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    "title": "Volume 406, June 7 – June 10, 1941",
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        "Henry Morgenthau, Jr. Papers",
        "Diaries of Henry Morgenthau, Jr."
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    "ocrText": "DIARY\nBook 406\nJune 7-10, - 1941\nTHEM\n- A -\nBook Page\nAllison Engineering Company\nSee War Conditions: Airplanes (Engines)\nAlsop and Kintner\nAlsop going into Havy and Kintner going into Army -\n6/9/41\n406\n120\nAmherst College\nSee Speeches by HMJr\nAppointments and Resignations\nCollector of Internal Revenue, Iowa:\nChange as desired by Ed Flynn discussed in Rowe\nmemorandum - 6/10/41\n354,355\nGarrison, Lloyd X:\nTo be considered for Under Secretaryship of\nTreasury; HMJr asks Miss Tully to check with\nFDR - 6/10/41\n373\na) HMJr and Frankfurter discuss after\nFrankfurter's talk with FDR - 7/8/41:\nSee Book 419, page 2\nb) FDR asks HMJr to get Garrison's last\nspeech and send it to him:\nBook 419, page 159\nLandis, James M. (Dean, Harvard Law School):\nTo be considered for Under Secretaryship of\nTreasury; HMJr asks Miss Tully to check with\nFDR - 6/10/41\n373\na) Declines Under Secretaryship of Treasury -\n6/19/41: Book 410, pages 168 and 181\nb) Changes to acceptance on certain conditions -\n6/21/41: Book 411, pages 248 and 249\nc) FDR will sign letter to Conant; Landis to\nstraighten out situation with LaGuardia:\nBook 412, page 166\n1) Letter as prepared in Treasury:\nBook 412, page 169\n2) Conant answer - 6/30/41:\nBook 418. page 40\nd) Lubin and HMJr discuss Father White's\nintercession with Senator Walsh - 6/24/41:\nBook 413, page 77\ne) LaGuardia will release as head of Office of\nCivilian Defense, Second Corps Area -\n6/26/41: Book 416, page 206-A\nf) HMJr tells Landis he cannot sway Senator\nWalsh - 7/2/41: Book 417, page 143\n1) Reports to FDR: Book 419, page 48\ng) Landis' letter to HMJr after HMJr-Walsh\ntalk - 7/3/41: Book 418, page 41\nh) Crowley intercedes - 7/11/41:\nBook 420, page 71\nArgentina\nSee Latin America\nAustralia\nSee War Conditions\n- B -\nBook Page\nBelgium\nSee War Conditions: Foreign Funds Control\nBrown, J. Douglas\nSee Defense, National (Dismissal compensation plan)\nBusiness Conditions\nHaas memorandum on situation for week ending\nJune 7. 1941\n406\n245\n- C -\nCanada\nSee War Conditions\nChina\nSee War Conditions: China; Lend-Lease\nCoast Guard\nPurchase of training ship DANMARK discussed at\n9:30 meeting - 6/9/41\n121\na) Knox-HMJr conversation - 6/20/41:\nSee Book 411, page 4\n1) FDR's memorandum and letters from and\nto Bland (Committee on Merchant Marine\nand Fisheries, House of Representatives):\nBook 411, pages 31 and 34\nCollector of Internal Revenue, Iowa\nSee Appointments and Resignations\nCompensation, Dismissal\nSee Defense, National\n- D -\nDebts, Foreign\nTreasury advises State there should be no change in\nroutine procedure at this time - 6/9/41\n210\nDefense, National\nLabor Resources: Effective utilization in all-out\nprogram - 6/9/41\n209\na) HMJr's memorandum on problem after\nbreakfasting with Mrs. FDR - 6/10/41\n277\nb) White memorandum: \"A Program to Utilize\nEffectively Available Labor Supply\" -\n6/10/41\n368\nc) \"A program for total defense production and\ntraining\" - 6/11/41: Book 407, page 54\nd) Copies of letter to FDR, recommendations,\ndraft of bill, and chart sent to Mrs. FDR,\nCurrie, Judge Rosenman, Hopkins, and Lubin -\n6/13/41: Book 408, page 34\ne) Chronology of HMJr's proposals prepared by\nWhite - 6/17/41: Book 409, page 210\nf) Dismissal compensation plan proposed by\nJ. Douglas Brown - 6/17/41: Book 409, page 216\nSee also Speeches by HMJr (Amherst Alumni Luncheon Address)\nRegraded Uclassified\n- D - (Continued)\nBook Page\nDefense Savings Bonds\nSee Financing, Government\nDismissal Compensation\nSee Defense, National\nDouglas, Lewis W.\nSee Speeches by HMJr (Amherst address)\n- F -\nFinancing, Government\nReconstruction Finance Corporation requirements\nfor next three months discussed by Jones\nand HMJr - 6/10/41\n406\n323\nDefense Savings Bonds:\n\"Defense Savings: À United Front Appears\" -\nDallas report - 6/7/41\n80\nField Organization Nave Letter, No. 3, giving\nresume' of first month - 6/7/41\n84\nDaily sales, June 1-June 6\n96\nDietz and HMJr discuss civil liberties\nplaylets - 6/9/41\n184\nCongressmen to be kept informed: HMJr asks\nGraves to work out ways - 6/10/41\n348\nTexaco program - HMJr's suggestions - 6/10/41\n349,351,353\nOhio, particularly northwest, thought by\nWickard to he pro-German; asks HMJr about\nbond sales there - 6/10/41\n356\na) HMJr's reply to Wickard - 6/24/41:\nSee Book 413, page 138\nForeign Debts\nSee Debts, Foreign\nForrestal, James V. (Under Secretary of Navy)\nHMJr thanks him for privilege of reading diary\nof his English trip - 6/9/41\n238\nFrance\nSee War Conditions\n- G -\nGarrison, Lloyd K.\nSee Appointments and Resignations for consideration\nas Under Secretary of Treasury\nGermany\nSee War Conditions\nGreece\nSee War Conditions\n- H -\nHungary\nSee War Conditions\n- I -\nBook Page\nInfantile Paralysis Foundation\nSee O'Connor, Basil\nInternal Revenue, Collector of - Iowa\nSee Appointments and Resignations\nIowa\nCollector of Internal Revenue: See Appointments\nand Resignations\n- J -\nJackson, Gardner\nAsks for conference with HMJr concerning job -\n6/9/41\n406 243\n- L -\nLabor\nSee Defense, National\nLandis, James M. (Dean, Harvard Law School)\nSee Appointments and Resignations\nLatin America\nArgentina:\nHMJr asked for information as to whether\nstabilization loan to Argentina is off before\nhe testifies on Hill - 6/10/41\n366\na) Foley answer\n367\n- N -\nNetherlands\nSee War Conditions: Foreign Funds Control;\nLend-Lease\n- 0 -\n0' O'Connor, Basil\nInfantile Paralysis Foundation: HMJr asks if O'Connor\nwishes to recommend anyone as his receptionist -\n6/9/41\n147\n011\nSee War Conditions\n- P -\nPuget Sound Power and Light Company\nSee Reconstruction Finance Corporation\n- R -\nBook Page\nReconstruction Finance Corporation\nSee also Financing, Government\nJones' letter to Ickes concerning authority to make\nloan to dummy corporation for purchase of\nelectric system of Puget Sound Power and Light\nCompany - - 6/10/41\n406\n325\nRevenue Revision\nComparison of volume of business, net profits, and\nFederal taxes of certain groups of corporations\n(engaged in shipbuilding, construction of\nairplane engines, etc., as well as industries\nnot engaged in filling defense contracts): Blough\nmemorandum and table - 6/9/41\n118\na) Discussion at 9:30 meeting - 6/9/41\n123\n(See also Book 409, page 14 - 6/16/41)\nTax certificates to be used in paying next year's\nincome tax discussed at group meeting - 6/10/41.\n299\na) HMJr, Eccles, White, Haas, Ransom, McKee,\nPiser, Bell, and Kuhn discuse - 6/27/41:\nSee Book 415, page 36\nb) HMJr, Hass, Bell, and Stewart discuss -\n7/2/41: Book 417. page 109\nc) HMJr, Stewart, Bell, Hase, Currie, White,\nKuhn, Ransom, McKee, Eccles, Goldenweiser,\nand Piser discuss - 7/2/41: Book 417, page 151\nd) Press release on plan - 7/3/41:\nBook 418, page 133\n1) Kuhn's notes for press conference:\nBook 418, page 137\ne) Keynes is interested - 7/8/41:\nBook 419, page 39\nf) Conference: present: HMJr, Bell, Broughton,\nKilby, Jones, Callahan, Sloan, Buckley,\nand Edwards - 7/11/41: Book 420, page 86\ng) Press comment - Merillat resume' - 7/11/41:\nBook 420, page 107\nh) FDR informed of issuance August 1 and asked\nto participate in radio program - 7/18/41:\nBook 422, page 212\n- S -\nSalter, Sir Arthur\nSee War Conditions: Shipping\nShipping\nSee War Conditions\nRegraded Uclassified\n- S - (Continued)\nBook Page\nSpeeches by HMJr\nAmherst Alumni Luncheon Address:\nHMJr, Odegard, and Kuhn confer on speech;\nMrs. FDR enthusiastic about it - 6/10/41\n406\n279\na) Henry III's doubts as discussed with\nMrs. FDR and later answered by HMJr\nbasis for speech.\n281\nb) Admiral King asked to check on\nconversations he and HMJr had on\nshipboard - - 6/10/41\n318\n1) King's comments - 6/14/41:\nSee Book 408, page 152\ne) Lewis Douglas--HMr conversation -\n6/11/41: Book 407, page 44\nd) McCloy-HMJr conversation - 6/11/41:\nBook 407, page 48\ne) Copy as interlined by HM,III - 6/14/41:\nBook 408, page 167\nf) HMJr's reading copy - 6/14/41:\nBook 408, page 212\ng) Henry III sends editorial from Cleveland\n\"Plain Dealer\" - 6/20/41:\nBook 411, page 160\nh) Halifax's appreciation of speech -\n6/23/41: Book 412, page 318\n1) Hochschild's congratulations acknowledged -\n6/23/41: Book 412, page 319\nStabilization Fund\nDevaluation extension discussed in Cochran\nmemorandum - 6/7/41\n17\nHMJr asked for information as to whether\nstabilization loan to Argentina is off before\nhe testifies on Hill - 6/10/41\n366\na) Foley answer\n367\n- T -\nTankers\nSee War Conditions: Shipping\n- U -\nUnemployment Relief\nWork Projects Administration report for week\nending May 28, 1941\n258\nUnited Kingdom\nSee War Conditions: Military Planning; 011\nRegraded Uclassified\nBook Page\nWar Conditions\nAirplanes:\nEngines:\nAllison Ingineering Company shipments -\n6/9/41\n406\n206,207\nShipments to United Kingdom and overseas\ncommands - British Air Commission report -\n6/10/41\n384\nAustralia:\nRegulations governing persons owning United\nStates or Canadian dollar currency -\n6/7/41\n67\nCanada:\nReport on general conditions - State Department\nreport - 6/7/41\n56\nChina:\nSee also War Conditions: Lend-Lease\nFox reports upon arrival in Hong Kong - 6/9/41\n233\nExchange market resume' - 5/7/41, etc.\n97,244,385\nExport Control:\nExport of petroleum products, scrap iron, and\nscrap steel from United States to Japan,\nU.S.S.R., Spain, and Great Britain, week\nending June 7, 1941\n208\nForeign Funds Control:\nForeign accounts in Federal Reserve Banks and\ninsured banks: Phillips-Cochran correspondence\nconcerning competing claims between central\nbanks now in occupied territory and the\ngovernments themselves, as, for example,\nBelgian and Dutch - 6/7/41\n1\nHungary:\nDifficulties of situation discussed by\nHungarian Minister and Cochran - 6/7/41\n16\nFrance:\nSetting up of three German Commissioners for\nforeign trade, Bank of France, and foreign\nexchange discussed in memorandum from American\nEmbassy, Vichy - 6/7/41\n63\nGermany:\nFrance - Vichy: Setting up of three German\nCommissioners for foreign trade, Bank of France,\nand foreign exchange discussed in memorandus\nfrom American Embassy, Vichy - 6/7/41\n63\nGreece: German-occuping authorities to pay 20%\npremium on all purchases in Greece for German\narmed forces - 6/7/41\n68\nGreece:\nGerman-occupying authorities to pay 20$ premium\non all purchases in Greece for German armed\nforces - 6/7/41\n68\nRegraded Uclassified\n- W - (Continued)\nBook Page\nWar Conditions (Continued)\nLend-Lease:\nFirst report - 6/10/41\n406\n358\nChina:\nCurrie told of HMJr's approval of plan to\ntake over portion of British contracts for\nChina - 6/10/41\n359\nNetherlands: Cox memorandum to Hopkins raising\ncertain questions in connection with\nproposed agreement - 6/9/41\n175\nMilitary Planning:\nReports from London transmitted by Halifax -\n6/7/41, atc\n98,101,109,262,\n264,387,389\nWar Department bulletin:\nGerman invasion of Greece - notes on -\n6/9/41\n266\n011:\nBritish requirements - 6/7/41\n8\nPurchasing Mission:\nBritish Financial Position:\nGold and dollar assets as of April 1, May 1,\nand June 1\n8\nVesting order sales - 6/9/41\n199,200\nFederal Reserve Bank of New York transmite\nstatement showing dollar disbursements,\nweek ending May 28, 1941\n201\nShipping:\nUnited States tank vessels in United States\nports. - 6/7/41\n69\n(See also Book 407, page 260 - 6/12/41)\nSalter's report giving comparative statement,\nMay and June, of deficiency of ships for\npriority program of North America - 6/10/41.\n374\nTugoslavia:\nNational Bank governor and vice-governor\nremoved 6/9/41\n231\nWork Projects Administration\nSee Unemployment Relief\n- Y -\nTugoslavia\nSee War Conditions\nTREASURY DEPARTMENT\nINTER-OFFICE COMMUNICATION\nRegraded\nDATE June 7. 1941\nTO\nSecretary Morganthau\nFROM Mr. Cochran\nSTRICTLY CONFIDENTIAL\nThere is attached a copy of a letter which I received from Sir Frederick Phillips\nsome days age, and which I have told you that 1 should like to discuss with you be-\nfore enswering or filing.\nWhen Phillips handed this to no, I told him that By immediate and unofficial\nallswer would be \"yes\". I told him, however, that I would like to discuss his note\nwith some of By colleagues. Upon showing Phillips' letter to Mr. Foley, the latter\nsuggested that I talk it over with Mr. Bernstein. It was Mr. Bernstein's opinion\nthat recent legislation relating to foreign accounts in Federal Reserve Banks and\ninsured banks Vas conceived for just such a purpose as that which Phillips may have\nin mind, namely, that of getting into the hands of the Dutch Minister in the United\nStates funds of the Netherlands Bank which might be used to assist the British.\nMr. Bernstein's suggestion vas that he and I talk with Sir Frederick Phillips and\ngive him an idea as to the possibilities of action under this nov legislation. When\nI mentioned this idea to Under Secretary Bell the latter thought this quite a risky\nprocedure, and did not favor it. Re suggested that I draw up a fairly noncommittal\nreply to Phillips' letter. This I have done, as will be noted from the attached draft.\nMy own thought is that I should give Phillips no written reply in the premises.\nWhen the matter came up in our conversation yesterday, I told Phillips that I could\neasily write him an evasive letter, but that vs were not accustomed to dealing with\nhim in such fashion. I told him that he had access to and knowledge of our own\nbanking legislation. I added that if the inquiry had come from any source other than\nhimself, asking us for forecasts in regard to difficulties concerning possible transac-\ntions in foreign accounts, ve would decline to give any information. In his case,\nhowever, I certainly did not desire to block him from receiving any assistance or\nadvice from us which some one in higher position than myself might see fit to give. I\ntold him that I might find occasion to bring this matter to the Secretary's attention,\nbut gave no promise.\nIn this connection, KY personal opinion is that both the State and Treasury\nDepartments have been inclined to use too generously the authority conferred upon them\nby the Federal Reserve Bank Act under reference, B. copy whereof is attached. It is\nBy feeling that a certification from the Secretary of State could properly be required\nwhen there is 8 real question of authority, but that this procedure should not be\nused to facilitate an official in this country acquiring authority which it is doubtful\nthat be previously enjoyed. That is, for example, this procedure has been utilized\nto permit Yuguslav and other Ministers in the United States whose countries have been\ninvaded to draw on the Central Bank balances of their respective countries held in\nthe United States, although they had no such authority prior to the invasion of their\ncountries, and we have no evidence other than the Ministers' statements to the State\nDepartment that they should enjoy this authority now. I think it would be particularly\n2\n- 2 -\nundesirable for us to collaborate with the British toward the Dutch Minister, for\nexample, gaining access to the funds in this country of the Netherlands Bank, which\nis not owned by the Netherlands Government, and all of whose officers have remained\nin the Netherlands. However sympathetic ve may be to the British cause, the finan-\ncial and monetary authorities of the United States definitely have a responsibility\nfor the safekeeping of Central Bank funds entrusted to banks in this country by them.\nI am strongly of the opinion that it is not for us to determine that such funds should\nbe utilised by the Exiled Governments or ex-Ministers of invaded countries for pur-\nposes other than those which the Central Banks of those countries may determine.\nThere will undoubtedly be a great need for such funds for the rehabilitation of the\ninvaded countries once peace is established.\n3\nT\nTHE BRIVICE SUPPLY COUNCIL IN was AMERICA\nBes 600\nHonjanin Fresklin Station\nVashington, D. e.\nMay 21, 1941\nDear Cookram,\nI as asked to confirm the view which coons\nto prevail in London that oven if the assets belong-\ning to the Belgion and Datch National Banks here\nvere unfresen there would be competing claims between\nthe Director of the Belgion National Bank is London\nml the Datch Government on the - hand, mi the\nBelgion and Dateh National Benke altuated is compled\nterritory on the other hand, 00 that 10 would be a\nmatter of great difficulty for the Belgian at Datch\ndevernments to obtain these funds.\nVould you agree with this view?\nYours sincerely,\n(Signed) 7. Phillips\nMr. E. Marlo Cochran,\nU. 8. Treasury,\nVachington, D. c.\nCOPY - 5/23/41 - is\nRegraded Uclassified\n4\nOFFICE OF\nTREASURY DEPARTMENT\nWASHINGTON\nTHE\nSECRETARY\nMay 29, 1941\nDear Phillips:\nIn answer to your letter dated May 21, 1941, I\nhave pleasure in attaching for your guidance a copy of the\nlegislation recently enacted which relates to foreign ac-\ncounte in Federal Reserve Banks and insured banks.\nFrom this legislation you will note the arrange-\nment which is provided for certification by the Secretary\nof State as to those officials who may have authority to\ndispose of the property held in the name of foreign States\nor Central Banks with our own Federal Reserve and insured\nbanks,\nYou are aware, of course, that the United States\nGovernment continues to maintain diplomatic representatives\naccredited to the Governments of Belgium and the Netherlands,\nwith present headquarters in London. On the other hand, it\nis my understanding that the Federal Reserve Bank at New York\nhas no direct contact with the Netherlands Bank at Amsterdam\nor with the National Bank of Belgium at Brussels, in the\nname of which institutions the Federal Reserve Bank of New\nYork continues to carry certain accounts.\nFaithfully yours.\nR. Merle Cochran\nTechnical Assistant to the Secretary\nEnclosure.\nSir Frederick Phillips.\nThe British Supply Council in\nNorth America,\nWashington, D. C.\nRegraded Uclassified\n5\n[PUBLIC LAW 31-77TH CONGRESS]\n[CHAPTER 43-1st SESSION]\n[8. 390]\nAN ACT\nRelating to foreign accounts in Federal Reserve banks and insured banks.\nBe it enacted by the Senate and House of Representatives of the\nUnited States of America in Congress assembled, That subsection (e)\nof section 14 of the Federal Reserve Act, as amended, is amended by\ninserting before the period at the end of the first sentence thereof\nthe following: \", or for foreign banks or bankers, or for foreign\nstates as defined in section 25 (b) of this Act\".