
3,899
4,278
3,113
10
2,452
12
2,181
13
852
14
15
1,249
1,191
17
2,724
18
953
19
November 1941
1
Mut
5
6
7
8
21
27
28
Total
Series F
$
567
1,442
738
744
988
1,258
602
547
473
807
840
637
969
954
Series F
567
$
1,442
738
744
988
1,258
602
547
473
612
807
1,149
840
753
637
969
Office of the Secretary of the Treasury, Division of Research and Statistics.
November 29, 1941.
Source: All figures are deposits with the Treasurer of the United States on account of proceeds of sales of
United States Savings Bonds.
Note: Figures have been rounded to nearest thousand and will not necessarily add to totals.
380
PORDEFENSE
FIELD ORGANIZATION
BUY
UNITED
STATES
SAVINGS
News Letter
DEFENSE SAVINGS STAFF
BONDS
MISSAMPS
TREASURY DEPARTMENT, WASHINGTON, D. C.
NOVEMBER 29, 1941
NUMBER 28
TO THE FIELD STAFF:
There are three important activities of the moment, which are being
pushed by many of our committees and which should have the prominent atten-
tion of all. They are:
1. The formation of Buy-a-Bond-a-Month Clubs. Reports from many
sections indicate the growth of plans which promote the purchase of a bond
every month. Association memberships and other groups are making pledges
to this end. In Pay Roll Allotment Plans, executives and other higher
of
paid employees are subscribing to allotments calling for the purchase
a bond each pay day. Banks, Savings and Loan Associations, and Credit
Unions are sponsoring such clubs. It is important to the success of our
work that every effort be used to increase the number of individuals buying bonds with regularity. Every sales method we are using has as its
purpose, - regular, systematic, convenient saving.
2. The use of Defense Bonds and Stamps as Christmas Gifts. Our
securities should have a prominent place on the many gift lists. This will
be done, particularly if attention is focused on it. A real service can be
performed by our committees if this idea is given prominence in all our
activities. Also, Christmas cards containing Stamp Albums, now available,
may well serve to start many individuals on the road to bond ownership.
3. The teaching of thrift on the eve of holiday spending. Every
indication points to extensive holiday and Christmas spending this year.
It may reach staggering proportions. Now, as never before - for every funda-
mental reason behind Defense Savings - our committees should teach the value
of thrift and saving. A half million retail merchants - taking a long range
point of view - are doing their part. We should join them with all the
strength at our command.
21 SHOPPING DAYS
to Christmas
Sincerely yours,
GALE F. JOHNSTON,
Also GIVE
U.S. DefenseSavings
BONDS and
STAMPS
STORESBANKS
POST OFFICES
Field Director, Defense Savings Staff.
News Letter
News Letter
BUFFALO SAVES TO BUY FIGHTER PLANES
FIRST CITY IN THE NATION to stage a
campaign to sell definite amount of De-
fense Savings Stamps within a given period
of time is Buffalo, New York. In the nine
days between November 24 and December 2,
citizens of Buffalo will invest a minimum
of $175,000 in Defense Savings Stamps,
according to the sponsors of this campaign.
THIS DEFINITE OBJECTIVE is the amount
required to purchase two Buffalo-built war
planes--8 Curtiss P-40 and a Bell Airacobra.
Hence, the slogan of the campaign: Invest
in Defense Stamps - To Buy Buffalo-built
Airplanes.
If
From New York Evening Post
IN THIS ISSUE
BUFFALO Seeks Definite Objective - Page 3
CIO Endorses Program - Page 4
STAMP SALES Up For Fourth Month - Page 5
FIRST TOWN 100% For Systematic Savings - Page 5
PRIZES, Premiums and Commissions - Pages 6 and 7
IN THE SCHOOLS - Pages 8 and 9
TO THE LADIES - Pages 10 and 11
FIELD ORGANIZATION NEWS: Arkansas Reports - Page 12
HIGHLIGHTS: California, Georgia and Idaho - Page 13
Illinois, Kansas, Kentucky and Massachusetts - Page 14
Minnesota, Missouri, New Jersey
and North Carolina - Page 15
SYRACUSE BANK Forms Bond Club - Page 16
CHICAGO'S BIGGEST Bank Selle Bonds - Page 17
BUYERS Interviewed - Page 18
COLLEGE ALUMNI Help - Page 18
RADIO PROGRAMS For Coming Week - Page 19
INDIANS Invest - Page 20
LEESBURG LIONS' Like Stamps - Page 20
Airline hostesses guard the
$250,000 worth of Defense Sav-
ings Stamps enroute to Buffalo
for the fighter plane campaign.
A SPECIAL FUND of $4,000 for special
posters and other promotional materials
was raised for this campaign by the committee of merchants sponsoring the
event. This committee is headed by Albin O. Holder. Other members are
Henry W. Comstock, Kenneth v. Mallen. Joseph H. Schinstock, Kenneth 3.
Smalley, Herbert M. Uline, A. B. Wright, and John F. Zietlow, Jr. Howard Le
Volgenay, executive secretary of the Buffalo Chamber of Commerce, and Lare DeS. Potter. Deputy Administrator for the Western Division of the New York
fense Savings Staff, are also taking active parts in this big event.
MANY ORGANIZATIONS are cooperating to make it a success:-
Retail stores to all kinds have stamps on sale at convenient
places, many of then having set up specially decorated stamp
booths. Throughout the downtown area, special window displays
have been arranged.
A special mailing to practically every household in town (the
225,000 accounts of the Buffalo Niagara Electric Company) brought
a direct appeal to every citizen, as the drive opened.
Army. Navy. Marine Corps and Coast Guard provided equipment and
details of men for a big parade.
DAY TO DAY PROGRESS of the campaign is being charted on a billboard the in
Buffalo's Lafayette Square. The billboard carries large pictures of
two airplanes which symbolise the campaign's goal. Attainment of commemorat- this goal
will be recognised in special plaques on two U. S. Army planes, Defense.
ing this specific contribution of Buffalo residents to National
"MILLIONS FOR DEFENSE." the Treasury Hour program for December 2,
(Tuesday evening from 8:00 to 9:00 P. M., over stations of in! the Columbia Net-
work) will include a Salute to Buffalo. Be sure to tune
-3-
News Letter
News Letter
CIO FORMALLY ENDORSES PROGRAM
STAMP SALES INCREASE 19.2% IN OCTOBER
DELEGATES TO THE FOURTH ANNUAL CONVENTION of the Congress of Industrial
Organisations. meeting recently in Detroit, endorsed the Defense Savings
Program by adopting the following resolution:
"WHEREAS, the United States Treasury Department has established
the Defense Savings Program as a democratic means of financing
SALES OF DEFENSE SAVINGS STAMPS for October reached a total of
$5,935,934, establishing the highest monthly total since the Stamps were
placed on sale last May 1, the Treasury Department announced on November
14. This figure, compared with the $4,978,000 worth of Defense Stamps
the Nation's tremendous expenditure for defense, and
sold in September, shows an increase of 19.2 percent. It marks the fourth
straight month that the sale of Stamps has risen.
