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    "title": "Volume 679, November 22 – November 24, 1943",
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        "Henry Morgenthau, Jr. Papers",
        "Diaries of Henry Morgenthau, Jr."
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    "ocrText": "DIARY\nBook 679\nNovember 22-24, 1943\n- B -\nBook Page\nBrasil\nSee Latin America\nBudget, Bureau of\nSee Revenue Revision: 1943 Revenue Bill\nBusiness Conditions\nHaas memorandum on situation, week ending November 20,\n1943 - 11/22/43\n679\n9\n- C -\nClapper, Raymond\nSee Revenue Revision: 1943 Revenue Bill\nCuba\nSee Latin America\nCurrency Stabilization\nSee Post-War Planning\n- 7 -\nFinancing, Government\n7/8% Certificates of Indebtedness, Series G-1944,\noffered in exchange for Certificates, Series E-1943,\nmaturing December 1, 1943 - 11/22/43\n5\nWar Savings Bonds:\n3rd War Loan Drive: White House contributions -\n11/23/43\n124\n4th War Loan Drive: Announcement - 11/22/43\n1\na) Slogan: \"Let's All Back the Attack\" - 11/30/43:\nSee Book 681, page 227\nMerchant Seamen: Plans for sales of bonds discussed in\nletter to Knox - 11/24/43\n258\nForeign Funds Control\nLazard Freres: Completion of case reported by Paul;\nSchubart (William H.), Bank of Manhattan, to be offered\npartnership - 11/24/43\n261\na) Resume for FDR - 12/2/43: See Book 682, page 158\nFrance\nSee Occupied Territories\n- G -\nGold\nSee Latin America: Brasil: Cuba\n- L -\nLatin America\nBrasil: Stabilization Agreement - amendment to increase\namount of gold to be sold to a maximum of $300 million\nreported by White - 11/22/43\n262\nRegraded Unclassified\n- L - - (Continued)\nBook Page\nLatin America (Continued)\nCuba: Sale of gold discussed in correspondence between\nAmbassador and Treasury - 11/24/43\n679\n266\nLawrence, David\nSee Revenue Revision: 1943 Revenue Bill\nLazard Freres\nSee Foreign Funds Control\nLend-Lease\nU.S.S.R.: Fourth monthly report, ending October 31, 1943,\nunder Third Soviet Protocol - 11/22/43\n31\nUnited Kingdom: Aircraft despatched, weeks ending\nNovember 9 and 16 - British Air Commission report -\n11/22/43\n45\nLindley, Ernest K.\nSee Revenue Revision: 1943 Revenue Bill\nLippmann, Walter\nSee Revenue Revision: 1943 Revenue Bill\n- M -\nMerchant Seamen\nSee Financing, Government: War Savings Bonds\n- N -\nNathan, Robert\nSee Revenue Revision: 1943 Revenue Bill\nNavy Department\nSee Revenue Revision: 1943 Revenue Bill\nNelson, Godfrey (New York Times)\nSee Revenue Revision: 1943 Revenue Bill\nNew York Times\nSee Revenue Revision: 1943 Revenue Bill (Godfrey Nelson\narticle)\n- 0 -\nOccupied Territories\nFrench Operations: Type of currency to be used discussed\nin letter to State Department - 11/24/43\n268\na) Withdrawal of this letter suggested by\nWar Department - 11/27/43: See Book 680, page 276\nb) Review of entire invasion currency situation by\nWhite - 12/2/43: Book 682. page 160\n1) \"Four Freedoms\" on currency for Germany\ndiscussed by White - 12/13/43: Book 683,\npage 116\nRegraded Unclassified\n- P -\nBook Page\nPost-War Planning\nCurrency Stabilisation: Press release giving tentative\nproposal for United Nations Bank for Reconstruction\nand development - 11/23/43\n679\n139\na) Copies to various Finance Ministers\n157\n1) Cuba reply - 12/15/43: See Book 684, page 201\n2) Peru #\nIII\n: Book 684, page 202\n3) Venezuela reply - 12/16/43: Book 684, page 336\n4) Canada reply - 12/16/43: Book 684, page 337\n5) El Salvador reply - 12/21/43: Book 686, page 106\n6) Union of South Africa reply - 12/28/43: Book 687,\n- R -\npage 68\nRevenue Revision\n1943 Revenue Bill\nConference of Treasury group on HMJr's second appearance\nbefore House Ways and Means Committee - 11/23/43\n52,96,200\na) Rebuttal of criticiem discussed; HMJr