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Laurence M. Olney




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No one is better qualified to write a history of the War Bond
program than Larry Olney. He was one of a very few career
Treasury officials who were brought in on the early planning
of the Defense Bond program in 1941. He served as Associate
Field Director during the entire war period. From this
vantage point, being a party to both planning and execution,
he is in an unusual position to document not only what
happened, but why.
This work is an important contribution to the history of the
financing of the Second World War . The Savings Bonds Division
wishes to thank Mr . Olney for making this manuscript available
for publication.
Elmer L. Rustad
National Director
U. S . Savings Bonds Division
December 10, 1971

Dedicated to the thousands of volunteers
in the Defense and War Bond program.
1941 - 1945 .

This is a story of the War Bond program during the war
years of 1941 thr ough 1945. It is a story of four men who
planned, organized and operated the most successful promotion,
advertising and government financing program this world has
ever known -- Secretary of Treasury Henry Morgenthau, Jr.,
Har ol d Graves, Assi stant to the Secretary, Dr. Peter Odegard,
professor at Amherst College and Theodore (Ted) Gamble,
businessman, Portland, Oregon. It is also a story of thousands
of patriotic American volunteers who made the program succeed.
These volunteers did not ask what their government coul d do
for them -- they did what they could for their government .
Never question the fact that when the "chips are do,m''
and this country is in danger, the people of the UnitLJ Stotes
will do their part in any worthuhile government program, if
responsibl e leaders tell them what they want done.
One must understand, in writing the War Bond story, it
was impossibl e for any one person to know about every promotion or activity of the program. It covered too much area .
The thousands of volunteers were prominent citizens from
banking and finance, industry, labor unions, schools, advertising, minority groups and every phase of Amer~can life.
After each sta.te was organized they operated in an
independent manner. Programs, promotions and materials
were presented which they could accept or reject. This
was not a military organization and it did not operate as
employer and employee.
It was in September 1939 when I first met Harold Graves.
I had been working on tax fraud cases in Boston as Special
Agent of the Intelligence Unit, Treasury Department. ~JY
Chief, Elmer Irey, had phoned me to report to his office in
Washington at once. I presumed it was another tax fraud
case. It was a surprise when he advised me that Graves
wanted to see me at the Treasury. I was not very enthusiastic about such an interview. Graves had an unfavorable
reputation among the agents of being tough, unreasonable,
and if he thought an agent was inefficient in any way, he
would ''cut him to pieces."
On entering Graves' outer office I couldn't help
overhear Special Agent Barker explain to Graves that he
had been away for over three months and he wanted to
return home. Graves spoke up sharply, "All right, Barker,

you're excused, but I want you to understand you've missed the
boat." On that note I was r eady to leave myself.
With some reluctance I entered Graves' private office and
was greeted with a "Thank you for coming," and a pleasant smile .
Briefly he outlined my new assignment . I was to work with
Agent in Charge Cliff Mack on a thorough examination of the
Procurement Division of the Treasury. This was a large
operation, purchasing most of the supplies and equipment
for all government agencies, except war materials for the
Armed Services.
At that time it would have been hard for me to believe
that for the next five years Graves and I would be working
together as very close friends; that he would become my
ideal of a top government executive; and we would be a part
of a team that would plan, organize and put into operation
the War Bond program.
After about a year of hard work, long hours and many
interruptions caused by special investigations, Grand Jury
cases and conferences, we compl eted the reorganization of
the Procurement Division. If we were going to be drawn
into the war in Europe, this divi sion could be enlarged
quickly. As we were about ready to make our report, Cliff
informed me that Graves had offered him the position of
Director of the Procurement Division and he would like me
to become Assistant Director. I told him I would be interested
if Graves and Irey approved.
A few days later Graves call ed roe to his office,
"Listen Larry, I can't take two top men from the Intelligence
Uni t and put them in one spot . Besides, I have a lot more
work ahead for you. As soon as you f inish your report
you can take a few weeks l eave over the holidays and return
to your home in California . I'll call you when I'm ready
for you . "
It was January 2 , 1941 when I returned to Washington
and reported to Harold Graves. The war had been going
badly for England, and France had fallen to the Germans .
Graves greeted me warmly and explained there were two
divisions he wanted me to examine -- Foreign Funds Control
and the Savings Bonds Division . He asked me to start on
the Foreign Funds Control first as their cases were bogged
down badly and they needed a change in their system of
processing them. He wasn't sure whether they were going
to enlarge the Savings Bonds Division or start a new
division .
A few days' examination of the Foreign Funds Control
disclosed it was necessary that I have some help. I asked

Graves for Charlie Adams who had worked with us in the
Procurement Division. Charlie had been in the Treasury
Accounts section -- young, alert and a good worker . With
his assistance we made good progress .
In the early part of February, at a conference with
Graves, I met Dr . Peter Odegard. Graves explained that
Dr . Odegard had been aslrnd by the Secretary to come to
Washington for a conference on a Treasury policy matter .
At the conference he asked Odegard to present a statement
of objectives for a Defense Bond program. I liked Odegc1rd
at once. He was a professorial type, intelligent and
On February 26, 1941, I had a long conference with
Graves. First, we went over the situation at Foreign Funds
Control and decided another few days' work and the report
could be written. Graves then said, "Larry, you've been
doing a lot of reorganization of government departments,
now I want you to start a new department which we are
going to call the Defense Bond Division. In the meantime
I want you to release Adams so he can set up some offices .
As soon as you finish your report I want you to come over
and get into it."
I asked about the present Savings Bonds Division . He
replied, "We are working that out and it looks like we' ll
probably eliminate that department and tie it into the
Defense Bond organization . "
Due to another assignment, it was not until April 10
that I could report to the Defense Bonds . However, during
this period I had several conferences with Graves at which
he kept me informed on the progress, the decisions that
had been made and the pl ans .
tv'iy assignment to the Defense Bond program was not a
transfer but a. special assignment. It was my understanding,
and Graves did not indicate otherwise, that after a
Washington Staff was established and a field organization
functioning, I would return to my Intelligence Unit.


The first "baby bond" officially known as the Series "A"
United States Savings Bond, was issued March 1, 1935 . Legislation was passed by the House and Senate in January and signed
by the President on February 4, 1935 .
The program was originated by Secretary of Treasury,
Henry Morgenthau, Jr. Previously he had taken a trip abroad to
England and France, where he became impressed by the benefits
of small denominational government bonds offered to the people
at large .
At the time the Savings Bonds were being discussed, the
government was about to undertake a number of programs to
relieve the unemployment situation throughout the country. An
appropri ation bill for $4,800,000,000 was pending -- a huge sum
for those days . This required deficit financing. Treasury
officials wanted to avoid having the new securities held by a
relatively few buyers -- the banks and wealthy individuals.
They believed that widespread holding of the national debt was
a sound principle of government financing.
The Savings Bond was an instrument of government showing
an evidence of debt . It was not a marketable security which
fluctuated in price like the old Liberty Bond of World War I .
It recorded that John Doe had loaned his government a number of
dollars which the Treasury promised to pay back with interest
at the end of so many years. If John Doe needed the money in
the meantime, he could redeem his bond with interest.
There were three sound objectives of the Savings Bond
1. To instill into the minds of the American people the
habit of thrift;
2 . To educate the people with respect to government
3, To bind the people closer to their government, not
only in financial affairs, but for its total well- being -- a
Savings Bond was "A Share in America."
The baby bonds were purchased at 75o/,, of their ten- year
maturity value - - $25, $50, $100, $500 and $1000. They were
registered in the owner 's name, and if desired, with co- owner,
or beneficiary payable on death of owner . They were nonmarketabl e--redeemable at stated cash value. If held to
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maturity the baby bond yielded 2 . 91/o interest . From March 1,
1935 to May 1, 1941 ther~ ware four series of baby bonds issued
-- A, B, C, and D. At the beginning it was the idea to have a
letter of the alphabet represent each year . This was soon
Treasury Department Order No. 13 established the Division
of Savings Bonds under the Office of the Fiscal Assistant
Secretary with Eugene W. Sloan in charge .
During the six years of operation, the baby bonds brought
in almost $4 billion in cash a t purchase prices. This was a
very respectable business since there was no field force, no
sales agencies except the Post Offices and only about 200 pai d
employees. The principal method of promotion was an elaborate
apparatus of circular lists -- a direct mail operation with
folders and pamphlets . They al so had a paid advertising
campaign in nineteen magazines .
There were two features of the program which did not pl ease
Secretary Morgenthau. During the six years there were 1 7½
million bonds sold , over 57% of which were in denominations of
$100, $500 and $1000. The program was not reaching the small
investor. In addition, there was the paid advertising which
the Congressional Appropriation Committee criticized. In their
report the appropriation of the Savings Bonds Division for
1 939 was cut $500,000 . In making the reduction, the Cotunittee
stated they did not approve of large sums for advertising.

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At the conference in early January 1941, Secretary Morgenthau
asked Odegard to present a statement of objectives for a Treasury
program relating to defense, using United States Savings Bonds
as a vehicle . They discussed the part the federal taxation
program would play and what part the bond program should play.
During the next ten days Odegard read the printed history
of the Liberty Loan Drives dur ing World War I, written by
Labert St. Clair. He also read the reports of the Secretary of
Treasury for 1917 to 1920. From these he did not get any
particularly useful information . He then read the annual reports
of the various Federal Reserve Districts . The details were not
adequate and revealed very little as to the actual methods
employed, or the items of cost.
As a result of this survey, there was one definite decision
made by Odegard - - a Defense Bond similar to the baby bonds
should be used . By having a registered and non- transferable
bond, they would not be marketable on exchanges as had been the
case of the Liberty Bonds. At one time the Liberty Bonds dropped
as low as 82 on stock market quotations, while at another time
they had gone up as high as 112. This fluctuation took unfair
advantage of the small investor. Many lost money by buying
Liberty Bonds. Under the registry plan of the baby bonds, one
would always get his full investment back .
Through conferences with Under Secretary Bell, and other
Treasury officials, there ·Here three Defense Bonds created -E, F and G. An effort was made to have as great a continuity
as possible between the baby bonds and the new Defense Bonds.
Therefore, the forms and, so far as possible, the text were
preserved. The three bonds were redeemable at stated cash
values -- the E bond after two months, the F and G after six
months from issue date . Series E and F bonds were accrual
bonds. Series G sold at par (face) value . The Series F and G
were offered for larger investors . With accrued interest adding
to the cash val ue after one year, and each six months thereafter,
the E bond yielded 2. Cf1/o, compounded semi - annually if held to
maturity - - ten years .
In handling the bonds, Odegard and Graves recommended that
the Public Debt section of the Fiscal Service of the Treasury
would act as the agent of issue and redemption of the securities.

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The promotion and sales of Defense Bonds would be establ ished
outside and independent of the Fiscal Service .
The important problem of the Treasury was debt financing,
especially in case of war. The public debt was increasing
rapidly due to defense spending . Treasury officials studied
the problem of diverting excess purchasi ng power, and how to
prevent unnecessary increase in bank deposits . In approving
the Defense Bond program they were guided by the basic principle
of a wide distribution of the debt:
"To the extent that loans are made out of current income
and are widely distributed among the people, the inequities
arising from the final distribution of the burden are minimized ,
and widespread ownership of the national debt becomes a
stabilizing factor of great importance ."
The memor ~ndum by Odegard to the Secretary, covering the
objectives and recommendations of a Defense Bond progr am was
examined by the top officials of the Tr easury and approved by
the Secretary. Odegard did not bel ieve in paid advertising to
sell Defense Bonds . His examination of the Savings Bonds
Division indicated that the advertising and circularizing
campaigns had sold very few bonds to lower income individuals
-- and did not justify the cost . In addition, he believed
the program could be operated by a small paid Washington Staff
and a field organization composed mostl y of volunteers .
There was another important object i ve in the minds of
Secretary Morgenthau and Odegard. Since the outbreak of the
war in Europe i n 1939, the American people were badly disunited.
The Defense Bond program could provide a channel for united
action and participation in national defense -- to eradicate
differences of religion, race and class, section or party -- a
program in which all could work .
To a ccomplish this objective it was a must that politics
would be outlawed. A lot of credit goes to Secreatary Morgenthau
for keeping politics out of the program. An understanding was
made with congressional leaders regarding this i mpor tant phase .
Throughout the Defense and War Bond program I don ' t lmow of a
single instance where there was a definite political appointment.
Probably there were a few cases but we never knew whether a
State Chairman or a State Administrator was a Republican or
Democrat -- the subject was taboo .
On January 29, 19l~1 the Secretary was scheduled to appear
before the House Committee on Ways and Means, to request an
increase in the legislative linri.t of the national debt . He
wanted to insert as a part of the statement something on the
Treasury ' s proposed future bond program. At the request of the
Secretary, Odegard wrote this portion of the statement . There upon, the general concept of the program was determined.

- 4 -

From that time on there was a shift of emphasis to the
ways and means . The Secretary requested Graves to take over the
or ganizat i on of the Defense Bond program and Odegard to remain
in the Treasury to assist Graves.
Agai n the Division of Savings Bonds came up for discussion.
The decisions that wer e made pl ayed an important part in the
success of the bond program. The division was to be retained
under the direction of the Commissioner of Publ ic Debt of the
Treasur y . It would maintain all mailing lists, handle the
dupl i cat i ng wor k, r eceive and warehouse all materials and
suppl ies, keep the fi l es on bonds issued, bonds and stamps
redeemed and ship promotional material to the states .
It was impossible to picture the magnitude of the task that
devel oped from 1941 to 1945 as a result of war conditions and
the i ncreased promotion and sale of the war bonds . The space
and equipment of the division became inadequate. The Washington
postal and shipping facilities were overtaxed, resulting in
several days delay before publicity material could be loaded
and shipped. The Government Printing Office was not equipped
to do four - color printing and was so overloaded with work onecol or process was being subcontracted .
Therefor e, in 1942 the Division of Savings Bonds was moved
to Chic ago -- a central shipping point . Many of America ' s
largest printi ng plants were located in the midwest. The move
result ed in increased efficiency and ability to handle an
extr emel y difficult task.
In order to picture the magnitude of the operation by this
Division during the War Bond program, by 1945 the division
occupied over a million square feet of floor space in three
buil dings in Chicago -- the Merchandise Mart, the Furniture Mart
and the Nash Bui lding. They had the largest card file in
existence, consi sting of: 10 million stubs of Series A-D bonds,
one billion stubs of Series E bonds, three million stubs of
Series F bonds and eight million stubs of Series G bonds.
All War Savings Stamps of whatever denomination exchanged
for bonds or cash were sent there and cancel led. They averaged
about five mi llion every working day. All redeemed, reissued
and spoiled bonds were sent to the division . They averaged
about eight million each month. About 200 million cancelled
bonds were in the valillts . About 7000 cases of lost bonds,
stol en or destroyed were being reported monthly. Incoming mail
was running about 50,000 letters a month . Approximately 50,000
interest checks were issued monthly on Series G bonds. Nearly
all pr omotional material - - posters, leaflets, booklets, mats
and electros - - were received from the printing plants, packaged
and mailed. I n addition, all processed letters, press and radio

- 5 -

releases were printed and mailed. It was said that the business
machine installation handled the largest volume of material
anywhere . The operation required an average of 11,000 employees .
It seemed the planning of the Defense Bond program, its
objectives, methods of operation and the type of bonds was
decided in a rapid and efficient manner . Maybe I didn't know
about some of the difficulties. However, there was one item
that resulted in taking a lot of time and discussion to secure
a decision.
Early in the planning it was agreed to have two methods of
installment buying of Defense Bonds -- payroll savings and a
stamp to be sold and turned in for a bond. The payroll savings
had to have the cooperation and approval of labor and management
which was a part of organization and sales promotion. The stamps
needed a name and symbol to aid their introduction and acceptance
by the people .
If you've ever tried to get several people to agree on a
symbol or emblem for a program, you've really had a problem.
Each has his o"vm idea and your suggestion doesn ' t represent
his idea at all . Maybe it ' s because we all have different
reactions to subjects and backgrounds .
Odegard consulted with Dr . Harold D. Lasswell , a well known
authority on propaganda, public opinion formation and the
mobilization of consent. Lasswell was then working part time
in Washington for the Rockefeller Foundation, through Archibald
Macleish, Library of Congress.
At a luncheon, Odegard explained to Lasswell the purpose
for whi ch a name and symbol was needed . President Roosevelt had
shortly before made his speech to the people in which he defined
the Four Freedoms. It was thought that these could in some way
be tied in with the new stamp series. Lasswell said he had to
make a trip to New England and in about a week he would bring
back a suggestion.
His suggestion was to use the arrow as a symbol for each
of the Four Freedoms and to have the stamp with the top line
titled, "For Defense . " Under it there would be a large figure
Lr, and to the right of that four arrows . Lasswell ' s idea was
that the arrow is a vigorous, affirmative symbol. It represents
attack, action and strength . Three arrows had been the symbol
in the old Weimar Republic of the German Social Democrats . He
believed the use of a symbol of this sort by America would have
revolutionary values to the masses of the German people ; that
millions of them would identify it with their mm lost democracy;
and that posters and leaflets dropped over Germany could lead to
an uprising in Hitler ' s Reich. The idea of using the symbol as
a propaganda weapon in Germany was certainly not entertained and
the entire idea was rejected by Odegard and the Treasury.

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Attention was turned to the Four Freedoms and the Bureau of
Engraving and Printing was asked to try out a separate stamp on
each -- home,~ New England cottage~ school, a building~ religion,
a church steeple, and government, the capitol dome . These were
shown to the Secretary who remarked, "I think they are terrible."
So the search went on. One evening I was having dinner
with Graves and Odegard at the Cosmos Club. The discussion
turned to the subject of a symbol . I suggested the idea of
using the Statue of Liberty with the American flag in the background. Both Graves and Odegard objected for the reason that
the people didn't' associate the statue with defense or war .
Probably to some she doesn't, but to me she represents much more
than liberty and freedom. She has said, "Goodbye, come back
soon," to thousands and thousands of American soldiers , and when
they return, she has always greeted them with her arms outstretched. You see, I know, for she said it to me as I stood
at the rail of the troop ship bound for France in the early part
of World War I . Two years later, wounded and just able to
hobble on crutches, I met her again as our hospital ship
sailed into the harbor.
Odegard then brought up the idea of using Daniel Chester
French ' s famous statue of the Minute Man. He explained that it
was definitely American; that its use in school textbooks, the
country over, made it familiar to the public; and that it was a
civilian and not a military device.
My only question was, would it fit as a symbol if we got
into war. Anyway, Graves and the Secretary approved it and for
over 30 years it has been the symbol of the Defense, War and
Savings Bonds programs .
On April 19, 1941, the 166th anniversary of the Battle of
Lexington, the first shipments of Defense Savings Stamps, bearing
the slogan, "America on Guard" were shipped to post offices
throughout the country, with the stamp albums.
In 1966 , to my pleasant surprise, a colorful commemorative
postage stamp was issued saluting the 25th anniversary of
Savings Bonds and to American servicemen. As it applied to
Savings Bonds, the stamp was intended to honor the thousands of
volunteers who, throughout the years have made the bond program
a success . The stamp showed the Statue of Liberty with the
American flag.

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At the start of the organization of the Defense Bond
program, there were four very important objectives to accomplish
-- in addition to the post offices, we had to secure the banks
as Issuing Agents; the Pashington Staff and field organization
had to be recruited; and the promotional material had to be
To a great extent the war situation assisted us. It
looked like eventually we would be drawn into the conflict.
England was being bombed in a devastating manner. The Nazis
had taken over twelve countries in Europe and were moving
toward Yugoslavia and Greece. The wolf packs of German submarines were causing a terrific loss to British shipping,
whic h rose to nearly 114,000 tons in March 1941. Japan, in
the Far East, was pressing forward toward her goal of the
domination of Asi a .
Through efforts of Secretary Morgenthau, the Federal
Reserve and the approval and cooperation of the American Bankers
Association, it was agreed that the banks could become Issuing
Agents for the bonds . The Federal Reserve Banks, in each
Feder al Reserve District, would handle the Defense Bonds and
issue them to the banks and post offices. The banks and post
offices would in turn issue them to the purchasers . The
problem was to sell the individual banks on being Issuing
Agents . This meant contributing time, effort and monetary
expenditures without reimbursement by the Treasury . For
redeeming the bonds, they would receive a nominal fee . Many
banks had to pay at least one employee to handle the bonds
and records -- the larger banks several employees . Through
the influence of the American Bankers Association , it was not
very l ong before nearly every bank in the country adopted the
program. The bankers became one of the most important parts,
even though it cost them money and the bonds were in competition
with savings accounts . They realized:
1. That by active cooperation in the program
they would perform a worthwhile service to
the government and to their customers,
thereby creating goodwill and a better
understanding of their role as bankers;
- 9 -


That the Defense Bonds were a stabilizing
and strengthening factor in the economy
of the country and represented reserve
purchasing power;
3 . That the bonds would contribute importantly
to the sound management of the Public Debt
and to the strengthening of the national
economy. They would be an important tool
They woul d be an important tool in the
fight against inflation;
4. That the program would be a direct method
of participating in the creation of the
economic climate in which they do business,
locally -and nationally, and an opportunity
to publicly reaffirm their positi on as
patriotic responsibl e business citizens .
On March 19, 1941, Secretary Morgenthau i ssued
Treasury Department Order No . 39 as follows:
"There is hereby establ ished in the Office of the
Secretary a Defense Savings Staff which will have char ge
of promoting the sale of United States Savings Bonds, and
other similar government securities offered to the public .
"The Defense Savings Staff will report to the Secretary
through Mr . Harold N. Graves, Assistant to the Secretary .
"Mr . Eugene W. Sloan is designated Executive Director of
the Defense Savings Staff, and will be generally responsible
for its administration . Mr . Gale F . ,Johnston is designated
Field Director, and Mr . Harford Powell, I nformation Director . "
Eugene Sloan was a graduate of Princeton in 1915 and
a Captain in the field Artillery in World War I . He had
spent ten years in the shoe manufacturing business and ten
years in the investment business . He was Director of the
U. S . Savings Bonds Division from 1935 to 1941.
Gale F . Johnston was in the U. S . Naval Aviation, 1918;
a member of the Associated Press, 1919; Princeton University,
1924; President and Publisher of the Intelligencer at Mexico,
Missouri ; and with the Metropolitan Life Insurance Company at
St . Louis, Missouri as Sales Supervisor, 1925 -28, Divisional
Sales Manager, 1928-1938, Regional Manager, 1938-1941.
Harford Powell was a graduate of Harvard; promotion
manager of Vogue; editor of Harper's Bazaar, 1917; Captain,
Air Service, 1918; editor, Collier's, 1919-1922; the Youth ' s
Companion, 19?5-28; general executive, Barton, Durstine and
Osborne; Vice President, Kimball, Hubbard & Powell, 1932-1938;
executive and Vice President , Institute of Public Rel ations,
1938-41. He was author of many books and magazine artic l es.
- 10 -

In addition to these four appointment s there was
established a section titled, "Motion Pictures and Special
Events . " Carlton Duffus was appointed Director . He had been
a special representative for Metro-Goldwyn-Mayer pictures
staging premieres, planning special campaigns, organizing
conventions and national tours . He was known as the "Flying
Trouble- Shooter of Metro -Goldwyn-Mayer. " After Duffus was
appointed, Loewe's Inc., Metro-Goldwyn- Mayer Pictures agreed
to have their Director of Promotions, Howard Dietz, appointed
Special Consultant, without compensation, to assist Duffus .
The Defense Bond Staff in Washington occupied a unique
position . Whereas most federal agencies were administrative
or regulatory, the Defense Staff had the task of promoting
and selling a thrift and investment program to volunteers and
leaders in industry, labor, banking, agriculture, education
and all groups in our economic and social life.
Due to the necessity of recruiting personnel in sales,
advertising, radio and other promotional positions, the
Defense Bond Staff secured permission from the Civil Service
Commission to recruit our personnel of such positions, and
salary, approved by the Commission. No registers were maintained for these positions. Of course the secretarial,
stenographic and file positions were filled from the Civil
Service registers, or secured by transfers from other govern ment agencies .
The early Defense Bond Staff consisted of about forty
sales and promotion employees representing a great variety
of talents . Some were college graduates with more than one
advanced degree. There were lawyers, doctors, engineers,
writers, reformers, advertising executives and newspaper
reporters. Some were working for a dollar- a -year and most
for salaries far below what they earned, or could earn, in
private industry. There were eight employees recruited for the
purpose of contacting the field organization in the states,
assisting in organizing state committees, and in several
instances, to secure a state chairman and administrator . These
men were carefully trained under the direction of J ames Blyth,
a former or ganizer and publicity expert in fund-raising
campaigns .
By the middle of April, in addition to the field and
administrative divisions, the :fashington Staff was beginning
to function in the following:
Vincent F . Callahan - - Chief of Radio Section
Carlton Duffus -- Director, Motion Pictures and
Special Events .

- 11 -

Charles Gilchrest -- Assistant Chief of Radio Section .
Milburn McCarty - - Chief of Press Section.
Secretary Mor genthau had set the date of May 1 , 1941 for
the start of the program. It was a mad scramble to meet that
deadline. Every member of the Staff, together with Harold
Graves and Dr . Peter Odegard worked long hours -- in many
instances as late as 2 A. M. during this period .
At the beginning of the planning, a lot of thought and
discussion was given to the tormation of a field organization .
It was finally agreed to organize the field by states and to
have in each state a State Chairman with one or two Vice
Chairmen on a volunteer basis . A full -time State Administrator
would be appointed on a salary with one or more deputies . The
Governors of each state would be asked by the Secretary of
Treasury to be Honorary Chairmen. Each state would have at
least one stenographer and more in the larger states .
The problem was how to form an efficient field staff, rent
offices, hire personnel, handle expenses, all under government
regulations, and do it in a few months.
About the time consideration was being given to the
formation of the field organization, the Office of Civilian
Defense (OCD) approached the Secretary ~,ith the suggestion of
a tie-in with their state groups to get the bond program
started. There were several objections to such an arrangement
-- the field personnel would be trying to do two jobs, the
OCD personnel were not promotional or financial men, and the
bond program would probably lose its identity. Graves and
Odegard turned the offer down .
It was finally suggested to use the Collectors of Internal
Revenue and Customs as State Administrators in some of the
states . The Collectors were part of the Treasury, they knew
Treasury regulations and government procedure, they had
contact with the financial, labor and industrial leaders and
they knew the income and conditions of their state . Although
they were not promotion or financial men, they had the
contacts to assist them. On the other hand, we could be open
to criticism of using politics in the program since the
Collectors were political appointees .
The Commissioner of Internal Revenue agreed to cooperate
in every way possible and appointed Deputy Commissioner George
Schoeneman to work out the details with Harold Graves. The
Collectors were under the supervision of Schoeneman, and
Graves knew many of them personally. A list of those Collectors
who were possibilities was prepared -- those who were not
entangled in politics, those who were able to take on additional
duties without interfering with their duties as Collectors,
- 12 -

and those who were leaders in their state and would probably
like to take part in the bond program.
During April 1941, seven Collectors of Internal Revenue
and two Collectors of Customs were called into Washington,
briefed on the Defense Bond program and accepted appointment
as Administrator of their state:
North Carolina
April 6, 1941
C. H. Robertson
April 14, 1941
Thomas S . Smith
April 14 , 1941
Giles Kavanagh
April 14, 1941
Dan M. Nee
April 14, 1941
W. P. Bowers
South Carolina
April 14 , 1941
Frank Scofield
April 22, 1941
Eugene Fly
April 23, 1941
*William B~~tley
April 23, 1941
*Saul Haas
*- Collector of Customs.
The Collectors returned to their respective states,
secured an outstanding banker or business man for State Chairman, employed a Deputy Administrator and started organizing
their state and local committees.
By the middle of April the Defense Bonds, Series E, F, and
G, had been printed and shipped to post offices and Federal
Reserve Banks. In addition, the Defense Savings stamps in
denominations of lOf-, 25t-, 50¢, $1.00 and $5.00 had been
printed carrying the picture of the Minute Man with the
slogan, "America on Guard." The stamps were shipped to
all the post offices.
The first Defense Bond poster showed the Minute Man
statue at the left and at the top "For Defense." At the
right side was "Buy United States Savings Bonds" and at the
bottom, "On sale at your Post Office and bank. "

- 13 -

The date was April 30, 1941. The time was 9·20 P.M., EST.
The setting \,as the White House in Washington. At his desk,
behind a battery of radio network microphones, sat President
Franklin D. Roosevelt. Beside him was the Secretary of
Treasury, Henry Morgenthau, Jr. Newsreel cameramen were
busily adjusting their lights and lenses and radio technicians bent over their sound equipment and l istened intently
through their earphones.
Promptly at 9 :30 a red light winked on, the cameras
started whirring quietly and Secretary Morgenthau spoke
''Tomorrow morning the government of the United States
provides one answer to the question that patriotic Americans
have been aslting ever since the national defense program
was undertaken.
''The question has been · 'What can I do to help?' As
the Defense Savings Bonds and Stainps go on sale tomorrow
in every state and county, city and tmm in America, it will
be possible for everyone -- literally everyone -- to take
part in the Fational Defense effort .. . . ''
At the cl ose of his statement Secretary Morgenthau
obtained the President's order for a $500 Series E Defense
Bond to be delivered the next morning, May 1st, when the
new bonds were officially placed on sale. The networks
then switched to Kansas City, where Postmaster General
Frank Walker announced the Defense Savings Stamp program
and added that he was reserving the first stamp for the
Back in Washington, the President spoke briefly but
elo~uently, urging patriotic citizens to form a 'partnership between all of the people and their government -entered into to safeguard and perpetuate all those precious
freedoms vrhich government guarantees by investing their
savings in Defense Bonds. '
Thus began the Defense Savings Bonds program.
On April 30, 1941 there appeared in the New York Post
an article written by Sylvia Porter, one of the leading
financial \Tri ters in the nation. Her article on the
start of the Defense Bond program carried many predictions,
which l ater proved to be true :

