Full text of Diaries of Henry Morgenthau, Jr. : Volume 853 : Part 1

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RECISION TRADE MARK MICROSTAT MICROFILM ROLL NO

DIARY

Book 853

June 8-10, 1945

June 8. 1945
11:45 A. M.
June 5. 1945
9:28 A.M.

Hello.

HMJr:

Congressman

Governor
Szymorak:

How are you?

HMJr:

Fine.

Brent Spence: Hello, Mr. Secretary.
Well, that was a big day yesterday.
HMJr:

And how is your wifet

HMJr:

She's home and getting along - still in bed, of

HMJr:

course. but better.
Oh, that's good.

HMJr:

Ye didn't have anybody against us except the confirmed isolationists and probably were members of
the America First.

Yeah.
HMJr:

vote in the house.

HMJr:

hoped for.

I just called to congratulate you on a very splendid

Oh, it was, sir.
You certainly case through such better than I had

Yeah I think it was well - we had some good people
backing this legislation. Hope you do as well in

Wasn't that fine!

the Senate.

oh, that is most wonderful.

HMJr:
HMJr:

Teah.

In fact, I think history making. I never saw any-

thing quite like it.

HMJr:
S:

HMJr:

Well, we are all very happy here about it.
And it makes a fine impression on the public and
on the Senate, and on the other nations.

HMJr:

My heartfelt gratitude to you.
I know that, and I thank you too for the fine 00operation you gave us and it was very helpful all
around. We worked together in harmony and it just
shown what can be done. At one time not at one

time but for a long time - we couldn't get it out of
the committee.

HMJr:

Well.

But it came out with a whirl. Now if I can be of
any service to you in the Senate, I want you to call

on me.

Well. thank you so such. You've all been most
helpful.

HMJr:

Well, I certainly
I'm going to talk to Barkley about it.

And I appreciate all the help you've given us.

HMJr:

All right, Henry.

If I did, it would be a big day for me.
(Laughs)

Yeah.

Well, we want to be.

(

HMJr:

And so congratulations, and we are at your service
and hope that the thing goes through with that kind
of a vote in the Senate.

Teah.

I wish..

And you go - you are going to talk to him, of course.
S:

HMJr:

Thank you.
HMJr:

Good bye.
S:

M.S

Saymazah

Board

Federal

Reserve

System

oh, we have.

-2You have. Then I think our hearings, and I think
that 345 to 18 will help over there.

June 8, 1945
11:47 A. M.

(

A great deal.

Great deal. Well, good luck, to you Mr. Secretary,
and you call on me at any time I can be of any

HMJr:

Hello.

Con. Jesse
Wolcott:

How do you do, Mr. Secretary.

HMJr:

service.

Ever so much obliged. Thank you.

HMJr:

Thank you.

Jesse, I just want to tell you you are a patriot.
Well, thank you, very, very such, air.
And I take my hat off to you.
Well, everything turned out splendidly and I think
that 99 44/100 % of the people in the United States

HMJr:

are fairly well satisfied.
I think no, and if I may say so, I think the Republican party owes you a real debt of gratitude.

Well, the boys have been very nice and very fine.
They went along and they are very tolerant of my
lack of understanding in the whole situation.

HMJr:

(

Yesh. Well, it 18 one of the most encouraging experiences I've had since I've been in Washington.
Well, I'm glad to have you say that because I think

it should be - I really do.

HMJr:

It makes as feel that working for the Government is

worth while.

And I think that possibly you feel that it is rather
a personal victory.

HMJr:

Well, in that sense - but we're - the bigger thing
18 so important.

Well, you were very splendid all the way through. I
thoroughly enjoyed working with you.

HMJr:
W:

I'm ever so much obliged, and hope

After all the bad things I had heard about you before
that

Teah.

I had to change ay mind especially when you were such
a gracious host as you were on several occasions.

MICROSTAT

CISION

MICROFILM

ROLL NO.

June 8. 1945
11:52 A.M.

-2c
HMJr:

I always heard good things of you and I must say
you lived up to them.

Operator:

Speaker Rayburn

HMJr:

Hello.

Mr. San

(Laughs) Well, thank you very much.

Rayburn:

Teah.

HMJr:

We'll have some more parties.

HMJr:

Sant

HMJr:
W:

I hope we can some time.

HMJr:

Right.

I've just taken my hat off to you in the masterly

manner that you put through Bretton Woods.

Thank you very much, air.
R:

HMJr:

Yes, Henry.

Good bye.
HMJr:

Well, that was a pretty good vote, wasn't it?
Well. they tell as it was one of the most sigsificant votes in about 75 years on an important
piece of legislation.
That's true - and a brand new thing besides.

HMJr:

That's right.

I think you all made a wonderful fight. Let me
tell you something.

HMJr:
R:

HMJr:
R2

HMJr:

Yes, air.

014 Brent Spence is doing pretty well, isn't hot
oh, he's fine!
I'll awear, I think he has done a grand job and
I told him that yesterday. And Henry
Yes,

think to drop him a little note.
Oh, I've talked to him.

Well, that's all right.
And a letter is on the way up there to him besides.

Hurrah for you! That's just thinking ahead and
that's fine.
But he -- you know on this handling the bankers,

he was just wonderful.

HMJr:

That's right.
And even this fellow Florence that they sent no
up from Dallas, I understand, from Wright Patman

isn't sore - he's all right.

Yeah.

HMJr:

You know, Florence.

Oh, Fred Florence, sure.

HMJr:

(

HMJr:

You know they sent his up - they thought they could
get him to dent se kind of.
Xeah, yeah. Fred is a pretty good fellow.
Yeah, and at Wright Patman's suggestion, I wrote

him a little letter.

Yes, well that's fine.
But I've never seen the team work better than they
did on this.
Yeah. Well, ours - we worked a pretty good team
on Reciprocal Trade, too, didn't we?
Yeah, but I - you're darn right you did, but you
had to do it in spite of the Republicans.

That's right. Well, Henry, I appreciate your call.

We'll try to cooperate up here.

HMJr:

Well, we are dann lucky to have you as a leader.

All right, thank you, Henry.

HMJr:

Right.

Mr. Joseph O'Connell
read

June 8, 1945
12:55 P. M.

Well, what they have is this. They have
statements made - I think the O. P. A. has

HMJr:

Morgenthau.

Mr. San
Clark:

Mr. Secretary, I'm calling about the Barry T.

HMJr:

Wright case.

HMJr:

on occasions overceiling payments were made

to Wright in varying amounts, and no con-

sistent pattern at all.

HMJr:

late those violations into specific amounts

Yes.

is not quite right for presentation at the

Grand Jury.
HMJ
C:

HMJr:

Yes.

Teah.

Now that indicates that there were O.P.A.
violations, but for an income - tax case,
of course, we not only have to have the fact
of O.P.A. violations, but we have to trans-

of income.

We feel that the case at the present stage

Yeah.

They have statements made by retailers that

Yes.

I told you I would call you when we made up
our minds about it. We've been giving that
very active consideration the whole week
and yesterday we had a long conference with
Mr. Venchell and his assistants about it.

an O.P.A. case.

HMJr:

I see.

Now, I'm quit hopeful that their case can be
sentation. I doubt that it is going to be as
big a case as the O. P.A. reported, but if weif the agents can produce specific amounts of
income more than nominal, I'll be very glad to

built up and made ready for Grand Jury pre-

Bo I planned to send a letter to the Commissioner
today in which we set forth wherein we think it
should be further investigated.

go ahead and go ahead very vigorously.

I see.

Specifically, we don't have any real proof as
to the black market payments. That 10, reduced
to specific terms of income.

HMJr:

Now,you are going to write this to Nunan?

I'll send him a letter this afternoon about it.

HMJr:

I see.

HMJr:

Good. Well, thank you for keeping me posted.

We have the statements made that there were

All right. oh, that is fine,Mr. Secretary.

HMJr:

I wish they had prepared it better.

payments made to Wright, and we think that upon
further investigation those statements can be

translated into specific dollars and cente

amounts.
HMJr:
C:

Then there is the element of his possible defense that I would like to get some information
on if possible before we got ahead, and that is,
besides payments that he has alleged to have
made to the packers, or rather the packer's
but since that doubtless would be a part of his
defense when it is presented to a Grand Jury,
I would like to anticipate any possible.
Yes, I thought the O.P.A. thought they had a

case against him.

Well, that's one of those cases that I think
where little more investigation may well
break into a good case.

Yeah.

rapresentatives I'm not insisting upon that

HMJr:

Ahuh.

Thank you very such.
C:

All right, goodbye.

RPRECISION

TRADE MARK

June 8. 1945
3:03 P. M.
June 8. 1945
1:02 P. M.
e

(

Mr. J. A.
Mr. Wright
Patman:

Yes.

HMJr:

Wright?

Yes, Henry.

HMJr:

Henry Morgenthau.

HMJr:

Krug:

Hello.

HMJr:

Krugh

Yes.

HMJr:

names, one of BY men very anxiously asked as to

do that. I 41dn' want to pass the buck at

Hope you are all right.
Since you've made your speech I'm beginning to
think I'm an important guy.

Cabinet. I just want you to know there was
nothing personal about it.

Oh, I appreciate that. I'm very sympathetic
with your problem. Ve happen to have the case
difficulty on the production front.

Why you always have been a very important fellow.
That speech didn't even break the surface.

HMJr:

Well, it was mighty fine of you.

HMJr:

Well, I just didn't say enough though.

HMJr:

for it I'm afraid we will just have to weather

HMJr:

to get someone to look after it as to substance
and form. In other words pick out the parts that

Teah.

have to tell them when we are going

And we are going to fix it up in a nice white
envelope so it won't look like a cheap manila,
see?

HMJr:

Fine. Well, that's -- I appreciate it very much,

Well, it's a pleasure my dear air, you see you

HMJr:

Well, I'm for the truth.

I know you are.

HMJr:

But you must feel it on the production end just

and all the work you did on the committee, too.

accommodated me one time and I don' t forget friends.
K1

Well, I'm ready to do it again.
I never have forgotten one and I'm not going to.

HMJr:

I'm ready to do it again.

Thank you, air.

HMJr:

Ever so such obliged.
Well, you are welcome.
Goodbye.

the way we do.

Well we feel it very such. That is the most
difficult thing in the world - sustain morale during
this period of outbacks.

HMJr:
K:

HMJr:

it through and make the best of it.
I guess so. of course, you say find se some day
saying, "why don't you out back more." So I've
found myself in an untenable position, so as

gracefully as possible, I tried to retreat.
Well, I assure you on our part, ve will try to
say as little as possible, but I do think we

should go in.

HMJr:

Yeah.

We try to keep people on the job, and then day
by day we tell them about contracts being out
back, but no one seems to find any other answer

No, it was mighty fine, and I'm going to take
advantage and give you some names of the people
I'd like to have it sent to.

All right. Now, I'm having it -- I told Luxford

If ay hind eight had been better, I would have
talked to you before. But without mentioning

Well

The people just can't think that the remaining
production is very important.

HMJr:

Well, but - no secrets between us - it was Dan
Bell, and Dan was quite excited. He said, "How
many more things are going to be thrown at us?"
But just as soon as these things come, we feel
it as you must feel it.

Oh, are. We feel it definitely.
But I just wanted to let you know that I thought
you were right, and I wanted to say so.
Well, thank you very much, I appreciate your
calling, Mr. Secretary.

June 8, 1945
3:30 p.m.

MAR BONDS

TAX EVASION

Present: Mr. Little

Mr. Fussell
Mr. Lane

Lt. Levy
Mr. Gamble

Mr. Feltus

O. K.

Bye.

HMJr:

Thank you.

MR. GAMBLE: I think Coleman of the Bureau of the
Budget told Bell the Aray was going up for their new
appropriation the first of July, and he thought they

had . bad statement.

H.M.JR: I did the best I could and got slapped
down. Non, this thing here, I won't be a minute. I've
got this in ay hand. I'm going to release this letter

Monday afternoon to the press which goes to fifteen
thousand banks, asking for their cooperation in regard
to currency, and I wondered if we have some finance

people in war bonds. I'm releasing it to the press.
It's going out to the banks now. I think your people
will be interested, and I'm told that I'm scaring a
lot of this money into bonds.

MR. GAMBLE: That's the worst that's happening in
ay judgment. I mean by that
H.M.JR: You know what they're doing. They won't

go to the bank. I've got it straight, and maybe after
the bond drive is over I may do a little inquiring
about very large figures. I know one case where a
fellow bought bonds rather than go to the bank, so
somebody suggested that I should hit it. I said, *lait
a minute. I've got trouble enough. Wait until the

-2bond drive is over, and we'll inquire if there'are any
very large cash transactions, but not in the middle

of mar.

MR. GAMBLE: That's right. Be had some evidences

of that, Mr. Secretary.

H.M.. But Hap Young said the first day be took

in twenty million cash, so I think this -- this is
what I'd like -- I would like this to go out.

MR. GAMBLE: This doesn't impose any new regulations?

H.M.JR: No. This RES announced. This is an
explanation to the banks.
MR. GAMBLE: of what you've asked then already
to do?

H.M.JR: Are you in 8 hurry?
MR. GAMBLE: No sir.

H.M.JR: Just let me clear up this question here.
It's on . talk on the radio, you see, and I wanted to

do all at one time. Further, I want to say you're

welcome. Incidentally, those three Veterans organizations are coming in tonorrow at eleven o' clock.
MR. FELTUS: Do you want a memo to send to the

President?

H.M.JR: He saw then at twelve-thirty today. I
had three minutes notice. They called me at twelve
twenty-five. "We're terrible sorry me forgot to tell

you.

MR. FELTUS: I thought they were coning in tomorrow.

E.M.JR: They were very nice. They forgot. "It

H.M.JR: I's giving it out Monday afternoon to
the press. The thing they've kicked about we've
corrected, and we explained it, if you read the thing.
MR. GAMBLE: Fine.

was entirely my fault, he said. "I forgot about it."

He mean't like Early, very apologetic, and this one fellow
started to tell ae everything you told him, and I didn't
know a dann thing about it. You won't be here tomorrow,
no if you'l leave me a memo -- will you please?
MR. FELTUS: I didn't tell him much, but do you

H.M.JR: It's been done very carefully, and it's
an explanation, and I think a good one, and goes to the
banks. I think it will make the banks feel happy. I

want a nemo on what I told him?

thought your State Chairmen plus your people who con-

I didn't argue with him. (Laughter) Now, let's do
the first thing first, and the other thing will take

H.M.JR: Yes. He seemed to think you were good.

tact banks ought to know about this. It's one of the
background stories, the third one I've given. Here's
something I'm doing that effects the banks, but it's

more time, but if it's radio, I wanted Dave to know

MR. GAMBLE: You don't care if we have that just so
it's in their hands Monday.

I think Fussell talked to him about it. Fussell got

all right.

H.M.JR: No, because it will be in the hands of the
banks by then. The worst public relations is to have
a man read it in a paper and get the letter about it
the next day.

MR. GAMBLE: We'll have this in everybody's hands
by Monday.

about it.

MR. FELTUS: I think he already knows about it.

. message from Dan Bell you wanted to go on the air
Sunday.

H.M.JR: I'm going.

-4MR. FELTUS: We've all been somewhat concerned, or I have

at least-I'd better speak for myself==because it's
awfully short notice to get good time, and

MR. GAMBLE: I think Dave has 8 possible solution

it. We'll know in a half hour.

H.M.JR: Sunday night, where?

LT. LEVY: Where? Right here.
H.M.JR: Did any of you hear the March of Time*

last night? They did a beautiful job on this.
MR. FELTUS: I heard about it. I didn't hear it.
H.M.J You didn't hear it either?
MR. FUSSELL: I read the script on it. I didn't

hear it.

KR. GAMBLE: I didn't hear it.

H.M.JR: Let me get the advice of everyone. If
we're going to do it -- we went off half-cocked here
and gave this very difficult order to the banks with
no preparation for the banks. Now we' re trying to
catch up, but I don't know, I don't think it RES my
fault, but the group that was doing it is publicityminded. Bell and Joe 0 Connell just rushed me through
on this, got as to sign it when I was going out of the
room. Bingo, it goes to the banks with no preparation. We're

I'm sending fifteen thousand banks a letter.
trying to catch up, and I wondered whether I shouldn't
on very much the script of that letter and talk
go to the banks. That one is pretty much the script.

MR. GAMBLE: I haven't read the letter, but ay
notion of what you ought to do, and Dave has asked for
a five minute spot on lie the People"- it would take
between four and five minutes -is not to do "We the
People show, but have "lie the People"have you tell the
on their program Sunday night, and, Mr. Secretary, prostory think it would be an ideal kind of audience and

I gran to do it. I'd touch on the gravity of these

violations, and I'd even tell generally about a case or

two. I'd tell that your responsibilit as Secretary of the

Treasury, your job 1 to do what you believe one hundred
and thirty-five million Americans wanted you to do. I
think this Gallup Poll supports that kind of statement.
It says seventy-seven percent of the people do not went
a tax reduction until after V-J Day, seventy-seven percent of the people in the paper this morning. It's wonderful:

H.M.JR: See if it's in these press releases.
MR. GAMBLE: It supports everything you've done on
this operation 88 well as being a survey.

H.M.JR: The thing I really wanted to talk on was
this. If I WBLB going to do this thing, . number of the
banks will heed us, you see? This is the story, and
like always, Chester Davis was among the first, the way

he always is, to help us, and me have had some of our
very best cases and convictions through the banks.

There is the one, Fus, of the fellow out of Cincinnati,
that three million dollar case.
MR. FUSSELL: Who?

H.M.JR: The currency case.
MR. FUSSELL: The Gould case.

H.M.JR: We got it through the banks, and what
happened was some of the banks said, "We have this rela.
tionship between our depositors and ourselves that we

can't do it,' and as I said at my press conference, "Let
Washington order it, and if they don't like it, they' 11
say, Washington told us to do it, so if it's going to
be me, I'm going to do it, see, because some of the banks
said they wouldn't do this until they were told the same

thing. It's the doctor-patient, lawyer-client relationship, and all the rest of that. So I did it, but without

any preparation. Now, I've had two or three telegrams
from the twelve Federal Reserve Bank Presidents, and
with the exception of that Indiana case -- and
somebody told me he's 8 chronic kicker, anyway

there's been nothing but this, I think. If I

was going to do it, then I could say that we' re
asking a lot of people to help, and naturally one
of the places that can help are the banks, and I've

MICROSTAT

TRADE MARK

MICOFM

ROLL NO.

€

MR. LITTLE: I think you ought to have a new case.

asked the banks to do it, and the banks are helping,
and I want to explain to the depositors, I mean, and the
banks that this is a protection to the legitimate man
of business. The Manager of the New York Times was in
here yesterday, Arthur Sulzberger. They sent him here
at my request, and when I explained it's the cheats that
drive the legitimate fellows out of business, and we're
protecting ninety-nine percent of the people, in order
to do that

MR. LANE: I think you ought to bring in a case.
H.M.JR: I had an unusual press conference.
MR. GAMBLE: This Indianapolis and Chicago -- it

WBS a swell case. That's 8 perfect case to tell the
public, because the average citizen doesn't have much
use for that.

MR. GAMBLE: You'll gain . billion dollars in taxes

H.M.JRI I had lunch with Chester Bowles, and,

gentlemen, I mean, the stuff he mants! The first of July,

too.

he suggested that he and I and the Attorney General
should have a joint press conference. I told Chester,

H.M.JR: We'll gain another billion from revenue, and
everybody, ninety-nine percent of the people who are honest
should say "Amen to this sort of thing, and the only
fellows that are going to kick are the people that have

"I'm riding high. I've ridden low. You' riding low.

Let's get together, because I believe in what you' re doing.
New, we've got to keep you going.

something to hide.

MR. FELTUS: That's good and --

MR. GAMBLE: Or where the bankers put some pressure

H.M.JR We'll pool our interest.

on it as happened in Pullism's instance. The Herald
Tribune had a swell editorial yesterday on it, complimenting you for doing the job.

)

RECISION

H.M.JR: I didn't see it. will you make a note of
that, Fus?

MR. GAMBLE: Yesterday morning's Herald Tribune.

H.M.JR: Last night the "March of Time" was wonderful!
They had a man having me go before the Appropriation's
Committee and asking for it, and they dranatized one
case and ended up again with my voice. 1 got the money.
What do you think, Dave?

