The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
DIARY
Book 486
January 15 - 20, 1942
- ABook Page
Airplanes
Shipments - British Air Commission report - 1/20/42.
American Bosch Corporation
See Foreign Funds Control
486
340
-Barth, Alan
Editorial Opinion on the War: Preparing to Fight 1/16/42
73
Boach Corporation, American
See Foreign Funds Control
British Purchasing Mission
Federal Reserve Bank of New York statement showing
dollar disbursements, week ending January 7, 1942.
British Government Finance: Hoflich (H. n. White)
memorandum - 1/20/42
293
330
Vesting order sales - 1/30/42
Business Conditions
Hapa memorandum on situation, week ending
January 17, 1942.
342,343
281
-
Censorship, Office of
See Office of Censorship
China
Loan: Monopolies - Kung program - 1/16/42
124
-Defense Savings Bonds
See Financing, Government
Disney, Walt
See Revenue Revision
-EEccles, Kerriner S.
Address before Annual Conference of Mayors - 1/13/42..
262
Exchange Market
Resume - 1/15/42, etc
57,132,185,
315,346
-
Facts and Figures, Office of
See Office of Facts and Figures
- F - (Continued)
Financing, Government
Defense Savings Bonds:
Foreign-born groups in United States: HMJr suggeste
to Kuhn programs especially for - 1/16/42
Comparative statement of sales during first 14
business days of November and December, 1941, and
January 1942
Book Page
486
65
108
Lombard, Carole: Death of - 1/17/42
a) Message to Clark Gable - 1/17/42
Field Organization News Letter, No. 35 - 1/17/42
150
Foley memorandum - 1/19/42
251
176
155
Foreign Funds Control
American Bosch Corporation: Investigation contemplated -
(See also Book 487, page 249 - 1/22/42)
-G-
General Counsel, Office of
Legislative program of Treasury Department - final
report on status at end of First Session, 77th
Congress - 1/16/42.
82
Germany
Debt-clearing trend since 1930 - British Embassy
memorandum - 1/20/42
325
Gold
See Latin America: Venezuela
Great Britain
See British Purchasing Mission: British Government
Finance
-HHistorical War Records of United States
See War Records (Historical) of United States
J-
Japanese in United States
West Coast food situation: Agriculture proposes
conference - 1/16/42
a) Foley report January 21, 1942: See Book 487,
170
page 88
Discrimination against commission merchants and
produce dealers - Justice-Treasury correspondence 1/17/42
. Progress report - 1/16/42
173
110-A
-KKaye, Danny
See Revenue Revision: "I Paid My Income Tax Today"
Knudsen, William S.
Appointed Director of Production, War Department 1/16/42
486
114
-LLatin America
Venezuela: Federal Reserve Bank of New York authorized
to buy $8 million worth of gold - 1/15/42
53
Legislative Program of Treasury Department
See General Counsel, Office of
Lend-Lease
Allocations and obligations as of January 12 and 15, 1942..
37,39
U.S.S.R.: Schedule of availability of material being
procured by the Treasury as provided in Protocol
Agreement - Stettinius report - 1/15/42
Duplication in purchasing - Mack memorandum - 1/17/42..
41
177
Lombard, Carole
See Financing, Government: Defense Savings Bonds
-MMelia, Joseph
See Revenue Revision
Military Reports
Reports from London transmitted by Campbell - 1/15/42,
1/16/42, 1/19/42
58,134,
307,347
Coordinator of Information report:
"The War This Week" January 8-15, 1942
61
Monetary Research, Division of
Report on projects during October, November, and
December, 1941
9
-0Office of Censorship
Publications and radio stations - codes of practice 1/17/42
158
1/19/42
254
1/16/42.
66
Classes of information in which Treasury is interested Office of Facts and Figures
Radio Division established with William Lewis as chief -
-PBook
Page
486
198
Procurement Division
See also Lend-Lease
Consolidated purchasing program following Nelson's
appointment to head War Production Board discussed
in Mack memorandum - 1/18/42
-RRevenue Revision
Editorial Comment on Tax Problems: Battle Lines Form -
Melia report - 1/16/42
Dieney film (Donald Duck) discussed in Buffington
memorandum - 1/17/42
78
143
a) HMJr's message to Moving Picture Exhibitors -
1/22/42: See Book 487, page 256
"I Paid My Income Tax Today" - Danny Keye to sing 1/22/42: Book 487, page 410
Roosevelt, Franklin D.
See Speeches by HMJr
-S
Speeches by HMJr
Cleveland, Ohio, City Club, January 24, 1942: Taxes
a) Draft 1 - 1/19/42
210
b) Conference; present: HMJr, Paul, Blough, and
Kuhn - 1/21/42: Book 487, page 3
1) HMJr's own pencilled notes:
Book 487, page 28
c) Draft 2: Book 487, page 32
d) Conference; present: HMJr, Kuhn, Odegard,
Sullivan, and Blough - 1/22/42: Book 487, page 177
e) Draft 3: Book 487, page 196
f)
4: Book 487, page 218
g) Conference; present: HMJr, Sullivan, Blough, Kuhn,
"
and Odegard: Book 487, page 302
h) Draft 5: Book 487, page 309
1) Conference: present: HMJr, Blough, Paul, Kuhn,
Odegard, and Sullivan - 1/23/42: Book 487,
page 372
President's Birthday Ball:
HMJr's pencilled notes concerning FDR's
affliction - 1/19/42
a) Mrs. FDR-HMJr conversation - 1/21/42:
Book 487, page 62
-
Taxation
See Revenue Revision
250
-UBook Page
U.S.S.R.
See Lend-Lease
United Kingdom
See British Purchasing Mission: British Government
Finance
United States - Historical War Records
See War Records (Historical) of United States
-VVenezuela
See Latin America
-War Records (Historical) of United States
Discussed at Cabinet meeting - 1/17/42
486
139
1
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE January 15, 1942
TO
Under Secretary Bell
FROM
Mr. Southard
Subject: Resolution on Stabilization Fund of United and Associated
Nations to be presented at the Rio Conference
1. On January 8 Mr. White prepared a draft resolution for a Stabilization
Fund of the United and Associated Nations planning, in accordance
Mr. Summer Welles' suggestion, to discuss it with some of the financial
representatives at the Rio Conference in order to determine whether
the resolution should be introduced.
Mr. White discussed the proposal for such a Fund with the Secretary
early in January and received the Secretary's approval of the idea
in principle. The draft prepared by Mr. White grew out of several
discussions within the Treasury which included Mr. Bernard Bernstein
and Dr. Viner.
A copy of the draft was sent to the Secretary by Mr. White on January 8,
with a covering memorandum explaining that I would go over it with
the Legal Division and with Dr. Viner and that if it was decided at
Rio to introduce such a resolution Mr. White would cable the Secretary
for approval.
2. A cable was received today from Mr. White, sending the Secretary a
copy of a draft resolution on the international stabilization fund
and informing him that Mr. Welles would like to submit the resolution
to the Rio Conference. Mr. White suggests that if the Secretary
approves the draft he should also obtain the approval of Mr. Berle
and perhaps Mr. Eccles. Also, since the eventual calling of a
Conference of the United and Associated Nations is implied, the draft
of the idea implied in it may need the approval of the President.
All of this must be obtained and cabled to Mr. White before noon
Friday, January 16.
3. The draft resolution as cabled from Rio is only very slightly modified
from the one prepared in the Treasury and submitted to the Secretary.
It provides only that the Conference recommend:
(a) That the Governments of the American Republics participate
with the Governments of the United Nations in a special
conference of Finance Ministers to consider the establishment
of a Stabilization Fund of the United and Associated Nations.
2
-2-
Division of Monetary
Research
(b) That participation in the conference shall be open to all
nations subscribing to the objectives of the Atlantic
Charter.
(c) That the conference shall formulate the plan of organization,
powers and resources for the Fund, determine conditions
requisite to participation in it and propose principles to
guide the Fund in its operation.
(d) That among the conditions requisite to participation in the
Fund the conference shall consider: Cooperation in adopting
harmonious policies looking toward the gradual adoption of
free exchanges with reasonable stability in foreign exchange
rates, the removal of arbitrary and discriminatory restrictions on international transactions, and the maintenance of
monetary policies that avoid serious inflation or deflation.
4. I attach a draft of a reply which might be cabled to Mr. White after
the necessary consideration and approval of the proposal have been
obtained.
Attachment
3
DRAF T
CABLE
TO
H. D. WHITE
AMERICAN EMBASSY
RIO DE JANEIRO,
The Secretary of the Treasury approves the submission to the
Conference of the resolution on a Stabilization Fund of the
United and Associated Nations in the form given in Mr. Welles'
No. 9, January 14 from Rio. This draft has also been approved
for submission by Mr. Berle and Mr. Eccles and was approved
in principle by the President.
4
THE UNDER SECRETARY OF THE TREASURY
WASHINGTON
January 15. 1942
MEMORANDUM FOR THE FILES:
I spoke to Secretary Morgenthau on the telephone at 1:45 P.M.
today regarding the proposed resolution on international stabilization which Under Secretary Welles would like to present to the conference of foreign ministers now in session at Rio de Janeiro, Brazil.
This international stabilization plan is commented on in Dr. White's
cable No. 9. section 1, of January 14, 1942. and the resolution is
quoted in Under Secretary Welles' cable No. 9. section 2, of January 14.
The Secretary said that this was a matter which he had suggested
a month or two ago to be worked on and have in shape in case we wanted
to give consideration to it some time in the future: Dr. White liked
the idea and talked to Summer Welles about it, who also liked it and
wanted to take it up at this conference. The Secretary stated that
White had mentioned it to him the night before he left and the Secretary
had told him he had no objections to it being discussed, but he did
not have in mind any formal resolution on the matter. The Secretary
at first indicated over the telephone that he did not have Any objection
to the matter.
I told him that there was one point which Jacob Viner thought
should be cleared with him and that was whether the subject of this
resolution should be cleared first with the British before it is
presented down there, and if presented, whether it should be done by
the British and Treasury representatives in Washington or by the
President to Churchill. The Secretary said that on thinking this over
he did not believe this was the place for this resolution, that very
definitely it should be cleared with the British, and possibly Russia
and China, before it is acted upon. He does not think we should bother
the President about this, but we may advise White that he has no
objection to the international stabilization scheme being discussed
et this conference in order to get the general views of the representetives of the South American governments, but he is opposed to the presentation of any formal resolution on the matter until it has been
cleared with the other large world powers.
FORDEFENSE
BUY
UNITED
STATES
SAVINGS
BONDS
LANDSTANDS
AWB
5
January 15. 1942
Mr. Livesey
Mr. Southard
will you please send the fellowing emblegram to Mr. H. D. White, American
Delegation, Conference of Foreign Ministers, Rio de Jameire, Brasil:
"From the Treasury.
In reply to Delegation's No. 9. January 14. Secretary of the
Treasury feels that the idea of a Stabilisation Fund of the United
and Associated Nations could well be discussed informally at Rio
but that it should also be discussed with other of the United
Nations before any formal prepenal is made. Discussions here esanot be arranged within your deadline. The Secretary of the Treasury
therefore feels that a Stabilisation Fund resolution should not be
introduced at Rio."
Sent over to State Department
at 4:06 P.M. - 1/15/42
FAS:dm:1/15/42
0
0
6
PARAPHRASE OF TELEGRAM EXPT
TO:
American Delegation, Rio do Janeiro, Brasil
DATE:
January 15, 1942, 5 p.m.
NO.:
9.
Reference is made to telegram no. 9 sent by the
Delegation at 9 p.m. on the 14th of January, 1942.
This telegram is transmitting a message from the Secretary
of the treasury to Mr. White.
It is the feeling of the Secretary of the treasury
that the suggestion of a Stabilisation Fund of the United
and Associated Nations should be discussed with others
who belong to the United Nations as well as informally at
Rio before you make a formal proposal. No arrangement of
discussions within your deadline can be made here.
Therefore, it is the feeling of the Secretary of the Treasury
that a resolution for a Stabilisation Fund should not be
brought up at the Conference in Rio de Janeiro.
HULL
(FL)
This mead to sein
chicow
1-16-43
in the over phone
1040 am 1/16/42
PARAPHRASE OF TELE GRAM SENT
TO:
American Delegation, Rio de Janeiro, Brazil
DATE:
January 17, 1942, 10 p.m.
NO.:
24
This is a confidential message from Secretary
Morgenthau for the Under Secretary of State Welles.
Reference is made to telegram no. 19 sent by the
Delogation at 10 a.m. on the 17th of January, 1942. It is
still my feeling that there should be no formal presenta-
tion at Rio of the idea of a stabilization fund. Since
your telegram of the 15th of January, I have been considering
the matter and more than ever before I believe this strongly.
In order to assure success, it may be desirable to
discuss this question with the appropriate committees in
Congress as well as to give Great Britain and other United
Nations a chance to react to the proposition.
MULL
(AAB)
8
January 15, 1942.
MEMORANDUM
TO:
FROM:
Secretary Morgenthau
Mr. Gaston
J. Homer Butler, formerly Assistant Treasury Attache
at Paris, who was dismissed from the Customs Service with
prejudice because of an incident that happened on his return
voyage to the United States, came in to see me this afternoon
after having talked to Mrs. Klotz. His plea is that he is
being made to suffer beyond his deserts in that all his friends,
both in the United States and abroad, who hear of the case come
to the conclusion that he was dismissed for dishonesty in some
form and he denies most firmly there was anything corrupt in
the favor he attempted to do for the Frenchman Robert of Coty's.
He does not at all dispute the facts in the case as we know
them.
I told him that he was not charged with being bribed
and that officers of the Customs who knew him believed him to
be entirely honest. I added that they explained this transaction as characteristic of his habit of going beyond the
bounds of good judgment in undertaking to do favors for acquaintances. I told him that he was accused solely of misusing
in a flagrant way his position as an officer of the United
States and the special passport issued to him in that capacity.
He admitted that he was guilty of this and that it was an extremely stupid thing to do, but that in view of his long and
faithful service he thought the punishment too harsh. His
record now is such, he says, that it is impossible for him to
get any kind of a job. In palliation of his offense he said
that he had been through an extremely difficult period in
France, that he had undertaken many risks to help Americans and
other refugees, that he knew very little about the controls
established by the British and that he thought some allowance
ought to be made for these special circumstances in judging him.
I told him finally that I could not give him any promise
or offer him any encouragement whatever, but that I would re-
port to you on his visit.
Not
TREASURY DEPARTMENT
9
INTER OFFICE COMMUNICATION
DATE January 15, 1942.
TO
FROM
Secretary Morgenthau
Mr. White
Ther is attached a list of memoranda and reports
prepared in the Division of Monetary Research during
October, November, and December, 1941.
10
Memoranda Prepared in the Division of Monetary Research during
October, November and December, 1941.
Industrial consumption of silver for 1941.
Reports of daily information regarding our trade with Japan,
China, and Russia.
Status of the Mexican Stabilization and silver negotiations.
Visit to the Secretary by the Minister of South Africa, Oct. 3.
Meeting of the Secretary with the Mexican Finance Minister,
October 6.
Mexico's request concerning defaulted bonds held by the British.
Organization of Financial Work in London Embassy.
Request of South Africa Regarding Priorities.
Memorandum for the Vice President regarding Economic Defense
Functions Administered by the Treasury.
British Inquiries regarding Gold Payments from Russia.
Memorandum for the Vice President: Can a system of compulsory
saving excises be made a satisfactory instrument for the prevention of war-time inflation and post-war depression?
Conference held in Secretary Hull's office on October 7th, on
financial arrangements between the United Kingdom and Russia
and the United States and Russia.
Summary of report "Amount of Taxes Needed in June 1942 to
Avert Inflation."
Exports of Philippine Iron Ore to Japan.
Clippings on Women's Work in England
Triangular Lend-Lease transactions.
Preliminary report on census of foreign-owned property.
Meeting of Secretary with Mr. Gromyko, of the Soviet Embassy,
and Mr. Lukashev, President of the Amtorg Corporation.
Axis and Allied Production of Airplanes and Tanks.
11
-2-
Division of Monetary
Research
Digests of Statements of the Ministry of Supply with regard to
Lend-Lease arrangements for the distribution of small tools,
and distribution of Lend-Lease agricultural machinery.
Notes on the report prepared by Robert Nathan on defense production.
Exports to Russia, China, Burma, Japan, France and other
blocked countries.
Exports from the Port of Manila, Philippine Islands, to China,
Hong Kong, Burma, Japan and Russia.
The Barnard proposal on compulsory saving.
England - Food Supplies and Racketeering.
Summary of British press opinion on British Production Restoration of Incentives.
British Expenditures compared to National Income, 1940-41 and
1941-42.
Mr. Casaday's Mission and Financial Reporting from the American
Embassy in London.
Great Britain - Criticisms of Production.
Attitude of British Exporters to British Export Policy under
Lend-Lease.
Developments in the British Cash Position.
Conversation with Mr. Bewley regarding Anglo-Russian gold.
Meeting at Secretary's home, November 9, at 8:45 p.m., with
Mr. Philip Murray, regarding captive mine issue.
Canada's blocked sterling.
Trade Agreements Committee consideration of the proposed agreement with the United Kingdom.
Summary of Commerce Confidential Report on the Aircraft
Industry.
Forecast of Canada's gold and dollar exchange position for
the coming year, furnished by Canadians.
Recent Developments in the United States-China Program.
Division of Monetary
-3-
12
Research
Spain - Aviation Lubricating 011 and Petroleum Products.
Comments on Mr. Lubin's memorandum regarding the machine tool
industry.
U. S. Petroleum Exports to Spain.
An approach to the problem of eliminating tension with Japan
and helping defeat of Germany.
Possible sale of British Bomber Contracts to Russia.
British Women's War Work.
British Film Settlement.
Suggesting an informal committee regarding protective food.
Proposed Research Committee on Income, Investment Savings and
Expenditures. (Prepared by Messrs. Sullivan, Barnard, White,
Blough and Haas.)
Conference held in the Secretary's office on November 21st
with Mr. Gromyko of the Russian Embassy.
Distribution of Russian material.
Supplementary Cuban Trade Agreement.
British Press Summaries.
British Excess Profits Tax.
Memorandum on Eire.
U. S. Petroleum Exports to Japan.
German petroleum - Standard oil information.
Axis oil situation.
Oxford Institute of Statistics Article on Employment.
British joint taxation of husband and wife and a possible
deterrent to the employment of married women.
Outline of telegram from American Ambassador, Chungking,
reporting suggestions from Sir Otto Niemeyer regarding Chinese
financial situation.
Division of Monetary
-4-
Research
Status of Gold Purchases from Russia.
Notes on the Japanese Petroleum Situation.
The Secretary's conference with Dr. Soong, December 9th.
The Secretary's conference with Mr. Litvinov, Russian
Ambassador.
The Secretary's conference with Mr. Morris Wilson, of the
British Supply Council.
Conference in the Secretary's office December 22nd with Sir
Frederick Phillips.
Conference with Dr. Li, Chinese Embassy.
The Banque Worms, Pierre Pucheu and their associates.
British Financial Developments.
Conference in Mr. White's office with Canadian representatives
on revised Canadian exchange outlook for 1942.
Conferences in the Secretary's office with representatives of
Dodge Local-United Auto Workers regarding employment.
Memorandum furnished by Sir Frederick Phillips on Planes for
Russia.
Answers to questions asked of Mr. Bell by the Committee on
Appropriations.
Meeting to consider Ecuadoran request for a Stabilization
Loan, October 24th.
Questions and answers from the Secretary's press conference
of June 26th on the sale of British securities and investments
pledged to the R.F.C.
Government War Risk Insurance for Property Damage.
Current Literature on Government War Risk Insurance.
Summary of "Civilian Welfare and Civilian Defense in Great
Britain".
Summary of Determination of Needs Bill Memorandum by the
Assistance Board, presented to Parliament by the Financial
Secretary to the Treasury.
13
-5-
14
Division of Monetary
Research
Recent U. S. Petroleum Exports.
Material to be furnished the Economic Defense Board.
Should the Shanghai Power Company be permitted to make pay-
ments in dollars to the Kailan Mining Administration.
Second Supplementary Trade Agreement with Cuba.
French North African Phosphates.
Stabilization Fund Developments.
Distribution of Lend-Lease Goods.
Saving a Billion.
State Department memor andum on U. S. oil exports to Spain.
Agriculture memorandum on preclusive purchase of Latin
American cotton.
Visit of Bolivian Minister and list of questions handed him
to be answered and sent in.
Visit from Ambassador from Ecuador and list of questions handed
him to answer and return.
Fields of activity of Canadian Committees.
Canadian-American Production Committee.
The Swedish Air Force Commission's claim of. interest due set
aside for purchase of aircraft equipment.
Correspondence with Joint Boycott Council on subject of
enforcement of the Foreign Funds Control.
Data provided Secret Service on Japanese Nationals.
Small Loan Facilities.
Small Defense Loans.
Relationship of Stabilization Fund to defense program.
Comments on Supplementary Report of the Committee on NonDefense Bank Loans.
6-
15
Division of Monetary
Research
Comments on "Program for Dealing with Bank Reserves," presented by the Board of Governors of the Federal Reserve System.
The Federal Loan Agency, Defense, and Inflation.
Current Trends in Silver Imports.
Summary of article "Third Quarter Earnings of Large Industrial
Corporations."
Amortization of home mortgage loans as a rigid factor in
individual budgets.
The SEC proposal with regard to control over corporate financing.
Silver prices.
Summary of W. W. Riefler's "Program to Stimulate International
Investment."
Silver Imports and the Industrial Consumption of Silver.
The Handy and Harman Estimate of Industrial Silver Consumption.
R. F. C. Loans to Business Enterprise.
A fiscal Program for the Calendar year 1942.
Specific Objections to the Barnard Plan.
TFR-300 Reports in the name of the State of Vatican City.
Proposed Changes in Capital Movements Reports.
Drafts of resolutions regarding American Republics cooperation
in blocked funds.
External Loans of Iceland.
Stabilization Fund Loan to Iceland.
Income Payments, Retail Sales and Sales of Series E Bonds.
The issue of Cuban paper pesos.
French North Africa and the German War Economy.
Imports of U. S. dollar notes into the United States from the
Orient.
16
Division of Monetary
Research
-7Nickel and Copper in Minor Coins.
Sweden and the New Order.
Coinage in Foreign Countries.
Changes in Hours, Production, Employment, and Output per
Wage-earner and Wage Hour in Selected Industries.
Coinage for Latin American countries.
The Circulation of Coin and Production at the Mints 1900-1940.
Appointment of Fox as Adviser to the Ministry of Finance.
Can Germany derive any benefit from an increase in the useable
foreign exchange assets of Switzerland.
Conclusions of Economists Group on Defense Production.
Are we losing the War?
Agreement on Figures on Taxes Needed.
Chronology of telegrams sent by Treasury to Fox.
Canada's gold.
South Africa.
Canada's Blocked Sterling.
Resolution on gold mining and scarce materials passed by Joint
Canada-American Economic Committee.
Canadian Production Figures.
Fields of activity of Canadian Committees.
Canadian-American Production Committee.
President's instructions that State, Treasury, and Justice
Departments liberalize travel regulations between U.S. and
Canada as much as possible.
RFC's unwillingness to import scarce metals from Canada on
which there is a duty.
Conference in Mr. Berle's office on Priorities and Gold Mining.
Division of Monetary
-8-
17
Research
Modification of general provisions in the Cuban trade agreement.
New Government in Panama.
Panamanian note issue, and Panamanian Paper Currency.
Developments in Ecuador.
Chronology of negotiations with Ecuador.
Cost of field trip around South America.
Mexico.
Reaction of Latin American Countries to Japanese War.
The effect on Latin America of lower silver prices.
Duty on "Brazilian Burlap".
Cuban Financial Agenda.
Questions for submission to the Bureau of Engraving and Print-
ing with relation to the printing of Cuban currency.
Report of American Technical Mission to Cuba regarding Cuba's
immediate monetary problems.
United States Currency in Latin America.
Borrowing funds from state Governments, etc. -- The Budget
Director's suggestion.
The Federal Reserve proposal for an industrial loan corporation.
Selling savings bonds to state governments and other large
investors.
A suggestion for monetary warfare.
Should Government contractors be paid in tax-anticipation
notes or other Government securities?
The reserve supply of U.S. currency and a suggestion for borrowing some money.
Income and Consumption in Germany during the Rearmament Period,
by Frederick Strauss.
Germany's Economic Gains in Russia.
Division of Monetary
18
Research
-9Cork production of the Western Mediterranean Countries in
relation to the German and American Armament production.
The Japanese "Oriental Economist" attacks Germany's economic
plans.
Purchase of raw silk from Free China by the United States.
Recapture of Ichang by the Chinese may considerably alleviate
the food situation in Free China.
Meeting to discuss proposals for bringing stronger political
and economic pressure to bear upon Japan.
How Shanghai serves the Japanese in ways inimicable to American
interests.
Possibility of Depressing the Quoted Value of the German Mark
and the Japanese Yen in Latin America.
Portugal permits Timor to be used as air base for Japan.
Proposal that yen be sold at devalued rate.
Agriculture memorandum on preclusive purchase of Latin American
cotton.
Attitude of the American Consul General at Shanghai regarding
imports into Shanghai and the Stabilization Board.
Imports of U.S. dollar notes into the U.S. from the Orient in
recent months.
Japanese evacuate Chengchow.
Banking organization of Hong Kong.
The incorporation of Thailand into the yen-bloc would be an
important step in Japan's achieving her "co-prosperity sphere".
New note issue by Nanking Central Reserve Bank and British
recommendation that Stabilization Board immediately announce
that exchange for essential imports will continue to be pro-
vided for indefinite period.
The new China program.
Proposal to Integrate U. S. export controls and Chinese import
controls.
Division of Monetary
- 10 -
Research
19
Recent Developments in the United States-China program.
Comments on United States-Japanese relations.
Problems with which the U.S. Treasury must still deal in con-
nection with the China program.
State Department Consignee Control.
Effect of withdrawal of U.S. Marines on position of Shanghai.
Proposed steps to make effective our economic measures against
Japan.
Comments on the Current Chinese situation.
Dollar holdings in Hong Kong.
Suggested activities of the Division of Monetary Research in
connection with the new situation.
Question of treating occupied China as enemy territory.
Revocation of Indo-Chinese and Occupied China's licenses.
Request for Treasury approval for shipment of petroleum to
Free China.
Proposal that Netherlands East Indies finance their trade with
China in sterling.
Proposal that Russia be deleted from the list of blocked
countries.
Request of Koreans for special treatment by Foreign Funds.
Treasury activities in connection with the China program.
German requisitions and purchases from the French unoccupied
zone.
Proposal that an Interdepartmental Committee be formed to
study steps necessary for the prevention of inflation and to
issue a public statement on this question.
Priorities on steel for gold mining.
Turkish Foreign Exchange Holdings.
Division of Monetary 20
- 11 -
Research
Private Capital Investment in the Defense Program.
Italian Public Finances.
Fluctuations in the Reichsmark.
Employment and Defense Expansion.
Possible effects of complete breaking off of U.S. trade
with Switzerland.
Defense Industrial Facilities financed with Public and Private
funds through September 30, 1941.
Reported Defense Construction Schedules.
General rationing and the restriction of consumption in the
United States.
Termination of U.S. trade and financial relations with Spain.
Proposal that all Swiss gold be shipped to the United States.
Meeting of December 19th with the Swiss Minister.
Points from recent French consular reports and other printed
sources.
Capital Flow between the United States and Canada.
Capital Movements during the first ten months of 1941.
British Purchasing Mission Forecast of Payments:
Comparison of various B.P.M. Forecasts of Payments
Analyses of B.P.M. Commitments and Payments
Changes in Commitments by B.P.M.
Comments on memorandum received from Secretary of the South
African Legation.
The British Dollar Position.
Discrepancies between published gold holdings of the Exchange
Stabilization Fund and holdings indicated by the Federal
Reserve table "Analysis of changes in Monetary Gold Stock".
Review of sales of British-owned dollar securities.
Importance of by-product mining in the gold and silver
industries.
- 12 -
Division
of Monetary 21
Research
Possible sale of British Bomber Contracts to Russia.
Comparison of new British estimate of their gold and dollar
receipts
Mr. Bell. and expenditures with that presented to Congress by
Recent Developments in Take-over Problem.
Public reaction to White paper on Lend-Lease export policy.
An alternative plan for encouraging voluntary defense saving.
Effect of SPAB's allocation of tin to Latin America on need
for British exports.
Notes on the Legality of Lend-Lease Take-Over of British contracts.
Sir Frederick's memorandum of December 6th on Anglo-Russian
Payment Procedures.
British Gold and Dollar Assets.
Gold Holdings of the South African Reserve Bank.
Silver available for coinage of 5-cent pieces.
Domestic Problems involved in Reducing the Price of Silver.
British Ministry of Information Home Press Surveys, London Press.
Agreement between Bank of England and State Bank of U.S.S.R.
Great Britain - Post-War Planning and Reconstruction.
British stamp plan to distribute lend-lease food.
U.K. - U.S. Tax Convention.
British Experience with the 100% Excess Profits Tax, as indicated by Reactions of Business and the Press.
British government machinery for economic coordination.
Proposed 100% tax on all profits over 6%
British Press Summaries.
Eire Assets in the U.S. and U.S. Assets in Eire.
Estimated Benevolent Remittances U.S. to Eire, 1939 and 1940.
Division of Monetary
- 13 -
22
Research
British Select Committee on National Expenditure.
French North Africa and the German War Economy.
Treatment of Switzerland in our Economic Defense Program.
Matters which the Economic Defense Board should be consider-
ing, if it is not now doing so.
Estimated German production of certain armaments in March 1943.
Possible freezing of Ukrainian Insurance Societies.
Argentina as a possible subject of Economic Warfare Board
action.
Information from our Allies.
Significance of the Accumulation of Sterling Balances in
London for Post-War Trade Policy.
U.K. Dollar Expenditures.
Analysis of U.K. Government Expenditures paid for out of
overseas sources during the first eighteen months of war.
Canadian Trade.
U.K. Export Figures.
Foreign Investments in the United States of Axis Powers and
Occupied Countries.
Publication of Treasury Statistics of possible use to the
Enemy.
Possible Effects of a Complete Interruption of trade with
Switzerland.
Economic Organization of the Danube States.
Sweden's contribution to the Axis War Effort.
Latin American Sterling Balances.
Bolivian Developments.
Chronology of Stabilization Credit Negotiations with Bolivia.
Division of Monetary
Research
- 14
Latin American Countries as Intermediaries in Japanese Trade
with the United States.
Colombia's Complaints about the Proclaimed List.
Current Situation in Argentina.
New Dominican Republic Reserve Bank.
United States Sugar Concessions to Cuba.
Offer of credit by Chase and National City to Chile.
Extent to which FFC can make use of the Export-Import Bank's
recent scheme of export credits for Latin America.
Activity in individual Latin American countries inimical to
the United States and retaliatory measures of an economic
nature which the U.S. can take against these same countries.
Credit Control in Australia.
Curtailment of loans to civilian industry and trade by commercial banks.
Interim Report of the Committee on Skilled men in the Service.
Stabilization operation with Cuba involving a sale of gold on
credit.
Export-Import Bank proposals.
Procedure recommended in initiating Inter-American Treasury
Bulletin.
Analysis of the proposed International Wheat Agreement.
Coinage Problems.
Are Proclaimed List Banks in Latin America enabled by
"exchange pools" to drain off their blocked dollars?
Elimination of nickel from five-cent coins.
Pros and cons of an embargo on exports and imports of U.S.
currency.
Summary of Director of the Mint's report on 5 cent and 1 cent
coins.
23
Division of Monetary
- 15 -
Research
24
Article requested by Nelson Rockefeller on "How Our Spending
Program will affect Latin America".
Consideration of questions asked by Mr. Irigoyen, Under
Finance Minister of Argentina.
Relationship of Stabilization Fund to the defense program.
Why the Fund buys gold from day to day.
Renewal of $50 million stabilization agreement of 1937 with
the Central Bank of China.
Cuban monetary and banking proposals.
Cuba's Agricultural Credit Problem.
Application of Solvay American Corporation for release of
$1 million for investment in Brazil.
Duty-free entry of defense articles.
The effect on Latin America of lower silver prices.
Mr. Taub's memorandum regarding deficiencies in our utilization
of manufacturing facilities for defense.
U. S. firms with German connections.
Shipments to Russia.
Soviet Cash Needs.
Soviet Financial Position.
Commerce Report - Merchant Shipping, October 1941.
Notes on Standard oil's comments on the Japanese petroleum
situation.
Machine Tool Production - Commerce Report for October.
Sale of Treasury Silver.
Weakness in Unofficial Canadian Exchange Rate.
Treasury Support for Removal of Tariff on Defense Articles.
Effect of Suspension of Silver Purchases on Canada.
Division of Monetary 25
- 16 -
Research
Coordination of Canadian Allocation System with American
Allocation Program.
Estimated Dollar Position of Canada.
Application by the Chemical Bank and Trust Company to trade
claims on German banks for Colombian Government bills held
in Germany.
Gold and Dollar Notes as Payment for Shipment of 011 to Japan.
Disposition of 395 Corporations taken over by the Alien Property
Custodian in the Last War.
Nature and importance of Liberia's foreign trade.
A plan for avoid preferential treatment of American creditors
of Germany.
Use of Blocked Funds to Service Japanese Dollar Bonds.
Export control violation at Martinique involving operations in
the United States.
Imports of Japanese fish-liver oils by way of Latin America.
The importance of certain miscellaneous imports from Japan and
China.
U.S. Exports of concentrated milk products, cocoa and chocolate
to Thailand.
Present status of Spanish foreign exchange control.
United States currency imports.
Japan's proposal to pay for oil with funds from Latin America.
Applications to permit the sale of the Winter Austrian Properties
to Swiss interests.
The importance of bristles, essential oils, and camphor oil
imported from Japan.
Meeting regarding applications on the Silesian-American Corporation, and the Winter Austrian Magnesite Properties.
American Insurance Companies operating in Latin America.
Transactions concerning certain foreign dollar bonds.
- 17 -
Division of Monetary 26
Research
Austrian and German Nationals' applications to sell Reichsmark
bonds of the Conversion Office for German foreign debts.
Application to release approximately $100,000 from the earmarked
gold account of the Central Reserve Bank of Peru to be shipped
to Argentina as a means of acquiring Swiss francs from the Swiss
National Bank.
Transfer of Swiss-owned Gold in the United States.
Shipment of cotton tire cord fabrics to Sweden.
Requests by central banks or exchange control authorities in
South America to have funds held in the United States for
blocked accounts of "Proclaimed list" nationals transferred to
central bank of relative South American Republic.
Gold and dollar banknotes as means of servicing Japanese dollar
bonds.
American exports to Turkey.
Purchase of Chinese silk for delivery to Mexico.
Blocking of debts due on commercial account to American
individuals or concerns by countries coming under Executive
Order No. 8289.
Application of the BIS to purchase securities and short-term
obligations in the market.
Advisability of placing Guatemalan coffee interests under
Proclaimed List restrictions.
American private banking firms in Latin America.
Recent price trends in leading commodities exported from the
United States to the French West Indies.
Withdrawal of Swedish and German banks from a syndicate of
Hungarian Standstill creditors.
Application by the Standard 011 Company of New Jersey to permit
the payment of debts of its subsidiaries in occupied territory.
Finnish debt position.
Blocked assets of the Danish Government.
Problem and techniques of control of foreign business enterprise in the United States.
Axis unblocked funds in Latin America.
Division of Monetary
- 18 -
Research
27
Application to transfer $560,000 of gold bars from the earmarked
gold account of the BIS to the earmarked gold account of the
Banco de Portugal.
Panama holding companies.
Comment on the alleged present "big demand" for silk waste.
American-Danish loan and investment positions.
Application by the International General Electric Company of
N.Y. to receive $17,000 from the United Incandescent Lamp and
Electric Company of Hungary, etc.
Russian funds on deposit.
Economic aspects of the Proclaimed List problem in relation to
foreign funds.