\nSEC. 2. Section 20 (b) of the Federal Reserve Act, ns amended, is\namended by adding at the end thereof the following new paragraphs:\n\"Whenever (1) any Federal Reserve bank has received any prop-\nerty from or for the account of a foreign state which is recognized\nby the Government of the United States, or from or for the account\nof a central bank of any such foreign state, and holds such property\nin the name of such foreign state or such central bank; (2) a repre-\nsentative of such foreign state who is recognized by the Secretary of\nState as being the accredited representative of such foreign state to\nthe Government of the United States has certified to the Secretary of\nState the name of a person as having authority to receive, control,\nor dispose of such property; and (8) the authority of such person\nto act with respect to such property is accepted and recognized by\nthe Secretary of State, and so certified by the Secretary of State to\nthe Federal Reserve bank, the payment, transfer, delivery, or other\ndisposal of such property by such Federal Reserve bank to or upon\nthe order of such person shall be conclusively presumed to be lawful\nand shall constitute a complete discharge and release of any liability\nof the Federal Reserve bank for or with respect to such property.\n\"Whenever (1) any insured bank has received any property from\nor for the account of a foreign state which is recognized by the\nGovernment of the United States, or from or for the account of a\ncentral bank of any such foreign state, and holds such property in\nthe name of such foreign state or such central bank; (2) a repre-\nsentative of such foreign state who is recognized by the Secretary\nof State as being the accredited representative of such foreign state\nto the Government of the United States has certified to the Secre-\ntary of State the name of a person as having authority to receive,\ncontrol, or dispose of such property; and (8) the authority of such\nperson to act with respect to such property is accepted and recog-\nnized by the Secretary of State, and so certified by the Secretary of\nState to such insured bank, the payment, transfer, delivery, or other\ndisposal of such property by such bank to or upon the order of such\nperson shall be conclusively presumed to be lawful and shall consti-\ntute a complete discharge and release of any liability of such bank\nfor or with respect to such property. Any suit or other legal pro-\n2\n(Pus. LAW II.)\nceeding against any insured bank or any officer, director, or employee\nthereof, arising out of the receipt, possession, or disposition of any\nsuch property shall be deemed to arise under the laws of the United\nStates and the district courts of the United States shall have exclusive\njurisdiction thereof, regardless of the amount involved; and any such\nbank or any officer, director, or. employee thereof which is 8 defendant\nin any such suit may, at any time before trial thereof, remove such\nsuit from a State court into the district court of the United States\nfor the proper district by following the procedure for the removal of\ncauses otherwise provided by law.\n\"Nothing in this section shall be deemed to repeal or to modify\nin any manner any of the provisions of the Gold Reserve Act of\n1934 (ch, 6, 48 Stat. 337), as amended, the Silver Purchase Act of\n1934 (ch. 674, 48 Stat. 1178). as amended, or subdivision (b) of\nsection 5 of the Act of October 6, 1917 (40 Stat. 411), as amended,\nor any actions, regulations, rules, orders, or proclamations taken,\npromulgated, made, or issued pursuant to any of such statutes. In\nany case in which a license to act with respect to any property\nreferred to in this section is required under any of said statutes,\nregulations, rules, orders, or proclamations, notification to the Secre-\ntary of State by the proper Government officer or agency of the\nissuance of an appropriate license or that appropriate licenses will\nbe issued on application shall be a prerequisite to any action by the\nSecretary of State pursuant to this section, and the action of the\nSecretary of State shall relate only to such property as is included\nin such notification. Each such notification shall include the terms\nand conditions of such license or licenses and a description of the\nproperty to which they relate,\n\"For the purposes of this section, (1) the term 'property' includes\ngold, silver, currency, credits, deposits, securities, choses in action,\nand any other form of property, the proceeds thereof, and any right,\ntitle, or interest therein; (2) the term \"foreign state' includes any\nforeign government or any department, district, province, county,\npossession, or other similar governmental organization or subdivi-\nsion of a foreign government, and any agency or instrumentality of\nany such foreign government or of any such organization or subdi-\nvision; (3) the term 'central bank' includes any foreign bank or\nbanker authorized to perform any one or more of the functions of a\ncentral bank; (4) the term \"person\" includes any individual, or any\ncorporation, partnership, association, or other similar organization;\nand (5) the term insured bank' shall have the meaning given to it\nin section 12B of this Act.\"\nApproved, April 7, 1941.\nRegraded Uclassified\n6\nTREASURY DEPARTMENT\nINTER-OFFICE COMMUNICATION\nDATE June 7. 1941\nTO\nSecretary Morgenthau\nFROM\nMr. Cochran\nSTRICTLY CONFIDENTIAL\nSir Prederick Phillips telephoned me at 12:45 yesterday. Ee said that Sir\nEdward Peacock had received word from Mr. Jesse Jones that the latter saw no reason\nfor opposing the loan proposition involving the British thread companies. Conse-\nquently, Sir Frederick asked if it would not be all right to go ahead with this\ntransaction. I told Phillips that I was seeing Mr. Bell at luncheon and desired\nto discuss this matter with him, since it was the Under Secretary who had been in\ntouch with Mr. Jones for the Treasury.\nAs soon as I had talked with Phillips, I telephoned Mr. Bell to report the\nconversation. When we met at luncheon, Mr. Bell said that he had talked with\nMr. Jones and that the latter stated that he had given no such clearance. On the\ncontrary, he was of the opinion that a loan considerably above the sum mentioned\nby Peacock would be warranted. When we came up from luncheon, there was a copy of\na letter from Mr. Jones to the Secretary, which is attached hereto. Shortly after-\nwarde we received a photostatic copy of this letter from the Secretary's office,\nsince it had been handed to Mr. Morgenthau when he vas at the Cabinet Meeting.\nIn agreement with Mr. Bell, I telephoned Phillips yesterday afternoon and told\nhim that Mr. Jones had informed us that he had not given a clearance to the transac-\ntion in question. Phillips agreed with me that the transaction should be definitely\nheld up until we are in touch with Sir Edward Peacock next week. It will be recalled\nthat Peacock hopes to see the Secretary, perhaps on Tuesday.\nWhen the Secretary called me from the farm at 10:15 this morning, he said that\nMr. Bell had informed him of the confusion which had arisen in connection with this\ntransaction. The Secretary agreed with my suggestion that no draft letter acknowl-\nedging Peacock's communication on this proposition should be prepared before Peacock's\nvisit to us next week.\n25ml\nRegraded Uclassified\nC\no\nJune 6\nHanded at Cabinet\nP\nY\nFEDERAL LOAN AGENCY\nWASHINGTON\nJesse H. Jones\neral Loan Administrator\nJune 6, 1941\nDear Henry:\nWith regard to the proposed loan by the\nbanks and insurance companies to the British-owned\nAmerican thread companies, it appears from the\ninformation which we have been able to obtain on\nshort notice that the HFC could safely afford to\nlend as much as $30,000.000 in the expectation that\nearnings from the properties would fully amortize\nthe loan within a reasonable time.\nThis would provide the British with\n$14,000,000 more than the banks and insurance\ncompanies propose to lend.\nWe will be glad to give prompt consid-\neration to such a loan upon receipt of more defi-\nnite information.\nSincerely yours.\n(s) Jesse\nAdministrator\nHonorable Henry Morgenthau, Jr.\nSecretary of the Treasury\nWashington, D. C.\nCopy:bj:6-7-41\nRegraded Uclassified\nC\n8\no\nP\nY\nFRITISH EMBASSY,\nWASHINGTON, D.C.\nJune 7, 1941\nDear Dr. White,\nI enclose a statement of British gold and\ndollar assets as at April 1st, May 1st and June 1st,\nI hope this is in the form you require.\nI have obtained from Mr. Piercy, the British\nrepresentative handling petroleum here, the following\nrough figures of British oil requirements (annual rates\nin $ millions):\nRest of\nRequirements of oil\nU.K.\nSterling Area\nTotal\nfrom U.S.A.\n35\n10\n45\nfrom dollar sources\noutside U.S.A.\n60\n30\n90\nTotal\n95\n40\n135\nYours sincerely,\n/s/ R.G.D. Allen\nDr. Harry White\nU.S. Treasury\nWashington, D.C.\nRegraded Uclassified\n9\nC\no\nP\nI\nBRITISH GOLD & DOLLAR ASSETS\nApril 1st, 1941 May 1st, 1941 June 1st, 1941\nold\n225\n117\n148-1/2\nfficial dollar balance -\n69\n159\n115-1/2\nTotal gold & dollars\n294\n276\n264\n⑉ gold not available:\nBelgian gold borrowed\n105\n105\n105\nScattered gold\n18\n9\n11\nReserve against immediate liabilities\n10\n133\n10\n124\n10\n126\nvailable gold & dollars\n161\n152\n138\narketable securities **\n526\n507\n473\nrect & miscellaneous investments\n***\n...\n...\n.\nPrivate dollar balances are excluded since they represent minimum working\nbalances.\n.. April 1st figure 1s estimated market value of securities unsold at\nthat date. Subsequent figures are obtained by deducting actual\nsales and make no allowance for depreciation (or appreciation)\nof value.\n*** Amounts realised on direct investments: April $ 36 millions, May $ 25 millions.\nEstimates of value of unsold investments would now be devoid of meaning.\nashington, D. C.\nune 7th, 1941\ninc\nRecvd fun Han Bell\n10\nJune 7,1941\n(Ancussed with\nMEMORANDUM FOR THE PRESIDENT:\nserly 619)\nThe State and Treasury Departments have\ndrafted and discussed various provisions for in-\nclusion in a Lease-Lend Agreement with the British.\nThis memorandum lists first those matters on which\nboth Departments believe the decisions are clear and,\nsecond, those matters on which the decision is less\nclear. In the latter situation, the considerations\nfavoring alternative procedures are outlined. It is\nsuggested that the question of form of the Agreement\nbe passed without decision at this time and, once\nyou decide the less clear points, an agreement can\nbe drafted in a very short time.\nClear Points\n1. The Agreement should not include\nprovisions relating to economic and other problems\nof the emergency, of post-war relief and of recon-\nstruction. Provision shall be made in this Agreement\nfor the designation of & British-American commission\nwhich will sit continuously for the purpose of\nRegraded Uclassified\n11\n- 2 -\nformulating solutions not only of those international\neconomic problems which confront both governments,\nbut also of those larger problems involved in a post-\nwar relief and reconstruction. Such commission will\nseek to work out problems with existing inter-American\nbodies.\n2. The Agreement should include the\nfollowing:\n(a) An undertaking by the British to\nsupply similar aid to us should our de-\nfense at any time require it.\n(b) An undertaking by the British to\nexamine sympathetically our needs for\nadditional bases, with a view to giving\nfull support and assistance to the\nstrengthening of our defense.\n(e) An undertaking by the British to\nreturn to the United States, upon request\nof the President, all material transferred\nwhich is in existence at the end of the\nvar, whereupon the charge therefor shall\nbe written off.\nRegraded Uclassified\n12\ne 3 -\n(d) Against their obligation to the\nUnited States for non-ailitary materials,\nfeed, and similar items, the British shall\nreceive credits for property, Services,\ninformation, 'facilities, or other con-\nsiderations or benefits accepted or\nacknowledged by the President, the value\nof which considerations and benefits shall\nhave been determined by the President.\nThe terms and conditions of liquidating\nthe balance of the British obligations\nfor such non-military materials shall be\ndetermined by the President, perhaps after\nreceiving recommendations of a joint\nUnited States and United Kingdom commission.\nUnresolved Points\n1. The principal material that will be\nlease-loaned to the British will be military material\nwhich will be destroyed or used up in the var. The\nquestion arises what, if any, compensation shall be\nreceived by the United States for such military\nmaterial.\nRegraded Uclassified\n13\n- If\nAlternative ways of handling this matter\nare:\n(a) Write off the value of such materials\nupon their being consumed or destroyed.\n(b) Britain to furnish the United States\nwar materials or articles not produced in\nthe United States for such of the war\nmaterials transferred to Britain and con-\nsumed or destroyed which are not, in the\nopinion of the President, offset by one\nor another form of consideration or benefit\nreceived or accepted by the United States.\n(c) Keep, as at present, what is essentially\nan open account, leaving for determination\nsays\na later\nat [some more propitious/time the question\nof what, if any, compensation shall be paid\ntherefor by the British.\nConsiderations Affecting the Selection\nof One of These Alternatives\n(1) It will unquestionably have a good\neffect on British morale to know that the\nRegraded Uclassified\n14\n- 5 -\ncost of that part of the hose which is\ndestroyed in putting out the fire is not\na mortgage on Britain's future.\nAs against this must be weighed the\nreaction, particularly at the present time,\nof the Congress and the American public to\nour receiving no consideration or payment\nfor the bulk of the materials lease-loaned\nto Britain other than the use of such\nmaterials, when Britain has islands and in-\nDrpt. woul. there seen\nvestments in the Western Hemisphere.,\n(11) To wipe off the obligation will keep\nthe total British obligations within more\nmanageable proportions and will thereby\nAnd\nreduce the post-war settlement and adjust-\nsent problems.\nThe alternative is to make clear to\nthe British that they will not be expected\nto repay dollar for dollar for such war\nmaterials. Because of the inability now\nRegraded Uclassified\n15\n- 6 .\nto foresee an appropriate basis of settle-\nment, flexible powers are given to the\nPresident BO that he say determine what,\ndepending on future circumstances, say\nfairly be required of the British in com-\npensation for such materials.\n(111) If, because of the foregoing, this\nis not a propitious time to crystallize\nthe nature of the obligation of Britain\nfor used-up war materials, then the matter\ncan continue to be dealt with as at present,\n1.e., through the continued maintenance of\nthe open account for such materials.\n2. Shall the value of the consideration\nand benefits received by the United States from Great\nBritain be determined by:\n(a) The President.\n(b) The President acting with the\nadvice and recommendations of a joint\nBritish-American Commission.\n(c) A joint British-American Commission.\n6/5/41\nRegraded Uclassified\n16\nRegraded Uclassified\nIm 7. 1941\nFiles\nMr. Cochran\nAS be e'cleak yesterday afterness I received the Imagerian Minketer, at his\nrequest. Ive dags proviously the Secretary bud called - to Me office whom be\nuse receiving the Mater for the first time. On that conselen the Minister had\nrecounted to the Secretary his difficulties with the Regardes Persign Office \"\na result of his inability to obtain from our Foreign Punds Centrol the treatment\nof Sungarian efficial funds which the Foreign Office thought proper. I explained\nto the Secretary that there had been a little confusion is the premises and that\n11 was difficult for both Mr. Fell, - Maister to Dedupost. and Mr. de this to\nhave this rether compliented situation facing then while they are both ser at their\nrespective posts. The Fungarion Minister vas of the impression that Mr. Fell's\nconversations with the Sungarian Foreign Office left the feeling that there would\nbe little treuble in obtaining the arrangement is Washington which the Bungarian\ndevernment desired. Consequently, the Bangarian Foreign Office had coolded their\nMinister here severely for his recommentations favoring compliance with the require-\nsente of our Centrol. the Secretary ested as no ⑉ what help I could give is the\npromicos. I told his that 90 had enferred with m. Borie a few days proviously\nand that I thought the affair use nov following a proper course.\nThe Maister case out to of office fellowing his interview with the Secretary.\nstatted with as for a while, since I had known bis rather well several years\nwhen be was Emgeries Grasul General is New Term.\nUpon his visit yosterday. the Minister stated that following the receipt of\nMe last message from Delapost. be had called on Mr. Berlo at the State Department.\nand that the latter had recomented that me - 00 to the Treasury to ... what\nW reald de to assenge the matter under reference. Consequently, Mr. do this had\n⑉ to m. I told Me that state Me sall carlier is the week W bed received a\nfurther message from - Maister at Delapost. I recomental that he call on\nMr. Peble on Menday to discuss the question show.\nAS 9:30 this norning I telephoned Mr. Tousen, in Mr. Pehlo's absence, so report\nthe above conversations. I asked Mr. to Inform Mr. Peble thereof before\nthe latter reselves the Fungarian Ninister. I addre w recommendation that we meet\nthe Bangarian and liquidate this troublesses smootion.\nJust\n10:1ap-6/9/41\n17\nTREASURY DEPARTMENT\nINTER-OFFICE COMMUNICATION\nPersonal\nDATE\nJune\n7.\n1941\nTO\nSecretary Morgenthau\nFROM Mr. Cochran\nSTRICTLY CONFIDENTIAL\nSince you will be called upon to testify before the Senate Committee shortly on\nthe extension of the Stabilization Fund and the authority to devalus further the dol-\nlar, may I sake the following purely personal recommendation.\nIn my memorandum of January 24, 1941, I recommended harmony with the Federal\nReserve System and banking institutions in the face of our prospective borrowing pro-\ngram. In your broadcast on Thursday evening you expressed your genuine appreciation\nof the support which the American banks have 80 far given to your Defense Bond program.\nObviously you will continue to require this support, and even more, for a long time to\ncome.\nConsidering that we are calling upon the public for such complete confidence in\nGovernment securities, should we not give then every possible assurance as to the\ntability of the currency in which these bonds are denominated? No one needs to con-\nvince me that the Secretary of the Treasury would be one of the last in this country\nto favor any further devaluation of our dollar. I think it unfortunate, however, that\nthe Secretary is obliged in present circumstances to support a continuation of the\nevaluation authority if the granting of this authority arouses the alightest fear\nAmong our people that eventual utilization of this power is probable.