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'
......
DIARY .
:Book
.511
y
~{arch 27
:31 .
1942
- ... - .
)
Airplanes · . ,
. 4ircra!t. despatch
•
Book
.
.
·- Britilh J.ir Q~ . .ion reports
Shipmen.t ·s to Bri ti h lorcet - ·Kama.rclc report ·
:_3.{ 30/42..•. .. ~. ~ .•........ •.• . . ........... ·· ~ .. ... . . .
·Algeria
·
·
See. Gold
· American Red Croae
Clotbing for . prfaoners of war of one of ~eri·ea I 8
£:ighting Allies· - ·· Waeh1!18ton Evening' Star story - ·
3/2?/42. •.• • .• : .•• · .• ... .... . . .... ..... ........ . . . .. ·.
Army D~
See F,in~cing~ ~ve~ent : Defense S&vings Bonds
- B -
I
>
Pace ·
53.55 ·
3/art/42 ..... ... -' .. ; ..... ~ .. ...... ; ........... _. .... .
• .JI>
' /
•
. 233·
\
67
(
Banque Worms
~ee Foreign ~ds Control
Barth, Alan ··
.....
Editorial Opinion on the -War: Lull Before th~ St orm ..
'3/27./42 ..... .• .. ·..•••.• • . . •• . ... .. .••.••.••••.•• :
.
·
British ·Purfhasing Mission
Vesting order sales -:- 3/30-31/42••.•. .' •.•. . ••.. . ... .
'·
Business ·conditione
Haas memorandum on situation, week ending
March 28', '1.94~ - G/30/ ~· ·. ...•••. . ~. • . . . . . . . . . . . . . ~--
237 ,238,
350.-353
216
c-
(
Congre-ss of Industrial Orge.t'l izations
·See Financing, . Government: Befense Savings Bonds
Copper ·
See Silver ·
Correspondence
. Mrs. Forbush 1 s r esume'' - 3/3.0/42; .. . . . .... : ....• .• •• •.
D-
Defense Saving~ Bohda
· See Financing, Gov·ernment
._
.
E -
ExChange ~rket
'Reeume\J - ~/2'} /42, etc •••••• • . ·• .••••••.••••.••.. •. .. .
.·
. l
60.91,
24.5,361
•
.Book
y
Peg• .
Jinancipgf GO~ernm~n
..
·
B~~i~1i~~.:·~::~~~,.. ~~. ~~~~·. :~:~. ~~~~~~. ~~~~~ .~
.103, 25'1
· a) Buffington soranda•.. •• •••.• •.•.••••••• .'. • • • .. '
Idle buaineee fund - in~••t•ent ot i Boaton J'ederal .
Reeern Bank ·rep~t - 3/00]42•••.••.•• : • • ~ ......... .
Conference;. preeet1tz ~epreaent~tives of Tr.eaaUJ7 .and
federal Reee~e "" .3/31/42-. ·••••.••• •.•••••• ••• ·•••••• .• .
Defenae Sa~UJ.g.a .Bonde:
·
. . .
.
··
..
·'Progreea ·: rej)ort -- 3/27/42. : ••••. • • .'. ~ : • •••....••.•·. ;.
Daily change• 'in et~ck of Series mSaving• Bo~da ~
3/2'1/4Z,. etC .. .. .. ... ..... ... ..............
Arm1 Day parade participation augg~eted by HMJr to .
· ( Gr"-Vet - J 3/~/42 • • ••• •••..• .••• ·-· •••••••••••.••....
Congress. of lndv.-str~al Organizatiorie: •$tar Parade•
for April l hAs ·passage ad~eree to labor; 'HMJ'r hu -?
·it deleted - 3/31/42. ~ ...... ·>.... . ... ~ . ·. ! . . . . . . . .'.
a) PM ar~icle - 4/7/42: See Boo}c 514, p~e 96
.A.ge~ta - report qn - · 3/31/42 •.•. • .•.. ..• .. .•• .• .. : . •
Oregon campaign for regular · investment -' 3/31/42 ...•
Fi-nland.
· Anlerican motion picture fii.m expo.rts and blocked fwids
of Finland in United ·States: Present status and ·
·futUre \prospects discussed in ca:t>le from Ame~ican
, . Legation, Heldnki - 3/28/42 •••. : . ·...••••••..... ·••...
. Foreign Funds Control
.
. ··
~que . Wo~~J · (France) and Franco-German collabor·ation · Foley memoPandlllD - 3/31/42 ..•.•. ·, .•• .. •••••..••.. ••.. ,9'
Latin America:. United Sta"t-es ·concerns' standard of conduct
when doing business .w ithin Latin America in transactions
involving enemy· nationals· - Treasury Department
·
release and regruations - 3/30/42 ••. .. • ; •. ... ..•. . . ·.. ••.
·i 'ranee
·
'
~ee Gold.
a
. .
..........
•
135,198
150
\
280
·8
;1.7,1&2,318
65
30a.·aio
312
315
86
333
95
~~y
.
Bu&'ineas properties ''in oc.cupied countries . of· Europe:
· Germanat.tempts. to obtain control - cable {rom .American.
lilmbieey, London - 3/'30/42 ....... ; ....•.•.••.... *" ••••••
Gold
·
·
· · ·
:Shipment to· rr~ce fz:om Algeria - 3/Z?/4~ •.•...•...... . ..
.(See also Book 517-. p~e 112 - 4/16/42) .
· ·
·
242
57
Latin Amer~ca
·see· Joretgn lunda Control
· Lend:..L.eaee
.
.
Nether~anda ~Purchaei~ Commission: P.urchaae of material
·230
owned ~Y . - Lend-Leaae report ·- 3/00/42••...• -: •... ·•• · • .
United Kingdo•= · Br,itish war materials available !or
· · ' purchaae 'by United· Sta~ee - value of - White 11eaorandwa
eent to Hopkins - 3/27!~3••.•• •••. •.·•. : .-••. • ·•.• ·...... .. ~ .·
Operating. report !or week ending March 28, 1942:•• •• ·••.••••
~--·-~
._v'______
. ~~~------~rw
.~
4 ,
- ic· Migratio.,., ..Hationa]..
See 'folan, John H
Miltt~ BePo.~•
Coo~dinator
Jook
Pap
S.i1
\
. a&?
250
366
' 253~3~7 ·
'3,68
· /
8
'
·.
,
of In!
U.on report.: .
..:Bri tiah. Home Int. ligence Report - · 3/30/42• .• ••••.• •
German Home Pro . anda - 3/30/42 ••••• •..••_' •.·••.• ." ... ..
Bri-tUh MD Weekly Propapnda· D~ges~ - 3/31/42.· ~ ••••
. ~clc auaimariea - . 3/30..31/42........ ............. ,:.
Gerlllan moral~ -:- ~oordinator :ot lnfc>hpatio~ report
·
·•w8mar·ized by. K,amarck - 3/'31/42•.••••.•• • •.•• • . •.• . .. .
\
.
- .N '"'$etheria,nda
. .'
.
,
_
Purchasing Commiuion: ~chase of m[terial owned by ""
.
Lend-Lease report .:.. 3/30/42 •...•..•• . ; .• . • ·. •. : •......
· !Tickel
See Silver
230
0\
Off'ice of i'ach and Figures
·
· ·
11D.i v1de and Conqu'er" - '.5/31/4·2 ...... .'.' ....... ... .... .
363
- p -
Poland
Sikorsky ·(Prime Minister), Ambassador to United States,
. etc •• call on. HMJr - 3/30/42 •...... ....• ......... .. ·..
101
,\
R -.
Revenue Revisi.on
United K)ngdo~: Withholding of income tax at - source
discusse.d in memorandum fr'Oro American ·ll:robassy . 3/27/112·•.. ·•.••••.. ·......•...• ; •.. : ... ·•.• ·-·...... . . . ....
Capi t8.1 Gains.' and Losa.e a: Paul .!Jtatement' be'f'ore 'House .·
Ways and MeanR Committe&.- 3/.~0/42; ...... :.. .. .. .. .. ..
·(S_ee also :Book 516, page 66 - 4/13/A2) ·
' ..
Jo'int Returns, etc. :
·
.
Paul atatement ·before House Ways and .Meana Co~ittee. 3/30/.42 .••••.••..•..•.••.•.....•••.••. ~ .... :. . . . . . • .
JDB t~ana~ita auggeation of additional $1500 exemption
where both apous-s have ·earned incomes~ 3/31/42.. ..
60
168
·•
. 1~6
321
.
.
- .8..
.
.~·~;fL ..;441~· ;. Al~- ·..4. . . . P••••
1o AlaSka in o;t
· dian veJseh: 1fav1gation laws'
~1 ~ed..- '3/2!1 /42. . .. . .. . . ........... ..... ....... .. .
·.. Silve.r
.
_ ..
.
'- ·: Uee of s.tocka for . . industl"ial purposes - HMJ'-r'.•
preu conference - 3/30/4@. • . : • . ·. .•.• • •• : • •..• : . ~· . •
a) :Srat'ter, Linalq, et.$:.• ·, discuss ••.. : ·. . ••...•..
. b) Foley repo-rt ·on legality of ... 3/31/,.2 ......... · ·
· c) Substit~tion of eilver for copPe~ and nickel ..
in 5¢ ~ieces: Treasury letter to Attorney
' /
Gener~ - · 4/1/4?: See Book ~. ~age 8~
d) FDR' s .~pp~ov~ of Treas~ substitution or
'<
dlv.er.'for · coppe; .. 4/7/42.: _Book 514, page 68
e) loley m~or-nd~ on White-Poley talks on
·Hui - 4/7/42: Book 514, page 74·
·
·r) ·Justice's .op~~ion on legal+tY. - .4/7/42.:
~ook 514,~ ,p~e 80
g) Release :. 4/8/42:· Book . 514 , page 246
h) ·Jones thinks ' tremendous · loas to ·Treaaury will
ensue - 4/10/42:. :Sook . lli~ page 101
1) ~Yr-Jonee. conv~rsation - 4/14/42:
Book 616, PBt$.8 119,
~) Jonea letter etating . e~ctly how far
Defense Plant Corporation will go:
'·
Bo:Ok.- 516, page 121
3) m~Jr'. letter to . jones - 4/16/42: .
:Book
page 77
.
4) Jones' attitud~reported to Nelson :
. Book ·51 7, peg~ .8o
·
5) ~ones .sends Defense ·Plant Corporation
plan of cooperation to FDR and· HMJr 4/-23/.42: · Book .§]Q., page 100.
.
Book
511
\
166
lf?6
341
m.
TTaxation .
See Revenue Rev'lalon
Tolan• John H. (Congressman, California).
Chairman, Committee Investige.,ting National Defense
M!grat~on:· Evacuati~n of ci t{_,~en., and aliens frolll
. military areas- preliminary report· and
.
recommenaations - ·3/31/42•..• ; •. • :-. .••...•••.....•
- U--
United Kingdom . 1 .
·
~~e Lend-Lea.a e
.
:Tltatlon: ' See Revenue Revi'Bion
:
·~
;'·
I.
••
331
- sB.ook .
Sh1pp111g .
. ·, . ..
.
. . ~1 ~ee and "me'rc&rtua• ~ ·AJ.aak& and be_tween porta
ln .Uatka 1n C&nadlan Ye ••h: kvigation. ·lava
vat '!,.ed - ~I '27/42; .••••• ~ • • •• ~· ••• • •••••• .•••.•..•.
Silver -. · · .
-.
.
.
.
us, of s.tocks tor war l ndu ~r-ial purpoaes - HMJr1_.
pre•.• conference - 3/'l.IJ/42••• • •• ..•• .• ; • .· •• • ~ ..• : ~- .
·. a) :Bratter, Li!1dley, et~ . ~ - diseuse •...•..• .• • •. ..
b:) Fol.ey report on l~ali ty of - 3/31/42 •.••. • •.••
··_ c) . Subatitution o·r ·· a~l.ver for copper and nickel
, / · in 5¢ piec.ea: -Treasury letter t9 Attorney
General - 4./1/42:. S'e e :Bpok 512, page. 8.6
d.) FDR 1 s approval of ·'l'reaaury substitution of
.
ailv,e r''for copper j • 4/?/42: ~ok . 514, page 68
.e ) Foley. 111emorand.U!o on .White-J'oley. talks on
~ Hil.l - 4/?/42: l!ook · 5{4\ page 74·
('
l') Justice's .opinion 6n egality - .4/7/42 :
:Book~ ,page 8'0
·
·
g) ·Release - 4/8/4g: :Book 514, page 246 · ·
b) Jonea thinks tremendous lou to· Treaaurj' vUl
· · ensue ..: 4/10/42: :Book .§1§, p~e 101
- 1) HMJr-Jon.es con~ersation~ - 4/14/42:
:Boo·k 516, -p~e 119
2) Jones\ letter stating ..exactly bow far
, . Defense Plant Corporation will go:
:Book 516, :page 1 21
.
3 ) Hl~ r's letter to · Jones - 4/16/42: ,
:Book 51 i •" P84;•, 77
4) Jones' attitude report·ed to Nelson:
. :Book 517, page 80
5) Jones s ends Defense ·Plant Corporation ·
plan -of cooperation to Y.PR. and HMJr - ·
4/23/42: :Book ~. p age 100
.·
511
P~e
2Q
166
166'
. .341
- -T -
Taiation
See Revenue Revision
Tolan,· John H. (Con~resaman,' California)
Chairman, Committee Investigating National Defense
Ml~ration: Eva.c uatlon of ci M.!,en_,
aliens from
military areas - preliminary report and
.
recommendations ·- ·3/31/42• • ~ .... ·.• :-. .. ·• ..•....•...•
end
331
- U --
.
•
.
United Kingdom
. 1
•
.
S~e Lend~Leaee
.
'ritatl on: · See Revenue Revi'e i'on
:
·.
:
)
~
'TREASUR:Y DEP ARTMEN
Washington_ '
FO"R RELEASE, MORNING NEWSl>ArERS·
triday, March 27, 19~2 .. ·
-·
. ~ : . 'The S'ecret&;ry. ~t ·the · Treasu.r y ,· ·bj .this P.U.blic not!ce,
1-nvi tes tende~s !Or · "~50, 000,000, .or ~~ereab'out~, ot -7S-day
Treasury . b,ills,.' to be ·issued on a q1scount- basis under c·om-:petit1ve 'biddi!lg.: '!'he b1lls ot t:QiS ser.ies will be dated
· Ap-ril 1, 1942, ·a nd. will mature Ju.ne .lS, 1942, wheri the race.
. )Uliount will b.e pay~bl:e withol.,lt inter,est. Thef · will be issued
in bearer form only • and in denominations o-r 11, 000, ·$5, 000,
$10,000, $100,900', . $500,000, "and $1;000,009 (maturity valu.e).
~.
.
'. .
..
..
-
.
.
'• .
. Tender-s. ·will
be rece~ved at Federal Reserve Banke and
.
~~anche~ .\lP. to t?e ' cloeing hour, t~o o'clock p.~., Eastern· .
war tim~ Monday.., Me!rch JO, ·1942. Tenders w1ll not be re_ce,1ved at_ ·the 'i' reasury D~partme'nt, _Washington. Each tender
must b.e tor an ·even ·multl.ple Qt ~1 ;000, 1¢~ .the pri·ce ·offered
must be e_xpres.sed. oh· the. baste 6! 100, .....with not more than
three d~cimals, e.g., .99.9?5. Frac·t ione may not be used; It
ie· urged that ten~ers be made on the. printed. !orrne and torwarded in ·t he spec~l.a;t envelopes which- .will ·b.e· .supplied by
. Federal . Re8-e]:'V~. Banks or .Branches
OR applic·a tion .therefor.
.
.
' · Tender~ will. be received without
.
deposit from incorporated banks and trust companies and from responsible and· recognized dealer.s ln. investment securities . Tende~s from others
must be accompanied by payment of 10 percent of the face amount
o.t Treasury b1lle applied for, unless the tenders are accompanied by an express guaranty of ~ayment · by · an incorporated bank
or trust company.
~
•;
"'.
Imme~iately after the closing hour, ' tenders will be openat the Federal Reserve 3anks and Branches, following which
public· announcement w1ll be made by the Secretary of the Trea-sury of the amount and p~i~e range of accepted bids. Tho~e
submitting tende~s will be advi~ed of the acceptance or reJection thereo'f . · The Secretary of the ':':'reasury · 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. ~ayment 6! accepted· tenders at the prices otfered ' muet
be made or completed at the Federal Reserve B·a nk . in cash or
oth~r .....-immedia.tely available fUnds on Ap~11 l, 1942. ·
,.., .
.
.
.
. .
The ·income derl ved froJ!I Treasury bills, whether interest
or gain from .the sale or ot~er disposition. of the ·bills, shall
not have any exemption, as such, ·and lo·~B from the sale or
other disposition of Treasury billa 'shall not have any special .
treatment, as euch, · under Pederal tax Acts now or hereafter . ~
enacted.. T'he bills shall be subject to estate, inheritance,
gi"ft, or other ·exc1ee taxes, whether Fed·eral or state, but
shall be exempt from .an · taxation now or hereafter · 1mposea on
ed
(over)
.0 . - .
'.
.'
-.,·
2..
\
1;~ principal'
\
/
.·
r interest there9f by any State, or any of the
'pos~essi~n~ ·o r tpe Uni~ed S-tate.~, or ~Y ~Y' J?·cal · .t~xlng autho~i ty.
For purl)oses .o;r taxati;o.'tl tpe amQ,un~. of. d).s·coJ:mt a~
·which '!'re.a sury' pi).l.s are orlg1nall.y sol.d by the ·w:11:t;ed· Stat_es
shall ~-e con.~ide·~ed . .to. be .1n~er.~st ·. Under . Sec;tlo'n.s · ~2 and 117
(a) ( 1) .o r . the·· Ii'l'~ernal Revenuei Code, as · amended 'by Se.c t1on .
115 of thti' Revenue: Act of 194-1~ · the amount ·of d1.s·c ount · ·a t which
bllls 1ss·ued· .hereunder are sole( shall not be c'ons1dered .to accrue Unt:il. such b·i lls shall be ··sold; redeeme.d' or' ·o ther.w ise·
disposed of, · and such bills are excluded from consi der.ation
~s capi.tal a~s~t·s • . AccorO.ingl;y, .the owner ot Treasury . bills
(other than li;fe 1nsuranc~ ..companies) issued hereunder need
~n.cl.ude· ln· his ~ncome tax r ·ettftn only · the .dlffE!rence between
. '"'the : p~ice pai d for such bills, ·!whether on· or1gin~l r~_sue·.' or on
.. subsequent .purchas~, and t rw ajnount actu~lly · r~ce1ved elther
upon sale Qr redemption .at ,matu,rtty Q.~ring · t!le taxable year
_for which the return .1.s ·made·, as ord1na~y gain '! )r loss..
•
•
•
•
•
•
•
0
•
•
Trea~ury Dep·a.'r tment Circular No • .418~ - as ~e~q ed, and . this ~ot1c_ e, _. Ptesc·rlb~ the terms of the 'l'r~_a:sury b., ills ·and
govern the conditions of their· ·~ssue. Copies of the circular.
.. , .rp-ay
be obtained
from any_
Federal
'
. •.
.
.
.Reserve. ·Bank 'or Branch.
-oOo-
s
.nt
.n-
..s-
:t
.l
tl
('
\-
.. . . .
~
.'
thp . princ~pal _o r intere t there9f. by any State, or any of tb'e
pos~e:ss1qnll! or the Upi .ed_ State.~, or bY ..~Y lpcal .t~xing au_tho~tty. For purposes· o.r taxati;o'!l t~e amoun.~. of ' d~s.co~~ at ·
'which Tre.a sury· l11:).l.s are. o:rl·g~~~lly so'l._d by the lJni~ ed · St~t e_s
.·
. shall Q.e cQnside'red. :tQ be .inter.·e st·. Vnder Seqtlons . .~2 and 117
(a). ( 1) of the · Inteimal' Re~enue( Code, as· amend·e d 'by S.ection
1~5 of. th~.· RevenuEr Act · .of 194-1;~ the amo':lnt of d~s·count ·a t
bil'l-8 1s·sued .hereunder . are sold; shall not be c·onsidered .to accrue Until' s.uch ·b,1 ll8. shall be:··sold, ·redeemed or ·o therwis·e
disposed of, and such bills are excluded from .consideration
as capi.tal~ a!3sets • . Accordingl.;y, .the owner of Treasury bills
(other thari li.fe· insurs.nc~..companies) issued hereunder need
~ncl~_de · ln· pis income ta,c r·etulfn only the differenca- between
. ""'the ._pr,1ce paid f'Qr such bills~ ·· whethe~ on· orig~n~l 1~s~e·: pr cin
... subs.e quent purcha-se, and tn~ amount act.u~lly r ,ecei ved e~· ther
upon sale or redemp~1on at · _matur·~ ty dur~ng the taxable year
for .w hich. t he return. .i .s ·made·, as ordiriai;'y ga'in !JZ: loss.
.
Tre~_su~y Dep·~·rtment Circu-lar No. 4-18, ·· as .a.rne~ae·d, and . ,t bls r:tot1ce, . P.~.escr1~~ the ·t erms of' 'the T rea:su~y b..1 lls ·and
govern. tpe conditions of their issue. Copies of the circular
rp.aY. be obta1:ne? frorii an~. Federal .Reserve. Bank or Branch.
-oOo -
~.
~
--
_..., ...' '·
c 0 p .y
.
·:
'
T \'fA ·168 ~ASURY COL!liUNI CATl OllS
1§42
MAR
27 P¥ 1. 23
CU·sToMS PATROL. NOGALES ARIZONA
I
•
T~. FOLLCH'illm · MESSAGE WAS TELEPHO!IED. TO THI S. OFF:I CE FOR TlltNSMI-5SI ON
........
.
.
.
BY !J'ELETYPE TO DANI EL ?T BELJ. OF THE TREASUR'f'DEPART!.'.'ENT
PLEASE AR~I\J!GE TO HAVE PRESI DEl'<'T OF ·~IC.A:( D.A:<JX.'ERS ·pttJS TEE SECRETARY
OF A• • 3 . .A· .A!ID AWf'BODY ELSE
TIJESDAY
~REY
F.RF.PA~ TO DI SCUSS WAYS
WI SH TO 'BRI :m , IIi WASHI NGTOU :iEI{T .
"'
A!ffi :.EAliS 01" SELI,FfG 'TRF.A.StiRY S'ECURI<.riES
THRU B~! ~S TO :BUSHr-SS'SS 7/IT::! SO C.AJ;,LSD IDLE FtH!DS .
~
..J •
.,
.: •
ALSO. e~VI'l'E
-::DWAWS I F YOU T:m~t< i.:E C.A.: "BE F.ELFF'JL .
l::ENRY I~Oi.1.G1l:i:T?.AU ,JR •
.·
\ .
·'
\.
SECRETARY OF THE
. TREASURY
.. , ·
·,
W~I NCITON
\
liDAeiR.ANDUl{ FOR THE F.ILES:
-~Mr •. Burt, . assistant toUr . J . Wilson Jones of the Feder al Reserve
B~n New York, . telepho~ed me t he fol lovnng informat~on concernin~
the · corpora~i<;ms r efe'rred tp in t he Secr eta11t1 s telegr~ o~ 'Marcb- 26 .
Phelps Dodge Corporation - . The gentleman wi th whom Mr ,. :surt ta1.}ced
.in t his corpor a tion does n.ot kriow of· e.ny com:Pl aint f r 'om hi:s· plant in
Arizona. He. said t hat out of · 9 ,000 employees : in 22 plants an~ mi nes ,
2 ,000 , hav~ joi ned t he p~ roll allo tment plan. He is interested in the
whole scheme and i s now consider1ng becoming an issuing agent. He.
promised .to let\t he Federal Reserve Bank know his decision wi t hin th~·
course. of the next few de.ys or so.
'· CoPEer · co~oration - The ~ecretary 1 s · telegram gav e this
. Magma
nai!Ie as "Inspiration l!tlgllla ·corporation ." ·No such nami':l could. be founc1
but it fs assumed tha t t h e above mentioned. cornora tion is· t h&-.x>ne the
~cretary had ·in. mind. · This con-c·er n has a pa;/ roll p lan and they
employ about 1100 i n the .Arizona mine. The gentleman wi thvhom Mr. Burt
talked does not know of eny complaint but he is ·wrn i ng to his Gener al
~i~er aski ng for a repor.t on t he \7hole setup. · He is also .suggesting
to the General J!anager at t he Arizona plent t ba.t the cornpany become
an issuing a~ent .
I ns-pira.tion Consolidated Couuer Cornora tion - The Secretary did
not mention t his company, but in vi evr 'pf t h e fe.ct t hat t h e word
"Inspiration" 'tied uy with the· MB.gma Copper Cocyor.a ti.on, it is assumed
t hat he m~ have had t h is company also in mind . This comp?itY employees
approximately 150G-peop~e in Arizona. The ·gentlem~n with whom Mr . · Burt
sp oke did not know if ~hey had. a pa._v roll allotment plan but he .is · .
v~i ting to f ind out . He ~11 also ascertain if t hey wan~ to become an
issuing agent • .
Ainerican Smelting· & R~fining Company - Thfs firm ~s 3 , 000 emJ)loyees
· (n Ari zona. ·They hav e not r eceived any · complaints about issuing Sa~ings
•Bonds , When the company ' s repr esentative. wa.s first · appr oach ed on t hi s
str'bj-ect todaY he w~s very antagonistic to· t he whole sclie!me , but· at t he
fClW'FE~L of t he corif erenQe had quieted doml and ·asked t o .'be furnished wi t h
.of t he forms.
he
..
2
,.
I was advised by the Federal Rese;ye' of New .York thAt Ur. Sproul
has be'e n wo:r;king on this. corilpany since Jan~y and he ·has no.t be!'ln able
tO · get any p romise t hat· they would become an is~ing ~ent or t he.t · they
vtould .adopt t he · p.?.y roll :a.llotinent p lan . \Thil~ the company rePresentati~ did not . promi~e anything, the gentleman who i nterviewed him
received t he i mpr·e ssion .t ha.t t hey would Tir.i te to their General · Mant:iger
,in Arizol).a for ~ repor t ·'on the whole .situation .
.
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_ ..
._..
T~~·U:.N)O.ER :;>ECR~TARYO!TH_E TREASURY
-.. . .
...
.
.
..
WASHINGTON
.
.
M-arch · 27; 1942··
'
MEMORANDUM FOR THE .FI LES
>/
.
l talked this morning to Mr. Tay l or ,
FirSt Vice Presid~nt of the Valley National
- Bank at Phoenix:, .A'.rizona: , r eger ding .t he
·· desi gnation of his other 17 branche~ as
issuing agen~ s .