Application by the Continental Illinois National Bank and Trust
Co. of Chicago to pay $1991.15 to Richardson and Auer for services rendered in connection with patent applications.
Republic of China, secured Sinking Fund Bonds of 1937.
Norwegian Financial Position in the United States; Earnings of
Norwegian shipping.
U.S. Textile Exports to French Africa and French Oceania.
Blocked Nationals filing for themselves on TFR-300, Series A.
Application by the National City Bank of N.Y. to debit the
blocked account of the Banque Nationale Suisse and credit same
to blocked account of the Spanish Foreign Exchange Institute.
Applications to sell oil royalties to Swiss nationals residing
in Switzerland.
Increased Import of Swiss Watches.
Application by Texas Company of China to transfer sum from
Tientsin branch of Chase National Bank to a blocked account
with National City Bank of New York.
The dollar position of France.
Swedish applications to permit the reversal of certain blocked
funds.
American Private Banking Firms in Latin America.
- 19 -
Division of Monetary
28
Research
The proposal to trustee funds for the French 7's of 1949.
Gentlemen's Agreement Between the Swiss National Bank and the
Swiss banks concerning dollar transactions.
Application by Credit Suisse, N. Y., to sell Swiss francs to
Credit Suisse, Zurich, by debit to latter's blocked dollar
account with the applicant.
American exports to French North Africa.
Application by Standard 011 Co. of N. J., to permit the payment
of foreign annuity claims out of dividend lire due the Standard
oil from Societa Italo American pel Petrolio.
Desirability of importing current technical and scientific
literature from Europe.
Economic Activities of International Standard Electric Corporation in Europe.
Should American nationals be granted licenses allowing them to
realize on claims against property in blocked countries?
Assets in United States of Netherlands and its Colonies.
Importance of Yoshino paper in national defense.
Advisability of approving application allowing J. H. Monteath
Company to accept U.S. currency in cover of shipment to Chinese
national.
Short-term Swiss banking assets in the United States.
Application by the French-American Banking Corporation to
negotiate a liquidation of the elliability to them of the Hermes
General Hungarian Exchange Bank, Budapest.
Application by International Business Machines Corporation of
N. Y. to acquire an additional interest in its German subsidiary,
Deutsche Hollerith Maschinen G.m.b.H.
Should American stockholders in French and Belgian Corporations
be permitted to receive payments of dividends from these
corporations?
Foreign Funds Control request for information on 30 German
business enterprises in the United States.
Division of Monetary
- 20 -
Research
29
Spain as a Generally-Licensed National.
Securities of foreign corporations traded on national exchanges
in the United States.
Blocked funds at the New York Federal.
Desirability of revoking the general licenses issued to the
four neutral European countries.
Considerations favoring the revocation of the Swedish General
License.
Portugal as a Generally-Licensed Country.
Sequestration of European and Japanese stocks, bonds and evidences of ownership.
Switzerland as a Generally-Licensed Country.
Applications to Foreign Funds Control to effect transactions
involving Worms and Company.
American Exports of Petroleum Products to certain French
possessions.
Current reports in addition to the above:
Daily report on transactions in domestic stocks (compiled from
S.E.C. figures).
Weekly table: "Balances and Earmarked Gold Held for Foreign
Account".
Weekly table: "Net Capital and Gold Movements".
Material for monthly Treasury Bulletin.
Correspondence:
162 Letters replied to.
In addition to the above, material falling into the following
categories is also prepared:
1. A large number of tables on various items.
Division of Monetary
- 21 -
Research
2. Reports on conferences in which this Division
participates.
3. Participation in preparation of some of the statements and speeches by the Secretary.
30
31
January 15, 1942.
Dear Mr. Watsons
On behalf of the Secretary I as acknowledging your telegram of January 14th. Mr.
Morgenthau is away from Washington, but just
as soon as he is back, I shall give him this
message, and I know that he will be pleased
to have the information that you sent.
Sincerely yours,
(Signed) H. S. AIOLZ
H. S. Klots,
Private Secretary.
Mr. Thomas J. Vateon,
590 Madison Avenue,
New York, New York.
GEF/dbs
Treasury Department
32
TELEGRAPH OFFICE
P015 WD 62/61 SER
MA NEWYORK NY JAN 14-42 518p
1942
14
THE HONORABLE HENRY MORGENTHAU JR
PM 5 42
SECRETARY OF THE TREASURY WASH DC
BY HOLDING UP OTHER WORK WE WERE ABLE TO SHIP ONE MILLION BOND
ASSEMBLIES TODAY, WHICH IS 250,000 OVER AND ABOVE OUR SCHEDULE.
THIS IS IN ORDER TO CREATE AN INCREASED INVENTORY IN THE BUREAU OF
PRINTING AND ENGRAVING. WE WILL CONTINUE SHIPPING IN ACCORDANCE
WITH THE REGULAR SCHEDULE, AND WHENEVER POSSIBLE TO HOLD UP OTHER
WORK WILL SHIP EXTRA ASSEMBLIES
THOMAS J WATSON
532p
Treasury Department
32
TELEGRAPH OFFICE
P015 WD 62/61 SER
MA NEWYORK NY JAN 14-42 518p
THE HONORABLE HENRY MORGENTHAU JR
1942 JAN 14 PM 5 42
SECRETARY OF THE TREASURY WASH DC
BY HOLDING UP OTHER WORK WE WERE ABLE TO SHIP ONE MILLION BOND
ASSEMBLIES TODAY, WHICH IS 250,000 OVER AND ABOVE OUR SCHEDULE.
THIS IS IN ORDER TO CREATE AN INCREASED INVENTORY IN THE BUREAU OF
PRINTING AND ENGRAVING. WE WILL CONTINUE SHIPPING IN ACCORDANCE
WITH THE REGULAR SCHEDULE, AND WHENEVER POSSIBLE TO HOLD UP OTHER
WORK WILL SHIP EXTRA ASSEMBLIES
THOMAS J WATSON
532p
Unfilled Orders for Savings Bonds at the
Federal Reserve Banks and the Post Office Department
January 2 to date
CONFIDENTIAL
(In thousands of pieces)
today
:
Jan.
2
3
Stock of
"B" type
bonds
on hand
IBM
deliveries
this day
932
370
991
61
400
429
420
1,171
61
400
991
600
none-no mail
none-closed
1,171
61
400
1,171
4
business
:
:
manufactured
Unfilled
orders at
close of
:
today
:
opening of :
: business :
received
Bonds
:
Day
New orders
:
: Unfilled
:orders at :
1,171
257
445
1,255
333
310
1,255
425
450
1,408
511
520
1,408
639
450
1,597
511
525
460
460
1,597
511
450
1,597
1,597
649
500
1,471
236
550
1,471
155
525
1,101
236
575
10
none-no mail
560
541
600
1,101
236
11
859
595
236
625
541
805
12
423
630
236
650
805
598
13
670
550
685
598
622
236
14
5
6
7
8
9
Office or the Secretary of the Treasury,
Division of Research and Statistics.
January 15, 1942
CONFIDENTIAL
UNITED STATES SAVINGS BONDS
Comparative Statement of Sales During
First Twelve Business Days of January 1942 and December and November 1941
(November 1-15. December 1-13, January 1-14)
On Basis of Issue Price
(Amounts in thousands of dollars)
:
$ 19,874
208,339
47,376
285,171
31,088
124,732
$440.991
:
:
Series E - Banks
Series E - Total
Series 7 - Banks
Series G - Banks
Total
:
$ 25,353
:
$ 76,833
:
:
Series E - Post Offices
December
December
over
November :
$ 5,479
36,217
$ 51,480
160,963
72,729
9,424
61,650
56,092
9,642
60,389
$143,803
$126,122
January
:
:
1941
January
over
over
December
: December
:
:
1941
:
1942
November
:
:
:
December
Percentage of Increase
or Decrease (-)
:
:
January
:
Item
Amount of Increase
or Decrease (-)
:
Sales
over
: November
203.1%
27.6%
11,159
339.8
30.8
212,442
21,664
63,082
16,637
292.1
229.9
102.3
29.7
2.3
2.1
$297,188
$ 17,681
218
1,261
Office of the Secretary of the Treasury, Division of Research and Statistics.
206.75
January 15, 1942.
Source: All figures are deposits with the Treasurer of the United States on account of proceeds
of sales of United States savi ngs bonis.
Note: Figures have been rounded to nearest thousand and will not necessarily add to totals.
CONFIDENT
UNITED STATES SAVINGS BONDS
Daily Sales - January, 1942
On Basis of Issue Price
(In thousands of dollars)
Post Office
Date
All Bond Sales
Bank Bond Sales
Bond Sales
Series E
Series I
Series F
Series G
Total
Series E
Series P
Series G
Total
$ 3,982
$ 10,229
$ 1,964
$ 7,605
$ 19.798
$ 14,211
$ 1,964
$ 7,605
$ 23,780
4,802
4,457
10,736
9.557
2,056
1,278
7.779
5,453
20,572
16,289
15,538
14,015
2,056
1,278
7.779
5,453
23,373
20,747
9,684
6,711
6,748
7,509
5,746
4,398
26,724
7,659
21,267
21,297
12,359
16,031
3,240
1,341
3,692
3,821
1,798
1,858
13.704
6,778
18,832
12,871
4,765
6,355
43,668
15.778
43.790
37,989
18,923
24,244
36,408
14,369
28,015
28,806
18,105
20,429
3,240
1,342
3.692
3.521
1,798
1,858
13,704
6.778
18,832
12,871
4,765
6,355
53.352
22,489
50.539
45,498
24,669
28,641
10,187
7.902
4,706
37,483
15,059
19,939
3,830
2,507
3,701
14,353
11,944
14,293
55,666
29,510
37,933
47,670
22,961
24,645
3,830
2,507
3.701
14,353
11,944
14,293
65,853
37,412
42,639
$ 76,833
$208,339
$ 31,088
$124,732
$364,158
$285,171
$ 31,088
$124,732
$440,991
January 1942
1
2
3
5
6
7
8
9
10
12
13
14
Total
Office of the Secretary of the Treasury, Division of Research and Statistics.
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.
January 15, 1942.
36
January 15, 1942
Dear Mr. Stettinius:
In the absence of the Secretary,
I am acknowledging receipt of your memorandum of January 14th with which you
transmitted a copy of the chart "Prog-
ress in obligating and allocating LendLease Funds".
I shall present this to the
Secretary as soon as he returns.
Yours sincerely,
(Signed) H. S. Akxiz
Mr. E. R. Stettinius, Jr.,
Office of Lend-Lease Administration,
515 22nd Street, N. W.,
Washington, D. C.
file n.m.c.
37
OFFICE OF LEND-LEASE ADMINISTRATION
FIVE-FIFTEEN 22d STREET NW.
WASHINGTON, D. c.
E. R. Stettinius, Jr.
Administrator
CONFIDENTIAL
January 14, 1942
MEMORANDUM
To:
Secretary Morgenthau
From:
E. R. Stettinius, Jr.
Subject: Progress in obligating and allocating
Lend-Lease funds
The attached chart on the above subject is
sent you for your confidential information.
Attachment
Ea
V
CRET
38
ALLOCATIONS AND OBLIGATIONS
LEND-LEASE FUNDS
TOTAL
WAR DEPARTMENT
(Millions)
(Millions)
14,000
7,000
12,000
6,000
10,000
5,000
Procurement
Authorizations
Procurement
PROGRAM LIMITATION
Authorizations
8.000
4,000
APPROPRIATIONS
6,000
ALLOCATIONS
3,000
ALLOCATIONS
OBLIGATIONS
4,000
2,000
OBLIGATIONS
2,000
1.000
EXPENDITURES
EXPENDITURES
Mor Apr May Jun Jul Aug Sep Oct Nov Dec Jon Feb
1941
1942
1941
1942
MARITIME COMMISSION
NAVY DEPARTMENT
o
0
Mos Apr May Jun Jul Aug Sec Oct Nov Dec Jon Feb
(Millions)
(Millions)
2,800
1.200
2,400
1,000
Procurement
Authorizations
2,000
800
PROGRAM LIMITATION
Procurement
Authorizations
1.600
600
ALLOCATIONS
PROGRAM LIMITATION
1,200
OBLIGATIONS
400
ALLOCATIONS
800
OBLIGATIONS
200
400
EXPENDITURES
o
Mor Apr May Jun Jul Aug Sep Oct Nov Dec Jon Feb
Mor Apr May Jun Jul Aug Sep Oct Nov Dec Jon Fet
1942
1941
1942
1941
TREASURY DEPARTMENT
DEPT. OF AGRICULTURE
0
EXPENDITURES
(Millions)
(Millions)
1,000
1,500
DIFFERENCE BETWORK
APPROPRIATIONS AND
1,250
ALLOCATIONS DUE TO
800
$455 WILLION RESERVE.
1.000
600
Procurement
Authorizations
750
Procurement
Authorizations
PROGRAM LIMITATION
400
PROGRAM LIMITATION
500
O-LOBLIGATIONS
OBLIGATIONS
ALLOCATIONS
200
ALLOCATIONS
250
EXPENDITURES
EXPENDITURES
1941
1942
Office of Lend-Lease Administration - January 12,1942
0
Mor Apr May Jun Jul Aug Sep Oct Nov Dec Jon Feb
Mor Apr May Jun Jul Aug Sec Oct Nov Dec Jor Feb
194
1942
Executive Report No.1
320ted by
sw
Office of Lend-Lease Administration
SECRET
pe
me woole
STATEMENT OF ALLOCATIONS AND OBLIGATIONS
Weekly Report as of January 15, 1942
Adjusted
Appropriation Category
Appropriations
Jan. 15, 1942
Ordnance and Ordnance Stores
$ 2,251,300,000
Aircraft and Aero. Material
2,860,500,000
Allocations
Jan. 15, 1942
Obligations
Jan. 8, 1942
Jan. 8, 1942
$ 2,146,380,266 2,212,500,266
$1,060,502,098
2,806,133,792
2,756,133,792
1,883,366,451
971,100,000
914,674,875
892,904,057
415,747,664
1,657,500,000
1,561,156,667
1,531,016,667
1,143,783,766
466,500,000
432,158,409
432,158,409
89,820,797
Production Facilities
1,028,600,000
1,001,542,689
981,092,689
528,694,653
Agric. and Indust. Commod's
3,080,750,000
2,481,117,514
2,481,117,514
1,237,355,514
Servicing and Repair of Ships
310,750,000
294,219,833
294,219,833
135,871,741
Services and Expenses
325,000,000
262,142,944
250,642,944
18,522,930
20,000,000
7,729,352
7,429,352
2,325,399
$11,907,256,341$ $11,839,215,523
$6,515,991,013
Tanks and Other Vehicles
ips
Isc. Military Equipment
Administrative Expenses
Total
$12,972,000,000
Adjusted
Procuring Agency
Appropriations
Jan. 15, 1942
Obligations
Allocations
Jan. 15, 1942
Jan. 8, 1942
Jan. 8,1942
B 6,498,005,701$
6,460,854,883
$3,342,152,683
XXXXXXXXX
2,494,660,878
2,463,770,878
1,433,739,578
Maritime Commission
XXXXXXXXX
1,101,869,000
1,101,869,000
808,817,065
Treasury Department
XXXXXXXXX
817,112,879
817,112,879
368,288,412
Department of Agriculture
XXXXXXXXX
994,927,939
994,927,939
562,484,002
XXXXXXXXX
679,944
679,944
509,273
$11,907,256,341$ $11,839,215,523
$6,515,991,013
War Department
XXXXXXXXX
Navy Department
her
Total
$12,972,000,000
Funds for freight and other necessary charges are not included in obligations.
THIS DOCUMENT CONTAINS INFORMATION AFFECTING THE NATIONAL DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF THE ESPIOMAGE ACT. U.S.C. 50: 31 AND 32. THE TRANSMISSION OR THE REVELATION OF ITS CONTENTS IN ANT MANNER TO AN UNAUTHORIZED PERSON IS PROBIBITED BY LAW.
59
40
January 15. 1942.
Dear Mr. Stettimines
On behalf of the Secretary, who is
away from Washington, I am acknowledging the
receipt of your letter of January 14th, together with the enclosed material bearing
upon the Protocol agreement for the U.S.S.R.
I know that Mr. Norgenthan will appreciate
having the information this contains.
Sincerely yours,
(Signed) H. S. Klotz
H. S. Klots,
Private Secretary.
Honorable E. R. Stettinius, Jr.,
Office of Lend-Lease Administration,
Five-Fifteen 22nd Street, N.V.,
Washington, D. C.
GEF/dbs
41
OFFICE OF LEND-LEASE ADMINISTRATION
FIVE-FIFTEEN 22d STREET NW.
WASHINGTON, D.C.
January 14, 1942
1/16/20
My dear Mr. Secretary:
Enclosed is a copy of a schedule of availability
of material being procured by the Treasury, as provided in
the Protocol agreement for the U. S. S. R.
This schedule has been prepared by Mr. Batt, with
the assistance of representatives of the Treasury Procurement
Division and this office. The decisions as to availability
are those of Mr. Batt.
1020.000
TEl
work
1/16/2020
10
It is believed that this schedule may be of value
to you in connection with procurement by the Treasury of
material to meet the Protocol agreement.
Sincerely yours
Stettinius, Jr.
Enclosure
The Honorable,
The Secretary of the Treasury.
AI
42
January 15. 1942.
Dear Mr. Stettinius:
On behalf of the Secretary, who is
away from Washington, I am acknovledging the
receipt of your letter of January 14th, together with the enclosed material bearing
upon the Protocol agreement for the U.S.S.R.
I know that Mr. Morgenthan will appreciate
having the information this contains.
Sincerely yours,
(Signed) H. S. Klotz
H. S. Klots,
Private Secretary
Honorable E. R. Stettimins, Jr.,
Office of Lend-Lease Administration,
Five-Fifteen 22nd Street, N.W.,
Washington, D. C.
GEF/dbs
43
January 15. 1942.
Dear Mr. Stettimines
On behalf of the Secretary. who is
away from Washington, I am acknowledging the
receipt of your letter of January 14th, sogether with the enclosed material boaring
upon the Protecol agreement for the U.S.S.R.
I know that Mr. Morgeather will appreciate
having the information this contains.
Sincerely yours,
(Signed) H. S. Klotz
H. S. Klots.
Private Secretary.
Honorable B. R. Stettinine, Jr.,
Office of Lead-Lease Administration,
Five-Fifteen 22nd Street, N.V.,
Washington, D. C.
GEF/dbs
44
CONDITION OF THE SOVIET AID PROGRAM AS PROVIDED IN THE PROTOCOL AGREEMENT
Materials Division
Office of Production Management
January 8, 1942
Shipped
Commitment
or
Item
Through
December 31
(2)
(1)
Delivered for
Shipment
Through January 8
(3)
Balance Due
Balance Due
Through
Available Through March 31
March 31
January 1, 1942
Available Through June 30, 1942
Through
June 30, 1942
(4)
(5)
(6)
(7)
7. Field Telephone
Apparatus.
36,000 pcs.
Scheduled release
withheld by
Signal Corps
72,000 pcs.
72,000 pcs.
Signal Corps has indicated 72,000 pcs. will be available
and shipped by April 1. Primary obstacle has been in
specifications. Requisition for sound-covered apparatus
cut 50% and field telephones increased 50% by natual
108,000 pcs.
Anticipate no difficulties in meeting total amount of
108,000 pcs., providing requisitions and specifications
are filed. Antory requested uniform parts and equipment
from all manufacturers, which is not in accordance with U.S.
manufacturing practices. Signal Corps and Antorg repre-
agreement with Amtorg. Order delayed for sound-powered
sentatives have cleared this problem.
'phones tue to changes in specifications. Simal Corps
now reports original deliveries can be net.
8. Field Telephone
Cable (7 strands:
187,500 miles
type)
21,400 miles
353,600 miles
166,645 miles
will be available and shipped, made up of British diver-
562,500 siles
sions, Russian private contracts, and Russian procurements
under Lend-Lease. This is maximus possible shipment under:
present conditions according to Signal Corps, although
Requisitions have been filed for the Protocol amounts.
War Department releases are required to fulfill commitment
by June 30.
surveys are being made to locate new producers.
Underwater Telereaph Cable
150 km.
Cable.
None
300 km.
300 km.
None
Impossible to make definite commitments on availability
450 km.
and shipments until detailed specifications for total
(No requisitions)
(nita-percha)
amount through June 1942 are received.
600 km.
(Specifications
just cleared)
Requisitions and specifications placed for 98.9 miles (approximately 150 km.). This will be made available for
Impossible to make definite commitments on availability
and shipments until detailed specifications for total
amount through June 1942 are received
900 km.
Complete specifications and requisitions for balance of
Protocol amounts must be filed immediately in order to
ascertain availability of types of cable and capacity
shipment.
production before specific commitments may be made on
volume of shipments through June 30.
6,000 tons
3,700 tons
(No requisition
filed until
December 1941)
8,300 tons
8,300 tons
(Provided requisition and orders are placed Immediately]
12,000 tons
12,000 tone
for
45
Commitment
Item
Through
December 31
(1)
11. Aluminum (CONT'D)
(b) Duralumin
(2)
1,500 tons
Shipped
or
Delivered for
Shipment
Through January 8
(3)
1,590 tone
Balance Due
Balance Due
Available Through March 31
Through
March 31
Available Through June 30, 1942
Through
June 30, 1942
(5)
(4)
1,410 tons
January 1, 1942
1,410 tone
(6)
2,910 tons
Provided: (a) SPAB immediately authorises delivery of
2,000,000 lbs. hard alloy sheet for U.S.S.R. (b) Reynolds
(7)
2,910 tons
Provided SPAR authorises release of necessary hard alley
sheet, and provided Reynolds Metals Company is able to
meet production schedules. Protocol requirements for
Metals Company overcomes production difficulties which
fabricated material amount to 4, 000 tons over the 9 month
have thus far prevented it from fully meeting production
period. In fact, U.S.S.R. placed order in October 1941
for something in excess of 5,300 tons. Subject to conditions indicated in Col. 5, 11 is expected to be abreast
of the Protocol requirements by March 31. It is also hoped
that by the and of June the sajor portion of the Russian
schedules.
order for fabricated material will be shipped. If this is
accomplished, we will, of course, be approximately 1,000
tons ahead of our come twent on fabricated material.
With respect to aluminum both ingot and fabricated
11 must be remembered that every pound of aluminus
delivered for the U.S.S.R. means that such less for
our own aircraft program. There will be correspond-
ing pressure against fulfilling the schedule of
Russian deliveries, as pressure increases for accelerating
military aircraft production.
14. Mickel
1,200 tons
1,200 tons
None
Requires further study.
None
(USSR proposes
requisition additional 2,400
tons. Deliveries
desired unknown)
15. Molybdenum
10. Rolled Brass
Electrolytic Zine
Copper Goods---
Tuben, etc.
900 tons
900 tons
15,000 tons
3,238 tons
26,762 tons
2,250 tons
3,000 tons
1,500 tons
1,026 tons
774 tons
900 tons
900 tons
900 tons
1,800 tona
(Provided requisitions and orders are placed immediately)
27,453 tons
41,762 tons
3,750 tons
(Provided requisitions and orders are placed immediately)
774 tona
(Provided requisitions and orders are promptly placed)
41,762 tone
Provided orders are placed promptly and subject to speci-
fications which U. S. facilities are capable of meeting.
(Provided requisitions and orders are placed immediately
offer of this amount made to Rostarchuk on Jan. 7, 1942.
3,750 tone
1,800 tons
(Subject to placing requisitions and orders)
1,674 tons
As indicated in Col. 5, the full amount of the Protocol
commitment can be supplied by March 31.
1,676 tons
46
Consitment
Item
Through
December 31
(2)
(1)
23. Ferrosilicon
900 tons
26. Ferrochromium
600 tona
25. Armor Plate
Shipped
or
Delivered for
Shipment
Through January
(3)
342 tons
Balance Due
Balance Due
Available Through March 31
Through
March 31
January 1, 1942
June 30, 1942
(4)
(5)
1,458 tons
1,458 tons
(7)
(6)
1,800 tons
(Divided equally between 75% and 50% ferrosilicon)
3,000 tons
200 tons
1,000 tona
1,000 tons
1,600 tons
(Provided requisitions filed promptly)
None
Available Through June 30, 1942
Through
No allocations made.
6,000 tons
9,000 tons
Problem of specifications and encroach
Total gross tomage available may differ from Protocol but
milicon content will be the same as that requested.
1,600 tons
(Subject to reasonably proupt filing of requisitions)
Subject to Navy purchases, ocifications, and negotiations
between Astorg and United States Steel Export Co.
ment on Navy orders.
26. Hard Alloy and
Cutting Tools
$300,000
None
$600,000
(No required tions
Approximately $250,000 (500 tons ball wire, requisitioned
$900,000
December 15. 1941). Only 3 U.S. manufacturers can meet
$900,000
(Subject to conditions indicated in Col. 5)
specifications supplied for this item.
received until Dec-
Approximately $58,000 (396 tons cold drawn ni. no. elsotric furnace steel) available immediately from warehouse
ember 15, 1941)
stock.
Balance of commitment can be supplied provided (a) Req-
uisitions are in the hands of OPM at least 60 days before
first deliveries are to commence and (b) speci fications
are reasonably conformable to standard U.S. mill practice.
28. High Speed Steel
300 tons
None-Due to
Extgaordinary
800 tons
600 tons
900 tons
(8-33-34) by March 31 and 200 additional tons by end of
April. Requisitions received December 4, 1961.
specifications not
U.S.S.R. proposes requisition additional 1,000 tons. U.S.
can supply this additional amount beyond Protocol requiresent provided U.S.S.R. will accept 25% tungsten type and
75% so-called 662 type high speed tool steel, as U.S. con-
sumers are compelled to do in compliance priority order
formable to
standard U.S. mill
M-14, as assended.
practices, U.S.
mills could not
commence work.
29. Tool Steel
1,500 tons
None
3,000 tons
First requisition
(B-222) dated Nov.
27, received Steel:
400 tons of alloy tool steel completed by March 31, 1942.
Additional 211 tons by April 30, 1942.
390 tons plain carbon tool steel available by March 31.
4,500 tons
fications for 3,875 tons drill rod. This can be supplied
by June 30, 1942, if U.S.S.R. accepts standard U.S. analy-
75 tons is now ready for mill dispatch, awaits placing
sis drill rod grade.
purchase order by Treasury and inspection.
Branch Dec. 19,
If above order filled, total amount available by June 30
under this item would be 4,876 tons, or 376 tons in excess
No requisitions received for amounts in excess of the
1941, called for
above 1,001 tons.
611 tons alloy
Can be made available. ll though no requisition has been
filed, U.S.S.R. has given Iron & Steel Branch, OPM, speci-
of commitment.
tool steel. R-223,
same date, called
for 390 tons plain.
carbon tool steel.
(
rated
None
None
None
5,960 tons
(R.182,183,dated 11-27-41 filed with OPM Steel Branch 12-17-61
None
Additional quantities can be supplied, amounts depending
on sise and analysis requested
47
Item
Come twent
Through
December 31
Shipped
Delivered for
Shipment
Through January 8
(1)
31. Net Rolled Steels
(2)
(3)
(Chrome-Silicon=
None
24,000 tons
None
1st requisition,
Manganese)
Balance Due
Through
March 31
Available Through March 31
January 1, 1942
Through
Available Through June 30, 1942
June 30, 1942
(b)
(5)
21,000 tons
(No requisitions)
32. Steel Billets
Balance Due
(6)
42,000 tons
42,000 tons
of hot rolled strip or sheet steel can be made available
provided (a) Requisitions are received in Steel Branch,
OPM, by 1-20-12 for full amounts (b) Sises, both width and
gauge, are widely spread over full range of U.S. production
and (c) Specifications are conformable to U.S. standards.
48,000 tons
6,dated 12-1041, rec'd OPM 12-
16,000 topa
by March pursuant to B-528.
Additional 14,000 tons can be sade available by March 31
31-41, allocated
63,000 tons
Subject to conditions not forth in Col. 5 with the further
condition that requisitions covering the last 3 months'
Protocol
March
1.
amounts be received in the OPM Steel Branch by
72,000 tona
60,000 tons
available by June 30. dependent on availability of chromium.
Remaining 12,000 tons can be supplied in July and August,
subject only to the continued availability of chrosium.
12-31-41 for
(7)
63,000 tons
1942, again subject to the availability of chronium.
16,000 tons for
livery in Jan.
Feb., 1942.
33. Gold-rolled
Steel Strip
24,000 tons
None
No requisition
received until
48,000 tons
72,000 tons
72,000 tons
will be available, subject to conditions outlined in Col.
5. with the further provision that requisitions covering
be made available provided: (a) Requisitions received by
January 20 for full amount. (b) Sises, width, and guage
are widely spread over full range of U.S. production in
accordance with our respective capacities for the various sises, gauges, etc. (c) Other speci fications are
December 17.
the last 3 acaths' Protocol amounts to be in the hands of
OPM by March 1.
conformable to American standards.
34. Cold-rolled
Steel Sheet
805 tons will be delivered in January, fulfilling only
requisition received to date. Total of 48,000 tons can
24,000 tons
None
No requisition re-
48,000 toos
8,050 tons will be delivered in January, fulfilling only
requisition received to date. Balance of 39,950 tons can
ceived until Dec-
72,000 tons
ember 17.
72,000 tona
will be available subject to conditions outlined in Col.
5, with the further provision that requisitions covering
be made available provided (a) Requisitions are -
ceived in OF Steel Branch by January 20 for full amount.
(b) Sises, both width and gauge are spread over full
range of U.S. production in accordance with our respect
the last 3 months' Protocol amounts be received in the
OPM Steel Branch by March 1.
ive capacities for the various sises, gauges, etc. (e)
35. Tin Plate
Specifications are conformable to U.S. standards.
12,000 tons
2,000 tons
22,000 tons
Total of 18,000 tons has been ordered for shipment in
January and February thus completing commitments through
February 28, March and later months are subject to the
commitments in Col. 7.
34,000 tons
Mill capacities are sufficient to fill the balance of the
consis taent but a critical situation in tim may cause a our
tailment in Lend-Lease commitments as it has for domestic
needs.
48
Commitment
Item
(1)
36. Steel Wire
Through
December 31
Shipped
Balance Due
Shipment
Through
March 31
or Delivered for
Through January 8
(2)
21,000 tons
(3)
None
In accordance
No requisitions
with specifica-
received until De-
tions.
cember 17.
Balance Due
Available Through March 31
January 1, 1942
Through
Available Through June 30, 1942
June 30, 1942
(4)
42,000 tone
(5)
6.156 tone have been made available for shipment by March
(7)
(6)
63,000 tona
31. Bulk of this is in high tensile mall gauge. Impos-
sible to make full 42,000 tons available in these specifications. Full amount can be made available in low carbon, heavy gauge types, and provided requisitions for
Full Protocol amount will be made available provided not
more than 7,000 additional tons is of mall gange, high
tensile strength as requisitioned in B-22h, 226, and 231.
See remarks in Col. 5.
balance are placed within two weeks,
37. Steel Wire Ropes
3,600 tons
None
No requisitions
4.000 tons
7,200 tons
10,800 tons
will be made available by March 31 provided: (a) requisi-
received.
tions filed with OPM within next 2 weeks. (b) Specifica-
tions are conformable to American standards for sise,
analyses. and tensile strength. (c) Not more than 10% is
Balance will be made available subject to the following
conditions: (a) Requisitions are received by OPM not later
than March 1. (b) Specifications are conformable to
American standards for sise, analyses, and tensile strength.
(c) Not more than 10% is in sises 1/2" diemeter and under.
in sises 1/2* dismeter and under.
38. Steel Alloy
Tubes.
600 tons
None
1,200 tons
1,200 tons
No requisitions
1,800 tons
can be made available provided (a) Analysis does not
exceed is to 64 chrone, 1/2% molybdenu. (b) Sige is not
received.
Balance will be made available subject to conditions outlined in Col. 5 and provided requisitions received by OPM
not later than March 15 for April, May, and June deliveries.
larger than 5° outside diameter, nor maller than 3/4*
outside diameter, and wall thicknesses for 2* to or
diameter do not exceed 1/2" hot rolled. (e) Cold drawn
content does not exceed 10%. (d) Requisitions are filed
with OPM by January 20.
39. Stainlean Steel
Wire
60 tons
None
120 tons
120 tons
180 tons
Balance will be available if ordered promptly.
will be available if ordered immediately.
Requisition received Dec. 31
for 12 tons.
to. Nickel Chrome
Fire
60 tons
80 tons
160 tone
LO tone
100 tons
100 tons
will be made available provid requisitions for the full
amount are filed in January.
11. Barbed Wire
12,000 tons
13,472 tons
will be delivered
by February 1.
24,000 tone
13,471 tons will be available for shipment January 31.
Balance of 10,529 tons will be made available by March 31.
36,000 tons
Balance will be made available by June 30.
49
Shipped
Conset twent
or
Through
December 31
(1)
42. Tolsol
(2)
6,000 tons
Through
Shipment
Through January
(3)
2,374.6 tons
Balance Due
Balance Due
Delivered for
Available Through March 31
March 31
January 1, 1942
Available Through June 30, 1942
Through
June 30, 1942
8
Item
(4)
9,625.4 tons
(5)
(6)
See Col. 7.
15,625 tons
(7)
There will be adequate production facilities to make fall
amounts available. Under existing arrangements with
Ordnance Department, the Arwy gets first call on each
month's allocation of toluel for TNT. Consequently
Materials Division cannot assure availability The War
Department must also concur in diversion of this amount
for delivery to U.S.S.R.
10,000 tons
THT
(as soon as
possible)
W. Mitroglycerine
Powder
See Col. 7
No definite
100 tons
Ordnance Department. Consequently, it will be necessary
for War Department to arrange for diversion of necessary
TNT to fulfull U.S. commitment.
Same comment applies as in case of TNT.
commitment
commitment
lb. Phenol
No definite
Materials Division has no control over production and
distribution of TNT which is exclusively under control of
737 tons
2,250 tons
1,913 tons
4,163 tona
4,163 tone
will be available for delivery.
will be available for delivery.
Allocations must be made by January 25.
46. Ethylene Glycol.
360 tone
207 tons
513 tons
Requisition should be filed with Chemical Branch, OPM,
673 tone
Balance can be shipped if requisitions filed and allocations made one month before deliveries are required.
by February 15, and deliveries will be made fairilling
Protocol amounts to this period.
47. Sodium Promide
300 tons
54.5 tons
945.5 tons
48. Phoephorus
300 tons
302 tons
298 tons
49. Dibuty1-Phiate
400 tons
None
1,300 tons
will probably be made available through current accelerstion of monthly deliveries.
Balance will be shipped if procurement agency places ordere for full amount.
Full 1,300 tone
845.5 tons
598 tons
2,200 tons
can be made available through drastic curtailment of e1-
Balance expected to be shipped ahead of schedule.
Balance will be shipped if procurement agency places or
dere for full amount.
Retimated 2,000 tons
will be available for shipment under - conditions as in
Col. 5.
vilian uses and provided procurement agencies place or
dere immediately with suppliers designated by OPM Cheatcale Branch.
50. DimethyLaniline
Dipberglamine
200 tons
300 tons
72.7 tons
None
527.3 tons
600 tons
Balance can be made available for shipment
Ordnance Department has control of practically all pro-
duction facilities and we are therefore unable to give any
assurance with respect to availability.
1,127.3 tons
900 tons
Balance will be made available for shipment.
Ordnance Department has control of practically all production facilities and we are therefore unable to give any
assurance with respect to availability.
50
Commitment
Item
Through
December 31
(1)
52. Colloglin
Shipped
or Delivered for
Shipment
Through January 8
Through
Machine Tool
Available Through March 31
March 31
(2)
(3)
(b)
900 tons
50 tona
1,750 tons
(Wet Basis)
53. Metal Cutting
Balance Due
Bal ance Due
January 1, 1942
June 30, 1942
(5)
1,200 tons
2,650 tons
will be made available. Efforts will be made to obtain
commit taenta
194 units total-
2,625 machine tools valued at $26,639,112.73 have been
cleared on Lend-Lease for purchase by the Ordnance Depart-
sent. These items have been cleared since October 1941
mate deliveries except on the basis of completed orders
ing $1,025,000
placed by Aatorg
placed with the manufacturer. Deliveries in general will
have been shipped.