\nI should have preferred that the letter from the President to Congress submitting\nhis 1941 extension legislation had not contained a request for a renewal of the\nevaluation authority. I did not see this correspondence until after it had been\n[uoted in the press. Now that this program has been followed BO far, however, there\nLa nothing that could be done except to yield gracefully in the Senate if strong opposi-\ntion develops there against the devaluation authority. As I said, my preference would\nhave been for the Secretary of the Treasury to give further evidence of his own con-\nservative ideas on monetary matters by voluntarily surgesting that this authority be\npermitted to lapse. Before the Senate Committee I think that he should take advantage\nof any situation to come out for this policy. That 1s, he should state that if the\nrepresentatives of the American people to whom the Treasury is confidently looking for\nfull support of our defense program have the least concern with respect to the future\nof our dollar, he desires to be the first to have this concern removed. The Secretary\ncould very properly refer to the fact that since be has been in office there has been\nno utilisation of special powers which might weaken the dollar in the least. On the\nmentrary, he has steadfastly worked to males the dollar the keystone of the world's\ncurrencies, If the people through their Congressional representatives feel, however.\nthat in this period of stress and morifice they would be happier to see no authority\nexisting for lowering further the gold content of their dollar, he would insist that\ntheir wishes be not,\nFrom a technical standpoint, I 100 no possible reason for our wanting to devalue\nthe dollar further. No European country has ever, to the best of my knowledge,\n18\n- 2 -\ndevalued a currency twice in the same generation with any success attending the\nsecond devaluation. Germany has sought stendfastly to prevent the second devalus-\ntion of the reichamark, after the bitter experience following the World War. It\nis true that Germany has resorted to trick marks for foreign transactions, but it\nhas kept the reichsmark & fixed currency from the internal standpoint. I believe\nthat for us to tinker with our currency further would mean & national catastrophe.\nCertainly it is no time to leave doubts in the minds of our people with respect\nto the dollar when we are calling on than for big loans and taxing their wealth\nand revenue hgavily. Only this week ve have heard of withdrawale of currency for\nhoarding purposes in various parts of the United States because of the fear that\nthe legislation suggested this week at the instance of the War Department wight\npermit seizure by the Government of private banking deposits. However far-fetched\nthese fears may be, they are bound to grow as our country becomes more involved in\nthe international difficulties. Should our taxes pile up. enormously and our coun-\ntry suffer through labor disorders as well as become engulfed in a terrible var,\nit is entirely conceivable that people would not only become concerned as to the\nvalue of their money, but also seek places of safe refuge. To meet such contingen-\ncies our currency should be as strong as possible, and our Stabilisation Fund should\nbe available.\nB.M.P.\n19\nTREASURY DEPARTMENT\nINTER-OFFICE COMMUNICATION\nDATE June 7. 1941\nTO\nSecretary Morganthan\nFROM Mr. Cochran\nSTRICTLY CONFIDENTIAL\nWhen I reported to you at Staff meeting on June 5 the receipt of a letter from\nUnder Secretary of State Welles reporting his suggestion that the Colombian Ambassador\ndiscuss directly with the Treasury the question of possible cooperation of our\nStabilisation Fund with that of Colombia, you left to Mr. Bell's group the question\nas to whether we should receive the Colombian Ambassador now or, as Kr. Bell sug-\ngosted. postpone any nev negotiations on Stabilisation matters.\nMr. Bell and I were definitely of the opinion that no new negotiations should\nbe started in June. In the first place, we are still likely to have a number of\nquestions arising with the institution this month of the Stabilization Board in China.\nThe Argentines may also possibly approach us for some arrangement to substitute for\nthe unratified arrangement which ve antered into some months ago. Then too, there\nremains the task of getting the extension of our Stabilization Fund through the\nSenate yet this month.\ndated 6/9/41.\nWhen I mentioned the Colombian matter to the Secretary, when he was talking with\n10 by telephone from the farm this morning, he approved the idea of By drafting a\netter to Mr. Welles suggesting the postponement of any Treasury discussion with the\nColombian Ambassador until after Congress determines the extension of the Stabiliza-\nion Fund.\nA first examination of the Colombian proposition would indicate that this is\nrequest for around $1,000,000 to supplement the Colombian Stabilisation Fund to\nsuch an extent that it may be able to pay arrears of dollar exchange due for imports\ninto Colombia. This arrangement would presumably supplement credits to be extended\nto Colombia by the Export-Import Bank. It has been my argument that the Stabilisa-\ntion Fund should not be used for loans of this purpose to Latin American countries,\nhat 1s, making up their trade deficits. The Secretary's recommendation along these\nlines when Peru was seeking a Stabilization Fund arrangement has apparently been a\nsuccessful one, in that ve have purchased copper and other Peruvian products to\nbuild up stock piles in this country and have relieved the dollar exchange shortage\nof Peru by this method, without the necessity of & Stabilisation Fund arrangement.\nConceivably something of this sort might be done with Colombia, or the whole problem\nleft properly in the hands of the Export-Import Bank. Recalling our negotiations\nwith the Colombian Ambassador concerning the settlement of private debts owed American\nholders of Colombian bonds, new negotiations with the Colombian Ambassador on a\nStabilization arrangement could not be looked forward to with much pleasure or con-\nfidence.\nWhile I as not favorable to the idea of making any definite commitment to the\nBritish or anyone also at present M to what we night, with our Stabilisation Fund\nor gold, do to help then in the future, I believe it 10 very much to our own interest\nRegraded Uclassified\n20\n- 2 -\nto refrain from small Latin American operations with the Fund and conserve our\nresources if the Fund is extended after June 30, 1941. In a real emergency, the\nSecretary could always go before the appropriate Committees of Congress and raise\nthe question as to buying sterling if the British urgently require dollars. We un-\ndoubtedly shall have a real role to play with our Stabilization Fund in post-war\nreconstruction of the international financial system. Canada may prove one of the\nbest fields to enter toward this end. But with the future so uncertain at present,\nI think we should continue a cautious policy and certainly not become involved in\npetty or political-financial arrangements with Latin American countries, particularly\nwith those having a bad debt record.\nB.M.\nRegraded Uclassified\n21\nADDRESS OFFICIAL COMMUNICATIONS TO\nTHE SECRETARY OF STATE\nWASHINGTON, D.C.\nDEPARTMENT OF STATE\nWASHINGTON\nIn reply refer to\nRA\nJune 4. 1941\nCause 6/9/41\nMy dear Mr. Secretary:\nThe Government of Colombia has submitted, through\nthe Colombian Ambassador, a request for financial and\neconomic assistance involving credits for public works\nand agricultural development purposes and cooperation\nwith the Colombian stabilization fund. There is enclosed\na copy of a translation of a memorandum on this subject\npresented to the Department by the Colombian Ambassador.\nCopies have also been made available to the Export-\nImport Bank and to the Department of Agriculture. The\nDepartment is requesting that the Export-Import Bank\ntake action with respect to the general public works and\nagricultural development credits. The question of\ncooperation with the Colombian stabilization fund appears\nto the Department to be properly a subject for discussion\nwith the Treasury.\nIn\nThe Honorable\nHenry Morgenthau, Jr.,\nBecretary of the Treasury.\nRegraded Uclassified\n22\n-2-\nIn the light of our previous discussions regarding\nthe possibility of monetary and stabilization arrange-\nments with certain of the other American republics, in\nwhich from time to time reference to Colombia has been\nmade, I am suggesting that the Colombian Ambassador\ndiscuss the matter directly with the Treasury.\nSincerely A Under yours, Secretary Alls\nEnclosure:\nCopy of memorandum\nwith attachments.\nRegraded Uclassified\n23\n(TRANSLATION)\nthe deverment of Solembia, after a sereful staty of\nthe national cosasuto situation and the disburbuntes is\ninternal order that night be produced If both the public\nworks nov being executed and the plans for industrial\npromotion and agrapian defense vare found to be persiysed\nfor lask of resources, has come to the conslusion that 18\nis M indispensable necessity to name extraordinary funds\nin order to prevent the economic and octial -\nthat would be brought about by the unferesses susponsion\nof such efforts of the present administration. the -\ntial object of the policy of public werks and infectrial\nand agricultural promotion that the Government has been\npushing is that of senserving the nation's purchasing power\nand reducing as make as possible economic flostuations\nand drastic reductions in the standard of living of the\nworkers and the population in general. This progres\nforms part of the economic, fiseal and memetary policy\nthat the Dovernment has been maintaining, in order to\nreduce, as far me pessible, the effects of the crisis\nproduced by the war, and today it constitutes a plan\njudisiously studied and natured and in active execution,\nin the main. The said plan was approved by the National\nRegraded Uclassified\n24\nSpenenta Council M specially outsed too stimulate\nIndustry and the development of important agricultural\nregions and to - a atre direct - for\ngoods, in keeping with the variable eircumstance of the\n- in eath of the regions that are going to be\nimproved by the weeks pleased.\nthe object of a loan for insuring the rapid comple-\ntion of the system of highways and for giving an impulsion\nto the schemes for industrial and agricultural development\ngiven in Asseme 1 so 5 is to counternet the possible\ndangers of - commonic depression that is about to occur\nand, on the other hand, so stimulate the demand for\narticles of consumption by the mest rational and scientifie\nmeans, such as that of directly auguenting the purchasing\npover of the labering nasses.\nTHE PLAN FOR\nThe determination of the works and public services\nof undeferrable urgeney, requiring the imediate atten-\ntion of the State, has been the subject of & very careful\nstudy on the part of the Government.\nThe investments that have been planned with the aid\nof specialized technical organizations in each branch\nare calculated at\nU.S. $13,000,000,\nor\nRegraded Uclassified\n25\nw tranty-two willion seven hundred farty thresand place,\nColembian currency, at the rate of exthange of 198 percent,\nand the list thursed: is the following, vithout may order\nof prierity having been strictly indicated:\n&\nExpenditures during the first year of work\nof the official plan on defense of the\nbenane industry and agricultural develope\nPasse\nnent in the Departments del\n1,877,530.00\nb.\nCost of the irrigation and drainage works.\n2,187,500.00\n0.\nAssources for the development of the verks\nof the Hunicipel Improvement Pund\n1,108,000.00\nd.\nIncrease in capital of the Industrial Pro-\nnotion Institute\n5,800,000.00\n÷\nConstruction of three large hydroclestric\nplants\n5,718,000.00\nf.\nIncrease in sapital of the Stabilization\nFund\n8.\nCost of the werks included misr the\nplans for highways, regulation of -\ntion and construction of public\nPell\nSett\n]\nthe\n3 I plants 8 I I\nRegraded Uclassified\n26\non a large seals and Game to be a very notable 18em in\nColumbia's foreign trade.\nUnfortunately, an epidemic on the plantations, known\nby the seientific - of Signtska, GARO along to affect,\nso the firet pleas, the presparity of that flourishing\nindustry to a marked extent.\nLeter, the insvitable repersuasions of the European\nsouffies aggremated the situation in the Departments\ndel Magdalona, which car the exports of fruit reduced to\na sinimus, which exports had been made, in large quanti-\nties to Ingland and Helland in particular in former times.\nThe executery of the Department having been prostrated\nby the adverse dircumstances that here gust been nextioned,\nit so an unavoidable duty of the national deverment to\nprograms = I withs E Peter I the Interesta $\nof the Inhebitants of that section, which are elerely -\nnosted wish - whole of the general coming of the country.\nefficial - to this riona - be limited to\nprotecting the betana Industry, the future prosperte of\n# I or 1 I 1 1 I\nI 1 I and s betted 8 I s g\nthe place, to - of the years which earing - THERE\nemetituted allows the sele protest employed sa that\nregister -\nI I a 1 $\n6\nRegraded Uclassified\n27\nprime importance which the Generament plane no push -\nDepartamente del Magdalona, in assordance with the fore-\ngoing resarks, and the cost of which to calculated n\none million eight hundred thirty-seven thousand five\nhundred -\nI\nA. COST OF THE IRRIGATION AND DRATILME MORKS\n(if) h ACCOMPT IN A PERIOD (*) TO YEARS\nThe Government has favored 8 policy in the natter of\nirrigation and drainage of lands, for the purpose of income\nporating in agriculture wide areas of the territory of the\ncountry which 80 far have been almost entirely left out\nof even notivities because of natural obstasles and which\ncan easily be saved.\nAnnex No. 2 enumerates one by one the works planned,\nthe cost of which 10 onloulated at two million one hundred\neighty-seven thousand five hundred pesos.\nThe works blonned could not be pushed with the\nordinary resources of the Treasury, and the delay in\nt eir execution becomes an actual loss of wealth. It\nis true that considerable work has already been done, but\nvarious incompleted projects still reasin, which it 10\nindisponsable to terminate as noon as possible.\nAs It 1: impossible to wake reference to each of\nthe items included under the plan for drainage and 1552-\ngation, only three works are mentioned, which in then-\nselves alone given on 1dea of the importance of the plan\nof\n7\nRegraded Uclassified\n28\n+\nof official action in this field.\nDue to the insufficiency of the Serevita River, the\nnatural discharge free the Priquene Lageen in the Departments\nof Boysed, an approximate extent of 26,000 fanegadas\n(39,180 seres) of land of extraordinary fortility was\nflooded is that region is the rainy conson. The construction\nof 1 large drainage canal has been planned, to replace the\nbed of the Serevita River, a work which is well advanced\nand will allow the utilization of the area formerly liable\nto flooding.\nDrainage of the Recoment Valley\nThis work is similar to the preceding, in as such\nas it involves the construction of a main easal running\nto the lower portion of the Begamoso River and returning\nthe flood waters to the said river. The work was begun in\n1936 and will benefit an area of 7,000 fanegadas (11,130\nseree), likewise fertile enough for cultivation.\nBugglagrande Irrication Camal (Causa Valley)\nThese works were commenced \" early as 1936, and have\nthe purpose of providing water for irrigation and watering\nover\nRegraded Uclassified\n29\n-7-\nover an area of 18,000 fanegadas (23,880 acrea), for\ndeveloping water power on a small scale, the land along the\ncanal generally being lower than the canal, and for\nsupplying drinking water to the town of Bugelagrande.\nThe Government is being reimbursed for the suss spent\non the works of drainage and irrigation, and there is\nan improvement tax equivalent to thirty per cent of the\nnet benefit obtained by the owners of the lands benefitted,\nthat 10, after deduction of the amount for the cost of\nexecution of the works; the State may receive in land the\namounts that are to be paid for one resson or another.\nC. RESOURCES FOR THE DEVELOPMENT OF THE MORK\nOF THE MUNICIPAL IMPROVEMENT FUND.\nA custom that bes been established in the political\nand administrative organization of the country with -\nfortunate consequences for its normal development caused\nthe very life of the municipal units to depend almost\nexelusively, for many years, on the sid voted by the\nNational Congress, with a standard that was not always\ncharacterized by equity and the proper selection of the real\nneeds of each city or town.\nwith\n9\n30\n-8-\nWith the purpose of fundamentally correcting this\nanomalous sitution, the present Government issued Extra-\nordinary Decree 503 of 1940, which established the Municipal\nImprovement Fund, on organization provided with relotively\nconsiderable income of its own, and called upon to provide\nmethodically the sunicipal public works of essential\nimportance, such \" the construction of aqueduots, severe,\nhospitals and buildings for primary instruction. The\ndirect aid of the Congress to the municipalities has been\nsuspended, with evident benefit to good order in the\npreparation and application of the national budget.\nColombian cities, especially the small ones, are\nconfronted with real problems of elementary hygiene,\nsuch as the supplying of potable water and the building of sever\nsystems, which are oggravated by the constant wonsee of\ntropical diseases.\nThe accomplishment of such works with the yield from\nthe taxes et the disposel of the Municipal Improvement Fund\nwould require work extending over very sany years, with\nevident injury to the public health. Hence Decree 503,\nmentioned above, foressw this and authorized the precuring\nof leans intended for the accomplishment of the works\nmentioned, among which the Government would select, first\nof 811, the met urgent anes comested with the building\nof\nRegraded Uclassified\n31\nof aqueduets and sever systems, which would call for the\nimmediate investment of one million one hundred two\nthousand pesos ($1,102,000.00). The Municipal Improvement\nFund could guarantee, from its own income, the service\non the credit operations intended for the financing of\nthe works entrusted to it.\nThe Bank of the Republic, in virtue of an agreement\nconcluded with the National Government now in effect,\nhas the character of trustee for all the credit operations\nwhich are entered into for the Improvement Fund, and for\nthat purpose the said Bank collects directly the yield\nfrom the taxes established by Decree 503 of 1940.\nAnnex No. 3 contains complete data on the organisation\nof the Municipal Improvement Fund, its financial capacity\nand the work it has performed up to this time.\nD. INCREASE IN THE CAPITAL OF THE INDUSTRIAL\nPROMOTION INSTITUTE.\nThis corporation, created by Extraordinary Decree\n1157 of 1940, is operating at present with a capital of\ntwo million person subscribed by the State and a small\nadditional amount from @ private credit institution.\nThe organic Decree provides that the capital of the\nInstitute must not be less than four million pesos,\nan\n32\n-10-\non amount still very elight, in view of its function as a\npromoter of industries in 8 country of incipient develop-\nment. The Government, however, is serely attempting at\npresent to complete the stated capital of four million\npesos indicated by Decree 1157 of 1940.