The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
ESTIMATE OF CASH POSITION
February - June, 1937
(In millions of dollars)
FEBRUARY
Balances at beginning of periods
MARCH
APRIL
MAY
924
769
1,149
275
1,175
50
40
100
200
Receipts:-
General revenue
U. S. Savings Bonds
Treasury Bills (extra)
Treasury Notes
TOTAL
-
-
JUNE
TOTAL
1,304
1,039
924
290
300
900
2,940
40
40
40
210
-
300
-
-
500
1,349
2,184
1,979
General
280
290
310
Emergency
200
200
15
Redemption of debt
-
1,644
-
500
1,979
4,874
320.
330
1,530
200
190
180
970
155
80
10
150
410
40
325
20
Special transactions
20
320
725
15
15
15
15
Gold purchases
15
75
30
50
50
50
50
230
580
1,035
675
605
1,045
3,940
769
1,149
1,304
1,039
934
934
200
250
200
200
250
1,100
300
-
-
300
Expenditures:-
Interest on debt
TOTAL
Balances at end of periods
Refunding operations:-
Treasury Bills:Regular
Special
Treasury Notes
TOTAL
February 8. 1937
-
-
200
-
550
502
-
702
200
-
550
600
502
2,202
Prepared by: Lawrence H. Seltzer,
Assistant Director of
Assisted
by:
Henry C. Murphy, and
Sidney G. Tickton
INTER OFFICE COMMUNICATION
DATE
TO
FROM
M
2215.
Research and Statistics,
February 8, 1937
Secretary Morgenthau
Mr. Haag M
Subject: Financing Possibilities (Preliminary)
(Rension
memo dated
1-29-37.)
I. Cash Requirements
1. On the basis of Mr. Bell's estimates of the prospective
changes in the Working Balance in the General Fund, it will be possible for the Treasury to coast along without raising new money until
April 15. provided we are willing to allow the Working Balance to run
as low as some $650 millions early in March. Without new money, the
month-end Working Balances are estimated as follows to the end of March:
February
March
$ 658 millions
858 millions
2. Unless we do raise new money between now and the middle of
April, the Working Balance at the end of each of the three last months
of the fiscal year is estimated as follows:
April
May
June
$ 533 millions
288 millions
503 millions
3. Judging by the bid and ask quotations for Treasury bills, and
the price behavior of our outstanding notes and bonds, the market's
response to the announcement of the increases on March 1 and May 1 in
reserve requirements has not been unfavorable. The last two 273-day
bill issues, which were sold at an average bank discount rate of .361
and .401 percent, respectively, were quoted on February 6 at a bid
price to yield .42 percent on a bank discount basis. Unless the market's
action becomes more unfavorable, it would appear feasible to raise $200
millions of new money by additional bill issues of $50 millions each on
February 17 and 24 and March 3 and 10; or $300 millions if the additional
bill issues are continued on March 17 and 24. The first of the additional issues would preferably be for 119 days, and the succeeding
issues for successively shorter periods, so that the entire extra
amount of $200 or $300 millions would mature in the middle of June.
222
Secretary Morgenthau - 2/8/37 - 2
A distinct advantage of concentrating $200 to $300 millions of
bill maturities in mid-June is that it would coincide with an income-
tax payment date and would therefore reduce the strain on bank reserves
incident to the latter. Dr. Goldenweiser indicated in a telephone
conversation today that his people would prefer $300 millions to $200
millions of such bill maturities, distributed between June 16, 17, and
18. If it were desired to confine the additional bill issues to $200
millions, but to have $300 millions of mid-June bill maturities, this
could be accomplished by substituting mid-June maturities for two
weekly issues of our regular 273-day bills, though this method might
be open to the objection that it would interfere temporarily with the
uniformity of the present series of regular bill issues.
Having raised $200 or $300 millions of new money by these bill
issues, we could then, on either March 15 or April 15. obtain an additional $300 millions of new money by a note or bond issue that also
covered the $502 millions note maturity of April 15. The $500 or $600
millions of new money raised in this period through bill issues and the
bond or note financing would just compensate for the retirement during
this period of maturing bills -- $300 millions in the middle of March
and either $200 or $300 millions in the middle of June. So far as
these new money requirements are concerned, therefore, no net change in
the public debt as of June 30, 1937 is involved,
Assuming that $200 millions is raised through bill issues in
February and March, and $300 millions through a note or bond issue sold
on March 15, our month-end Cash Balances would be approximately as
follows:
$ 758 millions
February
1,358 millions
1,033 millions
788 millions
803 millions
March
April
May
June
4. If market developments are altogether unfavorable, the raising
of new money could be deferred entirely until the middle of April (provided gold imports are not too large), when $500 millions could be
raised in conjunction with the refunding of the April note maturity by
an issue of notes or bonds. If this procedure were adopted, the monthend Cash Balances would be as follows:
February
March
April
May
June
$ 658 millions
858 millions
1,033 millions
788 millions
1,003 millions
223
Secretary Morgenthau - 2/8/37 - 3
This plan would involve a net increase of $200 millions in outstanding
debt issues at June 30, unless four of the regular June issues of $50
millions each were repaid out of the Cash Balance and no replacement
bills were offered. in which case the June 30 Balance would be $803
millions.
II. Alternative Methods of Financing
1. Increase of $50 millions in weekly bill issues of each of the
ten weeks beginning February 17: The first $200 or $300 millions of
these bills could be made to mature on June 16, 17, or/and 18, coinciding with the quarterly income-tax payment period. The first of these
issues would be for 119 days and the succeeding issues would be pro-
gressively for 7 days fewer in length, except for the minor changes
required for staggering the maturities over several days. The maturities of the remaining $300 or $200 millions of bills could be split
between the middle of September and the middle of December. Both of
these periods are convenient for bill maturities because they coincide
with income-tax payment dates. A note issue of $817 millions matures
on September 15: there is no existing note maturity in December.
It is impossible to estimate at all accurately the rates at which
our regular and additional bills would sell in view of the tightening
in the money markets that may be occasioned by the increase in required
reserves. It is reasonably certain, however, that the immediate absolute cost of additional money raised through bill issues would be less
than the cost of raising the same funds through notes or bonds. Nevertheless, the raising of the entire $500 millions of new money through
bill issues would not necessarily be the cheapest method of finance
from a longer-term viewpoint. Much will depend upon the relative market behavior of bills, notes, and bonds during the next several weeks.
Our previous experience has indicated that additional bill issues of
shorter maturity than the regular bill issues do not sell on a proportionately reduced yield basis.
2. Issue of $200 millions of additional bills in February and
March, and the offering of a 5-year 1-3/8 percent note on either
March 15 or April 15 to raise $300 millions of new money and to refund
the April note maturity of $502 millions: This method would bring
about a net reduction in the aggregate volume of outstanding bills of
$300 millions by the end of the fiscal year, other things being equal.
While an open date exists for a 3 -year note issue to mature on
September 15, 1940, and while such a maturity may be utilized if market
conditions become more unsettled, it does not appear at this time that
a sufficient saving in cost can be effected by reducing the proposed
maturity from 5 years to 3 years. The prices and yields of outstanding notes maturing on and after June 15, 1940 were as follows on
February 6, 1937:
224
Secretary Morgenthau - 2/8/37 - 4
Issue
Maturity
Price
Yield
1-1/2's
1-1/2's
1-1/2's
1-3/8's
1-1/4's
6/15/40
12/15/40
3/15/41
6/15/41
12/15/41
101-6/32
101-4/32
101-4/32
100-19/32
100-9/32
1.14
1.20
1.22
1.23
1.19
The foregoing figures indicate that a note maturing March 15, 1942
should sell on virtually the same yield basis - about 1.20 -- as the
three last-issued outstanding notes. A 5-year 1-3/8 percent note would
sell at a price of 100-27/32 if it sold on a 1.20 yield basis. Such a
premium would be liberal.
A great deal can be said for this method of financing. Five-year
money at a cost of 1-3/8 percent is cheap money; and the 5-year maturity
is ample compensation, in view of existing uncertainties with respect
to short-term money rates, for the somewhat higher cost of such a note
issue over exclusive reliance upon bills. Whether the financing should
take place on March 15 or April 15 should be determined primarily by the
state of the market at the beginning of March, with a slight presumption
in favor of March 15 because it represents a regular quarterly financing
date. The April 15 financing would be just as suitable as the March 15
financing from the sole standpoint of the Working Balance.
3. Issue of $200 millions of additional bills in February and
March, and the offering of a 12-17 year 2 percent bond on either
March 15 or April 15 to raise $300 millions of new money and to refund
the April note maturity of $502 millions: This possibility has the
following advantages:
(1) Like No. 2, it results in a net reduction rather
than an increase in the volume of bill issues;
(2) It provides for the refunding of the April notes
into a medium-term bond;
(3) It reduces rather than adds to the volume of our
outstanding note issues;
(4) The coupon rate of 2à percent for 17-year money
represents distinctly low-cost financing;
(5) An improvement is made over our preceding 21 per-
cent bond issue by increasing the call period to 5 years; and
225
Secretary Morgenthau - 2/8/37 - 5
In the present market, the issue should command a
liberal(6)
premium.
The most comparable outstanding issues are the following:
2-1/2's of 1949-53
2-3/41 of 1951-54
3-1/81 of 1949-52
:
Issue
Price
(Feb. 6)
101-18/32
103-13/32
108-8/32
Yield to
call date
Yield to
maturity
2.36
2.47
2.38
2.39
2.51
2.49
The proposed issue would probably sell on a basis rather close to
that of the outstanding 21's. It differs from the outstanding issue in
being 3 months later in final maturity and in being callable 9 months
earlier. If it sold on precisely the same yield basis to call date as
the outstanding
handsome
premium.
2118 -- 2.36 -, it would sell at about 101-15/32, a
At the other extreme, however, the proposed issue might conceivably
(though not probably) sell on a yield,basis only slightly better than
that of the outstanding 2218 of 1951-54 (2.47 percent). These mature
only 3 months later than the proposed issue, and are not callable until
2 years and 3 months later. If the proposed issue were to sell on no
betterofbasis
than
the outstanding 22's of 1951-54, it would command a
price
about
100-10/32.
It is probable, however, that the proposed issue would sell much
nearer the outstanding 21's than the outstanding 22's, being far more
comparable with the former. If it sold on a basis approximately half
way between these two issues - on a basis of 2.42 percent -, it would
command a price of approximately 100-27/32.
In the present market, therefore, it appears that the proposed
2} percent 12-17 year bond would command an amply safe premium.
4. Consideration might be given to permitting payment for the
Treasury bills to be issued near the middle of March to be made by credit
on War-loan account. These additional bill offerings will be made at a
time when bank reserves will be affected by both the new reserve require-
ments and the very large March income-tax payments. The March income-tax
collections will be sufficiently heavy to permit us to refrain from mak-
ing calls upon depositary institutions during the two or three weeks
bridging the middle of that month. The Treasury, during the early months
fashion.
of
1934, permitted subscriptions for Treasury bills to be paid in this
226
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Monday, February 8, 1937.
Press Service
No. 9-53
2-6-37
Secretary of the Treasury Morgenthau announced today that the sale of
United States Savings Bonds since March 1, 1935, when these bonds were made
available, to February 1st of this year has reached a total of $862,781,212,
maturity value. This is a daily average of $1,472,322, maturity value, for
each of the 586 business days elapsed.
These bonds were bought by approximately 750,000 individual investors,
and approximately 60,000 investors - over 50 percent of whom are repeat
purchasers -- are now buying United States Savings Bonds each month.
The sale of Savings Bonds for the year 1935 amounted to $259,000,824,
maturity value. For the year 1936 the sales were $473,515,140 - an increase
of approximately 82.8 percent. The January sales of this year were in excess
of $130,000,000, maturity value - more than twice the sales of the corresponding
month last year.
The highest total for daily sales was reached on January 4th of this
year with the receipt by the Treasurer of the United States of $6,230,330 from
post offices selling these bonds throughout the country. In addition and on the
same day the Treasurer received direct-by-mail orders accompanied with cash
representing $1,319,425, maturity value-- or a total sale for this single day
of January 4th of $9,626,532, maturity value, of United States Savings Bonds.
The Secretary stated that tabulation of sales by states to the end of the
year 1936 shows that the State of Illinois leads the United States with a maturity
value sale of $72,337,850. New York State is second with a maturity value sale
of $49,021,675. Ohio is third, then follows Pennsylvania, with Iowa, Missouri,
and Minnesota next in order. Michigan takes the eighth place, while California,
Texas, Indiana, Wisconsin, Kansas, and Nebraska follow in close succession.
227
-2-
The sales of United States Savings Bonds in the 50 leading cities show
Chicago well in the lead with a maturity value sale of $35,611,666 from Merch
1, 1935, to January 1, 1937. New York is not a very close second with only
$26,526,225. The total sales for the 50 leading cities amounted, on January
1, 1937, to $261,968,549. maturity value.
Tabulations of sales made during the last quarter of the year 1936 indicate
that men are buying approximately 23.12 percent of the total of Savings Bonds
sold; while coowners - mostly man and wife who buy these bonds jointly account for 32.43 percent; and women, for approximately 17.14 percent. A
beneficiary is named in about 8.61 percent of the bonds sold. Banks are buying
about 8.75 percent, and the rest of the sales are to corporations, associations,
and trust funds.
The small towns and rural America purchase in excess of 31.90 percent of
the total amount of bonds sold each month; and towns from 10,000 to 25,000
population, about 9.94 percent; while citics from 25,000 to 100,000, buy
anoroximately 13.72 percent. The metropolitan cities of 100,000 or more, account
for about 44.44 percent of the total sales of Savings Bonds each month.
The most popular unit of the five donominations in which United States
Savings Bonds are sold is the $100, maturity value, bond, which accounts for
approximately 32.46 percent of all the bonds sold. The $25 unit is next in
popularity with approximately 23.12 percent. Then follows the $50 unit with
19.37 percent. The $1,000 bond is next in order being more popular than the
$500 unit and accounting for anoroximately 15.73 percent of the total sales,
while the $500 unit accounts for 9.32 percent of the total sales.
Sales of United States Savings Bonds in the 50 larger cities and in the
several states and possessions from March 1, 1935, to January 1, 1937, arranged
in order of their total sales for this entire period were:
-3-
228
Statement of United States Savings Bonds Sales from March 1, 1935
through December 31, 1936.
STATE
Illinois
New York
Ohio
Pennsylvania
Iowa
Missouri
Minnesota
Michigen
California
Texas
Indiana
Wisconsin
Kansas
Nebraska
Massachusetts
New Jersey
Oklahoma
Washington
Colorado
Kentucky
Oregon
North Carolina
Virginia
Maryland
West Virginia
Tennessee
Montana
Florida
Georgia
Nerth Dakota
Louisiana
Arkansas
South Dakota
Mississippi
Alabama
South Carolina
Connecticut
Maine
Ideho
Utch
Wyoming
New Mexico
Arizona
New Hamoshire
Rhode Island
Vermont
Nevada
Delaware
*Dist. of Columbia
*Includes a portion of mail orders.
MATURITY VALUE
OF TOTAL SALES
$ 72,337,850
49,021,675
12,520,050
38,112,825
35,635,750
35,466,900
33,454,625
30,251,575
29,018,800
27,855,400
25,711,875
25,605,575
25,573,800
18,480,425
12,754,750
12,233,050
12,100,275
11,890,475
9,866,700
9,360,375
9,084,850
8,940,100
8,340,650
7,676,225
7,664,500
7,475,900
7,389,800
7,221,175
7,131,975
6,333,375
5,721,425
5,445,850
5,399,125
5,292,025
4,574,125
3,870,275
3,513,150
2,711,600
2,071,075
1,993,625
1,828,000
1,694,825
1,681,850
1,462,150
1,393,100
1,328,575
925,975
557,075
34,200,775
$720,175,900
Statement of United States Savings Bonds Sales at the Fifty Largest
Offices from March 1, 1935, through December 31, 1936.
OFFICE
MATURITY VALUE OF SALES
Chicago, Illinois
$ 35,611,666.00
New York, N.Y.
26,526,225.00
12,459,416.00
10,834,905.00
10,660,274.00
Detroit, Michigan
St. Louis, Missouri
Milwaukee, Wisconsin
Minneapolis, Minnepota
Philadelphia, Pennsylvania
Cleveland, Ohio
Kansas City, Missouri
9,881,505.00
9,493,195.00
8,889,258.00
8,514,968.00
7,210,662.00
6,616,384.00
5,796,941.00
5,693,989.00
5,361,001.00
Los Angeles, California
Boston, Massachusetts
Denver, Colorado
St. Paul, Minnesota
Pittsburgh, Pennsylvania
Portland, Oregon
Beltimore, Maryland
5,184,000.00
5,124,025.00
5,043,334.00
4,923,191.00
Omaha, Nebraska
Cincinnati, Ohio
Brooklyn, New York
Seattle, Washington
4,895,459.00
Toledo, Ohio
4,453,351.00
4,279,000.00
4,155,433.00
3,580,967.00
3,017,775.00
3,016,450.00
2,813,768.00
2,581,717.00
2,459,441.00
Newark, New Jersey
2,387,486.00
Indianapolis, Indiana
San Francisco, California
Des Moines, Iowa
Columbus, Ohio
Louisville, Kentucky
Dallas, Texas
Houston, Texas
New Orleans, Louisiana
2,376,691.00
2,176,650.00
2,171,271.00
1,861,725.00
1,825,525.00
1,803,925.00
1,538,102.00
1,412,972.00
1,277,041.00
1,241,760.00
1,183,157.00
980,416.00
825,800.00
715,108.00
681,216.00
619,225.00
602,841.00
581,050.00
540,618.00
323,816.00
15,762,939.00
$261,968,549.00
Memphis, Tennessee
Dayton, Ohio
Buffalo, New York
Atlanta, Georgia
Richmond, Virginia
Oklahoma City, Oklahoma
Oakland, California
Ft. Worth, Texas
Akron, Ohio
Rochester, New York
Jersey City, New Jersey
Providence, Rhode Island
Harrisburg, Pennsylvania
Syracuse, New York
Nechville, Tennessee
Hartford, Connecticut
New Haven, Connecticut
Albeny, New York
Springfield, Ohio
Washington, D.C.
Includes a portion of mail orders
ooOoo
229
230
LMS
my
A portion of this telegram
Paris
before being communicated
Dated February 8, 1937
must be closely paraphrased
to anyone. (A)
Rec'd 3:25 p. m.
Secretary of State,
Washington.
178, February 8, 6 p. m.
(GRAY) FOR TREASURY.
Dealings on the exchange market today were fairly
quiet and the tendency slightly less nervous. Nevertheless the exchange fund was called upon to intervene several
times and lost a fair amount of sterling we are told by
our market contact. Sterling opened at 105.10 and is now
quoted at 105.13. The dollar is steady at 21.48 with other
currencies firm.
The forward rate for the dollar is 25 centimes for
one month and 68 centimes for three months. The rate for
the pound is 1.15 francs for one month and 3.12 francs for
three months. This is a slight improvement on Friday's
forward rates.
On the security market rentes showed a weak tendency
but apparent official intervention reduced losses to
about 20 centimes. Other French securities were weak and
irregular but internationals continued active and strong,
On account of the holiday here tomorrow, Shrove Tues-
day, the banks will close at mid-day and there will be
no
231
-8no official exchange dealings.
It 10 thought possible that a very moderate repatriation of French funds has taken place recently and thus
offset to some extent the substantial purchases which
have been made of pounds and dollars. The impression is
given by the financial press that with the proceeds of the
London credit and the three billion france recently transferred from the Bank of France to the fund it will be possible for the Treasury to get along for a few weeks.
The results of the "national defense" loan which closed
on February 1, have not yet been announced. Silence in
this regard has been interpreted as an indication that
results are disappointing.
CONFIDENTIAL. Reliable information has come to us
that through subscription the Government received compara-
tively little gold. However, on the other hand it was
stated that they had fairly satisfactory results from subscriptions in the form of the so-called Auriol bonds of
July 9, 1936.
According to press reports Minister of State Faure in
referring to the financial situation at St. Etienne yesterday stressed that the present Government had never
claimed that it would apply the program
and
232
LMS 3-No. 178, February 8, 6 p. m. , from Paris.
and the doctrine of the Socialist Party. The Government
had not taken the power to this end and all were in agree-
ment in this respect, he said. Turning to the financial
situation he recognized that there existed some "black"
spots but contended that this was the consequence of the
billions of debts which the Popular Front Government had
inherited from the so-called "National" Governments.
A debate on the financial situation before the Senate
is announced for tomorrow February 9.
BULLITT
CSB
03913032
233
TREASURY DEPARTMENT
Deers
INTER OFFICE COMMUNICATION
DATE February 8, 1937
To
The Secretary
FROM
Mr. Taylor
Saturday afternoon, about three o'clock, Kenneth Bewley called
up and said that he had a message for you from the Chancellor of the
Exchequer. He came out to the house and let me see the text of the
message which was about as follows:
"That, as you know, the credit to the French
Railways amounting to 40 thousand pounds, of which
I spoke in my last message, was arranged. Ostensibly
this credit was to the French Railways but of course
was really for the benefit of the French Government.
Such indications as I have received lead me to fear
that it has not had the effect I hoped for and the
French Government's difficulties seem to be increasing.
The Governor of the Bank of England has gone to the
meeting of the BIS at Basle and hopes to have the
opportunity of speaking to the Governor of the Bank
of France about the situation generally. On his return
I hope to be able better to judge the position. I will
communicate with Mr. Morgenthau again when there is
anything more to say."
I had a brief general discussion with Bewley and he interpreted this message to indicate a desire on the part of the
Chancellor to keep in very close touch with you during this period.
Bewley also expressed the personal hope that, regardless of what
the French did, it would not be necessary for either the British
or ourselves to alter the dollar-pound relationship.
He then asked me my own opinion as to whether further French
devaluation or exchange control would be preferable from our joint
standpoint. I said that naturally this was a very difficult question
and that all of France's difficulties seem to be caused by the fact
that French capital has no confidence in the present Government, so
that a new devaluation would probably not correct this situation.
Also, that much as we might dislike exchange control, for our purposes
it might be the lesser of two evils, but that it was impossible to
giveneven a personal answer to this question without giving the matter
a great deal more thought.
I then telephoned you, giving you the Chanceller's message,
which I indicated that you would probably answer on your return on
Monday.
welf
PARAPHRASE OF TELEGRAM RECEIVED
FROM: American Embassy, Paris, France
III
DATE: February 9, 1937, 2 p.m.
NO.: 180
A good authority has informed us that while the outflow of capital from France has considerably decreased it
has by no means come to an end, and that the exchange
fund frequently and for substantial amounts must intervene.
All banks here, we are told, have again been asked
by the Governor of the Bank of France not to encourage
forward currency operations; recent exchange operations
have probably been influenced to some extent by this
recommendation. Rueff of the Treasury, it seems was
the sponsor of the decision of the Minister of Finance
on December 16th to remove all restrictions on movements
of capital. Rueff, it is suggested, was anxious to make
an impressive gesture at the outset of his career as
Director of the Movement of Funds section. The Bank of
France, we are told, opposed the decision taken in this
respect. The impression prevailed in the Bank of France
that an abrupt return to complete freedom was unnecessary
and undesirable.
Reliable information has also come to us regarding
the impression given by the press that some repatiration
of capital has taken place. We are told that since the
announcement
234
235
-2announcement of the British credit something like
100,000,000 francs only have been repatriated and that
this represents chiefly sums brought back for industrial
requirements and for speculation on the Paris bourse.
END SECTION ONE.
BULLITT.
03V13038
EA:LWW
TEET e 837
THONTRATED
nation
14
a
TRUSAGHT
236
Monday
February 8, 1937
3:10 p.m.
HMJr:
Cordell
Hull:
Hello? - hello?
Welcome back.
HMJr:
Thank you.
H:
How are you feeling?
HMJr:
Oh, I had a good rest.
H:
Well, that's fine, have you got sunshine?
HMJr:
Yes, we were very fortunate.
H:
Yes, that's fine.
HMJr:
It's a nice cool sunny day.
H:
HMJr:
Yes - glad you're back.
I'm glad. Cordell, two things I'm calling up about -
H:
Yes
HMJr:
I don't know whether anybody has brought to your at-
tention this article that Henry Wallace wrote for an
English newspaper.
H:
HMJr:
No, I haven't seen it.
Well, he wrote an article which - for some paper he showed it to me about a month ago - we made some
criticisms and then he said he wasn't going to write
it.
H:
HMJr:
H:
HMJr:
H:
Yes
Now he's written it up for a British paper and he's
given it out here and he goes ahead and scolds the
English about the gold and silver and all that.
That was a speech wasn't it?
No, it was an article.
Oh, was it? Why, they were asking me about it this
morning. I just thought it was a speech. I didn't
pay any attention to it.
237
-2HMJr:
No, it was an article which he wrote for some British
newspaper. But he promised me - I didn't - after
showing it to me that he decided,- well, I think it's
a good thing - the London Daily Telegraph --
H:
Yes
HMJr:
But he gave it out here and there.
H:
Yes
HMJr:
Now, I wanted to ask your advice sort of off the
record. I thought I'd call up Henry -
H:
Yes
HMJr:
- and say, "Henry, how come, you told me you weren't
going to do it?"
H:
Yes
HMJr:
"We pointed
out three or four mistakes when you did
show
it to us."
H:
Yes
HMJr:
"And, frankly, I'm surprised to read it in the paper
after you promised me you wouldn't do it."
H:
HMJr:
Yes - and especially when it's so easy to rock the
boat in international affairs right now.
I mean, for him to go ahead and scold the English -
H:
Yes, - yes
HMJr:
Don't you think if I do that very quietly it's all
right?
H:
Well, I don't see - tell him that you wouldn't be
HMJr;
Yes
H:
frank -
- and you know he wants to be just as helpful as you
do HMJr:
Yes
238
-3-
- but on international matters here that - that are
H:
delicate as they can be -
HMJr:
Yes
H:
- And while we are gradually making progress
HMJr:
Yes
H:
-
- those whose function it is to deal with them
primarily, it's - You're just sorry that he feels
obliged to feel constrained to make these kind of
utterances.
HMJr:
H:
HMJr:
H:
If I was going to write an article for an English
paper, even if it was on monetary matters, I wouldn't
think of doing it before sending it over to your
place.
Well, of course I wouldn't think of doing it.
I can't - if he sent it anywhere around here I never heard
of it. They were asking me about it at at the Press
Conference this morning and I told them I knew nothing
about what it was all about.
HMJr:
Well, I have a Press Conference at four o'clock and I
don't know what to say.
H:
Yes
HMJr:
Well, I think I'll call him up and tell him.
I think just a few words along the line -
H:
HMJr:
As long as he showed it to me and then -
H:
Yes
HMJr:
- gave me his word he wasn't going to do it.
H:
Because it causes us - it gets up - as you know, right
now, there are prospects of real progress over there -
HMJr:
Yes
H:
- with those people. And then to have a Cabinet member -
239
-4HMJr:
Yes
H:
- go to biffing them on the nose, you know. - It is
unfortunate, that's true.
HMJr:
I'm sending you over a little later a note about we're sending some extra people over to Europe to
fight narcotics over there.
H:
Yes
HMJr:
And, normally it would just go through the regular
channels, but I'm bringing it to your attention
personally.
H:
Yes,
all right, I - I haven't had a chance to get
into that.
HMJr:
Well, I - what I'm doing, quite frankly, is I'm
just disregarding (Laughs) I find there
have been eight or ten letters that have gone on
between our departments since September second.
H:
Yes
HMJr:
I'm sure you haven't got time to read them.
H:
I've read them
HMJr:
And I haven't either and - the situation over there
-
is very serious and we want to send three men over
there.
H:
Yes
HMJr:
And I'm writing the regular formal letter - we always
notify you people -
H:
Yes
HMJr:
- when people are going abroad, plus a personal note.
H:
Yes
HMJr:
Strictly between us - I think this fellow Fuller
hasn't got enough to do.
H:
Yes, I see. I haven't gone into it.
240
-5HMJr:
Well, I think he - I think he's got this thing -
H:
Yes
HMJr:
And, which we're charged with and we've got to see
H:
Yes - Henry -
HMJr:
Yes
H:
You've been away how long, ten days?
HMJr:
One week -
H:
HMJr:
H:
HMJr:
H:
he takes his job seriously and I think his There's the treaty side of it and there's the police
side of it and ours is the police side.
that this stuff doesn't come to our shores.
Well, you - I'd gotten by - I'd gotten my reply
from the British, hadn't I, before you left?
No, I It came in just the other day.
No, I didn't know anything about it.
Anyhow, of course this is in great confidence -
HMJr:
Surely
H:
They have indicated a disposition - they have indi-
HMJr:
Yes
H:
- a disposition to reduce some of their Empire
cated for the first time -
preference rates.
HMJr:
Well, that's very interesting.
H:
Well, that's the first time - that's the first time
HMJr:
I'm keenly interested.
H:
HMJr:
they've showed the slightest disposition - and I'm Well, that's - that's a tremendously interesting
thing and if now, we do go forward Yes
241
-6H:
- with our with the trade rulings and with a
fairly substantial arrangement it's going to ring
out in great shape.
HMJr:
Oh, well I'm simply delighted. And then there's
this thing
nate.
H:
HMJr:
H:
HMJr:
H:
HMJr:
of Wallace's that's particularly unfortu-
Oh, of course, of course, from what you say. I
haven't really read it; I just saw the head-line.
Well, I've read it and it's just damn stupid.
Yes, I see.
I mean, after all I sit here and sweat - my job is
this gold that's coming over and - and it's my responsibility and it's a terrifically serious one.
Well, why don't you - why don't you say to the
Press that - that you knew nothing about this and
are not responsible in any way. And, so far as you
can say - so far as you know the State Department
didn't
either.
All right.
H:
What do you think about that?
HMJr:
Well, what I am going to do is - I don't want to
keep bothering the President with these squabbles.
H:
Yes, that's - if you could get some
HMJr:
I'm going to ask Steve Early if he saw it, see?
H:
Yes
HMJr:
If he didn't, then I will say that neither - so far
as I know, neither the State Department nor the Treasury
were consulted before this went out.
it
H:
If you could get/in some little -
HMJr:
- dig -
H:
- some little mild form and just say, "I don't - we
didn't know anything about this until we saw it in the
papers and I haven't - - If - Well, maybe if you say
that and then let me - I said that practically this
morning.
242
-7HMJr:
H:
HMJr:
Well -
- that I didn't know anything about it.
Well, may - I think I can say something that - Oh, - that I hadn't - I don't know - I'll
get in something a little bit surprised, because
if Mr. Wallace had anything in mind to give on
gold I should think he'd have given it to me first,
instead
of letting me get it by reading the English
newspapers.
H:
Yes, I - I don't - it's a question always about
whether to get the President to try to stabilize
a situation like that.
HMJr:
Well, I hate to bother him.
H:
Yes, I know.
HMJr:
H:
HMJr:
H:
HMJr:
H:
HMJr:
But, what I've done heretofore, and I'll most likely
end up by doing it, if some Cabinet member says
something, I usually just say, "Well, I don't know
anything about it." - and take it.
Yes, and say we never - you never heard of it and
had no information about it until you saw the headlines and that's all you've seen yet.
I think that's safe.
Yes, all right, Henry.
I'm - but I'm delighted about that English Oh, that's awfully interesting.
And I don't know whether - the only thing I got is
that on Saturday Taylor called me up down south
-
H:
Yes
HMJr:
- to say that he had a "secret and confidential"/via
message
Bewley from Neville Chamberlain.
H:
Yes
HMJr:
- that Neville Chamberlain was very much worried about
the French situation.
243
-8H:
HMJr:
Well, I can understand that.
And
again.that he would - I would hear from him shortly
H:
Yes
HMJr:
But it would be marked "Secret and Confidential" I don't know whether Taylor told us the price or
not.
H:
Yes, I don't either, but I'm not surprised at it.
I'm not either.
HMJr:
H:
Well, I'm so glad you're back, Henry.
HMJr:
Thank you.
244
PARAPHRASE OF SECTION TWO OF TELEGRAM NO. 180
of February 9, 1937, from the American Embassy, Paris.
Confidential information has come to us that a
BIS delegation visited the Bank of England a few days ago
in order to secure the assent of the latter to sell gold
to the BIS "for the account of others"; i.e., for the
central banks of issue of the small Central European countries members of the BIS. The Bank of England, we are told,
refused the request. It was the impression of our informant that the Bank of England was influenced in this
respect by its desire to maintain its direct contact with
the institutions concerned. Strictly confidentially the
Bank of England informed the Bank of France of its posi-
tion, and indicated to the latter that the delegation on
its way back to Basel might make a similar request of the
Bank of France.
The Bank of France was in fact approached by the
above-mentioned delegation. While the Bank of France did
the delegation was
not definitely say no, we are told that/********* told
in view of the present situation the rates of the Bank of
France would undoubtedly be 80 high that the BIS would prob-
ably not find it practicable to engage in such transactions.
There are rumors circulating that the French Treasury
is negotiating for loans in the Netherlands and in Sweden. In
this connection we are told that soundings have probably taken
place by certain intermediaries interested in possible commissions but that such soundings have not reached the stage of
245
-
2
definite negotiations, so far as is known.
BULLITT.
EA:LWW
246
RB
GRAY
Paris
Dated February 9, 1937
Rec'd 3:40 p. m.
Secretary of State
Washington.
180, February 9, 2 p. m. (SECTION THREE).
With respect to the board meeting of the BIS on
February 8 considerable interest has been shown in the
French press with regard to the indication that Governor
Norman may be the next President of the Institution and
that he will probably be elected at the annual general
meeting which according to the press has been fixed for
May 3.
An official communique published in the press
indicates that no changes are contemplated in the
relations between the BIS and the Reichsbank.
Unofficial dealings in exchange this morning are
fairly quiet and the rates are about on a level with
those of yesterday. As indicated in our telegram of
yesterday there will be no official exchange market this
afternoon. (END OF MESSAGE)
BULLITT
CSB
247
PARAPHRASE OF TELEGRAM RECEIVED
FROM: American Embassy, London, England
DATE: February 9, 1937, 6 p.m.
NO.: 54
FROM BUTTERWORTH.
FOR TREASURY.
At a meeting of the British Treasury today they confirmed that they too had received assurances through LeNorcy
that the French had no intention of changing the franc's
value at the present time. It appeared from today's conversation that Waley and Phillips were if anything more
pessimistic about the French position than they were when
we last met - reference, telegram No. 33 of January 28,
6 p.m., from the Embassy.
The past fortnight, it was emphasized, had really been
a critical one in that that was the time when a change
for the better should have taken place if it were to come
at all. Technically the belief had become widely held that
it would be insufficient to depreciate the franc within its
legal limits and remove the penal measures on gold hoarding
and funds held abroad. Waley pointed out, in fact, that
before September one could look forward and say that improve
ment would come to France when the franc was devalued, but
that no one could now point to a sure remedy for the French.
ATHERTON.
THEM7RA930 THURAIST
EA:LWW
adida
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
III
248
DATE February 9, 1937.
MEMORANDUM OF DAY'S ACTIVITIES.
To
THE SECRETARY
FROM
MR. MAGILL
1.
Tax on Foreign Investments and Investors.
Mr. Haas and Mr. Zucker reported the substance of their
conference on Friday with representatives of the Federal Reserve Board
and the Securities and Exchange Commission. At the conference Mr.
King's memorandum of objections to Mr. Bryan's tax program was read
in Mr. King's absence, but no agreement was reached as to substitute
proposals. I asked Mr. Zucker to study the various memoranda and to
suggest any alternative taxes which seemed to him to be theoretically
sound and capable of practicable administration.
2.
Railroad Retirement Allowances.
Mr. Opper brought in the draft of a proposal for the extension of the period during which the tax will be operative, the new
date being June 30, 1938; together with a memorandum of the history
of the legislation. Opper had cleared the proposal with Justice. He
asked me to clear it with Mr. Bell, the Railroad Retirement Board and
the Department of Labor. Mr. Bell gave me a clearance over the telephone and stated that he saw no reason for consulting Labor. Mr. Latimer
of the Railroad Retirement Board stated that negotiations were now in
progress between the railroads and their employees for substitute legislation, but he appeared to be agreeable to the extension legislation.
3.
Small Compromises.
I have asked Mr. Kent to consider and draft legislation to
eliminate the necessity for your signature on compromises of income and
miscellaneous tax involving small sums. We seem to get around two
dozen compromises a day involving $5.00 to $10.00, and I have noticed
that ordinarily twelve initials appear on them when they get to us. I
see no reason why compromises involving less than some maximum amount -
say, $500. or $1,000. should not be negotiated and concluded by the
Collectors.
Run.
249
February 9, 1937.
9:17 a.m.
H.M.Jr:
Hello
Hello
H.M.Jr:
Landis?
Landis:
Yes.
H.M.Jr:
How are you?
L:
Pretty good thank you.
H.M.Jr:
Fine. Landis, I walked down with Eccles this
morning and talked to him about this question of
how we might handle the - ah - foreign foreigner
who invests in our stock, see?
L:
Yes.
H.M.Jr:
And our boys - all of them - they're making this
thing so complicated we're not going to get anywhere at least I'm afraid not and I have a suggestion, which
I gave to Eccles, and I wanted you to think about it and
that is that we might do this thing in two bites; one
bite immediately and that is to increases the taxes
on the alien - on his stocks and his interest, you see?
We've already got that principle where we tax them at
the source you see?
L:
H.M.Jr:
Yes.
Ah - I think I I could get that bill through in a
of a tax bill. At the same time - I'm just throwing
this out as thoughts - listing the things that the
week or ten days without raising the whole question
three organizations were studying, you see?
L:
H.M.Jr:
Yes.
I think that that would throw a fright into the
people and would check the thing for some time and
that would give us additional time to iron out our
differences but I don't know whether you've listened
to your boys on this.
L:
Yes, I have.
H.M.Jr:
But it just makes you dizzy.
L:
Yes.
-2 H.M.Jr:
<50
Now Eccles said he frankly hadn't studied it - he'd
work on it over the week-end and he said he'd be
ready at 10 o'clock Monday. I wondered whether you
would be free and.
L:
That's next Monday?
H.M.Jr:
Next Monday.
L:
Yes.
H.M.Jr:
Could you come to - would you be willing to come to
my office
L:
Sure.
H.M.Jr:
.....at 10 o'clock.
L:
Sure, I'd be glad to.
But I just wanted to tell you what was running through
H.M.Jr:
my mind.
L:
Yes.
H.M.Jr:
I mean to get something immediately.
L:
Yes.
H.M.Jr:
I think I could get it through in a week or ten
days.
L:
Yes.
H.M.Jr:
Hello.
L:
Yes, I think that's - I think that's possible and
get - I mean you can't cover this problem absolutely.
You've just got to chisel at it here and there.
That's it and then list the things we were studying all the different devices.
H.M.Jr:
L:
Yes.
-8 H.M.Jr:
L:
251
That
wouldit be a trial balloon and we - people could
criticize
Ah-ha.
H.M.Jr:
but it would give us something to check this
thing
L:
Yes.
H.M.Jr:
L:
.immediately.
Isn't the Presi - the President is very sympathetic
to this, isn't he?
H.M.Jr:
Oh yes.
L:
That's what I thought.
H.M.Jr:
And - but I wanted to give you what was jut running
through my mind.
L:
Yes - yes.
H.M.Jr:
And then I thought - Eccles says he needs Saturday
and Sunday to study it and then he said he'd be
ready at ten Monday.
L:
Yes.
H.M.Jr:
How does that strike you?
L:
That's all right with me.
H.M.Jr:
What?
L:
That's all right with me.
H.M.Jr:
Fine - well then you come and bring anybody you
want with you.
L:
Yes, all right.
H.M.Jr:
What?
L:
All right, fine.
-4H.M.Jr:
L:
252
All right, and you feel pretty well?
I feel quite well - well not quite well - I'm very
apologetic over (laughs)
H.M.Jr:
Oh well forget about that.
L:
Thank you very much for your courtesy and consideration.
Well I wish I could have done more.
H.M.Jr:
L:
Well that's awfully good of you.
H.M.Jr:
Well I'll - I'll see you at ten Monday.
L:
Yes indeed.
H.M.Jr:
Thank you.
L:
All right, thanks.
253
February 9, 1937.
9:50 a.m.
Operator:
Chairman Miller.
H.M.Jr:
Hello
Miller:
Hello Mr. Secretary.
H.M.Jr:
Mr. Miller.
M:
Yes.
H.M.Jr:
Your man, Sweke
M:
Yes.
H.M.Jr:
has been making our here miserable about
this letter of Mr. Eastman's.
M:
He has.
H.M.Jr:
Yes, and - ah - ah - finally through Mr. McIntyre
and Mr. Foster yesterday we found that the letter
did go to the White House and never did come here.
M:
H.M.Jr:
Yes.
And it went directly from your office to the White
House.
M:
Well I don it know how that could have happened.
H.M.Jr:
And he's been calling up my Secretary, Mrs. Klotz,
again and again and the letter never did come here.
M:
Well I don't understand that. I'll take it up with
Mr. Eastman but he told me that he sent it over to
you by Special Messenger.
H.M.Jr:
Well we have absolutely no record here and you better
find - for your own satisfaction, I wish you'd send
for the messenger, see?
M:
Yes.
H.M.Jr:
Who was supposed to carry the letter and ask him what
he did with it.
-2M:
254
I certainly will as this is an awful lot of
parsnip, Mr. Morgenthau, and I don't understand
it. They shouldn't have had any mixups anyhow.
H.M.Jr:
M:
H.M.Jr:
M:
H.M.Jr:
M:
Well
would you mind doing it and then calling me
back?
I certainly will. I'11 do it right away.
But Mr. McIntyre and Mr. Foster say the letter is
over at the White House; we have not yet gotten a
copy of it - we haven't got the original.
Yes, well I know it was over there because
Well I'm as positive as anybody can be that it
never came to the Treasury.
Well I certainly am sorry. I'll check it up right
away.
H.M.Jr:
And just send for whoever the messenger is and ask
him what he did with it.
M:
Yes I certainly will.
H.M.Jr:
And I'd like to know to whom he gave it.
M:
Yes sir, I'll find out.
M:
All right, thank you very much.
Thank you for calling.
H.M.Jr:
Thank you.
H.M.Jr:
255
February 9, 1937.
10:25 a.m.
Operator:
Go ahead.
H.M.Jr:
Hello
Miller:
Hello Mr. Morgenthau.
H.M.Jr:
How good a detective are you, Mr. Miller?
M:
Well I don't know. It's a peculiar thing. Our
messenger, who is the personal messenger in
Eastman's office, said he delivered these papers
to a colored fellow in your office and, of course,
we don't know what happened beyond that.
H.M.Jr:
M:
H.M.Jr:
Could he come over and identify him?
I think so and now I went further and called up
the White House; I didn't get McIntyre; he wasn't
there but I talked to Miss Barrows
Yes.
and she tried to find out what she could.
M:
H.M.Jr:
Yes.
M:
You see I saw the letter of Eastman's and also the
,proposed copy to the President in McIntyre's office
the morning I went over there and she (Miss Barrow)
said that she didn't know what had happened in the
President's office with the letter but that McIntyre
was going to talk with you to-day about it.
H.M.Jr:
Yes.
M:
Now I don't know if - just what he's got to say but
maybe he knows something personally about it.
H.M.Jr:
No he doesn't because he talked to my Secretary
last night and he wanted to know what all the
shooting was about
M:
Well (laughs)
256
-2-
H.M.Jr:
and she told him and then he said that he
didn't know anything about it but I'll tell you
what I'd like you to do because I'm really
interested.
M:
Yes.
H.M.Jr:
What is this messenger's name?
M:
Well I don't know his name but I'll find out.
H. M. Jr:
Well would you send him over with a letter from
you and ask him - ah to come - ah - to my office.
M:
Yes.
H.M.Jr:
Will you?
M:
Send him over with a letter?
H.M.Jr:
Well I mean just so we can identify him.
M:
Oh sure, I'll get ahold of him just right away.
M:
And have him over here, say at 12 o'clock.
At 12 o'clock.
H.M.Jr:
To come to my room and he can ask for - ah - when
H.M.Jr:
M:
he gets there just ask for Mrs. Klotz - K-1-o-t-z.
Ask for Mrs. Klotz.
H.M.Jr:
Yes, and I want him to identify the messenger to whom
M:
H.M.Jr:
M:
H.M.Jr:
he gave it to.
Well I certainly would like to have this straightened
out. We might have to put your Secret Service on it.
Well we've done that before.
(Laughs)
Well
257
-3M:
H.M.Jr:
But It's awful unfortunate and I'm awful - very
sorry but - and I would certainly like to find
out what it is all about.
Yes, well have him over here at 12 o'clock, you see?
M:
I will to see Mrs. Klotz.
H.M.Jr:
K-1 -o-t-z.
M:
Yes, I'm very much obliged and I'm awful sorry
to have to take up all your time.
H.M.Jr:
No, McIntyre doesn't know anything because he
called up and tried to find out last night what
it was all about and he spoke to Mrs. Klotz and
he didn't know anything about it.
M:
Well maybe Miss Barrows is mixed up but the last
thing she told me was that McIntyre was going
to see you about it to-day.
H.M.Jr:
Yes, that's right.
M:
Yes.
H.M.Jr:
Well that's right but he's trying to find out from
M:
H.M.Jr:
me what I know.
Oh yes I see well maybe we'll have to put the
Secret Service on it.
But as I understand it, Eastman's messenger said
he came to the Treasury and delivered it to one
of our colored messengers?
M:
That's it - to a colored boy at the door. That's
the way he describes it.
H.M.Jr:
Well let him come over and we'll have him identify
M:
All right.
H.M.Jr:
Thank you.
M:
Goodbye.
him (our man)
258
Tuesday
February 9, 1937
12:45 p.m.
HMJr:
Treas.
Hello
Operator: Chairman Miller - go ahead.
HMJr:
Hello
Miller:
Hello, Mr. Morgenthau
HMJr:
Say, Mr. Miller -
Miller:
Yes
HMJr:
That boy has been here for about an hour
Miller:
Yes
HMJr:
Did you talk to him? - Yourself?
Miller:
HMJr:
Oh yes, I just saw him and gave him a letter
Well, he seems like a half wit to me.
Miller:
Oh, he does?
HMJr:
Well, I mean, he insists that he gave it to the
-
-
Comptroller General.
Miller:
Comptroller General?
HMJr:
That's what he says.
Miller:
Why he told me he gave it to a colored fellow at
your
HMJr:
No, we've had him - I've had my secretary take
him up and down - he's been to the fourth floor
and the second floor - I think what he means is
the Comptroller General down at the other end of
the hall.
Miller:
Yes
HMJr:
See?
Miller:
Yes
HMJr:
Yes, I think he must have given it to somebody, just
some messenger of the Comptroller General. But, I mean,
259
-2-
the Comptroller of the Currency. But he insists he
gave it to the Comptroller General.
Miller:
HMJr:
Miller:
HMJr:
Miller:
HMJr:
Well (Laughs)
And most likely he gave it to somebody in the building
and somehow or other it got to the White House. But
he did not give it into my office.
Well -
But
he insisted that he gave it to t he Comptroller
General.
