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Volume 666, September 21 – September 24, 1943
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Volume 666, September 21 – September 24, 1943
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Henry Morgenthau, Jr. Papers
Diaries of Henry Morgenthau, Jr.
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DIARY
Book 666
September 21-24, 1943
- A -
Book Page
Allied Military Financial Agency
Report
666 183
American Federation of Labor
See Financing, Government: War Savings Bonds
(3rd War Loan Drive)
Appointments and Resignations
Higgins, Joseph T. (Collector of Internal Revenue,
Third District, New York)
Resignation submitted - 9/21/43
98
Successor (Negro) discussed by HMJr and Sullivan -
9/22/43
139
- B - -
Belgium
Determination of franc-dollar rate of exchange -
correspondence concerning - - 9/21/43
109
- C -
Congress of Industrial Organizations
See Financing, Government: War Savings Bonds
(3rd War Loan Drive)
Correspondence
Mrs. Forbush's mail report - 9/24/43
339
--
- 1 -
Financing, Government
War Savings Bonds
3rd War Loan Drive:
American Federation of Labor and Congress of
Industrial Organizations survey of buyers - 9/24/43.
254
- H -
Higgins, Joseph T.
See Appointments and Resignations
- I -
India
Adler economic survey - 9/23/43
233
#
silver
If
- 9/24/43
365
#
gold
#
- 9/25/43: See Book 667, page 28
Internal Revenue, Bureau of
Silver: Tax on transfers of interests in silver bullion -
proposed Treasury decision amending sent to FDR for
86
approval - 9/21/43
Regraded Unclassified
- L -
Labor Financing Statistics of survey Burann discussed of in Bureau 9/23/43 of Budget letter Book Page
Lend-Lease
228- A
Storage points surveyed periodically to avoid depreciation
of material - 9/21/43
666
107
Executive Reports as of August 31, 1943 - 9/23/43
229
United Kingdom: Aircraft despatched, week ending
September 14, 1943 - British Air Commission report -
9/21/43
105
- M - -
Military Financial Agency, Allied
Report.
183
Morgenthau, Henry, Jr.
Trip to Battlefronts:
White and Smith to accompany HMJr - 9/22/43
181
Allied Military Financial Agency report
183
Leahy (Admiral) requested to ask Eisenhower to await
HMJr's arrival to discuss changes in exchange rate -
9/28/43: See Book 668, page 48
- N -
Negroes
See Appointments and Resignations: Higgins, Joseph T.
(Collector of Internal Revenue, Third District, New York)
Norway
Currency and exchange rate in the event of Allied occupation
discussed in Treasury-State-Imbassy correspondence -
9/22/43
188
- R - -
Revenue Revision
See also Statements by HMJr
Steel Workers (United, of America): Paul discusses tax
proposals of Executive Board - 9/24/43
316
- S -
Silver
See Internal Revenue, Bureau of, for tax on transfer of
bullion
Statements by HMJr
House Ways and Means Committee: Summary of tax program in
HMJr's statement - Paul memorandum - - 9/24/43
334
Steel Workers (United, of America)
See Revenue Revision
Storage
See Lend-Lease
Regraded Unclassified
- T -
Book Page
Taxation
See Revenue Revision
- U -
United Kingdom
See also Lend-Lease
Wood, Sir Kingsley (Chancellor of Exchequer): HMJr's note
of condolence on death - 9/21/43
666
101
a) British Treasury acknowledgment - 9/24/43
363
1) Wood's "Pay-as-you-earn" income tax plan
enclosed
United Steel Workers of America
See Revenue Revision
- W -
Wood, Sir Kingsley (Chancellor of Exchequer)
See United Kingdom
Regraded Unclassified
1
September 21, 1943
10:40 a.m.
THIRD WAR LOAN DRIVE
Present: Mr. Gaston
Mr. Smith
Mr. Albee
Mrs. Klotz
Mr. Cook
Miss Greenbaum
Mrs. Britt
Mr. Fieming
H.M.JR: I have not read Churchill's speech. I
don't know what he says. I take it you fellows have;
if you haven't, please do.
MR. SMITH: I haven't yet because I just got &
message from Sexton I have been reading.
H.M.JR: Now, let me tell you what has happened,
to bring you up to date. I got really excited this
morning because there are only some four hundred million
dollars' worth of E Bonds as compared with the others.
I am all kind of tied up in 8. knot.
Now, here is the job that we have got to do. Beil
is working on it; he is dictating the technical explana-
tion of it. After 8. moving picture theater or a depart-
ment store sells & bond and dates it September 21, it
may take three weeks until that bond clears the Federal
Reserve. See?
Now, they said to me this morning - which is just
blankety-blank nonsense - that I should announce that the
thing will have to take credit for three weeks. So I
have come to this decision, which Bell and Gamble are
working on, that we will close the drive on the night of
September 30 and say that anybody that buys a bond on
Regraded Unclassified
2
- 2 -
or before midnight September 30, which will show on the
bond that he bought it, will get credit. And then we
will say - but Mr. Sproul says that until the stub
comes in to his bank he needs at least three weeks, on
account of labor shortage, to clear it. Mr. Hap Young
of Chicago says he needs four weeks.
I don't care how long it takes to clear because we
have all got our manpower shortages, but anybody that
buys a bond - "Come on, people - make up your mind. You
can just as well make it up today as ten days from now."
Somebody suggested we run the thing until the 15th
of October. I said no. Then they said Run the thing
until October 2." No, because I can't make the people
believe that I am not fudging. If I say every bond dated
September will count, that makes sense, and I think the
public will believe me. But if I do anything else other
than that - I tried it out on Hopkins. I said, "Will
you believe me if I say that every bond dated September
counts and everything after that doesn't?" He said,
"I will believe you; but I won't believe you any other
way." I was over there; that is why I was late. I
was telling him the Herbert Hoover stuff. I wanted to
get that off my chest.
MR. ALBEE: That makes sense.
H.M.JR: I think, if I am going to sit down tomorrow
night with Burgess - "I have got to explain the technical
machinery that we go through; why it takes 80 long and
why we won't know until three weeks after this thing is
over whether this drive is a success or & failure. And
I am saying 80 now, and I am saying that a week from to-
night the War Bond Drive closes."
I'd teil every one of the sixty thousand issuing
agents we should announce that we will stay open until
midnight on September 30. And these fellows in the
factories and every other place, they might just as
well make up their minds in the next seven days - are
Regraded Unclassified
3
- 3 -
they going to buy 8. bond or aren't they; either they
have the money or they haven't. Running the drive two
weeks longer is just 8. sign of failure. The return on
E Bonds is a failure.
MR. ALBEE: I think it is talking turkey. It fits in
with the general grim warlike attitude of the country.
H.M.JR: We have only fifty million more E Bonds
than the First War Loan, and we are supposed to have
twice as many, as of last night.
Now, nobody will know for three weeks whether the
thing is 8. failure or a success.
MR. GASTON: I suppose the Fedscan take care of
segregating the September dated E Bonds from the October
E Bonds in their accounting.
H.M.JR: As I understand the thing, the bond is
dated and what they wait for is the damned stub to come
in.
MR. GASTON: Yes, but the Feds will be getting in
bonds from issuing agents in one package or in one ship-
ment. They will be getting in some bonds dated September
and some bonds dated October; so it will be necessary for
the Fed to segregate the September bonds from the October.
H.M.JR: You don't understand it any more than I did
this morning - if you don't mind my putting you in the
same class as myself. I am going to get some stuff up
here from downstairs to show you.
MR. GASTON: They will have that problem, though.
H.M.JR: No, not if I understand it.
MR. GASTON: I think the banks can handle the segre-
gation all right in their statistics. They have to
segregate them anyway for the purpose of listing the pay-
ment.
Regraded Unclassified
4
- 4 -
H.M.JR: Bell says that is no problem - they do it
anyway.
Now, where are these reporters that went up to New
York?
MR. SMITH: They are upstairs. We got some reports
from them - not from Fleming, he hasn't brought his
report in, but the two girls are in.
H.M.JR: Can't I see them - get it face to face?
MR. SMITH: I think it would be better.
MR. GASTON: People have been lead to believe this
is going to go until October 3. Your big announcement
is an earlier closing date; if we can raise it up to
October 3, we can raise it up to September 30. "It
means a lot more hard work; get busy and get these things
in. Here is the reason we must do this, in order to have
- a clean accounting on the drive."
H.M.JR: You know we have got to decide this other
?thing now. I think it is right. I don't want to pound
it into you fellows unless you think it is right.
MR. SMITH: I think it is right.
H.M.JR: Let's say mechanically - take Bell's word
for it - that it is mechanically possible, and they can
segregate the thing and that they can recognize the
difference, and I am announcing the closing, and announc-
ing why I am closing it. I don't want anybody to say that
I misrepresent it, or anything else. It is going to take
two or three weeks for this stuff, and I am going to name
three or four presidents of the Federal Reserve and say,
"He says he can't do it under so much time. I want the
public to know; this is your drive - your financing. This
is a people's financing, and I want you to know - there-
fore I want a clean-cut - I don't want anybody who is an
enemy of the volunteer plan to say that I am fudging."
Regraded Unclassified
5
- 5 -
MR. GASTON: I think it would be well to tell how
many thousandsof issuing agents, how many stores, how
many banks--
MR. SMITH: That alone makes it believable. Sixty
thousand people selling bonds - obviously you can't keep
abreast of sixty thousand people selling bonds. I think
that is a big part of this whole story.
MR. GASTON: "We take our figures only when the
transaction is completed in the Federal Reserve Banks
as fiscal agents of the Treasury. we don't go on any
estimates."
MR. ALBEE: What form would you like this to take
Thursday night - a formal speech, or some sort of a
round-table chat?
H.M. Well, it might be as between Burgess and
Allan Sproul and me.
MR. SMITH: Burgess called this morning and he is
all steamed up about this round-table business. He
thinks you ought to have a few people from his committee.
He had some ideas that ought to go into the script, he
said. The first one was he wanted to ask you what were
your impressions and suggestions, and what not. You
have been all around every place to see this thing, and
he thought you ought to say, in essence, that the wide
variety of people working on this thing - everybody is
working on it - and that would give him an opportunity
then to point out that the reason everybody is working
is because--
(Miss Greenbaum, Mrs. Britt, and Mr. Cook entered
the conference.)
H.M.JR: Fred, do you want to hear from the girls
or do you want to hear about Burgess?
MR. SMITH: Let's hear from the girls. This we will
take up later, anyway.
Regraded Unclassified
6
- 6 -
MR. COOK: Mr. Fleming will be over very shortly.
He got in to his hotel about three or four o'clock this
morning.
H.M.JR: Well, look, to get - forget this is the
office of the Secretary. I am just a man who would like
to hear what you saw yesterday and what you think. What
paper are you with?
MISS GREENBAUM: I am not with any paper right now.
I am Scripps-Howard, though.
MR. COOK: She was for years on the World Telegram.
MISS GREENBAUM: I went to Brooklyn and to Long
Island, and Long Island I found not in anything like the
shape of Brooklyn. For instance, they have a rather
difficult problem there of having their Que Gardens and
Jackson Heights, and those, buying in New York. But
they have got a campaign worked out there and they are
trying to get every block in the city to buy a block-
buster. That is their slogan. And they are about forty-
four percent up on that. There isn't quite 80 much color
to that over there, although I think they are working
very hard. But they are not quite as organized there,
and they have that difficulty.
Who had my notes on that?
MR. COOK: You are speaking of Queens now, as against
Brooklyn?
MISS GREENBAUM: Yes. But Brooklyn is just magnifi-
cently organized. You have never seen anything like the
way the groups - every group in Brooklyn, down to every
family, practically, is taken care of in Brooklyn. They
have their schools, their factories, their foreign sec-
tions and every group there is organized so that they can
go to every one of them and they know exactly what they
can do.
Regraded Unclassified
7
- 7 -
What they are doing in this particular place, be-
sides things like theaters where they have big bond
railies and that sort of thing - they are having bond
rallies at the rate of about ten a day which go right into
the factories and the war plants and ail that sort of thing,
and they really expect that in most of those they will
get almost a hundred percent cooperation because they are
so well organized within the factories. And they have
speakers and sort of entertainment groups who go at noon
to these factories, and they really put on a show and they
work up that Brooklyn Dodger sort of enthusiasm and sign
them up right there. And that is what they are specializ-
ing on right now, because they have 80 much - they have a
very large bond sale there, anyhow. And they have those
at the rate of about ten a day.
Then all over the sidewalks there they have "Buy
Bonds" stenciled on the sidewalk. The whole town is done
up with banners - "Buy Bonds" - and practically every
place you see the posters. You are very aware of it
over there.
Now, for instance, a small club like the Elite Club
over there decided to go out for some one particular
thing - I mean, for one particular piece of equipment.
They raised a hundred and ten thousand dollars one week
for this. That was their goal. The next week they
thought they would try to raise another one. As I say,
their goal was to raise a hundred and ten thousand in
that one particular club. They got that in one week and
they are now on their third, which is three times as much
as they put themselves out to do.
There was one woman came in that they really didn't
know. She said she wanted to do something. They said,
"Why don't you sell bonds in your own apartment house?"
That woman brought in six thousand dollars the first
week, and she is now up to something like thirteen thou-
sand.
They are doinganother thing in apartment houses
that is very interesting. They get the photographs of
Regraded Unclassified
8
- 8 -
all the men in service and they put those down in the
front hall and "Bonds" underneath, and say, "Back the
boys in your house."
That is a little local idea of what they do there.
There is a hotel or a sanitarium called the Jewish
Hospital and Sanitarium for Chronic Diseases. Just the
patients have sold one hundred and ninety-four thousand
dollars worth of bonds. They sell them to the nurses and
to the people that come in, and to the doctors and that is
I mean, those are inmates - those are people that can't
get out. That is what they want to do.
MR. ALBEE: I have been in that hospital. Most
of those people are seventy and seventy-five years old.
MISS GREENBAUM: There is one Brooklyn firm - he
doesn't want his name given out - who will give one dollar
for every eighteen seventy-five dollars that his employees
put in.
There is one woman in Brooklyn that sold three
million dollars' worth of bonds just by opening up sort of
a bond - her house outside says, "We sell bonds here."
She sells them on busses, on trolleys, and from door to
door, and that woman averages - not just this, but she
averages about four hundred thousand & month on sales.
And there are other people that do that sort of thing in
Brooklyn. You can't believe it.
They did 8. very cute little stunt there when Elsie
the Cow, you know, presented a million dollars' worth
of bonds there. They had a large key to the city made
for Elsie and presented it on the courthouse steps.
Every time they sell bonds - just like - you can't
believe-- (Laughter)
H.M.JR: Not bad for Bordens. (Laughter)
Regraded Unclassified
9
- 9 -
MISS GREENBAUM: They told me in the Women's
Department, which is under Mrs. Sturgess, that now no-
body gets excited or pays any attention when they get a
million-dollar check. The first one they got, the women
kind of got up from their chairs and looked at it, but
now it comes in 80 fast that you just deposit the million-
dollar check. When they first opened that department
over there, as a matter of fact, they had no provision made
for taking the money that came in. They had so much money
to handle they really were frightened; they didn't know
what to do with it.
H.M.JR: That is a Women's Department in Brooklyn?
MISS GREENBAUM: In the Brooklyn headquarters, under
Mrs. Sturgess. They send out--
H.M.JR: Excuse me - make a note, Fred, that I
should see Mrs. Sturgess.
MISS GREENBAUM: Brooklyn doesn't have any releases;
apparently the papers come to them. It is very hard to
just dig out these little things. But I did find this
thing - I thought it was very funny. There are three
women over there in the million-dollar class - bringing
in checks 80 fast - so they had a luncheon to give cita-
tions to them for the outstanding work - but they really
have no time for this sort of thing. So they arranged
this luncheon, and it was very nice except that when
they got there the three women of honor couldn't be
there because one woman was in bed with her feet and legs
tied up because she had done so much walking around;
another woman had a heart condition and she had to be put
to bed by her physician; and the third woman - her throat
had given out and she was utterly unable to speak. So
they had the luncheon and not one of the guests of honor
was able to get there. (Laughter) That is typical of
Brooklyn.
I showed Mr. Cook the Brooklyn Eagle the first day.
It was in large green type - "Buy Bonds, Back Brooklyn
Buddies" - practically green paint over the whole front
page of the newspaper.
Regraded Unclassified
9
- 9 -
MISS GREENBAUM: They told me in the Women's
Department, which is under Mrs. Sturgess, that now no-
body gets excited or pays any attention when they get B.
million-dollar check. The first one they got, the women
kind of got up from their chairs and looked at it, but
now it comes in 80 fast that you just deposit the million-
dollar check. When they first opened that department
over there, as & matter of fact, they had no provision made
for taking the money that came in. They had so much money
to handle they really were frightened; they didn't know
what to do with it.
H.M.JR: That is & Women's Department in Brooklyn?
MISS GREENBAUM: In the Brooklyn headquarters, under
Mrs. Sturgess. They send out--
H.M.JR: Excuse me - make & note, Fred, that I
should see Mrs. Sturgess.
MISS GREENBAUM: Brooklyn doesn't have any releases;
apparently the papers come to them. It is very hard to
just dig out these little things. But I did find this
thing - I thought it was very funny. There are three
women over there in the million-dollar class - bringing
in checks so fast - so they had a luncheon to give cita-
tions to them for the outstanding work - but they really
have no time for this sort of thing. So they arranged
this luncheon, and it was very nice except that when
they got there the three women of honor couldn't be
there because one woman was in bed with her feet and legs
tied up because she had done so much walking around;
another woman had a heart condition and she had to be put
to bed by her physician; and the third woman - her throat
had given out and she was utterly unable to speak. So
they had the luncheon and not one of the guests of honor
was able to get there. (Laughter) That is typical of
Brooklyn.
I showed Mr. Cook the Brooklyn Eagle the first day.
It was in large green type - "Buy Bonds, Back Brooklyn
Buddies" - practically green paint over the whole front
page of the newspaper.
Regraded Unclassified
10
- 10 -
MR. 000K: Ninety-six point type. I sent it over to
Doob this morning.
H.M.JR: I only got this idea Sunday.
MR. GASTON: Are any of the papers covering these
feature stories of the drive - any of the daily news-
papers covering them at all?
MISS GREENBAUM: I don't know. Brooklyn papers are
very cooperative. No, I don't know that they are. You
see, it is a local thing up there. Brooklyn always works
differently from New York City and works in its own way.
You never know too much about - you never really know
how Brooklyn does a thing except that it is like what
they work up for the Brooklyn Dodgers - it is just some-
thing that happens over there.
MR. COOK: Murray Davis of the World Telegram--
MR. GASTON: That is where the newspapers should be
building their correlary copy on this drive all over
the country.
MISS GREENBAUM: For instance, here is the picture of
Elsie - here is Elsie presenting the thing, and then
they have Elsie getting the key to the city of Brooklyn.
(Laughter)
H.M.JR: They really got a cow. Isn't that wonderful?
MISS GREENBAUM: They are using this a great deal
because this (indicating boy holding poster) is a Brooklyn
boy.
As I say, there are no records - nothing you can go
to - you just have to talk to people around there and
they are all so busy answering the telephones they don't
have time to do much, but this is sort of a general picture
of what Brooklyn is, and it is fantastic.
Regraded Unclassified
11
- 11 -
H.M.JR: Could I ask you this - I am going to save
my question - no, I will ask it now. We are thinking
here of closing the drive on Thursday, September 30,
and announcing that tomorrow night so as to keep it within
the month. What effect do you think it will have on
these people that you have seen in Brooklyn?
MISS GREENBAUM: I think they figure it will be
closed about that time anyhow, don't they?
H.M.JR: I mean, will they be able to get over the
territory?
MISS GREENBAUM: Brooklyn will get over it. Queens
won't, I don't think.
H.M.JR: In other words, the people who are going
to do it will do it anyway?
MISS GREENBAUM: Yes, and what would happen -
Brooklyn will meet this, and they expect to more than
meet it. But if it were that, they would just go 8
little bit harder.
H.M.JR: They will?
MISS GREENBAUM: Oh, yes. They will get it in. I
mean, Brooklyn won't fall down on that.
H.M.JR: They won't slow down?
MISS GREENBAUM: Oh, no, Brooklyn can't slow down.
You have never seen such a place as Brooklyn.
H.M.JR: Is that--
MISS GREENBAUM: That is just about it.
H.M.JR: What do you think closing it on the 30th--
MRS. BRITT: I was told that the door-to-door cam-
paign was just getting under way - they told me yesterday
Regraded Unclassified
12
- 12 -
that the individual contributions, the door-to-door
campaign, was just about getting under way; but I think
that if they knew the drive was to end on the 30th they
would make a definite effort to cover all the territory.
But they need advance notice.
H.M.JR: They would get notice tomorrow. It would
give them a week.
MRS. BRITT: I think, as you said, the people who
are going to do it will do it.
H.M.JR: Where did you go?
MRS. BRITT: I went to the Bronx and Manhattan. I
didn't go to Staten Island, but got a report and got the
figures on what the foreign language groups were contri-
buting - the Greeks and the Norwegians and the Italians.
New York City is organized under three categories:
The banking and investment group; the insurance boys who
are out scouring; the pay-roll savings committees already
established, which are in the factories; and the community
sales group, which are the ones - the little people doing
the actual work. They work all day and spend their nights
in these empty stores and various depots around the city.
Those are the people, according to the State Chairman, who
are maybe not bringing in the most money, but doing the
most work.
A taxicab driver has taken it on himself to organize
all the taxicabs - to campaign for them. And a shoemaker,
for instance, won't give shoes back to the people who are
sitting waiting until they have bought a War Bond. One
woman - an AWVS girl - refused to let her dinner guest in
until he bought a war bond. Those are some of the indivi-
dual things.
(Mr. Fleming entered the conference.)
Regraded Unclassified
13
- 13 -
MRS. BRITT: The Bronx is sort of on a nautical
slogan, "Back the Attack with the S.S.Lafayette." They
are raising the money to equip the Normandie. The colleges
are going to put on a big review for the public Thursday
night, competing with you. They intend to raise six
million dollars.
H.M.JR: They won't compete. I am on at six-thirty.
MRS. BRITT: They have a lot of shipbuilding indus-
tries which are mobilized. Staten Island is out to pay
for Halloran General Hospital - a nine-million-dollar goal.
In their house-to-house campaign - sixty thousand houses -
and one big rally at the St. George Theater they hope to
raise, I think, about two billion dollars.
Manhattan is really all-out organized for that big
victory tent. Something is going on every minute there.
Somebody is holding a rally - all the groups in Manhattan,
the Stock Exchange, the churches, the City Council, and
the police groups.
H.M.JR: I have got to interview both of you. This
is the way my mind is going. I don't know whether I am
right or not. Let me explain what I have in mind, and
then you people from the field can give me this thing.
We just barely got the number of E bonds, as of last night -
maybe fifty million dollars more than we had at the same
time in the last drive. Of course it is the E bonds we
want.
The story we are getting is that it will take from
two to three weeks for these bonds to come to the Federal
Reserve from the sixty thousand issuing agents we have
all over the country.
Now, as I understand it - it may not be exactly correct,
so don't somebody correct me technically - but the thing is
that if you buy a bond in September we will know it is
bought in September and we can prove it is bought in Sep-
tember; and the thought is that I would say tomorrow night
that a week from then the bond drive will close at
midnight. Anybody who buys a bond up to midnight on
the night of September 30 will be amongst those listed
Regraded Unclassified
14
- 14 -
as doing his part during the month of September. Now,
in the first place I would like to get your reaction on
that. Then I can say it is going to take two to three
weeks to know whether this bond drive is a success or a
failure, which will be the truth. The Feds just can't
clear it.
I am going to quote three or four presidents of the
Federal Reserve Banks, maybe have them on the air with
me, say they can't clear this stuff under two or three
weeks, that is, the stubs that come in. Do you think that
the public will believe me, that this isn't just an alibi
that I am using? I mean, can we sell this thing to the
public that this is a bona fide fact it will take us from
two to three weeks to know what the returns are of the E
bonds?
MR. COOK: May I offer & suggestion?
H.M.JR: That is what you are here for.
MR. cooK: I think that instead of doing that the
first time down there, that the stories, that is, with
the figures as we give them out each night, should carry
some quotes from different persons along that line so that
the public will kind of have the idea, and then you clinch
it down there. But I am afraid that the newspapers and
the press associations, and so forth, around the country,
and a lot of people - if it is just made, that announcement
or that speech, that there might be some question because
it will be right up toward the close of the drive.
H.M.JR: It will be tomorrow night.
MR. COOK: Yes, tomorrow night.
H.M.JR: This is Wednesday night. I misspoke myself -
that is right, I am doing it Thursday night.
MR. COOK: Then there are two days' announcement on
figures, where we might be able to get some quotes from
some of the Federal Reserve Banks along that line, somebody
Regraded Unclassified
15
- 15 -
not connected with the Treasury, so that that would come
from outside before you make the announcement there, and
then you would clinch it. That is my thought. Now, it
is just my thought.
MR. GASTON: I am thinking along different lines.
I am thinking it is better not to sell this thing too
hard. They will think you are presenting an alibi.
Announce it in a perfectly matter-of-fact way. I don't
think you need the supporting testimony of presidents of
Federal Reserve Banks. The first thing is quite obvious -
a mechanical problem. You just handle it as a matter of
course.
MR. SMITH: On the round-table why not put one of
your issuing agents on and let him tell what he does with
his stubs, and have a Federal Reserve president who could
pick up the mechanics when he gets it. It is obvious
howlong it takes to do it.
Then you say, "When we close this thing September 30" -
in a sort of a parenthetical way, "When we close it September
30 it will take approximately three weeks to wind it up."
MR. ALBEE: It took two weeks after the Second.
H.M.JR: We were criticized.
Take Cook's idea. Suppose the twelve Federal Reserve
Bank presidents got out a statement saying it was going to
take two or three weeks to wind it up and they do the thing
locally. I mean, just simply say, "We want our community
to know that we are not going to be able to give an account-
ing for two or three weeks after this drive closes" -
whenever it closes. "It will be two or three weeks. I
rather like that idea.
MR. GASTON: I don't. I think it will introduce con-
fusion, we don't know what we are about.
MR. SMITH: Isn't it perfectly logical to say that
they are two or three weeks behind the actual sales because
of the mechanical operation and then wind up by saying that
Regraded Unclassified
16
- 16 -
therefore it will be three weeks after the drive is ended
before the final figures are in?
H.M.JR: If you aren't sure they are going to handle
the thing right, the way you could do this thing is this:
I like the idea of bringing in these Federal Reserve Bank
presidents to explain handling the mechanics.
There is another thing; they get a much better press
than I do.' There is no question about it. They are not
part of the New Dealers, 80 the papers will carry stuff
that they say when they won't carry what I say.
MR. GASTON: You get that same result by letting them
follow you and explain it in the local communities after
you have made the announcement about the close of the
drive on September 30.
H.M.JR: I am bucking you, Herbert. I was thinking -
I have Sproul in this and I might bring in Hap Young from
Chicago and say, "Mr. Young, how long will it take you -
you have just heard me announce that we are closing on the
night of September 30. How long will it take you until
you think you can clear?"
He will say, "Well, Mr. Morgenthau, the best estimate
I can make is it will take me three weeks."
"You can't speed that up any?"
"No, Mr. Morgenthau, we are short, haven't got the
typewriters. We have been working Saturdays and Sundays.
We are working every night here, and I have the people
sleeping on cots in the Federal Reserve. We are doing
everything we can. We will do everything we can to back
you up.
"All right, thank you."
"Mr. Leedy in Kansas City, how long do you think it
will take you?
Regraded Unclassified
17
- 17 -
"Well, Mr. Morgenthau, it will take 80 long."
"Dallas, how long will it take you?"
"Come in San Francisco. What about you?"
"Well, Mr. Morgenthau, we are swamped. The thing
is going beautifully, but the country is going to have to
be patient on the returns" - just do it on half a dozen
people - be optimistic, but just bring in three or four
people, pipe them in on the talk.
MR. COOK: That is going to be fine for the people
who are listening to the broadcast. And the question as
to just how far the newspapers are going to go in pub-
licizing that around the country is a question. I mean,
it is going to get good publicity and reach a lot of
people.
The thought about having the various districts - the
thought of having it come from the twelve districts and
released locally will reach many more people in addition
to what you are going to reach - you will cover the country
that way, but you will not cover it on the broadcast.
H.M. JR: Can't we do it simultaneously, I go on the
air Thursday night and each Federal Reserve president gives
out a statement for Friday morning's papers locally besides?
Would that take care of it? I mean, over his name.
MR. COOK: That would do it. Each of the twelve
banks can give out a statement Thursday night, locally,
of their own. I think that would augment the general
story and the broadcast story.
H.M.JR: I think that would be better than doing it
in advance. I am a little bit afraid of the advance stuff.
MR. COOK: I think you are right. I was just trying
to figure out how you could get to the most people and get
that message across by using every means at hand.
Regraded Unclassified
18
: 18 -
H.M.JR: Well, why don't you people work on that?
You are all technicians - I mean, you are much better
equipped on that than I am. But my inclination would be
to pipe in three or four of these fellows who are the
furtherest behind and back it up with 8. statement from
every one of them telling what their troubles are and how
hard they are working and how much stuff is waiting to be
cleared.
Do either of you ladies have any particular outstanding
cases, particularly of foreign-born cases up there in New
York?
MRS. BRITT: Just groups, no individuals by name.
H.M.JR: Any groups particularly?
MISS GREENBAUM: This Italian newspaper is now running
a whole page and running also the names of people who buy
bonds - it is devoting about a page a day to bond sales
and to the number bought by people. That is, of course,
just the Italian group.
MRS. BRITT: The Starving Armenians have raised more
than half a million dollars, which was their quota - I
mean, the ones we used to say were. Within New York
they have gone over their quota already.
H.M.JR: How about - did you hit any Italian groups,
the lower east side Italian section?
MISS GREENBAUM: I just went into the office at the
end of the day. They said that of course there would be
tremendous support of it and that they were just beginning
this daily paper business. They had in both papers that
they gave me full pages - a whole page devoted to the
bond campaign.
H.M.JR: You have nothing particular?
MISS GREENBAUM: No.
Regraded Unclassified
19
- 19 -
MR. SMITH: Greenbaum told me the lower east side
had the best record of door-to-door - they sold two out
of the total of seven million.
MRS. BRITT: The first district in New York to go
over their mark, two million dollars out of seven mil-
lion, was the lower east side. That was during the early
part of the program. Those figures are probably even
more today.
MISS GREENBAUM: I found in both Queens and Brooklyn
that they hadn't done much on the door-to-door campaign
yet, and no returns, because that is apparently something
they do toward the last.
H.M.JR: How about you?
MR. FIRMING: I didn't go into that side of it at
all. I went downtown. Apparently they have their sales
organization much better set up through these sixteen
bank teams. They have taken - I thought it was done
intentionally, with Whitney down on team eleven and Potter
and Chase up on teams one and two, or somewhere around
there, and Leon Fraser down on team thirteen or so, but
General Black told me the teams were set up on the basis
of the size of the banks. (Laughter)
H.M.JR: I don't get the significance of what you
are saying.
MR. FLEMING: When I looked at the list of teams,
here was George Whitney of J. P. Morgan way down on team
eleven or twelve, and Leon Fraser of the First National,
which is closely related to J. P. Morgan, way down on team
thirteen, so I thought the world had been changed around.
(Laughter) But it wasn't that way. J. P. Morgan just
happens to have a smaller number of deposits than most
of the big banks. Actually it was led by the City--
H.M.JR: Oh, thirteen in number of--
Regraded Unclassified
20
- 20 -
MR. FLEMING: No, they have sixteen teams numbered
one, two, three, and so on. I thought the Morgan people
were pushed down to the chairmanship of the last team,
but it wasn't SO.
H.M.JR: Just an accident? (Laughter)
MR. FIEMING: Just an accident.
H.M.JR: A happy accident. (Laughter)
MR. FLEMING: These teams - each bank has taken in
the smaller banks around, and also they have taken the
brokerage houses and tossed them all in, just divided them
up, put them in banks without any particular allocation.
Black found over at War Finance that not all the
member firms were taking part, SO he talked to Schram.
Schram put the heat on them, and they are all in now.
And the Stock Exchange was - the people there were very
much perturbed yesterday afternoon until about quarter
of six as to whether you were going to come over to the
floor of the Exchange.
H.M.JR: You mean they were worried I would come?
(Laughter)
MR. FIEMING: Worried you - they were afraid you
would not appear, and they are planning to put on the
biggest rally they have ever had in Wall Street, and you
will be the first high official to visit the floor of the
Exchange since William Howard Taft in 1917 spoke for the
Second War Loan,
They plan to have an exhibit of equipment down there -
I think they will borrow it from the show at Sixth Avenue
and Fiftieth Street - which will fill Broad Street from
Wall Street down to Exchange Place; and they are going to
get the military band in there and get them on the floor
of the Exchange and play during the last half hour of
trade. They have extremely elaborate plans for decorating
the floor of the Exchange.
Regraded Unclassified
21
- 21 -
They are going to open the Exchange floor to the
public, and they are debating as to whether they will
release the figures on total sales by members of the
Exchange up to the time of your speech, or just on the
day. They don't want to - if they are going to make it
on the day, that is Thursday - they don't want to release
that fact beforehand, because then some of the members
would, no doubt, go a little slow today and tomorrow in
order to make a larger total on Thursday.
Schram is to make the introduction, and they are going
to have some general, possibly Terry Allen, or, I think,
Admiral Andrews, or Hugh Drum, to follow you.
H.M.JR: There was great argument as to whether I
should go.
MR. FLEMING: You would have broken a lot of hearts
in the Street if you hadn't gone.
H.M. JR: You had better write me about two hundred
and fifty words, will you?
MR. FLEMING: On what I just said?
H.M.JR: No, no, on what I should say there.
MR. FIEMING: Oh, well, you can say that the Stock
Exchange was originally founded in order to float the
U. S. Government bonds, and I will think up a few more
ideas.
MR. GASTON: You could say stock brokers are also
people. (Laughter)
H.M.JR: How did William Howard Taft get there in
the Second War Loan?
MR. FLEMING: He was not an official; he was an ex-
President.
MR. GASTON: Professor of law at Yale University.
Regraded Unclassified
22
- 22 -
H.M.JR: Was he a lawyer? He must have been. I am
serious. Will you see what you can type out for me? I
don't guarantee to deliver it, but - well now, what else
did you find out?
MR. FLEMING: That is about the gist of it.
H.M.JR: Well, if I am going to go there I might as
well say something nice about them.
MR. FLEMING: I don't think of anything that - I will
sit down and think out something nice.
H.M.JR: Should I ask them why they happened to
de-list Transamerica? (Laughter)
MR. FLEMING: I don't think that would be a good idea.
H.M.JR: You wouldn't do that?
MR. FLEMING: No.
MR. GASTON: This is a project--
MRS. KLOTZ: You might get the answer. (Laughter)
H.M.JR: Also I might get a rotten tomato. (Laughter)
MR. GASTON: It might be unfriendly to say that this
is a project to repopularize the Stock Exchange, but it -
it might have some of that effect, but that doesn't do any
harm.
H.M.JR: That is all right, Herbert. Last time they
did an awfully good job.
MR. FLEMING: Black figures that the Stock Exchange
people had no facilities for figuring up what they sold.
They sold five hundred million. Black is sending figures
over regularly to Schram on what they are selling. They
hope to do substantially better.
Regraded Unclassified
23
- 23 -
H.M.JR: Well now, we have got this. Now, this is
my idea to keynote - the keynote that I want to strike.
I would like to read from an editorial in the Washington
Post. Whoever wrote this did it so well. You haven't
found out who did it?
MR. SMITH: Ted said that Allen Barth wrote it. We
haven't been able to check through the Post itself, because--
H.M.JR: I launched Allen Barth here. He was with
me, you know.
MR. SMITH: Ted said they asked him to do it, and
he probably did.
H.M.JR: He used to be with the McClure Syndicate.
He couldn't stand it any more and came over here for a
breath of fresh air.
"There need be no talk, at this juncture, of failure.
We are not, as a nation, going to fall down on our responsi-
bilities. But the individual nature of these responsibilities
needs to be better understood. It is no solution to assume
that insurance companies and other institutional investors
will purchase huge blocks of bonds at the last minute in
order to assure the program's success. What is essential
to the success of this campaign is that every American
should participate to the limit of his individual ability.
That is the only way in which the Third War Loan can serve
effectively to mop up our huge and dangerous surplus buying
power.
"The money for the requisite amount of bond buying by
individuals is available in the pockets and bank accounts
of the American public. But too many of us are yielding
to the temptation to use it instead for the purchase of
immediate personnel satisfactions. For the week ended
September 11 department store sales jumped to ten per cent
over a year ago. This is an indication that people are
choosing to spend in the present rather than invest in the
future. What is asked of us is temporary self-denial.
This is the test by which each of us must judge for himself
Regraded Unclassified
24
- 24 -
if he has done his share. Only if we meet this test -
all of us - can we reach the real goal of the Third War
Loan Drive.
Well now, the thing - I don't want to mention his
name, but a Treasury official was at my house last night
for supper, and he was going up to Boston - it is right
along this same line. He said he would like to take his
wife, and it would cost fifty dollars.
She said, "Oh, no, I don't want to go; I would rather
put the fifty dollars into a bond.
This man is a very liberal person. Finally he said,
"I persuaded my wife to go and spend the fifty dollars
anyway. I ought not do it; she shouldn't go. I should
buy that bond. Nobody has yet really deprived themselves
of anything."
The thing I think, gentlemen, if we are going to get
this thing - whatever time I got left - I would like to
pour it on that nobody yet has really tightened their.
belt and gone without anything. There isn't anybody who
works, who has a job in the country, who can't buy at least
one twenty-five dollar bond extra. I mean, I want to get
away from the New York Stock Exchange and all the
rest of this stuff.
I don't know why you people - I would like to know
how you people - but that is the keynote; if we are going
to get the twenty-five dollar bond - and it is true there
is nobody in this room who has really gone without anything.
I mean, there isn't & factory worker in the United States
who has a job who couldn't buy an e xtra twenty-five dollar
bond if he wanted to.
I dictated an awful lot of stuff, and I would like to
talk about the money, the cash they have in the sock, or
in a glass jar, or somewhere, also the money they are
storing up for Christmas purchases. "Don't buy that
Christmas present; buy an extra bond now. Buy a bond
now to give for Christmas. If you are going to have that
Regraded Unclassified
25
- 25 -
money, invest it in a twenty-five dollar bond and give it
to your friends for Christmas, but buy it now. Buy that
Christmas present now. 17
MR. ALBEE: The tone of the whole talk will be pretty
darned grim; "this is war, and let's not have any nonsense.
Let's not compliment one another. This is the business;
this is our share; let's get it done."
H.M.JR: "Now, you have a week to go. I think it is
all right. I am not sure, but nobody knows except the
people of this country. "And don't tell me you can't buy
a bond.
MR. ALBEE: It runs counter to one thing which checks
with Harriet Elliott's study of what people are thinking,
and also personal stuff we have all picked up; maybe
Americans are just babies, but they all seem to want you
to pat them on the head and say, You are doing wonderful;
you are such a bright girl. If They want little ribbons
or buttons. That is the only thing we are bucking with
such an idea - telling them they haven't been good enough.
H.M.JR: In want these three people in the field to
tell me how the latter part I said will fit in. After
all, will that get results?
MR. FLEMING: Well, Mr. Secretary, the figures on
the amount of cash that people have on hand - I don't
know whether that is true of New York - the amount
people have of cash on hand is appalling. I think your
brain trust downstairs has figured out that savings are
accumulating at the rate of thirty-six - more than
thirty-six billion a year, which is three billion a
month. We have had five months since April, and people
must be reeking with money.
H.M.JR: It is twelve billion dollars of cash on
hand, I think the figures are. Those figures are avail-
able.
MR. FLEMING: There is eighteen and a half billion
of folding money on hand.
Regraded Unclassified
26
- 26 -
H.M.JR: Well, I am behind.
MR. FLEMING: It is going up at the rate of a dollar
a week for every adult in the country.
H.M.JR: Please speak up. This is the tone I want
to strike. What do you think?
MISS GREENBAUM: You see, we just worked with the
people who are out getting the money. I wouldn't really
have much of an idea on that.
MRS. BRITT: I think the Christmas present angle
would go over very well, especially in New York.
H.M.JR: You like that?
MRS. BRITT: Yes.
H.M.JR: That was on the record, wasn't it, the one
I dictated to you fellows?
MR. SMITH: Yes.
H.M.JR: If you are going to--
MRS. KLOTZ: Who is going to give an eighteen seventy-
five present?
H.M.JR: They can buy & stamp. You can say, "Whatever
you are going to buy give it in stamps or bonds. How is
that? "Whatever you are going to buy for Christmas, buy it
now in stamps and bonds and have them on hand for Christmas.
Don't buy that kiddycar or this or that thing. What do
you think?
MR. FLEMING: Well, if you want to buy a bond, you are
going to buy a bond; you can't buy something else later by
putting it away in the form of a bond now, or you will have
your redemption figures go up in December. You don't mean
that? You mean buy a bond for that Christmas present?
H.M.JR: No, you can buy it in the person's name -
give them a bond instead of a kiddycar, or buy stamps.
Give the child 8 one-dollar stamp for Christmas.
MRS. KLOTZ: But the idea is to buy it now.
Regraded Unclassified
27
- 27 -
H.M.JR: Buy whatever it is, a twenty-five cent
stamp, or a dollar stamp now, to give your child for
Christmas instead of giving him some nonsensical toy.
MR. COOK: There is a newspaper campaign all over
the country right now to buy Christmas presents to send
overseas to the soldiers because they have got to be in
by October 15 to reach them by Christmas, and we can
turn that right back through the newspapers, "Instead
of sending a Christmas present over, save mail that
takes the place of bullets; buy a bond in their name
for Christmas and have it here. Just notify them by
card or V-mail."
I think every paper that is running that campaign
around the country would at a suggestion from you inject
that into their story.
H.M.JR: Have you got time to turn it around?
MR. COOK: They are just saying, "Buy Christmas
presents." They can save a lot of space for materials
by just notifying them that they have a bond here instead
of sending packages.
H.M.JR: Well, if one of you people will contact - I
heard what the Christmas estimate was that Frank Walker
made - the amount of space it will take. It is 80 over-
whelming, what he figures it will take - I mean, do we
want to use - I don't want to even say what it was, but
the space it is going to take is so terrific. Let's save
that tonnage for bullets.
MR. COOK: We can get 8. story along that line and
break it after your talk down there.
MR. ALBEE: Signed by a soldier, whether a private
or B. general.
MR. COOK: We can get some figures and get a good
story to follow in on your talk.
Regraded Unclassified
28
- 28 -
H.M.JR: Smith and Albee, are you ready now?
MR. ALBEE: Yes, sir, ready to go.
H.M.JR: Then will you people feed your stuff to
Smith and Albee for me?
Well then, I guess that is about all. Thank you very
much. It is worth while.
Did you feel it was worth while?
MISS GREENBAUM: I was tremendously excited by it.
Doaradod i di
29
September 21, 1943
Fred Smith
George Albee
Secretary Morgenthau
Harry White made the suggestion that in trying to get
people to buy small bonds, we ought to appeal to them to
give up something. He feels that a great majority of people
haven't given up anything, and if they gave up just a little
there is hardly anybody in this country that couldn't buy a
$25 bond, and he cited his own case. He feels that there are
millions of people who if they would just deprive themselves
of something in their normal life, they could buy at least a
$25 bond, If not more. I think that is good reasoning, and
I'd like to use it and build 8 good fighting talk around it,
if you people agree, for my talk on the radio Thursday night.
Let's go after the money they have saved up to buy some
luxury for Christmas. Tell them to put that into 8. bond now.
In other words, let's go after that Christmas money and see
if we can't get some of it. I think we also ought to gotafter
the currency and the small change in the nook or in the tin can
or in the glass jar.
Regraded Unclassified
30
Fred Smith
September 21, 1943
George Albee
The Secretary.
The editorial in today's Post entitled "We Must Meet
It" 18 excellent. I refer you to the third paragraph. I like
the sentence particularly, "This 18 an indication that people
are choosing to spend in the present rather than to invest in
the future." This whole paragraph is very good -- right along
the line of my earlier memorandum to you. I think that's the
keynote for my next speech. Please find out right away who
wrote that editorial. I want to know who wrote it for the
Post. I'd like to write him 8. letter complimenting him or
her, whoever it is.
Regraded Unclassified
31
September 21, 1943
11:40 a.m.
HMJr:
Hello.
Operator:
Go ahead.
Andrei
Gromyko:
Hello.
HMJr:
Hello, Mr. Ambassador.
G:
Good morning, Mr. Secretary.
HMJr:
How are you?
G:
Thank you very much. I am all right. How are you
today?
HMJr:
Very well.
G:
Mr. Secretary, I am calling to inform you that I
received pursuant to your inquiry- to your request...
HMJr:
Yes.
G:
regarding statement of one of the Soviet Officers
here in Washington
HMJr:
Yes.
G:
General Belyaev 18 the Russian General
HMJr:
Yes.
G:
will speak
HMJr:
Good.
G:
but General Belyaev is going to leave Washington
HMJr:
Yes.
G:
for Moscow by plane
HMJr:
Yes.
G:
through Alaska
HMJr:
Yes.
Regraded Unclassified
- 2 -
32
G:
on September 25th
HMJr:
Yes.
G:
and it will be very difficult for him to postpone
his trip since weather is been getting worse and
worse.
HMJr:
Yes.
G:
And if you have any idea, Mr. Secretary, about the
time of the statement
HMJr:
Yeah.
G:
of course, it would be desirable to have it
before the 25th.
HMJr:
Before the 25th?
G:
Yes, sir.
HMJr:
Have you got the statement?
G:
Yes, I have that already and General Belyaev 18 in
my office right now. I am talking with him about
the statement and other details.
HMJr:
Well, when could I get together with you gentlemen?
When would it be convenient?
G:
With the General?
HMJr:
Oh, and with you.
G:
Uh
HMJr:
Both of you -- when could I see both of you?
G:
Uh huh -- in your office?
HMJr:
Yes.
G:
Today?
HMJr:
Yes.
G:
Just a moment. May I ask you to hold the receiver
for a second?
Regraded Unclassified
33
- 3 -
HMJr:
If you -- surely.
G:
(Aside: Speaks in Russian to the General) Is it
convenient, Mr. Secretary, at 2:30 today?
HMJr:
2:30?
G:
Uh huh.
HMJr:
Entirely convenient.
G:
All right, then, at 2:30 we will be in your office.
HMJr:
You and the General?
G:
Yes.
HMJr:
Fine.
G:
If you need me.
HMJr:
I'd like you to come.
G:
All right.
HMJr:
I think it would be nice.
G:
All right, at 2:30.
HMJr:
Are you too busy?
G:
Not very much. Anyway, I find time to call on you
HMJr:
It will be very nice.
G:
today at any time.
HMJr:
I'd like to see both of you.
G:
At 2:30.
HMJr:
If you please.
G:
All right, thank you.
HMJr:
Thank you.
Regraded Unclassified
34
September 21, 1943
11:53 a.m.
HMJr:
Hello.
Ted
Gamble:
Yes, sir.
HMJr:
Where are you, Ted?
G:
Over in the Washington Building.
HMJr:
I see. What have you found out today?
G:
Well, I talked to Missouri
HMJr:
Yeah.
G:
and to Pennsylvania
HMJr:
Yeah.
G:
and I talked to Harold Graves, Sr., because he
was always a statistician, and.
HMJr:
Harold Graves, Sr.7
G:
Yes, sir.
HMJr:
What do you mean?
G:
Well, Harold Graves.
HMJr:
Oh.
G:
H. N. Graves.
HMJr:
Yeah.
G:
And I just wanted to get his reaction because he
always followed that Federal Reserve reporting very
closely.
HMJr:
Yeah.
G:
And our State people feel that the September 30th
closing is the proper thing.
HMJr:
They do?
G:
Yes, sir.
Regraded Unclassified
- 2 -
35
HMJr:
Have you checked with enough?
G:
I haven't checked with enough. Burgess won't be
available until 2:30. He was in 8. meeting.
HMJr:
Yeah.
G:
and I want to talk to Isbey and I want to talk
to Collins
HMJr:
Yeah.
G:
and I was going to call you as soon as I had
completed that.
HMJr:
Will you do that?
G:
Yes, sir. Mr. Bell had talked to three banks.
HMJr:
Well, I've gone far enough into it unless somebody
is going to throw a stick of dynamite, I think that's
the thing to do.
G:
Well, I think it puts you in a much better position,
Mr. Secretary, and I think we have to consider that.
HMJr:
Us!
G:
Well, that's correct. You are us.
HMJr:
Now, mechanically, I am satisfied if that's the way
to do it.
G:
Yes.
HMJr:
And there is no trouble about identifying any sale
in September.
G:
That is correct.
HMJr:
And the banks that Bell has talked to, when he said,
"Now, Mr. Morgenthau wants to use your name."
G:
Yes.
HMJr:
Then they'd say, "Oh, well, we'll get this in three
or four days."
G:
(Laughs) Well, they don't do it, Mr. Secretary.
Regraded Unclassified
36
- 3 -
HMJr:
What?
G:
They don't do it. Tickton told me yesterday and I
believe Tickton
HMJr:
Yeah.
G:
that he saw a hell of a lot of Bonds going
through the Chicago Federal Reserve Bank that
had August dates on them.
HMJr:
Yeah. Well
G:
That's what we sent him out there for.
HMJr:
If we announce this thing and everything -- and
any date for September and we put all these Federal
Reserve Bank persons on the spot
G:
Yeah.
HMJr:
they'll get it through.
G:
Sure they will.
HMJr:
And now, the thing for you to do 1s -- is --
because I've got to move on this speech, you know.
G:
Yes, ein
HMJr:
is to satisfy yourself that the State Chairman
will be satisfied.
G:
That's correct. Well, I'll have that information
within the hour.
HMJr:
And the other thing 1e -- the other thing 18 -- I
got off to a bad start this morning, as you saw --
wait 8. minute -- (Pause) -- that, we ought to make
that a big bank to keep everything open.
G:
Oh, we have -- we're sitting here now -- there's --
all five of us are here.
HMJr:
Who's the five of you?
G:
I have Doob and Coyne and Engelsman
HMJr:
Yeah.
Regraded Unclassified
- 4 -
37
G:
and we're making some plans now
HMJr:
That's only four of you.
G:
Well, I have another man, Mager
HMJr:
Yeah.
G:
for tone. (Laughs) We have several really
outstanding ideas. One of them -- I'll tell you
about it. You -- we're trying to get the Army
Hour
HMJr:
Yes.
G:
to devote the Army and to bring Admiral King
on to the Army Hour with General Marshall
HMJr:
Yes.
G:
and really do a job for us.
HMJr:
Yeah. Now, the idea that the boys here liked the
best that I've given them 80 far 18, "Buy that
Christmas present now in stamps or War Bonds."
G:
Yes.
HMJr:
And Cook said that he thought that he could get the
papers who are putting on a campaign to buy the
Christmas presents before the first of October to
send overseas, I suggest that if they should --
pointed out how much tonnage that would take
G:
Yes.
HMJr:
that simply send a postal card that we bought
a stamp or a bond for the man overseas
G:
That's right.
HMJr:
and he's going to get in touch with the Post
Office and find out how much tonnage is involved.
G:
Well, you know they could send it V-Mail.
HMJr:
No, not the Christmas present. The notification you
can.
G:
Yes.
Regraded Unclassified
- 5 -
38
HMJr:
But instead of sending the boys a lot of junk - uh -
just notify them that you bought a bond for them.
G:
That's right.
HMJr:
And he said the newspapers have got this big campaign
and he thinks he could turn it around and instead of
buying a Christmas present before the first of October,
buy a bond before the first of October
G:
That's right.
HMJr:
....as a Christmas present. See?
G:
Yes, sir. I think we can, too.
HMJr:
What?
G:
I think we can, too. I think they'll do it.
HMJr:
But I think this idea, "Take your money and buy your
Christmas presents now in stamps and bonds"
....
G:
Yes. I think we ought to do this, Mr. Secretary.
This morning I said to you that I thought you ought
to announce this on the air
HMJr:
Yeah.
G:
about our closing.
HMJr:
Yeah.
G:
I do, but I don't think we ought to hold up -- I
think we ought to move right today on it. Now, we
don't have to make any announcements of it but I
think we ought to move with our own people.
HMJr:
Well, Just as soon as you're satisfied that we want
to close September 30th, will you get me on the
phone?
G:
Yes, sir.
HMJr:
The only time I'll not be available -- well, I'll be
available anytime after two o'clock.
G:
Fine. I'll have you on the phone, sir.
Regraded Unclassified
39
- 6 -
HMJr:
Any time after two.
G:
All right, sir.
HMJr:
All right.
G:
Bye.
Regraded Unclassified
September 21, 1943
3:01 p.m.
40
HMJr:
Palmer Hoyt.
Palmer
Hoyt:
Hello, Mr. Secretary.
HMJr:
How are you?
H:
Fine, thank you.
HMJr:
Well, I'm quite excited. I've got something I didn't
think I'd ever be able to get.
H:
Great.
HMJr:
I got a statement from Marshal Stalin on War Bonds
and thanking the United States Government for what
they've done.
H:
Terrific.
HMJr:
Something that nobody's been able to get.
H:
That's right.
HMJr:
And the General here -- Aviation General in charge
of their Purchasing Mission..
H:
Yes.
HMJr:
....1s ready to deliver it in person..
H:
All right.
HMJr:
.... to me.
H:
Yeah.
HMJr:
Now, it is terrific.
H:
Yeah, it is.
HMJr:
Now, what do you think would be the best locale to
do this?
H:
You mean to receive it?
HMJr:
Yeah.
Regraded Unclassified
- 2 -
41
H:
Uh huh. Well, I wonder - it looks to me like
something connected with that War Bond show. Have
we any of the types of planes we are sending down
there?
HMJr:
Well, we could find out. I'm sure there 18.
H:
Well, that would be my first "horse-back" opinion.
HMJr:
Uh huh.
H:
I'll give it some thought and call you back....
HMJr:
Yeah.
H:
....in a minute.
HMJr:
Will you? Now, here's my trouble. I've got to go --
be in New York all of Thursday because I'm giving all
of Thursday to New York.
H:
Yeah.
HMJr:
Do you think that Noon tomorrow would be too quick?
H:
No, God, no. I wouldn't hold it up, Mr. Secretary.
It will leak around one way or another and this 18 8.
smash.
HMJr:
My thought was to do it at noon tomorrow and get on
one of these noon hook-ups and get it piped in.
H:
Yeah. That's good. That's great.
HMJr:
Get it piped into the factories at noon.
H:
Yeah.
HMJr:
And we could go over there and stand alongside some
of the tanks.
H:
Yeah.
HMJr:
What?
H:
Yeah, that's marvelous, especially if they are the
kind that --they'll undoubtedly have some like they
are sending to Russia, see?
Regraded Unclassified
42
- 3 -
HMJr:
Surely.
H:
That will be great.
HMJr:
He goes overboard completely
H:
Yeah.
HMJr:
what we've done -- the people raising the food and
making the munitions
H:
Yeah.
HMJr:
and that the stuff we've sent them is 80 helpful
H:
Yeah.
HMJr:
and I told him what I wanted and if I had written
it myself, I couldn't have written it half as good.
H:
Marvelous.
HMJr:
Yeah.
H:
Well, that shows you what you can do when you cut a
little red tape.
HMJr:
That's right.
H:
Well, that's wonderful, Mr. Secretary. I'll tell you
what. Are you going to be in your office a little
bit?
HMJr:
You bet.
H:
Well, I'll call you in a few minutes. I'll -- if you
talk to anybody caution them not to leak it -- you
know, to keep them quiet because we want to smash that
big!
HMJr:
All right. Now, my thought 18 -- they gave me a free
translation and they say I can't get a written trans-
lation until about six or seven o'clock.
H:
Yeah.
HMJr:
They won't leak.
H:
No, they won't leak.
Regraded Unclassified
43
- 4 -
HMJr:
But my -- my thought is this -- can't we grab
a piece of that Farm and Home Hour if We have to?
H:
Well, I don't know why not. Let me get on that and
I'll call you within a half hour.
HMJr:
And....
H:
And what you think about noon tomorrow -- that will
be a swell hour. I think they'd give us that.
HMJr:
You do?
H:
Yeah. We can try it anyway. We'll go right after
them.
HMJr:
You think that's a good time?
H:
Why, I would think SO. Yeah.
HMJr:
Yeah.
H:
You'd have a pretty heavy guaranteed audience and
you'd get a tremendous plan in the press. I think
it would be as good as any.
HMJr:
All right. Bye.
H:
Good bye, Mr. Secretary.
HMJr:
Okay.
Regraded Unclassified
September 21, 1943
44-
3:25 p.m.
Palmer
Hoyt:
Palmer Hoyt.
HMJr:
Morgenthau.
H:
How are you? Say, that's wonderful. I'll tell you
we were doing this
HMJr:
Yeah.