dissatisfied\nwith what has been done to date\nb) War Department turn-back of $13 billion discussed\nby HMJr and Patterson - 11/23/43\n56\n1) Conversation with Budget Bureau (Coy) reported\nby Bell\n83,109\n2) Discussion of Budget's action by Treasury\ngroup - 11/27/43: See Book 680, page 109\n3) Actual Army and Navy budgetary positions -\n11/29/43: Book 681, page 186\nc) Forrestal's office and HMJr discuss similar\nturn-back for Navy\n63\nd) Nathan (Robert) to be asked to help, if possible\n69\n1) White-Nathan conversation - 12/1/43:\nBook 682, page 72\na) \"Who's Who\": Book 682, page 73\n2) Nathan memorandum: War production program\nand the economic outlook - 12/15/43: Book 684,\npage 181\nHaae chart on War Production Board Munitions\nProduction Index and war expenditures monthly.\nJuly 1940 to date: Book 684, page 318\ne) HMJr: \"Trying to please too many people fault of\nlast tax bill; if aim is to please only myself,\nthis bill may be better\"\n74\nf) Sales tax exemptions discussed\n76\ng) Luncheon conference with Democratic members of\nFinance Committee planned; Vinson invited\n116\n1) Actual conference - 11/24/43\n238,242\nh) Lippmann, Lindley, Clapper, etc., consulted by\nGaston\n121,245\n1) Sales tax discussed\n221\na) Chart\n235\nJ) Congressional Record digest\n248\nk) David Lawrence discusses his idea of tax bill\nwith Gaston - 11/26/43: Book 680, page 6\n1) Paul Wooton (McGraw-Hill publications, including\nBusiness Week, representative) discusses tax bill\nwith Gaston - 11/26/43: Book 680, page 7\n- R - (Continued)\nBook 679\nRevenue Revision (Continued)\n1943 Revenue Bill (Continued)\nNew York Times article by Godfrey Nelson \"United States\nTaxation Goal Overtops British\" explained in Blough\nmemorandum - 11/26/43: See Book 680, page 8\nConference of Treasury group - 11/27/43: Book 680,\npage 109\na) Reduction in estimates of expenditures from the\nAugust Budget summation discussed: Book 680, page 113\n(See Budget release, 11/28/43 - page 150)\n1) HMJr discusses how to present new budget figures\nto Congress: Book 680, page 115\na) War taxes to be reiterated over and over\nb) $41 billion in revenue on a $100 billion\nbudget means $9 billion in taxes - Gaston's\nsuggested approach\n2) Haas memorandum based on budget revision:\n\"Revised Outlook on Excess Income of Individuals\nfor the Fiscal Year 1944\" - 11/27/43: Book 680,\npage 153\nFor statement by HMJr and discussion thereof see Book 680:\nStatements by HMJr\n- S -\nSchubart, William H. (Bank of Manhattan)\nSee Foreign Funds Control: Lazard Freres\nSeamen, Merchant\nSee Financing, Government: War Savings Bonds\n- T -\nTaxation\nSee Revenue Revision\n- U -\nU.S.S.R.\nSee Lend-Lease\n- V -\nWar Department\nSee Revenue Revision: 1943 Revenue Bill\nWar Savings Bonds\nSee Financing, Government\nWhite House\nSee Financing, Government: War Savings Bonds\n(3rd War Loan Drive)\nWooton, Paul\nSee Revenue Revision: 1943 Revenue Bill\n1\nTREASURY DEPARTMENT\nWeshington\nFOR RELEASE, MORNING NEWSPAPERS,\nPress Service\nMonday, November 22, 1943.\nNo. 39-62\nSecretary Morgenthau announced today that the Fourth \"Yar Loan Drive\nwould start January 18, and would run until February 15, 1944.\nThe goal has been set at $14,000,000,000. Five and one-half billion\ndollars of this amount is to be raised directly from individuals.\nThe State \"ar Finance Committees will have the task of raising this\n$14,000,000,000. These committees are being strengthened and expanded to\nmeet the necessity of increasing the number of people who are buying Var\nBonds. Millions of volunteer salesmen are now ready to carry this campaign\nfor funds to every individual investor in homes and in plants throughout the\nnation.\nThe major emphasis throughout the entire period of the Drive - January 18\nto February 15 - will be placed on the quota of $5,500,000,000 for individuals.