"WHEREAS, the purchase of these bonds is a patriotic duty in this
period of national emergency, and
first made available, have been as follows (figures rounded to the nearest
MONTHLY SALES of Defense Savings Stamps since May 1, when they were
thousands):
"WHEREAS, the liberal purchase of these bonds by workers constiMay
tutes a safeguard against inflation and at the same time provides
a splendid financial backlog for themselves and their families
June
July
August
September
against any post-emergency readjustment in a safe and secure
investment;
October
"NOW, THEREFORE, BE IT RESOLVED, That this Convention hereby on-
dorses the Defense Savings Program and urges its affiliated bodies, locals and members, to purchase Defense Savings Bonds.
UPON BEING INFORMED of this action, Secretary Morgenthay wired a
message of appreciation to CIO President Philip Murray.
$3,475,000
2,802,000
3,288,000
4,454,000
4,978,000
5,936,000
Total $24,933,000
A breakdown of sales by denominations indicates that approximately
21,385,000 separate stamps were sold during October, with the 25# denomination leading all others and accounting for 14,406,000 sales. Approxinately 4,625,650 ten-cent stamps were sold during this month.
OKLAHOMA TOWN REPORTS EVERY CITIZEN SAVING SYSTEMATICALLY FOR DEFENSE BONDS
OTHER LABOR NEWS:-
ACTIVE ASSISTANCE of the New Jersey State Federation of Labor in the
installation of pay roll allotment plans has been assured as a result of the
adoption by that organization's annual convention of two resolutions. One
endorsed the program in general terms: the other provided for the appointment by the Federation's president of a #Post Defense Security Commission,"
which has the duty of
"Visiting all local unions, to point out the patriotic duty
of the unions and their members, on a voluntary salary allotment plan, to use part of their weekly surplus earnings for
the purchase of United States Defense Bonds.
AN IMPORTANT ACTION was taken recently by the Building Trades Council
of San Francisco when it adopted a resolution placing itself on record as
in favor of systematic savings through pay roll allotment and appointed a
committee to cooperate with San Francisco representatives of the Defense
Savings Staff in promoting widespread participation in allotment plans.
INVESTMENT of $50,000 in Defense Bonds by the International Union,
United Automobile Workers was reported recently by George F. Addes, Secre-
tary-treasurer of the Union.
-4-
GENE AUTRY. OKLAHOMA claims the distinction and honor of being the
first incorporated town in the United States to have every citizen pledged
to buy Defense Stamps or Bonds regularly for the duration of the present
emergency.
THIS CARTER COUNTY TOWN of 259 inhabitants, formerly the town of Berwyn,
was officially named "Gene Autry" in honor of its most prominent citizen,
who has a ranch nearby, at ceremonies on November 16. Governor Leon c.
Phillips was the principal speaker. State Administrator H. C. Jones was
present and received from Mr. Gene Autry the scroll prepared by Louis
Fischl, Carter County Defense Savings Administrator, bearing the names of
all citizens of the town and their Defense Savings pledges.
THE DEFENSE SAVINGS CLUB of the Life Underwriters Association of
Pensacola, Florida has 62 members according to its president, 2. E. Bellah.
Every member is pledged to make regular weekly or monthly payments towards
the purchase of Defense Bonds for the duration of the present emergency.
News Letter
News Letter
PRISES PREMIUMS AND CONISSIONS
PRIZES, INPREMIUMS
AND COMMISSIONS
DEFENSE SAVINGS BONDS AND STAMPS.
DEPRESE SAVINGS BONDS AND STAMPS.
(Continued)
Business concerns throughout the nation have keyed their sales and
other contests to the subject which dominates all our thoughts these days
by using Defense Bonds and Stamps instead of cash or merchandise in the
contests which they conduct among their salesmen, other employees, and
customers.
Defence Bonds were the awards sought by Underwood
Elliott-Fieber Company branch office employees in the
company's "Minute Man' sales promotion contest. (At
the left, one of the pieces used in this sales competition.) The Stonhard Company of Philadelphia, manufacturer of building maintenance materials, has been
awarding Defense Bonds in various sales contests.
won'twin years
Assistant Sales Manager J. H. Dooley reports: "Our
Defense Bond
salesmen value the bonds more highly than cash or norRoute salesmen of the Carolina Baking Company of Columchandise prises"
bia, South Carolina are awarded Defense Stamps for effecting economies,
Through these contents, the Defense Savings Program and the essential
facts about the Bonds and Stamps are brought to the attention of many persons - the participants in the contests, and a great many others to whom
they explain the contests and the awards.
State and local committee members have done much to promote the use
safety records, and increased sales. Special merit awards for good sales
of Bonds and Stamps as prises and premiums. However, the idea is still
good one and has countless adaptations and applications. Here are a few
records are now made is Defense Stamps instead of cash by the Auto-Soler Com-
examples:-
1
With a direct appeal to its underwriters to
DANY of Atlanta. The Piere-Tucker Bag Company of Washington, D. C., offere commissions to its agents, either in Defense Bonds or cash, a $25 Bond
being earned by selling $100 worth of merchandise. William B. Reily and
Company of New Orleans gives a ten-cent Defense Stamp with every purchase of
three pounds of its Lusianne Coffee and 25-cent Defense Stamps to salesmen
for selling 100 pounds of this product.
support the National Defense Program, the General
American Life Insurance Company of St. Louis,
Missouri, conducted in October, a nation-wide sales
contest in honor of its President. All prises were
Defense Bonds and Stamps, were among the avards for which Sears, Roe-
in Defense Bonds and Stamps.
buck & Company employees competed in a company-sponsored "Supply Savings
Defense Bonds and Stamps are the special avards
sought by the agents of the American Casualty Company of Reading, Pennsylvania, in its nation-wide
sales campaign which closes January 17, 1942. The
campaign is "dedicated to the National Defense Pro-
Contest." Contestants turned in suggestions on how to save paper, metal,
and fabrics. The Arkansas and Missouri Power
Corporation is paying all prises and commissions
earned by its employees in Defense Bonds and
Stamps. In the current "Beat the Promise
gran of the United States of America and our belief
that every citizen and business firm should contribute
their utmost, both financially and morally to the maintenance of our Democratic Vay of Life."
campaign of the R. C. Manufacturing Company.
in which all departments of this large organisa-
The special awards in the *President's Month* sales contest of the
Beneficial Life Insurance Company of Salt Lake City, Utah, were in Defense
Stamps are awarded as prises. The Prime Tanning Company of Berwick, Maine gave each of its
175 employees $25 Defense Bonds instead of tur-
Bonds and Stamps. $100 Bonds were given to every salesman who wrote $85,000
worth of insurance during the contest period.
Columbus, Ohio.
keys, traditional Thanksgiving Day gifts.