H:
I've got the boys working and they think they can get
that Farm and Home Hour all right.
HMJr:
Well, you know I'm a little ambitious. I don't think
one station is enough.
H:
Well, I don't mean one station, I mean one network.
HMJr:
I don't think one network is enough.
H:
You don't, huh?
HMJr:
No, I think this is something that when I spoke to
Admiral Leahy about it, he said, "Well, if you don't
get it we haven't lost anything."
H:
Yeah.
HMJr:
It's the first statement of Marshal Stalin to the
American people.
H:
That's right.
HMJr:
And, why don't you offer it to some of the other
networks?
H:
Well, we'll do that. You're right. Well, here's --
I'll tell you there are several things about this --
I want to give you my thought on it.
HMJr:
Yeah.
H:
In the first place, this is one of the biggest pieces
of news
HMJr:
Yeah.
H:
on the civil side of the war since it broke, of
course.
Regraded Unclassified
45
- 2 -
HMJr:
That's right.
H:
Now, don't let those guys talk you into too much of
a surrounding War Bond talk it isn't necessary --
this is the greatest thing -- I mean this
....
HMJr:
H:
you know.
HMJr:
I thought you were fond of War Bonds.
H:
Oh, say listen, this is the greatest thing for War
Bonds that ever was but what I meant is -- don't --
don't put it in 80 deeply in a War Bond talk that
it will be classified -- I mean -- this thing with
the build-up that we can give 1t -- it ought to be
really colossal, it ought to get on the front page
of 1,700 daily papers in addition to these networks
we are talking about.
HMJr:
Well, are the afternoon papers good?
H:
Sure.
HMJr:
I don't know whether you have a morning or afternoon.
H:
I have a morning but that's all right. I -- -- this is --
in this case, I think that's all right.
HMJr:
Well, this would be released in the morning for the
afternoon editions, wouldn't it?
H:
Well, yeah. You'd have to do that.
HMJr:
Wouldn't it?
H:
Yeah. Now, there's the -- the only other -- there's
one other problem.
HMJr:
Yeah.
H:
That would be building up your radio audience, you
see?
HMJr:
Yeah.
H:
And the only way to do that would be to release it
tonight.
Regraded Unclassified
- 3 -
46
HMJr:
Well, then -- no, I wouldn't do that.
H:
It's getting pretty late.
HMJr:
Oh, I wouldn't do that. I can sim -- why not simply
tell them -- I mean we're -- they're translating it.
He gave it to me very rough and I couldn't get most
of it. He went back to translate it and I've got a
man sitting in his office waiting for it. But he
didn't think he would have it 'till six.
H:
Yeah.
HMJr:
But, I'm going to rush him. I told him I'd call him
back at five.
H:
Well, now the thing we'll have to help to work out 18
to get some -- 1s to get some advance stuff on it.
Now, of course, what will happen 18 this. Most of
your afternoon papers get out in the morning. What
time will you release that to them?
HMJr:
Well, we could release it tonight for the afternoon
papers tomorrow.
H:
Yeah, that would be all right. That would be the
thing to do -- you've got to build up your radio
audience, you see?
HMJr:
Well, why can't we release it tonight?
H:
You can do that. Release it for....
HMJr:
Or do you think we ought to release it at 9:00 o'clock
tomorrow morning?
H:
I think you'd better release it at 9:00 o'clock in the
morning. Otherwise, you're going to get it by a leak.
HMJr:
Release it at 9:00 o'clock tomorrow morning.
H:
That's right.
HMJr:
How's that?
H:
That's fine. Say, how did you go about getting that,
Mr. Secretary?
HMJr:
Ha! You want all my trade secrets.
Regraded Unclassified
47
- 4 -
H:
No. No. I mean, did you take
HMJr:
I did it through the Ambassador.
H:
Oh, you did, huh?
HMJr:
I did it through the Russian Ambassador and then
the State Department backed me up with a cable.
H:
Say, that's terrific.
HMJr:
And they backed me up with a cable....
H:
Yeah.
HMJr:
to Stanley to back me up but I did it directly
with the Ambassador.
H:
Well, that's marvelous.
HMJr:
You know where I got the idea from?
H:
Larry Bell?
HMJr:
Yeah.
H:
That's what I had a hunch.
HMJr:
Yeah.
H:
That's wonderful.
HMJr:
Now, do you think -- what do you think -- do We need
any dressing besides this Russian General and myself?
H:
No, I wouldn't. Listen, this is 80 big. As a general
thing, the bigger the item, the less grass you need
around it.
HMJr:
We don't need a full fifteen minutes unless you want
to put in some music.
H:
Well, I think the time that -- let's -- I'll talk to
the radio boys again and let's get -- figure out what
is the best idea. Oh, I wouldn't think you'd want
fifteen minutes.
HMJr:
Well, now what -- just let -- there's two -- I think
we ought to play the American National Anthem and the
Russian.
Regraded Unclassified
48
- 5 -
H:
That's right.
HMJr:
And then they've got this perfectly marvelous song
with -- the song of the Russian Cavalry.
H:
Yeah.
HMJr:
A modern one.
H:
Yeah.
HMJr:
I don't know whether you've heard 1t.
H:
No. Oh, I probably have. I don'
HMJr:
Well, it's a wonderful thing. It's got great
rythm. It's the Russian Army Cavalry song.
H:
Yeah.
HMJr:
And we could put on -- -- let's get this Marine Band
down here at the Navy Yard.
H:
Yeah.
HMJr:
They can learn the thing in time.
H:
Sure. Well, I'll tell you, we'll get to work on
that and who -- Bill Spire handles this end
HMJr:
Fred Smith.
H:
Who? Fred Smith?
HMJr:
Yeah.
H:
I'll get them together. Here's my...
HMJr:
Fred -- you know Fred.
H:
Oh, sure. My hunch on this thing is -- what I really
meant when I started talking about the order of War
Bonds -- your -- which I know you'll do, because it's
your natural manner -- your -- whatever you say ought
to be simple and dignified like the Gettysburg Address.
See?
HMJr:
Gettysburg? You mean Monticello?
Regraded Unclassified
- 6 -
49
H:
No -- No, I'm going back from you to Mr. Lincoln.
HMJr:
oh - Oh.
H:
Well, you know what I mean. It ought to be simple
HMJr:
I agree with you.
H:
You see?
HMJr:
I agree with you. I - - I - - I was kidding you. I
agree with you. I think that I should -- I'll need
a little help. I'll be glad to get some help and say
something about the Russian friendship
H:
Yeah.
HMJr:
....eto., etc., and 80 on....
H:
Yeah.
HMJr:
and make it very simple and let -- after whatever
I say will be unimportant by comparison.
H:
Yeah, because this is the greatest scoop of the year.
HMJr:
Well, I handled it personally and it wasn't -- nobody
in the State Department -- anybody thought I'd get it.
H:
I guess I'll have to get you on my newspaper 80 we
can get some scoops.
HMJr:
I need a nice job.
H:
That's right. (Laughs) Okay, well, I'll get right on
this and we'll follow right through and we'll offer it
to all the networks and
HMJr:
Will you offer it to all the and I think twelve
o'clock, after all
H:
Well, you've got to set a time, Mr. Secretary, and
I think that 16 just as good as any.
HMJr:
Yeah. And then our boys, Max Cook and that gang
could help, you know.
H:
Yeah. Yeah, that's right.
Regraded Unclassified
- 7 -
50
HMJr:
What?
H:
That's fine. And I'll....
HMJr:
There's a....
H:
....have Bill Spire get in touch with Fred Smith
right away.
HMJr:
Bill Spire?
H:
Yeah.
HMJr:
How do you spell that?
H:
(Aside: How do you spell Spire?) 3-p-i-r-e.
HMJr:
Right. And you see we -- this high-powered gang
under Max Cook can do a lot.
H:
Yeah, that's right.
HMJr:
Well, all right, and you'll offer it to all the
networks?
H:
Yes, sir.
HMJr:
And you'll handle General Surles and all that?
H:
Well, We won't need to do that.
HMJr:
Aren't you going over there?
H:
Oh, you mean to -- if
HMJr:
For the location.
H:
Oh, yeah. Sure. But what do you mean handle him?
HMJr:
Well, I mean we've got to have a place to talk from.
We ought to talk from -- from tanks or something.
H:
Yeah. Well, I'll get that all set.
HMJr:
And certainly you want to offer it to the movies.
H:
Yeah. Yeah. We'll do that. We'll get hold of every-
body. I'll get -- we'll get hold of Fitzgerald --
Surles is out of town.
Regraded Unclassified
51
- 8 -
HMJr:
Well, you want to offer it to the movies.
H:
Yeah. We'll get them.
HMJr:
All right.
H:
We'll get them all. I'll put Spire immediately
in touch with Fred Smith and we'll get our movie
gang working on it, too.
HMJr:
Thank you.
H:
You bet. Twelve o'clock.
HMJr:
Twelve o'clock.
H:
Right.
HMJr:
Okay.
Regraded Unclassified
52
September 21, 1943
3:36 p.m.
HMJr:
Did you hear about the news?
Ted
Gamble:
No.
HMJr:
About Marshal Stalin?
G:
No.
HMJr:
Well, Fred Smith....
G:
Oh, yes, I did hear about the message.
HMJr:
Well, my God, man. Listen, your friend Hoyt says
it's the biggest news story of the year.
G:
Well, we're doing some work on it already.
HMJr:
And he has offered me a job on his paper as a
result of it.
G:
(Laughs) As a matter of fact, I think you ought to
take over O.W.I.
HMJr:
You can have it.
G:
(Laughs)
HMJr:
Now, he just called back and he asked me who would
handle it at my end and I said Fred Smith.
G:
That's correct.
HMJr:
And he put a man by the name of Spire on it.
G:
Yes.
HMJr:
And I told him to offer it to all the networks,
which he 18 going to do.
G:
Right.
HMJr:
And they're not going to release it until 9:00
o'clock tomorrow morning.
G:
Good.
HMJr:
It's a marvelous statement.
Regraded Unclassified
- 2 -
53
G:
I think it's wonderful.
HMJr:
A wonderful statement. He really says, "Thank you.
G:
Well, that's swell.
HMJr:
So
G:
We're arranging the newsreels and the display....
HMJr:
You are?
G:
for the setting. Yes, sir.
HMJr:
Well, anyway, between you and Hoyt, Spire and Fred
Smith, I needn't worry about
G:
You ought to get a good job.
HMJr:
I ought to.
G:
(Laughs)
HMJr:
Listen, fellow, you were going to let me know at
2:00 oclock
G:
I talked called you on the phone a minute ago
and you were on the phone.
HMJr:
Oh.
G:
I have finished talking to all of our people and I
think we ought to have a meeting on it.
HMJr:
How soon?
G:
Any minute that you are ready.
HMJr:
Well, by the time you come over here, I'll be sitting
here waiting for you.
G:
Fine. And I think we ought to have Mr. Bell there.
HMJr:
Bell is here now.
G:
Fine.
HMJr:
He's waiting and says he can't wait much longer.
Regraded Unclassified
- 3 -
54
G:
I'm on the way.
HMJr:
All right.
Regraded Unclassified
September 21, 1943
55
3:45 p.m.
James
Dunn:
Hello, Mr. Secretary, this is Dunn speaking.
HMJr:
How are you?
D:
Very well.
HMJr:
Well, the impossible has happened. Marshal Stalin
has come through with a wonderful statement.
D:
Well, isn't that fine? That's certainly grand.
HMJr:
oh, I'm -- the Ambassador was here and he didn't
have a translation. They are going back to translate
it -- but it's everything that I asked for.
D:
Well, ien't that marvelous?
HMJr:
Now, they are going to let us have it between 5:00
and 6:00
D:
Yes.
HMJr:
and O.W.I. is handling the whole publicity which
we expect to do at noon tomorrow over the radio.
D:
Yes. Yes.
HMJr:
And -- but what we need is somebody who knows the
Russian situation -- what the President has said
and the whole business, 80 that -- who could have
that at his finger tips to help me tonight.
D:
Yes.
HMJr:
write a statement, you see?
D:
Yes, sir.
HMJr:
And -- I mean, work with my man who is working on
it -- I mean, how to -- 80 that, you know, to put
the right emphasis on
D:
Yes.
HMJr:
Now, could -- is there somebody that you could
designate who could be available for that? I'm
afraid we won't get this until 6:00.
Regraded Unclassified
56
a I I
D:
Until 6:00?
HMJr:
Yes.
D:
Good. Well, now, do you want him to come over there
and stand by?
HMJr:
No. If I would -- if you wouldn't mind doing this --
Fred Smith who is --one of my Assistants who 1s
handling this whole thing
D:
Yes, sir.
HMJr:
if you would call him and tell him who the person
is
D:
Yes. Yes.
HMJr:
and that this person would have at his finger
tips the whole thing and
D:
I'll tell you what I'll do. I'll get my man to call
up Fred Smith
HMJr:
That's right.
D:
and put himself at his disposal and they can
meet wherever he says and at any time that he says.
HMJr:
That's right. And somebody
D:
I'll send him to him for as long as he wants him.
HMJr:
who knows -- who 18 willing to work tonight.
D:
Oh, yes. Yes.
HMJr:
And, then
D:
Well, I have two men here. It's just a question of
which one I can -- of which one will go over.
HMJr:
And he will know, for instance, what Roosevelt has
said publicly in case we want to quote?
D:
Yes. Yes.
HMJr:
I mean, he'll know the whole
Regraded Unclassified
57
M I I
D:
I'd better get -- I'll get him to get in communication
with Fred Smith right away.
HMJr:
Right.
D:
And then he'll give him a line on what he ought to
look up and have with him or know where to look for
it.
HMJr:
That's right.
D:
Fine.
HMJr:
Thank you, sir. I'm quite ex....
D:
Oh, that's marvelous. Yes.
HMJr:
Palmer Hoyt says it's the best news break this year.
D:
It 1s. Yes. Oh, I think it will be grand. Are you
going to get -- are you going to get a moving picture
out of it, too?
HMJr:
Moving pictures.
D:
Is Gromyko going to present it to you?
HMJr:
No. The Russian General of the Purchasing Mission.
D:
Oh, yes. Yes.
HMJr:
Whatever his name 1a.
D:
He's going to do that this evening, is he?
HMJr:
No. They're going to do it on the air at noon
tomorrow.
D:
Oh. And on the air at noon tomorrow and you'll have
pictures of it, too.
HMJr:
Pictures -- the whole thing will be at 12:00 o'clock.
D:
Fine.
HMJr:
But O.W.I. says they are not going to tell anybody
about it until 9:00 tomorrow morning.
D:
Well, that's understood. Yeah.
Regraded Unclassified
58
- 4 -
HMJr:
They want to keep it a secret until 9:00 because
they're afraid that it will leak out.
D:
Well, congratulations. It certainly 18 going to
be a great help, too.
HMJr:
Well....
D:
Yes.
HMJr:
It's -- I hope 80. I'm quite excited.
D:
Oh, yes. Yes. Yes. Oh, that's grand. Fits right
in the whole picture now.
HMJr:
You tell Mr. Hull.
D:
I shall right away.
HMJr:
Thank you.
D:
Thanks. All right, Mr. Secretary. Good bye.
HMJr:
Bye.
Regraded Unclassified
59.
September 21, 1943.
4:45 p.m.
HMJr:
Hello.
Operator:
Ambassador Gromyko.
HMJr:
Hello.
Operator:
Here he is.
Andrei
Gromyko:
Hello.
HMJr:
Mr. Ambassador. Hello. Morgenthau speaking.
G:
Yes, Mr. Secretary.
HMJr:
Now, I'd like to make this suggestion.
G:
Uh huh.
HMJr:
In the first place, all of our people are very
much excited about this thing and very much
pleased.
G:
Uh huh.
HMJr:
And arrangements have been made that we do this
broadcast at 12:00 o'clock.
G:
Uh huh.
HMJr:
Now, if this 18 agreeable to you, I would like you
to take part in the broadcast.
G:
I, myself?
HMJr:
Hello?
G:
I, myself?
HMJr:
You, yourself. And you would introduce General
Belyaev. Ie that the way you pronounce it?
G:
Belyaev.
HMJr:
Belyaev, to me, you see?
G:
Uh huh.
Regraded Unclassified
- 2 -
60
HMJr:
And then I would thank you
G:
Uh huh.
HMJr:
for getting this message through.
G:
Uh huh.
HMJr:
Now what we are proposing to do 18 to write out
the whole business -- that's what we do on these
broadcasts -- have everything written out in advance.
G:
Uh huh.
HMJr:
And the State Department is lending me a man to help
me
G:
Uh huh.
HMJr:
and if it is agreeable, I can get it up to you
sometime tonight to look at it, you see?
G:
Uh huh.
HMJr:
I take it you are up fairly late, are you?
G:
Uh
HMJr:
How late could we get there to you?
G:
At the Embassy?
HMJr:
Yes.
G:
Of course, I usually am available until 12;00 o'clock.
HMJr:
Right. Well, would it be -- I don't know whether I
could come myself but Mr. George Albee could come.
G:
To the Embassy?
HMJr:
Yes.
G:
But I may, if you have time, I may come to the
Department.
HMJr:
No. No. It would be -- well, what I would like
to do is this -- when it 18 ready, I'd like to
sit down with you and with General Belyaev...
Regraded Unclassified
61
- 3 -
G:
Uh huh.
HMJr:
when the thing 18 all written. Now, it may
be quite late, you see?
G:
Mr. Secretary, do you think that it is necessary
to -- to be present for me at the shooting of the
picture?
HMJr:
Well, it's not necessary but you were 80 helpful
and I would like to have you there. But if there
is some reason -- I mean, you and I are always very
frank with each other -- if there's some reason that
you know which I don't -- which -- where you'd rather
not be
G:
I don't have any particular reason but I think that
Mr. --, General Belyaev -- it would be enough to have
just General Belyaev. Well, my role will be just to
introduce General Belyaev to you?
HMJr:
Yes.
G:
If the American public knew me a little more already
it would be all right.
HMJr:
But they do know you. They know that you're the
Ambassador
G:
Yes. But not from the screen. (Laughs)
HMJr:
Now, I'm being very honest -- the way I always try to
be with you. And this is something which I think would
be nice both from the standpoint of the American public
and for you, but if there 18 some reason that I don't
know -- you see? I wish you would tell me.
G:
of course, I don't have any particular reason but
anyway, I would like to call you if you are in your
office -- shortly.
HMJr:
Yes. Now, should I call up General Belyaev and --
because I said I'd let him know by 5:00 o'clock --
or will you?
G:
You may call me or General Belyaev. I just talked
with him. He is in his office. He said the text
is ready
Regraded Unclassified
- 4 -
62
HMJr:
Yes.
G:
....already....
HMJr:
Yes.
G:
and he has given it to a representative of the
Department.
HMJr:
He has already done that?
G:
Yes.
HMJr:
Well, then I will call him and tell him that it is
set for 12:00 o'clock tomorrow.
G:
At 12:00 o'clock tomorrow? Or if you wish, I may
convey your information to him.
HMJr:
Well, if you would do that.
G:
Yes, I will.
HMJr:
But what we will have to do, we will have to have
a little rehearsal. You see?
G:
In the Department?
HMJr:
Yes. Say, we ought to meet here about 11:00 o'clock.
G:
Tomorrow?
HMJr:
Yes, and go over it a couple of times together. You
see?
G:
In your office?
HMJr:
In my office.
G:
Well, then I may tell General Belyaev to come to your
office tomorrow by 11:00 o'clock?
HMJr:
That's right.
G:
All right. I will do this. I will inform him.
HMJr:
Now, one other thing. The question of your being
in it, you're going to call me back. Is that right?
63
- 5 -
G:
Yes, certainly.
HMJr:
And then the other thing 1s that we will have this
written, we hope, by 9:00 or 10:00 o'clock tonight.
G:
Uh huh.
HMJr:
And then I would like to show it to you and General
Belyaev....
G:
Uh huh.
HMJr:
....and get your approval.
G:
Uh huh. I see.
HMJr:
You see?
G:
Where?
HMJr:
Where?
G:
Where?
HMJr:
Well, would my house be all right?
G:
Well, I -- just I and General Belyaev come?
HMJr:
Yes, or we'll come to you, either way.
G:
Uh huh. Uh huh.
HMJr:
At my house
G:
Yes.
HMJr:
or the Treasury, either way.
G:
Uh huh. All right, Mr. Secretary, when I call you
shortly -- will you be in your office within an
hour?
HMJr:
Yes.
G:
I will call you and probably you will give the time?
HMJr:
Yes. And then -- you mean, what time for tonight?
G:
Yes.
Regraded Unclassified
- 6 -
64
HMJr:
Yes, I'll give you the time.
G:
All right, thank you.
HMJr:
And We can meet, as I say, it will be a little more
convenient at my home. You know where I live.
G:
Uh huh. I was in your house. I forgot exactly where
it is but I shall be able to find it.
HMJr:
Well....
G:
Of course.
HMJr:
I'll tell you, when you go up Massachusetts
Avenue Hello?
G:
Yes.
HMJr:
It's -- you know the bridge that you come to just
before you come to the British Embassy?
G:
Yes, I know.
HMJr:
We're on Belmont Road.
G:
Uh huh.
HMJp:
2434.
G:
2434.
HMJr:
Belmont, and it's -- you turn off to the right
going up Massachusetts Avenue. See?
G:
My chauffeur knows.
HMJr:
It's the eighth house.
G:
Eighth house.
HMJr:
Eighth house.
G:
Uh huh.
HMJr:
And I would say tentatively say 10:00 o'clock
maybe.
G:
That is
Regraded Unclassified
65
- 7 -
HMJr:
Is that too early?
G:
Any time that is convenient for you. It doesn't
make any difference for me.
HMJr:
But when you call me back I would know.
G:
All right. Thank you. I will call you....
HMJr:
Thank you.
G:
.... shortly.
HMJr:
Thank you.
Regraded Unclassified
66
September 21, 1943
4:56 p.m.
James
Dunn:
Yes, Mr. Secretary.
HMJr:
Your man, whoever he is, didn't contact Smith.
D:
No. I've had the Polish Ambassador in here ever
since you spoke to me.
HMJr:
D:
So, I haven't been able to get out. He has just
left me this minute and I'll get him right on the
wire.
HMJr:
Well, could you have him come to my office, whoever
it 18?
D:
Yes. Right now?
HMJr:
Right now.
D:
Be glad to.
HMJr:
And let me know who it 1s?
D:
His name is Rhinehart.
HMJr:
Rhinehart?
D:
Frederick Rhinehart. Yes.
HMJr:
Could you just tell me a little bit -- who he 18?
D:
Well, he's a foreign service officer, spent -- has
served in Moscow, knows the -- knows Russian and
knows the whole Russian situation
HMJr:
Yeah.
D:
....18 very well balanced, very intelligent and
thoroughly well informed on the whole situation.
He's in our Russian Section here.
HMJr:
Good.
D:
He's very dependable, a very good man.
HMJr:
Sympathetic?
Regraded Unclassified
67
- 2 -
D:
Oh, yes. Yes. Oh, yes, entirely. He's -- oh, he's
very good.
HMJr:
And knows what Mr. Hull has been doing?
D:
Yes. Yes.
HMJr:
And all these conferences?
D:
Yes, and the President's attitude and all the
Protocol business and all of our relations with
them there.
HMJr:
Frederick Rhinehart?
D:
Frederick Rhinehart.
HMJr:
Right. And if you would tell him -- if he'd come
right away to my office.
D:
I'll get him over there right post-haste.
HMJr:
I thank you.
D:
Yes, sir. Very good.
HMJr:
Bye.
D:
Bye.
Regraded Unclassified
68
September 21, 1943.
5:26 p.m.
Operator:
There you are, sir. Go ahead.
HMJr:
Hello.
Andrei
Gromyko:
Mr. Secretary.
HMJr:
Yes.
G:
Gromyko is calling.
HMJr:
Yes.
G:
Mr. Secretary, General Belyaev will be tomorrow
at 11:00 o'clock in your office
HMJr:
Yes.
G:
but he asked me that since he is very busy
today -- he has to prepare -- he must prepare
his materials for -- which he 18 going to take
to Moscow
HMJr:
Yes.
G:
for his report
HMJr:
Yes.
G:
....he asked you to -- not to
HMJr:
Excuse him?
G:
to go to your house today.
HMJr:
To excuse him?
G:
To excuse him.
HMJr:
Yeah.
G:
That's right.
HMJr:
Yes.
G:
And if -- of course, if you need me to come, I
would come.
Regraded Unclassified
69
- 2 -
HMJr:
Yes.
G:
It is just this -- if you are going just to
show the text of the statement, maybe it would
be convenient for you if I sent some one of my
messengers to take this text, but if you have
something to say, I would be glad to come at
10:00 o'clock.
HMJr:
Well, now, let me -- may I explain -- have you
decided that you will take part in the broad-
cast yourself?
G:
Yes. Yes, now I am going to speak on this
question.
HMJr:
Yes.
G:
I found out that you knew General Belyaev
very well before.
HMJr:
That's right.
G:
And you have lunched with him and he 18 not
a stranger to you.
HMJr:
That's right.
G:
And if you knew him before and known now
very well
HMJr:
Yes.
G:
I don't think that it is necessary for me to
take part in this.
HMJr:
Well
G:
I am sorry to have a little bit of a difference
of opinion from your one.
HMJr:
Well, you know best. I'm sorry but I'll abide
by your decision.
G:
I am sorry but I made this decision after I
found out that General Balyaev is not a stranger,
that you may say to your -- say for the American
public that he is -- well, he is Chairman of the
Purchasing Commission, whom the officials --
American officials know. And if I shall be useful
for any purpose in the future, I would be glad to
help you, Mr. Secretary, as well as I tried to help
you on this particular
Regraded Unclassified
70
- 3 -
HMJr:
Well
G:
matter, too.
HMJr:
You helped me -- your help was wonderful and that's
why -- that's why I want to -- that's why I wanted
to be sure that -- if you would go on I would
appreciate it, but you know best. You see? Now,
may I ask you this question, please?
G:
Uh huh. All right.
HMJr:
We are writing this -- what we call a radio script.
It will be like a little play, you see?
G:
Uh huh.
HMJr:
It will all be prepared.
G:
Uh huh.
HMJr:
Now, I -- I, of course, want this to be satisfactory
to your government.
G:
Uh huh.
HMJr:
Now, to whom will I show this? To you or to
General Balyaev? Uh -- when it's written.
G:
Well, you may show it to me or to General Belyaev,
any way, I don't think it is a principle question.
I think we....
HMJr:
Well, supposing we....
G:
agreed on principle.
HMJr:
Well, supposing - would this be agreeable? Could
the gentleman come to you then tonight?
G:
It would be perfectly all right.
HMJr:
Supposing, Mr. Albee and -- just a minute. (Aside:
Now, what's the man from the State Department?)
Oh, just one minute, please. Just one minute --
just one minute, I'm trying to
G:
That's all right. All right.
Regraded Unclassified
- 4 -
71
HMJr:
Hello. It would be Mr. Rhinehart.
G:
Mr. Rhinehart?
HMJr:
Do you know him?
G:
From the State Department?
HMJr:
Yeah.
G:
I know him very well.
HMJr:
I hope he's friendly. Is he?
G:
I like him.
HMJr:
You do like him?
G:
Very well.
HMJr:
Well, then supposing Mr. Rhinehart and Mr.
Albee
G:
From the Treasury?
HMJr:
From the Treasury -- will come to the Embassy
at 10:00 o'clock tonight.
G:
It would be perfectly all right. I would be
glad to read this -- this play.
HMJr:
And then do We also -- should we also send it
to General Belyaev?
G:
It is not -- it 18 not necessary. You may send it, but
if it will cause any inconvenience to you, it is
not necessary.
HMJr:
Well, what we could do is this -- we'll have it
to you and then maybe you could send it to him
so if he
G:
Yes, I will do this.
HMJr:
if he wants to practice it before 11:00.
G:
Of course. Of course, before coming to your
office.
Regraded Unclassified
- 5 -
72
HMJr:
Yes.
G:
I will do this.
HMJr:
Well, Mr. Rhinehart and Mr. Albee will be at
your Embassy at 10:00 o'clock.
G:
At 10:00 o'clock. I will be glad to see them.
HMJr:
And you can go over it with them and make any
changes you want to.
G:
That's right. If I have any changes I will tell
them.
HMJr:
And you will get the script and then you will
forward it to General Belyaev?
G:
Yes, I will do this.
HMJr:
How do you pronounce his name?
G:
Bel-ay-uv.
HMJr:
Bel-ay-uv.
G:
Belyaev. The stress should be above the
syllable "la".
HMJr:
Yeah.
G:
Belayev.
HMJr:
Belayev, yeah.
G:
That's right.
HMJr:
Well, they'll be at your Embassy at 10:00
tonight.
G:
All right.
HMJr:
And, then -- I'm sorry you won't but I understand
and General Belyaev will be at my office at 11:00
tomorrow.
G:
At 11:00 tomorrow.
HMJr:
Right.
Regraded Unclassified
73
- 6 -
G:
Mr. Secretary, if I can give you any -- if I can
be any help to you -- if possible to give you
any help, you ask me without hesitation.
HMJr:
Well
G:
I will do my best.
HMJr:
Right.
G:
And this question -- I told you before -- that I
share your opinion -- this question.
HMJr:
All right.
G:
All right.
HMJr:
Thank you.
G:
Good bye.
74
September 21, 1943.
5:47 p.m.
HMJr:
Hello. Hello.
Operator:
Go ahead.
HMJr:
Hello.
E.F.
Sergeev:
Hello.
HMJr:
This is Mr. Morgenthau speeking.
S:
Yes, Mr. Morgenthau.
HMJr:
I just wanted to be sure that the General would
be at my office tomorrow morning at 11:00.
S:
Yes, tomorrow morning at 11:00 o'clock. That's
what General Belyaev is expecting to do.
HMJr:
Is that all right? And then we will rehearse
together
S:
Uh huh.
HMJr:
....
the program.
S:
Yes.
HMJr:
and I'm looking forward to going -- making
a broadcast with him at 12:00 o clock.
S:
Thank you. Then General Belyaev will be at
your place tomorrow at 11:00 o'clock.
HMJr:
Is that all right?
S:
Yes, perfectly all right.
HMJr:
And thank you 80 much.
S:
You're welcome.
HMJr:
Good bye.
S:
Good bye.
Regraded Unclassified
75
September 21, 1943.
5:56 p.m.
HMJr:
Hello.
Palmer
Hoyt:
Hello, Boss. How are you going now?
HMJr:
All right.
H:
That's good. Why, I didn't want to bother you.
I had one little problem -- I can get hold of
Ted later. Jimmy Byrnes has been pestering our
office. He want -- he's going to close the show,
you know
HMJr:
Yeah.
H:
on Sunday night
HMJr:
Yeah.
H:
Sunday night, and he wanted something signifi-
cant to say. He particularly wanted apparently
to get some arrangement that he could get the --
some figures, you know
HMJr:
Yeah.
H:
before they got in the papers.
HMJr:
Yeah.
H:
And you shouldn't be bothered with it.
HMJr:
No.
H:
I'll get hold of Ted but it's -- I told him we'd
give him an answer before 6:00
HMJr:
Yeah.
H:
but that's all right. I'll get him tonight.
HMJr:
Right.
H:
Ted can handle that. Say, everything -- I've got
everybody in the place turned loose on that thing.
I think it will be all right.
Regraded Unclassified
76
- 2 -
HMJr:
Wonderful. And I was very lucky on the State
Department man that they gave me. He is very
enthusiastic about it
H:
Oh, swell.
HMJr:
....and he has seen the statement and he said
he's got to see the original
H:
Yeah.
HMJr:
and that he thinks he can change a few
things around which would strengthen it.
H:
Fine.
HMJr:
And they're going to run....
H:
What is the reading time of it?
HMJr:
Well, the statement itself is maybe two or three
minutes.
H:
Oh, fine. Well, that's great.
HMJr:
And they're going to the Embassy -- the Russian
Embassy tonight at 10:00 o'clock and clear it
with Gromyko tonight. I mean, the script, you
see?
H:
Yeah.
HMJr:
And our end is all right and the thing which I
didn't get at first, in the thing -- the statement --
he talke about the War Bonds in Russia
H:
Oh yeah.
HMJr:
and how helpful that 1s.
H:
Fine.
HMJr:
But it's a powerful statement and certainly by
11:00 o'clock tonight, 80 far as the radio script
is concerned, it ought to be cleared.
H:
Oh, great.
HMJr:
And....
Regraded Unclassified
77
- 3 -
H:
Well, we'll keep our boys right on the job
tonight and tomorrow morning.
HMJr:
Yeah. And the Ambassador decided, after thinking
it over -- the Russian Ambassador -- he would not
do it so it's just going to be the General
Balyaevkoff or whatever it 1a.
H:
I think that's better because, look, nobody knows
this Ambassador anyway.
HMJr:
Well....
H:
The General will have a uniform on won't he?
HMJr:
Oh, yes.
H:
Oh, marvelous.
HMJr:
Well, I pleaded with him -- the Ambassador -- to
go on....
H:
Yeah.
HMJr:
80 I've done my part.
H:
Oh, sure. Well, it's just 8.8 well, looking at it
from a....
HMJr:
Yeah.
H:
....
public standpoint
HMJr:
Yeah. Well, you do the other thing with -- uh --
with your friend Ted.
H:
Yep. You bet.
HMJr:
I thank you.
H:
All right, Mr. Secretary. Thanks a million.
HMJr:
Good night.
H:
Good bye.
Regraded Unclassified
77
- 3 -
H:
Well, we'll keep our boys right on the job
tonight and tomorrow morning.
HMJr:
Yeah. And the Ambassador decided, after thinking
it over -- the Russian Ambassador -- he would not
do it 80 it's just going to be the General
Balyaevkoff or whatever it 1s.
H:
I think that's better because, look, nobody knows
this Ambassador anyway.
HMJr:
Well
H:
The General will have a uniform on won't he?
HMJr:
Oh, yes.
H:
Oh, marvelous.
HMJr:
Well, I pleaded with him -- the Ambassador -- to
go on....
H:
Yeah.
HMJr:
....80 I've done my part.
H:
Oh, sure. Well, it's just as well, looking at it
from a....
HMJr:
Yeah.
H:
public standpoint.
HMJr:
Yeah. Well, you do the other thing with -- uh --
with your friend Ted.
H:
Yep. You bet.
HMJr:
I thank you.
H:
All right, Mr. Secretary. Thanks a million.
HMJr:
Good night.
H:
Good bye.
Regraded Unclassified
78L
Message from 9/21/23 Stalm
A. I. BELYAEV
Major General, U.S.S.R. Army Air Forces,
Chairman, The Government Purchasing Commission
of the U.S.S.R. in U.S.A.
Regraded Unclassified
79
I have been honored with the privilege to make the following
statement at the request of Marshal Stalin, Commander-in-Chier
of the Union of Soviet Socialist Republies:
"For 26 months the Soviet Union has been engaged in a difficult
war of liberation against our common enemy Hitlerite Germany, and
her satellites Finland, Romania, and Hungary. In this gigantic war
more than five hundred divisions are involved on both sides.
Today the Soviet Army, the Red Army, is advancing from Smolensk
to the shores of the Black Sea, pursuing and driving the hated enemy
from Soviet soil. In this struggle the Red Army is successfully
employing also planes, tanks, guns and other munitions and equip-
ment which are received from the allied United States and Great
Britain.
To bring the hour of victory nearer, the entire Soviet
population is working unceasingly for the front.
Our American friends who are participating in the manufacture
of the ammunition and supplies of provisions are rendering great
support in the fight against our common enemy.
Every Soviet citizen is not only assisting his Army and his
Government to defeat the enemy, but is giving great financial
support to the Soviet Government by buying War Bonds.
It is desirable that the American people, by successful
participation in the War Loan in the United States, promote the
growth of the military might of the United States and help the
joint efforts of the Allies to achieve victory over the bitter
enemy within the shortest possible period of time.
CP.
Regraded Unclassified
80
THE SECRETARY
THIRD WAR LOAN
Beginning September 9, 1943
(In millions of dollars)
Cumulative
:
:
Through
:
Through
Through
:
:
:
:
:
:
Through
Through
Through
Sept.15
:
Sept.16
:
Sept.17
:
:
:
:
:
Sept.18
Sept.20
Sept.21
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
7/8% Certificates
:
1,117
:
1,924
:
2,600
:
2,755
:
2,850
:
2,915
:
:
:
:
:
:
:
:
2% Treasury bonds
:
1,472
:
2,272
:
2,857
:
3,049
:
3,178
:
3,230
:
:
:
:
:
:
:
:
2-1/2% Treasury bonds
:
1,237
=
2,071
:
2,445
:
2,571
:
2,637
:
2,662
:
:
:
:
:
:
:
:
Tax notes
:
361
:
504
:
671
=
846
:
990
:
1,114
:
:
:
:
:
:
:
:
Total
:
:
:
:
6,771
:
:
:
4,187
8,573
9,221
9,655
9,921
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
Partty
:
=
:
:
:
:
:
Savings bonds:
:
:
:
:
:
:
Series E
:
310
:
333
:
365
:
403
:
455
:
556
due to
:
:
:
:
:
:
:
:
Series F
:
10
:
13
:
17
:
22
27
:
:
43
:
change in
:
:
:
:
:
:
:
Series G
:
40
:
50
61
:
:
76
91
:
:
133
:
:
:
:
:
:
:
:
reporting DWB
:
:
:
:
:
:
:
Total Savings Bonds
360
396
501
573
:
443
:
:
732
:
:
:
:
2% bonds
:
150
:
150
:
150
:
150
:
150
:
150
:
Government funds
2-1/2% bonds
:
362
:
362
:
366
:
367
:
367
:
367
:
Total Gov't. funds
:
512 :
512
:
516
:
517
:
517
:
517
:
:
:
:
:
:
:
:
:
:
GRAND TOTAL
7,679
:
5,059
9,532
:
10,239
:
10,745
:
11,170
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
Regraded Unclassified
81
September 21, 1943.
My dear Mr. Buffett:
I appreciate greatly your interest in the
Third War Loan as expressed in your letter of
September 17 and your recognition of its vital
importance to the effective prosecution of the
war.
It is because of its importance that we have
emphasized all along the direct connection between
the financing and the fortunes of our men on the
fighting fronts. I am sure the President had this
in mind in making his appeal for subscriptions to
the Third War Loan as Commander-in-Chief of the
armed forces of the Nation. It had not occurred
to me, and I feel sure not to him, that there
would be any such misconstruction of the title as
you think possible.
General Marshall, Admiral King and others of
high Army and Navy rank have voiced their pleas
for support of the War loans, but of course none
of them can speak for the armed forces with author-
ity equal to that of the Commander-in-Chief himself.
Sincerely,
(Signed) H. Morgenthau, Jr
Secretary of the Treasury.
The Honorable Howard Buffett
House of Representatives.
Regraded Unclassified
RECRETARIES:
LAWRENCE MITCHELL
DOROTHY KENNEDY
Congress of the United States
House of Representatives
я w
September 17, 1943
Honorable Henry Morgenthau, Jr.
Secretary of the Treasury
My dear Mr. Secretary:
Next to victory on the battle fronts, the most significant
task confronting America is probably that of winning the fight
against inflation by successful financing practices. Victory in the
sale of the Third War Loan is an absolute "must" on the home front.
The achievement of this aim is the common purpose of all Americans.
Consequently, it was quite disturbing to me to discover in
a street car a few days ago this advertisement for the Third War
Loan:
AS COMMANDER IN CHIEF, I HEREBY INVOKE EVERY
CITIZEN TO GIVE ALL POSSIBLE AID AND SUPPORT TO THE THIRD
WAR LOAN DRIVE
FRANKLIN D. ROOSEVELT
You and I know that the President is not the commander-
in-chief of the citizens of the United States. Any advertising that
gives that impression is misleading. Among the loyal opposition it
my quite naturally be interpreted as an attempt by the Administration
to use this vital part of the war effort for political purposes.
an sure the Treasury Department would not wilfully lay itself open
to such a serious charge.
Accordingly, I would appreciate being assured that a
Lailar distortion of a fact so basic to the American government
ni not recurr in future bond-selling campaigns.
Yours very truly,
Howard M. C. Buffett
Regraded Unclassified
83
25
September 21, 1943.
My dear Mr. President:
It occurs to me that you might like to ... the
enclosed copy of a letter from the Majority Leader,
together with the Evening Tribune of September 9, as
published in Lawrence, Massachmsetts. This newspaper
makes very striking use of your proclamation, and
also gives the Third Var Loan excellent support
throughout the rest of its pages.
Faithfully yours,
(Signed) H. Morgenthau, Jr.
The President,
The White House.
Enclosures.
Regraded Unclassified
84
September 17, 1943
My dear Mr. McCormack:
It was very good of you to send 200 a copy
of The Evening Tribune of Lawrence, Massachusetts.
for Thursday, September 9. I have been most inter-
ested in seeing the use which the publisher made
of the President's message and the fine support
given to the Third War Loan Drive, both by the
newspaper itself and by other citizens of
Lewrence who participated in this special issue.
with thanks again for your thought and
cordial regards.
Very truly yours,
(Signed) H. Morgenthew, Jr.
Secretary of the Treasury
Honorable John V. McCormack
House of Representatives
Washington, D. C.
GRF:IV
Regraded Unclassified
85
JOHN W. MCCORMACK
EUGENE T. KINNALY
12TH DIST. MASSACHUSETTS
SECRETARY
ffice of the Majority Leader
House of Representatives H. 5.
Hashington, D.C.
September 16, 1943
Hon. Henry Morgenthau, Jr.
The Secretary of the Treasury
Washington, D. C.
Dear Mr. Secretary:
I am enclosing a copy of The Evening Tribune of
September 9, a newspaper published in Lawrence, Massachusetts.
The action of this newspaper in devoting its first page to the
success of the Third War Loan is not only highly commendable,
but very patriotic.
I knew you would be interested in receiving a
copy of The Evening Tribune, and to note the real unselfish
end patriotic action taken by the publisher and editor of
this newspaper.
With kind regards, I am
June Sincerely yours,
MAJORITY LEADER
Enc.
Regraded Unclassified
86
GC:L&R:PAV
A-384818
SEP 21 1943>
My dear Mr. President:
I an submitting herewith for your consideration,
with the recommendation that it be approved, a proposed
Treasury decision amending, in furtherance of the war
effort, Regulations 85 relating to the tax on transfers
of interests in silver bullion. These regulations were
nade applicable to section 1805 of the Internal Revenue
Code by Treasury Decision 4887 approved by you on
February 11, 1939.
The proposed Treasury decision amends the regula-
tions to authorize the Commissioner of Internal Revenue
to waive the furnishing of certain supplementary
information now required by the regulations to be
furnished with certain monthly returns, when he finds,
upon a proper showing, such supplementary information
to be unnecessary.
Regraded Unclassified
87
The proposed Treasury decision also increases,
until termination of hostilities, from 15 days to 45
days the time for replacement of silver transferred
from "mecessary inventory".
Faithfully yours,
(Signed) H. Margenthou, Jr.
Secretary of the Treasury
The President,
The White House.
PAV/ES 8-27-43.
Regraded Unclassified
88
(T. D.
,
TITLE 26 -- INTERNAL revenue
CHAPPER I
SUBCHAPTER c, PART 112
TAX ON TRANSFERS OF SILVER BULLION
Reports and inventory replacements.
Articles 66 and 85 (c), Regulations
85, amended.
TREASURY DEPARTMENT,
Office of the Secretary,
Washington 25, D. C.
TO COLLECTORS OF INTERNAL REVENUE
AND OTHERS CONCERNED:
Regulations 85 [Part 112, Title 26, Code of
Federal Regulations] relating to the tax on trans-
fers of interests in silver bullion, but only as
prescribed and made applicable to the Internal
Revenue Code by Treasury Decision 4887, approved
February 11, 1939 [Part 112 (note) of such Title
26] are amended as follows:
Paragraph 1. Article 66 section 112.66 of
such Title 26_7 is amended by changing the period
at the end of the second sentence to a comma and
adding thereafter the following:
except that upon application and proper
showing to the Commissioner he may gener-
ally, or in individual cases, as he deems
appropriate, waive such of the information
as he determines to be unnecessary.
Regraded Unclassified
89
- 2 -
Par. 2. Article 85 (c) section 112.85 (c)
of such Title 26_7 as amended by Treasury Decision
4465, approved August 27, 1934, is amended by add-
ing to the end thereof a sentence reading as
follows:
Effective as of December 1, 1942, and until
the date on which the President proclaims
that hostilities in the present war have
terminated, the replacement may take place
within 45 days before or after such transfer.
(This Treasury decision is issued under the
authority contained in section 1805 of the Inter-
nal Revenue Code (53 Stat. 198, 199; 26 U.S.C.,
1940 ed., and Sup. II, 1805).)
throughouth
Secretary of the Treasury.
Approved: September 22.943
The White House.
Regraded Unclassified
90
(T. D.
>
TITLE 26 -- INTERNAL REVENUE
CHAPTER I
SUBCHAPTER c, PART 112
TAX ON TRANSFERS OF SILVER BULLION
Reports and inventory renlacements.
Articles 66 and 85 (c). Regulations
85. amended.
TREASURY DEPARTMENT,
Office of the Secretary,
Washington 25, D. C.
TO COLLECTORS OF INTERNAL REVENUE
AND others CONCERNED:
Regulations 85 [Part 112, Title 26, Code of
Federal Regulations/ relating to the tax on trans-
fers of interests in silver bullion, but only as
prescribed and made applicable to the Internal
Revenue Code by Treasury Decision 4887, approved
February 11, 1939 [Part 112 (note) of such Title
267 are amended as follows:
Paragraph 1. Article 66 [section 112.66 of
such Title 267 is amended by changing the period
at the end of the second sentence to a comma and
adding thereafter the following:
except that upon application and proper
showing to the Commissioner he may gener-
ally, or in individual cases, as he deems
appropriate, waive such of the information
as he determines to be unnecessary.
Regraded Unclassified
91
-2-
Par. 2. Article 85 (c) [section 112.85 (c)
of such Title 267 as amended by Treasury Decision
4465, approved August 27, 1934, is amended by add-
ing to the end thereof a sentence reading as
follows:
Effective as of December 1, 1942, and until
the date on which the President proclaims
that hostilities in the present war have
terminated, the replacement may take place
within 45 days before or after such transfer.
(This Treasury decision is issued under the
authority contained in section 1805 of the Inter-
nal Revenue Code (53 Stat. 198, 199; 26 U.S.C.,
1940 ed., and Sup. II, 1805).)
(Rigned) H Morganthaw, Jr.
Secretary of the Treasury.
Approved:
The White House.
Regraded Unclassified
92
GC:LAR:PAV
A-384818
HR. SECRETARY:
There is transmitted herewith, with recommendation
that it be approved, a proposed Treasury decision amending
Regulations 85, relating to the tax on transfers of silver
bullion. These regulations, prescribed by the Commissioner
and approved by the Secretary on June 19, 1934, were issued
pursuant to Title VIII, Schedule A, subdivision 10 of the
Revenue Act of 1926, as added by section 3 of the Silver
Purchase Act of 1934. By section 1805 of the Internal
Revenue Code, which superseded the said sublivision 10, the
Secretary is authorized to issue, with the approval of the
President, such rules and regulations as the Secretary may
deem necessary or proper to carry out the purposes of the
section. Pursuant to section 1805 there was issued by the
Secretary, and approved by the President on February 11,
1939, Treasury Decision 4867 which made Regulations 85
applicable to section 1805. The proposed anendatory
Treasury decision now submitted is therefore prepared for
issuance by the Secretary and approval by the President.
The proposed Treasury decision amends articles 66 and
85 (e) of Regulations 85. The amendment of article 66
authorizes the Commissioner, when he desns it appropriate,
to mive the furnishing of certain information. Under the
existing regulations certain taxpayers must furnish with
their monthly returns on Form 3(Silver) dotailed informa-
tion as to their various transactions from which their tax
liability, if any, can be determined. This detailed infor-
nation is supplied ON Form 30(Silver). It is represented
that under existing conditions the activities of the tax-
payer are such that be knows without preparing the detailed
information required by the regulations, whether or not tax
in due. Through their representative the concerns subject
to the requirement in question, only 12 in number, ask to
be relieved of the task of filing Form 3C(Silver) for
months for which so tax is due. The concerns involved are
Regraded Unclassified
93
- 2 -
now chiefly engaged in the war effort, and it is con-
tended that in these sircumstances it is a particular
hardship to be required to furnish the information
referred to which can result in no tax collection.
The proposed amendment of the regulations would give
the Commissioner authority to naive, upon application
and proper showing, the detailed information nov required
by the regulations. Under this authority, filing of Form
30(Silver) could be waived in appropriate circumstances.
AS to article 85, the law authorizes the Commissioner
of Internal Revenue, under conditions and subject to regu-
lations, to abate or refund taxes found to be attributable
to profits realized in the course of a transferor's regu-
lar business of furnishing silver bullion for industrial,
professional, or artistic use. Pursuant to this author-
ity article 85 of the regulations provides for the keep-
ing of so-called necessary inventories, and article 85 (e)
requires silver transferred from inventory to be replaced
within 15 days before or after the transfer. It appears
that because of the extensive use of silver in var pro-
duction and priority, price control, and other require-
ments, the 15-day limit is a handicap in the efficient
operations of the transferors. It is considered that
extension of the replacement period to 45 days will facil-
itate war operations and will not endanger the collection
of any tax due. The proposed Treasury decision will amend
article 85 (c) to permit, for the period of the var uner-
geney only, silver transferred from the inventories in
Question to be replaced within a 45-day period.
(Signed) Guy T. Helvering
Commissioner.
jmt-8-26-43
Regraded Unclassified
94
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE
TO
Secretary Morgenthau
September 21, 1943
FROM Frances McCathran
CONTROVERSIAL ISSUES BEFORE CONGRESS
1. Ennoover - Before a joint session of the Senate and House
military Affairs Committees yesterday, General George C.
Marshall testified against the Wheeler Bill to suspend
the induction of fathers. For the first time in its his-
tory this nation is fully training its soldiers before
they are sent overseas, Marshall said. At the time of the
North African invasion, however, it was necessary to es-
tablish advanced training bases in Africa to complete
ndecuate preparation of American troops. Because of
camualties and other mannower drains, he added, it takes
aboroximately 75,000 men 8. month merely to hold the army
at its present strength. Saying that oostoonement of the
father draft would force reduction of combat divisions,
he warned against maintaining the army on too narrow a
margin of reserves. "We can very quickly demobilize, but
we con't improvise, If he reminded the committees. Admiral
King also testified against the Wheeler Bill yesterday, and
Hayor La Guardia warned against the increasing manyower
abortage in city governments. Tomorrow afternoon Bernard M.
baruch, Adviser to OWN Byrnes, is expected to wind up the
Wheeler Bill hearings of the Senate Military Affairs Com-
Littee.
2. Post-Var Planning - The House is expected to vote today
on the Fulbright Resolution in which Congress simply
"expresses itself as favoring the creation of appropriate
international machinery with power adequate to establish
and to maintain a just and lasting peace, among the nations
of the world, and as favoring carticipation by the United
States therein, through constitutional processes." If The
last three words were a Republican amendment approved
unanimously yesterday by the House Military Affairs Committee.
Although several representatives spoke against the measure
in House debate yesterday, there appears to be no doubt
that the necessary two-thirds majority to pass the resolu-
tion will be easily obtained.
Regraded Unclassified
95
3.
Renegotiation - In hearings before the House Ways and Means
Committee yesterday, Undersecretary of War Patterson, while
favoring post-war relief amendments to the tax laws, very
definitely opposed the viewpoint that excessive profits
can be adequately recovered by taxation. For "when taxes
reach the point of confiscation, " he said, "the profit in-
centive disappears, resulting in extravagance" and "a
wastage of manoower and materials."
Regraded Unclassified
96
25
SEP 21 1943
Dear Mr. Helvering:
I have your letter of September 15, 1943. advising of the
submission to the President of your resignation as Commissioner
of Internal Revenue.
While I realise that you are leaving the Department at
the request of the President to serve as United States District
Judge for the district of Kansas, the knowledge that you will
no longer be at the head of the Internal Revenue Bureau pro-
duess a genuine feeling of personal regret. It is a matter of
official record that during the past ten years you have ren-
dered an outstanding public service in formulating the policies
and directing the activities of one of the most important
agencies of the Federal Government. The Treasury has been
fortunate to have had a person of your resourcefulness and
integrity in a position of such responsibility.
I an deeply grateful to you for the loyal and able
service you have rendered. May you find success and happiness
in your new work.
Sincerely yours,
(Signed) H. Mergenthaw, Jr.
Honorable Guy T. Helvering
Commissioner of Internal Revenue
Treasury Department
CFlanagan:km
9/17/43
Regraded Unclassified
97
POLYCTORY
BUY
TREASURY department
-
WAR
WASHINGTON 25
OFFICE OF
MISSIONER OF INTERNAL REVENUE
September 15, 1943.
ADDRESS REPLY TO
OF INTERNAL REVENUE
AND REFER TO
Dear Mr. Secretary:
I have today forwarded to the President my resignation
as Commissioner of Internal Revenue to be effective at his
pleasure.
It will be a. privilege and an honor to assume the duties
of the position which the President has offered me, yet it is
with regret that I am severing my connection with the Treasury
Department. However, I feel that the Bureau of Internal
Revenue is well organized, its officers and employees loyal
and cooperative, and that it will continue to function with a.
high degree of efficiency under your capable direction and
leadership.
Words are inadequate to express the appreciation I feel
for the many kindnesses and courtesies you have extended to me
and for your loyal support in my administration of the tax
laws. I am sincerely grateful for the cordial friendships of
associates in the Department and for their cooperation with me
in the work of the Bureau of Internal Revenue, one of the most
vital and complex agencies of the Federal Government.
I want you to know, Mr. Secretary, of my profound admira-
tion of the manner in which you have conducted the various
Bureaus of the Treasury Department together with the additional
responsibility you have undertaken in financing the war.
Yours very sincerely,
Commissioner.
Honorable Henry Morgenthau, Jr.,
Secretary of the Treasury.
Regraded Unclassified
98
September 21, 1943.
My dear Mr. Higgins:
I am sorry indeed that you are leaving us
after doing such a good job as Collector of Internal
Revenue in the Third District of New York. In view,
however, of the responsibility of the post for which
you are the party candidate and the attraction I
know it will hold for you as a man trained in the
law and well fitted for the bench, I feel that we
can't complain.
I am grateful, instead, for the able and con-
scientious service you have rendered in a very
difficult place and extend to you my best wishes
and hopes for your future career.
Sincerely,
(Signed) H. Morgenthan, Jr
Secretary of the Treasury.
Mr. Joseph T. Higgins
180 Central Park South
New York, N. Y.
Regraded Unclassified
TREASURY department
INTERNAL REVENUE SERVICE
COLLECTOR
NEW YORK. N. Y.
NEW YORK
PRODUCT
maDastan
September 17, 1943.
My dear Mr. Secretary,
Enclosed herewith please find copy of my resig-
nation as Collector of Internal Revenue of the Third
District, New York, submitted to the President today.
It is with a feeling of real sadness that I
find it necessary to resign from this very honored pos-
ition, particularly because I have been very proud of
my association with you as Secretary of the Treasury.
With warmest regards, I am,
Sincerely yours,
Joseph T. Higgins
Hon. Henry Morgenthau, Jr.,
Secretary of the Treasury,
Washington, D.C.
Regraded Unclassified
TREASURY DEPARTMENT
INTERNAL REVENUE SERVICE
FICE
CTOP
NEW YORK, N.Y.
-
Ydex
COPY
any
September 17, 1943.
My dear Mr. President:
Having been nominated by the Democratic Party for
the office of Justice of the City Court of the City of
New York, I herewith tender to you my resignation as
Collector of Internal Revenue, Third District, New York,
effective the close of business on September 20, 1943.
Respectfully submitted,
Joseph T. Higging
The Honorable Franklin D. Roosevelt,
President of the United States,
The White House,
Washington, D.C.
Regraded Unclassified
101
Sept ember 21, 1943.
My dear Mr. Ambassador:
I have learned this morning with a
sense of personal grief the news of the
death of Sir Kingsley Wood and desire to
express my sympathy to you as the repre-
sentative of His Majesty's Government.
I am enclosing a draft of a cable to
the Prime Minister which I shall appreciate
your transmitting to London, if you will be
so kind.
Sincerely,
(Signed) H. Mergenthau, Jr.
Secretary of the Treasury.
His Excellency
The Ambassador of Great Britain
Washington, D.C.
Regraded Unclassified
102
Draft of Cable
The Prime Minister, London
Permit me to e xpress through you to His Majesty's
Government and people my deep sense of personal loss in
the death of Sir Kingsley Wood, Chancellor of the Exchequer,
whose sincere friendliness and cooperative spirit have done
80 much to advance the common cause of our two countries.
We in the United States who knew of his great abilities as
well as fine integrity and personal charm join with you in
mourning his departure.
HENRY MORGENTHAU, JR.