\nThe present administration, convinced of the imperative\nneed for stivulsting the industrial development of the\ncountry, did not hesitate last year in supplying its quota\nfor the organization of the Institute, despite the fact\nthat at that time many national services were also urgently\ndemanding the financial aid of the State.\nOn the other hand, the founding of this organization\nlikewise followed the Government's purpose of eliminating\na prectical drawback, traditional in our legislative annale,\nthat of granting national aid to industries which individuals\nor certain official organizations were planning to establish.\nNow, such assistance can be grented only through\nthe Institute, the management of which is in the hands of\nan autonomous Board composed of real exports and business\nmen and presided over by the Minister of National Economy.\nThe Institute has as its min object to subscribe for\nshares in undertakings which private enterprise and capital\nhave not been able to develop astisfactorily themselves,\nafter\n33\n-11-\nafter 8 serupulous study (has been made) of the suitability\nand safety of the investment. Se is no case can it be an\norganisation competing with private industries which operate\nnormally.\n1. CONSTRUCTION OF THREE LARGE HYDRO-ELECTRIC PLANTS.\nThe industrial development of the country, which is\nbeing initiated chiefly by means of the official action\nexercised through the Promotion Institute that has been\ndiscussed above, encounters on insuperable obstacle in\nthe look of electric power in sufficient amounts and under\nreasonable conditions as to price.\nAlthough it is true that during the last few years\nwe have made some progress in the work of providing our\nmunicipalities with electric services indiapensable for\ndomentic use and public lighting, it is no legs true that\nit has been possible to set up only one comparatively large\nplant for attending to the needs for industrial production\nin recent times, at Guedelupe, Departmento of Antioquia.\nThe reproductive usefulness of this work has been\nmanifest and is evident at sight, if we observe the extra-\nordinary progress of the oity of Medellín, P.O 8 manufacturing\ncenter of first importance in Colombia.\nToohnical\n34\n-12-\nTechnical studies that have been going on for - long\ntime make 1t advisable that the construction of three\nlarge hydre-electric plants be undertaken without delay,\ndistributed over the national territory so that they can\nbe utilized by each of the principal areas which, thanks\nto a combination of favorable circumstances, are destined\nto attain a considerable indestrial development in the\nnear future.\nIn this way, one large electric plant bes been planned\nfor the wat of the country, snother in the east and the\nlast in the Departamento of Boyaca. All of them utilize\nnatural voterfalls which so far have represented an us-\nproductive espital, and their ostimated costs amount al-\ntogether to the sum of five million seven hundred twenty-eight\nthousand pesos, which are given separately and in detail\nin Annex No. 4.\nF. INCREASE IN CAPITAL OF THE STABILIZATION FUND.\nThe Government of Colombia has begun to establish\non sound bases the outlines of a policy of public credit\nand regulation of international exchange.\nAn instrument of this policy has been the Stabilization\nFund, the work of which, although provided for by Law 7\nof\n35\n-13-\nof 1936 vas not really begun until last year, in virtus\nof the provisions of Extraordinary Decrees 563 and 669\nof 1940.\nThis organisation, which protects Colombian export\nand import trade from sudden fluctuations of exchange,\nhas contributed effectively toward maintaining the stability\nof our monetary system and consequently toward guaranteeing\nthe interests of foreign investors in the country.\nBy means of a system based on the acquirement of\ncredite for adequate periods, the stabilization Fund has\nbeen able to advance to foreign exporters, at special rates\nof exchange designated reasonably, the value of the goods\nshipped to Colombia, the payment for which had to be post-\nponed for a long time beasuee of the unfevorable conditions\nof our export trade during the past year and due to the\nsevere standards of control of exchange wt.ich it wes neces-\nsary to order in defense of the metallic reserves or the\nCentral Bank of Issue, by means of the classification\nof goods imported into the country in four priority classes.\nTrade with the United States of America new been greatly\nbenefittei, in the first place, by the policy of the\nStalilization Fund to which reference he # been made.\nThe Fund has E capital of its own of three million\nthree hundred thousand pesos and although it has credit\navailable,\n36\n-14-\naveilable, in view of the solidity of its organization, 11\nis necessary to endow it with new resources which will allow\nit to perform its functions better and which can in m\n0180 be lens than two million pesos, & sum which the Govern-\nment 1a planning to devote to augmenting its capital.\nThe menagement of the Fund is entrusted to an autonomous\nBoard composed of the Ministry of the Treasury and Public\nCredit, the Covernor of the Bank of the Republic and one\nmember designated by the President of the Republic.\nC. COST of THE WORKS INCLUDED IN THE PLANS FOR\nREGULATION OF NAVIOATION AID COM-\nSTRUCTION 07 PUBLIC BUILDINGS.\nIn Annex No. 5 there is described in detail the plan\nfor public works and in . separate meporandum there can\nbe seen the observations on the economic importance of\nthe roads that are included in the plan for national high-\nwrys, regarding the undeferrable need for improving the\nnevigation services and with respect to the urgeney of\naccomplishing the construction of various public buildings.\nThe Government is developing a plan of works is the\nespital of the Republic which 10 giving employment to a\nconsiderable number of hands. As these works are bound to\nbe suspended in .... the country can not obtain recources\nderived\n16\nRegraded Uclassified\n37\n-15-\nderived from the utilization of external credit, we shall\nbe feeing a truly difficult situation, einee our economy\nwould be unable to abserb the large number of workers\nemployed on such building work. The continuation of the\nletter is, without any doubt, an cosential factor in the\nmaintenance and stability of social peace in the country.\nThe works mentioned could not be kept up with the ordinary\nresources of the budget, for the Government will find itself\nforced within e short time to establish priority for public\nexpenditures, attending preferably to the payment of\ninterest and emortization of the public debt, interior\npolicing end the strictly necessary services.\n38\nANTISER 15 MUSICAL RELATIONS\nMR. DUGGAN\nMAY 23 1941\nRA\nDEPARTMENT of STATE\n(Alleds)\n-MEMORANDUM-\nDATO DE LAS SUMAS QUE SE PAGAN POR ARRENDAMIENTO DE LOCAD OF\nPARA OFICINAS NACIONALES EN BOGOTA.\nMAY 23 1941\nMayo de 1941.\nTHE AMERICAN REPUBLICS\nDEPARTMENT OF STATE\nCanon\nServicio\nDirección\nmensual\nTotal\nMrio. de Correos y Telégrafos:\nOficinas principales del Minis\nterio\nEdif. Hospicio\n$2.100.-\nOficinas de Correos\nCalle 16.\n800.-\nAuditoría Fiscal del Mrio.....\ncra.8 #18-26.\n80.-\nDepósito de Repuestos\ncra.8,calle19\n100.-\nArchivo del Ministerio\ncalle 14,cra.5\n200.-\n3.280.-\nMrio. de Educación Nacional:\nDepósitos y almacenes\ncelle 16,cra.16\n660.-\n660.-\nMinisterio de Gobierno:\nProcuraduría General\ncalle 12,#-2-60\n380.-\nIdentificación Electoral\ncra.7 #8-65\n350.-\nDepósitos Imprenta Necional.\ncr.19A 12-73..\n80.-\n810.-\nOficina Médico-Legal\nCra. 9a\n140.-\n140.-\nMinisterio ie Guerra:\nOficinas de Intendencia, Avia-\nclón Civil, Marine, Sanidad, Di\nrección General de Servicios y\nbtras\ncr.7,calle 7a. 1.100.-\nTalleres de la Maestrenza.\nCelle 10 #2-43 180.- 1.280.-\nMinisterio de Hacienda:\nDricinas del Ministerio\nCrs.ba. entre\ncalles 13 y14 1.350.- 1.350.-\nMinisterio de la Economia:\nDepartamentos Agriculture, Ga-\nmadería, Comercio y Empresas\nde Servicio Público\nBco. Central H. 1.650,-\nProveduria, Turismo, Almacenes.-\nCalle 15-0-23\n800.- 2.450.-\nPasan\n: 9.970.-\nRegraded Uclassified\n39\n-2-\nVienen\n$ 9.970.\nMinisterio de Minas:\nOficinas principales del Mrio.,\nCalle 12 #8-74\n500.-\nInterventoris de Petróleos\nEd. Vasquez...\n40.-\nArchivo y Sec. Ingeniería\nCr.8A #15-39.-\n160.-\n700.-\nMinisterio de Trabajo:\nOficinas principales del'Mrio..\nEd. Cafdenas..\n1.025.-\nOtras oficinas del Mrio\nEd.Camacho R..\n500.-\nOficine para desocupados\ncre.12 #7-93..\n70.-\nAlmacenes\nCalle 19 #6-25\n120.-\n1.715.-\nContraloria Gral.de la República\nOficinas Principales\nEd. Sefair\n1.400.-\nDepósitos\nCra.7 #5-70...\n50.-\nOtras dependencies\nEd. Solano\n125.-\nCenso Nacional\nCalle 12#10-43\n300.-\nEstadistica y Comercio Exterior\nCrs. 9 #11-12-\n150.-\n2.025.-\nConsejo de Estado\nCra. 7 #7-68..\n600.-\n600.-\nTesoreria General de la Rep....\nEd.Banco de la\nRepública\n1.000.-\n1.000.-\n;\nMuseo Nacional\nBco.de la Rep.\n360.-\n360.-\nSociedad de Agricultores\nCr. 3 #11-66..\n300.-\n300.-\nTotal\n$16.670.-\nArrendamientos pagados mensualmente\n$ 10.670.-\nArrendamientos pagados anualmente\n$..200.040.-\n(fdo) E. de Santamería\nDirector General de Edicios Nacionales\nUclassified\n40\nREPUBLICA DE COLOMBIA\nLeaión\nNúmero\nUnisterie de Hacienda\nANEXO Nª 1\nCredito y Publico\nBoyolá. mayo 9 de 1941\nINVERSIONES NECESARIAS PARA EL PRIMER AÑO DE\nLABORES, o SEA, PARA LA INICIACION DEL PLAN\nOFICIAL SOBRE DEFENSA Y FOMENTO AGRICOLA EN\nLA ZONA BANANERA DEL DEPARTAMENTO DEL MAGDA-\nLENA.\nCampaña oficial contra la infección de la Si-\ngatoka (Véase presupuesto discriminado anexo) $\n353.895.00\nNuevos cultivos (maquinaria agrícola, crédito\ny parcelaciones)\n500.000.00\nCentrales de beneficio\n100.000.00\nGanadería\n50.000.00\nRiegos y drenajes\n183.605.00\nAlmacenes (Comisariatos)\n100,000.00\nCentro Mixto\n50.000.00\nCrédito Bananero\n500.000.00\n$1837.500.00\nDETALLE DE LOS POSIBLES GASTOS DE LA CAMPASA\nCONTRA LA SIGATOKA Y DEL CENTRO DE INVESTIGA-\nCION Y FOMENTO EN UN AÑO.\nAdministración y dirección\n$ 12.120.00\nInvestigación y Extensión\n23.400.00\nJornales\n54.000.00\nTransportes\n6.900.00\nVíaticos\n4,500.00\nOtros Gastos\n20.475.00\naquinarias y equipos de trabajo\n105.000.00\nFungicidas y materiales sanitarios\n105.000.00\nConstrucciones\n15,000.00\nImprevistos\n7.500.00\n$ 353.895.00\nRegraded Uclassified\n41\nREPUBLICA DE COLOMBIA\nPersion\nNúmero\nMinisterio de Hacienda\nANEXO Nº 2\nCrédito Público\nBogota. mayo 9 de 1941\nMEMOBANDIN\nsobre las sumas necesarias para la intensifica-\nción de las obras de irrigación y desecación rea\nlizables por el Ministerio de la Economía Nacio-\nnal en un plazo de dos años, con un presupuesto\nde $2'187.500.00 que son 1'250.000 dólares al\ncambio del 175%\nA) CONCLUSION DE LAS CBRAS QUE SE EJECUTAN ACTUALMEN-\nTE, SIN INCLUIR LAS QUE VAN A SER TERMINADAS El. UN\nPLAZO DE DOS 0 TRES MESES, COMO LA REPRESA DE SAMA\nCA Y LA IRRIGACION DE MARIQUITA.-\na) - Desecación de Fúquene\nPara la terminación del Canal de Ubaté\ny el sector que falta del Saravita en\ndoce meses\n$90,000.00\nPara la construcción de esclusas regu\nladoras y algunas obras accesorias\n70,000.00\nPara pagar el segundo avaluo de los\nterrenos beneficiados\n9.000.00\nTotal para Fúquene\n3169.000.00\n$169.000.00\nb) - Desecación de Sogamoso\nPara la terminación de los canales\nproyectados\n$180,000.00\nPara la adquisición de tres equipos\nde dragado (aproximadamente)\n80,000.00\nPara los avalúos de los terrenos be-\nneficiados\n15,000.00\nPara las obras complementarias de re-\ngulación\n70.000.00\nTotal para Sogamoso\n$345.000.00\n$345.000.00\nPasan\n$514,000.00\n42\nREPUBLICA DE COLOMBIA\nSección\nNúmero\ninisterio de Hacienda\n- 2 -\nCrédito y Público\nBogolá.\nvienen\n$514,000.00\nc) - Irrigación de Bugalagrande.\nPara la conclusión del canal princi-.\npal y sus obras accesorias hasta la\nregión de Ríopaila, en diez meses\n$ 80.000.00\n$ 80.000.00\nTotal para la conclusión de las obras\nque se ejecutan\n$594.000.00\nB) OBRAS ESTUDIADAS Y DE LAS CUALES SE TIENEN\nPRESUPUESTOS MAS 0 MENOS COMPLETOS.\na) - Represa del Siega en Chocontá,\nincluyendo indemnizaciones\n$300.000.00\nb) - Represa del Ríofrío en Tabio\n300.000.00\nc) - Una esclusa sobre el río Bogotá,\nsimilar a la que se construyo en\nla Ramada\n90.000.00\nd) - Esclusa del Tunjuelo, en Bosa\n30.000.00\ne) - Para iniciar el plan irrigatorio\nde Llanogrande y Llano de Orien-\nte, & base del río Neiva, en el\nMunicipio de Campoalegre, inclu-\nyendo la posibilidad de adquirir\nlos terrenos beneficiados para\nparcelarlos y de establecer una\nplanta eléctrica para cinco nu-\nnicipios\n300.000.00\nTotal para las obras estudiadas\n$1'020.000.00\nc) OBRAS ESTUDIADAS POR ALGUNOS DEPARTAMENTOS,\nPERO CUYOS PRESUPUESTOS REQUIEREN UNA REVI-\nSION POR PARTE DEL MINISTERIO DE LA ECONO -\nMIA NACIONAL.\na) - Para iniciar irrigaciones de En-\nciso, Capitanejo y Servitá, en el\nDepartamento de Santander\n$ 83.500.00\nb) - Para iniciar la irrigación de los\nllanos bajos del Tolima, & base\nde los ríos Coello y Luisa\n160,000.00\nTotal para las obras estudia-\ndas por los departamentos\n$243.500.00\n$243,500.00\n43\nREPUBLICA DE COLOMBIA\nSección\nNúmero\nmistorio de Hacionda\n3 -\nCrédito y Público\nBogola,\nNOTA: Estas obras no podrían realizarse en un plazo\nde dos años.\nD).- OBRAS URGENTES DE REALIZACION FACIL Y DE POCO\nCOSTO Y PARA LAS CUALES LOS PRESUPUESTOS SON\nAPRECIABLES CON BASTANTE EXACTITUD POR EL va-\nLOR DE OBRAS SIMILARES.\na) - Represa del río Teatinos\n$ 80.000.00\nb) - Irrigación de Alvarado, en el To-\nlima\n50.000.00\nTotal de estas obras\n$130.000.00\n$130.000.00\nE).- ESTUDIOS PARA INICIAR, CON SUS VALORES APRO-\nXIMADOS.\na) - Estudio de irrigación en el De-\npartamento del Atlántico\n$ 50,000.00\nb) - Estudio de un plan irrigatorio\nen Valledupar y en la provincia\nde Padilla\n50.000.00\n:\nc) - Estudio del Canal del río Palo\npara beneficio de los Municipios\nde Candelaria, Miranda y Pradera\n30.000.00\nd) - Para estudios en el Tolima\n20.000.00\ne) - Para los estudios detallados so\nbre los ante-proyectos existen-\ntes en los Municipios de Carni-\ncerías, la Jagua, el Agrado, Ya-\nguará, Cabrera, Aipe y Baraya\n(Huila)\n30.000.00\nf) - Para estudios en algunas regio-\nnes del Norte de Santander\n20.000.00\nTotal para los estudios\n$200.000.00\n$200,000.00\nRECAPITULACION:\nA) Conclusión de las obras que se adelantan\n$ 594.000.00\nB) ⑈ Para las obras estudiadas\n1'020.000.00\nC) Para obras estudiadas por los Departamen-\ntos\n243,500.00\nD) 1st Para obras de facil realización\n130,000.00\nE) Para iniciar los estudios más importantes\n200,000.00\nSuma Total\n$2'187.500.00\n44\nREPUBLICA DE COLOMBIA\nSección\nNúmero\nUnisterio de Hacienda\nANEXO N° 3\nCrédito y Público\nBogola. mayo 9 de 1941\nMEMOBANDUM\nsobre la estructura económica del Fondo de Fomento Municipal.\nESTATUTOS QUE RIGEN SU ORGANIZACION Y FUNCIONAMIENTO.\nDecretos Nos.503 (marzo 8), 562 (marzo 27) y 575\n(marzo 27) de 1940.\nRECURSOS ECONOMICOS DEL FONDO.\na) - Impuestos de la Ley 12 de 1932;\nb) - Utilidades en el Banco de la República;\nc) - Impuesto sobre consumo de grasas y lubricantes;\nd) - Impuesto sobre primas de seguros;\ne) - 20% sobre el superavit fiscal de cada vigencia;\nf) - Las sumas que se apropien en el presupuesto de gastos de\ncada vigencia para el Fondo;\ng) - Los intereses y reembolsos de las sumas que otorgue en\npréstamo el Fondo;\nh) - El producto de operaciones de crédito y las sumas que los\ndepartamentos, intendencias, comisarías y municipios con-\nsignen como aportes para obras.\nLas operaciones de crédito que obtenga el Fondo pue-\nden hacerse con dos finalidades:\na) - Para incrementar el cupo general de los departamentos, in-\ntendencias y comisarías, y\nb) - Para incrementar el oupo de un determinado departamento,\nintendencia o comisaría, del Municipio de Bogotá, o de de-\nterminada obra del Fondo de Fomento.\nHasta la fecha solamente Be ha efectuado una opera-\nción, consistente en la emisión de la suma de $3'000.000.00\nen \"Bonos de Fomento Municipal de 1940\", autorizados por el\nDecreto 1634 de 1940, para incrementar las obras de Fomento\nMunicipal del Municipio de Bogotá, determinadas en el Decre-\nto 1350 de 1940. La emisión de bonos ne autorizó para amorti-\nsación en 30 afios y con un interés anual de 6%,\nEl servicio de los aludidos bonos lo oubre el Fondo\nde Fomento Municipal al Banco de la República en virtud del\n45\nREPUBLICA DE COLOMBIA\nLexión\nNúmero\nUnisteria de Hacienda\n2\nCrédito Público\nBogolai.\ncontrato de fideicomiso celebrado el 20 de septiembre de 1940,\ny se hace por cuotas trimestrales de cincuenta y cuatro mil\nseiscientos noventa pesos ($54.690.00), o sean doscientos die-\nciocho mil setecientos sesenta peBoB ($218.760.00) anuales,\ncon cargo al cupo del Municipio de Bogota en la distribución\nde los recursos del Fondo.\nFACULTAD PARA CELEBRAR OPERACIONES DE CREDITO\nEl Decreto 503 de 1940, Art. 5º, dispone:\n\"El Gobierno podrá efectuar operaciones de crédito interno o\n\"externo, a corto 0 a largo plazo, con garantía de los recur-\n\"808 propios del Fondo, y el producto de dichas operaciones\n\"se aplicará a cumplir los fines previstos en este Decreto, de\n\"conformidad con lo establecido en el ordinal g) del Art. 2ª.\n\"Los contratos que Be celebren en desarrollo de esta autoriza-\n\"ción, no requieren, para su validez, sino la aprobación del\nExmo señor Presidente de la República, previo el concepto fa-\n\"vorable del Consejo de Ministros y de la Junta Nacional de\n\"Empréstitos. Esta última formalidad no será necesaria para\n\"aquellas operaciones de Tesorería que impliquen únicamente\n\"adelantos & cuenta de las entradas ordinarias del Fondo, y\n\"que deban quedar saldadas dentro de la misma vigencia fiscal\n\"en que se otorguen.\"\nDISTRIBUCION DE LOS RECURSOS DEL FONDO\nDe conformidad con lo dispuesto en el artículo 11\ndel Decreto 503 de 1940, del total de entradas correspondien\ntea a los ordinales a), b), c), d), e) y 1), la ciudad de Bo\ngotá tendrá derecho a un cupo del 15% y el resto se destina-\nrá a inversiones en los departamentos, intendencias y comisa\nrías, distribuyendo el 80% con relación a la población que pa\nra cada una de ellas arrojó el censo de 1938, y el 20% restan\nte, por partes iguales, entre las mismas entidades, siendo en\ntendido que las intendencias y comisarías Be considerarán en\nconjunto como doe unidades. A ou vez, la distribución de lo\nque del 20% citado corresponda 8 las intendencias y comisarías,\nae hará sobre la base de la población respective de cada una\nde estas entidades.\nAPLICACION DE LOS CUPOS Y OBRAS DE FOMENTO\nEl Decreto 503 de 1940 establece las siguientes 0\nbras que pueden atenderse con los fondos del fomento municipal:\n46\nREPUBLICA DE COLOMBIA\nLección\nNúmero\nmistorio de Hacienda\n- 3 -\nCredito Público\nBogolá\nAcueductos, hasta un 60% del costo de la obra;\nAlcantarillados, hasta un 60% del coato de la obra;\nLocales escolares para la enseñanza primaria, hasta por\nel total de su costo;\nHospitales, hasta por el total de Bu costo, y\nPlantes Eléctricas, en la proporción de aporte que esta-\nblece la ley 126 de 1938\nCon respecto al Municipio de Bogotá el Decreto orgá-\nnico del Fondo dispone que el Gobierno señalará por decretos\nespeciales, las obras con destino a las cuales el Fondo puede\nhacer operaciones para la ciudad dentro del 15% previsto.