\nDuring the period from January 18 to February 1 only sales to individuals will\nbe reported by the Treasury. The reporting of sales to individuals will be\nsupplemented starting February 1 with reports of sales to other non-banking\ninvestors - the quota for which is $8,500,000,000. This will not preclude\nthe acceptance of subscriptions from other non-banking investors at any time\nduring the Drive.\nAll subscriptions for Sevings Bonds and Savings Notes received at the\nFederal Reserve Banke or at the Treasury of the United States between January 1\nand February 29, 1944, will be credited to the Drive.\nThe goal and the type of securities to be offered were determined by the\nTreasury after consultation with the chairmen of the State War Finance Commit-\ntees, officials of the Federal Reserve System, the American Bankers Association\nand other investment authorities.\nThe securities to be sold under the direction of the War Finance Commit-\ntees will consist of:\nSeries E Savings Bonds\nSeries F and G Savings Bonds\nSeries C Savings Notes\n2-1/2% Bonds of 1965-70\n2-1/19 Bonds of 1956-59\n7/8% Certificate of Indebtedness\nIn view of the fact that many commercial banks accept time deposits and\nperform in their own communities the same functions as those performed by\nother savings institutions, the Treasury will permit such commercial banks\nRegraded Unclassified\n2\n- 2 -\nto make a limited investment of their time deposits only in the 2-1/4% and\n2-1/2% Bonds under a formula to be announced later,\nThe 2-1/2% Bond will be dated February 1, 1944, due March 15, 1970,\ncallable March 15, 1965, and will be issued in coupon or registered form at\nthe option of the buyers, in denominations from $500 to $1,000,000. Com-\nmercial banks, which are defined for this purpose as banks accepting demand\ndeposits, will not be permitted to own these bonds until February 1, 1954,\nexcept for the limited investment of time deposits.\nThe 2-1/4% Bond will be dated February 1, 1944, due Sept. 15, 1959,\ncallable Sept. 15, 1956, and will be issued in coupon or registered form at\nthe option of the buyers, in denominations of 3500 to $1,000,000. Commercial\nbanks, which are defined for this purpose as banks accepting demand deposits,\nwill not be permitted to own these bonds until September 15, 1946, except for\nthe limited investment of time deposits.\nThe 7/8% Certificate of Indebtedness will be dated February 1, 1944,\ndue February 1, 1945, and will be issued in denominations of $1,000 to\n$1,000,000 and in coupon form only.\nThe Treasury will request that, until after February 15, 1944, com-\nmercial banks not buy the 7/8% Certificates of Indebtedness offered, and\nthat the market not trade in any of the marketable securities fered in\nthe Drive.\nTo avoid unnecessary transfers of funds from one locality to another,\nthe Treasury requests that all subscriptions by corporations and firms be\nentered and paid for through the banking institutions where funds are located.\nThis request is made to prevent disturbance to the money market and the bank-\ning situstion. The Treasury will undertake to see that statistical credit is\ngiven to any locality for such subscriptions that the corporations and firms\nmay request; except subscriptions from insurance companies will be credited\nto the State of the home office as in the past.\nIn order to help in achieving its objective of selling as many securi-\nties as possible outside of the banking system, the Treasury requests the\ncooperation of all banking institutions in declining to make speculative\nloans for the purchase of Government securities. The Treasury is in favor\nof the banks making loans to facilitate permonent investment in Government\nsecurities provided such loans are made in accord with the joint statement\nissued by the National and State Bank Supervisory Authorities on\nNovember 23, 1942.