Regraded Unclassified
103
BRITISH EMBASSY,
WASHINGTON, D.C.
September 21st, 1943
My dear Mr. Secretary,
May I thank you for your letter
in which you express your personal grief
at the news of Sir Kingsley Wood's death.
I am most grateful for your expressions
of sympathy.
I have at once had your cable to
the Prime Minister despatched.
Believe me,
My dear Mr. Secretary,
Very sincerely yours,
R.I.Campbell. R.I.
The Honourable
Henry Morgenthau, Jr.,
Secretary of the Treasury,
Washington, D.C.
104
9/21/43
TO STATE
Telegram for transmission to Ambassador Winant
in London
Personal to Winant
I sent sympathy message yesterday to Embassy for
Prime Minister but would appreciate your speaking
for me also.
Morgenthau
Regraded Unclassified
105
10
BRITISH air COMMISSION
1785 MASSACHUSETTS AVENUE
WASHINGTON, D. C.
TELEPHONE HOBART 9000
EASE QUOTE
FERENCE NO
With the compliments of British Air Commission
who enclose Statement No. 103 -- Aircraft Despatched
-- for week ended September 14, 1943.
The Honourable Henry Morgenthau, Jr.
Secretary of the Treasury
WASHINGTON, D. C.
September 21, 1943.
Regraded Unclassified
MOST SECRET
106
STATEMENT NO. 103
Aircraft Despatched from the United States
Week Ended September 14, 1943
ASSEMBLY
BY
BY
DESTINATION
FLIGHT DELIVERED
TYPE
POINT
SEA
AIR
FOR USE IN CANADA
CONSOLIDATED
Catalina IV
U.K.
U.K.
6
Coronado GR V
U.K.
U.K.
2
DOUGLAS
Dakota III
India
India
4
GLENN MARTIN
Baltimore V
M.E.
M.E.
12
Marauder II
M.E.
M.E.
3
N. AMERICAN
Mitchell II
U.K.
U.K.
1
Mustang
U.K.
U.K.
12
Sarvard
S. Africa
Capetown
25
Harvard
S. Rhodesia
Capetown
14
VEGA
Ventura GR V
U.K.
U.K.
1
Ventura GR V
M.E.
M.E.
1
Ventura GR V
S. Africa
S. Africa
8
BELL
Bell YP 59A
U.K.
U.K.
1
GRUMMAN
Martlet V
U.K.
U.K.
2
Tarpon
S. Africa
Capetown
2
Tarpon
U.K.
U.K.
1
CURTISS
"amow
U.K.
U.K.
3
ttyhawk
Australia
Melbourne
31
Kittyhawk
M.E.
Alexandria
17
FAIRCHILD
Fleet Cornell
S. Rhodesia
Capetown
12
NOORDUYN
Harvard
U.K.
U.K.
8
STINSON
Reliant
U.K.
U.K.
10
Movements Division
Total
138
38
0
British Air Commission
September 18, 1943
Regraded Unclassified
mmh
107
VICTORY
TREASURY department
BUY
UNITED
STATES
PROCUREMENT DIVISION
WAR
BONDS
AND
STAMPS
CE OF THE DIRECTOR
WASHINGTON 25
SECRET
September 21, 1943
MEMORANDUM TO THE SECRETARY:
There is submitted herewith the weekly report of
Lend-Lease purchases.
Periodic surveys of Lend-Lease materials are being
made at all storage points throughout the Country and
reports submitted recommending such action as may be
necessary to avoid depreciation. This work was under-
taken as a special project during the early part of
August as an added check upon the usual warehousing
safeguards. The results thus far have been very
satisfactory.
Clifton E. Mack
Director of Procurement
Attachment
108
LEND-LEASE
TREASURY DEPARTMENT, PROCUREMENT DIVISION
STATEMENT OF ALLOCATIONS, OBLIGATIONS (PURCHASES) AND
DELIVERIES TO FOREIGN GOVERNMENTS AT U. S. PORTS
AS OF SEPTEMBER 15, 1943
(In Millions of Dollars)
Administrative
Miscellaneous &
Total
U. K.
Russia
China
Expenses
Undistributed
Allocations
$3881.9
$1931.8
$1557.4
$109.7
$11.0
$272.0
(3875.2)
(1931.8)
(1557.0)
(103.4)
(11.0)
(272.0)
Purchase Authoriza-
$3030.7
$1610.2
$1239.9
$43.1
-
$137.5
tions (Requisitions)
(3002.1)
(1599.4)
(1231.9)
(36.6)
-
(134.2)
Requisitions Cleared
$2950.5
$1563.3
$1213.3
$42.9
-
$131.0
for Purchase
(2934.5)
(1562.0)
(1208.0)
(36.5)
-
(128.0)
Obligations
$2889.0
$1545.7
$1189.8
$42.8
$7.9
$102.8
(Purchases)
(2871.9)
(1541.5)
(1184.8)
(36.4)
(7.6)
(101.6)
Deliveries to Foreign
$1268.7
$ 880.4
$ 356.8
$18.3
-
$13.2
Governments at U. S.
(1252.2)
(864.4)
(356.3)
(18.3)
-
(13.2)
Ports*
*Deliveries to foreign governments at U. S. Ports do not include the
tonnage that is either in storage, "in-transit" storage, or in the
port area for which actual receipts have not been received from the
foreign governments.
Note: Figures in parentheses are those shown on report of September 8, 1943.
Regraded Unclassifi
109
SEP 21 1943
My door Mr. Ambansadors
This is to asknowledge your letter of September 3,
1943, englesing 4 letter from Mr. Camille Gubb,
Minister of Finance of Belgium, together with a -
randen on the determination of the Belgian frans-dollar
rate of
The and the problems with which it
deals will be given careful consideration by the
I
Very truly yours,
(Signed) H. Morgentham, M
Secretary of the Treasury
the Emellency,
the of Belgium,
I : á
CDGalr 9/14/43
Regraded Unclassified
DE BELGIQUE
The Belgian Ambassador presents his
compliments to the Honorable the Secretary of the
Treasury of the United States, and has the honor
to transmit to him, herewith, a letter addressed to
him by Mr. Camille GUTT, Minister of Finance of
Belgium.
The Belgian Ambassador will be obliged
if an acknowledgment of the enclosure may be sent to
the Embassy.
WASHINGTON, September 3rd., 1943.
Σ SADE AD DE BE STATE
of
was HINGTON
be Honorable Henry MORGENTHAU
cretary of the Treasury of the United States
WASHINGTON, D. C.
Regraded Unclassified
/
49, EATON PLACE,
LONDON, S.W.I.
Tel: Sioane 6225.
DU MINISTRIE
THE DEN
onfidential.
06/AD
20th Augus t, 1943.
My dear Secretary,
Following your letter dated
July 2nd, and the conversations I had
in Washington in June with Messrs.Harry
White and Daniel Bell, I have the honour
to send you herewith the memorandum which
you asked for, relating to the proposed
parity between the Belgian franc and the
dollar.
As pointed out in the memorandum,
the figure given is that which would apply
should the liberation of the country take
place in the very near ruture and it would
be subject to revision should the liberation
take place later on.
Yours very truly,
enthau,Esq.,
etary of the Treasury,
Washington.
Guts
Regraded Unclassified
COPY
49 Eaton Place
NANCES
London S. W. I
nff
XIA
20th August 1943.
My dear Secretary,
Following your letter dated July 2nd. and the
conversations I had in Washington in June with Messrs. Harry
White and Daniel Bell, I have the honour to send you herewith
the memorandum which you asked for, relating to the proposed
parity between the Belgian franc and the dollar.
As pointed out in the memorandum, the figure given is
that which would apply should the liberation of the country take
place in the very near future and it would be subject to revision
should the liberation take place later on.
Yours very truly,
(s) Gutt
Morgenthau, Esq.
cretary of the Treasury
Washington.
Regraded Unclassified
ANDUM ON THE BELGIAN FRANC - DOLLAR FUTURE PARITY.
1. The problem.
The Belgian Government have been asked by the United
Les Government what exchange parity they intended to fix
the Belgian frano on the liberated Belgian soil.
Of course a parity corresponds to a given economic and
Minancial situation. And as in this regard many elements
(In the United States as well as in Belgium) may change
before the day of liberation, our reply - in accordance with
the conversations I have had with Mr. White and Xr. Bell - is
based on the latest date available at the present time. To
intend to keep in touch, in the future, with the United States
Government, in order to inform them of any changes which
might influence our ultimate decision.
With this reservation, our position is the following :
A parity between currencies reflects a relationship
between economies. Let us examine that relationship as far
as the United States and Belgium are concerned.
II.- The currency and price structure in Belgium.
a) Present position.
Belgium has been occupied by the Germans for more than
three years. Although the economio life of Belgium has been
drastically reduced, thus reducing her revenue, she has been
able to meet out of heavily increased taxation all her normal
expenses but not her extraordinary expenses, especially the
war contribution levied by Germany. This contribution now
exceeds 20 billions of Belgian francs annually, whilst the
whole of the Belgian Budget, before the war, amounted to 12
billions.
Regraded Unclassified
2
The Treasury could only meet such expenditure by issuing
as; either long or medium term loans floated in the pu-
101 or Treasury Bills discounted with the Bank of Issue.
The former increased the amount of the publio debt; the latter
did too, but had the additional effect of increasing the
volume of the circulation.
Therefore, the total public debt, which was on May 10th
1940 67.570 millions, reached on March 31st 1943 118.603
millions. The total commitments of the Bank of Issue, which
on May 10th 1940 amounted to 34.815 millions, had risen on
May 27th 1943 to 81.080 millions while its real assets remaine
unchanged. The total ourrent accounts with private and saving
banks, which were 23,930 millions in May 1940 had risen on
December 31st 1942 to 39.566 (last figures available).
Such a situation was bound to reflect on the price level.
On the one hand, there was an abundance of means of payment.
On the other hand, due to Allied blookade and German plunder
there was very little to be purchased. Thirdly, the very
abundance of means of payment made people afraid of the future
of the currency and stampeded them in purchasing real values.
This resulted in a considerable rising of prices both on the
open and on the black market. Prices at the Stock Exchange
and in the real estate markets have risen to 300% or 400% of
the pre-war prices. For the black market foodstuffs, far more
extravagant prices are prevailing but it is worth noting that
the black market transactions are a very small percentage of
the total.
That those prices are artificial, speculative and do not
correspond to the reality is shown by the fact that, as soon
as an Allied victory is announced or foreseen, they drop
Regraded Unclassified
3
stially. And they would certainly fall to pieces the
be territory could be liberated and the relief assured.
However, some goods and services are being kept by way
controlled prices at a prescribed level; this applies
Maly to salaries. They are at present at 140% of their pre-
war level. Às such, they are insufficient to give the workers
anything approaching their pre-war standard of living, and
the management of the various concerns has to intervene (by
way of indirect payments, like the supply of foodstaffs at
a very cheap price) to provide their employees with the bare
necessities of life.
b) Future position.
The above mentioned facts show that the present commodi-
ties price structure cannot be taken as a definite basis. If
we analyse the situation further, we notice on the one hand,
that the greater part of the currency issued since the war
began has not gone into the normal economic circuit of the
circulation. On the other hand, if, as must be the case, oon-
sumption goods are available in sufficient quantities, there
need/ be to give the wage-earners a sufficient purchasing power,
no change in the controlled prices which have been fixed.
To attain this end, the Belgian Government have drafted
a set of decrees, which will become operative as soon as part
of Belgium is liberated.
The first effect of these. decrees will be to sterilize
an important part of the means of payment, before they are
actually incorporated into the economic circuit. At the same
time a control of prices, a control of the credit, a control
of imports and exports will be established. All these controls
Regraded Unclassifie
requisites for the control of exchange and the mainte-
of an exchange parity. Once one controls the volume of
troulation, the prices, the credit and the foreign trade,
can control ab exchange parity.
Sterilization of the means of payment would be made by
pulsorily transforming part of them into special long-term
de having a special statute, (e.g. These bonds could not to
14 on the market or be accepted as guarantee for the opening
of credit except under a special licence of the Credit Control
Organisation). The amount to be thus sterilized will of course
depend upon the size of the monetary circulation and upon the
parity fixed for the currency : it will be relatively snall
if the parity is low, more important if the parity is high.
The control of prices is already applied, as said above,
to occupied Belgium. It has not prevented the black market
from coming into existence, but this is due to the lack of a
sufficient quantity of available goods on the market. Then the
normal flow ef goods is restored, and when the various controls
mentioned are functioning, there is no reason to believe that
a given price Pvel could not be maintained - if necessary,
with the added support of - policy of subsidies.
Control of exports, 1: orts, and foreign exchange already
existed in some form before the war and could not be dispensed
with after the liberation. _ven apart from any monetary consi-
deration, they could not be avoided due to the scarcity of
shipping space and raw materials 11:10h is bound to revail.
III.- The calculation of the exchange parity.
The Belgian Goverment want to choose a parity which
would not entail a reduction 1n the nominal amount of the
salaries, this for evident psychological and social reasons.
Regraded Unclassifi ed
5
other hand, they want to establish the parity at such
1 that the maintenance of the present salaries would give
rkers a purchasing power not inferior to their pre-war
hasing power.
The present nominal salaries represent 140% of the 1938
es. No account need be taken of the additional payments
previously mentioned, as they are only made necessary by the
laok of available food supplies, and as it 1s hoped that the
normal flow of supplies will be forthooming after the libera-
tion. Therefore, our basis is 140. And this figure should be
used as the price basis; all other prices, as above mentioned,
being artificial and speculative.
Had the dollar and the pound kept their purchasing power
since 1938, the calculation of the frano parity would be very
simple, a devoluation of 100 minus 100 140 (1.e. 28.5%) in terms
of pounds or dollars should be applied to restore pro-war
equilibrium.
But this is not the case. At the end of December 1942,
the cost of living index had risen, in England to 128 (cost
of living - Ministry of Labour - In the United States,
the index was at 120 at the end of last year (oost of living
80 towns - Bureau of Labor Statistics).
Therefore the measure of the devaluation, if any, of the
Belgian frano, should be only the difference between the rise
of prioes in Belgium and that of the prices in Great Britain
or the United States.
(The Snyder index based on :
1) wholesale price, Board of Trade,
2) oost of living, Ministry of Labour,
3) wages,Bewley index, and
4) rent index, Ministry of Labour,
reached 134,7 at the end of December 1942)
Unclassified
-
6
-
Thus, on the basis of the figures at the end of
er 1942, the rate of exchange of the Belgian frano
net sterling is as follows :
£ 1 # 144,65 X 140 - 158,36 B.Fr.
128
to = wage level in Belgium at the end of December 1942 (average
1938 # 100) the prices having to be stabilised at that
level.
188 = price level in Great Britain at the end of December 1942
(Average 1938 = 100)
144,65 - average of the rate of exchange £/B.Fr. during the
year 1938.
The parity between the U.S. dollar and the £ being
4.02 1/2 the rate of exchange between the U.S. dollar and the
Belgian frano would be :
158,36 = 39,34 B.Fr. = U.S. Dollar 1.
4,02 1/2
To put it in round figures, the dollar parity at the
present moment is, in the opinion of the Belgi an Governis nt,
40 Belgian francs to the dollar, which at the parity of 4,025
would mean 161 Belgian francs to the £.
This is said under the general reservation formulated
at the beginning of the present memorandum that this value is
not necessarily a definite one, as a change in the price
structure - either in Belgium or in the dollar-sterling
countries or in both - might influence it in the future.
20th August, 1943.
Regraded Unclassified
119
Treasury Department
Division of Monetary Research
Date 9/23/43
19
To:
Mrs. McHugh
Your copies of last four letters
to the Ministers of Finance. These were
sent to Mr. Livesey in the State Depart-
ment for delivery via American Embassies.
L. Shanahan
MR. WHITE
Branch 2058 - Room 2141
Regraded Unclassified
120
SEP 21 1943
Excellency:
On March 4, 1943, I sent to the finance ministers of the United
Nations and the countries associated with then a tentative draft pro-
posal for an international stabilization fund, prepared by the tech-
nical experts of the United States Treasury in cooperation with the
technical experts of other departments of this Government. At that
time, I asked the finance ministers to submit this tentative proposal
for critical study by their technical experts and to send their ex-
ports to Washington for informal discussions with the technical ex-
parts of this Covernment.
These exploratory technical discussions have been going on for
some time. The discussions have been very helpful in clarifying
the problems connected with international monetary cooperation and
in calling forth suggestions for modifications in the tentative pro-
posal. As a result of these discussions, the technical experts of
the United States have prepared a revised draft of the tentative
proposal for an International Stabilization Fund. While this draft
ambodies Bome of the suggestions of the technical experts of other
countries, it does not necessarily represent the views of the exports
of any other country.
I particularly wish to express to you my appreciation for the
contributions to the discussions made by the technical experts that
you designated. The several conversations they held with the experts
of the United States were helpful to us and we hope to them.
There ie enclosed for your consideration the revised draft of
the tentative proposal for an International Stabilisation Fund.
It is my intention to keep you fully informed of further developments
in connection with the proposals for international monetary coopera-
tion.
Sincerely yours,
10% H. margether s.
Secretary of the Treasury
His Excellency, Francisco de Paula Outierros Ross
The Vinister of Finance,
The Republic of Costa Rica,
San Jose, Costa Rica.
Enclosure
23/ah
9/15/43
Regraded Unclassified
121
SEP 2 1 1943
Excellency:
On March 4, 1943, I sent to the finance ministers of the United
Nations and the countries associated with them a tentative draft pro-
posal for an International Stabilization Fund, prepared by the tech-
nical exparts of the United States Treasury in cooperation with the
technical experts of other departments of this Government. st that
time, I asked the finance ministers to submit the tentative proposal
for critical study by their technical experts and to send their ex-
parts to Washington for informal discussions with the technical ex-
perta of this Government.
These exploratory technical discussions have been going on for
some time. The discussions have been very helpful in clarifying
the problems connected with international monetary cooperation and
in calling forth suggestions for modifications in the tentative pro-
possl. As a result of these discussions, the technical experts of
the United States have prepared a revised draft of the tentative
proposal for an International Stabilisation Fund. While this draft
embodies some of the suggestions of the technical experts of other
countries, it does not necessarily represent the views of the experts
of any other country.
I particularly wish to express to you my appreciation for the
contributions to the discussions made by Dr. Corrondona and
Dr. Guarrero, the technical experts that you sent to Washington.
The several conversations they held with the experts of the United
States were helpful to us and we hope to them.
There is enclosed for your consideration the revised draft of
the tentative proposal for an International Stabilization Fund.
It is my intention to keep you fully informed of further develop-
ments in connection with the proposals for international monstary
cooperation.
Sincerely yours,
10/ H. margewther, G.
Secretary of the Treasury.
Ris Excellency, Arturo Uslar Pietri,
The Minister of Finance,
The United States of Venezuela,
Caracas, Venesuela.
Enclosure
EMB:lr
9/14/43
Regraded Unclassified
122
SEP 2 1 1943
Excellency:
On March 4 1943, I sent to the finance ministers of the United
Nations and the countries associated with them a tentative draft pro-
posal for an International Stabilization Fund, prepared by the tech-
nical experts of the United States Treasury in cooperation with the
technical experts of other departments of this Government. At that
time, I asked the finance ministers to submit this tentative proposal
for critical study by their technical experts and to send their as-
parts to Washington for informal discussions with the technical ex-
perts of this Government.
I regret that it was not possible for you to send technical the
perte to Washington for these discussions. The conversations already
held have been very helpful in clarifying the problems connected with
international monetary cooperation and in calling forth suggestions
for modifications in the tentative proposal. As a result of these
discussions, the technical experts of the United States have prepared
a revised draft of the tentative proposal for an International
Stabilisation Fund. While this draft embodies some of the suggestions
of the technical experts of other countries, it does not necessarily
represent the views of the experts of any other country.
There is enclosed for your consideration the revised draft of
the tentative proposal. for an International Stabilisation Fund. It
is try intention to keep you fully informed of further developments
in connection with the proposale for international monetary coopera-
tion,
Sincerely yours,
10/ Jr.
Secretary of the Treasury.
His Excellency, Arcesio Londerio Palacio,
The Minister of Finance,
The Republis of Colombia,
Bogota, Colombia.
Enclosure
Regraded Unclassified
12
Regraded Unclassified
SEP 21 1943
Excellency:
On March 4, 1943, I sent to the finance ministers of the United
Nations and the countries associated with them a. tentative draft pro-
posal for an International Stabilisation Fund, prepared by the tesh-
nical experts of the United States Treasury in ceoperation with the
technical experts of other departments of this Government. At that
time, I asked the finance ministers to submit this tentative proposal
for critical study by their technical experts and to send their -
parts to Washington for informal discussions with the technical ax-
perte of this Government.
These exploratory technical discussions have been going on for
some time. The discussions have been very helpful in clarifying
the problems connected with international monetary cooperation and
in calling forth suggestions for modifications in the tentative pro-
posal. As a result of these discussions, the technical experts of
the United States have prepared a revised draft of the tentative
proposal for an International Stabilisation Fund. While this draft
embodies some of the suggestions of the technical experts of other
countries, it does not necessarily represent the views of the experts
of any other country.
I particularly wish to express to you my appreciation for the
contribution to the discussions made by Mr. Illanes, the technical
expert that you designated. The several conversations be held with
the experts of the United States were helpful to us and we hope to
him.
There is enclosed for your consideration the revised draft of
the tentative proposal for an International Stabilisation Fund. It
is my intention to keep you fully informed of further developments
in connection with the proposals for international monetary 00-
operation.
Sincerely yours,
Secretary of the Treasury.
His Excellency, Arturo Matte Larrain,
The Minister of Finance,
The Republic of Chile,
Santiago, Chile.
Enclosure
21/ff 9/15/43
124
SEP 21 1943
Dear Mr. Walsh:
This is in reply to your letter of September 15, 1943,
regarding the tentative proposals for international monetary
cooperation.
The Treasury is cager to discuss the tentative proposal
for an International Stabilisation Fund with interested
public groups. We have already held some discussions with
banking groups and with exporters and importers. lie are
delighted to find 80 much interest in the proposal among
the labor organizations. You may be sure we welcome the
opportunity of discussing the question with the representatives
of labor.
I have asked Mr. White to get in touch with the labor
organizations and to arrange for discussions of the proposal
with them. You will hear from Mr. White in the very near
future.
Sincerely yours,
(Signed) H. Morgenthau, Jr.
Secretary of the Treasury
Mr. J. Raymond Walsh, Director,
Department of Education and Research,
Congress of Industrial Organisations,
718 Jackson Place, N. W.,
Washington, D. C.
EMB/jm
9/20/43
Regraded Unclassified
m. White
ngress of Industrial Organizations
CIO
718 Jackson Place, N.W.
Washington, Il.
C.
EXECUTIVE -
1. RAYA
Director
1
Research
September 15, 1943
Honorable Henry Morgenthau
Secretary of the Treasury
Washington, D. C.
Dear Secretary Morgenthau:
Mr. Philip Murray has asked me to be Chairman of the Committee
on Post War of the Congress of Industrial Organizations. As his
representative, I have participated in a number of conferences of
government officials and industry representatives on the problems that
will confront us during the period of demobilization and conversion to
a peace time economy. I write to express to you our great interest in
the whole question of international monetary stabilization and the
questions that have been raised by the so-called White Plan.
I need not point out to you how influential currency
stabilization will be on employment and the general welfare of our
members. In the light of this fact, I am wondering why the CIO has
not been invited to participate in the discussions which have been
held on the White Plan. Can you give me SODO assurance that we shall
be invited to any future discussions to which representatives of other
public groups attend?
Respectfully
J. Raymond Walsh
Regraded Unclassified
126
COPY NO 3
U.S. SECRET
PRITISH MOST SPCRET
OPTEL 312A
Information received up to 10 a.m. 2lat
september, 1943.
1.
NAVAL
One of H.M. Battleships has arrived at Malta
in tow. Unloading at Salerno is proceeding in spite of
ineffective air attacks. Air reconnaissance of Naples
17th and 18th showed one liner, one tanker, four cargo
ships and one coaster scuttled and a tompedo boat and
ubmarine no longer visible and may be suni, At
Castellamare a Reggio Class Cruiser, a floating crane,
three Iscort Vessels and some small craft are sunl and a
submarine probably sunk. At Pozzuoli a submarine was seen
on fire and partly destroyed.
A 1400 ton Italian submarine entered Durban yes-
terday and surrendered. An outward Convoy was attacked
by U-Boats about 400 miles South of Iceland (c) yesterday,
1 U.S. Liberty ship was sun and another abandoned. 8
U-boats were sighted yesterday near this convoy 3 of which
were attacked. In a premature explosion one of F.M.
destroyers while hunting U-boats 3 officers and 12 ratings
were killed and one missing. The Captain and several
ratings were wounded.
2.
MILITARY
Italy. 5th Army. Situation satisfactory and except
on North flank Allies are only opposed by rear guards, the
whole of the corrento Peninsula is now in our hands.
Righth Army. U.K. and Canadian troops are concentra-
ting South of Auletta and Potenza.
Corsica. German forces are moving from Bonefacio
Area by road and rail to Bostia where evacuation to the
mainland seems to have begun. Liaison between French and
Italian Ferces reported excellent.
On 18th/19th 2 Italian Destroyers under our control
landed personnel and stores at Ajacio.
Russia. The Russian advance continued yesterday on
several sectors of the front South of Lake Ilmen to the
Sea of Azov to depths varying from 6 to 16 miles.
3.
AIR OPERATIONS
Western Front. 20th. Fighters operating over
Brittany damaged 8 locomotives and a mine-sweeper 3 air-
craft missing.
20/21st. Aircraft despatched Berlin 8 Sea mining
22, Intruders 8, Loaflets 21.
Italy. 18/19th. "ellingtons dropped of tons on
Vitorho airfield and light bombers attarled anemy communica-
110ns in the Salerno area.
19th. 183 Hustangs continued to harass transport in
the battle area, more than sixty metor vehicles WETE Ac-
stroped. "hemy casualties 2.0.1, ours F missing-
Dodecanese. 18/19th. 15 enemy aircraft attached vos
Island destroying two aircraft on the ground including one
damaged the previous day, Aircraft destroyed in the air,
enemy 1, ours 2.
Regraded Unclassified
127
HM Jr's Broadcast with General Belyaev on
ational Farm and Home Hour on 9/22/43
128
3/20/73
LADIES AND GENTLEMEN:
We are now approaching the final week of our
Third War Loan drive. The importance of this drive
to "Back the Attack" is attested by the fact that it
was opened by the President himself, our Commander-in-Chier
Pause
Mr. Winston Churchill, Prime Minister of Great Britain,
in buying the first Bond, made clear his firm belief
that the success of the Drive will appreciably shorten
the war.
Today, ladies and gentlemen, we have further
testimony to the vital importance of this undertaking --
the financing of the United Nations attack.
689
596
Regraded Unclassified
129
- 2 -
It is testimony from an equally distinguished and
authoritative quarter -- a message to the American
people from Marshall Joseph Stalin, Supreme
Commander-in-Chief of the Armed Forces of the
Soviet Union.
It 1s my pleasure and privilege to introduce
my good friend, Major General Belyaev of the Soviet
Air Force, Chairman of the Soviet Government
Purchasing Commission in the United States -- who
brings you Marshall Stalin's message. 1/4
596
Regraded Unclassified
130
- 3 -
BELYAEV
"I have been honored with the privilege
to make the following statement at the request
of Marshall Stalin, Commander-in-Chief of the
Union of Soviet Socialist Republics:
"For 26 months the Soviet Union has been
engaged in a difficult war of liberation against
our common enemy, Hitlerite Germany, and her
15
satellites Finland, Rumania, and Hungary. In
this gigantic war more than five hundred
divisions are involved on both sides.
528
457
Regraded Unclassified
131
- 4 -
"Today the Soviet Army, the Red Army, is
advancing from Smolensk to the shores of the
Black Sea, pursuing and driving the hated
enemy from Soviet soil. In this struggle the
Red Army is also successfully employing
planes, tanks, guns and other munitions and
equipment which are received from the allied
United States and Great Britain.
"The entire Soviet population is working
unceasingly for the front to bring the hour of
victory nearer.
457
274
Regraded Unclassified
132
- 5 -
"Our American friends who are participating
in the manufacture of the ammunition and
supplies of provisions are rendering great
support in the fight against our common enemy
1/2
"Every Soviet citizen is not only assisting
his Army and his Government to defeat the enemy,
but is giving great financial support to the
Soviet Government by buying War Bonds.
"It is desirable that the American people,
by successful participation in the War Loan in
the United States, promote the growth of the
military might of the United States and help the
joint efforts of the Allies to achieve victory
over the bitter enemy within the shortest possible
period of time.
384
276
Regraded Unclassified
133
- 6 -
SECRETARY MORGENTHAU
Thank you, General Belyaev. I know this important
message from Marshall Stalin will be an inspiration
to the American people. It will help us to equal and
even surpass the 15 billion dollar goal of our
"Back the Attack" War Bond Drive.
We of the United States are happy that our munitions
and supplies have helped you to repulse the Germans.
Everybody knows that Bonds paid for those munitions
and supplies, in large part. The success of the
Third War Loan will guarantee that our help will
continue and even grow. 3/4
276
Regraded Unclassified
134
- 7 -
The American people are full of admiration for
the magnificent and history-making resistance of the
Soviet People to Nazi aggression.
Treacherously attacked by Germany, you fought
a long delaying action against the onrush of the
German military machine. You lost millions of your
sons and daughters. With your cities and villages
bombed and burned, you moved whole industries hundreds
of miles behind the Urals. In your besieged
factories, you laid aside your tools to take up guns
and fight the enemy in your very homes. Never did your
spirit fail. The vaunted Nazi "wave of the future"
shattered on the rock of your determination.
185
105
80
Regraded Unclassified
135
- 8 -
Today the valiant Red Army is gloriously
freeing Soviet soil, mile by mile, from the clutches
of the Nazi invader.
We know that throughout this long period of
trial your people never stopped buying Soviet War Bonds.
That should be an inspiration to us, too.
I wish to thank you, General Belyaev, -- and,
through you, Marshall Stalin -- for this message.
It will, I am sure, bring home to every one the
real meaning of our drive to "Back the Attack."
80
80
Regraded Unclassified
135
- 8 -
Today the valiant Red Army is gloriously
freeing Soviet soil, mile by mile, from the clutches
of the Nazi invader.
We know that throughout this long period of
trial your people never stopped buying Soviet War Bonds.
That should be an inspiration to us, too.
I wish to thank you, General Belyaev, -- and,
through you, Marshall Stalin -- for this message.
It will, I am sure, bring home to every one the
real meaning of our drive to "Back the Attack."
80
80
Regraded Unclassified
136
TREASURY DEPARTMENT
Washington
(The following message from Marshal Stalin, Commander-
in-Chief of the armed forces of the Union of Soviet
Socialist Republics on America's Third War Loan, is
scheduled for delivery at the BACK THE ATTACK show
at 12:15 P.M., E.W.T. Wednesday, September 22, 1943,
and is for release at that time.)
Marshal Joseph Stalin, Commander-in-Chief of the victorious Soviet
armed forces, today threw his mighty weight behind America's Third War
Loan drive.
The Red warrior urged a listening populace to purchase generously
the securities of fered and, by thus doing, "help the joint efforts of
the Allies to achieve victory over the bitter enemy within the shortest
period of time."
The message from the Russian chieftain was read by Major General
A. I. Belyaev of the Soviet Air Forces and presently chairman of The
Government Purchasing Commission of the U.S.S.R. in the United States.
It was solicited by Secretary Morgenthau who introduced the army
notable.
With a background of heavy guns, tanks, planes and other implements
of modern war, representing this country's contribution to Russia's
gallant fight, General Belyaev made the plain prefatory statement that
he had been honored with the privilege to make the following statement
at the request of Marshal Stalin, Commander-in-Chief of the Union of
Soviet Socialist Republics. The statement follows:
For 26 months the Soviet Union has been engaged in a
difficult war of liberation against our common enemy,
Hitlerite Germany, and her satellites Finland, Romania,
and Hungary. In this gigantic war more than five hundred
divisions are involved on both sides.
Today the Soviet Army, the Red Army, is advancing
from Smolensk to the shores of the Black Sea, pursuing
and driving the hated enemy from Soviet soil, In this
struggle the Red Army also is successfully employing planes,
tanks, guns and other munitions and equipment which are
received from the allied United States and Great Britain.
The entire Soviet population is working uncessingly for
the front to bring the hour of Victory nearer.
38-71
Regraded Unclassified
137
- 2 -
Our Amorican friends who are participating in the
manufacture of the ammunition and supplies of provisions
are rendering great support in the fight against our common
enemy.
Every Soviet citizen is not only assisting his Army
and his Government to defcat the enemy, but is giving
great financial support to the Soviet Government by buying
Mar Bonds.
It is desirable that the American people, by successful
participation in the War Loan in the United States, promote
the growth of the military might of the United States and
help the joint efforts of the Allies to achieve victory over
the bitter enemy within the shortest possible period of
time.
Secretary Morgenthau, in introducing General Belyaev, said:
Ladies and Gentlemen:
We are now approaching the final week of our Third War
Loan Drive. The importance of this drive to "Back the Attack"
is attested by the fact that it was opened by our Commander-
in-Chief, the Prosident himself. Mr. Winston Churchill,
Primo Minister of Great Britain, in buying the first bond,
made clear his firm belief that the succèss of the drive will
appreciably shorten the war.
Today, ladios and gentlomen, we have further testimony
to the vital importance of this undertaking - the financing
of the United Nations' attack. It is testimony from an
equally distinguished and authoritative quarter - a message
to the American people from Marshal Josoph Stalin, Supreme
Commander-in-Chief of the a med forces of the Soviot Union.
It is my pleasure and priviloge to introduce my good
friend, Major General A. I. Belyaev, of the Soviot Government
Purchasing Commission in the United States who brings you
Marshal Stalin's mossage:
Following the reading of Marshal Stalin's mossage, Secrotary Morgenthau
rade the following concluding remarks:
Thank you ,General Bolyaev. I know this important message
from Marshal Stalin will be an inspiration to the American
people. It will help us to equal and even surpass the
$15,000,000,000 goal of our "Back the Attack" War Bond drive.
Regraded Unclassified
138
- 3 -
Wo of the United States are happy that our munitions
and supplies have helped you to repulse the Germans. Every-
body knows that bonds, in large part, paid for those munitions
and supplies. The success of the Third War Loan will guarantee
that our holp will continue and even grow.
The American people are full of admiration for the
magnificent and history-making resistance of the Soviet people
to Nazi aggression.
Treacherously attacked by Germany, you fought a long
delaying action against the onrush of the Gorman military
machine. You lost millions of your sons and daughters. With
your cities and villages bombed and burned you moved whole
industries hundreds of milos behind the Urals. In your
besinged factories, you laid aside your tools to take up guns
and fight the onemy in your vory homes. Never did your spirit
fuil. The vaunted Nazi "wave of the future" shattered on the
rock of your determination.
Today the valiant Red Army is gloriously freeing Soviet
soil, milo by milo, from the clutches of the Nazi invador.
We know that throughout this long period of trial your
people never stopped buying Soviet War Bonds. That should be
en inspiration to us, too.
I vish to thank you General Belyaov - and through you,
Harshal Stalin- for this mossage. It vill, I an sure, bring
home to everyone the real meaning of our drive to "Back the
Attack.
o0o
Regraded Unclassified
139
September 22, 1943
2:24 p.m.
HMJr:
Hello.
John
Sullivan:
Hello, Mr. Secretary.
HMJr:
John, I saw in the paper that you put in a negro as
Acting Collector in Higgins' place.
S:
No, sir. That wae done last week end when I was
away.
HMJr:
Well, I still say you've done it. After all, you're
in charge and -- of Internal Revenue.
S:
Yes.
HMJr:
Aren't you?
S:
Yes, sir.
HMJr:
Now, if you don't leave him in there, and put
somebody over him, you're going to have hell
to pay up there.
S:
I think that there's a very delicate situation.
HMJr:
Well, I mean
S:
He's an exceptionally able man, you know.
HMJr:
I'm not -- I don't know any of the facts, but I've
seen it and now if he's put in as Acting and he
gets all this publicity and then they remove him,
there'll be hell to pay.
S:
I agree with you.
HMJr:
Well, why did they -- I mean, didn't they let you
know?
S:
No. No.
HMJr:
Well.
S:
Joe -- Joe was nominated Thursday night
HMJr:
Yeah.
Regraded Unclassified
140
- 2 -
S:
and apparently telephoned his resignation
Friday morning.
HMJr:
Yeah. Well, you'll -- you'll have to handle it,
John. That's all.
S:
I think 80.
HMJr:
And you'd better when you get into it, if there's
going to be any trouble, you'd better advise with
me.
S:
Oh, I -- I think very definitely, sir, because
HMJr:
That's dynamite.
S:
that's something that the people across the
street will be very much interested in.
HMJr:
Yeah. And have you got anybody -- did that Committee
meet that I appointed on a successor to Helvering?
S:
That's right. We have met and Randolph had his
friend down from Chicago.
HMJr:
Yeah.
S:
My man from Jacksonville had lunch with Dan and
Herb yesterday noon.
HMJr:
Are you making a little progress?
S:
Oh, I haven't suggested anything to him. He didn't
even know he was being considered.
HMJr:
When will this committee have a recommendation for
me?
3:
Oh, I should think we'd be able to meet with you
this afternoon if you want it, Mr
HMJr:
Well, I -- you've got me there. I haven't got the
time.
S:
I see.
HMJr:
Have you people made -- definitely got somebody?
Regraded Unclassified
141
- 3 -
S:
No, we haven't. I think that we generally feel
Wenchel would be very good.
HMJr:
Yeah.
S:
Herb has a little misgiving on him.
HMJr:
I don't want to put Wenchel in there.
S:
Yeah.
HMJr:
Do a little more digging, will you?
S:
Well, yes, but there's a little rumor of geographical
preference across -- expressed across the street
HMJr:
Oh.
S:
....
that has a very considerable bearing on it.
HMJr:
That hasn't reached me.
S:
If we are restricted to one side of the Mississippi
River, that's one thing.
HMJr:
Well, who from the White House
S:
I don't know. I've heard it in two or three places
and I can't pin it down.
HMJr:
I see. Well, if it's as vague as that, we don't have
to pay much attention to it.
S:
Well, that's what I thought.
HMJr:
Well, keep after
S:
Well, I'll keep at them.
HMJr:
Yeah.
S:
Are you going to be back here before Monday?
HMJr:
No.
S:
I see.
HMJr:
No.
Regraded Unclassified
- 4 -
142
S:
Well, I had a memorandum from you on these forms.
HMJr:
Beg pardon?
S:
I had a memorandum from you
HMJr:
Yes.
S:
on the March 15th form
HMJr:
Yeah.
S:
and I talked with Randolph and we're going to
recommend some very strong language in your statement
calling for immediate rectification of that law 80
that this form can be put in the language that an
ordinary person will understand.
HMJr:
Well, I'll be ready for you Monday.
S:
All right, sir. You're not going to New Orleans,
then?
HMJr:
No.
S:
I see. All right, sir.
HMJr:
Thank you.
S:
All right.
Regraded Unclassified
September 22, 1943
143
2:57 p.m.
HMJr:
Hello.
Operator: Go ahead.
HMJr:
Hello.
Robert
McConnell: Yes.
HMJr:
Mr. McConnell, Morgenthau speaking.
M:
Yes, sir.
HMJr:
My apologies, but I've been trying to sell a few
bonds.
M:
Well, you've been doing pretty well, sir.
HMJr:
Fairly well, and when I got around today and had
a minute, they told me you were down home and I
just wanted to call up and say I was sorry that
I was all tied up yesterday.
M:
That's all right. I was just wondering, Mr.
Secretary, if you thought we could do anything...
HMJr:
Yeah.
M:
to see Judge Rosenman.
HMJr:
Well, he's not in town this week.
M:
Oh, I see.
HMJr:
That's the trouble. But I think he's coming back
the end of the week.
M:
Is there anything you'd like to have me do in the
meantime?
HMJr:
Nothing that I know of.
M:
Well, I think we've covered the ground fairly well
and if we could see him, perhaps we can make some
progress.
HMJr:
Well, I'll be back Monday and if I'm here and if he
doesn't see you, I'll call him up myself.
Regraded Unclassified
144
- 2 -
M:
All right, I'll plant to be in then.
HMJr:
Will you do that?
M:
Yes, sir.
HMJr:
Thank you.
M:
Thank you for calling, sir.
HMJr:
Hello.
M:
Yes.
HMJr:
Is there any market down there for hunters?
M:
Oh, no. Nearly everybody that -- you mean to sell
them?
HMJr:
Yes.
M:
Nearly everybody has got them in the field.
HMJr:
I see. That's my situation.
M:
Nobody -- nobody is riding very much now.
HMJr:
No. The boys are away -- they're not -- I didn't know
if there was anybody down there wanted any.
M:
I doubt it very much. There might be -- might be
someplace but I haven't heard of any. Nearly every-
body's gone and there is very little hunting.
HMJr:
Okay. Thank you.
M:
I'll see you next week.
HMJr:
Good.
M:
Bye.
Regraded Unclassified
145
September 22, 1943
3:10 p.m.
TAXES
Present: Mr. Bell
Mr. Gaston
Mr. Paul
Mr. White
Mr. Sullivan
MR. PAUL: Doughton called me this morning and
wants to fix a time. I am seeing him this afternoon
about that and also about cutting down the administrative
amendments to this bill by agreement.
H.M.JR: I will clear you first on whatever you
want.
MR. PAUL: The first thing is a date.
H.M. JR: One of these shot-gun affairs - the longer
you put it off, the better.
MR. PAUL: He wants very much to have - in the first
place, it is fundamental, his desire to get a September
dateline. He wants to have - I think he really is
pressing for next Wednesday now.
H.M.JR: Well, the way it is now, I am to make a
speech Wednesday or Thursday somewhere in the middle of
the United States.
MR. PAUL: Wednesday or Thursday? You are going
to New Orleans Monday, a ren't you?
H.M.JR: No, that is off. I will be here Monday.
MR. PAUL: How about Tuesday? Would you like to
make it Monday or rather have it Tuesday?
Regraded Unclassified
146
- 2 -
H.M.JR: The trouble is, I don't know what to say.
What am I going to go up there and say?
MR. PAUL: Well, we have a lot of that worked out.
We haven't had a chance to talk with you about it.
H.M.JR: I am not blaming you. From the time you
left the White House until today, I don't know whether
you have made any progress with Stam.
MR. PAUL: The progress with Stam - we have given him the
data. You don't expect us to agree. I have given him
all the information.
H.M.JR: I am not trying to be combative. I don't
know whether you are or not.
MR. PAUL: No, I am not. Maybe my sense of humor
failed me, but I didn't think you ever thought I would
make progress with Stam.
H.M.JR: I wasn't being sarcastic; I was being
serious.
MR. GASTON: It is a question of how far we are
authorized to go in outlining a program.
MR. PAUL: The President is going away Thursday.
H.M.JR: Going away? He has been away.
MR. PAUL: He won't be here for five days beginning
Thursday, I was told.
H.M.JR: Beginning with this Thursday?
MR. PAUL: He called off a date - the reason I heard
it is because he called off a date with Murray Thursday.
H.M.JR: That doesn't mean anything. Most likely
he means to get back here Friday or Saturday. He has
been away. He has been up in the country. I think he
went up last Thursday night.
Regraded Unclassified
147
- 3 -
Well, let me put it this way. Where we stand is
this, we have got this impossible . three alternatives.
MR. PAUL: Two, really.
H.M.JR: But putting in the one of the President's
MR. PAUL: That is really a refinement of one of
them.
H.M.JR: I am not going to march up on the Hill and
present the Social Security one plus the alternative of
post-war credit. I didn't get it, that the President
said that was the final decision. You can correct me.
MR. GASTON: It seems to me it was left pretty vague
at both meetings.
MR. PAUL: It was left vague all right.
H.M.JR: Where are they meeting?
MR. PAUL: At Doughton's little office in the Capitol
building. You have been up there.
H.M.JR: I don't know - I mean I have never been in
a more impossible position.
MR. WHITE: What is the purpose of your going up?
MR. GASTON: To start consideration of the tax bill.
MR. WHITE: It always has to begin with his appearance?
MR. GASTON: It usually does, with recommendations by
the Secretary of the Treasury. It is a traditional re-
sponsibility of the Secretary of the Treasury to open
those hearings.
MR. WHITE: Is it impossible in the President's frame
of mind to start them off with the Social Security recom-
mendation and not the others?
Regraded Unclassified
148
- 4 -
H.M.JR: Then the President doesn't want us to do
the health thing, and that is the one thing that CIO
wants. Is that right?
MR. PAUL: That is right. The sentiment of the
meeting - yesterday I had a meeting with Murray and
delegates of the Steel Workers Union, and I can tell
you 8 lot about it. But certainly, generally, they were
in favor of the Social Security.
MR. GASTON: All the union groups are. I sent Randolph
a magazine of an independent union, the Federal Telephone
Workers. They are a hundred percent for it.
H.M.JR: Just so you know what I am doing, this
message of Stalin dropped in my lap yesterday. I don't
know if you know about it.
MR. PAUL: Message from whom?
H.M.JR: Stalin.
MR. PAUL: I didn't know enything about it.
H.M.JR: Then we had to go back and forth late last
night and this morning, and we cleaned it up at quarter
past one today.
Now, I have all day tomorrow in New York, plus a
speech tomorrow night, which isn't yet written - half an
hour on the radio.
MR. PAUL: That is 8 long time on the radio.
H.M.JR: There will be others with me.
Then I am going to go up and recuperate & little bit.
Middle West. Then I am finished with this, you see. I
Then they want me to go Wednesday and Thursday to the
an just thinking out loud. Quite frankly, I don't know how
you feel - I am very loath to go up without some message
from the President, something to talk about - post-war
credit, and all the rest. In the first place, I don't
Regraded Unclassified
149
- 5 -
believe in it. It isn't just the war bond thing. I
would much rather have it through taxes than I would
through post-war credit. If we tax the people, it may
slow down production; then we go through the same evolution
we did before.
(Mr. Bell entered the conference.)
H.M.JR: So when you get all washed up and done, I
am not giving myself time to turn around. I don't care
what they say about me on the Hill; I will be ready to go
up on the 4th. That is what we said. When I am here
Monday or Tuesday, we can talk a bit.
MR. WHITE: There may be even a chance, might there
not, by delaying to--
H.M.JR: Excuse me, he (Paul) has to go up and see
George and Doughton. They are putting him on the spot as
to when I go up on the Hill.
MR. PAUL: We did say you would appear between the
27th and the 29th. We told you about it. Of course,
that was before a lot of these engagements.
H.M.JR: Yes, and I got a speech now - the Navy would
very much like to have me make one in the Middle West, in
connection with some of their shipyards in the Middle West.
That is for them. I mean, I asked them where they wanted -
Admiral King - after sending three people over here, we
decided the best place for me to go was to do this thing
in connection with invasion barges, and build the whole
story about invasion barges and the attack, and all that.
wonderful. There is enough truth in it - it was initiated
They have written the speech for me, and it is a bang -
by me, but they have come through on information, loss
of planes, loss of ships - the whole business. The bottle-
necks are the invasion barges. They want help on them.
They think it will be good. They have given me wonderful
stuff.
Regraded Unclassified
150
- 6 -
MR. SULLIVAN: Eubank?
H.M.JR: No, no, Admiral Schuirmann, who is chief
of Naval Intelligence. The reason King picked him was
he said if it gets by him, nobody can object on security.
And with him came somebody from their Publicity Department.
No, no, this boy is a honey - one of the smartest admirals
1 have met in a long time.
MR. GASTON: Oh, that is Pinky Schuirmann.
H.M.JR: Yes. Do you know him?
MR. GASTON: Yes.
H.M.JR: Isn't he smart?
MR. GASTON: Yes.
H.M.JR: That is the fellow who is doing the job.
He is head of Naval Intelligence, isn't he?
MR. GASTON: I didn't know he was.
MR. BELL: When does the speech take place?
H.M.JR: Wednesday or Thursday next week.
MR. BELL: No date set?
H.M.JR: No. What I am saying is - I mean, just a
matter of turning around - I don't care if they do get
a little angry at me. I have got this whole thing, and
8 matter of three days - I don't know what the hell to
do. I can go up the way you could if you were indepen-
dent Randolph Paul, & private citizen - you could present
& tax bill, and Henry Morgenthau, Jr. - I can present
one, too, but to do one that is going to try to please
Roosevelt and Byrnes and Vinson and Stam - your palsy-
walsy - don't hit me-- (Laughter)
MR. PAUL: I realize that was sarcasm. (Laughter)
Regraded Unclassified
151
- 7 -
H.M.JR: That was. (Laughter)
I just don't know what to do.
MR. BELL: You mean you don't know what you are going
to say up there as to a program? You have no approval
across the street?
H.M.JR: If we take the little thing the President
gave us, I just think it doesn't make sense. Either
Paul or I have got to explain the blankety blank thing
and it is very difficult. Then if you are going to do
Social Security and want to do it to please organized
labor, you take the one thing out that organized labor
wants, and that is health. When you take health out
you take out a billion and a half, don't you?
MR. PAUL: Yes.
MR. WHITE: If the labor groups are so strong for
it, is there a chance to come back at the President and
try to get him to put it in again?
II.M.JR: That is what Harry Hopkins says to do.
MR. PAUL: That is what I was hoping Murray and Green
would do this Thursday, but the President cancelled his
appointment.
MR. WHITE: It would pay to wait, maybe.
H.M. JR: I just don't - and Hopkins said he was
going to go to work on it. Next to his bed he had this
book I gave him. I was over there yesterday. He talked
to Lubin and he is in our corner a hundred percent.
MR. PAUL: I will go up and tell George - I had
better put it solely on the ground of this statement of
yours - bond speeches.
MR. BELL: The campaign.
Regraded Unclassified
152
- 8 -
MR. SULLIVAN: Series of speeches.
H.M.JR: You can tell him I am making three speeches
a week. It is 8. regular campaign. Now, I can't see -
let's say I was willing to go up on the 27th to the 30th,
I don't see that three days can kill or break this
country on the tax front, but it is a major break on
this War Bond thing. I am absolutely just as flat as a
steamroller - I have been going under this terrific
pressure.
Just to digress one minute - just take one second
to show you people what has been going on behind the
scene - yesterday I called up this man, the second
man over in Elmer Davis' shop - Palmer Hoyt - "Greatest
feat of the year - greatest news story of the year -
got to do it at noon tomorrow - can't wait. You have
got to do it." He gets me thirty stations on the Home
and Farm Hour and that is all. We have got to get all
the radio hookup - had to get the newsreels - he said
he would get the band. The band he got didn't know how
to play the Russian national anthem. Every step that was
taken we had to take - and I took part in it.
I had to get Coca Cola down here to put their
influence to work to get me time on the radio, and with
their influence - the biggest buyer of time - Mr. Coca
Cola got me on the radio at noon today.
MR. GASTON: Their wagon drove in there while you
were speaking. (Laughter)
H.M. JR: If they did, by gawd, they earned it.
(Laughter) Believe me, I am against the one-cent tax
on Coca Cola. (Laughter)
Anyway, I am just trying to tell you I can't do any
more than I am unless I go to a hospital.
MR. WHITE: Put it on the basis of the campaign - the
winding up.
Regraded Unclassified
153
- 9 -
MR. PAUL: I will just have to go up and shoot the
works on it, that is all.
H.M.JR: You will?
MR. PAUL: I mean, I will go up now.
H.M.JR: And tell them - you say, "Morgenthau is
going day and night on this thing" - which is gawd's
truth - "And he just can't stop on this thing until
this campaign is over."
Now, you can put it squarely on the War Bond campaign.
MR. GASTON: I was wondering if they couldn't start
anyway without a formal statement. That is, have you and
Stam informally on the excise taxes and two or three
other things like that.
H.M.JR: Excuse me--
MR. PAUL: That won't work.
H.M.JR: Excuse me, please. Am I making a mistake?
MR. SULLIVAN: I don't think you are, Mr. Secretary.
The situation you are in now is that if you go up Monday
you are not going to be prepared; you are going to have
to present a program in which you don't believe.
If you go up & week from Monday, they may be offended,
but in addition to having had an opportunity to persuade
the President to adopt a sensible program, you will have
a chance to do your home work and I think that it is better
to run the risk of delaying it a week and knowing your
stuff when you go.
Now, this last suggestion of Herb's about letting
somebody else open it and you come in later would not be
as dangerous in other years as it is this year. There
has been so much talk in the papers as to who is going to
run this show, and if, for the first time in ten years,
the Secretary doesn't appear--
Regraded Unclassified
154
- 10 -
MR. PAUL: They would ask me all kinds of questions
about the rest of it. They wouldn't keep within bounds.
H.M.JR: Do you think I am making a mistake, Dan?
MR. BELL: No, but I was wondering if maybe the fact
that the thing hadn't been cleared at the White House
might also be used. In addition to your heavy program
on the bond campaign, couldn't you say, "Furthermore, I
haven't cleared it with the President"?
MR. SULLIVAN: "And the President is out of town."
MR. PAUL: When will he be back?
H.M.JR: He has been out all week. I haven't been
able to talk to him.
MR. PAUL: I think I could use that to good effect.
H.M.JR: He has been out of town all week.
MR. BELL: That is very important, it seems to me.
MR. GASTON: Yes.
MR. PAUL: Do you authorize me to use that?
H.M.JR: Yes.
MR. PAUL: All right. If I can use that, I can get
the time.
H.M.JR: If that doesn't work, I will get Coca Cola
to help you, and that is not so funny, either. (Laughter)
Regraded Unclassified
155
Fred Smi th
September 22, 1943
George Albee
The Secretary.
I want David Levy to handle the broadcast from
6:30 to 7:00 in New York Thursday night. I think we ought
to have a rehearsal before hand.
Finished-
Regraded Unclassified
156
September 22, 1943.
Dear Dave:
I want to let you know that I have had the
very finest reports about our Monticello program,
including an enthusiastic letter from Colonel
Drake of Gulf 011, copy of which is enclosed.
As at Cedar Rapids, you did a great job and
I want to thank you for it. I hope to be able to
work under your direction again.
Sincerely,
(Signed) H. Mergenthan, Jr.
Secretary of the Treasury
Mr. David Levy
Young & Rubicam, Inc.
285 Madison Avenue
New York, N. Y.
Enclosure: photo of the from
mi. Drake dt 9/13/43
Mr
Regraded Unclassified
157
Redone. -
September 18, 1943
Dear Dave:
From all reports, our Monticello program
turned out to be very effective.
I think its effectiveness was due to the
hard work you and your crew put into it. And
I think it was due, to a large degree, to your
patience with me.
I hope you will tell your assistants, for
me, that they are the finest radio crew that
I have ever seen.
I will look forward to another "We the
People" in the future.
Sincerely,
Mr. David Levy
Young & Rubicam, Inc.
285 Madison Avenue
New York, New York
FS:gr
9-16-43
**
Regraded Unclassified
THIRD WAS LOAN TEEOF
158
il
Den America, Robert Young, Kay
*
158
Kreen, Buros and Allen, Edgar
Bergen, Ronald Colman, Akim
Tamiroff, Charleg Boyer, George
C
Murphy, Jimmy Durante, Jane
5:
rell, Blog Croshy, Gorden
36
akins
W
Director: George Zachary
Writers: Norman Corwin, Ranald
st
Mandougall, Carroll Carroll, Glen
in
Wheston, Manny Manhelm, Harry
Balley and Liperett and Davis
m
60 Mins, Wed., 0 p. m., Sept. I
p
ti
All Networks
e
The gathering of this clan was for
fle
the purpose of helping our Treasury
01
Department Infuse a little glamorous
et
oomph Into the launching of the
G
Third War Loan drive, Show busi-
E
ness' part in the event was distin-
as
guished by good organization, sound
E
radio procedure and all-around in-
in
fectious showmanship.
al
Unlike the usual toss-together of
is
this type program. the Third Loan
he
teeoff had a continuity that tied
every Item on the bill into a cohe-
as
sive, logical narrative. The telling
di
was entertaining, informative and in-
do
spiring. The program set out to tell
fr
by way of dramatic sketch, comedy
ta
patter and aong "how far we have
to
gone" In the nigh two years of war.
ML
In the looking backward there was
p
recalled to the listener the herole
the
stand on Bataen (Robert Young): the
to
spirit that brought forth Praise the
o
Lord and Pass the Ammunition (Kay
st
Kyser's orchestra); an amusing side-
a
light on the housing shortage (Burns
la
and Allen); a bit of lytical longing
on the home front (Dinah Shore)
how the auto driving restrictions
Il
hypoed the importance of the bicy-
e
cle (Edgar Bergen): the spirit that
$
draw the Allies together in the North
African battle (Ronald Colman,
h
Charles Boyer, Akim Tamiroff and
I
G 1 Murphy); an adventure of
in
tw
a
en in an upper berth resulting
from the transportation shortage
(Jimmy Durante), and woman's Im-
portance in the American argenal
(Jane Darnell and Mercedes Mac-
Cambridge), Despite the pot pourri
to
of moods and entertainment facets,
the whole thing had the aspect of an
adroitly filled mosale, The timing
was faultless, which fact gave special
emphasis to the skillful direction- of
George Zachary.