- 15 -

''Tonight in Washington, President Roosevelt will buy
the first U. S. Defense Bond -- thereby launching the greatest
money-raising drive in the history of the nation and perhaps
of the world .
"Tomorrow, in 16,000 post offices and thousands of banks
and other special agencies, defense securities costing from
10 cents to $10,000 will go on sale.
nThis starts 194l 's defense loan campaign.
''Before it is completed -- a year or many years from
now - - billions of dollars will have been borrowed by the
Treasury from the little people of America.
"Tens of millions will own government bonds for the
first time, will have savings plans based on their purchases
of securities, will have a direct financial interest in
their Treasury.
"It will be the Liberty Loan campaign of World War I
days all over again, although there will be one big
difference. The high pressure sales methods that characterized l917 's capitalization of patriotism will be avoided.
''But to the nearly 80,000,000 Americans alive today
who witnessed the Horld War loan drive, that distinction
will be minor. In general, outlines of the two campaigns
are identical.
"No matter what your income or your financial state,
there are defense bonds suitable for your purchase.
"Everybody is covered in the three types of bonds
being offered by Secretary Morgenthau -- from the schoolboy who can afford a 10 cent weekly contribution to the
wealthy individual who can pick up $50,000 of the bonds
in one operation.
''The Treasury's staff worked for months to design
the securities going on sale tomorrow. This is a drive
to loosen the savings of the family with $1500 to $3500
yearly income.
"The banks and insurance companies that lent the
government $25,000,000,000 during the '30s aren't in the
campaign at all. The wealthy individuals of the nation
are of secondary importance . It's the little fellow
that counts.
"For $18.75 you may buy a Series E Defense Savings
Bond which at tbe end of 10 years may be turned in for
$25, This appreciation is equival ent to an annual
interest return of 2.9 per cent.
''The Series E bond is almost identical to the baby
bonds that the Treasury has been selling since 1935.
Today, more than 2,500,000 individuals own $5,000,000,00C
- 16 -

maturity value of these securities .
"For $74 you may buy a Series F defense bond, which
at the end of 12 years may be turned in for $100 . This
appreciation is equivalent to an annual interest return
of 2.53 per cent.
"For $100 you may buy 13 Series G defense bond, which
will pay 2½per cent annual interest over a 12 year period .
You will get your interest in semi-annual Treasury checks.
''And for 10 cents to $5 you may buy Defense Ste.rops at
any Post Office. When you have collected enough stamps,
you may turn in your album for an $18.75, or a $74, or a
$100 security.
"Wage-earners, housewives and students will buy the
stamps and the Series E bonds, experts forecast.
"Wealthy individuals, trust funds and estates ,-,ill
pick up the Series F and G bonds in large quantities.
' There's no guessing at this time how much money the
government will be able to raise through this campaign .
''The Treasury hopes to borrow from $3,000,000,000 to
$4,000,000,000 from individuals over the next year and a
half, according to reports.
"The figure seems high to most financial observers,
especially since the drive is being started during a
period when sharply increased tax levies are being
'But the Treasury's estimate can be reached and
topped within a fev months, for in the nation's mutual
savings banks alone, there is more than $10,000,000,000
of savings deposits. Total savings deposits exceed
$25,000,000,000 .
''There· s enough money in the country to meet all the
government's defense needs
if the public meets the
'In 1917 Americans responded to an extent beyond all
expectations. Within three months after the United States
had entered the war, for instance, the Treasury had
borrowed more than $1,000,000,000 from American citizens.
'And both the Treasury and the average American
citizen are much more financia.lly sophisticated now than
in 1917.
''Just as there's no way of forecasting the total
that may be borrowed this time, so there is no way of
predicting the number of buyers.
'The figure may be 15,000,000. Or it may be twice
'Again, turning back to the World War Drive, the
- 17 -

record is significantl y impressive . More than 4,500,000
persons bought the first Liberty Loan; 9,500,000 subscribed
to the second; 18,370,000 to the third; 21,000,000 to the
"At least 30 per cent of the Liberty and Victor y l oans
was subscribed by families with incomes of $2,000 a year or
"If just every Ameri can who owns a l ife insurance policy
in the U. S . buys a bond -- a not illogical comparison - the purchasers of defense bonds wi ll number 64,000,000 .
"There is no paral lel anywhere in all history for the
magnitude of the borrowing drive that star ts tomorr ow in
this nation.
"An army of 500, 000 persons will be working on this
selling campaign in a few weeks. More than 250,000 sal es
agencies wi l l be operating before summer . "
On Ma.y 1, 1941 the people of the United States
purchased over 100 million doll ars of Defense Bonds . Sales
were recorded in the amount of money received at the
Treasury -- not by maturity value of the bonds. This was
true of all sal es statistics in the Treasury bond program.
Although sal es of Defense Bonds was an important
element in the 1941 program, and was a lways an indication
of the success of the program, most of the effort in 1941
was directed to the organizati on of the Washington Staff
and the state committees .
Attention was first directed to the payroll savings
program -- the organization of this section, and the
preparation of the necessary promotional materials . I t
was realized that payroll savings was going to be an
important part of the Defense Bond program. It was not
a new idea, such plans had been used in business and
industry for many years to enable employees to buy
company stock. Later it was used to pay industrial
insurance premiums automatically for the worker's
One of the first payroll savings plans for purchase
of government savings bonds was about 1936 when Gene
Sloan assisted in the installation of the plan for baby
bonds in the American Telephone and Telegraph Company at
New York City. In a short time they had about 30,000
employees signed up . Each month they sent a single check
and a list of desired registrations to the Federal Reserve
Bank in New York where the bonds were inscribed and mailed
direct to the purchasers .
Through the assistance of several experts on rail road
- 18 -

allotments and insurance executives experi enced on payroll
deductions, instructions and promotional materi al s wer e
prepared, such as, payroll savings authori zation cards and
pamphl ets ti tlecl
"How to install and successfull y operate
a payroll Defense Savings Pl an for the regul ar purchase of
U. S. Defense Savings Bonds . "
The instructions covered these principal points:
1- The cooperation of management and l abor.
2- How to fill out the Payroll Savings Authorization
car d of the employee.
3- The opening of a separ ate bank account in which
all monies accumulated to the credit of employees
woul d be held in trust .
4- The registration of the bonds in one of three forms .
5- The purchase and deli very of the bonds .
6- An announcement l etter to employees by the President
of the company.
7- The organization of committees with responsibility
for success lodged with one individual.
8- Use of publicity materi8l .
9- Group meetings of empl oyees addressed by heads of
the company .
10 - Payrol l Savings for Defense Bonds should be
vol untary .
The program and material were submitted to Secretary
Morgenthau for approval. He held up his decision for
several days. He wanted to be assured the plan would be
voluntary and no undue pressure would be used on employees
no sl acker lists. The Secretary finally gave his approval
after the endorsement of the plan by the American Federation
of Labor, the Congress of Industrial Organizations, the
Railroad Brotherhoods and many of the leaders of industry.
By the end of May, Riggs National Bank, Metropolitan
Life Insurance Company, New York Life Insurance Company,
Standard Oil of New Jersey, U, S. Rubber, Lever Brothers,
American Telephone and Telegraph, International Harvester,
Kraft Cheese and Armour and Company had adopted the plan.
The payrol l savings pr ogram was quickly adopted by other
l arge companies, incl uding all government departments and
the armed services.
A labor union section was quickly formed in the
Washington Staff consisting of representatives from the
various unions. These men uere of great assistance in the
installation of payroll savings, especially in the large
i ndustrial pl ants. In addition, they assisted in the
ironing-out problems of the plan between labor and industry.

- 19 -

During 19lfl the volunteer services of insurance underwriters \Tere used to enlist firms in the payroll savings
At the time of Pearl Harbor some 700,000 wage and sal ary
earners were on the payroll savings plan .
During World War I savings stamps were issued to suppl ement the Liberty Loan issue of bonds . At the beginning of the
Defense Bond program the savings stamps were revived in a
different form and offered in denominations of 10¢ to $5.
They bore no interest but were exchangeable in units of $18.75
for Series E bonds. The stamps were sold in post offices
and in the nation's schools . Stamp albums were distributed
through post offices and schools so that it was possible for
children to save a dime at a time, usually on weekly stamp
days at school.
The purpose of the School Savings Stamp program, which
later was called "School-At-War" program, was to enlist the
schools, administrators, teachers and pupils, and through
the latter to their parents and the community, in the bond
program. The school program was primarily educational - preservation of democracy, good citizenship and financial
support of their government. The Treasury offered the
schools materials on war aims, thrift and conservation, and
a practical plan for practicing thrift through the regular
purchase, by students in classrooms, of Defense Bonds and
The Savings Bonds Division, later knmm as the
Distribution Center, handled the distribution of the initial
order of 30 million stamp albums. In addition, a four
colored bulletin was mailed to all schools in the nation
titled, "Our America." Later in 1941 an additional 20
million albums were sent to Post Offices throughout the
The School Savings program, prepared in consultation
with the U. S . Office of Education, was educationally sound
and was one which professional educators appreciated and
could use in their own work.
A corollary of the school savings effort was the
newspaper carrier boys' savings stamp program promotion.
The ground work was laid in the Fall of 1941, and was
initiated outside of the Treasury by the Philadelphia
Evening Bulletin. This promotion quickly gained headway
and a few months later there were over 900 newspapers cooperating in the program with more than 150,000 carrier
boys actively selling savings stamps.
Dr. Homer W. Anderson, Superintendent of the Board of
- 20 -

Education, St. Louis, Missouri was placed in charge of the
School Savings program and the Newspaper Carrier's program
was placed under Sydney Mahan, Director of the Retail Stores
program .
It was realized early in the program that the farm
market would be important and one we must reach successfully .
Farmers could not be sold bonds automatically through payroll
savings. Those farmers with regular monies from dairying
could be reached monthly through their bank. However, the
farmer who received his crop money once or twice a year had
to be reached through his banker, by special mailings of
promotional literature and through farm organizations.
With the assistance of the U.S . Department of Agriculture
the services of Lloyd Partain was obtained. He was an outstanding instructor technician and information specialist in
agriculture. As a result the Defense Bond promotion to farmers
got an excellent start. Partain secured assistance from state
and county organizations of the Department of Agriculture,
the Farm Bureau Federation, the Farmers Union and the National
Grange . In addition, contacts yere made with editors of the
rural weekly press, farm magazines, farm radio program
directors and the rural banking Hing of the American Bankers
Besides the regular promotional reasons for buying
Defense Bonds, two additional aims were directed to the
1- To build up financial reserves against loss of income
due to drought, flood, insect pests, livestock disease
epidemics, and other factors beyond the farmer's
control, as well as falling prices ;
2- To build up reserves in E bonds for the replacement
of tractors and other machinery in this period of
necessary mechanization of agriculture .
A test program for retail stores was begun in Michigan .
The experiment proved so successful, especially in setting
a patriotic example for retailers to help meet the country's
defense needs that a Retail Section was organized in the
Washington Staff. Sydney Mahan of the Westinghouse El ectric
Manufacturing Company and F . E. Pulte, Jr. of the National
Retail Committee were employed to promote the program.
Within a short time retailers all over the nation were
writing in for ideas and direction . Representatives of
leading retail trade associations met in Washington and
formed a Retail Advisory Committee . The first major activity
was "Retail ers for Defense Week," September 15-20, 1941.
The ,-r eek was launched with a meeting of some 500 retailers
- 21 -

at which promotional plans were shaped for a long-range
program. The cooperation of retail establishments was
principally in the area of publicity . Retailers featured
bonds in their newspaper advertising and through uindow
displays . Many retail stores assumed a quota of a certain
per cent of bond and stamp sales in relation to their total
trade volume, using as a slogan, ''Take part of your change in
Defense Stamps."
The retail stores program offered the Treasury three
1- Purchase of bonds and stamps by retail personnel
themselves . Many retailers made the Payroll Savings
Plan available to their employees.
2- Promotion of the sale of bonds in their establishments . Many retail stores became official Issuing
Agents for Series E bonds.
3- Advertising of Defense and Har Bonds. Since
retailers are the country's greatest advertisers,
this was an important contribution .
Another section was organized at the beginning of the
program that would handle contacts with fraternal and civic
organizations, trade and business associations and foreignorigin and negro groups.
We were very fortunate in securing the services of
James L. Houghteling, formerly Vice President of the Chicago
Daily News and for three years U.S. Commissioner of
Under the direction of Larry Houghteling this section
became a great asset to the Washington Staff . The Labor
Union Section with its top labor men was pl aced under
Houghteling's direction. He secured the services of Dr.
William Pickens as head of the Negro Section . Dr. Pickens
was one of the top educated negroes in the country, one of
the leaders of the National Association for the Advancement
of Col ored People, and connected with many of the negro
In May 1941 a national women's section was added to
the Washington Staff and played an important role in the
Defense and War Bond program. It was established to recruit
women volunteers in a Defense Bond pledge campaign, to
contact women's publications for advertising and publicity
articles on bonds, to contact women's national organizations
and to establish local, county and state women's committees .
Later in the program they did house-to-house canvassing
to sell bonds and stamps, served as speakers, manned bond
booths, made stamp corsages and helped in the school.
- 22 -

It was in April 1941 when I first learned about Vincent
Callahan. I was having a conference with Graves in his office
when his phone rang and from the conversation Graves had
asked some prominent advertising man in New York City to
reconnnend a top radio and advertising man. Graves final
remark over the phone was, "I can handle him.'' He turned
and explained that a fellow by the name of Vincent Callahan
was highly recommended; that he was one of the top radio
advertising men in the country, but that he was a very
difficult man to handle. A short time later he joined the
Washington Staff and became Director of Radio, Press and
The Defense and War Bond advertising centered around
the Advertising Council, formed by the advertising industry
to aid and foster important national projects. The Council
directed and coordinated the allotment of advertising
space and air time for public service causes, among which
the bond program, its original account, was of prime
importance .
Preparation of the advertisements, based on themes
approved by the Trea.sury, was a donated service. The
Advertising Council, through the cooperation of the American
Association of Advertising Agencies, appointed leading
advertising agencies of the nation to serve as a task
force for the bond program. They divided the assignments,
one taking general newspaper and general magazine advertising,
another industrial magazines, another farm publications,
and so on . This also applied to radio, outdoor and
transit advertising. The agencies donated their time and
talents of a group of creative people to the bond job,
just as they handled a commercial account.
The only expense to the Treasury for the millions of
dollars in bond advertising during the Defense and War
Bond programs was the cost of supplying advertising mats,
electros and proofs to the printed media, transcriptions
and filmed announcements to the broadcast media, and
posters to outdoor and transit media.
It was not easy going for this section of the Washington
Staff in 1941 but they made good advancement, especially
in radio advertising. After Pearl Harbor, self interest
was linked with the patriotic appeal to help win the war.
Advertising then developed to top performance.
In the summer of 1941 the Washington Staff had grown
to over 250 employees and we were cramped in our small
quarters in the Washington Building. This had been an
ideal location, across the street from the Treasury, but if

- 23 -

we were to function efficiently we had to have more space .
Arrangements were finally made to move to the Sloane Building,
709 - 12th Street N.W . (No relation to Gene Sloan). The
building was completely remodeled for our occupancy.
During the period from May 1, 1941 to Pearl Harbor all
states, including the District of Columbia, Hawaii and Alaska,
were officially organized, except two states -- Kentucky and
Delaware. These two were organized rapidly after Pear l
Harbor . California was organized with two offices -- one at
Los Angeles and one at San Francisco. This made a total of
52 offices which were started with 29 Collectors as Administrators and 23 with bankers or a prominent leader of the
state as Chairman or Administrator. In the 29 states organized
with Collectors, a banker was secured as Chairman in ten of
the states. The other 23 states and territories were
organized by field representatives of the Washington Staff
or by Harold Graves . Earl Ross, field representative, made
excellent recommendations through the middle West and
mountain states , Many of his appointments remained with
the program during the entire war period and years later.
In 1943, during the reorganization, Kentucky was divided
into two offices - - one at Louisville and the other at
Ashland . This made a total of 53 War Bond offices .
The dates of the original appointments in each state
did not reflect the interest, or the lack of interest, in
the Defense Bond program. Post Offices and banks were
selling bonds and stamps in every state during this period
and promotional material was being distributed . He could
not start the organization in every state at the same time.
The starting dates of each state and territory, shm-m in
Schedule "C" of the appendix, only show our progress .
On July 1, 1941 there was opened, after a dedicatory
program, a one-story, glass-block house at 14th Street
and Pennsylvania Avenue, on park property owned by the
Federal Government . The building was erected by the
Standard Oil Company of New Jersey - Essa Marketers,
and turned over to the Treasury Department as an Information
Center for dissemination of information and sale of
United States Defense Bonds and Stamps. The house was
surrounded by displays of Army, Navy and Marine Corps
eouipment . Inside the house was a gl ass enclosed radio
booth from which hourly news broadcasts were scheduled.
Each day there were programs including band concerts,
speakers and appearances of movie stars . The Treasury
House was staffed by attractive hostesses in light blue
uniforms with matching overseas-type caps.
- 24 -

Following the Washington Treasury House, one was erected
in Rockefeller Center, New York City on September 3, 1941,
and one on Boston Common in Boston on September 4, 1941 .
Wendell Wilkie made the opening address in New York and
Mayor Tobin in Boston .
During 1941 the Newsreel Division of the War Activities
Committee of the Motion Picture Industry released many
special clips in connection with the Defense Bond program.
These clips, carried by the five newsreel distributors,
included President Roosevelt buying the first bond from
Secretary Morgenthau, Bing Crosby's four sma.1 1 sons buying
bonds, Carol Lombard selling bonds in Indianapolis, A.F.L
members pledging to buy a billion dollars worth of bonds
and stamps, a group of Congressmen joining the Payroll
Savings plan, and Kay Kayser on his "bond wagon'' in Chicago .
Many special releases were arranged featuring well
kno,m personalities such as Dorothy Lamour, John Payne,
Nelson Eddy, James Cagney and Tyrone Power. The Hollywood
Division of the War Activities Committee made a four minute
short, "America Preferred," using a private in the Army
Air Corps as spokeman. One thousand prints of this short
was booked into 10,047 theatres, and later, six hundred
16 MM prints were exhibited at schools and industrial
A major contribution of the Motion Pictui·e Industry
was launched in November 1941 with the "Minute Man For
Victory' series. Three newsreel crews, covering various
sections of the country, made 870 Minute Man subjects .
They sought out interesting Americans in offices, factories,
homes, laboratories and farms, and filmed the appeals of
these men and women in support of the Defense Bond program.
It would be impossible to list all the special events
that occurred from May 1, 1941 to the end of the year. A
chronological list of selected events is submitted.
May l - A broadcast of a special program was conducted
over NBC comprising a round table discussion of Defense
Savings Bonds and Stamps by leading news commentators of
the country -- from New York City; George Hicks, Lowell
Thomas, John Vandercook and Don Goddard -- from Washington,
D.C.; H. V. Kaltenborn, Earl Godwin and H. K. Baukhage.
Secretary of Agriculture Wickard made a broadcast to
farmers over the National Farm and Home hour.
The 3900 member institutions of the Federal Home Loan
Bank system volunteered to serve as agents for the sale of
Defense Bonds.
May 2 -- Labor pledged support to the bond program

- 25 -

A.F.L., C.I.O and Railway Labor Executives Associ ation
The Boy Scouts of America agreed to distribute one
million posters.
May 8 - A recording was made of the "Q,uiz Kids" for
use in high schools throughout the country - - potential
listening audience of three million. Services of "Quiz
Kids' donated by Alka Seltzer .
May 9 - The American Legion adopted a resolution
calling for all-out support of the bond program.
May 16 - Ignace Jan Paderewski broadcast a talk on
Defense Bonds over NBC.
May 22 - Irving Berlin del ivered his song, "Any Bonds
Today?" to the Secretary.
Final arrangements were made for the Defense Bond
Staff to use the full hour sponsored by the Texas Company
over CBS for thirteen weeks during July, August and
September on a coast -to- coast net work using top entertainment as guest stars .
May 27 - Henrik Willem Van Loon vol unteer ed as a
special worker. others now cooperating were Eve Curie and
Luis Adamic .
Two million Minute Man stickers were ordered for use
by printing and allied industries, trade associations and
retailers .
June 12 - Association of General Contractors of
America adopted a resolution supporting the bond program.
June 21 •· Barry Wood appeared as soloist in the r adio
premier of Irving Berlin's song, "Any Bonds Today?" on
the Hit Parade over CBS.
July 2 - First broadcast of the Treasur y Hour - Millions for Defense series - - over the Columbia network .
July 22 - First broadcast of ''For America We Sing,"
featuring operatic and concert singers, every Tuesday for
a year over the Blue network of NBC.
Round table discussion of leaders of labor and
industry with the Secretary in his office, broadcast over
CBS -- subject, "The Real Meaning of America's Defense
Savings Program."
July 31 - Cash deposits at the Treasury from the sal e
of Defense Savings Bonds passed the billion dollar mark.
August 7 - The District of Columbia was the first in
which all ne.tional and state banks had qualified as issuing
agents for Series E Bonds. These bonds are the first
government securities which banks have ever been authorized
to issue and deliver over - the-counter instead of acting as
purchasers for their customers.

- 26 -

Amalgamated Clothing Workers of America informed the
Treasury their members had purchased $llO,OOO worth of bonds .
Their shop chairman col lected the money weekly from members
to buy strunps - - later turned i n for bonds .
August 9 - Florida State Theatr es, Inc. devel oped a
special children's matinee pl an with the purchase of Defense
Savings Stamp for admission.
August 12 •· Secretary Morgenthau announced the extension
of Defense Savings Stamp sales to retail outlets in more t han
a million stores .
August 28 - Baseball Defense Bond Day.
September 3 - In New York the ''Treasury House" at
Rockefeller Plaza. opened. The speakers were Wendel l Wil kie,
Acting Mayor Newbold Morris, and Mrs . Lytle Hul l. Attendance
was 45,000.
September 4 - The Boston "Treasury House" opened in
Boston Common preceded by a large parade. The crowd was
estimated in excess of 20,000. The principal speaker was
Mayor Tobin.
September 9 - The Secretary addressed the Advertising
Cl ub of Boston at the Statler Hotel in Boston - - broadcast
coast-to- coast by Mutual Broadcasting System. The Secretary
stated that America faced inflation and that taxes and
Defense Bonds were the correctives.
September 15 - Mrs . Eleanor Roosevelt bought a Defense
Savings Stamp from Donald M. Nelson, to mark the inauguration
of Retailers-for-Defense week which began in 500,000 stores
by Presidential proclamation .
October 4 - A nation-wi de campai gn was started by the
Automati c Phonograph Manufactures Association and representatives of al l major recording companies. Objective was to
place '·Any Bonds Today?" and other nati onal defense records
as they become avail able, in the Ho. 1 slot on the nation' s
300,000 automat i c phonographs.
October 15 - In cooperation with the American Hotel
Association a distri bution of three mill ion posters and
fol ders were made to 6000 hotel s.
L. W. Treaster, Assistant to the President of the
General Outdoor Advertising Company, Inc . , and on the
Defense Bond Staff, announced 24 sheet posters were available
for distribution.
November 4 - The Army, Navy, Marine Corps and Coast
Guard collaborated with the Washington Staff in a Toledo,
Ohio Defense Bond demonstration. More than 400 men marched
in the parade with equipment, and 30 Powers models were
flown from New York. A Goodyear blimp carried a Defense

- 27 -

Bond sign over the city all day.
November 10 - The National Defense Committee of the
Associated Business Papers, representing 132 publications)
passed a resolution in New York stating
"It is the patriotic
duty of every business paper to extend enthusiastically the
fullest cooperation to the Treasury Department to aid in
the sale of Defense Bonds and Stamps." Services of Schuyl er
Hopper, promotional expert of the Associated Business Papers,
were loaned to the Treasury to prepare a series of advertisements on Bonds and Stamps to be distributed to business
November 14 - A print of "America Preferred" was shown,
al ong with other films by the traveling displ ay unit of the
Anheuser-Busch Company of St . Louis. These showings were
set up at various Fairs and expositions .
November 18 - During September a campaign by newspaper
carrier boys of the Philadelphia Evening Bulletin was
conducted to sell Defense Savings Stamps to subscribers
on their routes. On November 4 pictures and story of John
Cotney, the newspaper carrier boy who sold the millionth
Defense Savings Stamp were released to picture syndicates
simultaneously with the release of the Philadelphia
Bulletin extension plan story nationally. On November 18
a meeting was held at the Treasury of newspaper circulation
managers to set in motion plans whereby 500,000 newspaper
carrier boys became agents of the government in the sale of
stamps direct to the American home.
November 21 - Leaflets recommending Defense Bonds as
Christmas gifts were prepared by the American Bankers
Association for banks to include in their monthly statements .
November 24 - Buffalo Stamp Campaign from November 24
to December 5 -- Buffalo merchants raised $4,000 for this
promotion and set $175,000 as the stamp sales goal with
which to purchase two fighter planes. They sold $249,000
worth of stamps. Pennsylvania Central Airlines flew
$250,000 worth of stamps from Washington to Buffalo on
Saturday, November 22 . Throughout Buffalo 25,000 posters
were distributed. Bond sales totalled $807,000. This
was the first weapons campaign promotion .
November 28 - 556 daily newspapers had adopted the
plan to have carrier boys sell Defense Savings Stamps. A
full page ad appeared in the New York Times with the
headline : They' re Malting Liberty Bells Out of Doorbells."
American Institute of Banking (Educational Section of
the American Bankers Association) announced a nationwide
- 28 -

mobilization of more than 250,000 bank employees to aid
Treasury in the sale of Defense Bonds and Stamps.
The Finance Department of the War Department set up
machinery for a payroll savings plan to sell Defense Bonds
to 1,500,000 military and about 400,000 civilian personnel.
December 6 - First of a series of radio concerts was
conducted by Arturo Toscanini, NBC Symphony Orchestra over
coast-to-coast Blue Network.
December 10 - Advertising material was distributed to
1500 house organs.
December 11 - Officials of Boy Scouts of American offered
the services of the nation's 1,500,000 Scouts in every city,
town and hamlet as Defense Bond and Stamp sal esmen . They
took orders for bonds and stamps by house-to-house canvas.
December 14 - The largest mural in the world urging
people to purchase bonds and stamps was placed on display
in Grand Central Station in J\Tew York City. The size was
approximately 75 by 120 feet. The text was
"That the
Government of the people -- Shall not perish from the Earth."
December 15 - An emergency meeting was held at the
Federal Reserve Bank in Chicago of all State Chairmen and
Administrators. The conference was to place the Defense
Savings program on an intensified wartime basis. It marked
the change in Defense Savings from an educational to an
all-out major selling program.
December 17 - The Authors League of America formed an
Advisory Committee to cooperate with the Defense Savings
December 19 - Joe Williams, noted sports writer, was
named Chairman of a Committee to promote bond and stamp
sales through sports activities.
December 26 - Bowling tournaments with Defense Savings
Bonds as prizes were conducted by newspapers in 17 cities.
Arrangements were made for 18 similar tournaments in other
December 27 - Voluntary payroll savings for purchases
of bonds and stamps by workers on federally financed
projects was authorized by the Department of Labor.
December 30 - A bulletin titled, 11 Sharing America, '"
prepared in consultation with the U.S. Office of Education
was distributed to all educational institutions. It was
an inauguration of the program to enlist 25 million school
children in the Defense Savings program.

