Full text of Diaries of Henry Morgenthau, Jr. : Volume 785 : Part 2

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10/24/44

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10/24/4492
THE ECONOMIC BILL OF RIGHTS

This evening I want to talk to you about the future
which I feel is in store for the American people and to
outline to you my plans for meeting here at home the
problems of peace.

For the second time in twenty-five years America has

proved her capacity to meet the challenge of total war.
Twice in twenty-five years we have amazed the whole worldand ourselves - with our daring conception of what America

could do when forced to war. We have astonished a grateful
world by the stupendous number of planes, tanks and guns

rolling off our assembly lines; with the bridge of ships
we have erected across the oceans; by the overwhelming

force with which America has turned the scales of battle.
Thus has America met the challenge of war - with
boldness, courage and determination. Thus has America
become the symbol - the world over - for the dynamic

force of a free people fighting for a free world.
But what of the peace-time problems here at home

which will follow the successful conclusion of this war?
Is America prepared to meet the challenge of these peace-

time problems as it has twice met the challenge of war?
Will we approach the problems of peace with the same
boldness of conception, the same courage and determination
as we have approached the problems of war?

-In the answer to these questions lies the future of
America. To anyone who has faith in America the answer

is clear. The American people are prepared to meet the
problems of peace in the same inspiring way that they have
met the problems of war. The American people are resolved

that we shall insure that the youth of this nation will
never again be called upon to fight in another war. And
the American people are equally resolved that when our.

boys return home from this war, they shall come back to

the brightest possible, the freest possible, the finest
possible place on the face of this earth - to a place
where all persons, regardless of race, color, creed or

place of birth, shall live in peace, honor and dignity free from want - and free from fear. To do otherwise

would betray the faith of every soldier, every worker,
every businessman, every farmer in this country who is

giving his best for America.
In determining the course of action we should pursue

after the war, it is well for America to pause and take
stock of her capacities. For America's capacities should
be the measure of America's future.

America's known capacities are not difficult to
calculate. We are now producing goods and services to

the gigantic total of $200 billion a year with 52 million
workers and 12 million soldiers. In simple language that

-means that today America is producing nearly twice as
much as she had ever produced before the war. But an
enormous part of the goods and services we are producing

today does not find its way into the American home. No,
it represents the ships, the guns, the planes and tanks

we are using to fight this war.
But I know, and you know, that, if we can produce a
huge flow of ships and guns and planes and tanks, we can
also produce an abundance of houses and cars and clothing

and provide education and recreation and the other good

things of life for all Americans.
And I know, and you know, that when our boys return

home from the war and are again able to put their power
into the stream of peace-time production, America's

capacity to produce will be even greater than it is today.
Yes, much greater than today even when we remember that

some of our returning soldiers will prefer to resume their
education; that some older people will begin a retirement
delayed to participate in war work; and that many women

will give up their jobs in favor of home-making. Making
full allowance for these groups, the fact remains that
America will have the capacity after the war for producing

houses, cars, clothing, education, recreation and all of
the other good things of life on a scale that staggers the
imagination. That is what America can and will do if we
have the courage and vision to give her the chance.

-4-

But to accomplish this task of utilizing our full
productive capacity year after year, it is childish to
think, as some would suggest, that we can depend upon the
accumulated backlog of demand for 6 million automobiles,

3-1/2 million vacuum cleaners and 7 million alarm clocks
and so on! Why an America geared to that limited

conception of the future will find itself faced with
millions of unemployed. In fact that kind of thinking
sounds to me as though our doughboys returning from this

war would have to face the prospect of peddling alarm

clocks this time instead of apples.
I say to you here and now that we cannot set our
sights to a level which we have long since passed. The
same people who set their sights too low for war are now

asking the American people to set their sights too low
for prosperity. They do not grasp the strength and the
spirit of America.

Nor do any of us think for a minute that there is
any quack remedy or cure-all that can be automatically

applied. The sober facts are that genuine progress will
be achieved only through concrete plans and a real effort.
I made plain my views on this subject to Congress in

January of this year. In that message, I set forth eight
self-evident economic truths. I said then and I say now
that these economic truths represented a second Bill of
Rights under which a new basis of security and prosperity

-5-

can be established for all - regarless of station, race
or creed.

America led the world in establishing political
democracy. It must lead the world once more in
strengthening and extending political democracy by firmly
establishing economic democracy. Let us not forget the

painful lessons of the rise of Fascism. Let us remember
that political democracy is at best insecure and unstable
without economic democracy. Fascism thrives on domestic

economic insecurity, as well as on lack of or divided
resistance to external aggression. Fascism is not only
an enemy from without, it is also potentially an enemy
from within.
We now must establish an Economic Bill of Rights not

only out of common decency, but also to insure the

preservation of our political freedoms. We must accord

to this Economic Bill of Rights the same dignity - the
same stature - in our American tradition as that we have

accorded to the original Bill of Rights.
Let us therefore affirm this Economic Bill of Rights -

and keep affirming it - until it is as familiar and real
to us as our political Bill of Rights.
The Economic Bill of Rights as embodied in my message

to Congress last January is:

-The right to a useful and remunerative job in the
industries, or shops or farms or mines of the nation;
The right to earn enough to provide adequate food
and clothing and recreation;

The right of every farmer to raise and sell his
products at a return which will give him and his family
a decent living;
The right of every businessman, large and small, to
trade in an atmosphere of freedom from unfair competition
and domination by monopolies at home or abroad;

The right of every family to a decent home;
The right to adequate medical care and the opportunity
to achieve and enjoy good health;

The right to adequate protection from the economic
fears of old age, sickness, accident and unemployment;

The right to a good education.
But the achievement of this American Economic Bill

of Rights will not come of itself. These rights will not
come to those who merely sit and wait. Nor will they come

through merely pious repetition. Our forefathers had to

struggle for our political Bill of Rights; we will have
to struggle for our Economic Bill of Rights. If we are
going to make those Rights a living reality we must map
out a vigorous and concerted course. We must set as our

coal the implementation and fulfillment of the 8 selfevident truths which together constitute our Economic

Bial of Rights.

-The key to making this Economic Bill of Rights a part

of the American way of life is as self-evident as are the
rights themselves. The key is the wholehearted recognition

by all our people of the simple fact that in America the
future of the American worker lies in the well-being of
American private enterprise; and the future of American

private enterprise lies in the well-being of the American
worker. The greatest single thing that this war has demonstrated
on the home front is that when the American worker and the
American businessman and the American farmer work together

as one team, there are no limits on what America can accomplish.
But to work together as a team, however, there must be

a common goal. In this war that goal has been the defeat
of our enemies in the shortest possible period of time.
In the peace to come the goal must be the well-being of
America - and that is synonymous with the well-being of
every American.

As I outline to you tonight my program for making

each of these economic rights a part of our way of life,

you will note this striking fact, namely, that to the
extent that private enterprise grows in strength, the
Economic Bill of Rights grows in reality - and to the
extent that the Economic Bill of Rights grows in reality,
American private enterprise grows in strength. Thus, all
the measures which are proposed in this program for the

implementation of the Economic Bill of Rights are at the
same time designed to make American capitalism and private

enterprise work in the same great manner in peace as it
has worked in war.

When I enunciated this Economic Bill of Rights last
January I said that after this war is won we must be
prepared to move forward, in the implementation of these
rights, to new goals of human happiness and well-being.
I asked the Congress to explore the means of implementing

these rights and stated that from time to time I would
have more to say on the subject.

Tonight, I want to discuss this Economic Bill of

Rights with all of you. I want to outline how the
adoption of concrete measures to implement these rights

represents the very foundation of American prosperity
in the years to come.
And I also want to emphasize what the implementation

of these rights will mean to our service men and women.
They have given America the opportunity to work out its

destiny as a free nation in a free world. The America to
which they return must be a land of economic opportunity

in which they will find full opportunities not only for
jobs but for economic advancement and independent

enterprise in industry, commerce, agriculture and the

professions. A grateful nation can do no less for her
returning service men and women. The G. I, Bill of Rights

asigned
in

needs

service.

the

107
is

then

and

dosi

ned

to culfill the needs which they value most, yes, the needs

whi ch they value more than life itself - the needs of
America.
I

The first economic right is "the right to a useful
and reauncrative job in the industries, or shops, or
farms or mines of the nation."

To assure the full realization of this right to a
useful and remunerative job, an adequate program must
&

provide America with 60 million productive jobs. We must
have more jobs than workers; not more workers than jobs.
Only with more jobs than workers can every man be
guaranteed a job with good wages and decent working

conditions. This requires private enterprise working at
expanded capacity.

This necessary expansion of our peace time productive

capacity will require new facilities, new plants and new
equipment.

It will require large outlays of money which should
be raised through normal investment channels. That to
encourage the use of private capital the government authorize
substa
an accelerated rate of depreciation on new plants and new

equipment. but while private capital should finance this
expansion program, the Government should also recognize

its responsibility for sharing

101

part of any special or abnormal risk of loss attached to
such financing.
Therefore I propose that the Government guarantee

the lender against all special and abnormal risks which
may be involved. This will provide new and expanding

industry with plenty of private credit at reasonable
interest rates. Through this program we will merely be
extending to the financing of old and new business the
principles which have proved so successful in our
experience with the V Loans, T Loans and the Federal
Housing Administration loans.
ther-propose

A comprehensive investment program dedicated to

expanding the peace time productive capacity of America

is the very epitome of the American way of raising our

standard of living. We build the plants for greater
production so that all of us may share in their greater

output. But greater output is not our only benefit from
this plant expansion. In fact, our benefits also include
the wages paid to the labor employed in building these

plants, in constructing the machinery to be used in the
plants and in operating the plants after they are erected.
These payments as wages all contribute to the nation's
buying power so that as a nation we will have more money
with which to buy the goods produced by these expanded
plants.
The importance of encouraging business to expand their plants
and to replace their obsolete or worn out equipment with new equipment

is far greater than appears at first sight, Economic progress depends
largely upon the maintenance of a rapid rate of technological progress

in industry. America is the great producer that is is today because
technological advence in American industry has been the greatest in

the world. By substantially accelerating the rate of depreciation for
tax purposes we provide businesses with additional incentives to expand
their plant, replace old and obsolete anchinery with modern equipment.

That mana more jobs for the worker, increased profits for the business
mm, and lower costs to the consumer.

101

102

- 11 As a matter of fact a comprehensive investment program

of this character could make possible $20 billion of new

private investment each year. Why, just the job of
building these plants and the machinery for them would give

America 5 million more jobs a year than we had in this work
before the war. And this does not include the workers who
would be needed to operate these plants after they are built.

In a nutshell, then, if we are going to have
remunerative jobs for all, we must have an expanded private

industry capable of hiring millions more men. I propose
that the Government do its part in helping private
enterprise finance this expansion of our industrial plant.

It will be privately owned, privately operated and privately
financed but the Government will share with the private
investor the unusual and abnormal financial risks which
may be involved in getting started.

#**#***

But, in providing jobs for everyone, we shall not only
have to increase demand for our industrial and agricultural
production here at home; but also abroad. Some parts of
our industrial and agricultural production demand a high

level of foreign trade to be efficient and prosperous.
This is particularly true in our heavy equipment industries
where our war demand will fall sharply but whose output

will be needed by other countries for reconstruction and

103

- 12 development. The foreign demand for such farm commodities

as cotton, tobacco and wheat will also be great if other
countries have the opportunity to buy. We therefore must

take steps, in cooperation with other countries to see
that international trade and investment is resumed promptly
on a sound basis.

This Administration has pioneered in the direction of

international economic collaboration with its reciprocal
trade program and the establishment of the Export-Import

Bank. It has again taken the lead in suggesting internation=
al monetary stabilization and sound international
investment measures - measures that are a fundamental

prerequisite to healthy foreign trade and commerce. It
was for the purpose of working out concrete measures of

this character that I convened the United Nations Monetary
and Financial Conference at Bretton Woods last summer. At

the Bretton Woods Conference, forty-four countries agreed
upon plans for an International Monetary Fund and an
International Bank for Reconstruction and Development.
The International Monetary Fund, when approved by

Congress, will aid the nations of the world in establishing
sound currencies. It will clear the channels of foreign
trade of discriminatory restrictions and controls so that
there can be a genuine expansion of world trade.

104

- 13 -

With the help of the International Bank, American

capital can play a great constructive role - and a
profitable role - in the development of the economies of
other countries. It will provide us with enormous postwar foreign markets. For our greatest markets are in
prosperous, industrialized countries.
But America will not be merely a seller of goods
abroad. A truly prosperous America - an America with jobs

for all - will be a tremendous buyer of raw materials and
products from abroad. It will be an America constantly
enlarging the scope of our reciprocal trade agreements.
It will be an America with the time and money to spend on

tourist travel abroad as well as at home. It will be an
America from which other countries can afford to buy more
because they are selling more.