Bing Crosby had the closing spot
on this Hellywood-originated bill
Cagney, Secretary of the Treasury
With the support of a chorus, Crosby
Henry A. Morgenthau. Jr., and Pres-
Intoned the current drive's theme
ident Roosevelt. Cagney told about
song. "Get on the Road to Victory.
the latest 'Hollywood Cavalcade that
All the comedy passages were good,
had been put at the disposal of the
3
but Durante's monolog packed an
drive, and Introduced Morgenthau,
added pinch of TNT. Gordon Jen-
whose mike delivery now rates an
kins' orchestra accompaniment was
about the best among his Cabinet
of marked merit,
confreres, and a rich relief when
The final 15 minutes of the hour
compared to the general run of
brought from Washington James Washington politicos.
Regraded Unclassified
159
YOUNG 5 RUBICAM, INC.
Advertising
NEW YORK CHICAGO - DETROIT - SAN FRANCISCO HOLLYWOOD . MONTREAL . TORONTO
NEW YORK 285 Madison duenue
September 18, 1943.
Yr. Henry Morgentheu, Jr.,
Secretary of the Trensury,
Treasury Building,
Weshington, D.C.
My doar Mr. Morgeathau:
I an enclosing a clipping from = current issue of "Varioty",
the letter portion of which I think will be of interest to you.
Is t night I caught your brondcast from St. Louis and I would
like to add my compliments to the many you must have received
after the speech. As Young and Rubicam would put It, the con-
tent of the speech carried "terrific impact" and 5,5 "Variety"
would put it, the delivery of the speech was "socko".
I na sure you must have seen some of the fine reaction to the
Charlottesville program. In New York the "World-Telegram" and
"Doily News" were particularly complimentory. The consonsus
of opinion here was that Charlottesville was far more impressive
then Cedar Rapids.
With kindest regards,
Sincerely
YOUNG & RUBICAM, INS
Director "Ne the Peopl
Devid Levy
egs
enc.
Regraded Unclassified
160
September 22, 1943.
My dear Colonel Drake:
Naturally I am immensely pleased by your
comment on the Monticello program. I too thought
it should be appealing and I am happy to have the
assurance of your judgment.
A large part of such effectiveness as it had
is, I think, due to the adaptability of the "We
the People" type of program to the message we are
attempting to convey. But further than that we
are deeply indebted to the members of your organi-
zation for their devotion and artistry in putting
together and directing & program which said 80
clearly what we wanted to say.
I am personally grateful to each of them and
to you for giving us the air time and the facili-
ties for doing the job.
Sincerely,
(Signed) H. Morgenthau, dr.
Secretary of the Treasury
Colonel J. F. Drake
President, Gulf Oil Corporation
Gulf Building
Pittsburgh, Pennsylvania
wis
Regraded Unclassified
161
September 18, 1943
Dear Colonel Drake:
I want to thank you for your letter.
One reason for the success of our program
was the cooperation and enthusiasm of the
people who worked on it and produced it. I
think the Bond Drive is fortunate to have the
assistance of these people who 80 clearly
understand what we are trying to do. And I
want you to know that Gulf made a particularly
important contribution by turning its entire
program to doing this job - and by giving us
regular help on "We the People" for the duration
of the drive.
I hope we will be able to work together
again in the Fourth War Loan.
Sincerely,
Colonel J. F. Drake,
President,
Gulf 011 Corporation,
Gulf Building,
Pittsburgh, Pennsylvania.
FS:gr
9-16-43
Regraded Unclassified
162
thund the Bind
Dear Colonel Drake:
I want to thank you for your letter.
one
I should like to eno reason for the success of our
program was certainly the cooperation and enthusiasm of the people
who worked on it and produced it. I consider myself very fortunate
to have the assistance of these people, who so clearly understand
what we are trying to do. and Gulf swart you that
ma it made
making a particularly ey important
contribution by letting us turn the entire program to doing this
job, which I consider to be vitally important.
I hope we will be able to work together again in the Fourth
War Loan.
Sincerely,
and "We as given no frame
Colonel J. F. Drake,
a The Perper nothilt
Gulf me drive Pr the on duration -
Regraded Unclassified
163
GULF OIL CORPORATION
OFFICE OF THE PRESIDENT
GULF BUILDING
PITTSBURGH. PA.
September 13, 1943
My dear Mr. Morgenthau:
I take this opportunity to congratulate you upon the
excellent manner in which you discharged the duties of Master
of Ceremonies upon "WE, THE PEOPLE" program last evening. It
was one of the most effective and thrilling programs to which
I have ever listened, and I feel certain that it must have
made a profound impression upon the many who listened to it.
It must have been a source of inspiration to all listeners
that you took the time and made the effort to go to "Monticello"
in order to give the splendid background to the broadcast.
Needless to say the officials of our company are happy that
they have had the privilege of being of service in this very
important War Bond Campaign now under way.
Sincerely yours,
Honorable Henry Morgenthau, Jr.
Secretary of the Treasury
Washington
D. C.
Regraded Unclassified
164
September 22, 1943.
Dear Mr. Anderson:
Thank you for your letter, and for its
interesting enclosures. I am glad to have
the clipping telling of the exciting events
of National Stock Yards Day, and also
appreciate the gift of the pencil with which
in Mechabis
you did such valiant work during the course
of the Bond sales.
fib-
I very much enjoyed my visit to the
Stock Yards, and thank you again for the
cordial welcome that was given me.
Sincerely,
(Signed) H. Morgenthas, 37.
Mr. Postmaster, Dorsey B. Anderson,
National Stock Yards, Illinois.
Regraded Unclassified
165
H. Boyd
D. Berry Anderson
Gordon I. Bennett
POSTMASTER
POSTMASTER
FOREMAN
United States Post Office
NATIONAL STOCK YARDS, ILLINOIS
CLASS
IN REPLYING
MENTION INITIALS AND DATE
September 18, 1943.
This citice handles the
part volume of business
= office in America,
budering population.
Hon. Henry W. Morgenthau, Jr.,
We are 18 inches from
largest bank in Illinois,
Secretary of the Treasury,
taside of Chicago.
Washington, D. C.
Ve une 18 inches from
largest horse and mule
bill in America.
My dear Mr. Morgenthau:
Seving bond sales one
Den each year our cim.
No customer over waits
or windows.
I realize that you have drewn blood
Vo and back of our
from many men in our grand and glorious country, but
introact, body and
in our desperate duel at National Stock Yards, Illinois
il
I vas the victor by delivering the first injury.
De tecripta are 85 por
pell
1. Louis, Mo, is just
tas the river. Drive
Now, to prove that I love you and all
bugh our yards; we
is forgiven I am sending to you my weapon under separate
W a speed limits.
cover. I am yours with all good vishes for you and yours.
you meet with disaster
pur you away gently
Michal test.
may ways this is
Fectess office in
Witz
Sincerely,
a deubt ask K. P. or
Fr active to carry out
orders of Hon. Frank C.
Size and his capable
God 40 have the world
he gave his only be-
be - that whosoever
with or his shall not
Postmaster.
tab life, but have overlast-
because political lead-
Hold have the bless-
= they live
of the community In
Regraded Unclassified
111
Lanis Daily Livertock Reforter
REPORTER
9/17/43
CORN SELT FARM DAILIES
AGRICULTURAL NEW# SERVICE
$5.00 PER YEAR
National Stock Yards Day
Presents "King Neptune"
In Great War Bond Drive
Pig Tops Market for All Time at $1,400,000 Per Cwt.
Selling for Total of $5,600,000 In Third War Loan
Drive - Treasurer Morgenthau Opens Auction.
"King Neptune," regal purebred Hereford hog which has nl-
ready sold for more than $5,000,000 in war bonds in the past few
weeks when his owner, Chief Petty Officer Don Lingle, havy recruit*
ing official at Marion, III, presented him in numerous war bond
driv over the state, reigned supreme today nver the highest Na
tion, Stock Yards, III., hog market ever known at this great ter-
minal market. The King topped the day's market at $1,400,000 per
ewt,
166
HENRY W. MORGENTHAU, JR.
Secretary of the Treasury Henry
W. Morgenthau. Jr., lent the influ-
ence of his presence at the anle, In
St. Louis for assisting in the Third
War Loan drive by his presence, he
tonk the opportunity to see the sale
of the world famous "King Neptune"
and to enjoy the encouragement that
comes to one bearing such heavy TA-
sponalbility which comes from the
hearly response with which the Na-
tional Stock Yarda interests display
In the purchase of war honds to
"back the attack."
"King Neptune" never sold at a
higher price than that be command-
ed. today when be finally was knock-
ed down by Auctioneer L. Orard
Bitter of Anna. III., to State Treasur-
er William G. Stratton on his bid of
$1,500,000 for the account of the
State of Illinois and running the
total sales of the day to the great
sum of $5,800,000 to put over the Na-
Conal Stock Yards quota for the
Third War Loan drive.
Recording the orders for bonds all
they poured In during the sale were
members of the East St. Louis Jun-
lor Wednesday Club under the direc-
tion of their Chairman Mrs. Frank
Lawler and their Co-Chairman Mine
Pauline Clausen. This elub has been
very active in the promotion of the
War Loan drive in the various com-
munities of St. Dair county. Their
eastumes, topped by bright red costs
today lent cheer tn the throng of
apeciators participating in the sale.
Regraded Unclassified
167
25
SEP 22 1943
My dear Madam Secretary:
Reference is unde to your letter of September 14, 1943.
and to the enclosed estimate of cost and plan of operation
for the preposed survey of income, spending and saving of
American families.
This vill inform you that arrangements have been made
for the imediate transfer of funds in the amount of $250,000
to the Bureau of Labor Statistics from the Treasury's appro-
priation "Expenses of Loans, Act of September 24, 1917, as
Anended and Extended". This amount representa the ostimated
cost of the survey covering data for the July-September
quarter of 1943. It has been decided to make no provision
at present for extending the survey beyond that period.
Details of the transfer of funds are being handled for the
Treasury by the Commissioner of the Public Debt.
The use of Expenses of Leans funds for the purpose of
the survey has been approved informally by Representative
Louis Ludlew and Representative John Taber, the ranking -
bers of the Treasury Sub-Committee of the Appropriations
Committee of the House of Representatives, as well as by the
Director of the Bureau of the Budget. In giving his approval,
Representative Taber stipulated particularly that the survey
be carried out with as small an expenditure as possible and
that plans be made 60 as to keep the cost well under the
$250,000 provided. I shall appreciate it if your staff will
keep this request in mind, and vill transmit it also to the
members of the staffs of the Bureau of Husan Mutrition and
Home Teenomics and the Bureau of Agricultural Roonomice who
may be concerned with the survey.
It is understood that with arrangements completed at
this date for the transfer of funds your staff vill be in a
position to begin field work on the survey by October 7. 1943,
that preliminary tabulation of data for the first one-quarter
Regraded Unclassified
168
2 - Homerable Frances Perkins
of the families will be available to the Treasury by November 22,
1943, and that the preliminary tabulation for all families will
be completed by January 15. 1944.
The premptness with which this information can be provided
will make it particularly useful in the formulation of Treasury
fiscal pelicies. and I appreciate very such the ready coopera-
tien of yourself and your staff in handling the survey for us.
Sincerely,
(Signed) H. Mergenthan, Jr.
Monorable Trances Perkins
Secretary of Laber
Washington, D. 0.
AMM:mc
9-21-43
Regraded Unclassified
169
DEPARTMENT OF LABOR
OFFICE OF THE SECRETARY
WASHINGTON 25
SEP 1 4 1943
The Monorable Henry Morgenthau, Jr.
The Secretary of the Treasury
Treasury Department
Washington, D. C.
J dear Mr. Secretary:
This is in reply to your letter of September 2,
regarding your letter to the Director of the Bureau of the
Budget urging his favorable consideration of a request to be
submitted for funds with which to conduct a survey of income,
spending and saving of American families during the balance
of the year 1943 and the first half of 1944.
The Department of Labor will be very glad indeed to
conduct such a study, since it is also concerned with many of
the problems faced by American families during wartine.
In the interval since your request was made, members
of the staff of the Bureau of Labor Statistios have been in
consultation with members of your staff regarding the specific
neods of the Treasury Department. In accordance with their
plans, there is submitted for transmission to the Bureau of
the Dudget by your Department an estimate of the cost of this
study, together with a description of the plan of operations.
If results are to be obtained within the time limits
which you desire, it is urgent that prompt approval be given
the transfer of funds.
Marco Sincerely yours,
Regraded Unclassified
(COPY)
170
September 2, 1943
My dear Madam Secretary:
I am enclosing a copy of By letter of this date,
addressed to the Director of the Bureau of the Budget,
urging his favorable consideration of requests to be
submitted by the Department of Labor for funds with which
to conduct a survey of the income, spending, and saving
of a given number of families during the third quarter of
1943 and succeeding periods.
Such survey, as you know, is essential to the
Treasury Department in the formulation of tax policy
and methods of war borrowing. The Treasury will be
pleased to assist the officials of your Department with
the view of obtaining approval of this important project.
Sincerely,
(Signed) H. Morgenthau, Jr.
Honorable Frances Perkins,
Secretary of Labor,
Washington, D. C.
Regraded Unclassified
171
September 2, 1943
Dear Mr. Smith:
I have requested the Department of Labor to make ap-
plication to you for funds for the purpose of enabling
the Bureau of Labor Statistics to make a survey of the
income, spending, and saving of a sample of about 3500
families during the third quarter of 1943. The Bureau of
Labor Statistics would conduct the survey in urban regions,
and would utilize the services of the Bureau of Home
Economics, Department of Agriculture, in rural areas.
I am writing this letter to urge that the Department
of Labor's application be given favorable consideration,
as the results of the proposed survey are essential to
the Treasury Department.
I trust the funds can be made available promptly
from the President's Emergency Fund. I understand that
the amount needed for this study of the third quarter is
approximately $200,000.
The Treasury Department is constantly confronted
with the necessity of making policy decisions involving many
billions of 'dollars in which the issue turns largely upon
the distribution of income by income classes, upon recent
changes in the incomes of individuals and family groups,
upon the kinds of things that people in the different in-
come groups are spending their money on, and upon the
amount of savings in different income groups and how
these savings are being held or invested. You will readily
appreciate that the more abundant and the more accurate
the available information of this type, the better will
be our decisions with respect to tax policy and to the
methods of war borrowing.
The issues just described are 80 large and so vital
to the welfare of the country that I feel that I would be
doing less than my full duty if I neglected any method of
securing the required information at reasonable expense.
Regraded Unclassified
172
- 2 -
In the present case, it seems to me that the Bureau of
Labor Statistics and the Bureau of Home Economics are
both exceptionally fitted to obtain the information
required and, because of previous work which they have
done in the field, they are in a position to go forward
without delay.
I understand that deficiency funds will shortly be
requested to place this survey on a continuing basis,
securing information for the fourth quarter and succeeding
periods. I should like to urge that such deficiency
requests also be given your favorable consideration as
I believe that a continuing survey is definitely needed
for the year-by-year formulation of sound fiscal policy.
Sincerely,
(Signed) H. Morgenthau, Jr.
Honorable Harold D. Smith
Director, Bureau of the Budget
Executive Offices of the President
Washington, D. C.
Regraded Unclassified
173
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE September 22, 1943
TO
FROM
Mr. Haas
Secretary M Morgenthau
Subject Current Developments in the High-grade Security
Markets
I. Prices and Yields of Government
Securities Show Little Change
Prices of Government securities moved within a narrow
range during the last calendar week. Except for the par-
11:11y tex-exemot 2's of 1953-55, which declined 3/32, no
issue moved more than 2/32 in either direction.
II. Decline in Federal Reserve System Holdings
of Government Securities
The Government security portfolio of the Federal Reserve
System docreased by $674 millions during the week ended
Saturday. The bulk of the decrease W&B accounted for by a
reduction of Treasury bill holdings by 440 millions. The
whole amount of special certificates acquired directly from
the Treasury was also liquidated, resulting in a net decrease
of $243 millions for the week. Transactions in other Govern-
ment securities were negligible on balance.
The reduction in bill holdings reflected, in the main,
the relaxing of pressure on member bank reserves as B. result
of the transfer of deposits, incident to the Third War Loan,
from private accounts, requiring reserves, to War Loan ac-
counts, against which no reserves are required. Banks were
thus enabled to replenish their holdings of Treasury bills,
which the posted rate enables them to treat as the equivalent
of reserves.
III. Sharp Rise of Excess Reserves
During the week ended Wednesday, September 15, excess
reserves of member banks rose $613 millions to 32,051 millions,
the highest since May 5. An importent factor in this sharp
increase Was a decrease of 8235 millions in required reserves
due principally to the transfer of deposits from private ac-
counts to War Loan accounts. Actually, the decline in required
reserves due solely to transfers of deposits to War Loan
Regraded Unclassified
174
Secretary Morgenthau - 2
accounts was much greater; but it was offset in part by an
expansion of bank credit which amounted during the week, in
the case of weekly reporting member banks in leading cities,
to $2.5 billions. The composition of this expansion 18
shown below:
(Millions of dollars)
Commercial loans
+246
Loans to brokers and dealers
+499
Other loans for purchasing or
carrying securities
+257
All other loans
+83
Treasury bills
+697
Treasury certificates of
indebtedness
+453
Treasury notes
+11
Treasury bonds
+201
Other securities
+44
+2,491
IV. Still No Evidence of Major Inter-district
Deposit Movements
Weekly figures through September 15 show no important
shifts of deposits about the country in connection with the
Third War Loan. The New York Federal Reserve District gained
$1.2 billions of deposits during the week, private deposits
decreasing $1.9 billions; while United States Government de-
posits increased by $3.1 billions. Practically all of this
movement occurred in New York City, the net changes in de-
posits of banks elsewhere in the district being negligible.
All districts lost private deposits while gaining greater
amounts of Government deposits, but there are no indications
of abnormal changes in particular districts.
V. SEC Estimates of Liquid Savings in the
Second Quarter of 1943
during the second quarter of 1943 was invested in Government
About 46 percent of the liquid savings of individuals
securities, according to estimates released by the SEC last
Thursday. This figure, which reflects the results of the
Regraded Unclassified
175
Secretary Morgenthau - 3
Second War Loan, compares with 29 percent invested in Govern-
ment securities during the first quarter of this year, and is
the highest proportion so invested since the first quarter of
1942. The dollar amount of such investment -- $4.2 billions --
was about one-third greater than in any quarter since the be-
ginning of 1942. The next best performance in this respect
W&S $3.3 billions during the fourth quarter of 1942, the
quarter in which the First War Loan occurred.
Total liquid savings of individuals and the amount and
proportion invested in Government securities, according to
the SEC, since the beginning of 1942, are shown in the follow-
ing table:
:
Total
:
Invested in Government
:
liquid :
securities
: savings :
Amount
:
Percent
(Billions of dollars)
1942
First quarter
3.8
2.2
58
Second quarter
6.0
2.0
33
Third quarter
9.3
2.7
29
Fourth quarter
10.5
3.3
31
1943 First quarter
9.1
2.6
29
Second quarter
9.1
4.2
46
As the accumulation of cash balances (currency and bank
deposits) and the purchase of Government securities have been
the two principal uses for liquid savings during the war
period, the increase in Government security purchases during
the second- quarter was reflected in a substantial decrease in
the proportion of current savings going into currency and bank
deposits. The proportion of liquid savings going into currency
and bank deposits during each quarter of the war period 18
shown in the following table:
:
Total :
Placed in currency and
:
liquid :
bank deposits
: savings :
Amount
:
Percent
(Billions of dollars)
1942
First quarter
3.8
-0.2
-5
Second quarter
6.0
2.1
35
Third quarter
9.3
4.4
47
Fourth quarter
10.5
5.4
51
1943 First quarter
9.1
4.0
44
Second quarter
9.1
2.9
32
Regraded Unclassified
176
25
SEP 22 1943
Dear Jesse:
Reference is rade to our telephone conversation of
September 15, 1943 regarding the release of 109,000 of
pounds sterling held in a blecked sterling account of
3. Charles B. MeDaniel, dr. at the National City Bank
of See York in London.
No discussed the matter with Sir lavid Baley before
his departure to London the latter part of August. A
his request, we submitted a formal inquiry which - cabled
on September 1 to the American Enbessy in Lenden for trans-
mittal to the British Treasury. To have just received a
reply in which the British Treasury states that Mr. MeDaniel
did not deliver any france against the pounds sterling in
question and that this sterling is, in effect, the property
of the Felish Government. We are investigating further and
will keep you informed.
Sincerely,
(Signed) Henry
The Henerable Jesse Jones,
Secretary of Commerce.
THE : ff 9/21/43
Regraded Unclassified
177
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE Sept. 22, 1943
TO
Secretary Morgenthau
FROM Mr. White
Subject: Some matters before us that I should like to call to
your attention
1. Determination of the French franc rate. The British
and the Army are pressing us for our recommendation as to the
franc rate and the type of currency to be used by the Allied
forces upon invading France. We have been discussing the
matter at some length within the Treasury and we are now ready
to submit our recommendations for your consideration. Mc0loy
has called a meeting for Friday morning with State and the
British participating. I should very much like to discuss the
matter with you before that meeting.
2. The Army is also pressing us for recommendations with
respect to similar matters in Belgium, Holland, Norway and
Greece. We are ready with our recommendations on those too
but if you do not have time to discuss them we can, I believe,
get McCloy to postpone discussion of those particular points.
3. Renewal of the $50 million Chinese stabilization loan.
We have had a number of conferences with the Chinese delegation
on this matter. The provisions in the earlier stabilization
loan which the Chinese now want changed are not as drastic as
they had led us to believe and we should find no difficulty
in coming to an agreement with them. However, we have serious
doubts whether we ought to renew the agreement with the present
official dollar-yuan rate being so much out of line with its
real value. We should like to discuss our recommendation with
you soon inasmuch as the Chinese are pressing us for a deci-
sion. This matter, however, can wait until next week. We
may even be able to postpone it until you return. We would
like to stall as long as possible but don't wish to do so
until we have discussed the matter with you inasmuch as the
Chinese are pressing us for action.
for the 4. Netherlands remains unsettled but both the Army and
The Dutch request for lend-lease of silver coins
the Dutch Government are pushing us. I think that we are
rather in a weak position to refuse the Dutch request and I
should like to raise this question with you again. We have,
upon investigation, found that they are asking for more
silver than they have ever had in circulation. In our last
Regraded Unclassified
178
Division of Monetary
- 2 -
Research
discussion with them they agreed that 17 million ounces would
be adequate instead of the 45 million they originally re-
quested. The Army is leaving this decision wholly to us but
the time has arrived when we have got to say either no or yes,
5. International Bank Proposal. We have had & number of
extended conferences on the international bank plan proposal
and are making more progress than I expected and are finding
the task of agreement among the various technicians easier than
I had expected. I believe now that it is desirable to have a
meeting with the Congressional committees certainly before you
60 and to present to them the Bank Plan though the discussion
at the meeting can encompass both the revised Fund Plan and
the Bank.
There are two hurdles which must be crossed if possible
within the next few days: (1) calling of your Cabinet Com-
mittee -- Eccles, Crowley, Jones and Berle to approve the plan
as a committee, (2) get the President's approval to inform the
Congressional committees of the tentative proposal and to send
it to the respective Ministers of Finance as an unofficial
technical proposal for their consideration just as we did with
the International Stabilization Fund proposal.
We are having our final meeting of the technical committee
this afternoon and I am hoping you can arrange for a meeting
with your Cabinet group Friday afternoon if possible, 1f not,
Monday or Tuesday morning of next week.
If you obtain the green light from the President on the
Bank Plan we propose to print copies of the plan with a fore-
word from you which we are preparing similar in character to
the pamphlet on the International Stabilization Fund.
6. Conferences on the International Stabilization Fund
proposal. We have had several conferences with Keynes and
I think that we can meet their counter-proposals on some of the
two formal largely attended meetings with the British delegates.
points they raise and partly meet their sug estions on other
which we cannot go along with them. We are still discussing
points but I feel that there are two important points upon
the matter and I should like to discuss the matter with you as
soon as the first phase of our discussions is over.
We have completed B. draft of B. sizeable booklet of
and Answers relative to the Stabilization Fund. We
are ,uestions designing the booklet for technical experts and we should
like to print them using a short foreword from you which we
are preparing.
make before the appropriate Senate and House Committees on
We are preparing a draft of a statement you may wish to
both the Stabilization Fund and the International Bank.
Regraded Unclassified
179
Division of Monetary
Research
- 3 -
7. British reciprocal lend-lease of raw materials. You
have received a reply from the British Chancellor to your com-
munications with respect to the proposal for reciprocal lend-
lease of raw materials. On the whole they accept our counter-
proposals to their original suggestion. However, it is doubtful
whether in practice the mechanism which the British wish to use
will work smoothly. Representatives of OEW are now engaged in
discussions with the British to see whether the mechanism sug-
gested by the British will work satisfactorily. If the OEW is
satisfied with the results they think they can obtain, there
still remains the task of successful negotiations with the
Indian, Australian and South African Governments, These are
being initiated but a successful outcome does not look very
promising.
8. British International Dollar Position. The British
Government has submitted a memorandum of their international
dollar position with a view to convincing us that we ought to
let their gold and dollar balances continue to increase. They
regard this memorandum as very important. We are having another
meeting soon of the committee on this British position and un-
less I hear to the contrary from you I am taking the position
you outlined a month ago, namely, that we must cut down their
dollars unless the President orders otherwise and that you will
not raise the question with the President unless the State
Department or Lend-Lease specifically requests us to do 50,
9. Saudi Arabia. The State Department has requested us to
take up with the British the problem of the joint handling of
the Saudi Arabian monetary arrangements which up to now was
being dealt with Saudi Arabia and the British Government. We
have conferred with the British on this matter and they are
agreeable to the proposal and are going to give us information
as to what they have done so far. I should like to discuss
the matter with you when we have any definite recommendations
to make.
10. Gold Sales. We are now engaged in rather extensive
operations of selling gold in Iran, Iraq, Egypt, Syria, Palestine
and India. Hitherto we have paid in local currency in line with
our regular policy. From now on, we shall be buying currency at
rates lower. In each case we have made the arrangements with
the approval of the particular Government involved. It involves
about 20 million sale of gold to those areas in the next three
months and the amount is likely to grow if our activities in
the Middle East and India increase. Mr. Bell has approved these
gold transactions. Though the totals are not large compared
with our gold holdings, they do represent increased holdings of
gold in those areas by individuals rather than central banks,
gold which you felt was desirable at this time.
Regraded Unclassified
Division of Monetary
180
Research
4
11. Shipments of gold to China. China has asked us for
$50 million worth of gold in accordance with your promise to
make the gold available. I have taken the position that the
gold is available as rapidly as they can ship it. We have
arranged to ship from one to two tons 8. month by Army air
transport.
The Chinese have asked us to arrange with the British if
we could for China to get gold either in India or South Africa
in exchange for gold or dollars that we would give the Indian
or South African Governments in New York. The British Treasury
reported that they have made the request and that that could
not be arranged either for India or South Africa. The Chinese
asked me to make a similar request of the Russian Government
which I have via Gromyko. Gromyko has not yet given me an
answer.
The Mint has made a request to the Chinese that the design
for a large gold coin use the U.S. Mint on one side and the
Chinese engraving on the other. These designs have been for-
warded to Chungking for possible approval.
12. Looted Gold. I have not heard from you with respect
to you reaction to our proposal for a public Treasury statement
on the purchase of possibly looted gold. If favorable action
18 to be taken on this matter it should be done within the next
few months.
13. Canadian Dollar Position. The Army pressed us for
approval of the cancellation of $86 million worth of Canadian
contracts designed to reduce Canadian balances to replace the
Army calling for resale to Canada of $50 million worth of
armaments. We have already approved the latter arrangement
but the Canadians reversed themselves and our Army agreed with
the Canadian's reversal. The Army claimed that the delay in
our approval would cost us a million to $2 million. I took the
matter up with D. Bell and he approved so we gave the Army our
approval last Saturday.
14. Release of McDaniels blocked sterling. The British
informed us that McDaniel is not the legal owner to the blocked
sterling he wanted us to get released for him. McDaniel claims
that he filed evidence of his legal title with the State Depart-
ment, We are checking with the State Department and will dis-
cuss the matter with you before taking any further action with
the British.
Regraded Unclassified
181
September 22, 1943
My dear General Deane:
Thank you for your letter
of September 16th, enclosing a
report on AMFA.
For my proposed trip, in
addition to Dr. Harry White, will
you please add Mr. Fred Smith,
Assistant to the Secretary.
Sincerely yours,
(Signed) H. Mergenthau, Jr.
M
Brig. General John R. Deane,
Secretary, The Joint Chiefs of Staff,
United States Army,
Washington, D.C.
By Schey
1/22/43 - 4:08
Regraded Unclassified
182
THE JOINT CHIEFS OF STAFF
WASHINGTON
16 September 1943.
MEMORANDUM TO THE SECRETARY OF THE TREASURY
Subject: Report on AMFA activity
Attached hereto is a report on AMFA activities
received from Brigadier General J. C. Holmes, Chief
of the Military Government Section, Allied Force
Headquarters.
For the U.S. Chiefs of Staff:
Johnson JOHN R. DEANE
Brig. General, GSC,
Secretary.
Enclosure
PORVICTORY
BUY
UNITED
STATES
WAR
BONDS
AND
STAMPS
Regraded Unclassified
183
5. September 1943
From: AMG
TO: LIGS, AFHQ, for transmission to Treasuries, London and
Washington.
Subject: Activities of Allied military rinancial Agency during
the period 10 July to 31 August, 1943
1. In accordance with instructions contained in cable 2305
(ran 101) of 11 July 1943 from AGWAR, the following report is
submitted for transmission to the Treasuries at London and Washington
covering the activities of AMFA for the period 10 July to 31
August, 1945. Future reports will be made monthly.
2. During the period 10 July to 22 July, AMFÁ's activities were
confired to the following, and were carried out in Algeria and
runisia:
a) Completing arrangements for receipt of first air shipment
of AM Lire.
b) completing arrangements with appropriate rinance Officers
and Paymasters of the two Armies for proper accounting of AM Lire
and ur nafers to the Armies by AMFA and for preparation by the Armies
of monthly statistical reports of their cash receipts and expenditures
in Sicily.
do Continued planning of AMFA accounting, legal forms, and
similar matters of policy and procedure.
2. During the period 23 July to 9 August AMFA was engaged in trans-
porting its first receipt of AM Lire to Sicily, carrying the currency
into its accounts, making the first bula transfers of AM Lire to the
Armies and to the Provincial Senior Civil Affairs Officers (SCAOs)
and acquiring the necessary vault and office facilities in Palermo
and establishing a bank account in the Banco di Sicilia. At the end
of this period the first balance sheet of AMPA was prepared, dated 9
August 1943, and attached as Exhibit A. This balance sheet serves to
recapitulate AMFA's principal activities during this second period:
a) AM Lire notes received by air amounted, as of this date, to
Lire 2,163.2 million. In accordance with the balance-sheet concept
previously agreed on, the full amount of these notes was carried into
the balance sheet as a liability.
b) The sum of about 1,000 million lire was paid out to the Chief
Finance Officer of the 7th Army, primarily for the purpose of meeting
his 31 August payroll. A portion of this sum was, however, used to
mare exchange for North African francs and yellow-seal dollars still
possessed by officers and men. Smill amounts of BMA pounds were also
presented for exchange in the Western part of the Island.
Regraded Unclassified
-2-
184
Report on Activities, continued.
c) The sum of 532 million lire was advanced to Provincial
SCAO'S as working balances. The entire amount was charged to Occu-
patton Costs, although as of August 9 only a small part had actually
been spent. Should any part of this be used to make advances to pro-
vinces, communes, or to various organizations and enterprises, these
mounts would subsequently appear under "Advances" (presumed to be
recoverable), with a consequent reduction in the amount charged to
Occupation Costs.
d) A.FA made its first advance during this early period -
other than transfers to the Armies or to AMG officials -- in the
form of an advance of 1 million lire to the State Railroads for the
purpose of meeting essential payrolls.
+. In the remainder of the month of August AMFA's concern has been
primarily with the following two groups of activities: (a) Participa-
tion in further development of policy and planning; (b) continued
bunking transuctions, as reflected in the balance sheet of August 31,
attached as Exhibit B.
a) In the field of policy and planning the principal matters
Live been:
i) Arrangements for the reopening of the banks, dependent on
receipt of additional supplies of currency and now planned for approx-
instely o September in Palermo Province. AMFA drew up the form of
credit agreement to put the banks in funds (in collaboration with the
legal Division) and AMFA officers participated in Island-wide survey
of the banking situation.
2) Estimating currency needs, and scheduling arrivals. with
Additional shipments delayed, arrangements were made for the two
Armies to continue the use of dollars and BMA's, and to provide such
currencies for ANG use in emergency.
3) The accounting procedures and the allocation of accounting
responsibility within AUG continued to occupy the attention of A.FA;
the nain outlines of AMPA's accounts are now complete.
b) The balance sheet of 31 August, attached as Exhibit B, indica-
toa, by comparison with Exhibit A, that AMFA's cash reserve had declined
to 238 million lire. This decline was due chiefly to outpayments of
an additional 290 million to Provincial SCAO's between 10 and 31 of
40,0st. at the same time, 112 million lire held by the SCAO at Siracusa
were transferred to the Command Paymaster of the 8th Army. These are
held by him as & reserve until enough lire can be supplied to per-
it the British forces to shift from EMA's to lire. Arrangements were
also completed to provide funds to the U.S. Navy through the Disbursing
Officer at the Kaval Operating Base in Palermo. By the end of August
30 dillion lire had been turned over to him. The Royal Savy is able
to obtain funds, when necessary, from British army Paymasters. Funds
Regraded Unclassified
-3-
185
Report on AMPA's Activities, continued.
needed by the American merchant fleet are being provided by the U.S.
Naval Disbursing Officer. British-flag merchant ships or ships under
with charter are currently being provided with funds by the Royal
Savy, but other arrangements are under discussion with British Army
Puymenters.
The balance sheet also shows & further development of AMPA's
activities in other directions. Advances to the State Railways in-
dre_sed to 30 million, principally for salaries. This represents the
first advance made by ALFA to an Italian State institution on an Ishand-
ile busis. Toward the end of August the Civilian Supplies Division
suranged its first export transaction -- citric and tartaric acids --
will 1,78 to AREA for an advance of 2 million to cover 8. partial pay
cont to the supplier.
5. AS of 31 August, the staff of AMPA consisted of 4 officers (with
two others employed part-time on AMFA work) and 6 enlisted men, apart
porters and cleaners.
as
Colonel
Chief Finance Officer
Regraded Unclassified
-5-
186
Exhibit B
Allied Military Government
ALLIED MILITARY FINANCIAL AGENCY
Balance Sheet as of 31 August 1943
Assets
(All amounts in Lire)
Jash
Current
Lire
356,982
U.S.dollars 319,200
LA pounds 58,180
734,362
On deposit in Banco di Sicilia 183,417,264
In reserve
53,952,000
Total cash
238,103,626
utilated currency
1,705
Amot stamps charged to Postal Section
90,000
Expenditures on account of occupation costs
British Army
112,064,000
U.S. Army
1,141,184,000
U.S. Havy
30,266,000
1,283,514,000
Provincial SCAOs
610,096,000
and EQ administrative expenses
267,643
Total expenses on account of
occupation costs
1,893,967,643
Export account, Civilian Supply Division
Purchase of goods for export
2,000,000
advances
Mailroads of the State
30,000,000
Industries and individuals
5,000
Total advances
30,005,000
Total assets
2,164,077,974
Liabilities
New A.... notes received
2,163,200,000
assot postage stamps issued
90,000
Deposite:
vivilian Supply Division, sale of goods214,384
Property Controller, revenue from films 63,100
Total deposits
277,484
Suspense account (deposit by CFO pending
clearing of his imprest account)
510,490
Total liabilities
2,164,077,974
Regraded Unclassified
-4-
187
Exhibit A
Allied Military Government
ALLIED MILITARY FINANCIAL AGENCY
Balance Sheet as of 9 August 1943
Assets
(All amounts in Lire)
Cash
Current
743,319
Un deposit in Banco di Sicilia 574,936,000°
In reserve
53,952,000
Total Cash
629,631,319°
&xpenditures on account of oc-
cupation Costs
U.S. army
1,000,384,000
Provincial SCAOS
532,160,000
and Administrative expenses:
Givilian Supply Division
4,000
Acta
20,681
Total expendi tures on ac-
count of occupation costs
1,532,568,681
AlVences
mailroads of the State
1,000,000
Total advances
1,000,000
Total assets
2,163,200,000*
Liabilities
New A.M. Lire Notes received
2,163,200,000
Total liabilities
2,163,200,000°
Prigures adjusted to show correct amounts on basis of check
subsequent to 9 August.
Regraded Unclassified
188
SEP 22 1943
My dear Mr. Secretary:
This will acknowledge your letter of September 7, enclosing an
exchange of correspondence between the Department of State and the
Norwegian Embassy regarding the type of currency to be used and the
exchange rate to be established for such currency in the . vent of an
Allied occupation of Norwegdan territory.
The Norwegian authorities have had conversations with this
Department and submitted memoranda dealing with these questions.
This information has in the normal course of events been transmitted
to your Department and will be sent to General Hilldring of the Civil
Affaire Division of the Mar Department.
In view of the fact that these matters are to be reviewed by
the Combined Chvil Affairs Committee of the War Department under the
Joint Chiefs of Staff, the Treasury though welcoming the expression
of views by the Norwegism authorities has not felt it expedient to
commit our Government on the questions of the currency to be used or
the rate of exchange to be established. When these matters pertain-
ing to Norway come up for review by the Combined Civil Affairs Com-
mittse, the Treasury will be prepared to review the situation with
representatives of your Department, the War Department and the British
governmental agencies involved.
Sincerely yours,
(Signed) H. Mergenthau, Jr.
Secretary of the Treasury.
The Honorable,
The Secretary of State.
9/21/43
Regraded Unclassified
-
THE
DEPARTMENT OF STATE
WASHINGTON
September 7. 1943
KY dear Mr. Secretary:
I enclose exchange of correspondence between the
Department of State and Norwegian Embassy regarding the
question of the currency to be used to satisfy the needs
of Allied expeditionary forces on Norwegian territory,
and the question of the exchange rate.
As will be perceived from the Department's reply,
it 18 believed to be highly desirable and of importance
that the Norwegian Government be fully consulted in
advance on these matters, if at all possible consistent
with military necessities, and the views of the Norwegian
Government concerning the use of Norwegian currency be
satisfied and every effort made to settle the exchange
rate by mutual agreement.
Sincerely yours,
Enclosures:
1. From Norwegian Embassy,
August 23,
2, Department's reply.
Honorable
Henry Morgenthau, Jr.,
Secretary of the Treasury.
Regraded Unclassified
Suptember 7, 1943
lleney,
Careful consideration has been given to your
note of August E3, 1943 informing this devernment of
the plane of the Norvegion Government for the use of
Nervegian currency, with the view of supplying Allied
forces in the event of military activity in Nerway,
and giving the views of your Government regarding a
desirable exchange rate, and stating finally that your
Government takes it for granted that in Nerway, the
territory of a United Nations government, as foreign
special Invasion meney will be cought or put into air-
mlation by the authorities of any Allied government
thout the consent of the Royal Norwegian Government.
Copies
Excellency
Wilhelm Hunthe 40 Norgenstiorne,
Ambassador of Nervey.
Regraded Unclassified
+ 2 -
lapies of your note are being sent to the Treasury
Var Departments with the suggestion that fullest and
sympathetic consideration be given to the views
an these matters therein expressed.
Accept, Excellency, the renewed assurances of up
highest consideration.
00.515/796
REGETARD
consent
oner
to
Regraded Unclassified
NORWEAR
BASSY.
WASHIN
C.
August 28, 1943,
Excellency:
Acting under instructions from my Government I have the
honor to confirm the communications previously conveyed to
officers of the Department of State and more particularly the
Treasury Department, to the effect that it 10 the opinion end
policy of the Norwegian Government that Norwegian currency
ac be used to satisfy the needs of Allied exceditionary forces
orwegian territory.
For its own monetary and financial purposes and with a view
to.supplying
His
llency Cordell Hull
Secretary of State,
Washington, D. C.
Regraded Unclassified
to ying Allied forces with edequate amounts of Norweglan
currenty, the Norwegian Government last spring took steps to have
printed in London up to 600 million kroner (spproximately corres-
Donding to the total amount of Norwegian paper currency in cir-
culation immediately prior to the invasion) in notes of the
following denominations: 1, 2, 5, 10, 50, 100, 500 and 1,000 kroner.
There has by new been printed 350 million kroner, and the re-
sainder will be finished in October-November this year
At the same time coinage of Norwegian small coins (10, 25 and
50 sre) has been effected in London. Such notes and coins are
intended to cover Norvegian needs 8.5 well 88 those of Allied
ON litionary forces.
The rate of exchange between the Norwegtan krone end other
moies will be fixed by the Norwegian Government after dis-
no with the competent authorities of the various United
8. The exchange rates will in the first instance have to
Lxed provisionally pending the clarification and stabilization
of the
Regraded Unclassified
- 3 -
of
the various factors involved.
A couple of months ago conversations took place in London
between the British Treasury and the Norwegian Ministry of
Finance regarding the use of Norwegian kroner by the British
expeditionary forces and the exchange rate krone/pound sterling
during the coming invesion of Norway. The British Treasury
agreed to use Norwegian currency during the invasion and also
declared that they would have no objection to an exchange rate
of 20 Norwegian kroner to 1 cound sterling.
It was mutually understood that if conditions in Norway should
be considerably changed before the invaston, this rate of exchange
could be altered even before going into force.
This provisional arrangement was not implemented by any
mal agreement, 1.a. because such agreement would have needed
acquiescence of the proper American authorities.
The Norwegian Government ventures to expect that the United
tes authorities will see their vay to take the same attitude
in these
Regraded Unclassified
- 4 -
in
: matters as adopted by the British.
During recent conversations with the United States Treasury
the representatives of the Norwegian Embassy have reiterated the
desire that Norvegion enrrency be used during & possible invesion
by United States armed forces. The orwegian Ministry of
Finance yould have liked to obtain 8.°. appurance from the 'nited
States Treasury Decertment that the competent United States
authorities agree to
to
R
provisional exchange rete of 5 zroner per United tate de lar.
As no such
I hereby, on behalf of my Government, venture to four
Appellency with 5. view to resching E ⑆ amount be oon our
Phnents concerning the use of currency and the
of exchange between the Norverian krone and the United tates
ar for a possible teriod of invasion of territory
S. forces.
On the basis of the above 1t OFD be stated that an adequate
amount
Regraded Unclassified
- 5 -
of Norwegian kroner can at once or at short notice be
placed at the disposal of the proper United States authorities
15 London or at an other designated place.
I hardly need to emphasize that my Government takes it for
granted that in Norway, the territory of a United Nations
government, no foreign special invasion money will be sought
put into circulation by the authorities of any Allied government
without the consent of the Royal Norwegish Government.
Accept, Excellency, the renewed assurances of my highest
consideration.
For the Ambassador,
(SIGNED) LARS J. JORSTAD
588
EDEI
Ref: , 17.
Regraded Unclassified
197
PARAPHRASE OF TELEGRAH RECEIVED
FROM: AMERICAN EHBASSY, CHUNGKING, CHINA
DATE: September 22, 1943, ? p.m.
NO.: 1779
The following has been repested to New Delhi for
Adler's information. Please inform Treasury.
The Embassy is informed by a reliable source that
there has been no change in the situ tion since Embassy's
?
telegram 1634 (1624) of Sentember 2 and that the Hinistry
of Finance is awaiting "the American reoly" to suggestions
sent some time ago by Kung To Hs1 Teh Mo in regard to
revision of the stabilization agreement.
ATCHESON
Regraded Unclassified
198,
3
BRITISH MOST SECRET
COPY NO.
U.S. SECRET
OPTEL NO. 313
Information received up to 10 a.m. 22nd Sept. 1943.
1.
NAVAL
One of H.M. Canadian destroyers escorting an outward
convoy was torpedoed and sunk South of Iceland (c) on 20th, and
a corvette escorting the same convoy was torpedoed and believed
sunk yesterday. A Polish submarine sank 2 ships in Bastia
Harbour yesterday. The remaining 3 ships were on fire.
2.
MILITARY
Italy By 4 p.m. 21st our troops had reached Trani, Aquaviva,
Gioja, Laterza, Potenza, Contursi and Montecorvino. Little
enemy opposition, but our advance delayed by demolitions.
Corsica French reinforcements have arrived and the Germans
are still moving Northwards towards Bastia. Zonza and Vezzani
have been occupied by the Italians. German evacuation from
Bastia by air was in progress during daylight 21st.
3.
AIR OPERATIONS
Western Front 21st. Escorted Mitchells dropped 25 tons on a
synthetic petrol and ammonia plant at Lens and escorted
Marauders bombed Beauvais sirfield. Day's casualties:
Enemy; 6, 3, 4. Our; 3 medium bombers.
21st/22nd. Aircraft despatched. Sea-mining 26, Intruders 5,
Anti-shipping 5 (1 E-boat destroyed, 1 damaged), leaflets 3.
About 30 enemy aircraft operated in 2 phases over and off the
East and South East coasts. 2 of them were destroyed.
Italy 19th/20th. Wellingtons attacked and hit the road bridge
at Benevento. 20th. Heavy and medium bombers dropoed 230 tons
on communications behind the battle area. Warhawks bombed and
machine-gunned a probable petrol convoy setting on fire 35
vehicles and damaging many others. A total of 24 Liberators
attacked the railway centres at Venice end Pescare.
Burms 19th. Mitchells dropped 21 tons on Monywa 60 miles
West North West of Mandalay hitting the power station, barrecks
and other buildings.
Regraded Unclassified
199
SCHEDULE FOR SECRETARY MORGENTHAU'S VISIT
Thursday, September 23, 1943
2100 A.M.
Chairman Burgess and Executive Manager Ford meet
Secretary Morgenthau at
9,15 A.V.
2112 Broadway, Room 501. Central Savings Bank Bldge West 73 St.
Director Community Sales Division Johnson.
Mrs. Sidney Borg, C. D. V. Oa
Mrs. Talbot, A. W. V. S.
Chairmen of 11 District offices, workers,
sales representatives.
9,30 Anile
Leave.
9:50 A.M.
Bronx Office. 2400 Grand Concourse (187th Street)
Downstate Chairman Pierson
Downstate Vice-Chairman, Mrs. Barnes
Bronx County Chairman Farkas
Bronx County Vice Chairman, Mrs. Coghlan
Deputy Manager Frank Sheridan, etc.
10:10 A.M.
Leave.
10:35 Ashis
Queens Office. 29-28 -41st Avenue (Queens Plaza) Long Island City
Downstate Chairman Pierson
Downstate Vice Chairman, Mrs. Barnes
Queens Chairman Macdonald
Queens Vice Chairman Lemmerman
Queens Vice Chairman Mrs. Williams
Deputy Manager Nelson Bengston.
10:55 A.M.
Leave.
11.20 A.M.
Kings County Office. 60 Clinton Street, Brooklyn 2.
Downstate Chairman Pierson
Downstate Vice Chairman Mrs. Barnes
Kings Chairman Paige
Kings Vice Chairman, Mrs. Sturgis
Deputy Manager John Rae
Deputy Manager John Fitzgerald
11:40 A.M.
Leave.
22:00 Noon
Federal Reserve Bank, 33 Liberty Street, New York City.
Rest Period.
(NF In questions
live P.M.
Federal Reserve Bank. Lunch - President Sproul and Board.
4)
P.M.
Federal Reserve Bank, 10th Floor Committee Room.
Bank team captains.
Regraded Unclassified
200
-2-
2:15 P.K.
War Finance Committee, Banking & Investment Division,
5th Floor, Federal Reserve Bank Building.
Director Black.
(Community Sales Director Johnson and representatives
of insurance company community sales section will
also be present).
2:45 P.M.
Now York Stock Exchange, 11 Wall Street.
President Emil Schram.
3,20 P.M.
Leave.
4:00 P.M.
War Finance Committee, 27th Floor, 1270 Sixth Avenue.
5:20 P.M.
Leave.
WAX Cember, Victory Square, 50th Street & Sixth Avenue.
Signal Corps Exhibit
The Subretary *11 send e message to General Eisenhower.
6:00 P.M.
Leave.
6:20 P.K.
Columbia Broadcasting System, 485 Madison Avenue.
6:30 P.M. to
0,50 P.M.
Broadcast.
Tw P.M.
Dinner with Chairman BUTRENT
Secu P.M.
war Center, Victory Square,
Appearance at Sports Night Realy.
Regraded Unclassified
201
OFFICIAL PARTY
Car No. 1
Secretary Morgenthau
Mr. Fred Smith
State Chairman Burgess
Executive Manager Ford
Car No. 2
Downstate Chairman Pierson
Downstate Vice Chairman Mrs. Barnes.
(This car will precede Car No. 1 by 10
minutes to Bronx, Queens and Kings
Offices and then return to 1270 Sixth Avenue)
Press Car
Reports and photographers which will cover
route to Federal Reserve Bank.
Regraded Unclassified
20,
LUNCHEON AT FEDERAL RESERVE BANK OF NEW YORK
AT ONE O'CLOCK P.M., SEPTEMBER 23, 1943.
Secretary Morgenthau - Guest of Honor
Allan Sproul, President - Host
Mr. Winthrop W. Aldrich
Mr. Eugene Black
Mr. Donaldson Brown
Mr. Henry Bruere
Mr. W. Randolph Burgess
Dr. Robert D. Calkins
Mr. Carle C. Conway
Mr. Guy Emerson
Mr. William J. Field
Mr. M. B. Folsom
Mr. Nevil Ford
Mr. Leon Fraser
Mr. E. Chester Gersten
Mr. Russell C. Leffingwell
Mr. Henry Morgenthau, Sr.
Mr. Bayard Pope
Mr. William C. Potter
Mr. Beardsley Ruml
Mr. Emil Schram
Mr. Frederick E. Williamson
Regraded Unclassified
203 9/23/43,
- 1 -
THE COLUMBIA BROADCASTING CORPORATION PRESENTS THE HONORABLE HENRY
MORGENTHAU, JUNIOR - SECRETARY OF THE TREASURY OF THE UNITED STATES. FROM
NEW YORK CITY, MR. MORGENTHAU BRINGS YOU THE LATEST NEWS ON THE THIRD WAR
LOAN. WITH HIM AT THE MICROPHONE ARE NEW YORKERS FROM ALL WALKS OF LIFE,
WHO ARE PLAYING A PART IN NEW YORK'S BOND DRIVE. SECRETARY MORGENTHAU -
204
THE THIRD WAR LOAN WILL COME TO AN END AT MIDNIGHT ON SATURDAY, OCTOBER
SECOND. THAT GIVES US NINE DAYS TO COMPLETE OUR FIFTEEN BILLION DOLLAR QUOTA.
OUR SALES TO DATE= AS OF THIS EVENING - ARE OVER TWELVE BILLION DOLLARS.
THAT MEANS WE MUST RAISE THREE BILLION DOLLARS IN THE NEXT NINE DAYS. THESE
THREE BILLION DOLLARS MUST COME FROM THE PEOPLE. WE MUST GET THEM LARGELY
Through THE SALE OF E BONDS TWENTY FIVE DOLLAR, FIFTY DOLLAR, HUNDRED DOLLAR
BONDS -- TO MILLIONS OF PEOPLE.
AND THIS MUST BE DONE IN NINE DAYS:
TO SOME, THIS MAY SEEM IMPOSSIBLE. BUT TO SOME, NOT VERY LONG AGO,
BEATING GERMANY SEEMED IMPOSSIBLE. THE INVASION OF NORTH AFRICA, OF SICILY,
OF ITALY SEEMED IMPOSSIBLE. IT SEEMED IMPOSSIBLE FOR THE RUSSIANS TO DRIVE
THE NAZI FORCES OUT OF THEIR LAND. BUT ALL OF THESE THINGS
ARE BEING DONE,
I AM JUST AS CONFIDENT, THAT OUR HOME FRONT ARMY OF FIVE MILLION
VOLUNTEER SALESMEN, WILL SUCCEED IN GETTING THE FINAL THREE BILLION DOLLARS
WE NEED FROM THE AMERICAN PEOPLE TO INSURE THE SUCCESS OF THE THIRD WAR
LOAN. NOR WILL THEY FORGET THAT EVERY EXTRA BILLION WILL END THE WAR
JUST THAT MUCH SOONER.
I'D LIKE TO MAKE A SUGGESTION. I'D LIKE TO SUGGEST THAT WE DEDICATE
THESE LAST NINE DAYS OF THE DRIVE TO GENERAL MARK CLARK'S GALLANT AMERICAN
FIFTH ARMY.
Pause
IT IS NIGHT, NOW, IN ITALY. THE SHIPS ARE OFF SHORE, LOADED WITH THE
WEAPONS AND AMMUNITION AND SUPPLIES WHICH YOUR WAR BONDS HAVE BOUGHT.
BARGES ARE CARRYING THEM ASHORE, TO THE BEACH-HEAD WE HAVE GAINED AT THE
COST OF THOUSANDS OF AMERICAN LIVES.
Regraded Unclassified
205
-3-
IT'S A HILLY PART OF THE ITALIAN COAST. SOME OF YOU MAY HAVE SEEN IT.
THE HILLS AREN'T VERY HIGH. YOU COULD WALK UP THE SMALLER ONES IN A FEW
MINUTES. BUT OUR SOLDIERS- MEN FROM YOUR TOWN, AMONG THEM - ARE CLIMBING
THOSE HILLS IN THE FACE OF MACHINE-GUN FIRE. THE NIGHT IS BRIGHT WITH THE
FLASH OF GUNS. every FOOT OF THE GROUND WE HAVE GAINED SO FAR, EVERY FOOT
OF THE LONG, FIVE=HUNDRED-MILE DRIVE WE MUST MAKE TO THE NORTH, THE LENGTH
OF ITALY, WILL COST US DEARLY IN LIVES. FOR US THE WAR IS BEGINNING, NOW,
FROM HERE ON, GENERAL MARSHALL SAYS, IT WILL BE A CONSUMING FURNACE.
OUR SOLDIERS--YOUR SOLDIERS--WONDER ABOUT YOU. DRIVING FORWARD,
GOING WITHOUT SLEEP AND FOOD FOR TWO AND THREE DAYS AT A TIME, TIRED AND
DIRTY, SEEING THEIR FRIENDS WOUNDED AND KILLED BESIDE THEM - THEY WONDER
IF THE FOLKS AT HOME REARLY KNOW HOW GRIM THIS WAR IS. THE LETTERS THEY
GET TELL THEM THAT MOTHER IS WORRIED ABOUT THE BUTTER SHORTAGE. UNCLE FRED
IS INDIGNANT BECAUSE HE CAN ONLY BUY THREE PAIRS OF SHOES A YEAR.
THE MEN WHO ARE MARCHING ON NAPLES TONIGHT AREN'T WORRIED ABOUT BUTTER.
THEY'RE HAPPY TO EAT ANY FOOD THEY CAN GET - AND THEY HOPE THEY'LL LIVE
LONG ENOUGH TO EAT IT. THEY HAVE A SHOE PROBLEM, TOO. SOME MEN, IN SICILY,
WALKED THE SOLES OFF THEIR SHOES, AND WORE THEIR SOCKS AWAY, so THEY WERE
FIGHTING ON BARE AND BLEEDING FEET.
THIS LAST WEEK OF THE THIRD WAR LOAN DRIVE GIVES US OUR OPPORTUNITY TO
PROVE- TO THE AMERICANS WHO ARE DOING OUR FIGHTING FOR US-THAT EVERY ONE
OF US DOES UNDERSTAND. THESE WAR BONDS THAT WILL FEED AND CLOTHE OUR MEN,
THAT WILL "BACK THE ATTACK" WITH THE WEAPONS AND MUNITIONS THEY MUST HAVE,
ARE THE HAND OF FRIENDSHIP AND LOVE THAT We CAN STRETCH ACROSS THE SEA
TO THE MEN OF OUR GREAT FIFTH ARMY.
BECAUSE OF WHAT I HAVE SEEN THROUGHOUT THE COUNTRY, I KNOW THAT
AMERICANS WILL NOT FAIL TO SUPPORT THE FIFTH ARMY.
I HAVE SPENT TODAY IN
NEW YORK CITY VISITING BOND HEADQUARTERS IN THE VARIOUS BOROUGHS.
Regraded Unclassified
206
- 4 -
I WANT YOU TO MEET SOME OF THE PEOPLE I SAW IN NEW YORK TODAY -
SOME OF THE PEOPLE WHO OUT OF PATRIOTISM, AND OUT OF HEARTFELT DESIRE TO
GIVE EVERY POSSIBLE HELP TO THEIR FRIENDS AND NEIGHBORS, THEIR SONS AND
THEIR FATHERS ON THE BATTLEFRONTS, ARE SPENDING ALL OP A GREAT PORTION OF
THEIR TIME SELLING BONDS.