MR. GAMBLE: Watch him for a while, though, between

now and the next fifteen days. He's riding awfully low,

Vr. Secretary.

H.M.JR: I know, but it's on the inflation front.
VR. GAMBLE: He may not be the answer to it.

Bowles is like a good many other fellows. I'm sympathetic
to him.

H.M.JR: OPA is the answer to it.

LT. LEVY: I think it would be very good. I think

MR. GAMBLE: T agree, but Bowles may be the whipping
post on it, and OPA may have to have another man to save

MR. GAMBLE: I'd do it 8.5 though you had been invited

Sunday night.

Mr. Gamble's suggestion 8.8 to the shape it will take
would be fine.

explain it. I wouldn't take & bad spot on the air
to do it. If "We the People" would do It, you've got the
right platform to do the sort of thing you ment to do.
to

H.M.JR: I can have . brand new case we haven't

talked about and say, "This is the kind of thing the banks
help us on, and have a brand new case.

Itself.

H.M.JH But if you all agree, I'll be glad to go on

KH. GAMBLE: If we get that kind of time, I would
recommend it. If not, I'd try to get the same kind of
time for the following Sunday night and do it.

-8MR. FUSSELL: That's dependent upon getting the spot.

H.M.JR: The following Sunday I'll be all mixed
up with war bonds.

MR. GAMBLE: We'll know in a half hour.
H.M.JR: Does anybody disagree about going on Sunday
night?

MR. FUSSELL: Not if you can get a good program,

but not if you pick a poor spot.
MR. GAMBLE: It's not as much the poor spot as the

nature of the program. That's the kind of program
people expect to hear that type of story.
MR. LANE: It fits right in.

MR. GAMBLE: I'd do it entirely on the basis of
getting the spot. Dave had a good talk a half hour ago,
and they were going to let us know. They'd been too far
in their script Sunday night.
LT. LEVY: That's their problem.
MR. LANE: Every show by now has been built.

MR. FELTUS: Is there anything Monday in case that
falls through, anything good on Monday night?

H.M.JR: Coca Cola will give ae five minutes.
KR. GAMBLE: It's not a question of getting time.
LT. LEVY: We can get the time.

H.M. JR: Say I bring in war bonds and lay it on. I'm
confident they're going to help, not help me out, but help
out the tax payers.
MR. GANALE: That's right.

H.M.JR: Al Steele will give you time.
MR. FELTUS: You can get sustaining time anytime
you want. It won't do you any good.

H.M.JR: I read somewhere today that fifty million
tax payers weren't going to let the people get away with

this. If we're going to do it, Dave, it's between you
and Fussell. Fussell can pump you for all this stuff.
He oozes it out of his ears, the liquor or black market
stuff.

H.M.JR: Who do I look to for time?
MR. GAMBER Dave and Ton.

H.M.JR: So much for that. Now, do you want to go on
to the next thing?

MR. FELTUS: I don't see any liquor coming out of
his ears.
H.M.JR: Can I leave it to Levy and you?

MR. FELIUS: You don't need me, do you?

H.M.JR: You might be interested to see how I work.
Datching a train?

MR. FUSSELL: Yes.

H.M.JR: Who else? Anybody else?

MR. GAMBLE: No. There doesn't need to be anybody
else.

H.M.JR: Between you, you'll write the script for
me.

MR. FELTUS: Not until five o'clock. I've got plenty

of time.

H.M.JR: You can stay or not. Do you wan t to see
some good fellows work?
work.

MR. FELTUS: As you wish. I like to see professionals

23
- 11 -

22
10

MR. GAMBLE: The show is shaping up all right for
the seventeenth in New York. Last night SAN Rose Schneider,
and she said she'd like to have the question brought up

to you as to whether or not it would be proper, despite
the fact he has not yet been approved, to have come
along an your guest the new appointee for Secretary of
Labor, Schwellenbach.

H.K.JR: I'll tell you why I don't want to do it.
I don't want to hurt Frances Perkins' feelings. I just

can't do it, if you don! mind. I couldn't do it,

MR. GAMBLE: A perfect setting.

H.M.JR: Certainly. She hasn't been on. Her voice
would be a fresh voice, and General Roosevelt has 8

magnificent record. I didn't went to ask her. I'm so

scared of you people. (Laughter)
MR. GAMBLE: Yes. We have such strained relations.
H.M.JR: What do you think?

LT. LEVY: Excellent. Fine. The sooner we know,
the better.

H.M.JR: I'll ask her. What time is it?

especially now.

MH. GAMBLE: Barthwill have your speech finished
this coming Monday.

H.M.JR: I couldn't do it. It would hurt Frances
Perkins too much.

MR. GAMBLE: Dave has about half of the Pawling
show completed, and me can give you that the first of the
week.

H.M.JR: On that day, Mrs. Roosevelt said she'd
come over to hear me, plus General Eiliot Roosevelt.

Don't you think it would be nice to put the two of them

LT. LEVY: The program is on Wednesday, from

ten-thirty to eleven.
H.M.JR: Ten-thirty to eleven? Incidentally, he's
very good on the radio.
MR. LITTLE: He's good for us. I've heard him speak.
H.M.JR: He's excellent on the radio -- he used to
be on for comercials -- being Air Corps and all that.
What?

LT. LEVY: Konderful.

on?

(Discussion off the record)

LT. LEVY: Wonderful, if they'd like to do it.
H.K.JR Well, Mrs. Roosevelt has gone through more
hospitals,an more people are devoted to her than anybody
else, and General Roosevelt has a wonderful record in the
Air Corps.
LT. LEVY: Would they go on?

H.M.JR: Oh, sure. I'll ask her tonight at supper.
She's at our house.
LT. LEVY: As soon as you know, we'll make the
necessary plans.

H.M.JR I mean, they're all Duchess County, and,I'd
like to hear from one of my neighbors, Mrs. Franklin
Roosevelt."

MR. GAMBLE: Krs. Roosevelt OF General Roosevelt.

LT. LEVY: One or both. Excellent.

H.J.JJ: I'll ask her today. I'll let you know in
the morning.

LT. LEVY: That's very good.
MR. GAMBLE: There are two other matters.

H.M.JR: He's going to live up there too. He's
moving there to live, so they' re both my neighbors. If I'm
introducing them--if I'm master of ceremonies--I say, My
neighbor, Mrs. Roosevelt and my neighbor, General Roosevelt,*

25
13

but not, "My neighbor, Tom Dewey."

MR. GAMBLE: I was on a program with Tom last night.

H.M.JR: Did he push you off the air?
MR. GAMBER No, no pushed him off.

H.M. JR: So, that's that, Sunday in the Park, or
"Up in Central Park it is, but not on the carousel, huh?
And the Labor thing, and wasn't there a third one?
MR. GAMBLE: Yes. We left it that we'd see how it
worked out with the Marine Corps, whether we'd go any

further with it. The story on it is that it would

necessitate an invitation and a designation from Forrestal, this being a Marine case, for you to do it, and
I thought that was reason enough to drop it.
H.M.JR: It's dropped.
MR. GAMBLE: One other matter, Mr. Secretary.

Some time ago I asked you about cutting you in for a
minute or two during the day of June 15 on this Rochester
American-Canadian day, and you decided we could do it

but it was then abandoned. This morning we got a call from
the Canadian Bar Finance people, saying that they'd like
to do it, and would we ask you again. They'll have the
Canadian Finance Minister, and we'd arrange to have
the microphone brought right to your desk and have you
talk 8 minute or . minute and a half.
H.M.JR: Yes.

MR. FELTUS: You will not have left?

H.M.JR: I'll be up at Poughkeepsie, either at the
house, or I'll go up to the station.
MR. GAMBLE: All right, sir. The station would be
easier for that spot unless you particularly wanted UE
to put a line in. We get better broadcasting without
the line. That line bean't worked too well a couple of
times.

H.M.JR: Didn't it work?

MR. GAMBLE: It sounded as though you were speaking
in hall.
LT. LEVY: What network did we take?

MR. CAMPLE: I can't answer that, Dave.
H.M.JR: I'll be up at Poughkeepsie anyway.

That time of day?

MR. GAMBLE: They didn't give me any day.

H.M.JR So long as it doesn't interfere with my
nap, horseback riding or my meals. Must I do that?
MR. GAMBLE: I think it's . nice gesture, Mr.
Secretary, and so long 88 the Canadian Finance Hinister

wants to do it, I think you should.
H.M.JR Well, what else?

MR. GAMBLE: That's everything we have.

H.M.JR: I was tickled to death with that statement
yesterday on eight billion, one hundred and eighty-eight
million.
VR. GAMBLE: It got lost in a couple of papers
because of your black market story. (Laughter)

H.M.JR: I don't like the accent. Mr. Gamble has
insinuated several times I'm giving too much time to
black market.

MR. GAMBLE: I'll tell you why that's a good story.
That's the kind that motivates editorial comment.
H.M.JR: Nobody wants me in EAT bonds. I've got to do
something in the papers. Nobody wants me, so I've got
to find some activity.
NR. GAMBLE: We're day in and day out --

H.M.JR: Nobody wants me so -- the black market
seens to go, so there we go. But maybe you'll get more
in the field on that. That's something everybody can

put in & book.
MR. GAMBLE: Papers like the Times Herald, though,

normally don't run anything like that on the front page.
H.M.JR: Who brought that in? You did?
MR. LITTLE: Yes.

H.M. JR: I was surprised. The Times Herald has
done several things recently. They wrote a very sweet
article on Mrs. Morgenthau which surprised me.
LT. LEVY: Very nice.

H.M. JR: A very nice article about her in the

15MR. GAMBLE: That's everything we have.
H.M.JR: Anything on your mind?
MR. GAMBLE: No.

H.M.JH: Are you all right now?
MR. FELTUS: Yes.

H.M.JR: Did you get off your lists?
MR. FELTUS: I'll have them ready. You can't use

them until the stuff is printed. It won't be printed
until
the middle of next week. We're still working on
the list.

Society column.

LT. LEVY: Yes. I SAT it.
MR. LANE: Maybe their conscience is starting to
bother them.
MR. GAMBLE: They have some good people, mostly

behind the door. They caught Cissy out of town.
MR. LITTLE: The same with the Times Herald. They
have no policy, just from day to day they change the
trend and make the policy.
H.M.JR. That else?
MR. GAMBLE: That's all.

H.M. JR: I'm very pleased. I noticed two, eight,
eleven. Am I right?
MR. GAMBLE: That's right.

H.M.JR: Two, eight, eleven.
MR. GAMBLE: You ought to know we'll get a minimum

of seven and one half billion dollars.
H.M.JR: On that day I'll not talk about black
market.

H.M.JR: Anybody have anything else?

RECISION

MICROSTAT

TRADE MARK

MICROFILM

ROLL NO

29
June 8, 1945
4:45 p.m.

(Mr. Feltus leaves the conference.)
EXPORT-IMPORT BANK
BRETTON WOODS

Present: Mr. D. W. Bell
Mr. O'Connell
Mr. White
Mr. Coe

Mr. Bernstein
Mr. Feltus
Mr. Luxford

Mr. Pehle

H.M.JR: You sound like a lot of wolves. I thought
you went home.

MR. FELTUS: I thought you wanted me here.

H.M.JR: Don't miss your train.
MR. FELTUS: I better run then.

H.M.JR: I didn't ask you to cone.
MR. FELTUS: I got a message to come.
MR. WHITE: They asked for the Bretton Woods people.

H.M. JR: What time does your train go?
MR. FELTUS: Five o'clock.
MR. WHITE: He can make it.

MR. FELTUS: I can make it. If I miss the five
o'cleck train, I can get the six o'cleck train.
H.M.JR: Have you a seat?

MR. FELTUS: I'll get it on the train.
0

MR. WHITE: You'll make the five o'clock train If you
stop talking and get going.

H.M.JR: What is it all about?
MR. COE: I think it was an inquiry from the Budget
Bureau about the Export-Import Bank which I mentioned to
Harry, he thought the Bretton Woods group ought to be
brought together with you on it.
H.M.JR: Oh, how do you do2 Glad to meet you.
MR. COE: The Budget Bureau came over yeaterday

and said (a) they were preparing on the thought that
Crowley was preparing to start his Export-Import Bank
expension next week. So that's the first problem,I
think, that should be focused on.
MR. O*CONNELL: In the House?

Mr. COE: I think so, yes. The second problem is
that FEA and State, as they explained it to me, with
the Budget concurring,are not prepared to recommend an

increase in lending power for the Export-Import Bank of

two point eight billion instead of one point five billion
with which you had agreed.

H.M.JR: Can't you make it three point two?
MR. COE: That would make it three and one-half

billion dollars.
MR. BELL: How much?

MR. COE: Three and one-half billion. They have
seven hundred million.

H.M.JR: I warn you I am not going to be too serious
during my COCA cola hour.

MR. COE: They also told me they thought Crowley
two
was prepared to go along with this two point eight
expansion,bu had & little feeling that maybe
point three was enough.

-3MR. BELL: A three billion dollar bank.

MR. WHITE: You have asked for an opinion. One is to

MR. COE: Maybe that instead of what had been agreed

upon, a two billion two bank. As far as the reason for
upping It, I think what mainly lies behind it is the
feeling of State that there are an awful lot of things
to be taken care of in the next period, and in particular
they now have the additional factor-H.M.JR: Say, Frank. Cut out the preamble. What

matter before Bretton Woods, and I thought our understanding with wrowley and with State was it should not
MR. LUXFORD: That's cleared.

MR. WHITE: That's cleared irrespective of the amount.
MR. COE: It wasn't cleared with Crowley.

MR. COE: A decision as to whether--

MR. WHITE: It was cleared at the time of discussion.
MR. O'CONNELL: It was cleared that it would be
behind Bretton Woods. That doesn't mean it was cleared

H.M.JR: What do you want?

MR. COE: what do I want on this thing? I think I
would prefer to hold to the original one point five
billion expansion.

with Crowley that he won't be able to start it in the
House until Bretton Woods was through.

MR. WHITE: What does behind mean?

(Discussion off the record.)

MR. O'CONNELL: It wouldn't be considered by either

MR. COE: There are two factors. I think that the
bigger this thing is made, if it gets up to Congress at

Committee.

MR. WHITE: What was the reason?

the same time as Bretton Woods, the more questions will
be raised as to whether the whole story has been told
to the Congress and the ballyhoo about Bretton Foods.

MR. O'CONNELL: To get Bretton Woods ahead.

MR. WHITE: Get Bretton Woods over first.

VR. BELL: The bigger question, it seema to as is

whether you ought to let his go up at all until Bretton
I

I would prefer to drop back to the lower figure, but
wouldn't fuss much about it. But I would say that
what you said at your conference that it shouldn't be
put in the hopper at all until Bretton Woods is through
Congress--

MR. LUXFORD: Why don't we take longer? If you go

until they hold off--

decide on hether or not they outht to present this
be done.

do you want?

Woods is through. Some of my boys asked se, and I said

-4-

MR. BELL: It might be argued both ways. You could
say behind and, well,it could be introduced now in the
House and they could have hearings in the Committee.
MR. WHITE: Well, but our reasoning at that time
was that it could only muddy the waters to have the
subject of the Export-Import Bank raised at the same
time, that there was nothing to be gained. They did not
need the money urgently and there was no question of
their getting it,and it was morely a chance of making

it more difficult for us. That Issue ought to be
settled quite independently of the amount.

32
-5-

In the amount my OWN felling is we ought to stick

to the original amount because a billion and a half is
quite adequate for small loans they will have to make.
They will make 8 lot of small loans and it isn't adequate
if there are going to be any big loans made to England
or Aussia or France. My feeling is that that ought to
be a Congressional matter and not a question for decision

-60

MR. WHITE: Mr. Crowley and yourself and I were here.
I don't know whether anybody else was here, and he raised
two questions, the question of the amount, and he raised
the question of the timing.

the wasn't in

MR. O'CONNELL: No. I WILD here, too, and it seems
the
of timing
meeting
sufficiently
the Secretary cleared
thematter
meeting,
because
after
the

by the Export-Import Bank.

asked me to call Leo Crowley to be sure it was understood
that Bretton Woods took priority, and I called him and he
said of course he understood Bretton Woods went into the

MR. COE: Congress isn't going to let them make
great big loans on the discretion of the Bank.

was ever an understanding with Crowley that nothing would
be done About the Export-Import Bank until--

H.M.JR: May I ask a question?

MR. WHITE: All right.
H.M.JR: I was under the impression-maybe it is
wrong-that Jesse Wolcott had very strong feelings on
this.

MR. WHITE: I am confused between his conversation

here and the conversation I had prior to that with him alone
at the Jackson Day dinner.

H.M.JR: Something tells me you fellows have not
had & preliminary meeting.

MR. WHITE: Well, whoever told you that knew all

MR. WHITE: My OWE view is If they do well with a
billion and a half, Congress will let them have some more.
They never have turned down . good request that the
foreign policy of the State Department and the Treasury
wanted to make on the grounds they haven't got the
money, and they are not likely to do so, either.

hopper first. That was why I said I didn't think there

the facts. We have not had & preliminary meeting. had

talked it over with Frank and we had agreed. 1
assumed there was no disagreement.

H.M.JR: I think it would be helpful if you had
had & preliminary meeting.

(Mr. Pehle enters the conference.)
MR. WHITE: He had with respect to the Administration.
He wants to make it & separate agency and he wants to also
to have its loans coordinated. well, he accomplished the
latter. He wants now to make it a separate agency.
MR. O'CONNELL: He has no objection to a billion and
a half, assuming he has his way on & separate agency.
MR. COE: The American Bankers recommended a billion

and half.

H.M.JR: well, there is something in my mind. Were we
agreed as to when this thing was going to go up. Does
somebody know?

MR. LUXFORD: Mr. Secretary, if I could say something--

it doesn't seem to me it is too important.
H.M.JR: You will have to raise your hand.
MR. LUXFORD: All right, I will raise my hand. It
seem important whether this was funny or not time. before-

doesn't We know & lot more now than at the earlier
hand. is your considered judgment as to whether or not
What you want to throw that thing in the hopper now no matter
what the figures.

PRECISION

TRADE MARK

MICROSTAT

SO. U.S.PAT.OFF

MICROFILM

ROLL NO.

34
C

H.M.JR: You think we can think better if we are
fuszy.

MR. LUXFORD: That isn't the important issue,
whether there was an understanding at that time or not.

MR. PEHLE: Not as a member of the Committee.
Remember, we had one meeting.

MR. O'CONNELL: Just one.

H.M.JR: Over there, and what did we bring up at
that meeting? Wasn't it this thing?

MR. O'CONNELL: I agree. I wanted to point out
I do not think,from any conversation I had heard,
Crowley had a distinct understanding.

approved the whole list of projects.

MR. WHITE: You may be right, but I had a conversation with him beforehand.

about?

H.M.JR: I love to flash omething on this brain
trust. It happens that I and everybody else in this

of everything else, but my only point is what does that

room has forgotten a Committee set up on legislation

of which Mr. Stettinius is Chairman. just sent
for it, and this very kind of thing would be a very

proper thing to bring before this Committee if we
knew we had the votes before we convened it.
(Laughter)

MR. COE: I could tell you that you are outvoted

on that Committee.

H.M.JR: Do you know what Dean stands for?

MR. COE: He stands for bigger expansion.

MR. WHITE: No, it's the timing of the legislation.
They had nothing to do with that.
H.M.JR: Timing?

MR. BELL: He's for bigger and better loans.
MR. PEHLE: Me might be all right because he submitted

to Bretton Woods.

H.M.JR: The timing. Let me call Dean up.
MR. LUXFORD: On the timing, yes.

MR. O'CONNELL: We brought it up and the Committee

H.M.JR: Wasn't it this particular thing we talked
MR. O'CONNELL: That Bretton Woods would come ahead

mean?

MR. WHITE: What do you mean about coming ahead?

MR. BELL: That's where you're fuzzy.
H.M.JR: The one Mr. Grew didn't want to come to
my office.

MR. COE: I wasn't here then.
MR. WHITE: I was here.
H.M.JR: What happened?

MR. O'CONNELL: Just what I indicated. There were
eight or nine bits of legislation Dean Acheson had, including
the St. Lawrence waterways and the food. And the only
thing I know of that was decided was that Bretton Woods
came first.