\nARBITRIOS FISCALES DEL FONDO EN EL BIENIO 1940-1941.\nEn 1940 ingresaron al Fondo de Fomento Municipal las\nsiguientes cantidades:\nPor rentas de la ley 12 de 1932\n$1'717.666.42\nPor participación en Superavit fiscal de 1939..\n208.773.62\nPor apropiaciones presupuestales\n452.000.00\nTotal\n$2'378.440.04\nPara 1941 se hallan presupuestadas a favor del Fon-\ndo las siguientes cantidades:\nRentas de la ley 12 de 1932\n$2347.863.45\nImpuestos sobre grasas y lubricantes\n298.224.93\nImpuesto sobre primas de seguros\n88.648.35\nUtilidades en el Banco de la República\n456,666.66\nParticipación Superavit fiscal 1940\n340,000.00\nTotal\n$3'531.403.39\nRESUMEN:\nTotal para el bienio:\n1940\n$2'378.440.04\n1941\n3'531.403.39\n$5 909.843.43\nRegraded Uclassified\n47\nREPUBLICA DE COLOMBIA\nPersión\nNúmero\ninisterio de Hacienda\n4\nCrédito Publico y\nBogolá.\nLos productos de las rentas del Fondo de Fomento en\nel primer trimestre del presente año, se han presentado así:\nRentas de la ley 12 de 1932\ndo\n$ 661.826.59\nImpuesto sobre primas seguros\n443.87\nImpuesto sobre consumo de grasas y lubricantes.\n92.913.14\nUtilidades en el Banco de la Republica\n250,000.00\nTotal en el trimestre\n$1'005.183.60\nPROGRAMA DE INVERSIONES EN EL BIENIO 1940-1941\nLa Junta Directiva, al iniciarse el funcionamiento\ndel Fondo, señaló la suma de $7'300.000.00 como monto total de\nlos recursos del Fondo que debían distribuírse en el cupo de\nlos departamentos, intendencias y comisarías, y el Municipio\nde Bogotá, distribución que dio el siguiente resultado:\nMunicipio de Bogotá\n$1'095,000.00\nDepartamento de Antioquia\n782.351.22\nH\ndel Atlantico\n236.717.83\n\"\nde Bolívar\n531.296.92\n\"\nde Boyacá\n514.796.73\n\"\nde Caldas\n534.126.40\n\"\ndel Cauca\n288,681.42\n\"\nde Cundinamarca\n578.196.50\nIf\ndel Huila\n206.045.42\n\"\ndel Magdalena\n280.545.57\n\"\nde Nariño\n353.803.99\nII\nde Santander del Norte\n282.834.12\nH\nde Santander\n442.654.48\n\"\ndel Tolima\n402.386.95\n\"\ndel Valle\n441.186.45\nIntendencias\n197.083.94\nComisarías\n132.292.06\nTotal\n$7'300.000.00\nLa Junta Directive del Tondo, hasta la fecha, ha a-\nprobado contratos por un monto total de $5'493.554.43, distri-\nbuídos así:\nPara acueductos\n$1'712.566.16\nPara alcantarillados\n451,162.60\nPara plantas eléctricas\n402.072.14\nPara hospitales\n385.390.09\nPara locales escolares\n847.637.86\npasan\n$3'798.828.85\n48\nREPUBLICA DE COLOMBIA\nLección\nNúmero\nmisterio de Hacienda\n- 5 -\nCredito y Público\nBogolá.\nvienen\n$3'798.828.85\nContrato global Departamento de Caldas\n384.126.40\nM\n\"\n-\nde Antioquia.\n447.772.62\nMunicipio de Bogotá\n862.826.56\nTotal\n$5'493.554.43\nPor cuenta de los contratos anteriores se han efec-\ntuado pagos, por valor de $1'875.318.52.\nEl manejo financiero del Fondo corresponde exclusi-\nvamente al Ministerio de Hacienda y Crédito Público, de confor\nmidad con el artículo 7º del Decreto 503 de 1940.\n49\nREPUBLICA DE COLOMBIA\nServion\nNúmero\nHinisterio de Hacienda\nANEXO Nº 4\nCrédito y Público\nBogola. mayo 9 de 1941\nPRESUPUESTO PARA LA CENTRAL HIDROELECTRICA\nDEL RIO PALO.-\nCaracterísticas:\nCaída: 170 metros netos\nCaudal: 10 m³/seg.\nPotencia: 10.900 kilowatios en los bornes del generador\nPoblaciones que se benefician: Cali, Calcto, Puerto Tejada,\nSantander, Corinto y Miranda.\nObras de captación\n$ 50.000.00\nCanal de conducción: Longitud 12 Km. revestido\nen concreto reforzado a $124.25 metro\n1'491.000.00\nDesarenadores: 900 metros cúbicos de concreto\narmado a $85.00 cada uno\n76.500.00\nObras de arte: túneles, viaductos, etc\n160.000.00\nCámara de carga: 250 metros cúbicos de concreto\narmado a $85.00 cada uno\n30.000.00\nAnclajes: para tubería de presión 585 metros cú\nbicos a $30.00 cada uno\n17.500.00\nTubería de presión: Díámetro 84\" Longitud 600\nmetros. Peso'830 toneladas a $400.00 cada una..\n332.000.00\nCasa de máquinas: incluyendo montaje\n45.000.00\nMaquinaría: 2 grupos de 5500 KW cada uno\n190.000.00\nSub-estaciones:\n110.000.00\nLínea de alta tensión: 60 Km a $4,000.00 Km....\n240.000.00\ntotal\n$2'742.000.00\nPrecio del kilowatio generado y trasmitido $249.27.\n50\nREPUBLICA DE COLOMBIA\nSección\nNúmero\nUnistorio do Hacionda\n2\nCrédito y Público\nBogolá.\nPRESUPUESTO PARA LA CENTRAL HIDROELECTRICA DEL RIO SUAREZ\nCaracterísticas:\nCaída: 100 metros netos\nCaudal: 10 m3/seg.\nPotencia: 6700 kilowatios en los bornes del generador\nPoblaciones que se benefician: Socorro, Contratación, Simacota,\nChima, Guane, Galán, Palmar, El Hato, El Páramo.\nObras de captación\n$ 80.000.00\nCanal de conducción: 5 Km a $125.00 metro\n625.000.00\nDesarenador: 800 metros cúbicos de concreto a\n$85.00 cada uno\n68.000.00\nCámara de carga: 250 metros cúbicos de concreto\narmado a $85.00 cada uno\n30.000.00\nObras de arte: túneles, viaductos, etc\n100.000.00\nAnclajes para la tubería: 300 metros cúbicos de\nconcreto cilcópeo a $30.00 cada uno\n9.000.00\nTubería de presión: 700 toneladas a $400.00 c/u\n280.000.00\nCasa de máquinas: incluyendo montaje\n40.000.00\nMaquinaria: 2 grupos de 3350 KW cada uno\n130.000.00\nSub-estaciones:\n120.000.00\nRed de alta tensión: 40 Km a $4,000.00 cada uno\n160.000.00\ntotal\n$1'642.000.00\nPrecio del kilowatio generado y trasmitido: $245.07.\n51\nREPUBLICA DE COLOMBIA\nInción\nNúmero\nlinisterio de Hacienda\n3\nCrédito y Túblico\nBogolá.\nPRESUPUESTO PARA LA CENTRAL HIDROELECTRICA DEL LAGO DE\nTOTA\nCaracterísticas:\nCaída: 400 metros netos\nCaudal: 2 m3/seg.\nPotencia: 5.500 kilowatios en los bornes del generador.\nPoblaciones que se benefician: Tunja, Sogamoso, Duitama, Paipa,\nCorrales, Santa Rosa, Sotaquirá y alrededor de unos 20 munici-\npios pequeños por donde pasarán las líneas de trasmisión.\nObras de captación:\n$ 50.000.00\nTúnel: 300 metros de longitud para un gasto de\n2 metros cúbicos/seg. a $150.00 metro\n45.000.00\nCámara de compensación: para una altura de 30\nmetros y en concreto armado\n85.000.00\nTubería de presión: Longitud 3.000 metros. Diá-\nmetro 42\" incluyendo aparatos de seguridad, vál-\nvulas, etc\n550.000.00\nAnclajes para tubería de presión: 300 metros cú\nbicos a $30.00 cada uno\n9.000.00\nCasa de máquinas: incluyendo montaje\n35.000.00\nMaquineria: 2 grupos de 2750 KW cada uno\n100,000.00\nSub-estaciones\n150.000.00\nLínea de alta tensión: 80 Km. a $4,000.00 Km...\n320.000.00\nTotal\n$1'344.000.00\nPrecio del kilowatio generado y trasmitido: 8244.36\n52\nREPUBLICA DE COLOMBIA\nLección\nNúmero\ninisterio de Hacienda\n- 4 -\nCrédito y Público\nBogolá.\nRESUMEN:\nCentral \" Hidroeléctrica de Río Palo.. $2'742.000.00\nH\n\" Río Suáres 1'642.000.00\nIf\nH\nIf Lago de\nTota......\n1344.000.00\nSuma\n$5'728.000.00\n53\nREPUBLICA DE COLOMBIA\nProvion\nNúmero\nUnisteria der Hacienda\nALLXO Nº 5\nCrédito Publico\nBogola. mayo 9 de 1941\nCOSTO DE LAS OBRAS QUE COMPRENDEN LOS PLANES\nDE CARRETERAS, DE REGULARIZACION DE LA NAVE-\nGACION Y DE CONSTRUCCION DE EDIFICIOS PUBLI-\nCOS.\nCarreteras\nSonsón-Dorada (para dar paso en toda su longitud\ne iniciar algunas obras de arte definitivas)\n$\n650.000.00\nPauna-Río Magdalena (para llevar la obra hasta\nel Río Minero)\n180,000.00\nSogamoso-Casanare (para adelantar las obras has-\nta cerca de la entrada de los llanos)\n210,000.00\nVilleta-Guaduas-Honda (para terminar la obra)\n360.000.00\nNeiva-Palermo-Palmira (para dejar terminada más\nde la tercera parte de la vía)\n500,000.00\nCiénaga-Fundación (para dejar terminada la obra)\n100.000.00\nLa Paz-Chiriguana (para terminarla)\n100.000.00\nPasto-Puerto Asís (para terminar la carretera\nhasta Urcusique y hacer un camino de herradura\nde Urcusique & Puerto Asís)\n100.000.00\nGamarra-Ocaña (para terminarla)\n160,000.00\nLa Ceiba-Abrego (para ejecutar la mitad de la o-\nbra)\n600.000.00\nPandi-Colombia (para llevar la carretera hasta\nla Colonia)\n200.000.00\nCali al mar (para dar paso con obras de arte pro\nvisionales)\n400.000.00\nBolívar-Quibdó (para dar paso con obras de arte\nprovisionales)\n390.000.00\nIstmina-Quibdó (para terminarla)\n360,000.00\nCuestecita-Carraipia (para hacer la totalidad de\nla obra)\n90.000.00\nVenecia-Tres Esquinas (para hacer todos los estu\ndios)\n100,000.00\nSuma\n$4'500,000.00\n54\nREPUBLICA DE COLOMBIA\nImain\nNúmero\ninistorio de Hacisnda\n- 2 -\nCridito y Público\nBogota.\nNavegación\nPara compra de accesorios y repuestos de dragas\ny equipo adicional para las mismas\n$\n415.000.00\nPara dotación de equipos mecánicos en los puer-\ntos del río Magdalena y accesorios que permitan\nsu instalación\n230.000.00\nPara la adquisición de un equipo adicional para\nmanejo de carga en el Terminal Marítimo de Ba-\nrranquilla\n60.000.00\nPara montaje de talleres centrales en Barranqui\nlla (suma indispensable para su iniciación)\n400.000.00\nSuma\n$1'105.000.00\nConstrucciones\nPara terminar el edificio de correos nacionales $ 800.000.00\nPara la terminación del edificio nacional de\nPasto\n290.000.00\nPara terminar la construcción del edificio de\nlos ministerios\n600.000.00\nPara terminar las obras de la Ciudad Universita\nria\n600.000.00\nSuma\n$2'290.000,00\nRESUMEN\nInversión en Carreteras\n$4 500.000.00\nInversión en Navegación\n1'105.000.00\nInversión en Construcciones\n2'290.000.00\nSuma\n$7'895.000.00\n55\nmont\nTREASURY DEPARTMENT\nINTER-OFFICE COMMUNICATION\nDATE June 7. 1941\nTO\nSecretary Morgenthau\nFROM\nMr. Cochran\nAt 3 o'clock yesterday afternoon I received Mr. Coyne, Financial Attache of\nthe Canadian Legation. Ee told me that he is leaving shortly for Canada to obtain\ninformation there with respect to the working of the plan enunciated at Hyde Park\non the occasion of Prime Minister Mackenzie King's recent visit with the President.\nFurthermore, Mr. Coyne hoped to obtain data sufficient to revise his report to the\nTreasury on the Canadian financial position. He will give us something on this\nsubject as soon as possible. He is going to look particularly into the subject of\nre-registration of Canadian holdings of dollar securities and other investments.\nJul\nRegraded Uclassified\n13998\n56\nNo. 1581\nOttawn, June 7. 1941.\nSubject: Periodical report on general conditions in Canada.\nThe Honorable\nThe Secretary of State,\nWashington, D. 0.\nSir:\nI have the honer to transmit a report on general conditions in\nCanada for the period from May 30 to June 6, 1941, inclusive.\nRespectfully yours,\nPierrepont Moffat.\nTrue copy of the original\nsigned by\nIn quintuplicate to Department.\n800\nJGP/ems\n57\n5) Plans to implement Hyde Park declaration - Reports\nof monetary neasures.\nA series of news reports from the United States has\ngiven publicity in Canada to a type of economic collaboration\nwhich is scarcely welcome in Ottawa, especially among those\ndirecting Canada's financial policies. A correspondent of\nthe North American Newspaper Alliance wrote that & \"stabilization\nagreement\" was likely, that the American dollar might become\nlegal currency in Canada and that monetary measures under con-\nsideration might lead to a complete economic union. The author\nof this report based the foregoing predictions on allegations that\nthe President and the Prime Minister were planning far in advance\nof public opinion or knowledge neasures to link the American and\nCanadian economies more closely together. Other reports under\nAmerican datelines have favored loans to Canada under the lease-\nlend formula, and Senator Mead of New York has been reported\nas specifically referring to: the desirability of closer\ncollaboration on monetary matters.\nRegraded Uclassified\n58\nIV. INTERNAL POLITICAL AFFAIRS.\n1) Current political and other factors as related to\nCanada's var effort.\nThere are at present three major subjects of interest in\nconnection with Canada's var affort. the recurrence of\nDominion-Provincial friction, the lagging drive for recruits, and\nthe Victory Loan campaign.\na) Dominion-Provincial relations: Ontario.\nMasking his fight to retain control over the lucrative\nincome and corporation tax fields, Mr. Hepburn of Ontario last\nweek based an implied refusal to vacate these fields on what\nhe termed the unjust increase in the federal withholding tax on\nprovincial bonds - a relatively trivial matter. In BO doing\nhe placed himself in the position of defending the American\nbondholder, of threatening his electors with double taxation, and\nof prejudicing the success in Ontario at least of the Victory\nLoan campaign. Nevertheless, the Dominion Government decided\nthat it could not wait for time to make Mr. Hepburn's position\nindefensible and, with the success of the loan campaign and the\nimportance of preserving Canadian unity in mind, abandoned on\nJune 5 the proposal to increase the withholding tax on provincial\nbonds. This decision, an admission of Mr. Hepburn's nuisance value,\nhad the effect of removing his given reason for retaining the income\nand corporation tax fields and left the next nove up to Mr. Hepburn.\nThe nove vas not long delayed. On the evening of the same\nday, although he had been the arch-wrecker of the abortive Sircis\nconference in January, Mr. Hepburn proposed that Prime Minister King\ncall & Dominion-Provincial conference to discuss \"a solution of\n59\nRegraded Uclassified\npresent taxation issues, provincial autonomy, industrial harmony\nand a spirit of wholesome good-vill between the Dominion and\nProvincial Governments of Canada\". Such honeyed language from\nMr. Hepburn is an indication that he is in retreat and in effect\nthe position now seems to be that he prefers to continue his\nfight for provincial autonomy at & full conference table rather than\nin & straight two way exchange with the Dominion Government. It\nis believed that at such a conference he would be prepared to agree\nat most to a wartime settlement of Dominion-Provincial financial re-\nlations and that he would insist on post-war restoration of the\nincome and corporation tax fields. In this, to judge from a recent\nspeech, he would have the support of Premier Aberhart at least,\nand could as well remind the government that in his budget speech\nof April 29, Mr. Ilaley had stated that the government did not\nintend to get the provinces out of these tax fields permanently.\nOn June 6 the Prime Minister, who, it will be recalled, left\nthe door open for a. second Dominion-Provincial conference at the\ntime the first one failed, replied to Mr. Hepburn that if all the\nProvinces \"should unite in a request\" for another conference, the\nGovernment would consider it at once. In other words Mr. King will\nnot assume the responsibility for a second conference until it is\nsafe to do 80. It is evident, however, that an advantage has been\ngained by removing Ontario's alleged - if absurd - grievance and there\nis now ground for optimism that the teeth have been drawn from\nMr. Hepburn's wilful threat to Canadian unity.\n60\nb) Recruiting Campaign - Army program.\nConfirming the unfavorable impression which the public\nhad gained, the Minister of National Defence told Parliament\non June 5 that only 7,655 out of the 32,000 required had thue\nfar been recruited for the active Army during the present\nintensive campaign. The Minister professed optimism but none-\ntheless there are two reasons for concern over the lack of en-\nthusiasm of Canada's youth for voluntary service overseas.\nIn the first place the pressure in favor of conscription\nboth from the public in Ontario and certain of the other\nEnglish speaking Provinces has been immensely increased and\nconscription sentiment is of course very strong among most\nArmy officers. This issue has been much confused by special\npleading in Canada and it has never been squarely and publicly\nstated by the Government. In effect and in simplified terms, if\nthe campaign for recruits fails Canada will have to choose\nfirst between conscription and unity, and second between a major\nindustrial contribution and & major contribution of fighting\nmanpower.\nIn the second place there is concern for Canada's war\neffort by reason of the lagging recruiting because Canada is\npledged to send overseas this year the 3rd and 4th division,\nthe armored division and the tank brigade. No important\nfraction of any of these units has yet left Canada. Aside from\nthe military effect of any failure to carry out the selfimposed\nRegraded Uclassified\n61\nschedule for the overseas despatch of troops, the ultimate\npolitical effects in Canada would be most serious.\nc) Victory Loan.\nIn contrast to the foregoing aspects of Canada's wartine\nactivity the Victory Loan, at the present early stage in the\ncampaign, appears to be an unqualified success. It is\ndemonstrating how generously the people will respond, financially\nat least, to & well planned and well organized drive. It is\neven said that the initial subscriptions were no large that\nthe Government had to resort to the device of deferring an-\nnouncement of B part of the subscriptions for fear of the\nimpression gaining ground that there was no longer need for\neveryone to participate. The easy success of this loan would\nbe a source of immense satisfaction to a government which,\ncritice to the contrary notwithstanding, has since June 1940\nplaced the primary emphasis on production and acted up to the\npresent at least on the rather bold thesis that anything that\ncould be produced by Canada could be financed.\n2) Parliament - Minister of Finance.\nParliament was unable to conclude its business by Friday\nnight June 6, as hoped although sitting from 11 a.m. to 11 p.m.\ndaily. Third readings have been given. however, to all of the\nbudget bills and aside from the main estimates for the current\nyear, little business of importance remains.\nIt is perhaps worth noting that the handling of the budget\nby the Finance Minister, Mr. Ileley, has through more than &\nRegraded Uclassified\n62\nmonth of sometimes tedious, sometimes searching debate been\ncharacterised by patience, openness of mind, clarity of thought\nand expression, and a tenacity and adherence to important\nprinciples which have marked Mr. Ilsley as an exceptionally\nable man. His prestige has increased enormously.\n10 AME DECREIVE\nE\n100\nBSI my SR bill 3 S2\neh:copy\n6-25-41\nBECEINED\nRegraded Uclassified\n63\nPARAPHRASE or TELEGRAM RESERVED\nFROM: American Bubancy, (Paris) Vicky\nDATE: June 7, 1941, 3 p.m.\nNO.: 4w\nA Foreign Office source informed us recently that\nthe setting up of three German Commissioners, one for foreign\ntrade, one for the Bank of France, and one for foreign exchange,\nformed a part of the latest Franco-German collaboration. &\nprivate source has now given us, in the strictest confidence,\npertinent paragraphs of what is said to be Official Report\nno. 57 of the French Delegation to Wiesbaden, for the week\nMay 11-18. The Embassy believes that this information is\nauthentic, it appears that a rather full summary by telegraph\nis worth sending to the Department:\nAs for the Commissioner of Foreign Trade: The French\nGovernment agrees to the setting up of a Commissioner for\nForeign Trade, who shall receive prier notification of any\nmodification in policy concerning the foreign trade of France\nand trade between the Colonies and France itself, as well as\nbetween continental France and its territories under protectorate\nand mandate. All facilities for controlling the carrying out\nof import and export schedules shall be received by the Commis-\nsioner, and such schedules shall not be drawn up without the 6ca-\nmissioner's approval. If the interests of Germany are involved,\nthe Commissioner may vote the delivery of importe and experts.