- 29 -

1941 Sales Results
The total cash receipts from sale of Defense Bonds E, F
and G to individuals, from May 1 to December 31, 1941, amounted
to $2,537,210,000. This was a good sales record for eight
months when the program was being organized and many of the
states just getting started. Also, a good portion of the
sales between December 7 and December 31 were not included in
the totals. Further, there were no bond drives during the
1941 period -- only a steady promotional and advertising
campaign. In addition to the bond sales there were over 6
million dollars of Defense Savings stamps sol d .
During the first week of the war the sale of bonds
sky-rocketed to an all-time high reflecting the public's
reaction to the attack on Pearl Harbor and Germany's
declaration of war against the United States on December 11.
On December 10 a message from Hawaii read, "Our banks
completely sold out of bonds . Rush us more bonds." No
mention was made of the Pearl Harbor catastrophe .
The Federal Reserve Bank of New York reported,
"Demands for Defense Bonds have increased at least 8001/4. '
The Federal Reserve Bank at Chicago reported, "The
increase in larger banks range from 70% to 5001/4. Many
Chinese are purchasing bonds today . We have been swamped
with requisitions of Issuing Agents from all sections o:t'
the district, many telephoning for us to rush shipments . '·
Of the 120 cities reporting, the highest gain was in the
Los Angeles district - - 1400'%,.
On December 19 the Federal Home Loan Bank Board
reported a 276% increase in bond sales for the week
December 8-13.
An interesting side -light to the sales picture was
the cost of the promotion and sele of Defense Savings
Bonds and Stamps. Many public officials, financi al leaders
and ,rriters thought we were spending the government's
money like a bunch of "drunken sailors." Due to the
amount of promotion, advertising, radio, motion pictures
and materials issued, they probably were justified in
thinking so, but they did not realize that nearl y all of
it was donated.
On November 27, at the request of John Fisher of the
Chicago Tribune, the total costs of the Defense Savings
Staff was furnished as follows: "Total expenditures and
obligations in connection with the promotion and sale of
Defense Savings Bonds and Stamps from May 1 through
October 31, 1941 was $1,626,564. Total sales were
- 30 -

$1,775,124,ooo. The percentage of expense to the total sales
were approximately 9/lOOth of 1 per cent."
Personnel - 19l!l
During 1941 there were only a few personnel changes in
the Washington Staff. Gale Johnston, Fiel d Director returned
to his former insurance company as Vice President and Bob
Sparks of the Bowery Savings Bank took his position. Harford
Powell, Information Director, left because he could not get
along with Morgenthau . There were a few changes in minor
personnel who either did not fit into the organization or who
could not follow government regulations.
As a whole the Washington Staff in 1941 was a closely
knit organization. Enthusiasm for the job to be done offset
the occasional internal frictions which were bound to occur
in a small group of high-tension promoters . There were no
clocl(-watchers or time-savers in the pre-war skeleton crew.
As one member .n·ote of the organization: "This was a
satisfying place to work. There was so much to be done in
every field that abnost anything was worth at least one try.
The Defense Savings workers, paid and volunteer, were so
enthusiastic about their worl~ that they talked of little
else to each other and to anyone else who would listen."
One of the outstanding jobs done in the program in
1941 was the Administration Section under the direction
of Charlie Adams and his assistant Juanita Jones. The
problems of this section were difficult -- classification
of positions c1nd personnel, the budget, the handling of
expenditures. They were only some of the difficult tasks .
Early in the program it was evident we needed two
top men -- a good inspiring speaker and a volunteer
National Director with experience in promotion and
advertising. In September, during a meeting with Graves,
he asked me if I knew Robert Coyne in Boston. I told him
that I did, had worked with him and liked him. Bob was
head of the Alcohol Tax Unit in the New England states.
Graves explained, •·r think I can get Coyne transferred
to the bond program. As you probably know, he is an
attorney and a very good speaker." Graves, Sloan and myself
were not speakers. Odegard was a good speaker but his talks
were more educational . Later Coyne joined the Washington
Staff and became our outstanding inspirational speaker .

- 31 -

The Oregon Kid
The securing of a top promotion and advertising man as
a National Director on a volunteer basis was a difficul t
problem. During the summer of 1941 the search was done very
quietly. Gene Sloan was a good Executive Di rector but he
was a government employee with little promotion and adver t i s i ng
experience. To my knowledge the qualifications for the
position were never written down but in conferences with
Graves and Odegard it was clear the type of man we needed . If
the oualifications had been written and presented to someone ,
the person would probably have said that H was impossibl e to
secure such a man.
One of the most difficult requirements was that he be
in a financial position to volunteer his services. The
entire program was based on volunteer service. It would not
have been consistent for a highly paid National Director to
go into the field and ask men and women to volunteer their
services and money . On the other hand, if he could say,
''I ' m contributing my services for our country and I expect
you to do your part , " then they would l isten.
He had to be a leader with a good personality . In
addition to the vol unteers at state and l ocal l evel , he
had to secure the cooperation of labor unions, bankers ,
leaders of industry and heads of all types of organizations .
The appointment had to be non- political . We were
asking all the people to cooperate and assi st in the
program. Thousands of volunteers would operate the pr ogram
regardless of their political affiliations .
The man should be about 40 years of age ,rho was
completely sold on the program and had plenty of energy
and enthusiasm. He had to have experience in promotion
and advertising, and be able to stand a l ot of pressure.
It was in the l atter part of October 1941 when
Graves and Odegard learned about a young man who was
State Administrator of Oregon . He had organized one of
the finest community organizations in the country.
If he had lived 100 years ago he woul d have been
leading a regiment into battle , or a builder of railroads;
or the head of a wagon train and known as the Oregon Kid .
But even in 1941 he was a recognized doer, an
achiever . When he set out to do something he succeeded in
doing it . His name was Theodore Roosevelt Gamble and he
was from Portland, Oregon . At times he was referred to as
the Oregon Kid but to his face you called him Ted. He
looked younger than his 35 years and he was sensitive about it .

- 32 -

Ted was happil.y married with three children. At the age
of sixteen he was assistant manager of the Pantages Theatre in
Seattle, l ater, manager of the Bruen Circuit Theatres ; and
then buyer, film broker, director and gener al manager of the
Universal Chain Theatres, a subsidiary of the N.W . Theatrical
Enterprises. At the age of twenty five he was division manager
of the Fox West Coast Theatres. In 1939 he had been selected
as the First Citizen of Portland. In 1940 Ted formed his
own company of Gamble Enterprises operating theatres in
Ted was a Republican, Methodist, Mason and member of
several civic and welfare organizations of which he had been
chairman of most of them.
In November 1941, after checking with several. prominent
citizens in Portland, and learning most of the above facts,
Graves flew out to Portl.and and offered Ted the position of
National Director. Ted turned d.m-m the offer and explained
that he had recently started his own business and had to see
that it was operated properly . He further explained he
was not a wealthy man and had all his money tied up in his
A few weeks l ater when Pearl Harbor was attacked,
Secretary Morgenthau asked Ted to come to Washington for
a conference. As a result of the war Ted agreed to accept
the position. He returned to Oregon and reported back to
Washington on January 4, l942 as Consultant to the Secretary
and National. Director of the Bond program at a $1 .00 a year.
He took over as National Director under several
handicaps . The Defense Bond Sta.ff had been working together
very closely under a lot of pressure and a new boss was not
looked upon with much favor. In addition, Ted was younger
than most of us and ten to twenty years younger than most
of the Treasury executives. Further, he had no experience
in government procedure. However, Ted's ability to take
things in his stride, his successful handling of the
program and his consideration of the members of the staff
soon resulted in his acceptance by everyone.
With Ted and the war situation, the War Bond program
went into high-gear. He was always out in front with
plenty of energy, and inspired everyone he contacted. He
knew promotion and advertising from every angle and had
an unusual sense of what was good and appealing to the
For four years, 1.942 - 1945, Ted directed the War
Bond program. During that period it became the greatest
sales and promotion program this world has ever known .
- 33 -

Secretary of Tr easury, Henry Morgenthau, Jr.
To understand Secretary Morgenthau's participation in
the Defense and War Bond program, it is necessary to know
the relationship end the friendship between Morgenthau and
President Roosevelt. Also, the personal characteristics and
short-comings of the Secretary enter into the picture.
In the three volumes of John Morton Blum, based on the
Morgenthau diaries, this relationship is aptly described:
"Morgenthau's own first joy in life was to serve
Roosevelt, whom he loved, trusted and admired . Through that
service, the Secretary believed he served his country and
his generation. Through his intimate friendship with the
President, even more than through his official office,
Morgenthau could help to execute the programs Roosevelt
chose not to trust to others, and he could help too, to
define the programs the President might embrace as his o~m.
No one man at any time had Franklin Roosevelt's
exclusive ear. But among those in the Cabinet, no one was
closer to the President, no one was more loyal, no one more
willing to subordinate his personal interests to the
interests of his chief. Roosevelt understood his friend
and valued his qualities, confided in him , used him, and
returned the affection he received .
''Morgenthau' s diffidence with strangers, his seeming
suspiciousness and brusqueness shielded the warmth and
generosity that Roosevelt's ways brought out. These
qualities Roosevelt had to have in a man who took him
for himself, not for what was his to dispense . Franklin
Roosevelt revealed to most men very little of himself.
But he could and did trust Morgenthau with personal matters
of which few others were aware. Morgenthau was never a
rival or a sycophant or a scold. He had a quick sympathy
for Roosevelt's moods . His understanding and his dedication
helped Roosevelt in those private hours when he did not
want to laugh, helped him to bear the lonely responsibilities
of high office."
My personal reactions and comments regarding Secretary
Morgenthau probably should be omitted for I had few personal
contacts with him -- my contacts were with Harold Graves,
Peter Odegard and Ted Gamble. I did attend a few executive
meetings in Morgenthau ' s office . He was very interested
in the bond program and wanted to know all the details.
He knew very little about promotion and advertising, and
less about public relations. As a result, the meetings
did more harm to the staff than they did good.

- 34 -

Morgenthau would sit behind his executive desk with a
steno-typist at his side taking down every word. The members
of the staff would sit in hard back chairs in a semi-circle .
He would stare at them in a cold, austere manner, then pointing
his finder at the first man on his right, say, ''What have you
got to report?' I doubt if he lmew the names of any of us.
None of the meetings were friendly and I never heard him say
a complimentary word. None of the staff left with any
enthusiasm •·- most dreaded the session . I could understand
why oftentimes he was referred to as, "Hank, the Morgue."
At one of the meetings .Morgenthau turned to Harford
Powell, Information Director. Harford showed him a gl ass
bank about 12 inches long, 8 inches wide and 4 inches thick.
He explained they would be sponsored by the banks and retail
stores to be used by persons to save their small change to
buy a bond. At the top of the bank was an opening slot
where the money could be dropped in and from the slot around
the bank was a glass seam.
Morgenthau was interested and asked, "How do you get
the money out of there?''
Harford explained, "All you have to do is take a
silver dollar, or some similar piece, put it in the slot
and give it a tap. The bank splits in two parts and you
have two nice glass ash trays.'·
Morgenthau' s reply was, ''Let 's see you do it."
Hhen a silver dollar was finally located, Harford
placed the bank on the Secretary's desk, placed the
dolla.r in the slot and gave it a good tap. There was a
crash and the bank busted into thousands of pieces a ll
over the desk . For several seconds there was not a sound
and then Morgenthau burst into laughter - - it was the only
time I ever saw him laugh, or even smile. Poor Harford
was embarrassed beyond words .
Morgenthau dreaded making speeches to a. large crowd
or over the radio. P..s a result he was a poor speaker but
realized it was necessary for the interest and welfare of
the bond program.

- 35 -

On January 1, 1942 I was transferred from the Intelligence
Unit of the Treasury to the Defense Bond program as Associate
Field Director. It was a difficult decision to make . The
duties in the Intelligence Unit were interesting and challenging,
and investigative accounting was my line of work. The position
of Special Agent carried a great deal of authority and prestige.
My Chief, Elmer Irey, was a wonderful man to work under . The
Defense Savings Bond program was well started and organized .
Cliff Mack had approached me twice to return to the Procurement
Division as Assistant Director. Viy decision to accept the
appointment in the bond program was principally based on my
loyalty to Harold Graves and his statement that he needed me;
also I knew that the bond program would be an important part of
the war effort; and in addition the position carried a substantial
increase in sal ary.
When Japan attacked Pearl Harbor on December 7, 1941, the
United States was about one-third mobilized for war. True, the
fighting spirit of the people surged up overni ght. Differences
of opinion were swept away in a wave of patriotism. The whole
nation burned with an eagerness to strike back. The battlefield
moves with incredible speed. Its action is swift, bold and
dramatic and this was the temper of the American people .
But behind all this stretches the supply line of men and
materials -- thousands of miles away in distance and months
away in time . It includes the manufacture of pl anes, guns,
tanks and ships, and behind that again, the construction of
ammunition plants and shipyards, and the building of the
machines that make the implements of war . It includes the
training of millions of soldiers in the skilled tactics of
modern fighting. It includes the reorganization of industry,
transportation, and the whole of civilian life . It was in these
things that the United States was only one- third ready .
The war appropriations of the United States rose from 64
billion dollars at the time of Pearl Harbor to 154 billion at
the end of April 1942 with more to come. "This," said President
Roosevelt, "is more money than has ever been spent by any
nation at any time, in the history of the world. 11 The actual

- 37 -

spending for war purposes had risen to 100 million dollars a
day in April and would reach 200 million a day by the end of
1942 .
The billions for war must be paid by the American people
in one way or another . They were prepared to pay a considerable part of it on a cash basis . The national income - - that
is, the total received by the people in wages, rents, profits
and other receipts -- had risen from about 77 billion dollars
in 1940 to an estimated 115 billion in 1942 . From this income
the people could make cash available for war expenses in two
principal ways. They could pay it out in taxes or they could
lend it to the government by purchasing bonds.
To pay so far as possible in taxes was desirable from the
standpoint both of the present and the future. But bow much
'taxation could the people bear? Many members of Congress
believed that income taxes could not be made very much l arger
without injuring mor al e. The net tax receipts of the Federal
government in the fiscal year 1941 (ending June 30) were about
7½ billion dollars. Higher tax rates raised them to about
12 billion in 1942 . Because of the rise in national income,
the same tax rates would bring in about 16½ billion dollars
for the year ending in June 1943.
But this was less than a quarter of what would be spent
for war in that period. The President ' s budget message in
J anuary 1942 had estimated total government expenditures at
nearly 59 billions, of which nearly 53 billions were for
defense. Later estimates raised this to a total of 73 billions
which more than 67 billions were for war purposes . Unless the
tax rates were raised, more than 56 billions would have to
be borrowed and added to the national debt . The President
proposed to increase federal taxes from the estimated 16½
billion dollars to 23 or 25 billions, leaving about 48 billions
to be borrowed .
Of the 48 billions to be borrowed, the greater part would
have to come from the sale of government marketable securities
to banks, insurance companies, and other large investors .
Secretary Morgenthau was determined that the great mass of the
American people should participate on as large a scale as
possible in the responsibility of financing the war and in the
security to be gained by investing their increased earnings in
the future of their country. The Treasury felt sure that
through the payroll savings plan and the sale of War Bonds to
individuals would bring in a billion dollars a month to help
pay for the war.
The only alternative proposed by many members of Congress,
and several financial leaders was to have an "enforced savings
plan" under which people would be compelled to invest a

- 38 -

certain percentage of their income in bonds> redeemable at the
end of the war . Some wanted to impose a general sales tax.
The importance of the saving of war earnings for the
future would have two other results, besides helping to
finance the war . First, it would help to absorb, during the
course of the war, the excess purchasing po;rer of the nation
which was a constant pressure toward inflation . Second, it
would provide a great cushion for the future - - for the days
after the war when employment would decline and people uould
need large savings to see them through the period of readjustment.
The greatest single contribution the nation could make
toward paying for the war was to avoid infl ation . It was
estimated that inflation had made the first World Far cost
50% more than it should have cost, without adding a single
thing of value . 'Pres i dent Roosevelt, in April 1942, put
before Congress the government ' s measures to check inflation:
heavier taxes to keep profits at a low reasonable rate,
ceilings on prices and rents, stabilized wages, stabilized
farm prices, more billions into war bonds, rationing of all
essential commodities which are scarce, and r educing debts
and mortgages and discouraging consumer credit. These
measures, if successfully applied, might well prove to be
worth as much as 50 billion dollars a year to the American
On Tanuary 2nd Graves called me to his office . His
question was a tough one -- whether we should replace the
Collectors who were State Administrators . There was no
question they had done an excellent job in starting the
program in their respective states and most of them had formed
a good state organization of volunteers . The Tnternal Revenue
Service was not pressuring for their return, even though many
of them were spending more time in the program than on their
duties as Collectors . It was evident they would object
strenuously to being removed, especially since the war had
started. They had done the bond job well but they were not
experienced promotion men or finance experts . It was my
judgment to keep them in their positions for the present.
On Ted Gamble 's arrival from Oregon there were several
conferences with Graves~ Odegard and the section heads. Ted
became rapidly acquainted with the operation of the Fashington
Staff. With his leadership we plunged into the preparation of
plans and materials for a national pledge campaign to be held
in March and April . Ted thoroughly believed that you
must ask people to participate in the bond program - - at home

- 39 -

and on the job . We must use the volunteers to sell the
importance of buying bonds by everyone .
On January 16, a tragic event occurred which shocked the
entire nation . During 1941 leading celebrities in the
entertainment field rallied to the bond program. After the
!Jnited States entered the war, the entertainment world went
all out for bond promotion. Through the motion picture
industry we secured top stars, featured players and starlets
at bond rallies .
One of the leading, and one of the most beautiful s tars
was Carol e Lombard. She was in great demand . At the request
of the Washington Staff she volunteered to attend the Far
Bond Rally at Indianapolis, Indiana on Januar y 15 . She made
a radio address and gave press interviews in the interest of
the bond program enroute from Hollywood. The bond rally was
a huge success, attended by 20,000 persons, and she sold a
total of $2,000,000 worth of bonds during the course of the
After the bond rally Carole took a plane home to Holl y wood . Thirty miles south of Las Vegas, Nevada the plan
struck a mountain and all passengers were killed.
On Tanuary 21 , an unusual drawing in color, paying
tribute to Carole Lombard ' s service to the nation as a bond
salesman appeared on the front page of the Chicago Tribune .
Pledge Campaign
As of December 31, 1941 there had been sold over two and
a half billion dollars of Series E, F and G bonds . An anal ysis
of these sales showed there was not a large enough percentage
of the total in funds of less than :t500 denomination. It was
evident that a concentrated effort should be made to reach
the great mass of the people -- the small investor . The first
big move in this direction was in ('llarch and April when a
nation- wide pledge campaign, and a stepping-up of payroll
savings was promoted.
The slogan was, "Let 's Make Every Pay Day Bond Day . "
Under date of JIIarch 2, 194?, Sylvia Porter wrote in
her column·
"You've undoubtedl y been reading a great deal about
Defense Bonds recently and have heard much about how
essential it is for you to buy them -- but judging from
' insider' reports today, you haven 't seen anything yet .
begun 10 months ago
"The Preasury's selling drive
when America was at peace, speeded up by internal momentum

- 40 -

when America went to war - - only now is getting into full
gear . The official campaign actually is just about to start .
"And here are some of the developments you'll see in the
next few months:
"(1) A house- to- house canvas by volunteer workers,
guided by local selling committees, to check up on how many
bonds you have bought, if any, and to discover how you're
managing your savings plans in general:
"(2) The creation of committees for states, counties>
municipalities and districts to direct the adoption of payroll
allotment plans by all corporations and business firms, no
matter how big or small :
"(3) A promotion campaign of unprecedented proportions
carried on through newspapers, magazines and over the radio,
"(4) An educational drive, through all mediums of
public expression to teach the importance of saving, whether
through Defense Bonds or any other means -- just so long as
it's saving .
"The volunteers who will be going around from house to
house will try to teach the millions who today are spending
to the limit of their earnings, the evils of their actions.
They 1 ll attempt to sell bonds 'on the spot' .
"Watch this drive . Within six months it well may
parallel and even may surpass the efforts of those who sold
Liberty Bonds during the first Horld 11Jar . Defense Bond sales
of $1,000,000,000 a month may have seemed big before
December 7, but that total is insufficient today.
"This week, when the bankers convene at Chicago for a
special meeting they ' ll formulate a broad program for selling
the bonds . On this campaign 1.Jall Street and Washington are
working hand in hand."
The pledge campaign was supported by posters, newspaper
ads, radio and other media. The volunteers carried with them
pledge cards to be signed pledging to purchase Defense Bonds
or Stamps each pay day. They also had folders explaining the
bonds and the reason people should purchase them. The first
state to complete its pledge campaign was Oregon. It took
Oregon's Minute Men only 72 hours to contact 85% of the state's
297,000 income receivers . The house - to- house canvas method
was used. The early accomplishment of Oregon was not
surprising due to the excellent community organization Ted
had organized.
Several states utilized specialized methods and others
conducted the campaign along occupational lines . For example,

- 41 -

North Carolina organized along lines of their annual Community
Chest drive. Georgia and Washington set up campaigns as
military organizations . Maryland and Michigan sugar- rationing
program was used as a means to contact citizens f or pledges .
In Indiana, April 12 was known as "Bond Sunday." All
3,910 polling places in the state were open from 12 noon to
10 P. M. and the pledge campaign was conducted on an election
basis . Approximately 85,000 volunteer workers made a
determined effort "to get out the vote" for the pledge
campaign. All telephone users on "Bond Sunday" and the day
before, through the cooperation of the Telephone Company were
reminded of their patriotic duty to visit their election
precincts and make their pledges . Transportation to the polls
was arranged .
As a result of the pledge campaign and the advertising
with it, there were few Americans who did not know about War
Bonds .
During the pledge campaign, on April 15, 1942, Secretary
Morgenthau issued Treasury Department Order No. 45 as
"The name of the Defense Savings Staff, established by
Treasury Department Order No. 39, dated March 19, 1941, is
hereby changed to War Savings Staff, effective immediatel y . "
There followed on June 1, 1942 the change of Series E,
F and G bonds to 1,1ar Savings Bonds . The change was in name
only. The terms of the securities remained the same.
The War Bond Quota Campaign
The first War Bond quotas given to states and counties
were during May, June and July, 1942. Many states had asked
for a goal . They had said, "What do you expect from us in
the way of bond sales? Are we doing a good job? Give us a
figure and we will try to attain it."
Secretary Morgenthau and Ted Gamble were enthusiastic
about giving quotas . Most business concerns operated on some
kind of a goal. Most salesmen were given a quota . Graves
and Odegard were not so sure about a quota system. Of course
the T~easury could base a national goal on what was needed
from individuals. The difficulty was taking into consideration all the elements of a state in order to give a fair
quota . If you gave a state a quota that was impossible to
reach, it would be discouraging and you could antagonize the
ent ire state volunteer organization . The elements to be
considered were different in each state -- population, income,

.. 42 -

tot a l savings depos i ts, farm income, retail sales and various
other s . Ther e were companies with branches in other states
where the payroll was made up at the head office. Where the
bonds were i s sued would receive credit for the bond sal es .
There were many companies located on the borderline of a state
where most of the empl oyees l ived in the adjoining state .
Then there were d i sasters that had to be considered -- floods,
cyclones , tornadoes and poor farm crops.
Even with all the statistics and information that could
be secured from the Internal Revenue, Department of Commerce,
Department of Agriculture and from the states, it was a
problem to give a fair quota to each state . The figures were
gathered together by the Research and Statistics Division of
the Treasury and the quotas of each state listed. Graves,
Odegard and Gamble would go over them. Before the state
quotas were issued prior to a War Bond Drive, there was always
a few state Chairmen who would insist that their quota in the
previous drive was too high and unattainable, and ask the
quota be l owered . In most cases Ted could sell them on their
quota but in those cases when he could not he would lower
their quota slightly and add it to some other state, or
divide it among several states .
In some instances a Congressman got into the quota
discussion . Naturally he was proud of his state and when his
state failed to make its quota, ther e was something wrong
wi th the Treasury ' s computation. Why we did not make some
serious enemies and cause some serious resignations, I don ' t
know, except that Ted with his personality and salesmanship
could sell the idea we were doing our best. The Division of
Research and Statistics did a good job in a difficult task .
Anyway, the quotas during the war period were a headache.
On April 23, Secretary Morgenthau, Secretary Wickard and
leaders of business and labor broadcast over the Blue Jlletwork
a discussion of the War Bond ~uota Campaign and the 10 per cent
Payroll Savings Plan . It was the Treasury ' s objective to
obtain 10 per cent of the national pay check in bonds wit h a
country - wide quota of 600 million dollars in May, 800 million
in Tune and hitting the billion dollar figure in July . The
principal method of achieving these goals was through the
10 per cent payroll savings plan .
Milton Murray, president of the American Newspaper Guild,
CIO, was appoi nted as consultant to the War Bond Staff to
assist the Press Section in developing publicity plans for
the campaign.

- 43 -

On April 25, the war bond quotas for each of the 3.070
counties in the ·.·nited States were released . Announcement
of the quotas was front page news in virtually all newspapers .
In addition to carrying straight news stories, editorials
and editoria.l cartoons, hundreds of papers carried the maps
of their states with the figures for each county written in .
Leaders of Catholic , Jewish Rnd Protestant faiths were
heard in a nationwide radio broadcast in the quota campaign
- - the theme was "The 3ational Tithe . "
On 'lay 21 Mrs . >Ienry ].1orgenthau, wife of the Secretary,
conducted a round- table discussion on "Women's part in the
War Bond Quota Campaign," in a radio broadcast from
Washington .
The "Bull's Eye" symbol was used in the campaign and
the theme was, "Everybody, Every Pay Day Ten Percent . "
Indian River County, Florida was the first county in
the United States to over- subscribe its May Har Bond quota
in cash sales . Three states claimed the number one slot
topping quota -- Oregon, Tndiana and Connecticut .
The results of the three month quota campaign in sales
of Series E, F and G War Bonds were:
Total Sales

$ 600,000,000

$ 800,000,000

$ 634,357,000

$ 633 , 945,000
$ 900 ,861,000

It was apparent from these figures and from information
we gathered that a three month campaign or drive was too l ong
to sustain the concentrated publicity and promotion .
"Stars over America" Campaign
Beginning with January 1942, personal appearances of
celebrities promoting and selling bonds and stamps became
more frequent . The following tabulation, month by month to
September 194~, shows the rapid increase in this type of




- 44 -



C'elebrity appearances were financed in three ways: by
local committees when they requested a star, by commercial
concerns, or by the film industry through its War Activities
Committee . The great number of star appearances were made
possible through organized tour s projected and paid for by
individual motion picture concerns, or combined companies .
On August 31, a rall y on the Treasury steps l aunched the
great "Stars Over America" Har Bond tours . The motion
picture industry, through its Har Activities Conm1ittee,
united with the War Bond Staff and arranged seven tours
throughout the United States . The various stars were divided
into seven groups and assigned to the tours which visited
353 cities and towns during the month of September .
Appearances were not at theatres but at public mass meetings,
bond luncheons, dinners and factories .
The rally at the Treasury was a great success . More than
35,000 persons witnessed the two hour program and thousands
stood in long lines to buy bonds . Radio broadcasts and news reel shots publicized the tours . The stars assigned to each
group were·
Group f'-1
Group J/2
Group #3
Group -'.14
Joan Leslie
Ronald Colman
Walter Pidgeon
Lynn Bari
Adolph Jvlenjou
Bette Davis
Ralph Bellamy
Janet Gaynor
Basil Rathbone
Richard Arlen
Jean Parker
Nigel Bruce
Walter Abel
Ginger Rogers
The Ritz Brothers

Edward Arnold
Frances Dee
Gene Tierney
Chester Morris
Lorraine Day
Andy Devine
Vera Zorina

Tames Cagney
Fred Astaire
Hugh Herbert
Illona Massey
Dorothy Lamour

Group ;-J15

Group /,'6

Group -u.rr

Greer Garson
John Payne
Jane Wyman
Veronica Lake

Halter Abel
William Gargan
Hedy Lamarr
Irene Dunne
James Cagney
Lynn Overman
Paulette Goddard

Ann Rutherford
Charles Laughton
Virginia Gilmore
Connie Bennett

At Huntington, \Jest Virginia , the War Bond rally with
Greer Garson, the attendance was 12,000; at New York City in
Wall Street Charles Laughton read the Bill of Rights and more
than $500,000 worth of bonds were subscribed; at San Francisco
for two days in the Bay area, Joan Leslie, Adolph Menjou and

Walter Pidgeon covered c1v1c l unche ons, do\omtown rall ies and
shipyards; and Philadelphians r esponded to the salesmanshi p
of Hedy Lamarr.
War Bond sales reported in connection with the s tar's
visits totaled in the hundr eds of millions of dol lar s. The
grand climax of the "Stars Over America" tours and of the
entire September drive of the mot i on picture indus try came on
September 30, 1942, when in New Yor k City ' s Madison Square
Gar den, stars from all of the tours gathered together t o
stage what was one of the l argest and most spectacular bond
ral ly and patriotic event of its kind ever held . The pr ogram
was broadcast over nation-wide radio networks to an audience
of many millions .
Minute Women at War Week
At a conference in '•lashington, D. C. on September 2 - 4,
pl ans for "Women At War Week" were pr esented to State Women ' s
Chairmen and other Har Bond leaders .
Miss Harriet Elliott, Associate Field Director, in charge
of the Women ' s Section, War Bond Staff, presented the plans to
use thousands of women volunteers, and women sales special ists
recruited from women's organizations. They would steadil y
bombard every hamlet, village and city in America with appeals
to swell the sale of bonds and stamps . A large easel, with a
series of l arge charts, was used to illustrate each phase or
point in the program. Forty thousand copies of these charts
and an explanatory text was distributed during September to
local women's groups .
One of the highlights of the three day conference was a
White House luncheon at which Mrs . El eanor Roosevelt addres s ed
the women on their role in the war effort .
During the conference talks were given by Mrs . Henry
Morgenthau, Dr. Mabelle Blake, the six women regional advisors
and several other members of the '•lar Bond Staff, covering the
different phases of the campaign and the bond program.
Many excellent promotional materials were issued in
preparation for this campaign - - a 52 page guide book for
women volunteers; a suggested plan for retailers; arm bands
with the slogan "Save 3 - Get 4"; an attractive poster
captioned "She ' s Ready Too"; a 3-way panel, 60 by 39 inches
in size, easily portable and practical as a background for
temporary bond booths .
These materials together with the work done by the
volunteers in the campign stimulated the sale of War Bonds and

- 46 -

Stamps and especially assisted in the payroll savi ngs drive .
Firs t µar Bond Drive

period of the fi r st war bond drive was from
30 to December 23, 1942.
sl ogan: "Keep 'Em Flying."
goal: 9 bil lion dollars .

