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April 22, 1942

Dear Marriner:
I am sending you herewith a
copy of a very interesting letter
which I have received from Sir
Frederick Phillips on how they
are financing the war in England
through the volunteer system.
Sincerely yours,

Honorable Marriner S. Eccles,
Federal Reserve Board,
Washingt on, D•C•


The Yvillard Hotel
Washington, D.C.
April 18, 1942

Dear Mr. Secretary,
I passed on to the Chancellor of the
Exchequer your enquiry about special campaigns for raising
funds in the United Kingdom, and he has now asked me to give
you the following message.
The Y f r Ships Y/eek campaign was organized by
the National Savings Committee and its Scottish and Ulster
counterparts. These central committees are responsible under
the Treasury for the conduct of the Y*ar Savings Campaign and
operate through a network of approximately 1470 voluntary
local committees covering the whole of Great Britain and
Northern Ireland. Veil over 95% of these committees organized
a local week during the period of the campaign.
The series is not quite finished, but to
date it has raised $26 million pounds. The similar War Weapons
Week series in 1940-1941 raised 460 million pounds. The appeal
is confined solely to subscribers to Viar Loans as the Treasury
has avoided making any official appeal for gifts to the Exchequer
on the ground that this form of patriotism should be left to
individual initiative. The series has, however, stimulated a
considerable number of gifts and loans free of interest.
The fundamental idea of the Week was to link
an appeal for subscriptions to V/ar Loans Kith the Royal Navy
by "adoption" of H;M. ships by the communities holding the
week. Each community chose as a target for its week the cost
of ouilding a particular class of vessel and a vessel of this
class was then allocated to it by name. The week was marked
by service and civil defence pageantry centering round this
name and special centers for sale of securites were set up
throughout the district. If the target figure was reached (as
it was in practically every case) the community then "adopted"
its warship and a suitable exchange of courtesies and trophies
was arranged to mark the occasion.
As regards large and institutional investors
it may be that some money which would normally only be made
availabe to the Government on short ter:: loan through the banks
(a type of loan which did not count in the Warship V*eek total)
has been diverted to dated loans and has to this extent eased
our problem of post war finance, but such diversions should
not be exaggerated. The main effect of the week has been to
impress upon the general public most forcibly the enormous cost
The Honourable
Henry Morgenthau, Jr.
Secretary of the Treasury
Washington, D.C.

- 2of the war and the consequent necessity for the reduction of
civilian consumption to • v absolute minimum and for lending
the resulting savings to tne State. The results of the War
Weapons Week series show that we can hope for a further general increase in the level of personal savings. One further
result of the Veek has been to strengthen the machinery of
voluntary local Savings Committees, to introduce nev, blood
into them and generally to r.ct as a tonic to the War Savings

Yours sincerely,




May 6,

Dear Henry:
Thank you for your note of April 22
enclosing the interesting letter fro» Sir
Frederiok Phillips.
Considering the scope and weight of
the British income tax coupled with oonpulsory
savings, it is reaarkable that so fine a
response has been obtained tr&m this supplemental appeal to the public.
Sincerely yours.

Honorable Henry Morgenthau, Jr.,
Secretary of the treasury,
Washington, D* C,