Well, that's peculiar, he told me he gave it to a
colored fellow in your office.
No, we've had him all over the building and he can't
identify anybody.
Miller:
HMJr:
I never saw him until today.
Well, let's let the matter drop.
Miller:
Yes
- Well, it's perfectly all right with me, - it
was embarrassing to you I was afraid.
HMJr:
Well, no, it wasn't embarras- - as I understand it,
your people over there wondered how it got to the
White House.
Miller:
HMJr:
Miller:
HMJr:
Yes
I don't know how it got there, but the messenger he keeps saying, "I gave it to the Comptroller General."
Well that's the most peculiar thing.
Yes - well, I guess it'11 have to be among the unsolved mysteries of Washington.
Miller:
HMJr:
Miller:
HMJr:
Miller:
(Laughs) Well, it's all right with me, Mr. Morgenthau.
Well, I'm not going to worry. It's not important enough.
No, I think it's all over with now, as far as that goes.
But, the boy doesn't seem quite all there to me.
Well, I don't know. I only saw him for the moment.
I'll find out more about him out of my own personal
curiosity.
260
-3HMJr:
0. K.
Miller:
Well, I'm sorry it all happened and I reckon it's
the best thing just to let it go.
HMJr:
Miller:
HMJr:
Thank you.
Are we going on with any more talk in regard to that - - ?
What's that?
are
Miller:
Are we four experts going on with any more talk - ?
HMJr:
Well, I don't know, I haven't - it's in Magill's hands
and I haven't talked to him recently. .
Miller:
Well,
it's left so that if he wants any more he's to
let us know.
HMJr:
All right.
Miller:
So anything he says then is all right with us.
HMJr:
Thank you.
Miller:
All right, thank you, Mr. Morgenthau.
261
February 9, 1937
Walked down with Eccles and told him that I thought
we ought to get together and get through quickly a piece
of legislation which would simply raise the tax on dividends and interest to aliens living abroad and also change
the Second Liberty Loan Act which gives aliens living abroad
the right to be exempt from paying any taxes on Governments
owned by them. He seemed to think fairly well of this.
I wanted to get together with him Friday, but he said he
would not be ready, so we set the time for ten o'clock
Monday morning.
He told me that if I agreed, he would let Leon Fraser
know (who evidently has been bringing pressure to bear on
Eccles) that he, Eccles, did not wish the By-laws changed
in order to admit American members. Eccles said, After
all, the question of international finance is the Treasury's
problem and if the Treasury does not want the Federal Reserve
to have representation on the B.I.S., the Deseral Reserve is
ready to drop the whole matter. Our thought was that the
B.I.S. would simply become a listening post where various
European central bankers would go once a month and exchange
gossip and that the chances were, in the not too distant
future, that we would take away from the B.I.S. the privilege
to earmark gold to the United States.
TREASURY DEPARTMENT
WASHINGTON
February 9, 1937
PROCUREMENT DIVISION
PUBLIC BUILDINGS BRANCH
PB SA
THE ABOVE SUB
MEMORANDUM
Secretary of the Treasury
TO:
FROM: Director of Procurement
My dear Mr. Secretary:
In connection with the model which has recently been
prepared to show the exterior design of the new Federal building to be constructed at Poughkeepsie, you will recall that
three suggestions were made for changes:
(1) Omission of the belt course at the second
story line;
(2) Substitution of granite like the wall facing,
for the cut blue stone above the first floor
line, the stone facing to be lald similar to
the Memorial Library at Hyde Park;
(3) Addition of a bell in the cupola.
I am sending with this memorandum 8 photograph of the
front showing the model &O revised and showing a bell in the
cupola. The latter is further indicated by a close-up photograph.
In regard to the bell, An architect from the Supervising
Architect's Office was sent to the Library of Congress to make
a study of the records regarding details of hanging bells in
the earlier precedents.
If there are no further suggestions, it is now proposed
to have the model sent for exhibition in the present Post Office
building at Poughkeepsie.
OK
ahea
IM
Director of Progurement
263
9 February, 1937
COAST GUARD OPERATIONS IN FLOOD AREA
Coast Guard boats which had operated in the Ohio Valley
are now arriving at their regular stations on the Coast.
The Commander, Coast Guard Relief Force, now at Memphis
reports conditions in the Mississippi Valley much better
than had been expected. He anticipates the necessity for
Coast Guard units in the region between Cairo and Memphis
will cease by the end of this week. Eight of the 10 planes
which have been operating in the flood zone will be re-
turned to their regular stations by Thursday of this week.
General Water Level Conditions.
Crest of flood now at Cairo 50.3'; Helena 59.91 and
slowly rising all the way to New Orleans.
264
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE
To
The Secretary
FROM
Mr. Taylor
February 9, 1937
Summer Welles called at your office this morning to tell you of the
President's and his progress in connection with assisting Brazil to stabilize
its currency, establish a bank of issue, incorporate gold and silver in its
reserves, and establish a definite relationship with the dollar. One of the
steps involved would be the earmarking of 50 million dollars of gold for
Brazilian account in New York. The actual gold would not leave the
country except on the basis of actual payment by Brazil on a schedule
which would be worked out in advance; in other words, on an installment basis.
Mr. Welles felt that it would be possible to utilize the Brazilian situation
to work out a model for the rest of this hemisphere. You called his attention
to the different conditions which existed in each country and said that you
would immediately start studying the situation, wt th a view to discussions
with the Brazilian authorities at a later date, if the preliminary investigations
indicated that there was a basis for cooperation. You emphasized the necessity
of going slowly in these matters and that it had taken you a full year to
prepare for the Tripartite Agreement.
We then mentioned the question of Cuba. In the discussion it was
confirmed that the Cuban Government would be encouraged to send a confidential
mission to this country to discuss their monetary problems with the Treasury,
in the hope that a workable system could be evolved which would be of use
to both the Cubans and ourselves.
I have given instructions to Haas to start work on both Cuba and Brazil
immediately and I mentioned to Haas some of the fundamentals of the Cuban
situation which can be taken into consideration in any solution which we may
suggest.
wer.
Fin
265
MEETING WITH EXECUTIVE COMMITTEE OF
FEDERAL RESERVE OPEN MARKET COMMITTEE
Present:
February 9, 1937
11:00 A.M.
Mr. Taylor
Mr. Bell
Mr. Haas
Mr. Upham
Mr. Eccles
Mr. Harrison
Mr. Ransom
Mr. Broderick
Mr. Piser
Mr. Goldenweiser
H.M.Jr:
The reason I asked Chairman Eccles to have you come
here was to go over our financing problems. Bell
prepared a memorandum which he gave me at 9:10 and
I haven t had a chance to read it, so if you will
bear with me I'll read it out loud. I haven't had
a chance to do it, so if you'd just as leave, I'll
read it out loud and do it right now.
"February 8, 1937
"TO THE SECRETARY:
Re: Treasury Financing
"The following comments are submitted on Treasury
financing for the next few months:
"February 1 to June 30, 1937: After the discussions
of last week on my estimates of the cash position for
this period, I believe there was a feeling that the
30 million dollars a month allowed for inactive gold
was insufficient and that this estimate should be increased to 50 million dollars a month. From information now available it is believed that 30 million
dollars for the month of February will be just about
right. I have, however, increased the other four
months by 20 million dollars each. Furthermore, there
was a feeling that the Treasury should not permit its
balances to run as low as indicated in my estimates.
"The following table shows the estimated Treasury
balances at the end of each month, including sales
of U. S. Savings Bonds and adding $80,000,000 for
inactive gold on the basis of (1) no new financing;
266
2-
(2) $300,000,000 of new funds raised in April,
in addition to the refunding of $502,000, 000
maturing notes. (This can be switched to March
15th); (3) same as (2) but adding $300,000,000
of Treasury bills to be issued between February
17th and March 24th, all to mature June 16-18 (this
amount can be reduced to $200,000,000 and stop
issue on March 10th) ; (4) $500,000,000 of new funds
raised in April in addition to the refunding of
$502,000,000 of maturing notes (this can be
switched to March 15th) ; (5) same as (4) but adding
$300,000,000 in Treasury bills to be issued between
February 17th and March 24th, all to mature June
16-18 (this can be reduced to $200,000,000 and
stop issue on March 10th):
Treasury balances
End
Based on new financing in the amount of
of
Month
No new
financing
(1)
$300M of
Treasury
notes or
bonds
(2)
February
March
April
May
June
$ 669 M
$ 669 M
849
504
239
434
849
804
539
734
$300M of
$500M of
& $300M
bonds
T/N or bds. T/N or
bills
(4)
$500M of T/N
or bonds and
$300M bills
(5)
(3)
$ 769 M
1,149
1,104
839
734
$ 669 M
849
1,004
739
934
$ 769 M
1,149
1,304
1,039
934
"It is obvious that our balances under (1) above would
run too low for comfort, and even under (2) and (3)
while I believe we can get through with them, run
considerably under what you have in the past contem-
plated. (4) or (5) is the safest course to pursue,
It will be noted that the low points in the balances
and one under which you would feel more comfortable.
will be reached at the end of the months of February
and May, but then we are, at these points, approaching
heavy income tax payments and there is therefore no
harm in letting the balances run down at these periods.
267
-3Moreover, I feel that the time is approaching when
a billion dollar working balance is too high for
our needs, especially in view of the large antici-
pated receipts under the Social Security Act.
"I would suggest, therefore, that you give consideration to (1) raising two or three hundred millions of
new funds through additional issues of Treasury bills
beginning February 17th and stopping either on March
10th or 24th, depending on the amount, all to mature
June 16-18, for purposes of leveling off income tax
payments at that time (later discussed), and (2)
raising $500,000,000 of new funds through the issuance of Treasury notes or bonds at the time and in
connection with the refunding of $502,000,000
Treasury notes maturing on April 15th. I prefer to
see this major financing on April 15th rather than
on March 15th for money market reasons (later discussed). While it gets away temporarily from our
policy of financing on quarterly tax-payment dates,
yet the new issue can be made to mature on a taxpayment date without any difficulty.
"Bonds or notes: As we approach a balanced budget,
the Treasury will have to consider the problem as
to whether it will want to continue to issue bonds.
It was, of course, necessary to issue bonds during
the time of deficit financing in order not to have
too much debt maturing in the immediate future. We
now have the problem of rearranging our debt program
to meet the requirements of our sinking fund and investment accounts. Below is a statement showing the
total debt maturing or subject to call (exclusive of
regular Treasury bills) in each fiscal year 1937 1950 and the net total requirements of the sinking
fund and Old Age Reserve account:
1
288
-4-
(In millions of dollars)
Total
Fiscal
year
1937
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
debt
maturing
Sinking Fund
and Old Age
Reserve
or call-
requirements
$ 802
2,167
2,832
2,995
3,287
$ 668
able
204
454
2,920
1,037
3,557
-
1,982
-
834
1,384
1,531
1,432
1,438
1,459
1,668
1,646
1,748
1,841
1,810
1,889
1,794
1,953
$24,031
$21,301
Excess
maturities
$ 134
1,333
1,448
1,464
1,855
-
1,252
-
1,809
-
172
Shortage
in
maturities
$
-
-
-
-
-
1,234
1,005
-
609
-
1,841
-
-
1,889
-
159
$9,467
$6,737
NOTE: No allowance made in above figures for investments for account of Unemployment Trust Fund.
"A glance at this statement shows that in some years
there is too much debt maturing, while in others there
is not enough. An ideal situation from the standpoint
of the Treasury would be to have about $2,000M maturing
each year, about $500M each tax-payment date. In 1942
and 1943 there is not sufficient maturity to meet the
sinking fund requirements at that time, while in 1947
and 1949 there are no maturities. We can, of course,
purchase securities in the market for the sinking fund
provided we do not exceed an average of par, but the
operation is much less disturbing if these requirements
are met through maturing issues. This will also be
true of the investment operations, where we are
269
-5authorized to issue special securities to the
investment accounts. In other words, to pay off
maturing obligations with revenue coming in and
to issue special securities to the investment
accounts would represent an ideal investment
arrangement.
"There will be very little change in the amount of
the sinking fund over the next few years, but the
amounts available for investment under the Social
Security Act will be problematical for some time to
come. The Act not only has to run the gantlet of
the Supreme Court, but will be subject to political
attack for the next few years. An attempt is now
being made in the Congress to eliminate the Old Age
Reserve Fund. To offset this attempt, the Social
Security Board has prepared amendments to the Act
which will liberalize Old Age Assistance and thereby
increase the costs to the Fund amounting in 1942 to
more than $380,000,000 without any corresponding
increase in the taxes. The Treasury should now
recognize that it can not build up the reserve of
40 or 50 billion dollars contemplated under the
Act, but if it can hold the present arrangement
until a reserve of, say, $5,000,000,000, or better
still, $10,000,000,000 is available, then I believe
it should agree to the principle of pay-as-you-go.
"Effect of Treasury financing on money market: Prior
to the period of huge excess reserves, it was always
necessary for the Treasury to give consideration to
the effect that its financing operations, including
collections of revenues on quarterly income tax payment dates, would have on the money market and what
steps were necessary to correct any adverse effects.
The Treasury considered that it was its duty to so
arrange its financing as to cause as little disturbance as possible to the market. Now that the Federal
Reserve Board has taken definite action which will
reduce excess reserves to about five or six hundred
million dollars, it becomes important for the Treasury
to again consider the effect of its major financing
operations on the money market. So that you will be
able to see the picture, the following table shows the
estimated net amount of funds (after deducting
estimated expenditures) that the Treasury will withdraw from the market on its next four income tax dates.
270
-6The only public debt maturities included for the
purpose of this statement are the Treasury bills
in the amount of $300,000,000 maturing March 16,
17 and 18.
(In millions of dollars)
Heavy income
tax payment
dates
8-14
15-20
21-23
Total:
$
66
Sept.
June
March
$
46
$
Dec.
52
$ 56
235
123
271
223
32
29
23
21
$ 221
$ 346
$ 298
$312
"The full effect of the Federal Reserve Board's action
will not be felt until May first. During March there
will still be substantial excess reserves and the withdrawal of $221,000,000 from the market at that time
should not therefore cause any disturbance. In order
that the Treasury may be in a position to meet in part
any disturbance that may occur, I suggest we permit our
investment funds for Postal Savings and Federal Deposit
Insurance Corporation to accumulate, which on March
15th should amount to between 50 and 60 million dollars
and which can be increased by redeeming special 2%
securities. If this does not entirely relieve the
pressure I suggest we permit payment by credit in War
Loan account of one or more Treasury bill issues.
"It is quite obvious that the Treasury can not expect
to withdraw excess funds during the months of June,
September and December in the net amounts above indi-
cated, with only 500 or 600 million dollars in excess
reserves, without disastrous effects on the money
market. It seems to me, therefore, that it is important we should have Treasury bill maturities of not
less than $200,000,000 in June. It may be necessary
to have maturities of bills also in September and
271
-7 December to meet a similar situation, although
these can be discussed later in the year.
"Action which the Treasury can take to offset large
net withdrawals of cash from money market: The
Treasury can by some action of its own meet almost
every tight money market situation caused by its
withdrawing from the money market more funds than
it is putting back into the market. This can be
accomplished in one or more of the following ways:
"(1) Purchase outstanding Treasury notes or bonds
for account of the sinking fund. (Authority now
available to purchase up to $500 million for this
account at a price of not to exceed an average of
$101. If price is lower than or exceeds $101, then
the amount available will be correspondingly increased
or reduced).
(2) Purchase outstanding Treasury obligations for
investment accounts. (About $45 million now available in cash which can be increased by redeeming
special 2% securities amounting to $200 million).
"(3) Pay off maturing Treasury bills in cash without
any issue of bills, or pay off maturing Treasury bills
in cash and permit payment of issuing Treasury bills
by credit in War Loan Account.
" (4) Provide beforehand for Treasury bills or other
public debt obligations to mature in these heavy
income tax payment periods for the specific purpose
of offsetting excess receipts.
(5) If there is a Treasury note or bond maturity
during these periods of excess receipts, provide for
refunding only part of it, paying balance in cash,
thus offsetting effect on market of excess receipts.
For example, in September there is a Treasury note
maturity of $817 million and there are estimated
excess funds coming in of $298 million. The Secretary
would announce in his financing circular that the
maturing notes would be accepted in exchange for any
new issue offered up to only, say, seventy per cent of
the amount of such maturing notes. This would leave
thirty per cent, or $245 million, to be paid off in
cash. Such an operation as this would have to be
272
-8handled with care as the maturing notes to be paid
off in cash might come in faster than the excess
receipts, in which case it might result in an overdraft at the Federal Reserve Banks. We could operate
this in conjunction with (a) and (b) below.
"(a) Deposit inactive gold with Federal Reserve
Banks for a period of not to exceed seven
days to cover overdraft, at the end of which
the operations could be reversed. The amount
deposited might be returned to the Treasury
from day to day as the receipts come in.
These temporary deposits would have no appreciable effect on the market.
"(b) Sell through the Federal Reserve Banks as our
fiscal agents, one to seven day certificates
of indebtedness to large banks in money centers, redeeming the certificates as the excess
receipts come in. Prior to the Banking Act of
1935, it was customary for the Treasury to run
overdrafts at Federal Reserve Banks during the
tax-payment periods, giving them a one-day cer-
tificate for the amount of such overdraft, the
Federal Reserve Banks in turn selling to local
banks participating certificates in our one-day
obligation. Each day these certificates were
redeemed and others issued in smaller aggregate
amounts until finally wiped out by revenue
receipts.
"(6) Redeposit some of the income tax receipts in War
Loan accounts of special depositaries. We have
authority to do this, but it is cumbersome unless
confined to a relatively few banks."
Now, I got another suggestion. We haven't had a
Bell:
H.M.Jr:
chance to get together on this thing.
There are one or two holes in that, I noticed; wasn't
gone over until this morning.
Dan's got five; I've got a sixth suggestion. And that
is that we do nothing from now until the 15th of
March, and at that time we pick up the April note,
273
9-
raise 500 million dollars new money, and then
immediately after the 15th begin to sell 50 million
dollars a week to come due June 15, 16, and 17, and
then let our nine months bills run off, with the
idea that we might stop our nine months entirely and
sell each tax date from three to four hundred million
dollars worth of bills coming due on tax dates, to
take care of the situation. The net result of that
would be that it would reduce our outstanding bills
by five or six hundred million dollars and we would
take care of these heavy tax payments by just having
our bills come due on tax dates.
Haas:
What's our total bills outstanding now?
About two billion two or three.
Bell:
Three.
H.M.Jr:
What?
Bell:
Two billion three. Two billion, 253.
H.M.Jr:
We could - how much?
Bell:
Two billion, 253.
Two billion, 253.
H.M.Jr:
Bell:
H.M.Jr:
Eccles:
H.M.Jr:
Eccles:
H.M.Jr:
You will retire four hundred million in March. That
brings it down to a billion nine.
I mean let our nine months stuff run off.
In discussing that
I mean I just want to offer that as another thing.
That is, your idea is to gradually eliminate the
nine month. This was - after you discussed the
matter with me, I've been discussing it, thinking
of it and discussing it.
Marriner and I - I walked down with Mr. Eccles this
morning and gave him this idea so he'd have a couple
hours to think about it.
274
- 10 Eccles:
There is a good deal of merit to it, it seems to me,
if it was done somewhat along this line. After the
March financing - don't issue any bills until after
the March financing. In the March financing you'd
get new money to take care of the three hundred
million of bills that mature in March, so that you'd
reduce bills by three hundred million. You wouldn't
put them out again. That would be included in your
new money. If you got three hundred million, it would
take care of it. If you got five, it would take care
of an additional two hundred. Then issue the bills;
divide them into two parts, say eight hundred million
bills maturing, four hundred million in three months
and four hundred million in six months. Those bills
would be a constant turnover and would make possible
four hundred million maturing on each tax period, and
the bills would not be longer than - half of them would
be three months and half six months, and it wouldn't
be longer than the six months date. That would mean
a total of eight hundred millions, or in a year sixteen hundred million, or four hundred million a
quarter. Then, as you go on through the year, as
the nine month bills fall due, you would reduce that
down to eight hundred million, so that you'd have a
total of sixteen hundred million bills. And it would
mean not to exceed six months bills.
The other bills - you would issue them in between
tax periods, so much a week, so that you'd steady
out your market and those bills could also be not to
exceed six months bills. Now, that would give you a
shorter bill, be not to exceed six months bill in any
case. You would reduce the total outstanding bills to
a billion six. I'd hate to see them get less than a
billion six, billion and a half. That would reduce
them six hundred million. It would give you - because
of the less amount of bills, you'd get a better rate
H.M.Jr:
and because of the shorter maturity you'd get a better
rate. So that the combination of the two, it seems
to me, would tend to keep the bill rate down, and
we'd like to see that as well as you.
I don't know whether I make myself clear.
Well, the only thing is I don't see how it would even
out. What I was going to say is that, say we start
the 15th of March and begin to sell fifty million a
week. Now, if you want to hurry it up, we could sell
275
- 11 -
a hundred million a week - it doesn't make any
difference - into the 15th of June. Then, instead
of doing what you suggest, we wait until the 15th
of June, and then on the 15th of June we again begin
to sell into September. And then that would become
a regular thing. But with this thing we'd come around
to the 15th of June and we couldn't then sell into
September because September would already be filled.
Harrison:
H.M.Jr:
Harrison:
Mr. Secretary, I think that was.
It would already be filled.
As I understood, what Chairman Eccles was saying is
this: Supposing you begin in the middle of March,
instead of right now, just to make it easier for dis-
cussion. You would issue bills in two amounts, say
a hundred million a week, some of them to mature -
half of them, we'll say, to mature in the following
September.
H.M.Jr:
Yes, that's what he said.
Harrison:
And the other half mature so you will always be picking them up each week just as you're doing now; keep
that up. But always have your supplemental fifty
millions always maturing on a tax date. Now, that
would mean that you would have four hundred millions
on the two next tax dates. That would be an aggregate of eight hundred million, and you would have
fifty million a week maturing in each one of the
twelve weeks between tax dates.
Eccles:
Turnover.
Harrison:
Turnover, which would be six hundred million, so you'd
have a total of fourteen hundred million.
H.M.Jr:
I thought you meant they'd all mature the
Eccles:
No, no, half of them. This eight hundred million
would be the supplemental.
H.M.Jr:
Well, the six months would come due when? Every week?
I thought you were selling everything into the tax
date.
Eccles:
Only half into the tax date.
276
- 12 H.M.Jr:
Let's say that the six months were to come due
Eccles:
That's right, for eight hundred million.
H.M.Jr:
What's the advantage?
Eccles:
You've got six months instead of a six-nine months;
and you've only got eight hundred millions.
H.M.Jr:
What's the matter? The nine months is all right.
That would be all right, but that increases your
Harrison:
H.M.Jr:
every week.
amount, your aggregate amount, because you'd have
four more weeks.
Well, I can't see that. I thought you meant - that's
what I couldn't figure out - that you'd sell the six
months, have them all come due on the 15th of
September.
Eccles:
Oh no. You'd have eight hundred million with four of
them coming due in June and four in September. And
then in June you would extend that for six months,
making that four hundred running along, so much a
week - making that come due in December. Then in
September the four then would run coming due in
March. So you'd always have eight hundred of bills,
four hundred coming due on each period.
H.M.Jr:
I get that what you are proposing - now the only
difference is that I was proposing that we have all
of our bills come due on tax dates.
Eccles:
Well, you'd have to have some year bills or an awful
lot of them coming due on tax dates.
No, wait until June and issue nine months or wait
Bell:
until September and issue six months; come due in
March.
H.M.Jr:
Up to a total of how many bills?
You'd have four hundred million in each.
Eccles:
Sell what?
H.M.Jr:
Sell four hundred million coming due on each tax date.
Eccles:
What maturity?
Eccles:
277
- 13 H.M.Jr:
They'd average about two and a half months.
Eccles:
Having the whole billion six?
Only four hundred million.
H.M.Jr:
H.M.Jr:
Then some of them would have to be year bills.
No, they'd average about two and a half months.
Eccles:
Yes, but if you've got a billion six of bills
H.M.Jr:
I don't make myself clear. Let's say we had no bills
outstanding at all on the 16th of March. The decks
are clear; not a bill. Then we start selling three
Eccles:
Every tax date that we start selling - every tax
date we pick them up and pay them all off, and then
each tax date we start selling.
finally that you've got out, you couldn't have some
of - some of those bills would have to be longer
than the period of three months.
hundred million into June.
Eccles:
Bell:
Eccles:
And how you going to get a billion six without, -
with a three months maturity or even a six months
maturity - without having more than three hundred
or four hundred million coming due on a quarter?
Well, you don't have to have them all coming due on
a quarter. They can mature between quarters.
Well, that's right, that's what we're talking about.
You've got to.
Harrison:
Then we agree.
Eccles:
Our idea was half on the tax periods and half in
H.M.Jr:
H.M.Jr:
Well, I guess neither of us explained it very well.
I can't see what the issue is between you.
There isn't any.
Harrison:
I think that makes it all right, Mr. Secretary, if
Ransom:
between.
278
- 14 -
you have half your total bills, say, roughly speaking,
maturing on tax date periods; one quarter, we'11 say,
on the next succeeding tax date and another quarter
on the second succeeding tax date - that takes half of
your bills - the remaining half of your bills to
mature in intermedial weekly periods.
H.M.Jr:
The only difference is - to answer Ransom - they are
talking about six months and I say why not keep them
at nine months.
Harrison:
H.M.Jr:
You could do it either way.
That's the only difference.
Eccles:
If you are going to reduce bills from two billion two
to a billion six, then a six months
H.M.Jr:
I think you'll find, as you figure it out, that your
Harrison:
nine months bill proportionately doesn't cost you the
three months extra that it runs; I mean as against
the six months, if you compare the nine with the three.
Oh yes, you get your last three months for almost
nothing.
H.M.Jr:
Harrison:
Isn't that right, George?
That's right.
H.M.Jr:
I mean the extra three months doesn't cost you anything.
Harrison:
They cost you very little.
H.M.Jr:
And
you can't disregard that. There is very little
difference.
Eccles:
It would cost you more if short rate picks up a little.
Well, the first Rubicon we've got to cross is this:
Should I sit tight from now until the 15th of March
H.M.Jr:
and do nothing?
Eccles:
Do you think you can cross that unless you figure what
you are going to do after that?
H.M.Jr:
Oh yes, because we can do so many things. We could
run through until April and do nothing; we wouldn't
even have to cross it in March. If we had a bad
279
- 15 -
situation
theright.
15th, we could run until April and
still
be all
Bell:
Harrison:
H.M.Jr:
Harrison:
That's right.
I think it is important to decide the question whether
you will provide us with two or three hundred millions
of maturities in June, and once you decide that
well, I'll decide that very quickly. The answer is yes.
Then it is easier to make plans for March if you know
that, because you can put out your maturities for a
period of two months at fifty million and get two
hundred
millions - or, you'd get four hundred millions
at
that rate.
H.M.Jr:
Harrison:
Eccles:
H.M.Jr:
Eccles:
Bell:
Yes, the answer - I'm sold - I think everybody's sold
in the Treasury on the idea that we should give you
something
onabout
the 15th
any
argument
that. of June. We don't think there's
I think that's fine.
Pass up bills until after the 15th, I think, then.
What?
+ say I see no reason why you can't pass up bills,
offering
any bills, until after the 15th.
Now, does that mean on March 15 we begin to have a
hundred million dollars a week, or merely take a
nine months bill and put it into June; stop issuing
nine
billsJune?
as a refunding operation and put
a
newmonths
issue into
H.M.Jr:
Well, the way I feel today - I mean I - my mind's
entirely open - is that we stop issuing nine months
bills
June.
and for that period issue bills maturing in
Eccles:
Commencing
H.M.Jr:
The 15th of March.
Eccles:
Commence
the 15th. Well, the week after. I guess you
could
280
- 16 H.M.Jr:
Harrison:
Well, we'd announce it and a week after begin.
Wouldn't have any effect on the money market.
I think there may be one disadvantage in putting
your eight weeks' issue of bills off until March,
beginning in March, and that is this: That if you
do that, your eight weeks' serial issues of bills
will not be up until the middle of May; that takes the
two weeks after the final increase in reserve requirements. Query: whether you wouldn't, if you were going
to issue fifty millions extra for eight different
H.M.Jr:
weeks - whether you wouldn't do better to begin them
sooner and get them over by May rather than to run the
risk of being held up in May.
Another way to do it, have it a hundred million a week.
Eccles:
After March.
H.M.Jr:
And do it in four weeks.
Bell:
I don't see why you put four hundred million in June.
H.M.Jr:
We could do a hundred million a week and just get it
over with. Huh?
Harrison:
I think it is important to consider getting it over
Eccles:
H.M.Jr:
Eccles:
H.M.Jr:
Bell:
Eccles:
before the first of May.
Well, the only reason I'd say - I said four hundred
in June would be if you contemplate going to a six
months instead of a nine months bill, you'd have
four hundred million; that would be, you could go
on a basis of four hundred million each quarter, with
a six months bill. If you were going to stay nine
months, you wouldn't need to go to four hundred.
We were thinking of two hundred million.
I said four hundred million only because I understood
your new plan contemplated having four hundred millions
on tax date periods.
We expected to split the difference.
Three hundred million is ample for June.
Well, you could take - for instance, you could take
281
- 17 nine months then and take three hundred million
and make - and continue your nine month bills,
and take nine hundred million of your total,
making three hundred million come due each quarter, and then just keep that turning over, three
hundred million at each tax period, and a total
of nine hundred million. That would leave then
if you reduced the total outstanding bills to a
billion six, that would leave six hundred million
-
of bills to fill in between.
Golden.:
Mr. Secretary, when you say you are not going to
do anything until March 15, do you mean that you
would - what would you do with the bills that
mature every week, just pay them off?
You mean now? Just roll them over.
Roll them over. You'd continue that?
H.M.Jr:
Golden.:
H.M.Jr:
I just continue as is. I mean I haven't settled it.
Just continue as is until the 15th. I mean I'm not I don't know.
Piser:
If you'd continue to issue the nine month bills
and add the June bills to that, it wouldn't be
necessary to raise any additional cash in March,
would it? Or in April?
H.M.Jr:
That's the trouble, you see. That's just the thing,
that's what I'm up against. I think that it is my if I start now - I think that is Plan Three - and
take, begin to take fifty million additional now into
June, and then I should, say, on top of that take a
few hundred million, it runs up my balances to a
larger amount than necessary. The money market is
so good that it looks to me to be a very good time
to sell five hundred million of your notes or bonds
on the 15th of March - new money, I mean. And I
always go back - there have been so many times when
I
couldn't that I hate to go by a period when I can;
because there have been lots of times, and I'm not
yet convinced that the time won't come when maybe
the situation is such that I cannot, because it's
happened so often in the last three years that I
couldn't, you see.
282
- 18 Piser:
H.M.Jr:
One thing in addition that I was thinking
That's why I was leaning towards doing nothing.
Let the thing run down and then build it up by
doing the April five hundred million and possibly
five hundred million in cash, making a billion
dollar issue on the 15th of March.
Eccles:
Do you,, by doing nothing - you don't mean discontinue the turnover?
H.M.Jr:
I mean just keep everything as it is until the
Eccles:
Yes, yes.
H.M.Jr:
And then have a billion dollar financing on the 15th
Piser:
One thing I was thinking was if you merely refund
the April notes, it might be possible then to refund
all of the September notes without raising any addi-
15th.
of March. See?
tional cash at all.
H.M.Jr:
You mean in March?
Piser:
Yes.
H.M.Jr:
That's a little bit hard.
Bell:
Going back six months, you mean?
Piser:
No, no. In March to merely refund the maturing notes
and doing the same thing in September. I think you
are contemplating paying off some of the September
notes. Isn't that right?
Bell:
H.M.Jr:
No, I spoke of one plan to pay off 70 percent, the
30 percent to be used to level off the money market.
I didn't recommend that. That was just one plan we
could adopt; consider it.
To give you entirely what's in my mind, here I am
sitting time and again and I haven't been able to
get long term money when I wanted. Now, if the
thing stayed away for just another two or three
weeks, I can go out and borrow other money for five
years or seventeen, eighteen, nineteen years - I
283
- 19 -
mean very reasonable terms. And I frankly hate to
see that opportunity go by because, as I said before,
there are so many times when I couldn't. And I'm this depression isn't far enough behind me that I
feel we could forget, just say we can do anything
we want any time - I don't think that is so.
Eccles:
You are thinking of new money?
H.M.Jr:
To the extent of five hundred million dollars.
Eccles:
Yes.
H.M.Jr:
Now, I don't take so much stock in all this talk
about drouth and all that.
Bell:
And I haven't seen any particular indications that
H.M.Jr:
What?
Bell:
It's been the other way.
And the 790 million dollars which the President will
H.M.Jr:
it will
sign today will pretty well last them until the
15th of June, as far as we can see. Don't you think
so, Dan?
Bell:
I think it will.
Eccles:
Even with the flood and all?
H.M.Jr:
It's like the drouth last year. They crowded every
dollar they could into-the drouth. They spent eight
or ten billion in the papers. The best they could
credit to the drouth was 110 million dollars, but in
the papers they spent eight or ten billions. And by
the best stretch of the imagination, all they could
charge to the drouth was 110 million. Is that right?
110 or 115. Something like that.
110 or 115. And the same thing on the flood.
Ten million dollars in the flood area will go a long
Bell:
H.M.Jr:
Bell:
way.
284
- 20 Eccles:
There's going to be a point where you won't need
new money, of course, unless you refund - unless
you
reduce the bills; as, reduce the bills by bond
issues.
Bell:
That's what you would do.
Eccles:
Otherwise, if you don't reduce the bills and if you
get new money with bonds, why - you get a balanced
budget - you've just got more than you're going to
need.
H.M.Jr:
Well, frankly, I'd like to reduce outstanding bills
by around five hundred million dollars if I could.
I think it is a good time to do it. From your standpoint - your people are here, and we don't want to do
anything that is going to make your job unnecessarily
difficult.
Eccles:
Well, we've discussed it.
H.M.Jr:
I'd like you to have in mind the Treasury's idea of
reducing
bills by about five hundred
million
atthe
thisoutstanding
time.
Eccles:
Harrison:
H.M.Jr:
Harrison:
That would only put you down, see, to a billion and
three quarters. So long as you have a billion and a
half or better, as far as the money market is concerned weid be all right, don't you think, George?
Yes, I think that we won't need as many bills after
this final increase in reserve requirements, because
they have been particularly popular with the banks in
big centers as a means of meeting this increase in
reserve requirements.
Tide themselves over.
Yes. So I should think, although I'd like to check
up a little more with Burgess - but I should think
that we could better stand a reduction in total
volume of bills now than ever before.
Eccles:
Not only that, but you will get an increase in
bankers' bills too with this changed condition.
Now, of course, the amount of bills held by the banks
is a total of about three hundred million, whereas in
'29 - what was it, a billion and a half?
285
- 21 Bell:
Eccles:
Bell:
I thought they were two and a quarter, but Mr.
Harrison questioned that the other day.
well, if they increase, then you could reduce yours.
We should gradually get out of the market if bankers'
acceptances take that place.
Eccles:
H.M.Jr:
Eccles:
Piser:
Eccles:
But certainly, even at the present, for the next
year, a reduction in your bills of five hundred
million,
with that
the amount
I can't see
it wouldyou've got outstanding Well, between now and the first of July.
But I mean a billion and three quarters of bills that
would leave for the market. And personally I think
that would be a good thing, to reduce them some. It
would help your rate. To the extent that the total
volume is reduced, it is going to give you maybe a
little better rate than otherwise. And personally
I'd like to see the rate on Treasury bills kept down
and that's why I'd like to see - if shortening the
bills, shortening the maturity and reducing the
amount
see it. will tend to keep the rate down, I'd like to
There is one point in regard to that. In recent
weeks New York City banks have been selling some of
their holdings of Treasury bills; indicates that
they are anxious to get out of them.
So five hundred million would of course tend to
help
themwas
meet
the reserve requirement position if
that much
refunded.
H.M.Jr:
I was encouraged yesterday that our nine months bills
sold for less than they had the week previous. I'd
like
seeone
oneweek's
more week
- what will happen. I
don'ttothink
enough.
Harrison: No.
H.M.Jr:
What?
Harrison;
No, I think that's true.
H.M.Jr:
I'd like to see another week what would happen.
286
- 22 -
Frankly, I think for all of us in this room it
is an important decision we are going to make. I
mean it is more of a departure from our regular
financing, and I think our problems are new ones.
Eccles:
That's right.
H.M.Jr:
What I'd like to do, if it's agreeable to you - I'd
like to do nothing again for another week, and like
to impose on you people to come back again a week
from today; because we'll know Monday what the thing
is and then see. But this thing - I'm not sure
enough of myself. I don't think we'll lose anything
by doing nothing for another week. I've thrown out
some new ideas, you people have thrown out some new
ideas, and we don't want any disturbance in the money
market. I haven't - usually when I go ahead, I have
entire confidence in my own decision, and I haven't
reached that point yet.
Harrison:
Mr. Secretary, may I ask a question to help us in
thinking it over in the meantime? And this relates
to the maturity, whether they should be six months
bills or nine months bills. There are 38 weeks
approximately in nine months, and if you issue
fifty millions a week to mature each week in those
nine months, you would have outstanding about a
Harrison:
billion eight.
Billion nine fifty, to be exact.
About a billion nine fifty.
That's right.
Now, if you want to reduce the total of bills out-
H.M.Jr:
Three hundred millions.
Harrison:
Well, three hundred millions mature on each of the
Piser:
Harrison:
Piser:
standing, you've either got to reduce the maturity
of those weekly bills or the amount you'd issue
each week. I think it would be better to reduce
the maturity than to reduce the amount, because
fifty millions is a pretty good round amount. What
I say is particularly true if you also contemplate
having four hundred millions mature
237
- 23 next two tax payment dates, which is six hundred
million. So you'd always have six hundred millions
payable on tax days. Then you've got your weekly
maturities, which you would have to reduce to a
little over a billion nine if you want to reduce
your aggregate of all bills.
H.M.Jr:
Let me take it as a matter of mathematics. Supposing
somebody takes a pencil and paper - you, George (Haas).
Nine months bills, fifty millions. How much is that?
Piser:
A billion nine fifty.
H.M.Jr:
A billion nine fifty. And then every tax date we'd
Harrison:
have outstanding three hundred millions.
For two tax dates.
H.M.Jr:
No, only one.
Bell:
Well, the immediate one would be only in June.
H.M.Jr:
Well, we'd only start after the 15th of March, after
we'd paid off the others; there would only be three
hundred million outstanding, one issue.
Harrison:
Then they'd have to be ninety days.
Bell:
Depends on whether you'd issue ninety days.
You could do that.
Eccles:
H.M.Jr:
I said they'd only average two, two and a half months.
Then there'd be three hundred million on top of a
billion nine fifty.
H.M.Jr:
That's exactly where you are now. That's two billion
two fifty - is where you are now.
That doesn't do the trick.
Bell:
I don't think that's correct, is it? You're going
Haas:
Haas:
to retire three hundred millions in March - would get
you down to one billion nine fifty. Now you're going
to have the maturing issues thrown into June - two,
three hundred millions.
Well, that cuts six hundred off this.
288
- 24 Bell:
Eccles:
No, you'v still got three hundred million.
got
But you've/to have fifty millions - it takes fifty
million a week to make the billion nine fifty. Then
if you add three to that to get the June maturity,
that puts you just exactly where you are.
H.M.Jr:
Haas:
H.M.Jr:
Let me just get that. That would bring it to...
Two billion two fifty.
Two billion two fifty.
All right, now let's do it on a six months basis.
Now, that
Piser:
That
would be a billion three plus three hundred
million.
Harrison:
That's the reason I'm suggesting six months; that
makes an orderly operation and you reduce your
aggregate.
Eccles:
Yes, and you reduce your bills.
H.M.Jr:
Iitwant
over.to think that over and you people want to think
Harrison:
Yes, I want to think it over very much.
H.M.Jr:
Won't Burgess be back by next week?
Harrison:
He'll be back Monday morning.
H.M.Jr:
Wayne, did you want to think this over?
Yes, I've got
Taking all these things, taking the
approach to the balanced budget, which - we can call
it an approach - I think we can establish what you
Taylor:
can call theoretical pars. You start with your bal-
ances; you've got your leeway, above and below which
you don't want to go; and you also have your theoretical
par of your bills, meaning the total amount, which you
will say now is two billion two. Now, to me it doesn't
make so much difference when those mature. You've got
a certain volume of bills in the market; you desire
to have enough of those bills mature on your tax
289
- 25 -
dates. But you are not - there is a theoretical
par for your total volume of bills that is going
to be outstanding, and what you might call your
financial tatement, if you want to call it that.
And then you'd go from there to your other three
elements. There are really four. One is your
notes; then your Savings Bonds, your long term
bonds, and your special operations. I think we've
got to be thinking in terms of theoretical pars for
all those things right about this time, and it is
one of the first times that we have been in a
position
to it.
do that, or that it may have been desirable
to do
Bell:
Taylor:
Bell:
Taylor:
In other words, what we are considering now settles
the problem for this calendar year.
The pattern as far as you can see.
It doesn't settle it for next March, because your
income tax payments next year - from now on - will
be huge, and three hundred million, five hundred
million of bills will not take up the excess.
Well, I'm talking in terms of theoretical pars for
the situation that you have at the present time.
I think there is something in the amount of your
balances that you want to carry plus or minus;
certainly the amount of bills in your total debt
structure which is both good for the Treasury and
the market, which can go up or down; there is a
certain amount of leeway. And then these other
problems come in.
Dan's doing it from another standpoint - more or
less what I was doing; I. don't figure quite the
same way that he does.
Eccles:
Of course, you've got two factors which we haven't
had before, which do, as you say - we are in a
period of transition for the first time, with a
prospective budget balance and looking forward to
some surplus revenue in a period of a year, and
with the excess reserve picture changed again to
where - for a time the cushion of excess reserves
was such that the tax period never had to be considered at all. So we do have, as you say, these
290
- 26 -
two factors, and it is going to - we should give
this thing a good deal of thought and study, try
to anticipate every aspect of it so we won'
H.M.Jr:
Well, as far as we're concerned, I don't see any
reason why we can't let this go for another week.
How do you gentlemen feel?
Broderick: Very wise.
Ransom:
Eccles:
Feel the same way.
Joe and Ronald here didn't have an opportunity to
get any part of this picture. Ronald had a meeting
and
I didn't get in touch with Joe until
H.M.Jr:
But you've got it now?
Ransom:
Yes.
H.M.Jr:
And you can have at least one more meeting between
now and Tuesday.
Ransom:
H.M.Jr:
I think there's no possible disadvantage in letting
it go for a week and discussing it again.
I think it is a very important decision for both
organizations. I really do. If we went from nine
to six, then there would be a period there of three
months where we just wouldn't issue any nine months
at all and have to wait until
Piser:
What you could do during that period is to issue the
bill to mature around June 15.
H.M.Jr:
Well, we would, and then I think we ought to issue
them in lots of a hundred million a week in order to
hurry it up, you see, and get it out of the way
before the first of May. I'm just throwing that out.
Right after the 15th, for three weeks we could issue
a hundred million a week. And the nine months - we'd
let them die, so to speak, for three months, wouldn't
we?
Piser:
For three weeks.
H.M.Jr:
For three months.
291
- 27 Piser:
I see what you mean.
H.M.Jr:
Then about the 15th of June we'd pick them up and
begin to issue six months and at that time, if we
want to, we could begin ahead of the 15th of June
to sell three hundred millions into the 15th of
September. We wouldn't have to wait until the
15th of June, huh? Is that right?
Piser:
Yes.
H.M.Jr:
And
also we won't have this date like May first
facing us.
Bell:
If you issue three hundred million into June, you'll
get it over by the 21st - April 21.
Eccles:
When? April 21?
Bell:
Yes, selling three hundred million into June and
Eccles:
Harrison:
Bell:
H.M.Jr:
fifty million a week.
Yes, April. Before May first.
Mr. Secretary, may I ask Mr. Bell a question? The
last tenders on your bill issue of Monday totaled
around 148 millions of dollars only. The lowest
priced bid was 6.9 yield. Now, if you're going to
have your regular issue at fifty millions a week
and then try to add another hundred million a week,
aren't you apt to run into a snag on your bids?
I didn't understand that was the Secretary!
No, when we start selling these other things, we're
going to cut out the nine months for three months.
Harrison:
I see.
H.M.Jr:
For three months we won't issue
Eccles:
That's the way you'll reduce the total bills.
H.M.Jr:
For three months we won't issue any.
I see.
Harrison:
292
- 28 H.M.Jr:
But we will only for three weeks or six weeks be
selling fifty million or a hundred million of bills
into the 15th of June.
Harrison:
But I was just raising the question of whether even
a hundred million a week, three hundred millions
altogether, prior to May first, might not be
Bell:
Probably raise your average rate.
H.M.Jr:
At
the
end- there,
we'dthat.
be selling two months sixty
day
stuff
less than
Bell:
Wouldn't raise the present rate, but it might raise
the rate for the three months' period.
And then we stop. We don't do it again for three
H.M.Jr:
months and the thing will die down again.
Harrison:
H.M.Jr:
I'm just thinking that fifty millions a week is the
better procedure if you've got the time to do it.
Well, we can start about the first of March.
Bell:
Of course, it wouldn't hurt to issue these bills,
roll over, allowing them to mature in June, beginning
the third
of March.
date;
doesn't
hurt. You ride through the financing
H.M.Jr:
And stop the nine months at the same time.
Harrison:
I think that's better.
Bell:
That will clean you up by the 14th of April.
Then fifty, instead of a hundred after the 15th.
No, fifty beginning the third.
Instead of a hundred after the 15th, start fifty
Eccles:
Bell:
Eccles:
before the 15th.
Bell:
Eccles:
That's right.
But you want - we ought to study this thing with an
idea of reducing the bills from two billion two hundred
fifty down to somewhere around a billion and a half to
293
- 29 -
H.M.Jr:
a billion and three quarters.
That's right.
Eccles:
Then it's a question of working out
Taylor:
If that is a good thing to do. If that is a good
financial structure for the Treasury to have - borrowing structure - is it also a good structure for
H.M.Jr:
What I want Haas to do - I want him to study this
Harrison:
thing for a week with his people; he'll have a
memorandum. Bell will study it, and let your people
study it; and I think the Federal Reserve crowd in
New York ought to study it and then come back again
in another week and talk this thing over again.
would there be any objection to having a copy of Mr.
Bell's memorandum that sets forth the five possible
procedures?
H.M.Jr:
What do you (Bell) think?
Bell:
I don't care. There's a lot of stuff in there that
is strictly confidential. I don't have any objection
if you don't.
Harrison:
If there is any question about it, I'd rather not
have it.
Bell:
It ought to be dressed up a little. There are two
or three holes in it.
H.M.Jr:
Well, do you have any
Bell:
Only as to balances, the statements of financial
requirements; they never go any farther than you.
Harrison:
Just leave it this way: If you've got anything you
can give us.
H.M.Jr:
Let him give a statement and we'll give a copy to
the boys.
Harrison:
I wouldn't want to have anything highly confidential
that might get out. What I would like to have is the
substance of the five programs.