\nRegraded Unclassified\n3\nNevember 22, 1943.\nMr. Charles B. Dulean, Sr.\nVice President and General Manager\nThe Hecht Company\nWashington, D. C.\nDear Mr. Dulean:\nYour Christmas War Bond windows, dramatising as they do the\nway our fighting RED will be spending their Christmas this year,\nare & nost unusual and valuable contribution not only to the\npeople of Washington, but to all America.\nThese thres-dimensional window displays cannot help but bring\nhome to all who view them the true spirit of Christmas, 1943 - a\nspirit of understanding and communion with our boys; a desire to\nshare their Christmas here on the home front.\nFrom my - personal observation in the actual battle sones,\nI can attest to the securacy of the heart-stirring scenes you\nportray.\nIt 10 my hope that just as the Hecht Company helped load the\nmy with its inspiring presentation of the \"Four Freedoms\" display\nwhich later empt the Nation, no this Christmas War Bond display\nwill serve as a model. to retailers all across the land. For I\nbelieve, with you, that the best pedetable expression of the will\nto share this Christmas with our boys lies in buying and giving\nthe one sift which will meet surely and speedily bring these boys\nhome - Mar Info.\nSincerely yours,\n(Signed) Henry Morgenthau, Jr.\nRegraded Unclassified\n4\nN\nHEADQUARTERS SEVENTH ARMY\nAPO # 758\nc/o Postmaster, N.Y.C.\n22 November, 1943\nMy dear Mr. Secretary:\nIn consonance with your wishes we sent you 85 crates of\nassorted property and a large number of guns, tanks, etc., totaling\nin all some 20 vehicles.\nOwing to conditions beyond our control this shipment did\nnot leave Sicily until about the 14th of November. I therefore fear\nthat it may be a case of \"love's labor lost, but in any event we did\nour best and trust that if you cannot use this stuff this time, it may\nbe of value for a subsequent drive.\nWith expressions of warm personal regards, I am,\nVery respectfully,\nG. S. PATTON, JR.,\nLieut. General, U. S. Army,\nCommanding.\nThe Honorable Henry Morgenthau, Jr.\nSecretary of the Treasury\nWashington, D. C.\nU. S. A.\nRegraded Unclassified\nUNITED STATES OF AMERICA\n7/8 PERCENT TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES G-1944\nDated and bearing interest from December 1, 1943\nDue December 1, 1944\n1943\nTREASURY DEPARTMENT,\nDepartment Circular No. 727\nOffice of the Secretary,\nWashington, November 22, 1943.\nFiscal Service\nBureau of the Public Debt\nI. OFFERING OF CERTIFICATES\n1. The Secretary of the Treasury, pursuant to the authority of the Second\nLiberty Bond Act, as amended, invites subscriptions, at par, from the people of\nthe United States for certificates of indebtedness of the United States, desig-\nnated 7/8 percent Treasury Certificates of Indebtedness of Series G-1944, in\nexchange for Treasury Certificates of Indebtedness of Series E-1943, maturing\nDecember 1, 1943.\nII. DESCRIPTION OF CERTIFICATES\n1. The certificates will be dated December 1, 1943, and will bear interest\nfrom that date at the rate of 7/8 percent per annum, payable semianmually on\nJune 1 and December 1, 1944. They will mature December 1, 1944, and will not\nbe subject to call for redemption prior to maturity.\n2. The income derived from the certificates shall be subject to all\nFederal taxes, now or hereafter imposed. The certificates shall be subject\nto estate, inheritance, gift or other excise taxes, whether Federal or State,\nJut shall be exampt from all taxation now or hereafter imposed on the principal\nor interest thereof by any State, or any of the possessions of the United States,\ner by any local taxing authority.