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• 12 • BOARD OF GOVERNORS OF' THE FEDERAL RESERVE SYSTEM R-947 WASHINGTON ADDRESS DF"F"ICIAL CORRESPONDENCE TO THE SOARD Janua!'IJ 13, 1942 Dear Sir: .. • • ·... The Board's circular letter R-91.6, dated January 12, 1911-2, 1•;ith regard to rumors to the effect that the Government intends to confiscate all savings deposits, contained a statement that 11 the Department has advised us informally tba.t it has not issued a formal press release on the subject." This letter was dictated on Saturday, January 10, but ua~:. mimeographed and distributed under date of Janu.::•.ry 12. Howaver, this morning's edition of The Wall Street ~1rnal carried the following news item: "Savings deposits confiscation is not being considered by the United States, Secretar.r Morgtmthau said at his press conference. He issued. the statement as a denial of 'recurring rumors' that the government has some such plan in mind. Tho head of the Treasur.r nlso S<J.id he knev·i nothing n.bout reported plans to freeze savings accounts 8.t certain levels or to impose a tax on savings deposits 11 • We thereupon made further inquirJ of the Treasury and obtained a copy of the Treasury's press announcem.ent #29-L"8' which apparently was givea to the newspapers 11 for irumedi3.te release, Monday, January 12, l9h2 11 • A copy of the formnl statement in question is being sent you herewith for the completion of your files although in substance it is the same as the individl.!al communications, copies of which were forwarded to you v•ith our letter R-946 of yesterday. Very truly yours, Chester Morrill, · Secretary. Enclosure '1'0 THE PRESIDi£NTS OF ALL FEDEHAJ. . F;.ESERI/E BANKS • • 13 • R-947-a TREASURY DEP AH'lrMENT Washington Press Service No. 29-/+8 FOR IMlJF.DIATE RELEASE, Monday, January 12, 191;.2. In view of recurring ru11ors that the Government was planning to confiscate savings accounts, Secretary Eorgenth"l.u today entered an emphatic denial that this was so. "I wish to state most em;Jhaticn.ll;;r that there are no fotmdations whatever for such :cumors, 11 :t.Ir. Morgenthau said. "'l'he Federal Government doos under consideration an;)~ r~ot have proposal involving the co"lfis- cation of savings deposits of this country for any purpose. "Furthermore," he added, "any one circulating ' .'1_ ru'Tlors of this character is acting against the welfare of the nation. 11 -oCo- " •
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