Volume 406, June 7 – June 10, 1941

DIARY Book 406 June 7-10, - 1941 THEM - A - Book Page Allison Engineering Company See War Conditions: Airplanes (Engines) Alsop and Kintner Alsop going into Havy and Kintner going into Army - 6/9/41 406 120 Amherst College See Speeches by HMJr Appointments and Resignations Collector of Internal Revenue, Iowa: Change as desired by Ed Flynn discussed in Rowe memorandum - 6/10/41 354,355 Garrison, Lloyd X: To be considered for Under Secretaryship of Treasury; HMJr asks Miss Tully to check with FDR - 6/10/41 373 a) HMJr and Frankfurter discuss after Frankfurter's talk with FDR - 7/8/41: See Book 419, page 2 b) FDR asks HMJr to get Garrison's last speech and send it to him: Book 419, page 159 Landis, James M. (Dean, Harvard Law School): To be considered for Under Secretaryship of Treasury; HMJr asks Miss Tully to check with FDR - 6/10/41 373 a) Declines Under Secretaryship of Treasury - 6/19/41: Book 410, pages 168 and 181 b) Changes to acceptance on certain conditions - 6/21/41: Book 411, pages 248 and 249 c) FDR will sign letter to Conant; Landis to straighten out situation with LaGuardia: Book 412, page 166 1) Letter as prepared in Treasury: Book 412, page 169 2) Conant answer - 6/30/41: Book 418. page 40 d) Lubin and HMJr discuss Father White's intercession with Senator Walsh - 6/24/41: Book 413, page 77 e) LaGuardia will release as head of Office of Civilian Defense, Second Corps Area - 6/26/41: Book 416, page 206-A f) HMJr tells Landis he cannot sway Senator Walsh - 7/2/41: Book 417, page 143 1) Reports to FDR: Book 419, page 48 g) Landis' letter to HMJr after HMJr-Walsh talk - 7/3/41: Book 418, page 41 h) Crowley intercedes - 7/11/41: Book 420, page 71 Argentina See Latin America Australia See War Conditions - B - Book Page Belgium See War Conditions: Foreign Funds Control Brown, J. Douglas See Defense, National (Dismissal compensation plan) Business Conditions Haas memorandum on situation for week ending June 7. 1941 406 245 - C - Canada See War Conditions China See War Conditions: China; Lend-Lease Coast Guard Purchase of training ship DANMARK discussed at 9:30 meeting - 6/9/41 121 a) Knox-HMJr conversation - 6/20/41: See Book 411, page 4 1) FDR's memorandum and letters from and to Bland (Committee on Merchant Marine and Fisheries, House of Representatives): Book 411, pages 31 and 34 Collector of Internal Revenue, Iowa See Appointments and Resignations Compensation, Dismissal See Defense, National - D - Debts, Foreign Treasury advises State there should be no change in routine procedure at this time - 6/9/41 210 Defense, National Labor Resources: Effective utilization in all-out program - 6/9/41 209 a) HMJr's memorandum on problem after breakfasting with Mrs. FDR - 6/10/41 277 b) White memorandum: "A Program to Utilize Effectively Available Labor Supply" - 6/10/41 368 c) "A program for total defense production and training" - 6/11/41: Book 407, page 54 d) Copies of letter to FDR, recommendations, draft of bill, and chart sent to Mrs. FDR, Currie, Judge Rosenman, Hopkins, and Lubin - 6/13/41: Book 408, page 34 e) Chronology of HMJr's proposals prepared by White - 6/17/41: Book 409, page 210 f) Dismissal compensation plan proposed by J. Douglas Brown - 6/17/41: Book 409, page 216 See also Speeches by HMJr (Amherst Alumni Luncheon Address) Regraded Uclassified - D - (Continued) Book Page Defense Savings Bonds See Financing, Government Dismissal Compensation See Defense, National Douglas, Lewis W. See Speeches by HMJr (Amherst address) - F - Financing, Government Reconstruction Finance Corporation requirements for next three months discussed by Jones and HMJr - 6/10/41 406 323 Defense Savings Bonds: "Defense Savings: À United Front Appears" - Dallas report - 6/7/41 80 Field Organization Nave Letter, No. 3, giving resume' of first month - 6/7/41 84 Daily sales, June 1-June 6 96 Dietz and HMJr discuss civil liberties playlets - 6/9/41 184 Congressmen to be kept informed: HMJr asks Graves to work out ways - 6/10/41 348 Texaco program - HMJr's suggestions - 6/10/41 349,351,353 Ohio, particularly northwest, thought by Wickard to he pro-German; asks HMJr about bond sales there - 6/10/41 356 a) HMJr's reply to Wickard - 6/24/41: See Book 413, page 138 Foreign Debts See Debts, Foreign Forrestal, James V. (Under Secretary of Navy) HMJr thanks him for privilege of reading diary of his English trip - 6/9/41 238 France See War Conditions - G - Garrison, Lloyd K. See Appointments and Resignations for consideration as Under Secretary of Treasury Germany See War Conditions Greece See War Conditions - H - Hungary See War Conditions - I - Book Page Infantile Paralysis Foundation See O'Connor, Basil Internal Revenue, Collector of - Iowa See Appointments and Resignations Iowa Collector of Internal Revenue: See Appointments and Resignations - J - Jackson, Gardner Asks for conference with HMJr concerning job - 6/9/41 406 243 - L - Labor See Defense, National Landis, James M. (Dean, Harvard Law School) See Appointments and Resignations Latin America Argentina: HMJr asked for information as to whether stabilization loan to Argentina is off before he testifies on Hill - 6/10/41 366 a) Foley answer 367 - N - Netherlands See War Conditions: Foreign Funds Control; Lend-Lease - 0 - 0' O'Connor, Basil Infantile Paralysis Foundation: HMJr asks if O'Connor wishes to recommend anyone as his receptionist - 6/9/41 147 011 See War Conditions - P - Puget Sound Power and Light Company See Reconstruction Finance Corporation - R - Book Page Reconstruction Finance Corporation See also Financing, Government Jones' letter to Ickes concerning authority to make loan to dummy corporation for purchase of electric system of Puget Sound Power and Light Company - - 6/10/41 406 325 Revenue Revision Comparison of volume of business, net profits, and Federal taxes of certain groups of corporations (engaged in shipbuilding, construction of airplane engines, etc., as well as industries not engaged in filling defense contracts): Blough memorandum and table - 6/9/41 118 a) Discussion at 9:30 meeting - 6/9/41 123 (See also Book 409, page 14 - 6/16/41) Tax certificates to be used in paying next year's income tax discussed at group meeting - 6/10/41. 299 a) HMJr, Eccles, White, Haas, Ransom, McKee, Piser, Bell, and Kuhn discuse - 6/27/41: See Book 415, page 36 b) HMJr, Hass, Bell, and Stewart discuss - 7/2/41: Book 417. page 109 c) HMJr, Stewart, Bell, Hase, Currie, White, Kuhn, Ransom, McKee, Eccles, Goldenweiser, and Piser discuss - 7/2/41: Book 417, page 151 d) Press release on plan - 7/3/41: Book 418, page 133 1) Kuhn's notes for press conference: Book 418, page 137 e) Keynes is interested - 7/8/41: Book 419, page 39 f) Conference: present: HMJr, Bell, Broughton, Kilby, Jones, Callahan, Sloan, Buckley, and Edwards - 7/11/41: Book 420, page 86 g) Press comment - Merillat resume' - 7/11/41: Book 420, page 107 h) FDR informed of issuance August 1 and asked to participate in radio program - 7/18/41: Book 422, page 212 - S - Salter, Sir Arthur See War Conditions: Shipping Shipping See War Conditions Regraded Uclassified - S - (Continued) Book Page Speeches by HMJr Amherst Alumni Luncheon Address: HMJr, Odegard, and Kuhn confer on speech; Mrs. FDR enthusiastic about it - 6/10/41 406 279 a) Henry III's doubts as discussed with Mrs. FDR and later answered by HMJr basis for speech. 281 b) Admiral King asked to check on conversations he and HMJr had on shipboard - - 6/10/41 318 1) King's comments - 6/14/41: See Book 408, page 152 e) Lewis Douglas--HMr conversation - 6/11/41: Book 407, page 44 d) McCloy-HMJr conversation - 6/11/41: Book 407, page 48 e) Copy as interlined by HM,III - 6/14/41: Book 408, page 167 f) HMJr's reading copy - 6/14/41: Book 408, page 212 g) Henry III sends editorial from Cleveland "Plain Dealer" - 6/20/41: Book 411, page 160 h) Halifax's appreciation of speech - 6/23/41: Book 412, page 318 1) Hochschild's congratulations acknowledged - 6/23/41: Book 412, page 319 Stabilization Fund Devaluation extension discussed in Cochran memorandum - 6/7/41 17 HMJr asked for information as to whether stabilization loan to Argentina is off before he testifies on Hill - 6/10/41 366 a) Foley answer 367 - T - Tankers See War Conditions: Shipping - U - Unemployment Relief Work Projects Administration report for week ending May 28, 1941 258 United Kingdom See War Conditions: Military Planning; 011 Regraded Uclassified Book Page War Conditions Airplanes: Engines: Allison Ingineering Company shipments - 6/9/41 406 206,207 Shipments to United Kingdom and overseas commands - British Air Commission report - 6/10/41 384 Australia: Regulations governing persons owning United States or Canadian dollar currency - 6/7/41 67 Canada: Report on general conditions - State Department report - 6/7/41 56 China: See also War Conditions: Lend-Lease Fox reports upon arrival in Hong Kong - 6/9/41 233 Exchange market resume' - 5/7/41, etc. 97,244,385 Export Control: Export of petroleum products, scrap iron, and scrap steel from United States to Japan, U.S.S.R., Spain, and Great Britain, week ending June 7, 1941 208 Foreign Funds Control: Foreign accounts in Federal Reserve Banks and insured banks: Phillips-Cochran correspondence concerning competing claims between central banks now in occupied territory and the governments themselves, as, for example, Belgian and Dutch - 6/7/41 1 Hungary: Difficulties of situation discussed by Hungarian Minister and Cochran - 6/7/41 16 France: Setting up of three German Commissioners for foreign trade, Bank of France, and foreign exchange discussed in memorandum from American Embassy, Vichy - 6/7/41 63 Germany: France - Vichy: Setting up of three German Commissioners for foreign trade, Bank of France, and foreign exchange discussed in memorandus from American Embassy, Vichy - 6/7/41 63 Greece: German-occuping authorities to pay 20% premium on all purchases in Greece for German armed forces - 6/7/41 68 Greece: German-occupying authorities to pay 20$ premium on all purchases in Greece for German armed forces - 6/7/41 68 Regraded Uclassified - W - (Continued) Book Page War Conditions (Continued) Lend-Lease: First report - 6/10/41 406 358 China: Currie told of HMJr's approval of plan to take over portion of British contracts for China - 6/10/41 359 Netherlands: Cox memorandum to Hopkins raising certain questions in connection with proposed agreement - 6/9/41 175 Military Planning: Reports from London transmitted by Halifax - 6/7/41, atc 98,101,109,262, 264,387,389 War Department bulletin: German invasion of Greece - notes on - 6/9/41 266 011: British requirements - 6/7/41 8 Purchasing Mission: British Financial Position: Gold and dollar assets as of April 1, May 1, and June 1 8 Vesting order sales - 6/9/41 199,200 Federal Reserve Bank of New York transmite statement showing dollar disbursements, week ending May 28, 1941 201 Shipping: United States tank vessels in United States ports. - 6/7/41 69 (See also Book 407, page 260 - 6/12/41) Salter's report giving comparative statement, May and June, of deficiency of ships for priority program of North America - 6/10/41. 374 Tugoslavia: National Bank governor and vice-governor removed 6/9/41 231 Work Projects Administration See Unemployment Relief - Y - Tugoslavia See War Conditions TREASURY DEPARTMENT INTER-OFFICE COMMUNICATION Regraded DATE June 7. 1941 TO Secretary Morganthau FROM Mr. Cochran STRICTLY CONFIDENTIAL There is attached a copy of a letter which I received from Sir Frederick Phillips some days age, and which I have told you that 1 should like to discuss with you be- fore enswering or filing. When Phillips handed this to no, I told him that By immediate and unofficial allswer would be "yes". I told him, however, that I would like to discuss his note with some of By colleagues. Upon showing Phillips' letter to Mr. Foley, the latter suggested that I talk it over with Mr. Bernstein. It was Mr. Bernstein's opinion that recent legislation relating to foreign accounts in Federal Reserve Banks and insured banks Vas conceived for just such a purpose as that which Phillips may have in mind, namely, that of getting into the hands of the Dutch Minister in the United States funds of the Netherlands Bank which might be used to assist the British. Mr. Bernstein's suggestion vas that he and I talk with Sir Frederick Phillips and give him an idea as to the possibilities of action under this nov legislation. When I mentioned this idea to Under Secretary Bell the latter thought this quite a risky procedure, and did not favor it. Re suggested that I draw up a fairly noncommittal reply to Phillips' letter. This I have done, as will be noted from the attached draft. My own thought is that I should give Phillips no written reply in the premises. When the matter came up in our conversation yesterday, I told Phillips that I could easily write him an evasive letter, but that vs were not accustomed to dealing with him in such fashion. I told him that he had access to and knowledge of our own banking legislation. I added that if the inquiry had come from any source other than himself, asking us for forecasts in regard to difficulties concerning possible transac- tions in foreign accounts, ve would decline to give any information. In his case, however, I certainly did not desire to block him from receiving any assistance or advice from us which some one in higher position than myself might see fit to give. I told him that I might find occasion to bring this matter to the Secretary's attention, but gave no promise. In this connection, KY personal opinion is that both the State and Treasury Departments have been inclined to use too generously the authority conferred upon them by the Federal Reserve Bank Act under reference, B. copy whereof is attached. It is By feeling that a certification from the Secretary of State could properly be required when there is 8 real question of authority, but that this procedure should not be used to facilitate an official in this country acquiring authority which it is doubtful that be previously enjoyed. That is, for example, this procedure has been utilized to permit Yuguslav and other Ministers in the United States whose countries have been invaded to draw on the Central Bank balances of their respective countries held in the United States, although they had no such authority prior to the invasion of their countries, and we have no evidence other than the Ministers' statements to the State Department that they should enjoy this authority now. I think it would be particularly 2 - 2 - undesirable for us to collaborate with the British toward the Dutch Minister, for example, gaining access to the funds in this country of the Netherlands Bank, which is not owned by the Netherlands Government, and all of whose officers have remained in the Netherlands. However sympathetic ve may be to the British cause, the finan- cial and monetary authorities of the United States definitely have a responsibility for the safekeeping of Central Bank funds entrusted to banks in this country by them. I am strongly of the opinion that it is not for us to determine that such funds should be utilised by the Exiled Governments or ex-Ministers of invaded countries for pur- poses other than those which the Central Banks of those countries may determine. There will undoubtedly be a great need for such funds for the rehabilitation of the invaded countries once peace is established. 3 T THE BRIVICE SUPPLY COUNCIL IN was AMERICA Bes 600 Honjanin Fresklin Station Vashington, D. e. May 21, 1941 Dear Cookram, I as asked to confirm the view which coons to prevail in London that oven if the assets belong- ing to the Belgion and Datch National Banks here vere unfresen there would be competing claims between the Director of the Belgion National Bank is London ml the Datch Government on the - hand, mi the Belgion and Dateh National Benke altuated is compled territory on the other hand, 00 that 10 would be a matter of great difficulty for the Belgian at Datch devernments to obtain these funds. Vould you agree with this view? Yours sincerely, (Signed) 7. Phillips Mr. E. Marlo Cochran, U. 8. Treasury, Vachington, D. c. COPY - 5/23/41 - is Regraded Uclassified 4 OFFICE OF TREASURY DEPARTMENT WASHINGTON THE SECRETARY May 29, 1941 Dear Phillips: In answer to your letter dated May 21, 1941, I have pleasure in attaching for your guidance a copy of the legislation recently enacted which relates to foreign ac- counte in Federal Reserve Banks and insured banks. From this legislation you will note the arrange- ment which is provided for certification by the Secretary of State as to those officials who may have authority to dispose of the property held in the name of foreign States or Central Banks with our own Federal Reserve and insured banks, You are aware, of course, that the United States Government continues to maintain diplomatic representatives accredited to the Governments of Belgium and the Netherlands, with present headquarters in London. On the other hand, it is my understanding that the Federal Reserve Bank at New York has no direct contact with the Netherlands Bank at Amsterdam or with the National Bank of Belgium at Brussels, in the name of which institutions the Federal Reserve Bank of New York continues to carry certain accounts. Faithfully yours. R. Merle Cochran Technical Assistant to the Secretary Enclosure. Sir Frederick Phillips. The British Supply Council in North America, Washington, D. C. Regraded Uclassified 5 [PUBLIC LAW 31-77TH CONGRESS] [CHAPTER 43-1st SESSION] [8. 390] AN ACT Relating to foreign accounts in Federal Reserve banks and insured banks. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subsection (e) of section 14 of the Federal Reserve Act, as amended, is amended by inserting before the period at the end of the first sentence thereof the following: ", or for foreign banks or bankers, or for foreign states as defined in section 25 (b) of this Act". SEC. 2. Section 20 (b) of the Federal Reserve Act, ns amended, is amended by adding at the end thereof the following new paragraphs: "Whenever (1) any Federal Reserve bank has received any prop- erty from or for the account of a foreign state which is recognized by the Government of the United States, or from or for the account of a central bank of any such foreign state, and holds such property in the name of such foreign state or such central bank; (2) a repre- sentative of such foreign state who is recognized by the Secretary of State as being the accredited representative of such foreign state to the Government of the United States has certified to the Secretary of State the name of a person as having authority to receive, control, or dispose of such property; and (8) the authority of such person to act with respect to such property is accepted and recognized by the Secretary of State, and so certified by the Secretary of State to the Federal Reserve bank, the payment, transfer, delivery, or other disposal of such property by such Federal Reserve bank to or upon the order of such person shall be conclusively presumed to be lawful and shall constitute a complete discharge and release of any liability of the Federal Reserve bank for or with respect to such property. "Whenever (1) any insured bank has received any property from or for the account of a foreign state which is recognized by the Government of the United States, or from or for the account of a central bank of any such foreign state, and holds such property in the name of such foreign state or such central bank; (2) a repre- sentative of such foreign state who is recognized by the Secretary of State as being the accredited representative of such foreign state to the Government of the United States has certified to the Secre- tary of State the name of a person as having authority to receive, control, or dispose of such property; and (8) the authority of such person to act with respect to such property is accepted and recog- nized by the Secretary of State, and so certified by the Secretary of State to such insured bank, the payment, transfer, delivery, or other disposal of such property by such bank to or upon the order of such person shall be conclusively presumed to be lawful and shall consti- tute a complete discharge and release of any liability of such bank for or with respect to such property. Any suit or other legal pro- 2 (Pus. LAW II.) ceeding against any insured bank or any officer, director, or employee thereof, arising out of the receipt, possession, or disposition of any such property shall be deemed to arise under the laws of the United States and the district courts of the United States shall have exclusive jurisdiction thereof, regardless of the amount involved; and any such bank or any officer, director, or. employee thereof which is 8 defendant in any such suit may, at any time before trial thereof, remove such suit from a State court into the district court of the United States for the proper district by following the procedure for the removal of causes otherwise provided by law. "Nothing in this section shall be deemed to repeal or to modify in any manner any of the provisions of the Gold Reserve Act of 1934 (ch, 6, 48 Stat. 337), as amended, the Silver Purchase Act of 1934 (ch. 674, 48 Stat. 1178). as amended, or subdivision (b) of section 5 of the Act of October 6, 1917 (40 Stat. 411), as amended, or any actions, regulations, rules, orders, or proclamations taken, promulgated, made, or issued pursuant to any of such statutes. In any case in which a license to act with respect to any property referred to in this section is required under any of said statutes, regulations, rules, orders, or proclamations, notification to the Secre- tary of State by the proper Government officer or agency of the issuance of an appropriate license or that appropriate licenses will be issued on application shall be a prerequisite to any action by the Secretary of State pursuant to this section, and the action of the Secretary of State shall relate only to such property as is included in such notification. Each such notification shall include the terms and conditions of such license or licenses and a description of the property to which they relate, "For the purposes of this section, (1) the term 'property' includes gold, silver, currency, credits, deposits, securities, choses in action, and any other form of property, the proceeds thereof, and any right, title, or interest therein; (2) the term "foreign state' includes any foreign government or any department, district, province, county, possession, or other similar governmental organization or subdivi- sion of a foreign government, and any agency or instrumentality of any such foreign government or of any such organization or subdi- vision; (3) the term 'central bank' includes any foreign bank or banker authorized to perform any one or more of the functions of a central bank; (4) the term "person" includes any individual, or any corporation, partnership, association, or other similar organization; and (5) the term insured bank' shall have the meaning given to it in section 12B of this Act." Approved, April 7, 1941. Regraded Uclassified 6 TREASURY DEPARTMENT INTER-OFFICE COMMUNICATION DATE June 7. 1941 TO Secretary Morgenthau FROM Mr. Cochran STRICTLY CONFIDENTIAL Sir Prederick Phillips telephoned me at 12:45 yesterday. Ee said that Sir Edward Peacock had received word from Mr. Jesse Jones that the latter saw no reason for opposing the loan proposition involving the British thread companies. Conse- quently, Sir Frederick asked if it would not be all right to go ahead with this transaction. I told Phillips that I was seeing Mr. Bell at luncheon and desired to discuss this matter with him, since it was the Under Secretary who had been in touch with Mr. Jones for the Treasury. As soon as I had talked with Phillips, I telephoned Mr. Bell to report the conversation. When we met at luncheon, Mr. Bell said that he had talked with Mr. Jones and that the latter stated that he had given no such clearance. On the contrary, he was of the opinion that a loan considerably above the sum mentioned by Peacock would be warranted. When we came up from luncheon, there was a copy of a letter from Mr. Jones to the Secretary, which is attached hereto. Shortly after- warde we received a photostatic copy of this letter from the Secretary's office, since it had been handed to Mr. Morgenthau when he vas at the Cabinet Meeting. In agreement with Mr. Bell, I telephoned Phillips yesterday afternoon and told him that Mr. Jones had informed us that he had not given a clearance to the transac- tion in question. Phillips agreed with me that the transaction should be definitely held up until we are in touch with Sir Edward Peacock next week. It will be recalled that Peacock hopes to see the Secretary, perhaps on Tuesday. When the Secretary called me from the farm at 10:15 this morning, he said that Mr. Bell had informed him of the confusion which had arisen in connection with this transaction. The Secretary agreed with my suggestion that no draft letter acknowl- edging Peacock's communication on this proposition should be prepared before Peacock's visit to us next week. 25ml Regraded Uclassified C o June 6 Handed at Cabinet P Y FEDERAL LOAN AGENCY WASHINGTON Jesse H. Jones eral Loan Administrator June 6, 1941 Dear Henry: With regard to the proposed loan by the banks and insurance companies to the British-owned American thread companies, it appears from the information which we have been able to obtain on short notice that the HFC could safely afford to lend as much as $30,000.000 in the expectation that earnings from the properties would fully amortize the loan within a reasonable time. This would provide the British with $14,000,000 more than the banks and insurance companies propose to lend. We will be glad to give prompt consid- eration to such a loan upon receipt of more defi- nite information. Sincerely yours. (s) Jesse Administrator Honorable Henry Morgenthau, Jr. Secretary of the Treasury Washington, D. C. Copy:bj:6-7-41 Regraded Uclassified C 8 o P Y FRITISH EMBASSY, WASHINGTON, D.C. June 7, 1941 Dear Dr. White, I enclose a statement of British gold and dollar assets as at April 1st, May 1st and June 1st, I hope this is in the form you require. I have obtained from Mr. Piercy, the British representative handling petroleum here, the following rough figures of British oil requirements (annual rates in $ millions): Rest of Requirements of oil U.K. Sterling Area Total from U.S.A. 35 10 45 from dollar sources outside U.S.A. 60 30 90 Total 95 40 135 Yours sincerely, /s/ R.G.D. Allen Dr. Harry White U.S. Treasury Washington, D.C. Regraded Uclassified 9 C o P I BRITISH GOLD & DOLLAR ASSETS April 1st, 1941 May 1st, 1941 June 1st, 1941 old 225 117 148-1/2 fficial dollar balance - 69 159 115-1/2 Total gold & dollars 294 276 264 ⑉ gold not available: Belgian gold borrowed 105 105 105 Scattered gold 18 9 11 Reserve against immediate liabilities 10 133 10 124 10 126 vailable gold & dollars 161 152 138 arketable securities ** 526 507 473 rect & miscellaneous investments *** ... ... . Private dollar balances are excluded since they represent minimum working balances. .. April 1st figure 1s estimated market value of securities unsold at that date. Subsequent figures are obtained by deducting actual sales and make no allowance for depreciation (or appreciation) of value. *** Amounts realised on direct investments: April $ 36 millions, May $ 25 millions. Estimates of value of unsold investments would now be devoid of meaning. ashington, D. C. une 7th, 1941 inc Recvd fun Han Bell 10 June 7,1941 (Ancussed with MEMORANDUM FOR THE PRESIDENT: serly 619) The State and Treasury Departments have drafted and discussed various provisions for in- clusion in a Lease-Lend Agreement with the British. This memorandum lists first those matters on which both Departments believe the decisions are clear and, second, those matters on which the decision is less clear. In the latter situation, the considerations favoring alternative procedures are outlined. It is suggested that the question of form of the Agreement be passed without decision at this time and, once you decide the less clear points, an agreement can be drafted in a very short time. Clear Points 1. The Agreement should not include provisions relating to economic and other problems of the emergency, of post-war relief and of recon- struction. Provision shall be made in this Agreement for the designation of & British-American commission which will sit continuously for the purpose of Regraded Uclassified 11 - 2 - formulating solutions not only of those international economic problems which confront both governments, but also of those larger problems involved in a post- war relief and reconstruction. Such commission will seek to work out problems with existing inter-American bodies. 2. The Agreement should include the following: (a) An undertaking by the British to supply similar aid to us should our de- fense at any time require it. (b) An undertaking by the British to examine sympathetically our needs for additional bases, with a view to giving full support and assistance to the strengthening of our defense. (e) An undertaking by the British to return to the United States, upon request of the President, all material transferred which is in existence at the end of the var, whereupon the charge therefor shall be written off. Regraded Uclassified 12 e 3 - (d) Against their obligation to the United States for non-ailitary materials, feed, and similar items, the British shall receive credits for property, Services, information, 'facilities, or other con- siderations or benefits accepted or acknowledged by the President, the value of which considerations and benefits shall have been determined by the President. The terms and conditions of liquidating the balance of the British obligations for such non-military materials shall be determined by the President, perhaps after receiving recommendations of a joint United States and United Kingdom commission. Unresolved Points 1. The principal material that will be lease-loaned to the British will be military material which will be destroyed or used up in the var. The question arises what, if any, compensation shall be received by the United States for such military material. Regraded Uclassified 13 - If Alternative ways of handling this matter are: (a) Write off the value of such materials upon their being consumed or destroyed. (b) Britain to furnish the United States war materials or articles not produced in the United States for such of the war materials transferred to Britain and con- sumed or destroyed which are not, in the opinion of the President, offset by one or another form of consideration or benefit received or accepted by the United States. (c) Keep, as at present, what is essentially an open account, leaving for determination says a later at [some more propitious/time the question of what, if any, compensation shall be paid therefor by the British. Considerations Affecting the Selection of One of These Alternatives (1) It will unquestionably have a good effect on British morale to know that the Regraded Uclassified 14 - 5 - cost of that part of the hose which is destroyed in putting out the fire is not a mortgage on Britain's future. As against this must be weighed the reaction, particularly at the present time, of the Congress and the American public to our receiving no consideration or payment for the bulk of the materials lease-loaned to Britain other than the use of such materials, when Britain has islands and in- Drpt. woul. there seen vestments in the Western Hemisphere., (11) To wipe off the obligation will keep the total British obligations within more manageable proportions and will thereby And reduce the post-war settlement and adjust- sent problems. The alternative is to make clear to the British that they will not be expected to repay dollar for dollar for such war materials. Because of the inability now Regraded Uclassified 15 - 6 . to foresee an appropriate basis of settle- ment, flexible powers are given to the President BO that he say determine what, depending on future circumstances, say fairly be required of the British in com- pensation for such materials. (111) If, because of the foregoing, this is not a propitious time to crystallize the nature of the obligation of Britain for used-up war materials, then the matter can continue to be dealt with as at present, 1.e., through the continued maintenance of the open account for such materials. 2. Shall the value of the consideration and benefits received by the United States from Great Britain be determined by: (a) The President. (b) The President acting with the advice and recommendations of a joint British-American Commission. (c) A joint British-American Commission. 6/5/41 Regraded Uclassified 16 Regraded Uclassified Im 7. 1941 Files Mr. Cochran AS be e'cleak yesterday afterness I received the Imagerian Minketer, at his request. Ive dags proviously the Secretary bud called - to Me office whom be use receiving the Mater for the first time. On that conselen the Minister had recounted to the Secretary his difficulties with the Regardes Persign Office " a result of his inability to obtain from our Foreign Punds Centrol the treatment of Sungarian efficial funds which the Foreign Office thought proper. I explained to the Secretary that there had been a little confusion is the premises and that 11 was difficult for both Mr. Fell, - Maister to Dedupost. and Mr. de this to have this rether compliented situation facing then while they are both ser at their respective posts. The Fungarion Minister vas of the impression that Mr. Fell's conversations with the Sungarian Foreign Office left the feeling that there would be little treuble in obtaining the arrangement is Washington which the Bungarian devernment desired. Consequently, the Bangarian Foreign Office had coolded their Minister here severely for his recommentations favoring compliance with the require- sente of our Centrol. the Secretary ested as no ⑉ what help I could give is the promicos. I told his that 90 had enferred with m. Borie a few days proviously and that I thought the affair use nov following a proper course. The Maister case out to of office fellowing his interview with the Secretary. statted with as for a while, since I had known bis rather well several years when be was Emgeries Grasul General is New Term. Upon his visit yosterday. the Minister stated that following the receipt of Me last message from Delapost. be had called on Mr. Berlo at the State Department. and that the latter had recomented that me - 00 to the Treasury to ... what W reald de to assenge the matter under reference. Consequently, Mr. do this had ⑉ to m. I told Me that state Me sall carlier is the week W bed received a further message from - Maister at Delapost. I recomental that he call on Mr. Peble on Menday to discuss the question show. AS 9:30 this norning I telephoned Mr. Tousen, in Mr. Pehlo's absence, so report the above conversations. I asked Mr. to Inform Mr. Peble thereof before the latter reselves the Fungarian Ninister. I addre w recommendation that we meet the Bangarian and liquidate this troublesses smootion. Just 10:1ap-6/9/41 17 TREASURY DEPARTMENT INTER-OFFICE COMMUNICATION Personal DATE June 7. 