MR. LUXFORD: Mr. Secretary, while Wolcott was giving
his speech on Bretton Woods, he was going this way.
(Indicating)

June 8, 1945
4:54 P. M.

36
0

HMJr:

We are accepting them and giving them.

Mr. Dean

H.M.JR: Was he? On purpose?
MR. LUXFORD: When the vote was going on he was

Acheson:

Well, that was wonderful.

HMJr:

Wasn't bad, eh?

going this way. (Indicating)

hands with people.

H.M.JR: He was?

MR. PEHLE: I don't know how that's going to appear
in the minutes, Mr. Secretary.
H.M.JR: This fellow on OPA gave me some advice on

to handle him. He never sat down and talked with
Jesse Wolcott. So, I told him of Jesse and to come around
to his house around five o' 'clock at night and have plenty
of bourbon. He never sat down and talked to him.

HMJr:

Wonderful!

I called on almost every member of the committee.

HMJr:

Wonderful. That is very nice.

how

HMJr:

MR. WHITE: Jesse has the reputation of having the

MR. BELL: Everybody in the House, certainly on the
Banking and Currency Committee--

(

HNJr:

Well . we ought to have another party soon.

oh, they'd love it.
Well, I appreciate all you did, Dean, more than
I can say.

HMJr:

Well, I'll keep after it, Henry.
Well, now - what I'm calling up about is this.

We're sitting around here talking about the
Impor t-export or rather the Export-import bank,
as to when it comes up, see?

H.M.JR: He is establishing & Foreign Economic
Policy Board.
(The Secretary holds a telephone conversation with
Dean Acheson, as follows:)

They were in great humor. They were so pleased

with themselves.

same view.

MR. 0 CONNELL: He did, last ywar.

I went around yesterday - spent all day yesterday
afternoon walking around those halls shaking

HMJr:

Yeah.

The Bureau of the Budgets have some communication

with our people. Now I'm not arguing how big it
is, but I have grave doubte as to whether it would
be wise to have that before Congress the same time

with Bretton Woods and Lend-Lease, and whether

the Export -isport legislation shouldn' be held
back until at least we get Bretton Woods out of
the way. Now with all these figures, they are not
going to add then all up, you see?

Yes.

HMJr:

And I wanted your advice.

-338

Yes, I think we will. And I'm not quite

sure where everybody stands over here, but

I'll get hold of will.

Well, now, I was going to talk with Clayton
about that.

HMJr:

feah.

He went off to Chicago and will be back tomorrow.

HMJr:

Yeah.

Suppose I get hold of him. I have the same fears
See what I's afraid of - they '11 take whatever

Thank you very much.

Henry, there is one other thing.

HMJr:

don't see why export-import couldn't vait a little
while until we got our thing through the Senate.
And I think it is going to hurt Lend-Lease too.
I don't see the rush.

HMJr:

to have so ne money.

(

HMJr:

On the export-import?

Yeah.
-

HMJr:
A:

Well, I just didn't know that was in the wind.

Well, I don't know that it is, but it can't be
in the wind until they get some money somewhere.

HMJr:

Well,

HMJr:

Anyway, I do not think it ought to be introduced
until we have made a very careful canvass.
Will you? Then another --if we have a nee..ng

Legislative committee?

HMJr:

Yeah. But I didn't want to call them together

Yes.

HMJr:

See? But I think we will have trouble with Crowley.

Please.

And Biffle said he would think that over and give
us some advice on it. Joe and I both agreed this
morning that as a debater that Senator Wagner is
not going to be terribly wise about this.

of minds between State and Treasury then we can

call a meeting of that

Yes,

So the leadership is in good shape on that.
Well, there 1e one problem.

HMJr:
A:

Yes.

And they are all in a state of enthusiasm now
to keep these hearing fairly short and then
get this thing through quickly while we have
got all the enthusiasm, and this big vote and
the popular interest in it.

Yes.

Barkley and Mr. Hill.

Well, I think there is a great deal in that. There
is some rush because in order to get on with any
talks with the Russians or anyone else, you've got

I said if you please.
I was talking to Joe O'Connell this morning.
And I reported to his that I had talked with

If you please.
What?

it is, six billion for Lend-lease and nine billion
for Bretton Woods. three billion for whatever it is,
export- and they'1 total them all up. And

Well, we'll sit tight until we hear from you.
All right, fine.

HMJr:

that you have.

HMJr:

HMJr:
A:

No.

Because he doesn't know very much, and he ought

to have a senior Democrat not a freshman - but
somebody who will go to work.

until I knew where we stood.

HMJr:

Teah.

PRECISION

TRADE

MARK

MICROSTATA

MICROFILM

ROLL NO.

41
10

He said he would make a recommendation on Monday

and I could talk it over with you, and then we
could get this fellow and educate him so he can
do the work on the floor. It will have to be
worked out with Barkley and Wagner.

HMJr:

Well I talked to President Truman about that
and he went over the list of the committee
himself with no and he was very such worried.
He thought the best san would be the Senator
from Maryland.

Radoliffet

HMJr:

Radeliffe. If we could get him enthused.

HMJr:
A

HMJr:
A:

HMJr:

Well, I think we might.
And he said that was his thought.
Yes. Well, that is a good suggestion.
And let's see what Biffle comes through with.
"11 right, Henry.
But I agree that Wagner needs some bolatering
up.

HMJr:
A:

HMJr:
A1

MR. WHITE: I have already gotten in touch with
Senator Madeliffe. He is going to give me a ring
either today or tomorrow to meet me Sunday or Monday.

He wants to go over the thing.

MR. O'CONNELL: The Committee is awfully weak on
the Democratic side, as we all know.

H.M.JR: Would you people be agreeable? would
like one or two of you, maybe Monday afternoon to come
to the house and sort of drill me and go over the
statement for Bretton Woods and then have a little
bit of questions and answers.
MR. WHITE: Yes. That's a good refresher course.

H.M.JR: Oh, I an all full Monday. Wait & minute.
No, I am not. I can do it Monday. I'll do it Monday

morning at nine-thirty.

MR. WHITE: I have made an appointment with Senator
Downing for Monday morning at nine-thirty.

H.M.JR: That's all right if I can have Eddie

Yes,he does.

Bernstein and Luxford, the two of them.

Well, I'll be hearing from you.
^11 right, fine.

MR. BERNSTEIN: Do you want to go over the draft
we have and statement before Monday or wait until

Thank you 80 much.

Yes, sir.

Monday morning?

H.M.JR: I think we'll do it altogether. I'll save

all of Monday morning. I won't make any other appointments.
Nobody has to work on Sunday, but from nine-thirty to

twelve on Monday I'll just save. This is, I think, the
intelligent way of doing it, and you can see Dean was
bothered. I thought throwing in and adding up the
three things was a good touch.

MR. LUXFORD: Taft is going to start adding them
if we don't.

-2-

June 8. 1945
5:06 P. M.

HMJr:

Senator

Hello,

Charles Tobey talking.

HMJr:

How do you do.

to you on the
Just called up to say
progress made so far - that House vote was a
pleasing thing, wasn't 1 77

HMJr:

Wonderful.

And also I am pleased to think that a number of
Republicans saw the light enough to go along.

HMJr:

HMJr

but the
dietment,
doesn'tassume.
I but
they are goingparty
to seehimself
you next Tuesday,

Right. Well, I told Jesse Wolcott, I said if
you don't mind ay saying so, I think you have
done the Republican Party a great service.

HMJr:

HMJr:
T:

HMJr:

I'm counting on you.

All the help I can give you.

HMJr:

Thank you.

Any suggestions please bring them along and

I'll embody them there.

HMJr:
T:

In New York.

Yes.

I wrote his back today a letter
and told his I was glad to see that he had had
a change of heart and had seen the light.

Thank you.

Any question you want to ask or any particular
thing brought out, if I have the lead I'11 come

across.
HMJr:

You know it was Tom Dewey that said to me at

the Statler Hotel some three months ago at a
reception that he was against it - that we were
giving away a lot of money, etc.

Well, Senator Taft can start on me Tuesday.

Yes. Well, we'11 aot as a buffer state.

Yes.

course.

That will be a simple matter. Charlie Taft's
attitude is such a contrast it 1s sort of a
delight, isn't 117

that Ton Dewey came out on our side.

Yes.

And so he hasn't dared

There isn't any question about it. I was pleased

Yes.

Not as the opponents but the proponents.

I should think it will be most helpful when it
at luncheon that fact, and one of them was rude
enough to say they didn't know what it was all
about. Well. I thought that was a general in-

HMJr:

ponents of the measure.

gete over in the Senate.

Yes. I sited that to ay Republican colleagues

Well, I think we are ooming over with good
strong backing, and I don' t believe there is
going to be too such opposition.

Now I went and talked to Taft today about it
because I felt that he could get
on the hearings a good deal. He is a little
loath to go along. He said he wanted to conduot a very interesting examination for pro-

Tobay:

HMJr:

Thank you so much.

Good luck to you.
Thank you.

How is the wife?

HMJr:

She's is making progress, thank you.

Has she come home yet?

R ECISION

TRADE

MARK

MICROSTAT

MICROFILM

ROLL NO

June 8, 1945
5:10 P. M.

44
HMJr:

HMJr:
T:

Yes, she's home.

Well, that is fine remember ac to her.
Thank you, Senator.

Mr. Tom

Clark:

Hello, Mr. Secretary.

HMJr:

How are you?

Pretty good, air. I appreciated your note

very much.

Thank you.
HMJr:

Good. Mr. Clark - the reason I'm calling you
is this. We had some inquiries around here the
last few days about your income tax and all
that. See?

Yes, air.

HMJr:

And I want you to know that the people inquired,
and I told then that as far as you were concerned
in the Treasury that we absolutely had nothing.
Well, bless your heart.

HMJr:

And that any story that they were suggesting was
pure figment of the imagination.

Well, bless your heart, Mr. Secretary, that is

nighty nice of you.

HMJr

I want you to know that the story that appeared
in Drew Pearson today. I know nothing about 11
never heard about it, and nobody in the Treasury

HMJr:

Hello,

did.

Well, that's mighty nice of you, and I do appreciate your telling me.

HMJr:

I don't know what Drew Pearson is talking about

and it certainly did not come from here. Another

reporter came around yesterday somebody had

filled him full of stuff in your law firm and
told no some stuff and I said it is perfectly

ridioulous-whatever you have been told is not

true.
C:

HMJr:

Thank you. I appreciate your backing then for me.
Well, I don't know - somebody is trying to make
some trouble for you, but I don't know where it

is coming from.

-2Well, I'd heard some rumors around - Speaker
Rayburn, and then Senator Hatch told me he had
heard some the other day.

HMJr:

Well.

I do appreciate it, Mr. Secretary, and I shall
never forget it.

HMJr:

HMJr:
0:

HMJr:

Well, I want you to know that, and I was very,
very emphatic. If you want at any time to refer
anything to as of that nature, and want me to
make a public statement, I'm prepared to do no.

Well, thank you so much. I do appreciate it.
Right.
Bye.
Bye.

PRECISION

MICROFILM

MICROSTAT

TRADE MARK

ROLL NO

-2C

for is less been acquired by Ma central bank. Under Section 2,
the currency represents the secruing proceeds of current trade and

8 1945

is being presently acquired or will be acquired in the near future
by a private treder. Under Section 4g the currency balances have

already been accurated by a central bank, and they may represent

My dear Sir Johns

lalancos resulting from recently completed transactions or even
balances long accumulated from past transactions.

This is in reply to your letter of February 1, 1945 inquiring

about . possible inconsistency between Section 2(a) and Section 4(b)

The financial obligations contecplated by the two sections

of Article VIII of the Fund.

are of a different order. By their nature, the summ involved in

Section 2 are moderate in amounts the sure involved in Section 4
say be energous in amount, for they can include the accuratated

1 can see no inconsistency statever in these sections. Article
VIII Section 2 is designed to casure people engaged in international
business that no member of the Fund will prevent their being paid for

Interest of years. As a practical matter, a country can be saled
not to restrict payments and transfers to traders for current
transactions. On the other hand, the burden of converting large
accustated balances held by fores central banks may be too great

the goods they export and for other current obligations. The section
states, subject to specified qualifications, that *no member shall,
without the approval of the Fund, impose restrictions on the making
of

payments

and

transfers

for

current

international

for a country when it earnet secure the help of the Fund.

transactions.

with this provision international business can proceed without the
restrictions that would result from the imposition of exchange

These are the reasons why restrictions on current payments

any not be imposed without the consent of the Fund except in the

controls on current transactions.

two cases meetified in Section 2, although the convertibility of

talances held by foreign central banks oun be restricted when a
country no longer has 000003 to the Fund and under the other conti-

The execution to the general principle of Section 2 are emmerated very clearly and in undertakable term. If a currency should

tions specified in Section 4.

be declared searce, a member my impose restrictions in accordance

with Article VII, Section 3(b): and any country covered by the tran-

As you are more the distinction between these sections of

sitional arrangements may during the transitional period maintain
and adapt to changing circumstances vertime restrictions on payments
other
and
transfers for current international transactions.

Article VIII do not become significant until the and of the transitional period and may not be of correquence then.

exceptions to the general principle of Section 2 are specified

Se have explained these points in greater detail sometime age
in conversations with Hr. Brand and Jr. Opio.

because, I believe, no other exceptions were intended.

Section 4 of Article VIII doals with a different problem. Under
this section each nmmer (or its central bank) is obligated to buy

Sincerely yours,

balances of its currency held by another member (or its central bank)

If the balances have been recently acquired as a result of current

/a/ H. Morgenthau, Jr.

transactions or the conversion of those balances is needed for making

payments for current transactions. There then follow the conditions
under which the obligation does not apply, all of the exceptions
being specifienlly listed.
The light Honorable Sir John Anderson,
Chargellor of the Koshequer,

In our view Section 2 and Section 4 have different obligations

to neet different problems. Section 2 is concerned to see that an

1. H. Treasury,
Great George Street,

exporter is assured of payment for his exporte in his own currency.
Under Section 4, the exporter no longer owne the foreign currency,

Lordon, 5. 1. 1, langland.

100,ff 5/30/15

lut February. 1945.

question
tab urisen
interpretation of
January A Es.
Economic
of the
6 certain claudo in the Final Act of Bretten Woods which

16 causing me acce difficulty and perflexity. It Arises
out of a possible conflict or inconsistency between
Section 2(a) and Section 4(b) of Article VIII of the Fund.
This has been already the subject or done discussion between
Lord Keynes and Mr. White.

The eurontill point 1u this. The obligation
under VIII n(a) 1spac: under VITI((b)(Y) IT the comber has

exhanated his facilities with the Fund. In such circusstances, therefore. he repised his discretion how for and
for how long he shall continue to exhaust his ultimate
gold recerves by maintaining de mate convertibility,
I shell be expected to explain whether this to in any
way undone by VIII 2(m), with the result that, in the
The Rt. Non. Henry Lorgenthau, Jr.

/above

RECISION TRADE MARE MICROSTAT REG. U.S. PAT.OFF MICROFILM ROLL NO.

50.a
document or which had not been understood and accepted by

11 those who had signed it.

1 propose. therefore. to assure Parliament, when
the time comes to seek itc Judgment. that they are not
being baked to sacejit any obligation beyond what clearly
ON the Face or the document, and that WC shall

above the Studretto 11 4744 to

instead of 16 the to up

member shall 128

have to regard a satisfactory clearing up teanwhile of
any possible ambiguity in the drafting B-B one or the
equential conditions prequisite to our being in
4 position to accept eventual convertibility under
Article XIV.

(which rejecurit 4 justices.
including BEP) before 12 adidas.

1 64611 be expected x

e ptant NA the to give

Parlincent THE 40 philistics 12

25 in 2410 34
susure that, in 4.00 AVEN 65 the Town 87 dayartoral teing

asked to give X dedinida VIII or
constitution or the Wind. Chere THE question or
imposing by dubtic interpretation do obfigation Zidch now

not appeared clearl. End Co the rice or the
supent

IND

pricessary

TRADE MARK

MICROFILM

MICROSTATI

ROLL

1945

8 JUN

Dear Mr. Barry:

I an certain that the endorsement
given to the Bretton Woods Agreements by

Dear Mr. Haldwins

the House can be attributed In substantial
part to the help you provided in working
out amendments satisfactory to the minority

The cause of international cooperstion was tremendously encouraged by the
heavy favorable vote of the House on the
Bretton Woods bill and I want to thank
you for the important part you played in
obtaining this endorsement.
Sincerely,

members of the Banking and Currency Com-

mittee. I an very grateful to you for your
efforts in behalf of this legislation which
I sincerely believe will E° & long way
toward giving us real international
1

cooperation.

Sincerely,
(Signed)

Morgontheal

Jr.

(Signed) H. Morgenthau Ja

Honorable H. Streett Baldwin,

House of Representatives,
Washington 25, D. C.

RB:1e:

7/6/45

Honorable William B. Barry,
House of Representatives,
Washington 26, D. C.

RD:1e

7/6/45

8 JUN 1945

1945

Dear Mr. Browns

that you are as pleased
anI am
thesure
extremely
House
vote as I which bill. about
the gave the
favorable
Bretten
I know
that
this
is in

Dear Mr. Brunbaugh:

It seems to me that the action in the

the Bretton Woods will
do
deal
to promote
House a great on International proposals that

part to your at

cooperation. I am deeply gratified the
House
the
basis and
I wantnonyou that

and on the

Woods as the small hearings untiring floor, and effort due

particularly in working out amendments to

that satisfied the the

members
of thedoubts and of
Republican the
bill Banking

partisan has approved Agreements to attain to know on this a

1 appreciate your efforts
result.

Currency Committee.

Sincerely yours,

Sincerely,
(Signed H.

(Signed) H. Morgenthau, Ja

Honorable D. Emport Brunbaugh

Honorable Paul Brown,

House of Representatives,
Washington 25, D. C.

House of Representatives

Alliej
7/0/45

RBrennerier 6/7/45

JUN 1945

1945

Dear Mr. Felger:
Dear Mr. Cramford:

on was large
I know that the bi-partisan vote

part

proposals
the to Bretton your from able Woods becoming efforts bill a party to keep due Issue. the in

I want to thank you for your outstanding work in connection with the

Bretten Woods bill. I know that the job

you did on the Committee and again on

the floor had a great deal to do with the
large vote that the House cast.

1 believe that the resounding approval of
the House will do a great deal to promote
real international cooperation and I want
you to know that I sincerely appreciate
the fine work you have done to bring about

Sincerely,
(Signed) H Margenthaw, Jr.

this gratifying result.

Sincerely,

Morgenthaw

Jr.

Honorable John H. Folger,
House of Representatives,
Washington 25, D. C.

Honorable Fred L. Crawford,
House of Representatives,
Washington 25, D. C.

RB:1ej

7/6/45

PRECISION

TRADE MARK MICROSTATI M BOLL NO.

57
0
8 JUN 1945
8 JUN 1945

Dear Bob:

Dear Mr. Gamble:

I just want to "note for the record"
my sincere appreciation for all you are
doing with the Bretton Woods bill.

that we can all be justly
the endorsement which

to the Bretton Hoods

has of the vote will do a great

The proud given size of I believe the proposals. House deal and

I know that you were just as pleased

International cooperation

as was that the House passed Bretton

toto
you
my thanks
to I want promote
extend
for thisyour
able assistance in bringing about
result.

Sincerely,

Woods bill by a vote of 345 to 18.
in my opinion, will be
invaluable assistance to all projects
for international cooperation.

demonstration. I the This

Sincerely yours,

(Signad) H. Mergenthau, Jr.

(Signed) Heary

Honorable Halph A. Gamble,

House of Representatives,
Washington 25, D. C.

Honorable Robert E. Hannegan

Chairman,Hotel
National Democratic Committee
Mayflower
Washington, D. C.

RBile
7/6/45
RB:AFL:ehb

6/8/45

RECISION

MARK

MICROFILM

MICROSTATE

ROLL NO.

8 JUN DAY

8 JUN 1945

Dear Mr. lays:

Dear Mr. Booh:

I want to thank you for the fine
job you did in connection with the Bretton
partisan Boods cipally bill. to vote the I of know untiring the that House efforts the sas large due of non- you prin-

Everyone who has been interested
in the Bretton Woods Agreements is, of

course, very gratified by the fine vote
cast by the House. I want to thank you
for the very substantial help which you
gave us in presenting the case for

and

your colleagues on the Banking and

Currency Committee.