294
- 30 H.M.Jr:
Let him prepare a special statement.
Eccles:
In other words, it would help us to consider the
same alternatives that you are.
H.M.Jr:
Bell will prepare a memorandum for the boys - for
Harrison:
Fine.
Bell:
You want those different methods that could be used
to level off the money market in the tax payment
our fiscal agents. How's that?
period.
Eccles:
I think that's very important.
Harrison:
Our three are the only ones that are any good.
H.M.Jr:
Anybody got anything else?
Eccles:
I think we better get all of them.
Bell:
That all depends. That Number One is pretty good
if the market is below par. Sinking fund is very
important.
Harrison:
Yes.
H.M.Jr:
Well, is one o'clock next Tuesday all right?
Eccles:
It's all right with me.
H.M.Jr:
All right with you men (Broderick and Ransom)?
Broderick:
Yes.
Ransom:
Yes.
H.M.Jr:
It gives us the advantage that we get the rates of
bills the day before.
I think the most important thing is to give us a
chance during that period to discuss it - that is,
the Board - and whoever is here from the Board will
Ransom:
have the Board's thought on the subject.
H.M.Jr:
Would you rather have it Wednesday?
295
- 31 Eccles:
well, Wednesday is a little better. Tuesday is
our regular meeting day.
H.M.Jr:
Well, Wednesday at eleven o'clock.
Ransom:
There is a possibility that I might be out of town,
but that doesn't matter because we would have discussed it thoroughly among ourselves.
H.M.Jr:
Let's say that it goes on my calendar for next
Wednesday at eleven. All right, gentlemen.
298
General
Receipts:-
Special
Regular
Emergency
TOTAL
TOTAL
TOTAL
Expenditures: -
Treasury Notes
February 8, 1937
Gold purchases
Treasury Notes
General revenue
Treasury Bills:-
Interest on debt
Redemption of debt
U. S. Savings Bonds
Refunding operations:-
Special transactions
Treasury Bills (extra)
Balances at end of periods
Balances at beginning of periods
-
200
769
580
30
15
-
200
40
15
200
280
1,349
100
50
275
924
FEBRUARY
300
250
1,149
1,035
50
15
-
550
325
155
200
290
2,184
200
40
1,175
769
MARCH
502
200
1,304
675
50
15
20
80
200
310
1,979
500
-
702
40
290
1,149
APRIL
February - June, 1937
ESTIMATE OF CASH POSITION
1,039
250
934
1,045
934
3,940
605
50
15
20
10
190
320
1,644
-
50
15
320
150
180
330
1,979
230
75
725
410
2,202
-
550
300
502
600
1,100
970
1,530
4,874
500
40
300
1,304
40
900
1,039
210
2,940
924
-
-
200
-
200
MAY
300
JUNE
TOTAL
(In millions of dollars)
297
Tuesday
February 9, 1937
12:33 p. m.
Representative
Jennings
Randolph: Well, I've had a little flu - it sort of slowed me
down a little.
HMJr:
Well, I'm sorry.
R:
But I'll be all right. I trust that you are fine.
HMJr:
Yes, thank you.
R:
HMJr:
Secretary, I want you to just tell me if there is
any chance of a certain gentleman that I am interested
in being considered for the Register of the Treasury is that position already in your mind filled?
Well, it isn't in mine but it is in Mr. Farley's.
(Laughs)
R:
Well, I didn't know who made it, I'm very frank to
say.
HMJr:
Yes, well I am being frank.
Yes, I want you to.
Mr. Farley has got somebody that he's been trying to
R:
Yes
HMJr:
And he's very anxious that we take this man.
R:
Oh, I see.
HMJr:
R:
HMJr:
get a job for three and a half years.
As a matter of fact he talked to me when I was in
Farm Credit and he's been trying ever since to get
a job.
R:
(Laughs) I see.
HMJr:
But -
R:
Well, for thirty-five years, twenty years spent in
Loans and Currency
HMJr:
Yes
R:
- Mr. McCaffrey
-
298
-2HMJr:
R:
Yes
- of my State - District And I'm really just
trying to get the picture; I don't want to
I believe in being frank and I think it's - you
people appreciate that.
-
HMJr:
R:
Yes, always - well, this man does.
HMJr:
And
R:
He wouldn't want us to waste time of getting a lot
of stuff in and worrying you, you see?
HMJr:
Yes, I - I think that - that if we do fill it
that this man that Mr. Farley has suggested -
I mean, he owes him a debt from a campaign of four
years ago.
R:
I know.
HMJr:
And has never been able to fill it.
R:
Yes
HMJr:
And he's been looking all around and now he says that
R:
Yes
HMJr:
that this vacancy - he's very anxious that we give
this man this position.
And I think - I mean when - I like to do what I can
for the organization
-
R:
Always - always
HMJr:
It's so rare that we can do it.
R:
I know that.
HMJr:
R:
And this seems one time that we ought to cheerfully
go along with Mr. Farley.
Well now, Secretary, I appreciate so much your just
telling me that, because I don't want to worry you
and I don't want to get
-
HMJr:
No
299
-3-
- endorsements coming in. And I don't want to build
HMJr:
up any hopes of this man and he doesn't want that.
Well, I'm giving you the absolute low-down.
R:
Well now, I certainly appreciate it too. And, now,
take care of yourself. And I'll be seeing you.
HMJr:
Thank you very much.
R:
Goodbye.
300
Tuesday
February 9, 1937
12:45 p.m.
HMJr:
Hello
Treas.
Operator:
Chairman Miller - go ahead.
HMJr:
Hello
Miller:
Hello, Mr. Morgenthau
HMJr:
Say, Mr. Miller -
M:
Yes
HMJr:
That boy has been here for about an hour -
M:
Yes
HMJr:
Did you talk to him? - Yourself?
M:
Oh yes, I just saw him and gave him a letter Well, he seems like a half wit to me.
HMJr:
M:
Oh, he does?
HMJr:
Well, I mean, he insists that he gave it to the
Comptroller General.
M:
Comptroller General?
HMJr:
That's what he says.
M:
Why he told me he gave it to a colored fellow at
your
HMJr:
No, we've had him - I've had my secretary take
him up and down - he's been to the fourth floor
and the second floor - I think what he means is
the Comptroller General down at the other end of
the hall.
M:
Yes
HMJr:
See?
M:
Yes
HMJr:
Yes, I think he must have given it to somebody, just
some messenger of the Comptroller General. But, I mean,
C
301
-2-
the Comptroller of the Currency. But he insists he
gave it to the Comptroller General.
M:
Well (laughs)
HMJr:
And most likely he gave it to somebody in the building
and somehow or other it got to the White House. But
M:
he did not give it into my office.
Well -
HMJr:
But
he insisted that he gave it to the Comptroller
General.
M:
Well, that's peculiar, he told me he gave it to a
colored fellow in your office.
HMJr:
No, we've had him all over the building and he can't
identify anybody.
M:
I never saw him until today.
HMJr:
well, let's let the matter drop.
M:
Yes
- Well, it's perfectly all right with me, - it
was embarrassing to you I was afraid.
HMJr:
Well, no, it wasn't embarras- - as I understand it,
your people over there wondered how it got to the
White House.
M:
Yes
HMJr:
I don't know how it got there, but the messenger
he keeps saying, "I gave it to the Comptroller
-
General."
M:
Well that's the most peculiar thing.
H.M.Jr:
Yes - well, I guess it'11 have to be among the un-
M:
(Laughs) Well, it's all right with me, Mr. Morgenthau.
Well, I'm not going to worry. It's not important enough.
No, I think it's all over with now, as far as that goes.
But, the boy doesn't seem quite all there to me.
HMJr:
M:
HMJr:
solved mysteries of Washington.
302
-3M:
Well, I don't know. I only saw him for the moment.
I'll find out more about him out of my own personal
curiosity.
HMJr:
O.K.
M:
Well, I'm sorry it all happened and I reckon it's
the best thing just to let it go.
HMJr:
Thank you.
M:
Are we going on with any more talk in regard to that - ?
HMJr:
What's that?
M:
Are we - are our experts going on with any more talk - ?
HMJr:
Well, I don't know, I haven't - it's in Magill's
hands and I haven't talked to him recently.
M:
Well,
it's left so that if he wants any more he's to
let us know.
H.M.Jr:
All right.
M:
So anything he says then is all right with us.
HMJr:
Thank you.
M:
All right, thank you, Mr. Morgenthau.
303
February 9th
Lunched with the President. I showed him the attached
memorandum on military expenditures. (See attachment No. 1)
He was tremendously interested. He gave me the opportunity
to show it to him when he said, "How is the foreign situation.
How do you feel about it?" I said, "I feel extremely blue and
feel that the world is just drifting rapidly towards war". I
said, "We patch up the French situation every so often but
with the constant increased percentage of their budget going for
war purposes we really cannot help them. The European countries
are gradually going bankrupt through preparing for war". I said,
"You are the only person who can stop it". He said, with a smile
on his face, "I feel like throwing either a cup and saucer at
you or the coffee pot". I replied, "Or throw both but why?'
He said, "Well I had Hull, Norman Davis for lunch and Davis said,
*The only person who can save the situation is Roosevelt' and
then I said to Davis "How"? and Davis said, by sending a secret
envoy to Europe'. The President said, "Another Colonel House".
The President said, "Hull philosopy is that through his
trade treaties he would increase world trade and take up the
slack of unemployment as the individual countries gradually
disarmned. I said, "I am not in disagreement with Hull but
his policies will take five years to feel the full effect. He
may only have five months before we have a world war and if we
do and it lasts two or three years you can be sure we will be
drawn into it".
I said, "Would you have any objection to my sending a
secret confidential message by word of mouth through Bewley,
who is returning to England, to "eville Chamberlain asking
him if he has any suggestions to make as to how we can keep
the world from going financially broke due to constant increased
cost of armaments?" The President thought a moment and said,
"No, that will be all right" and I said, "Are you sure" and he
said, "Yes, I am sure. I said, "You know my idea is that if
there are any negotiations to be conducted it is to do them
here and not send anybody abroad". He said, "That is right".
Then he told me the following amazing story in utmost
confidence. Be said, "Sometime ago Senator Bob LaFollette asked
him how he would feel if the Under-Secretary for Foreign Affairs
of England, the name sounded like DeSitter, should come to
America ostensibly for a vacation. The President said he would
have no objection provided it was strictly unofficial. He said
he knew Mrs. DeSitter; that she was an old friend and a peach
-2- -
304
but that Desitter was here in 1933 with MacDonald and he was
very hard-boiled. LaFollette assured him that DeSitter
was pro-United States.
This morning LaFollette called up the President/and
told him that DeSitter was coming. The President and I both
agreed that it was amusing that DeSitter should arrange this
visit through LaFollette. "either of us could understand it.
I then asked the President whether he would give me
a memorandum to the War Department so that I could get some
inside dope on costs or armaments. He unhesitatingly gave it
to me. (See attachment No. 2). I am tremendously encouraged
as I think I have made a real start.
During the beginning of the conversation I said to
the President, "You know whenever you are through here I am
through and wild horses could not keep me in Washington one
day longer after you have gone" and he said, "Of course that
is right". I wanted to plant the seed in his mind that I was
his man and had no interest in who might succeed him. I
expect to do this again some months from now.
I told him about the Self Help Project in Richmond
and pointed out to him that through Resettlement we assisted
farm families in getting a new start in life; that city
families we do nothing of this kind for; that the project in
Richmond has been for the past three years really putting
people back on their feet on a permanent basis; that I wanted
to start a project in Washington. Much to my surprise he was
enthusiastic. He said that I should form a committee including
someone from Hopkins' organization, Resettlement and CCC to
advise the group here in Washington. I told him that I had
seen his wife and hoped to have her go with me to Richmond to
look over the project.
I have been trying to do this for a year and a half.
I think it is tremendously important that we get away from
this monthly wage we are paying the unemployed and begin to
resettle the city families in permanent jobs just the way we
are trying to resettle the country families, and find some way
out of our present unemployment problem." Again much to my
surprise he gave me permission, subject to Hopkins' O.K. to
release once a month the total figures of everybody who gets
a government check.
A month ago he would not let me show these figures
to anybody. To-day he is willing to have them made public.
I certainly had a most interesting and constructive lunch and
if I can be helpful in doing something to get the world to disarm I will die happy.
305
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE
TO
January 29, 1937
Secretary Morgenthau
FROM
Mr. Haas On
Subject: Percentage of military expenditures to total expenditures
of leading countries.
The information on the volume of military expenditures of leading
countries was taken from published reports of these countries. The
published data for some countries are probably not too reliable, but
it may be presumed that if the data err, the errors will be understatements. Data on military expenditures in Germany were not included
in the memorandum, since published statements obviously do not reflect
the actual expenditures.
The military expenditures of the 15 leading countries listed in
the attached table for the fiscal year 1935-1936, or for the calendar
year 1936, total to, roughly, $5 billions, when the foreign currencies
are converted into dollars at the average rate of exchange for the
period covered. The totals cannot be relied upon too heavily since (a)
Germany is excluded, as well as other countries, (b) military expendi-
tures reported by some countries are understated, and (c) converting
foreign currencies into dollars in a period of fluctuating exchanges
and under conditions of controlled exchanges does not accurately re-
flect the true significance of the volume of military expenditures.
The average of the ratios of military expenditures to total ex-
penditures, for the 15 countries, was approximately 20 percent for
the calendar year 1936, or the fiscal year 1935-1936.
A search through the confidential files of the State Department
might reveal evidence of larger expenditures than those indicated in
the official published reports, but it is doubtful if such an investi-
gation will produce more than rough estimates of the scale of military
expenditures.
306
Percentage of military expenditures to total expenditures
of leading countries
As reported in the budgets and budget estimates of the respective countries.
Military expenditures do not include pensions to war veterans.
Percent of
Military
expenditures : total expenditures
:
:
:
Total expenditures
:
:
(In millions of dollars)
United States
1932-1933
1933-1934
1934-1935
1935-1936
5,143
7,105
7,376
710
3,880
912
10
1936-1937 1/
8,481
966
11
12
778
797
114
14
842
137
16
894
158
18
859
1936-1937 1
1935 1
1936 1
41,097
50,487
50,163
47,817
46,572
1935-1936 1/
1936-1937 1/
9,963
11,445
10,544
10,006
12,000
24
23
21
21
26
(In millions of yen)
Japan
1932-1933
1933-1934
1934-1935
14
(In millions of francs)
France 2/
1934
8
10
103
108
1932-1933
1933-1934
1934-1935
1935-1936
1933
540
13
(In millions of pounds)
United Kingdom
1932
659
1,950
2,255
2,163
2,215
2,306
686
35
773
34
942
44
1,023
1,060
46
46
(In millions of yuan)
China
46
1932-1933
1933-1934
1934-1935
699
321
836
373
45
941
388
41
957
321
34
1935-1936 1/
1936-1937 1/
322
32
991
(In millions of lire)
Italy 3/
1932-1933
1933-1934
1934-1935
1935-1936 1/
1936-1937 1/
23,003
28,344
22,082
21,749
20,291
5.393
4,787
5,227
5,092
5,016
23
17
24
23
25
307
Percentage of military expenditures to total expenditures
of leading countries
As reported in the budgets and budget estimates of the respective countries.
Military expenditures do not include pensions to war veterans.
(continued - 2)
:
:
1933 1/
1934 1/
1935 1/
1936 1/
30,283
35,667
46,948
63,900
78,715
451
1935
1936
1937 1
2,019
2,401
5,000
6,500
14,816
7
7
11
10
19
17
4
532
14
458
14
478
14
3
533
17
3
3
3
(In millions of francs)
Belgium
1933
1934
Percent of
(In millions of dollars)
Canada
1931-1932
1932-1933
1933-1934
1934-1935
1935-1936
Military :
:expenditures : total expenditures
(In millions of rubles)
U. S. S. R.
1932
:
Total expenditures
11,190
11,392
14,024
10,465
10,566
1,156
1,260
10
11
1,140
8
893
886
9
8
(In millions of guilders)
Netherlands
1932
1933
1,079
1,025
93
1934
761
88
12
767
88
11
799
85
11
1935 1/
1936 1/
9
88
9
(In millions of francs)
Switzerland
1932
1933
1934
1935
444
94
21
482
91
19
480
91
19
504
95
19
1936 1/
497
97
(In millions of zlotys)
Poland
1932-1933
1933-1934
1934-1935
1935-1936
1936-1937 1/
20
2,245
2,287
2,209
2,221
2,221
761
34
762
33
762
34
762
34
760
34
308
Percentage of military expenditures to total expenditures
of leading countries
As reported in the budgets and budget estimates of the respective countries.
Military expenditures do not include pensions to war veterans.
(continued - 3)
:
1933
1934 1
1935 1
1936 1
10,258
9,588
7,631
7,983
8,032
1933
1934
1935
1936 1/
1,920
2,013
2,058
2,043
1,939
1935-1936 1/
1936-1937 1
16
16
16
17
4
81
4
86
105
5
and
122
6
126
6
(In millions of lei)
Rumania 4/
1932-1933
1933-1934
1934-1935
16
1,604
1,522
1,227
1,280
1,340
(In millions of schillings)
Austria
1932
expenditures :total expenditures
(In millions of krone)
Czechoslovakia
1932
:
Total expenditures
Percent of
Military :
24,128
23,137
20,451
20,687
21,892
17
4,089
5,975
5,294
4,764
4,912
Treasury Department, Division of Research and Statistics.
26
26
23
22
January 28, 1937.
Budget estimates.
In October 1931 the financial year was changed to the calendar year so that
2
the 1932 budget includes only nine months to December 31, 1932.
3
4
Additional extraordinary expenditures on operations in East Africa authorized
in the fiscal year ended June 30, 1936, 9,100 million lire. In June 1936 an
additional 1,300 million lire was appropriated for the same purpose.
On November 20, 1932, the Cabinet postponed the beginning of the next fiscal
year from January 1 to April 1, 1933, and the 1932 budget was extended for
the intervening three months.
Source: Consular reports and financial publications received from the respective
countries.
THE WHITE HOUSE
WASHINGTON
469 S7 11
Confidential
Be. We
Dru, Hany
Mill you please dair
62 u W Polley hrdp Haas
or Will of The /11a1hmy D
part 7wer Figure: of cost
up forsign armaminT - not
d.Tail of mk Tanl dm Th
dollars involved
AN
310
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE February 10, 1937
TO
Mrs. Klotz
FROM
Miss Lonigan
Attached are ribbon copies of tables which the Secretary requested.
311
GOVERNSON EMERGENCY PROGRAMS
EXPENDITURE FROM FEDERAL FUNDS ONLY
RELITY AND WELFARE
46,000
35,696,000
61,068,000
136,955,000
4,502,000
5,958,000
5,349,000
120,079,000
124,478,000
167,266,000
50,000
43,000
156,000
1,509,000
2,065,000
4,914,000
5,137,000
5,169,000
4,862,000
178,320,000
166,924,000
194,630,000
180,000
275,000
232,000
6,729,000
11,611,000
18,387,000
4,416,000
210,000
177,000
159,000
24,222,000
12,969,000
8,730,000
503,000
563,000
644,000
91,000
1,935,000
2,561,000
4,824,000
809,000
3,725,000
3,474,000
2,609,000
85,284,000
63,410,000
2,484,000
30,311,000
2,740,000
January
2,210,000
2,130,000
1,985,000
2,927,000
3,039,000
167,920,000
February
10,400,000
4,600,000
3,100,000
2,877,000
191,530,000
1,830,000
1,660,000
1,550,000
3,100,000
2,400,000
1,700,000
2,586,000
2,340,000
2,256,000
182,570,000
173,702,000
169,104,000
4,000,000
3,806,000
185,670,000
176,102,000
170,804,000
1,470,000
936,000
940,000
285,000
2,248,000
2,371,000
2,477,000
162,870,000
157,422,000
165,039,000
3,716,000
3,821,000
3,878,000
163,806,000
158,363,000
165,324,000
228,000
157,000
170,000
2,575,000
180,897,000
2,476,000
167,785,000
185,466,000
3,955,000
3,848,000
3,548,000
181,125,000
167,942,000
185,636,000
November
December
1936
March
April
Vay
June
July
August
1,450,000
1,401,000
September
1,380,000
1,370,000
October
November
December
1,360,000
2,188,000
164,324,000
180,000
96,000
100,000
5,444,000
3,454,000
3,000,000°
142,000
115,000
110,000°
-
October
4,560,000
6,000,000
5,505,000
122,466,000
126,543,000
172,180,000
5,316,000
5,624,000
5,418,000
185,049,000
182,720,000
215,520,000
3,818,000
4,338,000
4,385,000
5,129,000
4,740,000
4,609,000
213,710,000
193,410,000
183,919,000
6,773,000
8,804,000
9,220,000
4,619,000
172,513,000
169,727,000
179,376,000
10,295,000
5,204,000
5,135,000
-
3,925,000
-
I
September
$123,779,000
118,589,000
107,065,000
324,000
962,000
979,000
1,100,000
1,171,000
1,220,000
$2,176,000
2,504,000
-
51,000
Incust
4,461,000
4,545,000
4,427,000
-
$13,000
1,071,000
877,000
-
777,000
$123,766,000
117,518,000
106,188,000
1.000
5,813,000
16,960,000
4,459,000
4,495,000
4,381,000
$162,000
Expenditures
-
70,000
253,000
456,000
4,389,000
4,242,000
July
Families
-
$123,604,000
111,705,000
89,228,000
Expenditures
Expenditures
Member of
Expenditures
Families
Expenditures
Total Relief and Welfare
Social Security Granta**
Number of
Families
-
1935
Number of
Families
-
Workers
Expenditures
Member of
-
Families
Resettlement Loans and Grants
PERA-HPA
WPA
Number of
-
FERA-
Number of
11,023,000
11,539,000
4,879,000
4,964,000
4,878,000
Sources: WPA Checks Issued - Treasury Department
Emergency Employment and Pay Rolls U. S. Pureau of Labor Statistics
All Others - Direct from the agency
State
funds
The under FERA includes all families on relief rolls under both Federal and before 1936.
number
of families
reported
Funds
are Federal
funds
only. It is not possible to separate families dependent on Federal funds only
Excluding administrative crants
...
Estimated for January 1, 1936, and all later menths
. Estimated
February 9. 1937.
196,864,000
182,419,000
200,177,000
312
GOVERNERT INVEIGENCY PROGRAMS
EXPENDINGS FROM FEDERAL FUNDS ONLY
GRAND TOTALS
EMERGENCY EMPLOYMENT EXCLUDING YPA
Works Program.
PMA 1935 Act
COC
Number of
Workers
Other Federal Projects
Number of
Pay Rolls
Workers
Number of
Workers
Pay Holls
PWA 1933 Act
Number of
Pay Holls
Workers
Regular Governmental
Construction
RFC
Number of
Total
Emergency Employment
Pay Holls
Workers
Pay Hells
or Vorkers
$50,208,000
55,089,000
5,387,000
5,609,000
5,437,000
57,912,000
56,941,000
Pay Rolls
Borkers
$24,969,000
25,293,000
22,772,000
10.000
9,000
$1,002,000
1,020,000
26,000
$1,890,000
927,000
36,000
958,000
46,000
1,063,000
1,010,000
56,460,000
9,000
2,695,000
3,200,000
21,638,000
19,368,000
16,026,000
9.000
10,000
8,000
953,000
59,000
1,001,000
64,000
869,000
57,000
4,193,000
4.077.000
3,708,000
1,057,000
1,057,000
1,020,000
44,000
3,991,000
3,619,000
48,000
Grand Total**
Including
Agricultural
Families
Number of
Number of
Workers
Pay Holls
Total York and Welfare*
Fumber of
Funds
Funds
1935
481,000
590,000
534.000
$22,071,000
26,236,000
551,000
544,000
24,831,000
23,958,000
1,000
November
December
507,000
21,906,000
7,000
479.000
454.000
356,000
21,427,000
21,000
20,404,000
35,000
1,579,000
17,252,000
61,000
2,864,000
405,000
395,000
24,405,000
$54,000
145,000
332,000
129,000
168,000
217,000
6,243,000
8,392,000
10,196,000
268,000
974,000
249,000
299,000
326,000
11,180,000
12,529,000
14,432,000
177,000
141,000
142,000
13,425,000
10,642,000
8,000
11,117,000
8,000
850,000
905,000
915,000
12,819,000
10,000
1,134,000
60.000
3,000
-
October
$277,000
1,216,000
3,755,000
-
September
5.000
33,000
77,000
-
August
-
July
345.000
307,000
224,000
February
March
April
May
June
391,000
408,000
383,000
404,000
July
August
September
October
Foreaber
December
Source:
384,000
321,000
404,000
391,000
377,000
3,000
47,000
221,989,000
5,616,000
7,057,000
180,400,000
183,454,000
246,198,000
245,984,000
53,039,000
6,525,000
225,219,000
287,756,000
3,675,000
980,000
961,000
940,000
51,847,000
49,759,000
50,256,000
6,296,000
6,605,000
6,357,000
236,896,000
232,469,000
265,776,000
240,534,000
238,100,000
290,024,000
5,205,000
6,243,000
8,631,000
1,101,000
1,215,000
1,297,000
59,877,000
67,567,000
76,019,000
6,231,000
5,955,000
5,906,000
273.587,000
260,977,000
312,521,000
314,559,000
306,102,000
80,575,000
80,605,000
77,462,000
5,958,000
6,214,000
79,005,000
74,569,000
69,290,000
6,517,000
6,359,000
6,068,000
108,000
144.000
169,000
6,097,000
8,743,000
10,866,000
376,000
401,000
453,000
16,564,000
19,161,000
22,658,000
157,000
11,000
962,000
180,000
13,843,000
14,975,000
80,000
9,000
942,000
102,000
11,727,000
12,386,000
12,122,000
452,000
452,000
440,000
22,700,000
22,795,000
22,585,000
167,000
159,000
147,000
14,242,000
13,530,000
12,639,000
10,000
10,000
1,064,000
1,048,000
1,085,000
126,000
147,000
145,000
12,425,000
13,000,000
16,371,000
181,000
184,000
176,000
12,659,000
1,339,000
1,334,000
1,239,000
17,663,000
18,572,000
18,112,000
160,000
152,000
139,000
11,351,000
10,717,000
438,000
405,000
371,000
21,786,000
20,074,000
18,595,000
138,000
12,206,000
10,138,000
8,935,000
9,000
10,000
10,000
1,000,000
1,108,000
1,202,000
165,000
150,000
148,000
15,000,000
13,960,000
12,805,000
1,313,000
1,225,000
1,149,000
18,058,000
18,610,000
17.948.000
18,418,000
17,846,000
9,638,000
172,000
117,000
104,000
9,000
$204,865,000
175,048,000
162,155,000
1936
January
$173,987,000
6,203,000
NPA Checks Issued Treasury Department
Emergency Employment and Pay Rolls U. S. Bureau of Labor Statistics
All Others Direct from the agency
*Total Work and Welfare includes FERA-WFA. Resettlement, Social Security, Emergency Employment Programs
and Regular Governmental Construction
Figures for Emergency Employment exclude overhead. Totals are. therefore an understatement of all
Federal emergency expenditures
February 9. 1937
259,938,000
253,089,000
250,332,000
256,837,000
275,869,000
46,987,000
269,467,000
225,920,000
271,261,000
262,524,000
265,653,000
298,510,000
277,801,000
303.879.000
3/3
EXPENDITURES FROM STATE AND LOCAL FUNDS
State and Local Funds
Relief
Social
WPA
Total
Security
1935
-
35,241,000
31,800,000
39,641,000
-
-
-
October
November
December
$36,942,000
36,092,000
31,870,000
-
August
September
-
July
$36,942,000
36,092,000
31,870,000
35,241,000
31,800,000
39,641,000
1936
March
April
May
June
July
August
September
October
November
December
49,200,000*
51,400,000
49,800,000
-
January
February
49,200,000
$2,373,000
53,773,000
2,716,000
52,516,000
44,700,000
39,400,000
38,100,000
4,088,000
4,631,000
6,001,000
48.788,000
44,031,000
44,101,000
35,800,000
34,600,000
34,720,000
7.333.000
9,426,000
10,064,000
43,133,000
44,026,000
44,784,000
34,400,000
34,100,000
33,700,000
11,223,000
12,002,000
12,583,000
45,623,000
46,102,000
46,263,000
*Estimated for January 1936. and all later months.
1/Estimates can be computed. Material now available.
1
ERA
PWA
1
Grand
Total
314
UNEMPLOYMENT IN THE DISTRICT OF COLUMBIA
There are about 3,000 families in the District with employable
workers who are neither on relief nor on WPA. This was Mr. Street's
estimate. There are no facts,
There are about 3,000 families on direct relief, some of whom
would be eligible for certain types of self-help projects.
The WPA is taking care of about 11,000 - 12,000 workers in the
District. These workers would not be able to give time to a selfhelp cooperative, but some of them are being laid off.
Altogether there are about four thousand eligible families from
whom it should be possible to get 500 working members for a selfhelp cooperative.
There is one extremely fortunate circumstance in the search for
technical leaders for projects. The WPA in the District is at present
laying off about 200 workers on its administrative staff. (This
statement was given in confidence.) Most of these men are trained
and competent supervisors of unskilled or semi-skilled workers. Some
of them have been with District work-relief programs since 1930. They
would form an excellent pool of project managers from which a selfhelp cooperative could draw its supervisors. Many of them might be
eager to join as members. They are now totally unemployed.
The WPA has a list of 965 workers certified to WPA but not now
employed on projects. The occupation and work history of each of
these men and women is available at short notice.
315
-2Most of these workers were connected with the building trades
or domestic service, but there is a scattering of other skills.
There is a relative shortage of workers connected with industrial
and mechanical trades.
The colored numbered 630; the white workers 335. Only eleven
were classified as workers seeking first jobs.
The largest skilled group was "painters." Some of them are
probably brush men. There were 33 skilled negro cement finishers
and about 300 colored laborers in the building trades.
There were about 50 white bookkeepers, accountants, and clerks -
men, and about 30 women. Colored office workers are hard to place,
either in private industry or on WPA. There were about 80 unskilled
colored women in cooking and domestic service, and 15 colored men
classified as cooks.
On the records of some of these workers were notations that they
had hernias, high-blood pressure, or other physical disabilities.
Such men do not need a work program. They need medical attention.
With the inauguration of WPA all means of aiding such workers except
through work were rendered impossible.
February 13, 1937
M
316
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE February 10, 1937
MEMORANDUM OF DAY'S ACTIVITIES
FOR FEBRUARY 9.
To
THE SECRETARY
FROM
MR. MAGILL
1. Carriers' Taxing Act.
I called Representative Doughton and arranged for a meeting at the Capitol today with him and a few members of his Committee
regarding the proposed extension of the date of expiration of the Act.
2. Declaratory Tax Rulings.
Professor Yntema discussed his plan for Declaratory Rulings
in tax cases before a group of men from the General Counsel's office.
The general idea is to facilitate the disposition of cases by agreeing
with the taxpayer in advance upon the facts of the transaction and the
applicable rule of law. The Commissioner will, of course, have the
power to issue these rulings or not as he sees fit and presumably will
make them mainly in cases in which a large number of taxpayers are
confronted with the same question; as, for example, when securities
in a bankrupt became worthless.
3. Taxation of Non-Resident Aliens.
We conferred for an hour and a half upon the possible solutions.
Most of the discussions involved a proposal by Mr. Oliphant for a form
of tax on capital gains with some discretionary power in the President
to put it on or take it off. Mr. Zucker will do some further work on
the subject.
Rm
317
Tuesday
February 9, 1937
3:25 p. m.
HMJr:
Harry?
Harry
Hopkins: Yes
HMJr:
How are you?
H:
I'm fine, where are you?
HMJr:
I'm at the Treasury.
H:
Oh, I thought you were still - -
HMJr:
That's where I hang out.
H:
Yes (Laughs)
HMJr:
Harry, I don't know whether you are familiar with
these statistics that we've been getting out for
the President for the last two or three months,
which we .picked up where Frank Walker's organization
left off. They have to do with all the people at
work in all the agencies, see?
H:
Yes
HMJr:
Have you ever seen those?
H:
Well, I haven't seen yours. I know we get them out
every two weeks.
HMJr:
You mean you show everything?
H:
Well no, we just show emergency funds.
HMJr:
Well, I'd like to send you - I'd like to send Miss
Lonigan over with these and I'll tell you why.
I asked the President - the President, up until
now, has never let me show them to anybody, even
Cabinet members.
H:
Well, didn't Miss Lonigan show those to me about that's where she was building up the number of people
getting work
?
HMJr:
Yes
H:
- through Government benefits.
318
-2HMJr:
H:
HMJr:
H:
HMJr:
Yes,
run them now - this is the third month
we've we've
had them.
I'd like to see them very much.
Now
- well, now, here's the point. I asked him if
we could make them public.
Yes
He
saidyou.
as far as he was concerned, yes, but to discuss
it with
H:
Yes
HMJr:
See?
H:
HMJr:
H:
HMJr:
Well, I'd like to take a look at it with that in mind.
Well now, what time tomorrow - ?
I'll have to let you know, Henry, because I'm just
snowed under with this flood stuff now and I've got
to get something to the President by tomorrow noon.
Well, can you make a note?
Well, I'll call Miss Lonigan up between now and tomorrow -
HMJr:
H:
HMJr:
H:
now and tonight.
You will?
Sure
All right.
I'll get a time.
HMJr:
And I want to tell you something else.
H:
Yes
HMJr:
I am writing on this Self-Help thing down in Richmond.
H:
Yes
HMJr:
And I am tremendously interested.
H:
Yes
-3MJr:
And she's over there now with Jake Baker.
H:
Who?
HMJr:
Miss Lonigan
H:
Yes
HMJr:
She's riding over there now.
H:
All right.
HMJr:
And - I want to talk to you about it sometime -
H:
- this next - ?
HMJr:
Hello?
H:
Yes
HMJr:
-
H:
Yes
HMJr:
I
the thing that I've got in mind, see?
- it's a long time since I've had a project,
about five years.
H:
Yes
HMJr:
- is the possibility of doing something like that in
Washington.
H:
Yes
HMJr:
- as a demonstration.
H:
Yes -
MJr:
H:
HMJr:
H:
HMJr:
H:
well, I'd like to talk to you about it.
And I sent her down there to check up - I had been
there a year ago.
Yes
And they're really going awfully well.
Well, that's fine, Henry.
And Did you stop by this time and see her?
319
320
-4HMJr:
H:
No, I -
I have not. I sent Miss Lonigan there.
I know you were down there a year or so -
HMJr:
But
andshe
- came back with a very enthusiastic report
H:
Yes
HMJr:
- they're continuing to really -
H:
Yes
HMJr:
- get people permanent jobs.
H:
Yes - all right, Henry, fine.
HMJr:
Thank you.
H:
Goodbye.
321
Tuesday
February 9, 1937
3:32 p.m.
(
HMJr:
Jake
Hello
Baker:
Hello
HMJT:
Jake Baker?
B:
Yes
HMJr:
Henry Morgenthau, Jr.
B:
Yes, sir
HMJr:
B:
You've got Miss Lonigan over there, haven't you?
Yes, she is.
HMJr:
What?
B:
Yes, she's here.
HMJr:
-
All right. When she's - I'm through speaking to
you may I speak to her a minute?
B:
Oh yes
HMJr:
I just want to tell you this. I had a chance to talk
B:
Oh yes
HMJr:
And I finally have got them interested.
Well, I'm lawfully glad to hear that.
Now, the thing that the President - I talked to him
about - and he is really quite enthusiastic about
the idea of trying to establish one here in the District.
B:
HMJr:
to both the President and Mrs. Roosevelt about this
Self-Help thing in Richmond.
B:
Oh yes
HMJr:
See?
B:
Yes
HMJr:
And bring the people up from Richmond who know the
B:
Yes
technique and start it right here, very quietly, without any publicity, -
322
-2HMJr:
B:
HMJr:
- get it going, and then after it's going why we
can take people around and show it to them.
Yes
And that's what I wanted to tell you - what he had
in mind. He's very enthusiastic. He said to have
an informal committee, have somebody on it from your
organization, I think he said C.C.C. -
B:
Yes
HMJr:
- somebody from Resettlement -
B:
Yes
HMJr:
And just watch the thing - do it very quietly -
B:
Yes
HMJr:
But get it started.
B:
Yes
HMJr:
And then after it works we can take people down and
B:
All right, sir.
HMJr:
B:
HMJr:
show it to them, right here, see?
Now, I just wanted to tell you, that, for the first
time I've got both the President and Mrs. Roosevelt
really interested.
I wonder if you'll say anything to Harry about it.
I just called Harry up.
B:
Oh, you did?
HMJr:
And I told him that I was tremendously interested,
B:
I see.
HMJr:
B:
HMJr:
that it was the first time in five years I was going
to get back in social work.
And I said the first time he was free I wanted to talk
to him about it.
Well, I'll talk to him about it too, of course, and
we'll get a scheme worked out to do it.
But, I - I mean, I - just before I called you I
called Harry.
323
-3B:
Surely, well, I'm very glad. Thank you very much,
Mr. Secretary.
HMJr:
And -
B:
Shall I have Miss Lonigan call you; she's in another
HMJr:
Well, just tell her this, that - just tell her, if
B:
office? I can get her, she's
you don't - do you mind giving her a message?
I don't mind in the least.
HMJr:
She has a group of unemployment figures on other of a monthly series which she gave me this morning -
B:
Yes
HMJr:
And Hopkins is going to send for her tonight or tomorrow. He wants to go over them with her.
B:
Oh yes
HMJr:
That's all.
B:
All right, I'll tell her that.
HMJr:
And - but this other thing - let's see if we - you
yourself are enthusiastic?
B:
HMJr:
B:
HMJr:
Oh yes, yes, no question about it. I think it's swell
stuff. I want to keep pushing it.
Well, what do you I'll get after Harry right away and we'll get some
money. I think I can
Will you make a tentative budget of what it would cost
in Washington?
B:
Oh yes, we can use the Richmond figures, you see, and
scale it a little bit, and so on. You see - as a
matter of fact, Mr. Secretary, we have a small beginning of a Self-Help group her among the negroes.
HMJr:
I see.
B:
And we've never said anything much about it/because
just
324
-4B:
of the fact that we wanted to pretty well prove it
out. It's just about ready now for us to begin to
show things.
HMJr:
Yes
B:
There's a woman named Nannie - Mrs. Nannie Burroughs,
who is devoting her whole time to it. She's a former
social worker among negroes, she's a negroe -
HMJr:
Yes
B:
And we've got something there to begin with and if we
just get a little bit more friendliness in the aid to
it from our social work people, our other social work
folks, you know, and from Harry, why I think we can
have something within a month that'11 begin to show
something; that we can get a committee on and actually
it'11 show results. I don't mean to promote it, bally
hoo it, but just simply
HMJr:
B:
HMJr:
B:
HMJr:
No, no - I - if I had anything at all to do with it,
I'd like to have it start with no bally hoo.
Yes, none at all.
None at all.
None at all, that's right.
And then after it's going there'll be plenty of time.
B:
Oh yes, -yes indeed.
HMJr:
But, to me, it's the most encouraging thing that I've
seen in getting people permanently in place.
Well, I'm awfully glad you like it, Mr. Secretary.
And golly, I've tried for one year to get the Roosevelts
interested and I finally succeeded today.
B:
HMJr:
B:
HMJr:
Well, I'm delighted to hear that.
And - Do you follow this yourself?
B:
Yes, I do.
HMJr:
You do?
B:
I follow it very closely myself.
325
-5HMJr:
What's that?
B:
I follow it very closely myself.
HMJr:
Fine
B:
-And I'll get right after it - get right on to it
right away.
HMJr:
Fine
B:
All right, sir.
HMJr:
Thank you.
B:
Thank you, very much.
326
February 10, 1937
GROUP MEETING
Present:
9:30 A.M.
Mrs Klotz
Mr. McReynolds
Mr. Upham
Mr. Lochhead
Miss Roche
Mr. Gaston
Mr. Gibbons
Mr. Oliphant
McReynolds: Dan had to go up to see Joe Robinson about something
this morning; he didn't know what.
H.M.Jr:
Well, as long as you're talking
McReynolds:
Nothing more.
H.M.Jr:
Nothing, Mr. Secretary.
Tom Smith all right these days?
Upham:
You've seen him since I did.
H.M.Jr:
No.
Upham:
H.M.Jr:
In the hall.
Well, just to say hello. But you were with him
Upham:
No. Only at lunch.
H.M.Jr:
How was he?
Upham:
All right.
H.M.Jr:
Any gossip.
Upham:
No, I think not.
Upham:
all day.
McReynolds: Tom says he's being overworked.
Gibbons:
He don't look it.
He's getting too fat.
Lochhead:
Nothing new. There has been a downward movement in
H.M.Jr:
guilders, but there's no explanation so far.
327
-2H.M.Jr:
Have we anybody who can translate French in this
Lochhead:
Well, on that letter, by the way, they sent over an
English translation with it.
H.M.Jr:
Did they?
Lochhead:
Yes.
H.M.Jr:
I'd like to see it afterwards.
All right.
Lochhead:
Roche:
place?
I don't have anything special, sir. Had a nice meeting yesterday, except the Chairlady was very expansive
and when I got through, with large gestures she said,
"Miss Roche will answer any questions" to these eight
hundred women. The question came up would I please
comment on the President's trying to pack the Supreme
Court. I didn't.
H.M.Jr:
You didn't?
Roche:
No, sir. I asked the Chairman to amend her suggestion;
H.M.Jr:
Do you know Mrs. Woodward?
Roche:
H.M.Jr:
Yes, sir.
Who is the head of the women's thing over at Hopkins.
Roche:
Quite well, sir, yes.
H.M.Jr:
I may want to ask you something about her.
Roche:
Yes.
Gaston:
I suppose you noticed that Vincent Astor announced
H.M.Jr:
No.
Gaston:
They are to combine the news review of News-Week with
that I would give factual statements on the subject I
was discussing. It was awfully funny.
Do you know her?
the purchase of News-Week.
328
-3 Raymond Moley's editorials and the publication
will be known as News-Week, so that Today is dead
and gone.
H.M.Jr:
Not losing enough for one magazine.
Gaston:
Well, I presume he expects to lose a little less.
H.M.Jr:
How much circulation, News-Week?
Gaston:
I don't know.
H.M.Jr:
But Today has been put to bed?
Gaston:
Today has been interred, yes.
Oliphant:
Moley continues as Editor?
Gaston:
Moley will be the Editor of News-Week, and it will be'
a combination of the present features of News-Week
with Raymond Moley's editorials.
H.M.Jr:
What other good news have you got?
Gaston:
Nothing, except our Coast Guard picture showing over
H.M.Jr:
Good and rotten?
Gaston:
I mean it's very punk.
I told Herbert I'd sell the Coast Guard's interest
Gibbons:
Gaston:
at Keith's - it's good and rotten.
in it to him for a quarter.
I wrote a note to Gelly and told him that no more
cooperation on full length pictures about the Coast
Guard.
H.M.Jr:
Why, doesn't it show them up well?
Gaston:
No, I don't think so.
It's cheap stuff. It shows a lot of barroom drunkards
fighting and a lot of slap-stick stuff that's just
terrible; worse than the last one, and I thought the
Gibbons:
last one was awful.
329
-4H.M.Jr:
What company produced it?
Gibbons:
Warner Bros.
Gaston:
No, it's R.K.O., isn't it?
Gibbons:
Yes, R.K.O.
H.M.Jr:
Anything else?
Gaston:
No, that's all.
All right, Steve?
H.M.Jr:
Gibbons:
Nothing in the - on the morning meeting. But I thought
this would be a little comedy or interest: that Vic
Donahey is about dying - the Senator - and there are
two candidates already for A National Committeeman,
Sawyer, who is married into the Proctor & Gamble family,
has approached a friend of mine in Ohio to manage his
candidacy, and old George White is a candidate. Poor
fellow's not dead yet, but they've declared themselves.
How about Moore? Isn't he a candidate?
I haven't heard. Moore's away, isn't he?
H.M.Jr:
What else have you got?
Gibbons:
That's all. Isn 't that terrible?
H.M.Jr:
Herman?
Oliphant:
I'd like to speak for some time this afternoon; if
H.M.Jr:
(To Mrs Klotz) For this afternoon, Mrs. Forbush's
mother's funeral.
Gibbons:
Gaston:
not this afternoon, tomorrow afternoon.
3:30 tomorrow afternoon?
Mrs Klotz:
Yes. I'd like - before you call Judge Black, I'd
like to see you. You haven't called him yet?
I haven't yet.
H.M.Jr:
No.
Oliphant:
330
-5Oliphant:
Before you do.
H.M.Jr:
Well then, you better stay behind.
Look, you wrote me that note last night that Dailey
up there in New York - not Vincent - seemed surprised
that this fellow kept saying that he saw me all the
time. What else can the fellow say? He admits he
forged the signature, and the only S tory that he can
give is that he saw me and I told him it was all
right.
Oliphant:
Well, that wouldn't be a forgery if he acted - if you
authorized the signing, it would not be a forgery.
H.M.Jr:
But having admitted he signed the thing, what else
could he do but simply insist he saw me? Huh?
Could he?
Oliphant:
Gaston:
No, I was mystified by Dailey's surprise.
You mean that that is the obvious lie that he would
tell.
Oliphant:
What else could he do? Why should Dailey be mystified?
I'm not sure.
H.M.Jr:
What?
Oliphant:
I'm not sure.
H.M.Jr:
Anybody got anything else? All right. Herman, then,
H.M.Jr:
if you'll stay I'll talk to you.
Wednesday
331
February 10, 1937
11:23 a.m.
Hello
HMJr:
Treas.
Operator: Mr. Miller is out until a quarter of twelve.
(Short Pause)
T.O.:
I'll talk to him.
All right. Go ahead.
HMJr:
T.O.:
HMJr:
Mr.
Hello
Miller's
Secy.
Hello
HMJr:
Mr. Morgenthau, speaking, -
S:
Good morning, sir.
HMJr:
Hello
S:
Hello
HMJr:
Would you give Mr. Miller the following message for
me?
S:
Be glad to, sir.
HMJr:
This young man that he sent over came back to see us
today, this messenger.
S:
Yes
HMJr:
And he's now refreshed his memory and the letter which
he was supposed to have brought over to me was delivered
to Mr. Bell; and it was a letter for Mr. Bell and the
letter is in Mr. Bell's file. And on that day this
messenger, who is Mr. Eastman's messenger, brought no
S:
other letter to the Treasury.
I see. In other words, it was a letter addressed to
HMJr:
To Mr. Bell, Dan Bell of the Budget.
S:
Oh, Mr. Bell, that's right, of the Budget.
Mr. Brown?
332
-2HMJr:
S:
- of the Budget. And the letter is there. So that we have - Mr. Bell has that letter in his files.
I see. All right, I'll be glad to give him that message,
Secretary.
HMJr:
S:
HMJr:
At least that's - we haven't checked that it's in his
files but that's what the messenger said, see?
In other words, he never did bring any letter over
there, except that one to Mr. Bell?
That's what he said.
S:
Yes - All right, I'll bring that to the Chairman's
HMJr:
Thank you.