The drive was conducted by two organizations operating
separately: the l•lar Bond organization and the Victory Fund
Committee . The latter organization consisted of twelve
committees, one for each Federal Reserve District, and wer e
composed of volunteers from every type of financial institution -- men experienced in the security business . Each
Federal Reserve nistrict Committee was headed by the Presid~nt
of that Federal Reserve Bank as Chairman of the Committee .
The Victory Fund Committees t!rere to promote the sale of
the following securities:
1- Series F and G bonds.
? _ Victory Bonds - 2½'s - 26 years due December 15, 1968
- callable December 15, 1963 - connnercial banks not
permitted to hold until 10 years after the date
of issue .
3- 1 3/4% bonds due J une 15, 1948 - available to banks
and others .
4- 7/8% Certificates of I ndebtedness due one year after
5- Tax Savings l\Totes "A" and "C" and treasury bills .
The War Bond organization was to promote the sale of E
bonds and conduct an intensified drive to increase Payroll
Savings. The plans for the campaign were presented by the
War Bond Staff at a second national conference held in Kansas
City, Missouri from October 26 to 28.
On November 16, with the slogan "Top That 10 Percent by
New Years " as the ral lying cry a tremendous nation- wide drive
was launched to complete the payroll savings job . A terrific
barrage of press, radio, outdoor, movies and other types of
advertising was used.
The specific objective was to increase the number of
persons enrolled in payroll savings plans and to increase
average payroll savings from 8 per cent to at least 10 per
cent of earnings . It was estimated on Fovember 15 there were
22 million persons enrolled and the goal was 30 million.

- 47 -

Achievement of this objective would increase payroll savings
from approximately 300 million dollars to 500 million a
month .
Under date of December 1, 1942, a pamphlet was issued
with the front page a duplicate of the Secretary of Treasury
l etterhead addressed "A Message to American Employers and
,,1orkers" and signed by Secretar y Morgenthau. The pamphlet
was an excellent promotional piece on payroll savings, setting
forth the goal, the importance of the job, the pattern and
rules to top the 10%, the captains job and advertising
materials to be used. It contained a message from President
Roosevelt stating, "The time is Now . Every dime and dollar
not vitally needed for absolute necessities shoul d go into
War Bonds -- to add to the striking power of our ar med
forces . "
The goal of 9 billion dollars was exceeded:
Total Sales ------------- -------------$12,947,ooo,ooo .
Sales to Commercial Banks-------------$ 5,087,000,000 .
Sales to Won- Banking Investors ----- ---f;; 7,860, 000,000.
To many the result was not very satisfactory:
Series E bonds------------- - --------- ---$ 726,000,000
All types of Securities to individuals --$1,593,000,000.
In analyzing the results, there should be taken into
consideration that the marketable securities were availabl e
for only the period of the drive and the E, F and G bonds
were on sale continuously; that the drive was for only 24
days; and that the 1-lar Bond organization objective was to
secure JO million payroll savings workers . This was achieved
in December .
Speclal Events
During the year 1942 there was a continuous promotional
campaign by the War Bond organization. Besides the "Pledge
Campaign", the "War Bond Quota Campaign," the "Stars Over
America," the "Minute Women at War Week" and the "First War
Bond Drive," there were thousands of promotional and advertising events by the Washington Staff and the state organizations . It would take pages to list and explain all of them.
Therefore, in order to show some of the coverage, there are a
few herewith listed:
January 2 -- David Sarnoff, RCA president and chairman
of the NBC Board, will serve as head of the r•rational Defense
Bond Minute Men. The appointment of ?9 other Minute Men
·were announced .

- 48 -

January 10 -- The Treasury Hour radio program was named
by "Variety" trade paper of r adi o , stage and scr een , a s one of
the best programs of 1941 .
January 11 -- The f i r s t Negro radio progr am, r egularly
scheduled for the Defense Bond program, was beard over CBS,
tit l ed, "Wings Over Jordan . "
January 16 -- Special foreign language groups -- Germans,
I talians, Croats, Japanese, Ukranians, Syria~s, Roumanians
and Serbians -- are investing their savings in bonds or
helping raise funds to purchase bonds .
Crockett Johnston , representing a group of magazine
cartoonists came to Washington to inform the Treasury that
the nation's magazine would provide the Defense Bond program
with cartoons for Trade publications and house magazines .
January 21 -- Stamps will be placed on sale in 5000
Western Union Telegraph offices during the week.
January 23 -- There are 1,015 radio Minute Men now
broadcasting bond accouncements daily in English and eleven
foreign languages.
January 26 -- Sabu, the "Elephant Boy" of the
Alexander Korda films, began his nationwide tour of Newspaper
Carrier Boy meetings .
January 30 -- Miss Dagmar Norgard, representing the
publishers of All- American Comics, Inc . met with the
Washington Staff to present a plan for organizing the more
than 4o publishers of comic magazines in support of the
bond program.
Defense Savings Day in Altoona, Pennsylvania, where
clerks in all stores were assigned $10 . 00 worth of Defense
Savings Stamps to sell to customers.
February 1 -- "Buy a Bomber" campaign was started by the
New York Journal American and the Los Angeles Examiner. There
followed a few days later similar campaigns by the Washington
Post, Radio Station WJSV in l~ashington, the Chicago HeraldAmerican and the San Francisco Examiner.
February 2 -- At Boston there was started the tour of
Kargere collection of miniature dolls by Audrey Kargere, well known stylist and sculptress .
February 3 -- Broadcast by Secretary Morgenthau over the
Blue Network at which Secretary of avy Knox presented the
Navy's check for Defense Bonds on payroll savings of their
"Bugs Bunny" cartoon by Leon Schlesinger appeared in a
short which was available for distribution throughout the
countr y .

February 20 - - Minute Man recordings were made by United
States Senators, and with their photographs were sent to their
home state daily newspapers .
February 22 - - Broadcast by Secretary Morgenthau and
William Green, President of the AFL , over the Blue network,
to be heard at planned meetings of 805 AFL locals.
February 27 - - Pl ans were completed to utilize the
nation ' s securities dealers . Special bond application forms,
for use of the securities dealers, were prepared and distributed through the Feder a l Reserve Banks . One hundred and forty
nine dealers in all 48 states were designated by the National
Association of Securities Dealers, the Investment Bankers
Association of America and the Association of Stock Exchange
Firms to work with State Administrators . Coordination of the
securities dealers was in charge of T. J . Bryce , partner of
Clark, Dodge and Company, Investment Bankers.
The publicity and advertising division of the Motion
Pictures I-Jar Activities Committee completed plans to place
Defense Savings Stamps on sale in virtually every theatre in
the country.
698 radio stations are using, three times weekly, the
new transcribed fifteen -minute, "The Treasury Star Parade."
March 10 -- The Secretary of Agriculture informed the
Department of Agriculture Har Bond chairmen that they should
be prepared to cooperate with the War Bond State Administrators
in conducting the canvas of farm families .
March 20 - - Special War Bond announcements were wired to
all radio stations urging bond purchases in a news tie -up of
General MacArthur 's arrival in Australia.
March 25 -- Editorial appeared in all Scripps- Howard
newspapers which presented in detail arguments in support of
the Treasury not paying for advertising in the promotion of
War Bonds and Stamps .
'.4arch 27 -- Installation of the payroll savings plan was
made in the War Department, making bond purchases available to
approximately 2½ million men and women in the Army , and
500,000 civilian employees .
The first meeting of the Church Press Advisory Committee
was held in Washington to work out plans for increasing amount
of material for use in church publications .
April 13 -- Through the cooperation of MGM, the national
champion drum majorette, Betsy Parker, and Dorothy Schoemer,
tap dancer, both starlets from MGM's picture, "Ship Ahoy"
initiated a national tour for bonds at the Gridiron dinner in
St. Paul, Minnesota. The starlets will stay on tour until

- 50 -

enough bonds and stamps are sold or pledged to buy a destroyer
at $3,500,000.
At a ser ies of three rallies in Hartford, Connecticut,
featuring Carole Landis~ Dorothy Mackaill, Raymond Massey,
Barry Wood, Edna Ferber and Clem McCarthy, the amount of
$3,000,000 in bond sales was raised .
April 15 -- In cooperation with OCD , the Bond organization
staged four "Town Meetings for War" in Amenia, New York;
Hannibal, Missouri; Ontario, California; and Tuscaloosa,
April 24 -- War Bond feature articles by leading American
wr iters -- Kathleen Norris, Mary Roberts Rinehart, Thomas
Mann, Carl Van Dorn, S. J. Perelman - - were rel eased to IJ\TS,
AP and UP.
May 1 -- The first edition of the "Retailers for Victory"
magazine was rel eased, published by the Retail Advisory
Committee, a contribution of the National Cash Register
Company .
May 12 -- The Treasury Department announced its policy
-- its disapproval -- in reference to the use of bonds and
stamps as prizes, discounts, or gifts in connection with the
pr omotion and sale of merchandise, or as prizes in lotteries,
games of chance and the like . The Treasury's objections were
based on consider ations of public policy and do not depend
upon the legality or i l legality of any of the devices or
games in question.
May 18 -- Rear Admiral Charles Conard was appointed by
President Roosevel t to head the payroll savings pr ogram in all
government departments . At a meeting of the members of the
Interdepartmental War Bond Committee a plan was adopted
modeled on the Navy Department and the Treasury Department
payroll savings .
May 31 -- The color comic, "Small Fry", contribution of
Al Capp, was published for the first time in 85 of the nation ' s
leading newspapers .
June 1 -- The "Tank for a Yank" tour was started with
Johnny Sheffiel d, "Tarzan, Jr . "
June 5 -- Richard Litton, Pfc . of the 4th Motorized
Division, Camp Gordon, Georgia was announced the winner of
the Treasury's Far Bond March contest for writing the words
of a new marching song titled, "Save the American \Jay."
June 13 -- The "Jeep Tour" was started with Marlene
Dietrich .
The first Treasury certificate of award to go to an
Internati onal Union for achieving 100 per cent participation
in Ward Bond purchases was presented to James C. Filgate,
Secretary of the Inter national Association of Siderographers .

June 15 -- Two official War Savings Bond emblems were
adopted -- one a target lapel button and the other a red, white
and blue window sticker. Both of them connote ten per cent of
income participation in purchases of War Bonds . The sticker
read, "We're Buying at Least lCP/o."
War Savings Stamp corsage sales were started. Various
department stores throughout the country sold the corsages for
$1.00 as boutonnieres for suit and dress decoration. The press
and women ' s fashion magazines gave this patriotic vogue their
attention. The Saturday Evening Post made a cover around the
June 16 -- The 8- plane "Air Cavalcade" was started at the
New York City La Guardia Field. This was a joint project of
the Treasury and Army Air Force to promote War Bonds and
Aviation Cadet Enlisted Reserve.
June 19 -- As a result of the trial of several plans,
two distinct systems of savings by farmers were adopted. Farmers
with regular monthly income, such as dairymen and poultry raisers,
could have their cooperative deduct stated sums monthly. Farmers
who deliver crops to their cooperatives only once a year could
have a per cent of each sale or a stated amount per bushel,
or other unit deduction .
Contractors engaged on cost- plus- a -fixed fee contract with
the government were now permitted by the War Department to
qualify as Issuing Agents for War Bonds in order to accomplish
the delivery of bonds to employees, when contractors were
administering payroll savings plans.
June 24 -- The Post Office Department issued an order
authorizing rural postal carriers to accept applications for
War Bonds. The postal carriers had been selling War Savings
Stamps for several months .
Jul y 1 -- As a result of numerous requests by purchasers
to be permitted to put more money into the war effort, the
limitation on holdings of War Bonds, Series F and G was raised
from $50,000 to $100,000. No change of $5,000 in Series E bonds
limit in any calendar year was made .
July 2 -- All July magazine covers featured the American
Flag and War Bonds.
July 27 -- More than 7ofo of all r adio stations in the
country agreed to become direct agents of the Treasury in selling
August 8 -- Of the 868 radio stations in the United
States there are now 815 radio stations broadcasting the
Treasury Star Parade series of programs.

- 52 -

August 15 -- Effective today the famous Minute Man flag
will represent 901o employee participation and 100/4 of gr oss
payroll invested in War Bonds . The banner previously had been
displayed by firms enrolling 90% of their employees in the
payroll savings plan.
August 19 -- Jacob Ulevich, Assistant Secretary of the
Acme Savings% Loan Association of Milwaukee had sold 1632
bonds with maturity value of $330,025 -- 9cr-/4 of the purchasers
were wage earners of foreign birth or parentage.
August 29 -- The Blue Network, comprising 142 stations
from coast to coast on the air selling War Bonds for seven
hours . This was the first time an entire network attempted a
bond selling job. They sold $10,666,000 worth of bonds.
September 2 -- Sir Hinston Churchill purchased a $100
Series E bond. He was the only non- citizen who was permitted
to buy a War Bond .
September 6 -- The War Bond mural in Union Station at
Chicago was unveiled . It was sponsored and donated by the
Chicago and Cook County Building and Construction Trades
September 12 -- The two General Electric plants at
Bridgeport, Connecticut were the first to fly the new official
"T" payroll savings 90- 10 participation flag .
September 15 -- The Lockheed- Vega Aircraft Corporation
at Burbank, California signed up more than 97% of the 60,000
employees to set aside 10. 131/4 of the gross payroll for War
Bonds every payday .
September 22 -- The Boston and Maine Railroad was the
first railroad of more than 300 employees to allot 10% of its
gross payroll to the purchase of War Bonds .
September 25 -- The "Schools at War" program was launched
with the slogan "Save, Serve and Conserve ." Mrs . Roosevelt
participated in the broadcast on the Mutual Broadcasting
System. A special 8-page publication was mailed September 12
to all daily and weekly newspapers, superintendents of schools
and to high school papers.
October 26 -- Enrollment of workers in Payroll Savings
passed the 21,000,000 mark.
October 27 -- The tour of the two- man Japanese submarine
(suicide sub) was started.
November 5 -- All 435 employees of Board of Governors of
the Federal Reserve System enrolled in the payroll savings
plan with 10.7% of gross payroll . This was the second Federal
Agency to achieve such a record.

- 53 -

November 9 -- The new \far Bond song by Sergeant Dick Uhl
and. Cor poral Tom Adair was r el eased . The title was
Ev ' rybody Ev ' ry Payday . "
November 24 -- The number of Americans who have purchased
Har Bonds has reached 50,000,000 .
November 27 -- The Chr istmas Card cr usade was
December 4 -- The "Information Please" tour was star ted
from Boston.
December 7 -- To promote the purchase of War Bonds on
December 7th, the Navy Department civilian employees adopted
the slogan, "Let ' s Give the ,Japanese Something to Remember on
Pearl Harbor Day. 11
During 1942, there were thousands of special promotions
in the states . Some of them were amusing, such as the one in
J\Tebraska, titled, "Getting Hitler ' s Goat . 11 The Wilson ,"Y.
Company bond wagon was a large old- fashioned wagon drawn by a
team of fine Clydesdale horses . During the year the wagon
appeared in many parts of the country in behalf' of the War
Bond program. Passing through I1Tebraska it had with it a goat
which was about as dirty and unfriendly as any goa.t one could
find . However, it made a great hit at the war bond auctions .
In less than a week it was sold over and over again (the
buyers were only too glad to return it) to bring a total of
$90,000 in lfar Bond sal es .
Administration and Personnel
During 1941 we had built a solid foundation of personnel
in the Washington Staff. With the assistance of the Collectors of Internal Revenue and Customs, we had made a good star t
on a field organization -- all of this in a period of defens e
preparation without a war incentive.
At the beginning of 1942 we knew that the Washington
Staff and the field organization had to be increased and
reorganized at once . Therefore, during the year 1942 many
personnel changes were made and the staff increased to 365
employees to handle the increased promotions and campaigns .
The field organization was increased with several deputy
administrators .
Raiph Engelsman, former Director of Sales of the Life
Underwriters Cammittee for fl1ational Defense left his insurance
business in New York City and was appointed Associate Field
Director in charge of Payroll Savings Section. Additional

personnel was added to this section.
On May 22 Ted Gamble was appointed Assistant to the
Secretary of Treasury at a :l;i . 00 a yea:r .
On July 1, Robert Sparks, Field Director resigned to
return to the Bowery Savings Bank. Robert Coyne was appointed
National Field Director.
On September 8, Dr . Homer H. Anderson, President of the
American Association of School Administrators assumed the
duties as Associate Field Director in charge of the Education
In October the Agriculture Section was established in
charge of Lloyd E. Partain. Dr. 1-lilliam I. Meyers was appoint ed a Consultant to the 1'1ar Bond Staff to develop a comprehensive program for selling bonds to farm people. Dr. Meyers
was the head of the Department of Agriculture Economics,
College of Agriculture, Cornell University and former Governor
of the Farm Credit Administration. This section was considerably strengthened by these appointments.
The National Organization section was also increased.
Dr . Pickens, an outstanding negro leader had done an excellent
job in bringing the negro population into the bond program.
At a War Bond rally at Victory Field, Indianapolis , 8000 people
of all races attended, mostly negroes -- 200 coming from Terre
Haute alone . As one writer stated, "This country has its
internal problems, and will have them, but it has a solid
front for battle against any outside enemy."
The Labor section was increased to continue the outstanding job in payroll savings.
The Women ' s program was expanded to take pa.rt in all phases
of the War Bond progr am -- payroll savings, education, farm,
retail, national organizations, and even in press, radio and
adverti sing. In June Miss Harriet Elliott, Dean of Women of the
University of North Carolina, became head of the Women ' s section
with Dr . Mabelle Blake of Boston as her assistant . Six women
regional advisors were appointed and assigned as follows · Mrs.
Evelyn M. Crowell t0 the Southwestern states, Mrs . Carolyn W.
Wolfe to the Northwestern states, Mrs . Dorothy B. Atkinson to the
Midwest, Mrs . Helene Gans to the Eastern states, ~~s . Nancy G.
Robinson to the Southern states and Mrs . Eleano-r Wilson McAdoo
to the far Western states. Mrs . McAdoo directed the Womens '
Liberty Loan Drive in World War I.
In the Spring of 1942, Secretary Morgenthau talked to
Graves about using Mrs. Morgenthau in the bond program. He
explained that their son was in the armed services and she
was worried. He thought if she was engaged in the war effort

- 55 -

it would help to keep her from worrying so much . It uas
arranged to assign her to the Women's Section. Mrs. Morgenthau
was a motherly type of woman, well educated and with a
pleasant personality . See was of great assistance in getting
things accomplished for the Women ' s program.
We had a small conference room in the Sloan Building
where nearly every morning we had a meeting of the section
heads to discuss promotional plans and materials in order that
there would be no conflict or duplication . On several
occasions Mrs. i1orgenthau attended. We were just sitting
doi-m to one of the morning conferences when Mrs . Morgenthau
spoke up, "Yesterday I was so embarrassed . As you know our
women's conference lasted late into the afternoon and when
we finished I asked one of the Women State Chairmen to have
dinner at our home . \fuen we got out of the cab at home, there
was Henry sitting on the porch with a drink in his hand and
with his stockinged feet propped up on the porch railing . I
was so embarras sed I did'nt know what to say . "
The group smiled. From that time on my feeling toward
the Secretary softened - - he was really a human being.
During 1942 the Field Di vi sion of the Washington Staff
included the Retail, Motion Picture and Special Events, Payroll
Savings, Womens' , Farm and Education sections. The Advertis ing, rational Or ganization s and Administrative sections
operated as separate units. Ted Gamble, as National Director,
reported to the Secretary through Harold Graves . Bob Coyne
acted more in the capacity a s As sistant National Director .
Peter Odegard, Consultant to the Secxetary, handled policy
matters and checked promotional materials.
There were two divisions of the Treasury that worked
very closely with us -- the Bureau of Public Debt which was
in char ge of the Distribution Center in Chicago and the Research and Statistical Division . The latter handled the
statistics on the Public Debt, the sale and redemption of the
bonds and stamps and the various statistical information we
needed in the program. Prior to a War Bond drive they prepared charts to present to the conference showing the
financial situation and prepared the information on the quotas
for the various states .
In the state organizations, during 1942, there were few
changes of State Chairmen and State Administrators . Four of
the Collectors of Internal Revenue resigned - - Indiana,
Louisiana, Rhode Island and Tennessee. Lipe Henslee of
Tennessee resigned to enter the Navy. Three other State

Administrators resigned -- l\Jebr aska, Ohio and l'rew Hampshire.
William Starr of 1\Jew Hampshire resigned to enter the Navy.
There were only three changes of State Chairmen - Florida, 1'ew Jersey and N"W York .
In the larger states it was necessary to add Deputy
Administrators to handle the increased promotional programs
or to cover certain portions of the state .
Sales Results
The sales of Series E, F and G bonds by months during
1942 were as fo llows:
January -------$1,060,546,ooo
February -----703,200,000
March --------557,892,000
April--------530 , 502 ,000
- ------ -634,'i57. 000
,June --------633,945 ,000

July ------$ 900, 861 , 000
August ---- 697,255 , 000
Sept ember - 754,684,000
October - -- 934,998,000
December --1,014>168,000
Total --- ~~9,156,957,000.

During the year there were sold 1,436>953 Har Savings
Stamps at a value of $308,621,000. There were redeemed
$358,454,000 (included stamps sold in 1941 ) of which
$il 7,043,000 were redeemed for bonds and $41,413,000 were for
cash or Postal Savings Certificates .
Redemption of Series E, F and G 1·Tar Bonds were insignificant in volume compared either with the total amount outstanding or with the month- by-month sales -- 42/100 1 per cent .
Each bond carried on :i.ts face a statement that it could be
redeemed for cash at any time beginning 60 days after ifil:J.e
issue date in the case of Series E bonds, and 6 months after
the issue date in the case of Series F and G bonds. A table
of redemption values by six month periods was also printed on
the face of each bond.
In November 1942 a survey was made by the American
Institute of Public Opinion (a selective sampling process)
which disclosed that four out of five adults had bought either
Wa.r Bonds or Stamps. Analysis of the survey revealed that the
percent of purchasers varied as fol lows in different groups:
'fad Bought
Middle Income and well- to- do-- -- - 90
Lower income group-- - -- - ------- 71
Farm ------- ------ - - -- - - - - - ----City (10,000 population or over)

- 57 -

During 19l.~2 the American Naval Forces had gradually halted
the Japanese Navy at the Battl e of the Coral Sea, Midway and at
Guadalcanal . The Japanese finally withdrew from Guadalcanal on
February 7, 1943 . The United States had gradually turned the
preponderence of strength to the side of the American Fleet .
In Europe , during August 1942, the Dieppe raid designed to
test the defenses of the Atlantic Wall proved that the defenses
were stronger than anticipated. The force of 5000, chiefly
Canadians, suffered losses of over 3300. It was clear that a
full - scale assault would be a formidabl e one. It was decided to
postpone the attempt and to embark instead on the conquest of
North Africa .
In Africa, during October 1942, the German- Italian armies,
commanded by Field Marshal Rommel , and the Eighth Arirry commanded
by General Alexander stood in strongly fortified positions . On
November l, the Ei ghth Army gathered its forces for a decisive
effort at a break -through . In a furious tank battle Rommel ' s
ar mour was shattered and his forces embarked on a full retreat
\lhich ended after 1400 miles at the Mareth Line on the Mediterranean coast . While Rommel was retreati ng a powerful American and
British naval force invaded Casablanca, Oran and Algiers . It
was the largest invasion armada that had ever yet been employed .
The uhole Allied enterprise was under the command of General
Dwight Eisenhower . On May 12, 1943 the last organized
resistance was subdued and the whole of North Africa was in
All ied hands .
On the Russian front there uas another turni ng point. In
November 1942 the Russians launched an offensive in two direc tions against the Germans who had pressed their attacks for
months agai nst Stalingrad . February 2, 1943 marked the virtual
end of the struggle around Stalingrad and a German force of
330,000 had been completely liquidated. By March 3, 1943 the
Germans had been dislodged from one of their strongholds
in the Moscow sector. It was the first major setback administered
to the Germans in continental Europe.
On the home- front there h~d been many changes in 1942.
Censorship had been established. Price ceilings had been put
into effect and the whole nation had been registered for

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The a ctual spendi ng by the government for war purposes had
risen from 100 million dolla r s a day in April 1942 to over 200
mill ion dollars a day at the beginning of 1943. The public debt
(amount of interest- bearing debt outstanding) had risen from
over 48 billion on June 30, 1941 to about 72 billi on on June 30,
1942, and by June 30, 1943 it was estimated it woul d be over
135 billion.
In an address to the American Bankers Associ ation , Secretary
Mor genthau outl ined some of the principles of war time financing .
In the addres s he stated: "In borrowing from the peopl e dir ectly,
we intend to make every effort to reach and surpass our promised
goal of 12 billion dollars from the sale of War Bonds and Stamps
in the fiscal year that ends June 30, 1943."
Early in 1 943 the Payroll Savings section issued a pamphlet
titled, "Dollars and Sense" to labor and management . I t was one
of the best promotional pieces issued on payroll savings. It
was stated simply , clearly and direct, and was an attractive
piece . The first part read:
"A year ago , you, l eaders of labor and management, were
asked to do your bit by helping to sell War Bonds through the
Pay- Roll Savings Plan. AND YOU DID IT!
"HERE ' S WHAT YOU DID: At the of 1942, some
700,000 people were investing about $5 , 000,000 of their earnings
each month in War Bonds through the Pay- Roll Savings Pl an . Today,
the 700,000 has swelled to 26,000,000; the $5 , 000 , 000 each month
"FIRST -- Because Uncle Sam is now taking the offensive and
needs more money for war . This year the war is going to cost
many billions more . Where ' s that money coming from? There is
only one place it can come from. The American People! Either
through ta.xes or loans . And, because only par t of this money
can come from taxes, the Government has to borrow the rest .
"SECOND -- We must protect ourselves against ' Dangerous
Dollars .' In 1943 there will be 45 billions in the hands of the
American people over and above the amount of consumers' goods
available to them. These are ' Dangerous Dollars ' burning holes
in people ' s pockets . If we try to spend these ' Dangerous Dollars '
we will -- force up prices -- encourage black markets - - and open
the door to inflation . The people who have this money must be
induced to save by lending it to the Government in the form of
\Jar Bonds .
\IBO HAS THIS MONEY? This year nearl y every group in
America will have a higher income
and a big slice of it is
going to the men and women on the plant payrolls. After meeting
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the 19~3 cost of living and the 1943 rate of taxes -- the people
of America will stil l have more money left over than in any
period of our history. AND - - whereas formerly one member of a
family was working, in many instances, today, several members
of the same family are employed. So that - - in a large number
"OUR JOB THEN IS CLEAR -- (1 ) To help finance and speed the
war, (2) To help ward off disastrous i nflation, (3 ) To provide
a backlog of savings for after the war.
WE HAVE TO SELL MORE WAR BONDS ! 1Q% is not enough . We ' ve
got to regard 100/4 as a starti ng point - - and then on from there .
PAST PERFORMANCES INDICATE practically everybody can put a good
portion of their earnings into War Bonds, and that, workers in
War plants can save considerably more than the average .
"A RECENI' SURVEY SHOWS approximately one-half of all workers
are members of families where two or more are employed -- and -such families can put a REALLY LARGE PORTION of their aggregate
earnings into War Bonds .
"OUR JOB IS TO get every dollar beyond what is actually
needed for l i ving expenses -- to get the people to understand
why real sacrifice -- giving up luxuries and unnecessary spending
-- is expected of them. The most satisfactory and efficient way
to get this money is through increased savings on the Pay- Roll
Savings Plan. "
The pamphlet then went along to tell the way to do it, the
various materials available and the assistance from the War Bond
From May 1 , 1941, we had issued folders and pamphlets
describing the E, F and G bonds and the different features of
each -- registration, redemption , in case of loss, etc .
Evidently many bondholders had never seen the folders or they
had not read them. When the Treasury started receiving all kinds
of questions regarding the bonds, we sent out new folders to
all Issuing Agents and large suppl ies to the State offices .
Sylvia Porter, financial writer, in her column in the
New York Post assisted us in this project by printing a series
of "Questions - Answers" on War Bonds . Under date of February
19, 1943 she wrote her sixth series as follows·
"With close to 50,000,000 of us owning war bonds and the
total increasing every day, it ' s probably to be taken for granted
that many of us are being careless and are misplacing or losing
our certificates -- and judging by the War Bond questions
rec eived by the Post this week, that assumption is entirely
justified. Oddly enough, three readers wrote in simultaneously,
posing different problems arising out of loss of War Bonds.
And each one wants to lmmr how he or she can go about tracing

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ownership, proving loss and replacing the security.
"Luckily, when we buy War Bonds, the Government registers ,
them in our names and keeps the lists up- to- date at all times
at the Treasury Department in Washington. So the problem of
loss is easily solved.
"But before getting into the matter of proper procedure to •
follow to get a duplicate for a bond lost or destroyed, it seems
wise to urge the adoption of a program to protect yourself
against this nuisance.
"War Bonds are valuable certificates , equivalent to cash
and representing your savings .
"If it weren ' t for the fact that the bonds registered
in our names, they ' d be readily marketable a nd transferable anywhere and then loss would be a serious mishap. (When corporate
stock or bond certificates are lost, for instance, the owners
must go through a long rigmarole to make sure no one else can
use them.)
"It ' s scarcely intelligent action to be careful about a War
Bond until you get it home and forget you ' re handling ' money '
and throw it casually into a desk drawer or handkerchief kit .
"Here are some things you should be doing to keep your
financial position straight .
"When you buy a war bond write dmm on a separate piece of
paper the denomination of the bond, the serial number on its
face, the date purchased and the beneficiary or co-owner, etc.
Keep that record in a safe place at all times -- and of course,
choose a spot apart from the box in which you ' re safe-guarding
your bonds.
"And as you buy more bonds, add the figures to the same
sheet of paper so you have a complete, easily obtainable record
of your holdings.
"Then, if and when your bonds are lost or destroyed, you
can tell the Treasury the whole story immediately, save time a nd
expense and speed up replacement .
"Another good move is to keep all your bonds together in
one place that you know is safe and protected from the ' hazards '
of home-kitchen fires, sudden storms, young children grabbing
for paper to play with, frisky dogs and whatever else you can
think of.
"The best thing is to deposit your bonds in a safe- deposit
box at your neighborhood bank.
"The Treasury Department or any Federal Reserve Bank will
hold your bonds in safekeeping for you free of charge and will
give you a receipt. Savings Banks and Savings & Loan Institutions
generally offer safekeeping free to their customers. Many
commercial banks have a free custodianship service and others
charge a minimum fee. Just think of those small certificates