Ten $25 Defense Bonds were avarded by the Down-
town Merchants of Jersey City during the five shopping days just prior to
Thanksgiving, instead of the customary turkeys.
Defense Bonds were awarded top-notch underwriters - members of the
President's Club - of the Great Southern Life Insurance Company at its
annual sessions in Houston, The American Fire and Casualty Company. Orlando, Florida, gave $90 worth of Defense Stamps as extra prizes in one of
its salesmen's contests this fall. A plan to award Defense Bonds and
Stamps in recognition of field organization work has been adopted by the
Pacific Mutual Life Insurance Company. Defense Bonds were announced
prises in the fall "Victory Drive" of the Mutual Life Insurance Company of
tion are striving to exceed their production
quotas and produce equipment ordered by the Army
and Navy ahead of schedule, Defense Bonds and
as
The Quality Service Food Stores of Atlanta offer their customers
pack10-cent Defense Stamp for every 10 wrappers from ABC bread. Coupons
aged with Crescent Coffee are redeemed by the Crescent Manufacturing Company
of Seattle, Washington, in Defense Stamps - ten coupons being exchangeable for
two 25-cent stamps.
News Letter
News Letter
IN THE SCHOOLS
SCHOOLS
Public-spirited Clubwoman Launches Successful School Program in Akron
Teachers' Magazines (Continued)
One way to get a Defense Savings Program started in a city school
system has been recently demonstrated in Akron, Ohio. In September, not
stamp was being sold in the public schools, Early last month, the city's
40,000 school children were buying $3,500 worth of stamps each week, and
school
officialsstamp
expected
the total
of
one 10-cent
for each
child.to reach $4,000 before long-an average
Best display was that of the Oklahoma
Teacher, which devoted its November cover to
Defense Savings (see cut). The lead story in
this subject that the Oklahoma Teacher has
published this year. The author was Paul
Taylor. Superintendent of m Reno City Schools
and Chairman of the Education Division of the
started this Fall, Mrs. Fair
Oklahoma Defense Savings Committee.
noticed with some dismay that
Some of the other teachers' magazines that
have recently published articles on Defense Savings include: The Sierra Ed-:
ucational News (California), The Journal of the Florida Education Association,
Georgia Education Journal, Idaho Journal of Education, Midland Schools (Iowa)
while Defense Savings Stamps were
being sold in banks, postoffices
and many stores, they were not on
sale in the schools- the most
convenient places for children
Kansas Teacher, Maine Teachers' Digest, Massachusetts Teacher, New Mexico
School Review, Oregon Education Journal, Pennsylvania School Journal, Utah
Educational Review and the Wisconsin Journal of Education.
to buy.
So Mrs. Fair got busy. In
buy themselves a share in America from
Mrs. E. M. Mink, who is in charge of the
school's Stamp Sales booth. The children
are Shirley Helm, Jaqueline Peck and
Vayne Jones.
(
AT MASON SCHOOL in Akron, three pupils
TEACHER
the magis urged schools to get busy with
their programs. It is the second article on
How it happened is a onewoman story. The woman is Mrs.
Ray Fair, an Akron clubwoman
and enthusiastic Home and School
League member. When school
a short time, she had worked out
a plan, and had gotten it approved by city school executives,
OKLAHOMA
full page displays to these articles.
A new article for teachers' magasines describing the SHARING AMERICA
program outlined briefly in last week's NEWS LETTER is now being prepared
by the Defense Savings Staff.
Postmaster Pat Webb and President
C. W. Enyart, of the First Cantral Trust Company. The plan
vas this:
The Bank would buy the 10,
25 and 50-cent stamps in quantity from the Postoffice, and distribute them
to schools in amounts determined by each principal. The schools would not
have to put up money in advance, but would return proceeds of the sale to
the bank. Stamps would be sold in the schools each Tuesday by special committees from the various Home and School Leagues.
Here and There
Junior high schools are among the most active participants in the Defense Savings Program. For example: At Joe Brown Junior High in Atlanta,
Georgia. 30 ninth-grade boys and girls go into classrooms every morning
collecting orders for Stamps, which they later deliver. At Cheektowage
District School No. 3. near Buffalo, New York, a committee of three eighthgraders handle all Stamp sales. At Caroline High School in Denton.
Maryland, the ninth grade mathematics
class introduced Defense Savings to
Mrs. Fair started the program with a week of public education. The
first Defense Stamp Tuesday brought in $1,100, the second netted $2,500,
each class, then took charge of sell-
mothers of Akron who are cooperating with her on this program!
Grade school children are
enthusiastic stamp purchasers. The
picture at the left shows a delegation from a Safety Harbor Florida
school marching to the airs of a
Boy Scout Band on the way to the
postoffice to buy their stamps.
the third $3,000 and the fourth $3,500. Hate off to Mrs. Fair and the
Teachers' Magazines Spread the Message of Defense Savings
During the past three months, state teachers' nagasines throughout the
country have been publishing articles on Defense Savings prepared by the Dofense Savings Staff or written by local educators. Most of the magasines.
which are official publications of state teachers' associations, have given
ing the Stamps.
News Letter
News Letter
TO THE LADIES
TO THE LADIES
District of Columbia Women's Division Active
The Washington Club (Continued)
COOPERATION with the U. S. Office of Civilian Defense during Civilian
Defense Week, promotion of the idea of giving Defense Bonds and Stamps as
Christmas gifts, and assistance to a wide variety of women's cluba in
ing special programs on the subject of Defense Savings are some of the stag- activities being developed under the auspices of the Women's Division Committee of the Defense Savings Committee for the District of Columbia.
DURING CIVILIAN DEFENSE WEEK, Defense Savings Stamp booths were set
at two Washington high schools - Dunbar and Woodrow Wilson - and at both up of
these schools the Defense Savings film "America Preferred" was shown. In a
letter from the Office of Civilian Defense, the thanks of Mrs. Franklin D.
Roosevelt
ing in this were
way. extended to the D. C. Defense Savings Committee for co-operat"We have received many comments from both students and members
of the community on their interest in the Defense Savings Program," the letter continued, "and we hope that your excellent
exhibit will stimulate more buying and more awareness of the vital part which your program is playing in National Defense."
THE MEETING OF THE HEADS of the leading women's organisations in the
District of Columbia called by the Women's Division Committee (reported in
the NEWS LETTER, November 22) continues to bear fruit. In addition to the
results previously reported, two additional organizations have been stimulated by this meeting into effective activity on behalf of Defense Savings
objectives.
The Washington Club, a 50-year-old women's organisation, devoted
its Annual Fall Meeting in November to an unusually dramatic Defense
Savings program, arranged by Mrs. Frank Bunker. a member of the club's
governing board. Ten board members each gave a 2-minute talk on some
phase of Defense Savings. Two members read parts of "We Gala Have To
Stick Together," entitling their presentations, "Liberty and Women's
Job in Preserving It.' Next, three members stood together and each
read a part of Eva Curie's pamphlet, *It Is Not Too Late.' After they
had finished this reading, one said, *It is too late for France": the
next "for Poland": the third "for Belgium': and so on in rotation,
naming all of the subjugated countries. Then, as a climax, they all
three repeated in unison: "But if we save a dine a day, it is not too
late for the U. S. A.'