1941 TO Secretary Morgenthau FROM Mr. Cochran STRICTLY CONFIDENTIAL Since you will be called upon to testify before the Senate Committee shortly on the extension of the Stabilization Fund and the authority to devalus further the dol- lar, may I sake the following purely personal recommendation. In my memorandum of January 24, 1941, I recommended harmony with the Federal Reserve System and banking institutions in the face of our prospective borrowing pro- gram. In your broadcast on Thursday evening you expressed your genuine appreciation of the support which the American banks have 80 far given to your Defense Bond program. Obviously you will continue to require this support, and even more, for a long time to come. Considering that we are calling upon the public for such complete confidence in Government securities, should we not give then every possible assurance as to the tability of the currency in which these bonds are denominated? No one needs to con- vince me that the Secretary of the Treasury would be one of the last in this country to favor any further devaluation of our dollar. I think it unfortunate, however, that the Secretary is obliged in present circumstances to support a continuation of the evaluation authority if the granting of this authority arouses the alightest fear Among our people that eventual utilization of this power is probable. I should have preferred that the letter from the President to Congress submitting his 1941 extension legislation had not contained a request for a renewal of the evaluation authority. I did not see this correspondence until after it had been [uoted in the press. Now that this program has been followed BO far, however, there La nothing that could be done except to yield gracefully in the Senate if strong opposi- tion develops there against the devaluation authority. As I said, my preference would have been for the Secretary of the Treasury to give further evidence of his own con- servative ideas on monetary matters by voluntarily surgesting that this authority be permitted to lapse. Before the Senate Committee I think that he should take advantage of any situation to come out for this policy. That 1s, he should state that if the representatives of the American people to whom the Treasury is confidently looking for full support of our defense program have the least concern with respect to the future of our dollar, he desires to be the first to have this concern removed. The Secretary could very properly refer to the fact that since be has been in office there has been no utilisation of special powers which might weaken the dollar in the least. On the mentrary, he has steadfastly worked to males the dollar the keystone of the world's currencies, If the people through their Congressional representatives feel, however. that in this period of stress and morifice they would be happier to see no authority existing for lowering further the gold content of their dollar, he would insist that their wishes be not, From a technical standpoint, I 100 no possible reason for our wanting to devalue the dollar further. No European country has ever, to the best of my knowledge, 18 - 2 - devalued a currency twice in the same generation with any success attending the second devaluation. Germany has sought stendfastly to prevent the second devalus- tion of the reichamark, after the bitter experience following the World War. It is true that Germany has resorted to trick marks for foreign transactions, but it has kept the reichsmark & fixed currency from the internal standpoint. I believe that for us to tinker with our currency further would mean & national catastrophe. Certainly it is no time to leave doubts in the minds of our people with respect to the dollar when we are calling on than for big loans and taxing their wealth and revenue hgavily. Only this week ve have heard of withdrawale of currency for hoarding purposes in various parts of the United States because of the fear that the legislation suggested this week at the instance of the War Department wight permit seizure by the Government of private banking deposits. However far-fetched these fears may be, they are bound to grow as our country becomes more involved in the international difficulties. Should our taxes pile up. enormously and our coun- try suffer through labor disorders as well as become engulfed in a terrible var, it is entirely conceivable that people would not only become concerned as to the value of their money, but also seek places of safe refuge. To meet such contingen- cies our currency should be as strong as possible, and our Stabilisation Fund should be available. B.M.P. 19 TREASURY DEPARTMENT INTER-OFFICE COMMUNICATION DATE June 7. 1941 TO Secretary Morganthan FROM Mr. Cochran STRICTLY CONFIDENTIAL When I reported to you at Staff meeting on June 5 the receipt of a letter from Under Secretary of State Welles reporting his suggestion that the Colombian Ambassador discuss directly with the Treasury the question of possible cooperation of our Stabilisation Fund with that of Colombia, you left to Mr. Bell's group the question as to whether we should receive the Colombian Ambassador now or, as Kr. Bell sug- gosted. postpone any nev negotiations on Stabilisation matters. Mr. Bell and I were definitely of the opinion that no new negotiations should be started in June. In the first place, we are still likely to have a number of questions arising with the institution this month of the Stabilization Board in China. The Argentines may also possibly approach us for some arrangement to substitute for the unratified arrangement which ve antered into some months ago. Then too, there remains the task of getting the extension of our Stabilization Fund through the Senate yet this month. dated 6/9/41. When I mentioned the Colombian matter to the Secretary, when he was talking with 10 by telephone from the farm this morning, he approved the idea of By drafting a etter to Mr. Welles suggesting the postponement of any Treasury discussion with the Colombian Ambassador until after Congress determines the extension of the Stabiliza- ion Fund. A first examination of the Colombian proposition would indicate that this is request for around $1,000,000 to supplement the Colombian Stabilisation Fund to such an extent that it may be able to pay arrears of dollar exchange due for imports into Colombia. This arrangement would presumably supplement credits to be extended to Colombia by the Export-Import Bank. It has been my argument that the Stabilisa- tion Fund should not be used for loans of this purpose to Latin American countries, hat 1s, making up their trade deficits. The Secretary's recommendation along these lines when Peru was seeking a Stabilization Fund arrangement has apparently been a successful one, in that ve have purchased copper and other Peruvian products to build up stock piles in this country and have relieved the dollar exchange shortage of Peru by this method, without the necessity of & Stabilisation Fund arrangement. Conceivably something of this sort might be done with Colombia, or the whole problem left properly in the hands of the Export-Import Bank. Recalling our negotiations with the Colombian Ambassador concerning the settlement of private debts owed American holders of Colombian bonds, new negotiations with the Colombian Ambassador on a Stabilization arrangement could not be looked forward to with much pleasure or con- fidence. While I as not favorable to the idea of making any definite commitment to the British or anyone also at present M to what we night, with our Stabilisation Fund or gold, do to help then in the future, I believe it 10 very much to our own interest Regraded Uclassified 20 - 2 - to refrain from small Latin American operations with the Fund and conserve our resources if the Fund is extended after June 30, 1941. In a real emergency, the Secretary could always go before the appropriate Committees of Congress and raise the question as to buying sterling if the British urgently require dollars. We un- doubtedly shall have a real role to play with our Stabilization Fund in post-war reconstruction of the international financial system. Canada may prove one of the best fields to enter toward this end. But with the future so uncertain at present, I think we should continue a cautious policy and certainly not become involved in petty or political-financial arrangements with Latin American countries, particularly with those having a bad debt record. B.M. Regraded Uclassified 21 ADDRESS OFFICIAL COMMUNICATIONS TO THE SECRETARY OF STATE WASHINGTON, D.C. DEPARTMENT OF STATE WASHINGTON In reply refer to RA June 4. 1941 Cause 6/9/41 My dear Mr. Secretary: The Government of Colombia has submitted, through the Colombian Ambassador, a request for financial and economic assistance involving credits for public works and agricultural development purposes and cooperation with the Colombian stabilization fund. There is enclosed a copy of a translation of a memorandum on this subject presented to the Department by the Colombian Ambassador. Copies have also been made available to the Export- Import Bank and to the Department of Agriculture. The Department is requesting that the Export-Import Bank take action with respect to the general public works and agricultural development credits. The question of cooperation with the Colombian stabilization fund appears to the Department to be properly a subject for discussion with the Treasury. In The Honorable Henry Morgenthau, Jr., Becretary of the Treasury. Regraded Uclassified 22 -2- In the light of our previous discussions regarding the possibility of monetary and stabilization arrange- ments with certain of the other American republics, in which from time to time reference to Colombia has been made, I am suggesting that the Colombian Ambassador discuss the matter directly with the Treasury. Sincerely A Under yours, Secretary Alls Enclosure: Copy of memorandum with attachments. Regraded Uclassified 23 (TRANSLATION) the deverment of Solembia, after a sereful staty of the national cosasuto situation and the disburbuntes is internal order that night be produced If both the public works nov being executed and the plans for industrial promotion and agrapian defense vare found to be persiysed for lask of resources, has come to the conslusion that 18 is M indispensable necessity to name extraordinary funds in order to prevent the economic and octial - that would be brought about by the unferesses susponsion of such efforts of the present administration. the - tial object of the policy of public werks and infectrial and agricultural promotion that the Government has been pushing is that of senserving the nation's purchasing power and reducing as make as possible economic flostuations and drastic reductions in the standard of living of the workers and the population in general. This progres forms part of the economic, fiseal and memetary policy that the Dovernment has been maintaining, in order to reduce, as far me pessible, the effects of the crisis produced by the war, and today it constitutes a plan judisiously studied and natured and in active execution, in the main. The said plan was approved by the National Regraded Uclassified 24 Spenenta Council M specially outsed too stimulate Industry and the development of important agricultural regions and to - a atre direct - for goods, in keeping with the variable eircumstance of the - in eath of the regions that are going to be improved by the weeks pleased. the object of a loan for insuring the rapid comple- tion of the system of highways and for giving an impulsion to the schemes for industrial and agricultural development given in Asseme 1 so 5 is to counternet the possible dangers of - commonic depression that is about to occur and, on the other hand, so stimulate the demand for articles of consumption by the mest rational and scientifie means, such as that of directly auguenting the purchasing pover of the labering nasses. THE PLAN FOR The determination of the works and public services of undeferrable urgeney, requiring the imediate atten- tion of the State, has been the subject of & very careful study on the part of the Government. The investments that have been planned with the aid of specialized technical organizations in each branch are calculated at U.S. $13,000,000, or Regraded Uclassified 25 w tranty-two willion seven hundred farty thresand place, Colembian currency, at the rate of exthange of 198 percent, and the list thursed: is the following, vithout may order of prierity having been strictly indicated: & Expenditures during the first year of work of the official plan on defense of the benane industry and agricultural develope Passe nent in the Departments del 1,877,530.00 b. Cost of the irrigation and drainage works. 2,187,500.00 0. Assources for the development of the verks of the Hunicipel Improvement Pund 1,108,000.00 d. Increase in capital of the Industrial Pro- notion Institute 5,800,000.00 ÷ Construction of three large hydroclestric plants 5,718,000.00 f. Increase in sapital of the Stabilization Fund 8. Cost of the werks included misr the plans for highways, regulation of - tion and construction of public Pell Sett ] the 3 I plants 8 I I Regraded Uclassified 26 on a large seals and Game to be a very notable 18em in Columbia's foreign trade. Unfortunately, an epidemic on the plantations, known by the seientific - of Signtska, GARO along to affect, so the firet pleas, the presparity of that flourishing industry to a marked extent. Leter, the insvitable repersuasions of the European souffies aggremated the situation in the Departments del Magdalona, which car the exports of fruit reduced to a sinimus, which exports had been made, in large quanti- ties to Ingland and Helland in particular in former times. The executery of the Department having been prostrated by the adverse dircumstances that here gust been nextioned, it so an unavoidable duty of the national deverment to programs = I withs E Peter I the Interesta $ of the Inhebitants of that section, which are elerely - nosted wish - whole of the general coming of the country. efficial - to this riona - be limited to protecting the betana Industry, the future prosperte of # I or 1 I 1 1 I I 1 I and s betted 8 I s g the place, to - of the years which earing - THERE emetituted allows the sele protest employed sa that register - I I a 1 $ 6 Regraded Uclassified 27 prime importance which the Generament plane no push - Departamente del Magdalona, in assordance with the fore- going resarks, and the cost of which to calculated n one million eight hundred thirty-seven thousand five hundred - I A. COST OF THE IRRIGATION AND DRATILME MORKS (if) h ACCOMPT IN A PERIOD (*) TO YEARS The Government has favored 8 policy in the natter of irrigation and drainage of lands, for the purpose of income porating in agriculture wide areas of the territory of the country which 80 far have been almost entirely left out of even notivities because of natural obstasles and which can easily be saved. Annex No. 2 enumerates one by one the works planned, the cost of which 10 onloulated at two million one hundred eighty-seven thousand five hundred pesos. The works blonned could not be pushed with the ordinary resources of the Treasury, and the delay in t eir execution becomes an actual loss of wealth. It is true that considerable work has already been done, but various incompleted projects still reasin, which it 10 indisponsable to terminate as noon as possible. As It 1: impossible to wake reference to each of the items included under the plan for drainage and 1552- gation, only three works are mentioned, which in then- selves alone given on 1dea of the importance of the plan of 7 Regraded Uclassified 28 + of official action in this field. Due to the insufficiency of the Serevita River, the natural discharge free the Priquene Lageen in the Departments of Boysed, an approximate extent of 26,000 fanegadas (39,180 seres) of land of extraordinary fortility was flooded is that region is the rainy conson. The construction of 1 large drainage canal has been planned, to replace the bed of the Serevita River, a work which is well advanced and will allow the utilization of the area formerly liable to flooding. Drainage of the Recoment Valley This work is similar to the preceding, in as such as it involves the construction of a main easal running to the lower portion of the Begamoso River and returning the flood waters to the said river. The work was begun in 1936 and will benefit an area of 7,000 fanegadas (11,130 seree), likewise fertile enough for cultivation. Bugglagrande Irrication Camal (Causa Valley) These works were commenced " early as 1936, and have the purpose of providing water for irrigation and watering over Regraded Uclassified 29 -7- over an area of 18,000 fanegadas (23,880 acrea), for developing water power on a small scale, the land along the canal generally being lower than the canal, and for supplying drinking water to the town of Bugelagrande. The Government is being reimbursed for the suss spent on the works of drainage and irrigation, and there is an improvement tax equivalent to thirty per cent of the net benefit obtained by the owners of the lands benefitted, that 10, after deduction of the amount for the cost of execution of the works; the State may receive in land the amounts that are to be paid for one resson or another. C. RESOURCES FOR THE DEVELOPMENT OF THE MORK OF THE MUNICIPAL IMPROVEMENT FUND. A custom that bes been established in the political and administrative organization of the country with - fortunate consequences for its normal development caused the very life of the municipal units to depend almost exelusively, for many years, on the sid voted by the National Congress, with a standard that was not always characterized by equity and the proper selection of the real needs of each city or town. with 9 30 -8- With the purpose of fundamentally correcting this anomalous sitution, the present Government issued Extra- ordinary Decree 503 of 1940, which established the Municipal Improvement Fund, on organization provided with relotively considerable income of its own, and called upon to provide methodically the sunicipal public works of essential importance, such " the construction of aqueduots, severe, hospitals and buildings for primary instruction. The direct aid of the Congress to the municipalities has been suspended, with evident benefit to good order in the preparation and application of the national budget. Colombian cities, especially the small ones, are confronted with real problems of elementary hygiene, such as the supplying of potable water and the building of sever systems, which are oggravated by the constant wonsee of tropical diseases. The accomplishment of such works with the yield from the taxes et the disposel of the Municipal Improvement Fund would require work extending over very sany years, with evident injury to the public health. Hence Decree 503, mentioned above, foressw this and authorized the precuring of leans intended for the accomplishment of the works mentioned, among which the Government would select, first of 811, the met urgent anes comested with the building of Regraded Uclassified 31 of aqueduets and sever systems, which would call for the immediate investment of one million one hundred two thousand pesos ($1,102,000.00). The Municipal Improvement Fund could guarantee, from its own income, the service on the credit operations intended for the financing of the works entrusted to it. The Bank of the Republic, in virtue of an agreement concluded with the National Government now in effect, has the character of trustee for all the credit operations which are entered into for the Improvement Fund, and for that purpose the said Bank collects directly the yield from the taxes established by Decree 503 of 1940. Annex No. 3 contains complete data on the organisation of the Municipal Improvement Fund, its financial capacity and the work it has performed up to this time. D. INCREASE IN THE CAPITAL OF THE INDUSTRIAL PROMOTION INSTITUTE. This corporation, created by Extraordinary Decree 1157 of 1940, is operating at present with a capital of two million person subscribed by the State and a small additional amount from @ private credit institution. The organic Decree provides that the capital of the Institute must not be less than four million pesos, an 32 -10- on amount still very elight, in view of its function as a promoter of industries in 8 country of incipient develop- ment. The Government, however, is serely attempting at present to complete the stated capital of four million pesos indicated by Decree 1157 of 1940. The present administration, convinced of the imperative need for stivulsting the industrial development of the country, did not hesitate last year in supplying its quota for the organization of the Institute, despite the fact that at that time many national services were also urgently demanding the financial aid of the State. On the other hand, the founding of this organization likewise followed the Government's purpose of eliminating a prectical drawback, traditional in our legislative annale, that of granting national aid to industries which individuals or certain official organizations were planning to establish. Now, such assistance can be grented only through the Institute, the management of which is in the hands of an autonomous Board composed of real exports and business men and presided over by the Minister of National Economy. The Institute has as its min object to subscribe for shares in undertakings which private enterprise and capital have not been able to develop astisfactorily themselves, after 33 -11- after 8 serupulous study (has been made) of the suitability and safety of the investment. Se is no case can it be an organisation competing with private industries which operate normally. 