\nThe Finance Ministry may be requested by the Commissioner to\nfurnish\nRegraded Uclassified\n64\n- 2\nfurnish all information he considers necessary with regard to\nforeign trade, and to furnish all documents he thinks assessary.\nAny coonemic negotiations with a third power which the French\ndeverment proposes to undertake shall be naše known to the\nCommissioner, and the progress of the negotiations shall be\nmade known to him. A special agreement between the French\nand German Governments will be necessary for the entry into\neffice of the derman Foreign Trade Commissioner.\nAs for the Commissioner for the Bank of France:\nIt is agreed by the French Government that a German Commissioner\nshall be established at the Bank of France. The Bank of France\nshall keep the Commissioner permanently informed of all neasures\ntaken by the Bank. The Commissioner my inquire into all\nthe Bank's operations and decide what actions and operations\nmust receive his prior approval before being carried out.\nOn credit operations to be granted or requested shread, the\nCommissioner must give his prior opinion. the Commissioner\nwill take seguisence of any balances, statements or other\ndocuments sent to the organization which is charged with\ncontrol of banking, and through the Bank of France he my\ndenand any and all supplementary domments and information\nfrom other banks. The authority of this Commissioner because\neffective on the twentieth of May. (Note: Reference is made\nto telegram of July so, 6 p.m., 1940, m. as from the liabassy\nand subsequent reporting that under their on regulations,\nlast numer the German occupying authorities installed a\nRegraded Uclassified\n65\n- B\nCommissioner, Schaeffer. Apparently the present agreement\nwas for the purpose of putting the stamp of full approval\non his authority by the French.)\nAs for the Foreign Exchange Commissioner: It is agreed\nby the French Govemnent that a German Foreign Exchange\nCommissioner shall be set up. Prior notification of any\nmodification or addition to the French regulations having\nto do with gold and foreign exchange shall be made to this\nCommissioner. Likewise, he shall be notified regarding any\nneasure for carrying out such regulations, being given a period\nof ten days within which his objections may be filed. The\nCommissionar is expewered to make suggestions for the medifica-\ntion, supplementation and execution of existing provisions\nwhich, when they correspend to the interests of Germany and\nFrance, shall be carried out. Whenever German interests are\ninvolved, the Commissioner may vote French foreign exchange\nlegislation. The Commissioner shall be given prior notification\nof any medification of legal provisions having to de with\nthe exchange stabilization fund, and a ten day period for\nfiling objections is stipulated. All transactions of the\nexchange stabilization fund shall be personently nade known\nto him. Through the Finance Ministry, the Commissioner may\nrequest all information and documents he considers necessary\nwith regard to French control of exchange. The Commissioner\ntook office on the twentieth of May.\nRegraded Uclassified\n66\n- 4 -\nThere are also interesting paragraphs 02 French control\nof the frontiers in the report, which are given below:\n(in paraphrase)\nIt is agreed and declared by the French Government that\nthe Commissioner of Foreign Exchange and the Commissioner\nof Foreign Trade may employ German customs agents not to\nexceed 200 in number in the unoccupied suns in elliter carry\nout their mission. By means of an intermittent Ontrol it\nshall be the duty of these agents to supervise French Customs\noperations regarding merchandise and monetary trankie\nforeign frentiers and at airports where there is customs authority\nThe supervisory organizations may, through the French linison\nagent who accempanys them, suspend suspected sperations or\nproceed to measures of specified control when danger of fraud\nis feared.\nThe French Government shall be charged with taking all\nneasures tending to facilitate the installation and work of\nthese centrol organizations.\nIt is agreed by the French Government that the number\nof open frentier ports shall be reduced to a sinimum. The\ncontrol services on the part of Germany shall be effective\nthe thirtieth of May.\nThis telegram has been repeated to the Berlin Rubassy.\nLEANY.\nEA:LNW\nRegraded Uclassified\n67\nC\n0\nP\nY\nAUSTRALIAN LEGATION,\nWASHINGTON, D. C.\nJune 7th, 1941\nDear Mr. Cochran,\nWe thought that perhaps informally you\nwould like to have a summary of a recent telegram.\nwe have received regarding a change in the Austra-\nlian National Security Exchange Regulations.\nThe Regulations have been amended to\nprovide that all persons in Australia who own United\nStates or Canadian dollar funds or currency in any\nshape or form, either overseas or in Australia, must\nsell these funds to the Australian Government. The\namendment provides, in addition, for the control\nof sales, loans, transfer or mortgages of any lands\nor securities owned by persons outside the sterling\narea to another person outside the sterling area.\nUnless permission is first obtained from the Common-\nwealth Bank transfers will in future be illegal.\nWe thought that conceivably the information\nwould be of use to you.\nYours sincerely,\n(Signed) P. R. Heydon\nH. Merle Cochran,\nTechnical Assistant to the Secretary\nof the Treasury,\nTreasury Department,\nWashington, D. C.\nOPY - dm - 6/10/41\nRegraded Uclassified\n68\nC\n0\nP\nI\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM:\nAmerican Consul, Berlin, Germany\nTO:\nSecretary of State, Washington\nDATED:\nJune 7. 1941, 12:15 p.m.\nNUMBER: 2244\nAthens reports have been received to the effect that it has been agreed\nby the German-occupying authorities to pay a 20 percent premium on all pur-\nchases in Greece for the German armed forces because of the price rise since\nthe conquest. Credit in the clearing account will constitute the form of\npayment. A certain percentage of all types of products exported to Germany\nwill be left for the use of domestic industries in Greece.\nAs in other conquered countries there have been substantial increases in\nprices and heavy purchases by Germany for export to Germany 99 well as sup=\nplies for the occupying forces. The inevitable result of paying through 5\nclearing account will be to build up a large clearing dobt which Germany will\nowe. Significance may be attached to the fact that it has been found expedient\nby Germany to promise not to take all raw materials, which are available in\nGreece in quantity end which Germany greatly needs, such as hides and akins,\nmagnesite and iron ore, tobacco and resin.\nCopy:alm 6-11-41\nRegraded Uclassified\nU. S. TANK VISSELS IN PORTS we THE UNITED STATES\nDATE OF\nVOYAGE FOR WHICH LOADING\nRIO\nNAME\nCARGO CAPACITY\nPRESENT LOCATION\nARRIVAL\nOR INTENDING TO LOAD\nREMARKS\nas\nANTINTAN\n75,000 bble.\nSeattle\n6/5/41\nVictoris,3.C.(me ourgo)\nActive\nas\nCAMDEN\n78,000 bbls.\nTeems,Wash.\n6/5/41\nSan Pedro,Cal.(no carge)\n4a\nRegraded Uclassified\nR. J. HANNA\n75,000 bble.\nPortland, Orogon\n6/5/41\nRichmond,Cal. (no carge)\n.\nLA PURISIMO\n62,000 bble.\nParkland,\nOregon\n6/6/41\nCalifornia (no cargo)\n.\nEMIDIO\n80,900 Mols.\nPortland,\nOregon\n6/6/41\nSea Pedro (no cargo)\n-\nCHRISTY PAYNE\n91,800 this.\nCharlesten\n6/5/41\nSevennah\n-\nC.B.WATSON\n80,000 bbla.\nCharleston\n5/5/41\nJacksonville\n-\nGULFLAND\n55,000 bbls.\nCharleston\n8/6/41\nUnreported\n-\nSS\nW.V.BROCK\n81,458 bbls.\nBeltinare\n6/6/41\nLake Charles, Le.\n-\nTRIMINAIN\n80,000 bble.\nBultimare\n6/6/41\nWilmington, N.C.\n-\n85\nL. M. CLASK\n119,410 this.\nBeltimere\n8/5/41\nBoytom, Teme\n#\nISSO DOVER\n105,790 bbls.\nBultimare\n4/22/41\nprobably Teams part\nActive -\nundergeing alterntions\nCARRABULLE\n33,350 bblo.\nPoltiners\n5/4/42\nDeminion Reyablic\nActive\nas\nBEAUNCING PARKS\n45,000 Hels.\nDelath\n6/5/41\nChicago\ndo\n18\nTRENE ELLEN\n10,500 bhls.\nToledo, Chie\n5/29/41\nBuffulo\n-\n85\nMEXOYL\n16,800 bble.\nToledo\n6/8/41\nLackswoma, N.Y.\n.\n88\nCHUDOIL\n18,000 His.\nBuffulo\n6/6/41\nClovalend or Bay city\nse\nID JERSEY\n72,000 bble.\nPhilodelphie\n6/5/41\nBayenne, No J.\n-\nSS\n72,000 bble.\nPhiladelyhis\n8/6/41\nHer York\n88\nORFICE\n72,000 bbla.\nPhilodelphis\n6/6/41\nDareported\n-\nSS\nPAPORSE\n72,000 bble.\nPhilodelyhia\n8/6/41\nPart letter\n.\n55\n3. 1. TAX DIKE 181,000 Hols.\nPhilodelphis\n8/6/41\nTexas\nas\nALBERT HILL\n10,500 team\nPhiladelphia\n5/6/41\nTexas\n$8\nTOSTEN\n10,066 tene\nPhiladelphia\n6/6/41\nJersey City\nGULF COAST\n80,000 bbls.\nPhiladalphia\n6/6/41\nNew Terk\nSS\nSVIFTSURE\n62,500 bble.\nPhilodelphia\n6/5/41\nMetanued\nmissere\n88\nDIXIANO\n43,000 Hols.\nPhilodelphis\n6/5/41\nOuts\nmissess\nREITEFLASH\n941 tem\nPhilodelphia\n6/6/41\nAtlantic City\nBB\nROBERT X COLLEY 17,525 tear\nPhilodelyhia\n6/6/41\nChester, Pas - 10\ndays repairs\n69\n1. H. NUM\n18,740 team\nPhiladelphia\n6/8/41\nTexas\nas\nDATE OF\nVOYAGE FOR WHICH LOADING\nRTO\nNAME\nCARGO CAPACITY\nPRESENT LOCATION\nARRIVAL\nOR INTENDING TO LOAD\nREMARKS\nMS\nIN PENN\n111,800 bbls.\nPhiladelphia\n6/6/41\nUnknown\nActive\nno\nCALORIA\n1,250,000 gals.\nPhiladelphia\n6/6/41\nOuba\nde\nRegraded Uclassified\n(malasses)\n1880 NEW ORLEANS\n160,000 bble.\nBesten\n5/28/41\nCarpus Christi\n.\nPAN MARTLAND\n66,000 bbls.\nBoston\n6/5/41\nTexas City\nSOCONY VACUM\n115,006 bbla.\nProvidence, R.I.\n6/6/41\nBecoment\nBINKENHERAD\n71,000 bblo.\nBoston\n6/5/41\nDocument, Texas\nPAN AMOOO\n97,500 bble.\nPertland, Maine\n6/6/41\nTeams City\n.\nFUROIL\n41,800 bble.\nWilnington, N.C.\n6/6/41\nPort Arthur, Terms\nW.S.MILLER\n74,640 this.\nBear Transisco\n6/5/41\nn Segundo, cal.\n.\nBALIMILL\n60,590 bbls.\nSan Transisco\n6/4/41\nPortland, Oregan\nB DEGOLIA\nST,500 Wels.\nSex Transisco\n5/4/41\nSan Pedro\n-\nLEX MIRAVLORES\n5,574 team\nSen Transisco\n6/26/40\nInstillist -\nunlergoing repairs\nBOLANA\n62,000 bbls.\nSee Prescises\n6/6/41\nLes Angeles\nActive\nLARRY DONENT\n11,586 tene\nBen Trunsises\n3/19/41\nInstilliest .\nundergeing repaire\nMONTHBILLO\n60,000 bbls.\nSea Francisco\n8/5/41\nHemolulu\nActive\n=\nALLAN JACKSON\n70,000 bbls.\nPart Everylades,\n6/6/41\nUnreparted\nto\nFlorida\n86\nISSO CONCORD\n100,000 bbls.\nPart Everglades,\n6/5/41\ndo\nFlorida\nFURE WORFORD\n29,600 bble.\nPort Everglades,\n6/5/41\n-\nFlorida\nBarge\nPURE TYOLINE\n£1,000 bbla.\nPort Prorglades,\n6/5/41\n-\n.\nFlorida\n6/3/41\n.\nALBERT E WAITS\n81,583 bbls.\nNew York\nPort Arthur\n18\nBACOI\n15,000 bblo.\nNew York\nUnimown\n-\nImetive\nBYRON D BENSON\n91,695 bbls.\nNew York\n6/3/41\nPort Arthur\nActive\nC.A.CANFIELD\n71,895 able.\nNew Yesk\n6/8/41\nArube\n-\nCASSIMIR\n48,000 bble.\nNew York\n8/4/41\nCube\n-\nCITIES SERVICE\n66,680 bble.\nNew York\n5/2/42\nPart Arthur\n-\nFUEL\nCOMOL RECO\n81,800 Wals.\nYou Tax\n6/3/40\nOutse\n.\n70\nU. S. TAXE TASSELS IS PORTS THE UNITED STATES (CONT.):\n- ? 1941\nDATE OF\nVOYAGE FOR WHICH LOADING\nRIO\nNAME\nCARGO CAPACITY\nPRESENT LOCATION\nARRIVAL\nOR INTENDING TO LOAD\nREMARKS\n88\nL.C.SEUBIRT\n102,052 bbls.\nNew York\n5/31/41\nCaripito\nArtive\nSS\nISSO ARUBA\n125,860 bbls.\nNew York\n5/30/41\nCaripite\ndo\n83\n1380 ANNAPOLIS\n145,000 bble.\nNew York\n6/2/41\nCorpus Christi\nas\nISSO HOUSTON\n105,415 bbls.\nNew York\n6/5/41\nYou Orleans\n-\nMB\nFLORIDA\n101,120 bbls.\nNew York\n6/6/41\nPart Arthur\n#\n88\nFUEL OIL\n10,666 bbls.\nNew York\n6/6/41\nMayous Hook\n.\n86\nCAROCYLE\n80,440 bbls.\nNow York\n6/6/41\nBesument\n16\nOULFHAWK\n120,786 bbls.\nNew York\n6/6/41\nLas Piedras\n#\nss\nMAGEOLIA\n124,307 bbls.\nNew York\n5/28/41\nBermont\n3\nSB\nMOBILGAS\n180,500 Nols.\nfor York\n6/8/41\n1\n-\n8S\n0. M. BENNUTE\n109,965 bole.\nNew York\n6/6/41\nTexas City\n-\nS8\nPAUL I HARNOOD\n79,810 bble.\nYes York\n12/9/40\n-\nInsetive -\nrepairs\n89\nR. G. STENART\n102,062 bbls.\nNew York\n4/18/41\n-\nInactive -\nrepairs\n88\n8. B. HUNT\n128,568 bbls.\nNew York\n6/4/41\nCalverton\nActive\n85\nSTANDARD ARROW\n97,750 bbls.\nNew York\n5/22/41\nLockport, Miss.\nde\n88\nULYSSES\n112,996 bbls.\nNew York\n5/20/41\n-\nInsetive -\nlibeled\n8\nVIRGINIA\n75,033 bbla.\nNew York\n6/5/41\nPort Arthur\nActive\nIf\nVISTULA\n103,078 bbls.\nNew York\n5/16/41\nCorpus Christi\nde\n5\nVICTOR N.KELLY\n13,001\ntone(Est.).om\nAngeles\n6/6/41\nSeettle\n-\n88\nPAT DOHENT\n82,000 bbls.\nLos Angeles\n8/8/41\nPartland, Oregon\n.\nSS\nSAMUEL 2. BROWN\n9,392 tom\nNew Orleans\n6/5/41\nNew York\n-\nMS\nNORTHERN SUN\n12,958 tene\nNew Grleens\n6/5/41\nMarcus Hook\n-\nES\nNETON\n9,778 tons\nNew Orleans\n5/5/41\nHouston\nSS\nSPENCER KELLOGG\n7,965 tone\nNew Orleans\n6/1/41\nHavana\n-\nSS\nWILLIAM F.HUMPHREY 12,078 tax\nNew Orleans\n6/5/41\nNew York\n.\n88\nAs S. HANSEN\n7,060 teas\nBowernt, Texas\n6/5/41\nwilmington, Del.\n-\nSS\nMOBILOIL\n14,222 teme\nBecoment, Texas\n6/6/41\nNew York\n58\nW. X. HUTTON\n8,166 teas\nBesument, Texas\n6/6/41\nCarteret, 5. J.\nSS\nESSO BOSTON\n12,475 tear\nBeaummt, Texas\n6/6/41\nCarterol, N.J.\nSS\n11. 7. ELLIOT\n9,240 tom\nOalveston, Texas\n5/28/41\nCurterel, the\nbujdect\n55\nCLINEY\n9,747 tome\nGalveston, Texas\n5/27/41\nCerterel,\nin.\n7\n-\nRegraded Uclassified\nDATE OF\nVOYAGE FOR WHICH LOADIES\nIN\nNAME\nCARGO CAPACITY\nPRESENT LOCATION\nARRIVAL\nOR INTENDING TO LOAD\nREMARKS\nElegobics\nAMERICAN TRADER\n12,945 tear\nHouston, Terms\n6/6/41\ni %\nActive\nMARKAY\n17,960 Est. )Heaston, Teme\n6/6/41\n6/5/41\nCarterot, the 1. new york\nDOLONITE 2\n5,405 teas (Let.)Housten, Terms\nCarteret, N.J.\n-\nCITIES SERVICE\n12,650 teas\nMabile, Alabama\n4/26/41\nInstillined\nTOLEDO\nGULF OF VENEZUELA 9,995 teme\nMobile, Alaboma\n5/16/41\nPort Arthur\nActive\nENTRY Kg DAWES\n8,107\ntema(Not.,)Mebile, Alabom\n5/5/41\nSmiths Bluff, Terms\nPAN CARCEJNA\n11,000\nteme\nMobile, Alabama\n6/2/41\nBraston, Terms\n1. P. SMITH\n10,104\n!\nMobile, Alabem\n5/31/41\nSmiths Bluff, Teme\n1. 1. MILLS\n8,6m\nteam\nMobile, Alabum\n6/3/41\nSmiths Muff, Texas\nis such w\n14,255\nteam\nBaytom, Same\n5/22/41\nUnreparted new gork\nalpea\n9,566 (Est.)Pert Arthur, Texas\n6/5/41\nde\nOULFOREST\n13,885 teme\nPort Arthur,Tems\n6/3/41\nNew York\nMISSISSIPPI\n10,407 tous\nPort Arthur,Texes\n5/25/41\nUnreparted\nCLUB\n10,645 teams\nPart Artiver,Teme\n5/6/41\nPhilodelphia\nPAN AMERICAN\n14,190 teme\nTexas City, fune\n6/6/41\nCaroported Balteron\nPAN GEORGIA\n11,692 tear\nTeses City, Temes\n6/4/41\nUnreparted\nTRAVERSE CITY\n26,000 Dols.\nChicago\n6/8/41\nCloveland\nSOCIET\n10,000 this.\nChicago\n6/6/41\nBuy City\nNATME\n42,500 bble.\nI\n6/5/41\nDetroit\nWEBCOAST\n46,000 bble.\nChienge\n6/5/41\nSuperior, Visconsin\nRED CROWN\n65,000 bblo.\nChicago\n6/6/41\nSuperior, Visoracia\nGENERAL MANKELAM\n25,000 bble.\nChicago\n6/6/42\nBay City\nWILLIAM T.COMAN\n65,000 Mis.\nChicago\n6/5/41\nDetroit\nKORARD 0.SUEBERT 52,000 bbls.\nChicago\n6/8/41\nGreen By\nALASKA TANDARD 10,500 bbls.\nalasha\nMS\n6/6/41\nUarum alasham Parks\nSS\nHARRFFSIMCLAE 63000 uu.\nHalveston\n6/6/01\nBastome, 24 8\nss\nEsso BALTIMORE\n13,000 566\n4/6/41\nnew yok\nSS\nVACOUM\n90,000 fills.\nMalveston\n4/4/41\n72\nRegraded Uclassifi\na\n1\n1941\nDATE OF\nVOYAGE FOR WHICH LOADING\nRIG\nNAME\nCARGO CAPACITY\nPRESENT LOCATION\nARRIVAL\nOR INTENDING TO LOAD\nREMARKS\nMS\nANDREA BROVIG\n15,300 tons\nNew York\n5/18/41\nArube, N.W.I.\nActive\nMS\nARISTOPHANES\n15,400 tons\nNew York\n6/4/41\nAruba, N.W.L.\nActive\nXS\nASTRELL\n89,508 bbla.\nNew York\n6/1/41\nUnited Kingdom\nActive\nus\nBHLLO\n8,537 tone\nNew York\n4/11/41\nUnited Kingdom\nActive\nMB\nBETH\n9,053 tone\nNew York\n6/3/41\nUnited Kingdom\nActive\n-\nDAGHILD\n13,513 tons\nNew York\n5/26/41\nVenezuela\nActive\nMS\nEVITA\n8,543 tone\nNew York\n2/11/41\n...\nImerive -\nrepairs\nMS\nFENRIS\n12,603 tons\nNew York\n6/4/41\nUnited Kingdom\nActive\nMS\nGENION\n13,576 tons\nNew York\n5/22/41\n...\nInsetive -\nrepairs\nMB\nGLITTRE\n9,500 tons\nNew York\n6/3/41\nUnited Kingdom\nActive\nMB\nHAAKON HAUAN\n80,250 bbls.\nNew York\n5/9/41\nHalifax\nActive\nMS\nHAVPRINS\n11,595 tone\nNew York\n5/3/41\nUnited Kingdom\nActive\nMS\nHOROH SCOUT\n12,499 tons\nNew York\n5/28/41\nUnited Eingdom\nActive\nNS\nINNEROY\n11,460 tone\nNew York\n5/5/41\nUnited Kingdom\nActive\nMS\nJERNY\n5,042 tens\nNew York\n4/9/41\n...\nImestive -\nrepairs\nMS\nKAIA KNUDSEN\n13,064 tons\nNew York\n5/24/41\nHalifax\nActive\nMS\nKONGSOAARD\n15,144 toms\nNew York\n6/3/41\nUnited Kingdom\nActive\nSS\nMELINE\n80,145 bbla.\nNew York\n6/5/42\nArriba\nActive\nSS\nMIRLO\n9,311 toma\nNew York\n5/17/41\nAruba\nActive\nMS\nSIR JAMES CLARK\nROSS\n121,800 bole.\nNew York\n6/8/41\nAruba\nActive\nMS\nSANDAR\n11,150 time\nNew York\n5/10/41\nUnited Kingdom\nActive\nIS\nSOLSTAD\n7,665 tens\nNew York\n4/11/41\nUnited Kingdom\nInsetive\nMS\nSPINATOR\n9,562 tons\nNew York\n5/15/41\nUnited Kingdom\nActive - repairs\nMS\nTHORSHOV\n12,035 toms\nNew York\n6/4/41\nUnited Kingdom\nActive\nMS\nVARANGER\n18,760 tons\nNew York\n3/6/41\nUnited Eingless\nActive . repaire\nNO\nGALLIA\n15,772 tons\nGalveston\n5/29/41\nEngland\nActive\nMS\nBRALANTA\n13,891 toma\nLes Angeles\n3/16/41\n...\nInsetive\nMS\nTHOREILD\n15,625 tons\nLes Angeles\n4/17/42\n...\nImetive\nMS\nSALAMIS\n13,187 tone\nPhiladelphia\n6/5/21\nUnited Kingdom\nActive\n73\nCONFIDENTIAL\nRegraded Uclassified\nDATE OF\nVOTAGE FOR WHICH LOADING\nKIG\nNAME\nCARGO CAPACITY\nPRESENT LOCATION\nARRIVAL\nOR TO LOAD\nREMARKS\n-\nHOSON GIANT\n115,000 Mis.\nPhilodolyhia\nc/c/o\nMexico\nActive\nM\nINKLIN\n92,000 bbla.\nLes Angeles\n6/5/41\nTecepills\nActive\nMS\nSCOTIA\n86,000 bbla.\nLes Agains\n6/6/42\n- -\nActive + to\nuning repairs\n-\nPETER II\n9,125 teas\nDeparted Sta Jum, Peley 6/6/42, for Mayagers, 1. 2,\n74\nRegraded Uclassit\nBRITISH TANK VESSELS IN PORTY OF THE UNITED STATES\nam 7 1941\nCARGO CAPACITY\nIN TOMS EXCLUD-\nDATE OF\nVOYAGE FOR WHICH LOADING\nRm\nWANT\nING HIKERS\nPRESENT LOCATION\nARRIVAL\nOR INTENDING TO LOAD\nREMARKS\nas\nANGLO NORSE\n79,333 bble.\nNew York, 1. T.\n4/21/41\nUnited Kingdom\nActive\nz\nBRITISH CONSUL\n02,268 bhla.\nNew York, N. I.\n5/17/41\nUnited Kingdon\n$5\nBRITISH WORKMAN\n82,268 bble.\nNew York, 1. I.\n3/17/41\nUnited Kingdom\nXII\nBULLMOOTH\n82,696 bblo.\nNew York, N. I.\n5/1/42\nUnited Kingdom\nXS\nCHARLES 1 METER\n120,894 bble.\nNew York, 1. I.\n4/8/41\nUnited Kingdon\nus\nDARINA\n9,800 time\nfor York, 3. I.\n5/30/42\nUnited Kingdom\nus\nDAVILA\n11,000 team\nNew York, N. T.\n5/24/41\nUnited Kingdom\nXS\nDOLABELLA\n10,500 tax\nin York, N. To\n6/4/41\nUnited Kingdom\nSS\nEXETORIA (whole eil\n70,900 bhis.\nla York, N. I.\n6/6/41\nUnited Kingles\nfactory)\nMS\nHOME SHELL\n104,819 bhils,\nNew York, N. To\n6/2/41\nUnited Kinglen\nNS\nINVERILEN\n92,750 bhls.\nin York, N. 1.\n5/29/41\nUnited Eingion\nActive Active Ashive Active Ashive Active Active Active\nMS\nMIRALDA\n11,000 team\nfor York, 1. L.\n5/22/41\nUnited Kingdom\nMS\nPATELLA\n90,506 bble.\nSee York, 1. 1.\n5/27/41\nUnited Kingdom\n85\nPEDER BOGEN\n71,403 bble.\nNew York, 1. To\n6/1/41\nUnited Kingdom\n38\nPOLAR CHIEF\n(Carrying\n45,366 bbla.\nSer York, N. T.\n4/17/41\nUnited Kingdam\nActive-Libeled\nwhole oil)\n35\nSHIRVAN\n67,479 bble.\nfor York, N. 1.