AT MY } IRST STOP TODAY, IN THE CENTER OF MANHATTAN, I MET FIFTEEN-
YEAR-OLD ALLAN GARNER. HERE HE IS.
GARNER
IN THE PAST TEN DAYS I HAVE SOLD $49,725. WORTH OF WAR BONDS. BUT I AM
NOT THROUGH YET. I AM GOING TO KEEP AT IT TO BACK UP MY BROTHER WHO IS
STUDYING TO BE A MASTER GUNNER. I AM GOING TO KEEP SELLING BONDS UNTIL
TE WAR IS OVER OR UNTIL I AM OLD ENOUCH TO JOIN THE ARMED FORCES AND DO
SOME FIGHTING MYSELF.
SECRETARY
THANK YOU, ALLAN. UP IN THE BRONX, BOROUGH PRESIDENT JAMES J. LYONS
INTRODUCED ME TO LOUIS LEVINE, A TAXICAB OPERATOR. I WANT YOU TO MEET
HIM TOO.
LOUIS LEVINE
SINCE THE WAP. BEGAN I HAVE SOLD SIX MILLION DOLLARS WORTH CI FCNDS
MYSELF. "TE TAXI INDUSTRY HAS SOLD A GREAT MANY MILLIONS. THERE IS HARDLY
A TAXI DRIVER IN NEW YORK THAT HASN'T BOUGHT A ONE HUNDRED DOLLAR BOND IN THE
THIRD WAR LOAN. I SPEND TWENTY-FOUR HOURS A DAY AT MY JOB OF SELLING BONDS,
AND THAT IS THE LEAST I CAN DO..I AM A JEWISH BOY, MY MOTHER WAS BORN IN
GERMANY. I WENT TO GERMANY IN 1934, AND ALREADY IT WAS HELL. I CAN TELL
YOU I KNOW WHAT THIS WAR MEANS.
Regraded Unclassified
-5-
207
SECRETARY
ONE OF THE INTERESTING THINGS I FOUND IN NEW YORK WAS THAT THE
INSURANCE INDUSTRY HAS ORGANIZED ITSELF INTO A TREMENDOUS SALES FORCE.
NOT ONLY ARE THE LIFE INSURANCE SALESMEN SELLING BONDS, BUT ALL THE
OFFICE WORKERS AND CLERKS. ONE MAN I MET TODAY IS ASSISTANT REGISTRAR
AT THE EQUITABLE LIFE ASSURANCE SOCIETY. HE WORKS FROM EIGHT TO TWELVE
O'CLOCK EVERY NIGHT, IN THAT SECTION OF MANHATTAN THAT USED To JN. BE
CALLED HELL'S KITCHEN,
HIS NAME IS CHRISTOPHER GAMBOLATI.
GAMBOLATI
I HAVE MADE ABOUT SEVENTY SALES SINCE THE BEGINNING OF THE THIRD
WAR LOAN. ALL MY SALES WERE TO ITALIANS WHO ARE MIGHTY GLAD, I CAN
TELL YOU, THAT ITALY HAS CHANGED SIDES.
AT FIRST I THOUGHT I WOULD
TRY TO SELL TWENTY-FIVE DOLLAR BONDS, BECAUSE I THOUGHT THAT WAS ALL THE
PEOPLE COULD AFFORD.
BUT MY FIRST CUSTOMER BOUGHT A FIVE HUNDRED DOLLAR
BOND, SO I CHANGED MY TUNE. MY AVERAGE SALE IS TWO HUNDRED FIFTY DOLLARS,
AND MY AVERAGE CUSTOMER MAKES FROM THIRTY TO FORTY DOLLARS A WEEK AT MOST.
THAT GIVES YOU SOME IDEA OF HOW MUCH THE LITTLE PEOPLE ARE DOING IN THE
THIRD WAR LOAN.
Regraded Unclassified
208
- 6 -
SECRETARY
A LOT OF PEOPLE WONDER HOW MUCH BUSINESS IS DONE BY BOND BOOTHS ON
STREET CORNERS AND IN THEATRES AND IN DRUG STORES. I THINK I CAN GIVE
YOU SOME IDEA. I TALKED TODAY TO MRS. SOPHIA ARESCU, WHO HAS A booth
OUTSIDE THE BUILDING AT 26 COURT STREET. LET HER TELL YOU ABOUT IT.
MRS. DA SESCU
I SET UP MY BOOTH LAST FEBRUARY, AND UP TILL NOW MY HELPERS AND
I HAVE SOLD FIVE HUNDRED EIGHTY FOUR THOUSAND DOLLARS' WORTH OF BONDS.
WE HAVE B UCHT SIX PURSUIT SHIPS AT SEVENTY FIVE THOUSAND DOLLARS EACH, AND
NAMED THEM FOR OUR CUSTOMERS. JUST TO GIVE YOU SOME IDEA OF HOW GOOD
BUSINESS CAN BE IN A STREET BOOTH, I'D LIKE YOU TO KNOW THAT ONE DAY A
MAN FROM THE BROOKLYN elks CAME TO MY BOOTH AND CAVE ME A CHECK FOR ONE
HUNDRED THOUSAND DOLLARS. OF COURSE THIS DON'T JUST HAPPEN. I HAVE TO
WORK UP CUSTOMERS, JUST LIKE ANYONE ELSE. IN THE SUBJERTIME I SPEND
EVERY DAY, ALL DAY, AT MY BOOTH. so YOU CAN SEE, MR. MORGENTHAU, IT IS
CERTAINLY WORTH WHILE.
Regraded Unclassified
209
- 7 -
SECRETARY
I HAVE JUST INTRODUCED TO YOU A FEW AMONG THE THOUSANDS OF NEW YORKERS
10 HAVE so UNSELFISHLY TAKEN UPON THEMSELVES THE JOB OF MAKING THE
THIRD WAR LOAN A success. THEY DID NOT WAIT TO BE ASK D -- THEY TOOK THE
TASK ON THEIR OWN SHOULDERS. HERE IS ANOTHER MAN W30 GLADLY TOOK
RE PONSIBILITY UPON himself. AS CHAIRMAN OF THE WAR FINANCE COMMITTEE OF
3:3 YORK STATE, MR. W. RANDOLPH BURGESS HAS MET THE STAGGERING CHALLENGE
OF A QUOTA AMOUNTING TO 31 PER CENT OF THE QUOTA FOR THE ENTIRE NATION
-- AND HE HAS MET IT LIKE THE PATRIOTIC, DETERMINED AMERICAN HE IS;
A BIG MAN IN A BIG JOB. I AM PROUD TO INTRODUCE TO YOU MY VERY COOD
FRIEND, W. RANDOLPH BURGESS.
BURGESS
OUR JOB IN NEW YORK, AND I THINK IT IS THE SAME AS EVERY WAR FINANCE
COMMITTEE'S JOB ACROSS THE COUNTRY, HAS NOT BEEN so MUCH PINDING people
TO SELL BONDS, AS TO ORGANIZE THE PEOPLE WHO ARE DETERMINED TO SELL
BONDS -- OF WHOM WE CANNOT HAVE TOO MANY. IT IS A CASE OF HARNESSING
SPONTANEOUS COMBUSTION. INSTEAD OF TRYING TO ORGANIZE THE STATE LIKE
AN ARMY, WE HAVE RELIED ON THESE HUNDREDS OF GROUPS OF PEOPLE VERYAHERE
640 HAVE VOLUNTEERED AND ON THEIR OWN INITIATIVE STARTED WORK S ELLING
BONDS. IT'S "EAST SIDE, WEST SIDE, ALL AROUND THE TOWN." IN FACT WE HAVE
HAD TO HUSTLE TO KREP UP WITH THEM. MORE THAN ONCE I HAVE MARVELLED AT THE
ENERGY THEY PUT
Regraded Unclassified
- 8 -
210
INTO THEIR WORK, AND I BELIEVE THAT MOST OF THESE WORKERS HAVE SONS OR
BROTHERS IN THE ARMED SERVICES AND ARE BACKING THEM UP.
BUT I WANT TO SAY HERE AND NOW THAT THE NINE DAYS THAT LIE AHEAD
OF US ARE GOING TO BE THE HARDEST. BETWEEN NOW AND OCTOBER SECOND WE ARE
FACED WITH THE PROBLEM OF GETTING AROUND TO SEE THE PEOPLE AND GIVING THEM
A CHANCE TO SUBSCRIBE. I THINK EVERY WORKER WE HAVE REALIZES THAT THE
YARDSTICK OF SUCCESS IN THE THIRD WAR LOAN IS NOT THE MONEY WE RAISE, BUT
THE NUMBER OF PEOPLE WHO HAVE BOUGHT A SHARE IN THE WAR - AND BECAUSE
THEY UNDERSTAND THIS, I AM SURE THEY WILL WORK DOUBLE TIME TO GET THE JOB
DONE. I'D LIKE TO HAVE THREE OF THE PEOPLE IN OUR ORGANIZATION WHO ARE
CONCENTRATING ON THE SALE OF BONDS TO INDIVIDUALS TELL YOU WHAT THEY
EXPECT TO DO DURING THE NEXT NINE DAYS.
FIRST,
Regraded Unclassified
211
-9-
MRS. MILLER
THROUGHOUT THE COUNTRY THE WOMEN HAVE CONSIDERED THE WAR FINANCE
PROGRAM VERY MUCH THEIR BUSINESS. IN NEW YORK STATE EVERY WOMAN.
WHETHER HOUSEWIFE, MOTHER; INDUSTRIAL WORKER OR PROFESSIONAL CAREER
WOMAN 13 A POTENTIAL CUSTOMER FOR WAR BONDS, AND THOUSANDS OF WOMEN
ARE WAR FINANCE WORKERS IN ONE CAPACITY OR OTHER. OUR GOAL IS TO MAKE
EVERY WOMAN A BOND HOLDER IN HER OWN RIGHT. IN WESTERN NEW YORK, THE
SLOGAN # A BOND IN EVERY KITCHEN" HAS CAUGHT ON. IN NEW YORK CITY, THE
POWERFUL WOMEN'S CLUBS AND RGANIZATIONS ARE VYING WITH EACH OTHER TO
SELL BONDS ON TERMS OF TONNAGE FOR TE COMING EUROPEAN INVASION FLEET.
AT $2,000 PER TON. MANY MILLIONS OF DOLLARS ARE REPRESENTED BY NEW YORK
WOMEN. LARGE NUMBERS OF THESE BONDS ARE BOUGHT DAILY AT BOOTHS WHICH AR
STAFFED BY WOMEN VOLUNTERRS. OUR AIM FOR THESE LAST CRITICAL NINE DAYS
IS TO FIND THE WOMEN THO ARE NEITHER ON PAYROLLS REACTIVE IN ORGANIZATION
WORK, AND WHOSE FINANCIAL TRANSACTIONS ARE ORDINARILY MARE BY THE MEN Il
THEIR FAMILIES. THEY AND THEIR CHILDREN ARE OUR VERY SPECIAL CUSTOMERS
BECAUSE THEY ARE "E" BOND BUYERS, AND BECAUSE THERE ARE STILL SOME AMON
THEM WHO WILL BUY THEIR FIRST BOND BETWEEN NOW AND OCTOBER 2. IT 12 OUR
FIRE CONVICTION THAT WE ARE PERFORMING A VALUABLE SERVICE FOR THESE WOMEN
IN SELLING THEM EITHER THEIR FIRST OR ANOTHER "B" BOND.
BURGESS
THANK you, une
FRANK B. MITCHELL OF OUR PAYROLL
SAVINGS DIVISION.
Regraded Unclassified
-10-
212
THE PAYROLL SAVINGS DIVISION IS CONCERNED WITH THE WAGE EARNERS OF
THIS STATE EVERY MAN AND WOMAN WHO HAS A JOB. THERE ARE 47,000
CONCERNS IN THIS STATE THAT ARE MAKING IT POSSIBLE FOR THEIR EMPLOYEES
TO FIGHT THIS WAR BY BUYING BONDS THROUGH THE PAYROLL SAVINGS PLAN.
WITHIN THESE COMPANIES, THERE ARE THOUSANDS OF LOYAL AND PATRIOTIC PEOPLE
WHO HAVE ACCEPTED THE RESPONSIBILITY OF OFFERING THEIR CO-WORKERS AN
OPPORTUNITY OF SHORTENING THE WAR AND PROVIDING FOR FUTURE SECURITY. THESE
VOLUNTEERS HAVE OUR HEARTFELT THANKS AND THEY DESERVE THE THANKS OF EVERY
AMERICAN. WE ARE COUNTING UPON THEM TO INSURE THE SUCCESS OF THE ATTACK
THEY ARE BACKING. THEY, THE PEOPLE, AND YOU, THE PEOPLE, WORKING TOGETHER
AND SAVING TOGETHER CAN DO MUCH TO INSURETHE SUCCESS OF THE THIRD WAR
LOAN. WE ASK ALL WAGE EARNERS AS FREE MEN TO BUY TO BUY THEIR EXTRA BONDS
THROUGH THEIR OWN COMPANIES. NOW!
MR. BURGESS
NOW MR. WALTER H. JOHNSON, JR. WILL TELL YOU ABOUT OUR COMMUNITY
SALES.
Regraded Unclassified
213
- 11 -
MR. JOHNSON
IN MANHATTAN, FIFTY THOUSAND MEN AND WOMEN - - TRAINED AND ORGANIZED - -
ARE CALLING FROM DOOR TO DOOR, SELLING BONDS IN THE THIRD WAR LOAN.
EACH
ONE IS PATRIOTICALLY DOING AN IMPORTANT WAR JOB.
EACH ONE IS GETTING HIS
NEIGHBORS TO LEND MONEY TO THEIR COUNTRY TO BUY WAR EQUIPMENT NEEDED BY THE
SOLDIERS AND SAILORS FROM THEIR OWN HOME BLOCK.
THIS GROUP OF SALESMEN WILL REACH A MILLION BOND BUYERS. IN THE
LAST FEW DAYS OF THE CAMPAIGN THEIR OBJECTIVE IS FIVE HUNDRED THOUSAND
SALES FOR FIFTY MILLION DOLLARS AND THEY'RE GOING TO REACH IT.
IF YOU'RE NOT CALLED ON, HOWEVER - WHEREVER YOU LIVE - - - GO
TO YOUR BANK OR THE THEATRE AND BUY YOUR BOND.
REMEMBER THIS IS YOUR
WARI
Regraded Unclassified
-12-
214
BURGESS
THANK YOU, MR. JOHNSON.
SECRETARY
LADIES AND GENTLEMEN, YOUR GOVERNMENT WANTS TO THANK ALL OF YOU!
IN YOUR HEARTS, AS IN MINE, ARE THE SOLDIERS AND SAILORS WHO ARE
ATTACKING THE NAZIS IN ITALY AT THIS MOMENT: WHO ARE SLOWLY, PAINFULLY
DRIVING THE JAPS OUT OF ISLAND AFTER ISLAND IN THE PACIFIC. ON LONELY
BEACHES, IN SWELTERING JUNGLES, ON BARE HILLS, ON OPEN REACHES OF THE
SEVEN SEAS MEN WE ARE PROUD TO CALL AMERICANS ARE FIGHTING, STRUGGLING
AND DYING. THEY ARE FIGHTING A WAR THEY NEVER WANTED, BECAUSE THEY MUST
---BECAUSE OUR DECENT WORLD IS THREATENED BY AS FOUL AN ENEMY AS THE
WORLD HAS KNOWN-AN ENEMY ARROGANT, TREACHEROUS, MURDEROUS AND VICIOUSLY
CRUEL, WHO HAS SWORN TO DESTROY US.
WE KNOW WHY WE BUY BONDS.
WE BUY BONDS TO "BACK THE ATTACK" WHICH THESE SOLDIERS AND SAILORS
ARE CARRYING TO THE ENEMY.
"BACK THE ATTACK" WE MUST--AND "BACK THE ATTACK" WE WILL.
THANK YOU--AND GOOD EVENING.
Regraded Unclassified
ROUND TABLE TALK, Sept. 23, 1943
215
ANNOUNCER
Columbia brings you "Report To the Nation On theThird Mar Loan,"
a
War Binds with
- round-table discussion
the Honorable Henry Morgenthau, Junior,
Secretary of the Treasury: Randolph Burgess, Chairman of the New York
Mar Finance Committee: Mrs.
Sturgies,
of
Brooklyn and Mr.
of the Office of Civilian Defense.
SECRETARY
Good evening, ladies and gentlemen. This is Henry Morgenthau, Junior.
New York City has long been a symbol of the United States because, more
than any other city, it is our melting not. So we report to you from
New York, this evening. at the close of the second week of the Bond Drive.
Mr. Burgess, I'll ask you to open our round-table discussion.
BURGESS
Thank you, Mr. Secretary. You've seen just about everything we have
to show you, in New York today! Do you think we're doing as good a Bond
job as the rest of the country?
SECRETARY
you have
The thing that imprresses me most is the variety of the groups working
A
on Bonds. Radio stations, retail stores, labor unions -- you seem to
have
everybody at work from bank presidents to the Civilian Defense
organization. I'm also impressed by the number of people who are sell-
Lev.
ing Bonds How many are there?
BURGESS
In Greater New York, about (
)people are selling Bonds.
STURGISS
Às you know, Mr. Secretary, we have to raise 4 billion dollars of the
national quantax quota of 15 billion. That calls fn hard avak.
Regraded Unclassified
216
-2-
SECRETARY
INEXXX is adming
The Treasury associt everybody to buy an extra $100 Bond, this time. -- 08-
repand women
pecially the prople working in war plants. How will you make out, there?
CIVILIAN DEFENSE
Our results, so far, show that workers are doing more than that.
Our
Average results
show a pledge of two hundred dollars per worker.
SERVETARY
BURGESS
certanly
the jit the
That our answer the people who said we couldn't do the voluntary
way.
SECRETARY
believe
I the whole country is ******* behind our voluntary War Bond way
of raising money. to finance the war, now. After all, selling Bonds this
the
way we ask forheln from people who can afford to give it to us. We
don't ask hax the impossible from neonle who simply haven't the money to
their
lend present. Under compulsory ******* nobody would have the choice.
a
plan
a
STURGISS
Mr. Secretary, I'd like to pay a special compliment to our foreign-born
people, here in New York. The Italian-Americans, the German-Americans, the
OUR Armenians and all the other groups are among our heaviest purchasers
of Bords. The fery first district in Manhattan to reach its quota was the
Lower East Side. These people are real Americans,
re
proud
of
them!
SECRETARY
They've them lived in Europe. They know what this war is about. Foreign-
born Americans are making wonderful Bond records all over the country. Last
week in St. Louis I heard the story of an American Extration
of
Regraded Unclassified
217
-3-
Italian parents, for instance, who was asked to buy a $100 Bond and bought
10
one for H thousand dollars instead.
I have a
letter from an Armenian-Itelian in San Francisco who wrote to me personally -
to buy 8 20 thousand dollar Bond.
STURGISS
of course / there are some people we aren't nã proud of. We've all heard
stories about women rushing away from the war plants on pay day and
spending every penny before they even get home -- buying sixty-dollar hats,
and expensive fur coats. I understand department store sales for the week
of September 11th were 10 per cent higher than they were a year ago. Do
you think many people who sught to to buy Bonds are spending their
money extravagantly instead of buying Bonds?
SECRETARY
Would would you genglemen answer that question?
GIVILIAN DEFENSE
that
There's no question but some people are going on spending sprees. I
suppose the answer is that there are foolish selfish people in every
induding run.
probably
country For every person who is throwing his money around there are ^ ten
or twenty who are buying Bonds, but we don't hear those stories -- we just only
hear the
about the extreme cases.
SECRETARY
Smuch
I can say this Those people who are choosing to - 'spend in the present
rather than invest in the future/', if they are really 88 smart
as they think they are, will turn it around invest in the present
the other They Vin
in order to save the futurel A sixty-dollar hat won't do anybody much good if the
^
Nazis take over Americal
Regraded Unclassified
218
-4-
BURGESS
know
figures don't lie. We wouldn't have most reached a national
today of ($
) on the 15th day of the drive if people weren't buying
Bonds. We will definitely reach the 15 billion total, won't we, Mr. Sec-
retary!
SECRETARY
I think we may go over/ 10 it
STURGISS
Qne question I quite asked is, 'Where is the money coming from?'
A
CIVILIAN BEFENSE
It's coming out of sugar bowls, out of mattresses -- everywhere.
SECRETARY
all, the The Government is simply borrowing back the money that people the are earning was work
our national income is 'way up. It will reach 150 billion dollars this
year. There are 18) billion dollars in cash
floating around the
St. can
country right now. That's the dangerousxxixx moneye cause
inflation if people don't taxtxx buy Bonds with it. That is worth
emphasizing again and again,
Bonds not only 'Back the Attack'
They
protective prevent inflation. against
BURGESS
If we get inflation, everybody's hat will cost 60 déllars,
chat's the cheapest hat we'll be able to buy. I remember, after the last
war, a ten pound bag of mg are cret 2.67.
SECRETARY
W don't want that to happen
this time.
As I say, that's another
reason for buying Bonds. But the first and most immortant F eason must
Regraded Unclassified
219
-5-
and
always be to 'Back the Attack
end the war sooner. Every
Bond not only helps to buy weapons of war -- it also saves lives.
STURGISS
in how york
our
Sales of 'E' Bonds ^ are 65 per cent of the 'E' Bond quota
Mr. Secretary,
those are the Bonds we want most of all to sell.
Ho" are 'E' Bond sales throughout the country?
SECRETARY
Te haven't sold as many BR we need to sell,
CIVILIAN DEFENSE
I've
run into several people who think it isn't important to buy 'E'
Bonds. They read about this Company buying a million dollars' worth,
afx or that Company buying two milliond dollars' worth of Bonds, and so
they decide their $18.75 doesn't mean much. They're They timed to about step to Maring forward
to
A
and buy sex a small Bond,
It
doesn't seem like much.
STURGISS
Sme beople even think
Yes: I even think come people
their $18.75 isn't needed, with so
many big
subscriptions coming in for millions of dollars.
SECRETARY
XXXXX They're certainly mistaken.
The
$18.75 Bonds are the ones we need most
of all. They!
then
Seven-eights of the
15 billion dollarsxxmx we've got to raise must come from
neople earning less than $5000 a year.
labor, from farmers, from
office workers
I
Regraded Unclassified
220
-6-
BURGESS
You say 'E' Bonds are lagging, xtxxx Mr. Morgenthau. Xatxux More
people are buying them than bought then dur ing the Second War Loan,
aren't they?
SECRETARY
Yes; we've sold in the neighborhood of half a billion dollars' worth.
On the whole, sales are very good. We don't
know the whole story yet on 'E' Bonds, either. In many
places, orders are coming in so rapidly that we won't know for several
weeks exactly how many people are buying. Just the same,
I can't say too often that people must buy 'E' Bonds to and
the point of real sacrifice.
CIVILIAN DEFENSE
I don't think it's any sacrifice to lend your money to the Government
- the safest investment in the world - at good interest. A War Bond
is safer than cash, really
SECRETARY
That's true
STURGISS
I do have one suggestion that might be called real sacrifice,
alot
Some of that dangerous 'inflation' money you spoke of, Mr. Secretary,
is going to be spent for Christmas presents. This is no year for
extravagant Christmas gifts. Every patriotic American home, this year,
ought to give War Bonds fur Christmas, gifts. And they ought to buy the
Bonds now.
CIVILIAN DEFENSE
I don't think that's much of a sacrifice.
Not when I
remember the soldiers in the Aleutian Islands. Their Christmas
Regraded Unclassified
221
-7-
tree was a piece of iriftwoodxm decorated with some scraps of
red cellophane. xxxx The boys who got presents at all got a Fire-cent chocolate
hars bar.
SECRETARY
All of us have someone we love in the armed forces. If we think of them,
I know we'll buy all the War Bonds needed to 'Back the A+tack.'
This
in
grin
mr.
I should like to announce, now, that the Third
end
War Loan Drivé will cause on October 2nd. There will be no extra week -
"
no last period for people to make up their minds. All Bonds bought be-
fore midnight on October 2nd will be counted in the Third War Loan quota,
but the drive will end on that date. It tool I am confident that we will
reach, and pass, our 15 billion dollar quota. We will 'Back the Attack'
because, in cities and towns all over the country, men and women have
organized and worked to sell Bonds as you people here in New York have
done. The We will 'Back the Attack' because, when all is said and done,
every one of us knows that we must 'Back the Attack' all the way - with
no half measures - if we are to win the war. Thank you
and
yord Enening.
#
МАЯЗЕЛ!
Regraded Unclassified
ept.of Research and
stistics, New York, September 23,1943.
222
THIRD WAR LOAN
NEW YORK STATE and UNITED STATES SALES
Cumulative through September 21st.
(In thousands of dollars)
New York
United States
Sales to Individuals
439
1,929
Attainment of Drive quota
....
55%
39%
Sales to Others
3,661
8,724
Attainment of Drive Quota
94%
87%
Total Sales
4,100
10,775
Attainment of Drive quota
....
87%
72%
Regraded Unclassified
223
September 23, 1943
Dear Mr. Stauffer:
From network and local programs I have heard
here in Washington and reports coming from the
field, I know that the entire radio industry is
doing a splendid job for the Third War Loan.
It is too early to predict how effective the
War Bond appeals have been. There is still a tre-
mendous job ahead before we reach the $15,000,000,000
goal. But I know we can count on the continued,
splendid support of the radio industry.
Please extend the Government's thanks to
every one who has helped bring the "Back the Attack"
story to the nation's radio listeners.
Sincerely yours,
(Signed) H. Mergenthaw, Jr.
Mr. Donald D. Stauffer,
Domestic Radio Bureau,
Office of War Information,
Washington, D.C.
PC:TRG:ecb
Regraded Unclassified
224
25
September 23, 1943.
My dear Mr. Dexeys
On September 22 you wrote the Secretary urging
that he send a telegram of greeting to the Var Bond
Committee in Helly Springs, Mississippi.
Mr. Morgenthau vas very glad to comply with your
request and believes that you would like to ⑉ a copy
I
of the sensage that he sent. I an therefore enclosing
this at his suggestion.
Sincerely yours,
(Signed) H. S. Miotz
H. s. Klots,
Private Secretary.
Nonerable Vall Dezey,
Sergeant at Arms,
Senate of the United States,
Washington, D. 0.
Enclesure. copy of tely to Collurs Indevell
GEF/dbe
Regraded Unclassified
225
TED R. GAMBLE
WAR FINANCE DIVISION
EXPENSES OF LOANS
TRO:ecb SEPTEMBER 23, 1943
COLLINS TIDWELL, CHAIRMAN
WAR LOAN DRIVE
MARSHALL COUNTY
HOLLY SPRINGS, MISSISSIPPI
I HAVE BEEN INFORMED THAT MEMBERS OF YOUR COUNTY ORGANIZATION WORKING WITH
THE JUNIOR CHAMBER OF COMMERCE HAVE PLANNED SEVERAL SPECIAL EVENTS TO
INSURE THE SUCCESS OF YOUR COUNTY THIRD WAR LOAN DRIVE. I WISH TO COMPLIMENT
YOU AND ALL THE WORKERS OF BOTH ORGANIZATIONS WHO ARE PARTICIPATING IN THIS
DRIVE. THIS IS THE KIND OF PATRIOTISM THAT WILL HELP US THROUGH TO VICTORY.
HENRY MORGENTHAU, JR.
SECRETARY OF THE TREASURY
Regraded Unclassified
WALL DOXEY
226
INSURT AT ARMS
SENATE OF THE UNITED STATES
OFFICE OF THE SERGEANT AT ARMS
WASHINGTON, D. c.
September 22, 1943
The Honorable
the Secretary of the Treasury,
Washington, D. C.
Dear Sir:
In re: - Telegram from the Secretary of
the Treasury urging purchase of
War Bonds: -
The attached letter from Mr. Collins Tidwell of
Holly Springs, Chairman of the War Bond Drive for Marshall
County, Mississippi, speaks for itself.
If found consistent to comply with the request
made therein, the same will be greatly appreciated and naturally
will boost the sale of War Bonds tremendously.
Holly Springs, Mississippi, is my home town and I
personally know the community is doing everything possible to
aid our present war effort.
I have made a similar request of the President.
Sincerely,
Wall Doxey,
Sergeant at Arms,
U. S. Senate
Regraded Unclassified
227
JUNIOR CHAMBER OF COMMERCE
HOLLY SPRINGS
MISSISSIPPI
September 19, 1943
Hon. Wall Doxey,
Sergeant at Arms,
U. S. Senate,
Washington, D. C.
Dear Wall:
We are coming to you with a most unusual request.
Here is what we want: The Junior Chamber of Commerce is sponsor-
ing a Var Bond Auction, Wednesday night, September 29th. Inasmuch
as we feel that it would not be convenient for you to be with us,
we would appreciate it if you would telegraph us a short message
to be read over the public address system the night before the
auction starts.
To be further trouble to you, would it be foolish or
out of the question to get a like telagram from Secretary of the
Treasury Morgenthau and the President.
This may seem foolish but we sure would like to have
these telegrams and would add much to the auction. We are not
passing up anything that would contribute to the success of our
raising our quota in the Third War Loan.
These telegrams could come on the day of the auction
or any time between now and then at your convenience. One
could
come to me as Chairman of the War Loan Drive and the other to -
Guy Palmer as President of the Junior Chamber of Commerce.
Wish you could be with us. We are planning big things
for the ole home town on that night and hope above all else to get
enough War Bonds to put us over the top.
With very best regards to you and yours, I am
Very truly yours,
COLLINS TIDWELL, Chairman -
War Loan Drive,
Marshall County
Regraded Unclassified
228
WAR DEPARTMENT
THE SCHOOL OF MILITARY GOVERNMENT
CHARLOTTESVILLE, VIRGINIA
23 September 1943.
Honorable Henry Morgenthau, Jr.
The Secretary of the Treasury
Treasury Department
Washington, D. C.
My dear Mr. Secretary:
Your very kind letter of 18 September 1943 is greatly
appreciated.
I, too, have received a number of comments indicating
that the program was effective and successful. This was due to
your foresight and careful planning, and I am very happy to have
had a small part in it. It was a great pleasure also to have an
opportunity of seeing something of you personally.
With best thanks for your kindness, and best personal
regards,
Faithfully yours,
ch. wicomsham
C. W. WICKERSHAM,
Brigadier General, U. S. A.,
For VICTORY
Commandant.
BUY
U.S.WAR
SAVINGS
BONDS
AND
STAMPS
Regraded Unclassified
228 -A
EXECUTIVE OFFICE OF THE PRESIDENT
BUREAU OF THE BUDGET
Washington, D. C. - 25
September 23, 1943.
My dear Mr. Morgenthau:
Receipt is acknowledged of your letter of September 2, 1943,
with respect to the financing of a survey by the Bureau of Labor
Statistics and the Bureau of Home Economics of income, spending,
and savings, of a sample of about 3,500 families during the third
quarter of 1943, and recommending favorable consideration of an
allocation of approximately $200,000 to the Department of Labor
from the Emergency Fund for the President for this survey.
In the judgment of this office it would not be appropriate to
draw upon the Emergency Fund for the President for this purpose but,
in view of the interest of the Treasury Department in the project
and the uses to which the resulting information would be put, I
suggest that you consider with the Chairmen of the Appropriations
Committees the possibility of financing this project by means of
reimbursement to the Department of Labor from the appropriation for
Expenses of Loans. If this handling meets with the approval of the
Committee Chairmen, there would appear to be no question as to the
availability of the Expenses of Loans appropriation.
Very truly yours,
(signed) Harold D. Smith
Director.
Honorable Henry Morgenthau, Jr.,
Secretary of the Treasury,
Washington, D. C.
Noted by Mr. Schoeneman.
Mr. Sullivan cleared with
Messrs. Ludlow and Taber.
WNT
9-24-43 Original sent to Mr. Broughton to associate with the official file.
COPY
Regraded Unclassified
229
OFFICE OF LEND-LEASE ADMINISTRATION
FIVE-FIFTEEN 22d STREET NW.
WASHINGTON 25, D.C.
September 23, 1943
MEMORANDUM
To:
The Honorable Henry Morgenthau
From:
E. R. Stettinius, Jr.
Subject: Executive Reports
Transmitted herewith, for your informa-
tion, are copies of the Executive Reports on
lend-lease operations, as of August 31, 1943.
Regraded Unclassified
230
CONFIDENTIAL
Executive Report No. I
ALLOCATIONS, OBLIGATIONS AND EXPENDITURES
LEND-LEASE FUNDS APPROPRIATED TO THE PRESIDENT
Report as of Aug. 31, 1943
(Thousands of Dollars)
Appropriation Category
Adjusted
Cumulative to August 31, 1943
Appropriations
Allocations
Obligations
Expenditures
Ordnance and Ordnance Stores
1,683,306
1,679,614
1,502,083
1,215,464
Aircraft and Aero. Material
2,669,625
2,667,886
2,506,372
1,984,255
Tanks and Other Vehicles
759,273
690,060
625,779
582,369
Watercraft
3,871,703
2,555,043
2,133,162
1,801,171
Misc. Military Equipment
353,288
353,272
304,133
228,855
Production Facilities
1,104,688
1,102,488
1,065,209
889,774
Agrie. and Indust. Commodities
12,608,929
10,110,124
6,879,547
5,775,330
Servicing, Repair of Ships, etc.
790,818
624,112
436,091
422,408
Services and Expenses
800,000
406,273
296,910
232,164
Administrative Expenses
28,999
24,431
22,761
22,488
Total
24,670,629
20,213,303
15,772,047
13,154,278
Cumulative to August 31, 1943
Procuring Agency
Allocations
Obligations
Expenditures
War Department
5,742,286
5,311,034
4,520,937
Navy Department
3,239,841
2,417,989
1,786,394
Maritime Commission and War Shipping Admin.
2,435,458
1,908,310
1,837,309
Treasury Department
3,893,110
2,878,720
1,910,268
Department of Agriculture
4,884,486
3,240,983
3,087,118
Other
18,122
15,011
12,252
Total
20,213,303
15,772,047
13,154,278
September 21, 1943
0-0430 PI of , -----------
Regraded Unclassified
231
CONFIDENTIAL
Executive Report No. 2
STATEMENT OF LEND-LEASE AID
Report as of August 31, 1943
(Thousands of Dollars)
Cumulative to
Month of
Type of Aid
August 31, 1943
July 31, 1943
August
July
Goods Transferred
13,015,749
11,901,972
1,113,777
1,018,026
Servicing, Repair of Ships, etc.
327,580
321,030
6,550
6,135
Rental of Ships,
Ferrying of Aircraft, etc.
1,208,995
1,065,102
143,893
20,316
Production Facilities in U. S.
601,150
601,956
-
806
2,437
Miscellaneous Expenses
81,042
83,279
- 2,237
3,493
Total Services
2,218,767
2,071,367
147,400
32,381
Total Goods and Services
15,234,516
13,973,339
1,261,177
1,050,407
Data on Goods Transferred include value of goods procured from lend-lease appropriations
to the President and to the War and Havy Departments.
Cumulative to August 31, 1943
Type of Aid
Br. Empire
China
U.S.S.R.
Other
Total
Goods Transferred
10,023,174
142,020
2,606,616
243,939
13,015,749
Servicing, Repair of Ships, etc.
233,718
1,705
57,392
34,765
327,580
Rental of Ships
Ferrying of Aircraft, etc.
902,850
12,345
177,175
116,625
1,208,995
-
-
-
601,150
Production Facilities in U. S.
-
Miscellaneous Expenses
49,832
1,170
2,464
27,576
81,042
-
-
15,234,516
Total Goods and Services
-
I
September 21, 1943
6-0830 PS -
Regraded Unclassified
232
CONFIDENTIAL
Executive Report No. 3
LEND-LEASE GOODS TRANSFERRED
Report as of August 31, 1943
(Thousands of Dollars)
Cumulative to August 31, 1943
Br. Empire
China
U.S.S.R.
Other
Total
Ordnance (Excl. Ammunition)
472,015
15,547
105,825
49,705
643,092
Ammunition and Components
1,043,889
22,188
274,567
23,382
1,364,026
Aircraft
1,076,042
45,722
578,175
39,272
1,739,211
Aircraft Engines, Parts, etc.
582,473
5,202
18,415
3,716
609,806
Tanks and Parts
1,235,436
923
238,286
25,869
1,500,514
Motor Vehicles and Parts
319,720
25,395
311,073
14,460
670,648
Watercraft and Parts
1,118,766
447
138,803
11,635
1,269,651
Foods
1,473,275
-
235,697
21,371
1,730,343
Other Agric. Products
353,998
41
4,080
122
358,241
NY
Machinery
359,723
4,176
209,316
3,088
576,303
Metals
539,420
9,224
233,971
1,615
784,230
Petroleum Products
560,178
2,418
28,068
1,178
591,842
Miscellaneous Materials
and Manufactures
888,239
10,737
230,340
48,526
1,177,842
Total
10,023,174
142,020
2,606,616
243,939
13,015,749
September 21, 1943
0-0830 PS natu-rinal
Regraded Unclassified
233
PARAPHRASE or TELEGRAM RECEIVED
FROM: American Consulate General, Calcutta, India
Regraded Unclassified
DATE: September 23, 1945, 2 p.m.
NO.: 1250
PRIORITY.
SECTION ONE.
SECRET
FROM ADLER FOR THE SECRETARY OF THE TREASURY.
Reference is made to Section one (over-all picture)
of telegram No. 664, dated September 6, 1943, from the
Department.
1. Severe inflation is being experienced in India,
due to the following:
(a) The cost of living has trebled; (b) notes in cir-
culation are now quadruple prewar; (o) all-India whole-
sale general price index two and one-half times; (a)
prices of food and clothing nearer quadruple.
Note issue and wholesale price index have risen twenty-
five percent since January, with the rate of increase
being the sharpest up to May and tapering off since
that time partly because of belated measures being taken
by the government. In a number of the key areas where
famine conditions prevail there is a continuation in
sustained rise in food prices.
2. st the present time total governmental expenditures
amount to rupees 900 erores annually, which is about 1/5th
of the national income; before the war expenditures amounted
to 250 crores or approximately 1/8th of the national income.
Estimated Central Government receipts from revenue and
berrowing amount to 500 oreres. The current annual
expenditures on central United Kingdom and Allied Govern-
ment's account is ostimated to be 700 crores, of which
over eighty percent is for war purposes. Expansion of
the note issue is employed to fill the gap.
3. According to information which I have received
from Raisman, the inflationary gap - which was thirty
crores monthly during the latter part of the last fiscal
year - has dropped to about fifteen since April; however,
it might be restored to thirty by the Southeast Asia
Command. Even with the anticipated 5 orores monthly
from additional borrowing and 5 from the sale of gold,
the gap might be twenty orores per month. If this were
maintained
234
- 2 -
maintained for a period of two years it would created
a severe internal strain on a seale which would seriously
hamper the war effort in the Far East of the United
Nations. Raisman indicated that if this condition
was not checked prices might rise geometrically three
to four persent per month, and that it was necessary
to take some action with respect to monetary and other
neasures.
PATTON
Regraded Unclassified
235
U.S. SECRET
BRITISH MOST SECRET
COPY NO.
13
OPTEL NO. 314
Information received up to 10 s.m. 23rd Sept.
1.
NAVAL
attempted
Atlantic 21st/22nd 9 further/attacks by U-boats on outward
bound convoy. Screen not repeat NOT penetrated and no casualties.
During 20th/21st, 1 U-boat badly damaged and on morning 22nd
1 U-boat rammed and sunk.
Med. 20th - 8 Italian minor war vessels arrived Malta; a
further 31 are on passage to Allied bases,
2.
MILITARY
Italy 5th Army Enemy offering stiff resistance on high ground
North of Salerno. On 21st, United States troops captured Eboli,
Campagna and Acerno (10 miles North of Ebol1) with patrols towards
Oliveto.
8th Army 21st Progress towards Ailetoa delayed by demolitions.
In centre, after capture of Potenza, Canadians pushed out patrols
to East and to Avigliano on North and also made contact with
patrols of 5 corps in Ginosa. In 5 corps sector, Acquiviva
Ozlaterza clear of enemy but Santeramo held in some strength.
Corsica Italian troops have entered Sartene in Southwest and
French troops are moving towards Bonifycio end Porto Vecchio.
Aegean Detachments of British troops now occupy Samos, Leros,
Kos, Symi, Stampalia and Kastelorizo.
3.
AIR
Western Front 22nd Marauders (B26) dropped 94 tons on Ervreux-
Faubille Airfield and Mitchells (B25) dropped 21 tons on Brest-
Guipavas Airfield. Fighters provided escorts and carried out
sweeps. Casualties - enemy; 6, 1, 6: ours; 3 fighters missing.
22nd/23rd Aircraft despatched - Hanover 716 (26 missing),
Oldenburg 29, Emden 12, sea-mining 4, leaflets 7, Intruders 34
(2 missing).
At Hanover weather excellent, attack very concentrated.
10 enemy - aircraft flew over East Anglia, no casualties or damage.
2 enemy sircraft destroyed.
Italy 20th/21st Targets at Benevento attacked by 50 Wellingtons
and 39 light bombers. 2 small ships probably sunk by Wellingtone
in convoy West of Leghorn.
21st 35 Liberators (B24) bombed Leghorn Harbour. 105 heavy and
medium bombers attacked enemy communications at Benevento, Capus
and Cancello, 84 medium bombers attacked troop concentrations 10
miles North of Saterno,
Corsica 21st Severel hits made on ships during bombing of
Bastia by 20 Liberators (B24).
Eastern Mea.
20th/21s
Airfields in Athens, Rhodes and Crete
attacked
41
medium,
Sght and fighter bombers who started many
fires.
SECRETARY
{}}
Regraded Unclassified
236
OFFICE OF WAR INFORMATION
WASHINGTON
September 24, 1943
The Honorable
The Secretary of the Treasury
Washington, D. C.
Dear Mr. Secretary:
The series of short talks to the
audiences at the Army-Treasury War Show,
broadcast over the Blue Network, have been
very well received and were an effective
aid to the success of the Third War Loan.
This note is just a personal
message of thanks to you for taking part
in the program and for your excellent talk
on the evening of September 15.
Cordially,
Elmerwans
Elmer Davis
Director
237
FORVICTORY
TREASURY DEPARTMENT
BUY
-
STATES
WAR
WAR FINANCE COMMITTEE
BONDS
-
STAMPS
NEW YORK
270 SIXTH AVENUE
NEW YORK CITY
CIRCLE 6-3100
September 24, 1943
The Honorable Henry Morgenthau, Jr.
Secretary of the Treasury
Treasury Department
Washington, D. C.
Dear Henry:
I just wanted to say how much we all appreciated
the job you did for us yesterday.
Everybody is very much pleased indeed and I am
sure it was a real lift in our campaign. I got & lot
of personal pleasure out of it, in addition.
With best regards.
Randager Sincerely yours,
W. Randolph Burgess
State Chairman
Regraded Unclassified
238
New Dork Stock Exchange,
PRESIDENTS OFFICE
September
Twenty-fourth
1943
Dear Mr. Morgenthau:
May I express my deep personal ap-
preciation, and the Stock Exchange's as well, of
your generous and constructive participation in our
War Bond efforts. Your visit to the Exchange on
Thursday brought much satisfaction and encourage-
ment to our community.
We are grateful for your compliment-
ary allusions to the Exchange and for your fine co-
operation in our War Bond rally. You may be assured
that this institution will continue to devote its best
efforts to our Government's war finance program and
otherwise to the successful prosecution of the war.
Thank you again for coming to see us.
With kind regards,
Sincerely yours,
Emil
Honorable Henry Morgenthau, Jr.,
Secretary of the Treasury,
Washington, D.C.
Regraded Unclassified
Treasury Department
239
TELEGRAPH OFFICE
COPY***
TU38 65 GOVT COLLECT
BEACON NY SEPT 24/43 140P
US URGENT THEODORE GAMBLE
OFFICE SECRETARY OF TREASURY
washington DC
MRS MORGENTHAU GOT MRS ROOSEVELT TO CONSENT TO MAKE HER FIRST
BROADCAST FROM WASHINGTON FOR WAR BONDS. MRS ROOSEVELT WILL
BE IN WASHINGTON TONIGHT SUGGEST YOU CONTACT HER OR HER
SECRETARY AND TRY AND GET FOR HER A HALF/AOUR COAST TO COAST
HOOK UP EITHER SUNDAY OR MONDAY EVENING. YOU CAN TELL OW! WE
HAVE SCOOPED THEM AGAIN. COPY TO MRS KLOTZ
HENRY MORGENTHAU JR
157P
Regraded Unclassified
240
Under Secretary's Office - 278
Exp. Loans-War Finance
September 24, 1943
TO ALL STATE CHAIRMEN (List attached)
Please contact every plant in your state making war material
and ascertain percentage of total employees buying extra bonds in Third
Mar Loan Drive. Let no have a preliminary report of this survey by
wire not later than Monday noon. Next week every effort should be made
to get all plants that have not already done so to put on a campaign
to get all employees to buy extra bonds. I personally attach
great importance to this.
HENRY MORGENTHAU, JR.
Secretary of the Treasury
DWB:ew
Regraded Unclassified
241
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
nn
DATE
TO
Secretary Morgenthau
September 24, 1943
FROM Fred Smith
Herman Hettinger reports to me that for the week beginning
September 13, 62.6% of all the nation's radio facilities were
employed for the Third War Loan. He estimates that during the
week we should get approximately 290,000,000 listener impressions.
t
Regraded Unclassified
9-24-43
Recretary Morganthau
242
I asked Callahan to get
excerpts from the commentators
after your "Baok the Attack"
show about Sicilian losses.
Here are some of them.
all
Fred Smith
Room 8901
243
Baukhage
1:00 P.M. 9/16
You may have noted that Secretary Morgenthau last night,
in showing the hard, cold facts why your support in the purchase
of bonds is necessary, revealed the figures of our losses in
equipment in Sicily. There the casualties were comparatively
light, the campaign was not a gruelling one and yet over half
of our equipment was destroyed.
-0-
Regraded Unclassified
244
9/16/43
Twelve O'Clock Senate
Treasury Secretary Morgenthau warns that America is
indulging in criminal over-confidence in Victory. Morgenthau
declares that the attack in Italy is merely the beginning of
the war so far as the United States is concerned, and urges
the country to "Back the Attack." The Treasury Chief points
out that every time we think the war is in the bag, we are
paying the way for death to more American soldiers.
12
Regraded Unclassified
WESTERN
245
any
1290
SYMBOLS
The is -
Telegram or Cable-
DL-Day Lanter
gram unless ins de-
dicated by a suitable
UNION
NT=Owmahr Telegram
ferred character is in-
LC=Delered Cable
symbol above or pre-
coding the address.
A. N. WILLIAMS
NEWCOMB CARLTON
NLT-Cable Hight Latter
PRESIDENT
J. c. WILLEVER
CHAIRMAN OF THE BOARD
FIRST VICEPRESIDENT
Ship Radiogram
is fling time shown in the date line on telegrama and day letters in STANDARD TIME at point of origin. Time of receipt la STANDARD TIME as point of restination
CDU147 398 NL COLLECT 1/191=NEWYORK NY 16
1943 SEP 17 AM 7 16
JERRY HUGHES, WAR FINANCE DIV US TREASRY=
643 WASHINGTON BLDG WASHDC=
347
COLUMBIA BROADCASTING USED SIZEABLE PIECES IN SECRETARY
MORGENTHAU'S STATEMENT ON THREE NETWORK BROADCASTS 11 PM
MIDNIGHT, AND 1 AM AND ALSO ON A WABC BROADCAST AT 7:45 AM
THURSDAY THE LONGEST WAS BY NED CALMER AT 11 PM HE SAID:
QUOTE THE MOST SPECIFIC INFORMATION ON THE ITALIAN CAMPAIGN
A WHOLE WAS REVEALED TONIGHT BY MR:- MORGENTHAU. THE
SECRETARY OF THE TREASURY HE DECLARED THE INVASION OF ITALY
IS MERELY THE BEGINNING OF THE WAR so FAR AS THE UNITED
STATES IS CONCERNED AND THE CONQUEST OF SICILY. ONLY AN
OUTPOST ALONG THE ROAD. COST THE ALLIES LOSSES IN MATERIAL
UP TO 54 PER CENT> I SAY NOTHING MORGENTHAU WENT ON.
ABOUT KILLED AND WOUNDED BUT AS TO THE BATTLE OF SALERNO.
HE SPOKE OF TREMENDOUS LOSS OF LIFE. AND SAID IT WILL TAKE
MONTHS. AT THE LEAST TO CONQUER ITALY> POINTING TO THE
OPTIMISM ENGENDERED B-Y OUR NORTH AFRICAN SUCCESSES. THE
SICILIAN CAMPAIGN. AND THE ITALIAN SURRENDER. HE SAID.
LET US STOP THIS FOOLISH. CHILDISH OVEROPTIMISM AND
VER-CONFIDENCE» IT IS CRIMINAL IT IS CRIMINAL BECAUSE
EVERY TIME WE DECIDE THE WAR IS WON. WE SIGN A DEATH WARRANT
THE COMPANY WILL APPRECIATE SUGGESTIONS FROM ITS PATRONS CONCERNING ITS SERVICE
Regraded Unclassified
246
WESTERN
1290
SYMBOLS
CLAP
DL-Day Lane
This
degram
MR.
ned character
ested by . suitable
UNION
NT=Ownight Telephone
LC=Def=red Cable
ebol above of pre-
MLT-Cable Night Laner
dine the address.
N. WILLIAMS
NEWCOMB CARLTON
J. c, WILLEVER
PRESIDENT
CHAIRMAN OF THE BOARD
FIRST VICE-PRESIDENT
Ship Radiogram
Sing una shown in the date line on telegrams and day letters is STANDARD TIME at point of origin, Time of receipt is STANDARD TIME atrpoint of destination
DU147 2/207
1943 SEP 17 AM 7 16
FOR ANOTHER THOUSAND. OR TWO THOUSAND. OR FIVE THOUSAND
OR FIVE THOUSANDAMERICAN SOLDIERS AND SAILORS
LET MANAGEMENT SPEND LESS TIME TELLING THE PUBLIC WHAT A
MAGNIFICIENT JOB IT is DOING> WHICH EVERYBODY KNOWS. AND
MORE TIME DOING THE JOB» LET LABOR THINK LESS ABOUT THE FUN
TS GOING TO HAVE ON SATURDAY NIGHT AND THINK MORE ABOUT
WAYS TO INCREASE PRODUCTION AND BUY MORE BONDS> MORGENTHAU
AID THAT AFTER THE ITALIAN SURRENDER THE PUBLIC ADOPTED THE
TTITUDE THAT THE WAR WAS WON> WE COULD STOP DRAFTING.
SOLDIERS WE COULD STOP PRODUCING WEAPONS WE COULD REDUCE
TAXES. EVERYBDOY COULD SIT BACK AND TAKE IT EASY WELL.
HE CONTINUED YOUVE SEEN THE NEWSPAPERS TODAY> WE ARE HOLDING
AROUND NAPLES BUT WE ARE JUST BARELY HOLDING WITH
TREMENDOUS LOSS OF LIFE> IN A HARD WEEK OF FIGHTING WE HAVE
MANAGED TO GAIN ONLY A SMALL FOOTHOLD IN ITALY. TODAY THE
SITUATION IS CRITICAL IN ANY EVENT WE STILL HAVE TO DRIVE
NORTH ABOUT 500 MILES. WITH THE GERMANSFIGHTING EVERY INCH
OF THE WAY AT THE VERY LEAST. IT WILL TAKE MONTHS AND WHEN
AND IF WE CONQUER THE WHOLE OF ITALY. WE WILL STILL BE
NOWHERE NEAR GERMANY= WE WILL STILL HAVE A LONG WAY TO GO.
UNQUOTE=
PAUL WHITE COLUMBIA BROADCASTING SYSTEM NEWYORK
THE COMPANY WILL APPRECIATE SUGGESTIONS FROM ITS PATRONS CONCERNING ITS SERVICE
Regraded Unclassified
247
ENCENPTS FROM BILLY REPAID'S RADIO BROADCAST OF SEPTEMBER 15, 1943.
11:00 P.M.
WOL
As you folks know and know well, If you have been following our
nightly broadcasts, we have absolutely failed to pile aboard the
band wagon of those who forsee an early victory over Germany -
To stated Jenuary the Third of this year that 1943 would indeed
be B year of progress, but definitely not the Victory year
and see absolutely no reason to change our mind at this point,
In fact, this was the basis of a talk we gave at nooh today to
the Down town Lions Club at the Mayflower Hotel.
Well, tonight at the "Back the Attack" exhibits here in Washington
Henry Morganthau Jr., the Secretary of the Treasury, made a speech
And I wish every single American could have heard it. I believe
this speech was just for local consumption, but, in my opinion
this same speech should be given to all America on the radio
networks, and then repeated SO all America could hear his words.
So Instead of any closing commercial tonight, I'm taking it upon,
myself to pass along to you some of the things Mr. Morganthau/and
I hope you'll remember because they are mighty important, believe
me. Now among other things Mr. Morganthau said this -- Quote"
"From where I am standing I can see 8 155 millimeter
Howitzer. In one month, In Sicily, we lost 13 per cent
of all the 155 millimeter Howitzers we landed. Near
this Howitzer I see some 57 millimeter guns. In
Sicily we lost 46 per cent of all the 57 millinster
June we put Into action there. I'm not talking about
Ituly. I'm talking about Sicily. In Sicily we met
only a small fraction of the opposition we RIG getting
from the Cermans, now, in Italy. Sicily was merely an
outpost of the fortress of Europe, very lightly defended.
Listen to what It cost us. We lost 36 per cent of the
motor carriages for our 75 millimeter guns. We lost
22 percent of the carriages for our 105 millimeter
Howitzers. We lost 54 per cent of the carriages for
our 37 millimeter guns! All this in a minor campaign
that lasted one month! We lost 7 per cent of our light
tanks, B per cent of our medium tanks. We lost nearly
13 per cent of our 37 millimeter guns
when we were
cleaning the Germans out of North Africa, we were as
proud as though the war were already won. The fact is
that the British did as much as we did, If not more.
And at the most, in North Africa, we engaged no more
than 15 German divisions. The Russians are fighting
300. When we best the Germans in Sicily, we cheered
again. The war was practically over, again. Well
Sicily was only an outpost held by two or three German
divisions. The Italians hardly fought back. Yet, again,
with British help, it took us a full month to conquer
Sicily. And, as I say, in certain types of equipment we
lost half of the weapons we put into the bettle. A week
ago, Italy surrendered. We did the same thing all over
Regraded Unclassified
248
-2-
again. The war was won. We could stop drafting
soldiers. We could stop producing weapons. We
could reduce taxes, Everybody could sit back
and take it easy
let us stop this foolish,
childish, over-optimism and over-confidence.
It is criminal. It is criminal because, every
time we decide the war is won, we sign a death
warrant for another thousand, or two thousand,
or five thousand American soldiers and sailors.
End of quotation from the remarks made by your Secretary of
the Treasury. That gives us all something to think about -
so - let's think about it -- the facts are - that the war
in Europe - the real test, has not yet started - and we
might just as well know it - Americans can face the facts
- no matter how tough they may seem - 80 let's be done with
Pollyanna Prophesies - and get down to cold stark realities.
Thank you Mr. Morganthau.
Regraded Unclassified
EXCERPT
249
NOON NEWS
September 16, 1943
Treasury Secretary Morganthau comes out with some strong
words--words explaining more fully that "Back The Attack" slogan
of the War Bond Drive. Morgenthau says this attack--the one in
Italy--is the beginning of the war 88 far as the United States is
concerned. He called upon Americans to put aside "criminal" over-
confidence. Morgenthau uttered these words after the Treasury
announced the total sales for the first week of the Bond Drive
Regraded Unclassified
EXERPT
250
GEORGE PUTNAM AND THE 11:15 NEWS - September 15, 1943
Our Treasury Secretary, Henry Morgentahu, lashed out at
what he calls this foolish, childish, over-optimism; declared
that the conquest of Sicily, merely an outpost of the fortress
of Europe cost the Allies materiel losses ranging up to 54 percent.
Solemnly Morgenthau warned that the attack in Italy simply is
the beginning of the war &8 far as the United States is concerned.
He then gave the nation fair warning; this Third War Loan
Drive--the figures on which I'll give you later on in this program-
this current 15-billion dollar war loan drive will not be the
last.
Regraded Unclassified
251
ESSO PEPORTER -- 11:00 PM -- 9/15/43
Washington -- Secretary of the Treasury, Morgenthau, reveals that the Allied
situation in Italy is oritioal, entailing a "tremendous loss of life."
*We are holding around Naples," he said, "Just holding. In a hard week
of fighting, we have managed to gain only a small toehold in Italy."
Morgenthau spoke in a bond selling address, he said he believed the Italian
campaign at the very least would take "months."