··
·
He told me that these branehes are
towns , mostly. mi ning camps , and _he
does not feel that the safekeeping facilities
of -those.. banks are · such as to per~i t them. to
keep a stock of savings bonds on hand • . He also
said tha t the -personnel is inadequate and un. . trained. fo:r this purpose . In many p lac.es they
only have two peopl e and they could not handle
t his wor~ as efficiently as it is now being
· handl ed from the head office and the other two
· branches .
~n ~mall
1
•
·
He said they have been ~atching the
right along ;and th€y have felt that
covering the t~rritory very well .
All of . these br anches take applications and senq
: them either to the head office ot .to one of the ·
· other two branches arid :·recei.ve their bonds within
a period of twp or three days . Also, the Post
Offices are issuing· bonds in this territory •.
sit~atton
they w~re
asked him about the . State Committee.ii was quite active , t hat one of their
direc.tors was on the Committee and he ·had been
doing quite .a bit of work for the Co.mmittee . ·
I-
H~ s ~i~
us m:o .
;T,\;.~ss
He sq.id , however, that he woul.d take .
· a~other .look at the situatio·n to see if any of
the branches could ·be made issuing agents with
.safety . He would also talk to some of the ·
Comini t tee and .have seine of them eo nsider this
: mat t e r •
.
.
•'
.
W~INGTON
.
~ ~·
•
\
. .·
...
KUch 27,
1942
' /
MEMORANDUM FOR THE FILES:
-~eferring to 'the Secr.eta1Ty 1 s . telegram of March 26 regarding ~he
-Valley National :Bank of P~oenix, Arizona, Mr. Lee o.f that 'bank called
me th~s aftern9on and furnished me the f~llowing i nformation , in adtit.ion to t hat furni~hed· by Mr • .Taylor . this morning .
.
' t he criticism of
Mr . Lee
·said t hat he was ~Uite disturbed about
his 'bank in f .u rnishing facilities for .t he purchase of Sa vi ngs. :Bonds.
He t hought he was a cquainted vri t h the soUrce of t he information which ·
the S~cr~tery hali received; h e. a ssUllled t hat 1 t . came from a Mr. Rawlins
who is ~onnected with t h e Phelps Dodge Corporation, and who prof,esses
to b e a ~ery ~ublic-sbitited individual but does very little for~the .
pubiic . He stated he- was quite cert8in t hat his bank had met _all the .
requirements of the· .di s.t ricts which it and its br anches r ep re~ent ,
ths,t t he br anches , outside of t h e- two which are issuing 'a.gent ·s , are
· nothing more t han change centers, have no fa.cili ties for issuing bonds,
and insufficient pji!r.sonnel. Mr. Bawlins has tried on a numb·er of
occasions to get t he· banks loca ted in .the c ity where t he P helps Dodge
Corpora tion is loca ted to issue bonqs on pay 'd8Y• I t w~uld .be a
physic~ impos~ibility for t hat branch to issue bonds on t hat day and
in ail ptobabi lit~ customers would ·have to wait longer for thei~ ~ecuri
t1es t han .they do now when buying them· throy.gh t h e bead office and the.
two bra,nches.· Mr. Lee also · stated t hat llis. bank has spent . a. great
deal on advertisi!lg , newspapers , billboar,ds , the r~dio , and by wri ting
. · l et ters ·in· the int erest of t he savings bond ~rogram , .and- t hey are
cooperating with the Post Offices • . I n all Qf t hese cases where ·the
small branches are loca ted t here is a Po.st Off ice selli ng bonds and
in· a few of t h e p laces the Post Office has asked the br anches to ·send
their ~Plications to them for the issuance . of t he bonds. · He assumes
t ltat t~~y would like to get the ·credit for t h e is suance and they are '
cooperatin~ in t hat wi tb the ~ost Office. Mr. Lee p romi.sed to send
me cop ies· of· t h e letters which he has written in t h is matte~ .
·~ .
""\.:"
·· TO: ·.
· Mai-ch 2'7, 1.942
.
iwt~IJl N; . GPJ.~ . •
\
PRO~RES$ REPORT FROM DEFENSE SAVINGS STAFF
/ SuBJECT:
•.
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('
I
PLEDGE CAMPAIGN
The dates set !or ~tarting ~he .Pledge Campaign
in the Yarious states
f~llows:
\
OR:laho~
. Now .going on ""
Now goi~ · .on
Now going on
· Now going on
· April 6
April 6
·A pril 6
April 6
April 6
Nebraska ·
' April 15
Pennsylvania April: 16
Florida
April -17
Vermont
<7' April 19
Massachusetts April 20
Washington
April 22
N. Carolina Apr.il 22 ·
N·. California April 22
·S. California April 22
Indi ana
· April 27
Connecti cut ·M&! 1
Georgia
May 3 · ·
Maryland
May 4 ·
Illinois - Date undecided
Oregon
Iowa
Mtmtana ·
Colorado
Idah()
· Kan.sas · /
Wyoming ·
Virginia.
Ap~~l '6 .
·Utah ·
April 6
·New -Mexico
South Carol-ina Ap_x•il 7
.April 1~
South Dakota
April 13 .·
Nevada
The American Legion has printed and distri~uted.
an 8-pag_e _folder contain~ng instructions to Post
C'Q:nmlanders . concerriing cooperation
~p the
Campaign~
. . .Pledge
.
9ne of th~ _ pag~s contains a joint report form to be
·· signed by . the Pc;>st Commander and ·by ~he Local Chairman
of 'the Defense Savings stat!' in which the·. Com:tnander -'pledg~s
\
)
..
9
PLmxiE .CAKPA.IGH (co:nt nued)
eooperation
and: the i:.Oc.a. .l Dfl'ense
.Savings. Chai.num also
.
.
.
.
signs
. . .to. .i ndicate. .. acloiowle~ent.
.
. .;Post Co~ders- ~~ ·
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ip!!_t·ru~ted
•
.
•
.
l
•
to call on our Local Chairmen and ot'ter t"ull
cooperation.
(C~py· o~ Legion ~older .attached.• )
·.·
Re-~onal ·Di'·vision of :states
.
,_
I
.
('
The regional division o·f states has been divided
as ~ollows:
- Paci~ic
'·
Coast Re~ion
Mountain'. Region
\'lasJ;lington
Northern California
S.outhe~n :Califo~ia
Oregop ·
Texas·
.Nevada ··
.Idaho
Wy~ming_
Arizona
.. Colorado
North Dakota
South Dak.o ta
Montana
New Mexico U<tt ah
· Northe·a s tern Region
Midwest Region
Connecticut .:
Delaware
·:Maine
New Hampshire
Vermont
Iowa
Obio '
Kansas
Indiana
Minnesota
Illlnois
Michigan · Nebraska
'Wisconsin
New Jersey
New York
Rhode Island
P.e nnsylvania
Massacpusetts
Remaining States
Louisiana·
Florida
, Mississippi
Maryland
North Carolina
Tennessee
Oklahoma
.Kentucky
Virginia .
·-Soutb Caro~ina
Alabama ·
Arkansas
Georgia · .
West Virginia
District' of qol~bia
PAYROLL SAVINGS
- The Payroll Savin~s Plan · ha~ been installed by
s
47,929 concerns thro~~~':l~ . t~~ · nation, as._of March_2l. · S1xty_-_o ne per cent of the 30,400,000 employee~ in private busine~s
concerns
are n:ow able to purchase· ~avings B~nds ~hrough tl;le .
. .
.
..
·,'
10
PAY1l0LL SAVINGS · (Conti. ued)
.. .•
Pl_tUi; and. it.·is :.also ·~ _ailable to 31._ per cent ,of the
'\·
.
.
.
...,
4,-.oo·,,_OOO e~loye~s of _Feder~l:, State• and loc•l . governments. ·
.
.
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.
Installat~on 9f .the Plan by· t p.e ·wa.r ·nepar.t ment was
. .
.
ann6unced this week, .making Bond purchases available -to the
~
•
•
•
•
•
approximately .2,500,600 men in the
(•
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Arrlrs,
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and for 500,000
•.
ci vi'l-ian employees of ·t he War Departmflt.
I
CHANGE IN NAME
•
•
0
•
A comprehend ve pian for publicizing War s·a vings.
Bonds and War Savings Stamps at the time of the change in
\
name through Press and Radio was developed this w.e ek • . A
'
. .
copy of ·this . plan is attached •
PUBLICATIONS
.BUSINESS
For the use .of those P':lblishers .who feel .1;hat
ld
Savi~gs
Payroll
promotion is not particularlt applicable to
t_h eir readers -- chiefly _magazines in the professi·onal fields
such as · dentistry, medi~ine, .archi~e.cture, ~tc. -- a special
advertisement has been~ prepared.
It is headed "Fighte~ Plan~~
Like This Cost $55,000 each". ·proof of this
advertise~ent
attached.
I
Reports already have been received from 5~5 busi~ess
publi ~at~ons th~t · they are using our advertising ~elease No . 3.
Th~
. ..
total circulation of these publicatiQna is ·3 , 998,814.
~-
11:
,.
COMPANY .PUBLICATIONS
~ -
Nationa~ Council of Industrial". Editors Associa~ion•s
.
.
Convention .in qhicago from May i4 to ·Kay.' 17 'were discussed
J
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'
•
•
'
•
\
•
ot
at a meeting with Ker~ick Jackson, Ch&i~
(?ur ' House
.
·, . .
Publi~tion~ _ C~mm!ttee. Plans· we~e devised to· provide tor
i'Jlcreased emphasis in
OW1
copy o·r tqe ~rt tl;la ~ women pl~y in .
·· war indus try.
'
'
MAGAZINES -'
· THE SATURD4Y EVENING
~OST
and THE
COUNTRY GENTLEMAN are
.
currently.,- pub~ishing adverti~ementa about the bond . buying
.
acti vi tie~ or Ameri;_can __citizens. Further advert~semeqts,
~
(
along _this line, are scheduled tor future issues, through
arrangement·s maq.e ' with the Curtis Publishing Company :by the
Business Publications section. (Copies attached.)
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'
Att·a ched are examples. or Savings Bond mentions in
v·a rious
.
"pulp~ ma~azlnes.
The . curre!lt
published by one ·conce·rn and have
or
ex~ess
z;ooo ,o~e-;-
copie~ att~ched
e:· total
are ·
circulation in
These are ·the first results or an ·
..
i~tensitied campa~gn covering· tbi ~ phase of popular publicati~na, and i~ being carried tqrward rapidly to embra~e the.
entire f.tel4 of adventure an&' O.eteo.ti ve maga.zine.s .
.. .
circulation ,i n this f'iera exceeds lo,.ooo,·ooo.
Total
':.
Attached ·ia a copy ot cover of the May issue .of LADIES
HOME JOURNAL •
.·
- 5
'
Attached is
S: -broad·s~de
!'rom the ·a.arpe:r ' ~tandard,
Engraving Pompany o£ ~lias, Texas, shQwing_ the potential·
•
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•
•
use ,gt ·Bond and
advertising.
•
•
•
I
S~~P - ~logans
in
~onnec~ion
with political
The Company is £orwardins· additional · copies of
this .~oadside' £~r .di~t~ib~tion to the major engraving
companies throughout the 1country.
('
JANUARY BOND SALES
An.
analysis o£ s.a les . ._o£ Series E Bonds in ·January,
with chart showlng total sales, May t_hrough Januacy, · is
attached~ ·
PRESS
A detai+ed plan to intensify our · coverage Qn the
principal news wire and feature services . w:a s · started this week.
Inyi tations· were sent· to 50 distinguished au·t hors
~sk ing
.
and
personalities
. -outstanding
.
.·
them to subndt articles
-which we will syndi'cat.e national·ly.
We have _made ·arrangements with the news edit~r~
of .
INTERNATIONAL NEWS SERVICE, UNITED PRESS and ASSOCIATED PRESS,
and also ·.o £ .1\'EA {Natio~al ·Editorial Association) to use this
medium on
~
continuing basis.
Attached is an editorial £rom the Wasb4ngton
Da~ly
News which appeare~ .~n . all Scripps ~oward Newsp~pers, wh19h
presents, in detai,l , arguments. 'against the use '
- vertis1ng
.· .
of. paid
ad-
b'y the Treasuey and. other Government departments in
'. .
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SPECIAL
•
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\ At.taehed is a broadside fr.om the Harper.. ~tandard
Engraying . Com:p~y·
use of
Bon~
'
oi' . Dal~~s_; Texas~ show~ng· .t he potentiai ·
.
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.
and Stamp .slogans
..
.. in oonneQtion with political
...
adverti a·i ng. The Company i .e forwarding additional. c.o P.ies of
.
.
this broad.aJ.de for di .s~riput~.on ,to the .major · engraving
'
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·c ompanies throughout the cou:ntf.y.
(
JANUARY BOND SALES
·An ·analysia of sales of Se~ies E Bonds in January,
to~al
with chart showing
attached.
sales, May tPrough Januarj, is
'·
PRESS .
A detailed pl,an to intensify our coverage on the
principal news wire · and feature services was · s.tarted this week.
Invitations were · sent to 50 distinguished ai.l·thors
and ·ou~standing
personalities asking them to submit articles
:which we will syndicate nat+onally.
We have made
~rangements
with the news editors of
INTERNATIONAL NEWS SEaVICE, UNITED PRESS and ASSOCIATED PRESS,
and .a lso ·o f · NE!A (Natio~al Editorial Association) to use this
medium on a· Oc:>ntinuing basis.
Attached is an editorial from the Washingto~ Da~ly
· News whi~h appeared ~n . ~ll, Scripps a oward Newspapers, wh19h
.
.
· presents~ in detail,arg:uments
·against the.
use·. of pald .ad.
.
.
vertising b"i the Treasury .and· other Government depB;rtments in
,
·.
.
:
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•'
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PREsS (cont~~ed)
in ·pro.moting:._tbe . sale ~r·
D .tense
Bonds and Stamp~ or
\
\
RELIGIOUS PRESS
, / · A Churc.b Pr~ss·. ~~vlsor;r C~:mmi ttee'. ·.was formed this
week, and the first
,
l
t
this
m~et~ng
•
Co~ttee
held
- 1n Washington.
•
~o~
are
.
L •. Fortson, .Public
.
M~mbers . of
.
f.
l
~elations
.
.
Director
,
of the Federal· Council of ,Cburches in ~e~ica; Bernard Postal,
Pr.e sident .. of the · American Jewish Press ClUb and Editor. of
.....
B' NAI B'RITH;
Donald T.
~d
Sbeeh~,
Director of Public
Relations tor the National · Catholic Welfare Conf'er·e nce.
\
we·re worked out for increase in the amount ot
~l:an's
material which
c~urch
publications ·c an use.. Several mailings
~
~
have already been made to · 250 Catholic pub.lications, with a
total circulation of/ 7 ,ooo,ooo; · to 300 Protestant publicat'ions,
with a ~otal circulation of 15,000,000; .and to 75 J~wish
publications,
wi
t h .a total circulation of 5,000, 000.
..
.
A second meeting or tlie Church Press Advisory Comrnit?tee ·
will be hela in
Washingt~n
on April 1.
RADIO
Coast · ~o
daily by
4i
coast broadcasts were made several
nationally kno~ . figures, who appeared ~s Minute 'Men
over 'all networks.
{.~e
more prominent of these are listed 1n
an attachinent with thi's report.)
/
t~es
-
13
PREsS ·<Continued l
.
.
. .)
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:
. 1n -promot1ng~he . sale of De~enae . 9Bds and Stamp••
\.
,RELIGIOUS PRESS.
.·
A~v1sor,: Co~ ttee. :wa~
formed this
week, and the fi·r at meeting helQ.
- in Washington.
Members ot
A
Ch'9I'~h
..·
Preas
\
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•
<.
•
this Conmdttee .~e John L • . Fo~tao~,
.
.
~blic .~elations Dir~~tor
. .
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of . the Federal Council of Churches 1 in
Ame~lca; Be~rd. ~ostal,
·
President' .. or the ·American Jewish Press Club and Editor or
'
BI NAI BI RITH; and Don9;ld T. Sheehan, .Dire.c tor of Pub~ic
Relations for t he National Catholic Welfare Conference.
\
Plans
w~~~
worked out for increase in the amount of .
material which 'church
p~b lications
can
use~
Several mailings
~
have already been made . to ~50 . Catholic ~~b lications , with a
total circulation of 7 ,ooo, poo; to 300 ··Protestant publications,
with a ~otal circula-tion or l5,ooo·, ·o oo; .a nd. to 75 Jewish
publicati?ns , with .a total circuiation o£ 5,000,000.
~
~vili
second meeting of tlie Church Press Advisory Conunlttee
be hela in Washington on April 1.
··
.RADIO
Coast · ~o coast broadcasts were made ·several times ·
daily by 4l nationally kno~ figures, w~o appeared as Minu~e ·Men
over all networks. {The more prominent of these are listed in
an attachment with this report.)
··":
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·.
RADIO
!
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(Continued)
.
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Junior M~ut'e ·Men are appear.i ng · :egularly on
womep' ·~ p~grams. . . .CUrrently, · they &l'e schedt4ed on t:Qo
foJ,~wing .we.l l ·~own-.broad~asts:
'
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.
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1. "Let's rretend", CBS, coas~-to~co~st,
11:~0 A. M! Saturdays ·
<2. Mary .Martha McBride, tlBC, .. Red
1!00 - 1~30\ P. M. Fri~ay~
.
.
3. Alma Ki tc!lfrll' s . "Brie!; case", ~c ~ Blue ·
- 2:15 P.• M. Wednesday ·4. ·Nt~k Kenny'·s _program, WMCA, 11:30 AM, .Saturdays.
.
.
.
.
Forty-three spo~sors have announced their adopti9n .
of the Payroll Savings Plan
t~
date, and have
~ged
universal
'\
adopti<m by all listeners on fifty-three coast-to:-coas·t
'·
network breadcasts.
</
A complete list of _programs making these appeals
is att·acbed • .
All of the nation's 868 stations n ow have adopted
the Payroll Savings ·Plan for their employees, and of
t~ese;
317 report .lQO pe~ cent niemb~rship.
· ·, A portfolio detaili~- the· cooperation given Defense
Savi~gs
by the William J. Wrigley Jr. · chewing Gum Company
through · its rad1.o program is attached"
RETAILERs..:
•'.
A~.pr~ximately 400 retailers from the Middle West and
the · E~st wi~l attend a Clinic at the Hotel Sherman in Chicago
.on Monday, May · 4.
April 3.
This meeting was origina·l ly scheduled tor
14
·.
(Contillued)
.
..
.. ·..
RADIO
~
~
J~ior Mlnute Men' are _ ap~e~ing regul~ly .on_
\
women's. programs.
··
..
Currentl.y~
. .·
.
they are scheduled
the · ·
o~
·followinS/' well ~own: ~road,c-~s_ts:
1. "Let's Pretend", CBS, coast-to..-coast·, ·
. 11:'30 . A. M. · sat~rdays · · .
2. Mary )tarth,a. McBride, NBC, Red .
~
1:00 - ·1:30 P~ » ~ Fri~ays
· 3. Alma Kitchell'~ ""Brief Cas~", iiBc~ ~lu~
-2 :15 P.M. Wednesday
.
· 4. Ni~k Kenny's progr_
am, WNCA, 11:30 AM, ·S.atur.days-.
Forty-three sponsors hive announced their adoption
of the Payroll Savings Plan to date""', and have urged ·un-iversal
\
adoption by -all
,_ listeners on fifty-three
network broadca~ts.
A complete l i st pf
is a't!tacbed. . .
prog~ams
coast-to-coas~
<-'
making these appeals
/
All of the nation's 868 stations now have adopted
'the Payroll Saving's Plan ·f or their .e mployees, and of." these;
317 report .1 00 pe: cent membership.
'-
Savi~gs
'
.
.
A portfolio detailipg the .cooperation .given. Defense
by the William J. Wrigley Jr. Chewing Gum Company
through· its radio program is attached.
RETAILERS..:
Approximately 400 retailers from the Middle West and
the · Eas.t wi.l l atte~d a Clinic
at the Hotei Sherman
in. Chicago
.
.
.
.on Monday, May ·4.
Apr!~
This meeting was originally scheduled :for
3.
.
. \\·
.
•.
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'
!.5
·.
RETAILERS . (Contt.n~ed) . :
,.
In Ma~
an intensive
' Qampaign to s~ll S~&Mpa
· to . t~
..
.
\
~
'
·.
ret~.il _ ~ublic will .b.e _undertak~n by bo1?h chain. ~and 1:nd~p.endent.
drug ,.stores
througb.out ~the nation.
I
Wholesaler-s and .
manufacturer~ also will tak.e par.t in t~s· camp~1gn.
I
The, Defense Savings Newsreel
er~~s
operated this
'
. week in Alab~a, Californi~, Lo~isi~a, Massachusetts,
Ohio .
and Orego~.
A copy of ·the Defense Savings Sta1':t'' s· latest
\
newsree~ ·release
is attached.
ENTERTAThTMENT
The .Lucy Monroe Songfest at Jacksonville, ·Florida
I
will be held in Municipal Stadium .on Saturday, March .28. An
audience
of. 25,.000 is anticipated, with all local civic
.
.
org~izations
participating.
Sally
Pa~e,
Republic Pictures
Wes~ern
singing star,
on Wednesday, March 18, appeared in Cutbank, Montana to help
initiate the l ocai Pledge Campaign.
. Simone Simon
ap~eared
at Syracuse, New York, at a
r~lly on Monday~ ~arch 22;~t a · ~~to~ Banquet the ~am~ night
she s?ld. approximate;y $10,000 worth ot Bonds _by ~itting at
tables
~he~e tab~e
holders had first bought Bonds • .
(
.\
.
',
RETAILERS · ( ~ont.inuedl:
' In May an intensive· campa~ to ·sell S~~s:
to the
retail public
w!ll ·be un~er_
.
. ta.ken by ·both -cba~n and !~dependent
. ..
•
drug
.
store~
I
throughout the n'tion.
manufacturers also will
tak~
~lesale~s
pa.r.t in
t~s
campaign. ·
(
I
NEWSREELS
and
The, Defe~se
Savings New~reel cr~~s ·operat~d this
'
week in Alabama, <;:alifornia, Louisi~a,. Massachusetts, OJiio
-
~d
A
Oregon.
·newsreel
~opy
of 'the Defense Savings Staff's la't est
\
rele~se
is attached.
ENTERTAINMENT
The .Lucr Monroe Songfest . at Jacksonville, Florida
/
.w ill be held in Municipal Stadium on Sa.t urday, March ·2 a. An
.
-
' audience
of. · 25,.000 ~s anticipated,
with all local civic
.
.
- organizations participating.
Sally Payne, Republic Pictures
Wes~ern
singing star,
on Wednesday, March 18, appeared in Cutbank,. Montana to help
initiate the local Pledge- Campaign•
Simone Simon
ap~eare~
at · syracuse, New York, at a
rally ·on_Monday~ March 22;at
a iicto~
Banquet the
same
night
.
'--->
.
.
she s<:>ld
approx~te~y .$ 10,000 worth of Bonds ·_by ~itt.i~ at
tables where
~able ho~ders
..-.
•·.
had first bought Bonds • .
..5
,.
'
:
.
·. "viCTORY HOtJSES
I
. I
.
' . A Vic:ii?or,- House . op·en~~- ~ Rea~ing, Pennsy1yania, on ,
,•
~
Friday, M~ch 27,·. wlth ~~- B~lg~r, stage and· screen dancing··
star and' .-comedian, . se"-ing
as.
"
.
Mast~;r
of peremonies.
.
A crowd of
20,000 attended ope~ng . day. exercise~. A civic banquet and a
'
.
.
large aftfUO!loon parade w-ere :features of the··('opening. day
I
· celebr·a tion·.
-, -
Baltimore wiil . hav~ a·..:.Victon Hous~ . soon..
an~ · m~in~ained by the City of . Baitimore.
\.
.
'·
I
.·
·.. .,
It will" be
..
Dail y changes in the stock of Seri es E savings .bonde on hand 1 /
(In thousands of p i eces)
··
· ..
·.
-
\
'
Number of
pi e ces l!J01 d
t h i s n~v
1!arch 1 6
17 ·
:Number of pieces :
: manufact ured ·· :
!
thi s da.v
!
271
. 300
1 44
300
1 4g
'·
..
'>.
I Bll
St oc:\t on hand
at cl ose ·of I
· , dav
·
de:N.ve.r.~es
this ·da.
' 26 , ~1 3
26 , 569 .
/
1g
't•
26 , 721
300
I.
650
I·.
6oo
•
• .- 1
)
19
1 60
300
26, g61
20
259
300
26,902
21
162
none- closed
26,7~
22 '
none- cl osed
none- c1 ~seh
)2~, 74o
23 .
312
300
26, 72s
2~ ·
129
300
26,.g 99
·2 5
1 g6
' 300
27 , 01 3'
26
211
300
27 , 102·
.,
~
·
>..:
,·o·.
'
y
'
'
I,
.
.r
-..
)
I
..
I
·-···
. 750
}
I
I
I nclu de s st ock in hands o.f (1 ). Federal Re~erve :s8.nks and braiiohes, . (? ) P-o~t ottioee ,
( 3.) . FedeTal Reser ve Bank i ssuing agents , and (4 ) TreasurY. ya~ts in Wflsh1:ngton.
•
I
.\
'
o
;
....
v-
.\,,
WinD STA!rlCS SAVINGS :BOBDS
Coap aratin Statem ent of Salu Durin g
Budn eee ~· of March, 1ebl'U&l7 and Jal!lU&ry 1942
y-tvo
liret !went
(Marc h 1-26, febru ary 1-26, Janua .ry 1-26)
-f
On l5aeil ot I ..ue Price
;.~ '
.
\.
(Amounte in thous ands ot~do11ars)
I
••
:·
J
It•
March
--
~- -~----
.v
!otal'
~toe
louroe ':
Jot'•:
of
: J'ebruar'J' ! JUUA Z7' :
:
:
:
.Amount ot Incre ase
o~ Decre ase (-)
J'ebn& r7.
l
March
OTer
:
OTer
7:ebru&r7 : J~
--
--
-- -
: Pero atace of Iaore ue
or Deor tue (-)
:·
h)na lT ·
I
: I Maroll
',
e"*
OTel' · I
:
r7
J....:
l'7
:re)na
t
-~
----
~~--
hrlu • - Post ottio es .
lerl.. s :.. Baakl
Serie s • - Total
hrle s J'- Bub
8erie 1 G - B&Dkt
.
:
.