- 62 -

as $25 or $100 or $500 -- and you ' ll automaticall y be more
careful .
"M. G. of Brooklyn, however, ' thinks ' she has lost one of
thr ee bonds she and her husband bought in 1942. Her impression
is th3.t they purchased three bonds but she can only find two .
And she asks, ' how can I go about f i nding out how many bonds are
regi ster ed in our names? 1
"Considering the value of the certificates involved, this
question seems to confirm the wisdom of keeping a separate record.
The fact that M. G. has no r e cord at all of her purchases complicates matters , according to officials of the Federal Reserve
"The best step , therefor e , is to go direct to the Federal
Reser ve Bank and submi t pr oof of identi ty, address, etc. The
Reser ve Bank will check on the bonds registered under M. G. ' s
name and let her know what securities have been issued to her .
"If she does own three and can prove loss of one, a duplicate
of the bond she cannot find at home will be issued by the Treasury. "
A week later Sylvia issued another series of "Questions Answers " on War Bonds which covered explanation of why a war
bond could not be used as collateral on a loan, about coownership
and other important points regarding war bonds .
Criticisms of the Program
Duri ng 1942, and into 1943, the underlying philosophy of
the War Bond program was subject to several attacks. Large
segments of the banking and investment fraternity regarded a
non- negotiable bond as a weak vehicle for a mass sales campaign.
In addition, many in the professional financial circles regarded
the War Bond organization as ineffective , being manned, allegedly,
by mateurs with little or no experience in the securities
business . Also, there was a demand that the or ganization along
state lines be abandoned in favor of either Federal Reserve
Districts or metropol itan trading ar eas .
These crit icisms were not considered seriously by the
Secretary or the Treasury Staff. The negotiable bond to the
people had been carefully considered and quickly dropped. The
bond organization was built along state lines . It was an efficient method of handling the program and the Secretary did not
plan to change it . The Washington Staff uas not intended to be
made - up of financial and security bankers -- they were organization, promotion and advertising experts . In the state organizations there could have been more financial l eaders but in 1941
and 19Lf2 ue vere concentrating on the payroll savings program,
the farm program, the women ' s promotions and the schools. We

- 63 -

were working with the labor unions, the workers, the farmers ,
the women and princi pals of the schools .
The serious criticism that bothered the Secretary was,
"forced savings" or "forced loans." Many highly- placed people,
in and out of gover nment, clamored for a system of forced savi ngs .
Both President Roosevelt and Secretary Morgenthau bel ieved in
the voluntary system. They bel ieved the Treasury could raise
sufficient funds to meet expenses not covered by tax revenues,
and could absorb enough private income to relieve inflationary
demands for goods and services in limited supply.
However, the advocates of compulsory savings were constantly
after President Roosevelt and Morgenthau -- there was Vice
President Wollace, Miss Perkins of Labor , the Office of
Economic Stabilization and Harold Smith of the Budget Bureau .
The Secretary had promised to raise one billion dollars a
month from War Bonds in 1943 . If he failed, voluntarism would
fall with him. He realized this and as a result was unreasonably
critical of the War Bond Staff. President.!Roosevelt ' s remarks
at Cabinet meetings to "needle" Morgenthau did not help the
situation -- "He ' s got his neck out and let hi m hang himself if
he wants to, or else his head goes kaput!" Morgenthau reporting
to Graves , Odegard and Gamble told them that if he seemed
unreasonable in his pressure on them, it 1 s remarks like the
President 1 s that are difficult to take .
On the whole Morgenthau was proud of what the War Bond
program had accomplished. The First War Bond Drive in December
1942 had exceeded his expectations . Aiming for $9 billion the
organization had raised 12 billion 907 million dollars - - the
largest amount of money ever raised by any government in such
a short period of time. The response of the people impressed
the President, and for awhile, protected voluntarism from the
mounting criticism of its opponents . However, Morgenthau was
caught on a treadmill that constantly accel erated due to rising
war costs and the pace of inflation .
In December, Secretary Morgenthau stated at a press conference that he was especially grateful to Harold Graves, his
assistant for many years, who had built up the bond organization,
end to Ted Gamble and Peter Odegard, and their associates.
Second \fo_r Bond Drive
The Oar Bond program, for all its accomplishments, had
never been designed to raise all the revenue the government
needed, or to completely roll back the forces of inflation. It
was to contribute to these ends but it was only one of the
necessary instruments for financing the national defense and the
war. Morgenthau believed that taxation should meet two- thirds

- 64 -

of the costs of the Federal Government, including expenditures
for defense, the war and Lend-lease .
Treasury studies indicated that in 1943 taxes and war bond
savings would have to absorb 16 bill ion dollars, the estimated
excess of income avail able to consumers over the val ue of goods
available to them to buy.
In February 1943, Secretary Morgenthau announced the Second
llm- Bond Drive was to be in April, with a quota of 13 billion
dollars . In preparation of the Drive he brought into the Treasury
two repr esentatives of the Victory Loan group with increased
1.uthority c>t the expense of Graves, Odegard and Gamble. This
\ms a decision which caused a lot of dissention, heated ctrgwnents
and a question in the minds of the War Bond organization, and
others, as to who was going to operate the program - - the Federal
Reserve Bc1nks or the Treasury . The representatives of the Victory
Loan group drew up a. memorandum on the consolidation of the two
organizations. The memo left Gene Sloan out of the proposed
organization and on March 25, 19Lf3 he resigned and became Director
of the Savings Bond Division (Distribution Center) in Chicago.
As a result of the controversy between Harold Graves and the
Victory Loan group, and the lack of decision by the Secretciry,
the direction and plans of the Drive came to a halt. All we
could do was wait for orders .
On March 10 I went to Graves ' office and told him the morale
of the organization was at a low point; that He lacked direction
and plans in order to prepare for the Drive . Graves reply was
"Larry, I will take care of this difficulty. I want you to go
back and hold the organization together . You can do it. "
In a few days we received orders that the Bond Drive would
be from April 12 to May l; the Victory Loan Committees would work
with the War Bond organization similar to that in the First Bond
Drive in 1942, concentrating on the F and G bonds . We understood
the difficulty was not settled c1nd some kind of a consolidation
of the two organizations would be worked out.
In 1:u1 explanation to the -press, the Secretary stated, "I
have got to raise the money. I have got to use the financial
machinery of the country. I have to have their cooperation and
the.t doesn ' t mean I have sold out to them. It would be very
stupid on my part that I should suddenly, at the end of my career
practically sell out to the bankers, particularly when all my
sympethy is the other uay . I don ' t belong to their club and I
have no intention of joining -- and they don ' t want me . "
To some extent, Morgenthau ' s action with the Victory Loan
group was understandable. War expenditures were increasing at
a terrific rate and had to be financed. The Secretary failed to
get through Congress the Treasury ' s taxation program in 1941 and
1942 . The forced savings group was constantly on his neck . The

Victory Loan Committee ' s sales record of F and G bonds in the
First Bond Drive was excellent. And in addition to all this, he
was loaded with problems President Roosevelt had turned over to
him - - the Chinese Loan, Lend- lease s_nd other projects, even
outside the Treasury.
Under these circumstances and arrangements we went into the
Second Har Bond Drive . The Victory Loan Committees were to
concentrate on the F and G bonds, and the marketable securities
as follows·
2-½1, Treasury Bonds of 1964- 69. Buyers could be all
types of investors except commercial banks which
a ccept demand deposits .
2'7o Treasury Bonds of 1950-52 . Buyers could be all
types of investors.
7/&fo Treasury Certificates, Series B - 1944.
Treasury Tax Savings Notes - due 3 years from issue
date . Average rate 1.07 per cent a year if held until
The War Bond organization was to increase Payroll Savings;
handle the promotion of War Bonds and Stamps; make the contacts
with all advertising media; and handle all the distribution of
promotional material .
The slogan for the Drive was, "THEY GIVE THEIR LIVES - YOU
The goal of 13 billion dollars in 19 days seemed like an
unattainable goal . Our promotional material consisted of very
few pieces due to the delay of plans. However, the state
organizations with thousands of volunteers, supported by all
types of local advertising, vent into full speed.
In Hashington the Har Bond Staff waited anxiously for the
sales results
We could hardly believe the sale figures when
they started coming in. The work of two years in organization,
advertising, payroll savings and promotion of all programs were
paying off.
The national ~uota of 13 billion had been divided into 2*
billion from individuals and 10½ billion from all other investors.
The final sales results were:
Total Sales- ---------- ------$18,555 ,000,ooo--142. 7 of quota.
From all other Investors-----15,265,000,000
From Individuals - --- - - - - - ---- 3,290,000,000
There were ~1,473,000,000 of E bonds purchased -- no quota
WRS set.
Our objectives were being reached uhen the finc>.l figures
showed th.,t 22,700,000 of the $25 E bonds were purchased and
4,600,000 of the $50 bonds . Of the 60,000 ,000 people who held
jobs, or 1rho ;-rere in the Armed Services, there were five out of
every six ,,rho were bond holders -- ')0,000,000 people owning
War Bonds.
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In the First World War there were five bond drives between
May 1917 and May 1918. As a result a total of 21 billion dollars
was raised . Those drives required 18 weeks of concentrated work.
In the three week Second War Loan, 18½ billion dollars was raised,
or 9Cf'/4 as much as in the five drives of World Har I.
The results of the Second War Loan is best expressed in a
pamphlet issued to the people by Secretary Morgenthau, dated
May 25, 1943 , and titled "The Story of America ' s Greatest War
Loan. " A portion of the report follows:
"During the three weeks between April - May 1, the American
people invested 18 bil lion, 500 million dollars in the future of
their free country . This was the most tremendous financing task
in the history of the world . I feel that the people should have
the facts about this successful undertaking. It will make them
proud -- but more that that, it will give them a better under standing of the even greater tasks yet to be done in financing
the most expensive war in history.
"Before the war the Axis boasted that Democracy ' s srmies
would be weal,, and flab by . Now they know better. And now the
people on the home fronts all over the uorld realize what kind
of people they are fighting. They know that you and I and <1.ll
of our neighbors are in this war to the finish . The fact that
we sold 18 billion 500 million dollars in the Second War Loan
is proof enough.
"We exceeded by more than five billion the goal we set for
ourselves. This is a measure of our enthusiasm and patriotism.
The result proves many things . It proves that the American
people stand solidly behind their Commander in Chief, that they
recognize this is their war, and they are willing and eager to
finance it .
- -"I believe in the American people; I believe that they will
go to the very limit of their capacity if only they understand
the urgency of the situation.
"From reports that have come to me from all over the country,
and as a result of what I sa1•1 and heard on a seven- thousand-mile
trip from which I recently returned. I have come to some
definite conclusions as to the reasons for our success . It seems
to me that the explanation is found in the spirit of the American
people and their deep- rooted determination to fight this war
through to victory.
"When the people really become aflame with the war- spirit,
all the other problems seem to solve themselves. Labor and
management get together; production rises to an all-time high,
and bond sales go up automatically. That checks with what 2ll
our figures tel l us.
"War spirit, l abor -management relations, production and
bond sales all go hand in hand.

- 67 -

"Military terms to describe this Second War Loan victory -and it is a victory -- are only partly appropriate . There can
be no comparison between the self- denial needed to finance the
11ar adequately and the suffering and death uhich our fighting
men must face .
"Yet, there is a cl ose relationship, a very definite
similarity between the war on the home front and the war on the
fighting f ront. Neither is uon in a single engagement. On both
fronts the war must go on through a succession of gains until
the final and complete victory is won. We c an speak of this
success in the Second War Loan Drive only as a victory in a
minor engagement . It is like the taking of a single fortified
point while the main battlefi eld and the main forces of the
enemy still lie ahead.
"The rea.l battle is still ahead of us. All that we learned
in t his Second War Loan Drive, all the enthusiasm that we gained,
will be useful in the bigger job that we still have to do.
"There is no automatic and easy process for winning battles
on the home front any more than there is an automatic and easy
peocess for winning battles in the field. The war must be won
and the war must be financed by the voluntary, united effort of
the whole American people .
\-lhat success in financing means to our fighters is
illustrated by a conver sation I had recently with the Chief of
Staff, Gener al Marshall, who c ame over to the Treasury to have
lunch with me and, before he left, he said:
]1,ir. Secretary, I want you to answer a qu estion for me and
to answer it with complete franknes s . Can we militar y leader s
plan to fight this war in an orderly way -- in the surest and
most effective manner -- or must ,re take extraordinary risks for
fear the money will not hol d out?
"My answer was: General, the American people will take care
of that. What they have done in this Second War Loan Drive -the money they produced and the spirit they have shm-m -- is
proof enough for me that they will not let our fighters suffer
from l ack of support until we achieve complete victory , no
matter how long that may be, nor how much it may cost."
"That was my answer to General Marshall. I know it is the
ansHer of the American people . "
After the successful completion of the Second Har Bond
Drive, the Federal Reserve System urged an immediate enl argement
of its role within the War Bond organi zation . The Secretar y
finally issued his decision

- 68 -

1 - That there would be a consolidation of the Victory
Loan Committees with the War Bond or ganization;
2 - That the new organization would be called the War
Finance Division (Treasury Department Order No. 50)
3- That the Treasury Department would continue to direct
the state organizations under State Chairmen who were to report
directly to the Secretary of Treasury.
4- That the Collectors of Internal Revenue and Customs
were t o be replaced by personnel approved after consultation
with the Presidents of the Federal Reserve Banks in their regions.
As a result, the two representatives of the Victory Loan
Committee at the Treasury resigned and left the bond organization .
Ted Gamble, with Assistant to the Secretary Gaston, went into
the field to arrange the consolidation and to consult the
Presidents of the various Federal Reserve Banks on appointments
in their respective districts .
Several months later, after the consolidation had been
completed, Harold Graves, Assistant to the Secretary, resigned.
The reason for his resignation was never made public, but it
was known the Secretary did not request it . Graves had reached
retirement age and retirement conditions of the Civil Service.
He had fought the Victory Loan Committee in all their attempts
to take over the program and from all reports he resigned in
order to secure a friendly consolidation of the organization.
Graves insisted that Ted Gamble and Peter Odegard continue
the management of the program and requested that I stay. After
the war, Secretary Morgenthau visited Graves in Seattle where
they had a happy reunion. In 1948 I visited Graves and we had
such a good visit together I could not and did not want to
bring up the question of why he resigned.
In the consolidation, there were very few changes in the
Washington Staff -- of course Ted Gamble was in full charge of
the progr-:•m.
In the state organiz ations there were many changes in the
top positions of State Chairmen, Vice Chairmen and State
Administrators. There was only one state that did not have a
change -- North Dakota.
In the other 52 bond offices, there were 31 State Chairmen
who resigned. Of these 31 positions there were only 12 Victory
Lo-in representatives appointed. The other 19 State Chairmen
;:i.p pointed uere men who had been Harking in the bond program .
According to Ted, there were very few State Chairmen who resigned
because of their objections to the reorganization.
The largest number of "'PPOintments ,-!ere Vice Chairmen who
were added to the State organiza•cions. Of the 53 Vice Chairmen
appointed, 26 uere members of the Victory Loan Committee .

- 69 -

The part of the reorganization which concerned us most was
the remov~l of the Collectors as State Administrators. In the
reorganization this position was titled, "Executive Manager."
The Collectors had done an outstanding job of organizing the
program and many of them did not want to be replaced -- they
liked the bond program. Their replacements would be full time
paid employees. The result was 29 replacements and only five
were members of the Victory Loan Committee -- and only two of
the five replaced Collectors. Seven of the Collectors remained
in the program, three as Executive Managers and four as Vice
Chairmen . Most of the Executives managers appointed were Deputy
Administrators who had been in the program from the beginning .
The result of the reorganization Has that the Treasury was
satisfied and the Federal Reserve Banks were pleased. There
was no question we had strengthened our organization. Now we
could handle all the financing -- marketable securities and the
War Bonds . As one Treasury official stated, "The whole controversy
could have been worked out much easier . 11
The Third War Loan Drive
The reorganization and consolidation of the two organizations
continued into August. Shortly after the Second War Loan we were
advised that there would be a bond drive in September and it was
going to require an all - out effort. Every phase of the program
had to function to the limit. The Secretary set the quota at
15 billion dollars and all of it was to come from non-banking
investors . The slogan was, "Back The Attack -- With War Bonds. 11
The basis of the 15 billion dollar quota, as explained by
Morgenthau was that the cost of the war during 1943 would be 100
billion dollars . Under the tax laws the Treasury will receive
30 billion from truces and during the first four months of 1943,
including the Second War Loan, there was sold 25 billion dollars
of Har Bonds . This would leave 45 billion dollars that must be
raised this year in new taxes and additional sales of War Bonds .
On June 30, 1943 the interest- bearing debt outstanding of
the United States was $135,380,305,795, an increase of 63 billion
dollars over June 30, 19Lr2. This was approximately the amount
predicted in 1942 .
The slogan, "Back the Attack -- With War Bonds," was based
on the war situation -- moving from primarily defense to an
offense action . When the Japanese uithdrew from Guadalcanal on
February 7, 1943, it became a base for offensive operations
against the remaining islands in the Solomons. New Georgia, the
site of an important Japanese airfield was invaded on July 2nd;
landings were made on Villa Lavelle on August 15; and Bougainville
on November 1, 1943 . The effective neutralization of these
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islcinds carried the United States for1 11ard on the first stride
al ong the island road. A parallel drive by Americans and
Austr'-'lians under General MacArthur was under way in New Guinea.
At the Casa.blanc!'! conference in January 1943, attended by
Roosevelt and Churchill, it was decided to follow up the operations
in North Africa by an invasion of Sicily. By August 17 the vhole
island was in Allied hands . The Italians , caught between the
German occupation and the Allied invasion, signed an armistice
on September 3. There followed ,:i, full scale invasion ag~inst
the Italian mainland.
In planning the Third War Loan campaign there were certain
facts we leB.rned from the Second War Loan . The 1nost important
point was that the best conceived and administered program of
advertising and publicity cannot make our quota unless it is
carried directly to every individual American by a personal
appeal to buy bonds . In spite of the intensive, general appeals
to "buy an extra bond in April," only 17of, of those who were not
solicited responded by actually buying extra bonds . But 4.70-~ of
those who were personally solicited did so.
In rural areas, the effectiveness of solicitation was even
more strH:ing. Fifty four per cent of the farmers who bought
bonds said they did so because they were personally asked. Only
2o{, bought because of rallies and other general promotion .
In April, it was also learned that the most effective uay
to reach workers on payrolls is through the person- to- person,
bench- to- bench canvass of every worker . This was particularly
true of workers who were already investing through the Pa,yroll
Savings Plan . Unless a personal appeal was made to them, they
tended to regard general sales appeals as directed toward the
other fellow and to think of themselves as "doing my share."
In a memorandum of 28 pages, Ted Gamble issued to members
of the War Finance Committees a summary of the plans and
suggestions for the Third War Loan Drive. Portions of the
memorandum uere:
"State by state quotas Hill be assigned in terms of (a)
sales to individuals as distinguished from corporation and
institutional investors, (b) sales of series E bonds as distinguished from a ll other securities. There will, however, be no
such breakdown of the national quota .
"To make our individual quota, we must obtain an average
investment of an extra $100 E bond during September for every
American now receiving regul"r income (excluding members of the
armed forces), and we must also dig deeply into the accumulated
funds now being held by individuals as well as by corporations,
institutions and associations. Ue must not overlook or slight
any possible non-banking investor.
"There are 53,500, 000 Americans now earning income from

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various occupations . They include men and women at every income
level, but it is important to remember that approximately
seven-eights of the total imcome payments made are received by
individuals earning $5,000 a year or less . This great middleincome group is our most important market for E, F and G bonds .
"The Advertising and Publicity Division in Washington has
detailed plans for the most extensive and intensive national
advertising and publicity campaign in our history. State and
local War Finance Committees should plan similar campaigns . All
should be designed to create an atmosphere of urgency, expectancy
and even of crisis throughout the nation, to appeal to the
individual ' s patriotism and self interest, and to prepare him
for a direct , personal appeal to buy bonds .
"The publicity will include more than one hundred million
lines of advertising space in newspapers; more than ten thousand
hours of radio time; over fifteen million lines of news and
editorial space in daily and weekly papers; forty eight thousand
24- sheet billboards; ful l - page advertisements in four hundred
business publications, editorial space in more than twenty five
thousand house organs~ full - page and half- page advertisements in
forty leading general magazines; lobby displays, news reels and
short subjects in more than sixteen thousand motion picture
houses; displays in one million drug stores, grocery stores,
liquor stores, and department stores.
The most important task of every War Finance Committee
during September will be to conduct a campaign of solicitation
that will reach every potential bond buyer in its territory .
"A successful canvass of this magnitude will require not
only an efficient organization for carrying on the solicitation
but for the direct sale and prompt delivery of bonds as well .
We must close the gap between the personal appeal and the actual
The memorandum also contained specific suggestions for the
solicitation and the effective handling of all phases of the
From May to August the Washington Staff worked feverishly
on the promotional material. With the assistance of the National
Advertising Council, the largest number of promotional pieces
and the best material of any War Loan Drive was prepared and
shipped to the field.
1 - Posters - 16 different types . This did not include
one of the posters printed in eight different l anguages .
2- An advertising campaign book of 48 pages for the Press,
Radio, Screen and advertising media with a message on
the front cover from Secretary Morgenthau to "The
Volunteer Workers of the Third War Loan."

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"I want to welcome you into the great Home Front Army
of Vol unteer Bond workers . Upon you r ests the final
r espons i bility for success in thi s greatest financ ing
pl an i n all h i story.
"In or der to reach our goal of f ifteen bill ion dollars
in the Thi rd War Loan, we will need the enthusiastic
hel p of ever y one everywhere . We will have to talk to
people wher e t hey live, and where they work. We will
have to sel l a.nd keep selling without stopping, for t h e
duration of the Th ird Har Loan.
" It can be done . It will be done , we are confident of
that , and we know from past exper ience that you can do
it .

"On all t he battle fronts , our ar med forces are on the
of fens ive . The hour of invasion has struck, and as the
President sai d in his Thi rd War Loan Proclamation, 'Our
need for money now is greater t han ever , and wi l l
continue to grow until the very day that Vi ctor y is won;
so \le must ask for more sacri f i ce , for more cooperation
than ever before . '
"Because you will be talking to millions of American
c itizens face to face, you will have the best of all
opport unities to convince them t hat they have a
responsibi lity to "Back the Attack -- With War Bonds ."
3- Radio pamphl et of 12 pages to radio stations which
included a copy fact sheet and pictures of the radio
stars organized in the Third War Loan Drive.
4- A pamphl et issued by the Office of War Information on
the Third War Loan Drive .
5- A pamphlet of 12 pages issued to the Outdoor Advertising
Industry which contained pictures of the two 24 - sheet
posters . In addition it contained a statement of the
Board of Dir ectors of the Outdoor Advertising Association
of America recommending to the members that they contribute space for a 100 showing in each of the 16,000
cities and to\>ms in which poster displays are maintained.
The associati on pledged to secure sponsors for 20,000
24- sheet posters at no cost to the government . The
Outdoor Industry also pledged 100,000 Treasury corner
posters on the poster panels throughout the country.
In addition to these promotional pieces, there was the
School s At Wc1r pamphlet of 19 pages, the Retailers ' pamphlet of
8 pages, the Minute Man magazine to the field organization,
displ ay cards , certificates of appreciation, and various folders.
During the preparation for the Third War Loan, the various
states had spec ial promotions . In the District of Colwnbia there
i·1er e two outstanding events -- the arrival of the captured two-

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man J apanese suicide submarine and the Four Freedoms show.
The Japanese submarine had been transported from the Hest
Coast by the Treasury Department stopping at the various cities
enroute in the promotion of the bond program. It 1-ras a very
effecti ve promotion and attracted thousands of people . The
submarine 1-ras captured off Oahu on December 8 , 1941. The suicide
craft iras 81 feet long by 6 feet i n diameter and wei ghed approximately 17 tons without the electric motor which wa.s r emoved to
lighten it. The only means of entrance and exit to the submarine
was through a 16- inch hatch at the top of the conning tower. In
addition to the two 18- foot torpedoes which were c arr ied in the
fonrard end, the submarine had a demolition charge of TNT
suffic i ent to blow up two entire city bloclts.
The Four Freedoms Show was hel d et the Hecht Department
Store in Washington, D. C. where an entir e floor was turned over
to a display of the original paint ing of "The Four Freedoms " by
Norman Rockwell . The exhibit was well attended and was an
effective promotion for W::ir Bonds .
Secretary Morgenthau opened the c ampai gn of the Third War
Loan on September 3 by selling a $100 bond to Winston Churchill
who vras in the United St ates at the time . The Drive started on
September 9 and continued to October 2 , 1 943.
Sales Results of Third War Loan
Early in October we received the final sales r esults showing
ue had exceeded our national ouot~ by almost four billion dollar s
Quota----------------- --- ---------$15, 000,ooo , ooo .
Sal es to Non-banking Investor s ----$18 , 944,000,000 .
He were pleased with the break- down of the sales to
all types of securities - $5 , 377,000,000 and Series
E bonds - $2 ,472,000,000 . The per cent of total sales purchased
by individuals vas 28.4°'t Compa:red to the Second Har Loan, ther e
were about 5} billion dollars more bonds sold to non- banking
inve stor s . There was an increase of one billion dollars in
E bonds and the purchases by individual s increased from 17. 7rt, to
28. 4%. Another encounging result was that 81.1% of the E bonds
purchased were in $25 and $50 denominations .
After the Third War Loan, a survey was made and the r esults
set forth in a memorandum by Ted G"1nbl e . In the i_ntroduction he
"Following the Second and the Third War Loans we have had
surveys conducted in or der to get ..,n a.ccure.te and objective
description of how these drives vent over . By knowing how the
drives actually worked, by Jr..nowing uhi ch effor ts were successful
and which unsuccessful, \·Te can be best equipped to guide our
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efforts in the future along the most efficient and realistic
avenues of promotion .
"The surveys upon which the material is based were conducted
following each of the War Loan Drives with a national cross section of the population. Approximately 1500 people selected
by s cientific sampling methods, were interviewed after each drive
t o fi nd out what they knew about the drive, whether they bought,
why t hey bought, why they didn ' t buy, and other information . "
The survey disclosed some interesting information and a
basis of suggested recommendations for the next War Loan.
l- Nine out of ten people knew about the Thir d War Loan.
2 - Twice as many peopl e bought extra bonds in the Third
Dri ve as in the Second.
3- In each market the sales increased.
4- Most who didn ' t buy asserted they couldn't afford to buy.
5- Put emphasis on extra purchases in urban areas; larger
purchases in rural areas .
6- Personal solicitation is the best way to sell bonds.
7- Sol icit ation is highly effective in each market .
8- Solicitation at work is more effective than at home .
9- Repeated solicitation does no harm.
10- Indivi dual quotas help sell more bonds .
11- Local community quotas are popular and effective .
12- Japan appeared in many ways a stronger emotional symbol
of the enemy than did Germany.
Sales Results for 1943
During 1943 the people of the United States purchased
$13,729,403,000 of E, F and G bonds and $590,268,000 of War
Savings Stamps . Therefore, Secretary Morgenthau's goal of one
billion dollars a month in 1943 was achieved. The bond sales by
months were·
July--------$ 889,691,000
August----- 801,730,000
February----887 ,l95,ooo
September- - - 1,926,555,000
October----- 1 ,708,150,000
April-------- 1,469 , 724,000
May- -- - ------ 1,334,984,000
The Curious Pigeon
During the Third War Loan many of the states created their
own promotions . This was encouraged. The District of Columbia
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committee had several that wer e excellent .
It was in connection with one of these events that my
assistant, Hal Master, grabbed me as I was going to l unch.
"Larry, the District is just starting a special promotion in
front of the Treasury building. Let ' s go over and see it . "
We could see a large crowd gathered around a Signal Cor ps
truck as we came out of the Washington building . We edged our
way into the crowd and saw several cages of homing pigeons on
the truck . A sergeant was at a mike giving a talk on War Bonds .
Raising his voice, he said, "Now ladies and gentl emen, we have a
special feature for you . Anyone who signs up for a War Bond wil l
have the privilege of writing a message to the boys at camp over
in Virginia who are ready to depart for Europe . We will attach
your note to one of the pigeons and you can see him take your
message to the troops . You do not need cash today -- all you do
is sign for a bond and pay later. Who will be first?"
There was a stir in the crowd and a sweet, motherly-type
little old lady advanced to the truck. The sergeant hel ped her
to the platform where she wrote her name on a slip of paper , and
then a short message. As an assistant handed a beautiful bluegray, pigeon to the sergeant, he turned to the crowd saying,
"You see, folks, we place the message in a capsule which we
attach to his leg. This pigeon's name is Trigger . " The pigeon
blinked his eyes several times and looked at the crowd.
Holding the pigeon in both hands, the sergeant raised his
arms and Trigger took off . As he circled into the air to gain
height, the crowd let out a big roar waving their hands and
yelling, "Hurrah! Hurrah! for Trigger!" Gaining the height of
the Treasury building, he started toward Virginia. Every eye
in the crowd was trained on him . Suddenly he turned and glided
down on the eaves of the Treasury overlooking the crowd . For a
minute the crowd was silent, then a roar went up, hands started
waving, and you could hear, "Get going, Trigger . Get going . "
But Trigger 2ust sat there and looked down at the crowd. Finall y
the sergeant went to the mike and said, "Never mind, folks, he
will leave in a few minutes."
I edged my way out of the crowd and as I crossed the str eet
I looked back. Trigger was still perched there looking down at
all the people.
I learned la.ter that Trigger sat up there until the show
was over and then took off for Virginia . The other pigeons
performed according to regulations and the promotion was
considered very successful.
I guess the trouble was that Trigger, in all his life, had
never had such a big send- off and he was just curious as to
what it was all about.