"And, months from now." he added, "This winter or next spring, when and if
we conquer the whole of Italy, we will still be nowhere near Germany. %
will still have a long way to go."
MIDNIGHT EXTRA -- 12:00 -- 9/15/43
Secretary Morgenthau, for instance, discloses the high cost of
the conquest of Sicily....and that, he adds, 18 merely an outpost of the
fortress of Europe. Speaking over the Blue Network this evening, the
treasury head revealed that the Allies lost up to fifty four percent in
equipment in the conquest of Sicily.
Morgenthau says the attack on Italy is the beginning of the war
68 far as we are concerned. And he adds that any optimism at this time is
oriminal. The treasury adds that he cannot say anything of killed or
wounded
or of the vast amount of secondary materials used
like eleven
hundred miles of copper telephone wire.
But he emphasizes that every time we get optimistic enough to
decide the war is won---wo sign a death warrant for another thousand, or
two thousand or five thousand soldiers.
Regraded Unclassified
252
WATCH THE WORLD GO BY --Roy Porter -- 11:00 -- 9/15/43
Just a hint of what we can expect has been given over this network
tonight--by Secretary of the Treasury Morgenthau--who painted none too
optimistic a picture of what is going on--and what is coming. Morgenthau
was talking about Sicily--and he cited, for the first time officially. some
of the losses that we sustained in Sicily. He emphasized that in Sicily we
met only a samll fraction of the opposition we are getting now, from the
Germans, in Italy--and then he talked plain figures. Whether you heard his
radio statement or whether you didn't those figures are important. Here's
what Morgenthau said:
In Sicily, we lost this amount of equipment: THIRTEEN per cent
of all the 155 howitzers landed by the Allies; FORTY SIX per cent of all the
57 millimeter guns put into action; THIRTEEN per cent of all the guns NO
used; EIGHT per cent of all the medium tanks and SEVEN per cent of all the
light tanks; FIFTY FOUR per cent of the carriages for the 37 millimeter
guns; THIRTY SIX per cent of all the carriages for the 75's; and TWENTY TWC
per cent of all the carriages for the big 105's.
"I say nothing of the killed and wounded," the secretary continued.
"I say nothing of the vast quantity of secondary materials used--such as
ELEVEN HUNDRED miles of copper telephone wire."
And then, Morgenthau told a lot of us off, in blunt terms. "Let
us stop this foolish. childish. over-optimism and over-confidence," he
appealed. *It is oriminal. It 18 oriminal because every time we decide the
war is won, we sign a death warrant for another thousand, or two thousand,
or five thousand American soldiers and sailors.
(Continued)
Regraded Unclassified
253
PORTER -- (Continued)
"Let management spend less time telling the public what a
magnificent job it is doing--which everybody knows--and more time doing the
job. Let labor think less about the fun it's going to have on Saturday
night--and think more about ways to increase production--and buy more bonds."
And solemnly. he werned, that the attack on Italy is the beginning
of the war, as far as the United States is concerned.
NEWS -- 12:55 AM 9/16/43
Secretary of the Treasury Morgenthau spoke tonight on the Blue
Network of the oritical situation in Italy. He said he believed the
Itelian campaign--at the very least, would last for months. Of the fight-
ing in Italy he said; We are holding sround Naples--just holding. He
declared that the fighting at Salerno has entailed a tremendous loss of
life. Speeking of the time when Italy will be conquered, Mr. Morgenthau
added that we will still be nowhere near Germany. We will still have a log
way to go. The Secretary of the Treasury made these statements at e war
bond rally in connection with the third war loan drive, now in progress.
BAUKHAGE TALKING -- 9/16/43
You may have noted that Secretary Morgenthau last night, in showing
the hard, cold faots why your support in the purchase of bonds is necessary,
revealed the figures of our losses in equipment in Sicily.
Regraded Unclassified
254
TREASURY DEPARTMENT
WASHINGTON 25
DINGHON
SAVINGS STATE
705 Washington Building
September 24, 1943
AIR MAIL
-
SPECIAL DELIVERY
The Honorable Henry Morgenthau, Jr.,
Fishkill Farms,
Fishkill, New York.
Dear Mr. Morgenthau:
I am enclosing herewith the first crop of answers
received by William Green of the A. F. of L. and Jim Carey
of the C.I.O. as the result of the telegrams which they sent
out last week-end to the presidents of their national and
international unions and of their state Federations and In-
dustrial Union Councils.
These replies are very impressive, both because
of their promptness and because of their fine spirit. It is
obvious that the top officials in both the A. F. of L. and
C. I. 0. are keenly alive to our War Bond program and the
Third War Loan Drive, and, in this campaign, almost universal-
ly feel that they have been given a foremost part therein.
Both Mr. Green and Mr. Murray were away from Wash-
ington last Friday when you suggested these telegrams. The
junior officers who acted for them advised me very positive-
ly that the question of increased income tax vs. increased
social security tax ought not to be included in these tele-
grams, as both labor bodies had delegated reponsibility over
Murray would be willing to by-pase these committees by con-
tax questions to special committees and neither Green nor
sulting the presidents of their international unions and state
federations direct.
Yours sincerely,
James Director, James L. f. Houghteling, Haghteting
National Organizations Division.
PORDEFINSE
BUY
Enclosures
CRITED
STATES
SAVINGS
JLH/myr
/
-
Regraded Unclassified
255
I
September 21, 1943
The following telegram was sent by Mr. William Green,
President of the American Federation of Labor, to all national
and internati nal unions affiliated with the American Federation
of Lobor.
TELEGRAM
(Copy)
WASHINGTON, D.C. SEPTEMBER 15, 1913
02 TREASURY MORGENTHAU REQUESTS VE TO ASCERTAIN BY WIRE PROGRESS OF
1.1170 TAX LOAN DRIVE AMONG OUR AFFILIATES. ARE YOUR MEMBERS BUYING BONDS I.,
TV PAYROLL DEDUCTIONS? CAN YOU SUGGEST ADDITIONAL STEPS It STIMULATE
III CALLOAIGH? PLEASE REPLY X TIRE.
WILLING GRIEN
The following constitute the replics which have been
received by the President of the American Federation of Labor to date:
POSTAL TELEGRAPH
(Copy)
ST. LOUIS, NO. SEPTEMBER 20, 1943.
THE GAMEN, PRESIDENT AMERICAN FEDERATION OF LABOR
A / 02 L BIDG (WASHINGTON D c)
ASPORTS REACHING THIS OFFICE INDICATS OUR MARKERS QUITE GENERALLY
XX BUYING BONDS IN CURRENT DRIVE IN ADDITION TO THEIR WAGE
DEDUCTION COMMITMENTS, BUT UNLESS THE WAGE INCREASE RECOMMENDED
E MAY FOR RAILROAD EMPLOYES BY A LEGALLY CONSTITUTED EVERONCY
SCAND AND WHICH THE EMPLOYERS ARE NOW MORE THAN WILLING TO MAKE
LIVECTIVE, IS APPROVED BY THE GOVERNMENT AUTHORITY WAICH IS HOW
THAT INCREASE MANY 07 OUR MEN ESPECIALLY IN COMMUNITIES
are TAX EFFORT INDUSTRIES ARE LOCATED AND LIVING
COSTS HAVE ASMORAALLY INCREASED WILL BE Absolutely UNABLE
TO CHANGEL MORE THAN TEN PERCENT 02 THAIR SHRUNKEN INCOMES
2.20 WAR BONDS
V 0 CARDIER PRESIDENT THE ORDER 02 PAILROAD TEMEBRAPHERS
Regraded Unclassified
256
II
POSTAL TELEGRAPH
Regraded Unclass
(Copy)
WASHINGTON D C SEPTAIBER 20, 1943
TM GREEN PRESIDENT
PEOGIN FEDERATION OF LABOR A I OF L BUILDING 9TH AND
ASS ATE XII (WASHINGTON D C)
SLING BUYING EXTRA BONDS DURING DRIVE. ACTIVITY BEING
THROUGH LOCAL COMMITTEES
too If GEORGE (PRESIDENT NATIONAL FEDERATION 07 10ST OFFICE CLERKS)
UNION
(Copy)
NEW YORK K Y CENTER 20, 1943
SMAR GREEN, PRESIDENT
AMERICAN PROTRATION 07 LABOR AMERICAN FEDERATION OF
CAWN SLDG
NO OTHER GROUP 1X THE LABOR novelsent IS GIVING 1028 OR
DOING MORE FOR THE THIRD WAR LOAN DRIVE THAN THE ACTORS,
PERFORMS, AND ENTERTAINERS OF THIS INTERNATIONAL. TE
A.C. SURS THAT SECRETARY I. AWARE 02 mis AND
14 ARE THEREFORE WITHOUT SUGGESTION AS TO HOW OUR PROPLE
CAN 30 1027. FROM THE SOCALLED LITTLE ACTORS TO THE
STATE, THEY 196 ALL BUYING VIAT THEY CAX Ill WAR
CTATES AND BONDS. REGARDS=
PAUL PRESIDENT ASSOCIATED ACTORS AND ARTISTE OF AMERICA
WESTERN UNION
(Copy)
ALBANY X Y SEPTEMEN 20, 1943
WILLIAM GREEN, PRESIDENT
AMERICAN FEDERATION 08 LABOR A 7 OF L BLDG
TOU KAY ADVISE SECRETARY OF TREASURY MORGENTHAU THAT
INTERNATIONAL BROTHERHOOD OF PAPER LAKERS IS PARTICIPATING
WHOLE-HARTEDLY IN THE THIRD WAR LOAN DRIVE AND MIS
PARTICIPATION IS IN ADDITION TO THE ROWAR PAYROLL
DEDUCTIONS FOR BONDS-
ATTHIUR HUGGINS PRESIDENT (INTIL. 02 PAPTR MAKERS)
III
257
WESTERN UNION
(Copy)
CINCINNATI, OHIO SEPTZMBER 20, 1943
: PRESIDENT
AMERICAN FED OF LABOR A 2 OF L BIJO
HAVE YOUR TELEGRAM IN WHICH YOU STATE SECRETARY MORGENTHAU
......................... YOU TO ASCERTAIN BY WIRE PROGRESS IN THIRD WAR
DRIVE AMONG AFL AFFILIATES PLEASE BE ADVISED THAT OUR
LASTS ARE BUYING BONDS IN ADDITION TO PAYROLL DEDUCTIONS
100 our LOCAL UNIONS ARE PUTTING THEIR MONEY INTO THIS
MAR BOND DRIVE THE INTERNATIONAL UNION HAS JUST BOUGHT INC
THOUSAND DOLLARS WORTH OF THESE BONDS DO NOT KNOW OF
ATT SUGGESTION I CAN MAKE AS WE ARE MAKING MUCH PROGRESS IN
7.45 LATTER-
HARRY STEVENSON (PRESIDENT IROX MOMING INTERNATIONAL UNION)
WESTING UNION
(Copy)
CINCINNATE, 0910 20, 2010
TIMES GREEN
PRESIDENT AMERICAN FEDERATION or LADOR AVL blug
22846 OF OUR ORGANIZATION ARE BUYING WAR DUTOS TO THE
ALLEST EXTENT 07 THEIR ADDITY IN ADDITION TO EXE
PATICLE MAN. OUR INTERNATIONAL: IS 13.50 FICTURES
02 MC IN OUR JOURNAL SUPPORTING THIS CAMPAIGN. CAN OFFER
SUGGESTIONS TO STIMULATE THIS CARPAION. WATER
RAY KELSAY PRESIDENT RETAL POLLSHERS MARKS
BUTFERS AND HIZPING INTER'L UNION.
WESTERN UNION
(Copy)
DETRUIT, KICHIGAN SEPTEMBER 20, 1943
WILLIAM GREEN, PRESIDENT
AMERICAN FEDERATION OF LABOR A 7 OF L JTDO
rodit telegram received. INTERNATIONAL UNION SUBSCRIBED SEVEN HUNDRED
INJUSAND DOLLARS IN THE THIRD BOTO DRIVE. YE HAVE NO VINAL REPORT
2001 OUR MEMBERSHIP BUT WE KNOW THEY ARE MUSTING HA D TO PUT THE BOND
OVER THE TOP
an (ACTING FRES. AMALOGRATED ASSIN. STREET & ELEC. RX. ENFLOYEES
OF AMERICA)
Regraded Unclassified
IV
258
WESTERN UNION
(Copy)
Washington (1) D.C. Sept. 20, 1943
2.5. William Green, President
American Federation of Labor
700 AFofL Building
Washington, D.C.
componding your wire addressed President Haggerty officially
absent International Brotherhood Bookbinders have purchased
to date 0185 thousand dollars in Mar Bonds 375 thousand of
titch purchased in Third War Loan Drive. We urge local
emberships to purchase to the limit their stility. Clorks
- headquarters are purchasing bonds limit their ability.
" have no payroll deduction plan.
J. B. Previtt
Secretary-Treasurer
WESTERN UNION
(Copy)
WASHINGTON DC SEPT. 20, 1943
AMIX ORGEN
AMERICAN FED OF LABOR BLAC
2% ANSWER TO YOUR WIRE OUR INTERNATIONAL UNION HAS PURCHASED
$500,000 OF THIRD WAR LOAN BONDS. OUR SUBORDINATE UNIONS ARE
PURCHASING BONDS TO THE LIMIT OF THEIR FINANCES. IN ADDITION
OUR INDIVIDUAL MEMBERSHIP ARE NISO COOPERATING IN MI PAYMOLL
DEDUCTIONS AND ARE BUYING BONDS WHERE THE PLAN IS
NOT IN STRT
HARRY 0 DATES (PRESIDENT, BRICKLAYERS INTERNATIONAL under)
WESTERN UNION
(Copy)
WASHINGTON D C STPT. 20, 1943
WILLIAM GREEN PRESIDENT
AMERICAN FEDERATION OF LABOR A 7 02 L BLDG
THE INTERNATIONAL UNION 02 OPERATING ENGINEERS HAS PURCHASED
- BONDS ON THIS THIRD WAR LOAN DRIVE IN ADDITION TO REGULAR 10
ZOCAL UNIONS. ALL REPRESENTATIVES AND employees ARE PURCHASING
$150,000 WORTH OF GOVERNMENT DEFENSE BONDS IN THIRD MAR LOAN DRIVE.
PERCENT DEDUCTIONS FROM SALARIES. I N INFORMED THAT THE MEMBERSHIP OF
Regraded Unclassified
259
V
DO
ARIUS LOCALS ARE ALSO PUNCHASING ADDITIONAL BONDS
2. E MALONEY (PRESIDENT)
WESTERN UNION
(Copy)
BOSTON MASS SEPT. 20, 1943
TITNING GREEN
PRESIDENT AP OF L BLDG
CUIL ORGANIZATION HAS SENT OUT LETTERS TO ALL OUR LOCAL UNIONS TO
BUY MORE WAR BONDS
JOHN F MONAMARA (PRESIDENT FIREIEN & OILERS INTERNATIONAL UNION)
WESTERN UNION
(Copy)
FORT STWARD N Y SEPT. 20, 1943
TILLINI GREEN PRESIDENT
AF OF L AZ OF L BLDG
IN REPLY TO YOUR telegram REGARDING PROGRESS OF THIRD WAR LOAN
DRIVE STOP OUR MEMBERS ARE BUYING BONDS IN ADDITION TO PAYROLL
DERISTIONS. THE INTERNATIONAL BROTHERHOOD OF PULP SULPHITE AND PAPER
TILL WORKERS HAS BACKED THIS DRIVE TO NE EXTENT OF SIXTY THOUSAND
JOLLARS AND IS URGING ITS LOCAL UNIONS AND INDIVIDUAL MEMBERS TO BUY
BONDS TO THE EXTENT OF THEIR ABILITI. OUR INTERNATIONAL UNION COULD
DO DAN BETTER WERE YE NOT COMPELLED TO SPEND SO LUCH WORKY IN
DEFENDING OURSELVES AGAINST THE RAIDING ACTIVITIES OF THE CIO AND
DISTRICT 50 OF THE MINE WORKERS
JOHN P BURKE (PRESIDENT, INTERNATIONAL BROTHERNOOD OF PULP
SULPHITE AND PAPER HILL WORKERS OF THE U.S. MID CANADA)
WESTERN UNION
(Copy)
WASHINGTON D C SET 20, 1943
TILLIAM GREEN
PRESIDENT A 7 OF L
YOUR TELEGRAM OF SEPT 19, 1943 TO J R WILSON SECY TREAS AT UTAH THE FED
OF LABOR 535 GARDEN AVE SALT LAKE CITY UTAH IS UND LIVERED FOR
FOLLOWING REASON: MR WILSON HAS LEFT SALT LAKE CITY UTAH
TESTERN UNION TELEGRAPH COMPANY
Regraded Unclassified
260
VI
WESTERN UNION
(Copy)
PROVIDENCE R I SEPT. 20, 1943
: GREEN, PRESIDENT
assican FEDERATION 02 LABOR AMN FEDERATION 02 LABOR BIDG
REGARDING TELEGRAM THIRD WAR LOAN DRIVE STATE FEDERATION OF LABOR
JOING EVERYTHING POSSIBLE TO PROMOTE DRIVE STOP WOULD SUGGEST IF
POSSIBLE LABOR MAN BE APPOINTED FULL TIME BASIS BY TREASURY DEPT TO
T.J. IN PHODE ISLAND HAVE NO ONE HERE WHO CAN AFFORD TO GIVE UP
70.8 AND COMFINE THEMSELVES WHOLLY TO THIS HUGE TASK STOP HAVING MEETING
TRURSDAY STOP MEANTIME WILL DO EVERYTHING POSSIBLE
ELIZABETH M CAHER SECRETARY TREASURY RI AMERICAN FEDERATION
OF LABOR PROVIDENCE RI
WESTERN UNION
(Copy)
TAMPA FLA SEPT 20, 1913
HOM WILLIAM GREEN, PRES AMERICAN FEDERAL IABOR
AF OF I, BLDG
OUR IMMEDIATE FIGURES ARE 56,725.00 PURCHASED THROUGH LABOR UNION
IN THE TAMPA DISTRICT WILL HAVE MORE COMPLETE REPORT AFTER MEZT-
INJ OF CENTRAL TRADES AND LABOR ASSEMBLY TUESDAY THE 21ST WILL
ADVISE
W E SULLIVAN SEC FLORIDA FEDERATION OF LABOR
POSTAL TELEGRAPH
(Copy)
AUSTIN TEXAS SEPT. 20, 1943
WILLIAM GREEN, PRESIDENT
MERICAN FEDERATION OF LABOR (WASHINGTON IC)
RORTEL MEMBERSHIP AND UNIONS IN TEXAS SUPPORTING THIRD WAR LCAM
ENTIUSIASTICALLY IN ADDITION TO PAYROLL DEDUCTION. SEVERAL AREAS
IN THIS STATE HAVE ALREADY PASSED QUOTA
HARRY N ACREMAN, EXECUTIVE SECRETARY TEXAS STATE FEDERATION
OF LABOR
VII
261
WESTERN UNION
(Copy)
PHOENIX AIOZ SEPT. 20, 1943
WILLIAM GREEN, PRESIDENT
AMERICAN FEDERATION OF LABOR WASHDC
24 YOUR TELEGRAM ARIZONA LABOR HAS TO THIS DATE CONTRIBUTED ONE
RADRID FIVE THOUSAND ON "BUY A BORBER" CAMPAIGN IN ADDITION TO
THOLE HEARTED PARTICIPATION IN PAYROLL DEDUCTION PLANS. TE
COOP TRATE FULLY WITH ALL CITY, COUNTY AND STATE GROUPS IN PROMO-
TION OF BOND SALES. ENTHUSIASM ON PART OF LABOR LEADERS AFFEARS TO
DR. B ST STIMULUS
CHARLES COFFER SECY TREAS ARIZONA STATE FEDERATION CF LABOR
(HHHH)
WESTERN UNION
(Copy)
PVATELLO IDA SEPT 20, 1943
VILLIAN GREEN
PRES A F OF AFL BLDG WASHIC
LOCAL UNIONS ARE BUYING ADDITIONAL BONDS AND MANY OF OUR MEXBERSHIP
ARE DOUBLING THEIR PURCHASE OF WAR BONDS THIS MONTH AND THE TEN 122
JAT. DEDUCTIONS ARE CONTINUED
AUG ROSQVIST SEC TREAS IDAHO STATE FEDERATION OF LABOR
WESTERN UNION
(Copy)
LANSING MICH SEPT 20 1943
TILLIAM GREEN PRESIDENT AMERICAN FEDERATION OF LABOR
AF OF L BLDG WASHING
MILIBERS OF LABOR IN MICHIGAN ARE BUYING EXTRA DONDS IN THIRD LOAN
JRIVE, LANSING HAS ALREADY EXCEEDED QUOTA
JOHN REID SECRETARY FEDERATION OF LABOR
WESTERN UNION
(Copy)
BARRE VT SEPT 20 1943
TILLIAL GREEN PRESIDENT
AMERICAN FEDERATION 02 LAZUR WASHINGTON DC
Regraded Unclassified
VIII 262
HLL AFFILIATES OF VERMONT FEDERATION OF LABOR GOING THE LIMIT OF THEIR
TREASURY FOR THIRD WAR LOAN DRIVE. MEMBERS BUYING BONDS IN ADDITION TO
PAYROLL DEDUCTION. SUGGEST PEP UP RADIO APPEALS
ROBERT SINCLAIR (PRESIDENT)
WESTERN UNION
(Copy)
ELYRIA OHIO SEPT 20 1943
WE GREEN
PRESIDENT A F OF L BLDG YIASH LXC
BOYS ARE BUYING ALL CAN AFFORD. SUGGEST PASS COLE BILL MORE WAGES
LORE BONDS
WALTER N NEVINS
WESTERN UNION
(Copy)
LITTLEROCK ARK SEPT 20 1943
WILLIAM GREEN
PRES AMERICAN FEDERATION LABOR AF OF L BLDC WASH DC
RETEL ESTIMATED FIFTY PERCENT OUR MIMBERS ARE BUYTING BONDS IN ADDITION
PAYROLL DEDUCTIONS LITTLEROCK CENTRAL TRADES COUNCIL HAS SOLD APPROXI-
mathly EIGHTEEN THOUSAND DOLLARS IN BONDS THIRD WAR LOAN DRIVE SIMILAR
PROGRAMS IN OTHER LOCALITIES. FT SMITH HOT SPRINGS INTORADO REPORT
PROGRESS YOUR PERSONAL WIRE TO OUR CENTRAL AND BUILDING TRADES COUNCIL
WILL STIMULATE ACTION
L P WILLIAMS SEC TREAS ARK STATE FEDERATION LADOR
WESTERN UNION
(Copy)
COLUMBIA SO CAR SEPT 20 1943
WILLIAM GREEN
A 7 OF L BLDG WASH DC
MEMBERS COOPERATING FINE IN THIRD WAR LOAN DRIVE SUGGEST YOU SEND
CENTRAL BODYS IN COLUMBIA SPARTANBURG AND CHARLESTON AN APPEALING
TELEGRAM WILL HELP THE SITUATION I THINK so CAR FEDERATION OF LABOR
JUST PURCHASED AN ADDITIONAL $1,000 BOND
FRED 3 HATCHELL (SECRETARY)
Regraded Unclassified
IX
263
WESTERN UNION
(Copy)
MCCOMB MISS SEIT 20 1943
WILLIAM GREEN PRESIDENT
AMERICAN FIDERATION OF LABOR A F OF L bldg WASH DC
ASSURING YOU THAT THE MEMBERS OF THE MISSISSIPPI STATE federation OF
LABOR ARE BUYING BONDS TO THE FULLEST EXTENT OF THAIR ABILITY AND WILL
CORTINUE TO DO SO
/ F OFLINN SEC TREASURY MISS STATE FEDERATION OF LABOR
WESTERN UNION
(Copy)
CLEVELAND OHIO SEPT 20 1943
VILLIAM GRAN
PRESIDENT AMERICAN FEDERATION or LABOR WASH DC
IS. TEACHERS ARE INVESTING BEAVILY IN MAR LOAN BONDS IN ADDITION TO
WITHHOLDING TAX. ALMOST EVERY SCHOOL IN AMERICA HAS ITS OWN BOND
SAME DRIVE. TEACHERS INCREASE THEIR STANDING TITH THEIR SUPERVISORS
ATD IN THEIR MEIGHBORHOOD BY PURCHASING AT THEIR own BUILDING. THE
AFT PHEREFORE HAS NOT ATTEMPTED A DRIVE FOR ITS SPECIAL PRIVILEGE.
T WANT BONDS SOLD. TE DON'T CARE THO GETS THE CREDIT. 12/ SENDING
à SPECIAL MESSAGE TO ALL AF 02 I LOCALS URGENT FULLEST POSSIBLE
INVESTMENT IN VICTORY
JOSEPH F LANDIS PRESIDENT A. ERICAN pederation OF TEACHERS
WESTERN UNION
(Copy)
PORTLAND 080 DEPT 20 1943
WILLIAM GREEN PRESIDENT AMERICAN FEDERATION OF LABOR
A 2 OF L BUILDING WASH DC
CREGON LABOR DUYING BONDS IN XCESS OF PLEDGED QUOTA. MANY PURCHASES
IN AFL DRIVER PRECEDING LABOR DAY HAVE NOT BEEN CREDITED IN NATIONAL
MORE THAN ITS SHARE. REPORTS FROM WAR INDUSTRY WORKERS NOT YET COMPLETE
DRIVE, SCHEWHAT FROM ITS PREVIOUS RECORD OF LEADING NATION BUT LASCR DOING
BUT AFL MEMBERS STILL BUYING. STATE AS A WHOLE IS LAGGING IS
BUT NEXT TEN DAYS WILL SHOW CRATIFYING PARTICIPATION
D E NICHERSON EXIC SECY OREGON STATE FEDERATION 07 TABOR
506 LABOR TEMPLE PORTLAND OREGON
Regraded Unclassified
264
X
WESTERN UNION
(Copy)
ALBANY N Y SEPT 20 1943
VILLIAM GREEN, PRESIDENT AMERICAN FEDERATION OF LABOR
AZ OF L BLDG WASH DC
ANSWERING YOUR WIRE OF SEPTNEBER 20TH RELATIVE TO THIRD WAR LOAN DRIVE
BW TO ADVISE THAT OUR SPECIAL WAR BOND AND STAMP C MUTTEE REPORTED
N OUR 30TH ANNUAL CONVENTION CERTIFIED SUBSCRIPTION OF AF OF L UNIONS
111 THIS STATE WHICH SUBMITTED REPORTS SHOWING UP TO JULY 31 1943
PURCHASES OF WAR BONDS AND STAMPS BY ORGANIZATIONS AND MEMBERS OF
$85,176,112.30 THE CONVENTION ADOPTED A recommEndation MADE BY THIS
COMMITTEE THAT IN ADDITION TO CONSISTENTLY CONTINUING WITH THE PAYROLL
ALLOTMENT PLAN THAT WE MAKE OUR GOAL IN TOTAL SUPPLEMENTAL SUBSCRIPTIONS
N MITO WAR LOAN $2,000,000 OR AS MUCH MORE AS WILL 3E NECESSARY TO
PAY FOR A LIBERTY SHIP TO BE NAMED FOR OUR PAST DECEASED PRESIDENT
THOMAS J LYONS. A MINDAM WHICH WS WILL STRIVE OUR UT/OST 20 ACCOMPLISH
N Y STATE PEDERATION OF LABOR E 7 SUNARD SECRETARY
WESTERN UNION
(Copy)
CHICAGO ILL SEPT 20 1943
WILLIAM GREEN
AMERICAN PEDERATION OF LABOR TASH DC
YOUR WIRE CONCERNING WAR BOND FURCHASE, CAX ADVISE THAT
OUR INTERNATIONAL UNION HAS JUST SUBSCRIBED FOR TIO HUNDRED THOUSAND
DULLARS THICH EXAMPLE IS BEING FOLLOWED BY MANY AFFILIATED LOCALS.
INDIVIDUAL MEMBERS ARE URGED DI CONSTANT PUBLICITY IN OUR OFFICIAL
URGAN, IN ADDITION TO THEIR PAYROLL DEDUCTION, TO INCREAST THEIR PURCHASES.
sea ENTIRE FIELD AND CLERICAL STAFF, ASIDE FROM PRESENT PAYROLL
DESCRIONS, ARE BUYING ADDITIONAL BONDS. TE PLAN TO RESURVED NA OUR
AFFILIATED LOCALS AS TO ADDITIONAL BONDS BEING PURCHASED
A A MYRUP (PRESIDENT, BAKERS' INTERNATIONAL UNION)
WESTERN UNION
(Copy)
SALISBURY HCAR STPT 20 1943
VILLIAM GREEN PRESIDENT
AMERICAN FEDERATION OF LABOR AVL BLDG. WASH X
OUR MEMBERS ARE BUYING ALL BONDS THEIR INCOME WILL PERMIT IN ADDITION
TO THE PAYROLL DEDUCTIONS STOP TELL SECRETARY OF TREASURY MORGENTHAU
THAT HE CAN COUNT ON ORGANIZED LABOR IN NORTH CAROLINA INVESTING EVERY
Regraded Unclassified
265
XI
COLLAX POSSIBLE IN WAR BONDS
E 0 FISVER 320
WESTERN UNION
(Copy)
MILWAUKEE TIS STP 20 1943
1 GREEN, PRESIDENT AMERICAN FED OF LABOR
A 7 OF L BLDG
LABOR HERE RESPONDING SPLENDIDLY ON THIRD WAR LOAN DRIVE. FEDERATION
REQUESTED ALL AFFILIATED MEMBERS BY LETTER TO PROMOTE SALE OF WAR
JOXDS
104 MAGORSNE SECRETARY-TREASURER WISCONSIN STATE FEDERATION
02 LABOR
WESTERN UNION
(Copy)
CHICAGO ILL SEPT 20 1943
12 OREGI, PRES
AMERICAN FEDERATION OF LABOR A F OF L BLDG WASH DO
OUR INTERNATIONAL UNION PURCHASED $100,000.00 WORTH OF BONDS IN THIS
DRIVE. To ARE NOW CONSIDERING THE PURCHASE OF ANOTHER QUARTER 07 A
KILLION DOLLARS WORTH. OUR LOCAL UNIONS HAVE SUBSCRIBED FOR NL THE
COMDS THE ABILITY TO BUY ARE PURCHASING ADDITIONAL BONDS OTHER TEAN PAY ME
THAT THEIR TREASURIES WILL STAND. THOSE OF OUR VEN ERSHIP THO ROLL HAVE
DEDUCTIONS TO STIMULATE THIS BOND CAMPAIGN. I MOULD SUGGEST THAT
BANKS WOULD THE PAY ROLL DEDUCTIONS FOR INCOME TAX AND SOCIAL SECURITY STEEL
ALLOW WORKERS TO PURCHASE BONDS ON A WEEKLY INSTATIMENT
PLAN AS WITH HIGH COST OF LIVING & WAGES BEING FROZEN UNDER THE LITTLE GROUP
AND forgula, THE IT MAKES IT AIMOST P ORIBITIVE FOR OUR LOW PAID INCOME
TO LAY OUT CASH PAYMENTS FOR PURCHASE OF BONDS
2 7 JIMERSON PRESIDENT AMALGAMATED MEAT cutters AND BUTCHER
WORKMEN OF N A
WESTERN UNION
(Copy)
INDIANAPOLIS IND SEPT 20 1943
TILLIAN GREEN
A F OF L BLDG
INDIVIDUAL RE YOUR MEMBERS BUYING BONDS. OUR LOCAL UNIONS AND DISTRICT
WIRE IMPOSSIBLE FOR OUR INTERNATIONAL TO YEEP TABULATION ON
Regraded Unclassified
266
XII
COUNOILS HAVE RESPONDED HERETOFORE AND FROM INFORMATION WE HAVE ON
KAND ARE PARTICIPATING IN THE PRESENT BOND SATES. LAST WEEK OUR
INTERNATIONAL BOUGHT ONE MILLION DOLLARS WORTH OF BONDS
11 L HUTCHESON (PRESIDENT, CARPENTERS INTERNATIONAL UNION)
WESTERN UNION
(Copy)
BOSTON MASS SEPT 20 1943
TELIAL GREEN
PRES AMERICAN FED OF LABOR
HAVE URGED ALL AFFILIATED LOCALS INCREASE WAR BOND PURCHASES IN
ADDITION TO PAYROLL DEDUCTIONS. INTERNATIONAL HAS PURCHASED
ADDITIONAL BONDS IN SUM OF THIRTY FIVE THOUSAND DOLLARS
BOOT AND SHOE WORKERS UNION
WESTERN UNION
(Copy)
PRESSMAN HOME TENN SEPT 20 1943
VISLIAM GREEN PRESIDENT
AMERICAN FEDERATION OF LABOR
ACKNOWLEDGE YOUR TELEGRAM. PLEASE BE ADVISED THAT IN THE VERY
BEGINNING OF THE SALE OF WAR BONDS AND STAMPS MI INTERNATIONAL
PRESSMEN AND ASSISTANTS UNION SET UP AN ORGANIZATION WITHIN OUR UNION
TO FURTHER THE SALE, AND ON THE FIRST DAY OF SIPTEMER OUR MIMBERS HAD
PURCHASED A TOTAL OF 3,975,303.02 IN BONDS AND STAMPS. FOR THE MONTH
OF AUGUST TE WERE ABLE TO BUY 91,228.74 THIS REPRESENTED A SLIGHT
REDUCTION FROM THE PREVIOUS MONTH WHICH IN OUR JUDGMENT WAS LARGELY
DUE TO PAYROLL DEDUCTIONS. WE ARE REVIVING AND REVISING OUR PROGRAM
TO REHEN THE AVERAGE OF APPROXIMATELY ONE HUNDRED FIFTY THOUSAND PER MONTH
SHICH HAS HERETOFORE PREVAILED NOTWITHSTANDING THE PAYROLL DEBUCTIONS.
I TRUST THIS WILL BE HELPFUL
GEORGE L BERRY (PRESIDENT, PRINTING PRESSMEN'S INTERNATIONAL UNION)
Regraded Unclassified
267
XIII
WESTERN UNION
(Copy)
WASHINGTON DC SEPT 20 43
- GRESS
AMERICAN FEDERATION 07 LABOR BLDG.
OUR LOCAL UNIONS ARE INVESTING ALL OF THEIR SURPLUS MONICS NOT
NECESSARY FOR THE OPERATION OF THE LOCAL UNION IN THIRD WAR LOAN
BOUND. THEY ARE ALSO ENCOURAGING THEIR MEMBERS TO PURCHASE BONDS
JUINE FROM TEN PERCENT DEDUCTIONS AS WELL AS OUTRIGHT PURCHASES. THE
UNITED ASSOCIATION HAS PURCHASED FIVE HUNDRED THOUSAND DOLLARS WATH
OF BONDS
LARTIN P DURKIN (PRESIDENT PLUMBERS INTERNATIONAL UNION)
WESTERN UNION
(Copy)
ST LOUIS 110 SEPT 20 43
= GREEN
A 2 07 L BLDG
TO YOUR TELESSRAM OUR INTERNATIONAL ASSOCIATION ITS 07/10/25
ID ENFLOYEES ARE INTUSTASTICALLY SUPPORTING 5. THIRD TAX 3000
DRIVE X BUYING ALL THE BONDS THEY POSSIBLY CAN
P J MORRIN (PRES. structural IRON WORKERS' INTI.. united)
WESTERN UNION
(Copy)
CHICAGO ILL STP 20 13
nus GREEN, PRESIDENT
AMERICAN FEDERATION OF LABOR
ALL DISTRICT COUNCILS AND LOCAL UNIONS OF THE UNITED CENTIT, LIME
AND GYPSUM WORKERS INTERNATIONAL UNION AND PARTICIPATING IX AND
CONTRABUTING FINANCIALLY TO THE Fullest SKINT oz THEIR AMOUNTY TO
ZIZ THIRD WAR LOAN DRIVE. TE HAVE OFFICIALLY 2 QUESTED ALL OUR UNITS
THROUGHOUT OUR JURISDICTION TO everythere PARTICIPATE IN THE SPECIAL
ARRANGEMENTS MADE BY STATE FEDERATIONS OF LABOR AND CENTRAL LABOR
UNIONS. I AM VERY CONFIDENT THAT IN DUE INS W Will BE ABLE TO
REPORT NORE FULLY TO YOU ON OUR Activities IN THE THIRD WAS LOAN
DRIVE, ALL OF WHICH IS IN ADDITION TO THE RESULAR PAYROLL DEDUCTIONS
AND OFFICIAL CONTRIBUTIONS OF OUR ORGANIZATION REPORTED MONTHLY THROUGH
THE OFFICIAL PUBLICATION, COPY 07 WHICH YOU RECEIVE EACH MONTH
THE SCHOENBERO GENERAL PRSS. UNITED LIMI & GYPSUM WAXERS INTL. UNION
Regraded Unclassified
268
XIV
WESTERN UNION
(Copy)
PHILADELPHIA PA SEPT 20 43
VILLIAM GREEN PRES
AMERICAN FEDERATION OF LABOR
TO YOUR TELEGRAM ABOUT THIRD WAR LOAN AMONG AFFILIATES WILL
SAY, OUR MEMBERS ARE SUBSCRIBING IN ALL THE PLANTS WHERE employed.
TX NO FURTHER STIMULATING HERE. REPORTS ARE ENCOURAGING THROUGHOUT
BERNARD G QUIM GENERAL PRESIDENT UNITED LEATHER WINERS
INTL UNION
WESTERN UNION
(Copy)
BOSTON MASS SEPT 20 43
TILLIAM GREEN, PRESIDENT
AFL À F OF L BLDG
LTD. REPORTS RECEIVED SHOW OUR MEMBERS ARE BUYING BONDS IN will WAR
TOXX DRIVE BESIDES THEIR PAYROLL DEDUCTIONS. THE INTERNATIONAL UNION
GAS PURCHASED BONDS IN THIS DRIVE
JAMES J DOYLE PRESIDENT COOPERS INTERNATE UNION
POSTAL TELEGRAPH
(Copy)
LAFAYSTTE IND SP 20 43
VILLIAM GREEN PRESIDENT AMERICAN federation OF LASOR
A. F. 07 L. BUILDING (WASHINGTON DC)
MS WEBERS AFFILIATED VITH III BROTHERHOOD OF PAINTERS AND DECORATORS
ARE SUPPORTING THE THIRD WAR LOAN DRIVE TO FULLEST E TENT IN CONJUNCTION
THE BUILDING TRADES COUNCIL CENTRAL LABOR UNION AND CIVIC ORGANIZATION.
OUR BROTHERHOOD HAS PURCHASED FOUR HUNDRED THOUSAND DOLLARS IN TREASURY
IN THE THIRD WAR LOAN DRIVE MAKI S A TOTAL 02 'IGHT HUNDRED AND
.17TY THOUSAND DOLLARS INVESTED PROM THE GUNERAL FUND 02 OUR INTERNATIONAL
AN ADDITIONAL TWO HUNDRED THOUSAND WILL 3E PURCHASED BEFORE THE END OF
212 YEAR AS THIS AMOUNT WILL BE AVAILABLE AT THAT TIME. OUR INTERNATIONAL
REPRESENTIVES AS 711 AS THE SECRETARY TREASURER AND MYSELF ARE ATTENDING
THE MANY PAINTERS STATE conventions HELD DURING THIS THE 07 THE YEAR
AND OUR PLEA FOR A GREATER EFFORT IN SUPPORTING THE THIRD WAR LOAN DRIVE
IS MEETING WITH GREAT ENTHUSIASM
Pamlers bearelors
L P LINDELOS GENERAL PRESIDENT 3 OF P D P-11 OD A
Paper Hagas
Regraded Unclassified
269
XV
WESTERN UNION
(Copy)
INDIANAPOLIS IND SEPT 20 43
WITHIAM GREEN, PRESIDENT
A 2 of L
TITEL TEAMSTERS INTERNATIONAL HAS PURCHASED $250,000 IN THRID WAR EOAN
WADS MAKING TOTAL 07 OVER $8,500,000. HAVE ALSO REQUEST ALL OUR LOCAL
CHIONS TO INCREASE THEIR PURCHASES 07 THESE BONDS
THOMAS E FLYNN
WESTERN UNION
(Copy)
CLEVELAND OHIC SEPT 20 43
WILLIAM GREEN
PRES OF AMERICAN FEDERATION OF LABOR A F OF L BLDG
YOUR TIRE RECEIVED REGARDING THIRD WAR LOAN DRIVE REPORTS FROM OUR
LOUALS AND MEMBERS ARE VERY INCOURAGING OLAD TO STATE OUR MIMBERS ARE
DOING EVERYTHING POSSIBLE TO MAKE THE THIRD WAR LOAN DRIVE A SUCCESS
JOHN Z ROONEY PRES OF AND CFIA
WESTERN UNION
(Copy)
CHICAGO ILL SET 20 43
WILLIAM GREEN, PRESIDENT
AMERICAN federation OF LABOR ANT. BLDG
CONTINUING TO BUI SONDS ALTHOUGH SOMEWHAT DISCOURACED
OUR BECAUSE MISSERS OF WAGE ARE INCREASE DENIALS ON HEQOTIATED INCREASES IN CONTRACT
RINEMALS
FRANK KASTEN PRESIDENT UNITED BRICK AIRD CLAY WORKERS OF AMERICA
WESTERN UNION
(Copy)
BUFFALO NY SEPT 20 113
WILLIAM P C CASHEN GREEN, AT HAMILTON HOTEL WASHINGTON DO 4. XTS ARE KELLY
PRES AMERICAN FEDERATION LABOR
Regraded Unclassified
270
September 22, 1943
x
COPY
RAILWAY MAIL ASSOCIATION
Washington 1, D.C.
September 20, 1943
Lr. William Green, President
American Federation of Labor
de F. of L. Building
Washington 1, D. C.
W dear Mr. Green:
Your telegram of September 19th, making inquiry as to the
progress of the Third War Loan Drive among members of the Railway
Mail Association, received today.
Permit me to advise that based upon the information we
have received the members of our organization are participating in
the purchase of additonal bonds to the extent of their ability to
do SO. The national office does not maintain a record of these
purchases and therefore it is not possible to furnish you with
detailed information. All members of our Association have been fully
informed in regard to the necessity for their partici: ation in this
campaign.
With my kind regards to you, I an
Fraternally yours,
C. M. Harvey
President
############
WESTERN UNION
(Copy)
D3S MOINES IOTA STP 21 43
WILLIAM GREEN PRESIDENT
AMERICAN FEDERATION 07 LABOR A / OF I BLIG WASH DC
a LIEVE ORGANIZED LABOR IS RESPONDING FAVORABLY IN THIRD WAR LOAN
DRIVE. PAYROLL DEDUCTION PROGRAM NOT so SATISFACTORY. WOULD SUGGEST TO
NAMING A FULL TIME PAID LABOR MAN TO IOWA WAR FINANCE condition
ASSIST IN IRONING OUT DIFFERENCES AND SETTING UP PROGRAMS FOR PAYROLL
DEDUCTIONS
J J BROWN SECY IOWA STATE FEDERATION OF LABOR
Regraded Unclassified
271
XI
PENNSYLVANIA FEDERATION OF LABOR
Harrisburg, Penna.
September 20, 1943
William Green, President
American Federation of Labor
AZ of 1 Building
Mushington 1, D. C.
Dear Mr. President:
Replying to your wire of September 20th with respect to
our activity in the Third Mar Loan Drive we beg toalvise that it is
not possible to give you the mount of bonds purchased by our members,
or whether or not all members have purchased bonds.
Te have requested all organizations to = dvine us of the
mounts purchased by their mumbers but will not receive this
information until the Drive has closed. However, in the meantine,
President McDevitt and the writer have been working very clossly
with the Treasury Department Officials, and where there is any
indication of Inck of participation we make immediate contact urging
them to make available every possible dollar for our Government.
With respect to a suggestion 1 clieve it would be very
helpful 10 the respective General Presidents of our redoration
would immediately dispatch a wire to all their affiliates urging
full and immediato cooperation.
Assuring you of our continued interest in this matter.
Franternally yours,
Earl C. Bohr
Secretary-Treasurer
WESTEN CRICN
(Copy)
CHEYENE TYO SEP 23 43
VILLINI GREEN PRES
AFL WASH DC
LABOR AND NLL AFFILIATED UNIONS COOPERATING BUYING BONDS BESIDES
PAYROLL DEDUCTIONS STATE IS OVER 50% OF QUOTA TO DATE CANNOT suggest
ADDITIONAL STEPS TO STINULATE THIS CAMPAIGN
MARTIN CAHILL (PRESIDENT WIGHING STATE - 07 14302)
Regraded Unclassified
272
XII
INTERNATIONAL ASSOCIATION OF
MARULE, SLATE AND STONE POLISHERS, RUBBERS AND SAWYERS,
TIME AND MARBLE SETTERS HELPERS AND TERRAZZO WORKERS HELPERS
Washington, D.C.
September 20, 1943
Mr. William Green,
President, American Federation of Labor,
A. 2. of L. Building,
Washington, D. C.
Dear Sir and Brother:
I am in receipt of your telegram with reference to the
Third War Loan Drive and wish to advise that our office force is
purchasing 17% of its salary a month in war bonds and has purchased
additional bonds from time to time.
With best wishes, I an,
Fraternally yours
William HoCarthy
General President
######
TOSTAL TELEGRAPH
(Copy)
SPRINGFIELD ILL SEP 21 10
704 GREEN PRESIDENT
AMERICAN FEDERAL OF LABOR A F OF L BUILDING (WASHINGTON JC)
THE PROGRESSIVE MINE WORKERS OF AMERICA ARE DOING EVERYTHING WITHIN
THEIR POWER TO MAKE 3RD WAR LOAN DRIVE A SUCCESS. THE KINGES UNDER
OUR JURISDICTION ARE CONTINUING THE 10% CHECK-OFF FOR VICTORY
BONDS. ANYTHING THIS ORGANI ATION MIGHT DO TO MURTHER THE CAUSE
DO NOT HESITATE TO CALL ON US
LLOYD À THRUSH PRESIDENT PROGRESSIVE VINE TURKERS OF AMERICA
273
XIII
POSTAL TELEGRAPH
(Copy)
NEW YORK N Y SEP 21 43
WILLIAM GREEN PRESIDENT
NYN FEDERATION OF LABOR A F OF L bldo (WASHN DC)
OUR MEMBERS ARE BUYING BONDS IN ADDITION TO PAYROLL DEDUCTIONS.
TE HAVE DECIDED TO BUY A BOMBER IN THE NAME OF OUR UNION THROUGH
THE PURCHASE OF 300,000 DOLLARS IN WAR BONDS
LEON WILLIAMS PRESIDENT
INTL JEWELRY WORKERS UNION
2
September 22, 1943
274
Copy
AMERICAN FEDERATION OF LABOR
Washington 11, D. C.
September 22, 1943
Mr. F. J. Dillon
607 Washington Building
15th and New York Avenue
Washington, D. C.
Dear Sir and Brother:
I transmit herewith copies of telegrams just
received from our International affiliates and State
Federations in regard to the Third War Loan Drive.
Please return them to ne when they have served
your purpose, with those 1 handed you yesterday.
Fraternally yours,
W. C. Hushing, Chairman
National Legislative Committee
American Federation of Labor
POSTAL TELEGRAPH
(Copy)
bridgeport COMI san 20 43
WILLIAM GREEN PRESIDENT- À 7 OF L BUILDING
(WASHINGTON DC)
retal 33 ADVISED THAT TO THE BEST OF MY KNOWLEDGE THE THIRD
WAR LOAN DRIVE IS MEETING WITH success FROM ALL HEWSPAPER
ACCOUNTS CONNECTICUT WILL FURFILL ITS OBLIGATIONS
JOHN J EGANS CONNECTICUT FEDERATION 07 LABOR
POSTAL TELEGRAPH
(Copy)
TOPEKA KANSAS SEPT 20 43
William GREEN, PRESIDENT
AMERICAN FEDERATION OF LABOR A F OF 1, BLDG. (WASHINGTON DC)
RARTEL ADVISE AFFILIATES OF AMERICANT FEDERATION OF LABOR IN
Regraded Unclassified
275
II
KANSAS INDIVIDUALLY RESPONDING NOBLY BY BUYING BONDS IN
THIRD WAR LOAN DRIVE IN ADDITION TO REGULAR PAYROLL
DEDUCTIONS NOW EXCEEDING TEN PERCENT. MANY LOCALS
BUYING TO FULL EXTENT OF SURPLUS TREASURY. STATE PRESIDENT
LUNDGREN AND VARIOUS OTHER STATE ORGANIZATION HEADS WILL
SPEAK INTERMITTENTLY ALL DURING NEXT WEEK ON RADIO BROAD-
CASTS. JOINT FARM LABOR MEETINGS BEING ARRANGED LOCALLY
IN PLACES WITH MILITARY TALENT ENTERTAINING FORTY MILLION
OF OUR HUNDRED TWELVE MILLION QUOTA HAS BEEN RAISED THIS
DATE. SPECIAL EMPHASIS BEING PLACED ON INDIVIDUAL BUY-
ING BY WORKERS. SITUATION VERY SATISFACTORY
F E BLACK SECRETARY KANSAS STATE federation OF LABOR
POSTAL TELEGRAPH
(Copy)
LOUISVILLE KY SEFT 20 143
t GREEN
FRES AMN FED OF LABOR- AFT BLCG (WASHINGTON DC)
RETEL I AM RELIABLY INFORMED THAT A LARGE MAJORITY OF our
MEMBERSHIP ARE BUYING BONDS Ill ADDITION TO
DELUCTIONS
SIMER D KEEN GENL VICE PRES TOBACCO UNITED INTL UNION
WESTERN UNION
(Copy)
MILWAUKEE "IS SEPT 21 43
784 GREEN, PRESIDENT AMERICAN FEDERATION CF ZASOR
AFL BLDG
GLOVE WORKERS ARE DOING THEIR PART TO PURCHASE ADDITIONAL
WAR BONDS DURING THE PRESENT CAMPAIGN
THOMAS DURIAN (PRESIDENT INTERNATIONAL GIOVE WORKS
OF AMERICA)
############
POSTAL TELEGRAPH
(Copy)
DETROIT MICH SEP 20 43
PRES AVI PHOSRATION OF LABOR WASHINGTON DC (CARE 2S WASHIN DC)
WILLIAM GREEN
Regraded Unclassified
III
276
PURCHASE OF BONDS BY OUR MEMBERS BY VOLUNTARY PURCHASE PLAN
STOP NO PAYROLL DEDUCTIONS STOP CONSIDER RESULTS EXCELLENT
STOP BEST ASSURANCE OF UNREMITTED SUPPORT TOWARD ENLARGED
AND FUTURE PURCHASE WOULD BE WORKERS POSITIVE ASSURANCE
POST-WAR INSECURITY WILL NOT FORCE THEM THROUGH DEPRESSION
TO SELL THEIR BONDS STOP
DELIMER L MCDANIEL PRES NATL ASSN SPCL DLY VSGR
WESTERN UNION
(Copy)
CHARLISTON W VA STP 21 43
WILLIAM GREEN PRES
AWN FEDERATION OF LABOR A F OF L BLDG
AT JOINT MEETING OF CENTRAL BODY AND BUILDING TRADES
COUNCIL LAST NIGHT WAS ASSURED THAT OUR MEMBERSHIP IN
T.IS VICINITY ARE BUYING ADDITIONAL BONDS OTHER THAN
PAYROLL DEDUCTIONS. LETTER FOLLOWS
VOLENY ANDREWS SECRETARY-TREAS WVA STATE FEDERATION
OF LABOR
WESTERN UNION
(Copy)
KANSAS CITY KANS SNP 21 43
WM A GREEN, PRESIDENT
AMERICAN FEDERATION 02 LABOR
REPLY TO YOURS NINETEENTH ADDRESSED TO PRESIDENT PRANKLIN
ADVISING SECRETARY morgenthau REQUESTS REPORT OF PROGRESS
ON THIRD WAR LOAN DRIVE AMONG AMERICAN FEDERATION OF LABOR
AFFILIATES STOP INTERNATIONAL BROTHERHOOD 07 BOILERVANES
IBON SHIP BUILDERS AND HELPERS 03 AMERICA PURCHASED IN
THIRD WAR LOAN DRIVE ONE MILLION VIVE HUNDRED THOUSAND DOLLARS
WORTH THEIR COMBINED PURCHASE IN THIRD WAR LOAN DRIVE AMOUNTS OF
STOP CONTACTED EIGHT OF OUR LARGER LOCAL UNIONS AND
MEMBERSHIP ONE IS ENTHUSIASTICALLY SUPPORTING THE BOND DRIVE
MILLION DOLLARS STOP REPORT 2202 LOCAL UNIONS CUR
MORE INFORMATION AT A LATER DATE
WM E WALTER (SECRETARY BOILER MAKERS INTL UNION)
IV
277
WESTERN UNION
(Copy)
WASHINGTON DC SEP 21 113
WILLIAM GREEN, PRESIDENT
AMERICAN FEDERATION OF LABOR
ALTHOUGH OUR INTERNATIONAL UNION DOES NOT HAVE AN SPECIFIC DATA I
HAVE GOOD REASONS TO BELIEVE THAT OUR MEMBERS ARE BUYING THEIR
SHARE OF BONDS IN THE PRESENT THIRD WAR LOAN DRIVE THIS MATTER
will BE DISCUSSED AT OUR 20TH REGULAR CONVENTION IN CINCENNATI
MEXT MONTH
W L ALLEN (PRESIDENT WASHINGTON TELEGRAPHERS' UNION)
WESTERN UNION
(Copy)
detroit MICH SEP 21 113
WILLIAM GREN, PRESIDENT
AMERICAN PEDERATION OF LABOR A F OF L BLDG
RETEL SORRY YE ARE UNABLE TO OBTAIN INFORMATION ESITED of BOND
BUYING AMONG OUR MEMBERSHIP
IRVAN CARY INTERNATIONAL PRESIDENT UAWA AFL
WESTERN UNION
(Copy)
WASHINGTON DC STP 21 43
WILLIAM GREEN
A ? OF L BLDG
SUPPLIMENTING THE INFORMATION CONTAINED IN OUR TIME RELATIVE TO THE
PURCHASE OF BONDS BY THE UNITED ASSOCIATION OF JOURNETWEN PLUNBERS
HUNDRED THOUSAND DOLLARS WORTH OF BONDS IN ADDITION TO THE
AND steamfitters, I WISH TO INFORM YOU THAT WS HAVE PURCHASED AMOUNT FOUR
REPORTED TO YOU IN OUR WIRE OF SEPTEMBER 20TH
MARTIN P DURKIN (president PLUNBERS INTL. UNION)
|
POSTAL telegraph
(COPY)
SPRINGFIND 21 113
Regraded Unclassified
278
V
WILLIAM GREEN-PRESIDENT AMERICAN FEDERATION OF LABOR
(WASHINGTON DC)
ME ILLINOIS STATE FEDERATION OF LABOR IS URGING ALL ILLINOIS
LABOR BOTH ORGANIZED AND UNORGANIZED TO GIVE THE FULLEST POSSIBLE
MEASURE OF SUPPORT TO THE THIRD MAR LOAN DRIVE, CENTRAL BODIES,
LOCAL UNIONS, COUNCILS AND ALL OTHER DIVISIONS 07 THE LABOR NOVEMENT
OF ILLINOIS AS WHIL AS INDIVIDUAL MAISSRS ARE BZING CALLED UPON TO
PARTICIPATE IN THE DRIVE NOT ONLY BY THESELVES PURCHASING WAR SAVINGS
BOXDS TO THE UTMOST OF THEIR RESOURCES IN ADDITION TO PAYROLL
DEDUCTIONS AND URGING ALL OTHERS TO DO LIKENISE, OUR GIST ARMAL
CONVENTION now IN SESSION HERE WILL UNDOSBTEDLY FURTHER STIMULATE THE
DRIVE BY STRONG DECLARATION ON THE SUBJECT. THE RESPONSE RECEIVED
THUS FAR FROM OUR A F OF L AFFILIATES HAS BEEN DECIDENTY GOOD.