With Congressional approval of this program and with

our program of jobs for all in this country - the foreign
trade of the United States can be trebled after the war.
This increase in our foreign trade should mean 3 million
more jobs after the war than we had before the war.

Nor are the benefits of increased foreign trade and

investment confined to increasing our prosperity. I want
to emphasize that such cooperative measures for expanding

international trade and investment are at the same time
the economic foundation for a lasting peace. A prosperous

world will be a world free of both economic and political

105

- 14 aggression.

#####*

There is one further phase of this program of providing
jobs for all which must be made an integral part of any long

range program. That is the task of seeing to it that there

are not just jobs for all next year - or for the year after
that. No, we are talking about jobs for all as a permanent
part of our American way of life.
But it is inevitable, however, that an economy of free
enterprise like ours will have some fluctuation in the
number of jobs it can provide. Adjustments in employment
are an essential part of an expanding free economy. And
for these minor fluctuations, we provide unemployment

insurance. But we must not allow such fluctuations ever
to deteriorate into panic or depression. We cannot again
be caught in that vicious downward spiral of unemployment,
wage cuts and stagnated business.

I say to you that whenever the number of gainfully

employed in this country falls below 57 million, your
Government must and will take prompt steps to see that

new jobs are made available to keep the total from falling

significantly below that figure. This is the floor below
which we must not allow employment to fall.
The basic function of your Government in taking care

of any such slack in jobs is to see to it that private
enterprise is assisted until it can absorb this slack.

106

- 15 -

This is entirely possible. During the war the federal,
state and local governments have found it necessary to put

aside the construction of roads, buildings and public

facilities to the value of many billions of dollars. We
have a need, too, for vast programs of the type exemplified
by TVA.

Some of this construction will have to be undertaken

immediately after the war. A good deal of it, however,
can be postponed so that its construction could be timed
with periods when the volume of employment that industry,

commerce and agriculture can offer begins to fall. We
must have a reservoir of planned and approved federal,

state and local projects ready to be tapped. And when

employment falls below this floor of 57 million jobs, this
reservoir of planned and approved public works should be
opened up to provide more jobs and take up the slack.

Such useful and essential public works should not
produce Government or "relief" jobs, however. No, they

should produce private jobs. This is possible if we
insist that this construction be done by private firms
under contract with the Government; private firms employing

labor at the prevailing rate of wates and under standard
labor conditions.
This assurance of a reserve of private jobs, through
constructive public works when needed to take up the slack,

will have a profound effect on the whole direction of our

107

- 16 economy. In fact, the knowledge that Government accepts

this responsibility of maintaining a floor under jobs will
act as an immense stablizing force on the whole economy.
II

The second economic right is "the right to earn enough

to provide food and clothing and recreation."
America must remain pre-eminently the land of high

wages and efficient production. Every job in America must
provide enough for a decent living.
During the war we have been compelled to hold down

wage increases that might have provoked runaway inflation.
With all the arms and war materials we were producing,
there was only a limited amount of consumption goods

available. Increasing wages without increasing the amount
of goods available to the consumer would have been an open

invitation to inflation. By resorting to drastic price
and wage control measures, I am proud to report that

America is succeeding in holding the line against inflation.
However, the end of the war, even the end of the war

in Europe, will change this picture. Then there will be
more goods available for America to buy and it is only
good common sense to see that t he working man is paid
enough to buy these goods.

The gains made by labor during the war must be

retained in full, After the last war, as part of the
process of returning to "normalcy", the old guard of the

108

17 -

Republican Administration adopted the slogan "labor must

be deflated." This won't happen again. This time we must
make sure that wage rates are not reduced when the wartime

demand for labor is diverted into peace time channels. We
must make sure that the labor market is not broken by unemployment and wage slashes.

I can say now that 80 long as I am in the White House,
American labor can be assured that there are not going to be

any wage cuts that I can stop. What is even more important I am going to see that when the worker's hours are cut back
to peace time levels a real attempt is made to adjust wage
rates upward.

And I propose that wages should be constantly increased

as the productivity of industry is increased. An expanding
American economy can continue to expand only if the

increased productivity is divided equitably between business

and the worker. In fact - you know, and I know, that unless
the worker does get his share of America's increased
production in the form of increased wages and unless

business gets its share in the form of increased profits -

neither will prosper and all will lose.
But an increase in wages is not the only benefit the
American worker should secure from increased productivity.

He should also benefit in the form of shorter hours of
work, in the form of increased leisure and opportunities
for healthful recreation. Thus increased wages and shorter
hours go hand in hand in solving prosperity the American
way.

109

= 18 -

There is one further aspect of the wage-earner's

problem that I want to touch on tonight. That is his
aspiration for an annual wage or guaranteed annual income

from his job. It is a terribly important part of any real
attempt to implement America's Economic Bill of Rights.
The size of the wage-carner's pay envelope is important -

vitally important to American prosperity. But we all know
that it is equally important to know how many pay envelopes

he gets during a year. I want to see him get a guaranteed
minimum annual wage and I think the time has come for

be can be

America to begin tackling this most difficult problem.

this cannot be cannot

achieved the same

can start on the an annual
wage. We can do a lot we agree it
is a business and labor must we all

approach the a

in its 80 an

And must do business
stabilizing achieved Government Now But problem with we in problem goal a manner labor with if its speed to needs harm part genuine attained all in job business. every too. will of that desire giving solve only overnight. business. It the must Nor to labor and burden succeed. aid if that of It it

annual wage will not be une conomical. This in my opinion
is the American way to bring about the annual wage and I
have confidence in the American way of doing things.

III
The third economic right is "the right of every
farmer to raise and sell his products at a rate which

will give him and his family a decent living."

110

- 19 American farmers now have by far the largest farm

income in history. This is their due reward for the
greatest agricultural production in history. We must
assure the farmers that there will always be a market for

all their output at good prices. Concretely I propose to
maintain an adequate floor on farm prices and thereby

assure the farmer against the dangers of falling prices
for his products. Our farm program must be one of

expansion rather than curtailment. With jobs for all at
good wages and with foreign markets greatly expanded, the

farmer will be able to sell at good prices all that he can
raise.

But this is not all. The farmer's income must have

stability. To that end, I propose to establish a
comprehensive federal crop insurance program which will

secure the farmer against the hazards of crop failure.
To this must be added concrete steps to raise the standard

of living on the farm and in the rural areas. We need a
complete program of new and modernized home s and farm

buildings. We must press forward with rural electrification
and improvement. Only in this way can we bring to the rural

communities modern facilities for decent and healthful living.
IV

The fourth economic right is "the right of every
business man large and small to trade in an atmosphere of
freedom from unfair competition and domination by monopolies
at home and abroad.

111

- 20 Where this Administration is to be distinguished

most sharply from some others is in its refusal to curry
favor with big business or entrenched monopoly. Our

Economic Bill of Rights like our political Bill of Rights
is based on freedom of enterprise - freedom of enterprise

not merely and exclusively for the few, but broadly and

inclusively for the many. The political Bill of Rights
insured the destruction of special prerogatives and

privileges. The Economic Bill of Rights will insure the
destruction of special economic prerogatives and privileges.
No special class of business deserves to be the spoiled

darling of government. This Administration has been mindful
=

from its earliest days, and will continue to be mindful, of
the problems of small business as well as large,
We must break through the barriers of monopoly and

international cartels that stand in the way of a healthy
expansion of free enterprise. Against these real enemies
of free enterprise we shall continue unremitting warfare.
We must overcome the monopolistic frame of mind which

thinks of business in terms of restricted output at high
prices per unit. We must pass on to workers and consumers

the benefits of technological progress and large scale

production. Free enterprise in the American tradition can
flourish only by doing a large volume of business at a

small profit per unit.

112

- 21 -

My Administration is determined to protect free
enterprise against monopolies and cartels through continued

vigorous enforcement of the anti-trust laws. Private
enterprise yields its full advantage to the consuming public
and to other business only when it is genuinely free and
competitive. Beware of that sinister enemy of free
enterprise who pays lip-service to competition but also

labels every anti-trust prosecution a "persecution."
Our economy has important new expanding sectors in

air transport, frequency modulation, television, synthetic
rubbers and fibers, plastics, and many other fields. These
new expanding areas in particular must be kept free of the
constricting hand of monopoly. There must be a place in
them - as everywhere in our economy - for enterprising

small firms. It is from these new and small firms that
the great industries of the future will grow. We need
new industries, new firms to have industrial progress and
shall not permit them to be stifled by monopoly.
V

The fifth economic right is "the right of every family
to a decent home."

Concretely, I propose that we adopt a housing program

looking toward the construction through private enterprise

of 2 million housing units a year and ridding this country

of its urban and rural slums. We need to build at least

113

- 22 -

15 million new housing units if we are to eliminate all
our slums and sub-standard dwellings. The right to a home
is meaningless when that home is a hovel. We cannot afford
slums.

A well-housed America must have modern homes - homes

with all the latest electrical and mechanical equipment
which will eliminate the drudgery of household work. We
must be a land of homeowners, and to that end we must assure
every family an opportunity for home ownership by making

certain that there is available private credit on terms
which will reduce the down-payment and cut by one-third
the monthly cost of buying homes.

New residential construction and the modernization of
America's homes alone can provide jobs for 4 million people

a year. This is 2 million more than the maximu amount
engaged in such work prior to the war.
VI

The sixth economic right is "the right to adequate
medical care and the opportunity to achieve and enjoy
good health.2

As Selective Service has revealed, too large a
proportion of our younger men now fall below reasonable

health standards. This is a warning signal to America
with respect to the state of health of all segments of
our population. This condition calls for immediate and
drastic action.

114

- 23 We cannot permit the health of our people to be
impaired by poverty or lack of medical and hospital

facilities. I say to you that your Federal and State
Governments have just as much responsibility for the

health of their people as they have for providing them

with education and police and fire protection. Health and
adequate medical and hospital care are not luxuries. They

are basic necessities to which all are entitled.
We must see that medical attention is available to
all the people. But this health program must be achieved
in the American way. Every person should have the right

to go to the doctor and hospital of their own choosing.
My program calls for the Federal and State Governments to

work hand in hand in making health insurance an integral

part of our Social Security program just as old age and
unemployment benefits are today. And these health

insurance benefits must be adequate to provide private

medical and hospital care for every person in the United
States.

We need were hospital AND doctors, that
such facilities
We need more clinics and hospitals and doctors.

I propose that we make sure that such facilities are

available and that we aid in the financing of clinics
and hospitals in every community, rural and urban, that

does not now have such facilities for all of its people.

115

- 24 Never again can we afford the waste of poor health

in America because of poverty or inadequate facilities.
And I say to you now that this program will prove in the
long run to be a saving to America.
We must not be content to provide medical attention
for people after they become sick, We must implement and
extend our knowledge of preventative medicine. To the end
that we shall be much better able to attack diseases and

to prevent illness, I propose that the Government appropriate
needed funds to finance a greatly expanded program of medical

research in private and public institutions.
VII

The seventh economic right is "the right to adequate
protection from the economic fears of old age, sickness,
accident and unemployment."

We must assure people who are disabled and temporarily

unemployed that they will be taken care of adequately. We

must assure them that they will not be in want because of
loss of income during this period of compulsory unemployment.

We cannot neglect these groups without incurring serious
dangers to the stability of our whole economy.
But we should be wary of those who only pay lip-

service to the principle of Social Security but have
a sorry reputation when it comes to delivering on their
promise, In 12 years of Republican Administration this,

the richest country in the world, fell far behind other

116

- 25 -

industrial nations in the development of Social Security

legislation. Every step in the establishment of our
social security system has been fiercely resisted by the
Republican Old Guard. Even now while advocating the

extension of social security in vague, vote-catching terms,
the Republican party evades all major concrete steps to

expand Social Security. The Republican candidate for the
Presidency, some weeks ago, made his formal obeisance to

the need for Social Security by limiting his remarks to a
few piddling generalities.
Meanwhile, for more than a year, there has languished
in Congress a carefully-drawn, comprehensive Bill to extend

the coverage and increase the benefits of Social Security.

I refer to the Wagner-Murray-Dingell Bill, introduced into
Congress by three liberal Democrats. It gives effective
universal coverage and provides benefits for old age,
unemployment, medical care and disability. Yet no prominent

Republican - in or out of Congress - has raised his voice

in support of this Bill. That in my mind is the tip-off
of what America can expect when the "chips are down."
Being introduced in wartime, when we have been

concerned about restraining consumers' demand rather than

expanding it, the Wagner-Murray-Dingell Bill will need to

be revised to suit our postwar world - revised in both its
scope and method of financing,

117

- 26 A broader program will be needed after the war. Old
age insurance should be adequate to provide all of our
older men and women with the means for decent living. Our

present old age benefits are definitely inadequate. I
propose that we immediately establish the principle of
giving a minimum Federal old age pension of $60 per month

to every person who has reached the age of sixty. This
minimum $60 per month pension should be available to every
man and woman over the age of 60 who makes application.

