View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.


The success of the proposed program will depend upon placing
ctcoplete responsibility for its execution in a responsible Weart Coast
agency acting under th@ general direction of the local military authorities*
I. - Scope of Problem
The evacuation on short notice of tens of thousands of persons
fro*?* Military Areas on the Pacific Coast raises serious problems la connection with the liquidation of their property holdings end the protection
of th© property of such persons against fraud, forced sales, and unscrupulous creditors• Obviously th® emergency will caus© financial loss to the
group Involved, However, the following program is intended to accord to
thie group reasonable protection of their property interest* consistent
with the war effort.
II. - Legal Authority!
Since the pro^ras, is one basically to assist the evacuee in the
liquidation of his property, it is eapoetod that in most instances the
evacuee T«111 voluntarily avail himself of th© facilities afforded by thie
program. Governmental sanctions will be necessary to deal with creditors
and others vifao seek unfair advantage of the evacuees. There Is araple
legal authority now vested in the military authorities and in the Treasury
Department which can be delegated to such West Coast agency to deal with *
this problem without necessity of obtaining further legislation or new
executive orders*
III* - Administration of Programs
fha nature and urgency of the situation, coupled with the large
volume of transactions that will require prosapt handling, necessitates
the prograa* a being administered by *& agency on the Eeat Coast cloaked
idth full authority to act without reference to Washington. The over-all
control of all aspects of the evacuation saist obviously rest in the military authorities. Subject to this over-all control by the Anay, tfe© direct
responsibility for the execution of th© property aspects of the program
should be placed in the Federal Reserv® Bank of S&n Francisco, v*hlch has
branch offices in Los Angeles, Seattle, and Portland. fh« Federal Reserve

Bank will be ia a position to obtain th© cooperation of other Government
agencies, and of well-kruywn and experienced individuals and institutions
in the various cosisainities throughout the West Goast area. This cooperation, together nith th« established integrity and ability of the Federal
Reserve Bank, v i H enlist the confidence of all of the affected groups
and discourage gouging by creditors or other self-seeking interests,
The Feder&l Eeserve flank "will also work in close liaison with
the Federal Security Agency, the United States Department of Agriculture,
and other Federal, State* and local public agencies that can be of
assistance in dealing with th® property during the course of its liquidation* Theae agencies will undoubtedly be called upon by the military
authorities to handle other aspects of the evacuation problem^ such as
th® transportation and resettlement of th® evacuees, and their
In new areas•
The federal Reserve Bank of San Francisco, which is the fiscal
agent of the 'Fre&swy B©partis»nt, will be clothed with ample authority
to execute the program. The Treasury Department will lay M m the broad
principles and objectives of such program as well &s the general procedure
to be followed* The Department will also fiarnish the San Francisco Bank
by airplane is&th th© requisite number of tr&ined experts to assist in
working out th® detail* of the program in th© field an«i to p&rtieip&te
In its execution* If need be ta« Bep&rtmeiTt is in a position to provide
the San Francisco Federal at once with 100 or aortr men for this
Th© keynote of thia program ia ©peed. It is believed that it
can b# put In operation by Monday, March % 1942#
IY - O^tljjae of., ffl
A» Properly staffed offices under the direction of th« Ban
Frsnolsco Federal Reserve Bank ndll be opened at once in the local
froa which evacuees will be moved.
B. Announcement vrill m ruaie throughout th© area bj the Federal
Bank of San Francisco that its representatives in these offices
&r® prepared to assist evacuees with the problem of .liquidating their
property and protesting them against those seeking to take unfair advantage of their plight*
C, These representatives will assist in putting the evacuee© in
a position to obtain buyers, lessees, asrf other users of their property
on fair terms. In oases where the evacuee is unable to select his own
agent to dispose of his property, the Federal will be prepared to act as
agent for the evacuee under & power of attorney or similar arr&ngeaejit and
take ®t$ps to liquidate the property on fair terms.

- 3£• Evacuees threatened by creditors will be encouraged to
come to tha representatives of the Federal for advice and guidance*
The Federal representative will also discuss the matter with the
creditor with the view to working out a fair settlement and limiting
the remedies that may be pursued by the creditor who threatens unfair action* By and large the laere existence of thia program of
helping evacuees will eliminate or forestall most of the sharp practices that are now feared*
E* In some cases the property of the evacuee may be such
that ita real value can only be realized at a future time, **£•# *?*P~
anese novelties* In such cases the Bank's representative will assist
the evacuee in arranging for the storage of such property it that le
the wish of the evacuee*
F* On agricultural properties the Bank's representative*
with the assistance of representatives of the 0. 3. Department of
Agriculture. w i H attempt to arrange for the leasing or sale of such
property or if need be for the growing of the crops, with i view to
preventing their loss through inattention*
$* The Federal Reserve Bank of San Francisco and its representatives will be cloaked with adequate authority to cope with
problems arising <m the basis of existing circumstances. The program
will be flexible and at all times the Bank will attempt to keep matters
on a voluntary b&els, satisfactory to the evacuee* Where these efforts fail it may be necessary for the B&nk*s representative to step
In and take the property over for the purpose of obtaining a fair and
reasonable liquidation*
It is expected that the setting up of this program and the
accordance to the evacuees of facilities for the liquidation of their
property should greatly expedite the departure on a voluntary basis
of the evacuees from the military area*