\n4/9/41\nUnited Kingdom\nistive\n33\nSOURABATA\n8,005 tear\nfor York, N. I.\n6/6/41\nUnited Kingdom\nActive\nIts\nTRICULA\n9,000 bble.\nfor York, N. Y.\n4/30/41\nUnited Kingdom\nActive-Libaled\nMS\nVANCOLITE\n132,238 bbls.\nNew York, 1. 1.\n5/18/41\nCaripito\nActive\nSS\nVOCO\n6,142 tons\nPealsbero, N. J.\n6/4/41\nUnited Kingdom\nActive\nMS\nATHELVIKING\n13,709 tase\nPart Everglades\n6/4/41\nGeorgetown, B.G.\nActive\nSS\nBRITISH PROGRESS\n6,113 tens\nBultimore, Md,\n4/11/41\nUnited Kingdom\nActive\n35\nLANSING\n7,454 teas\nSen Francisco\n10/26/38\nImmobilized\nMS\nATHEL CROWN\n141,000 bbls.\nPhiladelphia\n6/6/41\nCube\nActive\nmolasses\nCONFIDENTIAL\n75\nRegraded Uclassified\n-\n7\n1841\nCARGO CAPACITY\nIN TONS EXCLUD-\nDATE OF\nVOYAGE FOR WHICH LOADING\nRIG\nNAME\nING BUNKERS\nPRESENT LOCATION\nARRIVAL\nOR INTENDING TO LOAD\nREMARKS\n29\nNORVIK\n13,374 tons\nBoston, Mass.\n3/15/41\nLiverpool\nActive\n88\nALGONQUIN\n74,751 bbls.\nNew York, N. Y.\n12/2/40\nInactive\nMS\nPENELOPE\n12,915 tons\nNow York, N. Y.\n5/29/41\nCaripito\nActive\nMS\nPHOEBUS\n13,360 tons\nNew York, N. Y.\n6/3/41\nAruba\nActive\nSS\nTORBA LINDA\n11,150 tons\"\nNew York, No I.\n3/31/41\nTexas City\nActive\nMS\nJ. H. SENIOR\n17,620 tons\nBaltimore, lid.\n5/28/41\nSouth America.\nNow in\nActive\ndrydock.\nSS\nBEACONOIL\n9,540 tone\nBaltimore, Md.\n6/3/41\nVenezuela\nActive\nMS\nGOOD GULF\n9,928 tons\nPort Arthur, Tex,\n11/7/40\nImmobilized\nMS\nBELGIAN GULF\n10,003 tons\nPort Arthur, Tex.\n11/7/40\nImmobilized\nus\nLUBRAFOL\n9,877 tons\nPort Arthur, Tex.\n11/7/40\nImmobilized\nMS\nSANTA HELENA\n7,470 tons*\nPort Arthur, Tax,\n5/21/41\nFerrol, Spain\nActive\nMS\nSPIDOLEINE\n7,200 tons\nPort Arthur, Tex.\n11/9/40\nImegbilized\nSS\nPOLARINE\n5,675 tens\nSan Francisco\n1/25/37\nImmobilised\nMS\nTHALIA\n13,100 tone\nLos Angeles\n3/14/41\nTecopilla\nActive\nSS\nGEORGE G. HENRY\n10,102 tons\nHonolulu\n6/6/41\nMenile\nActive-Due\nHonolulu on date\nindicated\n*Estinated\nCONFIDENTIAL\n92\nRegraded Uclassified\nCARGO CAPACITY\nDATE OF\nVOTAGE FOR WHICH LOADING\nRIG\nNAME\nIN TONS EXCLUD-\nPRESENT LOCATION\nARRIVAL\nOR INTENDING TO LOAD\nREMARKS\nING BUNKERS\nDANISH\n-\n-\n12,599\nBosten, Mass.\n4/9/40\nIn custody of U.S.\nMS\nGAROLINE\n11,825\nJacksonville\n4/25/40\nIn custedy of U.S.\nGERMAN\n=\nPAULINE FRIEDRICH\n6,195\nBeston\n9/3/49\nIn curredy of v.s.\nTTALIAN\nas\nBRENSERO\n7,750\nNew York\n5/30/40\nIn oursely of v.s.\nss\nCOLORADO\n6,900\nGalveston\n5/24/41\nIn oustody of U.S.\nSPANIER\nMS\nCAMPSCHE\n7,453\nPort Arthur,Tex.\n5/24/41\nUnreported\nActive\nMS\nCAMPERO\n7,453\nPort Arthur, Tex\n6/5/41\nBardelona, Spain\nActive\nMB\nCAMPONAKES\n10,024 (zet.) Port Arthur, Tex.\n6/5/41\nBilbao, Spain\nActive\nTOTAL\nMS\nmsso BELOTUM\n14,600\nBoston\n6/4/42\nLas Piedras, Yes.\nActive\nMI\nPRESIDENT FRANOQUI\n7,000\nNew York\n5/31/42\nUnited Kingdom\nActive\nAMOUNT\nss\nLOS POZOS\n7,358\nAlbany, N.Y.\n6/2/41\nAruba, N.W.I.\nActive\nKETHEELANDS\nM\nOGANA\n8,472\nNew York\n4/24/41\nUnited Kingdom\nActive:\nMD\nMAMURA\n12,645\nNew York\n4/8/41\nUnited Kingdom\nActive\nCONFIDENTIAL\n22\nRegraded Uclassifi\nCARGO CAPACITY\nDATE OF VOYAGE FOR WHICH LOADING\nRIO\nNAME\nIN TONS EXCLUD-\nPRESENT LOCATION\nARRIVAL\nOR INTENDING TO LOAD\nREMARKS\nINC BUNKERS\nMEXICAN\n23\nJUAN CASIANO\nUnlisted\nGalveston\n3/24/41\nMexico\nImmobilised\nES\nTAMPICO\n9,667 (Est.) Houston\n2/28/41\nTempico, Mex.\nImmebilised\nunknown\nSAJA dEORO\n63978 aller Halucaton\n4/6/41\nunreported\nacture\n-\nNS\nbera\n211,890 bbls. Philadelphia\n6/6/41\nUnknown\nActive\nas\nMEROPE\n9,541\nNew York\n5/23/41\nInsetive; U.S.guards - beard\nas\nC.I.P.\n10,228 (Est.)\nst. Thomas,V.I.\n6/4/41\nInsetive; U.S.guards 8 board\nMB\nTOURAINE\n7,377\nNew Orleans\n7/6/40\nInactive; U.S.guards - beard\nPHILLIPINE\n88\nMINDAMAO\n51,000 bble.\nLee Angeles\n5/30/41\nManila\nActive\nJAPANESE\n38\nTOMAN HARU NO. 2 122,000 able. Lee Angeles\n6/5/41\nOsalm\nActive\nCONFIDENTIAL\n78\nRegraded Uclassified\n79\nJune 9, 1941\nMemorandum for Mr. Kuhn:\nThe Secretary would like to have you send future copies\nof Mr. Barth's memo to Ambassador Winant at the Embassy\nin London. I understand the Ambassador received\nthe current one.\nN.M.\nChauncey\nMrs. 1/17/41- Brown reported\nthis memo was being\nsent to Amt. Winant.\nRegraded Uclassified\n80\nTREASURY DEPARTMENT\nINTER OFFICE COMMUNICATION\nDATE June 7, 1941\nTO\nFerdinand Kuhn, Jr.\nFROM Helen Dallas\nDEFENSE SAVINGS: A UNITED FRONT APPEARS\nWhatever the conflicts between capital and capital, labor\nand labor, and capital and labor, there seems to be complete\nagreement about the Defense Savings program. Sections of the\npublic which are still at odds over the Administration's economic\npolicies make common cause in their advocacy of Defense Bonds\nand Stamps.\nThus the non-controversial course steered by the Treasury\nin its Defense Savings program has succeeded in winning and\nspreading good will. Divergent groups now back the bond campaign\nas a public demonstration of their patriotism, no matter what\ntheir other quarrels with the Government may be. In this matter\nthey are rivals only in the sense that each seems to try to outdo\nthe other in cooperating with the program.\nAs organized labor seeks to maintain its position with the\npublic, its leaders have issued statements and turned over union\nfunds for the purchase of Defense Savings Bonds. President\nWilliam Green was the first to say publicly that he thought the\nRegraded Uclassified\n81\n- 2 -\nbonds were a good thing, and he has been followed by many of\nhis subordinates. This week President Murray of the C. I. 0.\nurged men receiving $170,000 in back pay for discriminatory\ndischarges to buy as many United States bonds as they could with\nthe money \"as a token of faith in the American democracy which\nhas made that back pay possible.\"\nAt the same time, bankers have continued to support the\nprogram through paid advertisements, resolutions at banking\nconventions, and statements by leading bankers. Recently they\nhave won much editorial praise for this activity. They have\nbeen praised for helping in a cause which, incidentally, benefits\nthem by halting the flow of deposits into savings accounts\nalready bulging with interest-bearing money. President W.\nElbridge Brown of the Pennsylvania Bankers Association this\nweek advised his fellow bankers to counsel prospective deposi-\ntors not to put their money into banks but to buy defense bonds\ninstead. He then declared that \"should the deposits be taken\nby the banks instead of being used for bonds, it would only in-\ncrease the amount of excessive idle cash and reserves.\" With the\nbanks as with labor, the Defense Bond campaign has helped groups\nwhich are poles apart on most other issues to get together on a\nnational program of importance.\nRegraded Uclassified\n82\n- 3 -\nProgress in the Field\nEven before Secretary Morgenthau's speech announcing the\nsale of more than $400,000,000 in bonds during May, there had been\na spreading over the country of the more optimistic editorial\nand financial comment that was reported last week in the New York\npapers. Big-circulation newspapers such as the Boston Post and\nthe Philadelphia Bulletin have editorialized that the Defense\nBond program has been misunderstood by papers that attempted to\ncriticize it earlier, and that sales are good and steady. First\neditorial reactions to the Secretary's speech agree with him\nthat the first month's results are a \"wonderful start.\"\nThe only critical note was again sounded by Congressman\nCrawford, who followed the Secretary's statement with another\nwarning that defense sales are lagging and that the Treasury is\nmisrepresenting the true state of affairs to the people of the\nnation.\nFinancial papers warn that the public must not expect too\nmuch from the Defense Bond sales in June, because some subscribers\nundoubtedly purchased their full yearly quota in May. New bond-\nselling ideas appearing in the press suggest, however, that at\nleast the sales of Series E bonds may be increased by new devices.\nTypical newspaper stories of the week are concerned with\nRegraded Uclassified\n83\n- 4 -\n\"Dividends in Defense Bonds,\" \"$1,000 a week in Prizes Given\nin Defense Savings Bonds,\" \"Defense Stamps to be Given Employes\nof Oil Company,\" and \"Mail Carriers Now Will Sell Defense Stamps.\"\nCertainly there is no sign in the newspapers or magazines that\npublic interest is slackening.\n84\nFIELD ORGANIZATION\nNEWS LETTER\nDEFENSE SAVINGS STAFF\nI\nU. S. TREASURY DEPARTMENT\nWASHINGTON, D. C.\nJUNE 7, 1941\nNO. 3\nTO THE FIELD STAFF:\nA resume of the initial month for Defense Savings securities\nis very encouraging. Total sales were far more than reasonable\nexpectations indicated.\nPrimarily, we are interested in the numbers of buyers. Our\ntask is to so well educate every man, woman, and child, that there\nwill be millions of systematic purchasers of Defense Savings\nsecurities. This work is just beginning.\nThe month of May was marked by a fine start, as the following\nfigures will demonstrate:\nTOTAL NUMBER OF BONDS SOLD\n1,134,000\nThese bonds were divided:\nSeries E\n991,000\nSeries F\n24,000\nSeries C\n119,000\nTOTAL NULBER OF STALPS SOLD\n10,172,000\nThe denominations of these\nstamps:\n10¢\n2,598,000\n25$\n5,501,000\n50$\n1,240,000\n$1.00\n717,000\n$5.00\n116,000\nTOTAL VOLUME OF ALL SALES\n2423,589,485.25\nThe above figures show that Americans invested in more than\neleven million Defense Savings securities. It is impossible to give\nthe number of individual purchasers at this time. It is reasonable\nto assume that the number is a substantial one. We can feel assured\nthat We are presenting a most attractive set of securities; that\nthus far a portion of the public has approved our merchandise and\nthat millions of potential buyers are available to our efforts.\nSincerely yours,\nGALE 7. JOHNSTON\nField Director, Defense Savings Staff\nRegraded Uclassified\n85\nNEW STATE ADMINISTRATORS\nDesignation of 11 State Administrators, announced by Secretary\nMorgenthau on June 3, brings to 22 the number of states in which\ndivisions of the Defense Savings Staff are being set up, The first\neleven State Administrators were presented to readers of this NEWS\nLETTER in issue Number 1, The following men have just accepted this\nimportant responsibility in their respective states:\nARKANSAS\nMAINE\nRoy G. Paschal\nClinton A. Clauson\nCollector of Internal Revenue\nCollector of Internal Revenue\nLittle Rock\nAugusta\nFLORIDA\nNEW JERSEY\nJohn L. Fahs\nJohn E. Manning\nCollector of Internal Revenue\nCollector of Internal Revenue\nJacksonville\nNewark\nGEORGIA\nOKLAHOMA\nMarion H. Allen\nH. Clifford Jones\nCollector of Internal Revenue\nCollector of Internal Revenue\nAtlanta\nOklahoma City\nHAWAII\nTENNESSEE\nFred H. Kanne\nG\nLipe Henslee\nCollector of Internal Revenue\nCollector of Internal Revenue\nHonolulu\nNashville\nINDIANA\nVERMONT\nWill H. Smith\nFred C. Martin\nCollector of Internal Revenue\nCollector of Internal Revenue\nIndianapolis\nBurlington\nWEST VIRGINIA\nF. Roy Yoke\nCollector of Internal Revenue\nParkersburg\nFROM OUR SENTINEL IN THE CARIBBEAN\nCabo Rojo, Puerto Rico-Defense Savings Program was launched here\nby Postmaster Irizarry, Mayor Colberg, and Selective Service Board\nChairman Delgado with stirring proclamations calling upon all citizens\nof Cabo Rojo (population 5,303) to \"demonstrate our loyalty and\npatriotism.\"\nSenor Delgado called for:\n=\nthe unanimous cooperation of all Sons of the\nWestern Continent.\"\nMayor Colberg, urging all to buy Defense Savings Bonds, sald:\n\"Our great President, Franklin D. Roosevelt, has\nassumed the leadership in the defense of our hemisphere\nHo issues a call to every citizen cherishing his liberties\nand traditional rights to cooporate actively in the great\nwork which must be realized in all haste.\"\nRegraded Uclassified\n86\nMISSOURI\nCampaign Gets Underway\nIn 131 Missouri cities local committees for Defense Savings are\nnow functioning.\nEach city committee member is to serve as the chairman\nof a subcommittee to carry the Defense Savings message to =\nparticular group.\nMore than 200 prominent citizens are serving on the Defense\nSavings Committee for Metropolitan St. Louis. Honorary Chairman is\nMayor William Dee Becker. Thomas N. Dysart is the General Chairman;\nDr. Homer % Anderson, Vice Chairman; and E. 7. Montel, Secretary.\nThe Committee includes the Mayors of All municipalities in St. Louis\nCounty.\nCivic Service Luncheon Clubs in the state have been asked to\ndevote attention to the Defense Savings Program and a suggested five\nminute address has been sent to their presidents from the state head-_\nquarters of the Defense Savings Staff.\nThe Missouri State Federation of Labor at ita 50th annual convention,\nMay 21st, pledged unanimous support of the Defense Savings Program.\nThe Ninth District of the American Legion, in convention, adopted\na resolution endorsing the Defense Savings Program.\nOne hundred of the largest industries of the state are displaying\nDefense Savings Posters in their plants.\nState Administrator Dan Nee and Deputy State Administrator\nEarl H. Shackelford are traveling more than 1800 miles a week\nin connection with the Defense Savings Program. Last week, they\nattended five patriotic rellies.\n****\nMISSOURI CONCERNS REPORT SYSTEMATIC SAVINGS PLANS\nThe following large business organizations in Missouri report that their\nemployees will be able to purchase Defense Savings Bonds through payroll\nallotments:\nSouthwestern Bell Telephone Company\nAll member banks of the St. Louis\nClearing House Association\nSheffield Steel Company\nScullin Steel Company\nTerminal Railroad Association of St, Louis\nSt. Louis, Mo.--A business concern here has awarded a Defense\nSevings Bond to each of its employees. The bonds were delivered\nwith a letter strossing the nood for petriotism and national\nunity and urging that all employees undertake to purchase Defense\nSevings Bonds regularly by buying Defense Savings Stamps. To\nmake this method of seving entirely clear, the company presented\nench employee with en glbum in which en initial Dufense Savings\nStamp had been attached.\nRegraded Uclassified\n87\nTEXAS\nRiding Hard!\nState Administrator Frank Scofield plans to meet with every county\nand Congressional District Defense Savings Committee in Texas as fast\nas time and the size of the state permit.\nThe 15th Congressional District Defense Savings Committee\nmet May 20 in Laredo, W. R. Montgomery of Edinburg, District\nCommittee Chairman, presided, and John Shary of Mission, member\nof the State Committee, and Frank Scofield, State Administrator,\nwere present.\nOn May 21, Administrator Scofield met in Fort Worth with\nthe Tarrant County Committee of which Lewell Lafferty is the\nchairman. He also addressed a special luncheon meeting of the\nFort Worth Chamber of Commerce. Amon G. Carter, Fort Worth\npublisher and member of the State Defense Savings Committee,\nand Judge B. B. Stone, chairman of the Committee for the 12th\nCongressional District, also addressed this large gathering.\nTEXAS FAVORS SALARY SAVINGS PLANS\nIn a. letter to the more than 10,000 employees of the Texas and\nPacific Railway Company and affiliated companies, J. L. Lancaster,\nPresident, announced that his organization will provide facilities\nfor regular and convenient purchase of Defense Savings Bonds:\n\"Dvery employee desiring to set aside from salary or\nwages a regular monthly amount for the purchase of Defense\nSavings Bonds may do so\nThe Company will deposit the\nmonthly deduction in a special account and each time the\ndeducted funds of a particular employee reach an amount\nsufficient to purchase a bond, one will be bought in his\nname and sent to him by registered mail.\"\nI\n-\n-\nHere are a few of the other concerns in Texas which are making it\npossible for their employees to purchase Defense Savings Bonds through\nsalary allotment plans:\nMISSION\nSouthwestern Land Company\nCitizens State Bank of Donna\nMission Times\nGranjeno Development Company\nUnited Land Company\nTexas Citrus Fruit Growers\nUnited Irrigation Company\nExchange\nSouth Texas mortgage Loan Company\nShary Products Company\nFirst State Bank & Trust Company\nSouthwestern Drug Corporation\nFORT WORTH\nLeonard Brothers\nFirst National Bank\nFort Worth National Bank\nChamber of Commerce\nWoolworth\nW. C. Stripling & Sons\nSouthwestern Bell Telephone\nWACO\nUniversal Atlas Cement Company\nTexrs Life Insurance Company\nService Mutual Insurance Company\nFrank L. Wilcox, C.P.A.\nWm. Cameron and Company\nJ. S. Barnett and Company\nL. M. Kizer Claim Service\nStratton Stricker Furniture Co.\nRegraded Uclassified\n88\nPROGRAM GETS UNDER WAY IN NORTHWEST\nMiss Marie Young, President of the Washington State Federation of\nBusiness and Professional Women and a member of the State Defense Savings\nConmittee, and Mrs. Pearl A. Wanamaker, Washington State Superintendent\nof Public Instruction, participated in & special tri-state radio broad-\ncast on June 4.\nOn June 11 Governor Arthur B. Langlie, Honorary Chairman of the\nWashington Defense Savings Committee, will deliver a radio address on\nthe Program.\n200 of the lending retailers in Senttle met recently with State\nAdministrator Saul Heas and Deputy State Administrator William C. H.\nLewis to work out plans for placing Defense Sevings Stamps on sale in\nall stores throughout the State.\nDividends Paid in Defense Savings Bonds. Louis K. Lear, President\nof the Queen City Brondcasting Company of Seattle, has announced that\nfuture dividends would be paid in Dofense Savings Bonds (Series F) and\nStamps. Several other companies are considering taking the same action.\nStamps for Home Runs. Charles E. Sullivan, Soattle florist who for\nsome time has been rewarding Seattle baseball players with a $10 bill\nfor each home run, is now making the reward in Defense Savings Stamps.\nGifts for Graduates. Defense Savings Bonds and Stamps make most\nappropriate gifts, Mrs. Pearl Wanamaker, State Superintendent of Public\nInstruction, has reminded parents and friends of gradunting students.\nNewspaper Fill Ins. More than 30,000,000 reminders to \"Buy\nDefenso Savings Bonds,\" \"Buy Defense Savings Stamps\" will appear each\nweek in Seattle and Tacona newspapers. Newspapers in many other\nWashington cities are completing their columns by running these lines,\n*****\nMonrovia, Calif.City Council instructed City Treasurer J. K. Petrie\nto purchase $2500 worth of Defense Savings Bonds for the city's\nemergency fund.\nHawaii-Tho United Cane Planters Association of Hawaii reports to\nSocretary Morgenthau that it is urging its 300 members tn \"Buy Defense\nSavings Bonds.\"\nEXPENDITURES FOR NATIONAL DEFENSE\n\"More than five billion dollars was spent (for national\ndofense) from Juno 1, 1940 to May 1 of this year,\" reports\nRobert W. Horton, Director of Information, Office for Ener-\ngency Management.\n\"That seems for a moment like a lot of noney,\" continues\nMr. Horton. \"It is, but it is nothing when compared to the\ntotal effort required if our dofense organization is to be\ncarried out even on the schedule now loid down.