If both husband and wife are over sixty, this will mean
a monthly income of $120 per month. It should be deemed

to be a right, not a charity, a right springing from the
years of service each person delivers to the sum total of
a better America.

This social security program will, of itself, by
adding to the spendable purchasing power available to the
people and by placing a floor on consumption, add from

two to three million jobs a year.
VIII

The eighth economic right is "the right to a good
education."

We must have an educated and informed America. Even

now most of our rural areas and some of our urban areas

are poorly provided with schools. Our teachers are
underpaid. Our schools are badly understaffed. We need
more schools and at least one-half million more teachers.

118

- -27-

Through Federal aid to poorer communities for the development of locally controlled educational programs, we propose
to equalize and extend educational opportunities throughout

the land. We propose to provide facilities for technical
and higher education for all qualified young men and women

without regard to their financial means. In this America,
the pioneer of free education, the right to technical and
higher education should be as universal as the right to a
secondary school education.

#*###* #

This is the program that will bring to reality our
Economic Bill of Rights. It is a program that will provide
jobs, economic security and rising standards of living for
all Americans - regardless of race, color or creed. Our
democracy can be a living force only if it means the good

life for all the people.
The millions of more productive jobs that this program

willbring are jobs in industry. They are jobs based on
the expanded demand for the output of our economy for
consumption and investment. And this program need place

no real burden on the Federal budget, notwithstanding the

reduction in taxes which must come after the war. On the
contrary, a program of this character can provide America

with a national income of $200 billion. With a national
income of this magnitude it will be possible to reduce the
tax rates still further on personal incomes, on business
profits, and on consumption, and still collect enough tax
revenues to meet the needs of the Government, including

orderly retirement of the national debt.

119

O
- 28 -

This, my friends, is our immediate goal, once final
victory over our enemies has been achieved.

Now there will be, I am sure, those who will say that

the goal which I have set for you is fantastic. These are
the persons of limited vision and blunted imagination.
These are the same persons who said I was dreaming when I

declared in 1940 that the American people would produce

50,000 planes in one year. In fact the American people
produced over 100,000 planes in one year. These persons

also labelled 8,000,000 tons of shipping in one year a
dream. The American people actually produced

tons.

45,000 tanks was supposedly another dream. In fact we
.

produced

And these are also the same persons who

scoffed at the idea that America could in less than 4 years
build the greatest Army, the greatest Navy and the greatest

air force in all the world. Do these Monday morning
quarterbacks have that great faith in the American people,

and in their way of life, which is required in order to
understand the meaning of America?

And yet these same great visionaries who see but dimly

into the future have excellent hindsight. As the great
events of history march forward, while they look back,
they are at least able to recognize what has passed them
by. Only then do they shake their heads wisely and

proclaim that of course it must be so. They have seen it
with their own eyes. Thus, for example, they say, and I

120

- 29

am quoting

"Of course, we need security regulation.
Of course, we need bank-deposit insurance. Of

course, we need price support for agriculture.
Of course, the farmers of this country cannot be

left to the hazards of a world price while they
buy their goods on an American price. Of course,
we need unemployment insurance and old age pensions

and also relief whene ver there are not enough jobs.

Of course, the rights of labor to organize and
bargain collectively are fundamental."
I suppose that after this program to which my
Administration is pledged has become an accepted part of

our way of life, the battle-cry of the hindsight artists
will go something like this. They will say that of course
the right to a useful and remunerative job in the industries
or shops or farms or mines of the nation is self-evident;
of course the right to earn enough to provide adequate

food and clothing and recreation is self-evident; of
course the right of every farmer to raise and sell his
products at a return which will give him and his family
a decent living is self-evident; and of course this and

of course that. Oh, I forgot - there is one more of
course" that they will add. They will say "Of course,
we could have done it better."

121

- 30 -

I am confident, however, that the great majority of
the American people share the same great faith in
America and in the American way of doing things which I
have expressed tonight, We know our way and the road

ahead is straight and broad although there are many hills
which we must climb. The program which I have set forth

is only the first milestone, for the capacity of the
American way of life in the years to come is beyond the
vision of man. The American system of free enterprise
is the best the world has ever known and through it we

can obtain, God willing, the best that this world has to
offer.

Copy House
to Hm at10/24/44
the 122
Third Session

Kaiser, Henry J.

ADVANCE TEXT of an address to be delivered at

approximately 8:30 P.M., Tuesday, October 17, 1944
at the third session of the NEW YORK HERALD
TRIBUNE FORUM ON CURRENT PROBLEMS at the

Waldorf-Astoria Hotel in New York.
#HHHHH#

By Henry J. Kaiser, President
Henry J. Kaiser Company

"Jobs for All"
Good evening, ladies and gentlemen. On this one fact, there
is unanimous agreement: every man in the American Forces has the

right to come home not only to a job, but to Peace. Anything less
would be a denial of the true American way of life.
Peace means so much more than a cessation of hostilities!

Peace is a state of mind. It is based on the sense of security.
There can be no peace in the individual soul, unless there is
peace in the souls of all with whom we must live and work.

"Jobs for All" could well be the first slogan for a "just
and lasting peace.' But the recognition of the need will not
create employment. The real problem is how! It is to this question
that I want to speak tonight.

-2-

123

When I heard Mrs. Reid's challenging theme for the Herald
Tribune Forum, I, too, wanted to be numbered with her among the
"Builders of the World Ahead."

No one in the Forum audience last night, and no listener on

the air will ever forget the stirring challenge from Lt. Bolte and
Sergeant Caldwell. There can be no doubt that they spoke from the
mind and heart of every man in uniform.

I have always believed that the future belongs to youth;

it is theirs to build. Here is an opportunity to help youth see the
pattern emerging out of a great surge of social forces. There must
be purpose in the cause to which a whole generation of youth is

giving their lives.
Can we shut out the world a few moments; close our eyes

and let in the vision of this world Ahead" !
Think of homes - not just shelter against the elements -

but homes in the true spirit of the word. Millions of our people
have never known what home really means in terms of space, light,

sunshine, trees and comforts. Recently, I visited a unit of 400
such homes. With the thrill of accomplishment, the builder told
how his dream had come true. The formula was simple:-uniformity only in

service units; wide selection in design and color; spacious lots,
and good materials. From these ingredients he made houses so

attractive that the owners straightway set about making them into
homes. A community nursery supplied shrubs and trees, for as

-3-

124

little as ten cents each. "The down payment", said the builder,
"is only the first step, but when the buyer has put two Saturday
afternoons into making a garden, he is sold for good." The
project provided broad streets and landscaped parkways.

There was comforting release from the dread monotony of the alltoo-typical industrial town.

I am convinced that two million homes should be built for

ownership or rental in the first year and a half after conversion.
There is the demand for many more. At least this many families can
make a down payment. The monthly installments can be low. Financial

agencies, both public and private, will carry the contracts at
reasonable rates of interest. This means an expenditure of eight
billions. It also means immediate employment for four million workers.
In the first peace year, there will be an actual demand

for three billion dollars' worth of repairs and renovations in
existing housing. This could well employ an additional one million,
four hundred thousand workers.

With limited exceptions, the law requires that nearly five
hundred thousand temporary and stop-gap units be torn down. We

cannot allow this war-housing to become the slums of the future.
Here also are jobs for thousands.

125

-4Often I am classified as a dreamer, particularly when I

talk about health insurance. To live abundantly and take part in
a productive economy, our people must have health. This is not

only a matter of medical science, but of facilities. Health
service can be rendered on a self-sustaining insurance basis,

at a price well within the reach of all. The cost of such medical
care might be incorporated in the monthly payments on the home,

freeing the American family from the fear of illness and the
loss of income :

We can go further and insure the payments when illness

overtakes the head of the family. If American industry builds and
equips modern hospitals in one thousand American communities in the

first year after the war, prepaid medical service could then be
organized around these facilities. The five hundred million dollars
so spent will generate employment for two hundred and fifty thousand

workers. I am speaking from the experience of operating seven

hospitals on this basis. It is encouraging to read recent announcements that public health authorities are now thinking along these
lines. Organized medicine is beginning to see the wisdom of this
sound principle.

126

-5Think of highways. Think of them as already foreshadowed

in the beautiful New York parkways. Great six and eight-lane arterials,
parked with trees and lawns. Think of relieving the congestion

in our city streets; breaking the bottlenecks in the metropolitan
areas; opening up the suburbs to the health and happiness of rural
life. The President's Committee on Highways recommends three billion

dollars annually. This would supply jobs for one million, five
hundred thousand workers.

Think of the highways as the servants of the new air world

which is already a reality. Dare to envision five thousand airports
ready to serve the youth who have learned to live and work in the

air. The CAA has budgeted a billion dollars of federal aid for

three thousand such airports. If they are built in the first
post-war year, they would supply employment for four hundred and

fifty thousand workers. Post-war demand for private airplanes will
probably exceed one hundred thousand units. There must be airports
to make such production possible.

Think of automobiles. The day of low-priced transportation,

with a low operating cost per mile is at hand. The automobile industry
has promised six million passenger cars in the first peace years. Many

potential buyers will be disappointed. An additional output of
utility cars would bring to many homes a car for service, as well
O as pleasure.

127

-6Automobile manufacture will provide direct employment for
three million, two hundred and seventy-five thousand workers.
The combination of these two essentials - the automobile

and the airplane - will attract a hundred thousand American families.

They will drive their car of the air as simply and as often as they
drive their car of the road. The family plane and the helicopter
are nearer than we think. The age of the air is upon us. The
highways and the skyways are one. It will require two hundred and
twenty-five thousand persons to build these planes.

Think of railroads. They will not only survive, but
prosper, in the "World Ahead." Designs are being completed for
18

trains to be dispatched and controlled by continuous radio communica-

tion; fast trains built of light metals. Employment in this field
alone, could keep four hundred thousand workers fully employed,

not only for the first year, but for many years in this basic and
essential industry.
Think of the opportunity to lease-lend or sell on the
auction block a great part of the equipment which we have now outgrown.

Many countries could use it to immense advantage in their present
state of economic development. This is a prospect of tremendous
promise.

128

-7Think about finance in the "World Ahead": a banking system,

fortified to provide the incentive of risk capital; a fiscal policy
encouraging obsolescence; write-offs which would send outmoded

equipment to the junk pile; depreciation stimulating every scientist
and inventor to create the new and to improve the old in productive
equipment.

The total volume of employment thus far mentioned is eleven

million five hundred thousand. And I have named only four of many
essential industries !

Think of the vast number in the service industries. For
every worker in manufacturing and mechanical lines, more than two

are required to provide everyday essentials - farmers, clerks,
telephone, radio, power, light and transport operators, barbers,
postmen, and a hundred other similar activities.
The economists are now talking about the "multiplier."

Don't ask me how to apply it! I'll just ask you to do the
multiplying Eleven and one-half million engaged in building
houses, highways, automobiles, airports, and transportation.
Two to one occupied with providing everyday needs. We don't need

a sharp pencil to add it all up. To me this indicates jobs for
thirty million persons - well over one-half of the post-war labor
force of the United States.

129

-8Construction and transportation are the most powerful

forces in the business cycle. Therefore, I venture the assertion that
these four social economic factors - the home, hospitals, transportation
and highways - would bring into play the immense power of the entire
enterprise system. Under their stimulation, the whole economy
would move forward on every front.

Think about foreign trade ! Every thinking American knows

that hope belongs to the world. Foreign trade must play a great part

in "Jobs for All." It carries the concept beyond our borders to
every nation on earth.
At last we have a Merchant Marine which can take an equitable

place in world shipping. But we have to remember that a number of

nations live by this business. There is a growing list of things
we need from the rest of the world. We are getting ready for
foreign trade which will employ many thousands. We have come at

last to see that foreign trade is a two-way street. We must buy as

generously as we hope to sell. Here again, it is time to do, as
well as talk.
The possibilities for production in the "World Ahead" are
fantastic; the greatest pent-up demand in modern history; the greatest
productive capacity ever known; the most enlightened scientific
force; the greatest amount of genius and invention.

130

-9-

Best of all, a generation of youth, blessed as never before,
with ingenuity and courage, millions of young men learning in the
hard school of war: how to meet emergencies with the tools at hand;
how to improvise; how to overcome terrifying obstacles; how to

press forward, not only against a ruthless enemy, but against the
elements and the terrain; how to endure hardship; how to sacrifice;
and, most important of all, how to win.
I have now asked ten times that we think about our economic

future. Just what good will such thinking accomplish? None, unless
we do something about it. We have reached that stage in a world

crisis where industry faces its greatest task, namely, to continue
every essential war effort, and, at the same time, to organize
for peace.