Sal
• 74.~1
218.1 23
• . S0.9S,
28'7,.29_7
~·~497
292.3 44
35.13 9
156.9 98
368,2 82
48.72 3
235.1462
564,0 21
62,o6 5
·~_5J_lSJ.
· ~2-,~~
$86~,6~6
'he S.cret&rT ot the
Trea~.
$135.523
~38__.53()
-$ 6:764
- _6~.114
-• 54~js
- ll.f.1._2QG
._
195~re
.-
75.93 8
. ;.
18.~
...; -____i.oE)S
4!67 ,gs,
~~~
. - 12,884·
-
13,
- ··~
~
·- 20.6
- 26.4 -
- 31J.T
. - il.,
.. -1al
.. .llal
·- ....,
-~ .
DiTie ion ot Resea rch &Del
Statis~ioe.
Mar~ 2f,
d St~te• · oa aceol;mt of prooe e4t
All tipn s are clepo dts with tbe ·Treae urer of the Unite
of sales of Unitecl 8tate e .saTin gs boDds.
not neceu ar1l7 844 to total s.
:rtcur e• han been rounclecl to neare st thoui&Dd ancl will
-~~
.•
...
........
.
.
~
... Jla2
- 2~.1
1;&.
'--
Daily Sales - March, ~9~
,On Baais o~ leeu.e Price
(~n tho'liaan~a of· dollars)
Poet Office
·.
.Date
Serle•
·.
19lt2
'> 2
Jlaroh
~ ~·
·•
i
'
:5
6,
1 ··.
j.
'
9
10 ·. 11 '
.
.
·12
--lj' .
1~
16
17
·u
..
21
~, .
.
.
...
..
J
19
20
225 ..
26
Bank Bond
BDU Salea
»
• 5,811
2,975'
3.)95 .
'3,869
4;179
. 3.~
4,961'
2.~
3.156 .
2,686
·_2,612
2,797
4,464
2,g67
.2,552
2,559
' 3,510
2,662 .
4,362
2,297
3,00~ -
Series lll
Series J
Sal••
.
Series G
~rie.
~otal
.
.
j..
All
lou
s~e•
'
.
.
'\.
Serle~ J . Serie_a ~
..
• 15,868
g,.lJ59
8.lli
10.
10.69~
• . 2,o4J
1:',629
2 ; ~51 '
..
11.586
18,636
. 5.719
10.002
8,114
10 ,59~
6,616
. .
13,193
6,3·8~
7.097
7.911
13.3o6
7.998
13.955
5.330.
7.982
1,680
1,759
1,586
3.944
1,365
1,533
i,133
i,o65 .
1,102
1.415 .
1:,015
1,201
1,019
1,511
1, 122
1,953
900
2.207
• 21 ..678. •
~1 •.-~ 'l2t22S
1-.317
. 1-.175
. 15,o66'
• 26.,636
18,868'
• 8,726
8, 780
12.558
: _11,870
' 10,825
6,328
2}.0~
,998
23,279
19',499
31,068·
2
8;~8
2,~61
9. 33 .
5.527
5.524
3.714
8,199
13~~
14.,~7
20,3 1
12,833
24,107
9.833
19 ,!!65
3.6o4
9.076
. ~·:365
.. .1.•533.
. 1,133
. 1,()65
. 1,10~
s· .
·18,823
14,750 .
16,666
12,463 .
23,301
.9.961
17.731
I
s.
. i·211
· ~·
23,6o4
11,2~
4,162
7,287
5.504
. 5 007
4t 7!J5
8,693
2,o43 . • 8, 126
1,629
s. 780
2,651
12,551
1,68().
11,870'
10,125
1,75!
6,321
1,58 :
10,800
13,,276
9,413
17,651
9.•351
9.650
. 16,4-Io .
16,8 7
10,66o
1!,317
t.~
10.9815
- ~.
>
.·
~,007
.....
,,···= ,u.z
••
1,953
900 :
·g,OT6
·: 2.207
a
.
,A
n~t neceaa~i·1" ..u ~0 ·to~al· • .
f)
t
e .·P
t
..
...
23.151
1,,..,
· 3.~
leore.ta17 o~ tbe !reanrt, D1Tidon of Beaearch and Statiatica.
and will
•·:J
17,
5.~
5.52
-
u.le• of Uaite4 ltatea urlnp bollda.
. 21~-12,917
...~3
. 2,=
'9. ~3
!otal
~otel ftpre• ~Ye bee~ roade4 ·to uareat thOusand
. 0. a
2
. 9 I 'S?d
1f,=
19,
1,,.
- •7'15
1;415
1,015
.1,201
. 1,019 ·
.1,511
.. 1,122.
Sourcea All t1pre8 are ctepoau·. with t~ !reaiiVer ot the uDited .States. on· ac~..mt· of. procee4a o~
21,m
·5.~
/
•
•
-
~
,
.
~
~~-·-·
..
·20
.
•
I
.
.
.
.
..
,
..
'
~
......... •,.,...
'
...
•
•
(
~
\
M
I.
-•3--. - .,... *'"
- .
_,.. . . ' - - ot us.
.
..... 1\ wU1 be ,..U.l•l
.,... lbl~ ..,u. .. .
llr ftU .. - to
.lrl~ CelaMa, w \lr . . -. ur. •
l'rUie......,
•••11
O...U•
t.o
~ttWltl• .,._sa u.b "Cwwu.,
· ~·•l••
to
-~ '-"~•
(3\GNED) D
¥'
.
w. BFLL
Aoting ,..,......., ot ._._fnilu7•
•I
)
I
l
I
It
••
0
. H!
s.n;..
lfarob Zl·, 1~.
B, ?d~ 74~ ~~ :.r.>
.·
.
•
7}. .-m.C-.
J~~~
..
\
\
~~>'->- .
/
... :n·
19Q·
flTLB 46 - SBIPPDQ.
Subchapter
~
·
-
lrltnnce aDd Cl.earana4t of
·
~tatiCD,
v..
Mle,
.
. .Jtc. .
I
, AI
(
.
auma
Waiving COIIPJiailce with the prorleiODS· ot
SectiCD 'Z1 ot the • rchant .Karliie Act,
192J, . as aJIIim<ied;.
\
'·
B7 virtue
Executive
Qrder. No.
.
~
6441),
of the authority vea.t.c1 in •
8<176,
dated . December 12, 1941 (6 P.K. <--'
.
aa modified. by Executive Order No.
February 28, 19'~ (?
P.u.
by ·
9083,
dated
1609) , I h~reby waive complianc;e
with the· pr~ioce of Secticm 'Z1 ot the Merchant. Marine
Act, 1920, as .a ended (46
u.s.c.
883 ) , to t he . extent
neceaaary to parmi t the tranllp9rtation of merchandiae oo
Cclad1an T88sela between pointe
.
in .llaaka,
' .
end
ala~ ~
perait the tnna.portatioo ot .m rchJndise c:c c,.n&dian vuaela
between Prince ·Rupert, B.
c• .md PC?inta
~
.llaaka, as a
portion o.t ~ · transpart.atic:c of that ~diae be~
pointe in the · thited Stateo m~ points .in :AJ,aaka•
.·
For ·Publlcatico ·
h.deral Beiiater ·aen.. Jlo•
.~i..·- >~dl :ri. 1942.\
)
~·
(
·\
.
21
131.1
1Wl %'!'
l
1942
· :·
\
TITLB ~- - · SBIPPDQ.
' /
Subchapter A
~ ~t.at1oa•
llltnnce aDd ~ o1
· 'Vueele, ·Ito. ..
·
Waiving ca~~>Hance witb ' the proneicma of
Section :t1
ot
the •rchmt Marine Act, '
·
.192:>, as mended.
'\
Dr.· virt~ ot
-
the :author1t7 vested in • · b7 ·
Executive Order
. N<>". 8<176, dated Deceabei:" 12, 1941 (6 P.ll.
~
6441.),
No. 9083,
u . IIIOdi!ied. by Executive Order
dated
Feb'ruary 281 1942 (? P.-U. 1609), I hereby waive compliance
with the
pr~iona
¢ Section :t1 of the Merchant Iarine
Act, 192:>, u ·.818lded (46
u.s.c.
~),
to the . extant
.
.
neoeesa17 to permit the transportation of
.
me~andise ~
.
.
Canadian veasela betwen points in· Alaska, and alao to
pen&J.t tbe
t.rana..portatioo of
between Prince Rupert, B.
c.
•rchand~se ' en
md points
c_anadian veasela
in .AJ.aaa,
aa •
~en of tb4t ·t~ticn of that -~diae between
points in the thited States md points . in .Al.ulca.
(Si~ed)
Bel'bert. I. QutOD
~f the Treasuey.
S.Creta17
Act1Dg
lor ~bllcaUC111 .·
Federal Repater Ser1M llo.e
\
~~~ -)llrcb 71, 1942.
\
(.
~
.) .
\·
.
·.· . ' 23'
..
F<>r your -information ." ·
Mar ch .2ft, 1942. .
To:
Arch~bald
F-rom:
Al ~'n Barth ·
...
-/
.
'
MacLeish
.
.
.EDITORIAL OPINION
ON THE ·wAR:
.
LULL B~FORE Tfffi STORM
'
..........
.('
I
Interl11.de
.
.
This year ' s Spring fever is. ·8. compound of. hope,-. appr.e hensio.n
'
. and unrest . Fo~ months p~st, the country's editorial pages have . .
forecast this Sprine\ as a time of testing, as a clim.a.x- of the war- ·
in which t _he whol e .future of the world will be determineq.
now, suddenly, · ~om.ewhat ~frighteningly , the fateful season
And
¥
at hand .
/
The newspapers are filled with speculation ·a s to the ·direction ·which · events ·will take in the weeks and months ahead .
How
. l_argely they · acknowledge. that ·initiative stlll ·rest.s in enenzy: .
.
.
.
hands is pathetical_ly attested by the· focus of attention upon what
Germany will do next . · The edltorial · wr~ters are bracing themselves
·ror a fresh
~·xplosion
of Nazi f:ury in . ~ussia, in the Middle E.a st,
· in No"rt~ Afr i ca, even, perhaps~ once more against the ." Bri.~ i sh
Island .· The m.o s~ hopeful fe~ture ·of thi·s ·outl ook is a conviction
that this Spring hQl ds the l ast chance for a Naz~ triu~ph.
24
'
Continu~d- and synC.hFono_us. offe!l~_ive · action-by Japan is
a.~ticipatea .
The prevailing beli,ef is that· the .Japanese' wi~l now,
concentrate . their- efforts - o~ :India.
But the·· ex-isolationists :·
have visions of a f·re ~h a-s sau1t u1?on Hawaii _; the Ne'! York Daily
News _and W~shingt9n ' T.~~es~Herald. continue_ to put at the head of
t~eir. e~~to~tai
pagea, "Mike
H~~aii ~mpregnabte ."
Some cqmmen--
- tators expect -the· Japanese, . -in add~tion, to th_r~st at . Rus$ia 's .
eastern maritime p~ovinc·e -s -.:. -per~aps _b ecause , ·in t _hls contingency_,
they glimpse a roseate hope for American bombing raids· on T'okyo
0
-
\
-
. f rom Siberian b..ase s .
0
-
-
_ The variety_of spec11~ation ·about .A xis plans is a trlbut~
to those· who _plant enemJ propaganda.
As the St. Louis Post- Dispatch
ob serves , "Aj ax and ~tlas must sigh wit_h .- relief these days ~s they
/
-
-
-
contemplate the p~ogram of Spring activity worked out for Hitle~
-
-
-
"and ~~ein Intuition 'Qy American ~ews co~imta:tors, for~ign observ-ers
anci reliable sources from Ankara to Ne~v Delhi ." ·
Editorial ardor for a United Nations _off"ensive this Spring has
ab ated in some measure; ·the difficulties have ..become more real.
..
.
Nevertheless there is general insistence that ev.e rything possible
.be. done to s~~d sup-p lies· to MacArthul'.
With gfow~ng vigor commen-
tators ,suggest_the ope~ing· o·f a ne\'l front in E!irope as .the one - ·
· cf f.e ctive. means of supporting Russ~a ~nd perhaps cr~shing Hitler now·
•
'\.
.
-
(
.·
·l.
·.
25
·,
On the. whole, th~ pr·e s.s
ives a sense of taut · expectancy.
It has tfeated the week's ~vents_, particularly a:qriouncement of
the N~vy ' s ·raids 'on. W
ake. and
Mar.~us lslands·,. with
.. du·e fanfar.e
.. ·
.
. . .
'
..
.
.
But there 1las been no g.e nuinely dramatic n~ws · -to c.ompar~ · with
.
. .
'
.
.the preceding we(ek'' -~ · transf'er of Genera~ MacArthur. · 'Editorl.al
'-....
I
·.
- .
. ~yes are on the horizon.
.
The }nterlude is ope of anxiou!S _waiting.
Nerves
. Waiting has produced an acute· nervousness·. 'And this nervousness may account, in -part, for an unprecedented wave ·o.f . d.i:ssatis. \
faction and ilnpati.e nce wit~ the Government.
It seems no overstatement tg deciare at this juncture that
<7
:h .
the Preside.nt is in danger of losing an essential part of the warm
confidence with which ill.ost American ne~spapers hav~ suppo~ted his
conduct of the war •. · For there is an uneasy belief that
fumbling .
he
is
And this belief is not conf~ned by any means to his
- enemies; it i~ shared, to some degr·e~.;· by- those wh.o have ~onsisten,tly
been in ful l sympathy with his forei~n· pqlicy •
.,:
The President's _e nemies, to be sure, have .sought to capit.~l~ze
on the . difficulti~s confronting him and i~ do ing. ·so have wrapped
themselves ~:n a mantle · o-f .martyr.do~~
Their constant-, plaintive
wail is that the Gov~rnment ~onsiders .critic ism. a.s tai:ltamount .
ow.
to treason.
.... · ~· ;3:..
25
.
'
.
On the whole; . the . press· ·g~ves
.
.a .(
ense of taut · exp~ctancr ··
It ha·s treated tlie week' .s events , parti~ulanly ~nrio~ncement af"
.
.-
-
.
the Navy • s raids an. Wake ·and_Mar.cu.s · I.sla~ds, ·with., due fan!.are .
But there has bee'r( ~o ·genuinely. ·dreinatic news to c~mpare w_ith
the prec~.ding week's tr~ns'f~r of· General MacArthur . Editorial
eyes are .on ·the h~~zon. The ·i~terltid e 1is .one . of ~iaus wa:iting._
I
1
Nerves·
.
.
.
.
Waiting. has produced an acute nervousness • . And .thiS' nervous-ness may account, in part, ·for an unprecedented wave of dis-sat.i.s\
faction and impatience·. wi t.h the q.oyernment.
It s~ems no overs~atement ·:9 declare at _this JUncture that
the President is ill: danger of losing an essential part .o~ the warm
confidence· with
~hich
conduct of the war~
f umbling .
ino st American
n~wspapers . hav~
supp.or.t ed hi s .
For there is _an uneasy belief that he is
And this belief is not conf.ined by . ~ny means to his
- ene~ies; 'it i~ shared, to some degree;· by th~.se who have consi ~terttlY
been in ~ull sj-mp~thy with his foreign· policJ7.
-
The. President'' s enemies,. to be sure, have sought to capit~lize
on the difticulties confr~:mting him and 1n doing. so have wrapped
themseives in a ma!l~.le o·f .martyrdom.;
Tl).ei~ constant,_ ~laintive
wail 'is that the Gove,r~ent considers criticism. as tantam,ount.
to treaso·n.
>.
.
26
:Much
·or
the criticism Ir m supp.orters of t_he ldmrnistratiori' s
foreign pqlic_y , it is true, is_ d~rec_~_ed ·at Labor and .af the soci~r
~
gains of the . New Deal
-- · a~_: the
principle of · t~e -4Q..:hour
~eek·
in
particular~ But despite. the ·synthetic char~cter o~ many of the~e
complaints tj).ere<is .a: sense that the Pres_ident' s leaaership . has
.....___, .
·-
-
1acked i oughne s s and f i rmne s.s,. 1
I
· 'There · is a~ angry feeling - ~ong editorial writers of every :
.
.
.
.
.
political coloration that the Goyer~ent· is coddllng and cajoling
.
.
t he American people ·. \ Dorothy.' Thompson gives acidulous ex;pression. ·
.
.
.
t o this feeli ng in _d iscu~~i.ng a· series of P8Jlll,>hlets prepared ·by
_
the War Department for mothers,
wives and sweethearts of soldiers:
~
~
...
"It seems, -readi~g them," she says, "that the American Ar.my is .
some sort of Ye pld.e Summer C~p for the spo~led · and blase. children
I
of doting mothers •. · The purpose of t~e ·pamphlets, of course, is to
.
.
.
'
convince mammas that their darlings ave having the t _ime of their
lives in the .Army •••• God _forbid that there shouid be . any indica-.
t ion that . the American .soldier is going to face and risk death--'risk death fo·r America, for .freeme.n ~verywhere, for the' salvat.i on
..
and security of _gen~rations yet· ·unbor:_n. n·
. Newsp~tp.e:rs eve~he_re - ~xpress ·a .deep conviction that Americans
_now understand_ the m~anin~ of thi~ war, are terribly in earnest
abqut winning it and · n~ longer need to be enticed, _ wheedled or
.\
5 ...
eri~ . their share of the burden.
otherwise .~ ent~~d
·The e.d i tb.ri~l ccy is ' tl;u~t the· P.~bli~ ·cannot .r eas9nabl1' be
'
expected .both to 'J.ead .~n&. to follow;- it needs and d~mands direc .
.
'
tion from/ those . it has . cha.se.n for leadership;
If . the. press. c~
.be taken ~sa h~ro~eter ·in · this sphere, . the America~ · people are
ready, and' indeed, eager for_· ~rch~ng
'or~ert.
They -wan~
th~ir
Gove.rrunent to be tough, d~ter~ined an:d,, abQ·V~ . al~,.·. ~orthrigh~ ~
.
.··
.
They don 't want the war to be "sold" to them,· as ' though they
-.
.
were children obliged to take a
'\
~isagre eable medicine ~ .
They
.
have enliste~ ·:voluntarily and want command, not conciliation or
comfort , from their Government .
The ·uom.i nant theme of 'the press today is that the President
nas failed to assume authority as Commander-in-C.hief of the
United States on the· home front.
.·
s
:
...
•,
'
.
~
...
"'-,5 -
otherw:is·e gentl~~. in~o · shou_lderf~
. heir share o'f the burden.
.
' j
The edit.ori~l cry is
. · t~a~ the. publ'i c. ·.cannQt r.ea~onably .be
expected bo·t h to lea4.'a~d to f.o:l.l ow; ~~ needs and .demands ..direc·tion f~om those' -it has· choseJl, for leadership•
If the. pr_ess can
b~ taken as a . barometer •in. thi's sphei;"e, the ·~eric an people' are
-
.
ready, .and
.
(
-
'
in~eed:; ea.g~r· for ~rchillft 'or~er~ ·•
Goverrunent . to .be.. t.ough, deter.mined,and,.. above all,
.
.
th~ir.
Ther want
_ forthr~ght~
They do'n ·' t want the war to be "·s old" to them, .a.s thougl:t they
..
•·
.
were children obliged to take a disagreeable medicine.
'
They
.
have· enlisted volunt·~rily
and want command, not conciliation or
.
comfort, from their Government.
The uominant. theme of the .press today is that the President
.
.
~as ·f ailed t o assume authority as Commander-in- Chief of the
· u~i t e d
States on the home front •
.·
:
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.' . · MAR. 2·7 1942
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BRITISH AIR ·co.M MISSi_O N
. 1'788 MASB~CHUBETTB AYEN~E
WMHI~~N. D. C.
~ON~ 'HOIIAilT 8000
' /
·-......,
(
I
With the comp1iment b of British Air Commission
whP
\
enclose Statement No. 26 - Ai rcraft Despatched
- for w~ek e1,1ded Mar ch
24, 1942 .
The Hon. Henry l'olorgenth:au, Jr.
Secretary of the Tr easury
.Wash.i ngton, D. y.
March 2:7 , 1942 .
. u.i.
IA
canada
Canada
U.K.\
U. K.
6
Cauada
<:a,nada
12
New Zealand
.Australia
Australtil
Auckland
Sydney
Melbourne
10
20
2'
,.
t
• · }fiddle Eaa t
Port Sudan
17
- flew Zealand
.Australia
Auckland
Melbourne
13.
13
Buddon I II A- AC· 5 Canada.
A 29A-AC-151
U.K. Lodestar II4-c53
ll. E·.
Bomber
t
Canada
' 4
26
1
41
u.x.
BollbAy
5
u.x.
31
74
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122
'-
.
BRITISH AIR . COMMISSIO.N
1788 MASSACHU811:T1'8
W~HI~GTON,
'hUl"HONK
-/'
A~UE
D. C.
HO&\IlT 8000
(
I
With the comp1;i.merits of .Ori ti~h Air Commis'sion....
whb en·close Statement No. 27 - ~ircraft Despa:t ched
for -week ehded ~rch 31, 1942 .
'·
The Hon . Henry /Morgenthau, Jr.
Secretary of the Treasury
Washington , D. C.
March 27 , 1942.
-·
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--
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~
........._
Midqle Ea,st
Port. Sudan
4
New Zealand
Aile~
8
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c anc;.da
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U.K.
U.K.
/
~dele ti:.st
Po:-t S\:.Can
canada
Ce.nacia
Canada
Ce.nacia
-New Zee.land
Aucklan:f
U. K.
Ce.nade. en r oute
U.K.
U.K.
•A
19
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3
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92
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1.5
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DJ:P~ OF . sTA!l'J
wASRiiiG'!cm ·
March 27. i942
(
In
rep~efer
,]'}) 851.515/156
to
~ Secret~
(
I
of State presents hie compliments . . .
to the 'Honorable the Secretar.r of the
~rea.ur.7
encloses copies of a\ paraphrase of telegram no.
dated K(u'ch'·'26, 1942, from
-
the American
and
185,
Qonsul~te
·
General, Algiers, .Algeri-e., conc8'%'Jling sh ipments of
gold to · France from Algtlria.
/
Enclosure:
From Alciers, no.
March 26~ 1942.:
185,
.'
-\
•
"58
c
0
p
'y
\
.
.
:rROM:
· American Oonaulah
General, .llgiera,:
.
. ..
~
DA!rJ: ·
Karch 26, 1942, noon.
NO.:
185.
Rel~le
ia.fol'll&ti.on baa been receind by
.
.
I
.
~&er~a.
Kn~x
and
Boyd
. to ~h~ effect that -:fro11.. JanU&l7. 1 · to March 13,
.
.
~
incluain, a total . of 18845 kilo• of gold has been ·
ahipped to ?re.nce from .llglers by plane..., The weight of
cases 1a i~cluded in \1118 total.
Forty-three t rips· were
made 'to •hip'·this ~ount o~ gold.
By despatch I am sending a detailed ' statement of the
day
by
dq shipments.
This telegram haa been
repe~ted
to Vichy• .
COLi
to Casablanca and ·
..
59'
.,
F.rom:
Sent ~
Reed:
Buenos Air.ea
¥ar~h 27 •. 1942
March 28 ~ 1942
/
Federal Reser,ve
......_
B~
of _New
~ork
(
I
. In ord.er. to increase our gold reserves , p lea se buy for our
·account· gold bars for t he equivalent of
u.s.
t he gold bars ' ea.rlila.r ked for our ac.count.
'$4 , 000 , 000 k~p ing
Qable execution.
\
'·
/s/ Banco Pentral de l a Republica Argentina
r
Received by telephone from :federa l Re serv!'l Bank of New York, 3/28/42,
. l0:20, .. kma
\
.• \
J •
60
FROM~
JUMriou 'lllbaaq, · X..n4oR, b&J..u4
DATE :
lrfaroh . 27, 1942 , ~0 - p -~• •
'
1;488, seo-tiou ,-1,- 2, ' · 4
NO .t
/
This message is 1n strict
oonfide~oe
t'ro.m Ca aa.4q:
(
and Pe~ose~or the Secrotary: ot the Treaau%7·•
.
(
.
The alleged d1t:t1oult1es-.1nvolved in .:t he pr ese.q.t
system of ooll eoting at t he
•ource t he· _i nc ome · tax on. the
wage e arne~s ~as raoentl1 oome under considerable diaouas 1an.
2 , 500 , ouo. wage\ earners came und~r t his s ystem in· ·
1941 .
In January 1942 3 , 900 , 000 more workers
vrugo levels w~re brought. i nto t he system.
at
lower
There was a
delay f or ov er a week ~u getting thw f orms out because ot
t he extraordinary prossure of work on t he 1n1and ·r ev,nue .
Considerule compl i cat1o.ns were ca used for some time by. t h ia
delay .
The present system has been attacked by some ot ·t he
~e ekly
journals , · newspapers .and a numb~r ot employers . on
t he tollowil18 · ground~:
Beoause ot t~e· great eom,P~exity of t he present
l.
met hods t hey oan.not be sv.ti. ~actorily explaine·d to workera .
Wor kers in the lower wage brackets under th~
. .'
systam ot assessment are subjected t~ ~hip .
2.
I n relation to the t~st ot t hese po1nta. it mAY
..
r easonably be held tha~ t here was a det1.o 1enoy .o:t e'Xp,lanatory
propacanda
\
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,,
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61. ·.
propagan~ .
· Not until ·:re bru
1942 waa t here 1aaue4
~
'
etteotive pamphlet. INOOlm TAX ~UIZ li'OR '//AGE EARl~ .
Ot her met hods
ot
spr eadi ng propaganda suoh
.
/
ina~t io1ently .
seem to have been used
of extrem4
t _he
the ra41o
The. tmoompatib1l1t7.
s1mpl.1o.1~y
in t ne· w~ t he tax is as,seased and
.........
.
.
.requir~ments of_ e quity
4SPOkt?smen
as
~ve
is t; strong
erg~t
Government
'
advauoed but t-he most does ·not -seem. to have
been made of t hi s argument.
Regarding t ·he ae oond of t hese pointe i n a s muoh aa
only thre·e months ot 'the yoa:r ot assessment and nine mont ha
' · year make up t he· .per i~d i n whioh the t ax
of the fol+owing
is deduct ed, the ar gument
h~ @
been pr esented t hat t he
deduo~
t1on of tax· may come at some time \vhen because ot seasonal.
fluctuation ; illness , or lack of employ~ent at t he end ot
the war , th~ current ·wages of t he workers are far below
· · the average t hey· earned during t he a ssessmeJl.t period .
Some elabora te and i ngenious sohemea .to
-r~pla9 e
the
pr esent method of tax~tion by a ·-aystem of oUJ"r ent t axation
or wages making the yea.'r of ~eduction and the base year
ooi no ide have .been worked out by a few employers and the
Inland
B~venue 8t~tt
Feder ation .