Cretton Woods.

Sincerely,

0
C

(Signad) H. Morgenthaw Jr.

(Signed) H. Morgenthese Ja

Honorable Frooks Hays,

Honorable Daniel K. Hooh,
House of Representatives,

House of Representatives,
Washington 26, D. c.

Washington 25, D. C.

KBilej
7/6/45

RS:iej
7/6/45

8 JUN 1945

Dear Mr. Hull:

Dear Mr. Kilburn:

The non-partisan vote of the House

The non-partisan vote of the House
on the Bretton Goods bill proves conclusively
to ae that proposals on international
cooperation will receive from Congress the
kind of consideration that they deserve.
I want you to know that I appreciate very

on the Bretton Woods Agreements is a

am that

to 1
the cansatisfaction to me and I

source appreciate same sure as of aine. great your spirit I want reaction you In which is know much you that the

sidered the proposals and the contribution
you made to this fine endorsement of the

auch the work that you have done to make

this possible.

plan.

Sincerely,

(Signed) H. Morpenthau Ja

(Signed) H. Mergenthan, Jo

Honorable Clarence 5. Kilburn,

House of Representatives,

Honorable Merlin Hull,
House of Representatives,
Washington 25, D. C.

Washington 25, D. C.

RB:1e
7/6/45
1

RBsiej

7/6/45

8 JUN 1945

Dear Johns

Dear Mr. Kunkel:

I want to express to you my sincere

I sant to thank you for the fine
work you have done in bringing about the
overwhelming vote of the House on the

thanks for the fine work you have done on

Bretton Woods bill. It is extremely
gratifying to as to see this non-partisan
endorsement of a proposal for International
cooperation and I know that your feeling
about it is similar to mine.

the Bretton Woods legislation. The overwhelming vote of the House will, I believe,
greatly encourage people all over the world who

Sincerely,

are striving to create conditions in which peace

and prosperity will flourish.
(Signed) H. Morgenthau, Je.

Sincerely yours,

(figeol) Henry

Honorable John C. Kunkel,
House of Representatives,
Washington 25, D. C.

Honorable John W. McCornack

House of Representatives

RB:ALF:ehb

RB:1ej

7/6/45

6/8/45
0

8 JUN 1945

Dear Mr. Monroney:

I want to thank you for the fine
work you did in connection with the Pretton
Woods bill. The enormously favorable
votewas, I know, due in large part to the
labors of you and your colleagues on the
Banking and Currency Committee.

Dear Mr. Outland:

The action of the House on the
Bretton Woods bill seems to as to be the

most helpful sign for the future that has
been given to the American people In a

long time. I know that you, too, must be
greatly encouraged by the result and I
want to thank you for your extremely able

Sincerely,

work during the Committee's consideration
(Signat)

Morgenthall,

Ja.

of the bill and again when the legislation

was on the floor.

Sincerely,
(Signed)

Honorable A. S. Mike Monroney,
House of Representatives,
Washington 25, D. C.

Honorable George E. Outland,

House of Representatives,
Washington 25, D. C.

RB:1ej

7/6/45

RB:1e

7/6/45

67
0

JUN

8 JUN 191

1945

Dear Wright:

Dear Mr. Quinas

I want to express my appreciation of

I appreciate very such your able
the

I the fine which

the fine work you did in connection with the

Bretton

assistance House believe of the that In consideration Woods endorsement Agreements. by the

Bretton Woods bill both in the Committee and

on the floor. Your loyal support was, indeed,
a strong contributing factor to the size of
the final vote.

them is a demonstration

to that America
with

when

cooperate the the House world gave fully Its neighbors intends to

the war is over.

Sincerely,
1

Sincerely,
(Signed) H Mergenthau, Jr.
(Signed) Hantt

Honorable Peter A. Calinn,
House of Representatives,
Washington 26, D. C.
Honorable Wright Patman,

House of Representatives,
Washington 25, D. C.

RB:AFL:ehb

6/7/45
0

A3:1ej
7/6/45

TRADE MARK

MICROFILM

MICROSTAT

ROLL NO.

70
9

PRECISION

8 JUN 1945

JUN 1945

Dear Mr. Ramspecks

I know that every one who has worked

Dear Mr. Rainet

on the Bretton Foods bill is extremely
pleased at the tremendous vote of approval
cast by the House. This action seems to
as to be important not only because of its
effect on the Bretton Woods proposals, but
also because I believe that It will

I sincerely appreciate your contrilution to the fine endorsement of
Bretton Woods which has been given by

the House. I feel certain that the sise
of the vote will do a great deal to assist
all other efforts which are being nade
to establish a solid foundation for
International ecoperation.

stimulate and encourage those who are
a

engaged in working out other plans for
achieving a peaceful and prosperous post-

war world.

Sincerely,

I want to thank you for the fine
work that you have done In connection with

this legislation.

(Signed) H. Margentham, Jr.

Sincerely,
(Signed)

Honorable Albert kaine,
House of impresentatives,
Washington 25, U. C.
Honorable Robert Kanspeck,

House of Representatives,
Sashington 25, D. C.

RB:1e

7/6/45
RBrie,

7/6/45

Margenthau,

Jr.

8 JUN 1945
8 JUN 1945

Dear Sam

Dear Mr. Riley:

The House vote on the Bretton Woods bill

is . great victory for the cause of international
cooperation. I believe that it will do a great
deal to facilitate America's participation in
all of the pending proposals to establish a
peaceful and prosperous world.

I am extremely gratified to you for all the
work that you have done to achieve this result
which is the source of great personal satisfaction

I want you to know that I sincerely
appreciate the help that you have given
us in presenting the case for the Sretton
Woods Agreements to the House. I an sure

that you are as deeply gratified as I an
by the fine result which has been obtained.
Sincerely,

to me.

H. Morgenthau, in

Sincerely yours,
(Stema1) Years

Honorable John J. Riley,
House of Representatives,
Washington 25, D. C.
Honorable San Rayburn

Speaker of the House
of Representatives
Washington, D. C.

RBrennerior 6/7/45

8 JUN 1945
8 JUN_1945

Dear Mr. Sundstrom:

Dear Brent:

I want to thank you for your fine work
in connection with the Bretton Woods bill.
I know that you are as deeply gratified as
I an by the overwhelmingly large vote by the
House, This action will, in my opinion, add
a great deal to the cause of international

The extremely favorable vote of the
House on the Bretton Woods bill is a source

of great satisfaction to all of us who have
been concerned with its progress. I want
to express to you my appreciation of the
fine work which you and your Committee have

cooperation.

done in achieving this great demonstration
of America's intention to cooperate with the
United Nations after the war.

Sincerely yours,

- H Mergenthalle 4

(Siened) Heary

Honorable Frank L. Sundstrom
House of Representatives

Honorable Brent Spence

House of Representatives

RBrenner: or 6/7/45

RBrenner:cr 6/7/45

MICROFILM

TRADE MARK

ROLL NO

JUN 1945

8 JUN 1945

Dear Mr. Talle:
The House of Representatives has shown the

Dear Mr. Thom:

world that the United States intends to cooperate
fully with the United Nations after the war by
overwhelmingly approving the Bretton Woods Agree-

ments. I want to thank you for the large part

you played in keeping these proposals from becoming a party issue and thus achieving this fine
result.
Sincerely yours,
-

In its vote on the Bretten Woods
bill the House gave the world a great
demonstration of America's intention to
cooperate with other nations in the establishment of a peaceful and prosperous
post-mar world. The effectiveness of this
demonstration was due, I an sure, to the
fine work which you and your fellow Congittee members did during the hearings and
the debate and I sant to extend ay thanks
to you.

( H. Morganthau, Je

Sincerely,

Honorable Henry 0. Talle

(Signed H. Mergenthau, Jr.

House of Representatives

Honorable William 1. Thom,
House of Representatives,
Washington 25, D. C.

A3:1ej

RBreaner... 6/7/45

7/6/45

MPRECISION

MICROFILM

MICROSTAT

TRADE MARK

ROLL NO.

18
77
8 JUN 1945

8 JUN 1945

Dear life. Woodhouse:
Dear Jesse:

People everywhere in the world who

I feel certain that you are as happy

are working for real International cooperation have been greatly encouraged by the

as I am about the approval of the Bretton

Jub

Woods proposals by the House. I know that
action Agreements. extremely that you of die the grateful I as House want & member to you on you the to of for know Bretton the the Banking that fine Woods

you have labored for a long time to achieve

and Currency Committee in connection with

this legislation.

this fine bi-partisan endorsement and I want

Sincerely,

you to know that I an extremely grateful for

(Signed) H Mergenthes, Jr.

the great job that you have done.
Sincerely,
(Signed) Heart

Honorable Chane Going Woodhouse,

House of Representatives,
Washington 25, D. C.

Honorable Jesse P. Wolcott,
House of Representatives,
Washington 25, D. C.

13:1e
RB:1ej

7/6/45

ECISION

MICROFILM

MICROSTAT

ROLL NO.

25,

8 JUN 1945

Dear Dr. Kungs

I am most pleased to learn that you are
recovering from your operation.

with regard to the requests for the transfor of 860 million from China's credit 4 th the
U.S. Treasury contained in your letter of
28, 1945. I - gladhave
to inform
you that the
been
April necessary instructions given to of transfor bank
835 million to be used for the purchase
notes.

with regard to the $25 million for the purchase of textiles, I shall be Glad to have
transfers made up to this amount at such times
as the purchases are made.
with best wishes for your speedy recovery.
Sincerely yours,

(Signed) H. Morgenthau, in

Honorable H. 3. Kung,
Room 4201,

Weldorf-Astoria Hotel,
New York, Now York.

ISF:df 6/1/45

TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION

DATE 7 June 1945

Secretary Morgenthau

FROM

Mr. Coe po

Sub joots

Chinese request for $60 million to purchase textiles
and bank notes.

1. We have had under consideration for BOUR time. a request From

Dr. Kun to permit the Chinese to use $35 million of their credits
for the purchase of bank notes and an additional $25 million for
the purchase of textiles. It had been decided to delay action on
this request until we had finished our negotiations with Dr. Soons.
2. The Chinese have already placed orders for bank notes totaling
about $35 million.

3. In connection with the request to use $25 million for the purchase
of textiles. we have been informed by the Persign Economic Administre
tion that the off-shore purchases of textiles in Brazil and Mexico,
for which the Chinese will pay cash, will total about $20 million.
I - attaching suggested roply to Dr. Kung on these requests.

SECRET

nr.

INITIAL&

DATE 8 JUN 1946

SIGNET

AUTH Piscal Director

Continued.

will make all necessary arrangements to transport the gold to the
New York Port of Rebarkation to arrive at the time and place requested
by Colonel Wiggin with insurance effected by the final consignee.
The Commanding General, India-Burna Theater will be advised by
War Department radio the number of the vessel on which the kegs were
loaded with request that arrangements be made for the acceptance and

The Honorable,

The Secretary of the Treasury.

delivery of the kage to Mr. F.P. Ling, Manager, Bank of China, Calcutta,

India.

Dear Mr. Secretary:

This is in further reference to your letter dated 16 May 1945
relative to the shipment of gold to China.
This will confire arrangements made through this office for the
shipment of an additional four lots which is a portion of the amount

allocated for June shipment by water, details of which have been

furnishe by telephone to Mr. Lipesen's office.

Lot No. 1 consisting of let kage aerially numbered CBC 535

through CBC 578, with . total weight of 10,400 pounds, dis-

placing be cubic feet, with . total value of $6,993,410.97.
Each keg should be marked BENT-L-OND-OFD 161.

Lot No. 2 consisting of blu kegs serially membered CBC 579

through CRC 622, with . total weight of 10,400 pounds, dis-

placing be cubic feet, with a total value of $4,977,520.88.
Each keg should be marked NEWT-L-OFD-OFD 162.

Lot No. 3 consisting of 44 kegs serially mabered cac 623
through CBC 666, with . total weight of 10,400 pounds, dis-

placing " cubile feet, with . total value of $4,970,470.47
Each keg should be marked NET-M-OFD-OFD 163.

Lot No. & consisting of 44 kage serially mabered CBC 667
through CBC 710, with a total weight of 10,400 pounds, die-

placing H cuble feet, with . total value of $4,989,859.42.
Each keg should be marked MONT-M-OFD-OFD 16a.

It is understood that each lot will be held at the Federal Reserve

Bank in New York on call from the New York Port of Embarkation.

is. Col. Morrill Viggin, TO, New York Port of Embarkation, Telephone

Windoor

95400,

has

been

requested

advise

Mr.

Peter

Lang,

Federal

Reserve Bank, New York, as to the exact time and place of delivery

for each lot. It is then understood that the Treasury Department

Sincerely yours,
(Signed) L.N. CARTER
A. H. CARTER

Major General, GSC

Fiscal Director

TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION

DATE 8 June 1945

Secretary Morgenthau

FROM

Mr. Coo or

Sub jeets U. S. Army expenditures in China.
1. We have now thoroughly discussed with the Chinese the question of
U. S. Army expenditures in China. We have not been able to secure

agreement on a set of figures. It is felt, however, that 10 could
proceed with the negotiations since there is a substantial area of
agreement.

2. We are informed by the Chinese representatives handling this matter
that both Dr. Soong and Dr. Kung feel that Dr. Kung should continue
to handle this matter as in the past.
3. Dr. Kung is not caming in tomorrow to raise any matter of business
with you. It in auggested, however, that you may wish to indicate
to him that 10 are prepared to begin discussions with him on the
amount of U. S. dollars which should be paid to settle U. S. Army
expenditures in China during the last quarter of 1944.

.EPRECISION

ROLL NO.
TRADE MARK

8 JUN 1945

Dear Admiral Halsey:

to our use the

I want to thank you most sincerely for
the excellent statement
the

to the

Dear Admiral Nimita:

I want to thank you most sincerely for

7th
nation and 7th the 1 War as gave Treasury Loan sure it Drive. it splendid for will The be you front helpful newspapers made in page promoting available to coverage, us of in

reaching our high quotas for the GRIVE.
Sincerely,

nation the the excellent Bay Treasury gave Loan it Drive. statement splendid for our The use you front page newspapers made in promoting available coverage, of the

and I am sure it will be helpful to us in

reaching our high quotas for the drive.
Sincerely,

(Signed) H. Morpenthau, In

(Signed) H. Merpenthes, Ja

Admiral William F. Halsey

Consander Third Fleet
U. S. Havy

Navy Department

Washington 25, D. C.

Admiral Chester W. Simits

Coosander-in-Chief, Pacific Fleet
Havy Department

Washington as, D. C.

50Ltab
SGLtab

MICROFILM

MICROSTAT

MPRECISION

ROLL NO.

8 JUN 1945

Dear General Clark:

Dear General Doolittle:

I want to thank you most sincerely for
the excellent statement you made available
to the Treasury for our use in promoting the
7th War Loan Drive. The newspapers of the
nation gave it splendid front page coverage,
and an sure it will be helpful to us in
reaching our high quotas for the drive,

to our use
the
7th
the
I want to thank you most sincerely for
the excellent statement made available
gave

and

nation the War I an Treasury Loan sure it Drive. it splendid for will The be front page you newspapers helpful in promoting to coverage, of us in

reaching our high quotas for the drive.
Sincerely,

Sincerely,
(Signed) H. Mergenthan Je
(Signed) H. Morgenthau, Ja

Lieut. General James H. Doolittle
Commanding General, Eighth Air Forces
The Fentagon
Washington 25, D. c.
SOL1eb

General Mark W. Clark
Commanding General, 15th Army Group
The Pentagon

Washington 25, D. C.
50Ltob

PRECISION

TRADE MARK

. June 1945
0 June 1945

ky dear General Bradley:

It was with the greatest pleasure that I learned
of your appointment and want to hasten to congrate
late you upon 11. I cannot think of anyone who would
fill this important and energus post to more complete

and gender satisfaction and while I know that you

will first may difficulties ahead of sure

out
the the
of the

your congrate- forward

position, Administration that direction. you also and will that will The ably the Administration affairs carry successfully is you, duties Veterans to be I under an of

lated upon your acceptance of this appointment.

I shall look forward to our associations here in
Washington and hope that you will call upon - if at

any time I can be of service to you.

Sincerely,

Ky dear General Bandleys

It ves with the greatest pleasure that I learned
of your accountment and vest to hasten to congratu-

late you - 11. I annot think of anyone who would
fill this important and energus post to more complete

and gender antisfaction and while I know that you

will net may difficulties ahand of you, I an sure
that you also will ably CARRY out the duties of the

position, and that the affairs of the Veterans
Administration will & formant successfully under
your direction. The Administration is to be congratulated upon your acceptance of this appointment.

I shall look forward to our associations here in
Washington and hope that you will aall upon me If at
any time I onn be of service to you.
Sincerely,

(Signed) H. Margenthau, in

General Onar N. Bradley,
3901 Connections Avenue, N.V.,
Weshington 8, D. 0.
033/850

General Omar H. Brodley,
3901 Connecticut Avenue, N.V.,
Washington 8, D. a.

RI
91
90

June 8, 1945

a June 1945

Mr. Fussell
Secretary Morgenthau

I have just listened to the March of Time and I am
simply delighted. I don't know who was responsible for

bringing this about, but I want to thank them first, I

want to thank the people in the Treasury and, second, I want
to thank the March of Time Finished

by does General Readleys

the greatest pleasure that I learned

and vant to

of late 11. I annot
think of
ml energus

and while I you

your IS you this vas accountment upon important with post hasten to more to concentus who complete would

difficulties ahand of you. sure
also will ably ONEY out the

that the affairs of
will 8 forward

position, and will fill that - find you and many antisination, the know duties Veterans I that - of the

is to congratu-The
of this

your inted direction. upon your mannerfully appointment. be under

I shall Look forward to our appointions here is
Washington and hope that you will gall upon - If at

any time I - be of service to you.
Sincerely,

(Signed) H. in

General Omar N.

3001 Connecticut Avenue, N.V.,

Meshington 8. D. 0.

PRECISION

TRADE MARK

MICROSTATI MICROFILM

ROLL NO.

June 8, 1945

Mr. Feltus
Secretary Morgenthau

Congressman Wright Patman has offered to send his

remarks about no in the House to any group that I want to
them to. I wish you would submit some names to me
send of some organizations that you think It would be
worth today while having them send to. He said he would send in

unlimited numbers and I would like to take advantage of his
kind offer. Familier
Pursull is handling
-

PRECISION

TRADE MARK

MICRUSTAT

MICROFILM

ROLL NO

94
25

a June 1945

. June 1945

By dear Mesternant Harrags
Ny door Lieutenant Harrogs

It vse with the greatest pleasure that

: learned of your appointment as Chairman of

IS yes with the greatest pleasure that of

the National Labor Board, and

learned of your appointment as Chairman

I wat to congretulate you very varily upon

instations Board, and

having been the President's choice for this
Imprisant post. I know that you will Resume

you very

choice for this

I know you

15a duties with not understanding of their

importance and that the work will & forward

001

- under your Chairmanahly. If at

that the work will &

- time - office - be of cervice to you,

I the important having 100 importance was National duties born to post. commitments with and the Labor President's . understanding that varily will of forward - upon their

accountfully under your Chairmanahdp. If at

I home that you will and upon us.

any time - office - be of service to you,
I hope that you will call won m.

Sincerely,

(Signat R. Margentheu, Ja

(Signed) H. Morgenthau, Jo.

Moutement Past H. Memore

Chairman, National Labor Relations Board,

Membershi Faul H. Berma.
Chairmen, National Labor Relations Board,

lookenbeen Buildine.

Hashington, N.C.

location Building.
a c.

GEF/dre
GET/dba

25
26

8 June 1945

. Jane 1945

My dear Mr. Norris
by door Mentenant Herongs

IS use with the greatest pleasure that
of

Listening to your March of Time program,
last night, as I always do when I have the opportunity, I was simply delighted with the clear
and convincing manner in which you presented the

I I the want termed National to congratulate Labor your accountment initian you very Board, on vertify Cheirren and upon of

immon

and the &
having important 100 - imprison duties been post. with the under that President's . I not your understanding work that choice you will will for of formand - this If their at

any time - office and be of service to you,

I hope that you will and won -

Sincerely,
(Signed) H Margenthes, In

black market angle of the Treasury's tax evasion
problem. The technique of cutting back and forth
from your dramatic presentation to the summation
of the issue struck as as particularly effective.
will you be so kind as to convey my thanks
to your associates in New York and to Mr. Culley
of your Washington office.