S:
Thank you.
attention, Mr. Secretary.
333
10 February, 1937
4 p. m.
Moos
COAST GUARD OPERATIONS IN FLOOD AREA
All boats in the Ohio River Valley as far south but not including Cairo are being returned to their regular stations. A
force of approximately 225 boats and 22 seagoing units are dis-
tributed at strategic points along the Mississippi from Cairo
southward to Louisiana.
General Water Level Conditions.
No change from yesterday except crest now at Memohis (48.61) -
falling above Memphis and slowly rising all the way to New Orleans,
where water is being diverted by spillway.
334
-COPY-
February 10, 1937.
My dear Cordell:
In response to your note of yesterday, I am glad to advise
you that the officers named in the Department's letter of February 8, informing you of the transfer of three Customs agents to
the investigative staff of the Supervising Treasury Attache at
Paris, are to be assigned exclusively upon narcotics investigations.
This is in addition to, and not in relief of, other agents now performing such duties.
Thank you very much for your cordial cooperation in this
matter.
Sincerely,
(Signed) H. Morgenthau, Jr.
Hon. Cordell Hull,
The Secretary of State.
HNG/mff
-COPY-
335
DEPARTMENT OF STATE
Washington
February 9, 1937.
My dear Henry:
I have your note of February 8th in regard to your purpose to
augment the investigative staff of the Supervising Treasury Atache
at Paris and I find there has also been received a letter naming
three agents who are to be sent.
Inasmuch as our Government's understanding with the French Gov-
ernment is that American Treasury Agents in France for the purpose
of cooperating under the drug treaties will limit their activities
exclusively to the matters to which the treaties pertain and that
this is the condition on which the French Government permits such
Agents to reside and function in France, I would thank you to advise
me whether the three persons mentioned are to be assigned exclusively
to narcotics investigation, either in relief of or in addition to
other Agents.
It is, of course, my earnest desire to assist in every way pos-
sible the efforts of your Department to combat illicit traffic in
narcotic drugs and, on hearing from you, I shall be glad to see that
this Department's representatives abroad are given the proper instructions.
Yours very sincerely,
(Signed)
The Honorable
Henry Morgenthau, Junior,
Secretary of the Treasury.
CORDELL HULL
336
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
MEMORANDUM OF DAY'S ACTIVITIES
FOR FEBRUARY 10.
TO
Secretary Morgenthau
FROM
Mr. Magill
DATE
VA
February 10,1937
1. Carriers Taxing Act
Mr. Kent; Mr. Latimer and Mr. Eddy of the Railroad Retirement Board
and myself, met with the Democratic members of the Ways and Means Com-
mittee to discuss the extension of the date of expiration of this tax. After
an hour's discussion it was agreed that the date should be extended to the
end of the fiscal year 1938; that Mr. Kent and Mr. Beaman will prepare the
Bill and Mr. Doughton introduce it. The Bill was completed and will be
introduced this afternoon and the Ways and Means Committee will consider
it tomorrow morning, at 10:30. The Chairman has asked Mr. Kent and myself
to be present.
We also discussed the proposed legislation with Senator Harrison.
He suggested that we obtain the agreement of the railroads ( through
Mr. Pelley). Since Mr. Latimer is now in touch with the railroads and the
brotherhoods, I asked him to speak to Mr. Pelley. Mr. Latimer told me over
the telephone that the brotherhoods and the railroad executives would not
oppose the extension.
2. Non-resident aliens
Mr. Zucker discussed with me proposals for increasing the withholding rate on dividend income to correspond with the average effective rate
now applicable to dividends received by individuals. This figure will be
about twenty percent. We agreed that the present exemption of interest on
non-resident alien bank balances ( Sec. 119 (a) (1) (A)) should be eliminated.
Mr. Zucker is also working on a plan for the taxation of capital
gains by directing the broker who sells for a non-resident alien in this
country to withhold a percentage of the proceeds until the alien files a tax
return showing his actual profit. Mr. Zucker will prepare short memoranda
supporting these proposals and will have them available for us tomorrow noon.
3. Contributions for flood relief
I sent to the President the draft of a letter expressing opposition
to a Bill by Representative Ludlow to eliminate the fifteen percent restriction on deductions for charitable contributions in so far as it applies to
organizations engaged in flood relief.
Run
337
COMMUNICATIONS TO
SECRETARY OF STATE
WASHINGTON D.C.
DEPARTMENT OF STATE
WASHINGTON
In reply refer to
FE 894.00/693
February 10, 1937
CONFIDENTIAL
The Secretary of State presents his compliments to
the Honorable the Secretary of the Treasury and, with
reference to this Department's letter of February 10 to
which was attached a memorandum in regard to the forma-
tion of a new Cabinet in Japan, encloses, for the confidential information of the Secretary of the Treasury, a
further memorandum on the subject under reference which
is based on information transmitted to the Department by
the American Ambassador at Tokyo on February 10.
Enclosure:
Memorandum under
date February 10,
1937.
338
CONFIDENTIAL
FE
0
Enclosure.
To: Treasury.
338
CONFIDENTIAL
February 10, 1937.
MEMORANDUM
(Based on information received from the
CONFIDENTIAL
American Embassy at Tokyo on February 10, 1937.)
On February 9 there were made two appointments of
significance.
Because of illness, which apprently is genuine, the
Minister of War (General Nakamura) resigned, and last
night (February 9) there was appointed as his successor
General Hajime Sugiyama, Inspector-General of Military
Training. The probability is that the Cabinet's financial
difficulties will not be lessened by this appointment, as
it seems likely that Sugiyama will insist on the approval
of the proposed military budget.
The Governor of the Bank of Japan (Fukai) resigned on
February 8 and Seihiu Ikeda has been appointed to succeed
him. Ikeda formerly was Managing Director of the Mitsui
organization. Juichi Tsushima, former Vice Minister of
Finance and Financial Commissioner at London and New York
was appointed Vice Governor of the Bank of Japan. Ikeda
and Tsushima are well known to financial circles in America.
Fukai was considered by financiers in Tokyo as not so much
a practical banker as a theorist and scholar and it is said
that Ikeda will pursue a more positive policy of
cooperation
339
-2cooperation with industrial and financial circles than
did his predecessor. Financial circles in Japan welcome
Ikeda's and Tsushima's appointments and feel that they
with Yuki (Minister of Finance) form a strong triumvirate
which will be able to steady Japan's disturbed financial
situation while giving to industry all possible assistance.
340
OFFICIAL COMMUNICATIONS TO
THE SECRETARY OF STATE
WASHINGTON, D.C.
DEPARTMENT OF STATE
WASHINGTON
In reply refer to
FE 894.00/690
February 10, 1937
CONFIDENTIAL
The Secretary of State presents his compliments to
the Honorable the Secretary of the Treasury and, with
reference to this Department's letter of February 3 in
regard to the formation of a new Cabinet in Japan, encloses, for the confidential information of the Secretary
of the Treasury, a memorandum in which is set forth certain additional information received from the American
Ambassador at Tokyo on the subject under discussion.
Enclosure:
Memorandum under
date February 9,
1937.
dr.
FE
Enclosure
Treasury
341
CONFIDENTIAL
February 9, 1937.
MEMORANDUM
(Based on information received from the
American Embassy at Tokyo.)
CONFIDENTIAL
The cabinet of Hayashi is not supported by the
political parties, has no decided complexion, and has no
marked theories or convictions. However, more mature
public opinion inclines toward the belief that the new
Cabinet is less colorless than was at first thought.
Although this Cabinet is under military influence to a
somewhat greater extent than the Hirota Cabinet was, it
is likely that on account of the attitude of the military
leaders this influence will be exerted with restraint.
There are indications that the Army leaders will await
the development of the new reactionary political party,
which will support and be supported by the Army, before
asserting further their power.
Hayashi, who has had little experience in government
and politics, is exclusively a soldier and is influential
in Army circles. He is honest, straightforward, and
rational but not a forceful character. The Minister of
War (Nakamura) and the Minister of the Navy (Yonai) are
good service men but little known outside the Army and
Navy. It is the general belief that the strong figure in
the Cabinet is Yuki (Minister of Finance) who is a
follower
342
-2CONFIDENTIAL
follower and protege of Takahashi (formerly Minister of
Finance) whose cautious financial policies he (Yuki) can
be expected to follow with tenacity. It is generally believed that Yuki will try as far as the military will allow
to reduce the financial burden on the Japanese people and
will not endanger the financial structure of the country
by sudden or drastic moves. Few of the other Cabinet
members are well known to the public and none are out-
standing in reputation.
The vagueness of the Cabinet's supposed policies, as
published in the press, illustrates the indeterminate
character of that body. These policies are
(a) Righteous administration under the Imperial
Constitution;
(b) Complete clarification of the national polity;
(c) Development of national industry and repletion of
national defense;
(d) Establishment of a definite diplomatic policy.
Undoubtedly the Hayashi Cabinet will meet opposition
in the Diet but it is not believed that the politicians
will go to extremes in their criticism as too strong opposition would result in the dissolution of the Diet. It
is the general opinion that the new Cabinet perhaps constitutes a short step on the way to some kind of Japanese
Fascism and that it is a temporary and transitional government intended
343
-3-
CONFIDENTIAL
ment intended to tide over a political crisis. The
general weakness of the Cabinet and the absence of support
from the political parties (none of the Cabinet being
members of political parties) would seem to portend a
short life. However, in Japan, Cabinets of this kind
often live longer than expected and some observers think
that unless this Cabinet is overthrown by some unforeseen
cause it will survive for about one year.
344
ams
GRAY
Paris
Dated February 10, 1937
Rec'd 4:15 p.m.
Secretary of State
Washington.
183, February 10, 5 p.m. SECTION ONE
FOR TREASURY
The Exchange market has been extremely quiet
today and WE are told be our market contact that the
Exchange fund intervened rarely. Sterling is now
quoted at 105.10 after 105,12. The dollar is lower
at 21.46 5/8. With regard to the other currencies
the florin showed SOME weakness due to persistent
rumors that the city of Paris is about to conclude
a loan of two hundred million florins in Amsterdam,
The forward rates moved slightly in favor of the
franc, the dollar being quoted at 21 CENTIMES for
one months and 65 centimes for three months. The one
month rate for S terling is one franc and three francs
for three months.
The security market was generally irregular.
REntES showed strength closing from 1.10 francs to
1.80 franco up. END SECTION ONE
CSB
BULLITT
345
RB
GRAY
Paris
Dated February 10, 1937
Rec'd 5:13 p. m.
Secretary of State
Washington.
183, February 10, 5 p. m. (SECTION TWO).
Scheduled debate in the Senate on the financial
situation took place last evening on the occasion of
the discussion of the December supplementary credits
bill for 1936. The essential features of the discussion
relate to the warning of M. Gardey, reporter of the
Senate Finance Committee, to halt expenditures, and
the notice served on the Government by Caillaux,
President of the Senate Finance Committe, that that
body would henosforth reject any requests for expenditure
without corresponding revenue.
Gardey, in an objective analysis of the situation,
said that the Government's calculation that thirty-six
billions over and above budgetary revenue would be
required during 1937 was open to question and that,
by
based on figures furnished/the Minister of Finance,
himself, requirements totaled between thirty-eight and
thirty-nine billions including loans for the railways.
This was
346
-2-#183, February 10, 5 P. m. from
RB
Paris (SECTION TWO)
This was not contested by Auriol. Assuming that at
February 1 the Treasury had at its disposal ordinary
Treasury bonds of eight and a half billion francs and
one billion francs still available at the Bank of France,
Gardey explored ways and means of procuring the additional
thirty billions. He recalled that Auriol had concluded
before the Chamber that loan issues must provide neces-
sary funds. Listing the various ways and means resorted
to to cover last year's expenditures, mostly expedients,
he expressed doubt that similar procedure would succeed
as concerned the year 1937. He was far from convinced
that Auriol's hopes for obtaining funds would be realized
(in this respect particular reference was made to the
Government's announced intention of calling upon the
departments and communes.
END OF TWO.
BULLITT .
SMS
NPL
347
sms
GRAY
Paris
Dated February 10, 1937
Rec'd 3:43 p.m.
Secretary of State,
Washington.
183, February 10, 5 p.m. SECTION THREE
to repay, advances) and he could not believe that the
Government envisaged borrowing through a third party.
Gardey called upon the Government to halt rising
prices, to curb expenditures and to state clearly and
definitively its intentions "so as to dissipate the
anxiety of a large part of the populace and the illusions of others".
Finally he insisted that the country must be accorded a breathing apell to rebuild its reserves and
to Enable it to respond to the calls of the Treasury
for credit. The currency, national defense, and
liberty were at stake, he solemnly warned.
Auriol EXPRESSED regret that on account of calls
upon his time and attention he must make an improvised
reply. Briefly hE recalled previous budgetary deficits
and the unfortunate dEVElopmEnt of French finances
under previous governments. HE did not contest
Gardey's
348
SMO 2 - No. 183, February 10 from Pario. Section 3
Gardey's Estimate of requirements for 1937 but hope-
fully pointed to increased revenue receipts of
282,000,000 france for December and 253,000,000 for
January from indirect tames alone. Thus he 120.0
justified in believing that budgetary estinate of
revenue for 1937 would be amply justified and Especially
in view of the probable stimulation of the Exposition.
HE complained that lie 170.0 criticized but that no one
brought any solutions. HE could not raise taxes nor
would he have recourse
END SECTION THREE
BULLITT
CSB
349
sms
GRAY
Paris
Dated February 10, 1937
Rec'd 4:10 p.m.
Secretary of State,
Washington.
183, February 10, 5 p.m. (SECTION FOUR)
to a new devaluation. HE would not bring another
monetary law before Parliament. Therefore borrowing
was the only solution. But in connection with the
necessity to borrow and the credit of the state
Auriol begged "certain newspapers and certain
people" to CEASE alarming the public and called on
the whole country "to group itself around the
Government in order to ward off threatening dangers".
The Minister was then lead to repeat that he
would not devaluate further, he would not resurrect
Exchange control nor would he resort to monetary
manipulation. France had signed a tripartite agreement with two great democracies. "France would not
practice a policy of monetary isolation, it would
not shut itsElf out from the world at a moment when
it was necessary for French financial and Economic
interests
350
sm3 2 - No. 183, February 10 from Paris. Section 4
interests to draw closer to the great democracies
and to consolidate Existing arrangements and not to
break them." Exchange control he went on would mean
the breaking up of the monetary arrangement.
Auriol pointed out that while he had promised
freedom of monetary exchanges he had also insisted
that there should be no fraud and there Existed no
contradiction in this respect as had been claimed. HE
insisted that Exchange transactions must be "normal".
Auriol EXPRESSED his inability to understand why
END OF FOUR
BULLITT
CSB
351
Gray
JS
PARIS
Dated February 10, 1937
Rec'd 9:55 p.m.
Secretary of State,
Washington, D.C.
183, February 10, 5 p.i. SECTION FIVE
the "clinctE" for loan issues was unfavorable. The
Government, he said, had only the public welfere in
ViEW and that this had been recognized by all. However,
be complained false rumors circulated about further
devoluction, Empty treasury, Etc., could not possibly
create a fevorable climate. In conclusion, he refused
to believe that ouch a canseign had political Ends but
he regretted to note that an important Right organ had
yesterday predicted that in three WEEKS anarchy and
revolt would be rempont in Paris and this at a moment
when foreigners were preparing to COME to France.
Coilleux, referrin, to the Economic situation,
insisted that unless the price problem received an Early
solution, the situation would become "Extremely perilous.
Turning to the financial situation, he claimed that
while the present administration could not be held entirely
responsible for the present emberrosement, the principal
CAUSE WC.O the program of the Popular Front. In a word,
C. part of the deficit crose from the policy of reflation
based on the theory of purchasing power which Caillaux
choracterized
352
-2-
From Paris #183 SECTION FIVE
choracterized 0.3 "abourd". WE observed that the
Government could only find relief abroad because the
French public had withdrawn its confidence in the
Government. The reason was because the public was
alarmed at EVER increasing ExpEnditures, and he
predicted that soon EVEN foreign sources of revenue
would dry up.
A country whose public debt had increased by
100,000,000,000 france in SEVEN years could not
possibly survive, Caillaux continued, and concluded
that authorizations for expenditures not covered by
revenue would henceforth be refused by his committee.
Spinerri, Minister of National Economy, closed the
debate by Explaining his views of the price problem
and Expressed the hope that by the organization of
labor it would be possible to increase production
and thus bring about a reduction of prices and the
cost of living and revive commercial Exchanges.
END SECTION FIVE
BUILITT
SMS EMB
353
Gray
CA
PARIS
Dated Feb. 10, 1937.
Recd 6:48 p.m.
Secretary of State,
Washington.
183, February 10, 5 p.m. SECTION SIX
Yesterdny the Chamber by a large majority decided to
abrogate Article Six of the monetary law of October 1,
last, which provided in effect that the present definition
of the franc is not applicable to international payments
expressed in francs prior to the promulgation of that law
and that such payments should be defined in accordance with
the monetary law in force in France at the time when the
obligation giving rise to the payment was contracted.
The Chamber decided, according to press accounts, to
substitute a new article stipulating in effect that the gold
clause in international loans must be recognized so that
when payments had been stipulated in French gold francs at
a specified weight in gold then they must be upheld. In all
other cases the term "franc" should be understood as being
the current legal franc at the date of payment. The Minister of Finance pointed out that if the provisions of
Article Six of the monetary law were maintained, more loss
than profit would be caused to French interests and that
the charge on the Treasury alone would be not less than
six hundred
354
--2--183 Paris Feb 10
CA
six hundred million francs. The question will now be
confirmed by the upper house. The proposed modification
was the subject of the Embassy's despatch No. 234 of
January 5.
Some comment has appeared in the financial press
with respect to telegraphed accounts of an article by
Secretary Wallace to the effect that the United States was
not ready to renew its loaning policies "until the question
of defaults is settled." JOURNEE INDUSTRIELLE suggests
that the opinion of Mr. Wallace is probably not shared by
the great majority of New York bankers and goes on to
recall that in spite of the suspension of credit operations, London has already granted credit to countries
"in default" and in this respect mentioned the credit
to Russia of ten million pounds. The paper concludes that
exigencies exist in internel finance "which do not go
hm d in hand with a rigid puritonism."
END OF MESSGAE.
BULLITT
SMS EMB
355
FEDERAL RESERVE BANK
OF NEW YORK
FFICE CORRESPONDENCE
CONFIDENTIAL FILES
L. W. Knoke
DATE February 11, 1937.
SUBJECT
TELEPHONE CONVERSATION WITH
BANK OF FRANCE.
I called Mr. Cariguel at 11:10 a. M. I referred to the tripartite agreement of last September and mentioned that the Swiss
National Bank on Deceber 7 of last year inquired of us with regard
to the revqeation or modification of the agreement. I added that
these inquiries had prompted us to look into the matter further and
we had suggested to the Swiss, and they had since agreed to, certain
modification. I told dariguelthat I was sending him a cable tonight
quoting two paragraphs dealing with the revocation or modification of
the agreement and suggested that he read them and talk to me after-
wards or else cable me. I emphasized that I was sure he would find
that modification suggested was essentially the basis on which we had
been and were now operating with him. I also explained that after re-
ceiving the Swiss National Bank's confirmation we had written letters
to Belgium and to Holland, telling them what we had done, and suggested
that if they agreed, they confirm to us or else give us their reactions.
The purpose of our cabling him and also the Bank of England today was
to assure uniformity for all members of the agreement.
I then inquired about market conditions in Paris. Cariguel
replied that things were very much better yesterday but today, not so
good any more. Foreign stock markets were attracting French funds and
the reported settlement of the General Motors strike, he thought, would
again take French capital into our securities. I replied that, according
to the figures reported to us, buying of our securities for French aocount had recently been insignificant.
Speaking of the Dutch guilder, Cariguel said that he had heard
356
3.3.60M 8-36
FEDERAL RESERVE BANK
OF NEW YORK
FFICE CORRESPONDENCE
DATE February 11, 1957.
CONFIDENTIAL FILES
SUBJECT TELEPHONE CONVERSATION WITH
L. W. Knoke
OM
BANK OF FRANCE.
-2of rumors of a Dutch loan to the French but that he know absolutely
nothing about it.
LWK:KMC
357
FEDERAL RESERVE BANK
OF NEW YORK
FFICE CORRESPONDENCE
CONFIDENTIAL FILES
DATE February 11, 1937.
SUBJECT TELEPHONE CONVERSATION WITH
L. W. Knoke
BANK OF ENGLAND.
I called Mr. Bolton at 10:55 a. m. I referred to the tripartite agreement of last September and mentioned that the Swiss
National Bank on December 7 of last year inquired of us with regard
to the revocation or modification of the agreement. I added that
these inquiries had prompted us to look into the matter further and
we had suggested to the Swiss, and they had since agreed to, certain
modification. I told Bolton that I was sending him a cable tonight
quoting two paragraphs dealing with the revocation or modification of
the agreement and suggested that he read them and talk to me afterwards or else cable me. I emphasized that I was sure he would find
that modification suggested was essentially the basis on which we had
been and were now operating with him. I also explained that after receiving the Swiss National Bank's confirmation we had written letters
to Belgium and to Holland, telling them what we had done, and suggested
that if they agreed, they confirm to us or else give us their reactions.
The purpose of our cabling him and also the Bank of France today was to
assure uniformity for all members of the agreement.
I then asked what he could tell me about the guilder rate.
Bolton thought its weakness was due to three reasons:
(1) Repatriation of capital had either died down or
was completely over
(2) There were rumors that Paris sought a credit in
Amsterdam
(3) It was believed that under the recent German exchange law a certain amount of Dutch securities
had been turned in to the German authorities
and had now been sold by the latter.
358
FEDERAL RESERVE BANK
OF NEW YORK
FFICE CORRESPONDENCE
CONFIDENTIAL FILES
DATE February 11, 1937.
SUBJECT TELEPHONE CONVERSATION WITH
L. W. Knoke
BANK OF ENGLAND.
-2I asked Bolton whether he had heard about the rumor that
Cariguel was leaving the Bank of France. He said he had and could
tell me what had happened. Paris newspapers, led by the Agence
Economique, had started an attack upon the French exchange policy,
aiming at Labeyrie and Aurial. The market, however, misinterpreted
the attack and thought it was directed at the man who was handling
the technical details of the program, that is Cariguel, with the result that Cariguel was expected to quit. When the newspapers realized
the misinterpretation on the part of the market, the Agence Economique
published a notice correcting that impression. With that, Bolton
thought, the matter had been closed. The firming up of the franc
rate, to which he had referred in his cable to us of this morning,
Bolton said, was due to rumors of a change in the governorship of the
bank. These rumors, he thought, might not be without foundation. As
to who might succeed Labeyrie, he knew no more than had been reported
by the news service in London as well as here, namely Baudoin of the
Banque de L'Indo Chine, and Monick.
Bolton then referred to the increased turmover in their account with us, which, he said, was entirely due to the necessity of
swapping clearing house funds for Federal funds and also to a desire
not to force more gold upon us. I replied that as far as the extra
trouble was concerned, he need not worry and that any steps which resulted in our acquiring less gold in London, I thought, would be welcome
here. He inquired whether there was not a chance of doing away with this
359
FEDERAL RESERVE BANK
OF NEW YORK
FFICE CORRESPONDENCE
CONFIDENTIAL FILES
DATE February 11, 1937.
SUBJECT TELEPHONE CONVERSATION WITH
L. W. Knoke
BANK OF ENGLAND.
a-
distinction between clearing house and Federal funds. I replied that
this matter had been discussed frequently in the past but that because
of the practices and customs of the New York Clearing House Associa-
tion, most of the items payable in New York City were not finally collected until the day following their receipt by us.
With reference to the situation in France, Bolton thought
that the speculation against the franc might temporarily die down a
little but that the movement of capital out of France seemed inevitable
at the moment at least. The problem, he thought, were the acts of the
government at present in power in France.
LWK:KMC
360
February 11th
H.M.Jr. sent for Bewley.
Bewley: I have a message for you from the Chancellor of the
Exchequer:
"Please convey to Secretary Morgenthau the
following personal and strictly confidential
message from Chancellor of the Exchequer:
Further to my message of February 6th Governor
of the Bank of England has returned from Basel
where he had conversations with Governor of the
Bank of France. He reports that financial situ-
ation in France has in no way been improved by
recent credit afforded French Railways in London.
In my opinion the outlook is increasingly serious
most vigorous action to restore confidence I fear
that we may see a flight from the franc, strict
exchange control and other features only too
familiar in similar circumstances. This would
of course mean break-up of tripartite agreement.
We are urging the French government to make every
effort to avoid such an outcome which we should
regard as serious disaster."
H.M.Jr: I want to ask you a question. Can I give you a
verbal message for Mr. Chamberlain and can you give
me your word of honor that you do not have to give
it to anybody but to Mr. Chamberlain?
and unless French government can speedily take
Bewley:
H.M.Jr:
Well, no
I want to send him a message as one Finance Minister
-
to another via you and not have it go through the
Foreign Office.
Bewley: Oh you mean verbally, after I get back to Europe? Oh
yes, of course.
H.M.Jr: The only person who knows he is getting this is the
President. I do not send messages of this kind unless
it is with the approval of the President. What I would
like you to say to Mr. Chamberlain is this:
"That looking at this whole world situation the
thing that is breaking down the credit of the big
countries of the world is armaments. That affects
your Treasury and it does not happen to, at the
moment, affect ours but it is the basis of the
-2-
361
"French troubles, the Japanese troubles and
looking at it as a financial matter and not as a
diplomatic has he any suggestions to make to me
whereby he and I might make some start to stop
the arming that is going on all over the world"
Bewley:
I would be delighted to pass this on.
H.M.Jr: I am telling you that I could not and would not make
a suggestion like this if it was not with the approval
of
the President. Nobody knows about this except the
President.
H.M.Jr:
As to the answer - there are two ways you can get it
to me: Either you come back yourself or send for
Cochran and give it to him by word of mouth and let
him come back - but nobody else. I do not want to
trust any cables.
Bewley: You simply want to know whether he has any suggestions?
H.M.Jr: Nobody in the Treasury knows about this except you,
the President, Mrs. Klotz and I. I want an answer
by word of mouth. I will get word to Cochran that
if you should ask him to come to London that he
should go but ask no questions. Cochran is so
situated that he does not have to report to anybody
but to me.
Bewley: I will not be in London until the 15th of March. I
will land at Plymouth. It is not absolutely certain
but we are planning to make a trip to California
first.
H.M.Jr:
I lay great stress on this. I wonder if it would not
be possible - I wonder whether you could not go over,
stay there three or four days and then come back and
get your two weeks vacation here.
BEWLEY HESITATED FOR SOME TIME
H.M.Jr: Is there any way of my getting word to Chamberlain?
I feel terribly pessimistic about this situation and
what you say about the French. These countries are
just heading for financial bankruptcy and what is
bankruptcy - that is this race for armaments.
-3-
362
Bewley: The Chancellor will not be able to give you any
suggestions without discussing it with somebody.
H.M.Jr: I do not want this message to go through your
Embassy nor through the State Department but what
the Chancellor does after he gets the message and
with whom he wants to discuss it that is up to him.
Bewley: If I ask for special permission there will be a lot
of buzzing about it. Will that be helpful?
H.M.Jr:
The buzzing would be in your service.
Bewley: I would have to get the approval of our Ambassador.
H.M.Jr: Could you say to Sir Ronald that I have asked you to
give a message to nobody except the Chancellor of the
Exchequer and suggested that you sail on the first
boat out and then come back? You could be back here
in two and a half weeks.
Bewley: My main feeling is that when it gets to London he will
not regard it purely as a financial matter and will
want to discuss it with his colleagues.
H.M.Jr:
What he does with it after he gets it I am perfectly
willing to leave to him. That is his look-out.
I am asking him a question. I have made a study of
these figures and what these various countries are
spending is just unbelieveable.
Bewley: We are doing our best to moderate the other countries
and when we could not we just decided that we had to
build too. The prime mover is Germany.
H.M.Jr:
Supposing you talk it over with Sir Ronald since there
is no sailing for a week and tell him just what I would
like you to do.
Bewley:
I do not see that there will be any difficulties. I
think it can be worked out.
H.M.Jr: I would rather have you come back with the answer.
I only suggested Cochran in case you could not.
363
February 11th
Ambassador Bingham was in to SCC H.M.Jr. to-day.
He said that in his opinion the monetary agreement absolutely
saved Europe
from
going to war. H.M.Jr. should be given
entire
credit for
that.
364
LMS
GRAY
London
Dated February 11, 1937
Rec'd 3:40 p. m.
Secretary of State,
Washington.
58, February 11, 6 P. m.
FOR TREASURY.
The Chancellor of the Exchequer announced in the
House of Commons this afternoon that the Government would
immediately seek powers to authorize it "to raise capital
or to use surpluses for its defense expenditure up to a
sum not exceeding 400,000,000 pounds over a period not
exceeding five years". Chamberlain particularly empha-
sized (one) that this in no way constituted an authorization to the fighting service to undertake any additional expenditure; (two) that "flexibility and adaptation must be a necessary part of our program".
British Government securities which, as mentioned
in my 38, January 29, 7 P. m., have been weak remained
comparatively unaffected by this announcement due to the
fact that jobbers widened decidedly the spread between
their buying and selling prices.
The
365
LMS 2-10. 58, February 11, 6 p. m., from London.
The initial reaction of the city to this announcement
was not unfavorable and it was assumed that the reason
Chamberlain chose this time to make it rather than during
his budget speech was in order that he might undertake
some borrowing during the present fiscal year through the
issue of Treasury bills thus avoiding having to take this
same action after an unbalanced budget had resulted. It
has also beer noted that the powers he will obtain would
cover the acquisition of the profit on the gold held in
the Bank of England, the market value of which is approximately 180,000,000 pounds over its book value, if this
should be realized during this five-year period.
It is interesting that this announcement was made
just an hour before Ambassador Ribbentrop's much heralded
visit to the Acting Foreign Secretary.
The franc strengthened somewhat today in terms of
sterling; in fact the Bank of France bought some pounds
sterling due to (one) Chamberlain's loan announcement;
(two) bear covering in Paris. The recent French revenue
returns have made a favorable impression here and it:is
also thought here (one) that the new French financial
legislation is intended in due course to make a free gold
market in Paris; (two) that an announcement will be made
in the near future of the appointment of a "cooperating
second"
366
LMS 3-No. 58, February 11, 6 p. m., from London.
second" to Auriol, who will be acceptable to the Rue de
Rivoli, (three) at the same time the franc will be held
in Paris and London fairly rigidly.
ATHERTON
CSB
367
LMS
GRAY
Paris
Dated February 11, 1937
Rec'd 4 p. m.
Secretary of State,
Washington.
191, February 11, 6 p. m. (SECTION ONE)
FOR TREASURY.
While the exchange market has been fairly quiet
today, sterling has fluctuated somewhat and reacted to
104.99 at which point the exchange fund made slight purchases but it quickly reacted to 105.03 and 105.04 when
the fund turned round and sold. The rate is now 105.03.
The dollar has remained fairly steady and is now quoted
at 21.431. The florin receded slightly apparently influenced by persistent rumors that the city of Paris has
been successful in the negotiation of a substantial loan
at Amsterdam but it has not been possible to confirm
this. The Swiss franc also receded apparently due to
sales of German holdings following liquidation of secur-
ities prompted by the tightening up of regulations by
the Reich.
Forward rates again moved in favor of the franc,
the dollar being quoted at 16 centimes for one month and
52 centimes
368
LMS 2-10. 191, February 11, 6 p. m., Sec. 1, from Paris.
52 centimes for three months. The pound is quoted at
75 centimes for one month and 1.45 francs for three
months.
Rumors somewhat vague are being circulated on the
Bourse that the Government envisages making certain
changes in its financial policy notably as concerns the
budget. These rumors coupled with the realization of
installments of the British credit may account in a certain measure for the easing of pressure against the
franc.
The Bank of France statement dated February 4 reveals
no changes of importance. The gold reserves are unchanged.
Commercial discounts are down 582,000,000 francs. Ad-
vances to the Treasury under the ten billion franc authorization remain unchanged at 7,500,000,000. The note
circulation is down about 800000,000. Deposits up
132,000,000. The ratio of gold cover is 55.01 compared
with 54.67.
The security market was generally lower and rentes
failed to maintain their upward trend; on the contrary
losses from 10 to 40 centimes were recorded. Internationals improved slightly (END FIRST SECTION)
BULLITT
CSB
369
PARTIAL PARAPHRASE OF TELEGRAM RECEIVED
FROM: American Embassy, Paris, France
DATE: February 11, 1937, 6 p.m.
NO.: 191
AGENCE ECONOMIQUE has lately shown considerable
preoccupation about the competency of the high officials
responsible for the financial policy of the Administration
and has stressed the view that 1f the tripartite monetary
agreement could lead the French authorities to adopt
methods which have been employed with success in London
and in Washington the country could envisage with much
less anxiety the numerous pressing financial problems which
now face the Government.
The following is strictly confidential:
AGENCE ECONOMIQUE in its February 9 issue was at pains
to make it clear that its criticism was directed at the
higher officials who are responsible for administration
of the exchange fund and not the official actually manipulating the fund. We are very reliably and confidentially
informed that AGENCE ECONOMIQUE had in mind the Bank of
France's Governor, and the Treasury's Director of the
Movement of Funds section.
In
370
LMS 2-Fo. 191, February 11, 6 p. m., Sec. 2, from Paris.
(GRAY) In the FIGARO of today notice is given to
a rumor that Auriol might resign but adds that there
does not appear to be any real grounds for this rumor.
However, it suggests that the story explains the strength
of rentes yesterday. On the other hand this paper
pointedly stresses that the possible resignation of
Labeyrie "merits consideration" and that his departure
would "bring to an end the regrettable discordances
between the action of the Treasury and that of the Bank"
and that his resignation would imply a change in the
credit policy. This paper goes so far as to suggest
that M. Baudouin, Director of the Banque de l'Indo-Chine
is to replace Labeyrie but that Baudouin is not disposed
to accept and that Monick would be the next choice. No
serious attention is given in financial circles here to
the suggestion that Honick might be under consideration.
The debate which took place in the Senate on February 9 summarized in my telegram of yesterday has been
given considerable notice in the press. Particular
agreement is noted with the contention made by Caillaux
that if the Government is encountering difficulties in
raising necessary funds it is not due to the opposition
of
371
LMS 3-No. 191, February 11, 6 p. m., Sec. 2, from Paris.
of any particular money block or to campaigns or maneuvers against the Government and that the money block if
one exists is composed of the millions of Frenchmen who
have savings and who are unwilling to subscribe to
Government loans because they consider that the state
expends too much and that the administration of public
finances is exactly the opposite of what it should be
to gain public confidence.
(FID GRAY)
BULLITT
CSB
372
LMS
GRAY
Paris
Dated February 11, 1937
Rec'd 4:50 p. m.
Secretary of State,
Washington.
191, February 11, 6 P. m. (SECTION THREE)
(introduced?)
The Government has instructed a measure before
Parliament which provides for a modification of Article
Eight of the Monetary Law of October 1 last relating to
the negotiation and importation and exportation of gold.
The Senate has held up the proposal for further examination and it appears that the legal and financial committees will make a study of the project and expect to make
their report on Tuesday, February 16. An opportunity has
not yet been had to study the proposed modifications but
according to the Journal Officiel it relates to penalties
applicable to infractions of Articles 628, 629 and 631
of the customs code which govern exports of gold.
The Senate Finance Committee yesterday deleted
from the 1936 Supplementary Credits Bill in which it had
been embodied the clause approved by the Chamber modify-
ing Article 6 of the Monetary Law of October 1 last
referred to in my telegram of yesterday. The proposed
modification
373
LMS 2-70. 191, February 11, 6 p. m., Sec. 3, from Paris.
modification, however, with amendments proposed by the
chairman of the Gold Loans Committee will be considered
by the Senate early next week according to present plans.
The Parliament yesterday authorized the guarantee of
the state to the loan issue of 600 million francs by
Czechoslovakia referred to in my telegram 173 of February 6. The issue is intended to reimburse the Czecho-
slovak loan maturing on Ahril 1 next and is to run for
ten years.
(END OF MESSAGE)
BULLITT
CSB
374
February 11, 1937
Miss Tully called the Secretary and told him she
had a private matter to take up with him and asked permission to come right over. The Secretary, of course,
told her to come at once.
She was received by Mrs. Klotz in her office and
said, quite emphatically, that the President wanted her
to see HM,Jr. alone and that no one else was to be in the
room.
The Secretary had some people in his room and
he sent them all out and asked Miss Tully to come in.
She then handed him the attached note from the President
with its attachments.
Up to this point, HM,Jr had taken Miss Tully's
request for an interview with all seriousness and had no
idea the President was playing a joke on him. Upon reading the President's message he shrieked with laughter because the President still continues to kid him about
Mrs. Rainey.
375
THE WHITE HOUSE
WASHINGTON
February 11, 1937.
Dear Henry:-
This seems to be a
matter 80 personal to you that
I know you will want to help
your old friend Mrs. Rainey.
Considering the long separation,
I am sure your Elinor would not
mind.
F. D. R.
Deary -
376
CHICAGO BOOK AND ART AUCTIONS. INC.
410 SOUTH MICHIGAN AVENUE
CHICAGO. ILLINOIS
F. J. MEINE
WABASH
Managing Director
February
Sixth
1937
THE
FEB 8 WHY T HAPPY
Hon. Franklin D. Roosevelt,
Washington, D. C.
My dear Mr. President:-
At the request of Mrs. Henry T.
Rainey, I am sending herewith, a copy, of our
auction catalogue, containing a selection from
the late Speaker's library.
Both the late Speaker and Mrs. Rainey,
were quite active in Boy Scout and Girl Scout work,
in Carrollton and vicinity. Mrs. Rainey intends to
use the proceeds from this sale to further her work
among the boys and girls, for which she deserves
a vote of thanks from all Americans.
I would consider it a personal honor,
to execute any bids that you may desire to submit.
Respectfully yours,
Johnson
George W. Schoenbeck
GWS/MB
Encl.
RARE AND FINE BOOKS
Secretary and Treas.
Chicago Book and Art Auctions.
ETCHINGS
377
SALE No. 77
Selections From the Library
of the Late
Hon. Henry T. Rainey
Speaker, House of Representatives
PUBLIC AUCTION
Thursday and Friday
February 18th and 19th
8:00 P. M.
PUBLIC EXHIBITION
Saturday to Friday
February 13th to 19th
9 A. M. to 9 P. M.
Chicago Book & Art Auctions, Inc.
410 South Michigan Ave., CHICAGO, ILL.
Wabash 8879
and
MINIMUM ACCEPTABLE BID $2.00
CONDITIONS OF SALE
1. This sale is conducted by Chicago Book & Art Auetions, Inc., and the Directors reserve the right to determine
upon any conditions or circumstances attending the sale.
2. All bids are to be so much per lot as numbered in
the catalogue.
3. Terms cash. A cash deposit of 25% shall be made
at the time of sale, if requested.
4. Title passes when the auctioneer has declared the
lot sold and has named the buyer thereof. Thereafter the
property is entirely at the purchaser's risk. All articles
must be called for the following day from 1 to 6 P. M.,
Room 919 Fine Arts Building. For all out-of-town shipments an extra charge will be made to cover packing and
shipping. Articles not called for the following day, or not
paid for in full, may at the option of the firm be re-sold.
ALL SALES FINAL
5. All sales are final and without recourse. Exception
will be made only in cases of a flagrant violation of the
eatalogue description, and then only upon the approval of
the Manager of the firm. Magazines and other periodicals,
as well as miscellaneous lots of books or sets, are sold as
they are without recourse and without any exception.
6. Autograph letters, documents, manuscripts, inscriptions in books, etc., are sold as catalogued and without recourse. The firm will make every effort to determine the
authenticity and genuineness of all such material and to
describe it correctly, but it cannot be guaranteed.
7. The smallest unit of a bid is fifty cents.
8. A 3% sales tax will be added to the purchase price
on all sales, where legally applicable, to buyers in Illinois.
9. All bids, or offers, oral or written, are made subject
to the above Conditions of Sale.
V
FIRST SESSION
THURSDAY, FEBRUARY 18
Promptly at 8 P. M.
1 ADDISON. JOSEPH. The Free-Holder. Or, Political Essays. London,
MDCCLI. 12mo, contemporary calf. First Edition. Fine copy. Rare.
2 ADDISON, JOSEPH. The Life of Addison by Lucy Aiken. Extra-illustrated with 12 fine steel and copper engravings (portraits of Steele. Pope,
Swift and others of the period, etc.) 2 vols. post 8vo. 3/4 crushed morocco.
Gilt lettering and decoration on the backbone, t.e.g. London, 1843.
First Edition. Fine copy with a presentation inscription from the author
on the title-page of Vol. 1.
3 ADE, GEORGE. Ade's Fables. New York, 1914. 12mo, original cloth.
First Edition. Fine copy. With author's signed inscription on end-paper.
"THE STORY OF A BAD BOY"
4 ALDRICH, T. B. A. L. S., 3 pp. 12mo. Boston, Feb. 21, 1893. To Mr.
Chambers. Reads in part "I think that I lost thousands of readers by
calling my little autobiography 'The Story of a Bad Boy.' I know that it
has been excluded from several Sunday School libraries simply on account
of the title. To be sure it has attracted a great many persons; but I might
have had both classes of readers. If I had the book to name over again, I
should call it something else-'The Story of a Real Boy, for example.
The thing sells right along all the same.'
5 ALDRICH, THOMAS B. Autograph Manuscript Poem, 'A Ballad of Nan-
tucket." 9 verses of 4 lines each, signed, "T. B. Aldrich," and dated
March 30, 1857. On two leaves, 4to and 8vo, attractively framed with a
special portrait of Aldrich, a woodeut on Japan paper, frame measuring
161/2x20. A choice early piece.
THE RARE FIRST EDITION
6 ALDRICH, THOMAS BAILEY. The Story of a Bad Boy. With Illustrations. Boston. 1870. 12mo, original red cloth (cover soiled and worn;
backstrip torn about 1 inch at bottom of outer hinge).
First Edition of one of the rarest of American "High Spots." The extremely rare first issue, with "seattered" for "scatters" on page 14, line
20. and with "abroad" for "aboard" on page 197. line 10. Save for a
few slight time stains and the defects noted above, this is almost a good
copy of this important rarity.
7 ALDRICH, T. B. The Story of a Bad Boy. In "Our Young Folks," an
Illustrated Magazine for Boys and Girls. Boston, 1869. Vol. V. 8vo, calf
and boards (rubbed). 1 signature loose. The first printing of this famous
classic.
1
8 ALMANAC, AMERICAN The American Almanac and Repository of Use.
ful Knowledge for the Years 1830-42, inel. 12 volumes 12mo. calf and
boards (3 or 4 backstrips scuffed at tops). Also for 1854 and 1836 2
volumes. Original wrappers (backstrips seuffed). Together 14 volumes.
17 AMERICAN SPORTS. Sporting Scenes and Sundry Sketches of J.
Cypress (Wm. P. Hawes). Edited by Frank Forrester (H. W. Herbert).
New York, 1842. 2 vols., 12mo, original cloth. Binding slightly soiled,
9 AMERICA. A General View of the World, etc. Illustrated by upwards of
15th CENTURY MUSICAL MANUSCRIPT ON VELLUM
Contents fine.
900 engravings. By S. Augustus Mitchell. No place, 1842. Thick 8vo, original marble calf, tooled back. With large colored molding map of the flags
of the world.
First Edition The first 250 pages are devoted to North and South America.
One signature sprung. Fine copy.
10 AMERICANA American Historical and Literary Curiosities: consisting
of Facsimiles of Original Documents relating to the Events of the Revolution. etc. With a variety of Reliques, Antiquities, and Modern Autographs
Collected and edited by J. Jay Smith and John F. Watson, assisted by an
Association of American Antiquarins. Philadelphia, 1847. 2 volumes
Square folio, decorative cloth. Fine set.
11 AMERICAN AUTHORS A collection of 3 A. L. S., one of Edwin Booth
'87, declining an invitation to appear in Washington ; and 2 of Laurence
Barrett, Shakespearian actor of the Eighties, both dated 1889. Three fine
autograph letters.
12 AMERICAN HISTORIANS A collection of 5 A. L. S., mostly 1890-1895.
John Fiske (2, one typed). George Baneroft (at 88) and Alexander Brown.
Several of these refer to Com. Col. Charles Ellet, famed for his Mississippi
River battles, particularly Memphis.
13 AMERICAN MAGAZINE, EARLY. The American Muscum, or Universal
Magazine. Philadelphia, 1789-92. 8vo, old boards, 2 paper labels, 1 volume
rebacked, 1 binding broken, untrimmed Vols. 1. 4 and 6 of this early
American magazine. With the scarce list of subscribers in Volume 1. Contents very good.
14 AMERICAN NATURE WRITERS The Rocky Mountain Wonderland
By Enos A. Mills Illustrated Boston, (1915). Small 8vo. cloth Signed
by the author - Wild Animal Homesteads By Mills. Illustrated by will
James New York, 1923. Small 8vo. cloth Over Against the Peak. By
Zephine Humphrey. Inscribed the author. New York, (1908). 12mo. eloth.
Together 3 fine volumes.
15 AMERICAN REVOLUTION The Naval Monument, containing Official
and Other Accounts of All the Battles Between the Navies of the United
States and Great Britain With 25 engravings, etc. 8vo, calf. First Edition. Soiled and worn: a few pages torn at corner margins, damaging the
text to a slight extent. Lacks end-papers. This is, however, a tight copy.
16 AMERICAN REVOLUTION The Women of the By Elizabeth F. Elleit
In 3 volumes New York, 1852-3. 12mo, original cloth; backstrip chipped
at top and bottom: some foxing 1 signature loose contents otherwise very
good. Vol. 3 is one from a different set.
contents fine. First Edition
18 ANTIPHONER ON VELLUM. Fine Musical Manuscript of the Middle
15th Century. 124 leaves, large folio, 23x16 inches, in an unusual conten-
porary stamped leather over oak boards binding, slightly repaired with
most of the original brass bosses and all of the brass corner pieces intact.
First page within decorative border, large rubricated letters Italian,
circa 1450.
19 ARCHITECTURE AMERICAN. Historic Houses of South Carolina. By
Harriette Kershaw Leiding. With 100 Illustrations from Drawings by
Alfred Hutty, Photographs and Prints. Philadelphia, 1921. Thick royal
Svo, original cloth. First Edition Front end-paper stained, otherwise a
fine copy.
20 ARCHITECTURE Discourses OR. By Eugene Emmanuel Viollet-le-Due
Translated, with an Introductory Essay, by Henry Van Brunt. Illustrated
with plates and woodeuts Boston, 1875. Small imperial 8vo. cloth. First
Edition. Binding broken. Contents fine.
21 ART. Grinling Gibbons and the Wood-Work of His Age. (1648-1720).
By H. Avray Tipping. London, 1914. Folio. half boards, (corners scuffed),
white cloth back with gilt lettering, paper label on cover.
Fine copy, with d. W. Contains 233 illustrations throughout the text, including many full-page plates representative of the work of the most important artists in the Decorative Arts in England.