:ror a time t he Gener a l Counoi l ot the Trade Union
supported one of t~ese s ohem6s and pr essed- the Treasury to
adopt
it.. K87nea 1nd.1oat-ea, however , that aft er oonterrina
with
(
\
tha~
demands atld t hat at present 1t seems ,unlikely
will be a ohanse. in the aya~em.
ditfioultie~
there
It seems obvious t~t the·
been g~eatlr exaggerated by the as1tatioA
·haT•
by the London ECONOMIST
~
newspapers and t hat the 8)-atam..
is· be ins ao~pted . and ~s o~ to atay at l east tor the
.
(
dar ation ot. the war in ita geuera l
~oms
~ines .
ot t he_ arguments whioh .caused the Inland Revenue.
to veto t he pl ans to .make the bas.e
ye~
'
a·nd t he year
ot
deduction ooinoide ure as tollows:
(1) At a
~
\
when olerioa l labor l s very scarce, sqoh
pl ans would. involve more wor k for employer s .
.-;. . ..
(~)
Deductions f rom wages bused on oomput ntions by the
employer would be
invo l~ed
and no oppor t unity w9ul d ·be gi •en
t he work to question t hem unt i l the end ot t he .Year .
Now a
notice ot assessment· is r eoe ived by t he worker and he can
a;)peal agai nst it before the deduction of
flll.Y
t ax.
The
Inland Revenue tell.a the employer in u.dvanoe who.t tax to
deduct.
(3)
~sually
not until t he end of the wee~ does the
employer know what t he tota l ear ni ngs or· t he w'o rkers are .
Under t he proposed pl ans all t he computations ot t he tax
would have to be done on the last day , wll1oh would be
. tmp~ssible so the~e would a l ways be a one week lag.
\
\
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.)
)
TREA.S URY ,DEP
.
INTER OFFICE ·c
.RTMENT
~
.)
. .
.
.
~oe~ .
rv~e>
),?~
/
DAft
. ...
\
)(UQ}l
27
t
19~
.
Sf~~&r,y Morge~th&n
M~·
Dietrich
• /
c ·o -N ·FtQENTIAL·.
Registered sterling transactions of the rep orting banka · v~re aa followa:
Sold to commercial concerns
purChased from cOiillnercial :coneerna
I
Open market sterling held at
£103,000
. £ 20,00?
.
4.03-3/4, ' with
no .reported tra,lisact.i ons.
In New York, closing quotations f~r t he for.eign currencies list~d below
were a s follows:
.Canadian dollar
Argentine ·peao (~ree)
:Brazilian milreis (free)
Colombik p eaQ
· .·
l<te.xican p eso
urugua1an peso "(free)
Vene~elan bolivar
Cuban p eso
13~ diii'count
.2370
.05lb
·5775
.20b4
.5295
.2815-
l/Sc}> _premium
I
•
In ordn to increase the stabilization Fund's gold balance, we .purcha aed
$2~0 ,000 in gold from the General Fund through the New York Ass~ Qffice.
.
The Federal ReserVe Bank of . New York reu orted t hat the Bank of t he Colombian
Republic Shi pped "$284,000 in gold. from Colombi~ to the Federal .f.or its account, for..
sale to t he New York Ass~ Office •
. In London, sp?t and _forward silver · r~mained at 23-l/2d·,
and
eq~valent to ·42.oU."
. The T~easury•s -purchase pr ice f or f ore"ign silver was unc~ed · at 35;. Han~
~arms.n•s settlement price for foreign silver was also unchaJ:l8ed at 35-l/S;_.
"\'le .made no purchases . of ailver t od~ .
.
·
eow
No.
BRITISH JI)ST sDBT
13
:--
) (U.S •. Sl!XlRET)
63
OPTEL
tfs?,
lQ1
~
.
1,
.·.
~
Information reoeived
p to 7· A. u.,
27th ~ch1
1942.
NAV/:L
On the 25th. a.nd 26tll I! pping at MALTA was hea:vil,y attabked by a tohl
of 160 enemy aircraft. Of" the con~ recently arrived a Norwegian· ~ a Briti sh
ship were hit, but it is hoped to 811-ve part of former~s car,go and nearl.Y..all the
latter ' s. H,LI. Auxiliary Supply Ship w~s set•-on fire and is expectod to s~.
One of H,M.· Cruis~s was holed by near misses but is in J?.O danger of ~i.nld.ng. H. M.
Destroyer was hit and sunk. . A. s1,11:marine was badly damaged by near ~sees and a ..
neat o:Uer had to "be beached~ . To!l enemy aircraft l'Jere desi;ro;ted, four probaply" .
destroyeft and fourteen d8118ged. H."M. Destroyer and a Fleet..OUer \19l'e torpedoed
and sunk North East. of SOLLUM early on 26th. Five Officers and 45 Ratings- have
been ·rescued from the Destroyer and 20 Officers and men· from the oiler. Survivo::s
have been rescued from a Dutch tanker reported on fire off NOVA SCOTIA.
r
.,
w
BURJAA. 26th, SI'l'TAID ERONT. .F ighting contlnues in th~ YEDASHE.o
TOlflKiOO area wh~re about 1 1 000 Japanese are engaged. : Our losses ar.e remarkab.l,y
small. Enemy .has side- stepped . TOUIDOO and i~ reported to hav:o occupied KYUIDON,
· Stout r esistance is paing offered and the Chinese troops fn TQUN}OO have been ordered t o fight it out~ A further Chineso Di vision has arrived ~ PYANMANA.
IRRAI?ADDY Front, Enemy f orces are r eported at KYAIDlN 40 miles south or· pnoi!E· and
at t hree localities on the PROME Road, but there has been no contact yet.. C.hi .n ose
forces are reported to havo been engaged between the 17t h and 20th 1}1i;h a Siamese
f orce l ed by Japanese ~ the area South of MONGTUN.
·
,RUSSIA. German· counter attacks continue in the area west of .RZHEV , ·
Sonth ~st of YUKHNOV the Russian advance . towards YELN'.lA has mado further progress.
3.
ed
ombian
t. for
Am OPERAT!ON3
~
i!ESTERN FRONT. 25thf26th. About 225 tons of H,E. including fo urteen
·, , 000 l be,, f our 2 000 lbs., and fifteen 11 900 lbs, bombs a nd 27)250 incGndiaries
1
!a?pr oximatcly 60 tons) we;:-e dropped on FSSEN. Visibility 'l'lll5.'i~Ood but with mtich.
~round haze. !.!any large ( ires and explos ions· worG r oportod in the town in Kurpps
:rorks and in the railuay centre . 26 R.C,A. F., 10 R. A.A . F. and "9 Ner1 Zealand aircraft took part. One of tho latter i s missing. At ST. MAZAlllE, 40 t ons wer e
<l:,opped. ;in good visibility.
.
26th. 24 Bostons escorted· by 60· f ighters were sent to attack shippir.g
at LE HAVRE. Direct hits were made o~ a possible raider and on warehouses. _ Eight
enemy fighter s were shot dogn and ~1o damaged for the loss of 2 Spi tfire s and one
3oston. Hudsons·attacked four merchant vessel s of 2,000 to 3,000 t ons off t he Dutch .
·
·
coast and .~obably hit t rro of them.
26th/27th. 19e a~crart ncr~ despatched - ESS~N 115, Seamining· 36,
Propaganda l eaflets· 15, LE HAVRE 1, 011 r efineries near ~HENT 8 1 intruder operat i ons over enemy aerodromes 16. Visibility at ESSEN was good, Intruders destroye:'t
Oll<l and. probably de stroyed another enemy bomber .
lCi R.C.A. F. , 7 R. A. A, l!'. and 7
~en _?caland aircraft took part. 15 aircraft are missing i ncludi.ng one R.C,A. F.
About 30 enemy aircraft. operated over our North- East coast of nhich ten penetrated
inland. One rnlS shot down by anti-~rart.
·
24th.
54 bombel>s 11ith 1'1ghter oecorb at.t.aeked. AKYAB a&J"odx-<-=>
2 menheims on. the ground. Cnc enemy aircraft was
.:~•<)t dcl'l'!l, three probably· dostroyed and t no damaged. l'le lost three Hurricanes. .
r. ' -':renee :QPTEL No. 97 • MAGYIE. Further reports indicate ·that out of 52 air era:•.
or. ..he aerodrome 22- were destroyed, 8 are r epairable and 21 uere f l0110 a"~JSY.
BURI!A,,
a'lJ destroyed 5 Hurr.icanes and
'~'
HOIJE SECUR:r!J
ana
• }I
26th/27th. Coke ·ovens were damaged and s ome Benzol e.
oil lost at
·· .;J.lton Colliery near DURHAll. Bombs also serious.l,y damaged the By.-produots Plant.
D.\:'i.hg :the week 19/25 March the· average scale of Gorman air attack ' on I!AL~A and
s~pping in the ·vicinity w8~ about 150 aircraft per 24 hours. This is the highest.
. 5 ?alo yet produced here.
bre are ~ow over 400 German all'oraft .in SICILY of whicn
. acout l./3 aro bomber types which is the ~atest concontr.atio~ ev~ assembled the!"eo
~~'1!"1.'lft[
i:'~~·.J.9to.r~~·~~~!;"~~~
&"'ll:l:Thiitflteds .Q~~
qs_ve and onl.y aboUt .~~ ;;c':the
a;cliioved duriiill Deoemoer.,
s r uot.1on
~
~ par.~due
to inareil.se against llAI! ~ Thoro aro now al5out··25 F. n.200 aircr~the
.. eng
long l'8Jl80 Conder TlP8Y in: IJS!IWUt and NCI!HAY· vh!ch also rewesonvo
teargel}t conce~;~tre.tion so ftJ;f of this tYOe in those. a:reas• ·. They are probell.l,y i.no- •
~ad to proVide reconnaissance for the German. NaVal. uruL~·· ·
.•
.
.)
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<t).VC.~ ..
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*--'-4~
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~n. ~et r'~~~~- · ~ ,oUr~~" ~~ ~~
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1
~b~ ~- \"0~ <c . ·s\)'\~~ . \:.;_~,~ · ~~\ ~~~ ·
\oo-;~ · ~\~o..\:-? ~ . ~o.d- \~'<P-~ . <&\v ~ '{cv' v.:>'~\\ ·
\..-.. ~ ·. ~ v...to~ _~-\- x~. ·0-~o~~\\~l.~\~
I.A.
\\ .ti.
"S"<"" .
'
.)
t llE FOLLOWING,
.
•
.
ME~SJ\GES . WERE , n:i.EPH,ON~·.!'D ·yo ' THlS
.
.,
,
TRANSMISSION BY TELE1'YPl:
\
·
,
\
OFFICE' LAST NIGHT 'roR
"""'
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•...·
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I
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4
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... • .
:t942 MAR 28 .. aM 9 ·02 ..
.
\
FOLLOWING MESSAGES TO
'
~BE DEL'IVERED AT NINE A M MARCH 28TH
'-...,_
I
. HAROLD GRAVES
TREASURY DEPARTMENT WASHINGTON D C
\
"·
.
'
I THINK IT WOULD BE AN EXCELLEN-T IDEA FO.R US TO GET PERMISSION TO
PARTICIPATE IN ALL' ARMY DAY PARAnrs.
I Sl,JGGEST HAVING SEVERAL
.
/
DEFENSE BOND FLOATS IN EAC:H · PARADE. YOU WILL HAVE TO MOVE FAST ·TO
ACCOMPLISH THI S.
'
HENRY MORGENTHAU r~ JR
--.
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)
I
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I
•
<;r
/
.
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.
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.
.. . .
. Froau Lieut. _Stephe.
-·
.
. . .
:
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Str¢andNo.
.
Pkzce ·· (To
· . WASII!N(jTO~ .. O.C
.
6~ 4$/,·:,e~cr goo#!¥; tEwr) IYt>('Jtl): ~o~~)
I
)
J
·.
\
.··.
'l'otal nualMra'
OeuDti"J'
Peroent
ot totd
expoee4
167
- l •'301
tg
1n tbe'
.
)
· ( ut1u:ted)
Part A
1ess organi za t i pns
' /
I '· La rgt rai lroads . .... . . ... . ........... , ... ...•
1 Other firms wi t b 500 employe·e.a or more •......
)' Oth~ r rirms wi tb 100 to ~99 employees •.... , <.•
I
. l5S
·5 ,534
~
1
~ub'total - large firms . . . ... . . .. .... :~. ... ,. ..
Firms w1 th l"'ss than 100 · employ.ees .......... .
32 12 2~ .
Total busi~ess organfr.at1on,s .' ~ . .... .' .. ·...• . . .
51',~2.7
total .... . ; . .. .._.. •.. ·... ..... ......· ... ; .. . ... -.. .
31t , 29l •
i? ,ltl3
I
5!
p
57
•
•
•
•
.....
.
.
.
rnm,ental organizations . ... . ................ . .....
a
gyn
51 , 637
'\
•
- --•
•
--- -.-
•
•
-
'·
Pert B -- Summery by Number of Employees Exposed1
r----
ness or geni ze_tions
/
) Large r ailroads . ...... .. . .' .... . . .. ...... ... . .. .
) . Other firms with 500 employ·tlf!S or more • . .... •
)' · Other firms wi th 100 to 1t99 employees ....... .
o$
"'
-....
•
•
•
•
•
·*
lSI 166. ~0.6
*
Subtotal :.... l a r.ge. !'irma_ ..... : ... . ........... .... ·
;)
Firms. with l.e sa than . lQO employees .. . ....... .
792 100!'l
,)
~ot~l .busi ness or ganizations ..............•• .
1S 1 95S 1 714
o~gan i zationa
.
'
.
•
.30 ,!too, 000
y
-62
.
?)
Federal Go.fernmerit • .. : ·......... ·..... · ... . . ·. .. .
State and local gov ernments . ................
.
.
397 , 9Sl
974 . 122
))
Total gover nmental organizati~ns ....... : . .. . .
1 , 372 . '103
ld total . .. .. ..... ·. . .. .... .... . ...........' ...... .
20 1 4JO ~ Sl7
.)
•
•
·)
!rnmental
·••
•
•
•
*
1 , 273, 260
13,907 1Sll
. 2,9S5,635
.
1·, 700, ooo· 1/
2-1700 1000 ,4 1460 , 000
31t , soo l ooo !}
'·
es agricul tural emolpyees., military ·per sonnel, employees on WPA or NYA or. CCC proJects,
etors, firm members, self-employed , ca sual )lfor l<ers and. person~ in domt>stic service.
)t ava ilable.
'
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!tate .
28
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13,192 -
13.710
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26 ,875
a, no Karch 28
repor~ -~• ~ece1ncl ,
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ri'l'llle .llllp1oJ1ng 500 Persona or More Psrt1o1pa.t1.ng 1n p
'
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---1.2"
' 76
~
!2
..
~-
<7
Daily changes in the stock of Series E ·s4vlngs' 9onds
.~
":.:::-
~
(In thousands of pieces)
ila;roh ~6
271
17
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~
(:
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211
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.
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'J)
Inol"des . atoqk 1n hands ~t· (1) Federal· Reserve Banks and brandhes, . C2) Po·a t Grtloe'
(3) redei'al Reserve Bank 1ssutng· agent s , 'and (~) ~r~a~1 vaults 1n Wf.ahillgtGD.
(\
S!ATJIS SAVDGS :BOBDS
~.E>
Sal••
·
Dvinc
Oo~~pJU'atin Statement ot
J'irat Twenty-thr ee Buineu DaT• ot Muoh, J'ebru&l'T &ll.d J·an~7
·
{March 1-27, J'~b!'\la%'7 1-27, Janv.a:rr L-27)
·
. On Bad• ot Iuue Price
(~t• in thoua&D4e
1942
\
ot dollar•)
/·
Salea
n.
hrlee
a-
~
:
:
Karch
I
.
• ~.361
301 1631
$14o,490
' 44o.Qgl:
303.008
37,154
162,053
385~992
,119
580 •.492
65,634
261,.655
$J302.215
~11.121
$907.781
Poe\ otfioee · . $ 76,736
hri•• ·- ~
ler~•• • - total
leriea I' - Bulta
:
t
t , l'ebrua:'7 1 Januaq
226.272
}
.hriea G- Buke
_........."\
.
. !otal ,
0
2
.bout ot Iilor....et
/ or Deoreaee (_)
· Karch . 1 l'ebft&Z7
~,310
/
... 7.625
.
- ,..,.
1~.352
56.129
-·
- 131
1 370
: -. ~
82,914
13,156
82.766
- 1~.500
- ~.32~
- 16-..!l§
. ... 21.5 .
-tus.p
-Rg6.66o
..
-
-
-
~
- ·aao •.,.
-~
- - 26.1
' - .lld
-~
-~
Otfioe of tbe Seoretar'7 of the !re&SU1'7, Dh1.don of llee4farch aD4 Stadetice ,; --------- Karch 21, 19112.
!
.
Sov.roe:
•otet
All fipree are depodh vith the
tr....urer of the United State•
· of aalea of United 8\atee •a'rlnge boAde .
total•~
to
a44
7
nec•eear1l
not
will
&D4
thpuaand
neareet
to
J'ip.rea han been rOunded
I
i
.,
.
on a409Ut of prooeet1
.....
.. . .
I!'A! rE
~Tm>
"
uvnra.s
BO~
·
o~ Sale e DariD c·
J·anu ar7 1942
and
&r7
J'ebru
h,
Marc
o~
' J'ire t Twe nt7-t hree Buai ue .. Dqe
.
)
1-27
(March 1-27 , J'~bru&r7 1-27, Ju'U Z7
e
Pric
ue
. OJl :&ae h o~ I ..
Ooiii Para tin Stah meJl t
I. ,. ~
(A.o unte in ·thou eand e ot
do~lare)
./
··
na
:
~ l
l
ler1 e• • - Po1\ Ott1 ce•
lerte e • -J BuD
Ser~e•' • - !o\a l
ler1e e Jl - Buk •
. ltr1e • G- I&Dk1
_...... ..
. tota l
0
Ottl ce ot t!W- hcre t82'7
{
.
Sour ce:
•ote l
Sal
'
Karch
l
I
I
et :
ee
l
J'el)r uary : Juua ry
l
• 76.736
226 1 2!2
$ .A .361
$14o,4go
"44o.Qgl
303,008
385.992
JQ1.631
162.0'53
~,310
2 .819
580 •.492
65,634
261.655
~02.21~
.6Sl .l21
·~oz 11z8t
37.15~
ot- the
.blou n' ot Iaor....
I
1
or Decr Mee (-)
1 /
:
'UZ'7
J'e'bl
I
.
h
Marc
..
·
I
1
~I
O'fH'
I
OYer
I
Ju:u :r7 I
: ~ ·Jieb .run. I
/
-
'
or Dt! rwe (-)
~.
I
0.,.2' . •I
Jle'bi'UI'T I·
- g.-
-· 7,625
z~.J~~
9
56.12
-·
- 1JS
1 ]Ig
··-n i,q
-
82,984
13,).56
'· . - 21.5 .
-· 26.1
82.76 6
- 19~.500
- ~.32~
- 1&..836
-nz8 .2o6
-t226.66o
-~
-
ot· lur! Me
PerQ at-c -
l'ebJ'U.17
0~
~~
- ·~~o.-~
- .lld
-~
I
!rea sui7 , Dhis ion ot Ree. arch aD4
, .Statllt1o-e~-
ICaroh .28,
aoc9 unt ot proc et4e
ot the Unit ed Stat e• on
All tipr ee are clepo aite with the !r•a urer ·
· ·
·
a.
botl.d
&e
aaTin
e
ot aale e ot Unit eel State
1.
tota1
to
ad4
il7
aaar
aece
not
and aDd will
Jli~e• baTe ~een rOuDAed to neat eat thpue
I
·~
~
19Q .
/
I
UNITED STATES SA.VIliGS BONDS
. Da ily Sales - March , 1942
On :Ba sis of Issue Pri·ce
. (In thous ands of dolla rs)
Poat Offic e
BoDd Salea
Seri• • J:
Date
.' Karoh 191f2
2
·.
12
1'
1 .
16 ·
. 17
5.•8u
2,975
3.39'5
.
~
56 . .
7.
9
10 '
u
.v
~•
~,869
J
..
,179 '
..
3.~
'
~.967
.
./
•.
I
•'
lS
--::-"' '19
20
21
,. ,
~'~
27
!o'a l
I
I'
I
I
.
2,804
.3.156
2,616
2,682
2,797
~.~
2,967
2,552
2,559
3.510
2,662
4,362
2,297
3,003 .
3.olt5
2,515
•
.
Serb • J:
. • 15 ..868
8,~9
8,ru
10,
10,696
11,586
i8,636 .
5~719
10,002
8,U4
10,59~
6·,616
13.1R
6,3
7.097
7.9.11
13 •.306
7.998
13 ~9,5
5.3)0
7.982
9.3~
8,1
· Serie a ., · Seriei G
• 2,o43
1,629
2, 658
1,680
1,759
: 1,586
3.944
1,365
.1,533
1,133
1,<>6!)
'1,102
1,415
1,015
1,201
1,019
·1,511
1,122
1,953
900
2,207
2,002
1,315
~1
II
:SaDk :Bond Sale•
I
Tota l
II
Boll4
Sal••
S.rie a J: I 8er1 •• ., I Ser1e a G I
• 21,678 • 2.~3 • 8.726
$ 8, 726 • 26,636
~ 8, TSO
11,~34
1·,629
..
18,~~8
8,780
~.558
2t651
12 ·· .
2~,o4S
. 12,558'
0
11,87
1,680
7
1~.31
998
..
23
0
11,87
5
10,12
·
1,159
/ 23,279
14,~
10,~25
6,~8
1,586
15, ,..
19,1499 .
6,328
S,lta
3.9*
. 23.•~
31.o68
8,~8 .
11.,162
1,)65
8,523
p,24 6
~.162
1,533
8
13,15
18,823
7,287
'1·,133
5.
10,800
14,750
'
5..5o4
)
1,()6!
6
r
13,27
~.oo
6
16,66
~,007
1,102 .
.~
9.~13
3
12,46
•745
1,415
17"651
. 8,693
23.301
2
1,01 '
.
9.961
2,,61
9.~
1,201
9.
9. 50
9. 33 . 17•731
1,019
5.527
10,~70
~7
14,
5.527
, •.52~
.
1,511
7
16,81
20,3 1
5.524
1,122
3.7111.
10,66o
12,833
3. 714·
1,953 i
18,317
24,107 .
8,199
3.
7,628
900.
9,833
3.6<>4.
9,0"(6
2,207
I5
lOwJ
5
19,26
9,076
6,,1
2,002
12,-37
6,391 . 17,785
1,315
~
10.6
14;519
5,056
.
.1.=
'·=
'·*
!ot& l
$ ' 32.~7
.
r.;
21,P 3 "
21.~,
27.167 .
27.1151
22,979
76
.
.
p
~E CAS!S
.
· ~or Week ~IPIG ~ding Jfarcb 28,··1942..'
B$PORT OF· NATIONAL
~
.
rreri.ou~ report.eC:l cue• reopened · · · . .
Applications receiv~d· from· defense agencies to date
Investigations completed and repQrts forwardea to
d-efense agencies to date
·
5850
Applications w-i tndrawn · <
.
486
Application• tran8t~ to Dept.o! Juati~e 2852
Cases p~nding for 8(tt.e ntion. .
I
\
Status of pending cases:
In office
In 'f ield '
9188
I ll'
ll
ll
. Names eubmitted to Department . of Justice
· · 5/3/41 to date
·
'\
4282
Reports received on abov-e
2591· .
'Distribution' of Field Cases ·i n Treas1,1ry Districts ..
No.
·No.
No.
No.
No.
. No.
No.
1 2 -
3 ·5 6 -
7 8 -
3
2
3
9 - Chicago
~· No.
1-
Boston
Nevi Y.ork
Philadelphia·
Washington
Atlanta
Louisville
Detroit
I
1
1
No .·
No.
No .
No .
No.
No .
10
- ·Dal-las
City
St . Paul
13 - Denver
14 - San Francisco
15 Se-attle
11 -
Ka~sas
12 -
Number of Agents Engaged
in
..;,
and similar
TMs/Wo'rk .
3
Intelligence ·unit
AlcohOl Tax ·Unit.
Secret Service
Customs Serv.i ce· ·:
Narcotics Service
51
·. -
2
4
,.., flemarks
'.
Case• cloeed week ending Jfarob 28, 1942Of the ll cuH outetandi.n& ·6 •re reopened cas~e, .e:o there are 5 yet
'!n wbicb ·UO Wol"'l&tioc bu been turniebed o.E.K. by this office!'
.··.
.. 1218M . ·.
..
.78
-.
TREASURY
· WASH I~ . J)N
llarch ·28; 19~
.
MEK<iwmUll TO
/
.
TBI<SICRET.lRY:
There is sut.itted ,herewith the operating repor~ ot
''-......
- .
.
Lend-Lease· _pUr.cha:se~ for the week e~d'ed llarch 28, 1942.
Emphasis is being laid upon ~he ~xpeditiR~ of ~nd•
'
.
· Lease .goods to t~e _por~s. particularlJ '·the Russian Program, to· meet a.Va.iiable 'shiip~ng. · We have taken .steP.s
t o overcome the present difficulty of being without .information concerning ships until t~ey actually arrive .
at ports which causes a delay in getting goods to the .
.
I
ships, and to eff~ct this we are .now cooperating wit~ .
.
.
~11 agencie ~ concerned, p_~·nd1:ng t~e taking over of the
-
.
control ·o f sh:ipping by the recently formed Tran.sport
Control COJIIIIlittee which is expected to start·· functioni~
within about one· week.
·'ft:n'Wk
of Pl'ocurement
\
•
••
t
'.
'
~
t'
.
.
~
.
TRilSURY DIPARTJID'r, · PROCURIVKNT DIVISICil
~
!S)
CBlS
(PUR
<IfS
G!TI
ST.l1'1110T f6 ~TI<E, <ELI
IZLIVIRIIS TO FORIIGN GOV!IUOmNTS iT U. S. P<mTS
·
.lS re 1JWWB 28, 194.2
··
·
ars)
Doll
of
ions
(In llill
.lDifiNISTRATI VI
.
-.
'
f-:
Tota l c
I
.
· $212 . 8
(199 .3)
( 962. 0)1 (~1'1-.9)
.lath~riu·(Requiaiti~na)
Paro haH
tioa
RUSSI.l
U. L
$1393.3 ' $638.7
.&ll ooat iona
""
WD -I.Il SR
.
. 828 • 6. .$565.8 $213 ~9.