1. CONSTRUCTION OF THREE LARGE HYDRO-ELECTRIC PLANTS. The industrial development of the country, which is being initiated chiefly by means of the official action exercised through the Promotion Institute that has been discussed above, encounters on insuperable obstacle in the look of electric power in sufficient amounts and under reasonable conditions as to price. Although it is true that during the last few years we have made some progress in the work of providing our municipalities with electric services indiapensable for domentic use and public lighting, it is no legs true that it has been possible to set up only one comparatively large plant for attending to the needs for industrial production in recent times, at Guedelupe, Departmento of Antioquia. The reproductive usefulness of this work has been manifest and is evident at sight, if we observe the extra- ordinary progress of the oity of Medellín, P.O 8 manufacturing center of first importance in Colombia. Toohnical 34 -12- Technical studies that have been going on for - long time make 1t advisable that the construction of three large hydre-electric plants be undertaken without delay, distributed over the national territory so that they can be utilized by each of the principal areas which, thanks to a combination of favorable circumstances, are destined to attain a considerable indestrial development in the near future. In this way, one large electric plant bes been planned for the wat of the country, snother in the east and the last in the Departamento of Boyaca. All of them utilize natural voterfalls which so far have represented an us- productive espital, and their ostimated costs amount al- together to the sum of five million seven hundred twenty-eight thousand pesos, which are given separately and in detail in Annex No. 4. F. INCREASE IN CAPITAL OF THE STABILIZATION FUND. The Government of Colombia has begun to establish on sound bases the outlines of a policy of public credit and regulation of international exchange. An instrument of this policy has been the Stabilization Fund, the work of which, although provided for by Law 7 of 35 -13- of 1936 vas not really begun until last year, in virtus of the provisions of Extraordinary Decrees 563 and 669 of 1940. This organisation, which protects Colombian export and import trade from sudden fluctuations of exchange, has contributed effectively toward maintaining the stability of our monetary system and consequently toward guaranteeing the interests of foreign investors in the country. By means of a system based on the acquirement of credite for adequate periods, the stabilization Fund has been able to advance to foreign exporters, at special rates of exchange designated reasonably, the value of the goods shipped to Colombia, the payment for which had to be post- poned for a long time beasuee of the unfevorable conditions of our export trade during the past year and due to the severe standards of control of exchange wt.ich it wes neces- sary to order in defense of the metallic reserves or the Central Bank of Issue, by means of the classification of goods imported into the country in four priority classes. Trade with the United States of America new been greatly benefittei, in the first place, by the policy of the Stalilization Fund to which reference he # been made. The Fund has E capital of its own of three million three hundred thousand pesos and although it has credit available, 36 -14- aveilable, in view of the solidity of its organization, 11 is necessary to endow it with new resources which will allow it to perform its functions better and which can in m 0180 be lens than two million pesos, & sum which the Govern- ment 1a planning to devote to augmenting its capital. The menagement of the Fund is entrusted to an autonomous Board composed of the Ministry of the Treasury and Public Credit, the Covernor of the Bank of the Republic and one member designated by the President of the Republic. C. COST of THE WORKS INCLUDED IN THE PLANS FOR REGULATION OF NAVIOATION AID COM- STRUCTION 07 PUBLIC BUILDINGS. In Annex No. 5 there is described in detail the plan for public works and in . separate meporandum there can be seen the observations on the economic importance of the roads that are included in the plan for national high- wrys, regarding the undeferrable need for improving the nevigation services and with respect to the urgeney of accomplishing the construction of various public buildings. The Government is developing a plan of works is the espital of the Republic which 10 giving employment to a considerable number of hands. As these works are bound to be suspended in .... the country can not obtain recources derived 16 Regraded Uclassified 37 -15- derived from the utilization of external credit, we shall be feeing a truly difficult situation, einee our economy would be unable to abserb the large number of workers employed on such building work. The continuation of the letter is, without any doubt, an cosential factor in the maintenance and stability of social peace in the country. The works mentioned could not be kept up with the ordinary resources of the budget, for the Government will find itself forced within e short time to establish priority for public expenditures, attending preferably to the payment of interest and emortization of the public debt, interior policing end the strictly necessary services. 38 ANTISER 15 MUSICAL RELATIONS MR. DUGGAN MAY 23 1941 RA DEPARTMENT of STATE (Alleds) -MEMORANDUM- DATO DE LAS SUMAS QUE SE PAGAN POR ARRENDAMIENTO DE LOCAD OF PARA OFICINAS NACIONALES EN BOGOTA. MAY 23 1941 Mayo de 1941. THE AMERICAN REPUBLICS DEPARTMENT OF STATE Canon Servicio Dirección mensual Total Mrio. de Correos y Telégrafos: Oficinas principales del Minis terio Edif. Hospicio $2.100.- Oficinas de Correos Calle 16. 800.- Auditoría Fiscal del Mrio..... cra.8 #18-26. 80.- Depósito de Repuestos cra.8,calle19 100.- Archivo del Ministerio calle 14,cra.5 200.- 3.280.- Mrio. de Educación Nacional: Depósitos y almacenes celle 16,cra.16 660.- 660.- Ministerio de Gobierno: Procuraduría General calle 12,#-2-60 380.- Identificación Electoral cra.7 #8-65 350.- Depósitos Imprenta Necional. cr.19A 12-73.. 80.- 810.- Oficina Médico-Legal Cra. 9a 140.- 140.- Ministerio ie Guerra: Oficinas de Intendencia, Avia- clón Civil, Marine, Sanidad, Di rección General de Servicios y btras cr.7,calle 7a. 1.100.- Talleres de la Maestrenza. Celle 10 #2-43 180.- 1.280.- Ministerio de Hacienda: Dricinas del Ministerio Crs.ba. entre calles 13 y14 1.350.- 1.350.- Ministerio de la Economia: Departamentos Agriculture, Ga- madería, Comercio y Empresas de Servicio Público Bco. Central H. 1.650,- Proveduria, Turismo, Almacenes.- Calle 15-0-23 800.- 2.450.- Pasan : 9.970.- Regraded Uclassified 39 -2- Vienen $ 9.970. Ministerio de Minas: Oficinas principales del Mrio., Calle 12 #8-74 500.- Interventoris de Petróleos Ed. Vasquez... 40.- Archivo y Sec. Ingeniería Cr.8A #15-39.- 160.- 700.- Ministerio de Trabajo: Oficinas principales del'Mrio.. Ed. Cafdenas.. 1.025.- Otras oficinas del Mrio Ed.Camacho R.. 500.- Oficine para desocupados cre.12 #7-93.. 70.- Almacenes Calle 19 #6-25 120.- 1.715.- Contraloria Gral.de la República Oficinas Principales Ed. Sefair 1.400.- Depósitos Cra.7 #5-70... 50.- Otras dependencies Ed. Solano 125.- Censo Nacional Calle 12#10-43 300.- Estadistica y Comercio Exterior Crs. 9 #11-12- 150.- 2.025.- Consejo de Estado Cra. 7 #7-68.. 600.- 600.- Tesoreria General de la Rep.... Ed.Banco de la República 1.000.- 1.000.- ; Museo Nacional Bco.de la Rep. 360.- 360.- Sociedad de Agricultores Cr. 3 #11-66.. 300.- 300.- Total $16.670.- Arrendamientos pagados mensualmente $ 10.670.- Arrendamientos pagados anualmente $..200.040.- (fdo) E. de Santamería Director General de Edicios Nacionales Uclassified 40 REPUBLICA DE COLOMBIA Leaión Número Unisterie de Hacienda ANEXO Nª 1 Credito y Publico Boyolá. mayo 9 de 1941 INVERSIONES NECESARIAS PARA EL PRIMER AÑO DE LABORES, o SEA, PARA LA INICIACION DEL PLAN OFICIAL SOBRE DEFENSA Y FOMENTO AGRICOLA EN LA ZONA BANANERA DEL DEPARTAMENTO DEL MAGDA- LENA. Campaña oficial contra la infección de la Si- gatoka (Véase presupuesto discriminado anexo) $ 353.895.00 Nuevos cultivos (maquinaria agrícola, crédito y parcelaciones) 500.000.00 Centrales de beneficio 100.000.00 Ganadería 50.000.00 Riegos y drenajes 183.605.00 Almacenes (Comisariatos) 100,000.00 Centro Mixto 50.000.00 Crédito Bananero 500.000.00 $1837.500.00 DETALLE DE LOS POSIBLES GASTOS DE LA CAMPASA CONTRA LA SIGATOKA Y DEL CENTRO DE INVESTIGA- CION Y FOMENTO EN UN AÑO. Administración y dirección $ 12.120.00 Investigación y Extensión 23.400.00 Jornales 54.000.00 Transportes 6.900.00 Víaticos 4,500.00 Otros Gastos 20.475.00 aquinarias y equipos de trabajo 105.000.00 Fungicidas y materiales sanitarios 105.000.00 Construcciones 15,000.00 Imprevistos 7.500.00 $ 353.895.00 Regraded Uclassified 41 REPUBLICA DE COLOMBIA Persion Número Ministerio de Hacienda ANEXO Nº 2 Crédito Público Bogota. mayo 9 de 1941 MEMOBANDIN sobre las sumas necesarias para la intensifica- ción de las obras de irrigación y desecación rea lizables por el Ministerio de la Economía Nacio- nal en un plazo de dos años, con un presupuesto de $2'187.500.00 que son 1'250.000 dólares al cambio del 175% A) CONCLUSION DE LAS CBRAS QUE SE EJECUTAN ACTUALMEN- TE, SIN INCLUIR LAS QUE VAN A SER TERMINADAS El. UN PLAZO DE DOS 0 TRES MESES, COMO LA REPRESA DE SAMA CA Y LA IRRIGACION DE MARIQUITA.- a) - Desecación de Fúquene Para la terminación del Canal de Ubaté y el sector que falta del Saravita en doce meses $90,000.00 Para la construcción de esclusas regu ladoras y algunas obras accesorias 70,000.00 Para pagar el segundo avaluo de los terrenos beneficiados 9.000.00 Total para Fúquene 3169.000.00 $169.000.00 b) - Desecación de Sogamoso Para la terminación de los canales proyectados $180,000.00 Para la adquisición de tres equipos de dragado (aproximadamente) 80,000.00 Para los avalúos de los terrenos be- neficiados 15,000.00 Para las obras complementarias de re- gulación 70.000.00 Total para Sogamoso $345.000.00 $345.000.00 Pasan $514,000.00 42 REPUBLICA DE COLOMBIA Sección Número inisterio de Hacienda - 2 - Crédito y Público Bogolá. vienen $514,000.00 c) - Irrigación de Bugalagrande. Para la conclusión del canal princi-. pal y sus obras accesorias hasta la región de Ríopaila, en diez meses $ 80.000.00 $ 80.000.00 Total para la conclusión de las obras que se ejecutan $594.000.00 B) OBRAS ESTUDIADAS Y DE LAS CUALES SE TIENEN PRESUPUESTOS MAS 0 MENOS COMPLETOS. a) - Represa del Siega en Chocontá, incluyendo indemnizaciones $300.000.00 b) - Represa del Ríofrío en Tabio 300.000.00 c) - Una esclusa sobre el río Bogotá, similar a la que se construyo en la Ramada 90.000.00 d) - Esclusa del Tunjuelo, en Bosa 30.000.00 e) - Para iniciar el plan irrigatorio de Llanogrande y Llano de Orien- te, & base del río Neiva, en el Municipio de Campoalegre, inclu- yendo la posibilidad de adquirir los terrenos beneficiados para parcelarlos y de establecer una planta eléctrica para cinco nu- nicipios 300.000.00 Total para las obras estudiadas $1'020.000.00 c) OBRAS ESTUDIADAS POR ALGUNOS DEPARTAMENTOS, PERO CUYOS PRESUPUESTOS REQUIEREN UNA REVI- SION POR PARTE DEL MINISTERIO DE LA ECONO - MIA NACIONAL. a) - Para iniciar irrigaciones de En- ciso, Capitanejo y Servitá, en el Departamento de Santander $ 83.500.00 b) - Para iniciar la irrigación de los llanos bajos del Tolima, & base de los ríos Coello y Luisa 160,000.00 Total para las obras estudia- das por los departamentos $243.500.00 $243,500.00 43 REPUBLICA DE COLOMBIA Sección Número mistorio de Hacionda 3 - Crédito y Público Bogola, NOTA: Estas obras no podrían realizarse en un plazo de dos años. D).- OBRAS URGENTES DE REALIZACION FACIL Y DE POCO COSTO Y PARA LAS CUALES LOS PRESUPUESTOS SON APRECIABLES CON BASTANTE EXACTITUD POR EL va- LOR DE OBRAS SIMILARES. a) - Represa del río Teatinos $ 80.000.00 b) - Irrigación de Alvarado, en el To- lima 50.000.00 Total de estas obras $130.000.00 $130.000.00 E).- ESTUDIOS PARA INICIAR, CON SUS VALORES APRO- XIMADOS. a) - Estudio de irrigación en el De- partamento del Atlántico $ 50,000.00 b) - Estudio de un plan irrigatorio en Valledupar y en la provincia de Padilla 50.000.00 : c) - Estudio del Canal del río Palo para beneficio de los Municipios de Candelaria, Miranda y Pradera 30.000.00 d) - Para estudios en el Tolima 20.000.00 e) - Para los estudios detallados so bre los ante-proyectos existen- tes en los Municipios de Carni- cerías, la Jagua, el Agrado, Ya- guará, Cabrera, Aipe y Baraya (Huila) 30.000.00 f) - Para estudios en algunas regio- nes del Norte de Santander 20.000.00 Total para los estudios $200.000.00 $200,000.00 RECAPITULACION: A) Conclusión de las obras que se adelantan $ 594.000.00 B) ⑈ Para las obras estudiadas 1'020.000.00 C) Para obras estudiadas por los Departamen- tos 243,500.00 D) 1st Para obras de facil realización 130,000.00 E) Para iniciar los estudios más importantes 200,000.00 Suma Total $2'187.500.00 44 REPUBLICA DE COLOMBIA Sección Número Unisterio de Hacienda ANEXO N° 3 Crédito y Público Bogola. mayo 9 de 1941 MEMOBANDUM sobre la estructura económica del Fondo de Fomento Municipal. ESTATUTOS QUE RIGEN SU ORGANIZACION Y FUNCIONAMIENTO. Decretos Nos.503 (marzo 8), 562 (marzo 27) y 575 (marzo 27) de 1940. RECURSOS ECONOMICOS DEL FONDO. a) - Impuestos de la Ley 12 de 1932; b) - Utilidades en el Banco de la República; c) - Impuesto sobre consumo de grasas y lubricantes; d) - Impuesto sobre primas de seguros; e) - 20% sobre el superavit fiscal de cada vigencia; f) - Las sumas que se apropien en el presupuesto de gastos de cada vigencia para el Fondo; g) - Los intereses y reembolsos de las sumas que otorgue en préstamo el Fondo; h) - El producto de operaciones de crédito y las sumas que los departamentos, intendencias, comisarías y municipios con- signen como aportes para obras. Las operaciones de crédito que obtenga el Fondo pue- den hacerse con dos finalidades: a) - Para incrementar el cupo general de los departamentos, in- tendencias y comisarías, y b) - Para incrementar el oupo de un determinado departamento, intendencia o comisaría, del Municipio de Bogotá, o de de- terminada obra del Fondo de Fomento. Hasta la fecha solamente Be ha efectuado una opera- ción, consistente en la emisión de la suma de $3'000.000.00 en "Bonos de Fomento Municipal de 1940", autorizados por el Decreto 1634 de 1940, para incrementar las obras de Fomento Municipal del Municipio de Bogotá, determinadas en el Decre- to 1350 de 1940. La emisión de bonos ne autorizó para amorti- sación en 30 afios y con un interés anual de 6%, El servicio de los aludidos bonos lo oubre el Fondo de Fomento Municipal al Banco de la República en virtud del 45 REPUBLICA DE COLOMBIA Lexión Número Unisteria de Hacienda 2 Crédito Público Bogolai. contrato de fideicomiso celebrado el 20 de septiembre de 1940, y se hace por cuotas trimestrales de cincuenta y cuatro mil seiscientos noventa pesos ($54.690.00), o sean doscientos die- ciocho mil setecientos sesenta peBoB ($218.760.00) anuales, con cargo al cupo del Municipio de Bogota en la distribución de los recursos del Fondo. FACULTAD PARA CELEBRAR OPERACIONES DE CREDITO El Decreto 503 de 1940, Art. 5º, dispone: "El Gobierno podrá efectuar operaciones de crédito interno o "externo, a corto 0 a largo plazo, con garantía de los recur- "808 propios del Fondo, y el producto de dichas operaciones "se aplicará a cumplir los fines previstos en este Decreto, de "conformidad con lo establecido en el ordinal g) del Art. 2ª. "Los contratos que Be celebren en desarrollo de esta autoriza- "ción, no requieren, para su validez, sino la aprobación del Exmo señor Presidente de la República, previo el concepto fa- "vorable del Consejo de Ministros y de la Junta Nacional de "Empréstitos. Esta última formalidad no será necesaria para "aquellas operaciones de Tesorería que impliquen únicamente "adelantos & cuenta de las entradas ordinarias del Fondo, y "que deban quedar saldadas dentro de la misma vigencia fiscal "en que se otorguen." DISTRIBUCION DE LOS RECURSOS DEL FONDO De conformidad con lo dispuesto en el artículo 11 del Decreto 503 de 1940, del total de entradas correspondien tea a los ordinales a), b), c), d), e) y 1), la ciudad de Bo gotá tendrá derecho a un cupo del 15% y el resto se destina- rá a inversiones en los departamentos, intendencias y comisa rías, distribuyendo el 80% con relación a la población que pa ra cada una de ellas arrojó el censo de 1938, y el 20% restan te, por partes iguales, entre las mismas entidades, siendo en tendido que las intendencias y comisarías Be considerarán en conjunto como doe unidades. A ou vez, la distribución de lo que del 20% citado corresponda 8 las intendencias y comisarías, ae hará sobre la base de la población respective de cada una de estas entidades. APLICACION DE LOS CUPOS Y OBRAS DE FOMENTO El Decreto 503 de 1940 establece las siguientes 0 bras que pueden atenderse con los fondos del fomento municipal: 46 REPUBLICA DE COLOMBIA Lección Número mistorio de Hacienda - 3 - Credito Público Bogolá Acueductos, hasta un 60% del costo de la obra; Alcantarillados, hasta un 60% del coato de la obra; Locales escolares para la enseñanza primaria, hasta por el total de su costo; Hospitales, hasta por el total de Bu costo, y Plantes Eléctricas, en la proporción de aporte que esta- blece la ley 126 de 1938 Con respecto al Municipio de Bogotá el Decreto orgá- nico del Fondo dispone que el Gobierno señalará por decretos especiales, las obras con destino a las cuales el Fondo puede hacer operaciones para la ciudad dentro del 15% previsto. ARBITRIOS FISCALES DEL FONDO EN EL BIENIO 1940-1941. En 1940 ingresaron al Fondo de Fomento Municipal las siguientes cantidades: Por rentas de la ley 12 de 1932 $1'717.666.42 Por participación en Superavit fiscal de 1939.. 