SMITH'S CATALOGUE RAISONNE
22 ART. A Catalogue Raisonne of the Most Eminent Dutch, Flemish and
French Painters with Biographical Notices of the Artists. By John Smith.
London, 1829. Nine volumes, including the Supplement Royal 8vo, attractively bound in half red morocco, g.e.
This elaborate work is indispensable to collectors of paintings Fine set.
23 ATHERTON, GERTRUDE. The Conqueror. A Dramatized Biography
of Alexander Hamilton. New York, (1916). Large 12mo. cloth Revised
edition, from new plates. Very fine copy.
Author's Presentation Copy. with signed inscription on front end-paper.
24 BACHELLER IRVING. Silas Strong, Emperor of the Woods New York,
1906. Large 12mo. original cloth. First Edition. Fine copy.
With author's inscription signed and dated, of an epigram from the book
on front end-paper.
3
2
MANUSCRIPT EDITION
25 BANCROFT, HARLOW P. A. L S., 2 pages, 12mo, New York, Oct. 16,
1882. to Wendell Philips, regarding a book he is sending. About 50 words.
35 BEVERIDGE, ALBERT J. Abraham Lincoln. Boston and New York.
26 BANCROFT, HUBERT HOWE. The Book of the Fair, An Historical
and Descriptive Presentation of the World's Science, Art, and Industry,
as Viewed through the Columbian Exposition in 1893. Chicago and San
Francisco, 1893. Wide elephant folio, 3/4 original pigskin and boards, gilt
tops. 11 volumes, including a set of extra plates in portfolio.
The De Luxe Author's Edition, limited to 150 numbered sets, this being
No. 4. signed by Hubert Howe Baneroft, the distinguished author. As new,
with original d. W., each volume in a separate box, as issued. The most
monumental memento of the world famed Fair of 1893, and one of the
scareest of Baneroft items.
27 BANDAR LOG PRESS Poker Rubaiyat. By Kirke La Shelle. Phoenix,
Arizona, 1902. - Where is Ray Brown By Kirke La Shelle. Asheville,
N. C., 1902 - Her Navajo Lover, By W. H. Robinson Phoenix, Arizona,
1903. Together 3 volumes, original illustrated paper covers
28 BARRIE, J. M. Courage London, (1922) 8vo, original white cloth
(slightly soiled) with gilt lettering.
First Edition, fine copy. One of a small number of large-paper copies
29 BARRIE JAMES M. Sentimental Tommy. London, 1896. 12mo, buckram
First Edition Fair copy.
1928. Large 8vo, original boards, cloth backs, paper labels, deckle edges.
Four volumes.
Manuscript Edition limited to 1,000 numbered sets. Mint copies with dust
wrappers.
36 BIBLIOPHILE LIBRARY, THE The Bibliophile Library of Literature,
Art and Rare Manuscripts. Introductions by Andrew Lang and Donald G.
Mitchell. Compiled and arranged by Nathan Haskell Dole, Forrest Morgan,
and Caroline Tieknor 30 volumes International Bibliophile Society,
(1904). Large 8vo, original green buckram, paper labels, g. t. Member's
Edition de Luxe, limited to 1,000 numbered sets Very fine set.
37 BIBLIOGRAPHY. A Bibliography of The King's Book or Eikon Basilike,
By Edward Almack. London, 1896. Large 4to. original black cloth (corners
worn).
Large Paper Edition limited to 150 numbered copies Signed by the publishers.
38 BIBLIOGRAPHY The Librarian By James Savage. London, 1808. Thick
8vo, old tooled calf (front cover loose). contents fine. Two vols. in one
Contains important bibliographical information including an "Analysis of
Books.
30 BASKERVILLE PRESS. Paradise Lost. By John Milton. From the text
of Thomas Newton, D.D. Birmingham, 1759. Engraved portrait by T.
Miller. - Paradise Regained. To which is added Samson Agonistes and
Poems upon Several Occasions. By John Milton. Birmingham, 1759. To
gether two volumes, 4to. gilt tooled brown morocco, dentelles, gilt edges.
Fine copies.
31 BAYLY, THOMAS HAYNES. Weeds of Witchery. London, 1837. 8vo,
original panelled cloth (somewhat soiled).
First Edition, by "the Author of many successful comic dramas, and many
popular serious Ballads. Contains 12 spirited comic plates. Contents fine.
32 BEARDSLEY, AUBREY An Issue of 5 Drawings Illustrative of Juvenal
and Lucian. Foolscap folio, vellum paper, in red half morocco slipease,
inner cloth wrappers Limited to only 120 numbered copies.
33 BEARDSLEY, AUBREY Aubrey Beardsley's Drawings to Illustrate the
Tales of Edgar Allan Poe. Chicago, Herbert S. Stone & Company, 1901.
Limited to 250 numbered copies. Six Drawings Illustrating Theophile
Gautier's Romance, Mademoiselle de Maupin. London. 1898. Limited to
50 numbered copies initialled by the publishers. Together 2 sets of drawings, in half red morocco slipease, inner cloth wrappers, folio.
34 BENNETT. ARNOLD The Old Wives' Tale. New York, no date. Post
8vo, original cloth. Fine copy.
39 BIBLIOGRAPHY. A Bibliography of Oliver Wendell Holmes. Compiled
by George B. Ives. Boston and New York, 1907. Portrait. 8vo, orig. cloth
Limited to 530 numbered copies. Fine copy. Designed by Bruce Rogers.
40 BINDING, FINE. Modern Scientific Whist. By C. D. P. Hamilton. New
York, 1899. Some writing in text. Square post 8vo. beautifully bound in
full brown crushed levant, raised bands, gilt borders and edges, with appro-
priate playing card symbols as corner decorations on covers. Very fine
copy, boxed.
41 BLACKMORE R. D. A. L. S., 4 pages, large 32mo, Teddington, August
7th, 1887, to a dear friend. A splendid letter, by the author of "Lorna
Doone," mentioning the sudden loss of his left hand as a motive power.
In part: "I thank your son for his soft and touching lines about the dear
friend you have lost. whom many in this country mourned for. I was reading some of your husband's poems once again, and the beauty of the thought
made me wonder whether his son can write in like strain. We are suffering
from the worst and largest drought that I can remember,' etc. About 240
words,
42 BLACKWOOD ROBERT A. L S., 2 pages, post 4to, Edinburgh, May
12th, 1837, regarding the contemplated publication of a new edition of
Mrs. Hemans' works. About 200 words.
5
Author's signed Presentation Copy. Xmas, 1912.
4
43 BLAINE, MAHLON. Black and white, wash drawing, 13x18 Moslem
Cemetery, Istamboul. Initials, M. B.
56 BROWNE, J. ROSS Adventures in the Apache Country: a Tour through
Arizona and Sonora, with Notes on the Silver Regions of Nevada. Illustrated by the Author. New York, 1869. 12mo, original cloth. First Edition.
Name in ink ai top of title-page. otherwise a very fine copy of a very scarce
44 BLAINE MAHLON 4 caricature sketches erayon, ink and pencil of John
D. Rockefeller, Bernard Shaw. Cecil De Mille, and self-portrait. About 8x10.
book.
45 BLAINE. MAHLON Colored Crayon Drawing of female nude seated,
57 BROWNING, ELIZABETH BARRETT. A. L. S., 12mo, intimate per-
12x16 inches.
sonal note of appreciation and invitation to Sunday Tea. No place, no date,
probably in Italy. Also A. L. S. from Theodore Tilton referring to Mrs.
Browning's contributions and correspondence to the "Independent."
46 BLAINE. MAHLON 2 Crayon Drawings in color on black paper, city
sketches, one 15x20 inches, and one 9x11 inches
58 BROWNING, ROBERT Aristophanes Apology London, 1875. 16mo,
cloth. First Edition Fine copy.
47 BLAINE, MAHLON 3 Crayon drawings in color on black paper. Head
of a woman, and 2 sketches, presumably illustrations About 12x14 inches.
59 BROWNING ROBERT. Fifine at the Fair. London, 1872 - Asolando,
London, 1890. Name at top of title. Together 2 First Editions, 16mo, cloth.
48 BLAINE, MAHLON Original water color, 14x19 inches, exotic design in
several bright colors of nymph-like woman embracing a tree. Signed.
Nice copies.
49 BLAINE. MAHLON. 2 water color sketches and drawing One landscape,
very sketchy; and one poster-effect for costume ball design, gaily colored,
with mask. Both are signed in full, 1918 and 1926 respectively.
60 BROWNING ROBERT The Prince Hohenstiel-Schwangau, Saviour of
Society. London, 1871. 16mo, cloth. First Edition Fine copy.
61 BUNGENER, L. F. France Before the Revolution: or. Priests, Infidels,
and Huguenots in the Reign of Louis XV. Edinburgh, 1854. 12mo, 3/4 red
calf, backs faded, marble boards, gilt top. Two volumes Nice set.
50 BLUNDEN, EDMUND Masks of Time. A New Collection of Poems, Prin.
cipally Meditative (The Beaumont Press, Westminster 1925.) 8vo, decorative boards and buckram. deckle edges. First Edition limited to 310 numbered copies on handmade paper. Very fine copy.
62 BURKE SIR BERNARD Family Romance: or. Episodes in the Domestic
Annals of the Aristocracy 2nd Edition In 2 volumes. London, 1854. Tall
12mo. % green morocco, tooled backs, raised bands, gilt tops. Fine set.
51 BONNER W. H. The Case of Summerfield Introduction by Geraldine
Bonner Frontispiece. San Francisco, (1907). Wide 16mo, boards and
vellum. First Edition, printed by John Henry Nash and limited to 1,000
63 BURTON, CAPTAIN SIR RICHARD F. The Life of. By His Wife.
Isabel Burton With numerous portraits, illustrations, and maps In 2
copies on handmade paper. Mint copy in original decorative box.
volumes, A nice set of the famous Pickering edition.
volumes New York, 1893. Thick 8vo, decorative cloth. The First Edition
sheets with D. Appleton & Co. imprint. Fine set.
4
52 BOSWELL JAMES The Life of Samuel Johnson, LL.D. Oxford. William Pickering, 1826. 8vo. original cloth. paper labels, deekle edges.
64 BURNETT. FRANCES HODSON Little Lord Fauntleroy. New York,
1886. Square 8vo. original cloth. First Edition of this famous child classic.
53 BRADFORD ROARK ou Man Adam and His Chillun. With Drawings
by A. B. Walker New York. 1928. Large 12mo, original boards and eloth
First Edition of the author's first book. Nice copy.
54 BROCK ILLUSTRATIONS Travels into Several Remote Nations of the
11 orld. By Lemuel Gulliver. With a Preface by Henry Craik And 100
Illustrations by Charles E. Brock. London, 1894 12mo, original gilt decorative cloth, g.e. First Edition with these illustrations Nice copy.
55 BROWN, WILLIAM H. Portrait Gallery of Distinguished American , ifiZCRS, with Biographical Sketches, and Faesimiles of Original Letters. Hart
ford, 1845 Large atlas folio, original buckram. (New York, 1931.)
As new The G. A. Baker & Co. re-issue, limited to 600 numbered co es
With the DeVinne eolophon at end of text. Fair copy, repaired at hinges,
library rubber stamps on inside of covers, etc.
65 BURNS, ROBERT The Works of With an account of his Life, and a
Criticism on his Writings, and some observations on the character and
condition of the Seottish peasantry. London, 1801. Four volumes. 8vo,
tooled brown calf. Frontispiece portrait, vignettes on titles, and many fine
engravings by Stothard. A fine set, in an attractive binding. of the second
complete London edition.
66 BURROUGHS, JOHN. Ways of Nature. Boston, 1905. 12mo. original
cloth. First Edition (part of the Riverside edition limited to 1,000 sets).
Fine copy, signed by the author on title-page.
7
6
67 BURTON. JOHN HILL The Book-Hunter, etc. With a Memoir of the
Author. Edinburgh, 1882. Large square 8vo, buckram, uneut
The Second Edition, large paper, limited to 1,000 numbered copies Nice
74 CABELL JAMES BRANCH Cords of Vanity. N. Y., 1909. 12mo. original red cloth.
First Edition, first issue. with "Cords of Vanily' on spine. The white let-
copy, partly unopened.
tering on the spine has been partly worn off. as usual, and there is a slight
68 BUTLER ELLIS PARKER. Pigs is Pigs. Chicago, 1905. Compliments
of Railway Appliances Company. Square 12mo, original illustrated paper
covers Printed for private distribution in December, 1905 First published edition appeared in 1906.
ORIGINAL BOOK MANUSCRIPT
69 BYRNE. DONN. Crusade The original Autograph Manuscript. signed 3
times, 230 pages entirely in Byrne's own hand, fine manuscript beautifully
written of one of his best books Autograph manuscripts by Byrne are
excessively rare.
water stain on the front cover. otherwise a very good copy.
75 CABLE, GEORGE W. Old Creole Days. New York, 1879. 12mo, original
cloth. First Edition of the author's first book Binding somewhat warped;
rear cover somewhat crinkled; otherwise a fine elean sound copy of this
searce "High Spot."
76 CALIFORNIA The Annals of San Francisco By Frank Soulé, John H.
Gihon, M. D., and James Nisbet. Illustrated with 150 fine engravings.
New York. 1855. 8vo. leather and mottled boards, Very good copy, with
the searee large folded map, usually lacking. in front of text.
77 CALIFORNIA The Mammoth Tree Grove, Calaveras County. Drawn and
published by Edward Vischer. San Francisco. Cal., 1862. Pictorial cover
and plates 2, 6, 7. 11, and 12. Fine condition
VERY FINE COPY
MR. AND MRS. BROWNING'S COPY OF CALLIMACHUS
70 BYRNE, DONN. Stories Without Women (And a Few With Women.)
Illustrated New York, 1915. Large 12mo, original cloth.
The extremely rare First Edition of the author's first book. Save for
a tiny tear (about 1-16 inch) at top of backstrip, this is an exceptionally
fine copy. with the white lettering on covers and spine perfectly bright
and intact.
BYRON ON MORALITY
71 BYRON, LORD. A L 8. 5 May, 1821, 2pp. 8vo in Byron's characteristic
large hand. The letter reads in full, My dear Sir, I open the packet
78 CALLIMACHUS Hymns and Epigrams. Glasgow. 1755. Greek text, with
title in Greek and Latin. Square 8vo. old calf and marble boards. In full
green grained calf slipease, inner cloth wrappers Fine copy.
An extraordinary Association Copy. with Elizabeth Barrett's name and a
note. both in her handwriting at top of title. and the word "Browning"
written underneath by Robert Browning thus linking intimately a hushand and wife whose joint literary and romantie history is perhaps the
most fascinating episode in the entire annals of English literature. It is
to be presumed that this copy originally belonged to Robert. who gave
it to Elizabeth It contains moreover, 6 critical notes in Mrs. Browning's
beautiful hand. in Greek and English. totalling about 70 words, written
in the margins A more desirable Association Copy can hardly be imagined.
sealed a quarter to 4 P. M. in order to add a few lines. I have not begun
with the Quarters-but let them look to it. As for Milman (you well know
that I have not been unfair to his poetry even) but I have lately had
some information of his critical proceedings which may bring that on
him he will be sorry for. I happen to know that of him which would anni-
79 CARLETON, WILL Autograph MS. 5 pages post 4to. "The Ballad of
Solomon." A fine long ballad by the famous author of "Farm Ballads
Together with 4 A. L. S., various dates and sizes In half red erushed
sentimental twaddle let the carrion crow erash-I wont say anything for
80 CARLYLE THOMAS Chelsea, 25. Jan.. 1848. 3 pp. 12mo. referring to
Kingsley's Book. Fraser's Magazine and his friend Emerson Reads in
fear of being indelicate-You ever. Byron."
72 (BYRON. LORD.) Don Juan. London, 1819. 4to. old calf (rebacked),
tooled borders, (rubbed). Cantos I and II only. First Edition.
73 CABLE, GEORGE W. Gidcon's Band, A Tale of the Mississippi. Illustrated by F. C. Yohn. New York, 1914. Large 12mo, original cloth. First
Edition Very fine copy.
With signed inscription by the author on end-paper. With A. L. S., 1 page,
8vo. presenting a copy of "The Cavalier."
part.
I think it would be handsome and proper to send valued
Emerson.
The and
friend
American, an edition or Publisher's copy
he
was
a
hilate him-whe he pretends to teach morality-as to the old Despots
levant moroeco slipease.
correspondent of the deceased."
81 CARRINGTON IMPRINT. The Chastisement of Mansour. By Hector
France. Translated by Alfred Allinson, Paris, Charles Carrington, 1898.
8vo, original light cloth (cover somewhat soiled).
First Edition. in English, of this beautifully written exotie work With
nice illustrations and frontispiece in color. Very good copy
82 CAXTON CLUB. William Caxton. By E. Gordon Duff. Chicago, The
Caxton Club, 1905. 4to. original boards and linen, paper label, deekle
edges. With 25 full-page plates. Limited to 252 copies on hand-made paper.
Fine copy of this rare and important work on the achievements of one
of the greatest printers.
83 CARTOONS CHICAGO. Current Cartoons, being a Collection of Flashes
by the Live Wire Cartoonists of Chicago, wherein they make Light of Eleetricity. A Series which illuminated the Chicago Newspapers during the
Electrical Show, Coliseum, Jan. 16-30, 1909. Compiled by William D. Me
Junkin (Chi., 1909.) Small folio, original suede. With A. L. S. of John
T. McCuteheon mounted on front end-paper. Fine copy.
84 CARTOONS Oh Skin-nay! The Days of Real Sport. By Briggs. Verses
by Wilbur D. Nesbit. Chi., (1913). Large oblong 4to, original illustrated
boards and linen. First Edition Presentation copy, with an original
cartoon by Briggs on fly-leaf, and signed by Briggs and Wilbur D. Nesbit.
Very fine copy.
91 CHARLES L An Exact and Most Impartial Account of the Indictment,
Arraignment, Trial and Judgment (according to Law) of Twenty Nine
Regicides, the Murtherers of his Late Sacred Majesty, of most Glorious
Memory Begun at Hicks-Hall on Tuesday, October 9. 1660. Together with
a Summary of the Dark and Horrid Decrees of those Caballists, Preparatory to that Hellish fact. Small 8vo, choice old full panelled calf, (rubbed),
red edges. London, 1679. With book-plate of John Carill Worsley, and
his signature on fly-leaf.
First Edition. Scarce. Contents fine. An extraordinary book-its history
is little known.
92 CHATEAUBRIAND VISCOUNT DE. Sketches of English Literature.
London, 1836. Two volumes, 8vo, half calf (rubbed). First English edition.
93 CHESTERFIELD, LORD. A. L. S., London, 3 Sept. 1739, 2pp. sq. Svo,
regarding England's land and sea forces, and the impending Spanish
conflict.
It is declared that we are to have forty thousand land forces to secure
us against dangers. France will not concern itself in our quarrel with
Spain
85 CARTOONS OLD AMERICAN. Caricature Twenty Years Ago. A Glance
Backward. By Thomas Nast, 1893 - Let Them All Be Crowned Laurel
Wreaths for the men who made the Columbian exposition. By Art Young.
(1893). Together 2 cartoons, folio, on cardboard
Parliament meets in November, money being wanted."
94 CHICAGO IMPRINT, ANTE-FIRE Pen Pictures; or, Sketches from
Domestic Life. By Mrs. M. A. Livermore. Chicago, S. C. Griggs & Co.,
1862. 18mo. original cloth. First Edition Lacks front end-paper. Fine
copy.
86 CARTOON Original pen-and-ink cartoon of Theodore Roosevelt. by Bradley, depieting Mahomet seated a distance from a mountain labeled
The cartoon. entitled "Will the Mountain Come to Mahomet carries the
following presentation inscription in ink: To Florence, with the compliments of the cartoonist-Lather (Bradley).
87 CASANOVA JACQUES The Memoirs of. Complete in 12 volumes as
translated by Arthur Machen with an introduction by Arthur Symons and
a new preface by the translator and 12 drawings by Rockwell Kent. Privately printed for subscribers only. Aventuros, 1925. Royal 8vo. cloth,
gilt decorated backstrips Very good set of this excellent edition
88 CAXTON CLUB. The Caxton Club Scrap-Book. Early English Verses,
1250-1650 Chosen and collocated by John Vance Cheney. Chicago The
Caxton Club, 1904. Wide 8vo. original boards and cloth. paper label.
Limited to 250 copies on hand-made paper. Fine copy.
95 CHICAGO. History of the Board of Trade of the City of Chicago. In 3
Volumes Illustrated. Chicago, 1917. Royal 8vo, 3/4 brown morocco, gilt
lettered backs, gilt tops. Very fine set.
96 CHITTEMDEN, HIRAM MARTIN. The American Fur Trade in the Far
West. Map and Illustrations. 3 volumes New York, 1902 Royal 8vo,
original cloth.
The most authoritative and comprehensive history of the early American
fur trade. One fly-leaf lacking. and name in ink on another, otherwise a
very good set of this important work.
97 CHURCH OF ENGLAND Episcopacie by Divine Right. Asserted by Jos.
Hall. London, 1640. Wide 8vo, old calf (badly worn.)
Margins of last 50 pages worn. Re-binding copy. Rare.
98 CIVIL WAR McKean Papers Relating to the Battle of Corinth Original
and documents of Brig. Gen. Thomas J. J. McKean relating to the
papers Battle of Corinth 90 pieces. 12mo, to folio. Corinth. Sept. 16. 1862. to
89 CAXTON CLUB. An Attic Philosopher in Paris: or, A Peep at the World
from a Garret, Being the Journal of a Happy Man. From the French of
Emile Souvestre. Chicago, The Caxton Club. 12mo, original cloth. Limited to 200 copies. Very fine copy, boxed.
90 CHAMBERS ROBERT W. Cardigan. Illustrated New York. no date
12mo, cloth. Very fine copy, inscribed and dated by the author.
10
Oct. 30, 1862. In half blue morocco slipease, folio
A collection of utmost importance as to the details of this major campaign. collection
Including his appointment to the command and final report. The The
contains field dispatches, reports of commanding and minor officers
mss. vary in size from one page to 12 pages folio. Many famous names are
signed to various orders, Grant, Rosenerans, Kirby.
11
99 CLASSICS FACETIUS The Amours of the Chevalier de Faubles By
John Baptiste Louvet de Couvray. A Literal Unexpurgated Translation
from the Paris Edition of 1821. With Numerous Beautiful Engravings
etched by Louis Monzies from Drawings by Paul Avril Edition strictly
limited to 100 copies. London, privately printed for the Société des Bibliophiles, 1898 Small 8vo, cloth and boards, gilt tops, other edges untrimmed. 4 volumes Bindings somewhat soiled, otherwise a fine set.
100 CLAY. REV. J. C. Annals of the Swedes OR the Delaware, from their first
settlement in 1836 to the present time. 2nd ed., corrected and enlarged.
Philadelphia, 1858. 12mo, original cloth. Author's presentation copy, with
signed inscription on title-page, and autograph signature on end-paper.
Nice copy.
FIRST COPY OFFERED FOR SALE
105 (CLEMENS, SAMUEL L.) Recived Remarks on Mark Tream By George
Ade. Also the address of John T. McCuteheon, commemorating the Cen-
tenary of Mark Twain's Birth Compiled by George Hiram Brownell.
Chicago, 1936. Limited to 500 numbered copies, signed by George Ade.
No. 184. 12mo, 36 pp., printed pictorial wrappers.
Pamphlet contains 3 articles by George Ade on Mark Twain; several rare
early caricatures of Mark Twain: an original eartoon of Ade prepared by
McCuteheon for this publication and autographed by him: a frontispiece
portrait of Ade, autographed; and the pamphlet is also signed by the
compiler, George H. Brownell. A choice collector's item for all Mark
Twain fans.
THE GILT-EDGED FIRST ISSUE OF "TOM SAWYER"
MENTIONING JOAN OF ARC AND DREYFUS
101 (CLEMENS, SAMUEL L.) The Adventures of Tom Sawyer. By Mark
Twain Hartford, 1876. Square 8vo, original blue cloth.
106 CLEMENS, SAMUEL L. Autograph Letter Signed. Two pp. Svo. Sep-
The excessively rare First Edition, first issue, with gilt edges and measuring
1" across top of covers, and with half title and preface versos blank.
Binding somewhat rubbed in a few places, as usual. and some small stains
on back cover: this is otherwise a very good. sound. clean copy of one of
the rarest and most important of American first editions. This copy is
especially noteworthy, as it contains the correct three blank fly-leaves at
front and back.
102 (CLEMENS, SAMUEL L.) Adventures of Huckleberry Finn. By Mark
Twain With 174 Illustrations New York, 1885. Square 8vo, original
green cloth.
The rare First Edition of this famous book. with the points: page 283 on
a stub; the second 5, page 155 extends slightly below the first 5. Insignifieant stain at bottom of front cover, light pencil inscription on front endpaper. these insignificant and one edge defects, of circular this is pasted a clean. on bright, inside sound of back copy cover. Save for
103 (CLEMENS, SAMUEL L.) A Connecticut Yankee in King Arthur's
Court. By Mark Twain. New York, 1889. Square 8vo, original cloth.
First Edition Binding broken at front inner hinge, and covers somewhat
spotted Contents very good and clean.
104 (CLEMENS, SAMUEL L.) The Tragedy of Pudd'nhead Wilson. and the
Comedy, Those Extraordinary Twins By Mark Twain. With Marginal
Illustrations Hartford, 1894. 8vo, original cloth.
First Edition Inscription on recto of frontispiece, and front cover slight
spotted, otherwise a very good clean sound copy of this scarce book.
tember 15, 1899.
An extraordinarily fine letter of over 300 words, written to his English
publisher, Murray, while he was working on his biography of Joan of Are.
He is extremely anti-French, his letter reading in part:
"There is something very Frenchy about the cheeky interest (and complacent) which that exerescence of the human race take in Joan of Are.
In a bookshop window in Rouen I saw a bibliography of their contributions
to her literature containing 3,000 titles, 99 hundredths of that must have
been written since 1848; five centuries hence they will find something to be
vain about in their treatment of Dreyfus.'
"How lucky that they condemned him again. If I hadn't been supported
and encouraged by my deep trust in their innate and hereditary rottenness,
I should have been afraid, at times, that they would strike a lucid interval
and save their country that final smirch.
107 CLEMENS, SAMUEL L Autograph Letter Signed. Four pp. 8vo. September 3, 1899.
Also written to Murray on the same subject as the preceding, over 400
words. "Yes, it (the Dreyfus trial) does remind me of the Rennes trial.
I had a paragraph in my Introduction particularising the twin-resemblances, and suggesting that French character has not improved in five
centuries, but Mrs. Clemens knocked it out. "I was never likely to profane
Joan's lips with words which she had not uttered or attribute to her an
important act which was not drawn from history."
108 CLEMENS, SAMUEL L. Autograph Letter Signed. Two pp. 8vo. August
25, 1899.
Again addressed to his publisher on the subject of his biography of Joan of
Are. Clemens indulges in a number of witticisms and a long description of
the beauties of Sweden. About 300 words
13
12
109 CLEMENS, SAMUEL L. Autograph Letter, 1 p., 8vo. Sweden, August
29. 1899.
To his publisher referring to Joan of Are. reading in part: **I have
finished the introduction. & have discarded a third of it, & have in various
ways reduced it & compacted it & got it to suit Mrs. Clemens & myself
About 150 words, incomplete, not signed.
110 CLEVELAND GROVER 2 Autograph Letters signed, 1890 and 1897
One letter 2 pp., 12mo, with envelope, regretting inability to give a lecture,
and one short autograph note signed in full.
111 CLOCKS Old Clocks and Watches and Their Makers With 400 illustra
tions, many from photographs. London 1899. 8vo. original cloth. Fine
copy. Scaree.
112 COBB, IRVIN S. 'Speaking of Operations." Illustrated by Tony Sarg
New York. (1915). 12mo, boards. First Edition Very fine copy. With
4 L. S. and 1 T. L. S., with addressed envelopes, laid in.
113 COINS, GOLD AND SILVER Neueste Illustrirte Münt-, Maass- and
Gewicktskunde und kurze Handelsgeographie aller Lander mit Abbilding
und Beschreibung der jetzt coursirenden Gold- und Siber-Munzen, etc.
Herausgegeben von Dr. Alexander Lachmann Leipzig, 1860. Thick Svo.
morocco and boards (scuffed). Numerous full-page plates with gold and
silver colored engravings 1 volume only. Some pages foxed. Good copy.
114 COLERIDGE SAMUEL TAYLOR The Rime of the Ancient Mariner.
With ten engravings on copper by David Jones. Bristol, 1929. 4to. linen
cloth, gilt top, other edges untrimmed.
Printed by Douglas Cleverdon at the Fanfare Press, and limited to 60
numbered copies signed by the artist and containing a set of engravings
in final state. Fine copy.
115 COLLINS, DALE Sea-Tracks of the Speejacks Around the World. With
an Introduction by Jeanne Bouchet Gowen Many Illustrations from Photographs New York, 1923 Tall 8vo. original cloth. Very fine copy.
116 COLLINS, WILKIE A. L. S., 2 pages, 18mo. Ramsgate, 2nd August, 1886,
to Frederiek E. Kitton A fine letter mentioning Charles Diekens In part:
"I abstain from adopting your suggestions, out of consideration for the
wishes of Dickens himself. He more than once expressed to me his dislike
of being presented to public euriosity by means of pen-portraits, and his
desire to be only known to the great world of readers after his death by
his books.'
118 COLORADO Rambles in the Rocky Mountains: With a Visit to the Gold
Fields of Colorado By Maurice O'Connor Morris, London, 1864 Name
on fly-leaf; otherwise an exceptionally fine copy, as new.
119 COLORED ILLUSTRATION EARLY Facsimiles of Illuminated MS.,
Unpublished Drawings and Illustrated Books of Early Date. Bernard
Quariteh London. 1890. Royal 8vo. paper cover (lacks rear wrapper).
Together with some 25 facsimile pages of early illuminated books, MS., etc.,
various sizes, in folder.
120 TOMLIN. WILLIAM A. The Ships that Sailed to Mars. A Fantasy. Illustrated with full page color plates in a Rackham-Parrish manner. London,
n.d. 4to. original boards and vellum. Mint copy. with d.w. First Edition
121 COLORED LITHOGRAPH Henry Clay of Kentucky. No date (contemporary). Folio size, inclosed in glass, in dark heavy wood frame
122 COLORED LITHOGRAPH. Washington, (George). Folio Ca 1820.
Enclosed in glass, in heavy light brown wood frame.
123 COLOURED SPORTING PLATES The Chace. the Turf. and the Road,
By Nimrod. New edition. With portrait of author and illustrations London. 1870. 12mo. original illustrated cloth. Cracked at hinges. Contents
very good.
124 COLORED SPORTING PLATE. FRAMED Fore's Sporting Scraps
"Hunting, from original paintings by F. Ceeil Boult London, 1887. Four
seenes on one sheet 20x25".
125 COLORED SPORTING PLATES, FRAMED Four seenes, 'Fox Hunting," Going Out, Going Into Cover, The Check The Death, all painted by
G. Morland and engraved by E. Bell. London, 1800-1. Four reproductions
framed
126 COMMERCIAL PRICE LISTS, OLD Collection of 6 sheets, Svo and post
4to. mounted on card boards, listing prices of commodities and dated,
London, 1756; Baltimore, 1803: Bordeaux. 1816; Mobile. 1837; another
list, Mobile, same year: New Orleans, 1840. Together 6 pieces, in fine
condition.
127 CONRAD, JOSEPH A Bibliography of the Writings of (1895-1920)
By Thomas J. Wise. London, Printed for Private Circulation Only. 1920.
Square 8vo. original printed boards One of only 150 copies printed Very
fine copy. Scaree.
128 CONFEDERATE IMPRINTS Three printed leaflets, 12mo. Army Orders,
1864. Richmond. Regulations as to use of Certificate of Indebtedness,
Bureau of Conscription covering grain control, and Quartermaster's
129 CONFEDERATE NEWSPAPERS. Daily Dispatch. Richmond, Va.. 1861.
Eight numbers as follows: Jan. 12, 16: Feb. 19: Mar. 8, 9. 12. 15 and Tour 18.
117 COLONIAL, AMERICAN Providence in Colonial Times. By Gertrude
Selwyn Kimball. Illustrated Boston, 1912 Royal 8vo, boards, paper label
First Edition Limited to 550 numbered copies. Fine, unopened copy.
14
Current accounts of the National Crisis, Virginia State Convention,
of Mr. Lineoln, Lincoln's Inauguration, and Lincoln in Washington
15
130 CONNECTICUT. The History of Woodstock By Clarence Winthrop
THE RED BADGE OF COURAGE
Bowen. The Plimpton Press, Norwood, Mass., 1926 Large 8vo. original
green cloth, g.t.
137 CRANE. STEPHEN The Red Badge of Courage. An Episode of the
Privately printed, and limited to 450 numbered copies, signed by the author
American Civil War. New York. 1895. 12mo. original buckram. yellow top.
Fine copy.
First Edition, the very rare first issue, with perfect type at page 225, last
line. Cover somewhat spotted: inscription on front fly-leaf; otherwise a
nice, clean, sound copy of this rarity.
131 CONNOR RALPH. Glengarry School Days. Chicago, (1902). Large 12mo,
original boards. First Edition The Sky Pilot. Chicago, 1901 12mo,
original cloth. Together 2 fine volumes, each with autograph inscription,
signed and dated, by the author, on front end-paper.
138 CRANE, STEPHEN The Red Badge of Courage N. Y., 1896. Second
edition of this "High Spot.' Choice copy.
139 CREASY, E. S. (A. L S.) Eminent English Author. "Fifteen Decisive
A FINE LETTER REFERRING TO THREE BOOKS
132 COOPER J. FENIMORE. A. L. S., 1 full page 4to. Phila 17. July, 1838,
to Mr. Bentley, his English publisher, referring to three of his books,
Sketches of Switzerland," 'Gleanings in Europe, and "History of the
Navy.'
"I shall select scenes, adventures interviews, etc., from what I have seen
all over Europe, put them in the order of time, etc. This will be a condensation of travels, rejecting the parts that are not distinctive, and yet
not throwing away the notes I have had so much pains in writing.
"I shall publish most probably in the Spring Naval Annals of the United
States, a work on which I have been employed for many years. I should
like this book to be printed in England, for I hope it will correct many
errors on both sides of the Atlantic."
133 (COOPER JAMES FENIMORE.) The Spy Unmasked; or, Memoirs of
Enoch Crosby, alias Harvey Bureh. the Hero of Mr. Cooper's Tale of the
Neutral Ground Being an Authentic Account of the Secret Services which
He Rendered His Country During the Revolutionary War. (Taken from
his own lips, in shorthand.) By H. L. Barnum Embellished with engrav-
Battles," etc., Kandy, Ceylon. 14 Feb., 1861. 12 full pages, 4to to 'Dear
Lusk' detailing his life in Ceylon.
140 CRUIKSHANK GEORGE. A. L. S., London, Feb. 7. 1874 Four full
pp. 8vo., to John B. Gough, the famous American temperance lecturer. A
very friendly letter discussing Cruikshank's work, the temperance cause,
and his hard luck Reads in part
"I am republishing some of my early works, the first one being Phrenologi-
with
disaprespect
cal Illustrations, done nearly 50 years back
pointments it really seems to be my fate to meet with them constantly for
four years I have been preparing some works to be published in photography, but after many attempts the party failed altogether in the process,
so there is all my time and money gone, etc.
to
141 CRUIKSHANK GEORGE More Mornings at Bow Street, A New Collection of Humorous and Entertaining Reports By John Wight. With 25
Illustrations by Cruikshank London 1827. Post 8vo, original boards,
paper label. First Edition Very fine copy. unopened and uneut. Very
scarce.
(backstrip rubbed)
142 CRUIKSHANK GEORGE Tough Yarns: a Series of Naval Tales and
Sketches to Please All Hands By the Old Sailor. Illustrated by Cruikshank London. 1835. 16mo. full brown tooled calf. gilt edges. First Edition. Fine copy. Rare
First Edition of this rare account of Cooper's celebrated character in the
flesh. Save for some very slight foxing this is a fine copy internally.
143 CURIOUS Emblems of Rarities: or. Choyee Observations, etc. Collected
by D. Lupton. London, 1636 16mo. old leather. Backstrip torn. contents
ings. New York. 1828 Tall 8vo, original boards and cloth. paper label
134 CORVO F. BARON Chronicles of the House of Borgia. New York. 1901.
Royal 8vo. cloth. Illustrated First American Edition Inscription on front
fine. Rare.
A little encyclopedia of curious and interesting information Gutenberg
and printing. the invention of guns, etc.
end-paper. Fine copy.
135 COWLEY, ABRAHAM The Mistress, with Other Select Poems, 1618-1667.
Edited by John Sparrow. London, The Nonesuch Press, 1926. Large roval
8vo. polished buckram. deckle edges. Limited to 1,050 numbered copies on
Duteh handmade paper. Very fine copy.
144 CURIOUS Gynecocracy with an Essay on Fornication Adultery. and in
Incest. By the author of "Rumours of Treason, a Work suppressed
1810. London, 1821. Thick Svo. original boards rebacked, contents excellent.
145 CURIOUS. Jacob's Rod: A translation from the French of a rare and
curious work, A. D. 1693, on the art of finding springs, mines and minerals Welton,
means of the hazel rod. Published by the translator: Thomas
136 CRANE. STEPHEN The Monster, and Other Stories. New York, 1-09.
12mo. eloth. First Edition Upper part of binding damp stained: otherwise sound and clean.
by London, n.d. (early 19th century). 12mo. half leather. frontispiece, erasure
on title page. Nice copy.
17
16
146 DE AMICIS, EDMONDO. Holland. Translated from the Italian by Helen
Zimmern.
Illustrated. Two volumes. Philadelphia, (1894). Post 8vo, 3/4
maroon calf, marble boards, tooled backs, gilt tops. Nice set.
147 DEARBORN, HENRY. 'Father Dearborn" -Chicago.) Document
signed. Boston, August 22. 1809. 2 pp., 8vo. Manifest signed as Collector
of the Port of Boston.
148 DECORATIVE MAP. OLD. Asia Recens Summa Cura Delineata. Auet.
Henr. Hondio, 1631. Splendid colored map. enclosed in glass, large atlas
folio size.
157 DICKENS, CHARLES. The Posthumous Papers of the Pickwick Club.
With 43 illustrations by R. Seymour and Phiz. 8vo, cloth. London, 1837.
First edition in one volume, bound in cloth. Tipped in on the inside of the
cover is a salutation, signed by Diekens 'Dear Sir - Faithfully yours Charles Dickens, The Rev. A. H. Banford." Good copy, loose in binding.
158 DICKENS, CHARLES. The Posthumous Papers of the Pickwick Club.
With 43 Illustrations, by R. Seymour and Phiz London, 1837. 8vo. original
cloth.
The First Edition in cloth. Front cover very slightly rubbed, otherwise
a fine copy.
149 DECORATIVE MAPS, OLD. Cardiganshire, Montgomeria. Breknoke
Together 3 fine decorative maps of parts of England enclosed in glass (1
piece broken), large atlas folio size, ca. 1700 or earlier.
150 DECORATIVE MAP. OLD. Le Perou et le cours de la Riviere Amazone.
Par N. Sanson d'Abeville. Paris, 1656. Superb colored map, enclosed in
glass, large atlas folio size.
151 DECORATIVE MAP. OLD. Persia sive Sophorum Regnum. William
Blaeu, Amsterdam, 1634 Splendid colored map. enclosed in glass, large
MASTER HUMPHREY'S CLOCK
159 DICKENS, CHARLES Master Humphrey's Clock. by "Boz." With
illustrations by G. Cattermole and H. K. Browne. 20 monthly parts, er.
4to, green wrappers. In a buekram folding case. London, 1840-1.
First Edition Some backstrips repaired, and the back wrapper of Part 12
has been used for Part F. and the wrapper for Part 20 is Part 2 changed
to 20.
DOMBEY AND SON
atlas folio size.
152 DECORATIVE MAP. OLD Superb colored map of America, large atlas
folio size, enclosed in glass: Totius Americae Septentrionalis et Meridionalis
Novissima Repracentatio, Johannes Baptista Homann, Nuremberg. (ea.
1680).
160 DICKENS, CHARLES. Dealings with the Firm of Dombey and Son. By
Charles Dickens With Illustrations by H. K. Browne. London, 1846-8
20 parts in 19. Original wrappers, folding cloth protection box.
The rare First Edition in parts. Part V has the 12-line errata slip. A
good sound set, with some backstrips repaired and some covers soiled. Most
of the covers are in fine clean condition.
153 DECORATIVE MAP. OLD Wallia Principatus Vulgo Wales, John Blaeu,
(ea. 1680). Splendid colored map, enclosed in glass, large atlas folio size.
154 DEFOE. DANIEL The Consolidator or Memoirs of Sundry Transactions,
From the World and the Moon. Translated from the Lunar Language.
8vo, contemporary panelled calf. London, 1705.
First Edition, with half title-page. Fine copy of this book. This prose
satire contains the first hints of many of the ideas of Swift afterwards
embodied in Gulliver, and also many of the sly hits at all authors of the
time, from Dryden to Tom D'Urfey.
155 DEFOE. DANIEL A New Voyage Round the World, by a Course never
sailed before. In two parts, included in one volume, 8vo. Frontispiece and
several copper-plate engravings Contemporary panelled calf, with SITeral neat repairs. London, 1725. First Edition.
156 DE LA MARE, WALTER Crossings. A Fairy Play. With Music by
C. Armstrong Gibbs. (Beaumont Press, Westminster, 1921.) Svo. deco
rative cloth and buckram, deckle edges. Limited to 264 numbered copies
Fine copy, with 1 page MS. of James Stephens, about 150 words, enelos
in half green morocco slipcase, inner cloth wrappers.
18
161 DICKENS, CHARLES. Memoirs of Joseph Grimaldi. Edited by "Boz."
With Illustrations by George Cruikshank In 2 volumes London, 1838.
Post 8vo. half brown calf. mottled boards, gilt tops. First Edition Nice
set, with the original cloth covers bound in. Rare.
162 DICKENS, CHARLES. Memoirs of Joseph Grimaldi. Edited by "Boz."
Embellished with a portrait (Currier lithograph). New York, 1848. 12mo,
original boards and cloth (paper label missing, name in ink at top of front
cover.) The First American Edition. Very good copy. Very scarce.
LITTLE DORRIT
163 DICKENS. CHARLES. Little Dorrit. With illustrations by H. K. Browne
20 parts in 19. 8vo, blue wrappers. Enclosed in a morocco backed box.
London, 1855-1857.
First edition in parts, lacking the half-title. First issue. with the white
on which the author corrected the errors in the preceding chapter, in
slip Part XVL The back wrappers of Part I. II, V. XIX and XX have been
supplied from other parts. Backstrips of some wrappers repaired.
19
EDWIN DROOD
172 DREISER, THEODORE. A Hoosier Holiday. With Illustrations by
Franklin Booth. New York, 1916. Royal 8vo, original boards and buckram.
164 DICKENS, CHARLES. The Mystery of Edwin Drood, With 12 illus.
trations by S. L. Fildes, and a portrait. 6 parts, Svo, green wrappers
In a green half-morocco slip-case. London, 1870.
First Edition The back wrappers of Parts 11 and VI have been supplied
from Parts I and V. and backstrips of some wrappers have been repaired.
The searce First Edition, first issue. with the paragraph reading "The
war! The war!" on page 173. Fine copy in the original dust jacket.
173 DRINKWATER JOHN Abraham Lincoln. A Play. Boston, no date.
12mo, boards and cloth. Inscribed copy. With A. L. S. laid in. Lincoln,
the World Emancipator Boston, (1920). 12mo, boards and cloth. Author's
165 DICKENS CHARLES. A. L. S., "Office of All the Year Round.' London,
24 July, 1888. 1p. 12mo., to Mr. Kilton. Reads in part, "When I went to
America the Piekwick spoons were packed up with other articles and stored
away," etc.
WITH ORIGINAL WATER COLOR DRAWING
166 DICKENS. CHARLES The First Editions of the Writings of Charles
Dickens and Their Values, A Bibliography by John C. Eekel. With a Portrait of Charles Dickens and 36 Illustrations and Facsimiles London. 1913
4to, 1/2 white vellum, cloth sides, gilt top, other edges untrimmed
Large-paper Copy with original water color drawing my "Kyd." Limited
to only 250 copies signed by the author and publishers. Very fine copy
167 DICKENS, CHARLES. Letters of. Edited by His Sister-in-Law and His
Eldest Daughter. In Three Volumes First Edition Svo. full polished calf,
full gilt backs and gilt sides, g.e., by Tout. London, 1880-2. Very fine set.
168 DICKENS, CHARLES The Unpublished Letters of Charles Dickens to
Mark Lemon. Edited by Walter Dexter. London, 1927. Post 4to, original
% vellum, purple cloth sides, gilt top, other edges untrimmed
First Edition, limited to 525 numbered copies. Very fine copy
169 (DODGSON C. L.) The Life and Letters of Lewis Carroll. By Stuart
Dodgson Collingwood Illustrated London, 1898. Post 8vo, polished buckram. First Edition. Very fine copy.
autograph presentation copy, signed and dated on front end-paper. Together
2 fine association items.
174 DRYDEN, JOHN All for Love: or. the World Well Lost A Tragedy.
San Francisco: Printed for William Andrews Clark, Jr., by John Henry
Nash, 1929. Folio, original boards and vellum, gilt top, other edges untrimmed. Limited to 250 numbered copies for private distribution With
13 colored plates and other decorations Together with a facsimile, also
one of 250 numbered copies of the very rare First Edition, small 4to.
boards and vellum. Two very fine volumes in board slipease, as issued
175 DRYDEN, JOHN. The Works of Virgil. Translated into English Verse.
A New Edition; with Remarks on the "Corrections" of Dr. Carey London,
1806. Wide 24mo, contemporary mottled brown calf. Four volumes
Covers of Vol. 1 loose. Good set.
176 (DUCHESS OF KINGSTON.) An Authentic Detail of Particulars Relafive to the Late Duchess of Kingston. London, 1788. Small 8vo, boards
and calf. Frontispiece portrait of the duchess in interesting pose. First
Edition Very good copy. Searce.
In 1769, while her husband was still alive, the lady married the Duke of
Kingston, while her husband, the Earl of Bristol, was still alive. Tried
for bigamy, she was found guilty, but, pleading her "privilege as a Peer's
wife," she was discharged without any punishment She died in 1788
after an interesting interlude in Italy and Russia.
170 (DODGSON. C. L.) Sylvie and Bruno. By Lewis Carroll. With 46 Illustrations by Harry Furniss London, 1889. Name in pencil at top of titlepage. - Sylvie and Bruno Concluded. With 46 Illustrations by Harry
Furniss London, 1893. Together 2 volumes, 12mo, original cloth
First Editions Very good and fine copies, respectively. The second volume contains the very searce loose leaf of advertisement, written by Lewis
Carroll. usually missing
177 DU MAURIER, GEORGE. A. L. S., 1 page, 24mo, Hampstead
Heath,
intimate letter
Jan. 9, (1877), to my Dear (Cholmondely) Pennell.' An
to a friend. With original addressed envelope.
