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8 BOARD OF GOVERNORS OF" THE FEDERAL RESERVE SYSTEM . H-946 WASHINGTON ADDRESS OF"F"ICIAL CORRESPONDENCE TO THE BOARD • January 12, 1942 . • Dear Sir: • • • . - Several of the Federal Reserve Bar~s have forwarded t0 the Board. lettGrs received frou1 bank•)rs in their respective districts reporting instances of depositors r;ithdrawing f1.mds from their savi:1gs accounts because of rumors to the effect that the Governrncnt intends to Gonfiscat...; all the savings deposits. A:i..though the press has published denials of such rum::Jrs by the Secr0tary of the Treasury, the: Department :1.as advised us informally th.J.t it has n8t issued e for::wl press release on the subject. The Treasury has, however, replied indi vidua.lly to inq,_liries which it has received. For your information in V:lis connection, there are enclosed copies of a telegrrun dated December 17, 1941 and tvw letters dated Ju...'1uary 8, 1942, addressed to a State banking commissioner, a bank, and a savings and loan association, respectively, h'J the Under Sccr.~tary of th0 Treasury, emph&tico.lly denying that there are any fonndations who.tevr.;r for such rumors. V..:.ry truly yours, • C:1est.=;r Morrill, Secretu.ry·. •· Euelosu:r·,::,::; ." • 9 • TELEGRAM T~1LASURY R-946-a DEPA::lTrviENT Washington . December 17, 19/.;-l .. Hr. Louis A. Reilly Commissioner of Ba.YJ.king a.Yld Insurance State llouse Trenton, N. J. • Answering your wire I wish to state most emphatically there are no foundations whatever for the rumors and Federal Gov- • ernme:.1t does not have under consideration ru;.y r;roposo.l involving the confiscation of, • deposits of -t,tis cou~t:ry a:~ for any capital levy on, savings JJ\E~pose. AnyonG circu- la"'::.ing rumors of this character ts acting against interests .. cf the Government and the p:;ople of the co1..mtry • .. • ·" D. Vi. Bell Under S(:Jcr~;tar-.r of the Tre:asury • 10 R-946-b TREASURY DEPARTIVIENT Washington .. January 8, 1942 William H. Hagan, Vice President and Cashier, The Peoples Bank, Greensburg, Kentucky. Mr~ ' Dear Mr. Hagan: Receipt is acknowledged of your letter of January 2, • 1942, concerning rumors circulating in your localit~~ that the Government intends to confiscate savings accounts • • I wish to state most emphatical~ that there are no foundations whatev0r for the rumors and the Federal Government • does not have undar consideration any proposal involving the confiscation of savings deposits of this country for any pur- • pose~ Anyone circulnti!lg rumors of this cho:ructer is acting against the welfare of the nation. .. I appreciate your bringing the matter to our atten- tion and I run glad to have this opportunity to furnish you this denial. • .. , • Vei"';l truly yours, (Signed) D. W. Bell Under Secretary of the Treasury. • 11 ... R-946-c 'l'REASURY DEPARTMENT Washington January 8, 1942 Mr. Allen C. Knowles, Executive Vice President, South Side Federal Savings and Loan Association, .3115 West 25th Str9ot, Cleveland, Ohio • • Dear Mr. Knowles: • On behalf of Secretary Morgenthau, receipt is aclcnowledged of your letter of December 19, 1941, stating that because of certain rumors which are apparently circulating in various localities, some depositors of your Association m~ have gained the impression that the Government might confiscate outright their savings deposits • • • I wish to state most emphatica:Lzy that thero are no foundations whatevor for the r.:unors and the Federal Government does not have under consideration any proposal involving the confiscation of savings deposits of this country for any purpose. A:rzy-cne circulating rtunors of this character is acting against the welfare of tte nation. I apprecie.t.e your bring:ing the matter to our attention ar:d I em glad to hr.iove this opportu.'1i . ty to furnish you this denial. Very truly yours, ... (Signed) D. W. Bell Under Secretary of the Treasury • .. • -.1 •
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