RECENTLY HOWEVER I RECEIVED INFORMATION TO THE EFFICT THAT THE
UNAFFILLATED UNITED MINS WORKERS OF THE STATE HAD ANNOUNCED mey
COULD NOT SEE THEIR WAY CLEAR TO CONTINUE THE PAYROLL DEDUCTION
PLAN AND I All NOW IN CORRESPONDENCE WITH MER OFFICIALS IN THE
HOPE OF INDUCING THE TO CONTINUE THE PLAN. THE PROGRESSIVE VINE
WORKERS AFFILIATED WITH THE A F 07 L ARE CONTINUING THE PLAN AND
ARE ALSO CALLING UPON THEIR MEMBERS TO RESIOND TO THE CALL FOR
ADDITIONAL SUBSCRIPTIONS TO THE LOAN. TE ARE COUPERATING WITH STATE
AND LOCAL WAR LOAN STAFFS AND I BELIEVE THE TWILVS
HUNDRED DELEGATES ATTENDING OUR CONVENTION WOULD BE HIGHLY FLEASED
IF SECRETARY MORGENTHAU HOULD SIND A TELEGRAM TO THE CONVENTION
EXPRESSING APPRECIATION OF THE SUPPORT To ARE GIVINO H. DRIVE AND
UROING THAT EVERYTHING POSSIBLE B3 DONE TO STILL FURTHER STIMULATE
THE PURCHASE 02 BONDS TO WILL BZ IN SESSION UNITED SATURDAY
VICTOR A OLANDER SECY ILLINOIS STATE FEDERATION OF LADOR
########
POSTAL TELEGRAPH
(Copy)
KANSAS CITY 100 SEP 21 w
MR William GRAN PRESIDENT AIRRICAN FEDERATION 07 LADOR
A E OF L BLDG (WARKINGTON DC)
THIRD WAR LOAN IS DRING SUPPORTED BY OUR PAILACAD VISETTIP TO THE
FULLEST EXTENT POSSIBLE UNDER THE CIRCUMSTANCES
2 H KNIGHT (PRESIDENT BROTHERHOOD 31. CARES)
#######
WESTERN UNION
(Copy)
KANSAS CITY 200 SEP a 43
VILLIAN GREEN, PRESIDENT AMERICAN FEDERAL 02 LABOR
A 2 02 L SLDG
RETEL ALL APPLICATED ORGANIZATIONS ARE COOPERATING SULLY IN 7.170
Regraded Unclassified
279
VI
VAR LOAN DRIVE MEMBERSHIP BUYING ADDITIONAL BONDS AND ALL SURPLUS
IN LOCAL UNIONS TREASURIES ARE BEING USED TO BUY BONDS
FRANK J MURPHY SECRETARY MISSOURI STATE FEDERATION OF LABOR
CARMEN BUILDING
WESTERN UNION
(Copy)
HELENA MONT SET 21 43
TILLIAM GREEN
A F OF L BLDG
RETEL OF NINTTENTH IT APPEARS THAT DIIVE IN THIS STATE IS BELOW
NORIAL. HOWEVER AS FAR AS I CAN LEARN OUR AFFILIATES ARE RESPOND-
ING SATISFACTORILY WILL INVESTIGATE WRITER AND IF IT APPEARS THAT NORE
PERMING UP IS REQUIRED WILL ADVISE YOU me WIRE
JAMES D GRAHAM (PRESIDENT MONTANA STATE FEDERATION 07 LABOR)
TESTERN UNION
(Copy)
NET YORK N Y SEX 21 43
THE GREEN, PRESIDENT A 7 OF L
A F OF L BLDG
REPLYING TO YOUR WIRE TO PRESIDENT SARITSKY, ALL OUR LOCALS ON
PAYROLL DEDUCTION BASIS. IN ADDITION NET YORK MATAINERY LOCAL
24 IS NOW CONDUCTIWG CAMPAIGN IS CONJUNCTION WITH INLUSTRY
FOR PURCHASE FIVE VILLION DOLLARS ADDITIO AL WAR BOSTOS, LOCALS QUOTA
BEING $500,000. CAPMAKERS LOCAL 2 NEW YORK HOLDERO RALLIES AND
CANVASSING EACH SHOP HAS ALREADY SOLD $35,000 ADDITIONAL 30.00
WITH GOAL $100,000
HAT work
WESTERN UNION
(Copy)
OKLAHOMA CITY CKLA 32 21 43
MILLIAM ORGEN, PRESIDENT AMERICAN FADERATION 07 LASOR A 2 02 :
BLDG WASH DC
2 OF L MEMBERS BUYING MAITY 20123 IN ADDITION TO PAYROLL CHAMBER DEDUCTIONS. 02
LOCAL DOMINANT AND SELFISH. TABLIATION 02 PURCHASES LABOR TO
A CAMPAIGN LEADERS IGNORS LABOR ORGANIZATIONS. BY
IMPOSSIBLE. COMPERCE SUGGEST national RECOURAGE LOCAL LEADERS
RECOGNIZE ALL GROUPS AND QUIT PURSCHIL PLAG-WAVING
RAY BYLER EXECUTIVE (CITA. STATE P. 02 LABOR)
Regraded Unclassified
280
-COPY-
VII
BROTHERHOOD OF BLACKSMITHS, DROP FORGERS AND HELPERS
CHICAGO, ILLINOIS
September 20, 1943
Mr. William Green, President,
American Federation of Labor,
A. F. of L. Bldg.,
Washington, D. C.
Dear sir and Brother:-
Your wire of September 19th, just
received. Secretary of Treasury Morgenthau evidently does not
understand that the information he requests, cannot be given by
wire.
As far as 1 know, our organization is
keeping up its splendid reputation for buying bonds. I, myself,
have purchased $3,750.00 worth this year.
The Government should be in a better
position to answer in regard to payroll deductions, than I am.
I an getting ready to leave Chicago,
day after tomorrow, for the conventions in Boston, and I will not
have time to take up this business at present. However, you may tell
Secretary Morgenthau, that the final analysis will show that our
organization has kept up its reputation in the past, in regard to
buying bonds, and supporting the government in every manner possible,
forthe winning of the war, at the earliest possible opportunity.
with best wishes, I an
Fraternally yours,
(Roy Horn)
GENERAL PRESIDENT
WESTERN UNION
(Copy)
COLUMBUS OHIO SEP 21 43
MR WILLIAM GREEN
PRESIDENT AMERICAN FEDERATION OF LABOR WASH DC
REURTEL SEPTEMBER TWENTY WILL TAXE TO GET IMPORTATION
WILL ADVISE AS SOON AS POSSIBLE
J E MYEUR (PRES. FLAT GLASS CUTTERS INF. UNION)
Regraded Unclassified
281
VIII
WESTERN UNION
(Copy)
OMAHA NEBR SEP 21 43
VI LIAM GREEN
A F OF L BLDG WASH DC
OMAHA CENTRAL LABOR UNION REPORT WAR LOAN DRIVE PROGRESS 125,000
DOLLARS SUBSCRIBED IN ADDITION TO 175,000 DOLLARS IN PAYROLL
DEDUCTIONS FROM JULY 26TH TO SEPTEMBER 6TH. STIMULATE BY BONDER
GOAL 07 175,000 DOLLARS
J J GUENTHER (PRES. OMARA CENTRAL LABOR UNION)
INTERNATIONAL ASSOCIATION OF SIDEROGRAPHERS
PELHAM 65, N. Y.
2. Green President
American Federation of Labor
Washington, D. C.
Dear Mr. Green:
In reply to your wire, am happy to state all members are
participating in Third War Loan Drive, in addition to payroll
deductions.
No suggestions to offer, ground covered very thoroughly
by Companies.
Fraternally yours
John T. Ford
International President
WESTERN UNION
(Copy)
WILLEIN TON I STE 21 43
1 GREEN
PRES A F OF L AF 07 L BLDG WASH DC
WRITER MADE PLEA ON RADIO FOR LOCAL ORGANIZATIONS TO BACK BOND DRIVE
LOCAL AFFILIATES HAVE on: INDIVIDUAL PROGRAMS STATE QUOTA 63 PCT SOLD
ERNEST N PARKER SECTY DELAWARE STATE 70 CF LABOR
Regraded Unclassified
282
IX
COPY
INTERNATIONAL BROTHERHOOD ELECTRICAL WORKERS
WASHINGTON, D. C.
September 20, 1943
Mr. William Green
President, American Federation of Labor
A. F. of L. Building
Washington, D. C.
Dear Sir and Brother:
I have your wire, and of course I cannot advise you what
our local unions have purchased in this drive. You realise that
the situation is a little complicated - we urged our locals and
members to buy for the bond drive of Labor Jej, but we did not ask
them to report here. I believe that our locals followed our
instructions, and I think that those who did not participate in
the drive up to Labor Day are being urged by the local unions to buy
during the present drive, in addition to whatever payroll deductions
they are participating in at the present time.
As for the International, we bought $1,100,000 worth.
With bestwishes, I am
Fraternally yours,
0. M. Bugniamet
International Secretary
WESTERN UNION
(Copy)
PHILADELPHIA PA SEP 21 li3
WILLIAM GREEN, PRESIDENT
AMERICAN FEDERATION OF LABOR WASH DC
REPLYING YOUR TELEGRAM SEPTEMBER 19 AS PER SECRETARY OF TREASURY
LORGENTHAU'S REQUEST WOULD ADVISE OUR MEMBERSHIP EVERYTHERE IS
BUYING BONDS AND DOING THEIR UTMOST TO MAKE A SUCCESS OF THIS
CAMPAIGN
JAMES MALONE PRESIDENT GLASS BOTTLE blowers ASSOCIATION
Regraded Unclassified
283
arge to the account of
CASH SERVICE RTT
SHOUS
per
WESTERN
CHECK
1217-B
CADPARY
UNGENE
LETTER
RATE
ACCOUNTING INFORMATION
DEFERRED
MOHT
CAN
LETTER
SHIP
THAT
RADIOGRAM
UNION
-
of
-
TIME FILED
- - check de - will be
- -- colograph -
A. N. WILLIAMS
NEWCOMB CARLTON
J. c. WILLEVER
- -
PRESIDENT
CHAIRMAN OF THE BOARD
FIRST VICE-PRESIDENT
ad the following telegram, subject to the ferma on back hereof, which are hereby agreed to
WANT A REPLY?
COPY_
"Answer by WESTERN UNION"
or similar phrases may be
Included without charge.
NIGHT LETTER
WASHINGTON, D. C.
SEPTEMBER 19, 1943
AT THE INSTANCE OF SECRETARY OF TREASURY MORGENTHAU I AM REQUESTING
INFORMATION FROM YOU ON PROGRESS OF THIRD WAR LOAN DRIVE AMONG YOUR
MEMBERS. ARE THEY BUYING ADDITIONAL WAR BONDS BESIDE REGULAR PAYROLL
ALLOTMENTS? WHAT DEFINITE STEPS HAS YOUR ORGANIZATION TAKEN TO
STIMULATE THIS CAMPAIGN? PLEASE ADVISE BY WIRE AS PROMPTLY AS
POSSIBLE.
PHILIP MURRAY
PRESIDENT, C. I.O.
(Sent to presidents of all C. I. 0. national and international unions
and State Industrial Union Councils, and to all regional representatives)/
Regraded Unclassified
284
C
o
P
Y
DENVER COLO
SEPT. 21 1943
Er. James B. Carey Sec'y Treas
718 Jackson Place N.W.
WE HAVE RE UESTED OUR LOCAL UNIONS TO PURCHASE BONDS TO THE UTMOST OF
THEIR ABILITY AND FROM ALL REPORTS THEY HAVE RESPONDED MAGNIFICENTLY.
Thomas Long, Sec'y Treas Colo State
Industrial Union Council CIO
Regraded Unclassified
285
C
0
P
Y
DENVER COLO
Sept. 21 1943
Dr. James B. CAlley Secy Treas
718 Jackson Place N.W.
E ARE RECEIVING INFORMATION THAT THE CIO MEMBERSHIP IN THIS STATE IS
STRONGLY PURCHASING THIRD WAR BOND DRIVE BONDS IN ADDITION TO PAYROLL
PLEDGES. OUR LOCAL UNIONS HAVE MEMBERS ON THE WAR BOND DRIVE COMMITTEES.
RESPONSE TO THE DRIVE FROM OUR MEMBERS IS VERY GOOD.
Michael Livoda Sub-Regional Director CIO
DENVER COLO.
Regraded Unclassified
286
C
o
P
Y
ANACONDA MONT.
Sept. 22 1943
James B. Carey Secy. CIO
718 Jackson P1.N.W.
STATE COUNCIL OFFICERS ARE SERVING ON COMMITTEES ON 3RD WAR LOAN DRIVE IN
VARIOUS CITIES THROUGHOUT MONTANA. ARE PLEDGED TO BUY BONDS BESIDES REGULAR
PAYROLL ALLOTMENTS. WORKINGMEN RESPONDING SPLENDIDLY. LETTER FOLLOWS.
Montana State Industrial Union Council
Charles McLean, Secretary
Regraded Unclassified
287
C
0
P
Y
WINSTONSALEM N.C. + S.C
SEPT. 20 1943
James B. Carey, Sec and Treas
CIO
718 Jackson Place N.W.
IN REPLY TO PRESIDENT MURRAY'S WIRE E HAVE NO STATE COUNCILS IN EITHER
STATE 30 COULD NOT INAUGURATE SPECIFIC PROGRAM IN BOND CAMPAIGN. THUS
THE UESTION LEFT UP TO LOCAL UNIONS WHICH ARE EXPECTED TO MAKE REPORT TO
THEIR NATIONAL UNIONS. LOCALLY E ARE USING RADIO AND FLASH ADS ON MOVIE
SCREENS AS well AS TALKS AT MEETINGS. MANY OF OUR LOCAL UNIONS FAIL TO
COOPERATE WITH THIS OFFICE BUT DEAL DIRECTLY WITH THEIR OWN REGIONAL OR
NATIONAL OFFICE IN SUCH MATTERS.
E. L. SANDEFUR CIO Regional DIRector
Regraded Unclassified
288
OKLAHOMA CITY OKLA
C
SEPT. 20 1943
o
P
Y
Mr. James B. Carey, SEc. and Treas. CIO
718 Jackson Place N.W.
Washington D.C.
LOCAL UNION MEMBERS THROUGHOUT THE STATES OF OKLAHOMA AND ARKANSAS ARE BUYING
BONDS TO CAPACITY. COMMITTEES WORKING WITH SHOP MANAGEMENTS COMMITTEES WORKING
WITH CIVIC GROUPS COMMITTEES WORKING INDIVIDUALLY AS LOCAL UNION GROUPS. BOND
DRIVE INDICATES GOING OVER TOP FOR STATE'S QUOTA.
James P. Dean, Regional Director CIO
Okla. and Ark.
Regraded Unclassified
289
COPY
HOUSTON TEX.
SEPT. 20 1943
Mr. James B. Carey , Sec. Congress of Industrial Organizations
718 Jackson Place N.W.
Washington D.C.
OUR MEMBERS ARE BUYING ADDITIONAL BONDS OVER REGULAR PAYROLL DEDUCTIONS AND
HAVE JOINED WITH WAR FINANCE AND WAR ADVERTISING COMMITTEES IN EFFECTIVE
PROGRAM FOR THIS PURPOSE. LOCAL UNION BOND DRIVE COMMITTEES ARE WORKING.
WE EXPECT TO EXCEED OUR QUOTAS.
J.E. Crossland, South Texas Sub-Director, CIO
Regraded Unclassified
290
RICHMOND VA.
COPY
SEPT. 20 1943
MR. JAMES B. CAREY SEC-TREAS.
CIO, 718 Jackson Place N.W. Washington D.C.
RE PRESIDENT MURRAY'S TELEGRAM SEPT. nineteenth CIO OFFICIALS AND MEMBERS
ARE WORKING CLOSELY AND EFFECTIVELY WITH THIRD WAR LOAN DRIVE STATE AND
LOCAL ORGANIZATIONS. VIRGINIA INDUSTRIAL WORKERS ARE AHEAD OF NATIONAL
UOTA ATTAINMENT TO DATE. AGRICULTURAL SECTIONS NOT DOING 30 WELL ACCOUNT
OF SIXTY DAY DROUGHT. WE SHALL NOT SLACKEN OUR EFFORTS.
ERNEST B. PUGH VA. CIO REGIONAL DIRECTOR
Regraded Unclassified
291
C
0
P
Y
CHARLESTON W.VA.
SEPT. 20 1943
James Carey, Sec. Treas.
CIO
718 Jackson Place N.W.
AS PER THE REQUEST OF PRES. MURRAY I GIVE YOU THE FOLLOWING INFORMATION.
THIS OFFICE HAS MADE SEVERAL APPEALS BY LETTER AND DIRECT CONTACT INCLUDING
LABOR DAY MEETING AT parkersburgh AND SPECIAL MEETING AT WHEELING FOR OUR
PEOPLE TO BUY AT LEAST $100.00 ADDITIONAL IN BONDS. MY REPORTS ARE THAT OUR
PEOPLE ARE BUYING ADDITIONAL BONDS BUT TO WHAT EXTENT I CANNOT SAY WITH ANY
DEGREE OF ACCURACY.
John B. Omlton
Regraded Unclassified
292
C
0
P
Y
JAMES B. CAREY
SEPTEMBER 21, 1943
CIO
REPLYING PHILIP MURRAY'S WIRE REGARDING WAR BONDS. CIO MEMBERS
BUYING LARGE NUMBER EXTRA BONDS IN ADDITION TO REGULAR PAYROLL
ALLOTMENTS. ANDERSON INDUSTRIAL UNION COUNCIL BOUGHT FIVE THOUSAND
DOLLAR BOND LAST WEEK. MY OFFICE IN COOPERATION WITH STATE SECRE-
TARY FRISBIE CIRCULARIZED EVERY LOCAL UNION IN STATE URGING THEM BUY
ADDITIONAL WAR BONDS AND ASKING THEM MAKE REPORTS ON BLANKS FURNISHED
BY TREASURY DEPARTMENT ADDRESSED TO MARY MC CARTHY. AM SURE THAT THIS
LETTER AND VARIOUS MEETINGS HAVE STIMULATED WAR BOND DRIVE. PLEASE AD-
VISE PRESIDENT MURRAY.
POWERS HAPGOOD
CIO REGIONAL DIRECTOR
INDIANAPOLIS, INDIANA
Regraded Unclassified
293
C
0
P
Y
JAMES CAREY
SEPTEMBER 23, 1943
CIO
REPORTS COMING TO THIS OFFICE INDICATE OUR MEMBERS ARE NOT ONLY
MEETING QUOTAS BUT IN MANY INSTANCES HAVE DOUBLED CR TRIPLED THEIR
PURCHASES. THROUGH THE COLUMNS OF OUR BUFFALO UNION LEADER AND
PAPERS OF VARIOUS LOCAL UNIONS FULL PUBLICITY IS BEING GIVEN TO THE
THIRD WAR LOAN CAMPAIGN AND ALL STAFF AND FIELD REPRESENTATIVES ARE
INSTRUCTED TO EMPHASIZE THE IMPORTANCE OF THE DRIVE TO THE WAR EFFORT
AT ALL MEETINGS THEY ATTEND. LOCAL UNIONS AS SUCH ARE SUBSCRIBING
FOR SUBSTANTIAL AMOUNTS.
HUGH THOMPSON, REGIONAL DIRECTOR
CIO
BUFFALO, NEW YORK
Regraded Unclassified
294
C
0
P
Y
JAMES CAREY
SEPTEMBER 22, 1943
CIO
MEMBERS. ARE TAKING ACTIVE PART IN THIRD WAR LOAN DRIVE SHOP STEWARDS
ARE SERVING AS BOND SALESMAN LOCAL UNIONS APE BUYING ALL BONDS POS-
SIBLE FROM THEIR TREASURER.
ORVEL TCHAMP, SECRETARY - TREASURER
IOWA-NEBRASKA STATES
Regraded Unclassified
295
COPY
JAMES CAREY
SEPTEMBER 22, 1943
CIO
ALL REPRESENTATIVE ASSISTING IN THIRD WAR LOAN DRIVE BY URGING MEMBERS
TO INCREASE PAYROLL ALLOTMENTS REPORT FROM LOCAL UNION OFFICERS FAVOR-
ABLE.
BEN HENRY, CIO DIRECTOR
DES MOINES, IOWA
Regraded Unclassified
296
C
0
P
Y
SEPTEMBER 21, 1943
JAMES CAREY
CIO
IN ANSWER TO WIRE RECEIVED FROM PRESIDENT MURRAY TODAY REGARDING
PROGRESS MADE IN THIRD WAR LOAN IN THIS AREA OUR MEMBERS ARE BUYING
ADDITIONAL WAR BONDS BESIDE PAYROLL ALLOTMENTS AND ARE PARTICIPATING
IN BLOCK CAMPAIGNS TO STIMULATE SALES. THE INDIVIDUAL SALES QUOTA
HAS EXCEEDED CORPORATION SALES QUOTA BY NEARLY TWENTY PERCENT. LOCAL
UNIONS REPORT INDIVIDUAL SALES TO MEMBERS EXCEPTIONALLY GOOD.
JAMES DAVIS, SECRETARY
MO. STATE INDUSTRIAL UNION COUNCIL
Regraded Unclassified
297
C
0
P
Y
JAMES B. CAREY
SEPTEMBER 21, 1943
CIO
RETEL PHILIP MURRAY CIO APPEALING ALL MEMBERS VIA RADIO.
INCOME TAX LOST TIME DUE WEATHER CONDITIONS LOGGING INDUSTRY
SLOWED DOWN DRIVE. WOODWORKERS HAVE MADE REPEATED APPEALS
WORKING TO INTENSIFY DRIVE. ALL CIO OFFICIALS DOING EVERY-
THING POSSIBLE.
A. F. HARTING
CIO REGIONAL DIRECTOR
PORTLAND, OREGON
Regraded Unclassified
298
C
WISCONSIN STATE INDUSTRIAL UNION COUNCIL
o
P
511 Cawker Bldg 108 lest Wells St.
Y
Milwaukee (3) Wis.
Sept. 20 1943
Kr. James B. Carey, Sec.-Treas.
CIO
718 Jackson P1., N.W.
Washington 6 D.C.
DEar Brother Carey:
At the request of Brother Philip Murray I am sending
you the following information in regard to the CIO unions in isconsin
"Backing the Attack" through the third war loan drive.
Most of our unions are working with management or
through their labor-management committees or through direct methods
instituted by the unions. To what extent their success has been is
not fully known at this time, however, as an example I am enclosing
a copy of a leaflet that was rawn up by local 1344, USA, and the
Heil Company, located in Milwaukee. They designed a campaign to
place a garand rifle in the hands of every Heil Co. employee now in
the service; the total amount to be $64,000. Seventy per cent of
that goal has been reached to date with full assurance that it will
go over the top. This is indicative of the spirit of all of our
members in this area.
We are cooperating with our local and state com-
mittees to assist in this War Bond Drive having representation on
each of the committees and also the CIO War Relief Committee is
working with us in doing our share to 10 over the top in this drive.
If you need any additional information, I shall
be most happy to be of assistance.
Sincerely and fraternally yours,
S/3 Mel J. Heinritz
Secretary-Treasurer
Regraded Unclassified
299
a
o
P
Y
CIO WEST VIRGINIA INDUSTRIAL UNION COUNCIL
STE. 806-808-810 Peoples Bldg.
P.O. Box 646
Charleston 23 N.Va.
September 20 1943
TO ALL LOCAL UNIONS, INDUSTRIAL UNION
COUNCILS AND FIELD REPRESENTATIVES
Greetings:
President Murray has wired us, asking that we re-double our ef-
forts toward buying additional Mar Bonds over and above our regular pay-
roll allotment during the balance of this 15 billion dollar drive.
Please do not wait for your meeting night to act upon this mat-
ter. Bring it to the attention of your of ficers and members and do
everything humanly possible toward making a glorious finish. There is
still 5 billion dollars worth of Bonds to be sold to reach the 15 bil-
lion goal.
It might be well to post this letter on the bulletin board.
Understand, President Murray has made his urgent appeal and
asked us to pass it on.
Fraternally yours
S/S John B. Easton
President and CIO Regional Director
Regraded Unclassified
300
COPY
MIN ESOTA STATE INDUSTRIAL UNION COUNCIL
CIO
1126 Harmon Place
Minneapolis Minnesota
Sept. 20 1943
Mr. James 3. Carey, Secy-Treas.
718 Jackson Place NW
washington D.C.
Dear Brother Carey:
In response to Brother Murray's wire I can inform you that the CIO unions
are active in doing their share in the Third har Loan Drive. I am enclos-
ing a clipping showing that in the Minneapolis area labor's share of five
million dollars has been over subscribed, and I am also in receipt of a
report from the Minnesota War Finance Committee that shows that the coun-
ties where labor unions are mostly concentrated are at the top of the list.
The rank is as follows:
Ramsey County, that is strongly organized into CIO,
AFL and Brotherhoods, is in 3rd place, with 59% of
the uota subscribed.
Hennepin County, in 4th place, with 56.6% of juota
subscribed.
Mower County in 5th place, with 44.35 subscribed.
St. Louis County in 6th place, with 43.75 subscribed.
These four counties include th large metropolitan areas of Minneapolis,
St. Paul and Duluth, and are among a total of 87 counties in Minnesota.
I have just been informed that the Duluth labor unions are near to Jub-
seribing their juotas and it is expected that Ransey county will do
likewise.
I hope that this brief report will meet with your approval. However, if
there is any other information you desire I shall be glad to (dve it to
you.
Fratermlly yours
s/s Leore Lageman
Secretary-Treasurer
Regraded Unclassified
301
C
0
NEW YORK STATE INDUSTRIAL UNION COUNCIL
P
Y
CIO
101 West 31st St.
New York 1 N.Y.
Sept. 21 1943
Mr. James Carey, Secretary-Treasurer
CIO
71' Jackson Place N.W.
Nash ngton D.C.
Dear Brother Carey:
In response to the wire received from President Philip Murray requesting
information on the progress of the Third Mar Loan rive, in the survey just
completed by President Hollander and myself on the participation of the
CIO in the State of New York, I am happy to state that all of our affiliated
unions are not only carrying out their original pledges through payroll de-
ductions and other purchases, but the information I have received from the
heads of these unions is such that I know that their members are purchasing
additional bonds to make this drive a success.
Brother Hollander is serving on the War Finance Committee with Mr. W. Ran-
dolph Burgess, State Director, who reports splendid progress.
Trusting this is the information you desire, and awaiting the pleasure of
seeing you at the State Convention, I remain
Fraternally yours,
6/3 Harold J. Garno
Secretary-Treasurer
Regraded Unclassified
302
ILLINOIS STATE
C
0
INDUSTRIAL UNION COUNCIL
P
Y
205 W. Wacker Drive
CHicago Ill.
Sept. 21 1943
Mr. James Carey, Secretary-Treasurer
Congress of Industrial Organizations
718 Jackson Place N.W.
Washington D.C.
Dear Sir and Brother:
Regarding the wire from President Murray requesting
information regarding the Third War Loan Drive, please be advised
that we have circulated literature from the Chicago of fice of the Treas-
ury Department to our members.
Definite results of the campaign have not been re-
ceived as yet, but assure you we will advise you further when we have
something concrete to offer.
Fraternally yours,
S/S Francis J. DeLaurie
Secretary-Treasurer
Regraded Unclassified
303
KENTUCKY CIO COUNCIL
C
o
476 Starks Bldg.
P
Louisville
y
Sept. 21 1943
Mr. James B. Carey, Sec.-Treas.
CIO
718 Jackson Place N.W.
Mashington D.C.
Dear Sir and Brother:
In reply to a telegram from President Murray in regard
to the Third War Loan Drive, wish to advise that all the Field Workers in
this area are urging their respective Local Union membership to purchase
additional bonds during the month of September if at all possible.
Some of the Locals have put on special drives, and are meeting with suc-
cess.
Trusting this is the desired information, I am
Very truly yours
s/s Amelia Harp
Secretery-Treasurer
Regraded Unclassified
304
C
0
P
Y
OHIO CONGRESS OF INDUSTRIAL ORGANIZATIONS
503 United Bldg.
Akron
Sept. 20 1943
Mr. James B. Carey, Secy-Treas.
CIO
718 Jackson Place N.W.
Ashington D.C.
Dear Sir and Brother:
In answer to President Murray's wire regarding
statistics of Third Mar Loan Drive the following pertinent information
is offered for your records:
Goal
26,000,000.
Subscription to date
17,000,000.
Drive runs to Sept. 30th.
75% of all subscriptions coming from organized
labor over and above regular 10% payroll deductions.
Rubber workers' wage increases granted by National Mar Labor Board of 3¢
per hour as against their 8¢ per hour requested being used for this War
Bond subscription. Back pay now being distributed by three major com-
panies here. Drive for War Bond contributions timed successfully with
the payment of back wages.
11th all good wishes, I am
Sincerely and fraternally,
S/S Harry R. Doll, Sub-Regional Director
CIO
Regraded Unclassified
305
C
CONGRESS OF INDUSTRIAL ORGANIZATIONS
0
P
205 West Wacker Drive
Y
Chicago 6 Ill.
Sept. 20 1943
James B. Carey, Sec.-Treas.
Congress of Industrial Organizations
718 Jackson Place N.W.
Washington 6 D.C.
Dear Sir and Brother:
In reply to the telegraphed request of President Murray of this date,
kindly be advised that the Chicago local unions are cooperating withthe
Treasury Department in the Third War Loan Drive to the utmost.
From all indications of information received the affiliated locals and
their membership are, in addition to the regular payroll bond checkoff
of 10%, buying bonds and stamps through local affairs, Treasury Department
rallies at which movie stars are present, War Exhibit rallies, etc. In
short, the CIO of Chicago is cooperating to the fullest extent and buying
bonds over and above their regular purchases.
The Chicago Industrial Union Council, of which I am president, has a
committee acting on this Drive working in conjunction with the Treasury
Department. Mr. Sam Levin, President of the State Council, and myself
are Sponsors of the Third War Loan Drive in Chicago.
lie have written to the affiliated National organizations telling them
to make special appeals to the affiliated locals to give and give again.
Trusting that this information meets with your approval, and with best
personal regards, I beg to remain,
Very truly yours,
S/S Fullerton Fulton - CIO Director
State of Illinois
Regraded Unclassified
306
C
CONNECTICUT STATE INDUSTRIAL UNION COUNCIL
0
P
95 Bank St.
Y
Waterbury 18 Conn.
Sept. 20 1943
Kr. James B. Carey, Secretary
CIO
718 Jackson Place N.W.
Washington D.C.
Dear Sir and Brother:
In reply to Philip Murray's request for informa-
tion for Secretary of Treasurer Morgenthau on the progress of the
Third War Loan Drive among CIO members in Connecticut, I am pleased
to advise that Connecticut locals have conducted their own special
drives with excellent success. Besides obtaining the purchase of ad-
ditional bonds by members, these locals have in many instances given
special impetus to the drive among the public by participating in
outdoor rallies and bond sales, etc.
Sincerely and fraternally yours
CONN. STATE INDUSTRIAL UNION COUNCIL
S/S Harold Senior
Council Organizer
Regraded Unclassified
307
C
0
RHODE ISLAND STATE INDUSTRIAL UNION COUNCIL
P
Y
511 Westminster St.
Providence R.I.
Sept. 20 1943
Mr. James B. Carey, Sec'y-Treas.
CIO
718 Jackson Place
Washington D.C.
Dear Sir and Brother:
In regards to telegram from President Murray on progress of Third
war Loan Drive among our members, this is to advise that many of our
members are buying additional war bonds, and we are making every ef-
fort to have all members buy extra bonds.
In many plants labor and management are yolding mass meetings to en-
courage the purchase of additional bonds. Union representatives are
on speakers list and working with the local War Finance Committee.
Fraternally,
S/S Anne Marsoli, Secy.
Regraded Unclassified
308
C
CONGRESS OF INDUSTRIAL ORGANIZATIONS
0
P
109 Church St.
Y
New Haven Conn.
Sept. 20 1943
Mr. James B. Carey, Sec-Treas.
CIO
718 Jackson Place N.W.
Washington D.C.
Dear Sir and Brother:
In answer to a telegram received from President
Murray, concerning the purchase of War Bonds in the Third War Bond
Drive by our CIO members, I wish to advise that it is my understanding
that many of our members are buying Bonds besides regular payroll al-
lotments.
I will my to get a detailed report in the very near future as to what
percentage the increased purchases amount to.
I am serving on the State Executive Board of the War Council and on
the Executive Board of the New Haven War Bond Committee. I have ad-
dressed three War Bond Rallies as representative of the CIO.
with best wishes, I remain
Fraternally yours,
s/s Edward McCitone
Regional Director
Regraded Unclassified
309
C
CONGRESS OF INDUSTRIAL ORGANIZATIONS
0
P
Y
544 Camp St.
New Orleans La.
Mr. James B. Carey Secy-Treas.
Congress of Industrial Organizations
718 Jackson Place, N.W.
Washington D.C.
Dear Sir and Brother:
CIO Regional Director Fred C. Pieper has referred
to me a request from President Murray that you be advised of New Orleans
CIO's participation in the Third War Loan.
Mr. Pieper, myself and members of the regional office staff have œopera-
ted closely with the Louisiana and New Orleans War Finance Committee in
connection with the Third War Loan by carrying the campaign appeal to
all local unions.
This has been and is bein done through conferences between representatives
of the CIO regional office, the War Finance Committee, the local union
and plant management to the end of arranging both increased payroll bond
deductions and the purchase of additional bonds during the Third Wat Loan
campaign.
To date, arrangements havebeen made in four local unions--1101, 1124 and
1167 of the United Sugar Workers and 1101 of the United Cooperate Workers--
whereby members are pledging a portion of pay awarded under a LB order
to the purchase of additional war bonds. In the case of 1101 and 1111,
the American Sugar Refinery and the Brooklyn Cooperage, unofficial re-
ports place the pledge total at about $12,000. Tabulations of pledges
by the other locals are not yet available.
In addition to the above specific programs, CIO field representatives,
following a meeting with the War Finance Committee, have carried the
bond appeals to all membership meetings of local unions, additional
pledges during the Third War Loan drive. Further, within the next few
days I have scheduled meetings with War Finance Committee and management
representatives in five more plants to arrange war bond programs.
The New Orleans NEWS-DIGEST has been used to promote the campaign, reg-
ularly carrying publicity to local union members. The CIO regional of-
five staff, to keep abreast of the campaign, purchased additional bonds
this month.
Hoping this information satisfies the request, I am,
Sincerely yours,
s/s Morris B. Higgins
Public Relations Representative
Regraded Unclassified
310
C
0
P
Y
TENNESSEE STATE INDUSTRIAL UNION COUNCIL
ROOM 302 # 218 SOUTH GAY STREET # PHONE 3-6323
KNOXVILLE, TENNESSEE
September 20, 1943
Mr. James B. Carey
Secretary-Treasurer
Congress of Industrial Organizations
718 Jackson Place, N. W.
Washington, D. C.
Dear Sir and Brother:
We are glad to send you this letter at the request of President
Murray, advising generally what we have done to help promote the sale
of War Bonds among CIO members in Tennessee during the Third War Loan
Drive.
First, we sent a letter to each affiliated local and Industrial
Union Council requesting that this matter be taken up at all the meetings
in September, and that special emphasis be given to this question during
meetings scheduled during the actual drive, urging the locals to buy
bonds out of their treasuries if they were financially able to do so, and
to urge their respective members to buy extra bonds during the drive.
And in those cases where less than 100% of the membership was buying bonds
on the payroll deduction plan, to put on special committee members to try
and make it 100%.
We also asked all CIO Field Representatives and organizers for CIO
affiliated unions in Tennessee to get behind this. And the few reports
we have received indicate that our CIO mombers are doing their part -
more than others are doing, to help put the Third War Loan Drive over.
However, we would probably have done better if our CIO people had
been given committee appointments and more recognition in the form of
active, recognized assignments in the various counties. Although we have
over 60,000 members in Tennessee the CIO is not represented on the State
Committee. And there is only one county - Shelby - where any CIO leader
is on any of the committees, as far as we have been able to learn. Not
only that, but why can't we get some sort of pennants for our locals
where 100% of our membership is using 10% or more of their income to buy
War Bonds regularly?
Fraterhally yours,
Paul R. Christopher
Regraded Unclassified
311
C 0 P Y
CIO
Smith Tower Main 6761 Seattle, Washington
Mr. James Carey
Secretary-Treasurer CIO
718 Jackson Place, N. W.
Washington, D. C.
Dear Sir and Brother:
As per request in telegram from President Philip Murray, under
date of September 17th., I am wrting you to advise relative to our
action in the Third War Bond Loan campaign.
While we have tried to take part in all Bond activities, and
while several of the International Unions have done considerable amount
of work among their members, the purchase of extra Bonds by our people
is not as large as expected. The 20% withholding tax together with the
Campaign for War Chest and Red Cross Drive, made the work somewhat dif-
ficult.
You can be assured that we will cooperate wherever possible with
the officals of the Treasury Department and those conducting the drive
in the State of Washington.
Fraterhally yours,
Roy W. Atkinson
CIO Regional Director
State of Washington
Regraded Unclassified
312
C
o
CONGRESS OF INDUSTRIAL ORGANIZATIONS
P
North Texas Sub-Regional Office
Y
309 Southwestern Life Bldg.
Dallas I Tex.
Sept. 21 1943
Mr. James B. Carey, Secret ry-Treasurer
Congress of Industrial Organizations
718 Jackson Place N.W.
Washington D.C.
Dear Sir and Brother:
I received the following telegram yesterday from
President Murray:
(Copy of telegram)
I am enclosing a copy of our Labor Day paper of which we distributed
22,000 copies in Dallas and Fort Worth. This is the only written ap-
peal we have made in behalf of the Third War Bond drive.
e, of course, urge our membership at all meetings to participate in
this drive to the very limit of their ability. We have not so far
made any attempt to put on a CIO drive that would segregate the bonds
bought by the CIO members from that of the general drive. However,
our members are participating very well.
Sincerely and fraternally
S/S A. R. Hardesty, Director
North Texas Sub-Regional Office
Regraded Unclassified
313
C
UNITED STONE AND ALLIED PRODUCTS WORKERS
o
P
OF AMERICA
Y
Scampini Bldg.
Barre Vt.
Sept. 21 1943
James B. Carey, Secretary
Congress of Industrial Organizations
718 Jackson Place, N.W.
Washington D.C.
Dear Brother Carey:
On September 20th we received a telegram
from President Philip Murray concerning the Third War Loan
Drive. At his request we are replying to you.
Our organization has consistently stressed the importance
and necessity for purchase of war bonds. Financial reports
from local unions show they are investing surplus funds in
war bonds and information from branch of ficers and represen-
tatives indicate our membership, in addition to payroll al-
lotments, are purchasing bonds.
Fraternally yours
S/S John C. Lawson
Intl. Secretary-Treasurer
Regraded Unclassified
314
Y
CONGRESS OF INDUSTRIAL ORGANIZATIONS
NEW Jersey REGIONAL OFFICE
17-19 William Street, Room 401
Newark N.J.
Sept. 20 1943
Dr. "ames B. Carey, Secy-Treas.
Congress of Industrial Organizations
718 Jackson Place, N.W.
hashington, D.C.
Dear Sir and Brother:
In regard to telegram sent by President Murray regard-
ing the far Bond drive, th Regional Office has supplied speakers at bond
rallies, organized bond rallies such as in Bloomfield N.J. where on Labor
Day, $33,000 in bonds were sold, one rally was held at the American Smelt-
ing and Refining Company, Perth Amboy, N.J. and one to be held at the
plant of the Federated Metals Company in Newark next /ednesday.
These are only a few of the numerous rallies that have been and will be
held in the future from which good results are to be expected. The above
plants are under contract with the Mine Mill and Smelter Workers Union.
In addition, Local Industrial Union Councils, such us Greater Newark IUC,
Bergen County IUC, Central Jersey IUC and Union and Middlesex IUC have set
up war bond committees to push sales of additional bonds, and generally
coupling political action campaign with the sale of same, in addition to
newspaper ads and leaflets. Local Union newspapers have issued special
editions on the war bond drive inthe New Jersey area.
I have been flooded with requests for reports from other sources not re-
lated to our organization and have not had the time nor did I deem it nec-
essary to reply to these various requests.
Last May I received a telephone call from Miss McCarthy while I was in
Washington to get in touch with her office which I did. However, she
was not in and later she wrote me a letter requesting a report on the Re-
gional Offices was bond efforts. I called her up and spoke to her per-
sonally and explained to her that we were doing everything possible in the
various drives.
It was quite 4a. surprise to me that the Treasury Department should again
make a request on this office for report. I therefore want to emphasize
the fact that this office has always cooperated fully with the CIO policy
and matters of carrying out every phase of the war effort and especially
in adhering loyally and strictly in keeping with the CIO no strike pledge
Regraded Unclassified
315
- 2 -
and will continue to do so.
Of course, it is impossible to give a detailed report of amount of bonds
sold in the hundreds of local unions in addition to regular payroll al-
lotments in our State. Such a check-up is only possible through the In-
ternational Unions who must check continually as the drive progresses
through their affiliated locals. However, this no doubt can be done some-
time in the future when they have the necessary time to carry on this
work aside from their regular duties. If the Regional Office can get the
data from the various Internationals, we will be glad to forward them to
the responsible parties.
Hoping that the above report gives you some inkling as to the cooperation
in the bond drive, I am,
Fraternally yours,
s/s Ewald Sandner,
CIO REGIONAL DIRECTOR
Regraded Unclassified
316
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE
TO
Secretary Morgenthau
SEP 24
FROM
Randolph Paul
Conference with Steelworkers
At 10:30 on the morning of September 21 I met with the
Executive Board of the United Steelworkers of America at the
William Penn Hotel in Pittsburgh. The invitation to discuss
the Treasury's tax proposals with the steelworkers' represent-
atives was extended by the officers of the international organ-
ization. Phil Murray presided at the meeting. On the platform
with him were Daird J. McDonald, secretary-treasurer; Clinton
J. Golden and Van A. Bittner, assistants to the president.
Thirty-nine board members and 15 or 20 staff members were present.
I explained that I was going to give them an off-the-
record summary of the tax program the Treasury will present to
Congress and I invited their reactions to it. Mr. Murray also
stressed the confidential nature of the discussion.
I told the board members that the Treasury intends to
oppose a sales tax on the ground of equity, its inflationary
effects, small revenue yield, and administrative difficulties.
I urged their support of our position.
I also explained that we would oppose any tax on increases
on individual income on the grounds that there was no adminis-
trative basis for the tax and it would have a bad effect on war
workers' incentives to work.
Regraded Unclassified
2
317
I then presented the revenue measures we would support: Increased
excise taxes to bring in an additional $2 to $21 billions; estate and
gift taxes to bring in nearly an additional billion; corporation taxes
to bring in another billion or so; and the two plans for increasing
income taxes.
In explaining the two plans (a) for increased social security taxes
instead of increased income taxes for people with incomes below $3,000
and increased income taxes for people with incomes above $3,000 and (b)
increased income taxes with lower exemptions with part of the tax to
be made refundable after the war, I stressed the importance of taking
pressure off the price structure. I asked them how they would feel
about a tax of the general character of the Wagner Bill.
In asking the board members to discuss their reactions to the
program I had presented, Mr. Murray again reminded them that the dis-
cussion was strictly of a confidential nature. He said that workers
believe that an unreasonable sum is being extracted in corporation
profits; he raised the question of renegotiation and excess profits; and
then said the important problem is how the lower income groups can bear
the heavy burden of additional taxes under present wage conditions. He
said it was "comforting" that I had observed that the larger taxes will
be levied on people with incomes over $3,000, but that they all wanted
to know how the tax program will dig down into the pay envelopes of the
fellow who's making less. He then called for questions.
Question: James Thomas, Homestead, Pa.
Mr. Thomas pointed out that on the Third War Loan Drive they had
had to get every possible penny from the workers. He said that if we
continue to go to these people who are budgeting down to the finest
decimal to buy War Bonds and then come along with increased taxes, one
Regraded Unclassified
3
318
of the two programs will fall down. He asked what percentage of bonds
were cashed in. He said the workers should not be taxed further, that
they have no more "mattress money." He wanted to know just what
corporations are going to realize when they get their plants back and
said corporations have had enough windfalls to enable them to take on
more of the tax burden. He wound up by asking what effect it would have
on the tax program if every single worker were to buy "sufficient" bonds.
Answer: I told him that the tax program I had outlined assumed
the success of the Third War Loan Drive and admitted that it was true
in many cases that there was no more capacity to pay and that the war
effort would suffer if people could not maintain a decent standard
of living. But I also pointed out that there was money somewhere, that
we look for a national income of $155 billions this year. I stated
that the choice was not between taxes and no taxes, but between taxes
and inflation. I gave them some corporate figures and mentioned reserves
for reconversion and dismissal wages.
Question: Noel Beddow, Birmingham, Ala.
Mr. Beddow expressed his satisfaction that we were not going
deeper into lower incomes and then asked if the Treasury had given
any thought to-absenteeism. He said that people's unwillingness to
pay taxes on income over certain brackets was spreading like oil on
water. He mentioned the fact that workers don't receive social security
benefits until they have been off for three weeks, He said the Govern-
ment should remember that there are two ways of raising money: not
spending and taxes. He ventured the opinion that the less tax burden
we unload now on men getting 80 little, the better we shall solve our
production problem. He concluded by saying that people in the South
don't want to pay income taxes.
Regraded Unclassified
4
319
Answer: I told Mr. Beddow that we can't kid ourselves, that the
question was not whether we should go deeper into lower incomes but
what the people are going to get in return. I spoke of the benefits
envisaged in the Wagner Bill and asked him if he wanted those social
security benefits now.
Mr. Beddow said the people wanted social security now and are
willing to pay for it. He believed there would be less opposition to
this plan than the plan for refundable taxes.
I told him you can't have social security benefits without paying
for them. To the question of absenteeism I replied that that was one
reason we were opposed to an individual excess profits tax and that
we were also aware that the bands on withholding were too broad.
Question: James Robb, Indianapolis, Ind.
Mr. Robb was in favor of the social security program and wanted to
know what the effect would be of tying it to raising taxes for people
with incomes over $3,000.
Answer: I told him that I could not answer his question definitely.
It might have a bad effect on social security to tie it to the tax
program, but on the other hand, if it were not tied to the tax program,
we would get no discussion of social security until sometime next year
because the Ways and Means Committee would spend the intervening period
on the tax bill.
Question: Mike Harris, Philadelphia, Pa.
Mr. Harris wanted to know about the inflationary gap, who has the
money, and some facts and figures about the spending habits of the
American people.
Answer: I told him that we were estimating the national income at
$155 billions this year, that present taxes would reduce that figure by
UInclassified
5
320
about $20 billions, that we have available between $85 and $90 billions
of goods and services, leaving a gross gap of about $50 billions. The
gap, I said, has to be absorbed in savings and additional taxes. Much
of the money, I explained, has gone for War Bonds, insurance, debt
reduction, or is in checking accounts and "mattresses." The pattern of
saving is now running around $35 billions annually, but that still leaves
$10 to $15 billion with no place to go. I pointed out that we have not
only a present gap, but also a vast accumulation of savings such as the
country never had before - some of them volatile savings. I told him
that if we don't do something, the pressure may endanger the whole price
structure.
Question: Mike Walsh, Boston, Mass.
Mr. Walsh said the Treasury should realize the history of the
securities which were sold during the last war which were sold at
a discount in the depression that followed. He urged that there be
built up some plan which would guarantee that people can realize the
full worth of the bonds they are buying now. He said that unless some-
thing of this nature is done, he could not urge people to do all they
ought to do to sustain the war effort. His father, he said, sold his
Liberty Bonds for less than he paid for them. He thought we must do
something to convince people that they can get all their money back from
Uncle Sam.
Answer: I told him that the Treasury agreed that the people should
get back all the dollars they put into bonds. Compulsory savings,
I explained, gives something back to the people who have paid the taxes;
social security doesn't do that; it gives benefits according to need.
I told him that he was talking on a monetary level and that the real
Regraded Unclassified
321
6
way to look at it was on the economic level. What will the dollars buy?
I explained that the only way to keep our dollars buying what we need
is through taxes or savings or both.
Question: Lee Pressman, Washington, D. C.
Mr. Pressman said any discussion of taxes and inflation brings up
such related questions as price control and rationing. He said that
because of the deficiencies of rationing and price control, ostensibly
there is more money around than there are goods and services to buy.
The problem, he said, is how through taxes we can eliminate inflation
if it means more burdens on people with incomes of less than $2,500.
Assuming some tax program, he asked what then would happen with the
other basic problems regarding the cost of living. Is the Administration
going to roll back prices and bring them in relation to the Little Steel
formula? Can the situation be met by directing ourselves to just one
problem? He said we never get the situation presented in a related way,
that what the Treasury does on taxes must be lined up with other phases
of the entire program.
Answer: I told him there was no segregated front. I also said
taxes can't do the whole job and explained that the most important
function of taxes is to take away inflationary spending power without
which other controls cannot work.
Question: Philip Murray
Mr. Murray said at the end of the war there were definite dangers
of mass unemployment. If Labor organizations push immediately for a new
tax bill with a suggested additional 4% for social security and if that
plan is made immediately effective, it would tend to alleviate unemployment
agonies. He asked if the substance of the new tax program were confined
322
7
to social security if the Administration would seek to impress American
industry with the need to lay aside money for dismissal wages to meet
the needs of the masses in the event of mass unemployment. He said the
Steel Corporation was annually laying aside money for re-conversion -
about $25 million a year - for machines, equipment, and facilities to
take care of the company's needs, but that they are offering human beings
no protection from the embarrassments of unemployment. He said the
consensus runs toward the Federal Government's guaranteeing a dismissal
wage and asked if that could not be encompassed in the development of
a tax program.
Answer: I replied that there was no question that the human aspect
of the after-war crisis was more important and that I would be in favor
of taking care of that situation, but I didn't know just how it could
be done. I said I suspected that the problem could not be solved through
reserves, that it might be on payments on termination of contracts.
I stated that I would be for a program of setting up reserves for dis-
missal wages even greater than for reconversion.
Question: Elmer Maloy, Mayor of Duquesne, Pa.
Mr. Maloy said it was almost impossible to get enough men to work
on some crews because of the additional deductions from pay envelopes.
There is dissatisfaction because they do not get an accounting until
the end of the year. The men's attitude is that money is being taken
away by the Government with no reason. He believes that if the men were
told periodically how much money had been taken out of their pay envelopes,
they would feel better. He said if forced savings were adopted, records
of deductions should be made available. He added that many workers
believe they will never receive their Victory tax refunds.
Regraded Unclassified
323
8
Answer: I replied that the Steelworkers' representatives could
do a good job of educating people and told the men that issuing
a certificate immediately sounded like a good solution. I urged them
to bring home to the workers their short-sighted attitude and to help
them understand that the more they work, the more they have to their
credit. I agreed that for compulsory saving some sort of certificate
should be issued.
At the close of the meeting, which adjourned at 12:15, Mr. Murray
restated the alternative tax plans. He said the National CIO had gone
on record favoring the Wagner Bill and wanted it passed now. He
declared that there were phases of the Wagner Bill to which added con-
sideration should be given, i. e., the amount of taxes to be paid by
the employee. He thought a better division could be made between the
amounts paid by the employer and employee. He further declared that
the workers did not want to be sold down the river; they want social
security, not just 4% more taxes.
In conclusion he expressed appreciation of my coming to talk
confidentially with the executive board. He said talking these problems
over with the "common people" indicated a wholesome spirit on the part
of the Treasury. He expressed his gratitude to Secretary Morgenthau
and to me for making this information available. And he finally
cautioned the men again that the whole discussion was off-the-record.
Per
Regraded Unclassified
324
AMERICAN FEDERATION OF LABOR
MEDICAL FEDERATION MNCD OF LABOR OF
Executive Ceuneil
President, WILLIAM Games
Secretary-Treasurer, George MEANY
A. F. of L. Building, Weshington, D.C.
First Vice-President, WILLIAM L.
Carpentars' Indianapolis, Ind.
Seventh Vice-President, HARRY c. Bares,
Benefit Vice-President, MATTHEW WOLL,
as Pitteenth B., H. W., Washington, D.C.
Eights Vire-President, W. D. MARCH,
83a Legington Are, New Twi, N. T.
380 Verse Bigsway, East, Deareit, Mich.
Third Vice-President, Jossen M. Wassan,
the Vice-Prosident, Paux H. Emain,
451 Alta Drive, Beverly Hills, Les Anguiss, Call.
400-408 Carmen's Bldg., City, Mo.
Purth Vice-President, G. M.
Teath Vice-President, HOWARD PLORE,
1200 Fifteenth Bt. N. W., Washington, D.C.
422 Bloway Defiling, Buffale, N. T.
Orgid Nov.15.1881
Finis Vire-President, Gao. M.
Enventh Vice-President, HARVEY W. BROWN,
Bellway Cleria Bldg., Clarksatt, o,
Machinista' Blag, Washington, D.C.
Birth Vice-President, DAMIEL J. Toan,
Twelfth Vine-Prosident, W. c.
= Bart Mirhiga a, Indianapella, Ind.
Deleware at Tweifts Street, Indianapolis, Ind.
Thirteenth Vice-Prouldent, W. c. Docume,
LONG DISTANCE TELEPHONE NATIONAL 3870-1-2-3-4
408 A. F. of L Bldg., Weshington, D.C.
CABLE ADDRESS AFEL.
Washington 1, 1,D.C.
September 24, 1943
Honorable Henry Morgenthau
Secretary of the Treasury
Washington, D.C.
Dear Mr. Secretary:
I. am enclosing herein copy of a letter I have
just addressed to the President of the United
States, and which I am asking you to accept a8
equally addressed to you.
Respectfully yours,
When
President
American Federation of Labor
RmP
Enclosure
325
EDERATION OF
AMERICAN FEDERATION OF LABOR
Executive Council
I 1 I
- Maun
AMERICAN
LABOR
A. F. of L Delivery, Washington, D.C.
Flast Value L
Vire-President, c.
Big. Ind.
as Filless a, N. W. Washington, a. a
- MATTERN Val,
Rights Vice-President, 1.
C
- Lethighe Art., Now Twi, N. 1.
1880 Argunia Terrans, N. W. Washington, B. e
Third Visa-Provident, Jones M. Years,
Math Visa-Prosident, W.D. MARK,
VINCIT
0
- Westraft Are, Wastend, Les Asgalas, Call.
- Yener Bighway, East, Detrait, Mini,
Forth Visa-President, G. M. DOUNTAIRE,
P
Two Visa President, hus a. Known,
1300 Fiftweth R. N. W. Washington, D.G.
Orgid Nov.15.1881
400-400 Owner's Kansas City, Ma.
Fine Oas, M. HARRING
Eleventh Time President, REWARD PLOSES,
Y
Hallway Class Ridg., o.
422 Riversy Defining, Deffale, H. T.
Birth Vice-President, 1, Toace,
Twelfth Vise-President, W. lows,
- Best Michigan BL, Indespria, Ind.
Big. Washington, D.C.
TANCE TELEPHONE NATIONAL 3070-1-2-3-4
Thirteeth Visa-President, W. c. Birthright,
at Twelfih Birest, Indianapolis, Ind.
CABLE ADDRESS AFEL.
Washington, D.B. September 24, 1943
Honorable Franklin D. Roosevelt
President of the United States
The White House
Washington, D.C.
Dear Mr. President:
Labor wants more adequate social insurance to
carry workers through the reconversion and readjustments
after the war and to protect us against dependency in
the future. We propose to raise the rate of taxation
on payrolls to twelve percent, half paid by employees
and half by employers. Because wage earners incomes
do not permit of much adjustment after we buy the nec-
essaries at present prices, we urge that the Federal
tax program be drawn 80 as to permit us to make this
investment, otherwise we shall be effectively denied our
first step in post-war planning.
Our bill for this purpose which is already before
Congress, would increase revenues from social insurance
taxes to eight or nine billion dollars. On behalf
of all wage earners I appeal to you for the opportunity
to make this investment in insurance to provide against
loss of income through unemployment, old age, perman-
ent disability and sickness. This is the only fiscal
proposal that will serve the double purpose of pro-
viding the Government with war credit and meeting the
insurance needs of Labor. Forced loans may meet an
immediate fiscal need but they do not provide insurance
against coming emergencies that interrupt wage earning.
2Eb
As you initiated our social insurance program,
I feel warranted in making this plea. Expansion of
social insurance to meet post-war emergencies desperately
needs your support and leadership.
Very respectfully yours,
William Green
President,
American Federation of Labor
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Mr. Paul will
mail miginal
to Sun. 9/24/43
Secretary Morgenthau
SEP 24 1943
Randolph Paul
Conference with Stealworkers
At 10:30 on the morning of September 21 I net with the
Executive Board of the United Steelworkers of America at the
William Penn Hotel in Pittsburgh. The invitation to discuss
the Treasury's tax proposals with the steelworkers' represent=
atives was extended by the officers of the international organ-
isation. Phil Murray presided at the meeting. On the platform
with him were Daird J. McDonald, secretary-treasurer; Clinton
J. Golden and Van A. Bittner, assistants to the president.
Thirty-nine board members and 15 or 20 staff members were present.
I explained that I was going to give them an off-the-
record summary of the tax program the Treasury will present to
Congress and I invited their reactions to it. Mr. Murray also
stressed the confidential nature of the discussion.
I told the board members that the Treasury intends to
oppose a sales tax on the ground of equity, its inflationary
effects, small revenue yield, and administrative difficulties.
I urged their support of our position.
I also explained that we would oppose any tax on increases
on individual income on the grounds that there was no adminis-
trative basis for the tax and it would have a bad effect on war
workers' incentives to work.
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2
I then presented the revenue measures we would support: Increased
excise taxes to bring in an additional $2 to #2} billions; estate and
gift taxes to bring in nearly an additional 01 billion; corporation taxes
to bring in another billion or 80; and the two plans for increasing
income taxes.