(Not under Lend-
and specifications filed the latter part of 1961 and during the first quarter of 1962.
and deliveries will be made during the current year. In
addition, approximately $11,000,000 of machine tools are
on order by Amtorg, to be paid for out of private funds
and will be delivered during the year. These do not ap-
be made during the year on those completed requisitions
on private orders
2,400 tons
will be maximum amount that can be made available for
shipment.
There is very little precise information on this item.
Due to the character of the item it is impossible to esti-
None
(7)
(6)
cooperation of Ordnance Department for additional 500 tonal
No definite
Available Through June 30, 1942
Through
pear under Lend-Lease requisition.
Lease.)
NOTE: The only conditions under which such of the equip-
sent can be delivered would be by substituting
machines built in accordance with American standard
specifications and taking such machines from inportant programs covered by the Master Preference
List.
& Electric
Purpases
140 pieces
None
Requisitions covering 67 electric furnaces in the amount of
See Item 53, Col. 5.
1,514,000 have been placed on the Lend-Lease requisitions.
As of November 15. 1941 there were 155 electric furnaces
initially committed for delivery
with a dollar value of $2,308,582.73 on order for which
Astorg had filed a preference rating on PD-1 form. These
are understood to be in addition to those placed under
during 1942.
Lend-Lease requisitions.
See Item 53, Col. 7.
55. Forging and
Press Equipment
None
$195,035
(Number of units
unknown)
627 pieces
Astorg has on order 264 machines with a dollar value of
See Item 53, Col. 5.
$6,015,508.71 ($195,035 of this amount already shipped).
See Item 53, Col. 7.
initially committed for
9 months.
No information available on this item at this time.
56. Various Indus-
trial Equipment
(Every assistance practicable)
58.
$2,700,000
$900,000
None
No requisitions re-:
scived until Dec.19:
$1,800,000
Abrasives valued at $900,000 *12] 28 available and shipped
by middle of March Balance will available only
sisions are filed immediately to cover additional
$200
Balance will be made available if all requisitions are
filed in March.
51
(1)
59. Graphitises
Electrodes
Through
December 31
(2)
1,200 tons
Shipped
Through
Shipment
Through January
Balance Due
Balance Due
or Delivered for
Available Through March 31
March 31
(3)
388 tons
January 1, 1942
Available Through June 30, 1942
Through
June 30, 1942
8
Commitment
Item
(4)
(5)
967 tons
2,012 tons
(7)
(6)
3,212 tons
will be available and shipped by March 31.
There are two primary factors influencing schedules of
shipments. One is the actual time consumed in manufactur-
ing. The other is the specialised nature of this industry.
Impossible to fulfill first 6 months' come taent, as 100
For example, only two companies have facilities for produeing the larger alses, which make up over half the order.
days are consumed in actual process of manufacture. In
fact, 289 tons were diverted from British shipment. This
The following schedule of deliveries has been arranged and
must be replaced.
is agreeable to Amtorg:
December 1941 388.1 tons
July 1942 380.0 tons
August 1962 326.8 toos
January. 1962 51.0 tone
February,1942 197.1 tons
September M 267.8 tons
April 1962 119.6 tone
November 1962 174.3 tons
December 1962 157.7 tona
October. 1962 256.1 tons
March 1962 330.6 tone
64. Sole Leather
.500 tons
None
.500 tons
9,000 tons
13,500 tons
1,500 tons per month from January through September.
to secure speciDecember 15.
1962
January 1963 117.0 tons
419.6 tone
9,000 tone in accordance with schedule (Col. 5). Balance
be made to accelerate completion of commitments.
First month's come taents secured by diversion from civilian orders. More will be shipped, if possible, to comply
fications until
June
through September Additional requisitions and specifications should be filed immediately in order that efforts say
made up with Russian agreement providing for shipment of
layed by failure
1962 414.3 tons
in equal monthly deliveries of 1,500 tons each from August
will be available and shipped. Schedules of deliveries
Allocation de-
May.
with the Protocol, all though specifi cations covering 1500
tona only have been received.
66. Aray Boots
400,000 pr.
400,000 pr.
600,000 pr.
1,000,000 pr.,
1,600,000 pr.
ance will be shipped by May 31.
total six month Protocol commitment will be shipped by
March 15.
67. Army Cloth
See Col. la
250,000 yds.
1,000,000 yds.
(Four months' conmitment, 10-1-43
to 1-31-42.)
This commitment is being fulfilled by the Quartermaster
Corps, which has al ready bought the full 1,000,000 yds.
600,000 yds. will be delivered latter part of December
and January and 400,000 yds. in February 500,000 yds.
of reprocessed wool were offered to the Bassians but re-
fused because of apparent poor quality. All of this in
formation has been provided by the Army.
No further
Count Itsents.
mean
C
0
52
P
Y
DEPARTMENT OF STATE
WASHINGTON
learn
January 15, 1942
In reply refer to
PR 701.3311/234
The Secretary of State presents his compliments to the
Honorable the Secretary of the Treasury and informs him of the
receipt of a note dated December 30. 1941 from the Ambassador
0 Uruguay informing the Department that the Uruguayan Government has appointed Senor Carlos M. Fernandez Goyechea as
Financial Attache to the Embassy of Uruguay in Washington.
Copy:1c:1/19/42
53
CABLE
In: Caracas
Dated: January 15, 1942
Rec'd: January 16. 1942
Federal Reserve Bank of New York,
New York,
#1
Please buy for our account 22,857 ounces of gold
within approximate value $8,000,000 debiting us cost
of gold plus expenses. We shall leave gold purchased
earmarked with your good selves. Kindly advise execution.
Banco Central de Venezuela.
HERRERA MENDOZA.
(Received by telephone from Federal Reserve Bank, New York,
1:55 P.M., 1-16-42)
ec
54
OUTGOING CABLE
From: Federal Reserve Bank of New York
Dated: January 16, 1942
Banco Central de Venezuela,
Caracas.
#1
Your no. 1. Cost of 22,857 fine ounces would only
be about $802,000. We assume you wish to acquire gold
to increase your gold reserve. Please confirm by cable.
Federal Reserve Bank of New York,
(Received from Federal Reserve Bank, New York, 1:55 p.m.,
1-16-42)
ec
55
CABLE
From: Caracas
Dated: January 16, 1942
Rec'd: January 17. 1942
Federal Reserve Bank of New York,
New York.
#2
Attention Mr. Allen Sproul
Purpose of our purchase of gold is strengthen our
reserves.
(Signed) Banco Central de Venezuela
HERRERA MENDOZA.
(Received from Federal Reserve Bank, New York, 10:00 a.m.,
1-17-42)
ec
56
CABLE
From: Caracas
Dated: January 16, 1942
Rec'd: January 17. 1942
Federal Reserve Bank of New York,
New York,
Attention Mr. Allen Sproul
#3
Refer to our wire no. 1 January 15 interested to
purchase about $8,000,000 approximate equivalent
228,571 ounces of gold.
(Signed) Banco Central de Venezuela
HERRERA MENDOZA
(Received by telephone from Federal Reserve Bank, New
York, 10:00 a.m., 1-17-42)
ec
TREASURY DEPARTMENT
57
INTER-OFFICE COMMUNICATION
DATE January 15. 1942
TO
Secretary Morgenthau
FROM Mr. Dietrich
CONFIDENTIAL
Registered sterling transactions of the reporting banks were as follows:
Sold to commercial concerns
Purchased from commercial concerns
£46,000
£15,000
Open marked sterling was quoted at 4.03-3/4, and there were no reported
transactions.
In a very thin market, the Argentine free peso improved another 10 points
to close at .2375.
In New York, closing quotations for the foreign currencies listed below
were as follows:
Canadian dollar
Brazilian milreis (free)
11-5/8% discount
Uruguayan peso (free)
Venezuelan bolivar
.0516
.5775
.2065
.5250
.2675
Cuban peso
Par
Colombian peso
Mexican peso
We purchased $1,700,000 in gold from the earmarked account of the Central
Bank of the Uruguayan Republic.
The Federal Reserve Bank of New York reported that the Bank of Mexico was
making three gold shipments with a total value of $4,373,000 from Mexico to the
Federal, to be earmarked for its account.
In London, spot and forward silver were again fixed at 23-1/2d and 23-9/16d,
respectively, equivalent to 42.67$ and 42.78#.
The Treasury's purchase price for foreign silver was unchanged at 35$. Handy
and Harman's settlement price for foreign silver was also unchanged at 35-1/8
We made no purchases of silver today.
A
58
BRITISH EMBASSY
WASHINGTON, D.C.
January 15th, 1942.
PERSONAL & SECRET
Dear Mr. Secretary,
I enclose herein for your personal
and secret information a copy of the latest
report received from London on the military
situation.
Believe me,
Dear Mr. Secretary,
Very sincerely yours,
(For the Ambassador)
R.I. Campbell
The Honourable
Henry Morgenthau, Jr.
United States Treasury.
Washington, D.C.
59
Copy No.
13
BRITISH HOST SECRET
(U.S. SECRET)
OPTEL No. 17
Information received up to 7 a.m., 14th January, 1942,
1, NAVAL
One of H.M. submarines set on fire and sank a 2,000 ton merchant
vessel in ballast in the Eastern Mediterranean on January 2nd. Australian Hudson
aircraft attacked a Japanese cruiser and transport off the CELEBES Islands and
claimed two probable and two possible hits. Cns medium sized ship of an outward
bound convoy was sunk in the Vestern Approaches In East Coast convoys, one medium
sized ship was sunk and one medium sized ship damaged by enemy aircraft,
2, MILITARY
LIBYA. By the evening of the 12th, contact had been made with the
enemy in the neighbourhood of EL BREGA. Further South our forces have come against
prepared enemy infantry and gun positions roughly along the track from BUES SUERA BELCLEIBAT - MAATEN GIOFER. There is much movement of enemy H.T. West of BURRUEA
with which our armoured cars are already in touch, The number of prisoners captured at SOLLUM is given as 7 Officers, 315 Other Ranks of whom approximately
half are German.
MALAYA. It now appears that the Japanese have not followed up our
withdrawal beyond KUALA LUMPUR, 9 Japanese dressed as Malays were captured in
South East JOHORE, The Commander A.I.F. has assumed command of a force to be know
as Test Force comprising one Australian Infantry Brigade Group and one Indian Infantry Brigade Group. An important convoy reached SINGAPORE on the 13th.
BORNEO , There has been an engagement between Indian troops and
Japanese forces near the SARATAK-DUTCH BORNEO border. No details yet available,
it TARAKAN the Dutch forces have surrendered after heavy fighting, the oil denia
scheme having been completed.
RUSSIA. There is not some confirmation that the Russians have tak
LYUDINOVO on the VYASMA-BRYANSK railway. German counter attacks in the area Scut.
of KURSK is continuing.
3.
AIR OPERATIONS
MEDITERRAIEAN LIBXA. Night 11/12. TRIPOLI, HCMS and military
targets near SIRTE were attacked by 8 Wellingtons and a Liberator. Enemy aircraft
damaged an Ordnance Depot at TOBRUK.
12th. HALFAYA was bembed at intervals throughout the day.
Night 12/13th. TRIPOLI was bombed by 5 Wellingtons,
60
-2During night 12/13th and the following day 6 enemy aircraft bombed
BENG HAZI and laid mines in the harbour.
MALTA. 13th. 38 bombers and fighters attacked HALFAR area des-
troying 1 Hurricane and causing some civilian dasualties. Two ME 109's were des
troyed.
FAR EAST. 12th. 120 enemy aircraft made 3 attacks on SINGAPORE.
6 enemy fighters were destroyed and 4 more probably destroyed. Our losses were 6
aircraft and 2 pilots.
40 HOME SECURITY
During daylight a single airoratt bombed Dorman Long's Iron Works,
Redoar. Casualties reported 10 killed and a single aircraft bombed LONESTOFT with
some damage to private property and 35 people killed.
Japanese transports have been located in CAMRANH BAY and in MARSHALL
5.
ISLANDS,
Reported that the daily movement of about 1,800 tons of motor spiri
6a
and diesel oil from GERMANY to ITALY which started on 12th December was still con-
tinuing on January 3rd.
32 hours is in future to be the normal working week throughout the
7.
large textile industry in ITALY. This reduction is the result of increasing
shortage of raw materials.
8.
MATAYA. It is understood that owing to damage at TAMPIN consider
able amount of rolling stock has been immobilized to the North of this place, but
at GENAS which is now railhead there is sufficient stock to work the line from
SINGAPORE to GEMAS to full capacity. The programme for the destruction of dredger
and rubber stooks at SELANG OR was successfully completed in the main.
61
NUMBER 14
SECRET
COORDINATOR OF INFORMATION
THE WAR
THIS WEEK
January 8-15, 1942
.01
STATE
NOT
Printed for the Board of Analysts
Copy No. 3
SECRET
January 8-15, 1942
THE WAR THIS WEEK
January 8-15, 1942
In the Far East the Japanese continued this week to capi-
talize the mobility won by the blows struck in the opening
days of the war and their attacks splayed out from Rangoon
to Rabaul, a distance of more than four thousand miles.
On the Russian front the German withdrawal persisted and
should soon reach the point where general military opinion
places the so-called Nazi winter line. Elsewhere in Europe
indications of coming German moves give as yet no adequate
basis for assured prediction.
The Drive on Singapore
Reaching out toward the strategic center of the Allied
effort in the Far East, the Japanese offensive this week
pushed relentlessly down the Malay Peninsula toward
Singapore The Japanese have taken Kuala Lumpur, the
world's leading rubber producing center; they have forced the
British back to positions about 100 miles from the Straits of
Johore; and there is as yet no indication of a slackening of
the momentum of their drive.
The Japanese are pushing forward in an area which
produces the major portion of four commodities essential to
the conduct of war-rubber, tin, and to a lesser degree
kapok, and cinchona bark (for quinine). They have already
seized areas producing nearly 55 per cent of the region's
rubber and 70 per cent of its tin.
Although we have stocks of tin sufficient for more than a
year, without restrictions, OPM has ordered a 50 per cent
1
SECRET
SECRET
curtailment in its use during the first quarter of 1942 and
The Menace to Burma
its complete discontinuance thereafter for a number of nonessential purposes (chiefly tin foil).
peacetime consumption of new rubber-600,000 long tons-
Competent military sources believe an attack on Burma
will follow as soon as the situation in Malaya will permit a
diversion of adequate air support. Three comparatively
good routes lead into Lower Burma from Japanese-held
but are well below even the 1941 consumption rate of 750,000
Thailand, and these are partly or wholly negotiable by auto-
tons. Supplies for 1943 will depend primarily on reclaimed
mobile during the dry season (which now obtains). In
rubber (300,000 tons annual average) and production of
addition there are at least six horse trails over the mountains
synthetic rubber, for which our negligible present capacity is
to be increased to 400,000 tons by mid-1943, according to
present plans. To fill the inevitable gap, civilian consumption is to be reduced in the immediate future by 80 per cent.
in this same region. These routes are vital because Lower
United States rubber stocks slightly exceed average annual
Burma can be invaded much more easily than Upper Burma,
and because in the dry season it is a flat desiccated plain
which, with the exception of three north-south rivers, offers
no geographical obstacles to an invader who has once crossed
the mountains.
Defense of the Philippines
Isolated in the Fortress of Corregidor and on the Bataan
Peninsula, American forces have brilliantly repelled attacks
The Importance of Burma
Rangoon is the political, economic, governmental, and
communications center of the country. It is also the port of
by the Japanese, but it is clear that the enemy is rapidly
bringing up fresh reinforcements in an effort to bring this
reception for goods destined for China via the Burma Road.
Rangoon has been repeatedly bombed, its stevedore force
unequal struggle to a close.
The strategic position of the Philippines has been alluded
to in previous weeks, and is now apparently being exploited
disorganized, and its traffic apparently notably reduced in
volume.
to the full in wide-ranging naval and air attacks by the
In addition to its crucial importance as the terminus of the
route to China, Burma produces annually 250 million gallons
Japanese on the Netherlands Indies and beyond. Japanese
forces have seized the Dutch oil island of Tarakan off the
eastern coast of Borneo. They have made landings on
Netherlands Indies,
bombing India and preying on commerce in the Bay of
Bengal, and it might be developed as a base for an assault on
I
Minahassa, the northeastern arm of the Celebes, and they
have repeatedly bombed the Australian outpost at Rabaul,
guardian of the vital sea communications to the east of the
of oil (and has large refineries); it is a very important rice
producer and exporter; it would be an excellent base for
India. Moreover, the conquest of Burma would deny to the
United States essential tungsten imports. During the first
six months of 1941 more than half of our total imports of this
metal (originating in China and Burma) were shipped from
Rangoon.
3
2
SECRET
SECRET
The Significance of Changes in the Chinese Government
Since the entry of the United States and Britain into the
and has a Japanese wife. As Governor of Fukien the latter
offered indifferent resistance to the Japanese.
Far Eastern conflict, the attitude of the Chungking govern-
ment has been the subject of the most attentive interest.
The recent changes in the higher ranks of the government at
Chungking are believed by Ambassador Gauss to reflect
merely the effort of the Kuomintang to consolidate its power,
Chiang Kai-Shek and his policies remaining unaffected. It
is also to be noted, however, that officials known to be
ardently pro-American and pro-British have been displaced.
T. V. Soong has replaced Quo T'ai-ch'i as Foreign Minister.
The latter is a man of American education, and he was
Minister and Ambassador to Great Britain from 1932 to 1941.
Since this step was taken in part to strengthen Mr. Soong's
position in Washington, undue significance might readily be
attached to it. On the other hand, for Quo T'ai-ch'i to
remain in eclipse would be a blow to democratic interests.
H. H. Kung, who is Minister of Finance and also friendly
toward the United States, has been ill and is recuperating
It is possible that recent changes in office reflect a decline in
his power, which has been very extensive at Chungking
T. V. Soong is his rival.
Perhaps connected with Kung's illness is the displacement
of T. Tsiang from the key post of Secretary-General of the
Executive Yuan, or, in effect, chef du cabinet to the General-
issimo. Dr. Tsiang attended a small high school in North
Dakota and spent eleven years getting his education in the
United States. He became the leading historian of Chinese
foreign relations and Dean of Tsing Hua University before
entering the government. Like Quo T'ai-ch'i, he represents
German Withdrawal in the East
It is not yet clear how seriously Soviet attacks are interfering with the Nazi withdrawal on the main Russian front.
An important threat to the Germans will appear only if the
Russians succeed in making a notable breach in the line on
which the Nazis propose to stabilize. Military observers are
inclined to agree that that line runs, in the north, Lake
Ladoga-Volkhov River-Lake Ilmen-Valdai Hills; in the
south, Kursk-Kharkov-and then generally south to the
Sea of Azov.
In the center, German intentions are less clear and there
are several alternatives. If the Nazis intended to hold the
line of the Oka River, the Russians have already breached
that at Kaluga. The next line, Rzhev-Bryansk, apparently
offers the last possibilities of adequate troop shelter east of
the Smolensk region. The Soviets have now driven a wide
salient through this line at Lyudinovo and Kirov, and have
breached the lateral railroad line from Vyazma to Bryansk.
If the Germans lose this line, they may still fall back to the
Smolensk area, but any retreat beyond that point would, in
the opinion of competent military observers, mean a disorganization of the whole central German defense system and a
blow of the most serious character.
A Line of Vital Railheads
the democratic front in China. It is certainly of importance
The Nazi stabilization line is not to be conceived as a
natural barrier in any sense. It would simply represent an
that his place as Secretary-General has been taken by Ch'en
effort to protect certain railheads which lie in general on the
Yi, a notorious opportunist who attended school in Japan
slight elevation marking the watershed. Even the rivers
5
4
SECRET
SECRET
forming part of this line now offer no real protection, since
Riviera," sheltered by the abrupt escarpment of the Yaila
Mountains and enjoying a milder climate. The nobility of
Tsarist days had luxurious winter homes there, and the
they are frozen over during the winter months.
1
Cities like Smolensk and Kharkov are rail junctions and,
according to the report of a reliable observer, probably mark
Germans planned to use the area as a recuperation center for
the eastward limit of Nazi track conversion efforts. Railheads are naturally vital in a campaign such as that in
their wounded.
Russia, where the Germans have been forced by inadequate
roads and by gasoline and tire shortages to rely on the railroads to an unusual degree.
Smolensk also offers the only adequate extensive winter
shelter for troops on the central front, if half-ruined Vyazma
is neglected. In the vicinity of Smolensk the Germans have,
according to reports, constructed winter quarters on a large
is a platform sloping gently to the north. The area north of
the mountains is almost entirely steppe-dry, inhospitable,
and sparsely inhabited. With the exception of the south-
scale.
offensive in the Crimea. Anything like a complete defeat of
With the exception of the southern mountains, the Crimea
eastern region, the Crimea is poorly provided with roads, as
the map shows, and the Russians are already in possession
of parts of this area.
It is far too early to predict the course of the Russian
the Germans in this area would seriously jeopardize the whole
Nazi position in southern Russia. A close observer of the
1
Crimean Offensive
In the Crimea the picture is clearer. There the Nazis
seem definitely to have been taken by surprise and with
Russian scene believes that the demonstrated weakness of
the German air arm in the Crimea is evidence of a voluntary
inadequate air defenses, with the result that the Russians
withdrawal of German air strength from the eastern front.
He points out that the Crimean winter is not such as to
oblige the reduction of air strength (as may have been the
case further north). He concludes that this voluntary withdrawal may be connected with a massive German air con-
have made successful landings on three faces of the peninsula.
They have relieved the crucial naval base at Sevastopol, have
taken Balaklava, have made landings at Evpatoriia and Yalta,
and are gradually pushing inland toward Simferopol, the
administrative center of the Crimea. At the same time the
Russians are moving westward on Simferopol from a line
centration aimed at some all-out objective, such as an attack
on British naval forces in the Mediterranean or in British
home waters. He excludes an immediate attack on Turkey;
connecting the Black Sea and the Sea of Azov, near Feodosiia.
if the Nazis had intended such an attack, they would not
Crimea Suited to Winter War
have permitted Russian successes in the Crimea, precisely
calculated to stiffen the backs of the Turks.
As the map indicates, the Crimea is far more suited to
1
winter operations than the more northerly parts of the Russian front. The peninsula as a whole has an average January
temperature of about 32 degrees, and the snow cover in the
colder interior region lasts only for some forty days. On the
peninsula's southern tip, however, is the favored "Crimean
Nazi Preparations in the Mediterranean
There is positive evidence, as well, of Axis activity in the
Mediterranean which might be preparatory to important
7
6
SECRET
SECRET
action against the British fleet. Concentration of submarines
Anti-Collaborationism in France
and high speed surface craft, coming through Gibraltar, is
As a concomitant of current German difficulties, anti1
reported to our Consul in Geneva by an informant who has
just spent some weeks in France, and who goes so far as to
suggest the possibility of a large-scale attack on the British
collaborationist sentiment in official French circles is reported
to have grown notably. It is no longer Pétain alone who is
mentioned. The conservative Bouthillier, Finance Minister
navy in that area. Great activity is also reported at Pan-
with Banque Worms connections, is said to regard collaboration as a dead issue, an opinion shared by numerous of his
telleria where speed boats and two-man torpedo carriers are
being gathered, possibly for an attack on Malta after that
stronghold has been sufficiently softened by air attack. In
this connection it is to be noted that Malta has had fortytwo air-raid warnings during the past week, bringing the
total for the war to 1218, and that on Thursday no fewer
than seventeen air attacks were reported for the previous
friends. Even Pucheu is hesitating, although loath to admit
his earlier error. And Darlan is said to feel sure that the
Allies will now win.
Vichy is reported as calm but expecting further Nazi
demands before long. The Germans are said to be furious
with Pétain for his New Year's Day speech. General
twenty-four hours.
French forces in Tunis-a reward for his independence, it is
1
A German Move Through Spain?
Delattre de Tassigny has been ousted as commander of the
said. But such a concession to the Germans and the French
The capital news from western Europe is that Franco has
finally yielded to German pressure and agreed to the passage
of German troops through Spain, according to the Spanish
Ambassador in Vichy. The Caudillo has insisted, however,
collaborationists would scarcely accord with the above
stories of the growth of resistance to the Nazis. At best the
French scene continues to be confused.
that this move be delayed until after the termination of the
Rio conference, by reason of the resentment it is expected to
arouse among the nations of Latin America.
At the same time there are no outward indications of an
early move in this direction, and conditions in southwestern
Anti-Collaborationism in Spain
France are quiet (two regiments are reported to have left
France for Russia during the past week). A director of the
by the interests of Spain, untrammeled by Axis ties. The
General was recently described as ambitious to succeed
French railways points out, however, that a German move
into Spain need not be preceded by a concentration along the
Franco, and as placing his own supporters in high adminis-
Spanish Moroccan affairs, and is declared to be moved solely
1
frontier, since the capacity of the French railways is nine
Spain, too, has anti-collaborationists. General Orgaz is
reported to be taking a more and more independent line in
trative posts. The retirement of Suner, which is reported to
be imminent, would probably strengthen the position of
times that of the Spanish railways lying opposite the occupied
Orgaz.
portion of the Pyrenean frontier. This of course takes no
account of the probability that German forces would be
General Orgaz represents in Spain the conservative,
Catholic, and military tradition, as contrasted to the new
moved into Spain in large measure by truck.
fascist trend of the Falangists, just as Pétain represents much
9
8
SECRET
SECRET
the same tradition in France, in opposition to men of the
stamp of Pucheu. This traditionalist background is proba-
west-coast countries of South America practically all propaganda is disseminated by Japanese residents in conversation.
It is not considered a problem in Mexico and Chile, but substantial numbers of intelligent Japanese in Ecuador and Peru
bly not unconnected with the resistance of Orgaz and Pétain
to collaboration with the Axis.
make verbal propaganda there a more serious matter. In
Uruguay, Bolivia, and Paraguay, Japanese propaganda is
Growing Difficulties of the Finns
virtually non-existent.
The position of the Finns is becoming increasingly painful.
It is in Argentina that the propaganda of the Japanese
The difficulties of the food situation are illustrated by the
report that, with a promise of butter from Germany, the
Finns will presently increase their fat ration from roughly
appears to have been most active. There they have several
means of dissemination at Japanese disposal: broadcasts, free
entertainments and pamphlets, a tourist bureau, a monthly
one and a half to three ounces a week, which will, it is said,
in Spanish, and three newspapers in which they have occa-
make it just over one-quarter of the German ration. With
sional sections in Spanish at their disposal.
the early winter and the shortage of labor resulting from the
mobilization, only half of the vital autumn plowing was
Latin America Reacts to the President's Message
1
completed. Among the laboring class in the cities, a serious
tide of discontent is reported. Progressive demobilization is
The Latin American reaction to the President's annual
message was generally favorable. Newspapers in most of the
countries printed the speech in full or in large excerpts. The
returning soldiers to civil life, and the Finns as a whole are
only too obviously war-weary and anxious to enjoy again the
lesser difficulties of peace.
public reaction appears to have been very favorable in the
northern countries, becoming enthusiastic in the vicinity of
As to official Finnish intentions, a straw in the wind is
the Canal. In general, it appears that both interest and
offered by the report from our Minister in Stockholm that an
agreement has been reached by the Anglo-Saxon correspond-
newspaper headlines dwindled somewhat towards the south.
Ecuador and Peru were distracted by the boundary dispute,
Chile by a presidential election. Argentina is enjoying a state
of siege, Paraguay forbids press comment on international
ents in the Swedish capital that, in the matter of Finnish
peace feelers, they will eschew all rumors and communicate
to their papers only official announcements.
affairs, Bolivia is proverbially lethargic. Brazil and Uruguay
Japanese Propaganda in Latin America
America has on the whole been limited and ineffectual, accord-
ing to an official survey. With the exception of Mexico,
there are practically no Japanese in the Caribbean countries,
and organized propaganda is negligible. In Mexico and the
1
Unlike Nazi propaganda, that of the Japanese in Latin
reacted very favorably.
Receiving favorable comment were the President's frankness in adversity, his confidence, his stand for the Church and
for world liberty, and above all the awesome production
figures. From Mexico, our own Ambassador hailed the
speech as perhaps the most powerful piece of propaganda yet
seen in that country.
11
10
GOVERNMENT
RESTRICTED
62
G-2/2657-220 No. 601 K.I.D., T.D. 11:00 A.M., January 15, 1942
SITUATION REPORT
I. Pacific Theater.
Philippines: Two determined enemy attacks in force, accompanied by artillery and aircraft. were repulsed with heavy Japanese
losses. Our losses were light. Corregidor was raided by nine heavy
bombers, two of which were shot down. Damage resulting from this raid
was slight and casualties few. Hawaii: No further reports of hostile
activity. Malaya: The ground situation is unchanged. The press re-
ports that Japanese planes have intensified their attacks over lower
Malaya. N.E.I.: There have been no further reports on the Japanese
landings in the Celebes and at Tarakan. According to the press, the
Japanese have made further bombing attacks near Amboina. West Coast:
No further reports of activity have been received.
II.
Eastern Theater.
Fighting continues on the northern and central fronts. There
is no change in the general situation. The Russians claim the capture
of Medyn (40 miles northwest of Kaluga).
III.
..estern Theater.
The press reports that the R.R.F. made raids last night on
Hamburg and on other objectives in Germany and in the occupied countries.
No results were announced.
IV.
'iddle Eastern Theater.
Ground: Situation unchanged.
Air:
Axis has increased aerial pressure on Halta.
RESTRICTED
63
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, January 16, 1942.
The Secretary of the Treasury, by this public notice, invites
tenders for $150,000,000, or thereabouts, of 91-day Treasury bills,
to be issued on a discount basis under competitive bidding. The
bills of this series will be dated January 21, 1942, and will
mature April 22, 1942, when the face amount will be payable without
interest. They will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and
Branches up to the closing hour, two o'clock p. m., Eastern Standard time, Monday, January 19, 1942. Tenders will not be received
at the Treasury Department, Washington. Each tender must be for
an even multiple of $1, 000, and the price offered must be expressed
on the basis of 100, with not more than three decimals, e. g.,
99.925. Fractions may not be used. It is urged that tenders be
made on the printed forms and forwarded in the special envelopes
which will be supplied by Federal Reserve Banks or Branehes on
application therefor.
Tenders will be received without deposit from incorporated
banks and trust companies and from responsible and recognized
dealers in investment securities. Tenders from others must be
accompanied by payment of 10 percent of the face amount of Treasury
bills applied for, unless the tenders are accompanied by an express
guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Secretary of the Treasury of the
amount and price range of accepted bids. Those submitting tenders
will be advised of the acceptance or rejection thereof. The
Secretary of the Treasury expressly reserves the right to accept
or reject any or all tenders, in whole or in part, and his action
in any such respect shall be final. Payment of accepted tenders
at the prices offered must be made or completed at the Federal
Reserve Bank in cash or other immediately available funds on
January 21, 1942.
29-63
64
****
-2-
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, shall not
have any exemption, as such, and loss from the sale or other disposition of Treasury bills shall not have any special treatment,
as such, under Federal tax Acts now or hereafter enacted. The
bills shall be subject to estate, inheritance, gift, or other
excise taxes, whether Federal or State, but shall be exempt from
all taxation now or hereafter imposed on the principal or interest
thereof by any State, or any of the possessions of the United
States, or by any local taxing authority. For purposes of taxation
the amount of discount at which Treasury bills are originally sold
by the United States shall be considered to be interest. Under
Sections 42 and 117 (a) (1) of the Internal Revenue Code, as amende
by Section 115 of the Revenue Act of 1941, the amount of discount
at which bills issued hereunder are sold shall not be considered to
accrue until such bills shall be sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital
assets. Accordingly, the owner of Treasury bills (other than life
insurance companies) issued hereunder need include in his income
tax return only the difference between the price paid for such
bills, whether on original issue or on subsequent purchase, and the
amount actually received either upon sale or redemption at maturity
during the taxable year for which the return is made, as ordinary
gain or loss.
Treasury Department Circular No. 418, as amended, and this
notice prescribe the terms of the Treasury bills and govern the
conditions of their issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.
-00o-
65
January 16, 1942
MEMORANDUM
For the Secretary's Diary:
Secretary Morgenthau telephoned from Florida this morning to suggest
that we prepare three or four radio programs designed specially for foreignborn groups in this country. He would like a group of Czech refugees to do
one of these programs, Polish refugees another, Yugoslavs another, and make
two-thirds of each of these programs in the language of the respective
countries. The programs would be addressed by the refugees to their people
in this country, telling them what is happening to their mothers or brothers
or friends in their old homeland. The message would be that we must set
these people free, and we can do it by buying Defense Bonds. The Secretary
suggested that Miss Hallie Flanagan, Dean of Women, Smith College, might be
useful in helping us prepare these programs.
I said that I likeathe idea if we could have transcriptions rather
than network programs. The recorded programs could be played in cities where
there are large foreign-born groups, such as Buffalo or Pittsburgh, whereas
they would be wasted if they were produced over the networks. The Secretary
agreed completely, and instructed me to proceed with the idea.
F. K. Jr.
g.
66
January 16, 1942
Dear Archie:
In Secretary Morgenthau's absence from Washington
I am writing to thank you for your letters of January 14th
addressed to him.
I know that the Secretary will be much interested in
the new procedure dealing with the publication of information
on procurement contracts. I have already told him something
of it, and I hope to discuss it with him in more detail after
his return.
Regarding the clearing of radio time, I shall tell our
information officers about the new arrangement, and I know
that they will be happy to cooperate with Mr. Lewis. I assume
that Mr. Lewis will communicate with our radio people as soon
as possible to work out the practical application of the new
policy as it may affect the Treasury.
Sincerely,
Ferdinand Kuhn, Jr.
Assistant to the Secretary.
Mr. Archibald MacLeish,
Director, Office of Facts and Figures,
Library of Congress,
Washington, D. C.
THE LIBRARIAN OF CONGRESS
67
WASHINGTON
January 14, 1942
Honorable Henry Morgenthau
Secretary of the Trensury
Washington, D. C.
My dear Mr. Secretary:
I have today received from Mr. Stewhen Early a communication
reading in part AS follows:
"The time her come when a central clearing point within the
Government should be created to give guidence to Government devartments and agencies and to the radio industry as a whole concerning
incuiries originating within the Government and received by the
Government from the broodcasting companies and stations and to
handle certain Government programs on the networks within the
United States.
"I may tell you therefore, by direction of the President,
that the Radio Division of the Office of Facts and Figures, headed
by
Villiam Levis, is designated to carry out this work under your
supervision.
of
"It is requested that you advise all departments and agencies
the Government, B.S well as the national networks and the Committee
on Defense Information of the National Association of Broadcasters,
that this assignment has been given to the Radio Division, OFF."
In accordance with this direction I have pleasure in informing
you that the services of Mr. Lewis and the facilities of OFF will be
available for the purposes indicated. Mr. Lewis will be happy to
clear requests for radio time, and to advise with respect to radio
programs should you wish to call upon him. It is suggested that
government information officers be informed of this arrangement and
assured that the services of Mr. Levis and staff are at their
disnosal in connection with any question relating to government
redio programs.
Faithfully yours,
Annochan
Archibeld MacLeish,
Director, Office of Facts and Figures
THE LIBRARIAN OF CONGRESS
68
WASHINGTON
January 14, 1942
CONFIDENTIAL
My dear Mr. Secretary:
A recent communication from the War Department sub-
mitted to the Committee on War Information raises the question of
the desirability of a uniform policy covering government publication of information bearing upon the letting of procurement contracts and similar matters. The Director of Censorship has indicated
his interest in the establishment of such a general policy in order
that government publications in this field may not conflict with the
self-censorship which press and radio have so willingly accepted
and so loyally practiced.
