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1.:13
BOARD OF GOVERNORS
DP' THE

FEDERAL RESERVE SYSTEM
WASHINGTON

S-i...26
ADDR&aa Df?ICIAI. CDRR&aPDND&ND&
TD TH& aDARD

January 16, i942

Dear Sir:
As you knovr, unJcr dace of December 19, 1941, the ?resident
of the Ur.it.ed Sta":.f:'s .issued ar~ !::xec'.ltiYe Order esb.blishing the 0!fice
of Cer.sorsltip. In addiJvi".~n t.o a Director cf C,:;nso~~st:ip and a Censors'!:ip Po!.ic~,. Boa.M the Order establist-s.;; a Cem:orzr.i:' Op.ers.ting Board
consisting of re:...:resent3.·::.iv~s c.r such agencies of th·J Gov\;'!r~ent as the
Director of Censorship shall 5pc:cify. Under date <)f !:.;;ceu.aber 23, 191_.:,
a request w&s receiv0d from th~ ~ir~ctor of Can~0rshi? that t.hs board
of Governors dt::.signat-". ;., r..;!,pr~.::;"'ntat.ivc en ti1e r)p£:rating Board and in
respnnse to this r(:0..U.I.:lSt til~ lk~d d(~sigm.:.ted Gov~rnor Drt.lp\-:r to serve
in that capacity. In his rumou:1cc:~ucnt of tho m;.;n.bers oi'. t.h·J Operating
Board, the Director of Censo.1·ship stated.:
"The Oper:.:.tinr, boar>.' ie t.te l."\eans oy :..-hi ~h the Office cf
Cl3Usorship ut.ili~~s the :.:"IJM(.!iF..:azcd t:!Ctivit.ies of these agencies in the censorship oi' international co,:ur,;mict'!tions. For
example, the TreasurJ Depa~~ent furnishes expert assistance
in the censorship of arti~.;.ee passing through it.s Buren.u of
Cust0lds. 11
Section 3(c) of the Tr~~ding ~:ith 'n;e fu~ Act prohibits com.tllunication by any means ':n:.:.h. an enenw or ·!-n a.l~r of an i-.!Deli\Y unltJss the
cummunication is 11-.;ensed or e.x:::mpt:.ed. 'Jy tm F.Jeecutive Order dated October 12, l917, the authority to isi:ue lic(.mses and exemr>tions was conferred by the President upon the Secreta!"'.( of the '!'reasu1•y and the 1att.er
·.vas autho:-ized to design~:te other agencios tc c~rr-.r out t.he au.::.hority
~i th respect to licensing and e.:<t~m?tions vested in hi£.
On iiecE>..m.'l:>er 24,
1941, the Secretn~r o.l the Trea:1UT'J signed a d9s1.~la~ion ves~.ing in the
Office of Censorsl"..ip the I\Ut!1uri ty tc issuE· li~er.ses <~nd exet.:pti•:>ns in
connection with comm.unicat.ions :;ith a.-1 ener.:y or "'n ally ::>£ an enenw and
this designation was apf-roved by t~c Presi~ent on Jec~cer 26, 19Ll, thus
·.resting in the Oi!'ice of CE-nso:-ship al.l of the C·ut~;tanding operating
authority Tiit.h resp<?.ct to cen.s:;·rship ;natt;:rs. !Jncler the authority ot the
designation above r~f~rred to t~it. Dir·l:ctor of Ct:ns ...rship has issu0d a
licer.se to th(; r\;d.era1 Kc..::.c:rvc .l3an~t.: of i~ew York to cor.J:hunica.te by radio
and ca~le ~«ith cert~:.in forci 6'1·; contral bunks and a similar lic.::mse covering mail c~unicaticn is ir. proc~ss.




114
-2Copies of the President 1 s &'Cecuti ve Order creating the Office
of Censorship and the designation signed b;r the SPcretary of the Treasury are enclosed v:ith this letter.
Should any questions arise at your Brmk with re~~pect to censorship, we shall be pleased to have you i'orvl'ard thr:m to the Board of
Governors for consideration, and, if necessa!"J, for submission by Governor Draper to the Office of Censorship.

S. R. Carpenter,
Assistant Secretary.
Enclosures 2

LE'l"TER TO THLI. FRESIDbNT.S OF ALL FEDERAL F.ES.S:HV E BANKS




:1:15

ESTABLISHING TH.l.;. Ol''FIC@ o~· CEI:~SOitSh'IP .Aim
PRESCRIBING IT$ r'UNCTICNS AI'!D DUTIES
By virtue of the aathority vested in me by the Cvnstitut,ion
and the statutes of the United States, an1 }:tarticularl.r by section
303, Title III of the act of December 18, 1941, Public La~ 354, 77th
Congress, 1st Session, and deeoing that the p~blic safety demands it,
I her~by order as follo~ve:

1. There is hereby established the Office of Censorship,
at the head of which shall be a Director of Censors~ip. The Director of Censorship shall caus6 to be cen3ored, in r~s absolutG discretion, COOlll'lU.Ilications by mail, cable, radio, or other means of
transnussion passing cet-.;..-een t.he United States and !J.t!Y i'oreiJll
country or which IIW.J be carried b3-· ~.r:y vessel or other means of +.ransporta.tion touching a":. any port., ?l~ce, or 'fe!"ritor,r of the United
States and bou."ld to or from any !'oreif:l1 count:rj·, in -:.c:~ord~Jnce with
such rules and regu_l;;~ t.i•.)IlS as thG Pre&io.ent s~tall from time to time
prt3scribe. Th;;; ast.;::olisb.-n.ant of rules ::nd r~gul:.tions !11 ad·.tition
to t!1e provisior.s c:· t.:-11& ord.::-r s:.irill .n0t. be r:-. condi+.ion ~o "th-3 exercise of the powers herein gr.!lnted or the censorerJ.p by this order ,iirected. 'rhe seep-; of t.i'.is order sh:.tU include all foreign countries
except such as ~· hcr.:-r...ft:.:r he ex.pr~ssly excluded by regulation.
2. 'l'hsre ls hereb7 craat.;;d a Ce:.1aorsnip Policy Bo~rd,
which shall c.)nsiet of' ~te Vioc-Prcsid;:;l:.t. of tho::: United State-s, the
Secretary oi' the Tr.aasu..7, the S~cr·~tary of iNa.r, the Attorney General,
the ?ostmaster Generc;..l, the Secr$t8rf of the NE.vy, the Director of
ths Office of Government Repo~s, and the Director of the Office of
Facts and Figur·es. '.i·he Postma.stor Gen'->ral sh~.ll act a$ Chairman of
the Board. The Censorship Policy Boa~l shall ~dvise the Director of
C(;:nsorship with respect tv policy :md the coordination and integration of the censorship herein c.irected.

3. The Director cf Censorship sh'ill .astl3.blish a Censorship
Operating Board, which shall ccn$iSt ~t representetives of such departments :md agencies of the Government ae the !Jirector shall specif:r.
&.ch representative sr..-'1.11 'be desi&n'?.te:i ~y the ht:.t.l:i o.f thE: dep~!4cmt
or agency which ha represants. The C':'ns~rehip Opara.ting Board shall,
under the St4perviftion of the nirector, pe:-form such duties with respect to operations ~s the LiTector sr~~l determine.
4· The Director cf c~nSO!'Ship is authorized t.. o take ~.11
such measures as mr>¥ be nece.seary or expedient. to adzi!..inister the powers




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S-426--a

-2-

hereby conferred, and, in addition to the ut:!.lization of existing
personnel of any department or agency available thf;)refor, to employ,
or authorize the employment of, such additional personnel as he rna;7
deem requisite.

5. As used in this order the term "United States" shall
be construed to include the Territories and possessions of the
United States, including the PhilipJJine Id.ands.

FRJ\.NKl...IN D. ROOSE..VELT

THE hHITE HOUSE,

Washington, D. C.,
Deca~ber




19, 1941,

S-426-bff?
Procedure for administering the duties imposed upon the Secretary of the
Treasury by Articles XI and XIII of Executive Order No. 2729-A~ dated
October 12 l 1 n under the Tra.din · t~-ith the ene. ·
Act of Oetober
• 1917.
TREASURY DEPAE.Tlv1ENT, December 24, 1941

To officers of the Treasury Department and others concerned:

By virtue of the authority vested in the Secretary of the Treasur,y by
Executive Order No. 2729-A, dated October 12, 1917, I hereby adopt the
following administrative procedure deemed necessary and proper for the
executive administration of Article XI, vested by said Executive Order
in the Secretary of the Trcasur,y; such administrative procedure to remain in effect unless and until modified or supors0dod by direction of
the Secretary of the Treasu:rJ.
(1) I hereby d0signa.te the Office of Censorship to act as the age:ncy
of the Secreta:r-.r of the Treasury to a.dr.d.nister the authority vested in
the SecretarJ of the Treasury r0la.tlve to tho sending, t:1king, or transrutting, or <J.ttcmpting to send, take, or transmit, out of the United
Sta.te3, and to issue licenses and exemptions under such regulations or
conditions as tho said Of:'ice JTh'1.y from t:in1c to ti..':'..e prescribe, to send,
take, or transmit out of the United Sta.tes, o.ny letter, or other writine,
book, map, plan, or other paper, picture::;, or any telegram, cablegram, or
vtircless message, or other form of com."ll.unication intended for or to be delivered, directly or indirectly, to an enemy or ally of enemy. All applications for such licenses shall be made to the Gffice of Censorship in
the form prescribed by it.
(2) I hereby designate the Bureau of Customs in the Department of the
Tree.sury to administer a.nd to issue licenses (except licenses to send,
take, or transmit out of the United Stc:.tes any letter, ·writing, or tanb~ble form of co~£lunication intended for or to be delivered, directly
or indirectly, to an enemy or ally of enemy) in r(JSpect of the authority
vested in the Secretar,y of the Trcasur,y under Articl\.; XI of sD.id Executive Order relative to sending, or taking out of, or bringing into, or
nttempting to send, take out of, or bring into, the United States any
letter or other writing or tangible form of communication except in
the regul<l.r course of' the mail.
(Signed) H. MORGENTHAU, JR.
Secretary of the Treasury.
Approved, December 26, 1941
The White House.
(Signed) FHANKLIN D. ROOSEVELT