I am not an economist, nor am I trained in social politics. but this one thing I know: If we are to escape the booms and depressions of the business cycle, costs must be reduced, and living standards

raised. In the prewar economics, reductions in cost were all too often
made at the expense of labor. Therefore, purchasing power declined.
There can be no doubt that the major portion of everything produced

represents labor - from the mine and the forest, to the most

intricate finished product. Therefore labor must benefit in the
improved technology in the "World Ahead."

131

- 10 Remember, youth will not be handicapped by the prejudices
or blindness of an outmoded past. The men and women who have

accomplished the impossible in defense, in war, and in sustaining

a war effort throughout the world, are not apt to be afraid,
Our nation was created by men of faith, against obstacles such as

you or I have never known. Our country is sustained by men of faith

today in the midst of battle. There will be "Jobs for All" if
the men of faith have their way.

132
October 24, 1944
5:18 p.m.

HMJr:

Hello.

Operator:

All right, go ahead.

HMJr:

Hello.

Edward R.

Stettinius:

Hello, Henry.

HMJr:

Hello, Ed.

How are you, sir?

HMJr:

Fine.

Some of the political boys of the Department are

asking how we stand on French Lend-Lease.
HMJr:

Yes.

I understand that's in your lap.

HMJr:

No. It's just under where I sit.

Under where you sit?

HMJr:

Yes.

HMJr:
S:

Not in your lap?
No, sir.
What -- what's the plan?

Just sit.
Just sit?

HMJr:

Yeah.

HMJr:

Indefinitely?
No, but the President and Mr. Churchill said to
sit for a while.
Yeah.

-2HMJr:

That's what they

But now we've recognized

HMJr:

IEd.don't think that had anything to do with it,

Huh?

HMJr:

I don't think that had anything to do with it.

Has nothing to do with it?

HMJr:

No.

133

Well, now, what do we say to the French on the
diplomatic level? When they came in on August
the 23rd and we agreed, as I understand with

your permission, to start negotiations and
nothing
has been done since. Now, we're getting
toward November.
HMJr:

Well, supposing you ask the President the next
time you see him.

Ask the President?

HMJr:

Yeah.

As to what he wants -- well, Henry, I understood
he referred it to you.
He did, but all of these things like this -- how
shall I say -- spring from him.

HMJr:

Yeah, well now you know that I'm not going to be
able to spend much leisurely time with the President

in the next little while.

HMJr:
S:

Yeah.

And here we -- we're -- our fellows are -- we've
got a full Ambassador now and the French are
needling the hell out of our -- our fellows -our Jimmy and Doc Matthews and we've got to say
something to them.

HMJr:

Well, we gave the President a memorandum on it

and it came up the time that the two of them were
together and the both of them said just to sit on

it.

- -3- -

Yeah.

HMJr:

I recommended that we sit on it.

Uh huh.

HMJr:

This has to do with reconstruction.

Yeah.

HMJr:

But

Well

HMJr:

it's a thing -- I mean, if you want to
discuss it, I mean, I'm available. I can't do

134

it on the phone.
S:

HMJr:

Yeah.
Okay, Henry, I'll -- I'll try to be in
touch with you about it.
Yeah, but I hope -- don't misunderstand me -I hope I'm not going to read about this one now --

that I'm the fellow that's sitting on it.

HMJr:
S:

HMJr:

Well,
now,
listen,
you've
never read a damn thing
that I've
ever
leaked
on you.

No, but there are people over there that do.
Well, now, who? I wish you'd tell me.
Well

you'd tell me, Henry. It would be helpful
ifI wish
you would.

Well,
-- all I and
know is that -- what the people
say -- II mean,
Well, they tell me about what -- what -- about your
fellows, too, leaking all over town. I mean,
you don't -- you and I don't want to have a
misunderstanding on those things.

HMJr:

No, but it's easy enough to throw a red herring
but there's nothing in it for me to leak about
this so-called Morgenthau Plan.

-4S:

135

Well, do you think that came from the State
Department?

HMJr:
S:

HMJr:

That's what I'm told.

Well, I think I can -- I think I can prove
differently.
Well, I wish you would.

I think you're wrong on that.
Because I'm -- I'm not going to take -- wherever
this stuff comes from -- I know it didn't come
from the Treasury because it would be stupid to
let it out of the Treasury and you know what
happened up there. I mean, there's no reason
why we should have aired it, but anyway, the
strong inference was, and I'm not going to say
it on the phone, but I'm perfectly willing to
tell you any time I see you, that it did come
from there.

HMJr:

Well, I'd like to see you and talk it out

because I've -- I have a different impression
entirely, Henry.
Well, the first time we meet when we're alone

let' talk about it.

All right, thank you very much.

HMJr:

Thank you.

136

OCT 24 1944

Dear Mr. Crowley

This is is reply to your letter of Ostober 17 concerning
payment by the French of the outstanding obligation for civilian

land lease supplies delivered to French North and West Africa.

In advising the Treasury representative is Paris that he
was transferring 850 million as a part payment of the existing
debt for civilian supplies sent to French North and West Africa,

the French Minister of Finance stated that the payment on account

was made because be did net know the - total of the indebted

ness. The French Minister of Finance expressed his intention
to settle as seen as possible the balance of the French debt to
the Land Lease Administration and informed the Treasury representative that he was instructing his representative in Washington
to reach an agreement with the Land Lease Administration as to

the balance which remains to be paid. A copy of the note -

ceived by the Treasury representative in Paris from the French
Minister of Finance is attached.

officiale of the State and Treasury Departments new
working out a procedure whereby the $50 million payment can

be effected and it is hoped that the payment will be -

mated within the very near future.

Payment to the French of the dollar counter value of the
net troep pay has become involved in accounting difficulties
which may not permit a transfer to be made for some weeks. The
War Department reviewed the matter of proper accounting and

issued new instructions to the field. Such dollars when made
available may, of course, be applied against the outstanding

obligation for civilian land lease supplies, if the French se

desire.

Very truly yours,
(Signed) H. Morgentham, Jr.

Secretary of the treasury.
Mr. Lee T. Creeley,
Administrator, Foreign

Ministration,

Been 414, National Press Building,

14th and , Streets, Nerthrest,
Washington he D. C.

Inclesure.
HG:

10/23/44

FOREIGN ECONOMIC ADMINISTRATION
OFFICE OF THE ADMINISTRATOR

WASHINGTON 25, D. C.

The Honorable

OCT 17 1944

The Secretary of The Treasury
Washington, D. C.
Dear Mr. Morgenthaus

Thank you for your reply of October 6, 1944 to my letter of
September 18, 1944 concerning the application of the dollar
counter value of troop pay of American troops in France to
the outstanding obligations of the French for lend-lease supplies delivered to French North and West Africa.
Just prior to receipt of your letter I addressed a second
letter on this subject to you dated October 5, 1944 in which
I mentioned the fact that the obligation of the French for
such supplies exceeds the fifty million dollars which the
French are in the process of transferring to the United States
Government, and there will be additional supplies furnished to
Metropolitan France, as well as to North and West Africa, for
which subsequent obligations will arise.
The length of time during which the existing indebtedness referred to above has been outstanding has caused some difficulty,
and, in view of Mr. Valensi's letter to you of September 4, 1944,

it would seem desirable to liquidate these amounts as BOOD as con-

venient from the troop pay dollars which are becoming available

to the French. There is, of course, no question of the intention of the French authorities to meet their obligations in full;
it is merely a question of the application of these available 88sets to specific obligations.
Sincerely yours,

Leo T. Crowley

Administrator

CONFIDENTIAL
October 24, 1944

In talking with harry white at lunch 1 said that,
thinking out loud, 1 realized in my own opinion that
what the british are asking us to do is almost impossible if we take their figures at face value and
that we have to approach it from some new and rapid
manner, and I compared it to some international
business that has its selling agencies all over the
world that had lost its sales outlets and who had

converted the home factory in the United States to
making munitions. It seemed to me that in order
to recondition that business, or the british Empire,
the British Empire would have to give up some of its

activities.

I raised the point that if we go on the assumption
that the british navy is worn out and antiquated and
they are expecting us to recondition it at great ex-

pense and at the expense of the American taxpayer,
that with all the enemy navies out of the way, once
we have defeated Japan why couldn't we say to the

british and to the Russians, for example, there are
a million units of navy fighting vessels and that we
keep the biggest proportion and then either give or
lease the remaining proportion of modern fighting
ships to the English and the Russians and the three
of us police the world, and this would keep us from
spending a lot of money to recondition the british
navy. White's comment on the plan was "it's too
intelligent, too rational". however, I want to pursue it.

Furthermore, I want to raise the point with Admiral

Leahy whether or not we need as large an army for the

British Empire as they have to win the war. by
that I do not mean I want to substitute our soldiers
for their soldiers, but it does seem to me that there
are certain theatres of the war which are getting us
nowhere, particularly manned by the british for prestige
purposes, which could be given up. For example, I
would like to know where it is getting us by having

139

CONFIDENTIAL
-2-

a million troops, or whatever the number of troops is,
in India and what does it accomplish. Any chance of
invasion of India on the part of the Japanese is out
of the question and I would just like to raise the
question why not withdraw all troops from India and

certain troops from the Middle East. If either of

these plans could be worked out it certainly would
cut down the expenditure of the british Government

by vast amounts and I gathered from White that Keynes

raised the question in a conversation that he did not
see why they needed to spend nearly so much for troops
in the Middle East.

140

141

October 24, 1944

Dear Eleanor:

I have asked for a report on
Ralph S. Savage, and have decided to

have him reinstated and given another
chance.

Affectionately yours,

(Signed) Henry

Mrs. Franklin D. Roosevelt,
The White House.

(

142
THE WHITE HOUSE
WASHINGTON

October 17, 1944.
Dear Henry:

I wonder if you could have
him investigated and if he seems a
good risk, give him a chance?

Affectionately,

T.I.

Hills n 4
Oct IO, 1944.

OCT 13 1944

Mrs. Franklin D

Washington L

the As
a

weeks starming

my dear For Mrs Rooswelt I have been

the Gates of Heaven with prayers for
my reinstatement to a position in the

government employ Last might in a
dream I was directed to write to you
and explain my unusual predicament
I was assured that you would and
me. I trust you will bear with me
while I relate my Case History and
place my proflend before you

at the outbreak of world nar 7, I was
employed in the state Senate at Albarry

(democratic 9 resigned

my position immediately, and exlacted
in the n 474 Regiment after serving for
the duration I was honor utly discharged
as an army Sergiant in Jan 18.1919

Shortly afterward Inflamada position

in the Internal Revenue department, 3rd

District
Sy
democratic
appointment)
are
a field deputy
For
more
than
twenty
years
Iheld
the
position and had a a lunded record

good and facebut ervice then something
happened in myj rwate lipe which up net

me and changed the whole Could
agony expective Through

the executive of my father's relate, Ilort
an inheritance which 9 had counted in
very much indeed Istanted to drink very
brandy as an escape prommental warry
While w a stupur from liquor (tspur
chase more liquor) on several occauing

Ispuit government
funds which 9 had
This

sometime
this
the care a

I was los ill lofe

declared collected. that of During physican went unnoticed period who afterward I was under accountable

fur However,
my deed I suddenly came to my
and realized what I had done Iconuda

my
Father
Confessar
Ye
advised
me
4
replace
the money Iknew that by doing so

it meant the decavery of my deeds but
Iss wanted to make amends and clear
my consuence that I did not hentate

The result was 9 was dismissed from The
service with predudice, though must that
have been abvious to my superios

I was arck in mind

For months then disgraced and broken
hearted , streed & drink myself s death

but God urlled otherwise
Them came nee 74k. and the allas
anDearlWarbar This safered me as

elee haddone at last draw a

way uncle Sam fur myeriar

3.)