ONLY FIVE COPIES
179 EDWARDS, JONATHAN. The Great Christian Doctrine of Original Sin
Defended: Evidences of Its Truth Produced, etc. Boston, New England,
1758. Post 8vo, contemporary panelled calf (worn; backstrip chipped).
171 DRAKE JOSEPH RODMAN The Culprit Fay and Other Poems With
a Title Page and Vignettes by Edmund Garrett. Printed by the Row
Club, Cleveland, 1893. Large 8vo, original white cloth (very slightly
spotted), leather label.
Limited to only 5 copies on Japan vellum. With 2 A. L. S. by the artist,
regarding the book, laid in. Fine copy, in half green morocco slipease Of
the greatest rarity.
178 EDISON. THOS, A. Attractive Photograph of an Oil Painting Portrait,
6" x 8". Signed by Thos. A. Edison to W. F. Bauer. Well framed
First Edition of this early American religious work by one of the famous
New England ministers and college presidents. Lacks front end-paper;
contents otherwise sound and fine. With the list of subscribers at the end
Very rare.
21
20
180 EGGLESTON EDWARD A collection of 4 A. L S., about 10 pp. to
Mrs. Cabell 1890-1892 One letter discusses various phases of American
history- and Political, Cultural, Institutional and Library and
eites the most important names of American historical writers in each
field, Baneroft, Parkman, etc.
SIR HENRY IRVING'S SET OF A GEORGE ELIOT RARITY
181 ELIOT. GEORGE. Daniel Deronda. Edinburgh and London, 1876 12mo.
3/4 contemporary brown morocco, marbled board sides and edges. 4 vol-
188 EMERSON. RALPH WALDO. Essays. Boston, 1841. 12mo. original
cloth. First Edition, first state, without "First Series" on spine. Name
in ink at top of title, front end-paper extracted, and binding somewhat
soiled and worn. A fine clean copy internally. Scarce.
189 EMERSON, RALPH WALDO. A Memoir of. By James Elliot Cabot. In 2
volumes, Cambridge, printed at the Riverside Press, 1887. Tall 8vo, original cream-colored boards, paper labels, deckle edges. Large-Paper First
Edition, limited to 500 numbered copies. Very fine set, unopened.
umes Nice set.
The rare First Edition of George Eliot's masterpiece. From the library
of Sir Henry Irving. the celebrated actor, with his bookplate in each volume
182 ELIOT. GEORGE. The Mill on the Floss. In Three Volumes, Edinburgh
and London, 1860. 12mo, original einnamon-colored cloth, uneut.
First Edition. Tops of backstrips slightly chipped, corners worn, and rear
hinge of Volume III broken With 16 pp. of ads. at end of Volume III.
183 ELIOT. GEORGE The Spanish Gypsy. Edinburgh and London, 1868.
Svo, original cloth. First edition Very good copy One signature loose
184 ELLIS, HAVELOCK Christopher Marlowe. Edited by. With a General
Introduction on the English Drama During the Reigns of Elizabeth and
James I. Unexpurgated Edition. London. 1887. 12mo, original cloth.
First Edition Nice copy One of the searcest titles in the "Mermaid Series."
185 EMERSON. R. W. A. L S., 2 pp. 8vo. Boston, 20 Dec., 1876, to H. G. Otis
Blake. Reads in part:
have today sent by Adams Express the two trunks containing Henry
D. Thoreau's manuscript to your address in Worcester," etc.
186 EMERSON R. W. A. L S., 2 pages, 32 mo, Concord, March 14. no date.
My
to W. D. Howells, rejecting a proposal to write a paper. In part:
habit of writing is so irregular in these days & I have so much incomplete
work that I must not make new promises. About 55 words
EMERSON GENEALOGY
187 EMERSON R. W. A. L. S., 2 pp. 4to. Divinity Hall, Cambridge, 29. Oct.,
1828, to John Farmer, Concord, N. H. Long letter regarding Emerson
genealogy. Reads in part:
"I have received yesterday a letter from Mr. Samuel Emerson of Newburyport (who by the way is son of Bulkley who was son of Joseph E. of Malden)
in answer to my request for information about Rev. Joseph E's parentage;
He sends me this minute, Joseph Emerson, the son of Lt. John
Now you say in
Emerson & Judith his wife, born 2d March 1696
your letter that Rev. J. E. should be born in 1699. This difference is not
very considerable, & must not deprive my ancestor of the lieutenant for a
father. unless we can find him a better
So pray, my dear sir. de not
let a few refractory impossibilities if any such should appear, lose me he
lieutenant. It sets all my pedigrees adrift.' etc. Another page deals th
his brother and Emerson' intention to renew his acquaintances in Con d.
'in some of the revolutions of our ecclesiastical system," etc.
22
190 EMERSON. R W. Emerson's Works Boston and New York, The Riverside Press, 1921. Small 8vo. % tooled red morocco, raised bands, gilt tops,
other edges untrimmed. Set. six volumes,
A fine set, beautifully bound.
191 ENGRAVING EARLY AMERICAN. American Engravers and Their
Works. By W. S. Baker. Philadelphia, 1875. 12mo. cloth First Edition Early American Engraving Upon Copper. The Grolier Club, 1908. 16mo,
wrappers. Together 2 volumes.
192 EMERSON. R. W. A. L. S., 3 pp. 4to. Concord. 5 Aug. 1850, to Horace
Greeley regarding the publication of a memoir of Margaret (Fuller).
Letter reads in part: "your arrangement of her books is judicious certainly let the notices of Longfellow and of Lowell be omitted. These two
critiques of two writers of such respectable ability were exceptional in their
severity from Margaret 's pen. and there is no need to repeat the wounds
Eekermann, too, is her best book in some senses, & Gunderode
is good.'
193 EVERETT. EDWARD A. L. S., 2 pp. 4to. Boston, May, 1839, to Robert
Southey. Charming letter of introduction for Mr. & Mrs. Daniel Webster,
also on the appreciation of Southey's poetry in America Reading in part
"Mr. W. must be known to you by reputation as one who has no superior
among the statesmen of America now living. His friends have long claimed
for him the reputation of standing in the highest place in the Senate of
the United States & among the constitutional lawyers of this country." etc.
194 EVERETT. EDWARD A. L. S., 2 pages, 4to. Feb. 17. 1825. to an offer asso- of
eiate of the United States Literary Gazette relative to the writer's
assistance and contributions to the publication. A fine letter. over 300
words.
195 FIELD, EUGENE A L. S., 1 page. 12mo., Chicago, May 22. 1895, ordering a copy of "With Trumpet and Drum" and of "Love Songs of Childhood" to be shipped to a friend in London.
196 FIELD, EUGENE A. L S., 1 page, 4to. Chicago, Nov., 26th. 1888. A
fine courteous letter, to a Miss Jansen, soliciting on behalf of the Chicago
Daily News. for publication an article on a forthcoming theatrical performance About 115 words.
28
197 FORD, GOV. THOMAS A History of Illinois, from Its Commencement
as a State in 1818 to 1847. Chicago, 1854.
First Edition of this searce Illinois history. Worn copy, some staining
THREE FINE FORE-EDGE PAINTINGS
198 FORE-EDGE PAINTINGS Fisher's Views, Syria, The Holy Land, Asia
Minor, etc. Illustrated In a Series of Views Drawn from Nature by W H.
Bartlett, William Purser, etc. With Descriptions of the Plates by John
Carne, Esq. London, (ea. 1837). 4to, contemporary green grained calf,
gilt back, richly tooled gilt borders, g.e. 3 volumes With numerous fine
full-page engravings.
205 FREEDOM OF THE PRESS A Treatise Concerning Political Enquiry,
and the Liberty of the Press. By Tunis Wortman, Counsellor at Law. New
York, 1800. Svo, unbound 296 pages. Title page and table of contents
partially water stained
First Edition A very rare early American treatise, with a chapter on
"The same subjects considered with relation to the Constitution of the
United States.'
206 FREMONT, BREVET CAPTAIN J. C. Report of the Exploring Expedition to the Rocky Mountains in the Year 1842. and to Oregon and North
California in the Years 1843-4. Washington 1845. Svo. original cloth. Very
good copy, with the searee folding map in folder inside back cover.
A splendid set. each volume with a beautiful fore-edge painting, an oriental
seene.
ABOUT THE HERO OF "THE CLIFF DWELLERS"
199 FORE-EDGE PAINTING Italy. A Poem. By Samuel Rogers. London,
1838. 4to. full dark green grained morocco, gilt decorations on sides, raised
bands, gilt edges. With splendid engravings by Turner, Prout, and others.
With a beautiful fore-edge painting of Lake Garda: a gorgeous scene of
the river bank, with Italian peasant women in colorful attire idling nearby.
Superb copy.
207 FULLER, HENRY B. A. L S., 5 closely written pages, 4to. Chicago, Oct.
16. 1893, to Mr. Erastus Brainerd, Seattle, Wash. A long letter of the
utmost importance and human interest, in which Fuller explains the eircumstances under which he gave the name, Erastus M. Brainard," to
the hero of his novel, "The Cliff Dwellers." One of the most important
Fuller letters every to appear at public sale, every line of it being significant and of extraordinary association interest. About 850 to 900 words
208 FULLER HENRY B. The Chatelaine of La Trinité, N. 1892 Binding
200 FORE-EDGE PAINTING Poems. By Samuel Rogers. London, 1838.
4to, full dark green grained morocco, gilt decorations on sides, gilt edges,
raised bands With superb engravings by Turner, Stothard, and others.
With a beautiful fore-edge painting of a landscape and river, with trees,
countrymen, etc., in the background Superb copy.
201 FOSTER, WILLIAM Noted English Artist. An original Pen and Ink
Sketch of himself as he appeared on his deathbed (1812). He drew it
for Dr. Knight, his physician, and is attested to by Dr. Knight's son.
202 FORTUNE PRESS De Sade. Being a Series of Wounds, Inflicted with
Brush and Pen, Upon Sadistic Wolves Garbed in Masochists' Wool By
Beresford Egan and Brian de Shane. Published for the first time. London,
n.d. 4to, buekram Very fine copy, with d.w.
Limited to 1600 copies. A curious item, with weird illustrations
203 FOSTER STEPHEN Collection of 22 pieces of sheet music, mostly
early editions, extracted from bound volumes. Good copies.
204 FOULIS PRESS Paradise Lost. By John Milton. Glasgow, 1770. Vignette
on title, folio, tooled old calf. Fine copy in an attractive old binding.
slightly soiled; otherwise fine. First Edition
209 GALE, ZONA. Yellow Gentians and Blue. New York, 1927. Tall 12mo,
boards and cloth. First Edition. Author's signed Presentation Copy. Friendship Village New York, no date. 12 mo. cloth. With signed autograph inscription. Together 2 volumes Very fine copies
210 GALSWORTHY, JOHN. Moods, Songs and Doggerels. London, 1912 8vo.
original bluish-green cloth, paper label.
First Edition, fine copy, limited to 750 copies
211 GARLAND HAMLIN. The Book of the American Indian Pietured by
Frederick Remington New York, n.d. Tall 4to. original boards and cloth.
Mint copy, with d.w., boxed With Remington's autograph signature on
card laid in.
212 GARLAND, HAMLIN. Main-Travelled Roads. New York, no date. 12mo,
original cloth. Fine copy.
Author's signed Presentation Copy. With A. L. S., 1 page, small 8vo,
April 30. '02, to Franklin MeVeagh. former U. S. Secretary of the Treasury, laid in.
213 GENEALOGY Descendants of George Abbott, of Rowley, Mass.. etc. By
Maj Lemuel Abijah Abbott. Volume L (Boston,) 1906. Royal 8vo, cloth
Excellent copy.
25
24
214 GENEALOGY The Gentry Family in America, 1676 to 1909. By Richard
Gentry. New York, 1909. Large, thick 8vo. cloth. Good copy (ex-library).
215 GEORGE, HENRY. Social Problems. Chicago, 1883. 12mo, original cloth
224 GREENAWAY, KATE. Kate Greenaway's Book of Games. With 24
Full-page Plates. Engraved and printed in colours by Edmund Evans.
London, n.d. Square 8vo, illustrated boards First Edition Fine copy.
First Edition Fine copy.
WITH 12 FORE-EDGE PAINTINGS
216 GIBBON, EDWARD The History of the Decline and Fall of the Roman
Empire. In 12 volumes. A new edition. London, 1807. 18mo, contemporary full mottled calf.
225 GREENAWAY, KATE. Mother Goose: or, the Old Nursery Rhymes Illustrated by Kate Greenaway. Engraved and printed by Edmund Evans.
London, n.d. 16mo, Illustrated eloth boards. First Edition. Fine copy.
226 GREENAWAY, KATE. The Royal Progress of King Pepito. By Beatrice
F. Cresswell. Illustrated by Kate Greenaway. Engraved and printed by
Edmund Evans. London, no date. Large post 8vo, original illustrated
boards (backstrip and edges rubbed). First Edition.
fine old
set, each volume with an interesting fore-edge painting depicting
aArustic
seene.
217 GLASGOW, ELLEN. Virginia. New York, 1913. 12mo, original cloth.
First Edition
Fine copy. Autographed by the author. Inscription (not
author's)
on half-title.
227 GREENAWAY KATE. The Pied Piper of Hamelin By Robert Browning. With 35 Illustrations by Kate Greenaway. Engraved and printed in
colours by Edmund Evans. London, n.d. Square royal 8vo, original illustrated boards (edges rubbed). First Edition.
218 GRAVES, ROBERT. Ten Poems More. Hours Press, Paris, 1930. Large
imperial 8vo, calf and illustrated boards First Edition Limited to only
200 copies, privately printed, numbered, and signed by the author. Fine
228 GREENAWAY, KATE. The Queen of the Pirate Isle. By Bret Harte.
Illustrated by Kate Greenaway. Engraved and printed by Edmund Evans.
London, n.d. Square small 8vo, original illustrated cloth. First Edition.
219 GREELY, HORACE A. L. S., 1 p. 4to. New York, 22 Nov. 1842, to "Mrs
Mary Cheney, Dear Mother. A detailed personal letter about friends
"I hope soon to be able to have a home fit to invite you to, and that you
will come and visit me." (Letter is somewhat stained and worn in folds).
229 GREENAWAY, KATE. Under the Window. Pictures and Rhymes for
Children. Engraved and Printed by Edmund Evans London, n.d. Large
square 8vo, original illustrated boards. First Edition Fine copy
copy. Very scarce.
Fine copy
230 GROLIER CLUB. Catalogue of Books from the Libraries or Collections
of Celebrated Bibliophiles and Illustrious Persons of the Past with
WITH AUTOGRAPH LETTER OF QUEEN VICTORIA
220 GREENAWAY, KATE Little Ann, and Other Poems. By Jane and Ann
Taylor. Illustrated by Kate Greenaway Printed in Colours by Edmund
Evans. London, n.d. 8vo, original illustrated boards. and linen. First
Edition Name in ink on end-paper. Fine copy. With A. L., third person
of Queen Vietoria, Windsor Castle, Aug. 30. 1841, 2 pages, 12mo, written
in the third person.
221 GREENAWAY, KATE A Day in a Child's Life. Illustrated by Kate
Greenaway Music by Myles B. Foster. Engraved and printed by Edmund
Evans
London, n.d. Square original decorated boards (corners rubbed).
First
Edition
222 GREENAWAY, KATE Language of Flowers. Illustrated by Kate Greenaway. Printed in Colours by Edmund Evans. London, n.d. Square 18mo,
original illustrated boards First Edition. Nice copy.
Arms or Devices on the Bindings. Exhibited at the Grolier Club, 1895.
8vo, original green cloth. With many full-page plates.
Edition limited to only 350 copies on Holland paper. Book-plate. Fine
copy.
231 GROLIER CLUB. Transactions. From its Foundation, 1884, to 1919.
Parts I-IV. N. Y., 1885, 1921. Post 4to, original boards Together four
volumes. Good to mint copies.
232 (HABBERTON, JOHN.) Helen's Babies. By their Latest Victim Boston,
(1876). Small square 12mo, original cloth.
First Edition, second issue. Fair copy. Mounted on the fly-leaf is a long.
important and interesting A. L. S. by the author regarding the points of
the first issue, as well as other editions of this popular "High Spot.'
233 HAMILTON, ALEXANDER The Works of. Comprising His Correspondence, and His Political and Official Writings, Exclusive of the 1850. Fed-
223 GREENAWAY, KATE Marigold Garden. Pictures and Rhymes by Kate
Greenaway. Printed in Colours by Edmund Evans London, n.d. Square
royal 8vo, original illustrated boards (corners scuffed). First Edition
26
eralist, Civil and Military. Edited by John C. Hamilton. New York,
8vo, cloth. 7 volumes One backstrip torn at upper front hinge.
27
"KARMA" - "THE AUTHOR'S TOUCH"
234 HART, ADOLPHUS M. History of the Valley of the Mississippi Cineinnati, 1853. 12mo, original cloth. First Edition: some foxing: bookplate;
backstrip
slightly seuffed: a tight sound copy otherwise.
235 HARTE.
BRET
A. L. S., 16mo, 1 page, June 28, 1887. mentioning John
Hay. About
60 words,
243 HEARN, LAFCADIO. A. L. S., 3 pp. 8vo, New York City, 149 W. 10th
St., Dec. 20. 1889, to J. M. Stoddart, editor. A lengthy letter submitting
'Karma" for publication. Reads in part: Karma in its present shape
represents, I think, the utmost possible degree of condensation to which
a story can be brought. Names, places, all descriptive matter not relating
to emotional action, have been eliminated Accordingly I see no possibility
of further condensing the narrative, without weakening it. Will you
236 HARTE,
BRET
The Luck
1870. 12mo,
original
cloth. of Roaring Camp, and Other Sketches Boston,
The extremely rare first edition, first issue, without "Brown of Calaveras."
copy of an important book, though the text is complete and fairly
A poor
clean.
kindly agree to have copy strictly followed, and, if possible, to send me
corrected proofs as soon as the text is set up: for no work can obtain its
best expression except by author's own finishing touches," etc.
244 HEARN, LAFCADIO Glimpses of Unfamiliar Japan. In two volumes.
Boston and New York, 1894. Small 8vo, original green cloth, gilt tops.
First Edition, first binding. An exceptionally fine set.
237 HAWTHORNE, NATHANIEL The Blithedale Romance Boston, 1852
12mo, original cloth. First Edition, with 4 pages of ads. Binding worn at
top and bottom of spine, corners rubbed, and a few pages stained somewhat at bottom margins. Contents good. Scarce.
245 HEARN. LAFCADIO. Kokoro. Hints and Echoes of Japanese Inner Life.
Boston, 1896. 12mo. original cloth. First Edition Nice copy.
246 HEARN, LAFCADIO. Some Chinese Ghosts, Boston, 1887. 12mo. original cloth.
238 HAWTHORNE, NATHANIEL The Marble Faun: or, The Romance of
Monte Beni. In 2 volumes Boston, 1860. 12mo. original cloth.
First Edition, first issue, volume 2 ending at page 284. With 16 pages of
ads, dated March 1860. Binding slightly soiled, and worn at top and
The rare First Edition of the author's second book, and an important
"High Spot.' Binding broken about 1 inch on spine at outer hinge. front
end-paper extracted, and ink drawing of Japanese man on front fly-leaf.
Otherwise a good copy.
bottom of spines, otherwise a good clean set.
247 HEINE, HEINRICH. Werke Hamburg. 1876. Small 12mo. % tooled
239 HAWTHORNE, NATHANIEL Our Old Home. A Series of English
Sketches Boston, 1863 12mo. original cloth. First Edition, with 1 page
of ads Nice, elean tight copy.
brown morocco, gilt tops, other edges untrimmed 21 vols. Attractive mod.
ern binding. Fine set (incomplete).
248 HELVETIUS, CLAUDE-ADRIEN Ocuvres Complettes D'Helvetius
Corrigee et augmentee sur les Manuserits de l'Auteur, avec sa Vie et son
Portrait 8vo, 4 vols., full polished green calf. gilt decorations and letter-
240 HAY, JOHN. A. L S., 2 pp., 12mo, Washington, Dec. 4. 1888. Mr.
Nicolay and I are much gratified by your letter of the 2nd. We are pleased
to know that the brief and inadequate notice of your father 's heroie service
has given you pleasure. Refers to Commander Chas F. Ellet. of Mississippi River fame.
241 HAY, JOHN. Pike County Ballads, and Other Pieces. Boston, 1871.
Small 12mo, original cloth. First Edition Shaken. Good copy.
242 HAZLITT, W. C. A. L. S., London, 2 Feb. 1869, 3 pp. 12mo. to Ja 8
W. Cook, giving an outline of his proposed new book on the Drama. R. Is
in part: "I desire to collect together in a convenient form and one P at
of view all that has been done, & my volume will embrace a large bally
of documents & tracts, etc., etc.
28
ing. gilt edges. Paris, 1795.
Very good edition. Except for some seuffing of binding, excellent copies
249 HISTORY OF AMERICA. Narrative and Critical Edited by Justin
Winsor. Boston, (1889). Wide imperial 8vo. 3/4 brown morocco, marble
boards, gilt tops. 10 volumes. Profusely illustrated with portraits, maps,
etc. Fine set, attractively bound, of this important and authoritative historical work.
250 HITTELL, JOHN S. A History of the City of San Francisco, and Incidentally of the State of California San Francisco 1878. 8vo, original
cloth. Insignificant tear at upper hinge on backstrip. otherwise a very
fine copy.
29
251 HOBBS, CAPTAIN JAMES Wild Life in the Far West: Personal Ad.
ventures of a Border Mountain Man. Illustrated with numerous engrav.
ings. Hartford, 1873. 8vo. original cloth. Colored frontispiece First
Edition
of Scarce.
this important western item. Lacks front end-paper. Very
good
copy.
252 HOLMES O. W. 2 A. L. S. Boston, Jan. 7. 1860, and Beverly Farms,
Mass. Aug. 22. 1885, to the editor of Harper's Weekly and to another
periodical regarding literary matters. About 250 words,
SECOND SESSION
FRIDAY, FEBRUARY 19
Promptly at 8 P. M.
261 KUNT, LEIGH. The Town: Its Memorable Characters and Events With
Forty-Five
Illustrations London, 1848. 8vo, original orange cloth, two
volumes.
First Edition Front fly-leaves lacking otherwise a fine bright set.
253 HOLMES OLIVER WENDELL The Professor at the Breakfast-Table:
with the Story of Iris. Boston. 1860. Large 12mo, original cloth. First
Edition. Two signatures loose, otherwise a fine copy.
262 HUXLEY, ALDOUS Brief Candles New York, The Fountain Press, 1930.
Svo, cloth. First Edition, limited to 842 numbered copies signed by the
author. Very fine copy.
254 HOOD, THOMAS A. L. S., Adelphi, 23 April 1828. 1 p. 4to. to James
Montgomery, requesting a contribution to his next Annual, mentioning
Sir Walter Scott.
263 ILLIVOIS Illinois, the Heart of the Nation. By Hon. Edward F. Dunne.
5 volumes. Illustrated Chicago, 1933. Royal 8vo, original decorated
AN IMPORTANT RUN
255 HORSES A consecutive run of The Clydesdale Stud-Book. containing
pedigrees of mares and stallions foaled, etc. Vols. 1-32 inc. London. 1878
1910. 8vo. original brown cloth. Together 32 volumes
A fine and important consecutive run of this famous stud-book, which records the pedigrees of the Clydesdale breed of horses foaled from 1869
to 1910.
keratol. Mint set.
264 ILLINOIS History of Whiteside County. Edited by Charles Bent. Morrison, III., 1877. 8vo, original cloth. Very fine copy. Searce in such fine
condition.
265 ILLUSTRATION ENGLISH English Illustration The Sixties': 185570. By Gleeson White. With Numerous Illustrations by Ford Madox
Brown, A. Boyd Houghton, Arthur Hughes, Rossetti, Whistler, and a
number of others. Westminster, 1897. 4to, original gilt decorative white
polished buckram. gilt top, other edges untrimmed. First Edition. Fine
copy.
266 INDIANA. A History of From 1816 to 1856. By John B. Dillon Indi256 HOUGH. EMERSON The Covered Wagon. New York, 1922. 12mo. orig-
inal cloth. The searce First Edition A good copy of this famous "High
anapolis, 1859. 8vo. original sheep (backstrip cracked at top and bottom
of outer hinge). Folded map. illustrations First Edition Searce.
Spot."
267 INDIANA NORTHEAST History of. Lagrange, Steuben, Noble and
257 HOWELLS W. D. Collection of 4 A. L. S., 1 page each, no place. 18921909. 2 of them addressed to Mrs. (Julia Ward?) Howe, regarding literary
matters A fine lot totalling about 220 words.
258 HOWELL JAMES, The Familiar Letters of With an Introduction by
Agnes Repplier. Boston and New York, 1907. 8vo. original boards and
cloth. paper labels, uncut and unopened. 4 volumes. Printed at the Riverside Press and limited to 220 numbered sets. Bookplate in each volume
Fine set.
DeKalb Counties Under editorial supervision of Ford, Stevens, MeEwen
& MeIntosh. Illustrated Chicago, 1920. Tall post 4to. leather and boards
(small grouge in one backstrip). 2 volumes Good set.
268 INMAN, HENRY. A. L S., 3 pp. 4to. New York, 15 Nov. 1838, with
caricature sketch of himself. to James MeMurtrie, Esq., Phila Regarding
the sale of the Paff Collection at auction, Do you think old Paff will lie
quiet in his coffin. when the auctioneer knocks down the Buonanotti I
think recommend he 'II kiek. it in I the saw same a Van way Alst with Fruit truth, piece. taste I and never dexterity." saw anything to
259 HUNT. LEIGH. Stories from the Italian Poets: With Lives of the Writers
London. 1846. Post 8vo. original eloth. 2 volumes First Edition. Fine
set.
enclosed in half dark blue morocco slipcase, inner cloth wrapper
Scaree.
260 HUNT. LEIGH The Story of Rimini. A Poem Boston and Phila., 1516.
269 IOWA. Album of Davenport and Vicinity Davenport, Iowa, 1887. Oblong
post 4to. original leather and buckram.
270 IRELAND Stories of Columniators: Interspersed with Remarks on the
Disadvantages, Misfortunes, and Habits of the Irish In two volumes. By
J. B. Trotter, Esq. Dublin. 1809. Small 12mo. half calf. First Edition.
Nice set.
16mo. original boards, paper label (somewhat rubbed).
31
30
271 IRVING WASHINGTON A. L. S., 3 full pp. 4to, Sunnyside. 19 Feb
1847, to Moses Grinnel, asking Mr. Grinnel to find a place in the merchant
marine for Irving's youthful protege, Newman Irving goes into lengthy
detail about the boy's father who had been a friend of his and an officer
in the U. S. Navy. A fine letter revealing Irving's character
272 IRVING, WASHINGTON A. L. S., 2 pp. 4to, Tarrytown, 2 Dee. 1840,
to Wm. S. Stone, American writer. Reads in part, he is mistaken in
the idea that I have any work in hand connected with the landing of Columbus. The report that got into the papers, must have originate in the
circumstances of Mr. Cooper's being occupied in a novel founded on that
subject, and in my name being substituted for his,
273 IRVING, WASHINGTON Salmagundi; or, the Whim-Whams and Opinions of Launcelot Langstaff, esq., and others. Reprinted from the American
edition, with an introductory essay, and explanatory notes, by John Lambert. London, 1811. 18mo, contemporary 3/4 calf (rubbed, on' backstrip
stained.)
First English Edition Contents fine.
274 JAMES HENRY, JR. A. L. S., 8 pages, small 8vo, London, July 7th,
(1879). to Richard Watson Gilder, regarding two short stories he had
sent him for publication, and requesting, as "a favor, a cheeque for
$300. A fine long letter. about 400 words.
275 JAMESON MRS. Characteristics of Women Moral, Poetical, and His
torical. In Two Volumes London, 1833. 8vo, original cloth, back lettered
277 JOHNSTON, JOSEPH E. Confederate General. A. L. S. 2 full pp., 8vo,
New York, May 15, 1868. To W. D. Cabell. A fine letter revealing John-
ston's character. "I am without capital-and have never attempted to
teach boys at my time of life one's not thought capable of making himself fit for a new calling.' etc. A splendid letter.
278 (JOHNSON, SAMUEL). Footsteps of Dr. Johnson (Scotland). By George
Birbeek Hill, D. C. L. With Illustrations by Lancelot Speed. London,
1890. Thick quarto, original half leather, gilt top.
First Edition Copiously illustrated with many fine full-page and text
illustrations of Scottish seenes, Binding slightly rubbed, otherwise a fine.
sound copy.
279 (JOHNSON, SAMUEL.) The Rambler In Three Volumes London, 1794.
8vo, contemporary tooled marble calf.
The thirteenth edition A fine old set with splendid engravings.
280 JOYCE, COLONEL JOHN A. Edgar Allen Poe. N. Y., (1901). 12mo,
buckram. First Edition. Author's signed and dated presentation copy.
Fine.
281 JUNIUS The Letters of. Complete. With Notes, biographical and explanatory Also a Prefatory Enquiry respecting the real author. By John Almon.
In Two Volumes (London), 1806. 12mo, old calf. front cover of one
in gilt.
volume somewhat loose.
With Fifty Vignette Etchings. The Second Edition, corrected and en-
The first issue of this edition. The editor. John Almon, is best known as
the editor of "The Remembraneer, that great magazine of information
on the American Revolution
larged. Fine set.
JEFFERSON'S THEORY OF LITERATURE
276 JEFFERSON THOMAS A. L. S., 2 full pages, 8vo, Mot tieello, Aug. 3,
1771. to Robert Skipwith brother-in-law of Mrs. Jefferson. The letter is
foxed, worn in folds and torn in the half fold across the center. A choice
letter as to content; concerning the choice of books for a private library
and expressing therein his theory of literature. Mounted in a doubleglass frame.
The letter reads in part. "I sat down with a design of executing your
request to form a catalogue of books amounting to about 30 £ sterling.
but could by no means satisfy myself with any partial choice I could make
'A little attention to the human mind evinces that the entertainments of
fiction are useful as well as pleasant everything is useful which contributes to fix in us in the principles and practice of virtue
Thus a lively and lasting sense of filial duty is more effectively im
pressed on the mind of a son or daughter by reading King Lear, than by
all the dry volumes of ethics and divinity that ever were written. This
is my idea of well-written Romance, of Tragedy, Comedy, and Lyrie poetry
'Come and bring our dear Tibby with you: the first in your affection
and second in mine in every scheme of happiness she is placed in the
of for
theme."
picture. as the principal figure. Take that away, and
itforeground
is no picture
282 JUSSERAND, J. J. With Americans of Past and Present Days. New York,
1916. Small 8vo, original cloth. Very fine copy
With a long signed autograph inscription of an excerpt from the book
describing the nomination of Abraham Lincoln Together with A. L S.
in pencil, 2 pages, 8vo, from Franklin MeVeagh to Ambassador Jusserand,
and other material of association interest.
283 JUSSERAND J.J English Wayfaring Life in the Middle Ages. Translated by Luey Toulmin Smith Illustrated. London, 1891. Svo. full gilt
vellum, gilt top, other edges untrimmed. Large paper, first edition, limited
to only 65 numbered copies on Japanese Paper, signed by the publishers.
Fine copy.
284 KELLER, HELEN. The Story of My Life. With Her Letters (18871901), and a Supplementary Account of Her Education, etc. By John
Albert Macy. Illustrated New York. 1915 Post 8vo. original cloth.
Fine copy.
With author's autograph poem. written in indelible peneil, signed and
dated 9. 1916. About 45 words. ending "Yet do I live these things
denied, Sept. and find Life sweet, and God so near that I can almost touch
His hand.'
33
32
285 KENDALL, GEO. WILKINS Narrative of the Texan Santa Fi Ezpedi
tion.original
With Illustrations
and a Map. In 2 volumes New York, 1844. Post
8vo,
cloth.
A good set of the rare First Edition of this important narrative A few
pages are slightly foxed, one front end-paper is pasted onto the
and a name
in ink on one front end-paper, but both volumes are cover, quite
sound
and elean.
294 OHIO IMPRINT. The Farmer's Assistant or, Every Man his own Lawyer.
By John M'Dougal The second edition. revised and corrected, with considerable additions. Chillieothe: 1813. Small 8vo. old sheep. Searce
295 LEE, ROBERT E. Photograph signed. "R. E. Lee.' Carte de-Visite
size, bust, showing the General's stars on his coat
FINE ELIZABETHAN MANUSCRIPT
286 KING, GENERAL CHARLES. The True Ulysses S. Grant. With 28
Illustrations,
Philadelphia,
1914. Post 8vo. original buekram. Fine copy.
Extremely
fine
copy
With author's presentation inscription, signed and dated, "by her father's
old
friend and 'boy soldier' comrade.'
287 KINGSLEY, CHARLES Lectures Delivered in America in 1874. London,
1875
12mo. original eloth. Cover slightly soiled. otherwise a fine copy.
First Edition
288 KIPLING. RUDYARD The Betrothed With Drawings by Blanche Me.
Manus New York, Mansfield & Wessels, (1899). Wide 16mo, cloth. The
First Separate Edition, limited to 500 copies on Strathmore deckle edge
paper. Nice copy Searce,
296 LEGAL. TOWNSHEND (HAYWARD). Debates in the House of Commons, 1601. Original Manuscript, known as the Townshend Debates (imperfectly published in 1680). Folio, 329 pages, original limp vellum, with
index, 26 pages in a later hand. (London, 1601-1602.)
A manuscript of singular importance, being the original source for matters
of historical, legal and trade interest. The reports include numerous ones
of speeches of Sir Walter Raleigh, of Francis Bacon and of the most eminent statesmen of the year 1601. There are reports of the enactment of laws
governing trade of all sorts, on the importation of spices, of wines, playing
cards, of the printing of songs, of the granting of a monopoly to Thomas
Wright and Bonham Norton-to print law books, etc., proceedings
of Parliament in the year 1601. in the 44th of the reign of Queen Elizabeth
From the famous manuscript collection of Sir Thomas Phillipps. Phillipps
MS. No. 13513.
289 KIPLING, RUDYARD Portrait by Philip ne-Jones 1899. Photogravure reproduction in sepia of this famous painting showing Kipling at
his desk, writing. in his Library. Print itself measures 14x16 inches framed,
published London 1900. by J. P. Mendoza Signed in pencil by Philip
Burne-Jones and Rudyard Kipling. With an etched Remarque head of
Kipling in Indian helmet on the bottom margin.
290 KIPLING. RUDYARD The Seven Seas. London. 1896. Tall 12mo. buck
ram (backstrip faded). First English Edition Sound elean copy.
291 KIPLING, RUDYARD "They." With Illustrations by F. H. Townsend
London, soiled). 1905. Small 8vo, original white gilt decorated cloth (slightly
ORIGINAL MANUSCRIPT
297 LEGAL PLOWDEN (EDMUND). Original Manuscript of Plowden's
Queres." 4to, contemporary limp vellum. About 190 pages, entirely in
Plowden's hand. Circa 1570.
Thomas Plowden (1518-1585), a leading English jurist, after leaving Cam.
bridge, entered the Middle Temple and was called to the Bar, becoming
Member of Parliament in 1553, which office he held for many years. One of
the foremost lawyers of his day, he was offered by Queen Elizabeth the office
of Lord Chancellor on condition of his renouncing the Catholic faith. Of his
legal writings, Anthony Wood says that they 'are esteemed exquisite and
elaborate commentaries and are of high account with all professors of the
law. Lowndes adds that 'They are still considered valuable to the student
of law.'
The First Edition, first issue. with the imprint, "Bemrose Dalziel'' on
page 80. Nice copy
292 LANCIANI, RODOLFO Pagan and Christian Rome. Boston, 1893 2 Ancient Rome in the Light of Recent Excavations. Boston, 1892. Together.
Names volumes, large square 8vo. red and white cloth. Profusely illustrated
on front end-papers. Fine copies.
293 white LANG, ANDREW Essays in Little London, 1891. Post 4to, original
to 150 polished buckram, deekle edges. Large Paper First Edition, limited
numbered copies. Backstrip somewhat faded, otherwise a fine. unopened copy. Bookplate. Searce.
This manuscript may be considered one of the most important original
documents in the history of English law, both on account of its early date
coupled with the high reputation of its author. The manuscript was formerly the property of Charles Fairfax, barrister and antiquary, 1597-1673.
and has his autograph on the fly-leaf. It was later in the possession of Sir
Thomas Phillipps, Bart., and is Phillipps MS 11114.
298 LE GALLIENNE, RICHARD Old Love Stories Retold Panel and designs
by George W. Hood. New York, (1904). Small 8vo. original cloth gilt
calf. First Edition. Fine copy. With an autograph poem. 4 lines, signed
by the author on the front end-paper.
35
34
299 LE GALLIENNE, RICHARD Rudyard Kipling. A Criticism. With
Bibliography
by John
Lane,
London,
strip
faded). First
Edition
Nice
copy.1900. Portrait. 12mo, cloth (back.
300 LELAND CHARLES GODFREY. A. L. S., 3 pages, 16mo, Weybridge
Surrey, Feb. 5th, 1874, to an English publisher regarding a contemplated
English edition of his book, 'Sunshine in Thought.' A long, interesting
letter referring also to his other books. In part: have always regarded
Sunshine in Thought as by far my best work it would be a real pleasure
for me to see my favorite dressed up decently for once, and looking as well
as your issue of The Egyptian Sketch Book etc. About
300
words
WITH THE ORIGINAL WRAPPERS BOUND IN
301 LEVER, CHARLES Tom Burke of "Ours." With numerous illustra.
tions on steel by H. K. Browne. In 2 volumes. Dublin, 1844 8vo, bound
from the original parts with all the original printed pink front and back
wrappers bound in. Handsomely bound in best style half crushed levant
moroeco, full gilt backs, t. e. g., uncut.
The rare First Edition. One of the works on Mr. Newton's List of The
Hundred Great Novels. A very fine copy.
302 LIFE INSURANCE EIGHTEENTH CENTURY Annuities on Lives
Second edition Plainer, Fuller, and more Correct than the former. With
Several tables, exhibiting at one View, the Values of Lives, for several
Rates of Interest By A. De Moivre. London, 1743. Foolscap 8vo. contemporary calf, tooled back, gilt borders, stained edges. Fine copy.
306 LINCOLN, ABRAHAM Plaster bust of Abraham Lincoln, about 8 inches
high and 5 inches wide, by Gutzon Borglum Presented by him to Henry
T. Rainey with inscription by Borglum scratched in base. A very attractive piece by one of America's foremost seulptors
307 LINCOLN, JOSEPH C. Cape Cod Ballads By Joe Lincoln. With Drawings by E. W. Kemble. Trenton, New Jersey, 1902 Tall 12mo, original
eloth.
First Edition of the author's first book. Covers soiled, a few margins partly
water stained, one page slightly torn at upper margin, and name written
in ink on inside of front cover. Despite these defects this is a fairly clean
and sound copy internally. One of Merle Johnson's High Spots.
308 LINDBERGH CHARLES A. Two bronze medals depicting Charles A.
Lindbergh, each 23/4 inches in diameter, 1927. Fine pair. Rare.
309 LINDSAY, VACHEL General William Booth Enters into Heaven, and
Other Poems, New York. 1915. Post 8vo. original cloth. Fine copy.
Author's signed Presentation Copy. With autograph poem, four stanzas,
16 lines, She Knew the Rain and the Moonlight," on front end-paper.
310 LINDSAY, VACHEL The Congo. Illustrated by Alexander King. Linweave Limited Editions, 1931. 4to, original wrappers.
Designed by W. A. Dwiggins, and printed by William Edwin Rudge, on
Linweave Text, Sun Tan, Antique Finish Fine copy. unopened. Scarce.
311 LITTLEJOHN, F. J. Legends of Michigan and the Old North West
WITH FOUR AUTOGRAPHS
303 LINCOLN, ABRAHAM Autograph Legal Document signed four times
Declaration of Plaintiff, and true copy of the affidavit, Sangamon C. C.,
Dec. 1, 1858, in re Edwards vs. Miller, Replevin, damages, etc.
The documents are written on both sides of one sheet legal size paper, the
ink is somewhat
faded from watersoaking and the paper is broken in the
center
fold.
Entirely in Lincoln's hand. The plea is signed, "Lincoln and Herndon,'
signed Abraham Lineoln as witness, signed "A. Lineoln' as counsel
making the true copy, and again 'Lincoln and Herndon" for Plaintiff
304 (LINCOLN, ABRAHAM.) Lincoln, Master of Men. A Study in Character
Cambridge, 1912 Special Edition, limited to 800 numbered copies, pullished for the Lincoln Centennial Association Post 8vo, red leather and
boards, gilt edges. Very good copy.
Allegan, Mich., 1875. 8vo, original buekram Portrait. Very good sound
copy. Rare.
312 LEE PRIORY PRESS. Letters from the Continent. By Sir Egerton
Bridges Kent: Printed at the private press of Lee Priory by John Warwiek, 1821. 8vo. boards and tooled calf (rubbed). First Edition. Contents
fine.
313 LOWELL A. LAWRANCE. The Government of England. New York,
1912. 8vo, cloth. 2 volumes Fine set. Presentation copy, with a signed
inscription by the author on front end-paper.
314 LONDON, JACK The God of His Fathers & Other Stories New York,
1901. 12mo. original cloth. First Edition of the author's second book
Backstrip slightly rubbed: shaken With the Tabard Inn bookplate and
label. A clean copy.
315 LONDON. Metropolitan Improvements: or London in the Nineteenth Cen-
Displayed by a Series of Engravings of New Buildings, Improve305 Saint (LINCOLN, ABRAHAM.) A Reporter's Lincoln. By Walter B. Steve:
Louis, 1916. 8vo, boards and buckram, paper label. First Editio
limited to 600 numbered copies.
tury etc., by the Most Eminent Artists, etc. By Mr. Thos, H. Shepherd. Elmes.
ments, With Historical, Topographical, and Critical Illustrations, by James or
London, 1828. 4to. old tooled calf (rubbed) 1 signature loose: more
less foxed.
36
37
316 LONGFELLOW, H. W. A. L. S., 3 pages 4to. Cambridge, April 5. 1842
to Sam. Ward, New York. Long personal letter asking Sam to make
rangements for his sailing to France, with Richard S. Willis, brother ar- of
Nat. P. conversations
Cogswell
are reported. with Ticknor (publisher) and Preseott regarding
"Willis is going to pass through four years in Germany to study music
he has composed several pieces full of feeling and fancy His music
325 MACAULEY, T. B. A. L. S., 1 page. 12mo, London, Feb. 5, 1845, to 'My
dear Coleridge. "Your pamphlet is very interesting I do not agree with
all your views etc About 40 words
326 MARKHAM, EDWIN. The Shoes of Happiness, and Other Poems New
York, 1916. Large 12mo, original cloth. Very fine copy. Inscribed and
dated by the author on front end-paper.
like his brother's poetry For my own part, I begin to tug and pull, is
like a vessel whose sails are spread, but whose anchor is not yet up, etc.
317 LONGFELLOW HENRY WADSWORTH The Courtship of Miles Stand.
ish, and Other Poems Boston, 1858. 12mo. original cloth. First Edition
Inscription at top of title page: edges stained A good copy.
318 LONGFELLOW HENRY WADSWORTH The Courtship of Miles Standish, and Other Poems Boston, 1859. 12mo. original cloth. First Edition
Binding seuffed at top and bottom of spine and rubbed at corners, some
writing
on front fly-leaf. otherwise a good clean copy of this searce "High
Spot.
327 (M'AFEE, ROBERT R.) History of the Late War in the Western Country.
Comprising a Full Account of All the Transactions in that Quarter, from
the Commencement of Hostilities at Tippecanoe, to the Termination of the
Contest at New Orleans on the Return of Peace. Lexington, Ky., 1816.
8vo, original sheep (somewhat rubbed).
First Edition of this very rare Western narrative Lacks end-papers: back.
strip chipped at top. Very good sound copy otherwise.
328 MARTINEAU, HARRIET. A. L. S. 2 pages, post 4to. Hingham, (Mass.),
Dec. 20. 1835, to the Rev. Samuel J. May, Anti Slavery Office. Boston, addressed, and with the postal rubber stamp on verso of page 3. which is blank
319 LONGFELLOW, HENRY WADSWORTH Tales of a Wayside Inn. Bos-
ton, 1863. 12mo. original cloth. First Edition, first state, with 'Nearly
ready'
Scarce.
on page 11 of the ads. Cover slightly spotted, otherwise a fine copy
320 LONGFELLOW, H. W. Tales of a Wayside Inn. Boston. 1863. 12mo, orig-
A cordial invitation to visit her and friends at the Brooks residence. In
part: I want to know more of you,-friend as you are of some dear
friends of mine, & I also want to be put in possession of the entire history
of your A. S. Society I know by sympathy that it must be a great
pleasure to be domesticated among those who
agree with you in all the
etc.
essential parts of your greatest object
inal cloth. First Edition, first issue. with "Nearly ready on page 11 of
the advertisements Backstrip chipped at top and bottom. and a erease
on one page. otherwise a nice, sound copy.
329 MASEFIELD, JOHN. Ballads and Poems. London, 1910. Square 16mo,
cloth First Edition. Fine copy.
321 LOWELL, AMY. Sword Blades and Poppy Seed, New York, 1914. Tall
16mo, original boards and cloth, paper labels First Edition Very fine
copy. With signed and dated inscription by the author on front end-paper.
330 MASONRY EARLY AMERICAN A System of Speculative Masonry.
By Salem Town Salem, N. Y., 1818. 16mo, old sheep. Lacks front end-
322 McCUTCHEON, JOHN T. Cartoons. A Selection of 100 Drawings Chicago, 1903. 4to. original illustrated boards (backstrip torn). First Edition. Author's Presentation copy. inscribed 'To Finley P. Dunne with
best wishes, John T. MeCuteheon, April 29. 1903, living a famous Amerlean cartoonist to an equally eminent American humorist.
323 McCUTCHEON, JOHN T. In Africa. Hunting Adventures in the Big
Game Country. Illust. with photographs and cartoons by the author. Indianapolis (1910). Large 8vo, half cloth.
First Edition Limited to 250 numbered and signed, large paper copies
Fine copy in dust wrapper.
paper, and more or less foxed, otherwise a good, sound copy. Scaree
A MAGNIFICENT. INSCRIBED "SPOON RIVER"
331 MASTERS, EDGAR LEE. Spoon River Anthology. New York, 1915.
12mo, original cloth.
A superb of the very rare First Edition, first issue, measuring %-inch
across top copy of covers, of this famous High Spot," generally accepted fol- as
the most typically American book of poems of the century. With the Barent
lowing autograph inscription on the front end-paper For Mrs. comrades
G. Pincher, Edgar Lee Masters. Where are mine laughing to
How are with me. how many, In the old arehard along the way 15.
many And in the woods that overlook, The quiet waters? May 18,
324 MACHEN, ARTHUR The Fortunate Lovers. Translated by Arthur
Machen. Edited, and Selected from the Heptameron, with notes, etc., by
Mary F. Robinson London, 1887. 8vo, original cloth.