I am therefore sending you herewith a statement of the
action taken by the Committee on War Information upon the proposal
submitted by the War Department. From time to time the Committee on
War Information will doubtless reach similar policy conclusions covering other problems of this nature. Departments and agencies will, of
course, determine for themselves the application of these general
policies to specific proposed publications. If, however, an information officer is in doubt as to a particular proposed publication, the
Committee on War Information directs me to indicate that application
may be made to the Office of Facts and Figures which will undertake,
at the request of any information office, to do the following things:
(a) take up the question of the propriety of a proposed publication with any other agency or agencies having an interest in the
subject matter;
(b) attempt to devise forms or kinds of publication which will
satisfy as nearly as possible the needs of the country for information while avoiding publication of information of value to the enemy;
(c) submit to the Committee on War Information questions of unusual difficulty in which solutions by the methods provided above
appear to be impossible.
It is unnecessary to add, of course, that the proposed
procedure does not contemplate "clearance" of government publications
69
-2through the Office of Facts and Figures or through the Committee
on War Information. The action of the Committee on War Information is taken solely to provide a common policy, the need of which
is urgently felt, and to supply simple and informal procedures for
working out possible questions as to the propriety of publication.
It is felt by the Committee on War Information that these procedures
will be more effective and more useful if they are not made public
but are treated as confidential. The enclosure is, of course, not
confidential but will be released to the press.
Faithfully yours,
Qualiture
Archibald MacLeish
Chairman, Committee on War Information
Enclosure
The Honorable Henry Morgenthau
Secretary of the Treasury
Washington, D. C.
=
70
COMMITTEE ON WAR INFORMATION
Policy with regard to government publication
of information relating to the letting of procurement contracts and similar matters
In order that the policy controlling government publication of
information relating to the letting of procurement contracts and similar matters may be consistent with the policy established by the Di-
rector of Censorship for the advice of press and radio, the Committee
on War Information has adopted the following statement which has been
approved by the departments and agencies represented on the Committee,
1. The policy considerations which should control in all cases
of government publication of information during the war period are:
(a) Information helpful to the enomy should not be made public.
(b) Information helpful to our own people should be published
when publication is possible.
(c) In case of conflict between these two considerations every
attempt should be made to resolve the conflict not by arbitrary action in either direction but by employing forms of
publication, or kinds of publication, which will provide
information helpful to our own people without providing
information helpful to our enemies.
2. The publication of specific information relating to procurement
and production can be helpful to the enomy if the publication informs of
plans for the manufacture of woapons and other supplies of war, the lo-
cation of plants, the types and quantities of materials, the dates of
completion and similar data.
Publication of general information of this kind can, however,
be helpful to our own people in so far as it supplies the basis for indcpondont criticism of the war effort, stimulates production, and, in
general, informs the country about the progress of the productive offort
the country has been called upon to make.
Furthermore, publication of cortain information of this kind
is necessary to specific sections of the population, as, for example,
sub-contractors, suppliers of labor, common carriers, public utilitics,
and others called upon to make specific properations for, or to provide
specific services in connection with, procurement and production projects.
-2-
71
3. Information with regard to procurement and production should
therefore bo provided by government departments and agencios and bureaus
but subject to the following limitations:
(a) There should be no general publication of specific information as to contract awards, site locations of war industries
and military installations, estimated supplies of strategic
and critical materials available, specific production
schedulos and dotailod progress reports. The open display
of contract awards in public offices should be discontinuod.
(b) Where the construction of plants and installations, and
the placing of large contracts requiring additional labor
forces, are of such nature as to bocomo known in the
localitios where the work is done, information of a nondetailed charactor may be published by local nowspapers and
should bo released by government departmonts to interested
Mombors of Congress for local use. Details as to kind,
quantitios or dolivory date of armoments or munitions or
installations should not bo given. (The Director of Consorship has advised press and wire servicos that nation-wide
roundups of such locally released procurement data may give
material aid to the enomy, but that local publication of
the kind horo described is pormissible.)
(c) Such information regarding the letting of contracts, the
construction of factories and cantonments and the like, as
may be nocessary to the proper functioning of suppliers of
labor, materials, facilitios, and other servicos should be
furnished, for their official uso, to the appropriate ro-
gional officos of the United States Employment Services,
Army procurement, OPM, and othor designated agencios. Such
offices should, however, be cautioned against releasos of
procurement information to others than those duly identified
as having a bonn fido intorest and when such information
is so roleased to responsible persons they should be caution-
od against its publication.
(d) To provide ossential public information as to the progress
of the production effort as a wholo, the Office of Facts
and Figures, working with the advice and assistance of the
Buroau of Statistics and Research of OPM, the Division of
Statistical Standards of the Buroau of tho Budget, and other
designated agencios, which should continuo to receive on a
72
--
1
confidential basis all information and data regarding procuremont and production, will deviso forms of publication
which, without releasing information of importance to the
enery, would onable the country as a whole to know from
time to timo whether or not it had not the requirements of
the production program; togother with other forms of publication which would enable particular localities, and
factories, etc. to ascertain whether they had not or failed
to meet or had surpassed their quotas of production. Bofore release those forms of "Production Communiques" should
be cleared through a subconsittee of the Committoo on War
Information, composed of representativos of the War Department, the Navy Department, and the Office of Facts and
Figures.
All departments, agencies, officials and omployees of the
administrativo branch of the government are requested to cooporate in
carrying out the above policies. It is hoped that mombors of the
logislative and judicial branches will also adopt similar principlos
in order to prevent valuable information from roaching the onomy.
73
For your information
January 16, 1942
To
Archibald MacLeish
From Alan Barth
EDITORIAL OPINION
ON THE WAR:
PREPARING TO FIGHT
Contradiction
The press reveals an interesting contrast these days
between its news pages and its editorial pages. Editors are
busily warning readers to beware of headline writers.
The commentators, suddenly, have become propaganda-
conscious. The Scripps-Howard papers head an editorial
"Don't Underrate The Enemy," and praise the counsel recently
offered by Donald Nelson, Senator Connally and Secretary Knox
to discount stories of German losses. Anne O'Hare McCormick,
in The New York Times, remarks: "Regardless of the truth or
falsehood of reports of trouble in Germany, it cannot be
repeated too often that they should be received with the
utmost caution." Many other newspapers echo this theme, urg-
ing the public to be on guard against overconfidence or the
expectation of an easy victory.
-2-
74
But the cable editors apparently do not read these inside
pages. They continue to treat each successful American bomb-
ing raid as an important victory. They are now giving increased
prominence to the news of Russian advances on the eastern front,
and they go right on brightening the news columns with the dubious tales of diminished German morale.
The editorial writers themselves, moreover, exhibit a tendency to recite the resources of the United States as reassuring
evidence that the Axis is inexorably doomed. They marshal
President Roosevelt's figures of planes and tanks and ships to
be produced in 1943 to prove conclusively on paper that the
United Nations are invincible. Confidence, despite the setbacks
in the Far East, is at a high level; it may be on the borderline
of complacency.
Getting Down To Business
The appointment of Donald Nelson to a post commonly referred
to in headlines as "War Production Czar" answered a demand ex-
pressed by newspapers in every section of the country. Concen-
tration of authority has been generally regarded as a prerequisite
to meeting the production quotas set by the President in his
message on the state of the Union.
-3-
75
While a variety of candidates, including Wendell Willkie,
had been advocated by different newspapers, the press united
in endorsement of the President's action. Perhaps the most
lyrical note of appreciation was sounded by New York's PM.
"With a stroke of his pen," observed Ralph Ingersoll,
"President Roosevelt wrote off from the Nazi balance sheet
whole industries in Europe. No bombing mission from England
was ever as destructive to Hitler's ambition to out-produce us."
The Nelson appointment, together with the creation of a War
Labor Board, restrictions on the sale of tires and automobiles
and Mr. Roosevelt's firm attitude on farm prices, has greatly
bolstered the editorial hope that the Administration is preparing to get down to the business of waging war in earnest.
Establishment of the War Labor Board also answered a wide-
spread editorial demand; although there was some carping at the
failure to eliminate the closed shop issue from its deliberations,
commentators in general expressed satisfaction with its functions
and its personnel. Increased and stiffened rationing is advocated
by a considerable number of newspapers; some of them, indeed, have
taken to extolling the virtues of the simple life to be induced by
cuts in civilian consumption. According to The Chicago Times,
"It's going to be good for us." Most of the press wants the
-4-
76
Government to take a tough attitude on rationing and prices.
Judging from a recent Gallup poll, the public feels the same
way; 78 percent answered "yes" to the question, "In time of
war, should the Government have the right to tell factory
owners and businessmen what products they can make and what
prices they can charge?"
This insistence on mobilizing our domestic resources
appears to reflect a deep-seated and genuine editorial convic-
tion that assembly lines are now America's front lines in the
war. The conviction embraces an awareness of the war's planetary
scope. It finds expression also in an angry impatience with the
Government's failure to build up adequate stock piles of strate-
gic materials and with industry's failure to convert its facilities
more rapidly into war production.
The concept of the United States as "the arsenal of democracy"
seems to be in the process of translation from theory to reality.
The press is now preparing for a long war, a hard war and a world
war.
Revival
A guidepost as to the form in which isolationism may be
reborn, in marked contrast to the global thinking of most commen-
tators, is to be found in an editorial by the New York Daily News
Syndicate. Declaring that loss of the Philippines appears to be
-5-
77
"only a question of time" and suggesting that Singapore is likely
to fall to the Japanese as well, the Dutch East Indies following
as a matter of course, The News urges that American strength be
concentrated on Hawaii. "If we don't hold Hawaii," this gloomy
prophecy continues, "one guess is as good as another what will
happen to us. Our guess is that Jap bomber raids or battleship
raids or both will take to harrying our West Coast shortly after
Hawaii goes down, and that we will then be on a bad spot indeed.
The defense of Hawaii -- implacable, last-ditch defense
kept supplied remorselessly from the mainland -- is, we believe,
war job No. 1 for the American people."
This sort of concentration on our narrow parochial defenses
appears to be emerging as the new isolationist "line".
78
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE January 16, 1942
TO
Ferdinand Kuhn, Jr.
FROM Joseph Melia
EDITORIAL COMMENT
ON TAX PROBLEMS:
BATTLE LINES FORM
Editorial discussion of wartime taxes centers on the need for
A measure that will quickly raise an unprecedented amount of revenue
and at the same time act as a brake on inflation. Most editorial
writers insist that these two goals must subordinate "ability to
pay" as the basic principle of the new program, and accordingly
strongly favor a general sales tax. They argue in all seriousness
that 8 sales tax is the only remaining major source of revenue,
since income taxes and excise levies have just about reached the
point of diminishing returns.
Even liberal newspapers like the New York Post and Chicago
Sun are willing to accept a sales tax if necessary. But these
newspapers make a point ignored by the majority of the press
--
that along with deflationary, "spread-the-burden" taxes, drastic
steps must be taken to recapture war profits.
Leading labor publications, with the exception of the Railroad
Brotherhoods' organ, have not as yet commented editorially on the
-2 -
79
impending tax program, although they are traditional and vigorous
opponents of withholding taxes and sales taxes. They give promi-
nent display in both their news and editorial columns to disclosures
of large war profits.
Deflation Taxes
The proponents of a general sales tax claim that such a levy
would largely solve the problem of financing the war, meeting
perhaps two-thirds of the proposed 7 billion dollar increase in
the tax bill. Many also maintain that such a measure would be
relatively "painless" and the most "fair" way of distributing the
tax burden. The argument that a sales levy is a tax on the poor
man's table is met with the rebuttal that the necessities of life
food, clothing, and medicine -- should be exempted.
A large number of the same newspapers that suggest a sales
tax as a deflationary measure and a quick, steady source of income
are opposed, however, to either a withholding tax or enforced savings.
The Philadelphia Inquirer sums up the prevailing sentiment in arguing
for a sales levy and against a withholding tax: "The comprehensive
sales tax possesses many advantages both for the government and the
taxpayers. It brings in the money and it distributes the tax load
in the fairest manner possible. A government check-off or withholding tax at the source makes no allowance for the individual's
-3-
80
special circumstances. It takes steady toll in the same amount
each week or month from his wages
But if a considerable part
of his contribution is to be made in sales taxes, he can adjust his
spending."
A recent Gallup poll indicates that the man on the street is
still far from advocating a sales tax as wholeheartedly as his
editors and publishers. According to this survey, 47 percent of
the people favor a sales tax, 46 percent disapprove, and 7 percent
are undecided. Last January, the score was 42 percent for, 49
percent against, and 9 percent with no opinion.
Progressive Taxes
Most of the conservative press fears that to increase private
or corporate income taxes would kill the goose that lays the golden
eggs and would lead to economic and social disruption. It is main-
tained that the middle class already is supporting a disproportionate
share of the tax load; to add to corporate taxes might so "stifle"
the profit motive and private enterprise that production would suffer.
"May not the government in its eagerness to tax corporate
business -- which is tantamount to reducing the wages of management
and capital -- risk the danger of destroying the zest for industrial
expansion ?" asks the Boston Herald, while the Chicago News argues:
"The social convulsions Europe underwent after the last war were
striking evidence of the unwisdom of piling an unbearable burden in
taxes and inflation on the middle classes
"
-4-
81
Opposed to the sentiment expressed by these two newspapers
and the conservative press as a whole, the liberal press insists
that personal and corporate income taxes must be drastically
increased. The Chicago Sun proposes that all personal income
above a minimum amount necessary for the essentials of life should
be taken by taxation, and the New York Post states: "Excess
profits will have to be lifted; we can hardly continue a rate
that runs about half that of England'
Those who oppose a
fair increase in excess profits taxes must ask themselves whether
they are defending the profit system or defending temporary profits."
82
TREASURY DEPARTMENT
INTER-OFFICE COMMUNICATION
DATE
JAN 1 6 1942
Secretary Morgenthau
TO
FROM
E. H. Foley, Jr.
Re: Final Report on status of the Treasury
Department's Legislative Program at
the End of first session of 77th Congress.
I attach herewith in tabular form a final report on the
status of Treasury-sponsored legislation at the end of the first
session of the 77th Congress. This report is as of the date of
adjournment on January 2, 1942. Though some extremely important
Treasury legislation was enacted during the past session, the
total number of our bills enacted was not quite as large as the
total enacted during some of the sessions of Congress since the
establishment of the Legislative Section in the summer of 1934,
and the centralization in it (with some exceptions) of Treasury
legislative activities. This is attributable to the fact that
both Houses of Congress and the committees thereof have concen-
trated on national defense and war legislation during the past
session, and have for the most part been disinclined to consider
desirable but non-essential legislation not directly related
to the defense or war program. With the recent active entrance
of the United States into the war this Congressional attitude
83
-2-
will, I believe, be even more pronounced during the new session.
The following summary shows the record of this office:
Number of Treasury
Session Year
sponsored bills
enacted
Number of Treasury-sponsored
bills actively pending at
the end of Congress which
failed of enactment.
1941
20
1940
23
1939
27
1938
13
11
1937
22
10
1936
21
1935
19
22
8
4
8
12
Notable among the important Treasury legislation enacted dur-
ing the last session was the Public Debt Act of 1941, increasing
the debt limit of the United States to $65,000,000,000, providing
for the federal taxation of future issues of obligations to the
United States and its instrumentalities, and providing for the
issue and sale of United States Defense Savings bonds and stamps.
The Congress at our recommendation again extended (till 1943)
the time within which the powers relating to the stabilization fund
and alteration of the weight of the dollar may be exercised.
-3-
84
An important, but little publicized, Treasury bill enacted
into law was the one authorizing the Treasurer of the United States
to make settlement with payees of lost or stolen checks, which
have been paid on forged endorsements, in advance of reclamation.
This legislation relieved the inequitable condition arising when
the payee or a special endorsee of a check drawn on the Treasurer
of the United States, which has been improperly negotiated through
no fault of the payee or special endorsee and paid upon a forgery
of his endorsement, is deprived of the amount due him until such
indeterminate inture time as recovery has been effected from the
forger or of the bank or of the party cashing the check by setting
up a small revolving fund of $50,000 out of which payment may be
made in advance of reclamation.
Due to the nation's increasing demand for minor coins,
Treasury legislation was enacted to increase from $600,000 to
$1,000,000 the so-called minor coinage metal fund, a revolving
fund which is available for the purchase of metal (nickel, copper,
tin, and zinc), as needed, for the manufacture of minor ooins
of the United States.
One of the most important bills enacted during this session
is the Lease-Lend Bill on March 11, 1941. Although in a literal
sense this is not a Treasury sponsored bill, this office prepared
the original draft of the bill, committee reports thereon for
86
-4-
the Senate Committee on Foreign Relations and the House Committee
on Foreign Affairs, numerous short speeches and several lengthy
speeches which were made in support thereof, and memoranda on many
questions of law involved.
Another major bill enacted was the War Powers Bill of
December 18, 1941, which conferred upon the President authority
to put the Government of the United States on an immediate war
footing. This office participated actively in the drafting and
handling of this bill. Of particular importance to the Treasury
is that part of it which deals with the Trading with the Enemy
Act, under which the existing system of foreign property control
(commonly known as freezing control) is based. There was added to
the existing freezing control, in substance, the powers contained
in the Trading with the Enemy Act with respect to alien property,
extending those powers, and adding a flexibility of control, which
experience under the original act and the recent experience under
freezing control have demonstrated to be advisable. This office
presented and explained the bill to the House Judiciary Committee,
did a major part of the work on both the House and Senate Committee
reports, and assisted the Chairmen and members of the Judiciary
Committees in the debates on the floor.
-5-
87
Although the legislation relating to foreign accounts in
Federal Reserve Banks and insured banks was prepared by the
Board of Governors of the Federal Reserve System, the Legislative
Section did a great deal of work on the subject matter.
Our bill to amend the Strategic and Critical Materials Act
of June 7, 1939, to provide that the proceeds of any sales or
other dispositions of strategic or critical materials, acquired
and held by the Procurement Division of the Treasury Department
under the authority of that act, shall be deposited to the credit
of the appropriation made by Congress for the purpose of acquir-
ing strategic and critical materials under that act and will thus
be available to the Procurement Division for further purchases of
such materials under the terms of the act instead of going into
miscellaneous receipts of the Treasury as would be the case under
existing law, was enacted by Congress during this session.
Although the Coast Guard was transferred to the Navy Department on November 1, 1941, a number of important Coast Guard bills
prepared and sponsored by the Treasury Department were enacted.
These included the bill providing for the establishment, administration, and maintenance of a Coast Guard Auxiliary and a Coast
Guard Reserve, which bill was enacted after hearings before the
House Committee on Merchant Marine and Fisheries. Another Coast
-6-
88
Guard bill enacted auring this session made a large number of
miscellaneous amendments in existing Coast Guard laws in the
interest of clarification and better administration. This legislation includes provisions: for exchanging rights of way at Coast
Guard Stations; authorizing the Secretary of the Treasury to
negotiate contracts on behalf of the Coast Guard with respect to
vessels and aircraft; clarifying the status of the Coast Guard
as a military service constituting a part of the land and naval
forces; amending existing laws with respect to financing the
expenses of the Coast Guard when operating as a part of the Navy
in time of war or when the President so directs; etc. A bill
was also enacted authorizing the Secretary of the Treasury to
purchase or accept as gifts motorboats, yachts, and similar
vessels for Coast Guard-use. (It was provided therein, however,
that should the Coast Guard operate as a part of the Navy, the
authority conferred by this act upon the Secretary of the Treasury
shall vest in, and be exercised by, the Secretary of the Navy).
Moreover, three bills were enacted to vest control of land in the
Secretary of the Treasury, and authorizing the Secretary to exchange certain lands, for Coast Guard purposes.
Of the twenty-two Treasury bills still pending in Congress,
seven have passed one house. Since the recent adjournment marked
-7-
89
the end of a session and not the end of a Congress, these will
retain the same status in the next session which they had
achieved in this.
We also, of course, did a great deal of work on many other
pieces of legislation, notably on various defense measures of
1941; the so-called Attorneys Bill, which amonds existing law
to further restrict the Government practice of former Government
attorneys; the Administrative Procedure Bills; the Defense High-
way Bills; non-essential expenditure appropriation bills, etc.
None of these bills, however, strictly speaking, could be described as a Treasury bill.
Aside from the foregoing, the Legislative Section handled
a total of 481 Treasury reports on legislation during the past
session. Of this number, 297 were reports to committees of
Congress, 111 were reports to the Bureau of the Budget on pending
or proposed legislation, and 73 were reports to the Bureau of the
Budget on enrolled bills to assist the President in determining
whether or not to approve these bills.
The Legislative Section transacted legislative business
with the legislative counsel of both the House and Senate, and
worked with, and appeared before, virtually all the major and many
minor committees of both Houses of Congress, during the first
session of the 77th Congress. In addition, it drafted or as-
-8-
90
sisted in drafting, much legislation not covered by this report,
such as bills which are still in process, bills which have been
submitted to, but not yet cleared by, the Bureau of the Budget,
bills which were completed but which, for one reason or another,
the appropriate administrative officers decided not to submit to
Congress at this time, bills prepared as a courtesy accommodation
to members of Congress, etc. The Legislative Section also
opposed legislation objectionable to the Treasury Department and
drafted, or participated in drafting, a considerable number of
Executive Orders and Proclamations. In addition, this Section
did a large amount of research work on legislative and other
problems of interest to the Department, and generally endeavored
to keep the various bureaus and branches of the Department advised
about all phases of legislative matters in which they were
interested.
The National Defense Program during the first session of
this Congress and the accelerated legislative activity in connection therewith resulted in a considerable increase in the
Legislative Section's work in order to keep the many interested
Treasury offices advised about the progress of, and other mat-
ters of interest to them in connection with, defense legislation.
S.N. 7L
FINAL PROGRESS REPORT ON TREASURY LEGISLATION
DURING THE FIRST SESSION OF THE 77th CONGRESS
A. TREASURY SPONSORED BILLS ENACTED DURING
THE FIRST SESSION OF THE 77th CONGRESS (1941)
PUBLIC OR
BILLS
1. H.R. 2959
Public Debt Legislation
BRIEF EXPLANATION
Increases the debt limit of the United
States, provides for Federal taxation
of future issues of the United States
and its instrumentalities, and authorizes
APPROVED
PRIVATE NUMBER
Feb. 19,1941
Public No. 7
Provides for the establishment, administration, and maintenance of a Coast Guard
Auxiliary and a Coast Guard Reserve.
Feb. 19,1941
Public No. 8
Empowers the President, notwithstanding
any other law, when the President deems it
March 11,1941
Public No. 11
Defense Savings Bonds and Stamps.
2. S. 187 (H.R. 562)
Coast Guard Auxiliary and
Reserve
3. H.R. 1776
Lend-Lease Act
in the interest of national defense, to
authorize the heads of any Government department or agency (1) to manufacture or
procure any defense articles, which are defined therein, for any country whose defense
he deems vital to ours; (2) to sell, transfer
title to, exchange, lease, lend, or otherwise
dispose of such defense articles to such govern-
ments (with limitations); (3) to outfit, inspect, repair, etc., the defense article of
any nation whom we aid under the Act: (4) to
communicate any defense information to or for
the benefit of those nations; and (5) to re-
lease for export any defense article disposed
of under the Act to any such government.
Authorizes the Secretaries of War and Navy to
acquire arms, ammunition, and implements of war
produced in such countries whenever the President
deems such acquisition necessary to the national
defense. Authorizes necessary appropriations.
A. Treasury sponsored bills enacted
during the First Sension of the
77th Congress (1941) - (continued)
BILLS
S. 390 (H.R. 4216)*
Foreign accounts in
BRIEF EXPLANATION
APPROVED
PUBLIC OR
PRIVATE NUMBER
Regulates the handling of foreign accounts
April 7,1941
Public No. 31
Carries to the surplus fund of the Treasury
certain trust funds derived from compensating taxes collected under the Act of May 12,
1933, 48 Stat. 40, upon certain articles
coming into the United States
May 9. 1941
Public No. 62
Provides for the reimbursement of appropriations in cases where sales or transfers of
May 28,1941
Public No. 76
June 12,1941
Public No. 110
8. H.R. 4132
Authorizes the purchase of metals for minor
Metals for minor coins coins of the United States not to exceed
$1,000,000 (instead of $600,000).
June 21,1941
Public No. 117
9. H.R. 4646 (S. 1540)
Stabilization Fund
Continues powers relating to the Stabilization Fund, devaluation of the dollar, and
purchase of silver.
June 30,1941
Public No. 142
10. H.R. 531
Authorizes the Secretary of the Treasury to
July 9. 1941
exchange the existing Coast Guard site located
Public No. 159
4.
Federal Reserve Banks
and insured banks
5. H.R. 4239 (S. 960)
Compensating taxes
trust fund
6. S. 994
Strategic and critical materials
in Federal Reserve Banks and insured banks.
strategic or critical materials would result
from action by the President, pursuant to the
Act of June 7, 1939, 53 Stat. 812, thus making
revolving funds out of such appropriations.
7. S. J. Res. 74
(H.J. Res. 184)
Finnish Debt
Coast Guard Sites at
Miami Beach
Authorizes the postponement of payment of
amounts payable to the United States by the
Republic of Finland on its indebtedness.
at Ft. Lauderdale, Florida, for another site
determined suitable for Coast Guard purposes.
Although this bill originated in the Federal Reserve, it is included because the Legislative Section
of the Treasury Department did a great deal of work on the subject matter,
3
A. Treasury sponsored bills enacted
during the First Session of the
77th Congress (1941) - (continued)
PUBLIC OR
BILLS
11. H.R. 4903 (S. 1601)
Coast Guard Site at
Au Sable, Michigan.
12. H.R. 4658 (S. 1477)
Omnibus Coast Guard Act
BRIEF EXPLANATION
Authorizes the Secretary of the
Treasury to exchange certain land owned
APPROVED
PRIVATE NUMBER
July 9,1941
Public No. 162
July 11,1941
Public No. 166
by the United States for a site for a
road right-of-way needed for access to
the Coast Guard Lighthouse Station
Reservation, Au Sable, Michigan.
Makes a large number of miscellaneous
amendments of existing Coast Guard laws
in the interest of clarification and
better administration, The bill includes
provisions: for exchanging rights-of-way
at Coast Guard stations; extending authority
to utilise collections of the value of repairs
and replacements of aids to navigation damaged
by private persons to all Coast Guard property;
authorising the Secretary of the Treasury to
negotiate contracts on behalf of the Coast
Guard with respect to vessels and aircraft; vesting in the Secretary of the Treasury authority
to waive the legal requirement of performance
and payment bonds in certain classes of Coast
Guard contracts: clarifying the status of the
Coast Guard as a military service constituting
a part of the land and naval forces; amending
existing law with respect to financing the
expenses of the Coast Guard when operating as
a part of the Navy in time of war or when the
President otherwise so directs: extending the
law-enforcement jurisdiction of the Coast Guard;
clarifying and extending existing law with respect
to enlistments and retentions in the service:
effecting certain clarifying amendments to the
Coast Guard Auxiliary and Reserve Act of 1941; etc.
A.
Treasury sponsored bills enacted
during the First Session of the
77th Congress (1941) - (continued)
PUBLIC OR
BRIEF EXPLANATION
BILLS
Authorizes the construction of 13 Coast
Guard cutters, including 3 specially
APPROVED
PRIVATE NUMBER
July 15,1941
Public No. 178
Oct. 30,1941
Public No. 288
Nov. 21,1941
Public No. 310
dorsements
Authorises the Treasurer of the United
States to make settlement with payees
of lost or stolen checks, which have
been paid on forged endorsements, in
S. 1826 (H.R. 5537):
Permits seeing-eye dogs, when accompan-
Dec. 10,1941
Public No. 330
13. H.R. 4867
Coast Guard Cutters
designed for ice breaking in arttic
regions.
14. H.R. 5903*
U.S. Housing Act
amendment
Authorizes the U.S. Housing Authority
to issue obligations in the amount of
$800,000,000, exclusive of obligations
issued for refunding purposes, such
obligations to be prescribed by the
Authority with the approval of the
Secretary of the Treasury.
15. H.R. 5079
Lost or stolen checks
paid on forged en-
16.
(H.R. 5459)
Seeing-Eye Dogs
advance of reclamation.
ied by their blind masters, to enter
any Government building. This bill was
drafted and handled by us as a result of
a request from Mrs. Roosevelt to the
Secretary.
The final draft of this bill, now Public Law No. 288, was prepared in the Legislative Section of the
Treasury Department.
*
A.
Treasury snonsored bills enacted
during the First Session of the
77th Congress (1941) - (continued)
BILLS
17. H.J.Res. 221 (S. 1794)
Coast Guard at Marquette,
Michigan.
18. H.R. 5509 (S. 1827)
Motorboats and Yachts for
Coast Guard
19. H.R. 6233 (H.R. 6205)
(s. 2129) (s. 2118)
First War Powers Bill,
Freezing and Alien Property Control
20.
H.R. 4499 (S. 1405)
Negotiated Contracts
Bill
BRIEF EXPLANATION
APPROVED
PUBLIC OR
PRIVATE NUMBER
Dec. 16,1941
Declares abandoned the title of the
City of Marquette, Michigan, to certain
land, and vests control in the Secretary
of the Treasury for Coast Guard purposes.
Public No. 342
Authorizes the Secretary of the Treasury Dec. 16,1941
to purchase or accept as gifts motorboats, yachts, and similar vessels for
Public No. 349
Coast Guard use.
Confers upon the President authority to
put the Government of the United States
Dec. 18,1941
Public No. 354
Dec. 18,1941
Public No. 354
(Title III)
on an immediate war footing. Title III
of the Act, among other things, amends
and extends section 5(b) of the Trading
with the Enemy Act, on which the present
system of foreign property control (commonly known as freezing control) is based,
to meet the present war-time conditions.
Authorizes the heads of various departments and agencies of the United States
to negotiate national defense contracts
without advertising or competitive bidding. authorizes the President to give
priority to deliveries under such contracts, and requires a report on contracts
to be made to Congress. This legislation
after being stalled for a long time in the
House Judiciary Committee which had not
handled and did not have the background to
give expedite consideration to this type of
national defense legislation was finally
enacted in even broader form in Title II of
the First War Powers Act, 1941.
(Title II)
B.
TREASURY SPONSORED
PENDING IN CONGRESS AT THE END OF
THE FIRST SESSION OF THE 77th
CONGRESS (January 2, 1942).
BRIEF EXPLANATION
BILLS
1. S. 1045
(S. 959)
Government Life
Insurance Fund.
Provides that the National Life
STATUS AT END
OF FIRST SESSION
Passed Senate May 1,
REMARKS
We expect to get enactment of this
Insurance Fund and the U. S.
1941; referred to
Government Life Insurance Fund,
Ways and Means Com-
together with all money accruing
to these funds shall be deposited
in the Treasury of the United States,
and shall be available for disbursement
to meet expenditures and make invest-
Union Calendar No.
House crowded it
433.
out this session.
Passed Senate June 30,
This bill will
1941; pending before
probably be enacted
during the next
mittee, and reported
on Oct. 14, 1941;
bill at the next
session. The busy
calendar of the
ments authorized to be made from such
funds.
2. S. 1602
Annual Report of
the Comptroller
of the Currency
3. H.R. 1409
Treasury Guards,
Increase in
Salary
Places the Annual Report of the Comp-
troller of the Currency on a calendaryear basis rather than on an October-
House Committee on
to-October basis.
Banking and Currency.
session.
Designates building guards employed
Passed House, July 7.
The Treasury Depart-
1941; pending before
ment recommended exten-
of the Federal Works Agency as U. S.
Senate Committee on
in buildings under the jurisdiction
Building Police, and fixes the annual
salaries of such police.
Public Buildings and
Grounds.
sion of the provisions
of this bill to members
of the Guard forces of
the Treasury Department
in the District of
Columbia, which recom-
mendation is being informally handled as an
amendment to the bill.
Although our proposed
amendment did not pass
the House, we are op-
timistic that if this
bill is enacted. it will
be included.
B. Treasury sponsored bills actively
pending in Congress at the end of
the First Session of the 77th
Congress (Jamiary 2, 1942) - (continued)
BILLS
4. H.R. 5280
(S. 1742)
Relief of G. F.
Allen
BRIEF EXPLANATION
Authorizes and directs the Comp-
troller General to allow credit
for the sum of $4,923.50 in the
account of G. F. Allen, Chief
Disbursing Officer, Treasury Department, and the sum of $26.39
in the account of Cecil M. P. Cross.
STATUS AT END
OF FIRST SESSION
Passed House. Oct.6.
1941; pending before
Senate Committee on
REMARKS
This bill undoubtedly
will be enacted next
session.
Claims.
former special disbursing agent,
Treasury Department, and the sum of
$2.70 in the account of Will S. Wood,
former special disbursing agent,
Bureau of Narcotics.
5. H.R. 5291
Relief of Helen
and Max Rauch
Provides that the sum of $2,132.20 be
paid to Helen Rauch and $500 to Max
Rauch in satisfaction of their claims
against the United States for judgments obtained against the Director
General of Railroads as a result of
personal injuries sustained on May 11,
1919. This is the case in which, after
consideration by us of further evidence,
the Treasury reversed itself and recommended enactment of this bill which was
vetoed in 1938 on the Treasury's recommendation.
Passed House, Oct.6.
1941; pending before
Senate Committee on
Claims.
This bill has an
excellent chance of
passage next session.
B. Treasury sponsored bills actively
pending in Congress at the end of
the First Session of the 77th
Congress (January 2. 1942) - (continued)
BRIEF EXPLANATION
BILLS
6.
H.R. 1793
Mailing of firearms
Authorizes the mailing of small fire-
arms to officers and employees of the
enforcement agencies of the United
States.
STATUS AT END
OF FIRST SESSION
Passed House, Oct.6,
1941; pending before
Senate Committee on
Post Offices and
REMARKS
This bill has a very
good chance of en-
actment next session.
Post Roads.
7. H.R. 5895
(S. 2021)
Library of
Congress Trust
Fund Board. Allocation of Income.
8. H.R. 2599: s.490
Additional Coinage Mint
Authorizes the Library of Congress
Trust Fund Board to allocate one-
Passed House, Nov.3.
This bill was not
submitted to Congress
half of the income from certain property to the Smithsonian Institution.
The Secretary of the Treasury is
1941: pending before
Senate Committee on
the Library.
until Oct. 22, 1941,
and no doubt will be
Authorizes the Federal Works Admin-
chairman of this Board.
enacted next session.
istrator to establish an additional
Bills pending before
This legislation has a
House Committee on
coinage mint for the United States
Coinage, Weights &
Measures, and Senate
Committee on Banking
and Currency.
due to the fact that
in the central section of the United
States.
slim chance of passage
so many members of
Congress would like to
have the new mint in
their districts or are
afraid the establish-
ment of a new mint will
reduce employment in
present mints located
in their districts.
-9
3.
BILLS
9. H.R. 4934: S.1799
Conspiracy Counter-
feiting Bill
99
Treasury sponsored bills actively
pending in Congress at the end of
the First Session of the 77th
Congress (January 2, 1942) - (continued)
BRIEF EXPLANATION
Amends the laws relating to coun-
terfeiting of currency, stamps,
etc., by providing conspirators
shall be subject to the punishment
applicable to convictions for substantive violations of such laws.
In other words. it will make the
STATUS AT END
OF FIRST SESSION
Bills pending befor House and
Senate Committees
on the Judiciary.
REMARKS
We hope to secure
enactment of this
bill during the second session of the
77th Congress.
same penalties applicable to the
chiefs of counterfeiting syndicates
as now apply to their leg-men.
10. H.R. 5857: S.2023
Relief of Roy F.
Lassly and G. F.
Allen
Authorizes and directs the Comp-
troller General to allow credit
for the sum of $7,533.50 in the
account of Roy F. Lassly, former
Acting Chief Disbursing Clerk,
Department of the Interior, and
the sum of $20,012.20 in the accounts of G. F. Allen, Chief Dis-
Bills pending before Submitted to Congress
House and Senate Com- too late in the First
Session to receive
mittees on Claims.
consideration.
bursing Officer, Division of Disbursements, Treasury Department,
on account of amounts which were
paid by them on fraudulent vouchers.