In explaining the two plans (a) for increased social security taxes
instead of increased income taxes for people with incomes below $3,000
and increased income taxes for people with incomes above $3,000 and (b)
increased income taxes with lower exemptions with part of the tax to
be made refundable after the war, I stressed the importance of taking
pressure off the price structure. I asked them how they would feel
about a tax of the general character of the Wagner Bill.
In asking the board members to discuss their reactions to the
program I had presented, Mr. Murray again reminded them that the dis-
cussion was strictly of a confidential nature. He said that workers
believe that an unreasonable sum is being extracted in corporation
profits; he raised the question of renegotiation and excess profits; and
then said the important problem is how the lower income groups can bear
the heavy burden of additional taxes under present wage conditions. He
said it was "comforting" that I had observed that the larger taxes will
be levied on people with incomes over $3,000, but that they all wanted
to know how the tax program will dig down into the pay envelopes of the
fellow who's making less. He then called for questions.
Question: James Thomas, Homestead, Pa.
Mr. Thomas pointed out that on the Third War Loan Drive they had
had to get every possible penny from the workers. He said that if we
continue to go to these people who are budgeting down to the finest
decimal to buy War Bonds and then come along with increased taxes, one
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328
of the two programs will fall down. He asked what percentage of bonds
ware cashed in. He said the workers should not be taxed further, that
they have no more "mattress money." He wanted to know just what
corporations are going to realize when they get their plants back and
said corporations have had enough windfalls to enable them to take on
more of the tax burden. He wound up by asking what effect it would have
on the tax program if every single worker were to buy "sufficient" bonds.
Answer: I told him that the tax program I had outlined assumed
the success of the Third War Loan Drive and admitted that it was true
in many cases that there was no more capacity to pay and that the war
effort would suffer if people could not maintain a decent standard
of living. But I also pointed out that there was money somewhere, that
we look for a national income of $155 billions this year. I stated
that the choice was not between taxes and no taxes, but between taxes
and inflation. I gave them some corporate figures and mentioned reserves
for reconversion and dismissel wages.
Question: Noel Beddow, Birmingham, Ala.
Mr. Beddow expressed his satisfaction that we were not going
deeper into lower incomes and then asked if the Treasury had given
any thought to absenteciam. He said that people's unwillingness to
pay taxes on income over certain brackets was spreading like oil on
water. He mentioned the fact that workers don't receive social security
benefits until they have been off for three weeks. He said the Govern-
ment should remember that there are two ways of raising moneyi not
spending and taxes. He ventured the opinion that the less tax burden
we unload now on men getting so little, the better we shall solve our
production problem. He concluded by saying that people in the South
don't want to pay income taxes.
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329
Answer: I told Mr. Beddow that we can't kid ourselves, that the
question was not whether we should go deeper into lower incomes but
what the people are going to get in return. I spoke of the benefits
envisaged in the Wagner Bill and asked him if he wanted those social
security benefits now,
Mr. Beddow said the people wanted social security now and are
willing to pay for it. He believed there would be less opposition to
this plan than the plan for refundable taxes.
I told him you can't have social security benefits without paying
for them. To the question of absenteeism I replied that that was one
reason we were opposed to an individual excess profits tax and that
we were also aware that the bands on withholding were too broad.
Question: James Robb, Indianapolis, Ind.
Mr. Robb was in favor of the social security program and wanted to
know what the effect would be of tying it to raising taxes for people
with incomes over $3,000.
Answer: I told him that I could not answer his question definitely.
It might have a bad effect on social security to tie it to the tax
program, but on the other hand, if it were not tied to the tax program,
we would get no discussion of social security until sometime next year
because the Ways and Means Committee would spend the intervening period
on the tax bill.
Question: Mike Harris, Philadelphia, Pa.
Mr. Harris wanted to know about the inflationary gap, who has the
money, and some facts and figures about the spending habits of the
American people.
Answer: I told him that we were estimating the national income at
$155 billions this year, that present taxes would reduce that figure by
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330
about $20 billions, that we have available between $85 and $90 billions
of goods and services, leaving & gross gap of about 850 billions. The
gap, I said, has to be absorbed in savings and additional taxes. Much
of the money, I explained, has gone for War Bonds, insurance, debt
reduction, or is in checking accounts and "mattresses." The pattern of
saving is now running around $35 billions annually, but that still leaves
$10 to $15 billion with no place to go. I pointed out that we have not
only & present gap, but also a vast accumulation of savings such as the
country never had before - some of them volatile savings. I told him
that if we don't do something, the pressure may endanger the whole price
structure.
Question: Mike Walsh, Boston, Mass.
Mr. Walsh said the Treasury should realize the history of the
securities which were sold during the last war which were sold at
a discount in the depression that followed. He urged that there be
built up some plan which would guarantee that people can realize the
full worth of the bonds they are buying now. He said that unless some-
thing of this nature is done, he could not urge people to do all they
ought to do to sustain the war effort. His father, he said, sold his
Liberty Bonds for less than he paid for them. He thought we must do
something to convince people that they can get all their money back from
Uncle Sam.
Answer: I told him that the Treasury agreed that the people should
get back all the dollars they put into bonds. Compulsory savings,
I explained, gives something back to the people who have paid the taxes;
social security doesn't do that; it gives benefits according to need.
I told him that he was talking on a monetary level and that the real
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331
way to look at it was on the economic level. What will the dollars buy?
I explained that the only way to keep our dollars buying what we need
is through taxes or savings or both.
Questions Lee Pressman, Washington, D. C.
Mr. Pressman said any discussion of taxes and inflation brings up
such related questions as price control and rationing. He said that
because of the deficiencies of rationing and price control, ostensibly
there is more money around than there are goods and services to buy.
The problem, he said, is how through taxes we can eliminate inflation
if it means more burdens on people with incomes of less than $2,500.
Assuming some tax program, he asked what then would happen with the
other basic problems regarding the cost of living. Is the Administration
going to roll back prices and bring them in relation to the Little Steel
formula? Can the situation be net by directing ourselves to just one
problem? He said W never get the situation presented in & related way,
that what the Treasury does on taxes must be lined up with other phases
of the entire program.
Answer: I told him there was no segregated front. I also said
taxes can't do the whole job and explained that the most important
function of taxes is to take away inflationary spending power without
which other controls cannot work.
Question: Philip Murray
Mr. Murray said at the end of the war there were definite dangers
of mass unexployment. If Labor organisations push immediately for a new
tax bill with a suggested additional 45 for social security and if that
plan is made immediately effective, it would tend to alleviate unexployment
agonies. He asked if the substance of the new tax program were confined
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332
to social security if the Administration would seek to impress American
industry with the need to lay aside money for dismissal wages to meet
the needs of the masses in the event of mass unemployment. He said the
Steel Corporation was annually laying aside money for re-conversion -
about $25 million a year - for machines, equipment, and facilities to
take care of the company's needs, but that they are offering human beings
no protection from the embarrassments of unemployment. He said the
consensus runs toward the Federal Government's guaranteeing a dismissal
wage and asked if that could not be encompassed in the development of
a tax program.
Answer: I replied that there was no question that the human aspect
of the after-war crisis was more important and that I would be in favor
of taking care of that situation, but I didn't know just how it could
be done. I said I suspected that the problem could not be solved through
reserves, that it might be on payments on termination of contracts.
I stated that I would be for a program of setting up reserves for dis-
missal wages even greater than for reconversion.
Question: Elmer Maloy, Mayor of Duquesne, Pa.
Mr. Maloy said it was almost impossible to get enough men to work
on some crews because of the additional deductions from pay envelopes.
There is dissatisfaction because they do not get an accounting until
the end of the year. The men's attitude is that money is being taken
away by the Government with no reason. He believes that if the men were
told periodically how much money had been taken out of their pay envelopes,
they would feel better. He said if forced savings were adopted, records
of deductions should be made available. He added that many workers
believe they will never receive their Victory tax refunds.
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333
Answer: I replied that the Steelworkers' representatives could
do a good job of educating people and told the men that issuing
a certificate immediately sounded like a good solution. I urged them
to bring home to the workers their short-sighted attitude and to help
them understand that the more they work, the more they have to their
credit. I agreed that for compulsory saving some sort of certificate
should be issued.
At the close of the meeting, which adjourned at 12:15, Mr. Murray
restated the alternative tax plans. He said the National CIO had gone
on record favoring the Wagner Bill and wanted it passed now. He
declared that there were phases of the Wagner Rill to which added con-
sideration should be given, 1. e., the amount of taxes to be paid by
the employee. He thought a better division could be made between the
amounts paid by the employer and employee. He further declared that
the workers did not want to be sold down the river; they want social
security, not just 4% more taxes.
In conclusion he expressed appreciation of my coming to talk
confidentially with the executive board. He said talking these problems
over with the "common people" indicated a wholesome spirit on the part
of the Treasury. He expressed his gratitude to Secretary Morgenthau
and to me for making this information available. And he finally
cautioned the men again that the whole discussion was off-the-record.
(Initialed) R.B.P.
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SUMMARY OF TAX PROGRAM IN SECRETARY
Orig. dent to 9/24/42- Sery. at farm 334
STATEMENT TO WAYS AND MEANS COMMITTEE
I
Need for More Revenue
With governmental expenditures of $109 billion and our
present tax system, about $66 billion must be borrowed
from the banks and the public during the fiscal year
1944 if no further tax measures are enacted.
1. So much deficit spending threatens a further rise
in prices.
2. A large accumulation of purchasing power also
threatens prices and postwar stability.
3. The postwar interest-carrying charges are lessened
by additional taxes.
4. Borrowing does not lighten the real economic sacrifice
of the war, which is doing without wanted things.
II
Excise Taxes
The recommendation is $2.5 billion new revenue from raising
excise tax rates and imposing new excises.
1. The sales tax may be criticized on several grounds.
(a) That it affects necessary expenditures of
the average family, which excises do not;
that it is not compatible with wage and
price stabilization; that it imposes severe
administrative difficulties; and that it
bears heavily on persons with low incomes.
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2. There is a very strong demand for cigarettes, distilled
spirits, admissions, etc., showing that added taxation
is possible.
3. Excise taxes and the new rates suggested should not be
permanent.
4. A sales tax with personal exemptions, or at a graduated
rate, and a luxury purchasing tax of the British type
is not practical.
III
Estate and Gift Taxes
The recommendation is $400 million on a full year basis
through an increase of rates and a reduction of exemptions.
IV
Corporation Taxes
The recommendation is an additional $1.1 billion by raising
the combined surtax and normal tax rates to 50% for the
large corporations and 29 to 33% for small corporations.
1. Corporate profits are so high that these additional
taxes can be paid.
2. Small corporations deserve special treatment as to
rates, and should be permitted to cash their postwar
credit immediately on termination of the war up to
$25,000.
3. We oppose corporate postwar reserves, but advocate
a carryback system for late war expenses which will
give adequate relief.
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336
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V
Individual Income Tax
A.
Social Security Program. -- The preferred recommendation
is that the Social Security program should be extended and
expanded to cover practically all persons now uncovered,
to increase unemployment insurance benefits, and to provide
benefits for temporary disability and hospitalization, but
not medical care.
1.
This would require an increase. in the employee payroll
tax of 2 percentage points and an increase in the
employer payroll tax of about 1 percentage point.
2.
In this way there will be provided for the civilian
population somewhat the same kind of postwar security
outlined by the President for the armed forces.
3.
These increased payroll taxes will check inflation
during the war.
4.
The individual income tax increases proposed have been
adjusted for this 2-point increase in the employee
payroll tax.
B.
The Individual income tax. -- The recommendation is
that there be increases in the income tax, integrated
to the above Social Security program, which, together with
the Social Security program, will yield from $6.5 billion
to $8 billion of additional revenue, the net increase in
income tax revenue being from 3 to 3 1/2 billion with postwar
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337
-4-
credits being substituted to the extent that the Social
Security increases recommended above are not adopted.
C.
Postwar Credits. -- Postwar credits are recommended
in the event that the Social Security program is not
extended.
1.
To the extent that a postwar credit is allowed, it
should be returnable primarily to the low income
group.
2.
The credit should be currently available in part to
those whose incomes remain fixed, or who have heavy
commitments for debt repayment and life insurance
contracts.
D.
We have completed 8. study of the possibility of taxing
increases in incomes and have decided not to recommend
such a tax. The study is offered for the record.
E. To simplify the individual income tax law and the
income tax return it is recommended that the Victory tax
be repealed.
F. It is recommended that personal exemptions should be
lowered from $1200 to $1100 for married persons and the
dependency credit from $350 to $300, leaving the single
exemption unchanged at $500. This recommendation assumes
the repeal of the Victory tax and the allowance of postwar
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338
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rebates. With such repeal, married persons with very
low incomes will still be benefited.
G. Assuming the repeal of the Victory tax, it is recommended
that the present falsely-named earned income credit be
repealed.
H. It is recommended that the additional revenue required
be raised through an increase of the surtax rates throughout
the scale.
VI
Conclusion
While important loopholes should be eliminated, it may be
impossible to deal with them in this bill because of
time limitations.
Many technical matters important for simplification and
the relief of hardship could be taken up in next year's
revenue bill. In the meantime, to avoid retroactive
taxation, the present bill should become law in time to
place tax increases in operation on January 1, 1944.
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339
MEMORANDUM FOR THE SECRETARY.
September 24, 1943.
Mail Report
Mail concerning the Declaration of Estimation hit
its peak on Saturday, September 18, with 35 letters on
that subject alone; two-thirds of them including copies
of Form 1040 E.S. Since then, completed returns, re-
mittances, inquiries and protests have continued to
arrive, but with B. diminishing intensity. Needless to
say, there continues strong opposition both to the tax
rates now in force and to further increase. A number
of writers urge simplified taxes as well as simplified
forms. Among the possible methods suggested, the sales
tax continues to be the most widely approved. The Win
the War tax program of the CIO was endorsed by 5 local
Unions and by 21 persons in what might be the start of
B. postal card campaign. The excess profits tax on the
income of individuals is recommended now and then, while
one writer disapproved the current proposal to allow tax-
exemption on insurance policies in effect prior to
Pearl Harbor.
Bond mail was much like that of last week, although
even heavier. Sales reports, requests for various type
of assistance, and quantities of promotional material
came in every mail. There were many replies to form
communications mailed by the War Finance Division to banks,
merchant associations, and Chambers of Commerce. While
nearly all replies gave assurances of cooperation, many
bank officials spoke out strongly against the competition
of Federal Credit Agencies, or bewailed the manpower
problem resulting from the failure of the War Manpower
Commission to recognize banks as essential to the War
effort. There were occasional protests of the use of long
telegrams instead of letters, while several local Com-
mittee Chairmen explained that Bond sales are slow in
rural areas because crops have not been harvested and
cash is not available.
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340
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Memorandum for the Secretary.
September 24, 1943.
For the first time there were a number of individual
requests for exemption to the $5,000 maximum yearly pur-
chase ruling in regard to "E" Bonds. Each request was
based on the purchaser's desire to contribute to the
quota of 8. particular group or community.
There was a slight decline both in the number of com-
plaints from War Department personnel and in the number
of Bonds submitted for redemption.
Although earlier addresses by the Secretary were
occasionally mentioned, most of the comments during the
past week centered on the address of September 15 at the
Back the Attack" show. About one-third of the comment
was complimentary. Most of the unfavorable comments were
scribbled on clippings of an article by DeWitt MacKenzie,
or appeared to be paraphrases of his ideas.
The anonymous, abusive postal cards and letters re-
appeared in the mail and several came in each day. Taxes,
the Third War Loan Drive, anti-British feeling, and
Government waste all served B.S reasons for attack upon
the Secretary personally and upon the Administration.
Several writers sent copies of a hand-bill circulated in
the campaign of Edward W. Carey for Mayor of Detroit and
complained of the extremely prejudicial contents as
calculated to stir up race hatred.
Although the protests about the new pennies have
slacked up, they still appear with fair regularity and
continue to be very bitter.
Gabrelle E Forbush
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341
General Comments
Fritz Lederer, Quito - Ecuador, S.A. I take the liberty
again to draw your attention to the matter of fact that
I made an application on the 15th of March, 1943, to
your office, with the request to release my blocked 202
dollars, which I put in the Banco Central in Guayaquil,
Ecuador on the 26th of August, 1942. I was called in
this matter to the American Embassy in Quito on the 6th
of May, 1943, and I gave all the information they want,
frankly and truly. Since I got no answer, I wrote again
to your office on the 8th of July, 1943, asking for a
reply or a decision. Neither I got answer yet, nor has
been sent back again my papers, sent on the 15th of
March. Therefore I beg to ask you again, Dear Sir, to
release my money, as I need it and I don't think that
there is any slightest supposition that I am not worthy
for the release of my money. Please accept my apology
for the caused troubles.
Archibald McMillan, Boston, Mass. The three enclosures
will explain why I cannot help in your campaign to sell
Victory Bonds to the extent of $1,000. Mary McMillan,
my sister, has been interned by the Japs since January,
1942. She was associated with the Peiping Union Medical
College since 1932. With B. Power of Attorney I have had
charge of her affairs and to her apparent satisfaction
during that period. I was informed last June that her
account was blocked and upon inquiry at the Federal
Reserve Bank I was told that Uncle Sam was protecting
her interests, just how, I have never been able to
figure out. However, I spent hours filing the necessary
papers to enable me to obtain 8 license asking that I be
permitted to take care of her business as called for in
my Power of Attorney. When I received the license it was
so circumscribed that the bank declined to pay a check
for $11.00 for a fire insurance premium without first
receiving the approval of the Federal Reserve Bank. I am
now supposed to make a report on any business I may have
transacted during those three months, and I presume apply
for an extension. Aside from paying her taxes and making
ment has notified me that my sister is returning on the
deposits I have nothing to report and as the State Depart-
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342
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Gripsholm, I shall not unravel any more red tape but
will let things ride as they are until her return.
Here's the check and it's up to you whether you want
to fill the order. (Enclosed check for $1,000 for Bonds
returned to Mr. McMillan by bank as funds blocked and
cannot be released for such purpose.)
J. Wesley Rose, Rochester, N.Y. Only the fact that this
is still the land of the free gives me the courage to
write this letter. Because of my vocation as an
accountant, it has been, for 8. period of twenty odd
years, my privilege and pleasure to have had a reason-
able amount of contact and experience with the office
of the Collector of Internal Revenue and other divisions
of the Treasury Department. The contacts have been
pleasant, the Treasury personnel excellent, and the
rulings have been reasonable, fair and equitable. Dur-
ing the past year a new department has been added, namely
the Salary Stabilization Unit, and, after some experience
with that particular division, it is quite obvious that
either the entire setup is subterfuge or the personnel
is politic and incompetent, or else the Stabilization
Act is 80 written as to make a reasonable or fair inter-
pretation of the Act impossible. # # * Insofar as your
Salary Stabilization Unit is concerned, it is a one-way
street, for with that particular division time definitely
is not of the essence and replies (if you are fortunate
to receive one) are curt to the point of being insulting.
Unfortunately, the only people who get euchred by your
Salary Stabilization Act are the ones who are called upon
to do the extra work in connection with Governmental re-
quests -- namely, the so-called white-collar workers who
are on a salary basis and who are honest enough to en-
deavor to comply with the law. # * # Your program from
Monticello was excellent, in fact, the entire promotional
program in connection with the Third Loan has been worthy
of the Treasury Department. Frankly, the majority of the
people in my category feel guilty that they cannot partic-
ipate to a greater degree. * # * Personally, I doubt
whether your S.S.U. has the authority to act favorably
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343
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on a request, and if this is the case, in all fairness
to the public, we should be so advised and thus eliminate
the work that these so-called requests involve -- inci-
dentally, this is the first letter I have ever written
the Treasury Department that did not start with "Enclosed
please find", and it really seems good.
Norman B. Hafleigh, President, Hafleigh & Company, Manu-
facturers of Bone Buttons, Bone Meal, Case Hardening
Bone, Buchanan, Va. The enclosed clipping (Bond State-
ment) is from the Philadelphia Bulletin of September 13
and I am heartily in accord with everything you say, as
I usually am. We need more Morgenthau's in Washington.
*** Now you want us to buy more Bonds, and we want to
buy them but the Administration has practically knocked
the foundations out from under us. During the first
five months of this year there have been brought in from
Argentina alone 2,932 tons of bones that were ground up
for gelatine and fertilizer. These same bones could have
had the buttons taken out of them and then gone into
gelatine and case hardening material for hardening gun
parts, but the short-sightedness of Washington has pre-
vented us from getting one bone from South America since
October 1942. We are shut down, all but our machine shop,
where we have about a dozen men making small parts for
gun mounts. We have left no stone unturned to get help,
but thout success. Do you feel disposed to do something?
W. C. Hubbell, President, The Harvard State Bank, Harvard,
Illinois. We have your letter of September 7th expressing
appreciation for the cooperation of the banks of the
United States in the nation's war financing. * 41- * There
are just two little favors we would like to ask of your
Department in return. # # # First, when the Treasury
Department has & difference to settle with banks, we be-
lieve it would be more ethical and polite to do it
directly with the banks involved rather than through the
newspapers. We have reference to your Mr. Bell's recent
waspish comments on legitimate bank charges for handling
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344
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redemption of U. S. Savings Bonds. Second, the next
time the Department of Agriculture comes to the Treasury
Department for B. hand-out to be used in competition with
country banks, we wish you would remember that in order
to render gratuitous service to the Treasury Department,
country banks must first make a living in their legit-
imate field of private enterprise, then pull the Treasury
purse strings just a little tighter on the Department of
Agriculture.
Senator H. C. Lodge, Jr., forwards the following letter
he has received from Fred E. Bergfors, Treasurer, The
Quincy Oil Company, Quincy, Mass. We have been informed
that the Treasury Procurement Division is about to change
the contract period for gasoline on their bids from three
months to one month. This would practically eliminate us
and all other small independent oil companies from bid-
ding, as we could not afford the risk of & guaranteed bid
over a year in advance. The elimination of independent
marketers from bidding on Government business means that
the Government will pay higher prices because even where
the independent marketers have not been the low bidders,
the fact that they were bidding influenced the prices
submitted. * # %
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345
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Favorable Comments on Bonds
C. Albert Gilson, President, The Farmers and Mechanics
National Bank, Frederick, Md. # # # I am sure we are all
glad for the part we have been privileged to have in all
of this work under your able and inspiring leadership.
I wish to thank you for your address in St. Louis last
week. It made me feel like making greater effort in be-
half of the Third War Loan. The banks have responded
in every way possible to advance the War effort, which
we all hope will be successfully and speedily concluded.
the 48
Harry Scherman, Book-of-the-Month Club, N.Y.C. It was
certainly most thoughtful of you to write me about our
War Bond advertisement, in the midst of your perpetual
activity, and I fully appreciate it. I always feel that
these educational jobs are more or less futile, except
for the long run. Yet, of course, they have to be done,
and it is certainly gratifying to have you think that this
particular one has been of some use in the current situa-
tion.
Benj. Mesrobian, Forest Hill, Long Island. Some thirty
years ago I came to this country from Turkey -- one more
Armenian whose life had been made unlivable by the then-
existing Turkish regime. When I landed here I had 3
schillings in my pockets and nothing more. The following
day I applied for citizenship papers, receiving them in
due time. True enough, I worked very hard for little
pay, but I was a young man then and it was good for me.
It was not all hard work, however, for the country gave
me many opportunities, never questioned my ancestry, nor
denied me 8. chance because of my old-country beliefs and
church affiliations. Today, I find myself comfortably
settled in my home, with my happy family, and I realize
that all I have I owe to my Uncle Sam. # 4/ * I am,
unfortunately, too old to fight and buying War Bonds
makes me feel as I would if I charged my son board for
living in our home. I happen to have two apartment
houses in Forest Hills from which I collect rents.
I have notified my tenants that if they will buy 8 Bond
Regraded Unclassified
346
- 6 -
during this Third War Loan Drive, I will rebate $5 on
account of their October rent. Most of them have taken
advantage of this offer so far.
Robert J. Walker, Paint Lick, Kentucky. Nestling near
the foot-hills of the Cumberlands, on the bank of Paint
Lick Creek, from whence the village got its name, is
Paint Lick, Kentucky. On the morning of the 15th of
September, 1943, the villagers were gathered, deject-
edly discussing the battle of Salerno; all were wishing
they could do something to help, and as most of them
had bought about all the Bonds they felt they could,
some one suggested they all "chip in" and buy a Bond
in the name of the President, and send it to him to be
put in & scrap book -- "The President's Scrap Book of
War Bonds". No sooner suggested than they began to
chip in and word of it passed around the village. Soon
the money was made up to buy a $100 War Bond. After
the Bond was written and being made ready for dispatch,
more money came in and War Savings Stamps were pasted
on the face of the Bond. It was mailed to the President
from the village of Paint Lick, Kentucky, for his "Scrap
Book".
Charles H. Lane, Southboro, Mass. Urgent appeals are
being broadcast over the radio to help the Third War Loan
Drive. I cannot do anything more than I am already
doing. I em employed on the night shift at the Bay State
Abrasive Products Company in Westboro, Mass., and all of
my salary, after tax deductions, is left for War Bonds.
In other words, I do not receive one cent in money.
I doubt whether 8. large percentage of the citizens of
the United States can say the same. # # #
Charles J. Babcock, N.Y.C. On Sunday, Sept. 26, 1943,
Holy Trinity Church will commemorate its Thirty-fifth
Anniversary. This occasion will mark the opening of
a campaign to liquidate the church mortgage by means
Regraded Unclassified
347
- 7 -
of an arrangement made with the Lincoln Savings Bank
of Brooklyn, N. Y., whereby all contributions received
will be applied against the mortgage and invested by
the Bank in War Bonds. By this method our parishioners
will sustain their Church and also make a direct con-
tribution to the Third War Loan. We believe this is
unique in the history of Church financing. ***
Marion G. Terry, President, Organization of Parents of
Motion Picture Children, Los Angeles, Calif. Please
accept my thanks for your timely wire of September 4
to the children of our organization. The youngsters
were thrilled, and with the enthusiasm of youth, gave
untiringly of their talents and efforts to make their
Bond Drive of September 14 an outstanding success. You
may be assured the boys and girls of the Motion Picture
Industry will carry on, not only to inspire all others
in our southland schools, but to all Americans, and
those privileged to enjoy the hospitality and freedom
of our great country, irrespective of race or creed.
Regraded Unclassified
348
- 8 -
Unfavorable Comments on Bonds
Samuel Sternefeld, N.Y.C. I own Series D Bonds pur-
chased in January, 1940. I bought these and named cer-
tain beneficiaries, and now I find that I want to
change the beneficiary. To my surprise I was told that
I could not change beneficiaries unless the present one
signed a waiver. This would have been very embarrass-
ing for me or any citizen to ask the beneficiary to sign
these papers. Rather than do this, I had to sell a
greater portion of these Bonds so that I could buy new
ones, made out with the name of the new beneficiary.
This, I believe, is very unfair. Because of my income
bracket, the interest which I probably will receive on
my sale will be approximately $360, and this transaction
will cost me 1/3 on my income tax. In other words, this
action cost me $120 only because I wanted to make &
change of beneficiary. # # # After all, we have a right
to leave our money to whomever we wish, and nobody likes
to sell his Bonds prior to maturity unless it is an
absolute necessity. # # #
Shirley M. Kammerman, Atlantic City, N.J. On April 8
I attended a dinner Bond rally at the Statler Hotel in
Washington and purchased a $1,000 Bond, for which I gave
8. check in payment. To date I have never received my
Bond. Several times I have written to Mr. A. E. Wilson,
who is Assistant Chief in Charge of the Division of
Loans and Currency at the Chicago Office, and each time
he writes that as soon as he has definite information he
will write to me. 42 # # His letters have always been
exactly the same, only for B. difference in date, and
I am not at all satisfied. Several months have passed
since I sent him 8. photostatic copy of my check, which
was never acknowledged. # # # I would certainly appreci-
ate any attention that you could give this matter and
advise me on it. I am enclosing photostat copy of my
check which was the payment for the Bond in question.
Regraded Unclassified
349
- 9 -
Hugh W. Sanford, Knoxville, Tenn. I have just been
approached for the purchase of some more War Bonds on
the present drive. I bought my limit of $5,000 Series
E Bonds both for myself and Mrs. Sanford in April of
this year, and I am now informed that I will not be
permitted to buy any more of this class of Bonds. * *
If I buy any Bonds at all, I should take those which
give 8, less return in interest. This indicates to me
that the Government is not very anxious to sell Bonds
to the people of wealth; otherwise they would not treat
them in this fashion. Or perhaps it is that the Govern-
ment merely wants to treat people of wealth in this
manner. In my own case I would probably have to pay
75% to 85% of the interest on these Class E Bonds to
the Government in taxes anyhow, 80 even if I were able
to purchase the 2.9% Bonds, the actual spending money
returned to me would amount to approximately .6%. #
If the Government really wanted to sell War Bonds to
the wealthy people, they would be more inclined to make
the investment more attractive. Or does the Government
expect rich people to put patriotism above everything
else so that they will buy these Bonds even on a basis
that pays practically no yield whatever to them, while
the working classes are permitted to receive 8 much
better return. # This sort of socialistic attitude
is very discouraging to the average American who has
saved money and gotten ahead. Unless some change of
heart takes place in Washington pretty soon, I think
there will be somewhat of 8. revolution in this country.
Anonymous - Postal Card. In re news reel showing you
and Churchill. That was wonderful information. No
person has hauled as much out of this land as Churchill -
American lives, supplies and money. And he gets his
picture broadcast for the purchase of 8. $100 Bond.
NO MORE THAN ANY ORDINARY WORKMAN in this land is ex-
pected to give. Does he come in for any of the 20%
withholding tax? We did not see your picture taking
that from him up to now. Why not show one of him
getting the 20% for that's the way it is.
Regraded Unclassified
- 10 -
350
G. M. Poley, General Chairman, Ogle County War Finance
Committee, The Ogle County National Bank, Oregon, Ill.
I wish to protest most vigorously against your method
of geographical sales credit of the Third War Loan
securities. It is absolutely unfair to allocate sales
of all but Series E Bonds to the geographical location
of the purchaser instead of the geographical location of
the issuing agency. Our Third War Loan Committee has
worked hard for additional subscriptions from corpora-
tions doing business in this county and from non-
resident landowners. # # If you are going to have
quotas, it is only right that the sales be credited to
the place they originated. * # % In rural areas the larger
cities receive credit for the Series E Bonds withheld
under payroll deductions, rather than the communities in
which the workers live. Unless you adopt 8. fairer method
of allocating sales, your County Finance Committees will
cease to put forth this extra effort.
Senator Burton K. Wheeler sends the following letter he
has received from R. A. Culbertson, Chairman of Demo-
cratic Central County Committee, Chouteau County, Mont.
(Identical letter also sent to the Secretary by Senator
James E. Murray of Montana.) There have been several
complaints made to me by the newspapers of this small
community on the advertising sent out by the Secretary
of the Treasury on these War Loan Drives. The Secretary
of the Treasury asks them to secure sponsors to help pay
for these advertisements. In these small communities
they cannot secure sufficient sponsors to pay for these
advertisements, and practically all the burden falls upon
the newspapers. Further, they are cut down on their paper
supply and are required to use such advertisements, which
cuts them down on their legal commercial advertisements.
So they feel, and I believe likely so, that they are
carrying the whole burden of these advertisements. And
I was wondering if there was any way in which the Treasury
could be permitted to take up some of the slack in this
matter by providing for some payment for these advertise-
ments to the small newspapers, probably based upon the
circulation of such newspapers. As in most cases, these
small newspapers are having a hard enough time trying to
get by without requiring them, at their own expense, to
use their limited paper supply for running these advertise-
ments, and it is also reducing their regular paid ads. #
Regraded Unclassified
351
- 11 -
John Smith, A Disgusted Taxpayer, San Francisco, Calif.
Please read enclosed articles. If your Third War Loan
is disappointing, your answer is here. We who work in
shipyards see so much of our money wasted that we wonder
if what we subscribe for War Bonds goes where our taxes
go -- into the pockets of grafters and war contractors,
and not into the proper channels -- that is, war materials.
Congressman Robert A. Grant, Washington, D. C. (Indiana).
I am sending you a copy of 8. telegram which was forwarded
to me by the Editor of a newspaper of some 10,000 circu-
lation in & small city in Indiana. I would like to have
you advise me how many newspapers of the country received
copies of this telegram and what was the expense involved.
I would also like to have your personal comment as to
whether or not you approve of this tripe at the expense
of the Bond program which we are trying to promote.
(Long telegram by line Hortense Britt, describing HMJr's.
broadcast from Monticello, signed Treasury News Room.)
Senator Tom Connally (Texas). Herewith I am handing you
a letter from Mr. Rau H. Nichols, Editor of the Vernon
Daily Record of Vernon, Texas, with respect to wasteful
extravagance in the matter of telegraphing instructions
for advertising regarding the Third War Loan.
(The letter from Mr. Nichols reads as follows.) On
September 8 we received B. telegram of several hundred
words giving copy for a full-page advertisement which
we were requested to run free in connection with the
Third War Loan. The Treasury Department was not satis-
fied to waste many thousands of dollars of the taxpayers'
money in handling a matter by telegraph, which could
have just as easily been handled by mail, but went on
to give detailed instructions as to capitalization,
punctuation and spacing in connection with putting the
ad in type. The Treasury Department spent the tax-
payers' money with the Western Union, asking newspapers
to donate hundreds of thousands of dollars worth of
space. # The only way B. free press can be maintained
in this country is through the sale of advertising.
Under present Government policies, the idea seems to be
that all paid advertising should be discouraged. ***
Regraded Unclassified
352
- 12 -
I believe relations between the press and the Govern-
ment would be on a much sounder basis if the Government
paid newspapers for services rendered, just as it pays
other kinds of businesses for goods and services. I think
this matter is serious enough to justify some attention
by Congress. #
Cezar Milos, Officers and Seamens Unions of the Kingdom
of Jugoslavia, N.Y.C. There are many Yugoslav seamen
who have bought War Bonds to help the Allied cause.
Many of. them have put them in their name and as bene-
ficiaries, relatives in Yugoslavia. We considered that
it will be possible to cash the Bonds through the American
Embassy or Consulate in & foreign country. Just now we
learned that those Bonds can be cashed only in the United
States and not from a foreign country. That fact puts
our sea-going men in a very difficult position. Many of
them may not be able to come to the United States for the
purpose of cashing War Bonds, as they do not know where
their assignment might take them. # # For others, big
travelling expenses may be involved. Many seamen will
probably consider it necessary to cash the Bonds before
maturity date, and maybe at their next visit to the United
States. # # # This fact does not make it possible for us
to recommend further buying of War Bonds, as we have done
until now, as we and the seamen will have to consider
that the money invested in War Bonds will be lost. # #
+
We would appreciate it very much if you could let us have
some explanation concerning the above situation. *
#
Regraded Unclassified
353
- 13 -
Favorable Comments on Taxation
Max P. Haas, European Picture Service, N.Y.C. I believe
that many people are seriously inconvenienced by the
impossibility to continue to buy Tax Bonds. This is
particularly true of those taxpayers who are not subject
to the withholding tax because they are in business for
themselves. I am sure that an issue of Tax Bonds, even
if it would not bear any interest at all, would be a great
help for these taxpayers because it would enable them to
save up for the day when their taxes fall due.
Regraded Unclassified
354
- 14 -
Unfavorable Comments on Taxation
Augustus L. Richards, N.Y. C. My purpose in sending
you the enclosed correspondence with a local branch
of your Department is not to criticize any individual,
but to bring to your attention 8 general condition
which could be easily corrected by a few words from
high authority, to the enhancement of the popularity
of your Bureau of Internal Revenue. (The following
comments are from the letter addressed by Mr. Richards
to the Collector of Internal Revenue, 110 East 45th
Street, N.Y.C. -- Joseph T. Higgins.) I have your
letter of September 3 in which you advise me that
you received my V-1 Return of Victory Tax Withheld
for the period ending June 30, 1943, but that no re-
mittance was enclosed; and after calling my attention
to a statute imposing "severe civil and criminal
penalties for willful failure to pay over amounts with-
held for tax and declared by the statute to be trust funds,
conclude: 'Filing of suit is now under consideration".
This return was prepared by my secretary, and I had
supposed that she attended also to the drafting and
enclosure of a check for the amount stated to be due
and enclosed with the return. She evidently overlooked
this part of the transaction. # 4b * I am sorry the
money was not remitted when due. (Check enclosed.)
I wonder if the young person (for I assume it was &
youngster) who wrote that letter has any idea of the
harm he is doing, not only to the Treasury Department,
but to the Administration in general, and even to our
Federal Government by letters like that. I presume
it is a kind of form letter which is sent out to any
taxpayers who have been careless in forgetting to en-
close checks, and that it represents in its tone and
atmosphere the policy of your department in dealing
with taxpayers. # The letter assumes that I am a
crook, wilfully seeking to defraud the Government. It
refers to criminal penalties and threatens to enforce
them against me. As B. matter of fact and of common sense,
the presumption should be the other way. When a citizen
turns in a tax return showing him to be indebted to the
Government in 8. specified amount, and stating that he is
Regraded Unclassified
355
- 15 -
remitting that amount with the return, and you find
no check enclosed, the natural inference would be that
the omission was an inadvertence. The letter which
should go out should be a simple notification, courteous
in tone, advising the taxpayer of the absence of the
remittance and requesting him to send in the money
promptly. Then if he does not respond, it is time
enough to suspect that he may be a crook and write him
accordingly. # #
Anonymous - postmarked Paterson, N. J. If the New Dealers
take another 10% out of the working man's wages, they
are nothing but leeches. It is not the people's fault
that we are in this awful debacle of this bloody war all
over the world, it is the fault of the New Deal inter-
ventionists, and it is just to make the rich richer.
The commitments made by Mr. Roosevelt and his buddies
to Britain got us into this mess. (Signed) A Mother
With Boys Fighting in This War.
Annette V. Marshall, Otsego, Mich. I have just returned
home, after paying $3.00 to have some one make out the
new Federal income tax form for me (my nerves being in
such a state, worrying about our country being "thrown
to the dogs", or the British Empire), that I just
couldn't battle with its complexity myself -- my total
income for 1942 was $1,277.50 and for 1943 it will have
been $1,441.50. Out of this pittance I am forced (it's
not done willingly) to pay by the end of this year
$154.80 in Federal income taxes; $15.35 Michigan State
tax; $60.00 as a property tax on a house; 3% Michigan
sales tax; plus 10% luxury tax. # # th Only that I do not
care to embarrass relatives and friends, I would have
the spunk to refuse to pay such killing amounts and
would just let them "come and get me". # ## The whole
War from the exchanging of the ships for bases to the
present moment is & horrible sell-out of the American
people, and while I have never voted for Mr. Roosevelt,
I believe I will in 1944 (provided, of course, that he
doesn't die in the meantime -- I hear at the moment that
Regraded Unclassified
356
- 16 -
he isn't any too well -- ) in order that he may
finish what he started. Kindly keep this in mind when
you are fixing up next year's torture.
Linda Aslaug Lynneberg, N.Y.C. For the past four days
I have been reading the letter you sent me asking for
a declaration on the 15th of September or the 15th of
December, and I still don't know what to tell you. I'm
B. toy demonstrator and most of my business is done be-
tween December 15 and December 25. I'm paid on a per-
centage basis, so my wage depends on the amount of
business I produce. Since I receive no fixed wage, if
I fill out the declaration I'm liable to underestimate
my year's salary. I would then be liable to & penalty.
# Isn't it unconstitutional for the Government to
demand that I hazard incriminating myself? It is pos-
sible that I won't make enough to have to make a declara-
tion, but I don't know. I will receive a statement of
my income for 1943 about January 15, 1944, so I don't
see how I can make a correct statement on the 15th of
December, 1943, since most of my income will be earned
after that date. P.S. Vice President Wallace
suggests that every one should be free from worry about
B. job; maybe I'll take his advice and stop working.
Whenever I have a job, my worries begin.
John M. Phillips, Omaha, Nebraska. I am just mailing in
my income tax return and my thoughts turn naturally to
you, not in gratitude but in anguish. May I make some
suggestions that occur to me as a taxpayer? Could the
specific instructions of the work sheet be put in
Missouri River American next time? I have gone over
some of it again and again and still do not smell the
idea the writer was trying to convey from his mind to
mine. Remember as you prepare to lead us to the finan-
cial slaughtering pen again that some of us have already
had 8. raise in rates of twelve and one-half percent for
two years. Please desist from telling us what the
English do on taxes. They have a different system of
levying taxes and we pretty generally know it. We like
the English so please do not develop ill will toward
Regraded Unclassified
357
- 17 -
them. + # Talk about giving aid and comfort to the
enemy, we could lose the war while millions of us are
home toiling and fuming over the incomprehensibles of
the work sheet. I believe you are 8 good and upright
man. I am sure you do the best you can in an exceed-
ingly difficult post. I am not complaining, at least
I am trying to keep from complaining; I am not threaten-
ing; I am just asking that you show a little mercy to us
who are not financial wizards or CPA's.
Rev. Henry A. Walters, First Presbyterian Church,
Kimberly, Wisconsin. * # The confusion in your Depart-
ment is most disillusioning to multitudes of us. Last
January 10, in order to honestly cooperate in the pay-
ment of the Victory Tax, I applied to the Department of
Internal Revenue for full information concerning it.
Your Department was absolutely uninformed concerning
method of payment, etc. This was ten days after the
law had gone into effect. I feel sure you will agree
that this is a clear cut case of delinquency. Today
I have filed my 1943 tax statement, and I am informed
that I am fined $10.00 for delinquency in making Victory
Tax payment, and that if I do not make out the next in-
stallment on time (necessary statement is not even
available yet), I will be fined still more. I think
I speak in behalf of thousands of confused and busy
people when I beg that tolerance be used in exacting
of fines that have been caused, in part at least, by
your own Department. Please, for the sake of the nation,
streamline these confusing, overlapping tax returns and
get the printed material out on time.
Herbert J. Atkinson, South Sudbury, Mass. Perhaps you
would be interested in knowing just how this new income
tax law is working in an actual case. 4ir # We have
8.
small business, operated from home, on a back road in
the New England countryside. 48 # # This business was
started about ten years ago by myself and wife. At
first we produced our product and conducted the business
as B. sideline. The business grew until we needed some
one on the job full time, 50 we hired our first employee
Regraded Unclassified
358
- 18 -
and today we have twelve. The growth of our business
has been financed entirely from its profits, and you
know how & small growing business needs money. Each
year our income taxes have increased until last year,
1942, I was told that our books showed that we had made
sufficient profits to indicate that we owed an income
tax of about $7,300.00. This seemed like an impossible
amount, but we had 8 full year to pay it, and by June 15,
1943, half of our obligation had been liquidated. We
immediately began to deposit, in a special bank account,
$300.00 a week to take care of our new taxes. Imagine
my surprise when I was informed the other day that the
projected profit curve for our business for 1943 indi-
cated that our total income tax liability would amount
to somewhat over $22,000.00. On this we would get
credit for the payment we have made on the 1942 tax. But
the balance would have to be paid in two equal install-
ments within a 13-week period. This, in view of the fact
that the total we have taken out of the business for
personal living expenses for the first eight months of
1943 amounted to only $3,939.00. Today, I convinced &
banker that he should loan us enough to pay the install-
ment on our income tax due September 15. The borrowing
of money was a new experience, for as I have said, we
finance this business out of profits. A check will go
to you tomorrow for $9,610.80, and we have until Dec. 15
to pay back the loan and accumulate another $9,610.80 to
pay the next installment. It does not seem possible that
a business of our type can have even $400.00 a week taken
out of its working capital and still continue to exist.
But $400.00 a week won't pay back the loan in thirteen
weeks, before the next payment is due. It would take
almost $750.00 a week. If we had had a full year in
which to pay a full year's taxes, we feel that we could
arrange to struggle through. But with $750.00 a week
taken out of our slim assets, and the prospect of extra
payment due March 15th, to make up for the 1942 tax, the
situation looks hopeless. % #
T. B. Williams, San Marino, Calif. I wish to add my pro-
test to the present system of income tax, which was
recently adopted by Congress. I em 8. lawyer, a banker
Regraded Unclassified
359
- 19 -
and an experienced accountant. I therefore feel
qualified to talk with some understanding of the
problem. The present system is nothing but confusion,
and on every side I hear similar exclamations from my
friends and associates. Any system that applies to the
great mass of the public must be simplified if you ex-
pect to have reasonable compliance with that system. The
great mass of the public has little understanding of
accounting, and none of the law; and when the people are
confronted with complex regulations, couched in legal
language, they throw up their hands. As an experienced
business man I have read the series of directives on the
subject, issued in the last six or seven months, and I
chucked them in the corner in the spirit of confusion
and disgust. # # # Most people conscientiously try to
comply with all the "weasel" words in Government regu-
lations, but when those weasel words leave them in a
state of confusion, you can imagine what the political
repercussions will be. # # # Before it is too late,
I urge you to back-track and think in terms of the
administrative and practical problems as well as in
terms of technical and mathematical formulas. *
Regraded Unclassified
360
- 20 -
Comments on Speeches
C. Reutel, Chicago, Ill. Your address last evening is
not encouraging. It certainly won't build up morale
and encourage buying Bonds, when such a drive through
Italy would mean death (staggering losses) to great
numbers of our sons. We mothers are opposed to this
useless invasion. We desire peace negotiations. Where
there is a will there is a way.
Alberta F. Matthews, Poughkeepsie, N.Y. I have been
ill for a long time and it is very difficult for me to
write, but I am so incensed by your remarks about the
"foolish optimism" of the people regarding the War
that I feel impelled to remind you of a few things you
seem to have overlooked. I have talked to many about
the progress of the War and have found no one who has
not 8. keen sense of the seriousness of the situation
or is unwilling to make any sacrifice necessary to the
winning of the war. There seems to be, however, no
enthusiasm as to the way things are being handled on the
home front, which, after all, is a very vital part of
the war. Don't you think you would have presented a
much more honest picture if beside the expenditures for
the conquest of Sicily you had given a list of the waste-
ful expenditures made by the Government? * # # Don't you
think it is time you turned a critical eye on your own
political family and insisted that economy be made the
order of the day, instead of assuming that money grows
on trees? The people are all right; they have always
come up to the scratch and always will, but they are sick
and tired of being scolded and threatened by Government
Officials. ***
Emil B. Vietheer, Hoboken, N. J. I've read your state-
ment. It is just wonderful. That's the kind of state-
ment that can win the War for us. If every reader who
had read it will follow your lines closely, the War can
be accomplished and won in a shorter time. # # # Lots
of writers are doing a lot of damage with their foolish
Regraded Unclassified
361
- 21 -
stories; better not to have them. Real facts of the
truth will give our boys more courage to fight than
to read B. lot of praise. #
%
Dr. S. J. McGraw, El Dorado, Arkansas. I just read your
account of our losses in Sicily and Italy, that's bad,
Also your warning to the American people not to become
overconfident, that's good. You admonish us to save and
buy Bonds, which is also good. But did you ever stop to
think how much money you could save if you were to dis-
miss the three hundred thousand useless employees Senator
Byrd tells us about, who are on the Federal payroll? We
could buy Bonds with much better grace if we knew our
money was being used economically for the boys at the
front and not being sucked up by political vampires here
at home.
L. J. Roach, Victory Hotel, Burbank, Calif. Your recent
radio talk (shall we call it an explosion?) is the most
refreshing thing that has come out of Washington in
years. Since January, 1933, F.D.R. and Queen Eleanor
have spread the idea that the average mentality of the
people of the United States is about 8 years; and thou-
sands of Federal employees firmly believe it, and treat
everyone accordingly. I am a Veteran of the Spanish War
and Philippine Insurrection, age 65. I work 48 hours a
week in an aircraft factory. Let us have more plain talk
and less scheming to make elective offices perpetual.
Anonymous -- postmarked Kalispell, Mont. What's the
matter with your eyes that you can't see the sign posts
so close to you? Optimism is winning this War and you
can't stop it.
#
W. A. Taylor, Santa Ana, Calif. I have read your
description (in connection with the War Bond sale
campaign) of the losses of materials in the Sicilian
campaign -- all of which is regretable, but an unavoid-
able accompaniment of War. The press has, however,
Regraded Unclassified
362
- 22 -
within the past day or two, given particulars concern-
ing an enterprise which is neither necessary nor in-
evitable, and which has, to my certain knowledge,
aroused much indignation. I refer to the "Department
of Pronunciation", headed by a man at $8,000 a year, with
an Assistant at $5,000 per year, and with 110 employees,
which, it is asserted, are to be increased shortly to
about 25 or 30 more. It is further stated that inquiry
of several Congressmen fails to locate any member of
Congress who knows anything about any authority for the
existence of such a Department or any appropriation
for its support. # # & Indeed, I have just subscribed
for more War Bonds for myself, and for a trust which
I administer, and I am & peaceable man; but if this
story proves to be true, and the Government is wasting
our money for such purposes as above-indicated, I will
want to fight here at home!
Henry L. Exstein, N.Y.C. 42 # # You of course received
many letters of thanks from radio listeners about your
"Monticello" program. It was SO well done and interest-
ing, free from commercial, and with it all so dignified,
felt it incumbent upon me to say many thanks for keeping
alive the spirit of that wonderful patriot.
Regraded Unclassified
363
Copy of this letter and the attachment
returned to Mrs. McHugh for Mr. Paul.
Att: "A New System For the Taxation of
Weekly Wage Earners", presented to
Parliament by the Financial Secretary
to the Treasury, Sept. 1943.
364
what
Your Reference
TREASURY CHAMBERS,
GREAT GEORGE STREET,
Treasury Reference
LONDON, 8.W.1.
24th September, 1943.
bean M2 Morgenthan,
The message from you which the Prime Minister read
out in the House of Commons on Wednesday was, as you will
understand, especially valued by all of us at the Treasury
who worked under Kingsley Wood, indicating as it did that
you on the other side of the Atlantic shared in the sudden
shock and loss which we all sustained a few days ago. It
came at a particularly sad moment, because the Chancello:
had on the very day of his death intended launching in
Parliament his new "pay-as-you-earn" Income Tax scheme.
I know that he had intended to send you a copy of the
proposals and that it would have been his wish that I
should now do so on his behalf. I am therefore sending
with this letter a copy of the White Paper which was
presented to Parliament and which gives full details of
the scheme.
There are naturally wide differences of detail
between the Income Tax systems in operation in our two
countries, and I think you will be interested to-see how
the Chancellor of the Exchequer had proposed to apply in
this country a principle which has already been adopted
by you in the United States. I think he would have wished
me to tell you, in particular, that before embarking on
this plan he had himself given very close and prolonged
study to all the details of the American scheme now in
force. He would have been the first to acknowledge what he
had learnt in this way from the pioneer work on the
subject carried out in the United States.
OBV BOSS
Toms sincerely
(TURBETT
Raeph assheton
EAST 8.700
% activity
P.S. Since signing this letter
Sir John Anderson has been appointed
Henry Mor
Secretary the
Chancellor of the Exchequer, and he
United States Treasury.
will, I know, wish to write to you
himself very shortly.
365
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Consulate General, Calcutta, India
DATE:
September 24, 1943, 10 a.m.
NO.:
1230
PRIORITY.
SECTION TWO, re: Silver.
1. 100,000,000 ounces of silver could effectively
be utilized by the Government of India if it were lend-
leased to them now:
(a) The intention, according to a statement made by
Mr. Raisman, is to set up a "mass of manouver",
selling only to keep the price down and to
intimidate speculators; this amount is justified
by the theory that the bigger the stick the less the
need for wielding it. The Indian Government wishes
to keep the price down because of the following
reasons: (1) The public regards bullion prices 80
an economic barometer; (11) the rupse coin might be
melted down should the price go beyond the danger
point of 150 rupees per hundred tolas.
(b) It is the belief of the Governor of the Reserve Bank
(Deshmukh) that silver should be used for selling
and - if necessary - for additional minting. The
price of silver is now around rupees 120 per hundred
tolas in Bombay; however, the market is very thin
with the supply on hand being only 800 bars and the
daily off take amounts to between 10 and 50 bare
(in the past it was often over 100 and sometimes as
much as 350 bars). Consequently, the silver market
in Bombay is highly sensitive and speculative.
Should it be true - as officials here claim it is -
that the peasants of India have higher money incomes
with few consumer goods available for purchase, there
will be a persistent demand for gold by the wealthier
primary producers and for silver by the poorer primary
producers; the seasonal peak for both will be from
December to April. Hence substantial quantities of
silver should be saleable without pushing the price
below one rupee per tola, in which case 1,000,000
ounces would yield approximately twenty-seven lakhs-
minting yielding double. Consequently, should
4,000,000 ounces of silver be sold per month at
one rupee per tola, there could be a reduction in the
inflationary gap by over one crore.
(e)
Regraded Unclassified
366
- 2 -
(c) While point (b) above is more convincing and perhaps
franker than point (a), under point (a) substantial
amounts would have to be sold in order to keep the
price down.
2. or course, the case for minting silver is familiar
to you. It is claimed by officials here that India could
easily absorb 8,000,000 ounces per month for coinage alone.
The officials also emphasized that the minting of silver
would help relieve the immediate food problem by inducing
the peasants to dishoard food, However, the net effect
of dishoarding by the peasants might be concentration of
food into large hoards unless effective anti-hoarding
measures are adopted.
S. It might be worth considering the one suggestion
which was made to me in an informal manner; that is, that
the Treasury provide silver to India to the extent that
India advances rupees for USAF expenditures, which now
total one crore per month. The Government of India would
undoubtedly, for this purpose, prefer silver to gold.
PATTON
Regraded Unclassified
SECRETARY OFFICE TREASURY
1943 SEP PM 2 37
TREASURY DEPARTMENT
F.S. SECRET
COPY NO
BRITISH MOST SECRET
OPTEL No. 315.
Information received up to 10 a.m. 24th
September, 1943,
1, NAVAL.
Mediterranean, 21st/22nd. M.T.B.'s sank two
ships and damaged two others in Valona Harbour (Altaria).
One M.T.B. danaged by shore batteries but reached harbour
No casualties,
22nd/23rd. One of H.M. destroyers sank a
Westbound ship off Rhodes and damaged an escort vessel.
23rd. Polish S/M DZIK' sank three Siebel
Ferries off Bastia Where enemy evacuation continues by sea
and air. Enemy activity against shipping in the Sa erno
Area has been on reduced scale.
Atlantic. On Morning 23rd, two further
attacks by U-boats on outbound convoy South of Greenland,
A Canadian frigate was sunk,
During 22nd/23rd escort vessel and Canadian
Aircraft had sone successes.
2, MILITARY.
Italy. Enemy continues withdrawal Northwards
pivotting on Salerno, Considerable ninefields have been
encountered, Fieldworks are in preparation South of
River Volturno.
Fifth army. The Sorrento Peninsula is largely
in our hands. U.K. formations are attacking in Salerno
Area and making slow but steady progress against positions.
U.S. forces continue to advance opposed by rearguards,
Eighth Army. British troops in contact with
the enemy at Spinazzola (25 miles Northeast of Potenza),
On renainder of front forces continue to concentrate with
patrols moving forward. A strong force has been directed
against eneay's position at Altanura.
Russia, Russian attacks continue and
captures include Pochinok (35 miles South by East of
Smolensk), Unecha (1) miles Forth of Starodub and Poltava).
3. AIR OPERATIONS.
Western Front, 22nd/23rd. 2358 tons dropped
in Hanover Area where first reconnaissances show that main
weight of attack fell to South East of City.
-1-
Regraded Unclassified
268
23rd. 270 tons dropped in two attacks by
Fortresses (B.17) on Port Area Nantes where main target
was U-boat supply ship. 4 ships and floating dock damaged
in first attack, Heavy and medium bombers dropped 515
tons on 5 airfields in Northern France. Fighter bombers
made small scale attacks on 4 other airfields and on
Lock Gates at Wemeldinge (Dutch Islands North West Antwerp).
Casualties 23rd. Enemy by bombers. 11 5 6
By Fighters. 1344. Ours 3 Fortresses (B.17) 1 Fighter
bomber and 5 Fighters missing. 1 Fortress (B.17) crashed
in U.K.
23rd/24th. Aircraft despatched. Mannheim 635
(32 missing), Darmstadt 25 Aachen 6, Leaflets 28 (1 missing
Intruders 27 (4 enemy aircraft destroyed). At Mannhein
preliminary reports indicate good attack in clear weather.
9 enemy aircraft operated over East Coast. No damage or
casualties reported.
Italy and Corsica, Bastia, Leghorn and Laples
attacked by 240 heavy and medium bombers on 21st and 114
medium and light bombers night 21st/22nd.
22nd, Objectives in Naples Area shipping
near Corsica attacked by 209 medium bombers. From these
operations 7 Allied aircraft missing and 2 more crashed.
Greece and Dodecanese. 22nd. Liberators
(B.24) dropped 100 tons on airfields at Maritza (Rhodes)
and Eleusis (Athens).
Regraded Unclassified