208.773.62 Por apropiaciones presupuestales 452.000.00 Total $2'378.440.04 Para 1941 se hallan presupuestadas a favor del Fon- do las siguientes cantidades: Rentas de la ley 12 de 1932 $2347.863.45 Impuestos sobre grasas y lubricantes 298.224.93 Impuesto sobre primas de seguros 88.648.35 Utilidades en el Banco de la República 456,666.66 Participación Superavit fiscal 1940 340,000.00 Total $3'531.403.39 RESUMEN: Total para el bienio: 1940 $2'378.440.04 1941 3'531.403.39 $5 909.843.43 Regraded Uclassified 47 REPUBLICA DE COLOMBIA Persión Número inisterio de Hacienda 4 Crédito Publico y Bogolá. Los productos de las rentas del Fondo de Fomento en el primer trimestre del presente año, se han presentado así: Rentas de la ley 12 de 1932 do $ 661.826.59 Impuesto sobre primas seguros 443.87 Impuesto sobre consumo de grasas y lubricantes. 92.913.14 Utilidades en el Banco de la Republica 250,000.00 Total en el trimestre $1'005.183.60 PROGRAMA DE INVERSIONES EN EL BIENIO 1940-1941 La Junta Directiva, al iniciarse el funcionamiento del Fondo, señaló la suma de $7'300.000.00 como monto total de los recursos del Fondo que debían distribuírse en el cupo de los departamentos, intendencias y comisarías, y el Municipio de Bogotá, distribución que dio el siguiente resultado: Municipio de Bogotá $1'095,000.00 Departamento de Antioquia 782.351.22 H del Atlantico 236.717.83 " de Bolívar 531.296.92 " de Boyacá 514.796.73 " de Caldas 534.126.40 " del Cauca 288,681.42 " de Cundinamarca 578.196.50 If del Huila 206.045.42 " del Magdalena 280.545.57 " de Nariño 353.803.99 II de Santander del Norte 282.834.12 H de Santander 442.654.48 " del Tolima 402.386.95 " del Valle 441.186.45 Intendencias 197.083.94 Comisarías 132.292.06 Total $7'300.000.00 La Junta Directive del Tondo, hasta la fecha, ha a- probado contratos por un monto total de $5'493.554.43, distri- buídos así: Para acueductos $1'712.566.16 Para alcantarillados 451,162.60 Para plantas eléctricas 402.072.14 Para hospitales 385.390.09 Para locales escolares 847.637.86 pasan $3'798.828.85 48 REPUBLICA DE COLOMBIA Lección Número misterio de Hacienda - 5 - Credito y Público Bogolá. vienen $3'798.828.85 Contrato global Departamento de Caldas 384.126.40 M " - de Antioquia. 447.772.62 Municipio de Bogotá 862.826.56 Total $5'493.554.43 Por cuenta de los contratos anteriores se han efec- tuado pagos, por valor de $1'875.318.52. El manejo financiero del Fondo corresponde exclusi- vamente al Ministerio de Hacienda y Crédito Público, de confor midad con el artículo 7º del Decreto 503 de 1940. 49 REPUBLICA DE COLOMBIA Servion Número Hinisterio de Hacienda ANEXO Nº 4 Crédito y Público Bogola. mayo 9 de 1941 PRESUPUESTO PARA LA CENTRAL HIDROELECTRICA DEL RIO PALO.- Características: Caída: 170 metros netos Caudal: 10 m³/seg. Potencia: 10.900 kilowatios en los bornes del generador Poblaciones que se benefician: Cali, Calcto, Puerto Tejada, Santander, Corinto y Miranda. Obras de captación $ 50.000.00 Canal de conducción: Longitud 12 Km. revestido en concreto reforzado a $124.25 metro 1'491.000.00 Desarenadores: 900 metros cúbicos de concreto armado a $85.00 cada uno 76.500.00 Obras de arte: túneles, viaductos, etc 160.000.00 Cámara de carga: 250 metros cúbicos de concreto armado a $85.00 cada uno 30.000.00 Anclajes: para tubería de presión 585 metros cú bicos a $30.00 cada uno 17.500.00 Tubería de presión: Díámetro 84" Longitud 600 metros. Peso'830 toneladas a $400.00 cada una.. 332.000.00 Casa de máquinas: incluyendo montaje 45.000.00 Maquinaría: 2 grupos de 5500 KW cada uno 190.000.00 Sub-estaciones: 110.000.00 Línea de alta tensión: 60 Km a $4,000.00 Km.... 240.000.00 total $2'742.000.00 Precio del kilowatio generado y trasmitido $249.27. 50 REPUBLICA DE COLOMBIA Sección Número Unistorio do Hacionda 2 Crédito y Público Bogolá. PRESUPUESTO PARA LA CENTRAL HIDROELECTRICA DEL RIO SUAREZ Características: Caída: 100 metros netos Caudal: 10 m3/seg. Potencia: 6700 kilowatios en los bornes del generador Poblaciones que se benefician: Socorro, Contratación, Simacota, Chima, Guane, Galán, Palmar, El Hato, El Páramo. Obras de captación $ 80.000.00 Canal de conducción: 5 Km a $125.00 metro 625.000.00 Desarenador: 800 metros cúbicos de concreto a $85.00 cada uno 68.000.00 Cámara de carga: 250 metros cúbicos de concreto armado a $85.00 cada uno 30.000.00 Obras de arte: túneles, viaductos, etc 100.000.00 Anclajes para la tubería: 300 metros cúbicos de concreto cilcópeo a $30.00 cada uno 9.000.00 Tubería de presión: 700 toneladas a $400.00 c/u 280.000.00 Casa de máquinas: incluyendo montaje 40.000.00 Maquinaria: 2 grupos de 3350 KW cada uno 130.000.00 Sub-estaciones: 120.000.00 Red de alta tensión: 40 Km a $4,000.00 cada uno 160.000.00 total $1'642.000.00 Precio del kilowatio generado y trasmitido: $245.07. 51 REPUBLICA DE COLOMBIA Inción Número linisterio de Hacienda 3 Crédito y Túblico Bogolá. PRESUPUESTO PARA LA CENTRAL HIDROELECTRICA DEL LAGO DE TOTA Características: Caída: 400 metros netos Caudal: 2 m3/seg. Potencia: 5.500 kilowatios en los bornes del generador. Poblaciones que se benefician: Tunja, Sogamoso, Duitama, Paipa, Corrales, Santa Rosa, Sotaquirá y alrededor de unos 20 munici- pios pequeños por donde pasarán las líneas de trasmisión. Obras de captación: $ 50.000.00 Túnel: 300 metros de longitud para un gasto de 2 metros cúbicos/seg. a $150.00 metro 45.000.00 Cámara de compensación: para una altura de 30 metros y en concreto armado 85.000.00 Tubería de presión: Longitud 3.000 metros. Diá- metro 42" incluyendo aparatos de seguridad, vál- vulas, etc 550.000.00 Anclajes para tubería de presión: 300 metros cú bicos a $30.00 cada uno 9.000.00 Casa de máquinas: incluyendo montaje 35.000.00 Maquineria: 2 grupos de 2750 KW cada uno 100,000.00 Sub-estaciones 150.000.00 Línea de alta tensión: 80 Km. a $4,000.00 Km... 320.000.00 Total $1'344.000.00 Precio del kilowatio generado y trasmitido: 8244.36 52 REPUBLICA DE COLOMBIA Lección Número inisterio de Hacienda - 4 - Crédito y Público Bogolá. RESUMEN: Central " Hidroeléctrica de Río Palo.. $2'742.000.00 H " Río Suáres 1'642.000.00 If H If Lago de Tota...... 1344.000.00 Suma $5'728.000.00 53 REPUBLICA DE COLOMBIA Provion Número Unisteria der Hacienda ALLXO Nº 5 Crédito Publico Bogola. mayo 9 de 1941 COSTO DE LAS OBRAS QUE COMPRENDEN LOS PLANES DE CARRETERAS, DE REGULARIZACION DE LA NAVE- GACION Y DE CONSTRUCCION DE EDIFICIOS PUBLI- COS. Carreteras Sonsón-Dorada (para dar paso en toda su longitud e iniciar algunas obras de arte definitivas) $ 650.000.00 Pauna-Río Magdalena (para llevar la obra hasta el Río Minero) 180,000.00 Sogamoso-Casanare (para adelantar las obras has- ta cerca de la entrada de los llanos) 210,000.00 Villeta-Guaduas-Honda (para terminar la obra) 360.000.00 Neiva-Palermo-Palmira (para dejar terminada más de la tercera parte de la vía) 500,000.00 Ciénaga-Fundación (para dejar terminada la obra) 100.000.00 La Paz-Chiriguana (para terminarla) 100.000.00 Pasto-Puerto Asís (para terminar la carretera hasta Urcusique y hacer un camino de herradura de Urcusique & Puerto Asís) 100.000.00 Gamarra-Ocaña (para terminarla) 160,000.00 La Ceiba-Abrego (para ejecutar la mitad de la o- bra) 600.000.00 Pandi-Colombia (para llevar la carretera hasta la Colonia) 200.000.00 Cali al mar (para dar paso con obras de arte pro visionales) 400.000.00 Bolívar-Quibdó (para dar paso con obras de arte provisionales) 390.000.00 Istmina-Quibdó (para terminarla) 360,000.00 Cuestecita-Carraipia (para hacer la totalidad de la obra) 90.000.00 Venecia-Tres Esquinas (para hacer todos los estu dios) 100,000.00 Suma $4'500,000.00 54 REPUBLICA DE COLOMBIA Imain Número inistorio de Hacisnda - 2 - Cridito y Público Bogota. Navegación Para compra de accesorios y repuestos de dragas y equipo adicional para las mismas $ 415.000.00 Para dotación de equipos mecánicos en los puer- tos del río Magdalena y accesorios que permitan su instalación 230.000.00 Para la adquisición de un equipo adicional para manejo de carga en el Terminal Marítimo de Ba- rranquilla 60.000.00 Para montaje de talleres centrales en Barranqui lla (suma indispensable para su iniciación) 400.000.00 Suma $1'105.000.00 Construcciones Para terminar el edificio de correos nacionales $ 800.000.00 Para la terminación del edificio nacional de Pasto 290.000.00 Para terminar la construcción del edificio de los ministerios 600.000.00 Para terminar las obras de la Ciudad Universita ria 600.000.00 Suma $2'290.000,00 RESUMEN Inversión en Carreteras $4 500.000.00 Inversión en Navegación 1'105.000.00 Inversión en Construcciones 2'290.000.00 Suma $7'895.000.00 55 mont TREASURY DEPARTMENT INTER-OFFICE COMMUNICATION DATE June 7. 1941 TO Secretary Morgenthau FROM Mr. Cochran At 3 o'clock yesterday afternoon I received Mr. Coyne, Financial Attache of the Canadian Legation. Ee told me that he is leaving shortly for Canada to obtain information there with respect to the working of the plan enunciated at Hyde Park on the occasion of Prime Minister Mackenzie King's recent visit with the President. Furthermore, Mr. Coyne hoped to obtain data sufficient to revise his report to the Treasury on the Canadian financial position. He will give us something on this subject as soon as possible. He is going to look particularly into the subject of re-registration of Canadian holdings of dollar securities and other investments. Jul Regraded Uclassified 13998 56 No. 1581 Ottawn, June 7. 1941. Subject: Periodical report on general conditions in Canada. The Honorable The Secretary of State, Washington, D. 0. Sir: I have the honer to transmit a report on general conditions in Canada for the period from May 30 to June 6, 1941, inclusive. Respectfully yours, Pierrepont Moffat. True copy of the original signed by In quintuplicate to Department. 800 JGP/ems 57 5) Plans to implement Hyde Park declaration - Reports of monetary neasures. A series of news reports from the United States has given publicity in Canada to a type of economic collaboration which is scarcely welcome in Ottawa, especially among those directing Canada's financial policies. A correspondent of the North American Newspaper Alliance wrote that & "stabilization agreement" was likely, that the American dollar might become legal currency in Canada and that monetary measures under con- sideration might lead to a complete economic union. The author of this report based the foregoing predictions on allegations that the President and the Prime Minister were planning far in advance of public opinion or knowledge neasures to link the American and Canadian economies more closely together. Other reports under American datelines have favored loans to Canada under the lease- lend formula, and Senator Mead of New York has been reported as specifically referring to: the desirability of closer collaboration on monetary matters. Regraded Uclassified 58 IV. INTERNAL POLITICAL AFFAIRS. 1) Current political and other factors as related to Canada's var effort. There are at present three major subjects of interest in connection with Canada's var affort. the recurrence of Dominion-Provincial friction, the lagging drive for recruits, and the Victory Loan campaign. a) Dominion-Provincial relations: Ontario. Masking his fight to retain control over the lucrative income and corporation tax fields, Mr. Hepburn of Ontario last week based an implied refusal to vacate these fields on what he termed the unjust increase in the federal withholding tax on provincial bonds - a relatively trivial matter. In BO doing he placed himself in the position of defending the American bondholder, of threatening his electors with double taxation, and of prejudicing the success in Ontario at least of the Victory Loan campaign. Nevertheless, the Dominion Government decided that it could not wait for time to make Mr. Hepburn's position indefensible and, with the success of the loan campaign and the importance of preserving Canadian unity in mind, abandoned on June 5 the proposal to increase the withholding tax on provincial bonds. This decision, an admission of Mr. Hepburn's nuisance value, had the effect of removing his given reason for retaining the income and corporation tax fields and left the next nove up to Mr. Hepburn. The nove vas not long delayed. On the evening of the same day, although he had been the arch-wrecker of the abortive Sircis conference in January, Mr. Hepburn proposed that Prime Minister King call & Dominion-Provincial conference to discuss "a solution of 59 Regraded Uclassified present taxation issues, provincial autonomy, industrial harmony and a spirit of wholesome good-vill between the Dominion and Provincial Governments of Canada". Such honeyed language from Mr. Hepburn is an indication that he is in retreat and in effect the position now seems to be that he prefers to continue his fight for provincial autonomy at & full conference table rather than in & straight two way exchange with the Dominion Government. It is believed that at such a conference he would be prepared to agree at most to a wartime settlement of Dominion-Provincial financial re- lations and that he would insist on post-war restoration of the income and corporation tax fields. In this, to judge from a recent speech, he would have the support of Premier Aberhart at least, and could as well remind the government that in his budget speech of April 29, Mr. Ilaley had stated that the government did not intend to get the provinces out of these tax fields permanently. On June 6 the Prime Minister, who, it will be recalled, left the door open for a. second Dominion-Provincial conference at the time the first one failed, replied to Mr. Hepburn that if all the Provinces "should unite in a request" for another conference, the Government would consider it at once. In other words Mr. King will not assume the responsibility for a second conference until it is safe to do 80. It is evident, however, that an advantage has been gained by removing Ontario's alleged - if absurd - grievance and there is now ground for optimism that the teeth have been drawn from Mr. Hepburn's wilful threat to Canadian unity. 60 b) Recruiting Campaign - Army program. Confirming the unfavorable impression which the public had gained, the Minister of National Defence told Parliament on June 5 that only 7,655 out of the 32,000 required had thue far been recruited for the active Army during the present intensive campaign. The Minister professed optimism but none- theless there are two reasons for concern over the lack of en- thusiasm of Canada's youth for voluntary service overseas. In the first place the pressure in favor of conscription both from the public in Ontario and certain of the other English speaking Provinces has been immensely increased and conscription sentiment is of course very strong among most Army officers. This issue has been much confused by special pleading in Canada and it has never been squarely and publicly stated by the Government. In effect and in simplified terms, if the campaign for recruits fails Canada will have to choose first between conscription and unity, and second between a major industrial contribution and & major contribution of fighting manpower. In the second place there is concern for Canada's war effort by reason of the lagging recruiting because Canada is pledged to send overseas this year the 3rd and 4th division, the armored division and the tank brigade. No important fraction of any of these units has yet left Canada. Aside from the military effect of any failure to carry out the selfimposed Regraded Uclassified 61 schedule for the overseas despatch of troops, the ultimate political effects in Canada would be most serious. c) Victory Loan. In contrast to the foregoing aspects of Canada's wartine activity the Victory Loan, at the present early stage in the campaign, appears to be an unqualified success. It is demonstrating how generously the people will respond, financially at least, to & well planned and well organized drive. It is even said that the initial subscriptions were no large that the Government had to resort to the device of deferring an- nouncement of B part of the subscriptions for fear of the impression gaining ground that there was no longer need for everyone to participate. The easy success of this loan would be a source of immense satisfaction to a government which, critice to the contrary notwithstanding, has since June 1940 placed the primary emphasis on production and acted up to the present at least on the rather bold thesis that anything that could be produced by Canada could be financed. 2) Parliament - Minister of Finance. Parliament was unable to conclude its business by Friday night June 6, as hoped although sitting from 11 a.m. to 11 p.m. daily. Third readings have been given. however, to all of the budget bills and aside from the main estimates for the current year, little business of importance remains. It is perhaps worth noting that the handling of the budget by the Finance Minister, Mr. Ileley, has through more than & Regraded Uclassified 62 month of sometimes tedious, sometimes searching debate been characterised by patience, openness of mind, clarity of thought and expression, and a tenacity and adherence to important principles which have marked Mr. Ilsley as an exceptionally able man. His prestige has increased enormously. 