11. H.R. 6089: s.2075
Travel Expenses of
Treasury Employees
Serving Abroad
Authorizes payment of traveling
Bills pending before
This bill was not sub-
Civil Service and
until Nov. 24, 1941,
expenses of families of officers
House Committee on
ment going to or returning from
foreign posts of duty.
Senate Committee on
Finance.
and employees of Treasury Depart-
mitted to Congress
too late to receive
consideration in the
First Session.
B. Treasury sponsored bills actively
pending in Congress at the end of
the First Session of the 77th
Congress (January 2, 1942) - (continued)
BILLS
12. H.R. 107
Customs Leases
Abroad
BRIEF EXPLANATION
Authorizes the Secretary of the
Treasury or any of his authorized
representatives to lease build-
ings, parts of buildings, and
grounds in foreign countries for
STATUS AT END
OF FIRST SESSION
Bill pending before
House Committee on
Public Guildings &
Grounds.
periods not to exceed 10 years.
13. H.R. 1834
Enforcement Of-
ficers' Death
and Disability
Benefits
Authorizes an increase in the
death and disability compensation
payable to Federal enforcement
officers and their dependents
when such officers are killed or
REMARKS
This bill has a
slight chance of
passage during the
continuance of the
present war, due to
the world-wide
character of the war.
Bill pending before
House Committee on
the Judiciary.
This bill probably
will not be enacted
during the present
emergency, due to the
prevailing economy
sentiment on the Hill
with respect to matters
not related to national
disabled while engaged in hazardous
work.
defense.
14. S. 649
Customs Facilities
at International
Toll Bridges
Requires International Toll
Bridges (i.e., along Mexican and
Canadian borders) to furnish free
inspectional facilities for
Customs and other Federal officers
necessarily stationed there.
Bill pending before
Senate Finance Com-
mittee.
This bill has a very
slight chance of passage as it has received a great deal of
opposition from toll
bridge owners and oper-
ators, and relatively
little expense to the
Government is involved
($50,000).
103
11
B. Treasury sponsored bills actively
pending in Congress at the end of
the First Session of the 77th
Congress (January 2, 1942) - (continued)
BILL
15. H.R. 4768
Customs Overtime
Compensation
BRIEF EXPLANATION
Authorizes regular tours of duty
for customs officers and employees,
at night, and on Sundays and holidays, without extra compensation,
and generally clarifies customs
STATUS AT END
OF FIRST SESSION
Bill pending before
Ways and Means Com-
mittee.
REMARKS
Although there will
be a fight on this
bill, it has a chance
of passage during
the Second Session.
lawe relating to services of cus-
toms employees at night, and on
Sundays and holidays, permitting
assignment of customs employees to
perform overtime services, and the
payment of extra compensation for
such services.
16. S. 1603
Banking facilities
at military posts
Provides for the extension of
national banking facilities at
military reservations. and at Navy
Bill pending before
Senate Committee on
Banking and Currency.
Yards and Navy Stations. upon
Transfers the jurisdiction over
District of Columbia District of Columbia Credit Unions
to the Farm Credit Administration
Credit Unions.
military reservations
etc., this bill has
an excellent chance
of passage next session.
authorization of the Comptroller
of the Currency and the Secretary
of War or the Secretary of the Navy.
17. H.R. 5080
Due to the increase
in the number of
House Committee on
This bill has been
introduced in three
Columbia.
Congresses, and has
Bill pending before
the District of
or four different
been stalled each
time by opposition
of the District of
Columbia Credit
Unions.
12 -
102
B. Treasury sponsored bills actively
pending in Congress at the end of
the First Session of the 77th
Congress (January 2, 1942) - (continued)
BILLS
18. S. 1671
Power to pledge
assets of national
banks
BRIEF EXPLANATION
Authorizes national banks to
pledge assets to secure deposits
STATUS AT END
OF FIRST SESSION
Bill pending before
REMARKS
This bill has a
Senate Committee on
Banking and Currency.
very good chance of
Relieves the Treasury Department
Bill pending before
We did not expect
Senate Committee on
this bill to be en-
ity of making a judicial determin-
the Judiciary.
acted this session.
but it has a chance
for favorable action
next session. The
Acting Comptroller
of states and political subdivisions thereof in those states
having statutes permitting this
passage during the
Second Session of
the 77th Congress.
practice.
19. S. 1839
Orderly payment of
conflicting claims
against the United
States
from the necessity and responsibilation whenever a creditor or other
claimant against a claimant against
the United States requests that
the Treasury Department withhold
payment from the original claimant,
and relieves original claimants
from the necessity of having to
travel to the District of Columbia
to defend actions commenced there
to reach amounts payable to them
by the United States, while at the
same time protecting the rights of
creditors of such claimants.
General and the Attorney General have
approved the objec-
tives of this bill.
B. Treasury sponsored bills actively
pending in Congress at the end of
the First Session of the 77th
Congress (January 2, 1942 - (continued)
BILLS
20. H.R. 5882
Unexpended and obli-
gated balances of
certain emergency
relief appropria-
tions
BRIEF EXPLANATION
Simplifies accounting procedures
with respect to unexpended and obligated balances of the Emergency
Relief Acts of 1935, 1936, 1937.
and 1938 (other than repayments
and recoveries deposited as trust
STATUS AT END
OF FIRST SESSION
Bill pending before
the House Committee
on Appropriations.
REMARKS
This bill was not
introduced in
Congress until
Oct. 21, 1941. It
has a good chance
of passage next
session.
revolving funds) by providing that
such funds shall constitute an
"Emergency Relief Liquidation Fund".
which is reappropriated to pay
claims certified by the Comptroller
General to be properly payable
under those Acts.
21. Foreign Exchange
for Customs Purposes.
22. Harrison Narcotic
Act Amendment
Clarifies the procedure in ascertaining the value of foreign currency for customs conversion purposes while there are dual or
multiple exchange rates.
Relieves certain hospitals from
double occupational tax by speci-
fically reclassifying them; clas-
sifies newly discovered morphine
derivaties, prevents abusive use
of narcotic commodity tax stamps,
and makes other desirable changes
in the laws relating to narcotics.
No bill introduced, but
Treasury draft bill and
letter of submission
pending before House
Although there may
be a fight on this
bill, we are optimi
tic that it will be
Ways and Means Com-
enacted during the
mittee.
Second Session.
No bill introduced, but
This bill eventually
Treasury draft bill
has a good chance
and letter of submission of passage.
pending before Senate
Committee on Finance,
and House Ways and Means
Committee.
104
THE AMERICAN BANKERS ASSOCIATION
OFFICE OF THE PRESIDENT
THE SECURITY BANK
OF PONCA CITY
PONCA CITY OKLAHOMA
January 16, 1942
H W KOENEKE
PRESIDENT
To America's Banks:
Since December 7th it has become increasingly more important that the Defense Bond
program be pushed to the utmost. I am taking this opportunity of asking the banks
to put forth every effort to keep this program continually before the people. There
is nor more need than ever for the success of the Defense Bond program and we
should do everything possible to help.
From reports which have come to the officers of the Association, it is gratifying
to know that the banks are doing an excellent job in the Defense Bond program. I
have every confidence that they will continue to do this job in a manner characteristic and emblematic of the American way.
The officers of the Association have asked me to communicate with you and urge you
to make arrangements as soon as possible for imprinting the "For Victory Minute Man"
on the face or back of your customers' and official checks, on customers' monthly
statements, on letterheads, envelopes and all other stationery used by your bank.
A cut of the size you desire can be obtained free of charge from the Defense Savings Staff, United States Treasury Department, Washington, D. C. Illustrated below are the two sizes available to banks for the purpose of carrying out this
program. Order direct from the Defense Savings Staff of the Treasury and designate
by number the size cut you desire.
Your hearty cooperation in this undertaking will be appreciated, and there is no
doubt in my mind but what it will help materially to increase the sale of Bonds.
For your further help in the promotion of these Bonds, the Advertising Department
of the h. B. A. has prepared a completely new campaign with a war-time appeal. The
new material is described in the accompanying circular.
REMEMBER PEARL HARBOR!
Yours sincerely,
FOR VICTORY
BUY
UNITED
PORVICTORY
STATES
SAVINGS
BUY
AND STAMPS
BONDS
Style #1
Style #2
H. W. Koeheke
President
105
Unfilled Orders for Savings Bonds at the
Federal Reserve Banks and the Post Office Department
January 5 to date
In thousands of pieces)
received
manufactured
today
today
Unfilled
orders at
close of
business
Stock of
"B" type
bonds
on hand
:
Bonds
:
:
:
orders at
opening of :
business :
New orders
:
:
Unfilled
IBM
deliveries
this day
:
Jan.
1,171
257
445
1,255
333
310
1,255
425
450
1,408
511
520
1,408
639
450
1,597
511
525
1,597
460
460
1,597
511
450
1,597
649
500
1,471
236
550
10
1,471
155
525
1,101
236
575
11
1,101
560
541
236
600
12
541
859
595
805
236
625
13
805
423
630
598
236
650
14
598
622
670
550
236
685
15
550
660
750
455
231
1,000
5
6
7
8
9
none-no mail
Office of the Secretary of the Treasury,
Division of Research and Statistics.
January 16, 1942
108
UNITED STATES SAVINGS BONDS
Comparative Statement of Sales During
First Thirteen Business Days of January 1942 and December and November 1941
(November 1-17, December 1-15, January 1-15)
On Basis of Issue Price
(Amounts in thousands of dollars)
$ 32,538
$ 22,599
Series E - Banks
224,935
59,055
Series E - Total
308,213
33,331
138,014
$479,558
:
:
Series G - Banks
Total
:
Series F - Banks
:
$ 83,277
Series E - Post Offices
:
1941
:
1941
:
1942
over
December
January
over
December
:
:
:
November
:
December
December
over
November
:
:
January
January
:
Item
:
or Decrease (-)
Percentage of Increase
or Decrease (-)
:
Amount of Increase
Sales
December
over
: November
155.9%
44.0%
18,998
280.9
47.4
216,619
22,885
71,902
28,938
236.5
219.1
108.8
46.2
0.1
$311,407
$ 31,408
185.2%
23.0%
$ 9,939
40,057
$ 50,739
165,880
91,594
10,446
66,112
62,656
10,439
63,648
$168,151
$136,743
7
2,464
Office of the Secretary of the Treasury, Division of Research and Statistics.
3.9
January 16, 1942.
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.
107
UNITED STATES SAVINGS BONDS
Daily Sales - January, 1942
On Basis of Issue Price
(In thousands of dollars)
Post Office
Date
Series E
Series E
Series ,
Series G
Total
Series E
Series F
Series a
Total
$ 3,982
$ 10,229
$ 1,964
$ 7,605
$ 14,211
$ 1,964
$ 7,605
4,802
4,457
10,736
9.557
2,056
1,278
7.779
5,453
$ 19.798
20,571
16,289
15,538
14,015
2,056
1,278
7.779
5,453
23,780
25,373
20,747
9,684
6,711
6,748
7,509
5,746
4,398
26,724
7,659
21,267
21,297
12,359
16,031
3,240
1,341
3,692
3,821
1,798
1,858
13,704
6,778
18,832
12,871
4,765
6,355
43,668
15.778
43,790
37,989
18,923
24,244
36,408
14,369
28,015
28,806
18,105
20,429
3,240
1,341
3,692
3,821
1,798
1,858
13,704
6,778
18,832
12,871
4,765
6,355
53,352
22,489
50.539
45,498
24,669
28,641
10,187
7,902
4,706
6,444
37,483
15,059
19,939
16,597
3,830
2,507
3,701
2,243
14,353
11,944
14,293
13,283
55,666
29,510
37,933
32,123
47,670
22,961
24,645
23,041
3,830
2,507
3.701
2,243
14,353
11,944
14,293
13,283
65,853
37,412
42,639
38,567
$ 83,277
$224,935
$ 33,331
$138,014
$396,281
$308,213
$ 33,331
$138,014
$479,558
January 1942
1
2
3
6
7
8
9
10
12
13
14
15
Total
All Bond Sales
Bank Bond Sales
Bond Sales
Office of the Secretary of the Treasury, Division of Research and Statistics.
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.
Lem
January
16,
1942.
108
CONFIDENTIAL
UNITED STATES SAVINGS BONDS
Comparative Statement of Sales During
First Fourteen Business Days of January 1942 and December and November 1941
(November 1-18, December 1-16, January 1-16)
On Basis of Issue Price
(Amounts in thousands of dollars)
over
December
:
:
:
over
December
January
:
:
:
:
:
:
:
:
:
:
:
:
Total
:
Series G - Banks
:
Series F - Banks
1941
:
Series E - Total
1941
November
:
:
Series E - Banks
1942
December
December
over
November
Percentage of Increase
or Decrease (-)
:
:
:
Series E - Post Offices
January
January
:
Item
or Decrease (-)
:
Sales
Amount of Increase
December
over
November
156.8%
47.1%
20,271
298.6
47.4
242,510
26,311
84,081
31,371
248.3
232.0
123.6
47.3
2.6
0.5
$352,902
$ 31,998
199.4%
22.1%
$ 88,998
251,175
$ 34,652
$ 23.552
$ 54,346
$ 11,100
63,011
42,740
188,164
340,173
37,650
152,093
97,663
11,339
68,012
66,292
11,051
67,673
$529,916
$177,014
$145,016
288
339
Office of the Secretary of the Treasury, Division of Research and Statistics.
January 17, 1942.
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.
Unfilled Orders for Savings Bonds at the
Federal Reserve Banks and the Post Office Department
January 5 to date
( In thousands of pieces)
manufactured
:
today
Unfilled
orders at
close of
business
Stock of
"B" type
bonds
on hand
IBM
deliveries
:
:
:
:
today
:
received
Bonds
:
:
orders at
opening of
: business
New orders
:
: Unfilled
this day
Jan.
1,171
257
445
1,255
333
310
1,255
425
450
1,408
511
520
1,408
639
450
1,597
511
525
1,597
460
460
1,597
511
450
1,597
649
500
1,471
236
550
10
1,471
155
525
1,101
236
575
11
1,101
560
541
236
600
12
541
859
595
805
236
625
13
805
423
630
598
236
650
14
598
622
670
550
236
685
15
550
660
750
455
231
1,000
16
455
773
775
426
204
750
5
6
7
8
9
none-no mail
Office of the Secretary of the Treasury,
Division of Research and Statistica.
January 17, 1942
110
CONFIDENT
UNITED STATES SAVINGS BONDS
Daily Sales - January, 1942
On Basis of Issue Price
(In thousands of dollars)
Post Office
Date
January 1942
1
2
3
5
6
7
8
9
10
12
13
14
15
16
Total
All Bond Sales
Bank Bond Sales
Bond Sales
Series E
Series E
Series F
Series G
Total
Series E
Series F
Series G
Total
$ 3,982
$ 10,229
$ 1,964
$ 7,605
$ 19,798
$ 14,211
$ 1,964
$ 7,605
$ 23,780
4,802
4,457
10,736
9.557
2,056
1,278
7.779
5,453
20,571
16,289
15,538
14,015
2,056
1,278
7.779
5,453
25,373
20,747
9,684
6,711
6,748
7,509
5,746
4,398
26,724
7,659
21,267
21,297
12,359
16,031
3,240
1,341
3,692
3,821
1,798
1,858
13,704
6,778
18,832
12,871
4,765
6,355
43,668
15,778
43,790
37,989
18,923
24,244
36,408
14,369
28,015
28,806
18,105
20,429
3,240
1,341
3,692
3,821
1,798
1,858
13,704
6,778
18,832
12,871
4,765
6,355
53,352
22,489
50.539
45,498
24,669
28,641
10,187
7,902
4,706
6,444
5,721
37,483
15,059
19,939
16,597
26,239
3,830
2,507
3,701
2,243
4,319
14,353
11,944
14,293
13,283
14,078
55,666
29,510
37,933
32,123
44,637
47,670
22,961
24,645
23,041
31,960
3,830
2,507
3,701
2,243
4,319
14,353
11,944
14,293
13,283
14,078
65,853
37,412
42,639
38,567
50,358
$ 88,998
$251,175
$ 37,650
$152,093
$440,917
$340,173
$ 37,650
$152,093
$529,916
Office of the Secretary of the Treasury, Division of Research and Statistics.
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.
January 17. 1942.
110. A
January 16, 1942
HAROLD N. GRAVES
TO:
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 twelve business days of January totalled
$440,991,000, an increase of 206.7 per cent over sales for
the corresponding twelve days of December. Sales for the
first twleve days of December were $143,803,000, while sales
for the same days in November were $126,122,000.
Sales of Series E Bonds during the first twelve business
days of January were $285,171,000, an increase of 292.1 per
cent over Series E Bond sales during the corresponding period
in December. Series E Bond sales for the first twelve business
days of December were $72,729,000.
SPECIAL
A study of People's Motives for Buying Defense Bonds and
Stamps, made by the Psychological Corporation of New York and
Chicago, based upon 790 interviews, reveals valuable and
interesting information. (A complete copy of the study is attached)
PAYROLL SAVINGS PLAN
Based on reports from State Administrators, returns from
38 states, as of January 15, showed that 8,216 firms employing
110-B
-2-
PAYROLL SAVINGS PLAN (continued)
9,778,000 persons either already have adopted or are currently
making arrangements to install the Payroll Savings Plan for
regular and continued purchases of Defense Savings Bonds.
Outstanding reports of recent installations as reported
by the Field Office, include:
General Electric Co., Schenectady, N. Y., advises that
102,000 out of 132,000 employees are subscribing $1,260,000
each month.
Eastern Massachusetts Street Railway Co., with 1,750
employees reports 90 percent participation.
One hundred per cent participation is reported by the
Fairbanks Scale Company, of St. Johnsbury, Vermont, with 772
employees, and the Gilman Paper Company, Gilman, Vermont with
512 employees.
The Ford Motor Company's Payroll Savings Plan for 127,000
employees has been forwarded to the Treasury.
The 60,000 employees of the Aluminum Company of America
will enroll in the Payroll Savings effective February 1.
Carson-Piorie-Scott of Chicago, with 700 employees, reports
98 per cent are participating, and that in addition they have
sold $50,000 worth of bonds in "spot cash" purchases.
The Mohawk Carpet Co., Amsterdam, N. Y. invested $216,175
in Defense Savings Bonds through payroll Savings in November and
December.
110-C
-3PAYROLL SAVINGS PLAN (Continued)
All State Departments in Ohio have installed Payroll Savings,
enrolling 16,000 employees.
STATE GUIDE BOOKS
Twenty-six states have received copies of the State Guide
Books prepared jointly by the Office of Government Reports and
the Promotional Unit of the Defense Savings Field Office. The
remaining states will receive their books within ten days.
SECURITY DEALERS
Representatives of various associations of security dealers
in stock exchange firms have offered their services to the
Defense Savings Program. Field Memorandum No. 172 (copy attached)
explains tentative plans in detail.
RETAIL STORES
New York retailers have decided to extend the advertising
effort they inaugurated January 1. They will sponsor indefinitely
a series of monthly promotions in the interest of Defense Savings.
Their plans include newspaper advertising, plus an outdoor campaign using space on 500 billboards in the Greater New York Area.
110-D
-4RETAIL STORES (Continued)
The following chain store firms advise that the voluntary
Payroll Savings Plan has been adopted, with a major percentage
of their employees participating.
Sears, Roebuck, 55,000 employees
Safeway Stores, 23,000 employees
Kroger Grocery & Baking Co., 23,000 employees
Economy Grocery Co., 2,000 employees
In addition, Sears, Roebuck has set up a $500,000 revolving
fund for Defense Savings Stamp purchases. From this fund every
regular employee is supplied with $10 worth of Stamps to sell
to his customers and acquaintences.
Many retail concerns are preparing their own posters and
signs, advertising Defense Savings, to display in their stores.
Among firms doing this are Schulte Cigar Stores, United-Whalen
Drugs, Sears Roebuck, Kroger Grocery and Baking Co., and Safeway
Stores.
EDUCATION
Official handbooks for educational committees, setting forth
means for adapting Defense Savings in schools, are scheduled to be
off the presses by the first of next week. These handbooks will
be distributed by State Administrators.
Special Lincoln and Washington Birthday articles of particular interest to school children are being printed in form
110-E
-5EDUCATION (Continued)
suitable for insertion in students notebooks. The Lincoln's
birthday article features the story of the Lincoln penny, while
the other compares the methods of financing George Washington's
army and our present and potential armed forces. The Lincoln
piece is designed for grammar school children; the Washington
story for high school pupils. Both articles are illustrated.
An article prepared by the Education Division appears in
the February issue of "School Life", published by the Office of
Education. Another is scheduled for the March issue of the
magazine "Nation's School".
SPECIAL FOREIGN LANGUAGE GROUPS
Sons of Norway, ofMadison, Wisconsin, voted to purchase
$750 worth of Bonds.
Hungarian Women's Reformed Sick Benefit Society, Indiana,
has appropriated $300 of its fund for Defense Bonds.
The Polish National Alliance, Schenectady, New York, has
$12,000 in Defense Bonds.
Members of the St. George Greek community in Springfield,
Massachusetts, subscribed more than $3,000 worth of Defense
Savings Bonds in ten days.
The Lithuanian Citizens Political Club of Waterbury, Connecticut, has voted to buy its third $10,000 Defense Bond.
110-F
-6SPECIAL FOREIGN LANGUAGE GROUPS (Continued)
In Cincinnati, Ohio, German-speaking members of the American
Citizens' League helped raise $800 for Defense Bonds in a fortnight.
Youngstown's Croatian Fraternal Union, in Ohio, voted a $1000
subscription to Defense Bonds.
The Italian Workmen's Club, Madison, Wisconsin, bought a
$1000 Bond.
The Sacramento, California resident Japanese are participating
wholeheartedly in the Defense Program.
In The Dalles, Oregon, the postmaster counted 5600 pennies
for Defense Bonds turned in by the baby daughter of a Japanese
restaurant keeper.
Ukranian National Association, West Easton, Pennsylvania,
voted $300 in Defense Bonds.
Members of the Syrian-American Association pledged a $10,000
purchase.
In Gary, Indiana, representatives of five Roumanian groups
purchased $7000 in Defense Bonds.
Members of the Serbian Lodge, No. 129, East Moline, Illinois,
have pledged at least $8000 in Defense Bonds.
A Philadelphia bootblack, Tony da Grossa, bought $1700 in
Defense Bonds - 50 years savings.
In Houston, Texas, a Roumanian has sold $700 worth of stamps
from store to store. His goal is $5000.
110-G
-7RADIO
New "station break" copy has been sent to all radio stations.
A total of 5,222 are being used daily. (see Radio Attachment No.2)
The following radio programs are now including Bond and
Stamps as prizes.
a. Red Skelton
NBC (Brown and Williamson-sponsor)
NBC (Dr. Miles Laboratory-sponsor)
b. Quiz Kids
C. Information Please NBC American Tobacco Company-sponsor)
CBS Emerson Drug Co. -sponsor)
d. Vox Pop
e. How Am I Doin'
CBS (Camel Cigarette- sponsor)
f. Hit Parade
g. Kay Kyser
h.
CBS (American Tobacco Co.-sponsor)
NBC (American Tobacco Co.-sponsor)
Double or Nothing MBC (Feenamint - sponsor)
540 Foreign Language announcements are being made daily over
186 radio stations, copies of new foreign language announcements
are attached. (See Redio Attachment No. 1)
Radio Station KTNM (Tucumcari, New Mexico) originated its
own Defense show "America Calling" on January 10, and sold bonds
at the rate of one per minute. The town has a population of 5,000.
A total of $2,650 in bonds was sold during the first program.
"America Calling" will be on the air on KTNM every Saturday.
David Sarnoff, Director of the National Radio Minute Men
Campaign has invited William Paley, President of CBS and Alfred J.
McCosker, President of MBS, to serve with him on a joint committee.
The RCA office in New York will schedule all Minute Men on
network broadcasts, both sponsored and sustaining.
110-H
-8RADIO (Continued)
Invitations to nationally prominent religious leaders of
all faiths to join the Minute Man Committee were issued this week.
A total of 4,300 Minute Man announcements already have been made
over the nations radio stations.
Radio Station WBZ-WBZA, in Boston and Springfield, Massa-
chusetts, have inaugurated a half hour Saturday evening program "REMEMBER PEARL HARBOR"- devoted to securing pledges for purchases
of bonds. Western Union is cooperating with the stations in this
campaign. Pledges on the January 10th program amounted to $12,000.
The program is scheduled to go on indefinitely.
Arrangements are being completed to record Minute Man
announcements by U. S. Senators to be distributed to all radio
stations in their home states for repeated broadcasts.
One hundred and twenty-four radio stations now have 100%
memberships in Payroll Defense Savings Plans.
TELEVISION
The Columbia Broadoasting System reports that the first
television Bond Program telecast 8:15 - 9:10 P.M., Friday, January
9, sold $75,000 worth of bonds. In all, 48 contributions were
received, the largest one of $50,000 from Bankers National Life
Insurance Company. Other purchases in amounts of $5,000 each were
phoned in by Larry McPhail and Dan Topping in the name of the
Brooklyn Dodgers and the N. Y. Football Playing Dodgers, respectively.
110-I
-9TELEVISION (Continued)
The Defense Savings Staff is also utilizing the ten-minute
intermission spot on the NBC telecast of the Monday night fight
shows, to promote Bond sales.
PRESS
Photographs of Dorothy Lamour's varied activities in New
York, Philadelphia and Washington were carried by all newspapers
and photo services. (Several clippings are attached.) Other pictures arranged by the Press Section which received widespread pub-
licity include the installation of a Defense Stemp Booth at the
Washington National Airport; sale of bond to Sonja Heine by Mrs.
Lytle Hull; Joe Louis buying bond on the day of his induction into
the Army; and of stars of the Olsen and Johnson shows, visiting
Vice President Wallace before starting their Payroll Savings Entertainment Caravan. (Clippings are attached.)
Voluntary reports from the first mailing of comic cartoons,
drawn especially for Defense Savings Staff, were received from 75
editors and publishers of leading daily newspapers asserting that
they would use the material regularly.
First of a special "Defense Savings hints for housewives"
series were mailed to all women page editors of daily newspapers.
ACME News Pictures, Inc. took pictures of Chinese buying bonds
at the Chinese Post Office in San Francisco and are arranging a
feature release.
110-J
-10PRESS (Continued)
Crockett Johnston, representing a group of magazine cartoon-
ists, came to Washington to inform Treasury officials that the
nation's magazine cartoonists would provide Defense Savings with
cartoons for their Trade Publications and House Magazines.
A full page color cartoon of "THE TIMID SOUL" devoted to the
Defense Savings Program is attached. Also attached are clippings
of newspapers with unusual publicity "breaks".
Editor and Publisher Newspaper trade magazine carried three
stories and a full page advertisement about activities of the
Press Section. (Marked copy is attached.)
NEWSPAPER CARRIER SALES
As of January 12, 493 newspapers in 443 cities, with a total
city circulation of 11,063,290, reported sales of 38,265,370 tencent stamps, or their equivalent in Bonds or Stamps of larger
denominations. (Cash total - $3,826,537.) These sales were made
by 107,303 newspaper carrier boys. Theaverage sales per carrier
amounted to $35.60. A table showing the breakdown of sales is
attached.
LABOR PRESS ADVERTISING
To date, 235 labor papers have agreed definitely to publish
our Payroll Savings advertising releases. This group has an
aggregate circulation of approximately 3,525,000.
110-J
-10PRESS (Continued)
Crockett Johnston, representing a group of magazine cartoon-
ists, came to Washington to inform Treasury officials that the
nation's magazine cartoonists would provide Defense Savings with
cartoons for their Trade Publications and House Magazines.
A full page color cartoon of "THE TIMID SOUL" devoted to the
Defense Savings Program is attached. Also attached are clippings
of newspapers with unusual publicity "breaks".
Editor and Publisher Newspaper trade magazine carried three
stories and a full page advertisement about activities of the
Press Section. (Marked copy is attached.)
NEWSPAPER CARRIER SALES
As of January 12, 493 newspapers in 443 cities, with a total
city circulation of 11,063,290, reported sales of 38,265,370 tencent stamps, or their equivalent in Bonds or Stamps of larger
denominations. (Cash total - $3,826,537.) These sales were made
by 107,303 newspaper carrier boys. Theaverage sales per carrier
amounted to $35.60. A table showing the breakdown of sales is
attached.
LABOR PRESS ADVERTISING
To date, 235 labor papers have agreed definitely to publish
our Payroll Savings advertising releases. This group has an
aggregate circulation of approximately 3,525,000.
110 - K
-11BUSINESS PUBLICATIONS
A total of 1,878 requests for complete information about the
voluntary Payroll Savings Plan was received as a result of advertisements of the Defense Savings Staff published by business
publications. These requests all have been answered.
HOUSE MAGAZINES
A detailed plan, calling for additional emphasis on the
Payroll Savings Plan in house magazine publications has been
completed by the House Magazine Editors' Committee. The committee's
report was based on a two week study here in Washington.
LABOR PRESS
Bernard Seaman, who draws the "March of Labor," a cartoon
feature appearing regularly in 100 labor publications, has notified the Treasury that he will include a pictorial item about
Defense Savings in each release.
Copies of labor publications showing typical use they make
of mats, stories and cartoons sent out by the Press Section, are
attached.
STAGE AND SCREEN STARS
At a statewide Defense Bond rally attended by 20,000 persons
in Indianapolis, Indiana, on January 15, Carole Lombard, appearing
110.
-12STATE AND SCREEN STARS (Continued)
as guest star, sold a total of $2,000,000 worth of Defense Bonds
during the course of the evening.
Dorothy Lamour made special appearances this week for the
Defense Savings Program in New York, Philadelphia, Washington,
and Baltimore.
The entire cast of Eddie Cantor's "Banjo Eyes," Broadway
musical comedy production, has signed up to participate in the
Defense Payroll Savings Plan.
NEWSREELS
The Defense Savings Staff Newsreel Crew made pictures this
week in verious cities and towns in Massachusetts, Rhode Island
and Connecticut.
MOTION PICTURES
Employees of Metro-Goldwyn-Mayer, Loew's Inc., Warner Bros.,
and Paramount have signed up to participate in the Payroll Savings
Plan.
The Defense Savings Staff is sending out copy and layouts
to all motion picture producers which they will work into their
advertisements. These advertisements are used in the nation's
16,000 theatres and in the 1,550 daily newspapers. Special copy
is also being prepared for use on billboard posters and theatre
lobby displays. This copy will be changed frequently to emphasize
need of universal adoption of Payroll Savings.
110-M
-13HAGERSTOWN CAMPAIGN
The Defense Bond and Stamp Campaign for Hagerstown and
Washington county, Maryland, established as its goal enough
money to buy two Fairchild Trainer planes. The campaign wound
up with enough bonds and stamps sold to purchase 28 such planes.
DIRECT MAIL
Defense Bond sales by direct mail this week were $1,001,331
bringing the total sales as on January 15 through this medium to
$16,445,507.
LABOR
The International Union of Bricklayers, Masona and Plasterers
of America (A.F.L.) has purchased $150,000 of Defense Bonds for
1942. They purchased the same for 1941.
Los Angeles Typographical Union No. 174 has voted a $10,000
purchase of Defense Bonds.
At New Britain, Connecticut, The American Velvet Company
has bought $6,300 of Defense Bonds.
In Atlanta, Georgia, United Auto Workers, (C.I.O.) have
asked the Ford Motor Company to pay all wages in excess of the 5day week into the purchase of Defense Savings Bonds and Stamps.
In the Sand Coulee-Stockett district of Montana, miners are
devoting a day's pay, besides their pledges, to the purchase of
Defense Bonds and Stemps.
110.N
-14LABOR (Continued)
International Brotherhood of Teamsters, (A.F.L.) bought
$1,000,000 of Defense Bonds and are pledging $2,000,000 yearly
ES long as the war lasts.
The International Union of Mine, Mill and Smelter Workers
(C.I.O.) Birmingham-Bessemer area of Alabama, sets a goal of
$200,000 for its quota.
SERVICE GROUPS
North Dakota's ten Elks Lodges have recently bought over
$100,000 in U. S. Defense Bonds.
Members of the Fourth Degree Assembly of the Knights of
Columbus in Rochester, New York, have undertaken to sell $10,000
worth of Bonds and Stamps the first two weeks in January.
Benevolent and Protective Order of Elks in New Bedford,
Mass., met to receive instructions for canvassing 40,000 workers
relative to payroll savings plan.
TRADE PROMOTION
The Menasha Products Company of Menasha, Wisconsin, reports
that it has provided 12,350,000 Defense Bond Labels to 19 large
bakeries in various sections of theUnited States. (Sample attached)
SPECIAL FULL PAGE COMIC CARTOON
Attached is photostat of full page of Dudley Fisher's "Right
Around Home", which will be published in more than 60 newspapers on
February 1 in full color, both in standard size and tabloid.
III
EXECUTIVE ORDER
2153
9024
ESTABLISHING THE WAR PRODUCTION BOARD IN THE
EXECUTIVE OFFICE OF THE PRESIDENT
AND DEFINING ITS FUNCTIONS AND DUTIES
By virtue of the authority vested in me by the Constitution and statutes of the United States, as President of the
United States and Commander in Chief of the Army and Navy,
and in order to define further the functions and duties of
the Office for Emergency Management with respect to the state
of war declared to exist by Joint Resolutions of the Congress,
approved December 8, 1941, and December 11, 1941, respectively,
and for the purpose of assuring the most effective prosecution
of war procurement and production, it is hereby ordered as
follows:
1. There is established within the Office for Emergency
Management of the Executive Office of the President a War
Production Board, hereinafter referred to as the Board. The
Board shall consist of a Chrirman, to be appointed by the
President, the Secretary of War, the Secretary of the Navy,
the Federal Loan Administrator, the Director General and the
Associate Director General of the Office of Production Manage-
mont, the Administrator of the Office of Price Administration,
the Chairman of the Board of Economic Jerfare, and the Special
Assistant to the President supervising the defense aid program.
2. The Chairman of the War Production Board, with the
advice and assistance of the members of the Board, shall:
112
a. Exercise general direction over the war procurement and production program.
b. Determine the policies, plans, procedures, and
methods of the several Federal departments, estab-
lishments, and agencies in respect to war procurement and production, including purchasing, con-
tracting, specifications, and construction; and
including conversion, requisitioning, plant expansion, and the financing thereof; and issue such
directives in respect thereto as he may deem neces-
sary or appropriate.
Perform the functions and exercise the powers
vested in the Supply Priorities and Allocations
Board by Executive Order No. 8875 of August 28,
1941.
d. Supervise the Office of Production Management in
the performance of its responsibilities and duties,
and direct such changes in its organization as he
may deem necessary.
e. Report from time to time to the President on the
progress of war procurement and production; and
perform such other duties as the President may
direct.
3. Federal departments, establishments, and agencies shall
comply with the policies, plans, methods, and procedures in
respect to war procurement and production as determined by the
Chairman; and shall furnish to the Chairman such information
relating to war procurement and production as he may deem neces-
sary for the performance of his duties.
--
113
4. The Army and Navy Munitions Board shall report to
the President through the Chairman of the Nar Production
Board.
5. The Chairman may exercise the powers, authority, and
discretion conferred upon him by this Order through such officials or agencies and in such manner as he may determine; and
his decisions shall be final.
6. The Chairman is further authorized within the limits
of such funds as may be allocated or appropriated to the
Board to employ necessary personnel and make provision for
necessary supplies, facilities, and services.
7. The Supply Priorities and Allocations Board, established by the Executive Order of August 28, 1941, is hereby
abolished, and its personnel, records, and property transferred to the Board. The Executive Orders No. 8629 of
January 7, 1941, No. 8875 of August 28, 1941, No. 8891 of
September 4, 1941, No. 8942 of November 19, 1941, No. 9001
of December 27, 1941, and No. 9023 of January 14, 1942, are
hereby amended accordingly, and any provisions of these or
other pertinent Executive Orders conflicting with this Order
are hereby superseded.
FRANKLIN D. ROOSEVELT
THE WHITE HOUSE,
January 16, 1942.
IMMEDIATE RELEASE
FOR THE PRESS
114
JANUARY 16, 1942
2154
The President announced today the appointment of
William S. Knudsen as Director of Production for the War
Department.