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At the conclusion of the successful Third War Loan, we
looked forward to the Fourth and l944 . Morgenthau planned a
drive in each quarter of the year 1944 but he finally came
to the conclusion that there should be only three and the
l ast one after the election in November. As he explained, a
bond dri ve during the presidential campaign in the fall would
fail to win any enthusiasm from the Republicans. Daniel Bell,
Under Secretary of Treasury, pointed out that this would
require the Treasury to borrow more from the banks than from
individuals . The Secretary's reply was, ''That is all right.
I would rather borrow it than have them cut my throat .'
Even with the success of the Third War Loan, Morgenthau
was not happy - - Americans at home still had too much to
spend. In addition, only 38% of the gainfully employed in
the country had purchased extra bonds in the Third War Loan.
As 1944 approached, Congress's final and stubborn rejection
of the tax program left corporations and individuals with
surplus monies which would push the prices of scarce goods
and services to new peaks.
This was born-out by a March 1944 report of the
Securities and Exchange Commission which indicated that
some 14 billion dollars of savings had gone into bank
balances, which were easily convertible into cash.
Morgenthau felt that the bond drive should have attracted
that money .
The Fourth War Loan Drive was scheduled - - January 18
to February 15, 1944. The goal was 14 billion dollars -billion from individuals. The slogan - - "Let's all back
the Attack" -- the theme was "Sacrifice , Everyone to buy
extra bonds. "
The preparation of publicity material in the Fourth
Loan was not as great in quantity as che Third but the
material was more intense and more direct. In the Campaign
Book and the press material the copy was more direct in
stating our aims, and the arguments were sharpened. In
graphic terms the solemn duty of all citizens were stated
1- ' Failure to invest in bonds and instead using
-swollen income to bid for scarce consumer goods,


- 77 -

will result in higher prices. This will impair
the value of your wages and in general damage
the economic structure of the nation. Protection
of this stability has been entrusted to the home
front by the men on the fighting front. To belie
the trust is to betray the men in our armed services.
2- Failure to assume your share of each War Loan could,
if multipl ied by millions of other instan ces,
endanger the orderly financing and prosecution of
the war, thereby threatening the military security
of the nation and of the individual .
3- To pass up the purchase of War Bonds is to deny
yourself mmership of the most desirable and safest
investment in the world today.
4- To deny yourself that investment today is to miss
the opportunity for guaranteeing the future security
of your family, your children and your country. 11
There were several new, and some unique, features as
sales ammunition in the Drive. A window sticker was produced
in the form of a shield which read, "We Bought Extra War Bonds
4th War Loan." It was to be issued to all purchasers who
bought extra bonds and was to be placed in the window of
their home .
The E, F and G bonds were reduced to half the size of
the former ones . This was to save paper and reduce production
costs for the Treasury. As stated in advertising, "The new
war bonds will do just as much work in winning the war as
the big-size ones . 11
The "Squander Bug'' was a unique promotion which was
adopted by the field organization in many ways . Advertisements read, "Americans must deal that Bug a knock- out blow
if the Treasury is to raise its
billion dollar quota
from individuals . 11 At strategic points in the shopping
districts a live Squander Bug taunted the customers into
buying action with such remarks as, "Don't buy Fourth War
Loan Bonds . Give me the money instead . "
A Michigan business man advised his customers, "Can
your doll ars for future use -- in Fourth 1,lar Loan Bonds.
The Squander Bug has no can opener. War Bonds will starve
him to death."
The schools of lfrichigan held trials during the Drive
charging the Squander Bug with being an Axis agent and an
enemy of America's best interests . Alabama conducted the
Squander Bug campaign as a drive to catch this notorious
lawbreaker "dead or alive" . Locally produced posters
reading "Wanted •·- Information leading to arrest of


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Squander Bug" - - were placed by the highway police in every
corner of the state .
Miss Harriet El liott, head of the Women's Division of
the Washington Staff, commented on the bond sell ing achievements of women volunteers. In the articl e she stated, 'Our
individual purchase may seem small in comparison to the
gi gantic War Loan total of 14 bill ions. But for a fraction
of a second of time, it ,,ill have borne the costs of confl ict.
The philosophy which leads one to say, "It can't possibly
matter what I do is defeatist thinking.,;
In an article, Shelly Smith, author and researcher for
Life Magazine, wrote, ''If we do not believe in this war or
in the worl d we can build after it, then let us send the world
to hell - - and our soldiers with it . If we do believe, then
l et us put everything we've got into winning the war and the
peace . Every cent we have must go to back our country in
this war . We must buy our quota of bonds and then buy extra.
Extra bonds may win the world for freedom.' '
Shell y Smith was the wife of Life's famous photo-reporter
Carl Mydans . With her husband she went to Europe at the outbreak of the war in 1939 and covered the warfronts there.
In 1941, the Mydanses were sent to the Orient, where they
covered the Sino--Japanese war and the Allied preparations
in Burma, Singapore and the Philippine Islands. When Manila
was occupied on January 2, 1942, the Mydanses were interned
by the Japanese . They were finally returned to America on
the repatriation ship Gripsholm.
On November 26, 1943 we started work and plans on the
regional meetings to be held in six cities and to which State
Chairmen and Executive Managers were to be invited from the
various nearby states. Ted Gamble, with the heads of the
various sections of the Washington Staff were to conduct
one day promotion meetings in each of the cities. Included
in the Washington group were two representatives of the
Research and Statistical Division of the Treasury who would
displ ay charts showing the financial status of the government,
the resul ts of the previous drives and the need for the Fourth
War Loan. The members of the Washington Staff were to
explain their special programs. Picture slides of the various
promotional pieces were shavm and explained.
The first meeting was held at Memphis on December 3,
1943 and meetings foll owed on the 4th at St. Louis, 8th at
Buffalo, 9th at Chicago, 10th at San Francisco and the 15th
at Los Angel es . These meetings uere very successful - they brought all members of the Washington Staff closer to
the field operations.

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On January 17, 1944, Sylvia Porter in her New York Post
colwnn wrote·
'The greatest house-to-house canvas in all history will
get under way tomorrow, with the start of the Fourth War Loan
Drive for $14 billion - - and if plans go through as scheduled,
nine out of every 10 of us will be personally approached by
a Treasury representative and asked to buy war bonds.
''We' re about to see the widest end most important
experiment with the canvass system of selling ever tried.
"And we're about to be put through a test ourselves -of our ability and willingness to lend to the Government
on a voluntary basis, whenever the billions are requested.
''The promotion and the advertising pleas that will hit
us no matter where we turn between today and February 15
beat anything ever attempted. The army of volunteer workers
which has been created by the various State War Finance
Committees contains hundreds of thousands of trained salesmen .
"Preparations for this loan were started back in
October, even before the Third campaign was finished.
"And with the European invasion imminent and the
Treasury ready to canvas 80 to 90 per eent of the American
public, it's unthinkable that this will be anything but
an overwhelmingly successful drive.
''The basket of bonds on sale in 24 hours represents a
superb job of choosing securities to fit every pocketbook,
every investor's need.
"For those of us on salaries and with small savings
accounts there are the usual Series E, F and G bonds. They're
still the best for us, because their interest rate is
highest and they can't go down in price.
"For wealthy individuals, trust funds and institutions,
there are the 2-t% bonds of 1959 and the 2-!,% bonds of 1970.
They can go up or down in price because they are marketable,
but that feature is necessary to big investors.
'And then, there is some short term stuff for corporations
with some temporarily idle funds .
"Buy what you wish . The choice doesn't matter . All
that does is that we put this loan over the top in the
shortest possible time."
During the early part of 1944 activity in Europe was
directed chiefly toward preparation for the coming invasion .
To a large extent the battle was still one of supply, '1ith
the Allies striving to clear the sea lanes against which
German undersea warfare was directed, and to disrupt German
production and transportation by a sustained end expanding
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offensive from the air . The Allies shipping losses were
dropping with the United States alone producing ships in
excess of sin.kings. On December 26, 1943, the British had
sunk the German battl eship Scharnhorst .
On the Russi an front the Germans were slowly retreating
from the Leningrad area.
The All ies in Italy had failed to penetrate Cassino
and in January staged a new coastal landing at Anzio in the
rear of the Ger man defenses . At times this foothold was in
a precarious sit uation.
In the Paci f ic , the fighting on Tarawa. had been a scene
of bitter struggle . The Japauese were finally isolated and
the garrison wiped out at a cost of over 3700 casualties .
The next objective was the Marshall Isl,mds . The attack was
carried out on February 2 by two divisions. The main fighting
took place on Kwajalien . With the capture of Eniwetok in
February, the whole of the Marshall group was effectively
under American control.
The Liberty Ship Promotion
Early in January, Ted asked me if I would like to take
charge of a big promotion in Washington, D. C. I readily
agreed. My promotion experience had been limited to the
office for three years.
Ted explained that the War Shipping Board had agreed
to try and get a Liberty Ship up the Potomac to the
Washington docks, and if they could we were permitted to
use i t as a promotion to sell bonds in the Fourth War
Loan. We would be working with the War Shipping Administration , the U.S. Maritime Service and the District of
Col umbia War Finance Committee.
On January 15th the Liberty Ship ".American Mariner"
docked and we immediately went to work on the arrangements,
putting up the posters and constructing a bond booth on
the dock . The purchase of a bond admitted the person and
his famil y to a tour of the ship. We soon abolished that
requirement and just sol d bonds at the dock. Volunteers
managed the bond booth. With ropes and signs we layed out
the route of the tour .
On January 16th ,-1e opened the Liberty Ship to the
War Shipping Board and the Treasury personnel, and had to
turn away over a thousand people.
From January 17th, the start of the Fourth War Loan,
to January 31 st when the ship left, we had long lines of
visitors each day. They wanted to see the type of ship

- 81 -

which had been carrying our war materials and forces to
Europe, and the type of ship that had been attacked by the
German submarines. The entire promotion, with support of
good publicity, was a huge success. Commander Joseph H. Masse,
captain of the ship and his officers and crew were cooperative
and assisted in every way . ] s. Franklin Roosevelt visited the
ship and gave a short talk.
Before the ship left, the nT" flag of the Treasury was
presented to the officers and crew and was raised with
considerable ceremony .
Sales Results of Fourth War Loan
The Drive was started on January 17 by a radio broadcast
of Secretary Morgenthau, Admiral Nimitz in the Pacific and
General Eisenhower in England.
The Fourth Loan sales were successful although we did
not quite make our quota of 5½ billion to individuals :
Goal------ - - ----- - -------------------- ------ $14,000,000,000.
Total sales to non-banking investors --- - - - - 16,730,000,000.
Individuals - all types of securities------5,309,000,000.
Series E bonds----------------- - -------- ~--3,le7 ,000,000 .
Sales to individuals as a per cent of total sales was 31. 7%
as compared to 28.4% in the Third Har Loan.
There were 47,563,000 E bonds of $25 denomination issued
68 . 1% of the total E bonds. This was one of the highest
percentage of any bond drive .
The Fifth War Loan Drive
In preparing for the Fifth, June 12-July 8, we knew
it was another big assignment -- Goal $16 billion, $6 billion
from individuals, and $3 billion in E bonds. If these
quotas were to be reached, the 27 million employees buying
bonds regularly would have to be exhorted as never before
to buy extra bonds, farmers would have to buy more bonds,
not extra bonds, and the people would have to be convinced
they could afford to buy more bonds.
The success of the Drive was going to depend very
greatly upon the thoroughness of solicitation. It was
important to pay more attention to the War Bond's volunteer
sales force . They would need more help than they had
received in the past. Advertising, Press and Radio could
help in two ways -- preparing the prospect for the volunteer's
visit , and boosting the volunteer's morale .
There was one advantage we had -- the war situation .
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In a message to the volunteers, Ted Grunble stated:
"Invasion is in the air -- and there isn't a man, woman
or child who doesn't know it, sense it, feel it in the very
marrow of his bones .
"The great military effort which is on everyone's tongue
has its counterpart in a great financial effort -- in fact,
a supreme financial effort -- in which all of us have an
important part to play . The Fifth War Loan starting June 12
and ending July 8, is the biggest, the most vital job that
we have faced together . It may well be the most important
Bond Drive of the War .
"The Treasury is deeply appreciative of the splendid
work you've done in the past. Your help in carrying the
story of this War Loan to the people of America is more
essential than it has ever been before.'
Our publicity, especially posters and ads, were directed
to the war and the advertising media was told -- 'This
time • . . don't pull your punches! 11
The slogan, "Back the Attack -- Buy More Than Before,"
was supplemented by another, "Join the Fight." Some of the
hard-hitting posters and ads carried the titles ·
"I died Today . . • What Did you Do?"
"What's the Cost of a Wooden Cross?"
"His Patriotism is written in Blood. ''
''Thinking of Buying a Bond? Men are Dying While You
Make Up Your Mind."
"This Beach-head is big enough for all of us."
"Anybody you Know?" (Picture of a dead soldier in
a trench)
"This American is Not expected to buy an extra Bond
in the Fifth War Loan." (Picture of a dead soldier
on the battle field.)
The Campaign Book of 56 pages covered every phase of
the Bond program: copy policy, payroll market, organized
labor, farm market, town and city market, retail stores,
newspaper advertising, radio, local promotions, national
organizations, sponsoring equipment, special War Bond
events, film industry plans, women at work, schools,
bank promotion and facts and figures.
Secretary Morgenthau's statement to the Victory
Volunteers stated ·
';To America's millions-strong Army in the field, this
is zero hour. It's zero hour, too, for War Bond's millionsstrong Army of Victory Volunteers.
"For our troops will soon go over-the-top in the
greatest invasion in the history of the world. And it's

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our job to back them up in the greatest War Loan in the
history of the world.
'In the coming June Drive, personal solicitation will
be more important than ever . Our $16 bill ion goal, $6 billion
from individuals alone, is the greatest yet . What's more,
we're out to raise all of it from non-banking sources.
"The market is not cut out for us; it's ours to cut out.
It will mean person-to- person , office- to- office, bench-tobench, and house-to-house solicitation . It will mean asking
Americans to do more than they ' ve ever done before.
"Democracy is not built upon the recognition of rights
alone. It involves too, the assumption of respon s ibilities.
It's our responsibility, above all, to keep faith with the
men and women of the armed forces; to suppl y them with the
mountains of material they will need; to sacrifi ce our
comforts to their needs - - and yes, even our needs to t heir
comforts . "
Our promotional materials had gone to the fiel d when
on June 6, 1944, "D" Day, the Allies launched the invasion
of l\!ormandy. Shortly after midnight, three di visions of
airborne troops were dropped inland from the beaches to
seize key points and block the roads by which German
reinforcements might arrive . Shortly after dawn, five
assault divisions from the First American and Second
British Armies drove ashore on the coast of Normandy from
the areas of Caen to the base of the Cotentin peninsula.
While every American was watching the news rel eases
and the radio with bated breath, and praying for the
Americans to hold the beach-heads and consolidate their
lodgement area, the Victory Volunteers of the Fifth War
Loan sprung into action with ''Back the Attack -- Buy more
than Before.'
Sales Results of the Fifth
Even with a goal of 16 billion dollars, the greatest
of any War Loan, ,·re were confident we would make it and
probably exceed it. We had several things working in our
favor. Fir st, 11as the invasion of Normandy; second, our
publicity was excellent - - good punch ads, top radio coverage,
and every advertising media functioning in top efficiency;
third, our state committees, efter three years and four war
bond drives, had reached the point of a carefully planned
and well directed organization with smoothly running
county and city committees of volunteers.

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The sal e s results bore out our confidence
Goal - - - --- -------- - ------------ - ----- ---- $16,000,000,000.
Total Sales to non-banking investors-- - -- 20,639, 000,000.
To individual s - goal $6 billion-- ------6,351,000,000 .
Series E bonds - goal $3 billion- - ----- - 3,036,000,000.
Ther e was one problem rel ating to the marketable securities
t hat r eached a worrying dimension during the Fifth War Loan .
During 1944, private and corporate speculators exploited the
r hythm of financing that the Treasury and Federal Reserve had
establ ished. As explained by Marriner Eccles, President
of the Federal Reserve Board, they did so by playing the
patter n of rates -- call ed ''free riding . " Countless
corporations as well as individuals made a great show of
their patriotism in subscribi ng heavily to War Loan Drives,
whereas, i n fact, they were making a guaranteed profit at
no risk .
While recognizing the problem, Morgenthau pointed to
gains which in his view compensated for the shortcomings of
the Treasury's program. The present war, costliest in history,
had absor bed approximately half of the national product of
the Uni t ed States f or three years, twice the percentage
absorbed during the First World War. Defense and war
spending, between July 1940 and July 1944 increased the
i nter est bearing public debt $157 billion . In raising that
sum, the Tr easury had foll owed three basic principles -to borrow money in a manner designed t o resist inflation,
to offer securities best suited to the needs of the investors,
and to keep the cost of financing at a reasonable level.
In most r espects, Morgenthau believed, the Treasury had
The Sixth War Loan Drive
The task of prepari ng the promotional material for
the Sixth was a di fficult one for many reasons. The goal
of 14 billion dollars - $5 billion from individuals and
$9 bil lion f r om non-bank investors -- seemed high. This
was the third war loan in one year. The dates - - November 20
t o December 16 - - were in the holiday season. In addition,
we were following the election of Franklin Roosevelt as
President for a fourth term despite his declining health.
Thomas Dewey received over 22 million votes and many people
fel t that no man should be elected president four times .
Ther e was a question as to how much effect al l of this would
have on the Bond Drive .
The principal difficulty was in what direction should

our promotional material and copy policy b e planned. What
shoul d be our slogan for the Drive? He had used, "Back the
Attack" in the past three War Loans -- Third, Fourth and Fifth.
The Allies in Europe were pushing the Germans back to
the Rhine. The Allied bombers were hammering the Reich with
steadily increasing intensity, striking at one city after
another. The Russians were making rapid progress . In six
months they had driven 400 miles from the Dnieper t o the
Vistula . The war in Europe was at such a stage that people
in the United States were beginning to regard it as about
In the Pacific, on October 20, an American forc e landed
on Leyte in the Philippines under the command of General
MacArthur .
It was finall y decided our promotional materi al and
copy policy shoul d cover several points :
1- That the war was not over by any means.
2 - That everything costs more in the Pacific war.
3- That our ads and materials should emphasize the
war agai nst the Japanese.
4- That we must take care of the sick and wounded.
5- That 1Te must wi n the peace for millions of our
soldiers .
As a result we abandoned the idea of a slogan and
developed a syniliol for the Drive -- a bomb dropping on a
Japanese flag wi th the writing on the bomb, "6th War Loan."
A folder was prepar ed titled, ''Straight Talk about
the 6th War Loan." The folder was distributed by the
millions . Portions of the folder read.
"As we move closer to victory, it wouldn't be
surprising if you were saying to yoursel f -- what' s
the big idea of asking for all this additional money
now? Isn't the war al.most over?
"No sir, it is not! Not by a long shot. Of course,
for many months now you 've heard mostl y about the war
with Germany, where our greatest effort was concentrated.
That's why many people have the idea that t he war's
practically over . But make no mistake about it - - nothing
could be further from the truth! The Japanese war is a
tremendous undertaking and victory will come high . We'll
have to fight every inch of the way.
The European war has been expensive, but almost
everything in the Pacific war will cost more . Take
transport costs, for instance, because of the longer distances,
the same amount of freight costs 25 per cent more when
shipped to the South Pacific than to Europe . And it takes
twice as many cargo ships i n the Pacific to support a task

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force of a given size since turn-around time is twice as great.
"In addition, we will need more of everything. More B-29
Superfortresses that cost $600,000 each. More P-47 Thunderbolts
that cost $50,000 each. More M-4 tanks, with bulldozer blades,
that cost $67,417 each. More amphibious tanks -- more aircraft
carriers - - more supply ships -- more gasoline and oil than it
took for the invasion of Europe.
"And lest anyone forget, we' 11 need more battalion aid
stations -- more clearing stations -- more evacuation hospitals
more convalescent hospitals -- more hospital ships.
"For many, many years the sick, wounded and otherwise
disabled veterans will require medical attention and care.
That's the least Uncle Sam can do in appreciation of what
they've done for us."
In a statement to the Volunteers, Secretary Morgenthau
said, "In the Pacific we can be sure that the road to Tokyo
will prove long and arduous ; we cannot reckon its cost in
lives and dollars but we are certain it will not be cheap . "
Ted Gamble told the Volunteers, "To spearhead each
invasion, our high command calls upon its veteran shock
troops. Some of them led our forces into North Africa,
into Sicily, into Italy and then into France ; in the
Paci fic some units have been sent in to take island after
"The Victory Volunteers are veterans of two, three,
four, even five war loan campaigns. Faced with the sixth
objective, I know you will take it . Five times now you
have done the impossible . Fresh difficulties will not
dismay you . ''
The Campaign Book contained the usual 56 pages covering
all phases of the program. One added feature was an
explanation and chart showing how E bond sales were credited
geographically. We had been having some complaints from
the state organizations that they were not receiving credit
for many sales .
In the Sixth, we had very few posters and these were
not outstanding according to our state committees. There
was one exception -- ''A Crop That Never Fails" -- issued
to the farm market. This was the best farm poster we ever
issued, and was used years later.
If our posters were weak, our newspaper and magazine
ads compensated for the lack of punch . Some of the titles
1- "lve're Out to get Japan! Let's go America! Your
6th War Loan Drive starts Today!" (Soldiers
attacking )

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2- "Now Let's give the Sons of Heaven hell! " (American
soldier attacking hill. At the top a Japanese flag. )
3- "So Sorry, Nips . You're Blocking the Road!"
4- "Pushover? Don't tell that to Private Blake . "
5- "Next year isn't soon enought for them." (Picture of
American soldiers in a Japanese prison camp) "Once
before, on Corregidor, this American boy's eyes
strained toward the skies, begging for hel p that
never came. Remember? Now behind the barbed wire
of a Jap prison camp -- where each day is an eternity
measured in minutes and hours -- his heart cries
out again for help. "
The Campaign Book of the Sixth War Loan explained
inflation and how the buying of War Bonds would help to
prevent it:
"Income payments to individual s during 1944 will total
about 153 billion dollars . Local, State and Federal taxes
will reduce the amount to about 133 billion . Because of the
limitations upon the production of consumer goods and services,
only about 96 billion dollars worth of these items will be
availabl e to consumers during 1944 . This means that consumers
will have $133 billion with which to purchase $96 billion
worth of goods and services. And this means that our citizens
must voluntarily save $37 billion by limiting their purchases
to their just share of $96 billion worth of consumer goods .
If our citizens tried to obtain more than their just share
and spend all their money, they could end by paying $133
billions for $96 billions worth of goods and services . THIS
Sales Results
Evidently the promotional material and ads directed to
the Japanese War appealed to the people of the United States .
In addition , the excellent work and organization of the
Victory Volunteers produced outstanding sales results .
Goal - ------------- - ------------ - -- - ---- -- $14,OO0,OO0,OOO.
Total sales - non-banking investors------ 21 ,621,000,000.
Individuals - goal $5 billion -----------5,882,000,000.
Series E bonds - no goal----------------2, 868,OO0,0O0.
During 1944 the monthly sales of E, F and G bonds were :
January------ ----$1,698,4O5,OOO. July----- ------$2,125 , 05O,OOO .
February--------- 2,781, 468,000. August- -------602,436,000 .
March-- -- -------709,054,000. September- ----692,o66,ooo .
April--- --------738,543,000 . October- ------ 695,003,000.
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May-------- -----750,628,000.
June------------- 1,842,227,000.

November------1,023,355 , 000 .
December------ 2,385,849,000 .

Total---- - - -$16,044,o84,ooo.
From May 1, 1941, persons in the United States could
purchase E, F and G bonds from the Treasury in Washington by
filling out a bond application and mailing it with their check
or money order to the Treasurer 1 s office. The laYgest number
of applications received was during 1942 -- 677,931 in the
amount of $92,503,000. During 1944 the smallest number of
applications were received -- 362,987 in the amount of
During the latter part of 1944 there were some comments
about people cashing in their War Bonds in large amounts.
The figur es showed this was not true. In December 1944 the
total amount of E, F and G bonds outstanding was $36,722,776 , ooo
and t he bonds redeemed during the month was $358,572,000 which
was .98%.
The sale of War Savings Stamps during 1944 amounted to
$408 ,930,000 . The largest amount sold in a single year was
in 1943 -- $590,268,000 .
One phase of the Treasury program was watched very
carefully -- to whom the national debt was owed. Too large
an amount to commercial banks could be inflationary. As of
March 31, 1944, the Treasury statement showed the national
debt was owed as follows .
To all individuals ---··----··-------------- $41,800,000,000.
To insurance companies and savings banks - 23,200,000,000.
To other corporations and associations --- 23,500,000,000 .
To state and local governments ----------To federal agencies and trust funds-- ---- 18,100,000,000 .
To commercial banks -------·--------------- 64,200,000,000.
To Federal Reserve Banks
Total-------- $185,600,000,000 .
As of June 30, 1944 the Public Debt was $199,543,355,301 .
It was estimated the debt woul d be over 250 billion dollars
by June 30, 1945 .
On January 1 , 1945, Secretary M0rgenthau worte Ted Gamble
regarding the Sixth War Loan as follows:
"I am delighted to have the opportunity to congratulate
you and those who work with you on the smashi ng success of
another war loan.
"The figures that I have today show that the E-bond
sales have topped the quota of two and a half billions by

a good margin and that the sales to individuals are well over
the five billion mark that we set.
''I am particul arl y delighted by these results as well
as by the more spectacular fact that, whereas we set out to
raise 14 billions, we have actually raised over 21 billions,
more than half again as much as our quota.
''Your workers, especially the army of volunteers which
is doing the big end of the job, deserve again not merely
thanks but unstinted praise for their effectiveness.
"I salute them, the members of your full-time staff
and you for another great and inspiring success."