10 AME DECREIVE E 100 BSI my SR bill 3 S2 eh:copy 6-25-41 BECEINED Regraded Uclassified 63 PARAPHRASE or TELEGRAM RESERVED FROM: American Bubancy, (Paris) Vicky DATE: June 7, 1941, 3 p.m. NO.: 4w A Foreign Office source informed us recently that the setting up of three German Commissioners, one for foreign trade, one for the Bank of France, and one for foreign exchange, formed a part of the latest Franco-German collaboration. & private source has now given us, in the strictest confidence, pertinent paragraphs of what is said to be Official Report no. 57 of the French Delegation to Wiesbaden, for the week May 11-18. The Embassy believes that this information is authentic, it appears that a rather full summary by telegraph is worth sending to the Department: As for the Commissioner of Foreign Trade: The French Government agrees to the setting up of a Commissioner for Foreign Trade, who shall receive prier notification of any modification in policy concerning the foreign trade of France and trade between the Colonies and France itself, as well as between continental France and its territories under protectorate and mandate. All facilities for controlling the carrying out of import and export schedules shall be received by the Commis- sioner, and such schedules shall not be drawn up without the 6ca- missioner's approval. If the interests of Germany are involved, the Commissioner may vote the delivery of importe and experts. The Finance Ministry may be requested by the Commissioner to furnish Regraded Uclassified 64 - 2 furnish all information he considers necessary with regard to foreign trade, and to furnish all documents he thinks assessary. Any coonemic negotiations with a third power which the French deverment proposes to undertake shall be naše known to the Commissioner, and the progress of the negotiations shall be made known to him. A special agreement between the French and German Governments will be necessary for the entry into effice of the derman Foreign Trade Commissioner. As for the Commissioner for the Bank of France: It is agreed by the French Government that a German Commissioner shall be established at the Bank of France. The Bank of France shall keep the Commissioner permanently informed of all neasures taken by the Bank. The Commissioner my inquire into all the Bank's operations and decide what actions and operations must receive his prior approval before being carried out. On credit operations to be granted or requested shread, the Commissioner must give his prior opinion. the Commissioner will take seguisence of any balances, statements or other documents sent to the organization which is charged with control of banking, and through the Bank of France he my denand any and all supplementary domments and information from other banks. The authority of this Commissioner because effective on the twentieth of May. (Note: Reference is made to telegram of July so, 6 p.m., 1940, m. as from the liabassy and subsequent reporting that under their on regulations, last numer the German occupying authorities installed a Regraded Uclassified 65 - B Commissioner, Schaeffer. Apparently the present agreement was for the purpose of putting the stamp of full approval on his authority by the French.) As for the Foreign Exchange Commissioner: It is agreed by the French Govemnent that a German Foreign Exchange Commissioner shall be set up. Prior notification of any modification or addition to the French regulations having to do with gold and foreign exchange shall be made to this Commissioner. Likewise, he shall be notified regarding any neasure for carrying out such regulations, being given a period of ten days within which his objections may be filed. The Commissionar is expewered to make suggestions for the medifica- tion, supplementation and execution of existing provisions which, when they correspend to the interests of Germany and France, shall be carried out. Whenever German interests are involved, the Commissioner may vote French foreign exchange legislation. The Commissioner shall be given prior notification of any medification of legal provisions having to de with the exchange stabilization fund, and a ten day period for filing objections is stipulated. All transactions of the exchange stabilization fund shall be personently nade known to him. Through the Finance Ministry, the Commissioner may request all information and documents he considers necessary with regard to French control of exchange. The Commissioner took office on the twentieth of May. Regraded Uclassified 66 - 4 - There are also interesting paragraphs 02 French control of the frontiers in the report, which are given below: (in paraphrase) It is agreed and declared by the French Government that the Commissioner of Foreign Exchange and the Commissioner of Foreign Trade may employ German customs agents not to exceed 200 in number in the unoccupied suns in elliter carry out their mission. By means of an intermittent Ontrol it shall be the duty of these agents to supervise French Customs operations regarding merchandise and monetary trankie foreign frentiers and at airports where there is customs authority The supervisory organizations may, through the French linison agent who accempanys them, suspend suspected sperations or proceed to measures of specified control when danger of fraud is feared. The French Government shall be charged with taking all neasures tending to facilitate the installation and work of these centrol organizations. It is agreed by the French Government that the number of open frentier ports shall be reduced to a sinimum. The control services on the part of Germany shall be effective the thirtieth of May. This telegram has been repeated to the Berlin Rubassy. LEANY. EA:LNW Regraded Uclassified 67 C 0 P Y AUSTRALIAN LEGATION, WASHINGTON, D. C. June 7th, 1941 Dear Mr. Cochran, We thought that perhaps informally you would like to have a summary of a recent telegram. we have received regarding a change in the Austra- lian National Security Exchange Regulations. The Regulations have been amended to provide that all persons in Australia who own United States or Canadian dollar funds or currency in any shape or form, either overseas or in Australia, must sell these funds to the Australian Government. The amendment provides, in addition, for the control of sales, loans, transfer or mortgages of any lands or securities owned by persons outside the sterling area to another person outside the sterling area. Unless permission is first obtained from the Common- wealth Bank transfers will in future be illegal. We thought that conceivably the information would be of use to you. Yours sincerely, (Signed) P. R. Heydon H. Merle Cochran, Technical Assistant to the Secretary of the Treasury, Treasury Department, Washington, D. C. OPY - dm - 6/10/41 Regraded Uclassified 68 C 0 P I PARAPHRASE OF TELEGRAM RECEIVED FROM: American Consul, Berlin, Germany TO: Secretary of State, Washington DATED: June 7. 1941, 12:15 p.m. NUMBER: 2244 Athens reports have been received to the effect that it has been agreed by the German-occupying authorities to pay a 20 percent premium on all pur- chases in Greece for the German armed forces because of the price rise since the conquest. Credit in the clearing account will constitute the form of payment. A certain percentage of all types of products exported to Germany will be left for the use of domestic industries in Greece. As in other conquered countries there have been substantial increases in prices and heavy purchases by Germany for export to Germany 99 well as sup= plies for the occupying forces. The inevitable result of paying through 5 clearing account will be to build up a large clearing dobt which Germany will owe. Significance may be attached to the fact that it has been found expedient by Germany to promise not to take all raw materials, which are available in Greece in quantity end which Germany greatly needs, such as hides and akins, magnesite and iron ore, tobacco and resin. Copy:alm 6-11-41 Regraded Uclassified U. S. TANK VISSELS IN PORTS we THE UNITED STATES DATE OF VOYAGE FOR WHICH LOADING RIO NAME CARGO CAPACITY PRESENT LOCATION ARRIVAL OR INTENDING TO LOAD REMARKS as ANTINTAN 75,000 bble. Seattle 6/5/41 Victoris,3.C.(me ourgo) Active as CAMDEN 78,000 bbls. Teems,Wash. 6/5/41 San Pedro,Cal.(no carge) 4a Regraded Uclassified R. J. HANNA 75,000 bble. Portland, Orogon 6/5/41 Richmond,Cal. (no carge) . LA PURISIMO 62,000 bble. Parkland, Oregon 6/6/41 California (no cargo) . EMIDIO 80,900 Mols. Portland, Oregon 6/6/41 Sea Pedro (no cargo) - CHRISTY PAYNE 91,800 this. Charlesten 6/5/41 Sevennah - C.B.WATSON 80,000 bbla. Charleston 5/5/41 Jacksonville - GULFLAND 55,000 bbls. Charleston 8/6/41 Unreported - SS W.V.BROCK 81,458 bbls. Beltinare 6/6/41 Lake Charles, Le. - TRIMINAIN 80,000 bble. Bultimare 6/6/41 Wilmington, N.C. - 85 L. M. CLASK 119,410 this. Beltimere 8/5/41 Boytom, Teme # ISSO DOVER 105,790 bbls. Bultimare 4/22/41 probably Teams part Active - undergeing alterntions CARRABULLE 33,350 bblo. Poltiners 5/4/42 Deminion Reyablic Active as BEAUNCING PARKS 45,000 Hels. Delath 6/5/41 Chicago do 18 TRENE ELLEN 10,500 bhls. Toledo, Chie 5/29/41 Buffulo - 85 MEXOYL 16,800 bble. Toledo 6/8/41 Lackswoma, N.Y. . 88 CHUDOIL 18,000 His. Buffulo 6/6/41 Clovalend or Bay city se ID JERSEY 72,000 bble. Philodelphie 6/5/41 Bayenne, No J. - SS 72,000 bble. Philadelyhis 8/6/41 Her York 88 ORFICE 72,000 bbla. Philodelphis 6/6/41 Dareported - SS PAPORSE 72,000 bble. Philodelyhia 8/6/41 Part letter . 55 3. 1. TAX DIKE 181,000 Hols. Philodelphis 8/6/41 Texas as ALBERT HILL 10,500 team Philadelphia 5/6/41 Texas $8 TOSTEN 10,066 tene Philadelphia 6/6/41 Jersey City GULF COAST 80,000 bbls. Philadalphia 6/6/41 New Terk SS SVIFTSURE 62,500 bble. Philodelphia 6/5/41 Metanued missere 88 DIXIANO 43,000 Hols. Philodelphis 6/5/41 Outs missess REITEFLASH 941 tem Philodelphia 6/6/41 Atlantic City BB ROBERT X COLLEY 17,525 tear Philodelyhia 6/6/41 Chester, Pas - 10 days repairs 69 1. H. NUM 18,740 team Philadelphia 6/8/41 Texas as DATE OF VOYAGE FOR WHICH LOADING RTO NAME CARGO CAPACITY PRESENT LOCATION ARRIVAL OR INTENDING TO LOAD REMARKS MS IN PENN 111,800 bbls. Philadelphia 6/6/41 Unknown Active no CALORIA 1,250,000 gals. Philadelphia 6/6/41 Ouba de Regraded Uclassified (malasses) 1880 NEW ORLEANS 160,000 bble. Besten 5/28/41 Carpus Christi . PAN MARTLAND 66,000 bbls. Boston 6/5/41 Texas City SOCONY VACUM 115,006 bbla. Providence, R.I. 6/6/41 Becoment BINKENHERAD 71,000 bblo. Boston 6/5/41 Document, Texas PAN AMOOO 97,500 bble. Pertland, Maine 6/6/41 Teams City . FUROIL 41,800 bble. Wilnington, N.C. 6/6/41 Port Arthur, Terms W.S.MILLER 74,640 this. Bear Transisco 6/5/41 n Segundo, cal. . BALIMILL 60,590 bbls. San Transisco 6/4/41 Portland, Oregan B DEGOLIA ST,500 Wels. Sex Transisco 5/4/41 San Pedro - LEX MIRAVLORES 5,574 team Sen Transisco 6/26/40 Instillist - unlergoing repairs BOLANA 62,000 bbls. See Prescises 6/6/41 Les Angeles Active LARRY DONENT 11,586 tene Ben Trunsises 3/19/41 Instilliest . undergeing repaire MONTHBILLO 60,000 bbls. Sea Francisco 8/5/41 Hemolulu Active = ALLAN JACKSON 70,000 bbls. Part Everylades, 6/6/41 Unreparted to Florida 86 ISSO CONCORD 100,000 bbls. Part Everglades, 6/5/41 do Florida FURE WORFORD 29,600 bble. Port Everglades, 6/5/41 - Florida Barge PURE TYOLINE £1,000 bbla. Port Prorglades, 6/5/41 - . Florida 6/3/41 . ALBERT E WAITS 81,583 bbls. New York Port Arthur 18 BACOI 15,000 bblo. New York Unimown - Imetive BYRON D BENSON 91,695 bbls. New York 6/3/41 Port Arthur Active C.A.CANFIELD 71,895 able. New Yesk 6/8/41 Arube - CASSIMIR 48,000 bble. New York 8/4/41 Cube - CITIES SERVICE 66,680 bble. New York 5/2/42 Part Arthur - FUEL COMOL RECO 81,800 Wals. You Tax 6/3/40 Outse . 70 U. S. TAXE TASSELS IS PORTS THE UNITED STATES (CONT.): - ? 1941 DATE OF VOYAGE FOR WHICH LOADING RIO NAME CARGO CAPACITY PRESENT LOCATION ARRIVAL OR INTENDING TO LOAD REMARKS 88 L.C.SEUBIRT 102,052 bbls. New York 5/31/41 Caripito Artive SS ISSO ARUBA 125,860 bbls. New York 5/30/41 Caripite do 83 1380 ANNAPOLIS 145,000 bble. New York 6/2/41 Corpus Christi as ISSO HOUSTON 105,415 bbls. New York 6/5/41 You Orleans - MB FLORIDA 101,120 bbls. New York 6/6/41 Part Arthur # 88 FUEL OIL 10,666 bbls. New York 6/6/41 Mayous Hook . 86 CAROCYLE 80,440 bbls. Now York 6/6/41 Besument 16 OULFHAWK 120,786 bbls. New York 6/6/41 Las Piedras # ss MAGEOLIA 124,307 bbls. New York 5/28/41 Bermont 3 SB MOBILGAS 180,500 Nols. for York 6/8/41 1 - 8S 0. M. BENNUTE 109,965 bole. New York 6/6/41 Texas City - S8 PAUL I HARNOOD 79,810 bble. Yes York 12/9/40 - Insetive - repairs 89 R. G. STENART 102,062 bbls. New York 4/18/41 - Inactive - repairs 88 8. B. HUNT 128,568 bbls. New York 6/4/41 Calverton Active 85 STANDARD ARROW 97,750 bbls. New York 5/22/41 Lockport, Miss. de 88 ULYSSES 112,996 bbls. New York 5/20/41 - Insetive - libeled 8 VIRGINIA 75,033 bbla. New York 6/5/41 Port Arthur Active If VISTULA 103,078 bbls. New York 5/16/41 Corpus Christi de 5 VICTOR N.KELLY 13,001 tone(Est.).om Angeles 6/6/41 Seettle - 88 PAT DOHENT 82,000 bbls. Los Angeles 8/8/41 Partland, Oregon . SS SAMUEL 2. BROWN 9,392 tom New Orleans 6/5/41 New York - MS NORTHERN SUN 12,958 tene New Grleens 6/5/41 Marcus Hook - ES NETON 9,778 tons New Orleans 5/5/41 Houston SS SPENCER KELLOGG 7,965 tone New Orleans 6/1/41 Havana - SS WILLIAM F.HUMPHREY 12,078 tax New Orleans 6/5/41 New York . 88 As S. HANSEN 7,060 teas Bowernt, Texas 6/5/41 wilmington, Del. - SS MOBILOIL 14,222 teme Becoment, Texas 6/6/41 New York 58 W. X. HUTTON 8,166 teas Besument, Texas 6/6/41 Carteret, 5. J. SS ESSO BOSTON 12,475 tear Beaummt, Texas 6/6/41 Carterol, N.J. SS 11. 7. ELLIOT 9,240 tom Oalveston, Texas 5/28/41 Curterel, the bujdect 55 CLINEY 9,747 tome Galveston, Texas 5/27/41 Certerel, in. 7 - Regraded Uclassified DATE OF VOYAGE FOR WHICH LOADIES IN NAME CARGO CAPACITY PRESENT LOCATION ARRIVAL OR INTENDING TO LOAD REMARKS Elegobics AMERICAN TRADER 12,945 tear Houston, Terms 6/6/41 i % Active MARKAY 17,960 Est. )Heaston, Teme 6/6/41 6/5/41 Carterot, the 1. new york DOLONITE 2 5,405 teas (Let.)Housten, Terms Carteret, N.J. - CITIES SERVICE 12,650 teas Mabile, Alabama 4/26/41 Instillined TOLEDO GULF OF VENEZUELA 9,995 teme Mobile, Alaboma 5/16/41 Port Arthur Active ENTRY Kg DAWES 8,107 tema(Not.,)Mebile, Alabom 5/5/41 Smiths Bluff, Terms PAN CARCEJNA 11,000 teme Mobile, Alabama 6/2/41 Braston, Terms 1. P. SMITH 10,104 ! Mobile, Alabem 5/31/41 Smiths Bluff, Teme 1. 1. MILLS 8,6m team Mobile, Alabum 6/3/41 Smiths Muff, Texas is such w 14,255 team Baytom, Same 5/22/41 Unreparted new gork alpea 9,566 (Est.)Pert Arthur, Texas 6/5/41 de OULFOREST 13,885 teme Port Arthur,Tems 6/3/41 New York MISSISSIPPI 10,407 tous Port Arthur,Texes 5/25/41 Unreparted CLUB 10,645 teams Part Artiver,Teme 5/6/41 Philodelphia PAN AMERICAN 14,190 teme Texas City, fune 6/6/41 Caroported Balteron PAN GEORGIA 11,692 tear Teses City, Temes 6/4/41 Unreparted TRAVERSE CITY 26,000 Dols. Chicago 6/8/41 Cloveland SOCIET 10,000 this. Chicago 6/6/41 Buy City NATME 42,500 bble. I 6/5/41 Detroit WEBCOAST 46,000 bble. Chienge 6/5/41 Superior, Visconsin RED CROWN 65,000 bblo. Chicago 6/6/41 Superior, Visoracia GENERAL MANKELAM 25,000 bble. Chicago 6/6/42 Bay City WILLIAM T.COMAN 65,000 Mis. Chicago 6/5/41 Detroit KORARD 0.SUEBERT 52,000 bbls. Chicago 6/8/41 Green By ALASKA TANDARD 10,500 bbls. alasha MS 6/6/41 Uarum alasham Parks SS HARRFFSIMCLAE 63000 uu. Halveston 6/6/01 Bastome, 24 8 ss Esso BALTIMORE 13,000 566 4/6/41 new yok SS VACOUM 90,000 fills. Malveston 4/4/41 72 Regraded Uclassifi a 1 1941 DATE OF VOYAGE FOR WHICH LOADING RIG NAME CARGO CAPACITY PRESENT LOCATION ARRIVAL OR INTENDING TO LOAD REMARKS MS ANDREA BROVIG 15,300 tons New York 5/18/41 Arube, N.W.I. Active MS ARISTOPHANES 15,400 tons New York 6/4/41 Aruba, N.W.L. Active XS ASTRELL 89,508 bbla. New York 6/1/41 United Kingdom Active us BHLLO 8,537 tone New York 4/11/41 United Kingdom Active MB BETH 9,053 tone New York 6/3/41 United Kingdom Active - DAGHILD 13,513 tons New York 5/26/41 Venezuela Active MS EVITA 8,543 tone New York 2/11/41 ... Imerive - repairs MS FENRIS 12,603 tons New York 6/4/41 United Kingdom Active MS GENION 13,576 tons New York 5/22/41 ... Insetive - repairs MB GLITTRE 9,500 tons New York 6/3/41 United Kingdom Active MB HAAKON HAUAN 80,250 bbls. New York 5/9/41 Halifax Active MS HAVPRINS 11,595 tone New York 5/3/41 United Kingdom Active MS HOROH SCOUT 12,499 tons New York 5/28/41 United Eingdom Active NS INNEROY 11,460 tone New York 5/5/41 United Kingdom Active MS JERNY 5,042 tens New York 4/9/41 ... Imestive - repairs MS KAIA KNUDSEN 13,064 tons New York 5/24/41 Halifax Active MS KONGSOAARD 15,144 toms New York 6/3/41 United Kingdom Active SS MELINE 80,145 bbla. New York 6/5/42 Arriba Active SS MIRLO 9,311 toma New York 5/17/41 Aruba Active MS SIR JAMES CLARK ROSS 121,800 bole. New York 6/8/41 Aruba Active MS SANDAR 11,150 time New York 5/10/41 United Kingdom Active IS SOLSTAD 7,665 tens New York 4/11/41 United Kingdom Insetive MS SPINATOR 9,562 tons New York 5/15/41 United Kingdom Active - repairs MS THORSHOV 12,035 toms New York 6/4/41 United Kingdom Active MS VARANGER 18,760 tons New York 3/6/41 United Eingless Active . repaire NO GALLIA 15,772 tons Galveston 5/29/41 England Active MS BRALANTA 13,891 toma Les Angeles 3/16/41 ... Insetive MS THOREILD 15,625 tons Les Angeles 4/17/42 ... Imetive MS SALAMIS 13,187 tone Philadelphia 6/5/21 United Kingdom Active 73 CONFIDENTIAL Regraded Uclassified DATE OF VOTAGE FOR WHICH LOADING KIG NAME CARGO CAPACITY PRESENT LOCATION ARRIVAL OR TO LOAD REMARKS - HOSON GIANT 115,000 Mis. Philodolyhia c/c/o Mexico Active M INKLIN 92,000 bbla. Les Angeles 6/5/41 Tecepills Active MS SCOTIA 86,000 bbla. Les Agains 6/6/42 - - Active + to uning repairs - PETER II 9,125 teas Departed Sta Jum, Peley 6/6/42, for Mayagers, 1. 2, 74 Regraded Uclassit BRITISH TANK VESSELS IN PORTY OF THE UNITED STATES am 7 1941 CARGO CAPACITY IN TOMS EXCLUD- DATE OF VOYAGE FOR WHICH LOADING Rm WANT ING HIKERS PRESENT LOCATION ARRIVAL OR INTENDING TO LOAD REMARKS as ANGLO NORSE 79,333 bble. New York, 1. T. 4/21/41 United Kingdom Active z BRITISH CONSUL 02,268 bhla. New York, N. I. 5/17/41 United Kingdon $5 BRITISH WORKMAN 82,268 bble. New York, 1. I. 3/17/41 United Kingdom XII BULLMOOTH 82,696 bblo. New York, N. I. 5/1/42 United Kingdom XS CHARLES 1 METER 120,894 bble. New York, 1. I. 4/8/41 United Kingdon us DARINA 9,800 time for York, 3. I. 5/30/42 United Kingdom us DAVILA 11,000 team New York, N. T. 5/24/41 United Kingdom XS DOLABELLA 10,500 tax in York, N. To 6/4/41 United Kingdom SS EXETORIA (whole eil 70,900 bhis. la York, N. I. 6/6/41 United Kingles factory) MS HOME SHELL 104,819 bhils, New York, N. To 6/2/41 United Kinglen NS INVERILEN 92,750 bhls. in York, N. 1. 5/29/41 United Eingion Active Active Ashive Active Ashive Active Active Active MS MIRALDA 11,000 team for York, 1. L. 5/22/41 United Kingdom MS PATELLA 90,506 bble. See York, 1. 1. 5/27/41 United Kingdom 85 PEDER BOGEN 71,403 bble. New York, 1. To 6/1/41 United Kingdom 38 POLAR CHIEF (Carrying 45,366 bbla. Ser York, N. T. 4/17/41 United Kingdam Active-Libeled whole oil) 35 SHIRVAN 67,479 bble. for York, N. 1. 4/9/41 United Kingdom istive 33 SOURABATA 8,005 tear for York, N. I. 6/6/41 United Kingdom Active Its TRICULA 9,000 bble. for York, N. Y. 4/30/41 United Kingdom Active-Libaled MS VANCOLITE 132,238 bbls. New York, 1. 