On Monday, the President will send the name of Mr.
Knudsen to the Senate for appointment as a Lieutenant General
in the Army.
Mr. Knudsen will have entire charge of directing and
expediting the gigantic production involved in the War Department
munitions program, with special emphasis on the production of
airplanes, tanks, guns and ammunition.
He and his staff will in addition visit the great
arsenals and munitions factories with the object of helping
them constantly to improve and speed up their lines of production.
In announcing the appointment, the President said:
-
"Bill Knudsen is one of the great production men of
the world and his acceptance of this new post means that
he can give his entire time to the direction and expediting
of production, a field in which he has no equal.
"The country is already immeasurably indebted to Mr.
Knudsen and in accepting this assignment at my request,
he is undertaking one of the most important tasks of the
war.
"He will, of course, continue as a member of the
new War Production Board."
115
JAN 16 1942
ii) dear Colonel Donovan:
! and enclosing copies of the report on
our exports to some selected countries for
the weeks ending December 13 and 20, 1941
and January 3, 1942.
Copies will be sout to you regularly in
the future.
Sincerely yours,
pl D.W. Bell
Acting Secretary of the Treasury
Colonel William J. Denovan,
Coordinator,
Office of Coordinator of Information,
old National Institute of Health Building,
25th and E Streets, N. E.,
Washington, D. C.
Enclosures
mc
Manue
OV Message 2:40
Capers and w.w hire
1/14/42
116
JAN 16 1942
my dear m. Secretary:
I am enclosing copy of report - our
exports to some selected countries during
the week ending January 3. 1942.
sincerely years,
fsl D.W.Bell
Acting Secretary of the Treasury
The Menerable,
the Secretary of state,
Washington, D. C.
Enclosure
nmc
1/6/42
By Memoraes Manus 2:40
copie G.W.White
117
JAN 16 1942
My dear Mr. President:
I - enclosing report on our exports
to some selected countries during the week
ending January 3, 1942.
Faithfully,
D.W.Bell
Acting Secretary of the Treasury
The President,
The White House.
Enclosure
Via Suret Service 2:15
n.m. C.
Copies to Dr White
1/6/42
118
January 14, 1942
Secretary Morgenthau
Mr. White
Subject: Exports w Russia, China, Burma, Hong Kong, Japan,
France and other blocked countries, as reported to
the Treasury
Department during the week ending
January
3, 1942.
1. Exports to Russia
Exports to Russia as reported to the Treasury during the
week ending January 3, 1942 amounted to about $4,000,000 as
compared with approximately $1,800,000 during the previous week.
Military tanks and parts accounted for more than one-half of
the total amount. (See Appendix C.)
2. Exports to China, Burma and Hong Kong
Exports to Free China amounted to $35,000. (See Appendix D.)
Exports to Burma amounted to only $2,000. (See Appendix E.)
No exports to Occupied China or Hong Kong were reported
during the week under review.
3. Exports to Japan
review.No
exports to Japan were reported during the week under
4. Exports to France
No 3.
exports
January
1942. to France were reported during the week ending
5. Exports to other blocked countries
Exports to other blocked countries are given in Appendix A.
APPENDI B
Exports from the U.S. to China, Burma, Hong Kong, Japan and U.S.S.R.
1942
(Thousands of Dollars) 1
Exports to China
Total To Japanese
To Chinese
Exports
Exports
Exports
controlled
controlled
to
to
to
reported to the Treasury Department, July 8, 1941 - January 3,
July 28 - Aug.
Aug. 4 - Aug.
Aug. 11 - Aug. 16
Aug. 18 - Aug. 23
Aug. 25 - Aug. 30
ports
395
2
937
542
a
2,794
2,794
1,278
1,352
969
309
1,350
2
735
1
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.
Nov. 3 - Nov.
1
s
Nov. 10 - Nov. 15
Nov. 17 - Nov. 22
Nov. 24 - Nov. 29
Dec. 1 - Dec.
Dec. 8 - Dec. 13
6
Dec. 15 - Dec. 20
Dec. 22 - Dec. 27
Dec. 29 - Jan. 3
Total
ports
Purms 3
Exports
to
Japan
U.S.S.R.
654
983
1,657
4,523
159
42
551
986
-
-
Hong Kong
693
204
235
234
742
634
3,038
757
2,281 2
456
3.978
156
3,822
-
110
-
1,225
449
684
752
2,333
5,312
1,157
1,233
-
5
35
584
-
269
403
4,772
1,243
2,851
1,228
58
342
as
624
283
303
-
3,009
1,701
3,359
352
so
552
267
399
438
164
158
473
120
389
810
297
1,021
600
-
3,239
1,364
61
1,325
-
852
791
64
-
-
3,025
688
2,337
18
-
-
123
12
111
37
36
736
897
462
1,305
5,864
272
668
5,210
1,836
35
42,768
1,672
1
35
11,796
30,972
-
-
5
-
8
-
-
-
-
2
-
-
11,629
323
-
196
5,889
2,735
1,023
4,280
5,217
6
1,869
6,845
1,924
5,623
4,484
4,552
2,677
3,581
2,436
3,609
12,040
4,580
1,829
3,993
80,896
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 Bursa are destined for Free China.
Treasury Department, Division of Monetary Research
January 10, 1942
120
APPENDIX C
Principal Exports from U.S. to U.S.S.R.
as reported to the Treasury Department
during the week ending January 3, 1942.
(Thousands of Dollars)
Total Exports
$ 3,993
Principal Items:
Military tanks and parts
2,054
Motor trucks and chassis
Lathes
Wheels of artificial abrasives
Explosive shells and projectiles
Barbed wire
Diesel engines
Brass and bronze plates and sheets
Thread-cutting and automatic screw machines
Forging machinery and parts
Drilling Machines
Treasury Department, Division of Monetary Research
498
205
120
107
101
98
97
94
73
73
January 9, 1942
121
APPENDIX D
Principal Exports from U.S. to Free China
as reported to the Treasury Department
during the week ending January 3. 1942.
(Thousands of Dollars)
Total Exports to Free China
$ 35
Principal Item:
Landplanes (partial shipment)
Treasury Department, DIVISION of Monetary Research
35
January 9, 1942
122
APPENDIX 2
Principal Exporte from U.S. to Burna
as reported to the Treasury Department
during the week ending January 3. 1942.
(Thousands of Dellars)
Total Experts
$2
Principal Item:
Paraffia wax
Treasury
(ST/efs
1/12/42
2
Department, Division of Monetary Research January 10, 1942
123
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, 1941 to January 3, 1942
(In thousands of dollars)
July 28
Week ended
Week ended
Dec. 20
December 27
January 3
$74,726
$ 1,829
$ 3,993
$80,548
35
28,369
to
U. S. S. R.
Free China
Burma 2
28,333
1
6,806
France 3
Occupied France
-
7,002
6
-
2
2,329
Switzerland
5,059
2
.4
Spain
Portugal
w
-
6
Unoccupied France
Sweden
196
Total
Domestic Exporte
-
-
.4
2,329
-
w
1
11,100
414
4,450
22
Treasury Department, Division of Monetary Research
1
1
16
5,061
11,515
4,488
January 6, 1942.
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 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,
3 Includes both Occupied and Unoccupied France through week ending October 4, 1941.
Occupied and Unoccupied France separated thereafter.
w Less than $500.
Jininef 1/6/42.
124
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE January 16, 1042
TO
FROM
Subject:
Mr. White
Mr. Friedman
Digest of two cables received from American Embassy
in Chungking dated January 12, 1942.
1. Embassy has been informed that Dr. Kung is
proceeding with plans to institute monopolies.
2. When queried informally regarding reported
monopoly of tobacco, Dr. Kung replied that a
cigarette sales monopoly is in process of being
planned but the legislative procedure has not
been finished and the monopoly hes not yet been
completed.
3. Ambassador Gauss says that he her little doubt
that the plans for monopolies are related to
the proposed loans. The Ambassador sug-ests
that this provides an occasion for expressing
United States objections to the esteblishment
of monopolies.
4. The Embassy has been advised that effective
January 1 the Chinese Government monopoly of
salt was established.
5. The Ministry of Finance has assured the
Ambassador that the members of the Salt
Administration staff who are elective, who
are technical experts, and who have given
satisfactory service will be retained as
members of the staff and that foreign loans
originally secured on the salt tax will not
be effected by the monopoly. The Ambassador
says that this involves a question of good
faith since it means a change in the existing
status of the Salt Administration.
C
CONFIDENTIAL
125
0
P
PARAPHRASE
Y
A strictly confidential telegram of January 12, 1942 from the
American Embassy at Chungicing reads substantially as follows:
The Chinese Salt Administration's acting associate director general,
on American, has advised me that effective January 1, a Chinese Government
mononoly of salt was to be established. He said that the Chinese director
general of the Chinese Salt Administration had told him that the procosal
had been made to lower the position of the foreign officers of the
Administration to that of advisors, whereas, at present they had equel
authority and joint responsibility with the Chinese officers. Upon learning
the foregoing I directed an informal incuiry in regard to the matter to the
Minister of Finance. In reply I have been informed that the monopoly would
become effective from Jenuary 1; that members of the staff who are elective,
who are technical experts, end who have given service which is satisfactory
will be retained as members of the staff; and that foreign lonne originally
secured on the selt tax will not be effected by the monopoly.
It is my understanding that the Chinese Government assured British
and, I think, American interests which hold loans secured on Chinese salt
revenue that the Chinese Government did not envisage any substantial change
in the existing status of the Salt Administration which would result in P.
change of the status of foreign employees: the foregoing action of the
Minister of Finance, therefore, involves the question of good faith. Moreover it involves the question of a large outlay of capital to organize
R government monopoly of salt at a time when the finances of the Government
are in a state of disorganization and when inflation of the currency is almost
out of control.
eh:copy
1-14-42
126
CONFIDENTIAL
PARAPHRAS E
A confidential telegram of January 12, 1942 from the American
Embassy at Chungking reads substantially as follows:
Having been informed that Dr. H.H. Kung, Minister of Finance,
notwithstanding advice to the contrary given to him by government
advisers, is (proceeding?) with plans to institute monopolies, (I have
been informed that there was in fact being established effective January 1
a salt monopoly), I asked Dr. Kung informally for data in regard to
a reported monopoly of tobacco, and expressed concern on the part of
American tobacco interests, including American leaf tobacco interests.
In reply Dr. Kung said that although a cigarette sales monopoly is in
process of being planned, legislative procedure has not been finished
and the monopoly is not yet completed. He added that there is no
discrimination and that equal treatment is being enjoyed by all cigarette
merchants, both Chinese and foreign.
A large financial outlay will be necessarily incurred in connection
with the institution of monopolies, and I therefore have little doubt
that Dr. Kung's plans for monopolies are in fact related to the loans
from Great Britain and the United States which China hopes to receive.
If it is our intention to consider seriously a request for financial
assistance on the part of the Chinese Government, it would seem to me
that we now have an opportunity to say to the Chinese Government that we
are not prepared to ? costly, damaging, and restrictive monopolies
directly or otherwise.
FE:JMJ:NHS FE
eh:copy
1-14-42
1-13-42
127
C
0
P
Y
PARAPHRASE OF TELEGRAM RECEIVED
FROM:Fort
United
States
High
Milla
via N.
R. Commissioner to the Philippines, (Manila),
DATE: January 16, 1942, 8 p.m.
NO. : 22.
THE FOLLOWING IS FOR TREASURY INFORMATION.
7. Please record that my staff have verified by actual
count of large bills and sample count of small the following
sums: (U.S. paper currency given to me for safekeeping)
AMOUNT
NAME
Nederlandsche Indische
Handels Bank
$ 13,500
Bank of Philippine
Islands
175,000
Hong Kong and Shanghai
50,000
Banking Corporation
SAYRE
EMB
Copy:bj:1-16-42
128
C
0
P
Y
PARAPHRASE OF TELEGRAM RECEIVED
FROM: United States High Commissioner, (Manila) Fort Mills
DATE: January 16, 1942, 3 p.m.
NO : 21
This is transmitting a message for the Secretary of the
Treasury.
Six. It should be recorded, please, that the following
sume in Philippine currency pesos have been verified by sample
count of the small bills and by actual count of the large ones
which were given for safe keeping to me:
Property of
Amount in pesos
500,000
Hong Kong and Shanghai Banking Corporation
800,000
China Banking Corporation
215,000
Peoples Bank and Trust Company
58,000
Nederlandscheindische Handels Bank
4,035,000
Bank of the Philippine Islands
2,421,000
National City Bank
30,000
Philippine Bank of Communications
SAYRE
Copy:bj:1-16-42
Treasury Department
129
Division of Monetary Research
Date January 19 1942
To:
Miss Chauncey
From: Mr. Southard
: understand that Under Secretary
well is taking care of the matter
referred to in this cable.
130
PARAPHRASE OF TELEGRAM RECEIVED
FROM:Netherlands
American Consulate
Indies. General, Batavia, Java,
DATE: January 16, 1942, noon.
NO. 37.
RUSH.
The following is from Javasche Bank for the Treasury.
U.S. Treasury paper currency and checks, presented
chiefly in this country by American armed forces, are
purchased direct by Java Bank. Because the Bank cannot
risk loss of a shin and war risk insurance costs 10%
the problem of returning currency and checks to the U.S.
1 s expensive and difficult. The Bank is desirous of
finding 9 way to serve American armed forces AS cheaply
and efficiently as possible in financial matters. It is
suggested that:
Checke and currency be destroyed by Jave Bank.
Consular and Java Bank officiale to be present at time
of destruction. The total amount of checks and currency
destroyed at any one time to be cabled to Treasury Depart-
ment in order that credit in the U.S. may be obtained by
Jeve Bank. Treasury Department to have forwarded to it
certified lists of currency and checks which have been
destroyed; or an account v1 th Java Bank, Batavia, to be
opened by Treasury against which Navy and Army officers
may draw, or in order to make the return of paper currency
and checks to the U.S. unnecessary, appoint Jave Bank as
the Treasury Representative in Netherlands East Indies.
with
131
-3-
with the increase of American armed forces here,
this problem will become greater. Suggestions by the
Treasury Devartment will be appreciated by Java Bank.
(This is the end of bank message)
To avoid delays or even loss, I suggest immediate
action. I should like to be advised of any decisions
reached in the matter.
FOOTE
132
TREASURY DEPARTMENT
INTER-OFFICE COMMUNICATION
DATE January 16, 1942
TO
Secretary Morgenthau
CONFIDENTIAL
FROM Kr. Dietrich
Registered sterling transactions of the reporting banks were as follows:
Sold to commercial concerns
Purchased from commercial concerns
£37,000
£43,000
Open market sterling remained at 4.03-3/4, and there were no reported
transactions.
In extremely light trading, the Canadian dollar discount widened to 12%,
86 compared with 11-5/8% last night.
In ew York, closing quotations for the foreign currencies listed below
were as follows:
Argentine peso (free)
Venezuelan bolivar
.2370
.0516
.5775
.2065
.5250
.2675
Cuban peso
Par
Brazilian milreis (free)
Colombian peso
Mexican peso
Uruguayan peso (free)
Swiss francs may still be purchased at .2331 from Swiss commercial banks,
if the exchange is used for commercial and certain other specified purposes.
But the quotation on Swiss france for 'non-commercial' use has moved from .2375
to more than .2450 during the past week. Apparently, such francs are available
only from Swiss balances at present owned by non-residents of Switzerland. The
volume of transactions in non-commercial france is reported to be very small.
According to a Swiss bank's New York agency, the bulk of orders to purchase this
type of exchange GRS recently been coming from Brazil, Bolivia and Colombia. The
agency is of the opinion that many of the orders represent government requirements.
The Federal Reserve Benic of New York purchased 140,000 Swedish kronor in
New York at .2385 for account of the Central Bank of the Uruguayan Republic.
There were no gold transactions consummated by us today.
The Federal Reserve Bank of New York reported that the Bank of Canada will
ship $2,152,000 in gold from Canada to the Federal for account of the Government
of Canada, for sale to the New York Assay office.
133
-2The State Department forwarded a cable to us reporting that the Bank of
New South sales, Sydney, shipped $124,000 in gold from Australia to the American
Trust Company, San Francisco, for sale to the San Francisco Mint.
In London, spot and forward silver were again fixed at 23-1/2d and 23-9/16d,
respectively, equivalent to 42.67 and 42.78.
The Treasury's purchase price for foreign silver was unchanged at 35
Handy and Herman's settlement price for foreign silver was also unchanged at
35-1/84.
We made no purchases of silver today.
D
CONFIDENTIAL
134
BRITISH EMBASSY
WASHINGTON D.C.
January 16th, 1942.
Personal and Secret.
Dear Mr. Secretary,
I enclose herein for your
personal and secret information a copy
of the latest report received from
London on the military situation.
Believe me,
Dear Mr. Secretary,
Very sincerely yours,
(For the Ambassador)
R.I. Campbell
The Honourable
Henry Morgenthau, Jr.,
United States Treasury,
Washington, D.C.
135
Copy No.
BRITISH LOST SECRET
(U.S. SECRET)
OPTEL No. 18
Information received up to 7 a.m., 15th January, 1941.
1. NAVAL
A medium sized British merchant ship, independently routed, was
torpedoed near CAPE RACE.
2. MILITARY
LIBYA. In forward area bulk of the enemy are reported on the defensive on the general line MERSA EL BREGA-HAATEN BELCLEIBAT (20 miles South
South West of HERSA EL BREGA) - MAATEN GIOFER thence 13 miles alongside track
leading South to NARADA, Our forward troops are maintaining their pressure.
(corrupt group) HALFAYA from North Test and South East.
LALAY On 13th our withdrawal continued according to plan.
Railway TAMPIN-GENAS as out in 3 places by bombing on 12th, Japanese claims to
capture of Major General Gordon-Bennett are unfounded,
RUSSIA. The Russians have widened area of their advance South
Test towards BRYANSK, In CRIMEA the Russians are continuing to disembark troops
at FECDOSIA,
3. AIR OPERATIONS
WESTERN FRONT. 14th. 4 large barges near DUNKIRK were hit and
casualties caused to personnel of gun emplacements.
14th/15th. Aircraft were engaged in attacks on: HAMBOURG (227),
ENDEN 18, Aerodromes in HOLLAND 17, ROTTERDAN 11 and sea mining 15. 5 of our
hembers missing,
Ene y activity mainly confined to sea mining in Western approaches
and Themes Estuary
LIBYA. 12th/13th. Tellingtons successfully
bombed mechanical transport near EL AGHEILA.
13th/14th. TRIPOLI was bombed.
14th. Blenheims reported possible hits on 5,000 ton merchant
vessel (249) miles East KERKENAH ISLANDS. From foregoing operations 5 of our air-
craft are missing.
MALTA. 13th/14th. 22 enemy aircraft carried out 7 attacks over
a period of 12 hours causing slight damage to civilian property,
14th 51 aircraft made 6 attacks with result that TAKALI and
HALFAR aerodromes were rendered temporarily unserviceable.
136
-FAR EAST.
BURMA. 13th. Our aircraft damaged 2 enemy aircraft on
PRACHUAB KIRKIHUN aerodrome (SIAM 150 miles South of BANGKOK) and destroyed
a locomotive.
MALAYA. 12th/13th. 3 Catalinas (one of which is missing)
bombed SINGORA.
13th. 50 bombers escorted by 20 fighters attacked SINGAPORE
causing slight damage to R.A.F. and civilian property. 20 Buffaloes (of which
3 aircraft and 2 pilots are missing) intercepted them with result 1 enemy
bomber probably destroyed and another damaged.
RESTRICTED
G-2/2657-220:
137
M.I.D., W.D. 11:00 A.M., January 16, 1942
No. 602
SITUATION REPORT
I.
Pacific Theater.
Philippines: Fighting varying from intensive to desultory
engages our entire front. The enemy is attempting infiltration tactics
and is making full use of its air superiority. Fighters and divo
bombers are continuously strafing and bombing our artillery positions
and our front lines. The Japanese are systematically devastating the
entire countryside. Hawaii: No further reports of enemy activity have
been received. Malaya: The ground situation remains unchanged.
According to the press, Australian reinforcements have reached the
western Malayan front. Enemy air activity continues, with the press
reporting that hostile planes were driven away from Singapore, and that
Singapore based British planes have carried out attacks on Port Swettenham, which is now in Japanese hands. Burma: Air activity by both sides
continues. The press states that the British have bombed a Japanese
air base at Mesod on the Thailand-Burma border. Netherlands East
Indies: Dutch forces, according to the press, were fighting against
enemy invasion forces in the northern tip of Celebes Island. Hostile
air raids on Amboins have intensified. West Coast: No further reports.
II.
Eastern Theater.
Ground: Fighting continues on the central front west and
northwest of Moscow. The Russians claim to be pushing their advance.
The Germans report hard defensive fighting. The Germans claim that
Russian attacks at Taganrog have been repulsed. (No situation map
will be issued today.)
Air: The German High Command states that German aircraft
attacked Russian troops on the Kerch peninsula and also damaged three
Russian merchant ships in the Black Sea and in the Sea of Azov.
III. Western Theater.
The British Air Ministry reports that the R.A.F. raided
enemy shipyards last night, two shipyards at Hamburg being heavily
bombed and the yards and docks there left ablazo.
IV.
Middle Eastern Theater.
Ground: In the Halfaye area some local successes were ob-
tained by the British. British lines are now approaching the Pass from
both flanks. In the Agedabia-Agheils sector considerable enemy resistance is developing along the coastal strip. British troops are not
encountering such resistance along the southern flank of the Axis line.
Air: The Press reports that Axis air raids on Malta increased
yesterday. Hostile air activity is apparently increasing in the Tripoli-
tania-Cyrennica sector. The R.A.F. continued the bombing of ports, roads,
and supplies in the Axis rear areas.
RESTRICTED
TO,
Mrs. Klotz 138
Mrs.
wants an original
and / copy of
the marked Off
to
to her at
thegohouse
Sent 1/21/40.
From: LIEUT. STEPHENS
139
THE UNDER SECRETARY OF THE TREASURY
WASHINGTON
January 17, 1942
FOR THE SECRETARY:
Cabinet meeting - January 16, 1942
The President said that he was glad to welcome Donald Melson in
like new cauncity at the Cabinet table. he had a big job before him,
but he had confidence in him to do it end do it well.
Then he paid that he had a letter before him from Mrs. Morgenthau
with n number of pictures attached as to what might be done in preserving historical sar records. He would like each department and
agency to give some thought to this matter. During the last war, he
and given g young painter a commission in the Navy as an ensign and
sent him abroad to paint pictures of the United States flent at war.
Ee printed a number of pictures which are now displayed se A collection
in some office in the Government service. name of which I did not get.
He said that he would like to put someone in charge of it to follow
through with all of the departments. I suggested that Ned Bruce would
be the proper person to oversea it. The President said he thought
that was a good suggestion and he would refer Mrs. Korgenthau's letter
to Ned Bruce with instructions to carry out the idea. He wanted all
the departments to cooperate an he was very much interested in it.
Secretary Hull said that he had the menorendurs on the French
matter and I assume he referred to the Free French occupying the islands
off the const of Canada. The President said that he and Churchill
had discussed the memorandum and had ngreed to it, and Churchill had
said he believed he could take CATE of the matter when he got back to
London by talking to DeGaulle.
Secretary Hull said be had under consideration the matter of the
defence of Liberia. We have just about completed a large airfield in
Liberin and the mention now comes up of protecting this airfield from
military standpoint and plan from an operating standmoint. The
President taked Mr. Hull to get together with the Army and Navy and
make a joint recommendation 0.0 to what needed to be done in this area.
TOPDEFENSE
Secretary Hull then noiced the President if he had seen the high
utch official from Bateria. He said that he had not, but he and heard
bout him and thought Me had better see him before many days. There
BUY general discussion between the President, Secretary Hull, and
President Wallace as to the attitude of the Dutch towards us. The
-2 -
140
President said that the Dutch were not pleased at all with our actions,
particularly the central command in Wavell and Hart. The President said
that it was just necessary that he act on many matters without straining
out cables between him and Queen Wilhelmina in England. They were just
too slow to act for him to take these matters up with them first.
I had nothing to report other than the sale of Defense Savings Bonds,
which the President was very much interested in. He was very much pleased
to find that we had sold $480,000,000 of these bonds the first fifteen
days of January, almost as much as we had sold during the whole month of
December.
Secretary Stimson had nothing to report.
The Attorney General had nothing to report but said that he would
like to see the President after the conference on the question of some
nominations and he also had prepared for the President a memorandum on
the ships he had asked about.
Secretary Knox said that one of his officers had come to him with
a report that Mr. Currie had cleared with the Army the question of sending
a full squadron of planes and their crews to China to protect the Burma
Road, and the Navy was prepared to go along, but he just wondered if the
matter had been cleared with the President. He also raised the question
as to the route that should be taken from here to Burma. Secretary
Stimson said that he had not heard of it and he questioned as to whether
that had not been discussed pretty far down the line. It had not reached
the General Staff. The President told him he did not want 1 to go through
until discussed at the joint staff meeting and to let him have a recommenda-
tion after the joint staff had approved it.
The Postmaster General had nothing to report.
Secretary Ickes said that it had been necessary for him to divert
tankers from the East to the West Coast and there might be a temporary
shortage in the East. There WAS also a discussion of how many tankers
had been turned over to England. The President wanted to know how many
tankers were coming off the ways. Secretary Ickes said he would get this
information and report on it. There was a general discussion as to whether
or not wooden barges could not be made into tankers and built on the Great
Lakes. This question is to be looked into and a report made.
Secretary Ickes brought up the question of the Alaska road. He
was wondering if it would not be a good thing to go ahead with this at
this time for military reasons, for there were many times during the
year that it was rather difficult for ships to get in to certain ports of
Alaska because of heavy fogs, that the road when completed might come in
very handy for sending supplies to military posts in Alaska. Mr. Wallace
was very familiar with it and thought the road essential at this time,
but he questioned its proposed location. He thought the matter should be
studied very carefully before we go ahend with the proposed plan. The
President said he would like for Secretary Ickes to discuss the matter with
Mr. Wallace and also ascertain the military value of the road from Secretaries Knox and Stimson and let him have a report on it.
141
3
Secretary Wickard then raised the question of the Japanese situa-
tion California in its relation to the growing of vegatables for the
coastal cities. He said that he understood that the military authorities
were going to put the Japanese people outside of the military areas.
If this is done, it will be necessary to replace these Japanese laborers
with other laborers to grow vegetables for the coming season. He said it
was a very serious matter not only from the standpoint of supplying food
for that area, but also there were political complications involved. He
said he had written a letter to the Secretaries of State, Treasury, War,
Navy, and Labor asking them to appoint representatives to attend a conference in his office at 2:30 Monday, to discuss the problem. (I am
advising Mr. Wickard that I have appointed Mr. Bernstein of the General
Counsel's office to represent the Treasury.)
Mr. Wickard then discussed the problem of supplying natural rubber
in the Western Hemisphere. He said that he did not think they could meet
the present problem from this source as they could only grow about 10,000
tons by 1945. Secretary Jones said that he did not believe it was a
matter of relative importance in our own supply and that we should go
ahead with the synthetic plants which probably could produce 400,000 tons
in the course of a year or two. The President raised the question as to
whether all of these plants should not be Government-owned, because if
they are privately owned and they are not able to meet the foreign
prices, it will immediately bring up the question as to whether or not
Congress should put on a tariff on imports to bring the foreign prices
up to domestic prices. Secretary Jones agreed to look into this matter.
Mr. Wickard then discussed the supply of oils and fats for the next
year. He said that he believed they had gotten just about all the oils
and fats they would be able to get. Possibly the increase in hogs might
add to this, but not in a great quantity. He raised the question as to
whether or not he should authorize an increase in cotton in order to get
cotton seed. The President and the Vice President agreed that this
should not be done as we are now raising too much cotton.
Secretary Jones said that the national income for the calendar year
amounted to $92 billion, which is about $16 billion above last year.
He thought that approximately one-third of the increase was due to higher
prices and two-thirds to the increase in the volume of production. He
said that he would like to comment a little further on Secretary Wickard's
rubber problem. He thought it might be possible to produce rubbar synthetically at slightly less than 30$. A man had come in to see him a few
days ago who had produced good looking rubber, as far as he could tell,
from wood, grain, and coal, and that he could produce it in any volume
at 27st. He said he asked the man if he were sane and the man said "yes"
he believed he was.
4-
142
Secretary Perkins said that her office had given a great deal of
attention to the problem of labor supply and believes that by the end
of this calendar year there will be a definite shortage of labor. This
subject then involved a general discussion of the labor supply, longer
hours, CCC camps, etc. Mr. Walker raised the question as to whether
he should put the Post Office on a 48 hour week. He said if he did,
it would require legislation and he wondered whether they ought to pay
time and a half for anything beyond the 41 hour a week. I said that was
a precedent, that I believed the Government should not pay time and a
half for any overtime. A Government employee's day is not over until
he finishes his day and he should not be paid for overtime any more than
compensatory leave now and then when the work will permit. It was
pointed out that many of the Government organizations are unionized and
have been able to have legislation fixing their hours of work and provide
for overtime pay when they work beyond those hours. The Post Office is
one of these, also, the Bureau of Engraving and Printing, and the Govern-
ment Printing Office. The President said that he would like to look into
the question, but he apparently had no objection to the Post Office going
on a 48 hour a week, even though it required legislation.
He said he felt that there should be 350 CCC camps, for the purpose
of maintaining the forest and fighting forest fires, and he had approved
$100,000,000 for these camps. He brought this up because of its bearing
on the supply of labor.
Mr. McNutt had nothing to report.
Mr. Nelson discussed the shortage of copper and said that he would
like to bring some old mines back into production. One in the northern
part of Arizona required the use of water from one of the Government's
dams which might infringe upon the water rights of certain irrigation
districts. The President said that he would like to increase the supply
if it could be done and asked Mr. Nelson and Mr. Ickes to work it out
between them. Mr. Ickes said he was familiar with it and was in agreement with Mr. Nelson.
MEMORANDUM
143
Re: Telephone conversation between
Secretary Morgenthau and
George Buffington, January 17. 1942
The Secretary telephoned me this morning to know the
date that the Disney film would be ready for release to motion
picture theatres. I advised him that in accordance with our
agreement with Walt Disney, he would provide the production
and 1,000 extra prints on or before February 15. In a
telephone conversation with Mr. Disney yesterday he said he
hoped they would be available for distribution during the
week prior to February 15.
I told the Secretary Mr. Disney planned a preview of
the film here in the Treasury February 3. I also told him
thought it highly desirable that some representative of the
I
Treasury see the context of the film before it was released
to Technicolor in order that any minor changes might be made
without loss of time. This would necessitate someone going
to California shortly for a day.
The Secretary raised the question as to how we know
that the film will be shown at all important points 28
promptly as possible. I told him in a conference with Messrs.
Disney and Mollett I had been assured that once the picture
was approved by the War Activities Committee, it would be
shown in approximately 12,000 key theatres without delay.
At that same conference I asked Mr. Mollett what assurance
we had that all the theatres would show it. He stated that
the Committee had a regular schedule for exhibition and a
method of policing the member theatres to ascertain that the
picture had been shown. Disney also assured me that there
would be no trouble with distribution even though there were
no effort on the part of the War Activities Committee. As I
understand it, a majority of that Committee is composed of
independent operators.
The Secretary suggested that I contact the president
of the Motion Picture Operators Union early next week requesting the cooperation of individual operators to see that the
picture is running and report to us direct any failure of
exhibitors to show the picture promptly and pass it on to
other theatres. He emphasized the fact that unless some such
measures were taken, we would have failed in our objective.
It was suggested that possibly an arrangement might be worked
out with the President of the Union to make daily reports
direct to us. The Secretary asked that I be ready to report
to him on the matter when he returned to Washington on Thursday.
144
-2-
On thinking over my talks with Mollett and Disney
on this same subject, I question whether we would not be in
a safer position by relying upon the assurances we now have
for prompt exhibition than might possibly be the case if we
contacted the Union. This effort on our part might be misunderstood and possibly retard the cooperative attitude
which we now have on the part of the committee.
GIS.
145
TREASURY DEPARTMENT
WASHINGTON
JANUARY 17, 1941
DEFENSE SAVINGS STAFF
MEMORANDUM TO:
MRS. KLOTZ
FROM:
MR. EUGENE W. SLOAN
The following is a very brief resume of instructions
and questions raised by Secretary Morgenthau in a telephone
coversation with me, Saturday, January 17, 1942 at about
11:00 A. M.
(1) The Secretary is disappointed in display ad-
vertising matter in retail outlets in the vicinity of his
vacation headquarters in Florida. He wants us to work out
a olan which can be used on E test in some selected city
whereby stamps will be on sale wherever there is a cash
register, with signs prominently displayed on or near
each such cash register, and with one or more posters
indicating that stamps are on sale right there. He suggested that we possibly could work something out with the
National Cash Register Company.
(2) Several weeks ago in 8 meeting in the Secretary's
office, Frank Isbey, State Chairman for Michigan, urged
production of a flag which could be used by plants which
were participating on a really high-percentage basis in
ROBDEFENSE
BUY
146
-2-
our Payroll Allotment Plan program. The Secretary asked
just where this stands and said that he wants us to stop
fooling around and have some flags actually made before
he returns. He does not just want simply an approved
design, but he wants the actual flags available.
(3) The Secretary asked what progress had been made
in connection with establishment of Payroll Allotment
Plans by newspapers for their own employees.
This memorandum is furnished to you at the request
of Secretary Morgenthau for preservation in his diary.
147
TREASURY DEPARTMENT
WASHINGTON
January 17, 1942
DEFENSE SAVINGS STAFF
MEMORANDUM TO:
FROM:
SECRETARY MORGENTHAU
EUGENE W. SLOAN
The following is a brief preliminary report on the
instructions given me by telephone this morning.
(1) I talked with Sydney Mahan, our Associate Information Director, who happens to be in New York this
morning, and he will see the National Cash Register people
immediately and suggest that perhaps they can help us to
work out a test in their own headquarters, city of Dayton,
Ohio. Mr. Mahan will, of course, cooperate with them in
preparation of the necessary signs for the cash registers
and posters for the retail stores, hotels, barber shops,
and other outlets.
(2) A design for a flag based on the Minute Man
surrounded by thirteen stars was submitted to Professor
Odegard recently and he has suggested that a trial be given
to the same design with forty-eight stars. Mr. Mahan is
of the opinion that the thirteen stars will be better and
as instructed I am trying to get this settled immediately
so that we can proceed with the purchase of flags and have
them available at the earliest opportunity.
PORDEFENSE
BUY
148
-2(3) Up to this moment I have been unable to get
any definite information as to the success of Mr. Howard
Stodghill's work with the newspapers on Payroll Allotment
Plans for their own employees. I do know, however, that
the larger newspapers are included among the firms which
are being solicited in our "over-all" drive for installation
of Payroll Allotment Plans throughout the country. A
subsequent report giving names of some of the papers and
other interesting data will be forwarded to you shortly.
P. S.
I have just been informed by telephone from New
York that the following newspapers definitely
have Payroll Allotment Plans installed.
1. New York Times
2. World Telegram
3. Herald Tribune.
149
Ford Motor Company
PAY ROLL DEDUCTION PLAN
FOR PURCHASE OF UNITED STATES DEFENSE SAVINGS BONDS
To provide o means by which Ford Motor Company employees may
conveniently purchase, on on installment basis, United States Defense
Savings Bonds, Series E, described in the enclosed Government leaflet, the
Company will cooperate with and assist employees by making purchases
on their behalf out of funds authorized by employees to be deducted from
their wages or salaries, effective January, 1942, in accordance with details
outlined hereinafter
The Pay Roll Deduction Authorization, Form 282, attached hereto,
authorizes deductions from each pay for the purchase of bonds of specified
denomination Employees who desire to join the Plan should fill in and
sign the authorization and return it to their foreman within three (3)
days. The face of this Authorization must be completely filled in, including employee's correct name and address, as well as the correct designation (Mr., Miss or Mrs.) for both employee's name and that of the COowner or beneficiary.