In other talks, based on the Secretary's speech "The Fight Against
Inflation." and other official publications, the objectives and methods
of the Defense Savings Program were outlined. The program was interspersed by the singing of patriotic songs. At its conclusion. the club
members voted enthusiastically to endorse the government's Defense Sayings Program, to invest club funds in Defense Bonds, and to have Dofense Stamps on sale at every meeting and program of the Club. As the
members left the meeting, each one was given a kit containing the five
pamphlets issued by the Defense Savings Staff which had provided the
basis for the program.
The League of Women Voters in the District will include Defense
Savings in its study program. At its most recent meeting, copies of
"We Gale were distributed to its members.
COLLEGE ALIMNAE CLUBS AND SORORITY ALUMNAE GROUPS in the District have
shown genuine interest in Defense Savings. Letters from the Women's Division
Committee to the presidents of these numerous organizations have brought a
gratifying response and already many of them have made arrangements to
devote attention to Defense Savings at their meetings.
MEMBERS OF THE D. C. WOMEN'S DIVISION COMMITTEE meet to discuss plans. From
left to right: Mrs.
Wilson Compton, Mrs.
Henry A. Wallace,
Mrs. Daniel W. Bell,
Mrs. Raymond Clapper,
Mrs. Curtis Shears,
Mrs. John Jay O'Con-
nor, and Mrs. Harry
S. Bernton. The
eighth member of this
committee is Mrs.
Harlan Fiske Stone.
Food for Thought
To call attention to the Defense Savings Program, the Minneapolis
Star Journal is running a series of statements on Defense Savings by prominent local women. In a recent issue, Mrs.L. R. Uphan, President of the
Minnesota Federation of Women's Clubs, said:
"My husband and I see Defense Savings Bonds as a way of
providing ourselves with an annuity. Every month we buy
a bond for $37.50 from our bank: 10 years from now ve shall
receive $50 a month as each bond falls due. Ve can support
National Defense and at the same time make our own future
more secure.
10
11
News Letter
News Letter
FIELD ORGANIZATION NEWS
FIELD ORGANILATION KRYS
Leaders Appointed In Six States: Reports And Highlights From Many States
APPOINTMENT of an Honorary Chairman, a Chairman and four State Admin-
Reports and Highlights of Recent Developments (Continued)
istrators for
during
past ten days
nearly
the rosters of these
leaders
the the
52 divisions
of our
Fieldcompletes
Staff.
The Arkaneas State Teachers Association has pledged the cooperation of
its members in promoting Defense Savings in the schools. Virtually every
school in the state is understood to have Defense Stamps on sale. The
Kappa Kappa Gamma sorority at the University of Arkansas staged a "dinnerdance-for-defense." Defense Stamp albume containing the first stamps toward
Defense Bonds were favors. First owner of a Defense Bond in Rison was a
10-year-old girl, little Miss Pegez Thomasson.
THE NEWLY APPOINTED Honorary Chairman is Governor George A. Wilson of
Iowa. The newly appointed State Chairman is Ernest Clayton. president of
the Industrial Trust Company of Providence, Rhode Island.
FOUR ADDITIONAL STATE ADMINISTRATORS can be introduced to "veteran"
members of the Field Staff at this time: Valter N. Ruth. who will serve
in this capacity for the State of Maryland; William J. Starr. Jr. a Man-
CALIFORNIA. #Perching Square in the heart of downtown Los Angeles
will be the site of the *Defense House* which opens there for a six-weeks
chester attorney, who has been appointed State Administrator for New Hamp=
shire; R. R. Wolfer, chairman of the board of the National Bank of Jamestown, who has been appointed State Administrator for North Dakota: and
WITH THESE APPOINTMENTS, there are 39 Honorary Chairmen; 43 Chairmen;
and 49 State Administrators, one for each of the field divisions, with the
exception of Delaware, Kentucky and Nebraska.
1
Charles Christopherson, president of the Union Savings Bank of Sioux
Falls,
a dollar-a-year man who will serve as State Administrator for South
Dakota.
"run" on December 1.
GEORGIA. Chairmen and committee members from counties in the sixth
and eighth Congressional Districts net in meetings held recently in Macon
and Vaycross. U. S. Senator Richard B. Russell, Jra. addressed the meeting
in Macon. State Chairman Arthur Lucas, State Administrator Marion H. Allen
and Deputy Administrator Arthur Cheather attended and spoke at both meetings. Margaret Mitchell. author of "Gone With The Wind," and resident
of Atlanta, was photographed recently with State Administrator Allen as she
released a statement reading:
"Whether ve go into var or not, we must be prepared for
Reports and Highlights of Recent Developments:
ARKANSAS. In a recent statement, Governor Homer M. Adkins urged the
purchase of Defense Savings Bonds and Stamps.
"Since Arkansas is industrially benefitting very materially
by the Defense Program," the Governor said, "let us all
respond to the government's call by buying Defense Savings
Bonds and Stamps in a generous manner."
State Administrator Roy G. Paschal, Deputy Administrator C. K. Vilkerson. and G. Burlingame, prominent business man and civic worker, discussed Arkansas' part in the Defense Savings Program in a 15-minute round
table radio broadcast recently. The program was transcribed and the tran-
scription is being sent to every radio station in Arkansas.
The "group agent" bond and stamp purchase plan is being placed in
operation for the benefit of State Government employees. Deputy Administre-
tor C. K. Vilkerson outlined the plan recently to heads of all State Departments, at a meeting in the House Chamber at the Capitol.
Rallies to stimulate interest in the sale of Defense Bonds and Stamps
have been held in Paris and Stuttgart (Arkansas).
var. If I can help by buying Defense Bonds, I am
glad to do so.
It is estimated that more than 60,000 Georgians are now saving for Defense Bonds through the pay roll allotment plan. Defense Stamps were
prises in the Atlanta Bureau of Fire Prevention's poster contest.
IDAHO. First of the "America Speake" programs
arranged by Deputy Administrator John Churchill was held
in Moscow. on the evening of November 11. Theme of Mr.
Churchill's dramatically effective address which is to
be presented during the next few weeks in every city in
the state-is a graphic description of the blessings and
privileges of the American way of life. At the conclusion of his talk, he introduces the members of the local
Defense Savings Committee with the aid of a specially
constructed lighted display piece, which shows the role
or function of each member and emphasizes the committee's
It is reported that no
representative character.
known meeting of any kind of importance within the state
has failed to have some representative of the Defense
Savings Program as a speaker. Local chairmen have
been asked by Administrator John R. Viley to reply to a
*
TONIGHT
"AMERICA
SPEAKS'
PATIENT
brief seven-point questionnaire on the activities of their committees.