1 also appreciate the interest of Mr. Hart,

of Washington, who was instrumental in presenting
Treasury material on another of your excellent
radio programs which I was, unfortunately unable

to hear. I would be pleased If you would also

convey my thanks to Mr. Hart and others responsible
for this program.
Yours sincerely,

Mentenant Feel H. Herong,
Chairman, National Labor locations Board,
Building.

Signed H Mergenthau, Ja

Insiderton, n.o.

Mr. Frank Norris,
Director, Radio Programs Department,
Time, Inc.,
Rockefeller Center,
New York, New York.

EBF:nmc
GXF/dbs

TRADE

MARK

MICROFILM

MICROSTAT

ROLL NO.

8 June 1945

Mr. Robert A. Dillon
Secretary Morgenthau

I am informed that you handled, directly, for
the Treasury, the arrangements with the March of
Time for the very excellent program of Thursday night.
I listened with much interest and was delighted with
the presentation. I want you to know how much I appreciate both your efforts and the splendid finished
product.
H.

(Signed)

Morgenthau

TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION

DATE 8 June 1945

FROM

M
99

Date 8 June 1945

Secretary Morgenthau

TO Secretary Morgenthau

R. B. Fussell

FROM Paul McDonald

Mrs. Klotz asked me to give you a memorandum concerning
the Dorothy M. Weaver letter which you signed yesterday,
and were kind enough to offer to present to her personally
this morning in recognition of her meritorious promotion
for outstanding performance in the Division of Disbursement.

Responding to your memo regarding March of Time:

After you gave us the idea, Charley Shaeffer and

were

Ivery
called
upon the March
of us
Time
people
here. They had to
cooperative
but told
final
arrangements
be made in New York.

It was not until Mr. Charles S. Bell's office called

I asked Bob Dillon of Shaeffer's shop to follow
through for us and he did an excellent job. I think he

Disbursement to request Miss Weaver to appear in your office
that we were informed she had resigned 30 May to rejoin her

rates the suggested memo of commendation which I have

attached for your signature. Incidentally I am asking
him to devote attention to radio in general, pending the
selection of a man, such as Lieut. Levy who has had experience in that particular line. Dillon is showing

such pep on this assignment that he might be able to
answer the bill permanently.

Also attached for your signature is a thank-you
letter to the Time office in New York.

Funees

family in Missouri. The Chief Disbursing Officer had not
so

been advised of the approval of Miss Weaver's promotion
pending your final concurrence. As you know, you wished to
pass finally on such promotions and the Personnel Division
apparently felt it would have been premature to advise the

originating office prior to your final approval.
Unfortunately, it was assumed by the office which
prepared the letter for your signature that Miss Weaver was

still on the job, particularly since the originating office
did not promptly recall its recommendation on learning of
Miss Weaver's resignation.

This is particularly embarrassing in view of your
personal and enthusiastic desire to recognize outstanding
Treasury employees. Proper coordination has been effected
to eliminate the recurrence of such an incident in the
future.

PRECISION

MICROSTAT

WWW.U.S.PAT.OFF. MICROFILM

ROLL NO

101

THE SECRETARY OF THE TREASURY
WASHINGTON

7 June 1945
Dear Mias Weaver:
100

This letter was not delivered because
the girl had resigned.

It\gives ne pleasure to Inform you that
you have received 8 meritorious promotion in

your the

which have

a selang increase of sixty
dollars . year, effective 1 June 1945,

made recognition This promotion Is in of work the in fine record Treasury Department. you

In notifying you of this promotion I
went especially to commend you for your high
production record, with minimum number of
errors. Your performance has been an

inspiration to others to improve the quantity
end quality of their work.
Sincerely)

Miss Dorothy M. Weaver

Division off Disbursement
Surenu of Accounts
Treasury Department

102

8 JUN 1945

Dear General Marshall

I want to thank you most sincerely for
the excellent statement you made available
to the Treasury for our use in promoting the
7th War Loan Drive. The newspapers of the
nation gave is splendid front page coverage,

and I am sure is will be helpful to us in
reaching our high quotas for the drive.
Sincerely,

(Signed) H. Margenthau, Jn.

General George C. Marshall

Chief of staff, U. 3. Aray
The Pentagon

Washington 25, D. C.
SGLteb

104

TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION

DATE June 1945

Secretary Morgenthau
J. W. Pehle

FROM

103

Charles Bell called in from New York this morning
to report on the recruitment drive. He thought you might
want a progress report for possible use at Cabinet today.
The following is a summary of Bell's report:
Yesterday, 50 former Civil Service investigators,

TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION

DATE 6-7-45

including 6 women, were appointed and assigned to the
Revenue Agent in Charge in New York.

Mrs. M. K. McHugh, Room 3409, Main Treasury

S. George Little

off

Machinery for assigning and appointing all classes
of persons needed for Revenue has been set up and is in
operation today. The machinery consists of four examining

Here are some of the "thank you" letters
Secretary Morgenthau wants to send to the
Admirals and Generals who gave us the War Bond
messages for newspaper publication. Others

will follow later.

boards, staffed with joint personnel of the Civil Service
Commission and the Bureau of Internal Revenue, who will

call in for interviews 200 persons per day. Of this

number, we should be able to recruit between 30 and 40
applicable candidates daily until the New York quota of
900 special agents has been filled.

Army officials at Fort Dix were interviewed. They
agreed to bring to the attention of every discharged
soldier the job possibilities in Revenue. Each veteran
is required to fill out a form which carries a description
of his past experience. These forms will be promptly
screened and the job possibilities in Internal Revenue
brought to the attention of all persons eligible for our
work.

Fort Dix is the largest discharge center in the
United States. It is currently discharging at the rate

of 1,000 men a day, and will soon reach 2,000 a day, or
approximately 20% of the total dischargees for the United
States.

Your letter to Adjutant General Ulio of June 6 has
already been printed in the attached information bulletin

-2-

for Army counselors, and is in the hands of all counselors
in all campa throughout the United States.
Charlie reports that Elmer Irey has been very helpful
in working out many of the details with Revenue and the
Enforcement staff of New York.

Bell said that you ought to know that BB far as can
be determined, none of the Internal Revenue units in the
New York area have contacted the local Civil Service
Commission within the last year to fill vacancies from

their registers.

Attachment

ECISION

TRADE MARK

MICROSTAT

REG.U.S.PAT. OH

MICROFILM

ROLL NO

6 JUN 1945

Dear General Ulios

The atticied letter is self-explanatory, and, LS

voluible, TO should like for It

inform Bulletin Number 5. He understand that
this Bulletin tiven is now in the indery thus, 11 BAY not

be ossible for you to have this information included

is the current issue. If such is Un case, I would

appreciate having this Letter reproduced and sent
either as A supplement to your Bulletin Number 5 or on
a separate mailing to the BLUE recipients.
Very truly yours,
(SIGNLD) CHARLES S. BELL

Administrative Assistant
to the Secretary.

Major General James A. Ullo,
Adjustant General,
Far Department,

Washington, D.C.

6 June 1945

107

My dear General Uniot
Treasury Department is conducting an extensive caspaign To

The tax ovadors engaged In black-market operations. 11,000
to approhend work It will be necessary to insediately recruit other
do this including 8,500 Agents and 4,500 clerical thrown and his

employees, The Prosident of the United States has and he
employees. behind this argent and important program
fill support to the proce on June that he desired to -Ivo qualified
stated voterans the first opportunity to fill those jobs in Treasury.
The followlay is & copy of the President's statements
"Secretary Horgenthau has told 200 about the truly
CLESS of tax ovasian his son have discovered.
shoeling thoroughly La sympathy with his plan to onlargo
I the an Burcau of Internal Revenue forces to whatever extent It

is required to Insure full compliance with the law.
will be rood business for the Government, because every
dollar TO spend in collection and enforcement will pro
duce $20 or more in revenue. And much more important is

the atter of good orals. We are not fighting thiswar to
to make millionaires, and certainly wo are not going
allow the black market operators or any other rackstoors
to be in 5 favored class, when the non in the arned forces,
and our citimons generally, are sacrificing BO heavily.

"The top officials of the Civil Service Commission
have boon acquaisted with our special tax drive and the
necessity for an accelerated progras of recruitment.

"The American people understand that sacrifices

are necessary. They know the war is still far from being
over. The one thing that alcht break down their will to
keep on to complete victory would be a feeling that &
for were profitlay from the marrificos of the many. Te
must BOO that there is no justification for any such
feeling, and that is Just what WO are roin- to do."
The Agents' Jobs will pay $2,500 or 18,200 depending upon

education and experience qualifications. Driefly, the qualLications required are 2 to 3 years' experience in personaible
accounting auditing, or Invosti ational positions and substitutions are allowed In liou of experiones for accounting and logal

education.

Deputy Collector positions are available at $2,000. The
requirements for those are C years of bisiness experience,
preferably bookkeeping or 40 counting or 2 years of accounting

or logal education. A simple test is given to applicants for
those positions.

The clorical positions offer ralaries of $1,440 and 1,320.
In addition to the ralarios shown above all employees are paid
from $311 to $620 per annual, depending 170.3 the salary rate, as

overtize as lon LB they are on a 43-hour per wook basis. A further pay Increase my be approved on 1 July 19:5, which would add
20 per cent for the first $1,200 and 10 per cent for the a ount
between $1,200 and $4,600. The Sonato has of ready approved this
increase and It 10 now bein considered by the House.

Any ano interested in thong jobs should insulately ake
application on Standard Fora 57 to any field office of the Dureau
of Internal Revenue of the Treasury Department, to any Civil Tervice Commission Regional Office, or to the Director of Porsonal,
Treasury Department, Washington, D. C.

Your cooperation in this patter will be appreciated.
Sincerely,

Arrangments have been sada with the Civil Service Com
micsion to have placed at every Aray discharge center

In the United States a qualified recruitment officer
froz the Civil Service Consission, fully versed in our
recrultment requirements, who will stoor to us qualified
voterans as they are discharged.

Major General James A. Ulio,
Adjutant General,
War Department,

Washington, D. C.

110

109
Secretary Morgenthau 2

TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION

DATE 8 June 1945

Secretary Norgenthau

FROM

Mr.

Subject Current
Developments in the High-grade Security
Karkets
I. Long-term Governments Rise in Price
Since the opening of the Seventh Var Loan drive on
14 May, prices of the restricted taxable bonds and the
2-1/2's of 1967-72 have scored substantial gains. During
this period, the restricted taxable bonds advanced 16/32 to

on and the 2-1/2's of 1967-72 gained 1-9/32

establish average: a new all-time high. At current prices. the

unrestricted 2-1/2's of 1967-72 yield 2.23 percent; and
the restricted 2-1/2's of 1966-71 yield 2.41 percent.

Some indication of the recent changes in the prices
taxable issues is provided by Chart I which shows the
prices of of the securities offered in the Sixth War Loan from
the day first traded.
II. Certificate Yields Back to December Highe
Yields of certificates of indebtedness have risen
(prices have declined) in recent weeks, continuing

further trend which has been in progress since the low yields their
reached the on 22 7 December April(Chart the II) date Yields of your are letter now at to about Chair-

level Eccles of the rise during the past two months having
man cancelled the improvement registered by the certificate

market during the first quarter of this year.

III. Kember Bank Borrowing at 12-Year High.
This May in Part, Reflect Tax Avoidance
Discounts and advances by the Federal Reserve Banks is to

banks amounted to $912 million on 6 June. This
member level of member bank borrowing since the two
peak the highest weeks of the bank holiday in March 1933: and before

total that since the end of 1931. Almost three-fourths of this
was in the New York Federal Reserve District and
weekly reporting
member
banks
in New York City reported
borrowings
on 6 June
of $579
million.
Some increase in member bank borrowing characteris

tically occurs during the early part of a war loan

before the sale of marketable securities to drive,
opene and the bulk of subscription paid for corporations with War Loan

Deposite are received. There appears to be, however, a
definite upward trend in member bank borrowing which is
for independent of the timing of war loans. One possible reason
trend
is a deaire
theirthis
excess
profits
tax. on the part of banks to minimize
Banks generally compute their excess profits tax lia.
bilities on an invested capital base. Under the law, they
are permitted to increase this base by half of their borrowed capital (on an average daily basis) Deposits cannot
Past be treated few years, as borrowed bank earnings capital have for increased this purpose. markedly During as the

has been indicated in previous memoranda and the number
banks subject to excess profits tax has likewise increased. of
It can be seen that banks can reduce their excess profits

tax liability, or even avoid it altogether by borrowing

Federal. to replenish reserves instead of selling certificates to

A recent issue of the confidential "Current Comments'
by the Division of Research and Statistics of the Board of
to this:
Governors
of the Federal Reserve System says with respect
'The situation presents a rather delicate
issue to the credit authorities of the System.

There are many who have been hoping that the
discount privileges of the System might be used
and considered available so that excess reserves
could be allowed to dwindle without creating any
feeling among banks of credit tightness. The
System however, would hardly want to be a party
to promoting a channel of tax evasion. The difficulty arises because of the very thin margin

that separates 'legitimate borrowing from that

which is unnecessary. The Federal Reserve System
has within its hands the power to create the

Secretary Morgenthau - 3

credit conditions that would make borrowing

either more or less 'legitimate'. For example,
if the System should tighten reserves, there
would be more cases in which member banks could
demonstrate a real need for borrowing.

This comment is very pertinent in view of the rise
in the yields of certificates of indebtedneas which has
occurred since early April. Since 7 April, the yield on
certificates having a saturity of three months has risen
from about 0.42 percent to about 0.70 percent (Chart II).
The lending rate of the Federal Reserve Banks on loans

It
secured by certificates is 1/2 of 1 percent: and most of
the loans made by the Reserve Banks are so secured.
1s. of course, much ensier for member banks to justify
such borrowing as "legitimate" when three-month certificates are yielding 0.70 percent, that it was when they

were yielding 0.42 percent.

IV. Rise of Money in Circulation
May Be Slackening

The volume of money in circulation continues to rise.
On 6 June, it amounted to $26.5 billion. There are some
indications, which, however, require to be confirmed by
observation covering a longer period, that the rate of
increase is slackening. The increase in the year ended
6 June was less than $4.3 billion, as compared with $5.0
billion for the corresponding period a year ago.

Attachments

PRECISION

TRADE MARE

MICEOSTAT MICROFILM
Chart 1

PRICES OF MARKETABLE TREASURY NOTES AND BONDS
ISSUED IN 6th WAR LOAN

o
1444

1945
FEB

MAR

DOLLARS

Chart II
US

ESTIMATED YIELD OF A 3 MONTH TREASURY CERTIFICATE

1004

PERCENT

Weekly

Periodically

103g

103
7

1024

108

o
5
5
4

Dec.22

Letter N

FEB

MAR

APR

+++++++++

SEPT NOV JAN MAR MAY JAT SEPT

1942

1948

944

1944

1945

114

-2$

Memorandum to the Secretary.

8 June 1945

MEMORANDUM TO THE SECRETARY.

their families about undelivered bonds rose to 12,
and reports of delays in receiving bond interest to
4. High praise of "Here's Your Infantry' continued
to arrive daily and there were still quite a number
of promotional ideas for the Seventh Drive.
Neither the Roosevelt bond nor the Roosevelt
dime had more than half a dozen comments. In each
instance disapproval outweighed approval. Three out
of a dozen communications about the Instructions to
Financial Institutions to report currency transactions

8 June 1945

Mail Report

Fan mail on which a count Was kept and from
which excerpts were taken totalled 599 communications

this past week. This does not include routine mail

without comment, which is forwarded in volume every

day to the different Treasury offices.

were in bitter opposition the remainder favorable

Attached are quotations as usually included

or non-committal. Again several writers warned of
the inflationery trend of the stock market. There
were 8 rather small donations to the war effort and
3 to the conscience fund.

from letters of particular interest, and also a box
score showing how the mil was divided by the subjects
covered.

Again the drive against tax evaders took the
top spot. The last two days of the week showed a
sharp decline in correspondence on the subject, but
in all, 132 men applied to the Secretary for jobs
as investigators, about one-third of these being
service men recently discharged or soon to be discharged. As soon as word went out that recruiting
for the jobs would be done among veterans, there was
a noticeable increase in applications from the se men.
Of the 65 communications naming specific tax evaders,
37 were anonymous. These letters cane from all
sections of the country, but & great proportion were
postmarked New York City. There were 40-odd other
letters approving the drive or making suggestions to
promote It. of the 3 or 4 who commented on it unfavorably, 2 particularly opposed the special appropriation to be asked of Congress. The tax mail also
Included 10 requests for refunds, half a dozen complaints about hardships, and a few miscellaneous
suggestions.

Although inquiries about Adjusted Service Bonds

fell off this week, other run-of-the-mill bond matters
increased slightly. Complaints from service nen or

During the month of May, 268 pieces of mail were
forwarded to us from the White House. This is the
lowest we have ever fallen in such receipts, and
I believe that the change in Administration at the
White House is responsible. Our previous low was
with 381. The highest WILS 1942, with 1,428.
May, 1937, rule, May receipts have between 500 and
800. Of the letters we received this past month, 103
were handled in the Correspondence Division.

As our run

General Comments

Dr. I. R. LeSage, Huntington, West Virginia. I cannot
refrain from reiterating my approval of your advocacy
of stern treatment of Germany made some time ago, and
which was given the "hush hush by some of the spineless big-wigs at Washington. The 7th War Loan would
gather more momen tus If more speedy action were
apparent toward the execution of the arch Nazi fiends

and less coddling of the rank and file of prisoners
in our concentration camps. Then, too, the asininity
of court martialing a guard for slapping some of the
inhuman beasts, all these things are disgusting and
tend to take the enthusiasm out of this Bond Drive.
I an voicing my own sentiments and those of thousands

of others in the above context, and it would be well
for the *Powers that be to get wise to this situation.

depositors. It seems to me that your proposal does
nothing except to place the banks in a situation in
which they might easily find themselves in error,
their officials or representatives embarrassed, and

good will removed. ... It is not your purpose to

which we object. It is the method by which you proceed. We sincerely hope that you will reconsider
this matter in its proper light and revise your
instructions to require that disclosures must be
made by individuals rather than by the banks. In
the meantime we shall, of course, be governed by

your instructions and trust that you will correct this
situation forthwith.
W. A. Moehle. President, The "old" Exchange National

Bank, Okawville, Illinois. We are today In receipt
of notice regarding "Instructions to Financial
Institutions in the United States" pertaining to cer-

tain transactions. We have no fault to find

with this order except that the order should be more

Dayle E. Weller, President, The Bank of Three Oaks
Three Oaks, Michigan. We received from the Federal
Reserve Bank this morning a copy of instructions issued
the
by you under date of May 21, 1945. I am writing

this letter to enter a vigorous protest regarding

method which you propose to use in obtaining this
information. In my opinion, if the Treasury Department
wants such information, it should be willing to assume

full responsibility therefore, should require indivi-

duals involved in such transactions to make a full
disclosure and sign a statement regarding the use of
such large bills. As you now propose to obtain these

reports, it places the banks in position of endeavoring to pass judgment on what is and what is not
"legitimate and customary conduct of the business,
industry, or profession of the person or organization
concerned". As you will appreciate, many transactions
pass through a bank of which banks have no knowledge

whatever concerning the use to be made of the proceeds,

and in many cases It is none of their business their
function being purely that of paying agent for their

definite; as it now stands, it is up to each bank to

determine whether the transaction shall be reported.
This places the burden on the banks, which we think
is not the way it should be. You well know the Banks
have done a wonderful job during this war in handling
the various demands made upon it, but this order
should be more specific, not allowing any loopholes.
Under present instructions Banks are more or less
policemen, and I am sure the Banks, as whole, will
resent following your instructions.
Joseph W. Driscoll, New York Herald Tribune, New York

City. I wish to protest emphatically against the
lack of government coordination which resulted in

the impounding of my personal funds when I arrived
at LaGuardia Field, May 21, 1945, after serving as
accredited war correspondent with our armed forces
since before D-Day. These funds had been duly and
legally issued to me by the U. S. Army finance officer

118

-3San Dambrosis, Route 17 Paramus, New Jersey. I am
enclosing my check for $18.25 which represents a
saving of 52 a day for one year, and which I put

at Orly Airport, Paris, in strict accordance with my
Army travel orders which read; "Military personnel
should exchange their French francs to U. S. dollars
and English sterling in the Passengers Terminal
Building at the airport immediately prior to departure. A copy of your travel orders must be shown
the Finance Officer at that time. Having faithfully

aside for the privilege of flying our flag. Each
morning I hoist the flag to the top of a ?lag pole

I had erected on my premises and at sundown lower

it. I have been doing this for the last six years
and I expect to do it indefinitely, so long as I an
physically able to do so. This is really the land
of opportunity and I came to this country from Italy

adhered to the Army procedure, I was surprised upon
being informed at LaGuardia Field that I could not
bring more than $50 into the country without & permit.
Why cannot the Treasury and the Army get together on
such matters and work out a coordinated procedure so
that returning citizens will not become enneshed in
red tape and delays, and have to apply for a "license"
to recover their own money? I thought, Mr. Secretary,
that you might welcome this suggestion.