I tried cmi me dealely D select in the
army but in and rey cited because of me
age ii short denie later however Che
marine Carp sent out an appeal for week
who had been Sergeants in bose ef mart
I answered the call and was accep led
an april 8. 1941, at the age of HT years
Stynee recall constitution at Parris Island

as the beginning yeth war pesh ap you
can imagine law difficult and Carlorous
is was me in Day advanced years, to

the rigars of marine Bual Training
there But the pain in my heart was greater
than other physicalp am and my determination
to make good kept me on my feet through t

all while dozens of strong years men
but half my age drop peel uneomo
from
physical
exhaustion
grill I made it, Thank God at last

I wasa Sergant in the marines and so happy

once again g he working far and with
the
government
of
my
country
that
it
brought tears of gratefulness to my eyes
2

I served
themy
best
of my
every
things in
power
toability,
make audded
life a

little sweeter and less harsh for the hundreds
of young marines with whom I came in

contact I was "Pop" 4 the marine Curpo

for 2/2 years until I was Lunaratly dis
charged an Sept. 20LL last

Then
troubles
began again you see
Rossevelt
my
mrs
it
is
retrievely
different
for
me to obtaina positions because Laming
always here
tioned have

had no training whatsoever for

and other fund of indiavor.
ON all, including my service in both

I hau been in the government
emplay for some twenty 3rd - six years ,

That you will a gree is a great interval
of time to spaw when suking employ.
ment elsewhere Then, too fifty years
w a late aye lo commence a person of

trayman far unfamiliar employment

now, mrs Rosevelt (lamuy oftained

myhomerath desitarge and feeling

the

that have my deft to my

country I buy leave to make this request
business enough

your 200 frience in having me

runs Taled s a firition in the Internal

Revenue department in are of the new

york officer 7 Island be ourgaged s
have any clerke hip and and

sicking Field Deputy farmerly
held by Sn for as many year

Though fifty year of age, make a
five personal appearance and was

declared condition

by
the
navy
ganimed
me a short amage I am definition "employable"

my need
is veryremark
great mrs
Reservett.
Thrate
someone
recently
that
Will wro The warnet if the grannfarent

<<<
can hold out! my
aud arents who was holel out, at
<<<<

my dauguler husban d a

invegular has been been with ove

belong

wee left 13th and from up armetion
incomed w jeat-Were is little chance

we Lung and illne. unit there a levic
months old daughter whombe has
with
i
Into
icen than the fuling that

w anutle for daughter
B

or was C ome Therefore, m more

than any cous to oftain a portion canne
deately and prepare my . sample responsibility

you may wonder why Ido not appear
hesitant to approach you upon This

matter hrs Rooswelt; why Ide not fear
you may consider me presempleous.
Froubly my dear lady it i because
consider you ansay the fee truly great

wonce of the world, will only the Uri

great are Soundful of the Vecails and
problem of thore us farlunate havefaith in you
Few people has sufferedmor deeply
of an errar chan 9 have mrs Carewell
any Crunified my eff Ohave paid andra

and 2: can ussure you, that one year
in of Earlunley & work for my Govern meet
a gain my record will even surp aso in

4.) ceycellence the are 9 pro a day held

is Driar to my Due fortune for livenly year

O on
I fiel
have
compained
methat
andyou
andwill
me.
In return
leave
onlyfroment you my rudy my grati
tude and the perpetual prayers of

my entere family far your welfare
and for the weel been of each and
every member of your family

Senserily yours
Ralph F Savage

147

OCT 24 1944
25

My dear Mr. Attorney General:

I desire to call your attention to the situation existing in

Philadelphia which is causing the Department considerable concern.
AS you may know, there has been a rather widespread attempt
throughout the country to make loans upon or to advance the redemp-

tion value of United States Savings Bonds. This is particularly
prevalent in the case of workers buying under the payroll deduction
plan and who naturally can less afford financial loss in connection
with their purchases. The general mode of operation is for the bondholder to take his bond almost as soon as he receives delivery, to
a loan shark or other person or organization operating in this field,
and execute the request for payment, which is sometimes properly

certified but more often certified by a notary public, I believe in

many cases without the personal appearance of the registered owner.
The owner then receives amounts varying from $12 to $15 for a bond,
the redemption value of which is $18.75, and sometimes executes a

power of attorney for the collection of the check. In at least one

case the power is contained in a book at the head of each page, and
all purchasers sign the book. Obviously such powers are not certified or acknowledged in accordance with Treasury requirements. The
check, in accordance with the request, is delivered at the address
of the person advancing the money. In many instances I believe the
endorsements are forged.

The Department has taken such steps as are possible for it to
break up this practice and generally has had very satisfactory cooperation from United States Attorneys where, through the Secret
Service, it could be developed that a criminal offense had been COMmitted, either by forgery of the endorsement on the check or through
a conspiracy entered into by the owners, the persons advancing the
money, and in some cases by certifying officers. One such case, that
of Mr. and Mrs. Sonnenberg, doing business in Camden, New Jersey, was

very vigorously attacked by the United States Attorney for that district who afforded the Secret Service of this Department the very
fullest cooperation in the arrest of the two Sonnenbergs and their

prolisinary hearing. This case is still pending.

148

-2An equally flagrant case arising in the City of Philadelphia

while presenting equally vicious practices and what seemed to us
very clear evidence of forgery, has not been prosecuted, the United

States Attorney in Philadelphia taking the attitude that the man

should be warned. This man, James P. Lane, has carried on a very
extensive business of this character among the colored population
of a section of Philadelphia. He has several places of business and

has been carrying on this practice for some little time.

The Sonnenberg case received great publicity in the Philadelphia
newspapers. The activities of Mr. Lane were fairly well known and
were thoroughly investigated by the Secret Service. It has been a
cause of considerable embarrassment to this Department and to the
Federal Reserve Bank of Philadelphia, in whose district both cases
lie, that such diametrically opposite views have been taken by the
respective United States Attorneys.

I will appreciate it if you would issue such instructions as
may seem fit to the United States Attorney at Philadelphia in order
that the Lane case may be prosecuted with full vigor. That case
happens to be one of the most flagrant which has come to my attention
and the man already has a record of a number of arrests for various
offenses.
Very truly yours,

(Signed) M. Mergenthan Jr.

Secretary of the Treasury

Honorable Francis Biddle
Attorney General
Washington, D. S.

TWCunningham:fbs:10/20/44

149
FOR VICTORY

OFFICE OF 1.

TREASURY DEPARTMENT

BUY
UNITED

WASHINGTON 25

WAR

BONDS
AND

STAMPS

THE SECRETARY

October 24, 1944

MEMORANDUM TO THE SECRETARY

I am enclosing a list of the
special items valued in excess of $50,000
as of October 23, 1944.

ELOhas
E L. Olrich

Assistant to the Secretary
Enclosures

PROPERTY FOR DISPOSAL

SPECIAL ITEMS, COST TO GOVERNMENT IN EXCESS OF $50,000
AS OF OCTOBER 23, 1944

QUANTITY UNIT COST COST TO GOVT.

1. Furniture
BEDS AND COTS, USED

83 000

$3.50

310 760

914 000

.73

667 220

533 000

5.50

2 931 500

14 964

6.30

94 415

Includes wooden, double-deck bunks; steel, single
beds; folding, wood and canvas cots.
PILLOWS, USED

Some cotton, some feather pillows, - mixed in
bales. Used pillows are not wanted.
MATTRESSES, NEW AND USED

About 1/3 are new. Substantial sales of used
mattresses, for conversion into paper, take
place regularly.
STOOLS, WOOD, REVOLVING SEAT

Disposal plan is being formulated.
BED PARTS

Springs, heads, feet, and side rails; unassembled.
Negotiating with bed mfrs. regarding re-purchase.

65 000
150

Page 2

QUANTITY UNIT COST COST TO GOVT.
MATTRESSES, INNERSPRING, NEW

9 500

$6.00

58 000

767

80.00

61 360

281 097

.25

70 933

From O.C.D. stocks. New declaration - plans
being formulated.
2. Machinery
TRAILER HITCH, USED

New declaration - no action as yet.
DRILL, ROCK, REPLACEABLE TIP

average

In kegs and drums. Have been offered to the

original mfr. They are not interested.
ICE GROUSERS, NEW

Ice gripping shoes to be attached to special
rubber tired treads of high speed military tractors.
There is no known application on standard machines;
no market, except for scrap. There were 24 replies
from 7000 folders, with no interest shown.
GROUSERS

Non-standard mud cleats for crawler-type tractors.
They are nothing but sheared pieces of structural
angle iron, worth nothing except for scrap. Ad-

vertising folder will be issued

76 726

2.70

207 160

3.00

131 559

pieces

43 853

151

Page 3

QUANTITY UNIT COST COST TO GOVT.
CONSTRUCTION MACHINERY, HEAVY

6 500 $1,000.00

6 500 000

average

General inventory of used machinery, most of it
in very poor condition. Sales are being made regularly
but inventory mounts.
3. General Products
BATTERIES, DRY CELLS AND PACKS

130 000

Overage for Army use. New declarations come in and
sales are reported regularly.
GENERATING SETS, USED

12 5,000.00

60 000

25 K.W., gasoline driven. New declaration no action as yet.
HORSES

2 200

165.00

333 000

All horses will be sold according to established
program of auctions.

CAMERAS, AIRCRAFT

Each camera has great variety of collateral equipment. Obsolete type. Physical inspection, being
made. Informal negotiations with Fairchild Camera
Co. in process.

307 386

152

Page 4

QUANTITY UNIT COST COST TO GOVT.
360 000

60 000
pkgs.

FILM & PAPER, PHOTOGRAPHIC

Rolls, cut film, and packs - mostly overage.
The overage material will be processed to recover the silver and chemicals.
DRUMS, 55 GAL., USED

50 000

$2.50

125 000

834 986

1.00

834 986

Sales of moderate quantities are being made

regularly at ceiling price of $1.00.
AMMUNITION BOXES, METAL, USED

It is reported that about 2 million boxes are

coming in and we are awaiting further declarations
before starting disposal.
4. Automotive
AUTOMOTIVE SPARE PARTS, NEW

21 000 000

14 000 000

Large quantities on recent declarations are bolts,
nuts, spark plugs, fuses - called "parts common"
that can be used on any motor vehicle. Lists totalling 11 million parts worth $2,500,000 have been
submitted to Ford and General Motors for them to
analyze and determine parts acceptable.

153

Page 5

QUANTITY UNIT COST COST TO GOVT.

2 000 000

AUTOMOTIVE PARTS OBSOLETE, USED

Majority are used, having been taken from used

vehicles and put in stock. There are acres of used
bodies, fenders, cowls, cabs, etc., at Blue Grass,
Ky. and Fort Crook. Spot check inspection list has
gone to Chrysler as a test action on disposal.
Other lists are going to other manufacturers.
$1.74

658 580

1 500

100.00

150 000

10 741

79.00

848 539

378 459

HYDRAULIC FLUID

gals.

Needs reprocessing. The manufacturer's telephone

offer of $.50 per gal. for entire lot has not
yet been confirmed.

MOTOR ANALYZERS (TESTERS)

Regional office has been authorized to re-sell
to manufacturer on a 3 month's delivery basis.
JACKS, HYDRAULIC

4 wheel, roller type, for garage use. There are
several makes. TWO manufacturers have been

requested to submit an offer.
5. Hardware
154

Page 6

QUANTITY UNIT COST COST TO GOVT.
CARTS, FOOD

586 $368.00

215 648

6.85

68 500

330 000

.89

293 700

47 967

6.28

301 399

10 000

33.50

372 446

Hospital equipment. Inspection report still
aWaited. Will be transferred to Veterans'

Administration.

MARKERS, MINE FIELD

10 000

sets

Carrying case with 30 metal flagson pins.
Several orders for small quantities have been
received from state road commissions.
HELMETS, SAFETY, O.C.D.

Packed 10 to a carton. Have been allocated to
each regional office for sale at established
prices.
MASKS, GAS, USED

O.C.D. stock is being tansferred to Chemical

Warfare.

HOSE, RUBBER

Large size, 25 ft. lengths. Army will

plus short pieces

inspect.

155

Page 7

QUANTITY UNIT COST COST TO GOVT.
COVERS AND SEALS, RUBBER

27 3/4

169 245

tons

Includes 3/4 ton seals, which are round rubber
washers about 1 inch in diameter. There are 27
tons of new "covers" which are 2 in. lengths of

black rubber hose - thin wall, about 1 inch in
diameter. Inspection report awaited.
BOLTS, MISCELLANEOUS

8 500 000

2 500 000

The regional offices have been instructed to
contact manufacturers and large jobbers.
Little interest shown.
STAPLES, GALVANIZED

100 lbs. to a keg. Sales are being made in
small quantities at price near cost to government.
WOOD SCREWS, BRASS, NEW

The regional offices have been instructed to offer

18 000

$4.52

81360

.25

62 000

kegs

250 000
gross

these screws to manufacturers and large jobbers.

Little interest shown.

156

Page 8

QUANTITY UNIT COST COST TO GOVT.
277 000

SMOKE GENERATOR PARTS

Small metal parts (valves, fittings) for Army

mobile smoke generator. The big chain stores
and manufacturers are not interested. A N. Y.

"distributor" is inspecting this material and

has made an informal offer for selected items.
SNOWSHOES, NEW AND USED

24 000

$9.00

216 000

1 880

55.00

101 332

32 5,300.00

169 600

279.00

197 253

Regular types. Represents about 6 years total
sales in U. S. Sales are now being made in
small quantity.
SHOTGUNS

Manufacturers are re-purchasing on contract.
EMPLACEMENTS, MACHINE GUN

A mount for a machine gun. No utility value known.
MACHINE GUNS, ELECTRIC

707

Practice gun. Specifications have been submitted
to amusement park owners.