13 12
*
News Letter
FIELD ORGANIZATION LEVS
News Letter
FIELD ORGARIZATION LAYS
Reports and Highlights of Recent Developments (Continued)
Massachusette (Continued)
ILLINOIS. Six specially decorated Seeburg Automatic Phonographs have
been placed at the disposal of the Illinois State Headquarters for use in
plugging the song "Any Bonds Today?". In the picture at the left. one of
these phonographs is on duty" at the LaSalle
Street Station in Chicago. The attendants are
three girls from the office of State Administrator Norman B. Collins, who of their own volition
and without the knowledge of the Administrator
or his deputies, devoted one entire week-end-
Club.
$25 Defense Bond.
MINNESOTA. Every one of the 50 members of the Defense Savings Consittee for Rice Country. Minnesota, has invested in at least one Defense Bond
and has pledged himself or herself to buy additional bonds at regular
intervals. L. 3. Chappuie of Fairbault, is the chairman. He and his
colleagues believe in practicing what they preach!
Saturday afternoon and evening and all day Sun-
day to attending the stamp booth located just be
side the patriotically decorated phonograph which
plays "Any Bonds Today1, for all those who purchase stamps. Their efforts netted Uncle San
We would be glad to have similar
reports from other committees.
MISSOURI. The Committee for Metropolitan St. Louis has arranged for
1
about $350.
every filling station in the city and county to display appropriate De-
fense Savings posters and to place Defense Savings Stamps on sale.
KANSAS. Investment of $50,000 in Defense
Bonds by the Kansas School Fund Commission was
NEW JERSEY. Local outdoor advertisers are making an important contri-
the action taken by this group of school offi-
bution to the Program, particularly in northern counties. Pictured below
cials to signify endorsement of the Defense Sayings Program and to encourage school children to participate by saving for
plan was the Kornblum Packing Company of Kansas City, Kansas. Buck Jones.
movie star, autographed Defense Savings Stamp Albums for his fans when he
made a personal appearance recently in Atchinson, Kansas, at the suggestion
of Carl G. Klostermeier, Chairman of the Defense Bond Committee of the
Atchinson Junior Chamber of Commerce.
are a few of the outdoor displays which have been donated by their owners
to the promotion of the sale of Defense Bonds and Stamps.
(
Defense Stamps and Bonds. One of the first industries in the State to
report one hundred per cent employee participation in a pay roll allotment
Defense Stamps are prises at the card parties of the Chathan Woman's
"Miss Emerson College Freshman for 1942 received as a prise a
FOR
Armistice Day ceremonies in Leavenworth were in charge of William D.
Reilly. the active chairman of the Leavenworth Defense Savings Committee.
Many marchers in the parade carried Minute Man Posters.
KENTUCKY. A special effort to sell Defense Stamps was made in Louisville on November 7 and 8, under the auspices of the Market Street Retailare Association. Army equipment from Fort Knox, gaily decorated booths,
window displays, and a parade with several bands helped make the event a
success. Volunteers from the city's leading women's organizations staffed
the stamp booths.
MASSACHUSETTS. Steady progress in presenting the essential facts about
the pay roll allotment plan to employers and employees in the larger factories and businesses in the state is reported by State Administrator
Daniel J. Doherty In Melrose, the Rotary and Lions Clubs donated $100
each to establish revolving funds to place Defense Stamps on sale in city
Newark
West Orange
NORTH CAROLINA. Secretaries of central labor unions in North Carolina have been appointed to membership on the local Defense Savings Commit-
tees in their communities. The City of Greensboro, N.C., has followed
the lead of the City of Winston-Salem and installed a salary allotment
plan, thus becoming the second city in the state to make this convenient
method of participation available. State Administrator Robertson reports
that many other cities in the state have installation of the plan actively
under consideration.
schools.
1514
Newark
News Letter
News Letter
CHICAGO'S BIGGEST BANK PUSHES SALE OF DEFENSE BONDS
SYRACUSE BANK LAUNCHES A DEFENSE BOND CLUB
THE AGGRESSIVE SALES PROMOTION PROGRAM adopted by the Continental
THE NEW "DEFENSE BOND CLUB," established by the Onondaga County Savings
Illinois National Bank & Trust Company to step up sales of Def ense Savings
Bank of Syracuse, New York to help Syracusans participate in the Defense Say.
ings Program, of ficially got under way November 3 with Mayor Rolland B. Marvin becoming the No. 1 member. The picture below shows Mayor Marvin making
his first payment at the bank's attractively decorated Defense Bond window,
Bonds vas outlined in detail in the October 18th issue of the nagarine,
"The Commercial West." Here are the fifteen steps which this bank has
taken in connection with the Defense Savings Program:
ENDORSEMENTS OF THIS SYSTEMATIC SAVINGS PLAN
1. A colorful electric flasher sign, fold
have come to Bank President Harold Stone from many
prominent Syracusans. Mayor-elect Thomas E. Ken-
ers, and blotters have been placed on the
information desk in the entrance lobby:
wrote:
2. Eight large signs in red. white, and
blue have been placed in conspieuous
floor locations within the bank:
"With millions of Americans already making
great sacrifices for America's preparedness,
3. About 50 signs have been placed on
counters throughout the bank and its affilisted safe deposit company;
it seems a little thing to ask that everyone
take the trouble to make & personal investment which will provide money for the defense
effort. But no matter how good our intentions,
most of us are procrastinators by nature. The
4. A separate sales window and in-
Defense Bond Club of the Onondaga County Sav-
ings Bank seems to me to offer an excellent
solution. The important thing for many people
is to get started. Once started, I - sure
they will continue their weekly deposits."
*
New arrivals in the homes of employees of Salkin and Linoff, Inc. of
Minneapolis, Minnesota now receive birthday greetings in the form of $25
Defense Bonds. Thirty-seven Bonds have so far thus been issued, according
to Samuel Salkin, head of the firm. The company operates a chain of stores
in the Northwest and is co-operating in other ways with the Defense Savings
sheets) about defense bonds and tax notes
has been mimeographed and supplied to
all personnel engaged is giving informa-
personnel plan whereby regular de
down have been provided, an information booth, suitably decorated has been
erected, and six application desks have
been placed adjacent to the booth- all in
ductions from salaries are made to apply
on the purchase of bonds and tax notes;
its affiliated safe deposit company:
7. A defense bond blotter has been
given to each savings department cus
stamps;
12. The bank has made available to its
18. The bank's statement of condition
booklets carry the American Bankers As
sociation's defense bond cut on the back
cover;
14. The bank has joined with other
Chicago banks in publishing . series of
four cooperative advertisements in five
Chicago newspapers over . period of 20
weeks:
tomer making a deposit or withdrawal
since July 1:
1
BONDS FOR THE VERY. VERY YOUNG
bonds, tax notes, and stamps;
11. A list of questions and answers (10
5. Five specially illuminated sales win.
(
"We share the government's belief that these bonds are best purchased
out of income, President Stone is quoted as saying. "If this method
is followed, the government will not only receive the necessary funds
for building tanks, guns, planes, and all other weapons we stand in
need of, but each bondholder will be building up for himself & reserve
fund which will stand him and the country in good stead when the United
States returns again to a peacetime economy."