Lilliane Albreapy, Oakland, California. I was more
than grateful when the articles I requested of you
were sent to me in such a generous way. I fully
understand now that all letters sent to you by ordinary citizens do not go unanswered. Thank you again
for the photograph and autobiography of yourself.
My classmates, as well as myself, have enjoyed the
books and me can now more fully understand a little
more about our land and its democracy.

F. H. Smith, Wilkinsburg, Pennsylvania. The writer is
active in Veteran Affairs and we know what the G.I. raw
thinks, and right now he is good and sore over the
deal handed him by the State Department, and your
Department on the exchange value of the Franc. Fulton

Lewis, Jr., covered this to the point tonight, and
it sure is a mess. Our boys stand to lose $40.00 or

more a month on the alleged plan, and we have asked
Congress and President Trunan to take action to remove

every official who is responsible for this act of
injustice to our G.I's., and we welcome your version
of the deal. Mr. Lewis will be glad to tell what he

knows as he talked to many of the officers over there.

when I was 17 years of age. I adopted this country
as my own and I vowed that were I successful, I would
show my gratitude and appreciation by being a good
citizen and flying the Mag daily. by ambition was
realized six years ago when I became the possessor
of my own home and the owner of an automobile service

station, and I, of course, kept my promise and also
started the 5g a day saving, which want my Govern-

ment to use as it sees fit. I hope God will spare

me for many years so I can continue the custom which
I started. I want to thank God, thank America and

thank my customers.

J. F. Luttman, Milltown, New Jersey. Your announcement that Roosevelt dimes will be minted comes as
shock to me and I am quite sure also to about half

the people of the United States. I think we should
wait about ten years to see if Roosevelt was really
a man to be honored as n great many think, or If he
WILS just the opposite, as just as many people think.
In fact, we don't even know if Roosevelt really died.
The way I understand it, his corpse was not on display.

The way I see it, if the profile of Roosevelt is to
be on one side then the profile of Stalin should be
on the other side.

Congressman Louis Ludlow, (11th District, Indiana),
Washington, D. C. Many of the people I represent,
good law-abiding citizens, apparently disagree with
the policy of calling upon the banks of the country

121

-5I
Favorable Comments on Bonds

to screen their deposits in order to discover ab-

normalities which may be examined in a nation-wide

campaign to detect tax evasions. . . Bankers say
that enforcement of this request not only would
violate the confidential relationship which, from

H. B. Tukey, Chief in Research, Division of Pomology,
New York State Agricultural Experiment Station,
Cornell University, Geneva, New York. It occurred to

the very foundation of our Government has existed
between banker and depositor but that it would inpose a tremendous burden and responsibility on banks,
which already are heavily burdened with war work.
Depositors declare that the order would project the
inquisitorial powers of the Government into the domain

of the private citizen in a way inconsistent with

no that you might appreciate a listener's reaction to
the Treasury Program, "Music for Millions". I think
It is splendid, of high quality, and just the sort of
thing that we can well afford to do. It seems to me
that it contrasts strongly with many of the commercial
programs now on the radio. I presume that the standard

tive of the most sacred rights of the individual.

the radio.

Omer B. Kathmann, Carpinteria, California -- Enclosing
clipping of editorial "On The Throwing of Dust",
suggesting efforts to memorialize President Roosevelt
are for personal job-holding reasons. "Enclosed is
a clipping from our local small town paper. I con-

Andrew L. Felker, Commissioner, Department of Agriculture, Concord, New Hampshire. Some little time

should be high, as an example of what can be done on

American freedom and traditions, and would be viola-

sider It an insult to our departed friend, Franklin D.
Roosevelt, and also S dig at you. After the magnificent job you have done, it seems to be full of ridicule

service

ago letter I received from you a carrying very friendly your thanks and much for appreciated the

that we tried in our feeble may to render during the
previous War Bond Drives here in our state. We could

hardly have failed to have done our bit if for no other
reason than to work under the banner of men who headed

up the bond sales work in New Hampshire. They
are all real men, and it WILD & pleasure to work with

by referring to your grand gesture in remembrance of
F.D.R. It does not represent the majority of people

them and for then in our small way. find that

in this country.

It is a little easier for our farmers to understand
the meaning and speak of a billion dollars when &

few years ago they caught their breath when someone

The Fifth and Sixth Grades (Letter does not state
name of school), Merrill, Oregon. The fifth and sixth
grades have been saving money in a little jar called
the "kitty". At the end of the year we bought an
$18.75 bond with it. We wish to donate this to the
U. S. Government to help bring Victory sooner.

mentioned a few hundred thousand dollars. Thanks
much for your letter and the recognition that you have
given us.

Arthur 0. Dietz, President, Commercial Investment
Trust, Incorporated, Now York City. When the war ends
and the public can again buy the goods it wants, we
face the prospect of a rush to cash War Savings Bonds.

This will be particularly true with many of the millions
holding small amounts of Series E Bonds. # Thus,
a trend toward cashing before maturity can be expected,

123

122
Unfavorable Comments on Bonds

unless stemmed to some degree by anticipatory action.
This would add immeasurably to the Treasury refinanc-

ing problem and will tend to build still further the

K. C. Tanner Tanner & Clark, Attorneys at Law,
Proctors in Admiralty, Portland, Oregon. I am enclosing herewith a copy of my letter to Commander

banking system's holdings of U. S. Government Bonds,
while undoing much of the good work which has been

done to stimulate habits of thrift. When Regu-

P. A. Sugg, U.S.N.A.T. Ward Island, Corpus Christi,

lation W was promulgated in 1941 we faced precisely

the opposite trend national income was then rising

and production of durable consumers' goods was de-

clining toward the vanishing point. publicly stated
at that time that the standards set by that regulation were practica] and sound. Now, with the reverse
trend setting in, I believe that the reasons for its
inception are no longer applicable. If people were
encouraged to buy consumers durable goods out of
current income or through utilization of established
sales financing machinery rather than from the proceeds of War Bond redemptions, it would have the
advantage of retained savings those savings being
largely in War Bonds. A combined program of urging
people to hold then, and elimination of Regulation W
could very well spread the desire for goods over a
longer time than might otherwise be the case. The

great latent demand that exists is a fortunate occurit to be manifested in too short a period. With 50
million War Bond investors, Regulation is wholly
ineffective 8.5 a means of restricting that withheld

rence for our general economy, but none of us wants

purchasing power when goods again become available

The choice will not be between buying on the instal
ment plan or not buying at all. The alternatives,
rather, are purchases on the instalment plan or cashing of War Bonds to buy outright. Regulation W
with its high down-payment and short repayment period
will make instalment buying burdensome for the wage-

earner. At first glance, that may seen desirable as
means of withholding purchasing power, but its off-

setting disadvantage nullifies the gain, if any. It

places a premium on cash -- only those in the higher
Income groups will be able to afford the privilege
of acquiring needed automobiles, refrigerators, washing machines, etc. The only means available to the
wage-earner to compete with this class demand will be
to cash his War Bonds.

Texas. Because this letter contains in some detail
a description of some practices at that base with
reference to War Bond purchases and the coercive
methods used by officers, which I believe are of
doubtful value, I deem it advisable to bring
the
informed
matter to your attention.
that my boy declined, after repeated demands by your
executive officer, to disclose his reasons for cancelling his War Bond subscription, and in an interview which lasted several hours he was specifically
accused of being unpatriotic and was told that he WB.S
being investigated. He was required to complete a
form giving the names of six character references.
Within two hours after this interview a Naval Intelligence Officer at your base sent for the boy and asked
him a number of questions touching the work there at
the base, with the quite obvious purpose of eliciting
some incriminatory statement. Following this, a recomam

mendation WB.B made to the Navy Department in Washington

for his transfer to other service. The entire transaction seems reprehensible in the extreme. If

the boy had the courage and fortitude to resist the
repeated demands of his executive officer to disclose
his reason for cancelling his War Bonds, it would seem
that this very quality should be appreciated, assuming
of course, as I have been informed here, that Naval
regulations did not require him to disclose his
reasons. This quality would be of inestimable value
to his country In the event the boy should ever fall

into enemy hands. You must, of course, realize

that the purchases made by the boys at your base out
of their small incomes is a mere drop in the bucket

125

124
10

is overseas, signature is difficult to obtain. and
if the beneficiary is killed before his consent is
obtained, the difficulty is multiplied several fold.
The only relief at the present time, that is
known to the writer. is to cash the bond. To cash

when compared with the purchases being made by civilian
parents. When information reaches us that naval
officers abuse their authority, we are bound to wonder
if we are not losing at home the very things for which

the bond, the purchaser must lose a considerable

we are fighting abroad. I had occasion to talk

amount of interest, as the bond interest is on

to two radio men that had been trained at your base.
The information I received from then, touching your
practice there in the matter of War Bond subscriptions,
would indicate that your practice is at least open to
criticism. They informed me that men who attempt to
cancel their War Bond subscriptions because of pressing financial needs were advised by your War Bond
officer to cash in the bonds as rapidly as they received

sliding scale favoring the man who holds the bonds

longest.

The two letters which follow were addressed to the
President, and referred to the Treasury for handling.
Thomas F. Coakley, Rector, Sacred Heart Church,

them. It seems to me to develop a habit of cash-

Pittsburgh, Pennsylvania. I am mad all over. I want

ing out these bonds is quite as mischievous as to neglect to purchase them in the first instance, and far
more wasteful. I an told that you have an enviable
record at your base in War Bond purchases. It might
be well to ascertain what record the boys are making
in War Bond retention.

Captain Walter A. Lammli, TC, Shreveport, Louisiana.
Difficulty in being experienced by war Bond purchasers
changing beneficiary or co-owner. At present,
E do not the purchaser
Series
Bonds give
of the beneficiary. right to
changeinbeneficiary
willconsent
thout the

... The purchaser should enjoy the right to change
the beneficiary if he desires to do so. There are a
lot of single people who list their friends or relatives as beneficiaries or co-owners, many times without knowledge of the friend or relative. Later when

the purchaser marries, or otherwises changes his idea
as to whom the beneficiary should be, there is considerable difficulty in making these changes. In
some cases the beneficiaries are not immediately avail-

able: in others, they refuse to sign; in others, the

purchaser does not desire to consult them as they do
not know they are on the bond and he does not desire

tell them. In other cases, the beneficiaries

may to be minors, such as a minor niece or nephew, and

are unable to sign. In cases where the beneficiary

to buy $75,000 worth of 7th War Bonds, and no one in

this city will sell them to me for Sacred Heart Church.
Our checks are perfectly good; we have had no difficulty in purchasing large quantities of Wh Bonds in
every previous War Loan: but this time every effort
for nearly a month has resulted in failure. Our checks
have even been returned, through one exasperating
excuse after another. Why does the Treasury Department make it impossible for us to subscribe to the 7th
War Loan? We are a Church, an unincorporated institution, with some 1.250 men and women from this parish
in the Armed Services, 32 of whom have given their

lives for their country in this War. And yet through

the asinine stupidity of the Treasury representatives
we cannot subscribe for the 7th War Loan. Mr. President,
why don't you clean out the Treasury Department, and
put someone in charge who will make it easy and pleasant
to subscribe to the War Loans, instead of making such
a transaction odious, hazardous, annoying, and finally
impossible.

Bert Nobles, National Press Building, Washington, D.C.

This *Ole Sarge' wishes to call your attention to the
current method of selling War Bonds most emphatically
here in Washington in this 7th War Loan Drive. There
is definitely 6 basis for much of the present criticism

127
12

126

Favorable Comments on Taxation

of the War and/or the Treasury Departments - criticism and public indignation has increased daily because
of the Paucous salesmanship from the "Trailer in
downtown Washington. Selling techniques of the
"un-uniformed, within the draft-age civilian barker
includes a rude insistance of some individuals buying
a $1,000 Bond in order to see B man escape from a
straight jacket. The salesman continually and sarcastically repeats, "Do you want the soldiers to fight

"An American", Postmarked Brooklyn, New York. I, as
an American, an proud of you and your wonderful start
in attacking the black marketeers. The wise birds
and smart-alees that are not so smart when they are
caught. You sure have them on the run. The vaults
are busy. Black market boys are busy running to the
vaults
and stiff.
taking out their money. They certainly
are
scared

your war and pay for it too? There just isn't

any excuse however, for using ill overseas Veterans
other enlisted
men to create public bond buying enthusiasm. Those
boys have been 111 with malaria for 30 months and
right now in Washington four of then are suffering
daily recurring attacks - and are having to take Atrabrine before each performance to lessen and control
the severity of said attacks. Who is so callous 0.0
to demand that these sick boys crawl on their stomachs,
firing most every type of combat weapons, including
flame throwers at simulated Jap pillbox out here
like Buck Private Raymond Dunlap and the

Cpl. Roscoe B. Chalker, APO 562, New York City.

Enclosed clipping appeared in today's Paris edition

of the Stars and Stripes". It is with great
interest that I read where you plan to recruit so

many additional agents to aid the Treasury Department

in Its drive to assure that each individual pay his
proper share of the nation's tax burden. I was with

Potonne Park? Whoever dreamed up such an inhuman

the Bureau of Internal Revenue from 1938 until 1943
when I entered the armed forces. For two years prior
to If induction I WILS an Internal Revenue Agent
assigned to the Office of the Agent in Charge, Detroit,

hickory applied to him. . (Encloses clipping from

and many other former agents who are now in the service

piece of bond selling needs a generous twig of Missouri
Washington Star on use of boys with malaria In Nar Bond
demonstration.)

Michigan. This letter is written on behalf of myself

of their country. I have noticed that in the past

when industry needed men with certain qualifications

because of a shortage of such men, the War Department

cooperated and discharged men to alleviate such a

shortage. . I am certain that experienced men would
be of greater value to your Department at this time
than new men recruited from the outside. My duties
in the Army consist of being company clerk for my
organization. I am classed as Limited Assignment and

sincerely feel that I could be of far greater service

to my country were I permitted to return to my position

with Internal Revenue. Sir, I take the liberty of sug-

gesting that you petition the War Department for the
release of former agents that they make use of their
past experience and may assist you in the gigantic
task that faces you today, and I personally would take
great pride in being one of the men assigned to help
carry out that task.

128

129
14

Unfavorable Comments on Taxation

Ben Wallack, New York City. I note from the papers
that you are shocked by the income tax cheating
going on all over the country And well you might

be : It is an accepted fact that there is not one
house in fifty in the tertile field that is honest

with the Treasury. Black markets are rampant. Cash
transactions prevail. Different nets of books are

kept. As for the fur industry, T was talking

with a bookkeeper the other day, working for a fur
house -- and I am told there is not an honest house
in New York. For instance, when they sell a $4,000
coat, or a $2,000 or $3,000 coat, the buyer pays
half in cash and half by check. Thus, the buyer pays
20% luxury tax on only half the cost, saving the

other half. The seller, for example, on $3,000
coat, records having received only 11,500. ...
The situation is criminal and treasonous. It is high
time that every last textile and fur house in this
city is thoroughly investigated.
Carol Davidson, Oneonta, New York. I firmly believe
that taxes should not be lowered until after the war
with Japan is over. Small business, though, should
not have to bear the greatest part of this tax
burden.

R. F. Bausman, c/o Karl D. Pettit & Co., Investment
Managers and Counselors, New York City. Our papers

have all carried newarticles recently about Treasury
plans to apprehend income tax dodgers. While heartily
approving such activities, I should like to point out
that to be fair, consistent and logical, an attempt
should be made at the same time to clean up old claims
in the Revenue Bureau for income tax rebates. I have
had a just claim in the Department for some two years.
Also, the way to help business -- large and small -would be to pay approved claims for relief that have
been filed in accordance with the Excess Profits Tax
regulations.
The following telegram WAS sent to President Truman

and referred to the Treasury for handling: "Dear

Mr. President. Must I. poor working man with

family, have my wages attached by your income tax
officer here whom Y owe 42 dollars for 1943 tax.
They also owe me 60 dollars from 1944. Today they
took bread out of IF family's mouth by taking away
my weekly income by attachment. How are you, as
President, going to stand by and see this kind of
treatment done to me as an American negro who has

given all for his country, including twelve times

Flood donor. Louis Ryan, 2525 Chauncey Drive,

Edward E. Randall, Attorney at Law, Long Beach, Calif.
A group of attorneys at luncheon the other day were

Pittsburgh 19, Pennsylvania.

of action was perhaps due to the lack of manpower.
One attorney though? that it WILS legally possible to

Dick D. Quin, Certified Public Accountant, Jackson,
Mississippi. Attached hereto you will find clipping
from this morning's newspaper. This is good news
indeed to the legitimate tax practitioner and to
legitimate business. As a practicing Certified Public
Accountant it has long been my knowledge that there
has been considerable tax evasion, in the failure of
taxpayers to include therein the proper amounts of
their income and to include many Items of expense

decrying the fact that so many of their clients were
guilty of tax evasion and placing such funds in safety
deposit boxes in large denominatic No were rather
disappointed in the tax agents' lack of energy in
investigating such cases and thought that such lack

pass an not calling in all larger bills by a certain

date and registering same for new issue, which procedure would trap such illegal deposits in the implest
manner. The above suggestion not with such approval
by the men at the luncheon, that I thought I might pass
It on to you as to how the great majority of us feel

in respect to stopping such illegal activities.

TRADE

MICROFILM

MARK

ROLL NO.

131

130
Report of Correspondence received in the
15 -

Secretary's Correspondence Division

TOTALS

208

BONDS:

Promotional ideas and materials for the Seventh Drive
Promotional ideas and materials for the Eighth Drive
Replies for form letters of War Finance Division
Thanks for *Here's Your Infantry*
2
2

Unfavorable

Smaller denominations

3
18

Other complaints:

Service sec
Others

Governmental agencies without violating, in some
technical degree, some provisions of these rules and
regulations. So many of the rules and regulations of
other Departments of the Government are backed up with
teeth through the Internal Revenue laws, and, therefore, business never knows just exactly where it
stands when their returns have been filed at the and
of the year, although every effort has been made to

Complaints about delays in receiving interest

Failed to recei ve recognition for sale of bonds
Savy is forcing allotments for bonda

Organised education not recognised in pasphlet
2

by WFD

OPA restrictions unwarranted, ao no more bonds

Church is having difficulty investing its funds

in bonds

Iwo Jima picture marred by Treasury artist
Cartoons to sell bonda to farmers are off key

1
1

lacetrack betting interferes with Seventh Drive

Safekeeping facilities unavailable

Others

3
13

General suggestions

Give owner right to change beneficiary at will

Issue conversion bonds, non-redeesable 10-year
maturity bonds, etc.
Make bonds redeasable by undertakers so they

can be sold as burial insurance

Increase sales by certain 30308

5
95

Routine matters:
Bonds for redemption
Subscriptions

Problems of inheritance, reissuance, replacement,eta.82

Inquiries about Adjusted Service Bonda

production regardless of whether the change will
eventually be in favor of the Government or in favor
of the taxpayer. ... If these same Revenue Agents
instead of spending their time looking for technical
violations of some law or regulation, would devote
this time to those taxpayers who had failed to file,
or those who have actually gone out in an effort tohave
openly and flagrantly violate the tax laws and
filed returns that are absolutely improper, the
Treasury Department would not only bénefit by collecting add tional revenue but the legitimate business
concern also would be given a break.