157

Page 9
QUANTITY

SCABBARDS, BOLO

UNIT COST

COST TO GOVT.

228 000

$1.60

364 800

300 000

1.30

390 000

34 460

3.00

107 316

7 000

75.00

525 000

Designed for bolo that is now obsolete. Few
bolos available. This office has developed idea
to work off this stock to toy manufacturers who
will make toy wooden bolos to go with them.
SPURS, NEW AND USED

Some small sales have been made at $.50 a pair.

Additional prospects for large quantities are
being developed.
LANTERNS, OIL BURNING

Navy will withdraw for transfer to Army.
PLATFORM TRUCKS, STEEL, NEW

Steel trucks on casters. The truck weighs 800 lbs.,
and it takes 2 men to push an empty truck. We have

offer of $16.00 for a limited quantity. About 1500

were sold at $15.00 each.

158

Page 10

QUANTITY UNIT COST COST TO GOVT.
RESPIRATORS, DUST, COMMERCIAL

61 127

$1.00

59 293

27 400

6.00

164 400

34 9,818.00

333 812

Made for African combat use - some are suitable for
industrial use. Bids have been received from three
manufacturers and we expect to dispose of the entire
stock.

SIRENS, NEW

Hand warning device in carrying case. Some
sales have been made at $2.00.
INCINERATORS, NEW

Designed for human excreta but can be used for burning lower-water content material by remodeling at
cost of $1000 each. Manufacturer decided against

re-purchase. Starting to offer for sale direct to

municipalities.

IMPRINTING MACHINES, NEW

35 600

21.95

781 420

Original manufacturer has shown no interest.
Advertising folder is being prepared.

155

Page 11

QUANTITY UNIT COST COST TO GOVT.
RAFTS, PNEUMATIC, 5-MAN

1 300

$200.00

260 000

5 094
pr.

16.00

81 504

About half of original lot has been sold at
established prices. Sales are slowing down
as vacation season closes.
SKIIS AND BINDINGS, USED

All are used. They are gradually being sold.

57 350

925 000

NUTS, SQUARE, NEW

The regional office have been instructed to
contact manufacturers and jobbers. Little
interest shown.

6. Textiles and Wearing Apparel

All textiles and clothing in the

hands of disposal agencies have been
temporarily frozen to enable the Army

to make selections for use in a program for occupied countries.

APRONS, IMPERMIABLE

93 989

5.00

469 945

Rubber coated, with sleeves. Manufacturer not
interested in re-purchase. Samples have been

distributed to regional offices with instructions
to ask for bids.

160

Page 12

QUANTITY UNIT COST COST TO GOVT.
COATS, FIREMEN'S SAFETY, NEW

22 000

$4.77

104 940

257 292

1.00

257 292

45 928

3.00

137 784

76 712

2.20

168 766

New declaration - sample awaited.
HOODS, ANTI-GAS, NEW

Regional offices have been instructed to ask for
bids.

HATS, ARMY SERVICE

The old-style, broad brimmed campaign hat. Of
original amount of 91,000, half have been sold.
Negotiations in process for balance.
W.A.C. CAPS

Samples have been given to exporters and others.

This is an item that is hard to dispose of.
LEGGINGS

213 280
pr.

109 833

World War I stock, good only for salvage.
Now being authorized for sale by Regions.

161

Page 13
QUANTITY

MAGAZINE BELTS

UNIT COST

COST TO GOVT.

55 369

$2.35

130 325

1 000 000

.10

100 000

5 000

12.66

63 600

40 000

5.90

236 000

8 861

14.32

126 891

37 024

2.00

74 048

An apron of web fabric belt pockets to hold
bullet clips. Samples have been sent to all
regions to widen sales effort.
BELT POCKET FOR CARTRIDGE CLIPS

Web pocket with fastener. Radio advertiser is
taking quantities under option as requests from
program develop. Price received $0.06.
RUCKSACKS, NEW AND USED

Regions have been authorized to sell as they
are in bad condition.
MOSQUITO BARS, WITH RODS

This balance represents the remainder of used
mosquito bars after large sales of new material.
.

TARGETS, ANTI-AIRCRAFT

New declaration - sample awaited.
PANELS, SIGNALING

New declaration - sample awaited.
167

Page 14

QUANTITY UNIT COST COST TO GOVT.
$0.119

239 797

667 000

1.00

667 000

105 000

.58

61 500

7 000

9.00

63 000

490

173.00

84 770

144 350

1.19

171 776

2 009 694

SLIDE FASTENERS

Inventories will be taken to determine quantities
by manufacturer. They will be disposed of in same
manner as prior lot.
GLOVES, RUBBER, ANTI-GAS

Gauntlet type - special design for anti-gas

work. Agreement has been reached to dispose

of this stock as crude rubber.

7. Medical & Surgical
BAGS, WET DRESSING

New declaration - sample awaited.
SCREEN, INTENSIFYING

pr.

X-ray equipment. New declaration. No action as yet.
ANESTHESIA & SUCTION APPARATUS

New declaration - samples awaited.
POUCHES, FIRST-AID, FILLED

New declaration - samples awaited.

163

Page 15

QUANTITY UNIT COST COST TO GOVT.
SCALES, PRESCRIPTION

3 980

$23.30

92 897

Lot apparently represents production of
several mfrs. One has been contacted and
is not interested.
DENTAL SUPPLIES

100 000

World War I stocks located at Perry Point, Md.
Instructions have been given regional office
for disposition.
DISHES, EVAPORATION, PORCELAIN

58 525

.09

52 672

70 000

1.35

94 500

Laboratory equipment.
ACETOPHENTIDIN

5 gr. tablets, packed 1000 in a bottle.

bottles

Obsolete item awaiting action by board of
medical officers.
HYDROGEN PEROXIDE, 8% SOL.

Too strong for beauty parlor use. Stock all
reported in leaky bottles. Bottles run from
empty to two-thirds full. Probably worth only
salvage value of the bottles.

402 000

250 000

pounds

164

Page 16

QUANTITY UNIT COST COST TO GOVT.
PROCAINE HYDROCHLORIDE

163 000

$2.75

448 250

6.20

217 000

4.00

386 000

boxes

10 units in a box, 150 and 200 MM ampules.

Being offered to other govt. agencies by

our regional offices (after test).
PEPTONE PROTEOSE BACT.

35 000
pounds

Has been offered to govt. agencies - not interested.
PEPTONE, DRIED, U.S.P. BLAG.

96 500
pounds

Has been offered to govt. agencies - not interested.
BURROWES SOLUTION

18 000

144 000

bottles

2.27 gm. tablets - 500 to a bottle. This item
is being offered to the manufacturer.

SULFANILAMIDE

539 000
packages

344 930

5 and 7.5 gr. tablets. 250,000 boxes of 12
tablets. 289,000 bottles of 1000 tablets.
Obsolete Army item. Awaiting action by board
of medical officers.
165

Page 17

QUANTITY UNIT COST COST TO GOVT.
DICHLORAMINE T

$1.66

595 940

99 000

1.50

148 500

13 500

7.50

101 250

4.55

1 638 000

359 000

pints

16 2/3% in Tri. World War I stock. Awaiting
action by board of medical officers.
HAEMOTOXYLIN, LIGHT

bottles

10 gram bottle. Awaiting action by board of
medical officers.
SODIUM ALURATE

boxes

3 1/2 and 1 3/4 gr. tablets packed in 500 unit

boxes. Special Army package - manufacturer not
interested.
AZOCHLORAMID IN TRIACETIN

360 000

quarts

World War I stock. Awaiting action by board
of medical officers.
STRETCHERS, CANVAS AND METAL, NEW

8 400

54000

New items from O.C.D. stocks. Negotiating with

a large distributor of this equipment.

166

Page 18

QUANTITY UNIT COST COST TO GOVT.
SUTURES, SILK AND CATGUT

13 500 000

2 397.0 000

tubes

For sewing after surgical operations. Two of

the numerous manufacturers might be interested

in their own product 11 quantity could be
determined. The inspection task is practically
impossible as long as the stock remains in the
custody of the Medical Department.

GAUZE, PLAIN, 25 YD. ROLLS

150 000

$0.75

112 500

New. Region has been instructed to dispose of

this item to govt. agencies. Also offering to our

own Purchase Group for local government office use.
DRESSINGS, FIRST AID PKGS.

30 000 000

3 582 000

134 584

128 034

Withdrawals have been made and it is presumed

that this balance represents quantities that

have been purchased from commercial houses,
not Red Cross.
BANDAGES, MUSLIN

doz.

Action is being taken to secure desireable

outlet. Offers will be considered this week.

FLOSS, SILK, DENTAL

Samples awaited. Have been requested a second time

510 000

spool

173 400
167

Page 19
QUANTITY

DISK, METAL, ABRASIVE, 7/8"

Dental supply item - packed 12 disks on a card.
Manufacturer is not interested, reporting big
supply on hand from contract termination.
PETRI DISHES, WITH COVER

UNIT COST COST TO GOVT.

134 000
cards

$0.60

80 400

230 000

.27

62 100

4 670 000

.03

140 100

200 000

.33

66 000

201 307

.45

90 588

Laboratory dish for making germ cultures.
Sample awaited. Have been requested a
second time.

TEST TUBES, GLASS

Some samples have arrived and disposal plans
are being made.

FLASK, WITH CUP

Made for soldier to carry liquid medicine in
field - a small canteen. Probably of no
commercial value.

BOTTLES, WIDEMOUTH, 250 CC

Purchase being considered by a large manufacturer.

168

Page 20

QUANTITY UNIT COST COST TO GOVT.
579 313

2 069

STERILIZERS, NEW AND USED

Includes 1381 considered unsafe by Army, and

688 new sterilizers of inferior quality due to
wartime restrictions on materials.
250 000

SURGICAL INSTRUMENTS

Stocks at Louisville, Ky. Current
inventory unknown.
320 000

BOXES, TABLET

$0.40

128 000

cartons

500 boxes in a carton. Believed to be World
War I stock. Samples awaited. Have been requested a second time.

8. Paper and Office Supplies
NONE

Total

$ 54 780 417

169

SURPLUS USED TRUCKS REPORT

For 7 Days and Period Ended October 21, 1944
(Period Began January 1, 1944)
Period to Date

7 Days to Oct. 21, 1944
Total Used Trucks Declared
Less Declarations withdrawn
Less Loans to Other Federal Agencies
Less Transfers to Other Federal Agencies

42897

1313
1439
150
52

Holds

Net Used Trucks Declared for Sale
Less Used Trucks Sold
Balance of Used Trucks on hand

1257
2191

3073

4662

38235
29895
8340

ANALYSIS OF INVENTORY

Inspected and ready for sale
Not Inspected

6782
1558

8340

SURPLUS US M CARS REPORT

For 7 Days and Period Ended October 21, 1944
(Period Began January 1, 1944)

7 Days to Oct. 21, 1944 Period to Date
Total Used Cars Declared
Less Declarations withdrawn
Less Loans to Other Federal Agencies
Less Transfers to Other Federal Agencies

6186

222
1

113

580

712

HIGH

Net Used Cars Declared for Sale
Less Used Cars Sold
Balance of Used Cars on hand

217
458

5474
4356
1118

ANALYSIS OF INVENTORY

Inspected and ready for dale
Not Inspected

849

269

1118

SURPLUS MOTORCYCLE REPORT

For 7 Days and Period Ended, October 21, 1944
(Period Began January 1, 1944)

7 Days to Oct. 21, 1944 Period to Date
Total Motorcycles Declared
Less Declarations withdrawn
Less Loans to Other Federal Agencies
Less Transfers to Other Federal Agencies

Net Motorcycles Declared for Sale
Less Motorcycles Sold
Balance of Motorcycles on hand

927
96

131
0

15105

831

307

210

341

14764
8562
6202

ANALYSIS OF INVENTORY

Inspected and ready for sale
Not Inspected

4582
1620
6202

173
CABLE TO AMBASSADOR WINANT, LONDON, FOR MANN FROM PEHLE

Reference is made to program of Queen Wilhelmine Fund (similar to
Czechoslovak, French and Polish projects being operated from London).

Queen Wilhelmina Fund remitted $90,000 for its project to McClelland and

for disbursing by trustees, Clement and Krier, in Switzerland. We and
interested groups here have just been advised that Oldenbruck, Dutch Trade

Union representative in London, with whom Labor relief organizations discussed project at time Oldenbruck was in United States, negotiated (without
prior nobice to interested groups here) with Dutch Government which arranged

for the equivalent of $90,000 to be made available in Holland. Dutch Government now desires to be reimbursed by payment to Dutch Minister in Bern.
We are authorizing McClelland, Clement and Krier to make such payment to the

Dutch Minister, provided assurances are received that equivalent has been
made available in Holland.