10. More than 40 man have been in.
structed and trained in selling defense
tion about and selling bonds notes, and
6. Defense bond and tax note folders
are kept available on counters and customers' desks throughout the bank and
Club; and letters describing the club plan have been sent by the bank to
all manufacturers, retailers, and other employers of 50 or more persons
in the city, urging their co-operation. The bank has indicated that it
is prepared to open and maintain club accounts by mail in order to make
this savings plan as convenient as possible.
employee;
formation facilities have been provided in
the government securities division in the
commercial department;
the savings department;
OF THE BANK'S OWN STAFF, 68 strong, practically all have joined the
Informative mimeographed bulletins
and defense bond and tax note folders
have been distributed to all officers and
8. A defense bond blotter one month,
15. Photographs have been made of the
bank's defense savings bond booth for re-
lease to various bank journals
and a tax note folder another month have
been enclosed with statements to commercial customers:
"MAKE THIS A MERRY AMERICAN CHRISTMAS
Illustrated at the right is the specially designed "gift wrapper" for Defense Bonds which has
been made available to bankers by the American Bankers Association. The association has also prepared
a new folder describing Defense Bonds, with the
same cut of "Santa" on the cover.
Thus the splendid cooperation being extended
to our program by bankers in all parts of the
country continues, such to the satisfaction of
the Defense Savings Staff.
Program.
17 16
News Letter
News Letter
ODDS AND ANDS
ON THE AIR
Local Bond Buyers Interviewed
Well-known buyers of Defense Bonds are being photographed by the Orean
wich Times, Greenwich, Connecticut. Recent issues have contained pictures
and brief statements on Defense Bonds of a policeman, several local bankers,
a
hotel desk clerk, a pharmacist. a butcher, and housewife who had recently
purchased bonds.
Here is a simple plan for publicising Defense Savings which other
papers might like to use.
College Alumni Association Helps
Villanova College in Pennsylvania
joins the growing number of colleges
and universities which are finding
effective ways to boost the Defense
Savings Program. The cover of the
October issue of the Alumni Magazine
featured the Minute Man and carried a
two page article on the purposes and
aims of the Defense Savings Program.
"Gee! Come over every night-I'm
Leading Programs for the Coming Week:
"FOR AMERICA WE SING*
Monday, December 1
Dr. Frank Black's Orchestra and Chorus
GUEST STARS: Robert Weeds and Elisabeth Lennox, noted
radio and concert artists.
Tuesday, December 2
THE TREASURY HOUR:
saving to buy Defense Bondi*
8:00-9:00 PM (EST)
NBC Blue Network
Variety program with leading
entertainers of stage, screen
AMERICA PREFERRED
9:00-10:00 PM (EST)
Mutual Network
Alfred Wallenstein's Orchestra; Deems Taylor Commentator
GUEST STAR: Laurits Melchior, Wagnerian tenor of the
Metropolitan Opera Company.
Saturday, December 6
"THE TREASURY CONCERT"
9:30-10:30 PM (EST)
NBC Hlue Network
The first of two special Saturday night concerts by the
suggesting that gifts to the college
NBC Symphony Orchestra conducted by Arturo Toecanini.
be made in the form of Defense Bonds
(Series F or G) registered in the
off The Record. by 84 Reed
A New Use For Defense Stamps
"There's & friend of mine who has been drinking quit a lot." wrote a
friend of the Defense Savings Program. "The other day when he bought me a
drink, be took from his pocket a $50 Defense Bond Album and carefully checked off two blanks.
*I asked him what that was for.
"oh," said he, 'every time I take a drink, I penalise myself fifty
cents. The next time I'm near a post office. I'm honor bound to fill out
the marked squares. I've already put one bond away. and this one is well
on its way. My kids get the bonds.
"When you know that even a free drink is going to cost 504, you
think twice.
"It's not a bad idea. I've started it myself."
"MILLIONS FOR DEFENSE"
and radio.
Thursday, December 4
The Alumni Association is also
name of the Alumni Fund.
9:30-10:00 PM (EST)
NBC Hue Network
On this program, radio listeners will be thrilled to bear the most
popular walts ever written, Johann Straus' "The Beautiful Blue Danube,"
Not only has Maestro Toscanini never before played this number over the
radio, but this is the first time in his long career that he has ever included it on one of his program.
Other selections on this program are Beethoven's Septet in E Flat
Major and the Good Friday Spell from Wagner's "Parsifal."
Secretary Morgenthau will inaugurate the series with a brief introductory talk from the concert platform.
Moratorium on Autographs
Bud Abbott and Lou Costello, movie and radio comedians, have suggested
that stars of the entertainment world declare a moratorium on autographs and
henceforth give their signatures only if the autograph hunters purchase Dofense Stamps.
Many stars on personal appearance tours have already adopted this prac-
tice. Chairmen of Publicity Divisions of local committees may want to take
this up with managers of their local theatres.
-1918 -
News Letter
INDIANS INVEST COMPENSATION IN DEFENSE BONDS
"TALLEST SIGN" HAS
DEFENSE BOND AD
Above are the Caconcito Navajos who invested
$6500 in Defense Bonds out of the $17,000
awarded to them as the result of a trainschool bus crash. The Indians live near
Albuquerque, New Mexico.
KEEP 'EM PATROLLING
Spectacular display on the
tower of the Savage Exposition
Building, which marks the site
of the new home of the Minneapolis Coca Cola Bottling
UY
DEFENSE BONDS
Company.
This billboard on U. S. Route 1 features the destroyer Drayton, which
was built at the Iron Works in
STAMPS ON LUNCHEON CLUB'S MENU!
Bath, Maine. It is one of three
billboards donated to Defense
Savings by Columbia Markets
of Portland, Maine.
Scene at one of the regular weekly meetings of the Leesburg
Lions' Club where Defense Stamps
are regularly on sale. The club
was the first in Florida to report all of its members buying
Stamps each week.
GOVERNMENT PRINTING OFFICE
- 20 -
381
November 29. 1941
Mr. Minosey
Mr. Coshres
will you please send the following cable to the American Consulate, Honging
"for Fes from the Secretary of the Technology.
"By arranging for the elimination of another ppeconger. have
occured recorvation for Sayler for December 10. 1941 as Hong Kong.
Please confirm that he will was this plane."
AMP
c
382
0
P
Y
UNITED STATES COAST GUARD
WASHINGTON
From: Mr. Campbell, Hongkong, China.
Nov. 29, 1941.
To : The Secretary of the Treasury.