Favorable

clined to be very technical of the returns filed by
legitimate business enterprises. It is a known fact
that no business today can operate under all of the
various rules and regulations and laws of the various

Revenue Agent wants to make a change and show some

The Noosevelt memorial bonds

Humore that bonds will be invalidated
Complaints about delays in receiving bonds

comply with the spirit of the laws and the regulations. We find too of ten in the examination of these
tax returns that the Revenue Agents are inclined to
take the viewpoint against the taxpayer rather than
look at the spirit of the law and see that he has paid
his proper and legitimate tax. In other words, the

this Government, but there are many practices which
are being indulged in that do not have their approval.
There is one thing, however, that I think needs
the very definite attention of the Treasury Department. Too often the Internal Revenue Agents are in-

June 1, 1945 to June 8, 1945, Incl.

that are not allowable under the law. Too often the
legitimate tax practitioner is asked, just whom are
you representing- you representing us or are you
representing the Treasury Department. After all, we
are the ones who are paying you" ... Legitimate
business is trying to do a good job, both In the war
effort and paying taxes which are necessary to run

TRADE MARK

133

132
-2-

-3
TOTALS
0

MISCELLANEOUS PROTESTS,

TOTALS

Filipino is prevented from opening bank account

Check income of professional people

Check income of domestica

OTHER SUGGESTIONS AND COMMENTS:

Personally abusive

1
1
10

CHECKS FOR REWRITING

DONATIONS:

To the war effort

To the conscience fund

BAKTION WOODS PROPOSALS

INSTRUCTIONS TO REPORT CURRENCT TRANSACTIONS:
3
7

Comment, clippings, etc.

Unfavorable
Favorable

as they will destroy private enterprise

Currency problems, mutilated money, etc.

Tax-exempt cooperatives should be discouraged
Others

Unfavorable

Inquiries about foreign funda control

Longstanding error in assessment not yet
corrected

Favorable

Present rates cause hardships

Boosevelt amorial dime

delayed

Questions, protests, etc.)

Car use stamp should be abolished
Excess profits tax claim unreasonably

lease discontinued

loosevelt estate may be tax free to family for many years

Bussia's obligations of 1918-19 should be not or land-

Congress should not grant
appropriation
Others

Unfair exchange rate in France
Coddling of Nasi prisoners

Print nases of guilty

curbed

Comment and ideas

Preese safety deposit boxes

industry

Speculation in real-estate and securities should be

Reports of evaders

Call in large currency

Government should collect rebate from Detroit war

212
132

Applications for jobs

Requests for refunds
Tax evaders driver

in Florida

Motion picture strike is depriving Treasury of revenue

272

TAXES:

135
-2-

134
$

Report on White House Correspondence

CUSTOMS
2

Complaints about Customs Inspector

Complaint about customs duty on photograph

2 June 1945 to 8 June 1945, incl.

BONDS

GENERAL
1

Veterana requesting jobs as Investigators
3

Favorable comments on using Veterana as

Unfavorable comment on current method of

Tax investigators
2

Suggestion for issuance of new bank notes
to curb black marketing

Suggestion for borrowing on War Bends
1

Unfaverable comment on Bretton Woods proposals

Request for replacement of lost or stolen

Suggestion that "Fighting Eagle* be reatered

to coins

Suggestions for post-war *Depression Bonds",
"Health Assurance Bonds", Adjusted Service

Opposes cancellation of World War I debts
3

Miscellaneous plans for employment, comments

TAXES

Requests for exemption of pensions from

on financial condition, requests for value
of foreign funds, etc.

TOTAL RECEIVED FOR PERIOD

Suggestions for reduction in taxes for small
salaried workers, corporations

Requests for refunds of income taxes

Asks Presidential support of excess-profits

Routine tax plans

Favors present tax system until was in
Pacific is won

tax bill

income taxes

Bonds

War Bonds

rather than selling

selling War Bonds

Slogans, comenta on 7th War Loan

Slogans, comments on 8th War Loan

memorial coin

Favorable

Unfavorable

RECISION

TRADE MARK

MICROFILM

MICROSTATA

136
EXECUTIVE OFFICE OF THE PRESIDENT
WAR REFUGEE BOARD
WASHINGTON 25 D.C.

OFFICE OF TH
EXECUTIVE DRICTOR

JUN 8 - 1945

My dear Mr. Secretary:

I an pleased to send you herewith a copy of
the report of the War Refugee Board for the period
from May 7 to June 2, 1945.

Very truly yours,

William O'Dwyer

Executive Director

The Honorable,

The Secretary of the Treasury.

Enclosure.

Report of the War Refugee Board
for the Period from May 7 to June 2, 1945

April 23
May

deportee camp at Hoechat
Mauthausen

With the surrender of the German armies, much of the Board's
work in Europe has been automatically terminated, inasnuch
as the Executive Order establishing the Board strictly

1,500
804

5,000

To Bolzano area

May 11

Shortly after the cessation of hostilities, Representatives
Katzki and McCle'land advised
us that reports of International
recently returned to Switzerland
who

limits its activities to the rescue and relief of victime

of enemy oppression in
emy-occupied
territory Accordingly
McClelland were advised that relief
and
Olsen
representatives
and assistance of refugees liberated from the Gernans are not
within the Board's jurisdiction and that requests received by
them for such help should be referred to the United Nations
Relief and Rehabilitation Administration, the appropriate
military authorities, the Intergovernmental Commi ittee on
Refugees, private refugee organizations, or other national
or international groups authorized to deal with matters of

Red

Cross

representatives

from Germany, Austria, and Northern Italy indicated that.
while Allied military authorities were making every effort
to assure adequate relief to liberated civil detainees,
deportees, etc. an unavoi dable delay in reaching many of
the persons formerly aided by the Board through Intercross
is being experienced because of the magnitude and complexity
of the task and the difficulties of transportation and
distribution which are involved. It was stated that emergency
calls for aid for liberated detainees and deportees in

this nature.

temporary agglomerations and on the roads have been sent

Our representatives were requested to begin immediately to
wind up all Board activities in Sweden and Switzerland and

Intercross field workers and that A large number of sick
persons remaining in concentration
campsperiod
were alsoemergency
reported
this
to

need.

Apparently

to prepare final reports. On the basis of their estimates
of the time required for this purpose and the expected

8,550

To temporary Intercross

To incoming convoys of
resoued detainees from

May 4

V-E DAY

To Landsberg-an-Lech

need the duration of which is as yet undetermined, and it
was reported that local Allied commanders having to deal with

period necessary to accomplish the winding-up process here,
appropriate recommendations have been submitt to the Bureau

of the Budget with a view to concluding the Board's activities
and accomplishing its final liquidation within approximately
sixty days after the end of the current fiscal year on

these displaced persons welcome such shipments as the Inter- On

OPERATIONS FROM SWITZERLAND

this
Board parcels
remaining
in Switzerland
the
28,792
undi
stributed
to
enable
it to fill
again be made available to Intercross becomes

national Red Cross has been able to get through to then.
the basis of this information supplemented by reports from
other sources, and in view of the fact that Intercross truck
convoys were still leaving Switzerland periodically, so that
it is technically able to continue relief shipments to meet
situation, our representatives strongly recommended that

June 30, 1945.

In view of the foregoing, Representative collalland was
advised that all shipments of Board parcels should cense and
was requested to take stock of all Board parcels still in
Switzerland and to report the numbers and location to us.
He cabled in reply that there were approximately 28,792
undistributed Board parcels on hand in warehouse in Geneva
and that shipments of 31,208 parcel out of the 60,000
originally sent to Switzerland have been made as follows:
March 16
March 16
March 19

April 16
April 17
April 19

To Theresienstadt
To Vienna area

To Theresienstadt

To Mauthausen

To Theresienstadt
To Dachau and other campa
in Wurttemberg and
Bavaria

this temporary urgent demand until the situation the

clearer. The Board promptly cabled its approval of
shipment of these parcels out of Switzerland on condition
that military authorities permit Intercross to continue
relief shipments to concentration camp survivors.
Because of the great interest of the Board and its representstives for 80 many months in the problem of concentration camp as
and in order that first-hand current information
relief, needs in such campa might be obtained, we cabled

1,170
4,902

to the McClelland authorizingDachau,
him to visit someas
of
Representative
the liberated concentration campa, particularly appropriate

492
900

4,230

soon as possible, and to make arrangements with and

military authorities for the necessary permission

travel facilities.

3,660
1

TRADE MARK

-3supplies are urgently required. The United National Relief
and Rehabilitation Administration was reported to have sent
three planes of supplies from London, and it was indicated
that if the necessary official permission could be obtained
for supplies to be flown in, the International Red Cross will
send
one
from
with supplies chiefly
from Switzer and
plane
the United States. It was stated that in addition the Red
Cross is sending several trucks of food supplied in large
part by the private agency represented by this informant,
and that similar convoys with such supplies are being sent
to Dachau, Landsberg, and other campa for the internees there.
More exact figures concerning the innates at Theresienstadt
were contained in a late cable from McClelland in which he
quoted information given to him by an Intercross delegate who
was at the camp in early May. It was stated that there were
17,556 Jewish deportees in Theresienstadt as of April 6 and
that 12,863 new deportees were brought in from camps all over

McClelland's most recent report describes the splendid work
of the International Red Cross in continuing distribution
of food relief, including Board parcels, to liberated detainees
in southern Germany and Austria. Four trucks were sent to Ling
on May 28 with forty tons of food. including 2,650 Board
parcels, for the detainees liberated from Mauthausen In view
of

reports

that

some

27,000

liberated

detainees

are

leading

most precarious existence in the Line area, with from 300 to
400

persons

per

dying

day

from

disease

and

starvation,

Mo-

Clelland has requested Intercross to prepare a second truck
convoy to leave for Linz about June 4. when he expects to be
in that area himself visiting campa to determine where the
remaining Board stocks can be most effectively used. On
May 29, twenty-eight trucks left Switzerland for Pilsen,
with Theresienstadt the final destination. The convoy carried
3,600 Board parcels with other relief goods and was accompanied
by two Ozech officials who will attempt to arrange Ozeoh and
the
relief goods may proceed
that
Russian clearance
Another

Germany, such as Bergen Belsen, Buchenwald Dachau and
Mauthausen, between that date and May 5. or the latter number,
88 persons were dead on arrival and 221 others died shortly

Theresienstadt.

Intercross

convoy

was

scheduled

leave on June 1 with eighty tons of supplies, including 5,000
Board parcels, for distribution to released civilian deteinees
in the Salzburg area.
Reports from Representative McClelland disclose that it was
possible for the International Red Cross to utilize for the
relief of Luxembourg deportees and detainees in Geruany only
a small portion of the funds made available for this American
Labor-sponsored project. The interested agencies are now
negotiating to have these funds used for the relief of
families of Luxembour agers who were deported and died in
German concentration campa or were executed by the Nazia

and to assist returning deportees in the reestablishment
of their homes.

It is understood from a private source that the Swiss are
prepared to accept for a temporary stay and to provide for
the maintenance of some 2,000 children from Gernan campa.
Theresienstadt

From a representative of a private organization we
learned that an International Red Cross delegate who recently
visited Theresienstadt reported that of the 30 000 Jews there
now, some 17,000 are from the original group of internees
and 13,000 are recent arrivals from other camps. The largest
national group consists of about 6,000 Czechoslovakians, and
approximately 5,000 former Germans comprise the second largest
group. The new arrivals brought typhus into the camp, which
has resulted in conditions of great hardship, and medical

thereafter so that the total number of survivors there as

of May 5 was 30,110. The camp is now reported to be under

Ozech control.
-

EVACUATIONS FROM SWITZERLAND

About the middle of May it was reported that the evacuation
of the two groups of Bergen Belsen and Therealenstadt refugees
probably would not be completed before the middle of June
at the earliest. On May 24, Representative McClelland cabled
us that the date for the movement from Switzerland of the
first convoy of approximately 1.000 refugees, to go via
Marseille to Taranto thence to UNRRA camps in southern Italy,
had been definitely fixed for June 4, the second convoy to
follow two weeks later. However, a late cable from McClelland
brought the information that, since the authorization on
May 30 for seven hundred Palestine certificates to be delivered
to Zionist refugees from Bergen Belsen and Theresienstadt now
in Switzerland, some 1,100 persons among the two groups

scheduled for evacuation have taken the position that they
not wish to leave Switzerland until they can proceed directly
to Palestine. While the scheduled departure of the first
convoy has been indefinitely postponed as result of these
developments it was indicated that efforts will be made to
arrange for the departure about the end of June of a convoy
of those refugees who do not desire to go to Palestine.

-5far returned are of non-French nationalities. Another report
from the same source indicates that, as a result of negotiations
on the part of military authorities and private agencies with
French officials, the French Government has agreed to permit
the temporary admission of a thousand children from German

OPERATIONS FROM SWEDEN

According to information which Representative McClelland
received from the International Red Cross, the 140,000 Board
parcels which were shipped from Goteborg on the ss MAGDALENA

concentration camps.

on April 16 arrived in Ltbook, and since the Intercross

delegate at Labeck had previously distributed an unknown
number of parcels under his control from
other sources to
civil detainees in northern Germany particularly in Ravensbrack,
the stock of Board parcels has been diminished to the extent
necessary to replace these advances. Representative Olsen's
most recent information indicated that the Intercross delegate

A private organization representative who recently visited
Northern Italy reported that 150 Italians and other nationals
who had just come from mountain hideouts were found in Turin
and that there were in Bologna 400 of the 1,200 Jews formerly
there. Smaller numbers of the Jewish communities in other
towns have returned and others are believed to be still in
hiding. It was stated that in many instances the clergy was
particularly helpful in preventing deportations. A complete
record of the persons interned at the concentration camp of
Fossoli as Carpi and records of the cames at Monticelli and
Salsomaggiore were obtained. or the 400 Jewa reported interned
at Bolzano, over 100 have returned to Milan. The others have
been urged to remain at Bolzano temporarily in order to relieve
the overcrowded situation in Milan. Apparently there is some

in Labeck was distributing Board parcels to civilian internees
in the immediate area and whenever possible was dispatching
food packages by trucks to various concentration camps within
reach. A cable from Representative Olsen advised us that
while more exact figures cannot be obtained until communications
with Labeck are reentablished, it was known that a fairly
substantial shipment of parcel was forwarded to Ravenabrack

quite recently, and that it was the opinion of an American

Red Cross representative and the Intercross delegate in Goteborg
that most of the Board packages in Labeck have now been
distributed.

unorganized movement from camps in Germany to Italy which is

creating an additional problem.

On behalf of agencies interested in the American Labor-sponsored

project for rescue and relief activities in Norway which were
conducted under the Board's supervision and which the Board
helped to finance. Representative Olsen's views BE to specific
needs for a follow-up relief program in liberated Norway were
requested. The Swedish group advanced a five-point program,
for which all the necessary arrangements as to the procurement
and shipment of supplies have been made, and its proposals
have been transmitted by the Board to the interested groups
here.
EMERGENCY REFUGEE SHELTER

A of thirteen persons from the Euergency Refugee Shelter
at

group Fort Ontario, Oswego,AllNew York
leftarethisnationals
country on board
Yugoslavin,
then
GRIPSHOLM

May

the and they are the first of the refugees brought here from

Southern Italy to be repatriated.
REPORTS FROM LIBERATED AREAS

A report which reached us from A private source stated that
since May 21 deportees
have been
returning
France
the to
hundred
per day.
Aboutto
25%
wereatsaid
average rate of east one through Odessa, the rest from Germany,
arrive and it from appears the that a large majority of those who have thus

William O'Dwyer

Executive Director

MICROFILM

ROLL NO.

143

DIVISION OF
CENTRAL SERVICES
TELEGRAPH SECTION

INCOMING

DEPARTMENT
OF

STATE

RECEIVED OF TELEGRAM

DIVISION

CENTRAL SERVICES
PLAIN

AdoR=49

-2-5778 June 8, from London

12
10

AM
8

1945

JUN

London
DO/L
LIAISON

Dated June 8, 1945

of convention of 1033 both of general character

Rec'd 7:10 a.m.

and in ro to particular individuals French Govt
would confer nocossary authority on 100 and

Secretary of State,

qussi-consular powers on its representativo
Spanish refugoos in Franco come within mandato of

Washington.

IGC and Emorson strongly recommends that request

us URGENT

of French Govt be approved. I concur in his

5778 Eight

rocomonGationa and request that I be authorized

FOR DCPT R3 AND 3ARL HARRISON

before June 13 mooting to vote for approval.

Date next meeting Executive Committee IOC fixed

definitely June 13. Only business on agenda French

Please instruct urgently.
O

WINANT

request that 100 assume legal and administrative
protection Spanish rofugees in Franco under Convention

Oct 28, 1933 benefits of which were extended to
Spanish refugoon by Fronch doeree Mar 15, 1945.

The Convention contains provisions ro sojourn

of refurcos issuance of travel document Cotormination
of private law concerning personal status of rofugoo
and rights of refuree to work and receive social
benefits. In short Spanish refugees will enjoy
3539 rights as Manson refugoos. If AGC assumon

legal and administrative protection of Spanish

refugeos in France it will be charged with taking
up with French Govt questions relating to application
of convention

IN UGHT

GABLE to AMINGATION, FOR HOGLISSAND FROM MAR I BOARD
Reference your No. 3063, of June 6.

Board is arranging for sale of its surplus 306,000 POW
paraels in ButteerLand to UNREA Accordingly, please advise
Interness that sens (repeat none) of these 206,000 parcels my

be turned over to Intereress, Detailed instructions conserning
transfer to UNIVERSITY will be sent to your shortly.

Board is pleased to know that balance of 20,793 three-kile
Var Refugee Beart persole will seen be exhmited. Please express
appreciation of Board to Intererees.
We & not understand your reference to 90,000 gallens of

gnooline (plus lubricante). Are they new available in Witserland
and owned by the Beart,

THIS IS WRD TERM CAPLE 30. 534

2:30 D.R.

June 8, 1945

Miss Ripple (for the Secty), Coba. Model. Hatchimon McCorreck, Files.

(
Fithdive
6/8/45

INCOMING
TELEGRAM

DEPARTMENT
OF

STATE

AdoR-237

DIVISION OF
CENTRAL SERVICES
TELEGRAPH SECTION

-2-2071, June 8, 4 p.m. from Stockholm

Stockholm

Distribution of true

Dated June 8, 1945

arrangement. (SECRET

Roo'd 6:10 p.m.

reading only by special

of parcols sont IRC rep Lubook 53610 on

hand at latest reporting date. He was, however,
distributing those rapidly as possible to camp arons
in roach and also using them help food 10,000

MID

Secretary of State,

CENTAR)

Volo

Washington.

former camp Innatos now in Lubook area. Hence

2071, June 8, 4 p.m.

assumable supply TRB parcels in Lubeck virtually

services

exhausted. Local JO group distribu (#) a koshor
food parcols as follows.

The following telogram has been sont to Born, 35
June 8, 4 p.m.

Bergen-Bolson 7500.

FOR NCCLELLAND FROM OLSEN

Ravonbbruck samo amount.

Supplementing our 33, May 23 following info (a)
and by AMCROSS rep Chislor. 224,000 TBB food parcols

Various camps Germany 10835.

Destinod Lubock but instoad sont Donmark 10,000.

shipped from Goteborg distributed as follows.
Mar 5, two wagons to Nuongame 10800 percels.

To Dano Jows in Swedon'2000.

Nar 15, by as MADDLEN. 5 to Lubook for POS.

Total 37,835.

is indicated above pareela in ten distributed

componsate for those givon NORTEG civilians 13200.
Mar. 16 vagon to Nuongammo 5400.

by Danc mossio communi ty to inmatos Ravonabruck

Mar. 17. $8.50 place stime amount.

as they passed thru Denmark (a) ERB as 2071.

Mar 17, two wagons to Ravensbruck 9600.

Reports reached us many of those not given food for
several days and in critical condition.

Mar 17 by SS MATTELEN. 7 to Lubook for civ

JOHNSON

internos 140376.
(a) apparent commision

May 22 to Kooperativo for Bundot for JC
TOT

39288.

Total 224,121 parcols.
or pareols

June 9 1945
10:55 A.M.

141
June 9, 1945

HMJr:

2:30

I looked for you at Cabinet, then I couldn't
find you.