Firstscarce
Edition of Arthur Machen's distinguished translation. Fine cop
Very
Siever's, Some excerpts are clipped to the final page of advertising immaculate and
newspaper end-paper. This is, however, in other respects, an
the rear in such condition exceedingly rare. The splendid inscription,
copy, written and less than a month after the publication of the value. first issue, has, more-
over. created an item of extraordinary association
39
38
341 MILNE, A. A. Toad of Toad Hill. A Play from Kenneth Grahame's "The
Wind in the Willows." London, (1929). Square 8vo, original creamcoloured boards and buekram, deekle edges Large-Paper First Edition,
limited to 200 numbered copies on handmade paper, signed by Kenneth
Grahame and A. A. Milne. Very fine, unopened copy, with d.w.
332 MEDALS BRONZE. Collections of bronze medals, 23/4 inehes in diameter,
mounted within small 8vo. cloth. volumes issued by the Circle of Friends
of
the Medallion in Manhattan, 1910-15 Together 9 volumes in perfect
condition
333 MELVILLE, HERMAN. Moby-Dick: or, The Whale. New York, 1851
12mo. original cloth (corners rubbed).
FORE-EDGE PAINTING OF HUNTING SCENE
The rare First Edition of this famous book. Backstrip split at one hinge.
fly-leaves lacking. and, as usual, more or less foxed throughout A sound
and reasonably clean copy otherwise
342 MILTON. JOHN. Paradise Lost. London, 1795. Fine vignette on title
and superb frontispiece engraving Small 8vo. contemporary red grained
calf (somewhat rubbed and outer hinges of binding partly eracked). Contents fine.
334 MENCKEN, H. L The American Language A Preliminary Inquiry into
the
Development of English in the United States. N. Y. 1919. 8vo. original cloth.
With a fine fore-edge painting depieting an English hunting scene.
343 MILTON. JOHN. Poetical Works. With a Life of the Author by William
Hayley. London, 1794. Three volumes Small folio, half leather A fine
set distinguished for its typography.
First Edition
to 1500 numbered copies. As new. with d. W. Very
searce
in thislimited
condition
335 (MENCKEN, H. L.) Fanfare, by Burton Raseoe. The American Critic,
By Vincent O'Sullivan. Bibliography By F. C. Henderson New York
1920. 12mo. original paper covers. First Edition of this scaree Meneken
item Fine copy.
344 MINIATURE BOOK. The New Testament of Our Lord and Saviour Jesus
Christ. Glasgow, David Bryee & Son. 1895. 3/4x% inches. Black imitation leather binding. stained edges. In silver plated case with magnifying
glass inserted in center. A fine copy of one of the smallest printed books
in the world.
336 (MENCKEN, H. L.) What You Ought To Know About Your Baby. By
Leonard Keene Hirshberg. B. A., M. D. N. Y. 1910. Large 12mo. original
345 M'LEOD. JOHN. Narrative of a Voyage, in His Majesty's Late Ship
green cloth.
Alceste, to the Yellow Sea. Etc., Etc. With an account of Her Shipwreck
in the Straits of Gaspar. London, 1817. 8vo, % calf. marble boards.
First Edition Meneken wrote this book himself. as is generally known,
at the request of Theodore Dreiser. Fine copy.
First Edition. Rare narrative, with portrait and four beautiful colored
engravings. Fine copy.
337 MEREDITH GEORGE Poems and Lyrics of the Joy of the Earth. London, 1883. 12mo. original cloth. uneut In a half blue moroeco slipease.
346 MONETTE. JOHN W. History of the Discovery and Settlement of the
Valley of the Mississippi. In 2 volumes. New York, 1848. Colored maps
and plates. 8vo. contemporary sheep (slightly rubbed), otherwise a fine.
First Edition Presentation copy from the author. with the following autograph inscription on the title-page 'G. W. Foote. Esq., with the author's
compliments. G. M.'
elean sound set.
347 MONROE. HARRIET. The Dance of the Seasons. Designs by Will H.
Bradley. Chicago, 1911. 12mo. original decorative wrappers. First Edition. with author's signature inscribed on fly-leaf. Fine copy. Searce.
338 MICHIGAN. Atlas of Oakland County. By F. W. Beers. New York. 1872
Square folio, original cloth and calf (backstrip seuffed). Binding worn
Contents good.
340 MILL JOHN STUART Inaugural Address. Delivered to the University
of St. Andrews, Feb. 1st, 1867. Medium 8vo, % red morocco. London. 1867.
First Edition Fine copy.
40
348 MONROE. HARRIET. You and 1. New York, 1914. Post Svo, original
cloth. First Edition. Very fine copy.
a
339 MILL JOHN STUART A. L. S., 3 pages, Avignon, Nov. 28. 1868. 18mo.
to G. W. Smalley, an American friend. About 220 words. A superb letter.
through
by the famous economist, reading in part: You have gone
harder fight than we are likely to have here. and the heroism with which
it was fought by the noble minded men of America through all the long
years of danger and difficulty, and finally through the sharp erisis of the
war. makes the liberals of all other nations look up to the advanced party
in America with respectful admiration
With author's autograph inscription, signed and dated on front end-paper.
349 MOORE. GEORGE Impressions and Opinions London. 1891. the 12mo, end.
original cloth. First edition. first issue, with 12 pp. of adv. at
Binding slightly soiled. otherwise fine.
350 MOORE. GEORGE Modern Painting. London. 1893. 12mo, original
cloth. First Edition With 24 pp. of adv. at the end. Nice copy.
41
351 First
MOORE.
GEORGE
Sister Teresa. London, 1901. 12mo, original cloth
Edition
Fine copy.
352 cloth.
MOORE.
The copy.
Untilled Field. London, 1903. 12mo. original
FirstGEORGE
Edition Fine
353 MOORE. THOMAS Famous Author. A. L. S., Nov. 1, 1813. Mayfield
Cottage, Ashbourne, Derbyshire. 5 full pages 4to, referring to "A erisis
of my life." Reading in part. "I intended to have made a point of your
paying a visit to this cottage, and seeing me in the character of Husband
and Father; and vagabond as I have been."
360 MUIR, JOHN. The Mountains of California. New York 1901. Large 12mo,
cloth. Original portrait of author mounted on the inside of front cover.
and signed by the author on front end-paper. Very fine copy.
361 MURRAY, JOHN MIDDLETON An extremely fine collection of 20
A. L S. and cards from the editor of the "Adelphi Magazine," all addressed to Arnold Bennett, and of very great literary interest, discussing
the progress of the magazine and mentioning many of the writers who are
working for it. 1920-9. Middleton is the distinguished husband of Katherine Mansfield Several of the letters are initialed and dated by Bennett.
WITH ARNOLD BENNETT MANUSCRIPT
A long letter follows relating to his hoped-for appointment to go to India
with Lord Morris However the appointment failed and he refers to it
as "a erisis of my life." Failing of political appointment he relates his
hardships, 'and must employ myself heneeforward more substantially.I am about a work. etc. Apparently Moore had been heavily in debt
and had suffered many trials,
354 MORMONS Utah and the Mormons. By Benjamin G. Ferris. New York,
1854 12mo. original cloth. First Edition Fine copy.
362 NASH, PAUL 12 Autograph Letters signed, and 2 Autograph Cards, to
Arnold Bennett, about 24 pages. An interesting series on literary and
artistic subjects, 1919-24
Together with the original MS., signed. of Bennett's Introductory Note.
about 600 words, which was perfected to a catalogue of the exhibition of
Nash's work. With a galley proof of the introduction. corrected by Bennett. Nash, one of the foremost modern artists, is best known by his
work in the 'Seven Pillars'' and his illustrations to numerous private
press books.
355 MORMONS Mormon Wires: a Narrative of Facts Stranger than Fiction
By Metta Victoria Fuller. New York, 1856. 12mo, original eloth. First
Edition Sound clean copy Bookplate.
356 MORRIS ROBERT Signer of the Declaration of Independence, Superintendent of the finances of the U. S. during the Revolutionary War.
D. S. 4 pp., folio. Philadelphia, October 9. 1794.
Share certificate for $500 in the Asylum Company, signed by Robert Morris, president. and James Dunean, secretary. An interesting relie of the
unfortunate land speculations in which the venerable financier lost the
whole of his large fortune, and caused him finally to end his days in a
debtor's prison. Autograph
357 MORRIS WILLIAM. The Art of the People. Chicago, 1902. Royal Svo,
original boards and calf. Limited to 215 copies Sir Galahad, A Christmas Mystery. The Blue Skye Press, Chicago, 1904 Small 8vo. original
boards Limited to 500 copies, Together 2 fine volumes,
358 to MOTLEY J. LOTHROP A. L S., 2 pages, 16 mo. London, Jan. 6. 1876,
My dear Bowdoin, introducing the Hon R. Leslie Melville, son of the
Earl of Lever. About 120 words
359 boards,
MOTTRAM,
R. H. Castle
blue buekram
back Island, London, 1931. Demy 8vo, original
by First the Edition, on large paper. limited to only 150 numbered copies signed
author. Very fine copy.
363 NATURAL HISTORY The Standard Library of Natural History Embracing Living Animals of the World and Living Races of Mankind N.Y.,
1907. Small 4to. % red leather (slightly rubbed). Five volumes
Contains nearly 2,000 illustrations including many full-page plates in color.
364 NEWTON. A. EDWARD This Book-Collecting Game. With Illustrations. Boston, 1928 Large 8vo. decorative boards and buckram LargePaper First Edition. limited to 990 numbered copies, signed by the author.
Very fine copy. boxed.
WITH A LONG INSCRIPTION
365 NICHOLSON, MEREDITH. A Hoosier Chronicle With Illustrations by
F. C. Yohn. Boston, 1912. Large 12mo, original cloth. First Edition
Immaculate copy. in the original dust jacket, of a High Spot.
With long full-page inscription by the author. about 130 words, signed.
regarding the book. "a story of mine own people, identifying the characters and some of the incidents described in the book with persons he had
known and events that had taken place. With additional inscription on
half-title, signed. A superb and unique association item in the finest
condition.
366 NONESUCH PRESS The Seasons. By James Thomson. With Pietures Wide by
Jacquier, and an Introduction by John Beresford London. 1927
imperial 8vo. decorative boards, deckle edges. Limited to 1500 numbered
copies. Very fine copy.
43
42
367 NONESUCH PRESS The Seasons. By James Thomson. With 5 pietures
(in color) by Jaquier, and an introduction by John Beresford London,
1927. 4to, decorated cloth. Very fine copy.
Limited to 1500 numbered copies
368 NONESUCH PRESS The Songs of the Seasons. Edited by Peter Warlock. The Nonesuch Press, 1925. Post 4to. vellum boards. With wood engravings by W. M. R. Quick Limited to 875 numbered copies. Very fine
copy, with d.w.
369 NOYES, ALFRED The Lord of Misrule, and Other Poems. With frontis
piece in colour by Spencer Baird Nichols New York, (1915) Large post
Svo, original illustrated cloth. First American Edition Fine copy.
With author's signed and dated inscription on front end-paper.
370 OHIO. History of Wayne County, Ohio, from the days of the Pioneers to
the present time. By Ben Douglas. Portraits Indianapolis, 1878 4to,
calf. Very good copy
371 (OLDMIXON, JOHN). Clarendon and Whitlock Compar'd With a Comparison between the History of the Rebellion and other Histories of the
Civil War. London, 1727. Small 8vo. orig. calf (covers loose). Contents
fine.
377 PARKMAN, FRANCIS 2 A. L. S., each 4 pages, 12mo. Boston. July 2.
and July 8, 1856, to (H. K. Morris), regarding an exchange of colonial
documents and manuscripts, in which the famous historian disensee 'The
Conspiracy of Pontiac." Two fine long letters, totalling about 500 words.
378 PAYNE, JOHN English Poet, two A. L. S. 1882. London, altogether 5
pp. 12 mo. Granting permission to select from his poetry for an anthology,
and stating requirements
379 PECK, GEORGE W. Peck's Bad Boy and His Pa. With illustrations by
Gean Smith. Chicago, 1883. 12mo. original cloth.
First Edition. Backstrip faded and ink spot on rear cover, otherwise a
very good, sound copy. Searce.
380 PENNELL, ELIZABETH ROBINS Nights. Rome. Venice, London and
Paris With 16 illustrations Philadelphia, 1916 Small Svo, original cloth.
First Edition Fine copy
With author's signed and dated inscription on half-title The frontispiece
portrait of Joseph Pennell is signed by himself. An interesting association
item.
381 PERIODICAL, OLD OHIO AGRICULTURAL The Cincinnatus Volume
I. 1856. Published at Farmers' College. College Hill. Ohio. Cineinnati,
1856. 8vo. original cloth.
372 ORCUTT, WILLIAM DANA. The Spell. Illustrated New York. 1909.
12mo, cloth. First Edition Very fine copy. Author's presentation copy,
with signed and dated autograph inscription on front end-paper.
373 OREGON Ten Years in Oregon. Travels and Adventures of Doctor E
White and Lady West of the Rocky Mountains, etc. Compiled by Miss
A. J. Allen. Ithaca, N. Y., 1848 12mo. original cloth (backstrip seuffed
and worn). First Edition Contents very good. Very rare.
382 PHILADELPHIA Plan of the City and Environs 1811. 20x18 inches.
Drawn under the direction of J. A. Paxton, by Wm. Stickland. Somewhat
broken at folds and time-stained
383 PHILLIPS, DAVID GRAHAM Susan Lenor, Her Fall and Rise. With a
Portrait of the Author. New York. 1917. Large 12mo. eloth. 2 volumes.
First Edition. One of Merle Johnson's "High Spots. Fine set. Searce.
374 PAGE. THOMAS NELSON Marse Chan. a Tale of Old Virginia Illustrated by W. T. Smedley. New York, 1915 Square post Svo. original
cloth. Presentation copy. with author's signed autograph inscription. dated
July 28, 1916, on half-title Very fine copy
375 PAINE, THOMAS Common Sense: Addressed to the Inhabitants of
America London, 1792 12mo. old boards, calf back (rubbed), contents
fine. Frontispiece portrait. With autograph of Rob't Pitt' and bookplate of George Pitt.
376 PAINE, THOMAS The Life and Works of. Life of Paine, by William
M. Van der Weyde. With an introduction by Thomas A. Edison New
PINERO MANUSCRIPT
384 PINERO, SIR ARTHUR W. Original autograph manuscript 'Dr. Harmer's Holidays," 4to. 89 closely written pages in ink. (London, 1924). In
cloth slipease. A fine manuscript by this famous English playwright.
385 PLAYS, OLD AMERICAN. Collection of volumes, various sizes, uniformly and
bound in contemporary marbled boards calf backs Boston, New York,
Baltimore, 1810-50 Together 16 volumes Good to fine copies.
386 (POE, EDGAR ALLEN.) To Him Whose Heart-Strings Were a Lute.'
By Sarah Helen Whitman. In The Memorial: Written by Friends of the
Rochelle, New York (1925). Small 8vo. original cloth, paper labels Ten
Late Mrs. Osgood. Edited by Mary E. Hewitt. New York. 1851. 8vo. orig-
volumes.
inal cloth.
A fine, well illustrated set published by the Thomas Paine National His
torical Association As new, in the original dust jackets.
memorial to Poe by his fiancée.
Portrait frontispiece. Fine copy. A long poem, 13 stanzas, written as a
45
44
387 POE. EDGAR A. Marginalia. Six leaves from Graham's Magazine containing essays by Poe. (N. Y., 1846.) 8vo, red half morocco. Fine copy.
398 PUGILISM, AMERICAN. Large collection of clippings of photographs
and news stories, extracted mostly from the Police Gazette, in the 80's
and 90's including a number of the very scaree colored supplements, presenting a graphic and colorful picture of American pugilism in the latter
part of the 19th century. Mounted on pages of an old ledger. large folio.
388 POE. EDGAR ALLAN. The Purloined Letter. From Chambers Edinburgh Magazine, November, 1844. Now reprinted for the first time. Lon.
don, 1931. 8vo, wrappers. Limited to 325 numbered copies. Fine copy.
399 QUARTERLY, LITERARY Two Worlds. A Literary Quarterly Devoted
to the Increase of the Gaiety of Nations Edited by Samuel Roth. New
389 (POE, EDGAR ALLEN.) The Southern Literary Messenger. Richmond
1836. Svo, boards (covers loose). Volume I of this scaree magazine. Nos.
1-13, Aug., 1834-Sept., 1835, inel. Contents fine.
In the summer of 1835 Poe joined the staff of the magazine, and before
the end of the year became its editor-in-chief. The pages contain, therefore,
numerous reviews, essays, poems and tales by America's greatest literary
York, 1925-6. 8vo, paper covers. Volume I, Nos. 1-4, inclusive 4 volumes,
each boxed. Limited to 500 copies. Fine set.
QUILL PEN USED BY WILSON TO SIGN WAR BILL
400 WILSON, WOODROW. Quill Pen used by President Woodrow Wilson
to sign war bill: and presented to Henry T. Rainey, Speaker of the House,
with an autograph note attesting this fact written by Mrs. Rainey. Probably one of the greatest mementoes of American History.
genius.
390 PONY EXPRESS Reproduction of a Painting by H. C. Edwards, show.
ing Robert Haslann, Pony Bob, on a galloping horse, carrying the mail,
warding off an Indian attack. Process print, 15x20 inches, in color, framed
401 RARE BOOK CATALOGUES OLD. Collection of bound volumes of dealers' and auction catalogues, English and American, 1823-1875 8vo, boards
and sheep (3 bindings broken). Together 6 volumes Contents very good.
391 POSTAGE STAMP First day cover, with typed letter to Henry T. Rainey,
Speaker of the House, from Jim Farley. 1 p. 8vo, Apr. 19, 1933. Letter
reads in part, 'My dear Henry, The stamp attached to this envelope is one
of the first Proclamation of Peace commemorative stamps sold and disJim.'
patched from Newburgh, New York, today
"THE OLD SWIMMIN'HOLE"
402 RILEY. JAMES WHITCOMB. The Old Suimmin'-Hole," and 'leven
More Poems By Benjamin F. Johnson. of Boone. Indianapolis, 1883.
16mo, original wrappers (slightly chipped at top and bottom of spine).
392 PRESCOTT, WILLIAM. A. L S., 2 pages, 12mo, Salem, (Mass.). Sept.
18, 1794. regarding legal matters, by the father of the famous historian
About 80 words.
The has two exceedingly small stains, rare and First there Edition is a name of Riley's in ink first at the book. top Front margin; wrapper other-
wise a nice copy of this rarity.
393 PRESCOTT. WILLIAM H. History of the Conquest of Peru, with a Preliminary View of the Civilization of the Ineas. In 2 volumes. New York,
1847 8vo, original cloth. Inscription on front fly-leaves: some foxing:
otherwise a fine. sound set of the searee First Edition.
403 RILEY, JAMES WHITCOMB. The Lockerbie Book, Containing Poems Not
in Dialect. Collected and Arranged by Hewitt Hanson Howland Indianapolis, (1911). 16mo, original flexible moroeco, gilt edges. First Collected
Edition Very fine copy
With author's signed inscription on fly-leaf.
394 PRESCOTT. WILLIAM H. Works, Phila.. n. d., 12mo, % maroon calf
and marbled boards, gilt panelled backs, gilt tops. Set 16 vols. Choice
THE ART OF POETRY:
MRS. BROWNING, POE, AND RILEY
library set.
395 PRESIDENTIAL PORTRAITS Collection of 5 portraits, in brown wood
404 RILEY, J. W. A. L. S., 3 full pages, sm. 4to, in pencil, to Dear Mathews,"
Indianapolis Journal (office) Mar. 4. 1883. An extremely interesting long
letter on the art of poetry, written the same year as "The Old Swimmin'-
frames, eneased in glass, large folio size, of Presidents Garfield, Cleveland,
Buehanan, Arthur, and McKinley.
Hole."
396 PRIVATELY PRINTED EDITIONS James Whitcomb Riley's Letter
from Boston. Written when he first felt he was gaining Recognition Home! Sweet Home! By John Howard Payne. A Reproduction of the
"When God turns loose a Mrs. Browning, then we stand back awed and
mutely glorying.'
'In the Poe sonnets, the work is splendid-masterly in parts. Only It the is
theme is joyless and that hurts the success of such an effort
what hurt Poe, and will always drape his memory with gloomy speculations
and unsatisfying contemplations He was a marvelous intellect-perhaps
Author' s Manuscript of the Poem Holograph Letter of Charles I. Formerly in the possession of John Evelyn. Together 3 volumes, various dates
boards and wrappers, privately printed by William K. Bixby, St. Lesis,
Mo. First Editions, limited to 500, 500, and 200 copies, respectively. Fine
as estranged from himself as from all of his kind Anyway, he seems, always,
copies
to unhappy, and his influence always cheerless.
me, the we love the best, the poems that really live. have always
397 PROPAGANDA POSTERS, GERMAN. Collection of several hun d
h
colored posters, various large sizes, 1920-22. as propaganda of Die De
Nationale Volkspartei. "
blood and pulse poems and heart warmpth in them. There's the thing!"
47
46
405 RILEY, J. W. A. L. S., 3 pp. 8vo., Buffalo, Oct. 22, 1888, to R. U. John.
son (Century). A beautifully sincere letter, reading in part, It is the
praise, though. that I don't seem at all worthy of that worries me scares
me, in fact, since ! 've nothing now ahead of me but to earn it- 'cause much
as I drub myself for not deserving it. I can't let loose of it now it's be
stowed. so. as I say, in justice I must make it rightfully mine by future
effort. and God knows how all your friends have heartened me in that
resolve.'
414 ROGERS, BRUCE The Banquet of Plato. Translated by Perey B. Shelley.
Chicago, Way & Williams, 1895. Small 12mo, buekram Name on fly-leaf.
Bookplate. A scaree Bruce Rogers incunabulum
415 ROGERS, BRUCE. Hydriotaphia. Urne-Buriall : or, A Discourse of the
Sepulchral Urnes lately found in Norfolk By Sir Thomas Browne, D. of
Physick. The Riverside Press, 1907. Post 4to, elaborately tooled morocco,
as issued. (rubbed). Limited to 385 numbered copies printed by Bruce
Rogers. Contents fine.
406 RILEY. J. W. Two A. L. S., Ind. Apr. 26, 1890, to Mr. Johnson (Century),
1 full page 12mo, about literary matters generally; and another to Carey
(Century) about the publication of his books The latter letter has a corner
torn. out: the first listed is perfect.
407 RILEY, J. W. A. L. S., 1p. 12mo, Ind., Sep. 11. 1890. to Mr. Johnson
(Century).
"Simply, always count me in for anything you Century friends want me
to do: you have done more for me and my work than ever I dared hope for:
and you must know that my appreciation of that vast kindness is most
enduringly and feelingly treasured."
408 RILEY, J. W. A. L. S., 1 p. 12mo, Toronto, March 16. 1893. to Johnson
(Century).
416 ROOSEVELT. THEODORE Photograph of President Roosevelt on the
lawn of Vice-Pres. Fairbank's home in Indianapolis, 1907. In the group
are many famous persons Senator Beveridge, James Whiteomb Riley, and
other famous Indiana Statesmen and writers. Photo. measures 10 x 26,
framed.
417 ROOSEVELT. THEODORE The Strenuous Life. New York, 1911. 12mo,
original cloth. Very fine copy. With inscription, signed and dated by the
author, on front end-paper.
418 ROSTAND, EDMOND. Cyrano de Bergerac. Comédie Héroique en Cinq
Actes, en Vers. Paris, 1915. Post 8vo, original paper covers. Fine copy,
signed by the author.
419 ROWLANDSON, THOMAS The Military Adventures of Johnny New-
"The only eritie yet to recognize that I am first a serious, honest-to-God
singer- what I've always, all so lonesomely, felt myself to be, though not
a scholarly one, of course. Therefore, God bless M. W. Hazeltine!'
come, with an account of his Campaign on the Peninsula and in Pall Mall:
with Sketches, by Rowlandson and Notes. With 14 colored plates designed
and etched by Rowlandson Original boards, back-strip renewed, unopened.
8vo, London, 1816.
409 RILEY, J. W. A. L S. ("Jamsie") 1 p. 12mo. Ind., Apr. 26. 1897.
I can go on saying good things of you and your art till death do
us part. As ever your affectionate Jamsie.
410 RILEY. J. W. A. L. S., 1 p. 12mo, Ind. July 1, 1901, to Mr. Johnson
(Century). Signed in full James Whiteomb Riley. As to the 'humorous'
contribution you ask from me:-If the Century can use another group of
Hoosier Child rhymes, I can supply same certainly.' etc.
411 RILEY, J. W. A. L. S., 1 p. 12mo. Ind., June 7. 1905. to Mr. Johnson
(Century).
"Cheer and Godspeed over the fine prospect of the Keats memorial inherewith find check for 100 dollars the very most willinest
J. W. Riley."
contribution ever let loose of by the horny hand of
terests
412 ROBERTSON, WILLIAM. The History of the Reign of the Emperor
Charles V. In 3 volumes. London, 1769 4to, contemporary calf. First
Edition Very good set.
413 ROCHETERIE, MAXIME DE LA. The Life of Marie Antoinette Trans
lated from the French by Cora Hamilton Bell. New York, 1893. Tall Svo,
original white cloth. 2 volumes. First Edition in English of this important
work, crowned by the Academie Francaise. Large-paper Edition, limited
to 160 numbered sets. Very fine set, with d.w.
48
Second edition. Very good copy.
420 RUSKIN, J. A group of 4 A. L. S., 3 of them to Mrs. Scott and Miss
Scott, together 9 full pages 12mo, Cheshire, no dates, relating to Miss
Scott's painting, Mr. Scott's work and personal matters. The Scotts here
referred to lived in Manchester.
421 SANDBURG, CARL Smoke and Steel. New York, 1920. 12mo, cloth.
Very fine copy, with d.w. - Slabs of the Sunburnt West. New York,
(1922). 12mo, cloth. Nice copy. Together 2 First Editions
422 SANDBURG, CARL Rootabaga Stories. Illustrations and Decorations by
Paul and Miska Petersham. New York, (1922). Post 8vo, cloth - Rootabaga Pigeons. Illustrated New York, (1923). Post 8vo. cloth. - Potato
Face. New York, (1930). 12mo, cloth. Together 3 First Editions Immaculate copies, with d.w.
423 SANBURG, CARL American Poetry. A Miscellany. New York (1927). SandLarge 12mo, cloth. Contains first appearances of several poems by cloth.
burg. Good Morning, America. New York, (1928). Post d.w. 8vo,
First trade - edition. Together 2 volumes. Mint copies, with
424 SAINT-PIERRE, BERNARDIN DE. Paul & Virginia. With a Memoir Limited
Illustrated by Lalauze. Edinburgh, 1881. 12mo, full calf. g.t.
to 433 numbered copies.
49
THE NUREMBERG CHRONICLE
425 SCHEDEL, HARTMANN. Das Buch der Chroniken und Geschichten,
Translated from Latin into German by George Alt. 297 leaves (not hav.
ing the blanks). Gothic type, double columns, 59 lines and head lines
Profusely illustrated throughout with fine woodeuts, some full page and a
double-page woodeut map of the world: the first capital letter of the Index
is illuminated in red and blue, other capitals of the Index rubricated in
red The first capital letter of the text on folio 1 illuminated in red and blue.
A few of the woodeuts coloured by a contemporary hand. The rare map
at the end is present but a corner of the last page supplied in clever pen
and ink facsimile. The woodeut of Pope Joan is unmutilated Folio, old
half calf. Nuremberg Anton Koberger, 1493.
First Edition of the Nuremberg Chronicle in German, much rarer than the
Latin edition printed by Koberger in the same year. The Nuremberg
Chronicle is possibly the most beautiful book ever printed. Its woodcuts
contain views of all the cities of the known world, illustrations of Biblical
history and of natural history, portraits of well known people, a fine half
page surgical illustration, the Dance of Death, the Last Judgment. etc.
426 SCIENTIFIC AMERICAN. Vols. 1 and 2. Nov., 1885-Dec. 1886. Complete in 1 volume. Atlas folio. % morocco and marble boards With all
the colored supplements for architecture Very rare. Fine copy.
430 SHAKESPEARE (PLAYERS'). The Tragedie of Cymbeline. Printed
from the Folio of 1623. London, 1923. Large 4to. original boards, cloth
back. paper label. As new, with d.w.
Beautiful edition printed on pure rag paper at the Shakespeare Head Press.
Limited to 450 numbered copies. With line blocks by Messrs. Emery Walker,
and illustrations in color by Albert Rutherston
431 SHARP. WILLIAM. A. L. S., 4 pages, 16mo, Heidelberg (Germany), n.d.,
to "My dear Langbridge. . A superb, long intimate letter to a friend,
expressing sympathy for his "heavy pecuniary loss. In part: "Meanwhile I can give a small gift by begging you to reserve five copies
of your book they must be sent to quarters where special attention
will be paid to them
"SENTIMENTAL IDIOTS OF AMERICA'
432 SHAW. GEORGE BERNARD A. L S., Braemar, 20 July, 1924. 2 full
pp. 12mo. A superb letter on the subject of his lecturing in America
Reads in part: "It is very kind of you to come 3000 miles to see me. and
very unkind of me to go 500 miles to avoid you: but after 25 years of
the most pressing invitations to lecture in America I am tired of the sub- the
jeet
WITH FINE PLATES
427 SCROPE. WILLIAM, The Art of Deer-Stalking: with some account of
the Nature and Habits of Red Deer, and a short description of the Seotch
forests, legends, etc. By William Serope, Esq., F. L. S. Illustrated by
Engravings and Lithographs, after paintings by Edwin and Charles Landseer, Esqrs., and by the Author. London. 1838. Royal 8vo, original cloth.
The rare First Edition of this important sporting book. Front inner hinge
very slightly eracked, otherwise a fine elean sound copy.
THE RARE FOURTH FOLIO
428 SHAKESPEARE, WILLIAM. Mr. William Shakespeare's Comedies, His
tories, and Tragedies. Published according to the true Original Copies.
Unto which is added, Seven Plays Never Before Printed in Folio: Folio,
contemporary calf, neatly rebacked. London: Herringham, etc., 1685. In
half calf slip-case.
The rare Fourth Folio of Shakespeare. The first two leaves, two leaves
of the text and a part of the last leaf in excellent facsimile. Otherwise a
fine copy, measuring 13% x 81/2 inches,
429 SHAKESPEARE (PLAYERS'). Love's Labours Lost. Newly Printed
from the Folio of 1623. London, 1924. Large 4to, original boards, cloth
back, paper label. As new with d.w.
Beautifully illustrated in color by Norman Wilkinson, with line block by
Messrs. Emery Walker. The fine Shakespeare Head Press Edition limited
to 450 numbered copies.
etc. Altogether over 400 words.
I am aware that America exists a large number of
sentimental idiots of America have also exhausted all the unworldly reasons
interAn
why I should lighten the darkness of that benighted land
view with me for publication would cost your editor about $1250: and he
would probably prefer to have my views at first hand at that price. You
forget that I am a professional journalist, and do not need any intermediary when I have views for publication.'
"SLAP IN THE FACE"
433 SHAW, G. BERNARD A. L. S., 1 Aug. 1924. Strathpeffer to Symon
Gould, Jr., London. A magnificent Shaw letter reading as follows:
"Your budget of invitations, which I return herewith, is the most frightful of
failure on record. You have not got the President, nor any member
the cabinet, nor M. La Follette, nor a single magnate of the New York
daily press. But for Mr. Debs and Princeton University I should Evidently regard
this as the most startling slap in the face I have ever received
my credit in the United States has waned very considerably.'
434 SHAW, GEORGE BERNARD The Author's Apology from covers Mrs. War-
ren's Profession. N. Y. 1905. Foolscap 8vo. original paper
First Edition Very fine copy
435 GEORGE BERNARD Plays: Pleasant and Unpleasant. Hints. London, 12mo,
SHAW, 1898. Small 12mo, original cloth. 2 vols. Peace Conference
original wrappers. Together three volumes.
First Editions Backstrips faded. Good copies.
51
50
436 SHAW, GEORGE BERNARD The Sanity of Art: An Exposure of the
Currentwrappers.
Nonsense about Artists being Degenerate. London, 1908 16mo,
original
First Edition, first issue. Inscription on half title. Fine copy.
444 'SPANISH BOCCACCIO, THE The Tales of. Count Lucanor: or, The
Fifty Pleasant Stories of Patronio. Written by the Prince Don Juan
Manuel. And first done into English by James York, M. D., 1868. Illus
trated by S. L. Wood New York and London, 1889. Large square 8vo,
original boards and cloth, paper label. Limited to only 50 numbered copies.
Fine copy.
437 SHAW, GEORGE BERNARD Shaw on Shakespeare. In "Tolstoy
Shakespeare." London, n.d. Small 12mo, original wrappers. - Press Cut- on
tings. London, 1909. Small 12mo, original wrappers. Edna: The Girl
of
the Street.
By Alfred Kreymborg N. Y., 1919. Original wrappers
Together
three volumes.
First Editions Press Cuttings is of the 2nd issue. The last named con-
tains an unpublished Shaw letter. Mint copies.
438 SHELLEY, MARY WOLLSTONECRAFT The Life and Letters of Mary
Shelly, by Mrs. Julian Marshall With portraits and facsimile 8vo, 2 vols.
% brown crushed morocco, t.e.g. London, 1889.
First Edition, with bookplate.
445 SPENSER, EDMUND The Works of. Edited by J. Payne Collier, F. S. A.
London, 1862. 5 volumes, 8vo. brown grained calf, tooled backs, gilt designs on sides, gilt edges, marbled end-papers. Bookplates. A fine set of
this splendid edition.
446 STANTON EDWIN N. A. L S., War Dept., June 9. 1862. "Mrs. Colonel
Ellet and her daughter have permission to pass within the lines of the
U. S. Forces to Cairo on the Mississippi, and wherever else Colonel Ellet
may be. All officers and persons in the Service of the United States will
afford them courtesy, assistance and protection. etc. Signed in full,
Edwin M. Stanton, Secretary of War."
447 STEPHENS, JAMES The Crock of Gold. Drawings by Wilfred Jones
London, 1922 Small 8vo, boards and eloth. First Illustrated Edition
439 (SHELLEY, PERCY BYSSHE.) Shelley's Lost Letters to Harriet.
Edited with an Introduction by Leslie Hotson. London, 1930. Large royal
8vo, cloth. Limited to 950 numbered copies, signed by the editor. Mint
copy. boxed
440 SIMMS, JEPTHA R. The Frontiersmen of New York, Showing the Customs of the Indians, Vieissitudes of the Pioneer White Settlers and Border
Strife in Two Wars. In 2 volumes, illustrated Albany, N. Y., 1882-3
8vo. original cloth and sheep, respectively. Volume I is the First Edition
Fine set.
Very fine copy, with d.w. With the John C. Eckel bookplate, and book.
plate of W. Van R. Whitall, an intimate friend of James Stephens Laid
in is an A. L S., post 8vo, 2 pages, with addressed envelope, S.S. Majestic,
June 17th, 1925, to "My dear Van," in which he speaks of Hervey Allen
Hope to make port tomorrow, and see again lands that America
A good part of our best memory of America
tends to make one forget
is our memory of you, etc. Together with an envelope laid in, containing some rose petals, with the note, "A red rose given to me by Mrs.
James Stephens,' and an A. L S., written by some friend regarding a
reading by Stephens in the New York Public Library. A remarkable colflection of Stephensoniana
441 SMITH, F. HOPKINSON Colonel Carter of Cartersville With Illustra.
tions by E. W. Kemble and the Author. Boston, 1891. 12mo, original cloth.
First Edition, first issue, of an important "High Spot," with the illustration on Page 1. Front end-paper badly gouged, fly-leaf extracted, name
in ink on recto of advertising page, and small tear at hinge on spine.
Contents otherwise fine and sound. Rare.
48 STEVENSON R. L. Memories and Portraits. London, 1887. 8vo, original
buckram. In half morocco solander case.
Presentation copy inscribed, in the recipient's hand, "L A. Taylor, a gift
from R. L. S. 19 Wetherly Gardens, 1888. The autograph is that of
Lady Taylor to whom "Merry Men' was dedicated
449 STEVENSON R. L. The Wrecker. Illustrated by W. Hole and W. L
Metcalf. London, 1892. 8vo, original cloth, preserved in half morocco
442 1 SOUTHEY, ROBERT English Poet, A. L. S. Keswick, 19 Feb., 1829.
full page 8vo to a friend, in London, asking him to take care of a shipment of books from Holland, until he can get them.
443 SPALDING, ALBERT G. Baseball Historic Facts Concerning the Beginning, Evolution, Development and Popularity of Baseball. With Personal
Reminiscences, Thick etc. Cartoons by Homer C. Davenport. New York, 1911
First post 8vo. original cloth. Also numerous photographs of celebrities
Edition of this-the fan's bible." Very fine copy. Author's presc
tation copy, with signed and dated inscription on front end-paper.
52
slipcase.
First Edition Presentation copy. inscribed on the title: "I. A. Taylor
from R. L. Stevenson," in the hand of the recipient.
450 STEVENSON. R. L. Strange Case of Dr. Jekyll and Mr. Hyde. London,
1886. Small 12mo, original fawn-eolored paper wrappers.
The excessively rare First Edition in wrappers. Lacks backstrip and rear
wrapper; binding broken in center; text perfect and clean.
53
451 STEVENSON ROBERT LOUIS. In the South Seas, London, 1900. Large
12mo, original buckram.
First English Edition Fine copy.
452 STEVENSON R. L. & OSBOURNE, LLOYD. The Wrecker Illustrated
by William Hole and W. L. Metcalf. London, 1892. Tall 12mo, original
cloth. First Edition Fine copy. Searce.
453 STOCKTON FRANK R. Rudder Grange. New York, 1879. 12mo, original
cloth (backstrip faded and very slightly seuffed at top and bottom).
The scarce First Edition of the author's most sought after book and one
of Merle Johnson's best known "High Spots. The first issue, without
reviews or ads. of this title. A fine elean copy internally.
454 STOKER, BRAM. Personal Reminiscences of Henry Irving. New York,
1906. Thick 8vo, cloth. 2 volumes Illustrated First American Edition.
Nice set.
455 STRAWBERRY HILL A Parallel; In the Manner of Plutarch: Between
a most celebrated Man of Florence And One, searce ever heard of. in
England. By the Reverend Mr. Spence Strawberry-Hill, 1758. 12mo,
newly bound in brown antique calf, raised bands. A fine copy
The seventh book of the Strawberry Hill Press, in a charming binding
456 SUETONIUS Lives of the Twelve Caesars. Complete translation by H. M.
Bird. Illustrated by Frank C. Pape. 8vo. original cloth, bevelled edges.
Chicago, 1930. Edition de grande luxe, limited to 300 copies autographed
by illustrator and translator Mint copy, boxed.
457 SWINBURNE, A C. A. L S., with envelope, 1 p. 12mo, to Langbridge,
Jan. 11. '81, referring to his book in which appear his Christenas Antiphones,
requesting that they not be used separately in an anthology proposed by
Langbridge
461 TARKINGTON, BOOTH The Gentleman from Indiana New York, 1899.
Post 8vo. original cloth.
The scaree First Edition, first issue, with all of the points mentioned by
Merle Johnson, the ear of corn on spine upside down. The author's first
book. and an important "High Spot.' Fair copy.
462 TARKINGTON BOOTH Monsieur Beaucaire. Illustrated by C. D. Williams. New York, 1900. Large 12mo, original cloth.
First Edition, first issue, of this rare "High Spot," with the colophon
at the end of text measuring 1/2 in. in diameter. Very good, clean sound
copy, missing the distinction of being "Fine" by the 'breadth of a hair.'
463 TARKINGTON BOOTH. Monsieur Beaucaire. Illustrated by C. D. Williams. New York, 1900. Large 12mo, original cloth (slightly soiled and
spine somewhat rubbed).
The rare First Edition, first issue, the colophon at end of text measuring
1/2 in. in diameter, of the author's most famous book A very good copy
of one of Merle Johnson's important 'High Spots.'
464 TARKINGTON BOOTH. Seventeen. Illustrated New York, (1916.)
12mo. original cloth. First Edition, with "B-Q" on copyright page. Name
in ink on end-paper. Good copy.
465 TASSO, TORQUATO Jerusalem Delivered An Heroic Poem. With Notes
and Occasional Illustrations Translated by the Reverend J. H. Hunt.
In Two Volumes London, 1818. 8vo, old red calf, gilt borders, (rubbed),
one label missing on backstrip. Some writing on titles The first edition
of this translation.
466 TENNYSON LORD ALFRED. A. L. S. Cheltenham, Oct. 2, (1847),
3 full pages, to Coventry Patmore. Fine friendly and humorous letter,
promising Coventry aid in getting a position at the Museum, everyday
intending to write you, but my purpose always nipt in the bud by the fat
finger of sloth, or washed out by the sight of great lochs," etc.
SYMONS ON HENLEY AND KIPLING
458 SYMONS, ARTHUR Auto. Manuscript signed. 'The Revival of Henley"
12 full pages quarto, with one page of corrected printed copy comparing
Henley and Kipling. Also 10 page typescript with corrections and signed
again by Symons
459 SYMONS, ARTHUR. William Blake. New York, 1907. 8vo, original eloth.
The First Edition sheets with an American imprint. Very fine copy.
"THE LIGHT BRIGADE"
467 TENNYSON, ALFRED. A.L (3rd person), Isle of Wight. 1 p. 12mo, Mr.
April 10, '76. 'Mr. Alfred Tennyson presents his compliments to for
Hecht & has pleasure in accepting the dedication of his composition from
chorus and orchestra, The Light Brigade`. . Single leaf, creased
fold.
468 TEXAS. Biographical Souvenir of. Containing Biographical Sketches Illustrated of
460 TAGORE. RABINDRANATH Fruit-Gathering New York, 1916. Signed
by the author - The Hungry Stones, and Other Stories New York. 1916.
Apparently signed by the author in the Hindoo language. Together 2 fine
volumes, post 8vo, original decorative cloth.
the Representative Public, and Many Early Settled Families. Fine
Chicago, 1889. Thick 4to, publishers gilt brown morocco, gilt edges.
copy.
55
54
469 THACKERAY, WILLIAM MAKEPEACE The Virginians. With illus.
trations on steel and wood by the author. 2 vols., 8vo. 3/4 calf. Marbled
paper sides. London, 1858.
First Edition in book form. Fine clean copies.
479 VIRGINIA GENEALOGIES A Genealogy of the Glassell Family of Seotland and Virginia also of the Families of Ball, Brown. Bryan, Conway,
Daniel, Ewell, Holladay, Lewis, Littlepage, Moncure, Peyton, Robinson,
Scott, Taylor, Wallace, and others of Virginia and Maryland By Rev
Horace Edwin Hayden. Wilkesbarre, Penn., 1891. Imperial 8vo, buekram.
Good clean copy.
470 THEATRE, WESTERN. Dramatic Life as I Found It: A Record of Per.
sonal Experience; with an Account of the Rise and Progress of the Drama
in the West and South, with Aneedotes and Biographical Sketches of the
Principal Actors and Actresses Who Have at Times Appeared upon the
Stage in the Mississippi Valley. By N. M. Ludlow. St. Louis, 1880 Svo,
cloth.
480 VIRGINIA HISTORICAL COLLECTIONS. Abstract of the Proceedings
of the Virginia Company of London, 1619-24. By Conway Robinson Edited
with introduction and notes by R. A. Brock Richmond, Va., 1888. Royal
8vo, cloth, paper labels. 2 volumes, Fine set.
481 VIRGINIA HISTORICAL COLLECTIONS The Official Records of
471 THOMAS, W. W. U. S. Minister to Sweden under Arthur. Harrison and
McKinley. Photograph signed and framed 15 x 18.
472 TROLLOPE. ANTHONY. He Know He Was Right. With 64 illustrations
by Marcus Stone. London, 1869. Two volumes, 8vo, 3/4 morocco. First
edition. Fine set.
Robert Dinwiddie, Lieutenant-Governor of the Colony of Virginia, 1751-8,
Now First Printed, etc. With an introduction and notes by R. A. Brock
Richmond, Va., 1883. Royal 8vo, cloth, paper labels. 2 volumes. Good set.
482 VIRGINIA HISTORICAL COLLECTIONS Proceedings of the Virginia
Historical Society at the Annual Meeting, Dec. 21-2, 1891, with Historical
Papers Read on the Occasion, and Others, edited by R. A. Brock. Richmond,
Va., 1892. Royal 8vo, cloth, paper labels. Fine copy.
473 TROLLOPE, ANTHONY Ralph the Heir. With Illustrations by F. A.
Fraser. London, 1871. 8vo. 3/4 morocco. First edition. Fine copy.
474 TROLLOPE, ANTHONY The Way We Live Now. With 40 illustrations
London, 1875, Two volumes, 8vo. 3/4 morocco. A fine set of the first edition.
483 VIRGINIA Sketches and Recollections of Lynchburg. By the Oldest
Inhabitant. Richmond, 1858. 12mo, original cloth. Margins of a few pages
somewhat stained; otherwise a fine copy of this rare book. Contemporary
inscription in ink: William D. Ellet, from his friend, Margaret C. Cabell.
484 VOYAGES. Sailors' Narratives along the New England Coast, 1524-1624.
475 TRUMBULL HENRY. History of the Discovery of America, of the Landing of our Forefathers at Plymouth, and of their most remarkable Engagements with the Indians With the Defeat of Generals Braddock, Harmer,
and St. Clair, by the Indians at the Westward. etc. Norwich, (Conn.),
1812. 12mo. original sheep. Colored engravings. First Edition. Good copy.
With Notes by John Carter Winship. Boston, 1905. Royal 8vo, cloth.
paper label. Boston, 1905. Illustrated Designed by Bruce Rogers, and
limited to 440 numbered copies. Fine copy
A RARE FIRST EDITION
Scaree.
476 UPDIKE, DANIEL BERKELEY Printing Types. Their History, Forms.
and Use. A Study in Survivals With Illustrations Royal 8vo. eloth. 2
volumes, Fine set. boxed.
477 UZANNE, OCTAVE. The Book-Hunter in Paris. Studies among the Bookstalls and the Quays. With a preface by Augustine Birrell. London. 1893.
Large 8vo, illustrated buckram First Edition. Fine copy. Bookplate and
neat name in ink on end-paper. With author's A. L. S., 16mo. Paris Jan.
23, 1894. 1 page mounted on fly-leaf.
485 WALLACE, LEW. Ben-Hur. A Tale of the Christ. New York, 1880. somewhat 12mo,
original light blue pictorial cloth (slightly soiled and spine
faded).
The First Edition of this important "High Spot.' Lightly and written on
rare in ink on front end-paper. Text fine and unspotted,
inscription the whole a far better than average copy of a book that rarely appears
in good condition.
486 WASHINGTON GEORGE. Journal of My Journey Over with notes the Mountains, by J. M.
Neck of Virginia, in 1747-8. Edited 3 volumes.
in Toner, the Northern M. D. Albany, 1892. Square 8vo, paper boards, as issued.