804.S) (660 .l) . (195 .5)
.
/
f
Rlau iaiti ou. clea red $ '7'/t .i, $545.1 . $185.1
.... .
Obli ptiC IIll
~···>
(Pur~
. . .( '158.4
.
ttDeliwrl •• to reeip Gofti'IIMDta
at u. s. Port a . .
(53'1 .1)
• 72'1.5 $515.0
(
(1'13 .3)
CHi n
f 52.3
51'.4)
t
45.6
. 45.5 )
.
f 40.6
39.6 )
,.
$1'13.4 (
$ ~5.8 .
( 35.2 )
266 0 $225.1 . $ 24.3 .
$ 15.0
( 14'. 4)
'104-0) (504.8) V-61.1)
f 268:0) (217.1)
(
2~.0)
IXP!RSIS
UBDISmBUTID &
'lt;1 :H"t :1: 1' 1 •
$ .9
<. .9)
.
r88 .6
82.5)
--
t
--
.'1
.7)
-
.
-?
t
8.3
3.4) .
t
8.3
3.4)
t
. ~
r)
..
2.6
. 2 •.'1)
t
.6
.5)
s do··n ot incl ude the tolm&ge that 1.1 eith er in ·. ·
ttn. l1ft riel 't o ·ro~e1~ gon lt..n·t a at ~. S. Portarea
for whiCh actu al rece ipts han not been re•
port
the
in
or
age,
stor
ait•
tran
•ta*le,
ator
.
oein a froa the fore ign goTerilllents.
n on repo rt of llarc h. 21, 1942.
.
Bote : Figu res in pare nthe ae·a are. thoa e show
)
-
,
.
\
.
l
There was a net increase o~ $431, 277, 022' in al:J:.o~
"'
. the week.
oations .for
I
1
-.. .·
'\
·P urohise 1uthorl~atiQns, R~qu~sitio~ Cleared
· for Purchase, and Oblig~tiod," ~inc.r.eased in ·total
and for all countries with. the exce~tion of Poland.
/
.
.
The ~ancellation of two contraota for 25,000 pairs
of · shoes an:d 250,000 rardl
ot
percale caused the · Polish
decreaatt ·.
..
.·
-··.
·.
\.
c
()
p
· Y
.
.
In repl3 refer to
J'l)
. Karch 28, 1942
.
<·
.
.
.
.
!he Sect'e~ of State ~reaenta llis "'complillenta to ·.
the ·Ho~ora~l~ th~· secretary
of the
I
T~e~~
and encloeea('
·.
·copies of telegram No. 193, dated''Karch 28-. 1942, from
the American · Co~eulate ~neral, Sydney, A~tralia, .reporting
.
.
the ' total amount of Treasury checks received from t~e
\
~ommonwealth :sank. , .
Telegram No.
'1o6
was _tran~mitted to th~ Secretary'
of the Treasury in this Department• 8 letter o~ Yarch
·1942.
1?•
The Department 1 s telegrftlll No. 128, Karch 27, 11 p.m. , ·.
waa transmitted to the Secretary of the Treasury in this
...
_Depa.rtme~t' s let.ter of Karch 27, 1942.
C.o pies ·of the
paraphrase_.of telegram No. 188 were transmitt~.d to ~he
S~cretary
of the Treasury
~ia ~partment's
Encloaure·s
J'rom Consulate General, ~dnq, ·
No. ).93, ~h 28, 1942.
letter of
)
m·
. !hte ~·1ecrU' .. .t be
:r:-r-Jhru•cl befo" be lac
co..unlcatecl to . ~o~e ·
. othe~ ~ a ~OYeromental
~ney. (llllt / ·
Dt.te.cl lifar.ch .. 28. 1M2.
· Rec'cl 1.2i16 a:.a.·
.
', .
S~cret~ of · Si~e.
I
Washington.
~
.
193, Yarcli 28, midn'i ght •
.Reft!!rl':'ing to the ·Dep1.rtment 1 e teiegrams iOo, March 14,
.
\
1 p.m. aggregate amount Treaaury checa received from
ColiiDiomrea~th
' .
Bank Yarch
.
.
26 .a,s9i.40. ' .
Ref~rring to the Department 1 a telegram 128, March ~ •
.11 p.m. Commonwealth Bank bad ,cashed Na'JY ·b ill specified in
~ telegram 188 and today presented the bill to this
. ..
Consulate Gen~ral for credit in ~eordanee with the Department~
s telegram 100.
PALMER
EI!B
··.
.·
.·
o -o
---P
March
~
28. 1942
""-.,
1eder8l Re•erte "!ank
ot
••w York
I
:
lew York · ·
·'
. Plea•~ pay-lank of ChiM .Iew York Agencj for credit
\ ·
of their IUDJD1Dt Office U.
'
.
s. dollars
. .·
83,159.81
I
.·
.·
CO~:cba.;3/31/~
. . . . . . . . .. ].9111
. . -~·~...
llan1l
29.
J9U•
I
Iew York, ·~ ~·
..
•
.
.
Pq ~o Claaae JlaUoDal :B~ of the 01\7 of lew . York fo~ ,
...
.
(8&4.}
"n&b~lt~Uon..Boari ~f
ChiD&
....
I
.·
. . ·.
.
.•
(Beceiwd by ••lephou fl'Oa Jea.ral
9:55· ..... Karch 30, 1942)
..,. .
iao
.·.
:a..ene :Buk ~.f liew York, 1.~.
.
.
..
PD·
Cain·
,!rhil te1ecra JDUt ·b•
parapbr~H4 betoi• b...
in& collllinmicate4
Date4 Muoh
-w ·
~c'4
8&12 P••• ·
8DJODe other thlla a . •
Go~eJ'IllllenlJ.l acn07• (D)
.
Se~retarr
./
of State,
Washington.
47B, March 28, 9 a.m • .
'""
Department' s ·1S4, ~c~ ·4\ l p.m •• paracraph 3.-
:. : Infon · Treaaur)/ ~~tm~nt ~~ ~~clq' • Bank
on March
cheeks
by
next
25 d~li~ered
to the
totalin~ ·$};4. ;3.
~uch.
.Lega~ion
C:heeka will
r
four Treaaur7 :
b~
2$,. 191ei.
forwarded
_ rep~
refer to
a6QD.4061 Kotio~
ptctu:tet/28
-~ 28,. 19'?
<
•
•
I
I
'
!h.~ S~cretaq of Sta.toe preee~ta his c~mj;liaentl to
the ·Honorable the
Secret8r.f
of tne ~reaeur.y ·and irana.
.
.
'
mit& :pa.raphraied eop~ea of telegrame, .no•• ·205., Karch 13, .
10 ~ m. ; 226, llal:"ch. 18 , 10 )t..JP. , and 239 , .Karch 26, .
'
.
.
.
.
:
5 p.m., recei~d from· the . .American _Legation _a~ .~ls~, · ·
COncerning the Pr8~8nt status · Sad fy.ture. prospects O·f
~erican metion .. picture fil~q expo.rta· to Fi~land
.
I
.
..
· vis-a'--rill blocked American tunda in l!'~land and blocked
funds of
Ji,nlSn"-
in the United St9;tee.
){eference· ia
· 111a~.e to ·this :O.:pe.r~ment• a Agenda Cases 3-2-1 and
~a-·1 supj)lement;.
.
.
::&ncloaureai
Paraphraaea o~ telegraM ·
nos. · 205, Karch 13,
226, ~ch 18, and·239,
Karch 26, f~m Be1dnk1. ·
· ·.
J'llCIU
AM'LWQA!ICII, . .lelldd.
.Dl!iD1
Maroh
ltJli!IRI
289
ai, ·l.M8',
Referen ce 1e
a ,.••.
.a to telec r• ao. 2ae, ll&nh 18, tr• LepUo e.
/
The oootere ace ot .a.r1c u l'lla Di8tri buton held ill 1\ookb ola ·
n
was attende d b1 the 1'1md.eh K.G.K. d1etdb utor • aD4. the repree entaU
41r.
yeete1'
d
of Parucn mt Mot1oa. Pictur e who retune .
.
.
......
e~tatt~• b1 the f.Gst that
repree
theee
v
felt
ia
n
ifJl~ COBcer
their hoM office • 1D tll~ United Stat•• an DOW reluot aat to ehip
filaa to the J'iDDiell aartet althOQgh the aeo••. .r.r licenee e per.
mitting the ehowing of ~rican teat~ picture e daring the fila
Which
aent
GoYern
h
year beginn ing J~ 1 had been grante d bT the J'innie
an feature
had gi'Yen ueu.ran c;ee ~hat, up to December 31, •ore .llller!e
offer b7
the
that
fact
The
d.
t..porte
picture • than uaual could be
e• held
balanc
of
g
eettlin
for
a
~llar
h
fUrnis
to
d
the Bank of J'inlan
in J'inlan d bJ the film companiee met with failure becaue e lice..•• J
permit ting the unfreesl~ of theae dollar • were denied br th~ . !reaeur
Depart Mnt 1e a~ently the 'bull for tbb. relucta nce.. Theref ore
the view has been taken qy Americ an film ~om~iee .that no more tiLBI
will be ..nt to !'inlan d; partic ularly not b,r farner , M.G.M. and
·
·
Paramount.
.
· J'or more t~ a year a tiUIII of not 110re than $200 !)er fila i~.
e
foreign exchange repres enting merely the coat of the ...ter ne~tiy
uted
diltrf.b
e•
pictur
for
iee
eompan
.il•
f
has been reeein d b1 Americ an
han
in linland , and the .attitu de ·ie inexpl ainable.. · lJl~ebd aceoun ta
thua
11
It
able.
. accumulated. from their profit . which ar•··.eo naider.
no
diffieu lt to 11Jlderatand their curren t· deeido n Iince :pract1ca1]1'
n.
positio
r.r
•oneta
actual
the
in
change hal occurr ed
The new eituati on preaen te grave concer n to th• dietrib uton of
that
American fUme as J'innie h theate r ownen bad been aewre d b;r the•
thq
if
e•
pictur
an
Americ
nn
eeeure
to
able
be
would
the ownera
resiste -d the Geran· d.ell&nd tor the auppre 11ion of Alleric an filu.
The X..gati on feele ·• u the Dell&l'taent ~ feel, that the re~tiyeq ·
pro~
lllinor accoun tin« proble u 1Dvoln d ie outwlit;becf b;r P>liti cal an4 an
Alleric
t~
of
tatlon
preaen
u4
cont1n
ganda n.lue to be clerin d tro•
ced. 1f
1
acene b;r • • • of tU... Since rdio and pr111 are totalq influen
the
1a
picture
aotlon
the
tbat
fact
the
a
Ger.u
tU.
'IV·
lled
not contro
r
aole IIIIana 1v which the ·. Merlo u pout of vin ..,. be preaea te4 tanhe
· atrengt hena thie Yin.
~
'·
Sent br courie r to
Stockho~
SCBOftrlLD
'
-
7!t.
--·. --r
r.ca•s.eli,
Beleiak l.
~(Jh
.blrloM
!0
Wuhlac
.
. tOD.
Secreta 17 of ''-'•·
.
I
Karch 18}' 1M2, 10 ....
226
B.eferea cea an ..a. ' to !elecn - no. llO, hbJ'UJ'T ll, u4
(
:
'
205, Karch. 13, fJ'CIIr,LegaUon.
I
.
'
··
!he J'ilm1ah repreae ntatiTe of ~&r'UIGWlt tallted with the
Seereta%7 of the Lept1o n yeiterd 't". Toda;r he 1a -proceed!~ to
Stockholm for conault atioa •tth hit ·bead office oo the quett1o n ,
of future iaporh into PiiWuld of fila.
Accordi ns to Kr. Ha...r, the German .Pila ChSaber reprete ntati.e, ·
Kr. CaaDaD, co~e11ed recentl 7\to the J'ianiah J'ila Chambe r'• .n..
:Board of D1recto n that the recent German ultimat ua to SWI4en and
Finland could not be ~eked up bee~••· eont~ to ita f1rat
auppoa1 tion, Ge~ is not in a potitio n to export · ~ fila iD
aufficie nt quantit iet • . A •eoaproa~ae• was offered to the J'ianl br
him that no .America n pict~ea would -. . importe d-aubae quent to
December 31, 1942, a.lth~ the ahowing of American fillla altead7
imported could be continu ed thereaf ter. Jalant"i , the chief of the ·
Foreign Office' • c~rc1al tect{on urged accepta nce of thia offer
good
by the J'innith J'ila Chamber 1tat1ns that the mainten ance of
ent
goY.rna
hil
thus
an4
desired
waa
Statea
United
the
with
e
relation
froa
filM
of
tion
would gin neey fac111V for an increaa ed importa
te~s
Am~r~ea this year for showins in ~bsequent yeara alth~ good
J'ila
J'ianiah
'!'he
ned.
maintai
be
time
tame
the
at
with Ge~ IIUit
1
importe rs aeem incline d to accept Ja.lanti t suggest ion for the7 feel
featUf.e picture •
enough
confide nt they will be able to import
two .years at leaat, if
of
period
a
for
aarket
thia
.
America to auppl,y
acfee.
will
States
United
the
in
officea
their home
rr•
American fila taporta tion is confron ted with one difficu lt7 br
the fact tba' yeaterda ;y . it wu .S.~1ded br the :Bank of J'inlarul to
reverse it.a earlier ~eldon authoril iDC the ~nt of blocked
aeeount a held by .AMrica n fila coapui ea throqh the allocat~on of
J'inniah dollar b&lance a an4 now to refuae dollar ezchaJl&e for on fila
JIUJ'c4uet . • for the pq..nt of !rosen bal&Dce t. !he dtuat~oa, tlmai
1D effect, revert• tO ·the. pod Uon which tor the put 7ear ud a halt
haa been 1D ezitten ce. I.porte n ban been iDtOI'Md, ~. .er, - tU
Bank of ~inland that the uae of dollar balance • to ~ for ~ fila
iaportt fro. Aaerioa will 'be peraitte d. Such peratulO D will, of
co.u:ae, 'be cOilcU.tioaal u ~o whethtr the .UooaU OD ot \Uae baluce a
'
· fo_r tuch pepent a will be appron d - t)le !nan1 7 Depan •nt.
(
.
,
-a- '
ftelWH'•' .. ·
~·ProiiJ)t acUon .le aca~
LepUn, · M Jll'WloU~.
to tacilltat• the co~ttaQ.4 - ~atlo~ to ~tDl.nf' of ft~,...
Aaertc• bOth bT t~ ..auance• that ~ tiicitetq .will be npplt.et.·
·:
with ra* fila . .
in the Leptton'• tel•Q-- - - refftnc• .
and .that ftn1ehe4 te~tve filM will be ahippe4 to :rml.&D4. · !he
quee~ion of I'&! ft'l:-· ~· iliportut to· ~r~~ cliltri~tora bee&¥e: ·
coptn of ...ter fj.la8 cen .be prillte.cl 1~17 on r • filii u4 the
cost of eu.ch prillt~bg can be .defrq.e'Cl _f .rOII their frosen J'illnteh .ark
nae•"'
balances her! and
th~ reduce such balances to eo•• extent;
Stockhola t~orBed.
:
''--._
'
SCHc$BJ'EL»
\
,_
I
_,_.
'\
·
JJmRicAJ
LJoA!ICII,
Belat.kl.
~
Seoret&r7
.o~
State, WuhlD&ton
Karch 13; 10 .....
-/
RUI(]IIR:
BefereDC~ . ia ~ to. <tele~ no. ~· - ~'bruar;y Z'1 froa·.
·I
.
.
I
Legation.
.
•
•
•
-t
...
..
•
..
Na•icerte for a~ox1mat~l1 31 metric tone of r .. fllm for
_Swed'ish film''. indudey ~·· been ~ted 'tv 'the ·:Britieh lliniei~ -of ·
Economic 1farfare according to· our Legation·· in Stocthola.. Rowe•er ,
raw film for J'in,larid. 'ie ' una•aflable un~r na•lcert..
:
·.
.
The .Br}tiah,
~c~rding
t ·o information
f~ished ,-eater~ .:t~
McClintoc~ the !ritieh ~o111111e~ial Secretar,y in Stoekhola hawe
agreed that - motion pictUre films
froa
for dietT1bntion in
.
. America
.
Finland will. be gran\ed ·na•icerte. MoreOTer, after April 1 ex.port
- licenses of t he Unfted States 'will replace. British DaTieeirt doeuaentation
for Ameri~an ex~rts according to a ~etatement ' qy Metheaon. Should
· raw film consignments to Finland be granted ~X})O~~ pentita b)' the11
United States he 'felt ·reason•bl1 ·s ure that hie Goyernment would 1ook·r
the .other 1ra,-".. ·
·· •
1
~-
.
. . The film 1~dustry of J'inland not only ·would be . usured of. a
· continued supply of motion piet-u'r.! fiw froa herica,, i'f this procedure were. adopted; but in addit.ion the modest amount of raw fil.Ja
· &'88ent1al to · Finland would· b·e assured. ~ct19n along these .l:ines and
a prompt d_,_c1s1on iD the utter before the Germans make new d.ema.nds
ia strongly-re~ommended qy the Legation.
· - · ·
·
L·ondon ·a nd Stockholm i~o~d.
SCHOENJELD
.·
;
J -
I'
.
.
TREASURY DEPA
INTER
oFF.ac• ~OMMUNi
DAft
·1942
.
~
Regiete~ed
'March 28,
' /
aterling
tr~sactions
of the reporting ba,nka were ae. follows:
.
.
soid to commercial conce~•
£15,000.
purcbaaeNrom commercial conce.rna · £21,000
.
..
.
.
,
I
.
r
.
open market aterling he~d at 4.0"f•3/4, ·wi.th no reported tr~maact,..ons.
rn New York,
closing
~otations · for
the -foreign
~ren~iea
listed
.
be~ov ·
were as follows:
Oanad.iiUl dollar
Argentine peso · (free )\
Brazilian milreis (free)
. . Col,ombian peio
.
}.{exican p·eao
- u~an -peso (free)
venesuelan bolivar
Cuban peso
I
13%discount
.2373
.0516
: ·5775
.2064
· 5295
.2815'
~
1/8%prem.iwn
.
.
There were no gold .tranaactions consU:J~~~Uated by us tod.q.
· The Federal Reserve :Bank of New York reported that t he ~ of Canada
shi'Pped $1,175·,000 in gold from Canada to 1!he Federal f.9r account of the Governmerit of Cailada,- for aeJ.e to· the New· Yprk Assay Office •.
.
/
.
.·
. . 1
eow~o.-2.
JIU'tiSB IllS! 8ICRI'l
(tr.s. srmu:r)
· )oPTEL Ho· 102
..
rntoX..t~on. receiv~ up to 7 A.a., 28tllllaroh, 19~. ·
..
. .·
.
'Early on ;27th motor gun boats · ott ·.the· Dutch coast attaoJred an e~
J
trawler which
/
'f'laS
•
~eft
GIBRALTAR to JJALTA are overdUe
•
•
(
2. MU:I:rARY
I
··-.......
lemA•
.
am u t be cotUJidered lost.
•
.
I
('
I
on
th~
ili -a ni_g ht rdd -25~/26th.
eneJII.Y
~• . 27th. S~ FRONT.
TOUID90 ar~a.
motor_. latmQheS . em_plS8~ .fr~
Patr'Olllng acti vi'ty by bo~ s~es. ~ Our pa-t. rols ~oted
26th,
-
'l'wo
,
ca~tles
- considerable
•
~ S~e
!n flames
Severe. fight~. ls tald.ng :place in the
•
•
•
......
The Chinese,.
Japanese pressure be_:l,ng lB aviest .from -the north-west1
. .
.
I
\
still hold TOUNGOO in spite. of heavy casualties.
,,
· Contact 'has been gained with Japanese columns crossing
IRRA'I7ADDY FRONT.
'
0
....
. t he· PEXJU YOHAS trom the .East. ·
RUSSIA. _ The Russians are attapldng Nort}i:"'East of GSHA'ISK, heavy .fight~
· is in
pro~ess East of
KHARKOV, Rwrsiail attacks have made some progres's iJi the
·DONETS Sector•
:on. WESTmN fRONT.
25th/26th.
t ook ·part.
Correction:
17 not 10 R;A. A.F. aircraft
.
.
About 126 tons of "H.E. and illOeixiiary
26th/27th.
~EN. Fires were
seen in ,the Krupp8 WorkS and near the
Bostons were among the intrud~s. ..
•"
. I
bo~ were
dropped on
r~W&Y cen-b-e.
.
.
·
•
I
'
-27th. 12 Bostons · escorted by .l2 Sqiu¥h'ons of Spitfires attacked the.
Power station
at oo'l'Eim with ~0~ resuli;s.
OUr fighters 'destro18«1 one enem;r
-righter~ pi.~bab]j-""cie~tro,ea 3 ~ ~ea lO"')Dol'e: ~-!s !il1silng~.
·
27th/28th. P/7 .airclta!t wer'e
:;-, t-oll a erocirom&e ·a. 5 are ~eeing~
·.
de~JP&tchecl
- - sT. NlZAII.m 61, sea,.1n1rig 18,
.,
'
I'
~-;. 26th. 42 a1roraf't oontinuBd attaclas on ~pPing
'
38
'
1
~
8.\rcraft attacked LUQl
and
BAL FAR aerodl'~s._ . ~ters
~'icabl.y destro,ed 1 and d..-ged a ~her 7. .
.· ·
·~vUXHlo.
. \
1
.
.
~
-
•
'
and
'
and on· 2'1tc,
,
A.~ des~oyed
•
~~- 26~ ·-~-~- ~ ~ or ~
·
.
3;
.
?ontinuoWSl7 ~-
.
.·.
(u.s.
BICRIT)
'omL Ho· 102
, 1942.
Infor matio n recei ved up to 7 A. M., 28tb »&fob
.
.
a~ an eneii,T
att
coast
Dutoh
·
the
ott
boats
gun
r
Early on ~tli 110to
.
.
/
. launc hes_on JBS•t(f ~oa
which was le.rt 1n fialle s and s~ . Two motor
.
trawl er
be conai dered lost•
ue , arid IIUBt
LTAR to LtALTA are overd
,
GIBRA
I
•
.
(
I
limA•
.role 1ntll oted
ls 1nfll oted
Patro lllng activ i'ty b,y both sides . _ Our patro
26th•
raid 25th/ 26th.
consid erabl e oasua l.tlee on tbe enemy in' a nlght
.....
.
t~ is taldn g _plac e in the
. 27th. S~ FRONT• · Sever e figh
~
1lace in the
.
TOUN:i OO area.
Tbe Chine se
Japan ese press ure being lB avies t
.
f!ca
The Chine se
the north• west.
s.
still bold TOUNGOO in spite of hk~ casu altie
. .
ese columns cross ing
lRRAl7AJ?DY FRONT . ·Cont act 'has been gaine d with Japan
'
t he PJlXiU YOMAS fran the .East. ·
East of GSHA7SK, heavy fight~
~ • . The Russi ans are attac king Nort~
ian attac ks have made some progr ess 1il the
· is in progr ess East of KHARKOV, RuBB
ass in the
DONE 'IS Secto r •
3.. AD! OPW.TIOt§ ·
WESMN FROlfr,
F. airor a.rt
25th/ 26th. · Corre ction :
17 not. 10 R.A.A.F. aircr .aft
t ook -part.
tare dr~
rniau
26th/ 27th. About 126 tona of 'H.E. and inoe
on
ESSEN.
a110ng
27th.
ro)'8d one ene!Q'
the intrud~~.
~ Bosto ns ~soorted
sea..e 1n1ng
18,
27th/ 28th.
>: toh a erodrcaee s.
: aDi on ·27tc,
b,y
12 SqUadrons of Spitf ires attac ked the_
lts.
Power statio n at OS'l'END with WlOb serve d resu
f lghte r, probablY de·str o,aa 3
,
were dropp ed on
~ ~wa.y ce;Dtre.
Fires· were seen 1n ,the ~pps 'flor~ and near
Boston~ were
lttack ed the
boJal?8
i!LIA.
Our fight ers des~royed one_en-.r
4nd ctaa~ett.'10 'llore . !lle~1a
llllnln g.
61 -sea- e!nin g 18,
~ a1r~att were deepa tobed • ST. NAZAIRE 1
S are aisli ng.
on 2'7tc,
26th. 42 dzoo ntt oonti mJed attao ke on· shipping aDi
..
;
. . Fight ers
38 tdror att attao bd LUQl and HAL FAR .aerod rcaes
\
'
....
.
.
·. ·~-,eabljo destr o,ed 1 ~ ~ a f'Urther 7. . \
.ma:
26th. -~
a1ror af't in ~
•
~
..
am
A.A. des~o18Ci 3,
ot 10 o~t1DucnJ8]7 ~
.
•
f'
.
~.
QOaMrwJ Opeqt iQQI•
destro yers
with a
cAUPl!ELroTN lfbQae
uu.ber
~
27th/2 sth a force consis ting
.
.
~
four H..ll.
'
,er.•
of Diotor laun~hea ~ 8Ml.l. cratt escort ing t;be destro
explOs ive
bon had been speci~ pr8p8N d and t1lled with
objeo:t; of destro t!ng the lock
carried out an operat ion at ST. NAZAmE with :the
:
.....,
e ·
From prelim inaey repor ts ft appoar
.
gates and damaging harbou r ins:taJ .l.ation s.
s :1ntllo ted
.
~
s -in the
s Chines e
iil the
drcra f't
'
CAI.IPm:LTOI'lN rammed
.. the
ive unseen and on t:IJDe.
.
that the force
. reache.d their object
at the time ~ CAHPg"tes at 0134 and a heavy explos ion was heard aDil seen
~
hl,\d r8111Ded 1 specia l servic e
BELTOON was due to explQde • . !Jimed iately CAMPBELTa1N
dooqa rd. Airor~ bad
troops were landed and :oarr1,.ed out ~emoll tiona in the
guish their target and owing
orders not tf> attack un:i~f! they could cleax:l y distiri
detail~ retm-n ed with their bombs.
to complete cloud the major ity of the sWy- two
~many troo~ as possib le
!Jotor launch es re-emb arked ·the CAl.!PBELTcmn ts _crew and
which . th~n withdr ew. On leavi~
and retired wxler heavy fire to the destro y-ers
I
Air escqr t on return was
ST. tlAZAIRE they engage d five German torped o boats.
a Ju. 88 and damaged a
provided by coasta l command airora tt which destro yed
h tanker report ed y-esterda;y
Be~el for the loss of ~ne Beauf ighter ; .The Britis
.
.
barbou r.
t~rpedoed on 21st is afloat and making
for
MIL~TARY
.mml\.
•
proved consid erably.