1. 5/18/41 Caripito Active SS VOCO 6,142 tons Pealsbero, N. J. 6/4/41 United Kingdom Active MS ATHELVIKING 13,709 tase Part Everglades 6/4/41 Georgetown, B.G. Active SS BRITISH PROGRESS 6,113 tens Bultimore, Md, 4/11/41 United Kingdom Active 35 LANSING 7,454 teas Sen Francisco 10/26/38 Immobilized MS ATHEL CROWN 141,000 bbls. Philadelphia 6/6/41 Cube Active molasses CONFIDENTIAL 75 Regraded Uclassified - 7 1841 CARGO CAPACITY IN TONS EXCLUD- DATE OF VOYAGE FOR WHICH LOADING RIG NAME ING BUNKERS PRESENT LOCATION ARRIVAL OR INTENDING TO LOAD REMARKS 29 NORVIK 13,374 tons Boston, Mass. 3/15/41 Liverpool Active 88 ALGONQUIN 74,751 bbls. New York, N. Y. 12/2/40 Inactive MS PENELOPE 12,915 tons Now York, N. Y. 5/29/41 Caripito Active MS PHOEBUS 13,360 tons New York, N. Y. 6/3/41 Aruba Active SS TORBA LINDA 11,150 tons" New York, No I. 3/31/41 Texas City Active MS J. H. SENIOR 17,620 tons Baltimore, lid. 5/28/41 South America. Now in Active drydock. SS BEACONOIL 9,540 tone Baltimore, Md. 6/3/41 Venezuela Active MS GOOD GULF 9,928 tons Port Arthur, Tex, 11/7/40 Immobilized MS BELGIAN GULF 10,003 tons Port Arthur, Tex. 11/7/40 Immobilized us LUBRAFOL 9,877 tons Port Arthur, Tex. 11/7/40 Immobilized MS SANTA HELENA 7,470 tons* Port Arthur, Tax, 5/21/41 Ferrol, Spain Active MS SPIDOLEINE 7,200 tons Port Arthur, Tex. 11/9/40 Imegbilized SS POLARINE 5,675 tens San Francisco 1/25/37 Immobilised MS THALIA 13,100 tone Los Angeles 3/14/41 Tecopilla Active SS GEORGE G. HENRY 10,102 tons Honolulu 6/6/41 Menile Active-Due Honolulu on date indicated *Estinated CONFIDENTIAL 92 Regraded Uclassified CARGO CAPACITY DATE OF VOTAGE FOR WHICH LOADING RIG NAME IN TONS EXCLUD- PRESENT LOCATION ARRIVAL OR INTENDING TO LOAD REMARKS ING BUNKERS DANISH - - 12,599 Bosten, Mass. 4/9/40 In custody of U.S. MS GAROLINE 11,825 Jacksonville 4/25/40 In custedy of U.S. GERMAN = PAULINE FRIEDRICH 6,195 Beston 9/3/49 In curredy of v.s. TTALIAN as BRENSERO 7,750 New York 5/30/40 In oursely of v.s. ss COLORADO 6,900 Galveston 5/24/41 In oustody of U.S. SPANIER MS CAMPSCHE 7,453 Port Arthur,Tex. 5/24/41 Unreported Active MS CAMPERO 7,453 Port Arthur, Tex 6/5/41 Bardelona, Spain Active MB CAMPONAKES 10,024 (zet.) Port Arthur, Tex. 6/5/41 Bilbao, Spain Active TOTAL MS msso BELOTUM 14,600 Boston 6/4/42 Las Piedras, Yes. Active MI PRESIDENT FRANOQUI 7,000 New York 5/31/42 United Kingdom Active AMOUNT ss LOS POZOS 7,358 Albany, N.Y. 6/2/41 Aruba, N.W.I. Active KETHEELANDS M OGANA 8,472 New York 4/24/41 United Kingdom Active: MD MAMURA 12,645 New York 4/8/41 United Kingdom Active CONFIDENTIAL 22 Regraded Uclassifi CARGO CAPACITY DATE OF VOYAGE FOR WHICH LOADING RIO NAME IN TONS EXCLUD- PRESENT LOCATION ARRIVAL OR INTENDING TO LOAD REMARKS INC BUNKERS MEXICAN 23 JUAN CASIANO Unlisted Galveston 3/24/41 Mexico Immobilised ES TAMPICO 9,667 (Est.) Houston 2/28/41 Tempico, Mex. Immebilised unknown SAJA dEORO 63978 aller Halucaton 4/6/41 unreported acture - NS bera 211,890 bbls. Philadelphia 6/6/41 Unknown Active as MEROPE 9,541 New York 5/23/41 Insetive; U.S.guards - beard as C.I.P. 10,228 (Est.) st. Thomas,V.I. 6/4/41 Insetive; U.S.guards 8 board MB TOURAINE 7,377 New Orleans 7/6/40 Inactive; U.S.guards - beard PHILLIPINE 88 MINDAMAO 51,000 bble. Lee Angeles 5/30/41 Manila Active JAPANESE 38 TOMAN HARU NO. 2 122,000 able. Lee Angeles 6/5/41 Osalm Active CONFIDENTIAL 78 Regraded Uclassified 79 June 9, 1941 Memorandum for Mr. Kuhn: The Secretary would like to have you send future copies of Mr. Barth's memo to Ambassador Winant at the Embassy in London. I understand the Ambassador received the current one. N.M. Chauncey Mrs. 1/17/41- Brown reported this memo was being sent to Amt. Winant. Regraded Uclassified 80 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE June 7, 1941 TO Ferdinand Kuhn, Jr. FROM Helen Dallas DEFENSE SAVINGS: A UNITED FRONT APPEARS Whatever the conflicts between capital and capital, labor and labor, and capital and labor, there seems to be complete agreement about the Defense Savings program. Sections of the public which are still at odds over the Administration's economic policies make common cause in their advocacy of Defense Bonds and Stamps. Thus the non-controversial course steered by the Treasury in its Defense Savings program has succeeded in winning and spreading good will. Divergent groups now back the bond campaign as a public demonstration of their patriotism, no matter what their other quarrels with the Government may be. In this matter they are rivals only in the sense that each seems to try to outdo the other in cooperating with the program. As organized labor seeks to maintain its position with the public, its leaders have issued statements and turned over union funds for the purchase of Defense Savings Bonds. President William Green was the first to say publicly that he thought the Regraded Uclassified 81 - 2 - bonds were a good thing, and he has been followed by many of his subordinates. This week President Murray of the C. I. 0. urged men receiving $170,000 in back pay for discriminatory discharges to buy as many United States bonds as they could with the money "as a token of faith in the American democracy which has made that back pay possible." At the same time, bankers have continued to support the program through paid advertisements, resolutions at banking conventions, and statements by leading bankers. Recently they have won much editorial praise for this activity. They have been praised for helping in a cause which, incidentally, benefits them by halting the flow of deposits into savings accounts already bulging with interest-bearing money. President W. Elbridge Brown of the Pennsylvania Bankers Association this week advised his fellow bankers to counsel prospective deposi- tors not to put their money into banks but to buy defense bonds instead. He then declared that "should the deposits be taken by the banks instead of being used for bonds, it would only in- crease the amount of excessive idle cash and reserves." With the banks as with labor, the Defense Bond campaign has helped groups which are poles apart on most other issues to get together on a national program of importance. Regraded Uclassified 82 - 3 - Progress in the Field Even before Secretary Morgenthau's speech announcing the sale of more than $400,000,000 in bonds during May, there had been a spreading over the country of the more optimistic editorial and financial comment that was reported last week in the New York papers. Big-circulation newspapers such as the Boston Post and the Philadelphia Bulletin have editorialized that the Defense Bond program has been misunderstood by papers that attempted to criticize it earlier, and that sales are good and steady. First editorial reactions to the Secretary's speech agree with him that the first month's results are a "wonderful start." The only critical note was again sounded by Congressman Crawford, who followed the Secretary's statement with another warning that defense sales are lagging and that the Treasury is misrepresenting the true state of affairs to the people of the nation. Financial papers warn that the public must not expect too much from the Defense Bond sales in June, because some subscribers undoubtedly purchased their full yearly quota in May. New bond- selling ideas appearing in the press suggest, however, that at least the sales of Series E bonds may be increased by new devices. Typical newspaper stories of the week are concerned with Regraded Uclassified 83 - 4 - "Dividends in Defense Bonds," "$1,000 a week in Prizes Given in Defense Savings Bonds," "Defense Stamps to be Given Employes of Oil Company," and "Mail Carriers Now Will Sell Defense Stamps." Certainly there is no sign in the newspapers or magazines that public interest is slackening. 84 FIELD ORGANIZATION NEWS LETTER DEFENSE SAVINGS STAFF I U. S. TREASURY DEPARTMENT WASHINGTON, D. C. JUNE 7, 1941 NO. 3 TO THE FIELD STAFF: A resume of the initial month for Defense Savings securities is very encouraging. Total sales were far more than reasonable expectations indicated. Primarily, we are interested in the numbers of buyers. Our task is to so well educate every man, woman, and child, that there will be millions of systematic purchasers of Defense Savings securities. This work is just beginning. The month of May was marked by a fine start, as the following figures will demonstrate: TOTAL NUMBER OF BONDS SOLD 1,134,000 These bonds were divided: Series E 991,000 Series F 24,000 Series C 119,000 TOTAL NULBER OF STALPS SOLD 10,172,000 The denominations of these stamps: 10¢ 2,598,000 25$ 5,501,000 50$ 1,240,000 $1.00 717,000 $5.00 116,000 TOTAL VOLUME OF ALL SALES 2423,589,485.25 The above figures show that Americans invested in more than eleven million Defense Savings securities. It is impossible to give the number of individual purchasers at this time. It is reasonable to assume that the number is a substantial one. We can feel assured that We are presenting a most attractive set of securities; that thus far a portion of the public has approved our merchandise and that millions of potential buyers are available to our efforts. Sincerely yours, GALE 7. JOHNSTON Field Director, Defense Savings Staff Regraded Uclassified 85 NEW STATE ADMINISTRATORS Designation of 11 State Administrators, announced by Secretary Morgenthau on June 3, brings to 22 the number of states in which divisions of the Defense Savings Staff are being set up, The first eleven State Administrators were presented to readers of this NEWS LETTER in issue Number 1, The following men have just accepted this important responsibility in their respective states: ARKANSAS MAINE Roy G. Paschal Clinton A. Clauson Collector of Internal Revenue Collector of Internal Revenue Little Rock Augusta FLORIDA NEW JERSEY John L. Fahs John E. Manning Collector of Internal Revenue Collector of Internal Revenue Jacksonville Newark GEORGIA OKLAHOMA Marion H. Allen H. Clifford Jones Collector of Internal Revenue Collector of Internal Revenue Atlanta Oklahoma City HAWAII TENNESSEE Fred H. Kanne G Lipe Henslee Collector of Internal Revenue Collector of Internal Revenue Honolulu Nashville INDIANA VERMONT Will H. Smith Fred C. Martin Collector of Internal Revenue Collector of Internal Revenue Indianapolis Burlington WEST VIRGINIA F. Roy Yoke Collector of Internal Revenue Parkersburg FROM OUR SENTINEL IN THE CARIBBEAN Cabo Rojo, Puerto Rico-Defense Savings Program was launched here by Postmaster Irizarry, Mayor Colberg, and Selective Service Board Chairman Delgado with stirring proclamations calling upon all citizens of Cabo Rojo (population 5,303) to "demonstrate our loyalty and patriotism." Senor Delgado called for: = the unanimous cooperation of all Sons of the Western Continent." Mayor Colberg, urging all to buy Defense Savings Bonds, sald: "Our great President, Franklin D. Roosevelt, has assumed the leadership in the defense of our hemisphere Ho issues a call to every citizen cherishing his liberties and traditional rights to cooporate actively in the great work which must be realized in all haste." Regraded Uclassified 86 MISSOURI Campaign Gets Underway In 131 Missouri cities local committees for Defense Savings are now functioning. Each city committee member is to serve as the chairman of a subcommittee to carry the Defense Savings message to = particular group. More than 200 prominent citizens are serving on the Defense Savings Committee for Metropolitan St. Louis. Honorary Chairman is Mayor William Dee Becker. Thomas N. Dysart is the General Chairman; Dr. Homer % Anderson, Vice Chairman; and E. 7. Montel, Secretary. The Committee includes the Mayors of All municipalities in St. Louis County. Civic Service Luncheon Clubs in the state have been asked to devote attention to the Defense Savings Program and a suggested five minute address has been sent to their presidents from the state head-_ quarters of the Defense Savings Staff. The Missouri State Federation of Labor at ita 50th annual convention, May 21st, pledged unanimous support of the Defense Savings Program. The Ninth District of the American Legion, in convention, adopted a resolution endorsing the Defense Savings Program. One hundred of the largest industries of the state are displaying Defense Savings Posters in their plants. State Administrator Dan Nee and Deputy State Administrator Earl H. Shackelford are traveling more than 1800 miles a week in connection with the Defense Savings Program. Last week, they attended five patriotic rellies. **** MISSOURI CONCERNS REPORT SYSTEMATIC SAVINGS PLANS The following large business organizations in Missouri report that their employees will be able to purchase Defense Savings Bonds through payroll allotments: Southwestern Bell Telephone Company All member banks of the St. Louis Clearing House Association Sheffield Steel Company Scullin Steel Company Terminal Railroad Association of St, Louis St. Louis, Mo.--A business concern here has awarded a Defense Sevings Bond to each of its employees. The bonds were delivered with a letter strossing the nood for petriotism and national unity and urging that all employees undertake to purchase Defense Sevings Bonds regularly by buying Defense Savings Stamps. To make this method of seving entirely clear, the company presented ench employee with en glbum in which en initial Dufense Savings Stamp had been attached. Regraded Uclassified 87 TEXAS Riding Hard! State Administrator Frank Scofield plans to meet with every county and Congressional District Defense Savings Committee in Texas as fast as time and the size of the state permit. The 15th Congressional District Defense Savings Committee met May 20 in Laredo, W. R. Montgomery of Edinburg, District Committee Chairman, presided, and John Shary of Mission, member of the State Committee, and Frank Scofield, State Administrator, were present. On May 21, Administrator Scofield met in Fort Worth with the Tarrant County Committee of which Lewell Lafferty is the chairman. He also addressed a special luncheon meeting of the Fort Worth Chamber of Commerce. Amon G. Carter, Fort Worth publisher and member of the State Defense Savings Committee, and Judge B. B. Stone, chairman of the Committee for the 12th Congressional District, also addressed this large gathering. TEXAS FAVORS SALARY SAVINGS PLANS In a. letter to the more than 10,000 employees of the Texas and Pacific Railway Company and affiliated companies, J. L. Lancaster, President, announced that his organization will provide facilities for regular and convenient purchase of Defense Savings Bonds: "Dvery employee desiring to set aside from salary or wages a regular monthly amount for the purchase of Defense Savings Bonds may do so The Company will deposit the monthly deduction in a special account and each time the deducted funds of a particular employee reach an amount sufficient to purchase a bond, one will be bought in his name and sent to him by registered mail." I - - Here are a few of the other concerns in Texas which are making it possible for their employees to purchase Defense Savings Bonds through salary allotment plans: MISSION Southwestern Land Company Citizens State Bank of Donna Mission Times Granjeno Development Company United Land Company Texas Citrus Fruit Growers United Irrigation Company Exchange South Texas mortgage Loan Company Shary Products Company First State Bank & Trust Company Southwestern Drug Corporation FORT WORTH Leonard Brothers First National Bank Fort Worth National Bank Chamber of Commerce Woolworth W. C. Stripling & Sons Southwestern Bell Telephone WACO Universal Atlas Cement Company Texrs Life Insurance Company Service Mutual Insurance Company Frank L. Wilcox, C.P.A. Wm. Cameron and Company J. S. Barnett and Company L. M. Kizer Claim Service Stratton Stricker Furniture Co. Regraded Uclassified 88 PROGRAM GETS UNDER WAY IN NORTHWEST Miss Marie Young, President of the Washington State Federation of Business and Professional Women and a member of the State Defense Savings Conmittee, and Mrs. Pearl A. Wanamaker, Washington State Superintendent of Public Instruction, participated in & special tri-state radio broad- cast on June 4. On June 11 Governor Arthur B. Langlie, Honorary Chairman of the Washington Defense Savings Committee, will deliver a radio address on the Program. 200 of the lending retailers in Senttle met recently with State Administrator Saul Heas and Deputy State Administrator William C. H. Lewis to work out plans for placing Defense Sevings Stamps on sale in all stores throughout the State. Dividends Paid in Defense Savings Bonds. Louis K. Lear, President of the Queen City Brondcasting Company of Seattle, has announced that future dividends would be paid in Dofense Savings Bonds (Series F) and Stamps. Several other companies are considering taking the same action. Stamps for Home Runs. Charles E. Sullivan, Soattle florist who for some time has been rewarding Seattle baseball players with a $10 bill for each home run, is now making the reward in Defense Savings Stamps. Gifts for Graduates. Defense Savings Bonds and Stamps make most appropriate gifts, Mrs. Pearl Wanamaker, State Superintendent of Public Instruction, has reminded parents and friends of gradunting students. Newspaper Fill Ins. More than 30,000,000 reminders to "Buy Defenso Savings Bonds," "Buy Defense Savings Stamps" will appear each week in Seattle and Tacona newspapers. Newspapers in many other Washington cities are completing their columns by running these lines, ***** Monrovia, Calif.City Council instructed City Treasurer J. K. Petrie to purchase $2500 worth of Defense Savings Bonds for the city's emergency fund. Hawaii-Tho United Cane Planters Association of Hawaii reports to Socretary Morgenthau that it is urging its 300 members tn "Buy Defense Savings Bonds." EXPENDITURES FOR NATIONAL DEFENSE "More than five billion dollars was spent (for national dofense) from Juno 1, 1940 to May 1 of this year," reports Robert W. Horton, Director of Information, Office for Ener- gency Management. "That seems for a moment like a lot of noney," continues Mr. Horton. "It is, but it is nothing when compared to the total effort required if our dofense organization is to be carried out even on the schedule now loid down. "The second year's cash disbursements must be close to five times 5 billion dollars," Regraded Uclassified 89 ACTIVITIES IN NEW ENGLAND GOVERNOR SALTONSTALL HEADS MASSACHUSETTS COMMITTEE Governor Leverett Saltonstall is the Honorary Chairman of the Defense Savings Committee for the Commonwealth of Massachusetts. Women of the Legion Auxiliary in Massechusetts are informed of their role in the Defense Savings Program in an article by State Administrator Deniel J. Doherty in the current issue of the Massachu- setts Auxiliare. The more than 150 councils of the Knights of Columbus in Messacho- setts have been urged to cooperate with the Defense Sevings Program by their State Deputy, who suggests that each Grand Knight appoint a committee to stimulate active inter st in the Defense Sevings Program and that the chairmen of these committees cooperate with the Defense Savings Committees of their respective towns. *** CONNECTICUT The Hartford Defense Savings Committee is arranging a big dinner meeting which will be attended by representatives of all local business concerns in which employees are purchasing Defense Savings Bonds by the salary allotment method. Bridgeport--The City of Bridgeport is buying $10,000 worth of Defense Savings Bonds for its Insurance Sinking Fund, City Clerk Fred Schwarzkopf has announced. Bridgeport--The United Young Men's Hobrew Assn. here purchased 25 $100 Defense Savings Bonds. Hartford--1,000 Boy Scouts carried Defense Sevings Bond posters in the Memorial Day parade. New Britein--A large department store will distribute Defense Savings Bond leaflets with the monthly statements to its 5,000 customers. New Haven-The Harry R. Bartlett Post of the American Legion has invested its entire sevings in Defense Sovings Bonds. Stratford--Trustees of the Police and Fire Pension Fund have voted to purchase $15,000 worth of Defense Savings Bonds. #: Pewtucket, R. I.