478 VIRGINIA COMPANY, LONDON The Records of the Virginia Company of London. The Court Book, from the Manuscript in the Library of
Congress. Edited, with an introduction and bibliography, by Susan Mirra
Kingsbury. Preface by Herbert Levi Osgood. Washington, D. C., 1906.
2 volumes, Thick 4to, cloth. Fine set.
56
1 backstrip damaged. Contents fine.
The First Complete Edition, being the earliest literary effort of "The
Father of His Country."
57
487 WATSON, MATTEW A New and Complete Explanation of the Com.
mon Prayer Book Embellished and Ornamented with a Set of numer.
ous
and elegant
contemporary
calf.Copper-Plate engravings. London (1795). Small folio,
495 WHITE, STEWART EDWARD The Silent Places. New York, no date.
12mo, original cloth. Very fine copy. Autograph Presentation Copy.
496 WHITEHEAD, CHARLES E. The Camp-Fires of the Everglades, or,
Wild Sports in the South. Edinburgh, 1891. Royal 8vo. cloth. gilt top,
other edges untrimmed. Nice copy of this interesting work, with fine full-
First Edition,
Contents
fine. containing many splendid full-page copper-plate engravings
488 WEBSTER, DANIEL A. L. S., 2 pp. 4to, Boston, April 20. 1822, to
James Sheafe, Esq. Reads in part: "The question arising in the case of
the Augustus was one of the most interesting and difficult questions growing
out of the Treaty. It affected sundry cases. Mr. Pinckney and myself
presented arguments on this question, which cost us both some time and
pains. The latter part of January, as I remember, the Commissioners decided this question favorably and other cases embraced by it. The general
question
was rec'd. being thus decided, the memorial in the case of the Augustus
489 WEST. BENJAMIN. A. L. S., 1 page, post 4to, London, July 29. 1817,
to an English Peer. introducing Charles Forbes, M. P. A fine letter by
this eminent American painter, who, having attracted the patronage of
George III, succeeded Sir Joshua Reynolds as president of the Royal
Academy in 1792. With engraved portrait of the writer. About 165 words
page illustrations
The Florida Pocahontas, Turkey-hunting, Turtle-spearing Tarpon-fishing,
etc., in the Old South.
A MAGNIFICENT LETTER
497 WHITTIER JOHN G. A. L S., 4 pages, 12mo, Amesbury, (Mass.). Nov.
15, 1864. A superb, affectionate letter to Mrs. Child. an old friend, thank-
ing her for the gift of a book. In part: "I am thinking how much my
sister would have liked thy book How strange and terrible are these separations- this utter silence-this dumb agony of mystery -this reaching
out for the love, which we feel must be ever-living. but which gives us no
sign Let theology & hate & bigotry talk as they will. I for
one
will300
Over
etc.
hold fast to this God is good-He is our Father
words A magnificent letter by one of America's most beloved poets.
FROM JOHN BRIGHT TO WHITTIER
490 WESTCOTT. EDWARD NOYES David Harum. A Story of American
Life. New York, 1898 Large 12mo, original cloth. First Edition of this
scaree 'High Spot." Inscription on front end-paper. otherwise a nice,
clean copy.
491 WEST, EARLY Statistics of the West, at the Close of the Year 1836
By James Hall. Cineinnati, 1836. 12mo, original cloth (slightly worn).
First Edition. Some foxing. and writing on end-papers. A sound copy.
Rare.
498 (WHITTIER, J. G.) A most remarkable letter from John Bright, English
Statesman and Champion of Freedom. to Whittier. American poet. 7 pp.
12mo, London. 3/18/85. regarding the British government's 'slaughter in
Egypt under Gordon.
"The employment of Gordon by our gov't was a grievous blunder
Is it possible that our most famous Poet whose writings are a constant
defenee of justice and mercy, can lend his pen to glorify a man whose
man distant
reputation is founded solely on his passionate engagement in war in outside
countries Forgive me for writing this letter No
492 WEST. FAR The Awakening of the Desert. By Julius C. Birge With
his own family has a greater interest in the reputation of our New England
Poet than I have. No one will more regret if he should attempt to show
Illustrations Boston, (1912), Large 12mo, buckram Remarkably fine reminiscences of an old pioneer.
It has
that Christianity & multitudinous slaughter performed and practised make
the sort of hero which our children are to admire and imitate
cost me something to write this letter-it will not I think be misunderstood
493 WEST. JAMES (PRESIDENT OF THE ROYAL SOCIETY.) A. L S.,
1 page, post 4to, Covent Garden, Jan. 18, 1764. requesting someone look
499 WHITTIER, JOHN G. Poems Philadelphia, 1838 Small 12mo. original
cloth (backstrip worn).
The rare First Edition. Text more or less foxed. as usual. Contents good.
into the will" and to ascertain 'by what act or in what office was made
the resignation of John Bell, Bishop of Worcester, who is the only bishop
I can find who has resigned since the Reformation About 125 words,
mounted on a sheet.
500 WIGGIN, KATE DOUGLAS A Child's Journey with Dickens Boston,
494 WHITE Nov. RICHARD GRANT. American Satirical Writer. Two A. S.
the 15, 1862. to his publishers about his edition of the "Book Hunt
otherMagazine.
A. L. S., 4 pp., May 15, 1856, regarding his contribution
Putnam's
(1912). 12mo, original boards and cloth. First Edition Very like fine best copy.
to
with superb autograph inscription Which of my books do you the best
asked Dickens. & I said. Oh ! I like David Copperfield much
Kate Douglas Wiggin.
59
58
501 WIGGIN KATE DOUGLAS. Penelope's Experiences. Boston, 1901. 16mg
original cloth. Nice copy. - The Diary of a Goose Girl Illustrated Boston,
1902. 12mo,
decorative
cloth Immaculate copy. with d.w. (piece torn
away).
Together
2 First Editions
502 WIGGIN. KATE DOUGLAS Rebecca of Sunnybrook Farm. Boston, 1903
12mo. original cloth. First Edition An immaculate copy in the original
dust jacket (partly torn). Scaree in such fine condition
503 WILCOX. ELLA WHEELER Poems of Power Chicago, no date. Large
12mo. cloth. With autograph poem, 4 lines signed by the author on front
end-paper.
- Custer, and Other Poems Chicago, no date. Together 2 fine
volumes.
504 WILSON, WOODROW Collection of First Editions, comprising John
Wesley's Place in History, The Free Life, Why We Are at War, International Ideals, Address of the President of the United States (to Congress),
President Wilson's State Papers and Addresses Various dates, sizes, bindings. Together 6 volumes, fine to mint copies with d.w.
511 YEATS. W. B. T. L. S. Abbey Theatre, Dublin March 16. 1910, to Canon
Langbridge, 1 p. 4to, with two lines in Yeats' autograph at end. Fine letter relating to a play of Langbridge's which Yeats and Lady Gregory are
criticizing. Yeats writes in detail how he would revise it.
512 YEATS, W. B. Autograph poem, 2 pages, large 12mo, no place, no date:
"To a friend who promises a bigger subscription than his first to the Dublin
Municipal Gallery and the amount collected proves that there is a considerable 'popular demand' for the pictures. A probably unpublished
poem, 36 lines, about 250 words.
513 YUCATAN, JOHN L. Incidents of Travel in Yucatan. Illustrated by 120
engravings. In 2 volumes, New York, 1843. 8vo. original cloth Folded
frontispieces. First Edition Nice clean set. Searce.
514 WORLD WAR POSTERS, FRENCH. Collection of 4 original colored
posters, extra-large atlas folio folded, in fine condition.
505 WILSON WOODROW. Division and Reunion. 1829-1889. With 5 maps.
New York, 1893. 16mo. original cloth. First Edition. Fine copy
506 WILSON, WOODROW. The Road Away from Revolution Wide 24mo,
original boards, paper label. - The New Freedom New York. 1913. 12mo.
original cloth. Together 2 very fine First Editions.
507 WILSON WOODROW. When a Man Comes to Himself. New York. 1915
16mo, original cloth. Fine copy. With the author's autograph signature
inscribed
on the half-title Books inscribed by Woodrow Wilson are very
scarce.
508 WITHERS, ALEXANDER S. Chronicles of Border Warfare: or, A History of the Settlement by the Whites, of Northwestern Virginia: and of
the Indian Wars and Massacres, etc. Clarksburg. Va., 1831. Small 12mo,
old calf (worn). Somewhat foxed. Good copy.
vivid First pictures Edition of A struggles rare narrative with the of savages. the early settlement of Virginia, with
509 WOLFE, HUMBERT This Blind Rose. London, 1928. Post 8vo, original
cloth, paper label.
First Edition, printed on hand-made paper and limited to 410 copies
signed by the author. Immaculate copy, with d.w.
510 WORLD WAR Les Villes Martyres 12 Estampes d'Art. Les Impressions
Artistiques de Georges Bertrand Paris, n.d. Folio, 12 colored plates
mounted. with descriptive text in French, in folder, as issued. Very fine set.
1
60
61
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378
February 11, 1937
HM, Jr. telephoned the President this morning and
said to him, "Due to the settlement of the General
Motors strike, they have had a terrific rise in stocks
in London. General Motors is up $4.00; U.S. Steel
went up to 110, up 4 points. I have arranged for a
meeting at my office Monday with Eccles and Landis to
discuss this question of inflow of foreign capital.
I have a press conference at 10:30 this morning and
I would like to tell the boys that the three of us
are going to meet, carrying out your suggestion, to
discuss the inflow of foreign capital and that will
kind of act as a deterrent. If you are free tomorrow
morning at this time, I would like to come over and
tell you what we have prepared for this meeting."
379
MEETING ON RESTRICTION OF FOREIGN
CAPITAL INFLOW
Present:
February 11, 1937
9:45 A.M.
Mr. Kent
Mr. Zucker
Mr. Upham
Mr. White
Mr. Seltzer
Mr. Opper
Mr. Oliphant
Mr. Lochhead
Mr. Gaston
Mr. Magill
H.M.Jr:
Magill:
H.M.Jr:
"Non-resident aliens engaged in business or having
an office here." "Here"meaning United States.
United States.
"Same rate as citizens and residents.
"Residents of Canada, if treaty ratified: Five percent."
On what?
Magill:
All income from United States sources.
H.M.Jr:
This is all right for this purpose, but - I don't know
who did it; if I could have it done a little differently.
Magill:
Just say how.
H.M.Jr:
I either want it - the particular kind of tax and the
rate, and then let's say, let's put "Non-resident
aliens" and then have underneath that "Living in
United States" and "Living Abroad." And then the
rate of the tax, say, up here, see? If it's a ten
percent tax - I mean in no place is there mentioned
the amount of tax.
Magill:
Yes, that's what you've got. She should have made
H.M.Jr:
these in figures instead of the way she did. You
see, here's your category of persons and your figures.
I see. "Non-resident aliens
Magill:
Here.
H.M.Jr:
"Same rate as citizens and residents."
380
-2Magill:
That's right.
H.M.Jr:
"Residents of Canada, if treaty ratified." That's
still living here?
Magill:
These residents of Canada taxable on their..
H.M.Jr:
But that would be living in the United States?
No, living in Canada.
Magill:
H.M.Jr:
Magill:
Well, it wouldn't be that category.
He's a non-resident alien too, you see.
H.M.Jr:
Well, I still
Kent:
Mr. Secretary, if aliens are living in the United
States, they are residents and are taxed exactly
the same as citizens of the United States.
H.M.Jr:
"Non-resident aliens engaged in business or having
an office in the United States." They are the same
as citizens?
Magill:
That's right.
H.M.Jr:
Residents of Canada, five percent on what?
Magill:
On American income.
H.M.Jr:
On income derived from the United States.
Magill:
Yes.
H.M.Jr:
"Non-resident aliens other than above."
Oliphant:
All other non-resident aliens, if not engaged in
business, not having an office; not a Canadian;
in other words, a Britisher living in London.
"Ten percent on dividends, interest, rents, royalties,
H.M.Jr:
wages and compensation, etc., from sources within the
United States."
See, it's so clear in your mind and I've never seen it
written down.
Magill:
Well, it's a complicated thing; about eight different
rates there.
381
-3H.M.Jr:
Magill:
H.M.Jr:
"No tax on capital gains."
"Foreign corporations. Resident foreign corporations.
That's a British company doing business in the United
States, having offices here.
"Twenty-two percent on income from United States
sources."
That would be the same as that, wouldn't
it
Magill:
Yes
H.M.Jr:
except that it is incorporated, doing business
here. A flat 22 percent?
Magill:
Right.
H.M.J.:
Is that something special?
Magill:
Yes.
H.M.Jr:
H.M.Jr:
A flat 22 percent.
That's right.
"Canadian corporations: Five percent." That's located
Magill:
No, if he'd be located here he'd be in this category.
H.M.Jr:
Magill:
I see. Five percent, and no tax on capital gains.
"Other foreign corporations: Fifteen percent on
interest, rents, and royalties and ten percent on
dividends from United States sources. No tax on
capital gains."
Well now, let me just see. Non-resident alien
engaged in business, same. If this non-resident
is not incorporated and does business here, he's
an individual and he pays ten percent; if he is a
corporation, he pays fifteen.
That's right.
H.M.Jr:
I got it.
Magill:
here?
Canadian corporation that has dividend income from
the United States Steel Company.
382
-4Now, what I want to know from this group is -
I
mean before we have any more meetings - that
idea which I threw out the other day, in preparation of meeting with Mr. Landis and Mr. Eccles on
Monday. Is this group in accord; do I understand
it - I mean that I can say to these people at ten
o'clock on Monday that we propose for non-resident
aliens
Magill:
Our proposal really affects this third category.
See? These fellows are already treated like
Americans. These are covered by the treaty. Now,
as to these fellows, the proposal is to raise it
from ten to twenty; that's what that amounts to.
H.M.Jr:
From ten to twenty.
Magill:
Then here's the other one down here, these corpora-
tions - to raise those two rates. This rate,
fifteen percent.
H.M.Jr:
What?
Magill:
Raise them both.
H.M.Jr:
"hat do you mean both?
Magill:
Interest, rent, royalties - perhaps make that twenty;
and dividends - make that fifteen, if you want.
But raise - the raising would take place here.
H.M.Jr:
What?
Magill:
H.M.Jr:
Magill:
The raising would take place here and here (Nos.
I-3 and II-3 on attached sheet).
And not on the first bunch touch capital gains.
There are - if you want me to interject at this
point, there are three proposals really that are
before us.
Go ahead.
H.M.Jr:
Just one minute.
Magill:
There are three. I think this one hasn't been mentioned, but since it seems to me the most obvious of
-
383
-5the lot - perhaps you won't agree with me - I'll
mention it first. The law has contained for many
years in Section 119 a provision that non-resident
aliens shall not be taxable at all on their income
from interest on bank balances in the United States.
Now, there is no reason in the theory that I know
of why that should be true. It is simply a concession put in there for the purpose of enabling
American banks to obtain non-resident alien deposits,
and Mr. Zucker tells me that he thinks there is possibly or probably two hundred million dollars of such
money in the United States. Now, it seemed to me
rather clearly that that exemption ought to be eliminated right off the bat in connection with a proposal
of this kind.
H.M.Jr:
"hat's the other one?
Magill:
Now secondly - the second proposal for this purpose
is your proposal that the withholding rate should be
raised.
H.M.Jr:
Yes.
Magill:
Zucker has gone into that and finds that, with various
qualifications that I won't mention now, the average
rate on dividends - the average effective rate as
applied to dividends received by citizens and residents will run somewhere around 20 to 25 percent.
We haven't figured it out.
H.M.Jr:
The alien residents?
Magill:
No, on Americans; the average American. Now, that
is with some qualifications, the chief of which is
that he is excluding the very small dividend recipient, but taking what you might say is the bulk of
the dividend income. What he's actually taken are
persons who have ten thousand dollars or more income,
and the average rate runs - which was unexpected to
me - somewhere around 25 percent. So that you could
justify an increase of this withholding rate, an
very great difficulty on the theory that you are not
increase from 10 percent to 20 percent - without
doing really any more to the non-resident on the
average than what you are doing to the American on
the average. And then I am inclined to think from
384
-6what he says, as aside from this particular
necessity, that the withholding rate ought to be
increased in the light of the figures which he
has.
Well then, the third proposal is the tax - to try
to collect some tax on capital gains. Now, that is
a much more difficult and much more complicated
affair. In order to do it at all, I would suppose
that you'd have to do it in some such fashion as
Zucker has worked out; that is, that whenever there
is 8 sale through an American broker on stock by a
non-resident alien, that there shall be withheld a
certain proportion of the proceeds, but that the
non-resident alien may file a return and show that
his profit is less than the amount of the proceeds
which we have withheld.
Oliphant:
Well, I think it is fair to say, Ros, that at our
Magill:
the first step.
Yes, I think so.
Oliphant:
Upham:
last meeting there was general agreement - there was
universal agreement that your proposal was O.K. as
And then that we could later develop - go right to
work on this capital gains tax, and conceivably you
might want to go down and see the Congressmen while
your bill was pending. But your suggestion was
O.K.'d as the first step. Is that right? Did we
all agree on this? That's what I wanted to find
out. Upham, you weren't there at that last meeting.
No, but I agree with that completely. I would have
some reservations on that other matter of removing
the exemption from tax on bank balances; that is,
interest from bank balances.
Magill:
It seems to me clearly the most practicable and on
H.M.Jr:
You left out one thing that I wanted as a tax point,
and that is to tax aliens on income derived from
the evidence we have now the most easily supported.
United States Governments.
Oliphant:
Hereafter issued.
385
-7H.M.Jr:
H.M.Jr:
Yes, hereafter issued. I mean I want that as a
talking point.
No dissent on that. No dissent on that.
As I understand, it is tax free now.
Oliphant:
Those under the Second Liberty Loan Act.
Opper:
Bonds, notes, and certificates.
H.M.Jr:
No tax on United States Government obligations.
Opper:
I think just leaving out bills.
H.M.Jr:
Obligations, except bills. What?
Except bills.
Oliphant:
Opper:
H.M.Jr:
No tax on United States Government obligations held
by aliens.
Magill:
Non-resident aliens.
H.M.Jr:
Right. Non-resident aliens. Then that would go in.
White:
I'm afraid that figure came from me and I gave it as
a maximum outside figure. It might be very much less
Then this other question of a tax on bank balances.
than that. We might have to investigate and find
out.
H.M.Jr:
Lochhead:
Well, I personally wouldn't want to move too quickly
on that, because that brings up the question of draw-
ing funds here. I just - I mean
At the present time I think that most of those big
balances in New York are on spot deposits and not
time deposits, and they don't draw interest.
H.M.Jr:
Oh.
Kent:
It was formerly more important, Mr. Secretary, because
formerly banks were allowed to pay interest on demand
deposits and now only time deposits from abroad would
be affected by this.
386
8White:
On the other hand, I think it is probably - really,
as Mr. Magill says, this is a thing that could be
easily achieved, and there is no rhyme or rhythm
to it as it stands.
Magill:
No rhyme or rhythm, and I would think psychologically
the repeal of that exemption would be beneficial.
H.M.Jr:
You say there's no rhyme or reason.
Oliphant:
There is a disagreement.
H.M.Jr:
What's your (Upham) rhyme or reason?
Upham:
Two or three points. If you permit the banks to have
those balances you get more earnings and more money
out of your banks; undoubtedly that money coming
here makes for a bigger money center in New York
and makes for bigger bank business of our own. That
is, I would advance that.
Magill:
Well, it's American source income, though. I mean
Zucker:
Magill:
The original purpose
any interest on those balances.
Zucker:
The original purpose when it was first enacted in
1921, as presented to the Senate, was stated by Dr.
Adams to be - he says: "There have been requests
from many sources and there has been recommended
And the purpose of it is to
several times
encourage deposits in American banks by non-resident
aliens, since these deposits are usually made as part
of some business transaction." If today we are
attempting to reverse the policy, then this particular advantage which was conceded to foreigners - it
might be conceivable that it would be the right thing
to do to eliminate this non-taxable item which is
applicable only to non-resident aliens and not to
Americans.
Kent:
Mr. Zucker, may I ask a question? In your judgment,
wouldn't the deposits which are made in New York in
connection with commercial transactions in a narrower
sense in all likelihood be demand deposits?
White:
Most of them are.
387
- -9 Zucker:
I first made an inquiry as to that and a figure
was - an approximation given me was anywhere from
150 to 200 million dollars.
Oliphant:
of demand deposits.
White:
Of the total billion and a half, 200 millions.
Oliphant:
That's demand non-interest bearing deposits.
Magill:
Well, isn't that the answer to Upham's point: that
the money which is earning money and working in
American business is not your time deposits as a
rule; the great bulk of it is deposits in connection
with business, which are not earning money.
Oliphant:
Suppose we took the Secretary's suggestion as the
first step and then went ahead and studied the
deposits thing and capital gains for two or three
days, then go down and see Doughton and tell him
about it.
H.M.Jr:
The thing I would like to do, as far as the whole
shop is concerned - the only proposals I want to
make are those we are all in complete accord on.
Now, we are all in complete accord on raising this
withholding tax for non-resident aliens. We are
all in complete accord that a non-resident alien
holding a United States Government obligation should
pay taxes on the income of that.
Magill:
Right.
H.M.Jr:
So there's no argument about that. All right, I want
this thing - I mean so I can say - I want two things.
I want to be able to say Monday that the Treasury has
a united front on these two suggestions for a quick
piece of legislation. Then we have an agenda of
things we'd like to offer for study, things that we'd
like to explore further.
Oliphant:
Further study.
H.M.Jr:
What?
Oliphant:
Further study. Right?
388
- 10 H.M.Jr:
Now, is anybody
Magill:
All right.
Oliphant:
As I pointed out, it would take at least three weeks
for any legislation proposed to get through. If
within those three weeks you had another bright idea
we could go down there again.
H.M.Jr:
That's all right. Now, you see, the reason I'm
rushing this thing is this: U. S. Steel and General
Motors up four points in London befoure our market
opened.
Oliphant: And Chrysler.
H.M.Jr:
Well, they didn't happen to quote Chrysler. And
what I am going to do at 10:30, with the knowledge
and the approval of the President, is to announce
that this meeting is going to take place on Monday
between Eccles and Landis and myself, that we are
Oliphant:
H.M.Jr:
now ready to call a meeting to study the inflow of
foreign capital.
To study the inflow or the taxation of it.
I wasn't going to - I was going to simply say we
were - the President asked us to study the inflow
of foreign capital and that we had now progressed
far enough that we were ready to meet with these
people, and that's all. I don't want to use - I
hadn't thought of using the word "taxation."
Simply that the President asked these three agencies to study the inflow of foreign capital, that
the Treasury had progressed far enough in its
study that I had invited Mr. Landis and Mr. Eccles
to meet with me at ten o'clock Monday.
Don't anybody run out quickly and sell General
Motors.
White:
Would that statement imply that the other agencies
haven't been studying it?
H.M.Jr:
No, no. No, between now and 10:30 I'm going to
call Landis and Eccles and tell them what I'm
going to do. I'm going to call the two of them on
389
- 11 -
Oliphant:
the phone. I get your point. I can say that we
have - that the group has progressed far enough
that the principles are ready to be decided.
That's it.
H.M.Jr:
That the committee has progressed far enough that
I feel that I can call a meeting.
And am I worried about the inflow of foreign capital?
Yes. All right?
H.M.Jr:
All right as far as I'm concerned.
What?
Am I worried about it? Yes.
Gaston:
Why?
White:
(Hearty laughter)
H.M.Jr:
Herbert, because.
Kent:
I am because I a.m.
H.M.Jr:
For many reasons.
Oliphant:
Well, has the Treasury some proposals it is going
H.M.Jr:
Oliphant:
H.M.Jr:
Gaston:
Oliphant:
White:
to offer at this meeting?
Yes. At this time I can't disclose them.
DO they relate to taxation?
You gentlemen will have to wait. We have just - I
don't think I'd answer that, Herbert, do you?
No. The point is that each one separately has been
studying the thing and now you are going to hold a
meeting, and obviously it would not be fair or
ethical for you to disclose your proposals until
you had disclosed them to the others in the group.
You don't want to imply you haven't disclosed them
to the others, do you?
Are you concerned about the capital that is already
390
- 12 -
here,
both? about the capital that is coming in, or
H.M.Jr:
Both.
White:
That's a little dangerous.
Lochhead:
Well, he's shown he is concerned because he is
White:
sterilizing gold.
No, but the implication there is that you intend
doing something which may drive it out.
H.M.Jr:
Well
then, the answer is that we are just worried
about the additional.
White:
The incoming - the further inflow.
H.M.Jr:
What?
White:
Further inflow.
Lochhead:
You made a study and you figure the amount of gold you
H.M.Jr:
have now is just right.
And I can't see but what this flow is going to continue for an indefinite period; very pessimistic
about the European situation.
White:
They might quote you on that.
H.M.Jr:
No?
White:
No.
H.M.Jr:
All right.
Oliphant:
Because the next question is - the next question then
would be: "So you anticipate war, and what is the
bearing of all this on your neutrality policy and the
cash-and-carry thing?"
H.M.Jr:
I think I'm all right on the thing. But I think it
is very important that this thing - that we cap this
thing off at this time. You (Lochhead) still got time
to call your broker.
391
- 13 Oliphant:
When are you meeting with Landis and Eccles?
H.M.Jr:
Ten o'clock Monday. Needless to say, what's here
is ultra-confidential for everybody. Well, it's
Magill:
Oliphant:
almost 15 after now; got three minutes to go. I
wonder if I should have something in which I show
these people when they come in at ten o'clock - I
mean a piece of paper; like to show them. Now, is
what time do you (Magill) leave?
Six o'clock.
May I ask a question? I want to mention one matter
to be eliminated if you are not interested in it.
This withholding tax which is to be raised could
H.M.Jr:
be made flexible in the hands of the President if
he wanted it; if not, just merely raise the rate.
Now, if you wanted to make it flexible, there's a
little more work we ought to do.
Well, are you sure of your law on that?
Oliphant:
Yes.
H.M.Jr:
Well, I tell you the reason I want... I'm seeing the
President on this at - tomorrow morning at 9:15.
Now, I want something. That's why I want to meet again.
Before I meet with these poeple Monday I want to show
this to him and have him say, "This is fine," or it
isn't. So will you people have alternative pieces of
paper, one definitely raising it to twenty and the
other leaving it flexible, so I could have two pieces
of paper and could say, "Mr. President, here's one
plan raising it to twenty, and the other is an alternative leaving it flexible in your hands. The arguI'm going over tomorrow morning
ments for it
and I want to be able to give him the alternative
plans and the arguments.
Magill:
Why don't you suggest when you want to meet again?
H.M.Jr:
We've got the big staff at eleven, which runs over
to twelve. I won't be so good. I've got an appointment at three with Bell. 3:30, Cochran. I've got
appointments at 3:30 and 4. If you people would be
ready at 2:30 I could be ready at 2:30. What? Is
that crowding you too much?
392
- 14 Magill:
I won't be able to do much on it personally because
H.M.Jr:
All right, I can change my four o'clock appointment
and have him come in at 2:30, and see you fellows at this four o'clock appointment won't run more than
fifteen minutes, so why don't I say 4:15?
Magill:
Fine.
H.M.Jr:
Then we could run from 4:15 to five. Would that be
Magill:
O.K.
White:
would you want an agenda also drawn up as to what you
I've got to go up on the Hill.
propose to study after this, for that meeting?
H.M.Jr:
I do.
Oliphant:
You want three sheets of paper.
H.M.Jr:
Yes. (To Mrs Klotz) 4:15, group on taxes.
Mrs Klotz:
All right.
H.M.Jr:
You (Oliphant) raising your hand to talk?
You want three sheets of paper, and he (Magill) has
the ball.
Oliphant:
H.M.Jr:
Gaston:
H.M.Jr:
Yes. Let me just think.
"eren't you going to change your four o'clock appointment to 2:30?
No. That one at four o'clock will not run very long
and I'd just as leave have a little time to provide
for something unforeseen, which happens every day.
Oliphant:
You can make it 3:30 if you want to.
H.M.Jr:
I'd a little rather make it - will you be in on that?
Oliphant:
I can be there.
H.M.Jr:
Well, you see - no, I'd rather - I'd rather give you
as much time as possible. Everybody happy in here?
I don't expect that I want to say it, but I think
that this is an indication; all I want to do is just to
throw out a very definite hint.
393
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE February 11, 1937
TO
Mr. Magill
FROM Mr. Zucker
Subject: Supporting memorandum
for Proposal No. 1.
Of the several approaches through tax proposals, the one pertain-
ing to increasing the withholding rates is most feasible, involving
little, if any, change of tax administration in the existing mechanism
for withholding. The increased tax on fixed items of income, i.e.,
dividends, interest, rentals, etc., will tend to become a discouraging
factor to the foreign investor. The application of this approach to
controlling the inflow and outflow of foreign capital avoids the necessity for filing returns by nonresident aliens and foreign corporations
not having a place of business in the United States, and thus is not a
cause for increasing the inequalities produced as a result of tax
avoidances of some aliens and diligence of others in reporting their
profits from sales.
The present rate of withholding in Great Britain is 23 percent;
in France the rates of withholding are 12, 18 and 24 percent, dependent
upon the types of securities. Thus, increasing the rate to approximately 20 to 25 percent does not give rise to discrimination against
the Nationals of foreign countries from the standpoint of tax load.
Furthermore, it has been roughly ascertained (subject to check) that
the average rate at which American Nationals are subject to tax on dividends in the United States, counting those in the net income classes of
$10,000 and over, will be, under the 1936 Act, about 20 percent. Increasing the withholding rate against foreigners, therefore, to a
figure of 20 or 25 percent merely places the foreigner to the same accountability as the American earning his income in our shores.
The chief objection to the utilization of an increased withholding
rate at this time is that it strikes indiscriminately against all for-
eign investors and not specifically against in-and-out traders in our
security markets. These traders are more interested in the making of
profits accruing from the rise in daily stock prices than they are in
the retention of securities for purposes of yields therefrom. The
efficacy of the increased withholding tax to act as a deterrent in a
general way to foreign investors, however, is sufficiently potent to
be considered a valuable approach to the problem of effecting a reduction in foreign investments in the United States.
It is estimated the yield under the 1936 Revenue Act, applicable
to nonresident aliens and foreign corporations, will be approximately
$15,000,000 for 1936. The contemplated increased withholding rates will
tend to double the yield. This may be accomplished without added burdens
on withholding agents other than more rigid regulatory provisions as to
ascertainment of true foreign owners in cases where the record owners
are Americans.
394
PROPOSED FIRST STEP IN THE CONTROL OF THE
INFLOW AND OUTFLOW OF FOREIGN CAPITAL
Proposal No. 1
1. Increase the withholding rate applicable against nonresident aliens with no place of business in the United States as
well as those engaged in business or having an office here from
10 percent to 20 percent, to be withheld on all items of fixed or
determinable income covered under Section 211, Revenue Act of 1936.
2. Increase the withholding rate applicable against nonresident foreign corporations from 15 percent to 25 percent on all
items of fixed or determinable income other than dividends, and
increase the withholding rate on dividends from 10 percent to 20
percent (Section 231 (a), Revenue Act of 1936).
Note: Under the provisions of Sections 211 and
231 (a), cited above, the withholding rate
applicable against residents of the contiguous countries, Canada and Mexico, may be re-
duced by treaty with such countries to a
rate not less than 5 percent. Similarly,
the withholding rate against dividends received by corporations organized under the
laws of Canada and Mexico may be reduced
by treaty with such countries from 10 percent to a rate not less then 5 percent.
The proposed Canadian treaty now pending,
if ratified in its present form reducing
the withholding rate to 5 percent, constitutes a serious potential loophole. This
fact suggests the desirability of recanvassing the Canadian situation with the State
Department.
3. Subject alien individuals and corporations not residing or
doing business in the United States to Federal taxes on Government
obligations hereafter issued to the same extent as such aliens are
now or will hereafter be taxed on other obligations in the United
States.
395
PROPOSED ALTERNATIVE FIRST STEP IN THE CONTROL OF
THE INFLOW AND OUTFLOW OF FOREIGN CAPITAL
Proposal No. 2
1. Enact the increased withholding rates as in Proposal No. 1.
2. The increased withholding rates to take effect within
30 days from the date of their enactment unless the President sooner
finds and proclaims that a part or all of such taxes would be detrimental to the public interest in relation to international transactions and relations, in which event vest power in him so to moice
a part or all rates effective, lowering and raising the effective
portion from time to time as circumstances so found and proclaimed
may require.
3. Subject alien individuals and corporations not residing or
doing business in the United States to Federal taxes on Government
obligations hereafter issued to the same extent as such aliens are
now or will hereafter be taxed on other obligations in the United
States.
336
PROPOSED SUPPLEMENTAL STEPS IN THE CONTROL OF THE
INFLOW AND OUTFLOW OF FOREIGN CAPITAL
Proposal No. 3
In the event that other and more drastic approaches are found
desirable to effect control of the inflow and outflow of foreign
capital, additional tax measures can be proposed. Further studies
are being made on contemplated proposals. In general, the proposals
now under consideration are:
1. (a) To levy a tax of
percent on all capital gains
realized by nonresident aliens and nonresident foreign corporations.
1. (b) The amount of this tax shall be collected by withholding 3 percent to 5 percent (as may be determined) of the total proceeds of sale, subject to final tax readjustment upon the filing of
returns by the foreign seller, showing actual profits from the transactions.
1. (c) The above tax to take effect within 30 days from the
date of its enactment unless the President sooner finds and proclaims
that a part or all of such tax would be detrimental to the public
interest in relation to international transactions and relations, in
which event vest power in him so to make a part or all of the tax
effective, lowering or raising the tax from time to time as circumstances so found and proclaimed may require.
2. Restore as a taxable item, interest on all deposits with per-
sons carrying on the banking business paid to persons not engaged in
business within the United States and not having an office or place
of business therein.
This contemplates the elimination of Section 119 (a) (1) (A),
Revenue Act of 1936, thus subjecting nonresident aliens and non-
resident foreign corporations to the regular tax now or hereafter
enacted on interest received on bank deposits.
3. It may be advisable, for the purpose of curbing any sudden
or excessive outflow of foreign capital, to enact a special transfer
tax, on a graduated basis, on proceeds from sales made by nonresident
alien individuals and foreign corporations, the tax being lessened in
accordance with the length of time the securities were owned prior to
sale. For example, a tax of 1 percent if the property sold has been
owned a year or more, 2 percent if owned 11 months, 3 percent if owned
10 months, etc.
397
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE February 11,1937
TO
Secretary Morgenthau
FROM
Herman Oliphant
The following are the outstanding arguments in favor of some degree
of flexibility as to the rate of tax on foreigners:
1. It is designed to have some effect on international capital
movements. International conditions not in any way connected with the
tax may disappear and, in fact, such other considerations may make the
existence of the increased tax definitely a detriment.
2. The tax itself, and particularly the rate, are experimental,
and designed to produce an effect not connected with the raising of revenue. No one can now estimate with any accuracy the extent to which a
given rate of tax may undershoot or overshoot that mark.
3. One of the purposes of the proposal is psychological, that is,
the very statement that it is under consideration may have some part or
all of the desired effect. Since we are dealing with the composite frame
of mind of thousands of foreign investors, no one can accurately forecast
this element. A statute merely giving the power to raise rates, coupled
with the knowledge that it will be exercised if needed, mey be sufficient
to discourage dangerous increases of foreign investment. If this is so,
it would be advantageous t operain from exercising the power, and thus
avoid ill feeling or even reprisal abroad.
4. The interest of the Treasury in the whole problem is not the
mere revenue aspect. Its interest is the foreign exchange and gold angle.
A rigid provision will deprive the Treasury of any control over the situation and leave whatever flexibility there may be in the hands of SEC and
the Federal Reserve Board -- organizations whose primary concern should be
the domestic situation.
5. Flexibility in connection with the treatment of matters involving foreign governments and foreign private interests are, by tradition and
logic, peculiarly susceptible to flexibility in the hands of the executive.
Questions in which foreign governments are concerned are by their nature
delicate, subject to frequent change, and based upon facts particularly at
the disposal of the President. The most familiar examples of flexible provisions relate almost without exception to international relations, such as
Exports for war purposes (neutrality legislation).
Increase of tariffs for discrimination abroad.
Increase of taxes on foreigners for discrimination abroad.
Fixing the content of the dollar.
Byopher
398
Holder's
I. Non-resident alien individuals
1. Non-resident
here: u.s. aliens engaged in business or having an office
Same rates as citizens and residents
2. Residents of Canada, if treaty ratified:
Five percent on th income derived from u.s.
No tax on capital gains.
3. Non-resident aliens other than above:
Prohoud
Ten percent on dividends, interest, rents, royalties, increase
wages and compensation, etcetera, from sources within
the United States.
here
No tax on capital gains.
II. Foreign corporations
1. Resident foreign corporations:
Twenty-two percent on income from U.S. sources.
2. Canadian corporations:
Five percent on dividends.
No tax on capital gains
3. Other foreign corporations:
Fifteen percent on interest, rents, and royalties
and ten percent on dividends from U.S. sources.
Proposed
in erease
here
No tax on capital gains
no tax in 13R balances ?
nor tax on u.s. qw. obligations (evcept
Bills ) held by none - resident aliens
399
I. Hos resident alien individuals
1. Non-resident aliens engaged in business or having an office
here:
Same rates as citizens and residents
2. Residents of Canada, if treaty ratified,
Five percent.
No tax on capital gains.
3. Non-resident aliens other than above:
Ten percent on dividends, interest, rents, royalties,
wages and compensation, steeters, from sources within
the United States.
No tax on capital gains.
II. Foreign corporations
1. Resident foreign corporations:
Twenty-two percent on income from U.S. sources.
2. Canadian corporations:
Five percent on dividends.
No tax on capital gains
3. Other foreign corporations:
Fifteen percent on interest, rents, and royalties
and ten percent on dividends from U.S. sources.
No tax on capital gains
400
February 11, 1937.
Excerpt from Mr. Magill's "Memorandum of the Day's
Activities for February 11th," to the Secretary.
2. Non-resident aliens
Mr. Zucker and I spent several hours going over
the various plans for taxing the income of non-resident
aliens from American sources and he is preparing supporting memoranda.
401
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE Feb. 11, 1937.
TO
FROM
SECRETARY MORGENTHAU
MR. MAGILL
RE: INTERSTATE COMMERCE COMMISSION'S REPORT UNDISTRIBUTED PROFITS TAX.
I have just read Mr. Eastman's letter to you dated January
26th, enclosing a draft of a letter addressed to the President to
be signed by the Chairman of the Commission. I have referred the
draft to Mr. Kent since I understand he drafted the Treasury's
original letter to the President on this subject.
So far as I can find out, neither one of these letters were
in our possession at the time Mr. Sweet conferred with me. Consequently, it was impossible for me to discuss with Mr. Sweet the
merits of the various questions considered in the draft letter. I
do not know whether the Commission's draft letter has now gone for-
ward to the President but if it has, it would seem that we should
have some opportunity of expression our views further.
402
Feb. 11, 1937.
To
SECRETARY MORGENTHAU
From
MR. MAGILL
RE: INTERSTATE COMMERCE COMMISSION'S REPORT UNDISTRIBUTED PROFITS TAX.
I have just read Mr. Eastean's letter to you dated January
26th, enclosing & draft of & letter addressed to the President to
be signed by the Chairman of the Commission. I have referred the
draft to Mr. Kent since I understand he drafted the Treasury's
original letter to the President on this subject.
So far as I can find out, neither one of these letters were
in our possession at the time Mr. Sweet conferred with so. Consequently, it 5:3 impossible for me to discuss with Mr. Sweet the
aerits of the various questions considered in the draft letter. I
do not know whether the Commission's draft letter has now gone for-
word to the President but it if has, it would seen that we should
have some opportunity of expressing our views further.
Copiedigbe 2-15-37
403
11 February, 1937
COAST GUARD OPERATIONS IN FLOOD AREA
With the exception of a few boats, which are being retained
at Paducah and several other cities upon the request of the local
municipal and Red Cross officials, all Coast Guard boats are being
withdrawn northward from Memphis. All motor lifeboats, which were
operating in the Memphis region, together with all Navy boats, are
being returned to their stations.
Eighteen Coast Guard boats are being retained at Memphis
which, together with the small boats operating in conjunction with
seagoing un't s below Memphis, are considered sufficient to take
care of needs in the Mississippi Valley.
General Water Level Conditions.
River receding at Memphis and crest is now approaching
Helena, reading 60.2'.
upt
404
Thursday
February 11, 1937
10:22 a.m.
Treas.
Operator: Yes, sir
HMJr:
Tell Landis' secretary that I am going to call him
T.O.:
All right.
HMJr:
Hello
T.O.:
Chairman Eccles -
Eccles:
Hello
HMJr:
Hello, Marriner?
E:
Yes
Marriner
HMJr:
in about two minutes, to have him ready.
I want to tell you what I am thinking of doing in
about four minutes. I have a press conference at
ten thirty, and I've talked to the President. And on
account of this stock market jumping up in London on
an average of four points, I asked him what he thought
if I'd announce that this his committee, consisting
of yourself, Landis and myself, were going to meet on
Monday. That we'd progressed far enough on our studies
that we could meet, you see?
E:
Yes
HMJr:
That's all.
E:
Yes
HMJr:
Just say that, you see?
E:
Yes, I think it's all right.
HMJr:
Let them know it's coming.
E:
HMJr:
E:
HMJr:
I think it's all right. It wouldn't hurt the market
at all.
Well, it might keep it from going complete - Well, that's what I mean.
Yes, but I wanted to let you know that I was going
to do it and see if you had any objections.
405
-2E:
I haven't any objection at all. I think it would
HMJr:
Thank you very much.
E:
All right.
HMJr:
Goodbye.
be a good thing to do.
406
Thursday
February 11, 1937
10:24 a.m.
HMJr:
Hello
Treas.
Operator: Chairman Landis - Go ahead.
HMJr:
Hello
Landis:
Hello
HMJr:
Landis -
L:
Yes
HMJr:
Good morning
L:
Good morning, how are you?
HMJr:
I'm fine. Landis, I called up the President this
morning to tell him that the London stock market
opened up four points in some cases above New York.
Hello?
L:
Yes
HMJr:
And asked him if it would be all right that I would
announce in my ten thirty press conference that you
and Eccles and I were going to meet Monday to discuss
this inflow of foreign capital.
L:
Yes
HMJr:
And he said, "Fine." And, - I'd simply say that we'd
progressed far enough that we could meet, you see?
L:
Yes
HMJr:
And he said it was all right. And I - but I didn't
want to do it without first talking to you.
HMJr:
Well, I think it's a good idea.
I called up Marriner and Marriner said, "Swell."
L:
Yes
HMJr:
Is it all right with you?
L:
Oh yes, indeed.
L:
407
-2HMJr:
I mean, I'm just going to say that we've progressed
far enough on our studies to have our first meeting.
L:
Yes - yes, I think that's good.
HMJr:
You think that's good?
L:
Yes
HMJr:
Well, how are you feeling?
Oh, very well, thanks.
L:
HMJr:
Really?
L:
Yes - I'm back in good form again, I think.
(Laughs) Fine -
HMJr:
me
L:
The President gave/ some more work, you know.
HMJr:
More work?
L:
Yes
HMJr:
I see.
L:
(Laughs) So he -
HMJr:
As a tonic he gave you some more work?
L:
Yes, he says that's the best cure.
HMJr:
Fine
L:
HMJr:
(Laughs)
Well, I don't know.
L:
(Laughs)
HMJr:
And I'll see you at ten Monday.
L:
All right, fine.
HMJr:
Thank you.
L:
Fine, thank you.
408
Thursday
February 11, 1937
12:18 p.m.
Sen. Pat
Harrison: Henry HMJr:
Good morning
H:
How are you?
HMJr:
H:
HMJr:
H:
Oh, I'm fine.
Henry, are you tied up this afternoon?
Unfortunately I've got three appointments.
Well, how long will you - will you be - when will
you be free?
HMJr:
Well, to you -
H:
I've been having these hearings on this trade agreement
HMJr:
Yes
H:
But this afternoon I haven't got a hearing and they've
got us pretty busy up here and I thought if you were
free we'd come there any time this afternoon. I just
talked to Bob, he's free this afternoon, too.
HMJr:
Well, if you're free, I'll be free at four o'clock.
H:
At what time?
HMJr:
Four o'clock
H:
Four?
HMJr:
H:
HMJr:
Is that a good time?
Well, I think that's all right.
All right.
H:
Well, suppose - where do you want us to come?
HMJr:
Any place you say.
H:
Well, I just don't want any publicity attached to
our meeting.
HMJr:
Well, I tell you, if you come to my private entrance -
-
-2H:
Yes
HMJr:
You know where that is?
H:
Yes
HMJr:
H:
HMJr:
H:
HMJr:
409
And come right in - don't go into Kieley's room,
but come directly into my room; nobody will see you.
We'll
be there at four o'clock. And you'll have the
other fellows there?
I'll have the other fellows there.
All right.
And you - you'll talk to Bob?
H:
Yes
HMJr:
All right.
H:
I've talked to him already, and I'm to let him know.
HMJr:
0. K.
H:
All right.
HMJr:
Thank you.
410
Thursday
February 11, 1937
2:50 p.m.
HMJr:
Hello
Treas.
Operator: Senator Moore -
Go ahead.
Hello
Sen. A. Harry
Hello
Moore:
HMJr:
HMJr:
Morgenthau talking -
Moore:
Yes, sir, this is Moore, of the great State of New
Jersey.
HMJr:
I know, I suppose you're calling up about our friend
up there.
Moore:
Yes
HMJr:
Well, I just haven't been able yet to see my way
clear. I've discussed it with Guy Helvering.
Moore: Yes
HMJr:
And he tells me that you've had it up with him a
number of times during the past year. And, I frankly, I just haven't got any answer for you yet.
And Moore:
You know, of course, we don't care who it is.
HMJr:
I know, I appreciate that. And the investigation I
asked to have made of that man has not yet come through.
Moore:
Oh well, we don't care about him. We only mentioned
him because Helvering
HMJr:
-
-
Yes
Moore:
HMJr:
And, what I'd like to do is, as soon as I get it, if
you would stop by here some morning, I'll have Helvering
over here and we can talk it over.
Moore:
HMJr:
Moore:
Well, I'll do that.
But I could be there Monday.
411
-2HMJr:
But Helvering said that - I understand he has had
it up with you a number of times.
Moore:
No, he didn't - he's just talking.
HMJr:
What?
Moore:
He's just talking.
Well, He's a good politician.
HMJr:
to
Moore:
Yes, he has a good deal/say.
HMJr:
I'm just
Moore:
-
-
tell us to go to hell or else tell us
to putthe
a Democrat
in. What's the use of running all
over
lot.
HMJr:
Moore:
Yes
- Well, now, will you be here Tuesday?
Yes, sir
HMJr:
I'll
try to get a report - and - is ten o'clock a
good time for you?
Moore:
Yes, sir, I'll come over there at ten.
HMJr:
Tuesday morning?
Moore:
Yes
HMJr:
Thank you very much.
Moore:
You can have Helvering there and we can fight it out.
I'll have Helvering there and we'11 -
HMJr:
Moore:
Ten o'clock Tuesday morning.
HMJr:
Thank you, Senator.
Moore:
Thank you.