SITTAlP FRONT.
Up to mornin g on 28th the situat ion md ~
counte r
The Chines e still hold TOUKIOO and are prepar ing a
the· PRCllE area.
ll!RAWADDY FRO!IT• . Om- troopS are concen~ated in
attack.
An ir-
.eked tbtt
leader s iiS report ed to be
reg1£1.ar fcirce of 4000 to 5000 Burmana with Japa.ne se
!d one en-.r
twenty mil~s south of FRCid!;
~.
He'IJ.vy fighti ng is contim d.ng. west of RZIEV.
'!'be Russia ns
!11' 3
of VUSYA and haTe made i'u::t!;s r
":&lntaJ.ni.ng their pressu re 1n tbs area south east
~-r:>gre.-:s
.
in the.
.
1ELNu sector
~o ,llh OfWT mt§
.
.
.. ~T!m! rRolfl• 28th.
Bight
Spitfir~hSq~na
-ed
on an offens ive .s,weep
•DIIV' f1tbte ra. 'l'birte en eDeiV' a1rara tt were shot;.
~ret a oohati arable maber ot
.
-·
.
.
for ~ loss of' lix Spitfi res i.raaix
aDd
J"ed
deatr(J
a~
Pl'Ob
six
d~:wn,
, cJ:.ning
G~ c~ ~.lb.·
.
· . .
-.._
...
...
·:
,
.
268 ·aircratt were deeps~~-
.
LUBECK • 234, ~ a1 n1 ng .•
.
.
rntrtners .. tbir.teen and leatlets - tour;teen. ·Prel1.tdnary
reports
.
.
. iDlioate
....
' ·· 28th/29th.
.
' /.
attack on
.
L~ yer-r
successNl. . ~ea~ ea;1 vfsibWty
exce~nt; . 80% attacbd1
to~ left· well ~igh~ ancl a f~·tory ~orth west ~ ot t~: 'town .destro;yed. ~,:l'dlve
bombers inclUding
three Stirling&
are
.
. ,.
.
. missihgi
.
.
.
!imll~ .·26th/27th. TMrte~n Wellingtons bolilbed BENJHAZI HARBO~ and
;
five ot?ers le.ld
train eas't
~es.
of CAPUZZO,
.
One
shi~_ was· set
ld:ll~ nlileteqn
.
two enemy aircfa.ft were
.
... .
de.stroyeci~·
en
fire~ Ene~ .ail'cratt
atta~ked
......
a¢ wounding siXty-niDe.
'
tlxl"e_e
pro~bl.y destroyed
. and
.
In dat,
a troop
oJ)e;l"at~o~s
twO' .daWlgetL.t'or
the loss or two Tamahawks~
Tbti-ty-rour ~ne~ a_ircrart att~Cked without .causing
.I
One was probably dest':royed~
'c...
FROME was 'heav.ily bombed and tl:lree quarters or . the town
.27th..
.-mmrM·
Casualties
~ere
slight.
'
--~
95
TREASURY 'DEPARTMEN_T·
· )
.Wa shi ngt on
FOR notEDI~E: ~i.Jt~ · ·.....
Monday, J';!fir.c~ .3P'i · f-242~ ... . .
. ·: ·.: :.·~ ::~.{·..' -.. -~ ·: . ~r:~sa . Ser vic e
·~· :
· ··. ·~· . ·: :··.:·:~.
·>··. ;::. :· ·.>~·~·q;~ :·::~~90 .
Depa~.~~e~~·~ ~~-e ·. p~~~~i~
~P.e
t,1:~~ : ~~~~~~~~d
of
..
Tre a.s ury .
in ·
. .
Lat
·
hin
~~t
·
_s
.. p~o~.ern~ <:i~1!1g .l;>ueines
ol vl.nv
.
ons
.... con duc t . wh1~h: ·u~i te,"- : $-t'a1;~s~~)
ot~
~~a
.tra
tQ
i.. wit h: ~esp~_ct.
rp~
:
to
...
red
1.!1
.req
1t
are
.
a'
e
eric
ma~
Am
~y ·
C~~cul~r No.~~ 1~eue4 . tqd
ing ene~y natlo~ale; . iu~l~o ~e~
."lca,· in..:.
~~I
·
try
I..~~
1n
g
~!'l
r._t
ope
:
n~
dea l :in
n~~
y
. cle ar . tha t . t!rt'- ~ed . S~ate~ ~oq
.ma
i
e~
~Bfd.larie~ an~ ar.tn ;~t
..to ·
Sji)t
r'!iJU
elu din g_. thei,~ ~er1:te,_ . 8\l,h
P.U.:
_
ept
~xc
~
~
: ~~e~y na~i~ns.l
.
.
any manner wh ats oev er.nw~t
asu ry Dep artm ent
specif ic aut hor iza tio of "th e Tre
i~~1~1.~a . ·.
po.r&~
~r'·~~8 . 3:Eisued · i~ : ~e=~
· ·.:ili1~ .·:Pu-blic .circui
e
rel eas ·.o:t · Ge~e~l
rlt Dep~rtment aft er the
reoeiv~d .bY ·th$ . T.re ~su.
· 1,1 ceri sed., : t ·ran sac y
all
; unl e.se ..sp eci
ts,
i
h1b
pro
ich
Wh
1.1
•.
No
,
ing
Rul
na~io.n~l.s.; .. ".Enemy
communic'a t1.o n wit lf enemy. me4
tion~ inv ol.' (ing t.ra de ' 6.xt·
11i~g :(ad any ·
r.al Ru ling No. 11. as
nat ion al" .was de'f 'ine d i i} .Q-ene
e . ~pp-eare·
n~
.
se·
who
y; ( b\ } .a n.Y. .per son
in Blo cke d
per son wit hin enemy ter ri t~r
rta
Ce
of
t
Lis
.Th e Pro cla i med
; ·and (·c )
)-on
on the "bla ck lis t " , 1. e.,_act
ing for a . b1.a~k 11,ste~ . per!
ly ; ..
Nation~ls, ·. or. any- per.so~
It~
,
any
of th~ .go~er~ments ·of Qe~ - withln ~r ·
~epresent~t1.y.es or age nts
ed
uat
s~t
.
r
Rumania, ~ whethe
g
Jap $n, ~ulgar1a, Hung~y or
11 Ene.my ter ri tory ." was -def·1Jl~d as mean1:n
ry.
lto
...
·,
.
the
h.
-wi~
·
w1 tho ut ..en~mY. ·t err
er
f,lnd Jap an, tog~th
the · te,r r1t ory ·or · Germany., lt.a ly n or con t.ro.l. ;
tio
upa
ter rito ry ·:u.n de.r the ir oc~
:. tac t ~ba.~ -. the
c~lle att e~.t~9~ . to th~are
· .To day ' o pub lic circ~lar wit
app li cab l e
als
h enemy nat ion
s
ect ·t-o the ·
bj
• pro hib itio ns aga ins t de~ing
-au
is
who
r
. West ern He~i!!Jph~re.
tll~
n
~hl
wi
son
per
.
als and :
any
d~
o
.
t
tes , inc~uding ~11 1ndivi ·Un
ited ·.
Jur isd 1ct 16rt . ot .the Un ited · Sta
th~
of
·
ted sta tes ; a ll . ci t1~ens
l~ws : ·
the
conc~rns wit hin th~ Un1
.er
·und
zed
~n1
· conc~ r:ns org
all
q;
ate
.loo
ver
soe
ere
.es · ·· .
wh
1ne
s
bus
at~
St
pla ce · o.f'
h~ving the ir .pri ,nc ipa l
.ate\.i·li
·a.f,1
o~
,·
o~ tQe Un1 t~.d State~ or,
-y
,a:r;
· ~y ageil.t 1 s.ubsid.1
. .
·is·
·oh
vh1
in .the Pn1 ted .St ate s, ino luq .ing
rn
e
c·
con
.
any
loc ate.d;· an9ver
soe
ere
wh
rn
mce
1'on
c~:
h
1ct
:ed
suc
.
jur1
any
ot
er coh ce:r n suQ jec t to ·the·
· ·· · ·
owned o~ con tr.o lled by any oth
·
of' ~he Un1te~ Sta tes .
·
sta nda rd of' .c ond uet t· set tor.th
.
Tp.e imp ort ant .t~atures· of. ~the fol low ing : ·
·
.
:the
l;
1n tod~y's. 'p~b'l1c, cir cu lar are
.
'
.'
.
.
,..
.
.
...
'
..
. .
~ems ope rat ing in
{a) .'Am eric an con-t rol led oon
.
..· ··. ·
·
hfly 1ng any: ·t.1 nan o1a l, · ....
f'r9m
i~_e.d ..
.
·
. L~~1n Atn eric a are . prohib
-h
.wit
gs
+.1n
mero1.a1 . dea
.
·
·. ·. ~u.eine.ss, tra de or oth er com
:·.
ln
Lat
·
a
s
Thu
·Y,:.:n · eJ.lemy t~rr1 tor
.e . .
per $on s._ or, f'.1r ¢s wi ~~i
Yor k· cor por at1 :o.n may not.. ha,
New
.
a
or·
nch
bra
e~-·
. Am eric an.
uat
elt
firm
11oEmse ) wit h a
y
auly · dea lin gs. {ex~ept und er
toz:
ri
ter
any
l;lln
an or .wit
lfi thi n Germany, 'Ita ly or Jap
h cou ntr ies .
suc
·by
d
pie
u
'
occ
or
con tro lle d
.
'
·t6
••
0
••
•
•
,•
I
· (ov er)
..
..:
.
•
'
'
I
\
~ ..
- ____)
. \ .
.
96
, ·TRE.A~RY ·uEPARTJ~-1ENT
·
o t '1ce of the seore.tary
: March 30, 1942
.
(
.
PU~LIC
Cif\CULAH t'JO.
.
l~l
UNDER ~XJ!;C UT 1v~ O!'\DER NO. 8389, as Ar-U:.Nilii.D,
AND HEGUL.i\TIO.NS -l6SUED · PUnbUANT THJ:.RETO,
.1:\E;~Tli~G Tv f OREIGN :FUND 3 CON.TROL.
*
• (
(l) . Reference is made to Genera~ Ru~1ng No. 11, relating to
transactions involving trade.
an
-enem-y national.
..
s ta.t'e s conc~rn~ doing b 'te1,ne s s ,.,tthin Latin hmerica are · rea u ired t o
I
l·n 6enees,
't.1o.ns
rreasury
ire ·
n1ted
omply
any o!
.ions ' the
toern,
· the
tther .
; witliln
, oo'loak1ng
p~rt
>P cloak·
1s 'betveer
the war·;
!lll of
ntry.
securing
1n ·'bus1•.
ees, and
another
the
r and.
oe
oo·mmun1cc. tion t.rith
Inquiry has been made as.'--to the standard of 7ondu~t .-,rhich t{ni ted
..
1e
Qr
of
rom ·elosl'
y o·r tbe
fo llo·~ with respect to trE~nsact.ions inv·o lv1n.l2: en emy nat ional·s . . . .
(2)
.AnY
person wi thi·n the· ··/e stern Hemisphe re_'t.rho is subject
to the jurisdic ' ion of the Urii t ed 'States sh8 ll not en~?:.al2:e 1n. any ·
.financial, bi.lsine f. s, tr&de 'o:r othPr commerci a l t. r~nsact1 on wh ich ie
.
.
directly o r indirectly u.•i th, . by, on b~half of, or for . the be r. efit
..
of an e nemy na t ional·, e.xo e pt as specifically au t. ~or1.zed by t he
.
.
Secret ~ ry of the . Tre a sury, by means of re~ula t ions, ru l~n~s,
inetruc t.ions, licenses or other'I>Jis.e :
(3)· .As .used he r ein, the term
11
person sub Ject t o the .1uris-
dict1on of the Un~ted St a tes 11 sha i l include:
any ci t izen of t the United · s tate ~ whethe r wi ~ hin
. t he Uni ted Stat e s 'o r Hi thin a ny • orei.~ n country;
' -(_a)
(b)
any per s on wi thin th e United -St ates ;
(c)
any pa rtnership, associ &t ion, .cor!Jota t~on, or
other o r ganization
~
~ This public circular a ffects
Parts 130-~nd. l3l and will be included in _ a ?~ endi~es t o those pa rts .
.
Seo . 5(b), _40 stat. 415 and · ~66; . Sec. ~. 48 Stat. 1: 54 Stat . 179;
. Pu_b lic No. 354, 77th Congress; sx.. o:rder 8389 , Ap ril 10, 1940, as
amended by Bx. Orde·;. 8'7.85, June 14, 1941, Ex. Or(ler 8832, July .26,
1941, Ex. Order 8963, December' 9, 1941, . and Ex. Order 8998,
December 26, 1941; Regu la t iona; April 10, 1940 , as amended June 14,
1
· )
.
(over
/ 941, a.nd July 26.' 1941 ·
~
l
'
I
I
'
the' la:wa o r the
(1)
(H.)
which. l!ras 1 ts p.r1rre1pa.l plla.ee· of" bus! nes.s
wttMn the' United Stat.e e:; or
( 1!1 ) Whi.C'h is owned . o r . cont r olled by, dlNCtly
(;f'!". 1nd1recrly, one ·or mo re pe:-eons eub;ect
to the j'l.\rl sdi c-1cm of the Un1 ted 3ta t es
as her-ein defined; and
I
(d)
(4)
•
any a;;;e-Qt, subsidiar-y, a ! .t'il'-a te or. othe r person
.o'Wned or cent rolle d , directly or 1nd1 recy ly , by
any · person gtibJ ect to the. Surisdlct1Qn of the
qn t ted 3tates ae herein d efined.
-
In ap ~ ropria te cases-, !Jtl!ted States d1plomat1.c and. ,con~ular
officers in t he other Ameri·can Republics .shou ld ,·be consulted ·~~th
l"espect · to the matters referred 'to herein and ao~. licatl ons fer
' .
l icense s to engage 1n t. rensactlons
re_ferred t .o herein -n.ay. be filed
1111 t h
.
s uch off leers in lieu. of f 111ng such apr.l i ca t i ons in
St <J- tes .
The Treas·Jry -pepa rtment' ·-nas d elegated; author1 ty to s.uch
off le er s through· the Ste~e Departmen ... , and ace ordlne:ly such ·.o: fleers
are i·n a poaitl.on t o take ac tion on a:-.(Jl1 c ati ons in certain csses
wttbout f~Fst refe r ring such appl i c ati nns to the Treasury
E. H. Foi e y, J r .
Acting Secretary o f the Tre asury .
.•
J
97 -
t5oll!l•··-·· -··d
···
f~
'Jill til,,. ............. UIIP".
1111@&·'1111111
~~~;..1•• fiT . . . . Willi •
AG&tiCiiS
AlE
1.-:AS· fil:~,
I
. IVD FlltAMClM
ef
1...d
AU. lftllllllll'l' ·acllllt.D e
\
•
ii-tii-. . . . iM
;
.. •
[Pu liL IO
4w 51 Q- 77T B CoNGREss)
8tON]
[C ILU 'Tu 205-=-2» SE8
[H. R. 6691)
AN AC T
lb~ ameDd 'the Sec·ond··
ited Sta tes , to fur
Un
·
i Umii of ibe
purpo8e8.
er
oth
for
To iDc reu e tbe debLib
~od
t,
Ac
od
erty Bo
........_
Repruent<Uivu of tlte
of
S enate and Ho me efn
l>led, Th nt thi s Ac t· ma y
Be it enacted by the
fUS
rus
ng
Oo
in
ca
eri
Am
ol
u
at
St
d
Unite
bt Ac t of 1M2.
t , as amended, is
be cit ed as the .Public De
Se eon d L iber·ty Bo nd Ac
the
of
21
SEc. 2. Section
d as foiJows:
fm 1h er am end ed to rea ou nt of obl~ation s issued un der the aut ho rityam
e
fac
he
T
21.
c.
5.000,000,000 ou tst and
"SE
eed in the agg reg ate $12
of thi s Ac t shull no t t>:tc , .
ing at an y one time." the Second Lib ert y Bo nd Ac t, as amended, is
·
SI:c. 3. Sccl ion 20 of d as follows:
rea
ns 1, 5, IWd 18 of
tio
sec
by
fur the r amendl'd
ed
riz
l1o
aut
s
ati on
" SE€. 20. (a) .lny ob ligon a.n int ere st- bea rin g bnsis, on a dis cou nth
thi s Ac t, ma y be issu edon int ere st- bea rin g an d discount basis, at suc
ati
ma im er nnd paybasis, or on a <·om binwi
ere st computed in suchtl1e Tr easury ma y
int
th
and
ces
pri
or
of
pri ce
tim es ns the Sec ret ary
com. abl e at suc h time or h obligations ma y be offel'OO for sal e on a ter
ms
h
suc
suc
oy
on
up
d
an
ns
tio
pre scr ibe ; nn d a
ula
d
un de r such reg
pe tith·e or oth<'r bas isSe cre tar y of .the Tr eas ury ma y prescr ibe ; an
the
as
s
I.
ion
dit
finn
ll be
an d con
t to an y such issue shu
able upon
his decision wi th res pec
by thi s Act an d redeem nn d up on
ed
riz
}lo
ant
s
on
ati
lig
ons
nti
~nL
ref
"(b ) An y ob
h
_suc
~r
. ~r ho lde r m.a y, und s10ner o ·In ter na l Re ven ue
dem and of the ownerdth
on s as the Comrrus Tr eas m·y ma y pt·escribel
con
d
an
ms
ter
such
Secretat·y of the
the
of
l
va
tu es imposea
pro
wi th the ap
Sta tes in pay me nt of any
d
ite
·
Un
.·
the
by
Be receivnble
h
by the Un ite d Sta tes . s aut ho riz ed by thi s Ac t mny, un de r suc
ury
eas
on
Tr
ati
lig
the
ob
of
y
y
An
tar
)
"(c
such ter ms as the Se cre
reg ula tio ns an d up on ued in e:tchnllgC for any obli~ations of anyiss
be
,
ma y prescribe
Stn tes wh1ch are un con
nta lity of the Un ite d and int ere st by the Un ite d
a~ncy or ins tru me
th as to pri nci pal
dtt ion aiJ y gu ara nte ed boir ma tur ity ."
·
tlle
ended, is
ore
bef
or
at
Sta tes ,
Lib erty -B ond Ac t, as am
ond
Sec
the
of
19
on
cti
Sro . ·4. Se
d as follO\vs:
Ac t ma y be issued for
fur the r amended to rea
on s aut hor ize d by tlli sbef ore ma tur ity , of any
"SEC. 19. An y ob lig ati
, or ref un din g, at- or edness, Tr easury bills
the pu rch ase1 red em pti on
cer tificat es of ind ebt an y money rec eiv ;d
es,
not
ds,
oon
ou tst and ing
Un ite d Sta tes , an d ne:y in the gen era l
the
of
es.
cat
or sav ing s certifi
on s or any oilier mo
ati
lig
d
ob
h
fro m the sale of suc ma y, un de r.such rules, reg ula tio ns. tenDs, an d
use
ry
be
,
asu
ibe
Tre
scr
tlle
pre
of
y
fun d
tar v of -th e Tr easury ina
con dit ion s as the Se cre
pti on , or ref un din g."
em
red
.
for suc h pu rchase
to
..
0
.·
2
'
[Pua: 'L•w 1)0.)
. s~. 5. ~ authority of the P ostma..ster General CQntainec;l ~ ·see- I
tlon 6 of t,\le:Act of June 25, 191Q, .~ amended (.U. S. C., 1940 edition,
title 89, sec. 756), and section 22 (c) of th.e Second Liberty Bond Act;
as amendj!d to prepare and issue postal-savings cards ,and postal- .
savings sta(rips shall terminate on such date as stamps is.sued by the
Secretary of the Treasury' pursuant to the authority ·COntained .in .
section 22 (c) of the Sec9nd Lioorty Bo~d Act, as amended, are made
available·for sale ·.t o,t.the putilic; ·and, as soon as practicable therea.fter, .the Boa.r4 of Trustees Qf the.Postal Sa.'\'ings System shall p1Ly
to the Secretiil_:y _of the Treasury a s~ e<tual to the red~mption value
of allpostal~savmgs stamvs outstanding a.ntl after such paytJ?.ent has
been made-the obligation to redeem suckstamps shall cease~to ·be a·
liability of .the Board of Trustees of the Ppstal Savings System but
shall constitute a public debt obligation of the ·United States.
SEc. 6. SecUon 4 'of tn.e Pu.blic Debt Act of 1941 (Public, Num~
'bered 7, $eventy-seventh Congre5l!, first sessio~); isJ1erepy· amended
. ·
to read as.follQws: .
"SEc. 4. (a) Int~rest upon obligations, and dividends, earnings, or
other income 'from shares,· certificates, stockl or other evidences of
ownership, and gain from the sale or other disposition of such obli•
gations and eVidences of ownership issued on Qr after the e!fective
date of the Public Debt Act of 1942-' by the United Stt&.tes or any
agency or instru·meJ\tality thereof 'shall Iio~ have any exemption, as
such, and loss from the s'nle or other disposition of such obligations·
- or evidences Of ownership shall ROt h!i-Ve any speci~l tJ·eatment, aS
such, under Federal tax Acts now or hereafter enacted; except that
any such ·obligations which the United States Mnri~inl~ Commission
or
Federal l-Jousing Administration had, priot; to March 1 1~1 ,
contracted to issue at.a future date, shall when issued bear such tax~
· ~xeinption privileg~ as w.~re1 at the time qf such contract, pr?vided
m the law authonzmg then· 1Ssuance. For the purposes of this subsection a Territory, a possession of tl~e Un.ited States, and the District of Columbia~ and ahy political subdjvision thereof, and any
agency or instrumentality of any one or more of the foregoing, shall
· not be considered as an ngency or instrumentality of the Uhited
.~
·
.
·
States.
·
"(b)The provisions of this section shall, with ·respect to such
obligations and evidences of ownership, 'be considered as a~endatory
of ·and supplementary to t.he respective· Acts ox: -part.s of Acts authorizing the if?Suance of such obligations an.d evidences of ownership; as
amended and supplemented.
.
.
,
·
"(c)' Nothing contained herein shall be construed t o amend or
repeal sections 114 and 115 of'the Revenue Act of 11)41."
Approved, Ma~h 28, 1942.·
the
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-:-.
Harold
Smith:
How are yout .
HMJr: .
I just got ·back fro·m." e. wee·k ' e re•a t.
.
·- / ..
Good for you •
. S:
Fine.
HMJr :
Dan Bell -tells -me that y:ouid like to e1t . do~n
and talk O'J..!!..,r tlfts study . you 1 l,'e ~aking • .
s: .
:Y-eah.
HMJr : ·
How'd. you like to b8ve lunch on, .say, are you ·
free Wednesday?
S:
Wednesday?
HMJr:
:J.eah.
I
\
Yes, yes, I am·:
S:
I
.r
~
I'll suit ·your ti.me.
•
HMJr:
W~ll, is Wednesday aro un~ one o 'clock. convenient?
S:
Yeah , .that 111 be fine.
. Now, .who would you like to have here beside~ myself?
.
ID~Jr:
S:
HMJr :
S:
HMJr:
. S:
I
Well,. that's up to you. I was ju·et thinking may'b e
you .and Bell. I want to give you· some background
- on. ~his th,.ng is· all.
All· right.
· How it '.s · develop,e d; And -then you can· - it · can
~rol1fera te from there any way you think 1 t . should.
W~ll , ·we'll make it Bell, you, and I . .
Yeah.
HMJr;
How's that?
S:
Fine.
HMJr:
One o • clo.ck
S;
One o~ciook ' Wedneeday •
.......
.·
Wedrte~~ay.
HMJr:
s:
Obl•
HMJr~
'fllaDk
Did , ... , .. ·....
7••·
. 8:
Yea, I ba4 a ...d ,reat.
"' ..
Good. !hAt-' • tine.
'HMJr:
S:
(
.
I
.
I had . - it waa 41at1not1J worthwhile •.
HMJr:
8!
reatt .- .
herJbodJ aroWld here oer.ta1nl7 needs · •o!leth.1ng
ot tha' sort ,. keep ·going these days.
'
-
I . started on- the •aae tr1p on DeQember 7th, but
neTer got to ·t be airport.
HMJr:
.....
s:~
HMJr:
So this was po.a tponed t~o11
. then.
-
8:
Yeah.
HMJr:
Thank JOU.
S:
Good-bye;
,.,
..
All .right.
I'll be 'there.
f
..
)
.F
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•
Meet~n~ in the Secretary' s office, Varch JO.;'i942, at 2a~5 p. m.
Prese.nt:
Secretary Morgentnau
Ambassador 'Jan C1echanowski·, -fr'om Poland
-General Sikorsky, . Prime Minister
·
ur. JanusZ"'Zoltowski, Fi~ncie.l Counselor
Count Raczyn-ski, Minister • Forei gn Affairs- ·
Mr. White ·
·~·-
The Financial
·'!'he Prime
tl1
.
eo~sel9r aske~ Ur.
Min~ster
spoke
.
i~lo~i-sh
l
s~cure
White to
the a ppoinutent.
and .the· Amb~~sador translat~d·.
.
•
.
.
. The Prime ~¢ster beg~n by ' telling. the Secretary· that h~ was
present in Polapd when tpe ~ecr~tary's father arrived on the -mission
sent by Presi~~ht Wilson. ·.He was a . Colonel then, and v1as ·assi-gned to
rec·eive ·Mr. Morgenthau, Sr.
\
The Prime Minister state4· that his Goye~ent appreciated very
much the in~erest and help which Secretary' Morgentbau· had. ~ccorded ·to
the British and_ hoped that. the_, Secretary~ s keen interest in European ·
affairs would -continue. He felt that the~cont:i,rtued interest Gf the
United States ' high offi~ials in the af~~ir.s 9f Europe-would go a lqng
way towal'Q assuring fair arrangements after th~ "r:ar. ·: .
. •
.
.
.
I.
I
..
Secretary Morgenthau -asked him.whether any information -was being
Pol and and the General.. r-eplied that they. rec:eived .a gr_eat
-deal of ·information constantl y fr~· Poland; that in fact the British
· Covernmen~ 9otains ths bulk of their informati9n on· events in-EUrope
through them. He referred very briefly t o the excellent espio!)age
organ~zation they have t~ere . He said that some forty newsp~pers are
printed and ·'distrit?uted in Poland even though tne penal~y for such
illegal · action is death• .T he General said that the information which'they obtain ftom their sources was ' being made available to our Gov.ernment .
rece:i:v~d. from
' The General said that reoent ·event~ had favored Pol ish troops in
that some 50,-009 were going to be sent. from Russia , where · they now wer.e
and where ·rood was scarce, to Iran where,..they woUld be ke pt .in reserve to
be used in case O.f ·an attack on that area.