\n3. The certificates will be acceptable to secure deposits of public moneys.\nwill not be acceptable in payment of taxes.\nRegraded Unclassified\n- 2 -\n4. Bearer certificates with interest coupons attached will be issued in\ndenominations of $1,000, $5,000, $10,000, $100,000 and $1,000,000. The certifi-\ncates will not be issued in registered form.\n5. The certificates will be subject to the general regulations of the\nTreasury Department, now or hereafter prescribed, governing United States\ncertificates.\nIII. SUBSCRIPTION AND ALLOTMENT\n1. Subscriptions will be received at the Federal Reserve Banks and Branches\nand at the Treasury Department, Washington. Banking institutions generally may\nsubmit subscriptions for account of customers, but only the Federal Reserve\nBanks and the Treasury Department are authorized to act as official agencies.\nOthers than banking institutions will not be permitted to enter subscriptions\nexcept for their own account.\n2. The Secretary of the Treasury reserves the right to reject any sub-\nscription, in whole or in part, to allot less than the amount of certificates\napplied for, and to close the books as to any or all subscriptions at any time\nwithout notice; and any action he may take in these respects shall be final.\nSubject to these reservations, all subscriptions will be allotted in full.\nAllotment notices will be sent out promptly upon allotment.\nIV. PAYMENT\n1. Payment at par for certificates allotted hereunder must be made on\nor before December 1, 1943, or on later allotment, and may be made only in\nTreasury Certificates of Indebtedness of Series E-1943, maturing December 1,\n1943, which will be accepted at par, and should accompany the subscription.\nRegraded Unclassified\n- 3 -\nV. GENERAL PROVISIONS\n1. As fiscal agents of the United States, Federal Reserve Banks are\nauthorized and requested to receive subscriptions, to make allotments on the\nbasic and up to the amounts indicated by the Secretary of the Treasury to the\nFederal Recerve Banks of the respective districts, to issue allotment notices,\nto receive payment for certificates allotted, to make delivery of certificates\non full-paid subscriptions allotted, and they may issue interim receipts\npending delivery of the definitive certificates.\n2. The Secretary of the Treasury may at any time, or from time to time,\nprescribe supplemental or amendatory rules and regulations governing the\noffering, which will be comminicated promptly to the Federal Reserve Banks.\nWinttan HENRY MORGENTHAU, JR.,\nSecretary of the Treasury.\nRegraded Unclassified\n8\nUNITED STATES OF AMERICA\n3/4 PERCENT TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES G-1944\nDated and bearing interest from December 1, 1943\nDue December 1, 1944\n1943\nTREASURY DEPARTMENT,\nDepartment Circular No. 727\nOFFICE OF THE SECRETARY,\nFiscal Service\nBoreau of the Public Debt\nWashington, November 22, 1943.\nI. OFFERING OF CERTIFICATES\n1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty Bond Act,\nas amended, invites subscriptions, at par, from the people of the United States for certificates of\nindebtedness of the United States, designated ⁷/₈ percent Treasury Certificates of Indebtedness of\nSeries G-1944, in exchange for Treasury Certificates of Indebtedness of Series E-1943, maturing\nDecember 1, 1943.\nIL DESCRIPTION OF CERTIFICATES\n1. The certificates will be dated December 1, 1943, and will bear interest from that date at the\nrate of ⁷/₈ percent per annum, payable semiannually on June 1 and December 1, 1944. They will\nmature December 1, 1944, and will not be subject to call for redemption prior to maturity.