\n\"The second year's cash disbursements must be close to five\ntimes 5 billion dollars,\"\nRegraded Uclassified\n89\nACTIVITIES IN NEW ENGLAND\nGOVERNOR SALTONSTALL HEADS MASSACHUSETTS COMMITTEE\nGovernor Leverett Saltonstall is the Honorary Chairman of the\nDefense Savings Committee for the Commonwealth of Massachusetts.\nWomen of the Legion Auxiliary in Massechusetts are informed of\ntheir role in the Defense Savings Program in an article by State\nAdministrator Deniel J. Doherty in the current issue of the Massachu-\nsetts Auxiliare.\nThe more than 150 councils of the Knights of Columbus in Messacho-\nsetts have been urged to cooperate with the Defense Sevings Program by\ntheir State Deputy, who suggests that each Grand Knight appoint a\ncommittee to stimulate active inter st in the Defense Sevings Program\nand that the chairmen of these committees cooperate with the Defense\nSavings Committees of their respective towns.\n***\nCONNECTICUT\nThe Hartford Defense Savings Committee is arranging a big dinner\nmeeting which will be attended by representatives of all local business\nconcerns in which employees are purchasing Defense Savings Bonds by\nthe salary allotment method.\nBridgeport--The City of Bridgeport is buying $10,000 worth of Defense\nSavings Bonds for its Insurance Sinking Fund, City Clerk Fred\nSchwarzkopf has announced.\nBridgeport--The United Young Men's Hobrew Assn. here purchased 25\n$100 Defense Savings Bonds.\nHartford--1,000 Boy Scouts carried Defense Sevings Bond posters in the\nMemorial Day parade.\nNew Britein--A large department store will distribute Defense Savings\nBond leaflets with the monthly statements to its 5,000 customers.\nNew Haven-The Harry R. Bartlett Post of the American Legion has\ninvested its entire sevings in Defense Sovings Bonds.\nStratford--Trustees of the Police and Fire Pension Fund have voted to\npurchase $15,000 worth of Defense Savings Bonds.\n#:\nPewtucket, R. I.--A group of 14 boys and 3 girls who deliver\nthe local newspaper are undertsking to buy a 25 cent Defense\nSavings Stamp each week. The dealer from whom they get their\npapers has agreed to stock a supply of these stamps\nRegraded Uclassified\nMICHIGAN\n90\nProgram Develops; School Children Active\nPublic end perochial schools in more than 100 Michigan communities\ncelebrated Monday, June 2 88 Defense Sevings Stamp Day.\n\"School children carry the Defense Sevings message into\ntheir homes,\" Frank N. Isbey, Chairman of the Michigan Committee\npoints out, \"Through their enthusisam they erouse an interest in\ntheir older brothers, sisters and perents.\"\nSCHOOL CHILDREN have taken to the Defense Savings Program in 8\nbig way:\nMore than two hundred thousand Detroit school children\npurchased stamps the first day they went on sale in the schools.\nMany schools have established \"Stamp Banks\" built end\ndecorated by the school children, where Defense Savings Stamps\ncen be purchased.\nThomas Jefferson School of Forndale, Michigan was the first\nschool in the state to report that every pupil had invested in\nDefense Savings Stemps. Pupils who could not afford to buy\nstamps have been given regular \"chores\" by their teachers in\norder that they can carn the price of at least one 10-cent\nstamp each week.\nMany schools will festure Defense Savings in perades, etc.\non Flag Day, June 14,\nArithmotic toschers are using facts ebout Defense Savings\nBonds in teaching sbout interest, thrift and savings.\nTO HOLD THE INTEREST of school children during the summer, the\nMichigan Committoo 1s encouraging the organization of essay, slogen\nand poster contests in every community, these contests to be open\nonly to students who purchase Defense Savings Stamps throughout the\nvocation period.\nDETROIT RETAILERS PLEDGE SUPPORT\nThe Retail Merchants Accociation of Detroit has unanimously adopted\na resolution G brsing the Defense Sevings Program and calling upon\nretailers to make it possible for their employees to purchase Defense\nSovings Bonds through salary allotments.\nFARM COMMITTEE FORMED\nRuben V. Gunn, hoad of ngriculturol extension work in Michigan,\nArt Jorrett, Secretary of the Michigan Been Growers Association and\nVictor Bielinski of the Michigan Form Bureau Federation, make up e\ncommittee of three to help Leo Card, Agriculture's representative on\nthe Michigan Defonse Savings Committee, carry the messern of Defense\nSevings to formers throughout the state.\nRegraded Uclassified\n7\nPOINTERS ON SALARY ALLOTMENT PLANS\n91\nThe following comments and suggestions on salary allotment plans\nwill be of vital interest to all State Administrators, Deputy Adminis-\ntrators and the members of State Defense Savings Committees:\nA. The adoption of salary allotment plans for the purchase\nof Defense Savings Bonds is greatly to be desired,\nbecause they\n1. Afford workers a convenient, regular, automatic\nmethod of saving money and purchasing bonds on\nthe installment or budget plan.\n2. Furnish a person with experience to purchase and\nregister the bonds for the worker.\n3. Save the time of both employee and employer.\n4. Only one sale has to be made -- the initial one,\n5. Make for continuous buying and saving.\nB. Bear in mind that:\n1. The plan can be applied and adopted by any reputable\nbusiness concern or industry employing people.\n2. A concern does not have to qualify as an issuing\nagency or receive permission from the Treasury\nDepartment.\n3. All that is necessary is to have the head of the\nbusiness concorn or industry agree to install the\nplan for those employees who desire to use it.\nC. Here are the steps to be taken:\n1, Get out suitable announcement and salary allotment\norder.\n2. Put. money while accumulating, in a separate bank\naccount to be held in trust for the employees to\nbe used only to purchase bonds as directed.\n3. As soon as sufficient money has accumulated to the\ncredit of any particular employee to buy & bond of\nthe donomination he has requested, send a check to\na Federal Reserve Bank, qualified fiscal agent, post\noffice, or U. S. Treasury with necessary information\nfor registering and mailing bond, and bond will be\nmailed directly tobuyerby registered mail.\nIn explaining these plans to labor, in working out the details of\nparticular plans in cooporation with employees and in getting employees\nto request employers to install allotment systems, the representatives\nof labor on state and local Defense Savings Committees will be of great\nassistance to the program.\nDescriptions of plans now in use by national concerns,\ncopies of letters announcing the plan to employees, and samples\nof salary allotment order cards are available through the Salary\nAllotment Division, Defense Savings Staff, Washington, D. C. and\nthrough the offices of the State Administrators.\nRegraded Uclassified\n32\nSYSTEMATIC SAVINGS PLANS\nU. S. Treasury Provides Plan for Own Employees\nA plan for facilitating the purchase by Treasury employees of\nDefense Savings Bonds has been put into operation. Under this plan\n\"group agents\" present Defense Savings information to their fellow\nemployees, secure pledges, and act as their agents in purchasing\nDefense Savings Bonds or Stamps at regular intervals.\nThe able and popular Charles Schoeneman, Special Staff Assistant,\nwas placed in charge of this program by Secretary Morgenthau. He has\nselected key men in every department, who are naming the \"group\nagents\" and enthusiastically backing their good efforts.\nAll employees in the Treasury are being given an opportunity to\nsign a purchase pledge card which reads in part 25 follows:\n\"I hereby agree to pay $\neach pay period\nfur the purchase of Defense Savings Bonds (or Defense Savings\nStamps) through the Defense Savings Agent, designated for my\ngroup, or through other available fscilities (post office or\nbank)\".\nA complete description of this purchase plan will be made avail-\nshie upon request.\n#\nBank Depositors Authorize Periodic Drafts\nThe Riverside Trust Company of Hartford, Conn., has sent a letter\nto all of its depositors calling attention to its depositor purchase\nplan for Defense Savings Bonds.\nHere is the full text of the authorization used by the Riverside\nTrust Company in connection with this plan:\n, 1941\nRiverside Trust Company\nHartford, Connecticut\nUntil further notice, I authorize you to charge my\nAccount on the\nday of\nand on the\nday\nof each month thereafter, the sum of 0\nand to pur-\nchase for mo a Defense Savings Bond having a maturity\nvalue of 3\n.\nPlease have the bonds registered as\nfollows:\nName\nHold for my account\nAddress\nuntil called for,\nSignature of Purchaser\ne \" # M\nBANK BLOTTER\nThe National City Bank of New York is distributing en attractive\nno, write and blue blotter advertising Defenat Savings Bonds. The\nNrm and at of its 70 New York City branches Tra now belling these\nRegraded Uclassified\n93\nBANKS AND SAVINGS INSTITUTIONS\nPLAY IMPORTANT ROLE\nSavings and Loan Associations Cooperate\nMore than 1200 savings and loan and building and loan associations\nhave qualified as issuing agencies for Defense Savings Bonds. Several\nthousand other associations are expected to apply for certification as\nissuing agents now that it is possible for non-members as well as mem-\nhers of the Federal Home Loan Bank System to sell Serice E bonds\ndirectly.\nVutuals Collect Sales Data\nThe National Association of Mutual Savings Banka has asked member\nbanks to report regularly to the Association headquarters their sales\nof Defense Savings Bonds. These reports will enable the Association to\nknow the volume of sales effected by mutual savings banke throughout\nthe country.\nVirginia Bank Sponsors Defense Savings Stamp Day\nSchools dismissed classes a half-hour carly and 2,023\nschool children from Danville and Pittsylvania, Virginia,\nbrought their pennies, dimes and dollars to the American\nNational Bank and Trust Company and invested in $3,377.75\nworth of Defense Savings Bonds and Stamps.\nThis was the reception which school children of Danville\ngave to the bank-soonsored Stamp Day. The bank made a gala\noccasion of this visit of the school children, served ice\ncream and soft drinks, and gave all its visitors pencils in\npitriotic colors and ticketo to = moving picture.\nTha bank is also awarding prizes to the classes which\nhave the highest percentage of representation among the bond\nand stamp buyers.\nAmerican Bankers Association Buys Defense Savings Bonds\nWhen ordinary people buy bonds, it is evidence that there is a\ngood investment.\nWhen bankers advise people to buy Defense Savings Bonds, it is\nstill stronger evidence that it is a good investment.\nBut when bankers invest their own funds in Defense Savings Bonds,\nthat's something.\nW. Espey Albig, deputy manager of the American Bankers Association,\nwrites:\n\"So that you may know we are cooperating, may I say that\nthe Investment Committee of our Foundation yesterday ordered\n$50,000 invested. A philanthropic organisation of which I am\ntreasurer recommended a similar purchase a few days ago.\"\nAdvice From Banker Bradshaw of Oklahoma\nBuy less and invest in Government bonds. That is the advice of Banker\nA. E. Bradshaw of Tulsa on how to finance the defense program. Mr. Bradshaw\nthus endorsed the Defense Savings Program before a recent meeting of the\nOklahoma Bankers Association.\n- 10 -\nRegraded Uclassified\n94\nIMPLUENTIAL NATIONAL ORGANIZATIONS BACK PROGRAM\nGeneral Federation of Women's Clubs The nowsreels this past week\ncarried the talk given by Mro. John L. Whitehurst, newly-elected National\nPresident, at the General Federation's Golden Jubilee Convention in\nAtlantic City, in which she urges all the 2,000,000 members of the\nFederation's 15,600 clubs to buy Defense Savings Bonds and Stamps.\nPerford Powel, Information Director, Defense Savings Staff, addressing\nthe General Federation's convention on behalf of the Defense Savings Program,\nurged the club women to familiarize themselves with Defense Savings Bonds and\nStamps and to assume lendership in explaining the program to other women, to\nzen, and to children.\n\"Ye shall not be satisfied until every man, woman, boy,\nand girl in America is adding at lenst one bond or stamp a\nmonth to the Nation's wealth end to their onn,\" said Mr. Powel,\n\"Inst is the goal of this cruside.\"\nSupport of the program by Chamber of Commerce executives thoughout the\ncountry has been pledged by the Board of Directors of the National Association\nof Comsercial Organization Secretaries.\nMembers of the International Ladies Garment Workers Union have pledged\nthemselves to purchase at least $500,000 worth of Defense Savings Bonds\naccording to Dovid Dubinsky, President. The union has 265,000 members.\nThe Jewish Wolfare Board with more then 300 local affiliates has endorsed\nthe Defense Savings Program and urged Y X H A's and other member agencies to\npremote the sale of Defense Savings Bonds and Stamps.\n200 delegates from 17 states to nstional quadrennial convention of the\nUkranian Workingmon's Association voted to purchase $50,000 of Dafense\nSavings Bonds.\nAddressing the National Retail Dry Goods Association in Chicago,\nHerford Powel, Information Director, Defense Savings Staff, thanked department\nProgram. stores for the cooperstion which they have extended to the Defense Savings\n\"We are pleased, of course to have stores seil Dofense Savings\nStemps,\" Mr. Powel said, \"These, with the albuma given ENEY with\nthem, are stepping stones to the ownership of Defense Savings Bonda.\nle would like to see you introducing them to children, now that the\nschools have closed\n\"Perhaps in the long off-sesson for Santa Claus in your toy\ndepartments, you might introduce the equally symbolic figure of\nUncle Sem\n\"Perhaps PM importent National Defense window, displaying\nnot only Defonse Savings Bonds end Stamps but also sche of the\nhundredo of thousands of interesting items they are buying for\nthe tray, Navy and Marino Corps, would add to the traffic in\nyour store\n\"Porhngs you could pay prizos in Defense Sevingo Bonds\n\"Terhaps, as les metter of good public relations, you could\ninvestigate WAYS of letting your customers buy their bonds from\nyou,\"\n11\nRegraded Uclassified\n95\nRADIO\nFamous movie stars are plugging Defense Savings Bonds and\nStamps in one-minute recordings now in use throughout the country.\nFred Waring and his Pennsylvanians have introduced and featured\nthe new song, \"Dollars for Defense,\"\nil\nin these times, invest your\ndollars and your dimes\nGeneral Foods has set up a schedule for the rotation of announce-\nments about Defense Savings Bonds and Stamps on eleven of its programs.\nMakers of Bayer Aspirin, Anacin, Kolynos Toothpaste, Dr. Lyons\nTooth Powder, Phillips Milk of Magnesia, Louis Phillipe \"Angelus\"\nCommetics and Old English Wax will make regular announcements on the\npopular serial programs which they sponsor, according to their agency,\nBlackett, Sample and Hummert, Inc.\nThe patriotic cooperation of these large concerns is\ndeeply appreciated by the Defense Savings Staff.\nBusiness Firms Holp Employees to Begin Saving\nTido Water Associated Oil Company has purchased $1 Defense\nSavings Stamps for each of its 10,019 employees. The stamps were presented\nin the albuns which hold 75 of these stamps for the purchase of the $100\nDefense Savings Bond. The Company announced that this is the first step\nin its campaign to raiso one million dollars for National Defense among\ncompany employees.\n& suggestion that employees put their increased earnings in Defense\nSavings Bonds and Stamps was made by Genoral Time Instruments Corporation\nof La Salle, Illinois, when it announced increases of 7% in rates of pay.\nTo give employees an added incontive to hold bonds to maturity, the corpora-\ntion has promised to pay employees who hold them for the full ten year\nterm a bonus of 10% of the cost of the bond.\nThe Ever Roady Label Corporation told its employees the company would\npay 20 por cent toward the purchase price of a Defonse Savings Bond and would\nfinance the bolance on a 30-payment plan. Thus, an employee subscribing\nto a $25 bond would start off with $3.75 (20% of the 18.75 purchase price)\nand pay the balance at the rate of 50 cents a wook. All of the firm's\n170 employees accepted the offer and subscribed for 36,000 worth of\nDefense Savings Bonds.\n*****\nStandard Brands, Inc., food manufacturers and distribut-\nors with more than 10,000 employoes, have placed Defense\nSavings Stamps on sale at its homo office and in all of\nits division offices and plants throughout the country.\nManagers have been authorized to purchase and koop on\nhand a supply of stamps of all donominations and to cn-\ncourage these salus in every possible my.\nThe Now York City Housing Authority notified its 10,783 tonant\nfamilios that th ir occurity doposits would be invested in Defonse\nSevings Bonds. Chairman Cortrd Swope declared that this action would\naid National Defense and in addition, obtain interest for the tenants.\n- 12 -\nRegraded Uclassified\nUNITED STATES SAVINGS BONDS AND SAVINGS STAIPS\nDaily Sales - June 1941\nOn Basis of Issue Price\n(In thousands of dollars)\nPost Office\nDate\nAll Bond Sales\nBond Sales\nBank Bond Sales\nSavings\nStamps\nTotal\nSeries I\nSeries F\nSeries G\nSeries E\nTotal\nSeries E\nSeries F\nSeries G\nJune 1941\n2\n$ 12,844\n$ 5.771\n$ 1,097\n$ 5.976\n$ 2,333\n$ 10,511\n$ 3,437\n$ 1,097\n$ 5.976\n$ 148\n3\n11,785\n4,113\n1,541\n6,133\n971\n10,817\n3,143\n1,541\n6,133\n149\n4\n18,998\n4,817\n1,265\n12,916\n1,707\n17,291\n3,110\n1,265\n12,916\n119\n5\n14,457\n4,614\n1,193\n8,681\n1,813\n12,674\n2,800\n1,193\n8,681\n111\n6\n11,252\n4,736\n1,090\n5,425\n2,283\n8,969\n2,453\n1,090\n5,425\n130\nTotal\n$69,369\n$24,051\n$6,186\n$39,132\n$9,108\n$60,261\n$14,944\n$6,186\n$39,132\n657\nTreasury Department, Division of Research and Statistics.\nJune 7, 1941.\nSource: Division of Savings Bonds. Figures shown as post office sales of Series E bonds are deposits by postmanters with the\nTreasurer of the United States. The bank figures are taken from Federal Reserve Bank reports and include their own\nsales. Stamp figures are estimated by the Post Office Department.\nNote: Figures have been rounded to nearest thousand and will not necessarily add to totals.\n96\nRegraded Uclassified\nTREASURY DEPARTMENT\nINTER-OFFICE COMMUNICATION\nDATE June 7. 1941\nTO\nSecretary Morgenthau\nFROM Mr. Cochran\nCONFIDENTIAL\nRegistered sterling transactions of the reporting banks were as follows:\nSold to commercial concerns\n£31,000\nPurchased from commercial concerns\n£ 8,000\nof the £31,000 solá to commercial concerns, £10,000 vas bought by e Mexican firs,\nOpen market sterling Was quoted at 4.03-1/2. and there were no reported\ntransactione.\nThe Cubar peso, after opening at the current high of 5/8% discount, moved\nIff to et closing discount of 13/16%.\nIn New York, closing quotations for the foreign currencies listed below\nvere ns follows:\nCanadian dollar\n11-5/8% discount\nSwiss franc\n.2321-1/2\nSwedish krons\n.2385\nReichsmark\n.4005\nLira\n.0526-1/4\nArgentine peso (free)\n.2366\nBrazilian milreis (free)\n.0505\nMexican peso\n.2070\nIn Shanghai, the yuan was again unchanged at 5-3/84. and sterling remained\net 1.39-1/2.\nThere were no gold transactions consummeted by u.e today.\nTin new gold engagemente were reported.\n16MP\nRegraded Uclassified"
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