"The Domei News Agency advised subscribers last evening
that because of freezing restrictions they were temporarily
suspending their news service in Hongkong."
eh:copy
12-1-41
C
0
383
P
Y
DEPARTMENT OF STATE
WASHINGTON
In reply refer to
November 29, 1941
FD
The Secretary of State presents his compliments to
the Honorable the Secretary of the Treasury and trensmits copies of the paraphrase of telegram no. 1843,
dated November 27, 1941, from the American Embassy,
Rio de Janeiro, Brazil, concerning the purchase of
mark credits by two German banks in Rio de Janeiro.
Enclosure:
From Embessy, Rio de Janeiro,
no. 1843, November 27, 1941.
eh:copy
12-1-41
c
384
0
Y
PARAPHRASE OF TELEGRAM RECEIVED
FROM: American Embassy, Rio de Janeiro, Brazil
November 27. 1941, 8 p.m.
DATE:
NO. : 1843
This telegram is in further reference to telegram
no. 1791 sent by the Embassy at 5 p.m. on November 21, 1941.
Information has now been received by me to the effect that
the equivalent of 12,000 contos of compensation mark credits
have been purchased from the German Embassy here by two German
banks in this city. The statement has been made by the Director
of Exchange that the above-mentioned marks cannot be used to pay
for imports for Germany. They can only be used to pay for
miscellaneous remittances to Germany and to pay for premiums.
CAFFERY
EH:COPY
12-1-41
c
385
0
DEPARTMENT OF STATE
WASHINGTON
In reply refer to
November 29. 1941
FD
The Secretary of State presents his compliments to
the Honorable the Secretary of the Treasury and transmits
copies of the paraphrase of telegram no. 1845, dated November 27,
1941, from the American Embassy, Rio de Janeiro, Brasil, concerning
a request made by the Reichabank of Berlin to the Bank of Brasil.
Enclosure:
From Embassy, Rio de Janeiro,
no. 1845, November 27, 1941.
2
eh:copy
12-1-41
386
C
0
P
Y
PARAPHRASE OF TELEGRAM RECEIVED
FROM: American Embassy, Rio de Janeiro, Brazil
DATE:
November 27, 1941, 9 a.m.
NO.:
1845
The Bank of Brazil has been requested by the
Reichabank of Berlin to have the equivalent of 500,000 escudos
debited to its free milreis account. This amount was to be
credited to the account of the bank in Lisbon, Portugal, with
the Banco de Lisboa e Azores. The reply was made that this
transaction could not be handled by the Bank of Brazil.
CAFFERY
eh:copy
12-1-41
TREASURY DEPARTMENT
387
INTER-OFFICE COMMUNICATION
DATE November 29. 1941
TO
Secretary Morgenthau
CONFIDENTIAL
FROM Mr. Cochran
Registered sterling transactions of the reporting banks were as follows:
Sold to commercial concerns
Purchased from commercial concerns
£27,000
£6,000
Open market sterling remained at 4.03-1/2, and there were no reported
transactions.
The Uruguayan free peso continued to rise, advancing 80 points to a
final quotation of .5210.
In New York, closing quotations for the foreign currencies listed below
were as follows:
Canadian dollar
11-3/8% discount
Argentine peso (free)
Venezuelan bolivar
.2390
.0515
.5775
.2070
.2580
Cuban peso
1/8% discount
Brazilian milreis (free)
Colombian peso
Mexican peso
Mexico.
We purchased $1,125,000 in gold from the earmarked account of the Bank of
No new gold engagements were reported.
During the month of November, our purchases of silver under the Silver
Purchase Act amounted to 300,000 ounces, a new monthly low since September, 1939.
The sources of this month's purchases were as follows:
Type of Silver
New Production
1. From various countries
2. From Canada under agreement
Total
Ounces
100,000
200,000
300,000
AMP.
388
BRITISH EMBASSY
WASHINGTON, D.C.
November 29th, 1941.
Personal and Secret.
Dear Mr. Secretary,
I enclose herein for your personal
and secret information copies of the latest
reports received from London on the military
situation.
Believe me,
Dear Mr. Secretary,
Very sincerely yours,
Halifax
The Honourable
Henry Morgenthau, Jr.,
United States Treasury,
Washington, D. C.
Copy 140
BRITISH MOST SECRET
389
(U.S. SECRET)
27 November, 1941.
OPTEL 3
(1) NAVAL
A Free French Corvette has broken down South West of Iceland in
bad weather and her condition is thought to be serious. Assistance has been
sent.
A Dutch submarine which has been on patrol off North West Italy
reports having sunk two schoolhers.
A British sloop was torpedoed this morning North East of Tobruk;
a destroyer is returning to Alexandria with survivors, No further details
available.
(2) MILITARY
LIBYA. Nothing further to Optal No. 2
RUSSTA. The German advance East of Tula and Orel continues to
progress,
(3) AIR OPERATIONS
25th/26th. 62 tons high explosives were dropped at Breat in
excellent visibility; operation was hampered by a smoke screen but bombs fell
close to the Battle Cruisers. 23 tons were dropped successfully on the docks
at Cherbourg.
26th/27th. 118 aircraft were sent out, 100 to Enden and 18 to
Ostend. 1 bomber is missing and two came down in the seas 1 crew being rescued.
LIBYA. 24th/25th. 24 Wellingtons attacked aerodrome Benina
and Berca and harbour at Benghazi. 25th/26th. 21 Wellingtons again attacked
Benghazi harbour. Satisfactory results were reported. On 25th and 26th,
3lenheime and Marylands heavily attacked enemy forces of tanks and mechanical
transports in SIDI OMAR and BIR SHEFERZEN area; several hits were obtained
on vehicles many of which were set on fire. 25th/26th. 11 Albacores attacked a heavy concentration of mechanical transports in SIDI OMAR area.
2 Squadrons of fighters attacked enemy tanks and ILT. between EL ADEM and
EL DUDA hitting and damaging many vehicles, Fighter. 24th: our fighters
shot down 5 M.E. 110 near SIDI OMAR; 3 are missing. A petrol lorry and
several other lorries were destroyed on the road South of BARCE,
-2 390
25th. 20 Tomohanks intercepted about 60 enemy bombers and
fighters after they had attacked our ground forces near SIDI REZEGH 10
were destroyed, 3 probably destroyed and 8 damaged. 2 of our fighters are
missing. 2 other enemy aircraft were shot down during the day and 4 damaged
on the ground.
5 Blenheims from MALTA successfully attacked a convoy of
petrol lorries and mechanical transports near HOMS Libya.
(4) G.A.F.
26th and 26th/27th. Only slight enemy activity. 1 J.U. 88
was brought down by A/A fire and another probably destroyed by fighters.
1 Spitfire night fighter is missing.
Aircraft casualties in operations over and from British Isles:
(5)
German:
1 destroyed
1 probable
British:
1 fighter and 3 bombers
Total 4.
391
Copy No. 14
BRITISH MOST SECRET
(U.S. SECRET).
November, 1941.
OPTEL No.4.
LIBYA 1330 27th.
Tobruk Forces reached E1 Duda at 1530 26th where contact was
established with some of our New Zealand Troops. In frontier area no
material change. Enemy raiding column still being chased by a portion
of our Armoured Forces.