- 90 -


Prior to the Seventh War Loan, Sylvia Porter, Financial
writer for the New York Post, published in her column an
excellent article on the self-interest part of the bond
program . It was a timely article and one which ,,,e needed
and appreciated. The title was ''First Baby Bonds Now Due. ''
'March 1 will be a lucky day for the owners of the
first baby bonds issued in America •- for as of tha.t date,
they may walk into the nearest banl{ or post-office, hand
over their valuable Government securities and get back $4
for every $3 they invested in 1935.
''The first savings bonds, upon which the Treasury
modeled all its defense and war bonds, begin maturing in
a fortnight. From now on, Americans uill be cashing in
$18.75, $37 . 50 and $75 bonds every month for $25, $50 and
$100. From now on, you and I will have definite evidence
of how a pl anned savings program works out.
"Maybe you ' ve forgotten those original savings
bonds, which were nicknamed, 'The Babies" immediately
after their issuance . Maybe you've forgotten that the
Treasury started its experiment with a non-marketable
discount, '' People ' s Bond" 10 years ago.
When the war broke out the name of these bonds was
changed first to Defense Bonds, then to War Bonds. But,
outside of a few minor revisions in terms, the bonds
themselves remained the same.
''If you Oi'm a 1935 baby bond just mark dmm the
month when it's due and on that date take it to any bank
or other qualified redemption agent in your neighborhood.
Identify yourself as the proper owner, and then ask for
your cash. It' 11 be a five-minute job .
"Why take the cash though? Unless you really need
the money for an emergency now, why not reinvest the
proceeds in new war bonds? For every $75 you put up 10
years ago, you're getting back $100. You can purchase
another $100 bond for $75. You can add a $25 bond, which
will cost you $18 . 75, and you'll still have $6.25 left .
"It's a wonderful system for your mm financial
health and for the country's financial stability. And thus,
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the Treasury is urging ovmers of maturing bonds to "Roll Over 1 '
into new securities at the same time that they present their
securities for payment.
''The Treasury 1 s present plan is to continue selling $25,
$50 and $100 bonds indefinitely. After the war they'll be
the same bonds as nou -- except that once again their name will
be changed . So we'll have the chance to maintain our planned
savings programs and work out our mm retirement pensions . And
on March l the first fortunate creditors of the United States
Government can set the pace for the rest of us . 11
On April 19, the Eighth Army in Italy broke through into
the Po valley. The chief cities of northern Italy were
swiftly occupied. Mussolini, f l eeing for safety, was captured
by Italian partisans and put to death on April 28. An agreement was signed on April 29 for the surrender of the German
forces in Italy, effective May 2.
By March 25 the whole of the Rhineland had been cl eared
by the Americans and English, and the Remagen bridge across
the Rhine had been seized by the First Army. The last days
of the Reich were now approaching. By April 21 the Russians
had battered their way into Berlin. Hitler, trapped in the
wreckage of Berlin, committed suicide on April 30 . Early
on May 7, German representatives at Reims signed the
document for unconditional surrender, and on May 8 the heads
of the three German armed services affixed their signatures .
This brought the war in Europe officially to a close.
In the Pacific, the war was being fiercely fought
and it looked like a long campaign. On January 9, 1945,
in the Philippines two corps of Americans landed on the
shores of Lingayen Gulf and drove toward Manila. By
March 4 all pockets of resistance in Manila were crushed
but it was late in June before the American forces occupied
the entire island.
During this period, the Japanese were in retreat on
the mainland of Asia . On Guam and Saipan air bases had
been established. American air power was striking with
increasing weight on leading cities in Japan. By midApril, thirty-five square miles of Tokyo had been laid
waste in three fire raids, and Negoya, Osaka and Kobe
had all been hard hit . In the a_evelopment of the
bombing campaigns there was one small island, Two Jima,
that dre,1 attention of the Armed Services. Located in
the Volcano group and in the hands of the Japanese, it
was providing facilities for detection and interception
of .American bombers enroute to Japan. It was important
to eliminate it and also it would provide a useful
- 92 -

emergency landing field for bombers in distress .
Iwo Jima was situated 750 miles SSE of Tokyo and was
the only island in the Volcanos and Bonins with a surface
flat enough for use as an airstrip .
As the .'.merican island-hopping campaign neared, Iwo
Jima was bombed or shelled almost daily from late in 194.4
until the American landing on February 19, 19lr5. The fight
proved one of the most bitter of the Pacific campaign, the
island was not completely conquered until March 16.
As soon as He received the picture of the flag-raising
on Mount Suribachi by the four Marines, we used it as our
poster and insignia. One of the four boys was kill ed on
Iwo Jima. The other three boys were later returned to the
United States and through the cooperation of the Armed
Services assisted in the War Bond program.
The Seventh War Loan
Early in ,January, the Secretary announced there would
be two War Bond Drives during 1945. The Seventh was
scheduled for May 14 to June 30. The eighth would be held
late in the Fall.
The national quota was set for 14 billion dollars -7 bill ion from individuals of which 4 billion was to be in
E bonds. This was the largest individual quota of any war
bond d:rive.
During the preparation of the promotional material,
it was decided to call the bond drive, "The Mighty Seventh.
Ted held a staff meeting on February 17th and told us to
cut dmm on materials to the field, to cut down the campaign
book to 12 pages, not to throw promotions to the states in
April except payroll savings, and that there probably would
not be any regional meetings.
On February 13, the Secretary, Ted Gamble, Peter Odegard
and Bob Coyne attended a meeting of all the State Chairmen
at St. Louis, Missouri. Several Payroll Savings meetings
were held in February -- Washington, Chicago and Dallas .
Befor e our promotional material s were printed we got
a lucky break. We received the picture of the soul-stirring
flag-raising on Mount Suribachi and ~sed it in the most
dramatic poster and insignia of all the war loans.
The promotional materials, although cut down, carried
the necessary information and suggestions. All of these
were directed to the war with Japan . They consisted of
three posters -- the Iwo Jima flag poster, a farm poster
and a point-of-sale poster ; the Champaign Book covering
- 93 -

advertising, press and radio; two folders titled, "Str aight
Talk" and "Which Issue Shall I Buy" , and a pamphlet titled,
'For Speakers Only . " Promotions were arranged through Army
and Navy cooperation for the states, and designed for
i ntegration with their promotions. In fact, the national
promotions for the Seventh were in reality local promotions .
In the pamphlet, "For Speakers Only" was a message from
President Roosevelt which read:
"I don't need to tell you that we are still locked in
a deadly struggle with our enemies -- the enemies of our way
of life -- and the war is still the chief job of each one of
us. The greatest production of which we are capable, faithful
adherence to regulations that make it possible to supply our
boys in battle with everything they need, and buying and
holding War Bonds -- these are things we at home must do to
speed victory . In the past three years more than 85 million
Americans have invested billions of dollars in bonds .
Never before have so many people held such a direct share
in a great national effort . To save - - to buy and to hold
all we can of War Bonds - - this is a small service to ask
of us who do not fight -- yet it is one of the biggest things
we can do for our fighting men . "
This was the last message of President Roosevelt on
the War Bond program. He died on April 12, 1945, about a
month before the Seventh War Loan Drive .
The speaker's pamphlet contained articles written by
many of America ' s best-known authors exclusively for the
Seventh War Loan. They were written as a foundation around
which talks coul d be fashioned . The Treasury was indebted
to the Writer's War Board for many of the articles.
One of the articles was written by Sergeant Robert
Fleisher, Stars and Stripes, Mediterranean correspondent
with t he Fifth Army in response to a letter from Mark Van
Doren, Chairman of the National Book and Author War Bond
Committee. In the article Sergeant Fleisher stated:
"A rifleman or a platoon leader or a commander of an
infantry company in combat with the enemy does not count
on coming through the war unscathed .
"So when you buy war bonds, think consciously that
you are buying time off from the war's full run ,
shortening it by just so much , making it certain that the
last 100 or the last 1,000 will be able to come home
intact - - for no other reason except that you, by digging
a little deeper, working a little harder, were able to
shorten the war by just that much time that would inevitably
have meant their deaths -- had the war run on until Tuesday

- 94 -

instead of the Monday that you and everyone like you, caused
it to end on! "
General Joseph W. Stillwell
During the Sixth War Loan and in the planning of the
Seventh, the Army Ground Forces commanded by General Stillwell
had been of great assistance to us in the promotion of the
program. We learned from Lieutenant Colonel Bellah, public
relations officer of the Ground Forces that the General
admired a painting by Martha Sawyer, portraying infantrymen
in the Chinese war theatre.
General Stillwell had commanded the Fifth and Sixth
Chinese armies and the U. S. forces in China until he was
recalled in 1944 as a result of a disagreement with Generalissimo Chiang Kai-shek . He planned the Ledo Road which
later was renamed the "Stillwell Road". He was knmm as
the friend and champion of the infantry soldier . His
battered campaign hat was often his only insignia of rank.
To his men he was lmown as ''Vinegar Joe .
Through the office of Secretary Morgenthau, we obtained
the painting and on February 21, 1945 presented it to him
in appreci ation of the Army Ground Forces cooperation with
the Treasury.
On June 21, 1945, General Stillwell commanded the
Tenth Army on Okinawa and accepted the surrender of the
Ryukyus Islands on August 31, 1945. He died in San
Francisco in 1946 .

Results of Seventh War Loan
At the beginning of the Drive it looked like a
Herculian task to meet the unprecedented quotas. The
Treasury was asking for the largest sum from individuals
in the history of America. The war with Germany was
over. It looked like a matter of a short time before
Japan would surrender . Would the volunteer organization
work as enthusiastically under the circumstances? Would
the American people respond like they did in the other
These questions uere answered in the unbelievable
results. It could have been the leadership of the
advertising media in spearheading the Seventh . It could
have been the cooperation of the Armed Services in
promoting the various special events -- infantry shows,
air force shows, displays of captured equipment, naval

- 95 -

displays and use of returned war heroes. It could have been
the motion picture and theatre cooperation. But it is most
likely it was the cooperation of all these t ogether wi th
the effective work of the Victory Vol unteers . The final
sales showed:
Goal- - ---- - - -- - - - -- - ----- ------- - - --- $14,000,000,000 .
Total sales to non-banking investors - 26,313,000,000 .
Sales to Individual s (Goal - $7 bill ion) 8,681,000,000 .
Series E Bonds (Goal - $4 billion )
Resignation of Secretary Morgenthau
The final results of the Seventh War Loan had no more
than reached the Treasury when Morgenthau submitted his
resignation to President Harry Truman -- July 5, 1945.
His close friend, President Roosevelt, was gone and President
Truman wanted a cabinet of his own men .
The resignation l1as accepted by Truman and on July 6th,
Judge Frederick M. Vinson, a close advisor and confidant
of the President was appointed Secretary. Vinson had been
director of the Office of Economic Stabilization and director
of the Office of War Mobilization and Reconversion prior
to his appointment. In 1943 he had been Chi ef Judge of
the U. S. Emergency Court of Appeals .
On July 24 Ted Gamble had a long conference with
Secretary Vinson relative to the bond program. We had not
lrnmm for certain Vinson's views and whether he wanted
Ted to remain as National Director . Ted came away from
the meeting very satisfied .
The Victory Loan Drive
Plans for the final bond drive was worked out, with the
approval of Secretary Vinson, and a meeting of al l State
Chairmen was set for August 15 at the Statler Hotel in
Washington, D.C.
The dates of October 29 through December 8, 1945
was decided upon for the Drive . The goals were set at
$11 billion -- $4 billion from individual s and $2 billion
in Series E bonds.
The slogan -for the Victory Loan was: "They Finished
Their Job -- Let's Finish Ours ! 1' The official insignia
was a design combining the victory wreath and the l iberty
torch, with the words, "Victory Loan. ''
Our promotional material and copy policy were directed
specifically to certain features of the bond program:

- 96 -

l- Explain the complete story of why the Treasury
needs the money.
2- Step-up the promotion of bonds to the farmers.
The Victory Loan comes at the peak of farm
income in l945 .
3- A new denomination of a $200 Series E bond called
the "Roosevelt Memorial Bond" was issued at the
sale price of $150 .
4- An increased cooperation of the Armed Services will
be had with all types of exhibits, air shows,
wounded veterans, combat nurses, mobile units and
bands .
5- The most powerful Treasury 16 mm film program
will be available •
6- There will be an outstanding performance of the
Motion Picture industry.
7- Youth activity will be increased in the campaign .
8-- fa ''Victory Train'' directed by the Army Ground
Forces will tour the country.
9·· Treasury Certificates of Recognition and Award
will be increased .
The question of why the government needed the Victory
Loan of $11 bi llion had to be explained to the American
public if the Victory Loan was to be a success . The
explanation was made to the advertising media and the
volunteers in this manner·
Care of the wounded and rehabilitation of veterans
this job is going to be one of the nation's biggest expenses
for years to come. Mustering-out pay, education, loans,
and general administration of the G. I . Bill of Rights must
be added to care of the uounded.
Cancellation and termination of war contracts -- huge
sums are still required to pay for war materials which were
ordered produced, and delivered months ago . Where contracts
are canceled, payment must be made to contractors for losses
suffered, and as contracts are terminated, companies drop
out of the excess profits bracket and our taxes go dmm,
thus decreasing Federal tax receipts.
Inflation -- while unemployment will rise during the
reconversion period, the bulk of American wage earners will
still be earning high wages and will have the most money
accumulated that they 've had for years . Present figures
indicate that the 11 inflationary gap" -- the difference
between purchasable goods and services and income -- will
be about $40 billion this year . In addition, Americans
have accumulated about $100 billion in savings since Pearl

- 97 -

Harbor . If this extra money is saved, it can provide a
backlog of buying power and a steadying influence for years
to come. Conversely, if peopl e should try to spend it now
befor e many consumer goods are avail able, chaos can r esult .
Bringing men home - - it ' s just as expensive as sending
them over, and the process will go on for an indefinite
Maintaining armies of occupation -- housing, feeding,
giving medical care to at least two armies abroad is a
costly business 1·1hich will go on for sometime -- we don't
know how long .
We realized that in listing the Treasury's needs, not
all of them made good advertising material . Asking people
to buy bonds to maintain their sons abroad was probably
useless. They'd rather buy bonds to pay for bringing
their sons home. And explaining why it costs money to
stop buying war materials is a fairly complicated job .
But we wanted the people to lmow the complete story.
During the Victory Drive, one of the most outstanding
national promotions of any drive was the six "Victory Loan
Special Trains," carrying exhibits of the Army Ground
Forces, Navy and Marines which toured 40 states and 500
The trains and the exhibits were in charge of Colonel
James E. Rudder of the Army Ground Forces . The exhibits
included weapons and captured enemy equipment of every type .
The trains carried a hand=--picked crew of combat veterans
from the various theatres of war .
The war trophy which attracted the most interest
and attention was the Goering baton . At the beginning
of the Drive, Lieutenant General Alexander M. Patch loaned
the baton to the Treasury for use in the bond campaign.
·when the Seventh Army captured the No. 2 Nazi, Goering
turned the baton over to General Patch .
The baton consists of an ivory staff 16 inches long
inches in diameter on which are mounted, alternately
in four rows, 20 golden eagles and 20 platinum iron
crosses. On one end is the inscripti on "der Fubrer dem
Reichsmarschall Grossdeutschlands" and on the other, his
name: "Hermann Goering, 19-7-1940" in raised platinum
lettering . At each extremity are placed two golden knobs
containing, in all, 640 diamonds of varying sizes . On
one knob is a platinum Luftwaffe iron cross and on the
other an eagle in flight carrying a swastika in platinum
mounted in diamonds. The baton weighs approximately five


- 98 -

At the conclusion of the Victory Drive, it was learned
that General Patch had died in Texas on or about November 21,
19L~5. We wrote Mrs. Patch as to the disposition of the baton.
She advised that the General had wished the baton to be turned
over to the museum at the United Stat es Military Academy,
Uest Point, New York. She stated she would make the arrangements. On March 22, 1946 the baton uas turned over to
Colonel P. Swofford Jr . , Headquarters of the United States
Military Academy.
Another outstanding exhibit on the Victory Train was
the samuri stained suord of the notorious General Yamashita,
pillager of Luzon, who was one of the most brutal of the
Japanese warlords . In the display with the sword was a
facsimile of the documents of Yarnashita's surrender in the
Philippines . The traditional caste sword was dispatched
to the Treasury by General MacArthur for display in the
Victory Loan Drive.
Award to Walt Disney
In 1943, Walt Disney granted the Treasury permission
to use the various Disney characters - - Donald Duck, Bambi,
the Dwarfs, etc . -- on a certificate of the United States
Treasury to be used when bonds were purchased for babies
or small children . On the outside edge of the certificate
were pictures of 22 of the Disney characters in color.
The certificates weTe usually signed by a State
Chairman, or a Treasury official -- in some cases the
Secretary of Treasury.
This was by no means the only cooperation by Walt
Disney . Throughout the war he promoted War Bonds through
advertising shorts, production of short promotional
pictures and in the work of the bond volunteers.
It was my honor to present to Walt Disney the
Treasury's Distinguished Service Certificate .
The Victory Loan Sales Results
As a result of the various outstanding promotions,
excellent advertising and principally the work of the
volunteers, there was no let-dmm in the sales of war
bonds in the Victory Loan ·
Goal ------------------------- ----- ----$11,ooo,ooo,ooo.
Total Sales to non-banking investors -- 21,144,000,000 .
Sales to Individuals (Goal - $4 billion) 6,776,000,000.
S~les of Series E Bonds (Goal - $2
billior) ------- -- - ------------------ 2,2o4,ooo,ooo.

- 99 -

A fitting climax to over four and a half years of war
finance activi ty came just at the cl ose of the Victory Loan,
when the one billionth war bond was sold.
Sales Results of 1945
During 1945 the people of the
E, F, and G War Bonds in the total
January ------- - -$1,074,180,000.
February-- -----847 ,990,000 .
March------ ----889, 075,000 .
April--- - ----- -837 ,635,000.
May - -- -- - ··- - - -- - 1,540,088,000 .
June ------- -- --- 2,178,054,000 .

United States had purchased
amount of almost 13 billion
July -- --- -- - --$1,291±.i_475,000.
August -------699,741,000 .
September -- -- 514, 113,000.
October - -----624,470,000.
November ------ 1,183,621,000.
December - ---- - 1,253,521,000.
Total -- - - ----$12,936,963,000 .

- 100 -

As soon as the Victory Loan Drive started on Oct ober 29,

1945, the Washington Staff turned to plans of the post -war
organization in 1946.
Most of the section heads of the Staff had announced
their intentions to return to their former occupations or
to some position in civilian life. Most of them had taken
a bi g reduction in their income while with the War Bond
program. Charles Adams, who had come with me at the
beginning of the organization of the Defense Bond program,
accepted a position with the Coca Cola Company . Ralph
Engelsman, head of Payroll Savings, returned to his
insurance business in New York City. Ted Gamble and Bob
Coyne stated they were going with the Motion Picture
Industry in New York. Dr. Peter Odegard accepted an
appointment as President of Reed College in Portland,
Oregon . Peter asked me to go with him as Administrative
Officer of the college. he explained he disliked
administrative work and he wanted someone he could rely
On November 10, I had a conference with Ted and
Bob at which they as1ced me to take over the or ganization
as National Director. They explained they had contacted
Vernon Clark, who had directed the War Bond program in
Iowa and he would accept the National Chairmanship on a
volunteer basis. He would be the contact with the State
Chairmen, the Secretary's office and Congress .
Although this carried an advance in salary and
position, it was not an easy decision to make . It was to
my advantage to remain in the government service as I
had more than 20 years in the service and had built my
retirement into a comfortable sum. However, the position
as National Director would be subje-::t to politics and
there was the question of how successful the post-war
program could be operated .
There were many financial and industrial leaders,
and several Treasury officials ,-rho believed the post-war
program ,muld gradually deteriorate into a small operation.
They based their conclusions on the belief that the
- 101 -

redemptions would soon far exceed the sales, people would
cash their bonds as soon as goods were available. Further,
the volunteer organization could not be maintained, since
the war incentive was over; State Chairmen and other volunteer
l eaders would not spend the time and effort in the program;
and that the banks and industry woul d not have the patriotic
urge to continue.
It was my opinion the American people were sold on buying
government bonds and they liked the payroll savings plan . Of
course we could not maintain the sales we had in the war
period and we would have to cut back our organization. I
was certain we could maintain our sales to exceed the
redemptions and I hoped a little more . It was a chall enge
and I accepted the appointment .
On November 15th Vernon Clark arrived in Washington
and for a few weeks, with the assistance of Ted and Bob,
we worked out the plans and personnel of the Washington
In general, the peacetime program would be a program
of information and sales. There were to be no drives nor
formal sales quotas for states, although standards of
performance would probably develop . The program would be
mainly one of c-onsolidation of the wartime gai ns made in
the habits of thrift by insuring availability of bonds
and stamps at as many outlets as possible and encouraging
their purchase by the continuance of the established
methods of purchase . The program would not be in any
sense high pressure and its voluntary character woul d be
carefully preserved. The general objectives were:
1- To continue the sale of Savings Bonds through
the payroll savings plan.
2- To continue the sale of Savings Stamps and Bonds
through the schools.
3- To encourage the continued holding of Savings
Bonds, thereby keeping the public debt spread.
4- To continue publicity in all media possible,
in lesser quantity but aimed for top quality.
5- To maintain good public relations with banks
and other issuing agents .
6- To provide, by the execution of the foregoing,
an opportunity for every volunteer who desires a
further opportunity for active public service .
It was of the utmost importance that no gap or lull
occur between the Victory Loan and the continuing program.
The public had to be made aware at once that the sale of
stamps and bonds was to continue.
- 102 -

On December 20, 1945, the State Chairmen and many
promi nent volunteers sponsored a dinner in tribute to Ted
Gambl e and Bob Coyne. The tribute read:
"There comes to few men the plaudits of their fellow
men, to fewer men the plaudits of a grateful people. Your
gre8test accolade comes from the hands of these millions,
whose destinies you have helped shape and whose trust and
faith in you is implicit in the manner in which they have
heeded your chal lenge to support their country in its
moment of greatest need. We as yam· lieutenants speak for
the inarticulate mill ions . We speak in gratitude. We speak
in the full lmowledge that your work in the wer has paved
the way for a better and more prosperous world at. peace.
We salute you and we sey to you, Ted, and to you Bob, ''\.'Jell
Done -- God Keep You . '
On January 1, 1946 the United States Savings Bonds
Division was established by Treasury Department Order No . 62.

- 103 -

From May , 1941, through December 1945, the War Finance
organization, and its preceding organizations, were responsible
for the sale of 185.7 billion dollars of government securities .
Aggregate goals in the eight special loan drives were oversubscribed by 48't. Individuals increased their holdings of
Savings Bonds to 42 . 7 billion dollars and Series E bond holdings
stood at an impressive total of 33.7 billion.
The purpose of the Series E bond was to democratize public
finance in the United States. The objective was to have the
ownership of America in the handz of the American people . When
war broke out they served not only as a vital factor in financing
the rearmament of our fighting forces, but what is even more
impor tant, they gave to the average citizen a sense of the var ' s
meaning and of the urgent nature of the national danger . Throughout, the program was conducted on a genuinely voluntary democratic
basi s. From the beginning it avoided certain high- pressure sales
tactics which unavoidably attended the fund-raising of World
War I . It was determined that there should be no compulsion, no
hysteria, no slacker lists and no invidious comparisons between
those who bought bonds and those who did not.
The desire of the people "to help", the sense of participation in the national cause, could never have been realized except
through a voluntary program. But a voluntary program could
succeed of course only through the efforts of volunteer worl<ers.
We in the Treasury could fulfill only the functions of a general
staff . The real battle had to be fought and won in the field
fought and won by sustained, unstinting, tireless service
which we had.
The various divisions of the Treasury worked closely with
us . The Division of Research and Statistics headed by Ceorge
Haas, and with Wesley Lindow and Sidney Tickt.on, Assistant
Directors, marshaled the facts bearing on the public debt problems
and their economic significance . They provided alternative
sketches and blueprints as to the various shapes which the debt
structure might take . Their influence on the planning of campaigns
was profound. It will always be remembered their early techniques
of briefing laymen into the mystery of finance and the sources of
funds that theretofore had been considered largely esoteric areas.
- 105 -

During the war Dr. Peter Odegard was our consultant on
policy metters. After Harold Graves left, he was the final
approval on all promotional materials and many times was a
speaker at sales conferences. Ted Gamble consulted with Odegard
on most of the policy problems.
War Savings stamps were often overlooked in the program
because of their small sales return in dollars as compared with
bond sales. Stamps had an important part , both in dollars and
other values. The total sale of stamps from May 1941 through
December 1945 was $1, 652, 089,000, of which 92.% were redeemed.
Of the stamps redeemed, 83 . 15% were redeemed for War Bonds - 16. 4% were redeemed for cash and Postal Savings Certificates.
The great bulk of the stamp sales were through s chools or
newspaperboy cl ubs . The i mpact of the thrift message on youngsters who uere growing up to be future payroll savings and bonda -month customers was important to the long range bond program.
The banks ' part in the War Bond program, great as it was,
instead of hamstringing them, left them in a position to service
enthusiastically a virile private enterprise system. They were
not only able to maintain a strongly liquid position as a result
of the manner in which the nation ' s war finance had been handled,
but also they found an opportunity for publ i c service .
Unlike any previous major war in American history, the
Second World War was financed at a l ow l evel of interest r ates
- - Morgenthau ' s greatest accomplishment in all his years at the
Treasury. In the period between the outbreak of the First World
War and its end, the average rate of interest on the national
debt had risen from 2.36 to 4 . 22 per cent . In contrast , on
July 30, 1939, just before the start of the Second World War ,
the average rate of interest on the national debt, them some $45
billion, amounted to 2 . 53 per cent ; six years later, wi th the
debt at $257 billion, the average rate had fallen to 1. 94 per
cent. These figures understated the savings in interest cost
between this war and the last one, because interest on the
securities of the Second World liar was not tax free .
Twenty years later, Morgenthau reversed none of his wartime judgments . He observed that the Defense Bond program had
served, in the absence of any federal propagamda agency as
"the spearhead for getting people interested in the war. 11 As
he had before, so again, he lamented corporate speculation during
Treasury Bond Drives . Most of all he expressed satisfaction with
the Treasury ' s reliance on voluntarism, and with the bond campaigns
as instruments for awakening the American people to the implications of war . He was still deeply grateful to Harold Graves,
Peter Odegard and Ted Gamble for their help. He regretted only
his signal failure, the failure of the whole executi ve branch,
to bring the Congress to a responsible tax policy for which he had
fought continually.
- 106 -

May 1, 1966 was the 25th a.nniversary of the Savings Bonds
program. From an auspicious beginning the Defense Bond, War
Bond and Savings Bond programs grew into the greatest continuing
program of government finance in history.
It was widely assumed that the bond pr ogram would come to
a natural end with the closing out of the wartime emergency
which had brought it into being. But the bond- buyers thought
otherwi se . Having tasted the fruits of regular saving -- many
of them for the first time in their lives -- mill ions of them
wanted to go on with their payroll savings for bonds, or regular
purchases at the bank . The volunteer corps felt the same way.
Business and industry, banks , labor organizations, womens ' and
veterans ' groups of all kinds demonstrated a belief that popular
participation in government financing had a place in a peacetime
economy as well as under wartime conditions. So the program
continued on a less intensive but equall y broad- gauged basis
making undramatic but steady gains year by year .
The drive techniques of war time were discarded in favor
of constant day- by- day promotion of our major markets -- wage
and salary, banking and investment, farm and schools . The staff
was sharply reduced in size, to some 592 persons from its war time height of about 2 , 000 .
During the 25 years of the bond program, some $152 billion of
bonds were sold and $102 billion of this amount were redeemed to
buy the things their owners had saved for -- new homes , education,
retirement, and other i mportant needs . The attainment of the $50
billion goal of bonds outst anding in 1966 was a fitting climax to
the Silver Anniversary year of the Savings Bond program.
Although the Ser ies E bond became a wartime security
shortly after it was creat ed, it has been a peacetime security
since 1945. It is somewhat altered in its appearance as a result
of a graceful aging, but it is esse:;1tially the same security
that was used in 1941 . Its long life and eventual place in
history can be traced to the fact that the bond was issued at
the right time and it was the right security for the time .
A quarter of a century later no fewer than 2 billion 600
million copies of that original bond had been purchased by the
American people . It is interesting to note that the American
people bought twice as many separate savings bonds since the
- 107 -

Victory Loan as they purchased during the vartime period.
The saver -- particularly one of the eight million who
bought bonds autor1atically through the payroll savings plan i n
some 110,000 companies -- looked upon Savings Bonds as the
answer to the age- old problem of hou to show a profit for his
labors. He rightly considered them as safe and protected,
something he could put away and forget about. Although the idea
of "helping to manage the public debt" was furtherest from his
mind, he still looked upon his Savings Bonds as a kind of badge
of citizenship .
Since 1)46, there was a 7o½ billion dollar increase in the
public debt. Fifty nine billion dollars of this was picked up
by the trust funds for investment of their surpluses and the
central bank to meet credit expansion needs . Thus, the publicly
held Federal debt since 19lr6 increased only 11½ billion dollar s .
Savings bonds provided more than that amount of public financing,
in fact, a total of 19½ billion -- savings bonds outstanding
increased from
to over 50 billion dollars . This permitted a
net decrease of $8 billion in all other issues held by the public .
The volunteer support which has made this record poss i ble
is impressive, both in volume and variety. From tne presiuenL~
of giant corporati ons who have served on national payroll savings
committees to the smallest business man who conducted a payroll
savings campaign; from the savings bonds committee of the American
Bankers Association to the country banker uho served as Savings
Bond Chairman for the smallest county: from the agencies associated
with the Advertising Council who produced our advertising progr am
to the weekl y newspaper who purchased an ad; from the top officials
of AFL- CIO to the shop steward who worked in a payroll savings
campaign, the volunteers gave selflessly of their time and effort
to make the program succeed . National civic and fraternal
groups, womens' organizations, industry associations and
community groups of all kinds have provided the backing, the
endorsement and the promotional activity necessary to keep the
Savings Bonds program a flourishing enterprise .
Most important of course, there was the permanent volunteer
structure of state, county and local chairmen and the respective
committee members, without whose dedicated efforts the program
could never have grmm to its present stature . Bankers were on
the forefront of the volunteer corps since 191:1, both as
individuals and through their instituti ons, which promoted and
serviced the Savings Bonds progrrun. In 1966 about 6ot of the
state and county bond chairmen were bankers and many of them
had served since the beginning of the program.
One of the major highlights of the 25th anniversary year
was the issuance of a colorful commemorative postage stamp
saluting the American serviceman and the volunteers of the


- 108 -

Savings Bonds program. The stamp was designed by Stevan Dohanos
of Westport, Connecticut, one of America ' s best known artists . The
desi gn was based on a photograph of the flag with the Statue of
Liberty towering in the background.
It was to the vast army of bond volunteers that the 25th
Anniversary of the Savings Bonds program was dedicated.

- 109 -

Schedule "A"

Total Sales

1941 (8 months)

$ 2, 537, 210,000 .


9,156,957, 000 .


13,729,402,000 .


16,044 , 085 , 000 .
12, 936, 962 ,000 .



- 110 -

$54,404,616,000 .

Schedule "B"
Period of Drives
First War Loan
Nov. 30 - Dec. 23, 1942


Total Sales
of dollars)


$ 7,860*



Second War Loan
April 12 - May 1, 1943


13 ,476-r..-:t

Third War Loan
Sept . 9 - Oct. 2 , 1943


18 ,944

Fourth War Loan
Jan. 18 - Feb . 15, 1944



Fifth War Loan
June 12 - July 8 , 1944



Si xth \far Loan
Nov. 20 - Dec . 16, 1944



Seventh War Loan
May 14 - June 30, 1945



Victory Loan
Oct . 29 - Dec . 8, 1945







In addition

$5 ,087 to Commercial Banks .


In ad.di tion

$5,079 to Commercial Banks .

