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FEDERAL RESERVE BANK
OF DALLAS

Dallas, Texas, January 22, 1942

To all Banks in the Eleventh Federal Reserve District:
Recurring rumors that the Federal Government intends to confiscate
all savings deposits are being circulated in many parts of the country. The
continued circulation of such rumors might lead to the withdrawal of sav­
ings deposits or the hoarding of funds which ordinarily would find their
way into banks as deposits. In connection with these rumors, Secretary of
the Treasury Morgenthau recently made the following statement:
“ I wish to state most emphatically that there are no foundations
whatever for such rumors. The Federal Government does not have
under consideration any proposal involving the confiscation of the sav­
ings deposits of this country for any purpose. Furthermore, anyone
circulating rumors of this character is acting against the welfare of
the nation.”
The importance of financing the war effort to the greatest possible
extent from current income rather than from accumulated savings has
been repeatedly emphasized by the Treasury Department. In furtherance
of that policy, efforts are being made to encourage all employers to adopt a
payroll allotment plan for the sale of Defense Savings Bonds to their
employees, because that is regarded as one of the essential steps in com­
bating the development of inflationary tendencies.
Your bank is at liberty to make whatever use of this material its local
situation may seem to warrant, and there is no objection to the publication
of Secretary Morgenthau’s statement if it is used in its entirety.
Yours very truly,
R. R. GILBERT
President

EFENSE

BUY
UNITED
STATES
SAVINGS
"B O N D S
AND STAM PS

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


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