·
The .Se~retary asl:ed the General whet}!er in view of all the informa~:
tion that he was obtaining -'from Europe he would care to forecast·
Germany' s plans for this Spring on the liestern front . The General .
responded that he had just r.eceived a lengthy telegram which had confirmed
his own previous views of the situation. These views were as fo~lowsa
Germany did not intend to repeat the mistake in 1942 that it made in
/
.
~941 of avta~ld.ng Russia v:igorously at. three po as Let;lingl"ad, Jloscow ·
and in the South. This. time tdley plan to conce . rate their attacks on
the southern part, toward t,he caucasus. Everything was ~a.d.y, he said,
except "sewing on the last Quttons". The Germans ala~ woul.d attack and ··
attemp~ to take Malta ~d. i t s~ccessful ~uld:use that as· a base ·ot
operations against North. Africa. ·He .said that . the Germans already hp.d ·
two or three panzer r-divi~ons in Nortll Urica, in addition to two .
pan.zer Italian divisions. There were . also some ten infantry di~sions
t here , mostly Italian. He thought that the a:ttack on the Ru~sia·n front
and on Yalta probably would be simUltaneoV:s , and that the It~ans were
going to at tack Cyprus ~ then <possibly t11e Bu+ga~ans and. ~he Itali~s
would move on to .a ttack S?Tia• He said that the Russians _had bec~e
·aware <;>f the · German plans sorne five· ?ays &{;O 81\d -lrere r-evampi ng their
·troops a9cordingly. The Gef!eral also stated that he had just talked to
.Axnbas~ador Litvino.ff and ' had expressed the same vi~·. .
.
.
·._,
........
· The Secretary asked · whether lie cared .to hazard an estilria:te as to
·wha~ the ·chances were of the Ge-rmans breaki~ through at ·the Caucasus • .'
The ~n~ra+ replied that he thought the chances- were. fifl.y-fifty. The
,r 1 Secreta.Ty asked ·wh.e ther he thollght :th'e ~ussians would continue to be.
able to use Murmansk. The · General replied he thought it w·o uld 'be sub,ject to b.orilbardment but no m6re .t han that.:
.
..
. ':
T~e Generai said that h~ .would . lilc~· t-o tell \he Sec~tary that he
· felt it was . imP9rtant for' tpe United States to · mak~ ev~ effort to
honestly help t he Russian$ in the present struggle , b~t. t~t he felt at
.· the .s ame time th,e
R\lssians ought to be made
to .-li,ve up to their ar:rang!!.
I
ments •.: He stat-ed that he had tol d ~passador L.itvinoff e~ctly that . .
·The Polish Ambassador said that .lie regr~ttedl tl1at Gene.r al Sikorsky
. · woul!i hive to leave at onc.e i f h.e -waJs to catch his :train, and that they
. ·were ~ery- appreciativ¥ of the ·opportunity the -Secr_e tary had given. them
.
.t o talk 'vith nim.
H. D. Vlhi te.
~
'r
,...._,_ .
/
.,
)
)
1.0S
.March . 3. , 1942
3': 10 p. .
'
FINANCING
Present:
J
.
/
.
Mr. Buffington
,. . Mr •. Haas · · (
Mr. Bell -"'
. Mr. Bryce ·
· Mrs • .Klotz
.
.l
..
•
~-
I
,_
<
•
1-
I
..
.
.
.......
•
.-
I
H.M. J~: 6-e?rge, give. us a ..thumbnai_I sketch of what
you. found· on .th1s ·last tr1p, mll you? . ""'
.
. .
'
'\
MR. BUFFINGTON:· ,Without e-xception; all of the co~panies
~hat I ~nt.ervieYJed want .to . coo-pe:ra"t~ a ht;mdr~~ per~ent ·
1n help1:ng th·e Tre~sury to . do 1 ts f1nanc1ng~ The 1nsurance
companies in. Baston feel that there -are fund~ av~ilable
for investment- in Governmen~ securities, but of the tJVo
larger ones i_n tervlewed) one felt that the ·rates we·r e a. .
little bit _low. They are tryi'ng to meet the three per- ..
~ent guarantee to policy h~~ders. In· the maini the
oth~r industrial companies all feel that the c.e rtificates
of debt are attrac'ti ve - that the · certificat-e s of in- .
d'ebtedb.es-s are attractrve to them and m:any of them. ~ike
tap issu~s.
·
'.
· In~ Detroit the aufomobile companies., of :which I _
talked to Ford and Packara, bo_th ha.ve a larger part . of
t4ei'r .inventories . frozen. They -- had to set asid~ · their
re·gular 'pleasure car busine~s _.; Many of them. have_had
sharp .reductions in .cash due· t.o absorbing . that into · ·
their working capital position to do a very much larg~r
volume ·o r busi~ess than they ~ere financed to do. Some
· of the_i r contracts ~re very large.- -F?rd. Conq>anY says
.. .
· they have ·twp billi·on ·three hundred mll1on 1n contemplat1on
~n contracts in all their plants. Their pay roll is running ~ million dollars :a day. Thel would like very much
to get 'free of the contingent - l~ab1lity on their cars
that are· ~n 9,i'stributor' s hands, which t)ler . carry as a
...
'-
- 2
0
0
.~
...
,
·sold~
cont"ingent liab il}- ty unt il th:ey are · f nal ly .
?
H. M. JR.: Who did .you see in the Fo-r d ·£ompany
dire cto r
MR. BUFFINGTON: _Mr. Briggs, · wh~ · is the
company. I had an
of - he is the com ptro ller of the he
.
was cal~ed to
appointment ~th ano ther man, but
ly
eme
extr
is
veland
another meet1ng. The s1tu atio n in Cle
es
pani
com
·
s~x or s~ve~
tigh t •. There appea!s to<be, of the Man
s
p¥ie
com
y of th.e
interv1ewed ,. no id~e-- funds atingall.
add itio nal
ing
QW
borr
plat
tem
. are borrowing and con
much furt her . Sev eral
m9ney 9efo re the y~ar pro gres ses abo
the ·nec ess ity for
of them brought up the que stio n payut
-rol l allo tme nts, · '
pressing f~rther this driv e for
wi.l+
cb.. of _th~-ir earn ings .from here -in her
f~eling tha t mu_
hig
~d
es
eas
incr
h
pas s-th rough to labQr _throug
\.
taxe s.
H.M. JR: You mean ' ther e_were fou r -ppo inted in the res ults
· MR. BUFFINGTON: They were disa
rol l savings and
that had been opta ined to date onto paycooperate in the
felt tha t while they would like ava
ilab le for temporary ·
tS
fund
Treastiry .wit h making the ir
ies if they had -them,
investm~nt in Government Sec urit
g thes e larg er amounts
sin
s
they' are · all ·borrowing and p~· f~m
of taxe s and high er
·the
along to the Government in
_
·.
labor cos ts.
l d pre ss hard er !or
H . M~JR: Do they ·thi nk we shou
pay~roll ded ucti on?
Yes . They have been disa ppo inte d
MR~ BUFFINGTON:
in the res ults -tha t they have had to dat e.
)
H."M . JR.:
So have I.
me (handing paper
MR.• BUFFINGTON : That is j~sf a_d·resu
account . .
.to Secreta ry) and I .a:m pre par ing a e ta_iled
it?
MR. BELL : Clevel~d is a defense ~ity isn 't
MR. BUFFINGTON : Yes .
0
•
.
.•
l
)
.
0
1.05
3
MR. BELL:
defense city .
flnd
So\ you would
.
situ atio n in a
h -many companies like
, MR. BUFFINGTON : Ye-s; althoug
a defense company',
arll
the Glidden Company ..are n't p·rimhavey-def
ense con trac ts.
but . they sel l t ~ ~ ~ompanie s who
MR. BELL: That is the same thin g. .
.
ry- - . (
MR. · BRYCE: We!l , the machine too' lI ind ust
.
.
rse ,
ll, here. is the pr9 pos itio n. Qf cou
We
.
:
. H.M.JR
Here. is the thing~ We ·
what we ~_ay is in the ro?m•l sel
'
l Monday or Tuesday a
have announced that we w1l , aom
in~ like tha t, To
note of seven or eight ~onths on thieth
z:tg, the Federal
thl
s
give you a .l itt le background t he System, were very · .
Reserve Board anyway, par t o{
e sor t 'of a five year
anxious tha t we should get out som
e. Now, I was n't .. ·
tap is·sue or a twe nty yea r . tap is~u
re was une qua l dis trib utio n
read y for it ~d I fel t th~t t~eand
ew York market
of the present . ~xcess res erv es ht. IthefelNt it very much
si tua tion was par ticu lar ly tig ldn 't go thro ugh another
wou
the l ast time, a~d · I said I tion
·
s. Well , much to the
di
con
se
tho
~r
und
financing
e, as a ma tter of
dis appoi ntment of. the Fed era l ResI erv
~sk them to
had
fac t , it got to the poi nt where y go.toalong. ~f I took
d onl
do t his . Th~ y .s~id the y woul
them, wh3:ch I d1d • . We
P.
aske
·
and
l1ty
1b1
ful l respons
one l ate r, of the
would get out one now and a secondget
add iti~nal
note , with the ide a t hat we wouldnon- defthis
bus ine sse s
e
ens
t
liqu idit y, and I had hoped thawou
put same
to
d
gla
ld be
might have accumulations who es, bec
now the
to
up
e
of the _ir· money. int.o the se not of one aus
the re
and
t
cen
per
bil l market is about a fift h ss . There is. something
isn 't much in it for a bus ine can inv est in tha t and
in it for a bank because the y one eighth . So anything
they don 't have to pay the FDICir funds attr act s them.
tha t the y can get to inv est th~ ed you to come in. for ,
y ~sk
Now, the thin g I par ticu la:l
mand and have been th1nk1ng
1n
had
e
hav
I
t
the thin g tha
't say tha t this par ticu lar
about all week~ is thi s: I don
l be of · int ere st
six , s·eve~ or eig ht months cer tifi cat e wil
/
)
.
\
\
10 6
- 4 ·-
· Or to cd tie s or &·tat e a or
· to bus lne sse s. I "don't know~ble
is, we sit her e in
cou ntie s, . but the ;. gre at trou
y litt le. We l'el y li.r gel f
Was~irigton and re~lly know ver
ks .. They sor t of talk
on the twelve Fed era l Res er• e Ban
No~ ,
·~on't . get out .
the
to each oth er all ·the time~ andNow, ywe
sel l a cer tifi cat e
. what I had in minQ. )!&S thi s.
go to a twenty
and we may go to a five yea r oron·wethemayave
rage of two ·
year, but we have got to sel lI want to bui ld up· a cus tom er's ·
bill ion dol lars a month_, <and
s in b~siness, which r ·
lis t ~ust the way &¥~rybody doe
e of ever~ concern who (
haven t g9t .· We have the .nampeo
ple in the United Sta tes .
employs five hundred or _more sta
te, county and cit y .wi_th
\\·e also have the name of every
ula tion . The thought· tha t I
o.ver twenty- five thousand popon
'
ez:t, w~s to get
had in mind was, while ~ was s.the"Mdes
r Mr ~ Smith:
out !1 let ter something like thi is· ygoidea
to '"'o ffe r, a cer ngThe Treasury on Mond·ay, Ap ril 6,
ther thi s
whe
know
't
tifi cat e ·of ind ebt edn ess . ~e\ don
t to you,
res
nte
i
ticular
form of aec uri ty ~ili ,ce of par
ering·
Qff
be·
l·
wil
~ we
but it may be . On . the oth er hand
of
er
buy
ial
ent
are a pot
more· sec uri ties ~d if youwou
you
from
r
hea
to
.
glad
ld be
Government Sec uri ties , ·we
and keep you on our ma iling lis t." :
l d car e to writ-e
And from time to time, if the y wou
inte res ted in,
be
ld
us_ what kind of sec ur i tie s the y wou. Now , I ~anted you
.we would be gla d to. hea r from tthem
the mi-n ute tha t
to. thin k about it. Le~ ' s jus ·say for
·
we · do tha t .
MR. BRYCE: May I ask you one que stio n? .·
· H. M . J~
Sur ely .
of clie nts , _I ~ediately
tAR. BRYCE : When you ~ay a li~t sub
scribin~ ~or yo~
n
thin k of the people t~at havemy·bee
is 1n Chicago ,:
tmd
bonds· rig ht alo ng. I mean, andbacIkgro
n in New Y?r~
bee
e
as George .may have told you, but I hav
people r1drng
seen
e
hav
the las t four or five yea rs,
n, people
mea
·I
:t
. it, tha
your bond issu es, as-' I express
Stre et - ·
the
1n
ut
g abo
h~ve gone in an~ . - I am think1n
of bonds
unt
amo
er
larg
have go.ne in and sub scri bed for a.and
y. of those
man
at
gre
a
d
which the y wer en't going to hol
1f you
d
dere
won
I
people -have go.ne in and done tha t and
107
5·
have sorted any of them out.
a· goo~ list, · at i~l?
Is there · a list in the-re,
, H.M.JR: You see, our . trouble .. i-S this. Vlh en we ....
get out of the D~fense S.avings ~ond fiela we don't
.have any names. We do have the ·b~k~' ·holdingS'. We
know .what the banks hold.
· ·
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MR. BRYCE:
Su~.
· <.
.
l
H.M.JR: . We kndw what the insuran~~ companies .hotd,
and it. stops.. there • . Yo·u inter;r.~pt. me if l ,am nof right;
pan. Th~re it stops. We did do :that, her.·e . 1 . can t e'l:l
you what the· banks ~old· and what . kind of securities they '
hold and the same . for the· in.surance. ·I s t~at right,
.'
u~o~ge? ...
\
Yes. ·
'·
H . M .JR~ But i t stops ~here. But we have ·been ·going
along and- letting f'i ve· o.r six GGve~ent dealers do this
business ~a naturally they are not· going~ give me
the~r. customer's list.
MR. BRYC·E: No . But 1 am still confused, Mr . Secretary.
f am aw~ally dum'Q about this. ~ I am st.i ll co~:tfused - 1
meari, I haven't been in the Government Bond business.
~iy :firm i sn ''t in it·. I · used to be in ~hicago. ·But . each
time an offer~ng ·of bonds · is made; a n~w is~ue , · you ·~ave
this :t>ig ·subscription."
·
·.
MR. BELL:
Free riders.
MR~ BRYCE: Aria some good ones too., a.."l·d who has that
li.st?. Doe-s that go ~nto each -~eder~l Rese.rv~ ~a.nk? ·
.
.
H.M.JR: · ·He~e is ' the .supposed expert on that. ·
\
MR.: BELL: Yes, .. we have a itst of those names in·.
the Federal Reserve Banks • .· Eventually they come do11Il
here, but we can't tell. whether or not th~se people
hold those securities.
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108
6 .)
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:
. '
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.
.
MR. 'BRYCE : l have al~ays thought at some stage of
the game· you could go to those boys and.·say,' "Here, you
have b~en subsc:rib~ng this time. Where ·were ·you the last
time?·"
·
·
·
H. M. JR:
Thostt" are11 ,.t the people that I want • .
MR. BRYCE : No, but I ~thought there. lili.ght be. some
i n that· list . . T]:l~~ is Why I '!as · ~n t e.res,ted in .your ·
saying that . you didn t·t have a list. ·r ·wondered if t}fere
· had been ·any attempt to sort them out for the goo~ ones
in th~re.
,:
· ·
·H.M.JR: Well, it is e.s.s entially a black list,. a · li st -:'
we hate 'got of th~ bad ones.
· .·MR.·. · BELL: We can ' t . tell \what those people do wi t.h .
r
the securities ~less ,they r egista• t hem. We don't lmow
whether they hold them··one month :or· ten years •.
I
I
;
· H.M. J}t.: We can gi.ve you a list! . They have got a
list of the boys that have been free riding;- what we
call the bad bo'ys from our stand~oint~ . and ·we know
.
who those people are,, but we don t know who the people ar~
that we are g'o ing to have to ·rely on from
now · on .
:.
MR. 'BRYGE: Sure, whether they ·are going .tc;> . buy
them and hold them. That. ·is what yo u w~t.
H. M. JR: rhat ·iS t 'he answer. Now, · Eccles corr~ctly
says. he'· thinks that•.we 1 should appea~ first t'o :.the people
that . have 1 idle. funds. Well, I don ' t - it is ve ry nice
to put it . out on a piece of paper and say, "No.:w, .we are
goiJ.J.g to go aft'er these ·people, 11 and the.n when we go ·
out and go1 ~nto Cleveland and .Detroit they .don:' t exist.•
Now, on ·the .other hand, some people •sa~ . some states have
excess funds. · We don't know . Let me. just go along a
minute-- ·
·
MR. BELL :· I might s.ay, Mr. Secretary, that Mil~~
found aome funds in st. Louis, I believe , in b ~ewerleS
az:ld people like that. · ~The;( a~e on non- dei;ense work •
..
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7
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· H.M. ~:
.
.
Du~~ey · Mills?
'
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~· BELL: . No; Mills ·.d ownstairs .with. Mor·r·~ s.
ME;. BUFFINGTO~ : . He. e.ccoinpa~~~· . me to' Bqston . and .
then af~er , he · had sat ~ th -~ · ~or the. day interVi.e~~ng;·.
I let h1m go -to St •. Lou1s alone ·and .: his report. has not
ye~ ·come in or is not avJlil.~ple. ·
H.M. JR: . Well,. . ~he point is., .we a'~e.. now vecy sho~tly
coming to· the point where ' we have got- to look for Jhese
people~
·
MR. BRYCE :
Sure ·.
H.M~JR.: We _have:-never done this sort . o.f ""'t hing befor~,
ana r·am just :- · if you have lll()re questions after my outline,, you
and · ask him.
. ni.ight adjourn
" . to Bell's room
.·. MR. BRYCE :
Sure.
H.M. JR: ' . But this . is new, what· r 'am put'ting up. Here
i .s the. thought which I haven't been able to· decide 'i n my .·
own mind . .Supposing .we ·go ahead and do .this thing, see,
and I make· the. list in such· shape · ~ I take it the list
is· in such shape_ it coul,d. b~ .d one?
· ·MR. -BELL:· Yes,. that · i's ri.ght.
.
I
· H.11,.JR: · ·Now,. in this l-etter~ to whom ·do: we refer
.these p~ople? ·Do we say, "If you11 will wi.re b~-ck we ~
will ·not.if'y you direct the terms ? 0~ do ·we say to this
man; '·'Mr. · Smith., i.f. you are interested you can. g~t the
. te'rms on 'Monday from any membe~ - any insur'ed :bank~ II Or this: i~ where you come in - 'lny . stock exchange h.ous7 or
any 1nvestme.nt banker."" There· are two \tays to .do this
thing. Either· to say if you will send it back.- I. have
thought out a way whereby the tele~raph compan1es 1f
they •had the n.am~s ,and they were :d1stributed-, · w~ can ·..
get it in one 'p lace in. each state, terms to go out to
these people , eve~ybody ~uld . ha~e a telegram- on his
desk Mc;>nday morning'. ur refer, them, as I say, to an
.
..
.
11.0
- 8
i~sur~d .bank. ·o~ _ an. investme:qt house ·or 'to a member
of the New .York Sto~k Exc'halige, you se.e. ·
MR. BRYCE:
I ·see. ·
' /
H.M. Jlt: · Now, of course we d·on ,·t know whether these ·
people would be interes.ted. .At the ;pre.sent · time·. it is·
a matter of patriotism. z ~he.re i~ nothing in it for ..
them., which is the ''best salesmansl:iip to .'xeep tP.ese
('
people coming right · back to us and send out these .
fifte-:en or twenty th9usand telegrams giving th·em the.
t eriii.s or say,·. "Go and see ~y one of thre~ people who .
will have.· the te~ . and .w ill take ·your order." · T.h ere
·are two ways of doin~ it.. .
. · MR. BELL: Well., · .this i s ~hat we thought.· We didn';~
go qui t.e as far on .the .letter as yo:u suggested .
H.M. JR:
'·
Do you get the . idea'?
r,
MR. BRYCE: · Sure.
MR. BELL : We thought you might announce Wednesday
night for Thursday morning 's pape·r that there would be
·~.an . issue on, s&:y, Tuesday or We~esday o.f the _following
. week .'and you would · give the ·amount •. Now.,. we ·C.Ould go
· · · a. li.ttl~ further and say . that it would b~ a half percent and where it would fall in there we don't-know.,
six or seven months.
H.M. JR: Let me· interrupt you. 'Just ·saying it in .
the paper .doesn '¥t
.
·.. .
·MR. ·BELL:
H.M.JR:
I .
:$at~sf·:V
.
me.
.
But I am going further than tha.~.
It isn't enough, just giving it to the
n~wspap_ers.
.
.
MR. BELL: Wedrie s·d.ay night you would anno1Uilce it,.
see., for next morning's ~apers and then that night we
wo~ld mail out to all th1s list this type of letter.
/
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111
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.·· ru~ . would ' be
'
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addressed 'to the· pres~de
\
t
.
of the corporation:
.a
'
"The -Treasury Pepartment expe~ts to make
public
offeri~g on seven hundre9. -fifty m~ll.ion dollars. of .- .
..
Trea'su~y certificates -of: indebte·a nes.s.. on Tuesday, April · 7th •
. Another offering o.f/ t-he.se ··.sec uri t'-es · 1fill. be made later·
in the month. These securities will .be offered at par,
will be~r interest p-ayable py coupon; and wi11 matur e · in
not more than one year. One .c)f th-e reasons for. issuing
these short - term sec-uri ties · at this tiine.' i s to provide
. a sui table me'dium for· the investment of tcurrent accumulations
of business funds temporari ly thrown out of employnient
because· of d·eferred ·maintenance, .reduced inventories, ·
· and -inability to re-invest depreciation· and depletion · '
re-serves, or to make plant _ext'e nsions. resulting froin the
d~ version of the· ~argest ·possible portions of--Our natural ·
. resources to the ,- war ·eff~rt. I am calling · this to your
attention since it occu~s to m~ that ' your corporati.o~
may wish to obtain some- -o f t hese secari ties on direct . .
·s ubscript i on. · If you are' ~nterested in doing ·.·so, I ·
· suggest that_ you arrange. w1 th your bank·· or the .Federal
Reserve Bank in your district to fnform you ~omptly of
the details of tbe offering as the new offer~ng . may be ·
open only one •day. Prompt actio1,1 is· necessary if you
~·
wish to pgrticipate."
' Nqw, they wi.ll get that Thursday. morni_n g, ~riday
· ~ morm,_n g, Saturday .morning . and so fort~. That wi-ll give ·
them time· t~ _get their financing commi tt~~s toge.t;her ·
· an9. make a decis:ion befo.re Tuesday when the offering is
made.
·
.
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H_.M;. JR:_ 'Well, now, Dan, let me make the first criticism.
MR. BELL:
O. K.
. H. M• .ffi.: No~ody who ' is sell in~ a pri v·a te security
·would eve.r word it t hat way~ It 1s tao much as th?ugh
they._were, doing us a favor , yqu see. I. mean, -~ th1nk ..
we have got to get the·· thing around a h ~tl~ b1 t ffi?re, .
not _that they are doin~ u~ a favor, but a l1ttle .b1t morewell, • it .is a little b1t~-·
MR, BELL: You. mean it is - the stat~me.n.t in here .t~at
it is designed. to meet certain f)mds ·that they have av8llable is wron-g?
.·
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H-..M.JR: 'No, ·y:qu ~ay "You .c an go· and see your bank
.
oi"· your federal Reserve." Now, I am going ·on the . assumption
that -two thirds ¢ f . t~ese. people don't know where their ..
Federal Re ser:ve Bank is. . ·
·· ·
·
r
,
,
•
•
•
Wt• BELL: OJ.:, if yo~ are goi~g 't? corpora~i'ons s~rely
they do and any corporat1on of -th1s '81ze, I th1·n k, .w ill
want to. 'deal- through
their' bank.
·
(Y
. .
.
.
·H.M. JR: Do yq~ think n'e cess.a_rily t4at a corporation
in Maryland _would ~ow .where thei-r Fed,-r al Reserve Bahk is? ·
~· BELL: .I ·t _h i_nk s~, .a corp<?rat'ion 'that · empioys_.·.
five h\.Uldred' or more peopl~. ·
.
·
.
.
H. M.. JR':
yjfth them. ·
Why should
·
t~ey?
.
......
They have- n~ver _done bu-siness
·. 'MR. B~LL: No , b_u t they ·d'o busine·ss With their bank,
and th~y know that that bank i~ 9: ~ember in nine . case.~
- out of ten, p~ssibly, of the F·ederal -RE;!ser"'e System-.
H-. M.JR: Well, the ·other thing, I don't think we
should tell them and describe the kind of funds. · I
think we should. say', "Ir: you . have any idle ··funds which
would ·go into this kind of security, · we f!OUld b~ very
gl ad to have you subscribe.," or 'something like. that, .
rather than simply gi.ve them -a category, because it kind
• . ... 9f m:a.kes them say, · "We'll, supposiii.~ I have s·omething
· .·that doesn 't ·!all in that category •. Then the Tre.a sury
doesn 't want 1t. Frankly,. I would hke· to.have · the
letter written ·more the way a man would wri t.e ,it who had
a private security to sell._
· _.
. MR.~
BRYCE : You want to sell them. So wou.l d I.
.
.
' "
...
:H. M.jR: Well, George said you are a salesman. That
is why. I ··asked you in.,
··
MR. BRYCE:· Sure • .. Well, it .. is hard for me to sit
i!l a m~eting without speaking. ·-~ d_o too much talking.
..
H.M.JR: Go ahead.
MR •. BRYCE·: As fal' a.s I am concerne.d, I think I have
got the · Treas-ury point. of v:i'ew. on . this, but I also have
spent a lifetime"· in a certain business, so I .am n~tur_ally
pre ·ju:diq~d to that, but I - . to ·me there · are three place_s
One is a b~ka one
to_ go and :t>uy a bon~.
.\
,.
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11.3
- ·11- ' '
.le your investment batik, and one ie- a :· .oro.k er. It .
.just . seeins · to me :if ' you aend them in there a,D.d you
have t9 have machin~ry w~ich- and get . the 'word to
go· in a·nd get them, and they .working 9n the other ·
. side, .that. is ~h~ JWJ.Y 'to ·g et wha~ yo.u _are after.. I
bav~ came 1n w1tnout. any of your . bac~ground or any- .
. thing. I haye been here tw;o mont hs .and workin.g . with
thos·e men . in the Defense ~ s~vings Staff and tryiJ;lg. to .
get them coordinated,, and· they are comi:r~~ along ·f1ne.