- 111 -


1941 - 1945
Schedule "C"

Appointed Resigned

State Chairman
Ed Leigh McMillan -- President , Citizens
Bank at Brewton---------Vice Chairmen
Lucian Burns -- Mayor of Selma
Thomas N. Beach -- President, W. B. Leedy
& Co . Birmingham------- - -Frank Park Samford - - President, Liberty
Nat ' l. Life Insurance Co .State Administrator
Joseph H. Lyons -- Collector of Customs,
Marc Ra.y Clement - - Attorney, Tuscaloosa .
Deputy from 10-14-41------


7-24- 43



9- 25-41

7- 24-l!-3

7- 24-43

Governor of Al aska
Ernest H. Gruening
Ernest H. Gruening
Governor of Alaska
Deputy Administrator
Frederick W. Ayer -- Capitol Publishing
Mrs . Katherine Nordale -- District Court

- 112 -

10- 6-41


4-9- 42

7- 30-43

Appointed Resigned
State Chairmen
James P. Boyle -- Attorney, Tucson
7-9- 43
Walter R. Bimson -- President, Valley
National Bank, Phoenix---7-9-43
Vi ce Chairmen
Charles A. Stauffer -- President, Arizona
Publishi ng Company,
J ames P. Boyle -- Formerly Chairman-----7-9-43
State Administrator
Will iam P. Stuart -- Collector of Internal
7- 9-43
Oren R. Frasier -- Deputy Administrator

Executive Director
Joseph E. Refsenes -- Investments,

7- 9-43

State Chairman
W. W. Campbell

President, National
Bank of Eastern Arkansas,
Forrest City

Vice Chai rman
W. Rober t Crow -- President, CrowBurlingame Co., Little
Rock---------------------State Administrator
Roy G. Paschal -- Collector of Internal
Claude K. Wilkerson -- Deputy 7-16-41


6- 2-41

8- 9-43



7-6- 43

5- 8-44

Northern California
State Chairmen
Edward H. Heller
Schwabacher & Co .
Charl es R. Page -- President, Fireman's
Fund Insurance Company---Wil liam W. Crocker -- Crocker National
Bank------------ --- - - ----Vice Chairman
Merriel E. Cooley -- President, S.F.
Shopping News- ----- -------

- 113 -


Northern Cal ifornia
James G. Sm.yth

University of California------- - ---- - - - -------1'1illiam V. Regan -- Formerly Deputy-


Appointed Resi gned




Southern California
State Chairmen
John R. Richards -- Investment Banker---Robert H. Moulton -- President, Moul ton &
Co. Bonds
Vice Chairman
Charles E. Driver -- Blyth & Co . - RetiredM. Penn Phillips -- Assoc. Administrator


7- 29-41





Howard D. Mills -- Investment Analyst---8- 28- 41
Appointed Regional Field Director


State Chairmen
Richard J . 0senbaugh -- Sal es Manager ,
Denver Sewer Pipe and
Clay Co . Denver---- ------Clarence H. Adams -- President, International Trust- ------------Philip K. Alexander -- Vice Pres. First
National Bank-- ----------Vice Chairman
Charles B. Engle -- International Trust
Company------------------Formerly AdministratorRalph Nicholas
Collector of Internal
Ralph Nicholas
Revenue ------------------Louis M. Montania -- Deputy 8-5-41
Dewey M. Smith -- Deputy 7- 27-42

- 114 -


7-31- 43


7- 25-44



10- 20-45

7-31- 43

Appointed Resigned
State Chairmen
Robert B. Newell
President, Hartford
Nat 'l. Bank & Trust Co .--5- 1- 41
8- 30- 43
Col. Thomas Hewes -- Attorney-----------8- 30- 43 12-18-43
Eugene E. Wilson -- United Aircraft
Vice Chairmen
Grosvenor Ely - - President, Chelsea
8- 20- 43 12-20- 43
Savings Bank-------------Paul E. Callanan -- Vice Pres . , Hartford
Nat'l Bank------- --------2- 25 -45
Thomas S . Smith -- Collector of Internal
Revenue------------------8- 20- 43
Philip Hewes -- Deputy 5-1- 41
11-14- 42
Edward G. Stewart -- Deputy 3-1- 43
8- 20- 43 10-18- 43
2- 26- L~4 10- 20- 44
John M. Hurley -- Deputy 3- 24- 42
Frank L. Cashman
Deputy 6-14- 43
1 -16- 45
State Chairmen
Henry T. Bush -- President, Farmers Bank,
Wilmington---------------Donald P. Ross -- Vice Pres . , Wilmington
Trust--------------------5- 7- 45
Vice Chairman
Donald P. Ross
Administrator-1-27- 42
7- 9-43
Vice Pres., Wilminton
Donald P . Ross
1 - 27- 42
7- 9- 43
Trust--------------------7- 26- 43
Henry 0 . Gray -- Deputy 7-13- 4-2
District of Columbia
State Chairman
H. L. Rust, Jr.

Pres . , H. L. Rust Co .
Real Estate------- --- ----John A. Reilly - - President, Second Nat ' l.
Bank---------------------Wilmer J . Waller -- President, Hamilton
Nat ' l Bank ------- ---- ---Administrator
Hugh Lynch -- Merchants Assoc . of New
York- - ------------- -------

- 115 -

7- 31-41

7- 1 - 43

7- 1 - 43

9-1 - 44

9- 25- 41

State Chairmen
President, First
Linton E. Allen
National Bank of 0rlando-W. W. McEachern -- President, First Nat' 1.
Bank of Fort Lauderdale--Vice Chairman
John L. Fahs - - Formerly Administrator--Administrator
Collector of Internal
John L. Fahs
Revenue------------------Karl Lehmann -- Deputy Administrator


Appointed Resigned


8- 29- 42

6- 2-41



State Chairmen
Arthur Lucas -- Lucas & Jenkins --------Charles A. Stair - V. Pres . , So . Bell
Telephone------- - --------R. A. McCor d -- Partner , Merrill, Lynch,
Pierce Fenner & Beane--- -Jackson P. Dick -- Vice Pres . , Georgia
Power Company------------Administrator
Marion H. Allen -- Collector of Internal
Revenue- - ----------------William M. Stephens -- Formerl y Deputy0kl ahoma-----------------Thomas L. Camp -- Exec . Sec' y ., Railroad
Assoc. of Georgia--------Hawaii
Fred H. Kanne - - Coll ector of Internal
Revenue--------------- ---Vice Chairman
George S. Waterhouse -- President , Bishop
National Bank----- -------Administrator
William K. Hanifin -- Deputy 7-9-42
State Chairman
John A. Schoonover
President, Idaho
First National Bank-------

- 116 -



8-1- 43




3-1- 45
6- 2-41




3-15-45 11-30-45


Appointed Resigned
John R. Viley -- Collector of Internal
7- 9- ~3
Revenue------------------7-14- 41
Theodore H. Wegener -- President, Wegener &
Daly Inc. - Boise--------7- 9- 43
State Chairmen
Harol d H. Swift -- Vice Chairman, Swift &
Company------------------Renslow P. Sherer
Formerly Administrator
Admini strator
Norman B. Collins
Banker-------------Renslow P. Sherer
Formerly Asst .
Administrator------------Ednn:md B. Bartlett -- Formerly Asst.

1 - 27- 42
4-11- 44

4-10- 44

8- 22- 41

6- 4- 43

6- 4- 43

4 -11- 44

4 -17-44

State Chair man
Eugene C. Pul liam -- Editor and Publisher
of Indianapolis Star- ----Vice Chairman
J . Dwight Peterson -- President, City
Securities Corporation---Ad.ministrator
Will H. Smith -- Collector of Internal
Revenue------------------Wray E. Fleming -- Formerly Deputy
7-11- 41
Willis B. Conner, Jr . -- Formerly Deputy
10- 23- 43
Executive Secretary
Lawrence Dorsey -- Formerly Chairman
Lake County--------------Iowa
State Chairman
Dr . John S . Nollen
President, Grinnell
College------------------Co- Chairman
Herber t L. Horton -- President, Des Moines
Nat ' 1 Bank & Trust Co .---Administrator
Vernon L. Clark -- President, Lumber
Companies-------------- --- 117 -

10-16- 41
8- 21 - 43
6- 2- 41

2- 21- 42

2- 21-42

8- 21- 43

2- 1- 45
7-12- 43

9- 26- 41

8- 9- L~3
11-15- 41

State Chairman
Newspaper Publ ishWilliam Allen White
er-----------------------W. Laird Dean -- President, Merchants
National Bank, Topeka----Vice Chairman
Frank L. Carson -- President , Merchants
National Bank, Wichita---Admi nistrator
Evan Griffith -- Former Director of State
Highway System-----------Kentucky
State Chairmen
Ben Williamson, Jr . -- President , Ben
Williamson Co .-Ashland---State Administrator
S . Albert Phil lips -- Vice President,
Fir st Nat ' l Bank of
Louisville---------------Chairman- Eastern Kentucky
Ben Wi l l iamson, J r . -- Formerl y Stat e
Chairman--------- ---- ----Chairman-Wester n Kentucky
S. Albert Phillips -- Formerly State
Administrator------------Vice Chairmen
Joshua B. Everett -- Chair man, Board of
Welfare------------------David F. Cocks -- Vice Pres ., Standard
Oil Co. of Kentucky- -----Administrator- Eastern Kentucky
A. A. Hines -- Formerly Deputy- 3- 9- 42
Administrator-Western Kentucky
James S. Bate, Jr . -- Formerly Deputy
1 -16- 42
State Chairmen
Nicholas Bauer
Formerly Superintendent
Orleans Parish School
Board--------------------Leon G. Tujague -- Formerly Administrator

- 118 -

Appoi nted Resigned

7-29- 41

8- 11- 43

6- 20- 41

1 -1-42

7-9- 43

1-1- 42

7- 9- 43

7- 9- 43
7- 9- 43
7- 9- 43
7- 9- 43
7- 9- 43
7- 9- 42

12- 26- 41
8- 6- 43

8- 6- 43

Louisi ana
Appointed Resigned
Vice Chairmen
Walter B. Jacobs
President, First
National Bank of
Shr eveport---------------8-10-43
Admini strator
Paul H. Maloney -- Col lector of Internal
Revenue- - -------- --------11- 6-41 10-1- 42
Leon G. Tujague -- Owner, Wholesale Fruit
and Vegetabl es - ----------10-1-42
8- 6-43
J . J . Knecht -- Formerly Deputy 12-10-41
1-1- 44
State Chair men
Walter S . Wyman
President, New Engl and
Public Service Corpor ation
Phi llips M. Payson -- Payson & Company,
Investments------------ --11-22-43
Vice Chairman
Al ton P. Littlefiel d -- Central Maine
Power Co. ----------------2- 6-42
Horace S . Stewart -- President, Merchants
Nati onal Bank------------8-6-43
Clinton A. Clauson -- Collector of Internal
Revenue ---- --------------5-21-41
Harvey M. Fickett -- Formerly Deputy

8- 26-43




State Chairmen
Charles H. Roloson, Jr. - - President,
Central Fire Insurance Co .
Hooper S. ~tiles -- Chairman, Baltimore
Nat'l. Bank
Howard W. Jackson -- Riall Jackson Co . ,
W. Bladen Lowndes -- Formerly Vice Chairman---------------- ------Fr ank W. Wrightson -- Formerly Vice Chairman-------- --------------S. Page Nel son -- Formerly Vice Chairman-

- 119 -




12-1- 43


3-1- 44






Maryl and
Vice Chai rman
Charl es H. Roloson , Jr . - - For merl y State
Chair man- --------------- -Frank W. Wrightson -- President, Provident
Savings Bank, Balti more--S . Page Nelson -- President, Savings Bank
of Baltimore----------- - -William J . Casey -- Vice Pres., Maryland
Trust Company------------ Administrator
Walter N. Ruth -- Investments

Appointed Resigned

7- 1- 43
3-1- 44

11- 1 - 44

3- 1 - 45

9- 1 - 45

11- 1- 44

3-1 - 45

11- 24- 41

State Chairman
Edwin C. Johnson
President, H. A.
Johnson Company--- - - ---- - A. P. Everts - - Partner, Pai ne , Webber,
J ackson & Curtis ,
Investments- - ------- ---- -F. W. DeNio -- Vice Pres . , First National
Bank of Boston- ------ - - --Vice Chairmen
Luc i us Hi ll -- Trustee------ - - - ---------Kenneth S . May -- Federal Reserve Bank--Ad.ministrator
Daniel J. Doherty - - Asst . Attorney
General- - ----- - ---- - ---- - Michigan
State Chairman
Frank N. Isbey -- President, Detroit
Fruit Auction--------- --- Admini strator
Giles Kavanagh -- Collector of Internal
Revenue------------------Walter J. Wade -- Formerly Deputy 4-14- 41
Deputy Manager
Robert C. Douglass - - Formerly Deputy
4 - 6- 42

6-10- 41

8- 7- 43

8- 7- 43

12- 8- 43

12- 8- 43
8- 7- 43
12- 8- 43

12- 8- 43

5-10- 41

12- 10-43

4- 14- 41
10- 26- 43
10- 26- 43

State Chairman
0. J . Arnold

President, Northwestern
National Life Insurance
Company----- --- - - - ------ -- 120 -

6- 9- 41

7- 1- 43

Vice Chairmen
Harold E. Wood -- President Harold Wood
Company, St. Paul--------Charl es E. Liscomb -- President, Charles
Liscomb Company--- -------Administrator
Arthur D. Reynol ds - - Col lector of
Internal Revenue------- --Leif Gilstad -- Formerly Deputy 6-12-41

Appointed Resigned

7-9-43 11-25-44

7- 9- lf3

7- 9-43



State Chairmen
Chairman, Mississippi
Al fred H. Stone
State Tax Commission,
Jackson------------------Rex I. Brm-m -- President, Mississippi
Power and Light Co.,
Jackson------------------Vice Chairman
Frank R. McGeoy, Jr . - - President, Bank
of Greenwood ------------Admini strator
Eugene Fly -- Collector of Internal
Revenue ------------------Marion B. Swayze -- Formerly Deputy


4-22- 41

7- 26- 43


1-31- 45

Leigh Watkins, Jr . -- Formerly Deputy



State Chairmen
Branch Rickey -- Vice President, St. Louis
Cardinals------------ ----Walter W. Head -- President, General
American Life Insurance
Company--------- ---------Vice Chairman
Dan M. Nee -- Formerly Administrator

Dan M. Nee -- Collector of Internal
Revenue ------- -----------Earl Shackelford -- Formerly Deputy

- 121 -



7- 9-43
7- 9-43
7- 9-43


State Chairman
A. T . Hibbard

President, Union Bank
Trust Company-----------

Vice Chairman
R. B. Richardson -- President, Western
Life Ins . Co. - - -------- -- Will iam Bartley -- Formerly Administrator

Appointed Resigned

7- 22- 43

William Bartl ey - - Collector of Customs ,
Great Falls--------------Fred J . Martin -- Formerly Deput y 7-1-41
State Chairmen
Elsworth Du Teau
Secretary, Alumnae
Assoc . University of- ----Nebraska--------- - - ------W. Dale Clark -- President, Omaha National
Bank--------- -- - ---------Vice Chairman
Arthur A. Lowman -- Presi dent, Board of
Northwestern Bell Telephone Company------------Administrator
Orvi lle Chatt -- Attorney---------------Leon J. Markham -- Formerly Deputy
Associate Administr ator
J . Francis McDer mott -- Vice Pres. , First
National Bank of Omaha- --Nevada
State Chairmen
William S. Boyle
Attorney-------- - ---Forest B. Lovelock -- President, Nevada
Ice Company---------- ----Administrator
Robert L. Douglass -- Collector of Internal
Revenue ------------------Elmer R. Berg -- Deputy 3-16-43

- 122 -





8- 2-43

12- 2- 41
6- 29- 42

4- 22- 42



7-26- 43


New Hampshire
State Chairmen
Winthrip L. Carter
President, Nashua
Gummed & Coated Paper Co .Reginald A. Soderlund -- Manager, National
Cash Register Company----El iot A. Carter -- Vice President, Nashua
Gummed & Coated Paper Co. Vice Chairmen
Norwin S . Bean -- President, Manchester
National Bank------------Harry J. Pelren -- Manager, Payne, Webber,
Jackson & Curtis ,
Investments--------------Willi am H. Partlan -- Partlan Advertising,
Incorporated-------------Reginald A. Soderlund -- Formerly State
William J. Starr -- Attorney, ManchesterWilliam H. Partlan -- Partlan Advertising,
Incorporated-------------Reginald A. Soderlund -- Manager, National
Cash Register Company----Carroll M. Degler -- University of New

Appointed Resigned

2-10- 42



8- 11- 43
8- 11-43
8- 11-43

l - 5-44

5-15- 45
11-18- 41

8- 10-42

8-10- 42


8- 11-43

4- 21-44

4- 21- 44

New Jersey
State Chairmen
Albert W. Hawkes
President , CongoleumNairn, Inc. --------------Franlin 0 ' 0lier -- President, Prudential
Life Insurance Company,
Newark-------- -----------Vice Chair man
Horace K. Corbin -- President, Fidelity
Union Trust--------------Administrator
John E. Manning -- Collector of Internal
Revenue - ------------------

6- 26- 41
7- 16-42
6- 2- 41

New Mexico
State Chair men
Frank C. Rand, Jr . -- President , New
Mexico Publishing Company12- 20- 41
Cale W. Carson -- President , First National
Bank of Albuquerque------8-11-43
- 123 -

7- 10-42

8- 11- 43

New Mexico
Vice Chairman
George Bloom -- Formerly Deputy
Administrator -----------Administrator
Steven P. Vidal -- Collector of Internal
Revenue ------------------Henry A. Nielsen -- Formerly Deputy

6- 22-42

Appointed Resigned

12- 22-41





New York
State Chairmen
Col. Richard C. Patterson, Jr. -- Chairman of Board, Radio Keith
0rpheum Corp .------------ W. Randolph Burgess -- Vice Chairman of
Board, National City BankFrederick W. Gehle -- Vice President,
Chase National Bank------Upstate Chairman
Edward H. Letchworth -- Attorney, Buffalo
Downstate Chairman
Lewis W. Douglas -- President, Mutual
Life Ins. Co. ------------Lewis E. Pierson -- Chairman of Board,
Irving Trust-------------Vice Chairmen
Mrs. Lytle Hull -- Welfare Leader------- Bayard Pope -- Chairman, Marine Midland
Mrs . Courtlandt D. Barnes -- Civic Leader
Nevil Ford -- Vice President , First
Boston Corporation-------Williarn Richmond -- Asst. Secretary,
Guar anty Trust Co .--------


6- 7-43



7-16- 41

6- 7-43

6- 7-43



North Carolina
State Chairmen
Julian Price -- President, Jefferson
Standard Life Insurance Co.
Clarence T. Leinbach~ - Vice President,
Wachovia Bank & Trust Co . ,
Winston Salem-------------

- 124 -


7- 30- 43

North Caxolina
Vice Chairman
Wm. H. Andrews , Jr . - - Manager Home
Office, Jefferson Standard
Life I nsurance Company---Administrator
C.H . Robertson - - Coll ector of Internal
Revenue---------------- - -A. Allison James -- President, Yerkes
Chemical Company- - - - ------

Appointed Resigned

7- 30- 43
4- 6- 41

7-30- 1~3

North Dakota
State Chairman
F . L. Conklin

President, Provident
Life Insurance Co . Bismarck

R . R. Wolfer -- Banker, Investments and
Insurance------- - - - --- - - - -

12-6- 41
11-17- 41

State Chairmen
Roy D. Moore

Vice Pres . and General
Manager, Brush- Moore
Newspapers - - -------------Phil J. Trounstine -- Retired Automobile
Executive--- - - - - ---------Vice Chairman
Percy W. Brown -- Attorney, Hornblower &
John Mcsweeney -- Attorney, Member City
Council and Board of
Education---- - - ----------Harold H. Bredlow -- Sales & Advertising .
Deputy Administrator
9- 2- 41
State Chairmen
Lew H. Wentz - - Independent Oil ProducerA. E. Bradshaw -- President, Nationo.l
Bank of Tulsa------- ------

- 125 -

7-16-41 11- 30-43
11- 30-43
11- 30- 43

7- 29-41

6-16- 41

5- 7-42

Vice Chairmeri
H. C. Jones -- Formerly Administrator---C. Edgar Honnold -- Oklahoma City
Municipal Securities-----E. L. Crutcher -- President, Fir st
National Bank, McAlester-L. W. Grant - - President, Home Federal
Savings & Loan - Tulsa---W. E. Hightower -- Vice President, First
National Bank & Trust Oklahoma City------ --- --- Hugh H. Harrell -- Vice President, First
National Bank & Trust Oklahoma City---- --------Administrator
H. C. Jones -- Collector of Internal
Revenue ------------------Sid.ney C. Bray -- General Motors Corp. ---

Appointed Resigned



6- 2-41


State Chairmen
6- 23-41
Palmer Hoyt - - Publ isher, The Oregonian-7-1-43
E. G. Sammons -- President , United States
National Bank of Portland7-1-43
Ted R. Gamble -- Motion Picture Theatres7-1-43 12-29-41
Thomas R. Conway -- Formerly Deputy
12- 29-41
Administrator------- - ----David W. Eccles -- Manager, Oregon Fuel
Merchants Association----3-1-43 4-15-44
Kenneth G. Martin -- Supt. Oregon Blind
Trades School------------6-11-44
State Chairmen
John A. Stevenson
President, Pennsylvania Mutual Life Insurance
7- 2-43
E. A. Roberts -- President, Fidelity Mutual
Life Insurance Company--7- 2-43 4-10-44
G. Ruhland Rebmann -- Attorney, Assistant
Administrator, Office of
Lend- Lease-------- -------4-10-44

- 126 -

Appointed Resigned
Vice Chairmen
Robert H. McClintic
Assistant to President, Koppers Coke Co .---7- 2- 43
Thomas Schmidt -- Vice President, Capital
Bakers, Inc . , Harrisburg-12- 15- 43
a. Howard Wol fe
Formerly Administrator
1- 1 - 45
Admini strator
Benjamin Ludlow
Attorney, Pennsylvania
Attorney General ' s office11-8- 41
7- 2- 43
0. Howard Wolfe -- Vice President, Philadelphia Nat ' l. Bank- -----11- 20- 43
1 - 1 - 45
Charles J. Miel -- Uni versity Of Pennsylvania--------------------1 - 1-45
Puerto Rico
State Chairman
Hon. Martin Travieso
Chief Justice,
Supreme Court------------Vice Chairman
Rafael Carrion, Sr . -- Manager, Banco
Popular de Puerto Rico---Juan Rodiriguez Pou
Lumber Merchant--Administrator
Raphael H. O' Malley
Defense Bond Staff
- Washington- - --- - ---------

7- 1 - 44
11-1 - 44
7- 2- 45
1 -1 - 45

Rhode Island
State Chairmen
Ernest Clayton

President, Industrial
Trust Company---- -------- G. Burton Hibbert -- President, Rhode
Island Hospital Trust Co. Roderick Pirnie -- Massachusetts Mutual
Life Ins. Co .-------- ----Vice Chairmen
Frederick Sterling -- Former Ambassador,
Iceland and Sweden-------Ernest Clayton -- Former State Chairman-Godfrey Simonds -- Partner, Walker & Co.
Investments---- - --------- -

- 127 -

7- 15- 41

7- 17- 43

7- 17- 43

5- 1 - 44

5-1 - 44
11-24- 41
7-17- 43

7-17- 43

7- 17-43


Rhode Island
Joseph V. Broderick
Collector of
Internal Revenue---------Roderick Pirnie -- Appointed State
Chairman-----------------Louis B. Carr -- Halsey, Stuart and
Company------------------South Carolina
State Chairmen
James H. Hammond
Att orney, Columbia--Christie Benet -- Attorney, Former U. S.
Senator------------------Admini strator
W. P. Bowers -- Collector of Internal
Revenue------------------Henry S . Johnson -- Director of Information, Farm Credit

Appointed Res i gned


2-23- 42



4-14- 41

8- 8-43


8- 8-43


South Dakota
State Chairman
Walter H. Burke
Cashier, Pierre Nat 'l.
Bank------ ---------------Vice Chairmen
George A. Starring -- Vice President,
Greater South Dakota
Association - Huron------A. W. Powell -- President, Roberts County
National Bank - Sisseton-Administrator
Charles A. Christopherson -- President ,
Union Savings Bank Sioux Falls-- - - ----------Tennessee
State Chairmen
Secretary, Tenn.
H. Gr ady Huddleston
Bankers Association------G. Cecil Woods -- President, Volunteer
State Life Insurance Co.
- Chattanooga-------------

- 128 -






8- 3-42

8- 6-43


Appointed Resigned

Vice Chairmen
Doddr idge Nichols -- Vice President, Union
Pl anters National Bank Memphis ------------------Ral ph A. Davidson -- President, Davidson &
Co. , Investment Bankers Knoxville----------------Administrator
Lipe Henslee -- Coll ector of Internal
Revenue - Nashvi lle------Jo Gibson, Jr . -- Deputy Administrator -

H. Grady Huddleston -- Formerly State

8- 6-43





State Chairmen
Tom Miller -- Mayor of Austin
Nathan Adams -- President, First Nat'l.
Bank - Dallas
Vice Chairmen
R. L. Thornton -- President, Mercantile
National Bank------------Fred M. Mayer -- President, Continental
Supply Company- ------- ---Administrator
Frank Scofield -- Collector of Internal
Revenue ------------------Judson S. James Jr. -- President, James,
Stayart & Davis,
Investments--------- -----Utah
State Chairman
President, First
Charl es L. Smith
National Bank of Salt Lake
City--- ------------------Vice Chairmen
George S . Eccles -- President, First
Security Bank, 0gden-----Clarence Bamberger -- Financier and
Philanthropist----------- James E. Hogle -- Partner, J. A. Hogle &
Company Brokers-----------

- 129 -

5- 3-41

7- 26-43

7- 26-43
7- 26-43
7- 26-43

10-11- 41

7-26- 43

Charles R. Mabey -- Banker and former
Governor of Utah---------David Howe Moffat -- Attorney - Deputy
11-10- 41


Res i gned

9- 17- 41

8-10- 43

8-10- 43

State Chairman
Levi P. Smith

President , Burlington
Savings Bank

Vice Chairmen
D. Arnold Skelly -- Partner, A. M. Kidder
& Co. Investments--------L. Douglas Meredith -- Vi ce President,
National Life Insurance
Company - Montpelier-----Administrator
Fred C. Martin -- Collector of Inter nal
Revenue ------------------D. Arnold Skelly - - Former Vice Chairman

7-12- 41
8- 6- 43
6- 2- 41

State Chairman
Francis Pendleton Gaines
Washington & Lee University
8-13- 41
Vice Chairman
C. Francis Cocke -- Presi dent, First
National Exchange Bank 8- 7- 43
Roanoke------- --------- --Administrator
Robert F. Nelson -- Chamber of Commerce-10- 1 - 41
J . Joseph May -- Vice President, Morris
Plan Bank----------------8- 7- 43
James S. Easley -- Virginia Public Service
12-16- 43
Company------------------C. H. Edwards -- Former Deputy 9-18- 41
5-16- 45
State Chairmen
Joel E. Ferris -- Executive Vice President,
Seattle First National Bank
7- 29- 41
- Spokane----------------Reno 0dlin -- President, Puget Sound
National Bank - Tacoma- - -7-17-43

- 130 -

4-11- 45

4-10- 45

7-17- 43

Appointed Resigned
Vice Chairmen
Mansell P. Griffiths
Vice President,
Blythe & Company---------7-17- 43
Dietrich Schlnitz -- Presi dent, Washington
~h.ltual Savings Bank- Seattle
Saul Haas -- Formerly Ad.ministrator-----7-17- 43
Saul Haas -- Collector of Customs-------4- 23-41 7-17-43
Karl Richards -- Formerly Deputy 11-16-41
William C. H. Lewis -- Formerly Deputy



West Virginia
State Chairmen
Albert Snedeker
Wheeling Steel Company
8-11-41 7- 24-43
A. C. Spurr -- President, Monongahela Hest
Penn Public Service Co . Fairmont-----------------7-24-43
Vice Chairman
Lee C. Paull, Sr . -- Insurance----------Admi nistrator
F . Roy Yoke -- Collector of Internal
6- 2-41 7-24-43
Revenue------------------Robert Cl utter -- Deputy 2-3-43
8-11-43 12-31-43
12-26-43 7-31-45
W. C. Handlan -- Deputy 8-16-43
Barnard S . Payne -- Deputy 5-11-42
State Chairmen
Editor, Sheboygan
Charles E. Broughton
8- 20- 41
Walter Kasten -- President, First Wisconsin
National Bank - Milwaukee7-17-43
Vice Chairman
William H. Brand -7-17-43
Frank J . Kuhl -- Collector of Internal
Revenue- -----------------Harold F . Dickens -- E. R. Rollins & Sons,
Investment Bankers------ - -

- 131 -



State Chairmen
Don H. Wageman -- Vice President , American
National Bank - Cheyenne-Fr ed W. Marble -- Vice President, Stock
Growers National Bank Cheyenne-----------------Vice Chairman
A.G. Crane -- President, University of
Wyoming, Laramie---------Administr ator
A. E. Wilde -- State Bank Examiner -------

Note ·

Appoi nted Resigned




The title of Administrator was cha nged to Executive
Manager in 1943 when the War Savings organization was
changed to War Finance .

- 132 -

I want to acknmlledge, with appreciation , the several
articles used in this history by Sylvia Porter, financial writer
of the New York Post . She wrote many articles which qssisted
the Defense and War Bond programs .
Permission is acknowledged from historian, John Blum,
pr ofessor at Yale University , and from Houghton ~lifflin Company
of Boston, to reprint certain excerpts from the three volumes of
John Blum based on the Morgenthau Di aries . These related to
Mor genthau ' s comments on the bond program.
I wish to express my deep appreciation for the assistance
of Mary Fleming Wilson, my former secretary, and of Harold Master,
my assistant during the War Bond program. They helped to secure
and locate many items of information . In addition, Bernard
Krixten secured permission for my examination of the old Defense
and War Bond materials .
Chester Clausen, Manager, Distribution Center, Savings
Bonds Division at Chicago assisted in the examination of files
of the bond program.
Gene Sloan, former Director of the Savings Bonds Division
during 1935-41 assisted in the inf ormation on the "baby bond"


- 133 -

Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102