1. The minimum deduction under the plan is $1.00 per week Larger
deductions may be authorized in multiples of $1.00, or for issue price
of bond. If deduction cannot be made because amount of pay due
is insufficient, then deduction for that pay period will not be made
2. Bonds will be purchased once each month for those employees whose
deductions permit and the bonds sent by registered mail by the agent
of the U. S. Treasury Department to the address designated on the
authorization The Company will advise the employee at time purchase of the bond is made for his account and Company should be
advised in case of any error.
3. The authorization may be cancelled by the employee at any time
Accumulated deductions then standing to his credit will be refunded
as soon after receipt of notice of cancellation as practicable
4. Employees who desire to withdraw from the Plan, or change the
amount of deduction, or maturity value of bonds to be purchased,
must cancel their authorization and may not rejoin the Plan for o
period of three months from date of cancellation
5. Changes in address, or name of co-owner or beneficiary, may be made
at any time by executing a new Payroll Deduction Authorization.
6. No interest will be paid by the Company on amounts deducted and
withheld for purchase of bonds.
7. No partial withdrawals may be made from accumulated deductions,
nor will loans be made against them.
8. The employee's payroll deduction authorization will continue until
cancelled or changed, but is automatically cancelled when employee
leaves the service of the Company, in which case, it is the employee's
obligation to call for and receive the balance in his account, if any.
In the event of employee's death the accumulated deductions will be
paid to the co-owner or beneficiary.
The Company assumes no responsibility under this plan after the
bonds have been purchased and paid for and the employee notified
of the purchase. It will, however, assist in having errors corrected.
Since the Company will advise the employee each time a bond is
purchased, no periodic statements will be issued as to deductions
made or balance of accounts.
10. Any matters in connection with this Plan are to be taken up with
the Pay Roll Department, Gate 2, at the Rouge Plant, or Cashier's
Office at other locations.
The Plan is subject to revision or discontinuance at the discretion
of the Company.
Ford Motor Company
December, 1941
FORM 202
150M 12-41
PAY ROLL DEDUCTION AUTHORIZATION
FOR
UNITED STATES DEFENSE SAVINGS BONDS
(TYPE OR PRINT INFORMATION PLAINLY)
Check
Employee
which:
Co-owner or
Beneficiary
Mr.
Mr.
Miss
Miss
Mrs.
FIRST NAME
MIDDLE INITIAL
LAST NAME:
Mrs.
FIRST NAME
Address
Mailing
Address
MIDDLE INITIAL
LAST NAME)
NUMBER AND STREET
(NUMBER AND STREET
(STATE)
(CITY)
(STATE)
(CITY)
DEDUCTION FROM EACH PAY $
(Minimum $1.00 per week)
MATURITY VALUE OF BONDS AUTHORIZED $
I hereby authorize Ford Motor Company to make deductions from my wages or salary beginning of once, in the amount indicated above,
each time the amount required for the purchase of bond(s) designated has accumulated to my credit, to purchase and have delivered to me by the
U. S Treasury Department, United States Defense Savings Bond(s), Series E. with maturity value shown It is understood that no interest is to be paid
by Ford Motor Company on my occumulated deductions and that Ford Motor Company has no responsibility in respect of the bonds purchased under this
plan after they have been purchased for me. In the event of my death, Ford Motor Company shall pay to the above designated co-owner or beneficiary
the amount of accumulated deductions to my credit which have not been expended for the purchase of bonds. This authorization is to remain in effect
until cancelled by me in writing.
and
Date
Employee's Signature
CANCELLATION OF PREVIOUS AUTHORIZATION
I hereby request cancellation of my previous Pay Roll Deduction Authorization to be effective with the payroll period
(date).
ending
I AM WITHDRAWING FROM THE PLAN AND REQUEST THAT ANY AMOUNT
REMAINING TO MY CREDIT SHALL BE:
Check
maturity value
Used to purchase a bond of $
Refunded
and any excess refunded.
Proper
Blocks
I AM CHANGING (PER REVISED AUTHORIZATION):
Name of
Address of
Regular deduction amount
Date
Owner
Co-Owner
Beneficiary
Maturity value of bonds to be purchased
Employee's Signature
150
TREASURY DEPARTMENT
STANDARD FORM No. 14 A
WASHINGTON
APPROVED IT THE PRESIDENT
MARCH 10. 1326
TELEGRAM
CHARGE TREASURY DEPARTMENT. APPROPRIATION FOR
Official - Expenses of Loans
OFFICIAL BUSINESS-GOVERNMENT RATES
(The appropriation from which payable must be stated on above line)
2-1411
will H. Hays
President, Motion Picture Producers and
January 17, 1942
Distributors of America, Inc.
28 West 44th Street,
(
New York
NY
at the Treasury feel we have lost a real friend and helper in Carole Lombard stop
was on active service selling Defense Bonds in Indianapolis and sold two million
She dollars worth for her country stop She was always glad to respond to any call the
Government made upon her and her spirit of service was an example and an inspiration
to many others stop Her loss must be an irreplaceable one to your colleagues and to the
profession which she honored.
Henry Morgenthau, Jr.
Secretary of the Treasury.
FX/hkb
0 Miss MacDonald, Mr. Shaeffer,
and Room 463
TREASURY DEPARTMENT
151
INTER-OFFICE COMMUNICATION
DATE January 17, 1942.
TO
Secretary Morgenthau
E. H. Foley, Jr.
For your information, my opinion was asked by
the Defense Savings Staff as to the enforceability
as a contract of the form of pledge for the periodic
purchase of defense bonds.
In my opinion this form of pledge is not
enforceable as a contract or otherwise.
A telegram was sent at the suggestion of
Peter H. Odegard to allay doubts which had been
raised by lawyers in the Portland, Oregon office of
the Defense Savings Staff as to the legal effect of
the pledge. A copy of the telegram as attached.
i...7h.
Enclosure
152
January 17, 1942 10:45 a.m.
Ray Conway
State Administrator
Defense Savings Staff
720-23 Bedell Bldg.
Portland, Oregon
In reply to your inquiry concerning form of pledge for
regular investment in defense savings bonds it is my
opinion that such form is not a pledge enforceable as
a contract or otherwise by the United States against
the pledgor for the amount of the pledge indicated
thereon but is merely a promise without legal
consideration to purchase periodically defense bonds
so long as pledgor is financially able to do so. I have
given a formal opinion to the Secretary of the Treasury
to this effect.
E.H. FOLEY, JR.
General Counsel
Treasury Department.
153
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE January 17, 1942
TO
FROM
Sub ject:
Secretary Morgenthau
Mr. Hease
Number of Firms and Employees Covered by Payroll
Savings Plans
1. On January 10, 1942 payroll savings
plans were in effect in 9,939 firms, according to
reports from the Defense Savings Staff's State
Administrators in 44 States and the District of
Columbia. The number of employees covered was
10,308,495. A breakdown of these figures by
States appears in the attached table.
2. The figures snown in the table are known
to be incomplete. They do not include State
county and local governmental units in some States
because of a misunderstanding on the part of some
State Administrators. The Defense Savings Staff
has sent an instruction telegram to the State Administrators asking that all such units be included,
however, and they will appear in the totals submitted as of today.
3. No satisfectory date were received from
the State Administrators in Delaware, Indiana,
Louisiana and Tennessee, and figures for these
States could not be included in the table. The
Defense Savings Staff has sent follow-uo telegrams
to these Administrators, however, and expects to
receive data for these States early next week.
Attachment
154
Number of Firms and Number of Employees
Participating in Payroll Savings Plan
January 10, 1942
As reported by the Defense Savings
Staff's State administrators
State
Number
Number
of
of
firms
employees
Colorado
120
44,347
11,851
11,848
716,985
68,212
Connecticut
296
258,666
Celifornia
30
86
1103
Delaware
.
District of Columbia
132
Georgia
233
Ideho
Illinois
26,077
33,960
139,425
29
Floride
15,406
60,523
54
69
Indiana
Kentucky
Louisiana
Kaine
Karyl and
214
18,725
80,065
77
50,000
12
.
Kansas
.
Iowa
85
436
Michigan
Minnesota
458
Missouri
52,273
115,009
419,573
45
Aassechusetts
Mississipoi
.
Arizona
Arkenses
41
.
Alabama
1,173,191
169,732
524
16,855
228,523
65
520
Nontana
42
24,207
Nebraska
30
98,800
Nevada
92
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dekota
Onio
Oklahoma
Oregon
398
40
3,060,640
115,240
1,649
89
2,329
770,000
63,354
44
287
240
65,283
54
Pennsylvania
Rhode Island
473
South Dakota
191
South Carolina
7.436
29,675
544,019
7,101
24
1,011,546
120,890
121
35,862
10,306
77
Tennessee
Texas
Utah
Vermont
.
61
79
Virginia
124
Washington
223
West Virginia
Wisconsin
3
94
Wyoming
Total
office of the Secretary of the Treasury
Division of Research and Statistics.
Data not available.
125,684
13,387
26,463
168,090
126,921
2,775
150,390
962
8
9,939
2,837
10,308,495
January 17, 1942
-
155
FIELD ORGANIZATION
News Letter
DEFENSE SAVINGS STAFF
TREASURY DEPARTMENT WASHINGTON, D. C.
JANUARY 17, 1942
NUMBER 35
Come on
LET'S ALL TAKE A PLEDGE!
The Committee of Employees of Philadelphia Industries sponsored the
above appeal for universal participation in the Defense Savings Bond campaign to protect the freedom we cherish. A country-wide pledge campaign
will be launched by the Treasury in February.
News Letter
News Letter
Your Dime's In The Army Now
"THE BUDGET AHEAD"
Sunday, January 4, 1942, SECRETARY MORGENTHAU broadcast & challenging
message on "The Job Ahead" (quoted on Pages 3 and 4 of News Letter for January 10).
befense
The next day, PRESIDENT ROOSEVELT brought home to the Imerican public an
outline of what the job will mean this coming year in dollars and cents.
BUY A
SADER.
The following excerpts suggest the part Defense Bonds play in the budget
problems
"We must provide the funds to man and equip our fighting forces.
We must provide the funds for the organization of our resources. We
must provide the funds to continue our role as an Arsenal of Democracy
"Nothing short of a maximum will suffice. I cannot predict ultimate costs because I cannot predict the changing fortunes of war. I
can only say that we are determined to pay whatever price we must to
preserve our way of life,
"Total war expenditures are now running at a rate of two billion
dollars a month and may surpass five billion dollars & month during
Ordnance Private Henry Morgenthau Yardley
in the Baltimore Morning Sun, January 8, 1942.
IN THIS ISSUE
LET'S ALL Take A Pledge - Page 1
PRESIDENT Roosevelt Outlines the Budget - Page 3
FROM The Field - Pages 4, 5 and 6
AMERICANS All - Pages 7 and 8
the fiscal year 1943. These estimates reflect our determination to
devote at least one-half of our national production to the war effort.
ment
"We all know that the war will bring hardships and require adjust-
"I appeal for the voluntary co-operation of the consumer in our
National effort. Restraint in consumption, especially of scarce products, may make necessary fewer compulsory measures.
"Hoarding should be encouraged in only one field, that of
LABOR Speake - Pages 8 and 9
Defense Savings Bonds.
SALES PROMOTIONS From Here And There - Pages 9 and 10
--Franklin D. Roosevelt
HATS Off To Page 10
PATRIOTS From Eight to Eighty - Pages 11, 12 and 13
EDITORIALLY Speaking - Page 13
PAY ROLL Savings - Pages 14 and 15
TO THE LADIES - Pages 16 and 17
January 5, 1942.
SPECIAL Organizations - Page 18
ON The Air - Page 19
PICTURES of The Week - Page 20
-2-
-
News Letter
News Letter
Your Dime's In The Army Now
- - 300000 AHEAD"
Sunday, January 4, 1942, SECRETARY MORGENTHAU broadcast a challenging
message on "The Job Ahead" (quoted on Pages 3 and 4 of News Letter for January 10).
Defense
The next day, PRESIDENT ROOSEVELT brought home to the American public an
outline of what the job will mean this coming year in dollars and cents.
RATIONS for
BAY A
The following excerpts suggest the part Defense Bonds play in the budget
#50
problem:
"We must provide the funds to man and equip our fighting forces.
We must provide the funds for the organization of our resources. We
must provide the funds to continue our role as an Arsenal of Democracy
"Nothing short of a maximum will suffice. I cannot predict ultimate costs because I cannot predict the changing fortunes of war. I
can only say that we are determined to pay whatever price we must to
preserve our way of life
CHARGE
"Total war expenditures are now running at a rate of two billion
dollars a month and may surpass five billion dollars a month during
the fiscal year 1943. . These estimates reflect our determination to
devote at least one-half of our national production to the war effort.
Ordnance Private Henry Morgenthau Yardley
in the Baltimore Morning Sun. January 8. 1942.
IN THIS ISSUE
ment
LET'S ALL Take A Pledge - Page 1
PRESIDENT Roosevelt Outlines the Budget - Page 3
FROM The Field - Pages 4, 5 and 6
AMERICANS All - Pages 7 and 8
"We all know that the war will bring hardships and require adjust-
"I appeal for the voluntary co-operation of the consumer in our
National effort. Restraint in consumption, especially of scarce products, may make necessary fewer compulsory measures.
"Hoarding should be encouraged in only one field, that of
LABOR Speake - Pages 8 and 9
Defense Savings Bonds.
SALES PROMOTIONS From Here And There - Pages 9 and 10
--Franklin D. Roosevelt
HATS Off To - Page 10
PATRIOTS From Eight to Eighty - Pages 11, 12 and 13
EDITORIALLY Speaking - Page 13
January 5, 1942.
PAY ROLL Savings - Pages 14 and 15
TO THE LADIES - Pages 16 and 17
SPECIAL Organizations - Page 18
ON The Air - Page 19
PICTURES of The Week - Page 20
0
-3-
News Letter
News Letter
FROM THE FIELD
FROM THE FIELD
Illinois (Continued)
Walter D. Bellingrath, Mobile, Ala. business man, appointed as chairman
of a special committee to promote sale of bonds and stamps among employers
and employees engaged in the bottling and distribution of soft beverages,
said he
could
carry "the gospel of Defense Bonds into the most remote sec.
tions
of the
county.
Betty Beckstein (in the picture at the
right) of the Journal-Transcript, Peoria,
III., selling Defense Stamps every day except Sundays and holidays.
San Francisco, Calif. James G. Say 11,
State
calledfor
at Northern
Palace
Island, Ill. reports Defense Stamp sales
gran
in the northern part of this Pacific
state.
Defense Savings Staff held its first state-
Postmaster John J. McCarthy of Rock
average $1,500 daily.
together the the Hotel, California December 30.Administrator
committee
of 60 who have assumed
responsibility for the Defense Savings Pro-
Va. V. Reagan, Jr. of the
Treasury Dept.: Administrator
Sayth; Chairman Edward H. Heller; Co-Chairman Fred A.
The women's organisation of the Indiana
wide meeting at the Claypool Hotel in
Indianapolis, Jan. 8. Promotional plans were
outlined to the more than 100 delegates by
Chairman Mrs. Oscar A. Ahlgren of Whiting.
"I thought the stamp and bond windows
were busy prior to Christmas, Postmaster
Janes R. Wilson of Sacramento declared,
*but all day yesterday (Jan. 2) we had long
lines of persons waiting to buy shares in
the defense of their country.
Vickett.
STATES
Ottumwa, Iowa (population 28,057) has
set a goal of at least $500 in Defense
Stamps to be sold every day.
In Fresno, the Wine Institute has
announced that American wine growers have
(
started an "Invest for Victory campaign.
CASHIE
At the Iowa State Committee meeting in
Burlington on January 6, farmers--V do not
have regular incomes out of which to make
Defense Bond sales in Denver, Colo. leaped to $3,705,425, in December,
an increase of 323 per cent over November sales, a total which State Administrator Nicholas declared to be even greater than he had expected.
systematic purchases of bonds-were urged to set aside a certain plot of
ground and use the crops raised thereon to buy bonds. The same plan could be
applied to chickens and livestock.
Defense Bonds went on sale in Waterbury, Conn. schools Monday, Jan. 13.
18,000 handbills, explaining the method of purchasing bonds, have been distributed under the supervision of Superintendent Thomas J. Condon.
agreed to install pay roll savings plans for the purchase of Defense
In one day. 20 large Baltimore, Md. firms, representing 40,000 workers, Bonds.
1
"Minute Men" met January 7 in Elks Home to receive instructions for
canvassing
40,000 workers in New Bedford, Mass. relative to pay roll savings
plans.
Newsboys of the Evening Star, Washington, D. C., sold 193,000 ten-cent
Defense Stamps between December 5 and January 9, with Billy Burton heading
the honor roll - record 4,684 stamps.
Missouri, first state to be organised for the sale of Defense securities, of the
is holding a series of county meetings, January 1-16, where members will
In Georgia. school children by the hundreds are foregoing the lellipops
and knick-knacks
they usually buy and using their nickels and dimes for
Defense
Stamps.
Defense Savings Staff and county agents of the Department of homes. Agriculture
Defense Bond Week is being observed in Springfield and Central Illinois,
Jan. 11-18, with a goal of $500,000 not for the seven days' drive.
N. M.
has setChairman
a DefenseArthur
Prager. Bond goal of $2,400,000 for
1942,Bernalillo
recently County,
announced
County
co-operate on plans for bringing the Bond program into farm
With all committees named, an all-out Defense Bond drive and got Catholic, under way every
"We're digging in," said a Defense spokesman in Chicago. as 13
State Street stores made limit purchases of $50,000; "We are
January
5 in Bayonne,
N.J. "Jew
creed
and white
andand Gentile, Protestant in the preserva-
race,
religion, black. have joined
tion of democratic ideals and the defeat of dictatorships.
dedicating ourselves to the task of turning dollars into weap"
one that will snash Hitlerism forever."
ID
News Letter
News Letter
FROM THE FIELD
AMERICANS ALL
All-out mobilisation of dollars and dimes for victory was ordered on
New Year's Day in Rochester, S. I.
A bargain-counter rush at stores in New York City witnessed the sale of
at least $468,701 in bonds and stamps the first four days after New Year's
Between November 4 and December 29, employees of the Mohawk Carpet
Mills, Ameterdam, N. purchased $216,175 in Defense Bonds.
With the hearty endorsement of Archbishop Schrembs, Catholic schools
in the Cleveland, Ohio diocese opened an active Defense Bond campaign after
Christmas. In the state-wide rally at Cleveland. January 6, representatives
from
all branches of community life vied with each other in pledges for
intensive work.
On December 29, with two days to 60, Spartanburg, S. C. passed its
$1,000,000 Defense Bond and Stamp goal set for 1941.
A Memphis, Tenn. woman recently won a $25 bond for the best essay on
"Why I Should Buy Defense Bonds." Her essay began;
"I an selfish. I an lazy. I am intolerant. Therefore, I should
buy U. S. Defense Bonds." It ended: "So what?
In any other
system of government, I'd most likely be liquidated as non-productive and non-essential. In buying bonds, I an justifying my
existence and assuring myself of a world to live in. Any Bonds
Today?"
The Boys' M Club of Mabton, Wash. High School devoted the proceeds of
its Christmas holiday dance to Defense Stamps.
Follow-up. Hagerstown, Md. set a goal of $35,000 in a week's special
Now that America is in World War II, all the way, the universality of
our racial heritage becomes more than ever significant.
From Plymouth Rock to Ellis Island, "Americana" have come from the four
quarters of the globe, and in this great national emergency they are all behind the Defense Savings Program for victory.
Reports from "Our Foreigners" are legion - the following only scratch
the surface:
Idun Lodge, Sons of Norway, Madison, Wis., votes to purchase $750 in
U. S. Defense Bonds.
The Hungarian Women's Reformed Sick Benefit Society, South Bend, Ind.,
has appropriated $300 of its funds for the purchase of Defense
Bonds.
Omina 53, Polish National Alliance, Schenectady, N. Y., already holds
more than $12,000 in Defense Bonds.
Members of the St. George Greek community in Springfield, Mass., recently subscribed to more than $3,000 worth of Defense Savings
Bonds in ten days.
The Lithuanian Citizens political club of Waterbury, Conn., has
voted a third $10,000 Defense Bond.
In Cincinnati, Ohio, German-speaking members of the American Citizens
League helped raise $800 for Defense Bonds in a fortnight.
campaign to buy Defense Bonds and Stamps. (See page 7. News Letter of Jan.
St. George's Lodge 66, Croatian Fraternal Union, Youngstown, Ohio,
votes A thousand-dollar subscription to Defense Bonds.
ed $188,000. One man bought 1,300 in stamps and then took a day off to
paste them in his book. At the end of the campaign week, sales for Washing=
ton County amounted to $210,503 in Stamps and $236,212 in Bonds. November
bond figure for the county was $30,000.
The Italian Workmen's Club, Madison, Wis., announces through its
President, Theodore Matranga, a $1,000 purchase. "We want
President Roosevelt to know that we are behind his program
100%," said Matranga. Many of the club's membership have
3.) The sights were set too low. At the end of five days, sales had reach-
Correction. News Letter No. 32 for December 27 carried a story about
the
Burlington
Council under the heading of Iowa. This should have
been Burlington,Youth
Vermont.
The Vermont News Letter for January 3 carries as its alogan a quotation from the recent editorial in Life by Henry R. Luce:
"Are we straining every last nerve to see that help, arms.
material
they die reach our defenders as soon as possible?
WILL THEY DIE THROUGH ANY FAULT OF OURST"
If
relatives in Italy, but they want the U. S. to crush the
Axis powers.
Harry J. French, past commander of the sixth district of the American
Legion, Sacramento, Calif.. said January 3, that "Japanese resi-
dents of the Florin district are participating wholeheartedly in
the Defense Savings Program."
In The Dalles, Ore., the postmaster spent the afternoon counting 5600
pennies for Defense Bonds turned in by the baby daughter of a
Japanese restaurant keeper.
News Letter
News Letter
LABOR SPEAKS
AMERICANS ALL
(Continued)
(Continued)
One hundred and ten employees of the AMERICAN VELVET COMPANY, New London,
Bohdan Chmelnicky Branch No. 137, Ukranian National Association,
West Easton, Pa., voted $300 in Defense Bonds and allegiance
to the Government in all possible ways.
Corn., have bought $6,300 of Defense Bonds.
Members of the Syrian-American Association and its Ladies Auxiliary,
Fall River, Mass., pledged a $10,000 purchase.
day week, to the purchase of Defense Bonds and Stamps.
In Gary, Ind., representatives of five Roumanian groups purchased
$7,000 in Defense Bonds.
Mass purchase of U. S. Defense Bonds to a total of $38,000 was made
one night in late December by Italian, Polish and Jewish residents of Jersey City.
Proceeds from the annual ball of the United Irish Counties Association, New York City, are being devoted to the purchase of Defense Bonds, as announced by John F. Sheehan, Chairman of the
Arrangement Committee.
LOCAL 882 OF THE UNITED AUTO WORKERS (CIO) have asked the Atlanta, Ga.
plant of the Ford Motor Company to devote all their wages, in excess of the 5More than 200 union miners in the SAND COULEF-STOCKETT district of Montana
voted to donate a day's pay to the Government, in addition to pledging regular
purchases of bonds until the end of the war.
In announcing a recent purchase of $1,000,000 worth of Defense Bonds,
Daniel J. Tobin, president of the INTERNATIONAL BROTHERHOOD OF TEAMSTERS (AFL),
said the union would continue to buy bonds at the rate of $2,000,000 yearly as
long as the war lasts.
A goal of a $200,000 bomber every quarter of 1942 has been set by the 7,000
members of the INTERNATIONAL UNION OF MINE, MILL & SMELTER WORKERS (CIO) in the
Birmingham-Bessemer area of Alabama.
St. Michael's Russian Benefit Society, Woonsocket, R. I., has voted
a purchase of $2,000 in Defense Bonds.
Members of the Serbian Lodge, No. 129, of East Moline, nl., have
pledged to buy at least $8,000 in Defense Bonds.
"The enemies of America have counted on the varied social origins of
our people to bring division and disaster in our war effort. But
they are fooled. Our union of many races, like our union of many
states, brings greater strength."
The Navy looks on in Miami, Fla.,
while PLUMBERS UNION LOCAL NO. 519
gives concrete proof of its pledge to
support that service by buying $10,000
in Defense Bonds.
Officers and grievance committee members of CIO STEEL WORKERS LOCAL 1757
News, Kenosha, Wisconsin, December 30, 1941.
LABOR SPEAKS
The INTERNATIONAL UNION OF BRICKLAYERS, MASONS AND PLASTERERS OF AMERICA
(AFL) of Washington, D. C. has purchased $150,000 of Defense Bonds for 1942, its
legal limit under Government regulations. A like amount was purchased last year.
LOS ANGELES TYPOGRAPHICAL UNION NO. 174 has voted a $10,000 purchase of De-
ability.
fense Bonds and urges each of its 1,200 members to buy to the limit of their
The 600 members of the DENVER & RIO GRANDE WESTERN, with shops in Salt Lake
City, Utah, participating in regular Defense Bond purchases, racially represent
almost as many countries as did the League of Nations.
of
Donora, Pa. will be paid in Defense Stamps instead of cash "for the duration
of the war."
Sales Promotions From Here and There Over the Country
At Providence, R. 1., a bevy of skating stars from the show "Icecapades"
lured passersby to newsboys selling stamps at the city's Defense Staff headquarters, "The Little House on the Mall."
At Portland, Ore., Lobo, Junior and Queenie, trained sheep dogs, known which in
the show-world as the "Pard" dogs, added their "yips" in a Bond Drive,
translated by Ray Courtright, their trainer, meant they wanted their weekly Defense Savings Stamps. They paid a visit to Pioneer post office and other places
where Defense Savings Bonds and Stamps were on sale.
J. H. Weisenberger, Dallas, Tex. realtor, challenged 100 other Dallas busi his
ness men to match $5,000 he intends to put in Defense Bonds. He will raise
ante to $10,000 if agreeable to the others.
-9-
News Letter
News Letter
LABOR SPEAKS
HERE AND THERE WITH PATRIOTS FROM EIGHT TO EIGHTY
Sales Promotions (Continued)
a
Sam Ventura, proprietor of Oak Lawn Village, swanky Dallas restaurant, ran
the following ad in Dallas newspapers:
"Effective at noon Thursday, December 11, and until America
and her Allies have won complete victory, all patrons of
Oak Lawn Village will receive their change in United States
Savings Stamps."
America's Minute Man No. 1
Dorothy Lamour, famous screen star,
sans song and sarong, is on a coast-to
coast tour selling Defense Savings Bonda
and Stamps and otherwise promoting Uncle
Sam's gigantic task of financing the cost
of the war.
Speaking in theatres, and at Defense
rallies and wherever she is sent, Miss Lamour has given her month's vacation to the
In Charlotte, N. C., Simpson Ivy Brown, Jr. 10-year-old schoolboy, WOB
prize contest on "Why We Should Buy United States Savings Bonds for Defense." Simpson composed a noble little acceptance speech which concluded
*In accepting this gift, I feel that it is a victory won for our
school and not for me. I call it a victory because it shows that
ve children are 100 percent behind the defense program, and that
We shall look
ve want to do our part to save our country
back to this day as a scene of patriotic enjoyment, when the lessons of democracy are meaning more and more to the Negro.
Mrs. Margaret Providealo of Gary, Ind. received as the first news from
her son Albert, on duty in Havaii, - not a letter, but two Defense Bonds,
mailed on December 20.
Anxious to do her duty, Mrs. Mary Karolee of Carnegie, Pa., was confused by the warning on a franked envelope - *Official Business. Penalty
for private use $300. As evidence of her good intentions, she forwarded
$5 to the local Collector of Internal Revenue. When it was explained that
she was under no penalty, Mrs. Karolea delightedly put her $5 down on the
installments toward her second $25 Defense Bond,
task of aiding her nation at war, and all
"Ky Dad always warned me to save for a rainy day, said H. C. Smith, 57,
of Dallas, Texas, as he marched into the Times-Herald office with 170 other half-
picture at the left, selling Defense
day at Pearl Harbor, he added, putting the money down on the counter for
at her own expense. She is shown in the
Stamps at "Victory House", Pershing Square,
Los Angeles.
dollars bulging his pockets. "Durned if it didn't start raining the
Defense Bonds and Stamps.
"Remember Pearl Farbor" is both a memory and a slogan for Patricia
McCarthy, recently of Hawaii, now attending St. Mary's College will in South help
Bend, Ind. She has just bought her first Defense Bond, which the sinews keep
her
father, a lieutenant-colonel at Fort Kamehameha, supplied with
of var.
HATS OFF TO
Rodney Brook, 9, of Syracuse, N. who asked that $200 received for injuries in an automobile accident be used to purchase Defense Bonds.
Bootblack Tony da Grossa of Philadelphia, Pa., who plunked down on the
counter for war bonds $1,700 - the reward of 50 years' savings.
The parents of Betty Jeanne Myers, Indianapolis, Ind. learned recently why
their
daughter
had been
money for an $18.75
bond."skipping" movies and walking to and from school-to save
Juran of Houston, Texas, is 79 years old, but he is serving the morning the nation.
Every S. day since December 15, he has started out at 9 o'clock in stores.
sell Defense Stamps to "customers" in the street or in department he is
A to native of Roumania, Mr. Juren has already sold $700 worth of stamps;
driving toward a $5,000 goal.
town
"The people of the country can help win this war in their has own a finger home on
buying Defense Savings Bonds. Every one who buys a Bond Mate Eugene Knight,
by the trigger." This was the pointed statement of Gunner's he convalescing in
one of the heroes of December 7 at Pearl Harbor, as was above Knight talk-
the Picture on the following page Lowe.
ing Mare to Lieut. Island Comdr. Hospital. L. L. Stanley, Navy doctor, and Navy nurse Nancy
$12,000 proceeds of the life insurance policies of Morgan McCowan, an Army
flier live
lost near
in the
Philippines,
who
Leoti,
Kansas. will be invested in Defense Bonds by his parents
10
the people of the United States are furnishing Dr.
for the "Bonds guns are you the fellows bullets manned at Pearl Harbor and other fronts, Stanley
11
News Letter
News Letter
PATRIOTS FROM EIGHT TO EIGHTY
PATRIOTS FROM EIGHT TO EIGHTY
(Continued)
(Continued)
told the Navy here. "We're proud of what you fellows did that Sunday morning, but Americans don't just say things with words alone-- BUY BONDS AND
MORE BONDS. for that is the ammunition with which we said.
will win, Dr. Stanley
Kemper Nelson.
Wheeling, W. Va. bond
Unable to enlist in the Army because of his age, 46, former heavyweight
champion Jack Dempsey is tossing his brawn into the Defense Bond campaign;
he has purchased $100,000 worth to date.
The National Women's Christian Temperance Union has announced its var-
time slogan--"Buy a Bond instead of a bottle.
dealer, has devised a
plan for voluntary contributions to the war
EDITORIALLY SPEAKING
effort, and a bill authorising the program has
already been introduced
in the House of Representatives.
Under the plan, the
Pearl Farbor Hero Urges Folks At Home To Buy Bonds
government would sell
special stamps, with the
proceeds to be used for
building of war fighting equipment for the Army and Navy. The stamps would
be in denominations of from one cent to $5. The stamps would have no value
for postage or other purposes other than to provide a means for persons desir-
ing to make such voluntary contributions for the war with the assurance that
their money will be used for specific purposes which the donor intends. They
Defense Savings Bonds are the cheapest insurance against looting
Herald News,
and murder by the firing squads of Europe and Asia.
Passaic, N. J.
Unless the enery is defeated the collapse of democracy in the
Herald, Spartanburg, S. C.
United States is inevitable.
No one can visualize a hundred billion dollars. Such a sum of
money does not exist in cash. Yet that is what we are to spend the next two
years on a gigantic Victory Pro- Call, Woonsocket,
gran!
R. I.
"He says he doesn't have to take
orders from us any more--he bought
It is not only patri-
would be used the same as Christmas seals.
otic to be thrifty these days but
There would be 14 different stamps in the series. Each would carry an
engraving of the type of var material the donor sought to contribute, such
as battleships, heavy cruisers, light cruisers, aircraft carriers, destroyers,
minelayers, submarine chasers, heavy tanks, light tanks, heavy bombers, light
bombers, interceptors and pursuit planes and anti-aircraft batteries.
Howe, 'the Sage of Potato Hill,
a Defense Bond and that makes him
a stockholder."
also a demonstration of what Ed
used to call 'intelligent selfishness. Missoulian, Missoula,
Mont.
This var is costing
⑉
$740 a second. Help Uncle San
Little Kathryn Sue Vago and her big sister,
Betty Ann. 7. had just two cents between them after
turning over their savings of two years to Uncle
San for Defense Stamps. (See picture at the left.)
with his bills. Post,
Mrs. Elizabeth Kern. one of two Ohio sisters
to receive a "windfall" of $1,000 from a missing
heir, has expressed her intention of buying Defense
Bonds with the unexpected funds. Mrs. Kern and her
sister were found through "The Court of Missing
demand for Defense Savings Bonds
Heirs" program over CBS. The money is to come from
the estate of a brother who died twenty-three years
ago in World Var I.
Down To Their Last
Cincinnati, Ohio.
"Encouraging as the increased
and Stamps throughout the nation
has been since the Japanese bomb-
ed Hawaii, the real job of selling
the necessary billions of war
bonds to the public is only just
starting.
var
Copyright 1941
Times, Los Angeles, Calif.
citizen in the nation were to invest a dine a day in
savings if stamps every the amount of money thus made to fight our fees would be
terrific.
Journal-Transcript, Peoria, III.
Two Cents!
12
13
News Letter
News Letter
PAT ROLL SAVINGS
A Y ROLL V I
Sweeping Nation's Industrial Plants
New England States (Continued)
Preliminary reports from Administrators in 31 states show that 6,690 firm
and corporations, involving approximately 7,300,000 employees, have installed
Defense Pay Roll Savings plans.
Goodyear Fabric Company, Smith Brothers Brewery, Metropolitan Life
Insurance Company, Fairpoint Corporation, Continental Screw Company, Prudential Life Insurance Company, and the Acushnet Company, all of New Bedford, Mass.
Plants with an employee list totalling more than 100,000, such as United
States Steel, down to the smaller industries with a roster of 25 workers, are
reporting installation of the plan with systematic and regular deductions ranging as high as ten percent. In some cases, an even higher percentage of SAVings has been reported. No plant is too large nor too small for the inauguration
of this simple yet business-like method of purchasing Defense Bonds and Stamps.
The picture at the left shows one
of Uncle Sam's workers behind the lines,
who has just converted his Stamps into
a $25 Defense Bond. His name is J.L.
Rache, and he is a skilled m chine
operator at the Northern Pump Company
Minneapolis, Minn.
in Minneapolis, Minn. Eighty-seven percent of the employees of this company
have pledged voluntary pay deductions
in the Defense Savings Pay Roll plan
permitting Uncle Sam to tap their pay
rolls to the tune of approximately
$17,500 per week, or $910,000 annually.
Officials of the company are purchasing
bonds totalling some $1,000,000 a year.
The Winchester Repeating Arms Company of New Haven, Conn.; the Scale
Division of Fairbanks Morse & Company of Burlington, Vt.: and the Smith
Paper Company of Pittsfield, Mass.
Middle States - Civilian Employees in the Brooklyn Navy Yard; Submarine
Base at New London, Conn. Naval Ordnance Plant at Baldwin, L. I.: 1,500
firms in New York City with 3,500,000 employees; Western Union Telegraph
Company with 52,000 employees; United States Steel Corporation; 200 firms
in Philadelphia; R. C. A. Plant at Camden, N. J. with 8,500 employees:
Carnegie-Illinois Steel Company at Pittsburgh; American Steel & Wire Company: Southern Wheel & Foundry Company: Acheson Manufacturing Company:
Bethlehem Steel Company: Union Railroad Company: American Chain & Cable
Company: and the Jones & Laughlin Steel Company.