Interested groups here request that you advise Oldenbruck that any

future transactions of the foregoing type should be cleared by him wi th the

interested groups in this country before effectuation. Since license
requires reports, please obtain report from Oldenbruck concerning use of
the $90,000 in question.
THIS IS WRB LONDON CABLE NO. 16.

4:37 p.m.
October 24, 1944

174

PARAPHRABIS OF TELEGRAN RECEIVED

FROM:

American Embassy, Lambon

TO:

Secretary of State, Washington

DATE:

October 24, 1944

NUMBER:

3236

CONFIDENTIAL

From Hisabeth Dexter for Charles Joy. Unitarian 357, WRB
230.

We refer herewith to your telegram of October 14, 1944,
No. 2732, Unitarian 226.

Refusal was given for Noel Fields validation France. IS is
requested that you reopen the matter with the Department in view

of new regulations. Field cables that an attempt will be made by
him to check figures given by you but since he was not able to
take any documents when be escapted in 1942 from Maramilles, be
doubts success.
NORNER

DGR:IDB:EFR 10/25/44

175

OLF-874

PLAIN

Lisbon

Dated October 24, 1944

Rec'd 10:05 p.m., 25th
Secretary of State,
Washington.

3246, 24th, 7 p.m.
JDC 98 WRB 231.

Twenty-six children and twelve adults saided
aboard QUINE evening October 23rd. Local committee

arranged that all food and service completely accord-

ance with dietary rules. Three hundred eight
passengers enbarking Cadis October 25 and eighty-five

Tangier thereafter.

NORWED
DU

(

176

GLF-677

PLAIN

Lisbon

Bated October 24, 1944

Rec'd 10,02 p.m., 25th

Secretary of State,
Washington.

3247, 24th, 7 p.m.
FOR LEAVITT FROM PILPEL JDC 97 WRB 232,

Further our 96 Perlman advises October 20 that 3
representatives of RAB group arrived Bari stating that
lack housing clothing and food threatens survival winter

at least half this group. British have agreed fly

500 pair shoes 300 blankets 300 pounds medical supplies

from their army stock totaling 2 tons. Quakers supplying some children shoes. Our clothing shipment still
unarrived. Additional clothing needs would require 5
more planeloads. Army agreed provide bulk of clothing
needed but thus far unable supply additional planes;

Perlman plans transmit funds through Doctor Hinko

Gottlieb Croatian Red Cross representative Italy.

1400 Jews formerly interned RAB plus 2000 in another

area constitute sole surviving civilian Jews Yugoslavia.

Perlman urges your action Washington and London first
for resumption evacuation of group of 650 people of
whom still 29 evacuated and second half remaining 2750

who otherwise unlikely survive this winter.
NORWEB
MRM

Friedman, Miss Chauncey Gaston, (for the - I 'v)Middle,
Ballets,
Files

177

RESTRICTED

AIRCRAM
FROM

Stockholm

Dated October 24, 1944
Rec'd November 18, 6 p.m.

Secretary of State,
Washington.

A-912, October 24, I p.n. Political Investigation
of Baltic Refugees in

Sweden.

The Legation has been advised by Mr. Henry Laretei,

former Estonian Minister to Sweden, that under instructions issued by the Swedish Government all Baltic refugee campa in Sweden have been closed for the time being.

This means that until further notice none of the refugoes in the campa is to be discharged from the camps.
Furthermore, the innates of the camps may not receive

visitors except in very exceptional cases. The period

of the closing of the camps may be as long as six weeks.

According to Mr. Laretei, the Swedish authorities
have taken the foregoing action in order to enable them

to undertake a political investigation of all individuals
still in the campa. An effort is thus being made to se-

gregate those infividuals who may be classified as quis-

lings. The latter will, Mr. Laretei stated, be sent to

the special quieling camps which have been set up for
this purpose.

Mr. Laretai's remarks appear to be substantiated
in an editorial appearing in the Stockholm daily newspaper, DAGENS WYHETER of October 22, 1944. The per-

tinent sections of this editorial are cited below:
"What the leading persons in the refugee

committees have been concerned with has most

certainly not been to bring German agents or
anti-Russian agitators to Sweden. Above all
else the committees have striven to give a
more secure existence to the manifestly non-

political Katoniana. This appears also to

have been largely sucdessful. The task has

not yet been completed, however

"It is also

178
A-912, October 24, 1 p.m. from Stookholm

"It is also necessary to obtain a reliable

survey of the composition of the Estonian refugoo groups who have come to this country without
thorough control on the part of the Swedish

authorities. Most of these refugees are cartainly trustworthy people - but there are also
exceptions to the rule. It would be desirable

to know, however, just how suspicious refugees,

who should have made their way to Germany and

not here (to Smeden), are treated."
JOHNSON

HEC/gd

179
C

KEN.892

PLAIN

Stockholm via London
Dated October 24, 1944

Rec'd 8:53 P.m., 25th.
Secretary of State,
Washington.

4323, Twenty-fourth.

Swedish politics.
HANDELSTIDNING 23rd. carries following report

from its Stockholm office. Baltic refugee flow has

now subsided. Addition 6,500 Estonian Swedes 20,000
Balts arrived Sweden of which 19,000 Estonians and
remainder mostly Latvians with handful Lithuanians.
Communist allegation refugees mostly Qusilingites is
exaggeration. Between seventy seventy-five percent

simple country folk; that is, fishermen laborers handicraftsmen and peasants. here some intellectuals and
better situated persons but refugees generally
constitute representative cross section society.
Obviously fear of new regime one of motives for

sigration but it is equally clear many refugees simply
took opportunity escaping from war's misery. Well
informed person who is anything but proderman
stated he hasn't encountered more than two Balts who
intimately cooperated with Germans. Some Balts think

Russians dangerousest enemy whereas others fear Germans

most because they are so systematic in oppression.
HANDELSTIDNING's information from private and official

channels contradicts allegations that Baltic refugees
managed get to Sweden because of steps taken by Swedish

authorities. It is true Baltic vessel SS JOHAN sailing

under German flag brought refugees to Sweden and Swedish

authorities were concerned with these transports but
it was essentially Estonian Swedde travelled on JOHAN.
Small number purely Balt refugees including small
children also came on vessel but that was outside
schedule and Swedes been unable egercise any control

over persons permitted embark in Baltic port. Overwhelming majority Baltic refugees have arrived in other
ways aboard own craft. Germans attempted prevent

flights from Balticum until Tallinn's fall but there
after they'd other things think about. JOHAN's trips

are supposed to have been part some sort private arrange
ment. Bureau Chief Schmidt of Aliens Commission told

180
2

HANDELSTIDNING Swedish authorities haven't concerned

themselves with any Baltic refugee journeys here save
Edtonian Swedes. Schmidt stated Baltic refugees
immediately placed in medical quarantine coastal areas
and simultaneously each refugee was subjected political
investigation which attempts ascertain criminal elements

collaborators and informers. This category treated

along same lines as Quislingites among Norwegian Danish
refugees, Schmidt stated formerly Kummerlantesves
reception center Baltic refugees where they were sorted

out but when influx suddenly increased authorities
obliged effect police investigations everywhere in
various coastal quarantine centers. Schmidt confirmed

HANDLSTIDMING's statistical data regarding Baltic
refugees.

Communist NY DAG 24th. deplies Lindstroem's
MORGONTIDNINGEN editorial (see our 4188) stating

Lindstroen's defence against our criticisms of traffic

likely make Sweden anti-Russian intriguers center took
form violent attack against USSR and NY DAG. Lindstroom
attemp ted legitimise Quisling elements who from fear

retribution awaiting Germany's collaborators took refuge
Sweden. He defends shady traffic organized with air

substantial monetary contributions from Swedish and
American quarters, He defends Sedish authorities

involvement in matter and finds it entirely in order
that Baltic emigrants should create in Sweden large

organisation for anti-Bussian Fascist activities which

will develop into activities extremely hostile to
Swedish interests definitely compromising Swadish

foreign policy. Atlantic Charter déclares only such

territorial changes are recognized as are aproved
by peoples affected thereby. Baltie peoples in
popular plebiscite conducted under democratic form
by overwhelming majority voted join USSR as federal

republics. There is no question forcible annexation.

Balte moreover possess constitutional right secede

from USSR when they desire. Swedish Government and

others accepted plebiscities and regard Baltic republics

as portions USSR. Thus Lindstroom discounts Swedish
Government's measures in matter. Our attack concerns

organised importation war criminals and Quielingites,

We have based case on Social Minister Moeller's

declaration that war criminals and Quislingites cannot
expect Swedish asylum. We haven't opposed idea that
decent people who have fled from war and hunger should

gain Swedish asylum. We maintain it's Swedish interest
that henchmen old Fascist regimes shan't be al owed

make Sweden into intrigue center for reactionary antiRussian activities. It unserves Sweden's purpose to
assume role played by Finland Baltious Poland as cordon
sanitaire against USSR, Stockholm must not play Riga

and Helsinki's former parts as purveyors reactionary
anti-Soviet news.
MRM

JOHNSON

181
DMH-880

PLAIN

Stockholm via London
Dated October 24, 1944

Rec'd 9:28 p. m., 25th
Secretary of State
Washington

4325, Twentyfourth
Swedish and Finnish comment Finland TT 24th:

Violent fighting raged all night 22nd at Niesa north
of Kolari between Finns and Germans heavy losses both

sides. Main body of retreating Germans believed 30

kilometers north of Kolari last night.

Stockholm papers 24th report head Rabbi Professor
Ehrenpreis at Inter-Nordic Jewish Conference held
Stockholm 22nd expressed gratitude of Jewry to Finnish
Government and people for humane treatment of Jewish

people outpointing Finland only country Allied with

Nazi Germany which had resisted pressure against Jews

refusing deprive Jewish citizens of constitutional
freedom and rights.

Swedish editorial 24th deals largely with Tanner's
victory reported Legation's 4313, 23rd.
SVENSKA 24th believes that although so-called

opposition continuing its efforts to oust Tanner, it's
hardly possible turn current of labor opinion sufficiently

during month remaining before party convention meets

November 25. For time being Tanner firmly in saddle.
MORGONTIDNINGEN 24th: Despite Tanner's victory

22nd 'twould seem when party leaders have pursued

policy which has failed 'tis their duty particularly

as danger of split with Social Democratic Party has
become obvious to order new election of delegates to
party convention and ask convention for vote of confi-

dence. If this not done only proper thing for these
leaders to do is retire. Now generally recognized
that split within party inevitable and imminent.

TIDNINGEN 24th believes present opposition within
Finnish labor movement lacks leaders possessing same
qualities that made Tanner strong man of Social
Democratic Party.

182
-2- #4325, Twentyfourth, from Stockholm via London
DAGENS 24th considers whether it will be possible
convince Russians that Tanner's remaining at head of
Social Democratic Party is reliable expression of

Finnish will collaborate with Soviet Union and proof

of country's political reorientation. Soviet authorities
on several occasions have emphasized that Russia wants

Finland it can depend on; Finland which is not only
loyal today when country is helpless and at mercy of
victor but loyal also tomorrow and day after when world
situation may be different. "Present Finnish regime

does not fill measure in this respect. If 'Rightist

solution' in cabinet makeup and Tanner administration
in Social Democratic Party continue put their stamp on
Finland then remarkable steadfastness is required of

Stalin, Molotov and Zjdanov not to fall for temptation
to other".
interfere in Finland's internal affairs in one way
or
IDEM quoting HANDELSTIDNINGEN 23rd writing that

from Swedish viewpoint seems remarkable that men who

led Finland in 1941 to unfortunate adventure have felt
no need of duty to accept consequences of failure.
This attitude best illustrated by struggle over Tanner's
leadership in Social Democratic Party.

All Stockholm papers 24th: According to official

figures 30,006 people and 18,047 head of livestock
arrived Sweden from north Finland by midnight 22nd.

TIDNINGEN 24th: Ryti operated on for cancer of
stomach
not ulcer ill
asin
reported
Legation's 4313 yesterday
and
is seriously
hospital.

Finnish editorials 21st deal largely with Tass
accusation
that
Finns have
been slow in fulfilling
Article
One of
Armistice
Agreement:
UUSI SUOMI outpoints that in roadless bridgeless

territory of north ousting of Germans no easy task
but nevertheless Finnish troops have advanced far beyond Rovanions. "No doubt of fact that Finnish people
desire good relations with Soviet Union but Finnish
turns
about".
people
are rather slow when it comes to making complete
HELSINKI SANOMAT stresses difficulty for Finnish

army which held different and distant lines suddenly
to transfer north front. However after Finns commenced
operations they advanced long distances have already
taken principal German strongholds and continue against
Germans with increased speed. Editorial concludes with

reference to statement in "WAR AND WORKING CLASS" of

183

-3- #4325 Twentyfourth, from Stockholm via London

Soviet intention to respect Finnish indépendence and

states this accepted with satisfaction amongst all

classes in Finland where can be no doubt as to Finland's

desire fulfil armistice terms.