GROUP

Postmaster

Present: Mr. D. W. Bell

General Walker: Well, Henry, I waited a few minutes and then

Mr. Gamble

I had to leave. It waen't important, I sort

HMJr:

of wanted to know if you wanted to see some
cotton fellows. I don't know whether you would
be interested in them or not.

Mr. Peble
Mr. blough

What's that?

Mr. C. S. Bell

Mr. Fussell
Mr. 0* Connell

Mr. Gaston

I said there was a fellow asked me if you

Mr. Luxford

would see some cotton fellows someday next

Mr. Coe

week.
HMJr:

Sure.

I don't know whether it is important
or not,
and seem anxious

Mr. White

H.M.JR: Hello. I see you're still up today on
your E bonds.

but they are very
to see you.

HMJr:
W:

I'll be glad to see then.

I'll tell then to call your secretary. It's

HMJr:
W:

HMJr:

(Mr. O'Connell enters the conference.)

Colonel Jackson.

H.M.JR: Did you see this story on the Secret Service?

Colonel Jackson.

MR. FUSSELL: Yes.

I'll tell then to call your secretary. Will

H.M.JR: Where did that come from?

you be here next week?

HMJr:

MR. GAMBLE: Yes. We covered & little more ground.

I'll be here Monday and Tuesday.

MR. FUSSELL: I don't know. It didn't come from
us. Gaston SSW It and suggested no change in it and

How is Mrs. Morgenthau?

made no comment.

She is getting along nicely, thank you.

That's fine. All right, Henry.
Thank you.

H.M.JR: I just thought I would close the week. It's
been a pretty good week. Is everybody here?
MR. PEHLE: Luxford is here.

MR. FUSSELL: Charlie Bell is coming in.
H.M.JR: Send out a dragnet,
MR. O*CONNELL: This is a good attendance to what
it might have been.

-3.

-2H.M.JR: Hello.
MR. D.W. BELL: Joe and I are supposed to be away.

Gaston is supposed to be away. White Is supposed to be

MR. LUXFORD: How do you do?

here.

H.M.JR: Yes, sir, and be called at the last minute.

H.M.JR: We'll give him the "Bronx cheer" when he

He had the heads of three veterans organizations over and

trotted me over there, and I got there just in time.

comes in.

I an on "We The People" Sunday night ten-thirty

(Mr. Coe enters the conference.)

to eleven. It's okay to take it just the way it is
with no changes.

(Mr. White enters the conference and everybody claps.)

MR. FUSSELL: All right.

H.M.JR: I just said in another minute we will pull
the flag down to half-mast. The Acting Secretary of the
Treasury died on June 9th.

H.M.JR: It's supposedly on the bank business.

(Mr. C. S. Bell enters the conference.)

MR. WHITE: Oh, that's right. I an supposed to be.
That's why I'm here. (Laughter)

MR. PEHLE: What are the exact instructions?
C

H.M.JR: Haven't you seen it? Nobody shows you

MR. BLOUGH: Because you're dead?

MR. WHITE: The flag is at half-mast.

anything.

MR. D.W. BELL: I see it in the papers. Financial
speeches. (Laughter)

H.M.JR: Read that much (Indicating script for "We
The People Program Sunday night, June 10.)

H.M.JR: Anyway, Truman had the heads of three
veterans organizations over and gave a very hurried
talk, whisked out the photographers, and we all had

our pictures taken, which I haven't seen. I hurred
Charlie Bell back from New York where he has been

very active out at Camp Dix, and if you are interested,

(Mr. Gaston enters the conference.)

sometime he can tell you how ashe
found It's not
an

H.M.JR: #here's the Acting Secretary of the Treasury

as I would say, way behind. Aren't they, Charlie?

today? Isn't that White? Is he supposed to--is it his

so good. I mean, the Government things. employer is,

turn? (Laughter)

MR. GASTON: Danny and I are substituting for him.

H.M.JR: We had a sort of surprise call from
President Truman. Is that all right?
MR. D.W. BELL: Yes.

(Mr. Luxford enters the conference.)
C

MR. C.S. BELL: A little stinky.
H.M.JR: In dealing with the veterans and the
result of this thing this morning, these various

veterans organizations, one I know has a magazine

with a million and a half circulation going to press
Monday night and they are going to carry a notice in
each one of them. Naturally they are interested,
because this is the first time in twenty-five years
that the Government ever tried to find the veteran a
job.

152
151

-5-

-4-

MR. D.W. BELL: Did he?

H.M.JR: Yes. It's the most amazing thing that has

I think the work that Charlie is doing in the field-I think when you get a little more of the story you ought
to go over and tell it to McKim.

happened to me in Washington. I an glad it happened

early. I just thought I would warn you guys that

don't think we can expect much from him except a double.

cross. But I am glad I got it so early and painlessly.

MR. C.S. BELL: Yes, sir.

Were you in the at the time?

H.M.JR: Because I think the President ought to
know how bad the Civil Service is.

MR. O*CONNELL: I was in the room at the time of
the telephone conversation but not after that.
H.M.JR: He proceeded to double-cross, so I thought

MR. LUXFORD: Do you want that on the record?

I would pass it on for what it's worth. It's too bad,
and it's been a good week. I don't have anything special.
There is nothing new across the street. I took an Idea

H.M.JRI why not?
MR. LUXFORD: How bad Civil Service is.

that you gave me about veterans, Herbert, and I called
up General Marshall's office and asked whether he could
find for me a very able General to head up Enforcement,
and they are going to look for somebody.

H.M. JR: Compared to some of the things I have said on

the record--

MR. D.W. BELL: He means the Commission.
C

MR. GASTON: A General?

H.M.JR: There are only about four of us here who
are not Civil Service. Do you want to start something?

H.M.JR: A General who has lost an are or leg.
MR. GASTON: A General might be too old. I'd let
it go as low as a Captain.

(Laughter)

Min LUXFORD: I heard they are going to make you

Civil Service.

H.M.JH: I didn't specify any rank.

H.M.JR And without going into the record, I had
very, very--1 can't explain It, but I had & very disappointing experience with Tom Clark. So I an glad
it cane as early as it did, and all I can say is

MR. D.W. BELL: General McAuliffe.

H.M.JR: I specified the qualifications but no rank.
MR. GASTON He must have picked Bradley for the

whenever you fellows meet him have both of your fingers
crossed.

veterans job, didn't he?

H.M.JR I don't know, but I thought you said the

MR. D.N. BELL: I heard & nice conversation between
you and him.
MR. O' CONNELL: Something has happened since then,

apparently.

H.M.JR: Yes. Well, he proceeded me and doublecrossed me after that afternoon.
(

President thought it was better to take a man who was
wounded, a veteran, so I called up McCarthy today and
he said to give him a day or two and he might find
somebody. He's the secretary to the General Staff.

154

153

-7-

H.M.JR: Charlie, try to work it out to do it

MR. GASTON: Oh.

with Thomas.

H.M.JR: And sort of an aide to General Marshall,
secretary to the General Staff. He's got the job
Bedell Smith originally had.

MR. C.S. BELL: All right, sir.
MR. D.W. HELL: He came back on the plane the day

I was in Detroit and indicated he was friendly to

MR. GASTON: Yes. I considered calling over there
yesterday. I an glad you did call.

Treasury.

H.M.JR: How about Cochran?

H.M.JR: And Charlie is getting lets of people for
us.

MR. GAMBLE: We have a lot of post-war plans to
take care of all our people.

MR. C.S. BELL: I don't think we'll have any trouble
getting people for the whole drive. I set the pattern up
In New York. That was working well yesterday. We hired
twenty-two out of thirty-nine we interviewed the day

H.M.JR: Through Robert Moses?

MR. GAMBLE: Partially. The City voted the other
day to go ahead with this public project in about fifteen

before.

or twenty square blocks downtown.

H.M.JR: & bonds are looking up each day.
C

MR. GAMBLE: Yes, air, they are. Mr. Secretary,
in connection with this employment of these men,
wouldn't it be a worth-while activity to take a couple
of the top labor production centers like Detroit where
the CIO and AF of L might have a couple of hundred
surplus people that this would be public relationswise a gesture to move in and find out.

H.M.JR: I wondered, Frank, whether we should ask
the State Department in view of the T. V. Soong and Kung
business, whether we shouldn' t tell them about Kung coming
in here, and ask them if we are doing the right thing?

MR. COE: It would be a good idea. I don't think
they really--inform them and ask them if they know anything, but I don't think they do.

H.M.JR: That's a good idea.

H.M.JR: I didn't want to ask Kung this morning,
"Are you the guy I should do business with?"
MR. COE: I would talk to them, but as I say, I know
they don't know. It's as confused to them as it is to

MR. GASTON: Yes.

H.M.JR: It's a good idea.

us.

MR. C.S. BELL: Detroit is on the list.

MR. D.W. BELL: I think they ought to find out.

H.M.JR: If we could do it--

H.M.JR: Huh?

MR. GAMBLE: Talk to Thomas.

MR. D.W. BELL: You might be carrying out negotiations
with Kung the next month or so and find out he has no
authority.

MR. LUXFORD: Be in consultation with Thomas.
C

MICROSTATI

PRECISION

MICROFILM

ROLL NO.

156

155

-8H.M.JR: Who did you suggest?
MR. LUXFORD: Shields.

H.M.JH: He's going to get a ruling from the
Generalissimo, ha, ha, ha!

H.M. JR: Shields?

MR. LUXFORD: The fellow the FBI arrested. (Laughter)

MR. COE By the way, I think it will come
back to Kung, because he is still head of the Bank,
and they are the ones who give us the money.

H.M.JR: It's Service. You were pretty close.
I recommend the PM article of Stone's yesterday is
very good.

H.M.JR: Well, I had nothing. I just thought

Did Krock,or Frank Kent,or any of those men leak?

it was a good week.

That's all right.

MR. PEHLE: I think the State Department made a

major blunder by that and paid for it.
H.M.JR: You look awfully satisfied about it.
@

MR. PEHLE: Yes, I am.

It's like Rankin's move against the PM report.
H.M. JR: White, have you got all your Sens tors
lined up, educated, and on their toes, ready to go?

MR. WHITE: All but--let's see, there are twenty
in the Committee--all but nineteen. Glass is all

ready to go. (Laughter) He is liable to go any
minute.

We made appointments with a few of them, but

they don't seen to be interested.
(The Secretary holds a telephone conversation
with Mr. Grew.)

MR. WHITE: Senator Capper, according to Luxford,
stated that he is on the Committee--the Republica
Committee--and that the vote in the Senate would be
the same as in the House.
MR. GASTON: Gapper said that?
MR. WHITE: Yes.

H.M. JR: who did he say that to?
MR.it.LUXFORD: The press, apparently. The press
reported

H.M.JR: Really? Capper is a smart fellow.

PRECISION

MICROSTAT

MICROFILM

ROLL NO.

158

-10

MR. GASTON: I thought it was a pretty good idea
because we had to meet him sooner or later.

MR. GASTON: Yes.

MR. PEHLE: He agrees with us.

H.M.JR: I haven't got anything else. I asked
the President about leaving the tax bill just as it
is and he thought that was all right.

MR. O'CONNELL: On this, we hope.

H.M.JR: well, Herbert?

MR. WHITE: Before you went to the House you spoke

MR. GASTON: Isn't he pretty thick with O'Neal?

to Hannegan, the Speaker, and all the rest. Do you feel
it is necessary to duplicate that with the Senate?

H.M.JR: I don't know. He's from the Middle West.
They are fairly important.

H.M.JR: Not with this vote now, I don't think. The
vote speaks for itself.

MR. WHITE: Have you talked to Hannegan since the
vote, Mr. Secretary.

MR. O'CONNELL: We had lunch with Hannegan and the

Senators, remember?

H.M.JR: I had him for lunch that day.

H.M.JR: Sure.

MR. WHITE: I see.
O

MR. PEHLE: The PM says he's a great supporter
of yours.

H.M.JR: Hannegan had lunch ten days ago on the

MR. WHITE: Well, I thought if it's been since--

MR. 0 CONNELL: We talked about everything but
Bretton Woods. We talked about Bretton Woods to
some extent, but they wanted to talk about salary
raises. We talked about Bretton Woods and they
talked about something else.

H.M.JR: I left that to you. (Laughter)
MR. D.W. BELL: We are hoping to get that one, John.
H.M.JR: Did you ever see more gigglere?

MR. GASTON: I would say naturally you are going
to go before the Committee formally.

MR. GASTON: No.

H.M.JR Tuesday?

H.M.JR: I had a very pleasant hour and a half
luncheon with Hannegan, very, very, pleasant. In
fact, he would have stayed another hour.

MR. O*CONNELL: We are going to have a hearing.

H.M.JH: Mrs. Roosevelt is delighted to go on the
air and she will ask Elliott whether he will go.

MR. GASTON: Did you get my note that I missed
him today? I am going to call him from Chicago.

H.M.JR: It was your original idea, you know.

MR. O'CONNELL: Mr. Hill, Mr. Barkley and--

Hill with all the leaders in the Senate which Mr.
Joseph "Connell participated in.

H.M.JR: Yes.

11.

(

160

June 9, 1945

159

2:43 P.M.

Mr. Joseph

MR. GAMBLE: We sent a story on this today. It's
late, and we won't get a radio page coverage on "We
The People because the Sunday papers have already
gone to press, but we'll get something.

Grew:

Good afternoon.

HMJr:

Good afternoon. I thought I ought to tell

H.M.JR: Don't you think it's good (indicating

script for We The People program for June 10, 1945 n

MR. D.W. BELL: I don't like the first page.

Well, T. V. is now in town.

H.M.JR: You don't like it?
HMJr:

MR. D.W. BELL: I think it's a little confusing
the way it starts out with Guy Helvering and saying,
"I'll tell you what Treasury is going to da" and then
going back to Guy Helvering. I don't know.

HMJr:

H.M.JR: I as looking at you, Fussell.
MR. FUSSELL: What an I supposed to say?

H.M.JR: You are supposed to say, Tell him to go
to hell:

HMJr:

embarrass you because.

The Chinese government for the excenses of the
United States Army in China.

I see.

HMJr:

We've paid up to the first of October.

Stay behind a minute, Fussell, and re'll look it over.

HMJr:

Well, Harry, I wish you luck the rest of the afternoon.

MR. WHITE: I've got my pen full of ink. (Laughter)

Well, I didn't want to do anything that might
Well, thank you. This has to do with what - with..

will your

probably say that he has to do it.

HMJr:

H.M.JR: I suggested that but they say we went in
with a former Commissioner of Internal Revenue in order
to make a tax case.

(Laughs) I don't blame you.
So.. I don't know - I just wanted to be reassured
by you or the Department that we should go ahead
with Kung on this phase of it.

It is a little difficult. if I ask T. v. he will

MR. D.W. BELL: Be yourselves. Let your conscience
be your guide.

MR. D.W. BELL: I wondered if you didn't want to
say, Former Commissioner of the Internal Revenue?"

Yeah, and I just didn't want to find myself in
the middle of the royal family.

Well, I think we will have to look into that.

MR. WHITE: Now, now, Fus.

MR. BLOUGH: Do you want to build up Guy Helvering?

you that Dr. H. H. Kung, the Chinese gentleman,
came in today to see no and now he claims he
is the man who should negotiate for the pay
that the United States Army owes then. Heretofor we had conducted negotiations with him
for the Army in consul tation with the State
Department, but about a month ago Mr. T. V.
Boong said it was up to him to do it.

Yes.

And since then we have not paid then.

But you negotiated with Dr. Kung up to that
point, is that 117

HMJr:

That's right. Then he was taken 111.

Yes.

Then T. v. came in on the scene, and he asked

as about it and I said;Well who should I
negotiate with. We are waiting."

memorandums this morning which I haven't had the

Teah.

HMJr:

change.

And he said, *Well, with me. Then, of course,
he's been away and today Kung comes in with a
lot telegrame in Chinese which he says are
from the Generalissim saying why didn't we
do it yesterday.
So I said for the very good reason that we
have been waiting for some representative of
the Chinese government to come in and ask us.

Well my guess would be that the only way to
do that 18 to telegram out to Pat Burley and ask
his to get a ruling from the top from Generalissimo. because if I ask Boong he is almost sure
to say that he wants to do it ask Kung and he
will say that he wants to do it.

HMJr:

Reans tell you about that message from Hurley?

HMJr:

Have we a oopy of that message?

HMJr:

Yes, you have.

t_came through us, did 117

HMJr:

I see.

HMJr:

Our message went out through State and the answer

HMJr:

from Hurley.

now let me see, I'm not sure I

know that.

HMJr:

I will. Now about the other thing. Don't you
think the only thing to do is for us to send a

The thing that I asked Reans to speak to you about

was this. I mean I took it upon myself to ask

HMJr:

going on here just as matter of courtesy.

HMJr:
G:

HMJr:

Soong is going to be around here until about the
15th.

HMJr:

Yes.
G:

Which we did. Then he comes back with a long
message saying why ask his advice and he disagrees.
It is quite a churlish message.

I suppose so.

I don't see what else to do.

State Department to advise Hurley what had been

If you don't mind.

telegram to Thurghing to get a ruling.

I mean I thought it was a rather churlish message
Oh, well, I

came back through the Navy.

I see. Well, I'll look into that.

Well

No, it came, strangely enough, through the Navy.

HMJr:

I hope you will do something about that.

Well, if you would have a look at it because I
don' think for the record, either for State or
Treasury, we ought to let that message of Hurley's
stand.

Did you see what happened to that message? Did

Yeah.

HMJr:

Oh, no, I haven't seen that.
And then in it, he also complains that it took
ten days to decode it and it was all terrible.
He sent a copy of it to the President. I thought
it was in very bad taste, and I told Reams to tell
you the story.
I'll Reams has sent me two or three
Well,

HMJr:

Yeah. It is a little embarrassing.
Well, would you like to have me do that then?

I'd appreciate it if you could do it today.

163

Oh, I can do it right away. It sometimes takes
a couple of days for a telegras to get over there,
but I'11 do it as quickly as we can.

HMJr:

Well, I would appreciate it.

All right I'll do that right away.

HMJr:
G:

Thank you.
Thank you.
Good bye.
Bye.

165
PAUL BROWN

164

- Draw -

MANKING - CURRENCY

COMMITTEE

- CUMMENT

CLARENCE . KILBURN

CAFFRET

Congress of the United States
House of Representatives

Congress of the United States

Washington D.C.

House of Representatives

June 9. 1945

Washington D.C.
June 9, 1945

The Honorable

Honorable Henry Morgenthan, Jr.

Henry Morgenthan, Jr.,

Secretary of the Treasury
My dear Mr. Morgenthaus-

The Secretary of the Treasury.

Washington, D. c.

Dear Mr. Morgenthaus

I an pleased to acknowledge receipt of your letter of June
8, 1945, relative to the vote on Bretton Woods.

I have always been for all legislation in the interest of

International cooperation. I voted for the draft bill, the

I appreciate your letter of June 8.
Like you, I as gratified that the Bretton foods
proposal passed the House by such a large majority.

extension of the draft; for lend-lease and the extension of
lend-lease; to repeal the Neutrality and UNREA. I always
felt that Bretton foods was non-partisan and the only thing

Sincerely yours,

I was anxious to do was to do a good job and I WOOD delighted

to see it work out as it did.

Power Sowee

Sincerely yours,

Oarence E.Fillum
Clarence E. Kilburn, N.C.

CEX/c

PB-C

167

166

Congress of the United States
House of Representatives
Mashington D.C.
9 JUN 1945

June 9th, 1945.

My dear Dean:

Hon. Henry Morganthau,

After the overwhelming vote of the

Secretary of the Treasury,

House on the Bretton Woods Agreements, I

Washington,D.C.

think that the course of the legislation

should be greatly eased and I know that

Dear Mr. Secretary:

this is due in no small part to the

I sincerely appreciate your splendid

enormous effort which you have made. I
want you to know that I am very grateful

message of the 8th. I feel repaid for all the
long hard hours we put on this legislation, now that
it has passed the House so overwhelmingly. It 18
indeed kind of you to give ne 00 much credit for its

to you for the fine job you did both at
since last sumer.

Bretton Woods and throughout the country

Sincerely yours,

passage.
(Signed) Heary

With every good wish, I an
Very sincerely,

applant

Honorable Dean Acheson,

Assistant Secretary of State,
State Department,

Washington 25, D.C.

JPM/n

RBiie
9/6/45

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