Midwestern States - Standard 011 Company of Indiana; Ohio Wax Paper
Company: 1,500 members Ladies Garment Workers, Milwaukee; County Employees
at Flint, Mich.: The G. Heilman Brewing Company: Fairbanks-Moree Company,
Rockford, Ill.: 500,000 employees of 476 Chicago firms; National Cash Regis
ter Company, Dayton, Ohio; Mabley & Carew, Cincinnati; Thompson Products
Company. Cleveland; Brush-Moore Newspapers of Salem, Ohio; Cincinnati Milling Machine Company: Standard 011 Company of Ohio: Warner & Swasey, Cleve- Con-
Recent Installations of Pay Roll Savings Plans
land; Hall China Company, East Liverpool, Ohio: Keystone Steel & Wire
pany, Peoria, Ill.: Wisconsin Telephone Company, Milwaukee; Eagle-Picher
Lead Company, Cincinnati; Challenge Machinery Company, Grand Rapids, Mich.:
coming into Washington from all sections of the country include
theseReports
recent installations:
Michigan Bell Telephone Company: Butterfield Theatres and the Macklin Pump Company, of Jackson, Mich. Clark Equipment Company and American Marsh
Company and the Consumer Power Company of Battle Creek, Mich
New England States - The Fuller Brush Company, Hartford, Conn.: The American
Bress Company, Blake & Johnson, Bristol Company, Chase Brass & Copper Company,
Machine Connecticut Light & Power Company, Eastern Color Printing Company, E. J. Manville
Company, Company, Thinsheet Metals Company, Patent Button Company, Waterbury Buckle
Waterbury Clock Company, Waterbury Farrell Foundry & Machine Company,
Waterbury Rolling Mills, Inc. Waterbury Republican & American, Waterbury Tool
Company, Rowbottom Machine Company, Somers Brass Company, all of Waterbury, Conn.
Also in Waterbury: the American Cyanimid and Chemical Company, American Fas-
Western States - 15,000 employees of firms in Pueblo, Colorado:
Redmond Mills, Redmond, Ore.: Alex Johnson Hotel, Rapid City, S. D.: 100
firms in Sioux Falls, S. D.: Willamette Valley Lumber Company, Salem, Ore.
Southern States - Standard Knitting Mills, Knoxville, Tenn.: Weis-Fricker Norfolk
& Western Railway, Roanoke, Va.: Florida Pulp & Paper Company, 011
Lumber Company and Neyport Industries, Inc. of Pensacola, Fla.: Gulf
Company, Port Arthur, Tex.: and Dallas Retail Stores.
tener Company, Bunker American Sheet Metal Works, Barlow Bros. Company, Benrus Watch Com-
Krodel pany, Hill Plating Company, Butler Printing Company, Keeler & Long, Inc.,
Foundry, Manufacturers Finishing Company, Mattatuk Manufacturing Company,
Company, Superior Mattress Company, Southern New England Ice Company, Valley Manufacturing
Corrugated Box Company, Waterbury Paper Box Company, and the
Waterbury Waterbury
Steel 3all Company.
14
L.
In co-operation with the Defense Savings Staff of Maryland, the the Glenn
Martin Company. maker of the famous Martin bomber, is announcing has
introduction of the pay roll savings system in its plant which now
more than 30,000 employees.
15
News Letter
News Letter
TO THE LADIES
TO THE LADIE
State News Letters
From the WASHINGTON STATE NEWS LETTER
Many States now have their own Defense Savings News Letters, some of which
include women's pages. A few of these local women's pages are following the pattorm set by
"To TheWomen's
Ladies" column
in the
FIELD
wherein
thethe
National
Division
tries
to - ORGANIZATION NEWS LETTER,
titled "To The Ladies,' written by Marie Young, a member of the
A Advisory page Committee on Defense Savings and president of the Washington
State Federation of Business and Professional Women's Clubs, is a feature of
the State News Letter published by the Defense Savings of Washington.
1. Give State Defense Savings Committee Women information on what the
National Women's Division is doing.
2. Give illustrations of how "The Ladies Are Lending," and how various
State
and localto
committees
are organizing Defense Bond and Stamp programs espec.
ially designed
interest women.
3. Give credit to State and local committees and to individual women who
are taking an active part in the Defense Savings Program.
In the January issue of this NEWS LETTER, Miss Young reports:
"A Defense Bond for Every Business Woman," has been voted by Busiand Professional Women's Clubs throughout Washington, and the
ness slogan is being translated into purchases of Defense Bonds and Stamps.
Other organizations might well adopt their slogan "Every Club Woman
For National Defense - a U. 3. Defense Bond for Every Club Woman."
"ATTENTION: ALL WOMEN MEMBERS OF COUNTY DEFENSE COMMITTEES
Some State News Letters
"Here is a plan to stimulate the sale of Defense Stamps Among Women:
From the Arkansas OFFICIAL BULLETIN
"Representatives of Women's groups through
out the State have formulated a State Council
of Women's organizations within the Arkansas De.
fense Savings Staff, to promote the sale of
Bonds and Stamps in every Arkansas county. Mrs.
R. V. Hall of Texarkana, Chairman of the Women's
Division, was named Chairman of the new Council.
"Under the plans of the Council, various
presidents of Women's organizations will estab-
lish local organizations in the State's 75
counties
and will name county chairmen."
Offering a tentative program, Mrs. Hall
recommended:
1. An educational program to combat inflation
through the purchase of Defense Savings Bonds
and Stamps.
on
2. A broad program to encourage systematic
saving
curities.through regular purchase of savings se3. That Bonda and Stamps be given instead of
usual presents and prizes.
4. That women accept stamps in lieu of change.
5. That women throughout the State immediately
embark on a "word of mouth" campaign to increase
"First: Secure a map of every community in your county and a
list of all Women's organizations, fraternal, church, civic, sections. cultural,
educational, patriotic, and otherwise. Divide the map into
"Second: Call a general meeting asking the leader of each Women's
Organization or her representative to attend.
"Third: Organize this group
into a Women's Defense Club, and
supply literature on women's par-
ticipation in the Defense Savings
Program, including "We Gals Have
To Stick Together, "Madame Chairman," and "Mrs. Brown Buys a Bond.'
"Fourth: Urge that each club
represented dedicate one meeting to
a thorough study and discussion of
the Defense Savings Program.
"Fifth: Urge each club to hold
sectional meetings to which each mem-
ber will be asked to bring as her
guest one or more friends who are not
members. At this meeting, emphasize
the importance of women's united sup
port of the Defense Savings crusade.
interest in the entire Savings drive.
16
-17-
News Letter
News Letter
ON THE AIR
SPECIAL ORGANIZATIONS
At the convention recently held in New York City, PHI DELTA EPSILON
FRATERNITY sold more than $350 worth of Defense Stamps and $21,000 worth
Radio Programs for the Coming Week:
of Bonds.
The EL PROGRESSO CLUB of Pilot Point, Tex., voted to buy a Defense Bond
in
memory of two local boys, Joe and James Fritcher, reported lost at Pearl
Harbor.
'FOR AMERICA WE SING*
Monday, January 19
9:30-10:00 PM (EST)
NBC Blue Network
Dr. Frank Black's Orchestra and Chorus.
GUEST STARS: Frank Munn and Elizabeth Lennox
The JUNIOR LEAGUE of Dallas, Tex., has voted to buy Defense Bonds with a
reserve
fund in excess of $5,000, accumulated over a period of years for & new
club building.
The first Monday in every month will be a special "Buy Bonds Day" for nem.
bers of the CO-OPERATIVE CLUB of Baton Rouge, La.
in government
RELIEF$50,000
ASSOCIATION.
bonds have been bought by the CRANSTON (R. I.) POLICE
Saturday, January 24
"AMERICA PREFERRED"
8:00-8:30 PM (EST)
Mutual Network
Alfred Wallenstein's Orchestra (Andre Kostelanetz, guest
conductor); Deems Taylor, commentator, with
guest star to be announced later, in the press.
BELOIT COLLEGE (Wis.) has already bought its legal limit of $50,000 worth
of Defense Bonds for 1941 and will soon repeat the purchase for 1942.
Since the attack on Pearl Harbor, CAMP MARCUS D. RUSSELL, Spanish American
War Veterans, have increased their bond and stamp holdings to $8,000.
The purchase of a $100 Defense Bond featured the regular January meeting
of the NORTH JERSEY ASSOCIATION FOR THE BLIND.
SPOKANE RADIO EMPLOYEES RECEIVE CHRISTMAS BONUS IN BONDS
Louis Wasner, owner of radio stations KHQ and KGA announced that employees
of the two stations received their Christmas bonus, amounting to $22,500, in DeMembers of the Fourth Degree Assembly of the KNIGHTS OF COLUMBUS in Roches-
ter, weeks
N. Y., inhave
undertaken to sell $10,000 worth of bonds and stamps the first
two
January.
fense Savings Bonds.
Following the distribution of bonus checks, employees voted to institute a
pay roll savings plan at the two Spokane stations.
LEXINGTON (Ky.) OPTIMISTS appropriated $100 from their club funds for a Defense Bond, and pledged members to all-out efforts in whatever service might be
required for successful prosecution of the war.
The HIGHLANDER BOYS of Denver, Colo., 500 strong, marched on the post office
January 2, to open their "Stamp-A-Week" program. The money for the stamps will
come from the proceeds of waste-paper collections.
For every 1,000 tons of Axis shipping destroyed by American armed forces,
will every member of the ADMIRAL ISAAC C. KIDD Defense Stamp Club of San Diego, Calif.
a 10-cent
stamp. The club was recently formed by workers at the North
Islandbuy
Naval
Air Station.
HOUSE ORGAN EDITORS PLAN BOND CAMPAIGN
Merrick Jackson, editorial director of the Western Electric Company, was
named chairman of a Committee of House Organ Magazines to bring the Defense Savings Program before the 15,000,000 readers of the various House Magazines of the
nation.
Other members of the committee are: A. P. Alexander, Jr., Editor of The
North Dakota's ten ELKS LODGES have recently bought over $100,000 in U. S.
January 4.Bonds, reported State President Sam Stem at a Defense conference on
Defense
18
Red Barrel, Coca Cola Company; Alex Smith, Works News Co-ordinator of the General
Electric Company; and Robert Newcomb, Editor of Stet, published by the Champion
Paper and Fibre Company.
19
News Letter
LET YOUR ANSWER TO BOMBS
DEPUTY ADMINISTRATOR BRAVES
KING OF BEASTS
BE BONDS
AMERICA
John H. Payne, Jr., of the Virginia
Defense Savings Staff, isn't really
frightened, although he admits being
a bit nervous when he climbed into
the cage with King Tarz, MGM lion.
The King of Beasts came to Richmond
along with his trainer in a drive
The lobby display of the Equitable Trust Company in Wilmington,
Del., includes an actual 500-
to sell Defense Bonds and Stamps.
pound demolition Bomb as shown
in the above picture.
JOE WILLIAMS NAMED AS SPORTS
CONSULTANT ON STAFF
Secretary Morgenthau has announced
the appointment of Joe Williams,
nationally known sports writer, as
Sports Consultant in connection with
the Defense Savings Program. Left
to ght: Eugene W. Sloan, Execu-
tive Director, Defense Savings Staff:
Joe Williams; Vincent Callahan, Chief,
Radio and Press Section, Defense
Savings Staff.
- 20 -
156
Number of agents in Other Corporations and Investment Industry
qualified to issue Series E Savings Bonds, by Federal Re-
:
Boston
Chicago
:
:
Atlanta
Cleveland
:
:
Date
Dallas
Kansas
Minne-
New
City
apolis
York
Philadelphia
1
Richmond
San Francisco
:
serve districts - January 10 to date.
St. Louis
Total
Other Corporations
-
-
-
-
8
-
4
-
10
-
90
28
27
1
14
3
32
31
20
19
115
33
42
5
3
21
23
Kar.
7
14
23
25
27
27
21
22
151
40
49
9
27
170
43
37
198
44
53
14
58
16
59
17
46
62
19
51
62
22
3
50
234
54
261
64
282
46
4
4
101
19
11
8
351
41
124
23
14
18
457
46
135
27
15
32
552
614
7
23
3
14
28
12
-
17
Feb.
-
-
Jan.
53
148
27
18
35
55
159
30
21
41
686
56
174
31
25
42
763
28
43
826
30
45
885
61
184
36
64
192
40
5
6
Investment Industry
-
-
-
-
2
10
-
5
-
1
2
2
-
-
-
31
10
-
24
-
7
-
2
-
6
8
48
-
13
37
6
3
1
9
7
8
Jan.
-
-
7
3
6
2
3
10
54
-
7
15
8
-
-
-
14
3
14
-
2
-
7
3
7
17
61
8
-
-
21
3
-
18
63
8
-
16
-
14
2
7
65
8
17
8
3
1
28
3
2
7
3
17
-
8
1
-
Kar.
7
3
1
3
-
2
7
8
17
8
-
14
67
3
17
8
3
8
2
7
-
17
-
1
-
21
3
Other Corporations authorized as of December 27. 1941 and Investment Industry as of January 17. 1942.
66
157
Number of agents in Other Corporations and Investment Industry
qualified to issue Series E Savings Bonds, by Federal Re-
serve districts - January 10 to date.
:
Chicago
:
Boston
Cleveland
:
Atlanta
Date
Dallas
Kansas
Minne-
New
Phila
City
apolis
York
delphia
1
Richmond
San Francisco
St. Louis
Total
Other Corporations
-
s
-
-
-
-
4
as. 10
17
14
90
26
20
19
115
33
42
22
151
40
49
27
12
-
-
3
32
101
19
3
41
124
23
3
46
135
27
15
53
148
27
18
52
159
30
21
56
174
31
25
42
763
61
184
36
28
43
826
64
192
40
30
45
885
1
8
11
351
31
N.
5
14
18
457
32
552
35
614
41
686
7
14
23
27
43
23
170
21
23
37
198
44
28
25
50
234
46
54
261
46
64
282
51
Jar.
7
14
27
21
27
9
53
14
58
16
4
59
17
4
62
19
62
22
3
an
6
Investment Industry
-
13
-
7
-
-
-
28
15
17
17
1
17
1
7
14
10
17
1
21
1
17
3
-
2
-
-
2
-
10
-
-
8
6
1
-
-
21
2
1
31
14
-
5
-
-
-
-
24
7
6
-
2
-
8
9
6
2
10
-
14
-
7
14
-
3
2
7
3
2
7
3
-
2
7
3
2
7
3
8
7
48
54
3
8
7
61
3
8
63
8
3
16
-
18
-
17
37
3
-
3
2
7
8
8
3
8
8
65
67
3
-
8
Other Corporations authorised as of December 27. 1941 and Investment Industry as of January 17. 1942.
8
3
66
)
158
January 17, 1942.
Mr. Byron Price,
Director of Consorship,
Washington, D.C.
Dear Mr. Price:
For Secretary Morgenthau I wish to acknowledge, with
thanks, the receipt of your letter of January 16 transmitting
codes of practice for publications and radio stations.
The request in your letter with regard to the procedure
to be taken for withholding dissemination of information has
bean noted.
Very truly yours,
(Signed) Herbert K. Gaston
Herbert E. Gaston
Assistant Secretary of the Treasury.
FCR/mah
Copies of Mr. Price's letter and enclosures, with carbon
of this reply, sent to:
Mr. W. N. Thompson
Mr. Kuhn and Mr. Schwark
Original to Miss Chauncey for Secretary's files.
for
BYRON
OF
159
PRICE
CENSORSHIP
DIRECTOR
THE OFFICE OF CENSORSHIP
WASHINGTON
January 16, 1942.
The Honorable Henry Morgenthau,
Secretary of the Treasury,
Washington, D. C.
is dear Lr. Secretary:
Upon instructions from the President, the Office of Censorship has undertaken to enlist the voluntary cooperation of
the press and radio to prevent the domestic dissemination of
information of aid to the enemy. Pursuant to that undertaking,
this Office has distributed the attached codes of practice for
publications and radio stations.
This voluntary effort cannot possibly succeed if there
are confusions and contradictions in the dealings of individual
departments and agencies of the government with the press and
radio.
It therefore is requested that if at any time any official
of your Department either in Washington or in the field, desires
that the press or radio or any part of it be requested to with-
hold dissemination of information, the request be transmitted
to the Office of Censorship, rather than to any newspaper or
news agency or any radio station direct.
It should be emphasized that this request relates solely
to the withholding of information from publication or broadcasting, and in no way refers to any affirmative action on the
part 01 your Department in making news available.
Sincerely yours,
he
him
Byron Price,
Director.
Enclosures (2).
160
FOR RELEASE IN EVENING PAPERS OF FRIDAY, JANUARY 16, 1942.
OFFICE OF CENSORSHIP
Washington
January 15, 1942
A war-time code of practices for radio broadcasters was issued today
by the Office of Censorship.
The code was drafted by Director Byron Price and Assistant Director
J. H. Ryan after conferences with the radio industry. It asked that
some classes of information which might aid the enemy be withheld. The
government further requested that broadcasters exercise careful control
over certain types of programs which are potential espionage tools for
the enemy.
Most of the precautions emphasized in the statement are being
exercised already by broadcasters on a voluntary basis.
It was announced that Mr. Ryan would be in direct charge of administration of the code, aided by assistants selected from the industry and
an Advisory Council of Broadcasters, soon be appointed.
The Office of Censorship issued this statement:
In wartime it is the responsibility of every citizen to help prevent
the enemy, insofar as possible, from obtaining war, navy, air or economic
intelligence which might be of value to him and inimical to our national
effort.
The broadcasting industry has enlisted with enthusiasm in the
endeavor, and the following is intended to be helpful in systematizing
cooperation on a voluntary basis during the period of the emergency.
Two possibilities exist:
(1) Enemy exploitation of stations heard only within our
borders, to expedite the work of saboteurs, and
(2) Enemy exploitation of stations heard internationally
(both short and long wave) to transmit vital information.
All American stations desire to prevent such exploitation. The
statement herewith set forth is presented under three headings:
(1) News programs
(2) Ad lib programs
(3) Foreign language programs.
Radio management can do much in other ways to win the war. It can
act, in the light of experience, as its own censor above and beyond the
suggestions contained in this statement of conduct.
-2-
161
NEWS PROGRAMS
It must be remembered that all newspapers, magazines and periodicals
are censored at our national borders. No such post-publication censor-
ship is possible in radio. Scores of stations operating on all classifi-
cations of frequencies are heard clearly in areas outside the United
States. These stations especially should exercise skill and caution in
preparing news broadcasts.
Ninety-nine per cent of the commercial stations operating in the
United States are serviced by one or more news agencies. News teletyped
to stations and networks by these agencies will be edited at the source,
with a view to observing certain requests set down by the press section
of the Office of Censorship. These precautions notwithstanding, the
Office of Censorship stresses the need for radio to process all news in
the light of its own specialized knowledge. Broadcasters should ask
themselves the question, "Would this material be of value to me if I were
the enemy?" Certain material which may appear on the news service wires
as approved for newspapers may not be appropriate for radio.
It is requested that news falling into any of the following classifi-
cations be kept off the air, except in cases when the release has been
authorized by appropriate authority.
(1) Weather reports. This category includes temperature readings,
barometric pressures, wind directions, forecasts and all other data relating to weather conditions. Frequently weather reports for use on radio
will be authorized by the United States Weather Bureau. This material is
permissible. Confirmation should be obtained that the report actually
came from the Weather Bureau. Special care should be taken against
inadvertent references to weather conditions during sports broadcasts,
special events and similar projects.
Information concerning road conditions, where such information is
essential to safeguarding human life, may be broadcast when requested by
a Federal, State or Municipal source.
(2) Troop movements. The general character and movements of units of
the United States Army, Navy and Marine Corps, or their personnel, within
or without the continental limits of the United States; their location,
identity or exact composition, equipment or strength; their destination,
routes and schedules; their assembly for embarkation or actual embarka-
tion. Any such information regarding the troops of friendly nations on
American soil. (The request as regards location and general character
does not apply to training camps in the United States, nor to units
assigned to domestic police duty.)
(3) Ships. The location, movements and identity of naval and
merchant vessels of the United States and of other nations opposing the
Axis powers and of personnel of such craft; the port and time of arrival
of any such vessels; the assembly, departure or arrival of transports or
conveys, the existence of mine fields or other harber defenses; secret
orders or other secret instructions regarding lights, buoys and other
guides to navigators; the number, size, character and location of ships
-3- -
162
in construction, or advance information as to the date of launchings or
commissionings; the physical setup of existing shipyards, and information
regarding construction of new ones.
(4) Planes. The disposition, movements and strength of army and
navy units. The time and location of corps graduations or the equipment
strength of any training school.
(5) Experiments. Any experiments with war equipment or materials,
particularly those relating to new inventions. Any news of the whereabouts of camouflaged objects.
(6) Fortifications. Any information regarding existing or projected
fertifications of this country, any information regarding coastal defense
emplacements or bomb shelters; location, nature or numbers of antiaircraft guns.
(7) Production. Specific information about war contracts, such as
the exact type of production, production schedules, dates of delivery,
or progress of production; estimated supplies of strategic and critical
materials available; or nation-wide "round-ups" of locally-published procurement data except when such composite information is officially
approved for publication. Specific information about the location of,
or other information about, sites and factories already in, existence,
which would aid saboteurs in gaining access to them; information other
than that readily gained through observation by the general public, disclosing the location of sites and factories yet to be established, or the
nature of their production. Any information about new or secret
military designs, or new factory designs for war production.
(8) Casualty lists. Total or round figures issued by the government
may be handled. If there is special newsworthiness in the use of an
individual name, such as that attending the release concerning Captain
Colin Kelly, it is permissible material. Stations should use own judg-
ment in using names of important personages from their own areas killed
in action. The government notifies nearest kin BEFORE casualty's name is
released to the press.
(9) Release of figures on selective service enrollments.
(10) Unconfirmed reports. Reports based on information from unidentified sources as to ship sinkings or land troop reverses or successes
should not be used. In the event enemy claims have been neither confirmed
nor denied by established authority, the story ordinarily should be
handled without inclusion of specific information; there should be no mention of ship's name - only its classification; there should be no mention
of army unit designation - just its general description (tank, artillery,
infantry, etc.). Commentators, through sensible analyses of reports from
enemy origins, stressing the obvious fallacies, can do much to correct
any false impressions which might be created.
(11) Communications. Information concerning the establishment of
new international points of communication should be withheld until
officially released by appropriate federal authority.
163
-
(12) General. Information disclosing the new location of national
archives, art treasures, and so on, which have been moved for safe-
keeping; damage to military and naval objectives, including docke, railroads, or commercial airports, resulting from enemy action; transportation of munitions or other war materials, including oil tank cars and
trains; movements of the President of the United States, or of official
military or diplomatic missions of the United States or of any other nation
epposing the Axis powers -routes, schedules, or destination, within or
without the continental limits of the United States; movements of ranking
army or naval officers and staffs on official business; movements of other
individuals or units under special orders of the army, navy or state
department.
Summation: It should be emphasized that there is no objection to
any of these topics if officially released. These restraints are
suggested:
(1) Full and prompt obedience to all lawful requests emanating
from constituted authorities. If a broadcaster questions the wisdom
of any request, he should take it up with the Office of Censorship.
(2) Exercise of common sense in editing news, meeting new all
problems with sensible solutions. Stations should feel free at
times to call on the Office of Censorship for clarification of individual problems.
-IIAD LIB PROGRAMS
Certain program structures do not permit the exercise of complete
discretion in pre-determining the form they will take on the air. These
are the ad lib or informal types of programs. Generally they fall into
four classifications:
(a) Request programs.
(b) Quiz programs.
(c) Forums and interviews (ad 11b).
(d) Commentaries and descriptions (ad lib).
As experience dictates the need of changes, they will be made, and
all stations notified. Stations should make certain that their program
departments are fully acquainted with these provisions.
(a) Request programs. Certain safeguards should be adopted by the
broadcaster in planning request programs. It is requested that no telephoned or telegraphed requests for musical selections be accepted for the
duration of the emergency. It is also requested that all mail bearing
requests be held for an unspecified length of time before it is honored
on the air. It is suggested that the broadcaster stagger replies to
requests. Care should be exercised in guarding against honoring a given
request at a specified time.
--
164
Special note is made here of "lost and found" announcements and
broadcast material UI a nature. Broadcasters are asked to refuse
acceptance of such material when it is submitted via telephone or tele-
graph by a private individual. If the case involves a lost person, lost
written notice. It is suggested that care be used by station continuity
departments in re-writing all such personal advertising. On the other
dog, lost property or similar matter, the broadcaster is advised to demand
hand, emergency announcements asked by police or other authorized sources
may be accepted. Announcements bearing official authorization seeking
blood donors, lost persons, stolen cars, and similar material may be
accepted by telephone, but confirmation of the source is suggested.
It is requested that announcements of mass meetings not be honored
unless they come from an authorized representative of an accredited
governmental or civilian agency. Such requests should be accepted only
when submitted in writing.
(b) Quiz programs. It is requested that all audience-participation
type quiz programs originating from remote points, either by wire, transcription or short wave, be discontinued, except as qualified hereinafter.
Any program which permits the public accessibility to an open
microphone is dangerous and should be carefully supervised. Because
of
the nature of quiz programs, in which the public is not only permitted
access to the microphone but encouraged to speak into it, the danger of
usurpation by the enemy is enhanced. The greatest danger here lies in the
informal interview conducted in a small group - ten to twenty-five people.
In larger groups, where participants are selected from a theatre audience,
for example, the danger is not so great.
Generally speaking, any quiz program originating remotely, wherein
the group is small, and wherein no arrangement exists for investigating
the background of participants, should be discontinued. Included in this
classification are all such productions as man-in-the-street interviews,
airport interviews, train terminal interviews, and so forth.
interviewees In all studio-audience are to be selected type numbers quiz shows, less where than fifty the audience people, program from which
conductors are asked to exercise special care. They should devise a
method whereby no individual seeking participation can be GUARANTEED
PARTICIPATION.
(c) Forums and interviews. This refers specifically to forums in
which the general public is permitted extemporaneous comment; to panel
discussions in which more than two persons participate; and to interviews conducted by authorized employees of the broadcasting company.
Although the likelihood of exploitation here is slight, there are certain
forums during which comments are sought "from the floor" or audience, that
demand cautious production.
(d) Commentaries and descriptions. (Ad lib) Special events
reporters are advised to avoid specific reference to locations and structures in on-the-spot broadcasts following air raids or other enemy offensive action. Both such reporters and commentators should beware of using
165
-6-
any descriptive material which might be employed by the enemy in plotting
an area for attack.
THE BROADCASTER IN SUMMARY, IS ASKED TO REMEMBER THAT THERE IS NEED
FOR EXTRAORDINARY CARE ESPECIALLY, IN CASES WHERE HE OR HIS AUTHORIZED
REPRESENTATIVE IS NOT IN FULL CONTROL OF THE PROGRAM.
-IIIFOREIGN LANGUAGE PROGRAMS
It is requested that full transcripts, either written or recorded,
be kept of all foreign language programs; it is suggested that broadcasters take all necessary precautions to prevent deviation from script
by foreign language announcers and performers. ("Foreign language" is
here taken to mean any language other than English)
MISCELLANEOUS
From time to time, the Office of Censorship may find it necessary to
issue further communications, which will either interpret certain existing requests, amend or delete them, establish new ones or cover special
emergency conditions.
These communications will be addressed to managers of radio stations
and networks. They should have preferential handling and it is therefore
advisable that certain alternate executives be appointed to execute them
in the absence of the regularly constituted authority. All such communications will be coded in numerical order, i.e.: R-1; R-2; R-3; etc. Stations
are advised to keep them in careful filing order.
The American broadcasting industry's greatest contribution to victory
will be the use of good common sense. Too frequently radio in general
instead of the individual offender is blamed for even the most minor
dereliction. If material is doubtful, it should not be used; submit it to
the Office of Censorship for review. Free speech will not suffer during
this emergency period beyond the absolute precautions which are necessary
to the protection of a culture which makes our radio the freest in the
world.
Broadcasters are asked merely to exercise restraint in the handling
of news that might be damaging, for the army behind the army represents a
great force in the war effort. Radio is advised to steer clear of dra=
matic programs which attempt to portray the horrors of combat; to avoid
sound effects which might be mistaken for air raid alarms. Radio is one
of the greatest liaison officers between the fighting front and the people.
Its voice will speak the news first. It should speak wisely and calmly.
In short, radio is endowed with a rich opportunity to keep America entertained and interested, and that opportunity should be pursued with vigor.
The Office of Censorship,
Byron Price, Director.
FOR RELEASE IN MORNING NEWSPAPERS OF THURSDAY, JANUARY 15, 1942.
166
OFFICE OF CENSORSHIP
Washington
January 14, 1942.
A code of war-time practices for newspapers, magazines, and other
periodicals was announced today by the Office of Censorship.
Under the code, which was drafted by Director Byron Price and Assistant
Director J. H. Sorrells after conferences with the industry, the
asks that certain classes of information which might be of aid to the enemy
be withheld from publication except when officially given out.
Many of the practices proposed already have been put into effect by
publications on a voluntary basis.
It was disclosed that Mr. Sorrells would be in direct charge of administration of the orde, assisted by a small Board of Editors and an Advisory
Council of the publishing industry, soon to be appointed.
The Office of Censorship issued the following statement:
This statement responds to the many inquiries received by the Office of
Censorship, asking for an outline of newspaper and magazine practices which
the Government feels are desirable for the effective prosecution of the war.
It is essential that certain basic facts be understood from the
beginning.
The first of these facts is that the outcome of the war is a matter of
vital personal concern to the future of every American citizen. The second
is that the security of our armed forces and even of our homes and our
liberties will be weakened in greater or less degree by every disclosure of
information which will help the enemy.
If every member of every news staff and contributing writer will keep
these two facts constantly in mind, and then will follow the dictates of
common sense, he will be able to answer for himself many of the questions
which might otherwise trouble him. In other words, a maximum of accomplish-
ment will be attained if editors will ask themselves with respect to any
given detail, "Is this information I would like to have if I were the enemy?"
and then act accordingly.
on
The result of such a process will hardly represent "business as usual"
the news desks of the country. On the contrary, it will mean some sacri-
fice of the journalistic enterprise of ordinary times. But it will not mean
a news or editorial blackout. It is the hope and expectation of the Office
of Censorship that the columns of American publications will remain the
freest in the world, and will tell the story of our national successes and
shortcomings accurately and in much detail.
The highly gratifying response of the press so far proves that it understands the need for temporary sacrifice, and is prepared to make that sacrifice in the spirit of the President's recent assurance that such curtailment
as may be necessary will be administered "in harmony with the best interests
of our free institutions."
-2-
OFFICE OF CENSORSHIP
167
Below is a summary covering specific problems. This summary repeats,
the
with JUNE modifinations. requests previously made by various
Federal Government, and it may be regarded as superseding and consolidating
all of those requests.
Special attention is directed to the fact that all of the requests in
the summary are modified by a proviso that the information listed may
properly be published when authorized by appropriate authority. News on all
of these subjects will become available from government sources; but in war,
timeliness is an important factor, and the government unquestionably is in
the best position to decide when disclosure is timely.
The specific information which newspapers and magazines are asked not
to publish except when such information is made available officially by
appropriate authority falls into the following classes:
TROOPS
The general character and movements of United States army units, within
or without the continental limits of the United States - their location;
identity or exact composition; equipment or strength; their destination,
routes and schedules; their assembly for embarkation, prospective embarkation, or actual embarkation. Any such information regarding the troops of
friendly nations on American soil.
Note: The request as regards location and general character
does not apply to troops in training camps in continental United
States, nor to units assigned to domestic police duty.
SHIPS
The location, movements and identity of naval and merchant vessels of
the United States in any waters, and of other nations opposing the Axis
powers, in American waters; the port and time of arrival or prospective
arrival of any such vessels, or the port from which they leave; the nature
of cargoes of such vessels; the location of enemy naval or merchant vessels
in or near American waters; the assembly, departure or arrival of transports
or convoys; the existence of mine fields or other harbor defense; secret
orders or other secret instructions regarding lights, buoys and other guides
to navigators; the number, size, character and location of ships in construction, or advance information as to the date of launchings or commission-
ings; the physical set-up or technical details of shipyards.
PLANES
The disposition, movements, and strength of army or navy air units.
FORTIFICATIONS
The location of forts and other fortifications; the location of coast
defense emplacements, or anti-aircraft guns; their nature and number; location of bomb shelters; location of camouflaged objects.
-3-
OFFICE OF CENSORSHIP
168
PRODUCTION
Specific information about war contracts, such as the exact type of proauctions production schedules, dates of delivery, or progress of production;
estimated supplies of strategic and critical materials available; or nation-
wide "round-ups" of locally-published procurement data except when such com-
posite information is officially approved for publication.
Specific information about the location of, or other information about,
sites and factories already in existence, which would aid saboteurs in gaining access to them; information other than that readily gained through
observation by the general public, disclosing the location of sites and
factories yet to be established, or the nature of their production.
Any information about new or secret military designs, or new factory
designs for war production.
WEATHER
Weather forecasts, other than officially issued by the Weather Bureau;
the routine forecasts printed by any single newspaper to cover only the
State in which it is published and not more than four adjoining States; portions of which lie within a radius of 150 miles from the point of publication.
Consolidated temperature tables covering more than 20 stations, in any
one newspaper.
NOTE: Special forecasts issued by the Weather Bureau warning
of unusual conditions, or special reports issued by the Weather
Bureau concerning temperature tables; or news stories warning the
public of dangerous roads or streets, within 150 miles of the
point of publication, are all acceptable for publication.
Weather "round-up" stories covering actual conditions throughout more
than one State, except when given out by the Weather Bureau.
PHOTOGRAPHS AND MAPS
Photographs conveying the information specified in this summary, unless
officially approved for publication.
Detailed maps or photographs disclosing location of munition dumps, or
other restricted Army or Naval areas.
Note: This has no reference to maps showing the general
theater of war, or large scale zones of action, movements of contending forces on a large scale, or maps showing the general ebb
and flow of batcle lines.
Note: Special care should be exercised in the publication of
aerial photos presumably of non-military significance, which might
reveal military or other information helpful to the enemy; also
care should be exercised in publishing casualty photos so as not to
reveal unit identifications through collar ornaments, etc. Special
attention is directed to the section of this summary covering
information about damage to military objectives.
-4-
OFFICE OF CENSORSHIP
GENERAL
169
Casualty lists.
Note: There is no objection to publication of information
about casualties from a newspaper's local field, obtained from
nearest of kin, but it is requested that in such cases, specific
military and naval units, and exact locations, be not mentioned.
Information disclosing the new location of national archives, art
treasures, and so on, which have been moved for safe-keeping.
Information about damage to military and naval objectives, including
docks, railroads, or commercial airports, resulting from enemy action.
Note: The spread of rumors in such a way that they will be
accepted as facts will render aid and comfort to the enemy. It is
suggested that enemy claims of ship sinkings, or of other damage
to our forces, be weighed carefully and the source clearly identified, if published.
Information about the transportation of munitions or other war materials,
including oil tank cars and trains.
Information about the movements of the President of the United States,
or of official military or diplomatic missions of the United States or of
any other nation opposing the Axis powers - routes, schedules, or destination, within or without the continental limits of the United States; movements of ranking army or naval officers and staffs on official business;"
movements of other individuals or units under special orders of the army,
navy or state department.
Note: Advertising matter, Letters to The Editor, interviews
with men on leave, Columns, and so on, are included in the above
requests, both as to text and illustration.
If information should be made available anywhere which seems to come
from doubtful authority, or to be in conflict with the general aims of these
requests; or if special restrictions requested locally or otherwise by vari-
ous authorities seem unreasonable or out of harmony with this summary, it is
recommended that the question be submitted at once to the Office of Censorship.
In addition, if any newspaper, magazine or other agency or individual
handling news or special articles desires clarification or advice as to what
disclosures might or might not aid the enemy, the Office of Censorship will
cooperate gladly. Such inquiries should be addressed to the Office of
Censorship, Washington.
Should additions or modifications of this summary seem feasible and desivable from time to time, the industry will be advised.
The Office of Censorship,
Byron Price, Director.
000o