OPTEL No. 5
On 27th two of our armoured brigades heavily engaged
the enemy moving from area BARDIA - SOLLUH towards EL ADEM in the
area 12 miles South of GAMBUT. Heavy battle still continued at
3.15 P.M. Enemy believed to be his raiding column together with
garrison of HALFAYA trying to escape.
Copy No. 14
392
BRITISH MOST SECRET
(U.S. SECRET)
November, 1941.
OPTEL 2
LIBYA .
24 November. Jalo captured; 200 prisoners taken.
24th/25th November. The enemy raiding column consisting of
armoured oars, about 30 tanks and some M.T., moving towards Sheferzen,
being engaged during the night by part of our armoured forces. During
the 25th of November the enemy column was again attacked near Sheferzen
by our tanks and artillery, 9 enemy tanks being knocked out.
25th November. By mid-day New Zealand troops, supported
by infantry and tanks, had reached a point 8 miles west of Gambut on
the Bardia-Tobruk road, and also a point about 5 miles East of Sidi
Rezegh.
Armoured cars were patrolling track from Sheferzen to Bir
El Gobi the latter had been evacuated by the enemy1 A considerable
portion of our armoured forces and a Southestrican Brigade had also
been concentrated in this area.
B : y night 25th/26th November Tobruk Garrison had made
further progress, capturing two more enemy posts. Enemy artillery fire
reported light.
Our tank situation is reported much improved. The report
of capture of the Commander of one of our armoured Brigades is incorrect.
During the night of 25th/26th November New Zealand troops
captured Sidi Rezegh.
26th November. Stiff fighting continued North of Sidi
Rezegh and by 0900 Tobruk forces could see Now Zealanders signalling.
At 1300 Tobruk Garrison were attacking E1 Duda (3 miles to
North North West of Sidi Rezegh).
393
RESTRICTED
0-2/2657-220; No. 556
M.I.D., W.D. 11:00 A.M., November 29, 1941
SITUATION REPORT
I.
Eastern Theater.
Ground There is no change in the situation at Leningrad.
On the Moscow front, German forces are continu-
ing their advances in the direction of the Volga Canal in the north
and east of Tula in the south.
In the Donets Basin, German High Command states
they have evacuated portions of the city of Rostov.
II.
Western Theater.
Air: Yesterday's comunique from Berlin identified the
cities in northwestern Germany attacked by British bombers Thursday night as Cologne and Aachen.
III.
Middle Eastern Theater.
Ground: British and Axis forces continue in combat east
of Rezegh. The Axis raiding column which pushed eastward to Halfaya
and Sidi Omar began to move westward again on the 27th in two columns,
and is apparently trying to join Axis forces northeast of Rezegh.
Movement of British and New Zealand troops westward from the Rezegh
area is also confirmed.
Air: Recent reports tend to confirm British claims of air
superiority. There has been much British support bombing and strafing. German aircraft operated around Sidi Barani and south of Bardia.
RESTRICTED
COORDINATOR OF INFORMATION
394
270 MADISON AVENUE
NEW YORK
November 30, 1941
Hon. Henry Morgenthau, Jr.
Department of the Treasury
Washington, D. C.
Dear Mr. Secretary:
We have not yet been able to get a file of quotes on the monitoring
of German and Italian short-wave broadcasts although we take hourly
summaries of the propaganda content of these broadcasts. However,
enclosed is one which came through the other day which is of some
interest and even more amusement.
Madeline and I would really love to get out to the ranch this
month but it is simply out of the question because of the amount of
work in this struggling organization. The hear that the Guinzburgs
and Cheneys are going out for Christmas and New Year's.
Bob
Yours,
Robert E. Sherwood
Deputy Coordinator
395
COPY
November 24, 1941
MEMORANDUM
To: Robert E. Sherwood
From: Edd Johnson
In an English-language short-wave broadcast from Berlin at 9 p.m.,
Nov. 22, R broadcaster whom, for lack of a better name, we call "The
Anti-Semite" delivered a talk, "Centiles Not Admitted." The broadcast
was beamed to North America. The point was that the White House is
being furbished for the reception of "Maxim Litvinov-Finkelstein"
After recounting Litvinov's life story, with liberal references to
alleged encounters with the pdice, the broadcaster suggests that he will
receive a hearty welcome at the White House, "at the door of which a large
sign should be posted, Centiles Not Admitted.
Reception WB F spotty but the gist may be seen from this sample paragraph:
"To express his (admiration?) for the Soviet Union, President Roosevelt
repeatedly declared that he considered the defense of the Soviet Regime as
of vital importance to the United States; thus all preparations are made to
(present?) a happy house party in honor of Papa Litvinoff's family. The are
sure that all the Jewish brain trusters and members of the Christian family
will be invited and will be happy to present - Frankfurter, Rosemman, " Morgenthau,
La Guardia, down to the smallest kike. Mrs. Roosevelt will redeive her guests
with hand pumps, and will tell the same message that she sent to the
Palestine Jews through her son James, that she is one of the greatest friends
of modern Jews."
I
396
Paraphrase of a SecretXCR Message
received at War Dept.
a.m.
10:01
at
Cairo.
From
SHORENT
December 1
(Classification Stamp)
Filed 8:56
m.
acess
8:45
Received in 1. B.
194 1
November 30
XKXD
194 1
p.m.
December 2
1942
No
279
1. The American K-3 tanks employed in the Libyan action by the 1:th
Armored Brigado withstood generally the fighting to come out with only ninor
damages which were mostly broken turret rings, damaged suspension apparatus,
broken tracks and tank fires. The M-3's arror protection appeared to be
tougher than the German plate.
2. The British 22nd Armored Brigade, using English cruiser tanks, have
been reported by various quarters to have experienced mechanical failures from
seven to forty-one in number after an approach march of twenty miles. The 4th
Armored Brigade* operating 166 American light tanks undertook their approach
rarch at 5:30 a.m. on November 18 from Alam E1 Talab, and by nightfall had
advanced sone 70 miles to night bivouse outside Gabr-Moliha on the Trigh E1-Abd
trail. In this day's march, one tank fell out with mechanical failure (a
clogged fuel line that was repaired and the tank caught up at the next halt)
The following morning a tank attack by the 21st German Amored
Division occurred near the bivouae area. In this attack the Germans used
100 tanks covered by heavy antitank arnament in close support. The 4th
British Brigado was without this artillery support; none the less, the German
attack was repulsed. Unchecked arnored casualty figures of this action show
22 tanks of the 8th Hussars missing, of which 15 are known destroyed, and seven
unaccounted for. The 3d and 5th Tank Regiments show no onsualties.
3. The above report forwarded from Major Duke in the field was brought
in by Captain Mente who worked with lajor Cornog and Lt. Col, Piburn in
FELLERS
in drafting it.
*Composed of the 3d and 5th Tank Reginents and I.the
B. 8th
No.Busears.
2, 12/2/11
I
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