HUGVUDSTADSBLADET 22nd writing on accusations of

Soviet press says that impatience understandable but
one must also understand difficulties confronting Finns.
HELSINGINS SANOMAT 22nd writing on strife in Social
Democratic Party says can be no two opinions regarding

fact that Finland's war policy led to unfortunate results.
"One thing that must be done to ease fulfillment of difficult duties is to shift persons in responsible and
visible leading positions *** it's even been noted abroad

that a person who during most crucial periods influenced
Finnish policy and who then by force of circumstances had
to leave his position has been appointed to another high
position and by evading usual procedure (undoubtedly
Ryti) *** one of best things about democracy is that
when country's welfare demands men in responsible positions can be changed."

JOHNSON

MRM

Miss Chauncey (for the Sec'ty) Abrahamson, Akzin, Cohn, Drury, DuBois,
Friedman, Gaston, Hodel, Lesser, Marks, Mannon, McCormack, Pehle, Files.

184

CABLE TO MINISTER HARRISON AT BERN AND MCCLELLAND

Reference your 6853 to Department of October 14. Board's sole

interest is to ascertain identity of persons behind this and similar
schemes. Board has no interest in Aschner beyond its interest in
any other victim of enemy persecution. Under censorship regulation

no part of message demanding ransom has been or will be communicated

to Minor, nor will information you may uncover be made available for
private use, Board is however much interested in the ultimate un-

ravelling of the story and urgently awaits reports of all developments.

THIS IS WRB BERN CABLE NO. 237.

9:30 a.m.
October 24, 1944

185

CABLE TO MINISTER HARRISON, BERN, FOR MCCLELLAND FROM WAR REFUGEE BOARD

1. Interested groups here have requested that you inform Clement and

Krier that during the last quarter of 1944 there probably (repeat probably)
will be available $75,000 for the Belgium project, $100,000 for the Dutch
and $12,500 for the Luxembourg program. These amounts are in addition to

sums already remitted or authorized by Treasury licenses. The funds will

be available only for work in enemy-occupied territory. The foregoing
information may be of assistance to Clement and Krier in developing their

projects and if they feel that the additional amounts will be of assistance,
please advise the Board at once so that necessary arrangements for allocation of the above-mentioned funds from the National War Fund can be made.

2. You will be advised later concerning question raised in your
No. 6830 of October 13.
THIS IS WRB BERN CABLE NO. 238.

4:37 p.m.
October 24, 1944

186

PARAPHRASE OF TELEGRAM SENT
FROM:

Secretary of State, Washington

TO:

American Legation, Barn

DATED:

October 24, 1944

NUMBER: 3623
SECRET

Reference is made to Message from the Legation
dated September 14, Number 6047, and to despatch 8103,
may 6.

The following with regard to Honduran Interests in
Germany is transmitted.

In view of the scarcity of the information furnished,
the Government of Honduras is apparently unable to pass on

the claim of prifferling to be a Honduran, and the difficulty
is obviously increased by German action in the dental of Swiss

access to him. However, Prifferling is undoubtedly one of
the individuals for whome protection Category F was devised
(please see massage of September 6, Number 2310, from the

Department) and for this reason the Swiss Foreign office

should extend to him all assistance that is fitting, in
accordance therewith, to the extent that is fossible.
STEXPINYUS

(Aoting)
SWP:AHO:FAR

PARAPHRASE: DCR:LCW 10-27-44

187
GEK-271

PLATN

Bern

Dated October 24, 1944

Rec'd 9:31 a.m.

Secretary of State,
Washington.

7045, Twenty-fourth.
German press commenting on Hungarian changes

states Szalasi and Pfeilkreuz party stand without
hesitation against so-called Jewish contamination of
Hungarian race and predicts privileges maintained for
certain Hungarian Jews particularly Jews married to

Christians will shortly be abolished. Interior
Minister Vejna declared he advocates radical solution
Jewish problem and that anti-Jewish laws will be
administered with Draconian severity should necessity
so demand. Program new puppet government calls for

intensive exploitation Jewish labor but retention Jews
in Hungary.
HARRISON
RB

188

FROM:

no,

AMLEGATION, Bern

Secretary of State, Washington

DATED:

October 24, 1944

NUMBER:

7048
SECRET

Legation's 6948, October 10, 1944.

It is reported by Swiss that delivery of notification
was made to Hungarian Foreign Office the eleventh of October.

HARRISON

10-26-44
DCR.KMS

189
PARAPHRASE OF TELEGRAM RECEIVED
P

FROM:

American Legation, Bern

TO:

Secretary of State, Washington

DATED:

October 24, 1944

NUMBER:

7049

SECRET

This Legation desires to report, in connection with its message of
October 20, No. 6950, that it has received information that the new
Minister of Interior in Szalassy's Hungarian Government, Vajna, stated
on October 17 in a radio broadcast that all anti-Jewish laws would be
ruthlessly and strictly enforced, and that the Jewish problem would be

liquidated without mercy. In addition, he is reported to have said that
no protective documents of any kind and no foreign passports would be

honored and that no interference either external or internal,
would be tolerated, in particular.
An urgent request was made by the Legation on the 20th of October

of the Swiss Foreign Office asking them to endeavor to confirm the above
and to make vigorous protest with authorities of Hungary and take such

steps as conditions at present warrant to accord suitable protection to
Swiss protected nationals, if the above is found to be substantially
true.

On October 9 the Swiss Foreign Office was requested informally to

communicate to the German Legation in Bern, either officially or in an
informal manner, the contents of message of October 7 from the Depart-

ment, No. 3461. On October 20 a ranking official of Swiss Division
Foreign Interests informed Legation secretary that the chief of that

190

division had called in the German Minister in charge of German Interests
in Bern and informed him of the contents of message No. 3461 from the

Department, orally. A few days later, evidently after having been in
communication with the German Foreign Office, he stated that the German

representative made statement as follows, in translation, to the chief
of the Swiss Division of Foreign Interests which the latter has included

in an informal communication to the Legation; it follows: The possibility
of acceptance of such a communication from the Government of the United

States with a view to its transmission to the Government of Germany is

not envisaged by the German Legation in Bern. It is not necessary to
observe that protecting power can at all times, through the intermediary

of its representation at Berlin, address itself to the German Foreign
Office, to the extent that the communication in question concerns people
who are citisens of the United States. (The statement ends here)
It is the opinion of the Legation, that the purpose desired may have
been accomplished in view of its message dated October 12, No. 6818. The

Bern representative of OWI is taking the steps necessary for suitable
dissemination, nevertheless.

At present it is believed to be desirable to emphasize that the
Foreign Office of Switserland is most reluctant to have its representative in Berlin associated unofficially with messages which are in the
nature of threats to officials of Germany inasmuch as the Germans might

jeopardize seriously the position of Feldscher at the Foreign Office in
Germany and might consider these messages as an affornt by the Swiss.
The above

191

The above attitude of the Swiss may be looked upon as being applicable
both to the third paragraph of message of July 21 from the Department
No. 2490 and to message No. 3461 from the Department, which the Swiss

Foreign Office declined to pass on to Feldscher, on two occasions,

August 5 and October 11, After the initial Swiss refusal, OWI represen-

tative took steps for suitable dissemination.
HARRISON

DCR:LCW:MLM 10-27-44

192

CABLE TO STEINHARDT, ANKARA, FROM DEPARTMENT AND WAR REFUGEE BOARD.

Now that Ira Hirschmann has returned to the United States,

the WRB proposes to appoint Mr. Herbert E. Katzki as its Special
Representative in Turkey with the designation by the State Department
as Special Attache to the Embassy on war refugee matters, as provided

in the President's Order of January 28, 1944.
If the appointment meets with your approval, you should

advise Mr. Katzki that he is so designated, that he is to have

diplomatic status, and that he has all the authority, duties and
responsibilities which were given to Mr. Hirschmann in Department's

no. 120 of February 12, 1944. It is assumed that there will be no
objection on the part of the Turkish Government to this designation,
although you may in your discretion approach the Turkish authorities

informally if you consider it necessary or advisable to do so.
Please confirm action by cable.
THIS IS WRB ANKARA CABLE NO. 121.

9:30 a.m.
October 24, 1944

193

Distribution of true
reading only by special
arrangement (SHORTH)

October 24, 1944
4 p.a.
AMEMBASSY
ANKARA

CIRCULAR

The following from Department and War Refugee Board is for Steinhardt

and Katski.

Reference is made to Secretary Hull's statement of October 10. 1944.
reported in the Radio Bulletin of the same date.
For your information, Governer Theme E. Dowey. Republican candidate

for President, issued the following statement on October 19. 1944:

QUOTE Information comes to this country from unquestionably reliable cources that the Naste, trapped and knowing that they are faced with inevitable defeat. are new reserting to the known gaageter terrer device of
threatening to exterminate their very viotins - Peles, Jews and other nonGerman nationals - new imprisoned by then in their horrible concentration
campa in parts of Peland and other countries still occupied by the Nasis.

The civilized world is now in a position in unmistakable terms
to warn the Masis - military commandere, members of the German Government,

their aiders, abotters and supporters - that certain and inevitable justice

assits them for these brutal and wanten murders if their schemes should be
carried out.

I as happy to note that our State Department has issued a warning
that INNERQUOTE if these plane are carried out these guilty of such marderous

acts will be brought to justice and DAY the penalty for their heineus orines
END INNERQUOTE American public epinion will fully support the statement 10sured by our Department of State. UNQUOTE

You are requested to convey the contents of the foregoing statements

to the appropriate authorities and to use all possible means to give the statements the widest publicity through any channels that may be available to you.
STEPTINIUS

(Actine)
(GHW)

CODM ROOM: Please repeat foregoing to Steakhels for Johnson and Olson
for Herweb and Dexter
ideben
Madrid
for Hayes
for Winent and Mann.
London
WRB: MNV:KG

NOE

194
NOT TO BE RE-TRANSMITTED
COPY NO.

SECRET

OPTEL No. 346

Information received up to 10 a.m., 24th October, 1944.
1. NAVAL

One of H.M. Cruisers has been transferred to the

Royal Canadian Navy and was commissioned 21st. During minesweeping

operations a French Destroyer, after being heavily shelled by shore
batteries at San Remo on 20th, silenced 1 battery and hit an ammunition dump. A U.S. Destroyer also shelled enemy positions. Gun
boats and motor torpedo boats sank 2 and captured 3 (corrupt group)

off Zara (Adriatic) 21st. 95 prisoners taken.

2. MILITARY

WESTERN EUROPE. British armour and infantry are now

within 2 miles of Hertogenbosch on east and southeast. Further pac
gress by Canadians towards Roosendaal and in the Scheldt pocket.
Over 100 men of the First British Airborne Division have been success
fully rescued from the Arnhem area and ferried across the lower
Rhine to our lines.
RUSSIA. In Finland Russians have captured Salmijarv:
and cut the Rovaniemi-Kirkenes road. In Lithuania they have com-pletely cleared the right bank of Niemen thus freeing all Memel
Province except Memel itself and its immediate vicinity. They
have crossed the East Prussian frontier in the neighbourhood
of Goldap on an 85 mile front to a depth of 18 miles. In the
Balkans they have reached the southern bank of the river Tisa
north of Debrecen and have enlarged their bridgehead on the Western
bank of the Sava west of Belgrade. In Yugoslavia they have captured Kocane,

3. AIR OPERATIONS

WESTERN FRONT. 22nd/23rd. An 8,000 ton ship and

an escort vessel in convoy off Southern Norway set on fire by a
Halifax.

23rd. Bad weather restricted operations. 92 escorted Liberators (4 missing) dropped 564 tons on a coastel battery
Flushing and 69 aircraft carried supplies to the continent. Mos-

quitoes attacked shipping off South West Norway setting on fire a
2,000 ton ship and 2 armed trawlers.
23rd/24th. Bomber Command sent out 1188 aircraft:
Essen - 1055 (8 missing), Berlin 38, other objectives and bomber

support - 95. There was thick cloud over Essen, Aircraft bombed
on sky markers which were accurately placed. 2 Mosquitoes on late
reconnaissance report extensive fire glow on clouds.
MEDITERRANEAN. 21st/22nd. 43 medium bombers (4

missing) and 17 heavy dropped 162 tons Maribor Railway centre,
Yugoslavia.

On 22nd, operations considerably restricted by bad
weather. 99 fighters and fighter bombers (3 missing) attacked
communications Northern Italy.
4. HOME SECURITY

23rd/24th. 24 flying bombs pletted in 2 phases.