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FEDERAL RESERVE BANK OF DALLAS
F I S C A L A G E N T O F T H E U N IT E D S T A T E S

Dallas, Texas, September 14, 1942

To All Banking Institutions, and Others Concerned,
in the Eleventh Federal Reserve District:
On September 11, 1942, Secretary of the Treasury Morgenthau issued
the following statement:
“ The impression seems to have spread that I regard the voluntary
War Bond program as a ‘failure.’ This is not only a distortion of any­
thing I have said on the subject but it is also an injustice to the hun­
dreds of thousands of devoted volunteers in all parts of the country
who are working night and day to enlist the nation’s savings for the
war. In view of our swiftly rising war expenditures I have said that
the voluntary War Bond program alone cannot close the gap between
the amount of money available for consumer spending and the supply
of goods available for civilian use. I have said that it must therefore be
supplemented by a more drastic and comprehensive tax program, includ­
ing a tax on spendings, a part of which would be treated as a debt to
the taxpayer and repaid after the war. We shall, however, continue to
rely upon voluntary lending for a large part of our financing. The
mounting requirements of the war demand that our sale of War Bonds
be continued and intensified. As I said to the Senate Finance Committee
last week, it is my belief that the voluntary War Bond program has
produced and will continue to produce a great contribution to the
nation’s war effort. Regardless of the other measures that are needed,
the voluntary savings program will be essential until the war is won.
To our hundreds of thousands of War Bond volunteers, I should like to
say that the nation is counting on them more than ever to carry on the
magnificent work in which they are so unselfishly engaged.”
If such an impression as that referred to in the Secretary’s statement
prevails in your community, your assistance in correcting it will be very
much appreciated.
Yours very truly,
R. R. GILBERT
President

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)


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