--A group of 14 boys and 3 girls who deliver the local newspaper are undertsking to buy a 25 cent Defense Savings Stamp each week. The dealer from whom they get their papers has agreed to stock a supply of these stamps Regraded Uclassified MICHIGAN 90 Program Develops; School Children Active Public end perochial schools in more than 100 Michigan communities celebrated Monday, June 2 88 Defense Sevings Stamp Day. "School children carry the Defense Sevings message into their homes," Frank N. Isbey, Chairman of the Michigan Committee points out, "Through their enthusisam they erouse an interest in their older brothers, sisters and perents." SCHOOL CHILDREN have taken to the Defense Savings Program in 8 big way: More than two hundred thousand Detroit school children purchased stamps the first day they went on sale in the schools. Many schools have established "Stamp Banks" built end decorated by the school children, where Defense Savings Stamps cen be purchased. Thomas Jefferson School of Forndale, Michigan was the first school in the state to report that every pupil had invested in Defense Savings Stemps. Pupils who could not afford to buy stamps have been given regular "chores" by their teachers in order that they can carn the price of at least one 10-cent stamp each week. Many schools will festure Defense Savings in perades, etc. on Flag Day, June 14, Arithmotic toschers are using facts ebout Defense Savings Bonds in teaching sbout interest, thrift and savings. TO HOLD THE INTEREST of school children during the summer, the Michigan Committoo 1s encouraging the organization of essay, slogen and poster contests in every community, these contests to be open only to students who purchase Defense Savings Stamps throughout the vocation period. DETROIT RETAILERS PLEDGE SUPPORT The Retail Merchants Accociation of Detroit has unanimously adopted a resolution G brsing the Defense Sevings Program and calling upon retailers to make it possible for their employees to purchase Defense Sovings Bonds through salary allotments. FARM COMMITTEE FORMED Ruben V. Gunn, hoad of ngriculturol extension work in Michigan, Art Jorrett, Secretary of the Michigan Been Growers Association and Victor Bielinski of the Michigan Form Bureau Federation, make up e committee of three to help Leo Card, Agriculture's representative on the Michigan Defonse Savings Committee, carry the messern of Defense Sevings to formers throughout the state. Regraded Uclassified 7 POINTERS ON SALARY ALLOTMENT PLANS 91 The following comments and suggestions on salary allotment plans will be of vital interest to all State Administrators, Deputy Adminis- trators and the members of State Defense Savings Committees: A. The adoption of salary allotment plans for the purchase of Defense Savings Bonds is greatly to be desired, because they 1. Afford workers a convenient, regular, automatic method of saving money and purchasing bonds on the installment or budget plan. 2. Furnish a person with experience to purchase and register the bonds for the worker. 3. Save the time of both employee and employer. 4. Only one sale has to be made -- the initial one, 5. Make for continuous buying and saving. B. Bear in mind that: 1. The plan can be applied and adopted by any reputable business concern or industry employing people. 2. A concern does not have to qualify as an issuing agency or receive permission from the Treasury Department. 3. All that is necessary is to have the head of the business concorn or industry agree to install the plan for those employees who desire to use it. C. Here are the steps to be taken: 1, Get out suitable announcement and salary allotment order. 2. Put. money while accumulating, in a separate bank account to be held in trust for the employees to be used only to purchase bonds as directed. 3. As soon as sufficient money has accumulated to the credit of any particular employee to buy & bond of the donomination he has requested, send a check to a Federal Reserve Bank, qualified fiscal agent, post office, or U. S. Treasury with necessary information for registering and mailing bond, and bond will be mailed directly tobuyerby registered mail. In explaining these plans to labor, in working out the details of particular plans in cooporation with employees and in getting employees to request employers to install allotment systems, the representatives of labor on state and local Defense Savings Committees will be of great assistance to the program. Descriptions of plans now in use by national concerns, copies of letters announcing the plan to employees, and samples of salary allotment order cards are available through the Salary Allotment Division, Defense Savings Staff, Washington, D. C. and through the offices of the State Administrators. Regraded Uclassified 32 SYSTEMATIC SAVINGS PLANS U. S. Treasury Provides Plan for Own Employees A plan for facilitating the purchase by Treasury employees of Defense Savings Bonds has been put into operation. Under this plan "group agents" present Defense Savings information to their fellow employees, secure pledges, and act as their agents in purchasing Defense Savings Bonds or Stamps at regular intervals. The able and popular Charles Schoeneman, Special Staff Assistant, was placed in charge of this program by Secretary Morgenthau. He has selected key men in every department, who are naming the "group agents" and enthusiastically backing their good efforts. All employees in the Treasury are being given an opportunity to sign a purchase pledge card which reads in part 25 follows: "I hereby agree to pay $ each pay period fur the purchase of Defense Savings Bonds (or Defense Savings Stamps) through the Defense Savings Agent, designated for my group, or through other available fscilities (post office or bank)". A complete description of this purchase plan will be made avail- shie upon request. # Bank Depositors Authorize Periodic Drafts The Riverside Trust Company of Hartford, Conn., has sent a letter to all of its depositors calling attention to its depositor purchase plan for Defense Savings Bonds. Here is the full text of the authorization used by the Riverside Trust Company in connection with this plan: , 1941 Riverside Trust Company Hartford, Connecticut Until further notice, I authorize you to charge my Account on the day of and on the day of each month thereafter, the sum of 0 and to pur- chase for mo a Defense Savings Bond having a maturity value of 3 . Please have the bonds registered as follows: Name Hold for my account Address until called for, Signature of Purchaser e " # M BANK BLOTTER The National City Bank of New York is distributing en attractive no, write and blue blotter advertising Defenat Savings Bonds. The Nrm and at of its 70 New York City branches Tra now belling these Regraded Uclassified 93 BANKS AND SAVINGS INSTITUTIONS PLAY IMPORTANT ROLE Savings and Loan Associations Cooperate More than 1200 savings and loan and building and loan associations have qualified as issuing agencies for Defense Savings Bonds. Several thousand other associations are expected to apply for certification as issuing agents now that it is possible for non-members as well as mem- hers of the Federal Home Loan Bank System to sell Serice E bonds directly. Vutuals Collect Sales Data The National Association of Mutual Savings Banka has asked member banks to report regularly to the Association headquarters their sales of Defense Savings Bonds. These reports will enable the Association to know the volume of sales effected by mutual savings banke throughout the country. Virginia Bank Sponsors Defense Savings Stamp Day Schools dismissed classes a half-hour carly and 2,023 school children from Danville and Pittsylvania, Virginia, brought their pennies, dimes and dollars to the American National Bank and Trust Company and invested in $3,377.75 worth of Defense Savings Bonds and Stamps. This was the reception which school children of Danville gave to the bank-soonsored Stamp Day. The bank made a gala occasion of this visit of the school children, served ice cream and soft drinks, and gave all its visitors pencils in pitriotic colors and ticketo to = moving picture. Tha bank is also awarding prizes to the classes which have the highest percentage of representation among the bond and stamp buyers. American Bankers Association Buys Defense Savings Bonds When ordinary people buy bonds, it is evidence that there is a good investment. When bankers advise people to buy Defense Savings Bonds, it is still stronger evidence that it is a good investment. But when bankers invest their own funds in Defense Savings Bonds, that's something. W. Espey Albig, deputy manager of the American Bankers Association, writes: "So that you may know we are cooperating, may I say that the Investment Committee of our Foundation yesterday ordered $50,000 invested. A philanthropic organisation of which I am treasurer recommended a similar purchase a few days ago." Advice From Banker Bradshaw of Oklahoma Buy less and invest in Government bonds. That is the advice of Banker A. E. Bradshaw of Tulsa on how to finance the defense program. Mr. Bradshaw thus endorsed the Defense Savings Program before a recent meeting of the Oklahoma Bankers Association. - 10 - Regraded Uclassified 94 IMPLUENTIAL NATIONAL ORGANIZATIONS BACK PROGRAM General Federation of Women's Clubs The nowsreels this past week carried the talk given by Mro. John L. Whitehurst, newly-elected National President, at the General Federation's Golden Jubilee Convention in Atlantic City, in which she urges all the 2,000,000 members of the Federation's 15,600 clubs to buy Defense Savings Bonds and Stamps. Perford Powel, Information Director, Defense Savings Staff, addressing the General Federation's convention on behalf of the Defense Savings Program, urged the club women to familiarize themselves with Defense Savings Bonds and Stamps and to assume lendership in explaining the program to other women, to zen, and to children. "Ye shall not be satisfied until every man, woman, boy, and girl in America is adding at lenst one bond or stamp a month to the Nation's wealth end to their onn," said Mr. Powel, "Inst is the goal of this cruside." Support of the program by Chamber of Commerce executives thoughout the country has been pledged by the Board of Directors of the National Association of Comsercial Organization Secretaries. Members of the International Ladies Garment Workers Union have pledged themselves to purchase at least $500,000 worth of Defense Savings Bonds according to Dovid Dubinsky, President. The union has 265,000 members. The Jewish Wolfare Board with more then 300 local affiliates has endorsed the Defense Savings Program and urged Y X H A's and other member agencies to premote the sale of Defense Savings Bonds and Stamps. 200 delegates from 17 states to nstional quadrennial convention of the Ukranian Workingmon's Association voted to purchase $50,000 of Dafense Savings Bonds. Addressing the National Retail Dry Goods Association in Chicago, Herford Powel, Information Director, Defense Savings Staff, thanked department Program. stores for the cooperstion which they have extended to the Defense Savings "We are pleased, of course to have stores seil Dofense Savings Stemps," Mr. Powel said, "These, with the albuma given ENEY with them, are stepping stones to the ownership of Defense Savings Bonda. le would like to see you introducing them to children, now that the schools have closed "Perhaps in the long off-sesson for Santa Claus in your toy departments, you might introduce the equally symbolic figure of Uncle Sem "Perhaps PM importent National Defense window, displaying not only Defonse Savings Bonds end Stamps but also sche of the hundredo of thousands of interesting items they are buying for the tray, Navy and Marino Corps, would add to the traffic in your store "Porhngs you could pay prizos in Defense Sevingo Bonds "Terhaps, as les metter of good public relations, you could investigate WAYS of letting your customers buy their bonds from you," 11 Regraded Uclassified 95 RADIO Famous movie stars are plugging Defense Savings Bonds and Stamps in one-minute recordings now in use throughout the country. Fred Waring and his Pennsylvanians have introduced and featured the new song, "Dollars for Defense," il in these times, invest your dollars and your dimes General Foods has set up a schedule for the rotation of announce- ments about Defense Savings Bonds and Stamps on eleven of its programs. Makers of Bayer Aspirin, Anacin, Kolynos Toothpaste, Dr. Lyons Tooth Powder, Phillips Milk of Magnesia, Louis Phillipe "Angelus" Commetics and Old English Wax will make regular announcements on the popular serial programs which they sponsor, according to their agency, Blackett, Sample and Hummert, Inc. The patriotic cooperation of these large concerns is deeply appreciated by the Defense Savings Staff. Business Firms Holp Employees to Begin Saving Tido Water Associated Oil Company has purchased $1 Defense Savings Stamps for each of its 10,019 employees. The stamps were presented in the albuns which hold 75 of these stamps for the purchase of the $100 Defense Savings Bond. The Company announced that this is the first step in its campaign to raiso one million dollars for National Defense among company employees. & suggestion that employees put their increased earnings in Defense Savings Bonds and Stamps was made by Genoral Time Instruments Corporation of La Salle, Illinois, when it announced increases of 7% in rates of pay. To give employees an added incontive to hold bonds to maturity, the corpora- tion has promised to pay employees who hold them for the full ten year term a bonus of 10% of the cost of the bond. The Ever Roady Label Corporation told its employees the company would pay 20 por cent toward the purchase price of a Defonse Savings Bond and would finance the bolance on a 30-payment plan. Thus, an employee subscribing to a $25 bond would start off with $3.75 (20% of the 18.75 purchase price) and pay the balance at the rate of 50 cents a wook. All of the firm's 170 employees accepted the offer and subscribed for 36,000 worth of Defense Savings Bonds. ***** Standard Brands, Inc., food manufacturers and distribut- ors with more than 10,000 employoes, have placed Defense Savings Stamps on sale at its homo office and in all of its division offices and plants throughout the country. Managers have been authorized to purchase and koop on hand a supply of stamps of all donominations and to cn- courage these salus in every possible my. The Now York City Housing Authority notified its 10,783 tonant familios that th ir occurity doposits would be invested in Defonse Sevings Bonds. Chairman Cortrd Swope declared that this action would aid National Defense and in addition, obtain interest for the tenants. - 12 - Regraded Uclassified UNITED STATES SAVINGS BONDS AND SAVINGS STAIPS Daily Sales - June 1941 On Basis of Issue Price (In thousands of dollars) Post Office Date All Bond Sales Bond Sales Bank Bond Sales Savings Stamps Total Series I Series F Series G Series E Total Series E Series F Series G June 1941 2 $ 12,844 $ 5.771 $ 1,097 $ 5.976 $ 2,333 $ 10,511 $ 3,437 $ 1,097 $ 5.976 $ 148 3 11,785 4,113 1,541 6,133 971 10,817 3,143 1,541 6,133 149 4 18,998 4,817 1,265 12,916 1,707 17,291 3,110 1,265 12,916 119 5 14,457 4,614 1,193 8,681 1,813 12,674 2,800 1,193 8,681 111 6 11,252 4,736 1,090 5,425 2,283 8,969 2,453 1,090 5,425 130 Total $69,369 $24,051 $6,186 $39,132 $9,108 $60,261 $14,944 $6,186 $39,132 657 Treasury Department, Division of Research and Statistics. June 7, 1941. Source: Division of Savings Bonds. Figures shown as post office sales of Series E bonds are deposits by postmanters with the Treasurer of the United States. The bank figures are taken from Federal Reserve Bank reports and include their own sales. Stamp figures are estimated by the Post Office Department. Note: Figures have been rounded to nearest thousand and will not necessarily add to totals. 96 Regraded Uclassified TREASURY DEPARTMENT INTER-OFFICE COMMUNICATION DATE June 7. 1941 TO Secretary Morgenthau FROM Mr. Cochran CONFIDENTIAL Registered sterling transactions of the reporting banks were as follows: Sold to commercial concerns £31,000 Purchased from commercial concerns £ 8,000 of the £31,000 solá to commercial concerns, £10,000 vas bought by e Mexican firs, Open market sterling Was quoted at 4.03-1/2. and there were no reported transactione. The Cubar peso, after opening at the current high of 5/8% discount, moved Iff to et closing discount of 13/16%. In New York, closing quotations for the foreign currencies listed below vere ns follows: Canadian dollar 11-5/8% discount Swiss franc .2321-1/2 Swedish krons .2385 Reichsmark .4005 Lira .0526-1/4 Argentine peso (free) .2366 Brazilian milreis (free) .0505 Mexican peso .2070 In Shanghai, the yuan was again unchanged at 5-3/84. and sterling remained et 1.39-1/2. There were no gold transactions consummeted by u.e today. Tin new gold engagemente were reported. 16MP Regraded Uclassified