Not the banks, the i.nve~'tment- bankers and the broke.r s f
But that ie a pe'rfectly ~atur.al poiiJ.t ~ of view for m·e
t'o have·. But · you have got s·o mu:ch ·backgr9un'd I don ' t
.know anythirig .about i t, I mean the · procedure before.
_. .H.M.JR: I l ike what you say, becaus~ yo~ agree
with .me. (Laughte-r . ) What T w~t, we have done. this
thing, th~ Treasury ~ F.ederal "Reserve way. I would .
like t o. try the privat-e,. business . w.ay;. This is not a particularly ~o od s~curitY. to try ·it on, so I won 't
be terribly~ d1sapp6inte4; but just let's say for a
minute that we send them to the three · peopla_±hat
you and I mentio~ed .. Have we got time to g~t those
people .lined ·up to handle the hqsines s next week, and
do they want the business? ..
MR. BRYCE: It yvill be a ·little _;ragged. They
· .· ·,want. it; but I. was just t;hinking about the mechanics
and so iorth. ·
H.M·. JR: I mean,. have we got time - · are .'th.ey - .
well ·enough organized that they could be put. on notice
. so t~a. t i .f . they ·got a call--
MR.
BRYCE: Yes, they could do a job, but they ·
won't do as good a job ·. as they ·woul d later on when
they got organized .
H..M..JR:
The firs.t time . they wouldn 't, anyway •
.·
.. MR. BRYCE : I am talking about the investment pankers
and broker.s now. I don~t know' the banks, but that i s a
\
part of my job.
I
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114
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. . H.M~.JR : Well, ~he ~ank thing is ·handled. by th~
Federal. I am not wofrYl~~ about that~ ·That. machinery
is taken care .o f, but the · 1nvestm~nt: bankers and the:·.
brokers-·
.·
:
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MR. BRYCE : Yo1;1 --can get them r .o lling· any time you.
want, and they are 1n a good frame of min~ too. · I have
states.
·
·
- heard that from most"-.,of the
.
1
H. M. JR: · DaJ;l, why don-'t we do thi_s·j if you· don't .
. objec~ •. wp.y not let these- p~o~le d9 the jo? :wi th you
. of ·wr1t1ng another letter, try1ng to carry. out what
they -t-hink-woul d be the best way to get the_s·e - 'if you ·
·are· going to do .i t as though you w·ere. in private ousiiE ss .
and then giving them _their choice of ·going to~ their bank,
their. broker, or ·their inves~nt banker. · Then we could
meet ag~in tomorrow mo.rning, you see. Dq I understand ·
.fro~ you - one thing I 'Would_like -to · have y9u all think
over . Do ~we want to tell these people to go. to ·these - .
.any one of -these three_, o.r do ·we WfPl t to notify · them
thems.elves of the terms,_ or we could ·ao both.- We could
notify them of the terms and then say, "If you want. to
plac ~ an order; place an order this way •" What do yqu.
think, ·George?
··
MR. BUFFINGTON : . I am jus·t questioning how you are
going ~o _get the actual subscription when y.ou. go thro~gh
the broker . Let' s take a New Yo~k Stock. Exchange member
like Clark Dodge~ He then wil l have to come to th·e
Treasury ·or the Federal Reserve Bank.
·:MR. BELL:
Or to his . bank.
MR. BRYCE : If I am in Cla.rk Dodge and a customer ·
comes in ·and wants a half million certificates or a
thousand dollars worth, I am going to find- out how to
get them for him. ·
·
._
·.
MR. BUFFINGTON: - .-Tha-t is · right, and I was just
t~i~king wh~ther you are going to ~·o through an additlo~ source to get i t.· The que~ t1on .I have about t h_e
. 1.15
l.a·- ·.
letter _de.s igned for either .o f these pur-poses i.s, you
don.tt . want' to eliminate these fellows who··are -. in
defe~se _business that ··n ave· - - a lo~ of:=thes~ :p eopl~
I have been .talking. to have· large funde ·for 1nvest~
ment even though they-·· are ·not in non:-d,e fense industry,
and I_ t hink the b~_oke.rs and the inves.tment bankers can
uncover a lot of thos·e buying .sources· t hat aren't
accustomed· to buying, and}·..the·refore_, they might riot come
to their banks, and : the banks wouldh' t : gor'tou t to · see (' _
.· them, and -the· in~estment bankers )'fill . , 1
· MR. BRYCE';
I viotild ·think so"'e .
H.M. JR: · George , here _is another . t hing.._ Certainly
we. have got. to be hone·st; and I try to -be, in -this
I •
room • . ·we are relying · only on · ~he banks. .You a r e . asking
the bank.s t o do some t htng against t heir own interests., ·
partic_!!larly savings banks . }ou a~e .·askin-g them to say..
. to .F ord Motors or whatever thes·e peopl e are, -. "Take a ·
million or ten ·million or~ hundr~d million of these
things and draw down y.our deposits in'.iny. bank-.-" It r is a
pretty tough t hing to ask a fellow ·to do, buJ the investment bank 'or t he broker , his only interest wou~d be, ·
·
well , 1 ~ doihg ·this I am. doi~g my Government a good turn." ·
MR. BRYCE: Sure .
Hjt',JR : . And you ha_v e got a little· q.ompeti tion .
MR. B~YCE : And he is trying to get it . · H~ i~ ·
all right:, he is p~trioti.c, and be is' in a good' frame
-of min~, a~d let's use him. He ~an do· what yo~ _want
·him· t _o do • .,
·
·
. ·
·
H.M. JR: I do~l{ want it entirely in_the . h~ds of
the banks, because I am asking- them in each of these
thi ngs to do something · wh~di is really in the long run
'
' ·
against their ovm interests.
is ' r ight .
MR. BUFFING:TON: That
.·
.
MR. BELL : Of- course, I am ·af raid if the b!okers and
dealer.s don't come thro~gh their. bank~, they a·re going· to
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)
.
disturb . the· ~oney niark.e t. We have . got ·a .lot of these
coming· through that s~l,lrce, and we got the·· checks in .
the F~deral · Rese·r ve _l~anks .• · We d;raw .•11 of .t hat ·money . ·..
out of the xparket, whe~eas . th e banks ·keep it on ·deposit . '
If they · don t work through the baJ:lks, ·y.ou will have a
disturbance · of the . money market.-·.
.
H:M. JR: You coUld do ~ what yow did last time·. · Now·
with this ~.egi_sla:tio~'you . certainly coui~·· adj~st it .
('
-
•
MR. BELL: Well,
.dowri.v;ard.
•
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0
~tis a .little ~ifficult to aajust
-He can adjust it upward . .
.
··
·
.
MR. BUFFINGTON :.. But,_ Dan, even if they go · through
the-ir banks and leave :tnose d~posits there~ as the Sec. retary· said, you are getting an, added sales · impetus .
They will work any way you want them to work . . · ·
.
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H.M! JR: · Certalnly a broker would know how to pla:ce .
his order with .the Federal · Reserve .. Bank..
.
MR. BUFFINGTON:
. ·Oh, · he wil l place it. all right .
.
(
H. M. JR: · You are not going to be afraid of get ting
cash. in.stead of getting ten per.c ent down?
·
· . -MR •. BELL : · You see, what the broker w~uld do nor-...
mally is draw· a check on his· bank for t hose · notes·, . or
have his customer draw a check, ·which woul d go -directly
to t~e.Federal Reserve Bank and pile up cash. in t he
Federal Re's erve Bank, whereas if it went t hrough the bank,
the bank w·o uld merely credit our ~ccount and filJ. o~t
the applic·a tion, and ·we wi:)..l draw t he money when we need
it. .·
.
.
li.M. JR: But the way yo\1 talk about, drawing a
check 'and sending ~tin, that is n.on- iriflationary, isn't
it? '
:
·MR. HAAS : No, if it }+appens th'e way Dan fears it
might happen, it would be anti-i~~lationary, but· it would
·r.·
.
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117
·,·
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·-
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tighte~ a pla.c e w~e~e h~ doesn~ ~ ~ant i t . tighten~d
right now. That . 1s ant1-i~lat1onary • .
'
H.M~JR:. Wel,l,
MR. ·HAAS:
,tJ .the .extent
That is
right.
.
. '
H.M. JR:-· To t he
.M.R. HAAS:
for ~nste.n,ce ,
But you could
oth~r things·,
may not be so
~hat. they do it--
.
.~te~t( thit they d~. ~t:--
.
.
I ·.
.
I
But ~t would ~~e. the .New York '. situa~on ·
more t1ght than 1t 1s r.ight no~, wors_e .
counteract that , Danny, by -doing soine
you know, if that happened,- and the volume
large anyviay. ·
·
·
-...
. .MR. BELL: Well, the only t:hlng I could. do to
counteract it would be tQ ·let my balanpe. run down, and
I wouldn ' t know how t:p.ey were -coming· ih .
·
.
MR. HAAS"! You would ·have to have .olose control
over it all the time.
MR. ·BELL: Y~s, or I would ~~ve to buy securities
in the market, Which we woul dn ' t want to do .
"
. H.M.,JR:. · Well, I am not worried so much about the
mechanics. - I am looking at · t his as a salesman, a~d I
am talking, I take it , to a salesman . I ·Want t .o tal.k
to other ·sa1esmen· ~ People . iike Bell , they_ can fi~d ways .
to ~yercome the .money market . He always has, and he
always wil~ . (Laughter.) But I am in a position where ·
I~ have got . to raise, I. figure , two · billion dollar"B a ·
m?nt~. r·am going to rais.e , by ho.ok or by ?rook, a
b~ll1 on d9~lar s. a month throu.gh Dei' ens e ·sav1ng-s BonP.s .
I mean, that is: w~t I ani going to do, and · t~at .leaves
me another billion to raise the way we are t,alk1ng about
now •. Now,... to do that, I have got to sell, · and now we
h.ave P';lt ' iii ninoe-ty-~in~ .-p~rc~nt of our sales. effort to .
sell f1ve hundred m1ll1on th1s month .of ·D efense Bonds
and one percent of our' effort into selling the other
bill ion and a half.
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·MR, $YCE:
That is right.
l;l.M.JR: Now, it· doesn·'t make .s.en:se·, ~11d we have : ·.
got all the~e sales . organi~a~ions.in · existehce, or
with the. skeleton lef.t yet , 1n this c.ountry, and· I am
not laying down apy law · today, Dan, but this is new, ·
and the Federal Res·erve J?oard ~on ' t like it , and -the
banks won't like it; but as .I ·say; . I am talking now
as a salesman, arid I''w·a nt people sel ling ft whose · only 1
-interest is. t~ t they are doing something for -their .
.
Government , an-d they are not taking ope 'of th~ir cuslopte:r' s
)Iloney out of th:eir oWn · institution and ?i vi-ng it · to theni.
That is what it amounts to. ~ow , I ·can t rely on· that, ·
Dan, and I ain not g~in~ to . . ·
·
MIL BELL: Vlel l, ~-you .are ~t. relying on that by
W~ are ·going directly to the corporation, the ·
comptrollers. We are not· sel~ing this · through the
banks. .
. ·
thi~ .
H.M. JR: Ri ght. Well, up to Saturday you~told .
· you .were throwing· cold water on going to these corpor. a tions. · In my conversa tio.n Sa.turday--
. :MR:· BELL: No , only the liup.dred
;
..H . ~ • .]R:
Qh,- I thought you were oppos_ed to this .
MR. BELL : ·Oh, no.
H~.M . JR:. I thou~ht you said Eccles would fight me
tooth a.nd na~l on thls, going dir~ctly ·to the corporations .
MR. BELL: No, I think Eccles will objec~ to this, ·
not so much going to the· corporations a.s doing it on this
type of sec.ur1ty·; because when we issued our statement
the other day, we said that we were g~ing to _do this in
ord~r t<? make the- mon~y market more flex~ ble and m?re .
!lu1d. Now, we are doing ju~t the ·oppo.sl t~ 9Y try1ng to
get tb,e c_orporations to buy 1 t, ~nd not ~ett1ng the
banf~ buy -it, sq that. they ·can be switched between
banks, and everyb'ody shift their' reserves . · I d~n ' t. know
.· •
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whether .he i~ goinito object seriously; b~t that is .
what he is going_ to · a~gue. ·
· H.M·.JR;. Well, ·w~t I aiu inte~ested in' in the
month of April. is to /1ind a new s~les. outlet, and. I
.
want to cut my teeth on this security .and make my mis~ . ·
. takes .on this ·security-' S.J?.d not. wa~t any longer. ' lf
I am inconsistent, a~ far a.s the money ~arket is 9oncerned, it is ,just t Oo-- bad. I would rather be incons.i S *'
tent, .·b ut · we w~ll - be ·build~ng~ up a new s_i.l.es organiz~tihn.
and _ anot~er th1ng a~<?ut th1s 1s, we 9,.on 't relt so much .
.on the banks for th1s type of. securi.ty, and· ·then · they
can concentrate more on sell ing Defense. Bonds·.
.
·
MR. BELL: That cpsts· them money.
H.M; JR:
~
Sure it does
•
.... .
MR. BUFFI NGTON: · The -banks are not going to ·s~ll ·
this t~e of -security, because i t · is~ Ju.st . taking the
. thing r1ght away from them. It is taking a s·e-curi ty
away they w.o uld like to have, and taking money out of
· the ·banks. Xou have ·got to have somebody· else selling
it. to make a sale, I t hink.
MR. BELL :
·i'ng it.
As I see 1t, it isn't· a que.stion of sell-
MR. BUFFINGTON :
buying . it.·.
It is getting them accustame d· ~o
MR. BELL : Tl;ley. are not going to sell it on9e they
get it, but· no b~nk will rej use to put in a subscription
for thei~ customers, and their--. ·
·
·
MR. BUFFINGTON: They might not be as enthusiastic
abo1;1t the. customer ·buying· it as I .might be.
.
.
.
I
.
MR. BELL: ' We ar~ ...goiny directly t.o the custamers
aild asking them if they _dol\ t wa:nt t'o subscribe; . and
if t hey do put in a subsoriptiorl, .they have the same
chance as a bank.
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. H.M.JR: Havei.. you crossed that bridge?
un9.erstand you were with me on that .
·.
I didn ' t
'MR~ BELL: Oh "yes, I have cr os"S-ed. that bridge . I
have got the l e ttev~all drafted and ·everything for the
states and count i es and citi es . ·
1
H.M. JR:
will go to
I
•
Oh, you have cross ed the _bridge that we
th~se?
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MR. BELL: I would like to confin~ it to five hundred. · I think the other i's too 5mall.
that.
H.M. JR: That is all right, I will go· along ·on
I didn ' t know ~hat· you had crossed t~is - bridge. · .
MR. BELL:
H.M. JR:
MR. HAAS :
Oh,yes • .
,.
Are you all right on this, too?
Yes • .
H.M. JR: I .d idn' t know that . , Then the only thing
we are arguing about is with whom will' they place · the
order .
.
.
. MR. BELLi . Yes, and I. have no objection to· that .
I am a little concerned about drawing th~ · money all
out of the oanks; but I h~ve no objection to putting_
in he~e either your broker or your de~lers .
Mlt. BRYCE: Or we can get th is thing better
·organized and you can have it when·e ver you wa:nt it, i t
is th~re.
.·
H.M. JR:
:Don ' t weaken .,
MR. BRYCE: ! .won ' t weaken, but they can give you
a 'hand, and we want them worKing for us.
H.M•.JR:
No, I ·w ant ·to do it this time t his way •
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MR! BELL: I hive . n~ objection to thiB~
H.M.JR: :Well, .oouldn 't they ~ .th.e se t:w:ro gentlemen·
· take the · letters and· wqrk en them ton'ight and do it the '
way they would do it ;if they were .a private business?
MR. BELL: Absplutely, both of· them, .and the· one
to the. mayors and gov~no~s .
Now,. how are the.s e -all 11ight, let's _
just-:for . ~ mip.u~e say the lett.er is go~~g_ to go out.
The~ are we going to n~tify them of ~he terms as ·well
as th~ direct thing, the three sources to plac.e t he
H.M.JR:
r
ord~rCZ
·MR. BELt: Well, i would li,ke to go _at ·least as
far as giving them the am-ount and the date of the off'e·r ing. I don't know wheth'e-r we .can go any farther than
··
that.
·
·
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H.•M.JR: · Supposing we say in t hi s )etter;-"If you
will get a -telegram in to me not later .than 'Friday morn. ing, I will s~e that you will have' the terms on your
desk by Monday morning . or ~esday morning"?
· ·
MR. BEU. : Well, I was won4ering ·if we couldn't
send this .sam.e .list t.o the Federal Reserve .Banks a nd _
let them -m ail 'it out at the same time they mail i~ · to
everybody ~ls e . .·
·
·
H.M. JR: Could they do ' that?
MR. BELL: Oh, yes, we could get that_ out o~ . here
at the same -time we- get all of the Treasury mater1~l
out.
·
,
. H. M. JR: You m·e an, let them mail it to the twelve
Federal Reserves?
,,
MR. BELL:
Yes.
H.M.JR: I think you\ ought to. explain how that is
done. · The mor-e we can decentral ize, th;e better •
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MR. BELL: I expect most of· these corporations
are on ·the Fed l ist.-.
·
I-l:M . ~:-. But, ri;u;_, ~his is· the. ~h-ing. ·r don 't
want to mall them the/ thing· unless ·.th-~y . will say to us
· that they ·want it.
..-~·
MR. BELL: Wel_l, then zy-ou . have· to · get- a -r eply to
this letter if you don!_t want to -ao that·.
~
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H.M.JR:" Well·, that i!3 what I mean'- the question
I am. raising. I meari-, I wo1;11d· like i-n. this .t:> ~u~ in.
at the botto"!ll, ttif you ace 1nterested 1n ·recel v1ng th1·s .
information _from now on , plea:se tel~gr~ph Y!)Ur nearest
Federal Reserve Bank. II --~a then if you wal).t to ao that·,
. jus.t put in a ·map of the Uni te9. States for the.1wel ve
·Federal_Reserve Distric_ts, · and Show wher~ every one of
the bal).ks ·. are . They can,run that o~f _on a mimeograph.
I me~ , just an enclosure . It would be a she·et of the . -United Stat es with the twelve Federal Reserve Districts
~howing_ where th~e b~nks are .
.
MR • . BELL: Well, then we would have to have a reply
'to the letter · if..you want to do tn'at . I h~d in mind
j?st mailing them another set oi' forms wit;h the applicahon 'blank attached.
·
.
H:M.JR:
MR. · BELL:
Well, ·what I thought~For· the publi~ announce it on T_uesday~
. · HjJ.JR: .·what I am try'ing to do · is make the -fellow .
make up his mind he would like to hear from us , a~d not
just ·p este·r him wfth anQthe-r lette~ . Make him st;y, <'Yes ,
I would like to hear from ·you . 11 . I don't know :wh1ch ·1.s · ·
better salesnuinshi~, to make hiin come back .and say, · "Please-~
send me the . terms-.
1ffi. BRYCE : I know .the way I would feel ab~ut it . ·
I would do the second. way. It is just like circularizing
a list. Here she is, ba~g, _ and then have it followed
up by. someon·e getting -in touch wi tll ~hem . ·
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MR. BUFFINGTON~ ·If I were doing it in the first
instance, I would li-ke to lmow right here in tlie Treasury
without depending on the Federal Reser~e Banks what my·
reply or re sponse was; and then, in t~e . second in~tance ·, ,
you may want to put ~ it -out to the Fede.ral Reserve Banks.
r don 't know that th(t is more of ·an unaertaking than you
want to think of in the fir.st instance·.
I
·
H. M. JR : The eas~r way is to let the Federal
(
from
~eserve circularize it. The first letter1 woul~ go
here, and the seco'nd one would go from the Fed, because
ther would have - and of course the timing, you (Bell)
would have to mail out all those addresse s to the 'Fed
right away.
MR. BELL :
That is ri ght . We can do that Thur sday '
\
morning.
' · I woul d like to have it done ..
H. M. JR : The i de.a that
is to send - are Western ·Union and. Postal cons.olidated?
MR. BELL:
I don't think so.
MR. BUFFINGTON:
very simply.
·
But it can be worked together
H.M. JR: Simuly s'end for the two mana~ers and say,
here are thirty thousand telegrams ,'· and give them
the names . "Plea;:~e m~il these to your various state
offices , and · then we will give you the telegram ~turday
and you can send one to each of the forty-ei ght .offices, tt
·
and have the telegram go o1:1t f rom there signed by' a
Treasury official to these peopl e and have a Treasury
thing instead of a Federal Reserve . I f they had the
names distributed in the .forty-ei ght states, then a telegram would go ' f rom each of these - I don 't know whether
t hey might send it ·to New York or telegraph it from
Albany, but they could break it down into forty-eight
or even more distri cts . . Somebody could send f or t~em and·
get them to working on it, on their zones . You could get.
it into th.e ir price zones. They. must do this. for other
organi zations in · ca~paigns .
~!'Look ,
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:124
MR. BELL:
H. M. JR:
I
they do .
e~ect
You coul d · ge~ .whatever the zone rates are·•.
.
.
.
.
. MR. BELL: Yes, ..J .t · could ?e do~e th;at way.
a little more expenSlVe to do 1t that ·~y.
It is
MR. HAAS : You would have .less than ten thousand
wires, wouldn' t you, ~?
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MR. BELL: Yes, about ten thousand. '
..
MR. BUFFINGTON: You would know ·so much more ·about
who .your potential customers were and what market you
wanted to emphasize when you 'hit it in that way., You.
have got · twelve places to go to the Federal Reserve Bank ·
'if you d:o it th~ other way.
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H~M. J'R:
·
Are you .for' having
them answer. or .would you..
send them--
MR. BUFFINGTON: I would have ·them answer and have
them answer here, . if I ·were doing ),t , because i would
like to look-·it over and see who the prospects were.
H . ~. JR : And then.everybo~ · who
.a_' tele.gram., is tl;tat it?.
a~swered wo~ld
get
MR. BUFFINGTON: .That is . the way I would do. it .
H.M. JR : It would be only half ·an answer .
gram wouldn't average over a dollar apLece.
.
The tel e-
MR. BUFFINGTON: Only in once instance, Dan, to get
some kind .of an idea of how big your market . is . and how.
muah emphasis are .you going to. want to put on 1t . If 1t
is all New York arid .Chicago, that presents one kind of a
problem. If it is spread. all around, it is another type
. of problem.
··
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MR. BRYCE : Y~u are talking about sending out a wire
and giving ·t he r eturns and having .the . returns come here?
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125
23MR. J3UFFIN~TON: ' If I were doin~ it, I .'~ould send
a letter or a w1re to ·~hese corporat1ons and have them
wire back· here as to their interests. and then I would
send-- '
·
·
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· MR. BRYCE:
l
Have you told
t~em
the · terms?
MR.· BUFFINGTON: I would not have told them at. th-at
11
ti~e the term~ . . Are ~O'lf intere ~fed? we· ~:e go in~ ~o do(
th1s on the ·s1xth of Apr1l. If 1nterested 1n rece1v1ng
the terin~ .of thi~ offering . and subsequ.e nt offerings, wire .
us . " ' And theh wh.en they w1red back, I would wire them the .
terms and then a message such as Dan has outlined here.
Then I wouldknow where t~e ~arket was and who it was.
MR •. BRYCE': How do they kno\1\\ what the proposition
. is, that is what worries me.
'·
MR. BELL: That is what worries me , to'O. I think i f
I got this letter on Thursd-ay morning; I :would say, "Wel l,
I would like to see what the terms are before I go any
further. I am not going to wire until I see." ·
MR. BUFFINGTON: You are not asking them to subscribe , _
Dan. You are saying, "If you are interested in. being put
• on the Treasury s mailing list to receive offerings that
we are .going to make from time to time of general market
securities and other securities, send us - let us khow
and we will .PUt you on our mailing list." You wquld get
back ten . thousand the next d~y or whenev.e r it is , a:nd you
would release the wire giving the terms, and in that wire ·
or ~ other message as you plan to send it, you know then
that they at•e· apparently interested and tell them how to
go about acquiring these securities, and you w?uld ~~en
have some knowledge of your m&rket which I don t th1nk
you will have· ever if you do it the first time through
your ~ederal Reserve Banks.
·
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1
MR. BELL: I think ·ft is a duplication, but I think
nipety ·percent of these ar~ probably already on the mailing list. ·
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MR. BUFFINGTON: · Well, now, that of 'course +don 't
know, but-H.M. JR: \Vhat maili ng list, _De.n?
.
/
MR. BELL: On the Fede ral Reserve . A lot of these
corporatio ns, you know, are on the maili ng lists . Fede ral
·
,
Reserve Banks· right now.
~
y- eight 1
MR. BU.FFINGTON: Dan , I have call:ed prr twent
ha~ ·
or thirt y-fiv e companies inclu ding those that Mills
not
are
them
of
third
a
calle d on, and I would say that
ss, ,
educated to think in terms of certi ficat es of indeb tedne
i~
all
are
they
and when it is final ly put up .to them,
a ,direc t
teres ted . · Nmv, there for·e , you have got to get ral
Re serve
Fede
the
ve
message to them which I don't be~ie
is
it
se
becau
do
to
Bank or the member banks are going
s . .. acros
ers
memb
the
not .i n their selfi sh inte! 'ests to get
ment
urage
disco
I am not sure but what ·you may get some
they
·from the banks - in sell ing these secuz.:ities because
s.
selve
them
to
would rathe r see that market prett y ·mucn
with
MR. BELL: The member banks have nothi ng to dofisca
l
our
by
circu lariz ing any li sts . ·That is all done
.
agents. in the Fede ral Reser ve .Banks
.
~ffi . BUfFINGTON: No, it was brought up in Boston.
.
_buys
I think it i s the United Shoe Machinery Company whocerthese
c/d's f rom the i r - bank , and I told them about
g, but ·
tificate~ and they said, "They sound inter estin
our
off
g
liow is our bank going to feel about us payin
?erti ficat es of depo sit with them?" I don't t~inks ther~
to
1s any incen tive to the· banks to sell these th1ng where
corpo ration s as there is to the i~vestment banker~ng·
'
they know there ·is something for t hem to dq gettl
people inter ested in buying secu rities of this type.
-
I
MR . BRYCE : The only thing I am confused abou~, in
an 1ssue
·the bond busin ess , if you are going to putandoutsay,
"We
time
of
ahead
out
go
t
of bond:l, you don'
about
~re going to have something. Do ·~ou want, t~ hear
11 But you wait, and her~ she 1·s, bang: a~d then you
1 t?
get a list ·b uilt up quick l y a·s they come 1n 1n order .
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