\n2. The income derived from the certificates shall be subject to all Federal taxes, now or here-\nafter imposed. The certificates shall be subject to estate, inheritance, gift or other excise taxes,\nwhether Federal or State, but shall be exempt from all taxation now or hereafter imposed on the\nprincipal or interest thereof by any State, or any of the possessions of the United States, or by any\nlocal taxing authority.\n3. The certificates will be acceptable to secure deposits of public moneys. They will not be\nacceptable in payment of taxes.\n4. Bearer certificates with interest coupons attached will be issued in denominations of $1,000,\n$5,000, $10,000, $100,000 and $1,000,000. The certificates will not be issued in registered form.\n5. The certificates will be subject to the general regulations of the Treasury Department, now\nor hereafter prescribed, governing United States certificates.\nIII. SUBSCRIPTION AND ALLOTMENT\n1. Subscriptions will be received at the Federal Reserve Banks and Branches and at the Treas-\nury Department, Washington. Banking institutions generally may submit subscriptions for account\nof customers, but only the Federal Reserve Banks and the Treasury Department are authorized to\nact as official agencies. Others than banking institutions will not be permitted to enter subscriptions\nexcept for their own account.\n2. The Secretary of the Treasury reserves the right to reject any subscription, in whole or in\npart, to allot less than the amount of certificates applied for, and to close the books as to any or all\nsubscriptions at any time without notice; and any action he may take in these respects shall be final.\nSubject to these reservations, all subscriptions will be allotted in full. Allotment notices will be\nsent out prompty upon allotment.\nIV. PAYMENT\n1. Payment at par for certificates allotted hereunder must be made on or before December 1,\n1943, or on later allotment, and may be made only in Treasury Certificates of Indebtedness of\nSeries E-1943, maturing December 1, 1943, which will be accepted at par, and should accompany the\nsubscription.\nRegraded Unclassified\nV. GENERAL PROVISIONS\n1. As fiscal agents of the United States, Federal Reserve Banks are authorized and requested\nto receive subscriptions, to make allotments on the basis and up to the amounts indicated by the Sec-\nretary of the Treasury to the Federal Reserve Banks of the respective districts, to issue allotment\nnotices, to receive payment for certificates allotted, to make delivery of certificates on full-paid sub-\nscriptions allotted, and they may issue interim receipts pending delivery of the definitive certificates.\n2. The Secretary of the Treasury may at any time, or from time to time, prescribe supplemental\nor amendatory rules and regulations governing the offering, which will be communicated promptly\nto the Federal Reserve Banks.\nHENRY MORGENTHAU, JR.,\nSecretary of the Treasury.\n(Filed with the Division of the Federal Register, Nov. 23, 1943)\ne. 1. GOVERNMENT PRINTING OFFICE 561225\n9\nTREASURY DEPARTMENT\nINTER OFFICE COMMUNICATION\nCONFIDENTIAL\nDATENOV. 22, 1943\nTO\nFROM\nMr. Haas\nSecretary A Morgenthau\nSubject:\nThe Business Situation,\nWeek ending November 20, 1943.\nSummary\nCommodity prices: In the face of substantial declines in stock\nprices since the beginning of the month, commodity prices have\nfailed to show corresponding weakness. Featured by a rise in\nwheat prices, the Dow-Jones index of commodity futures last\nweek rose to a new high since compilation of the index was\nbegun in 1933.\nWheat flour subsidy: A subsidy to wheat flour millers was\nannounced last week as a measure to relieve the squeeze on\nmillers resulting from the fixed ceilings on flour prices and\nthe rising prices of wheat. Hard wheat prices are approaching\nparity and the OPA 18 expected to impose a price ceiling soon\nat 100 percent of parity.\nHeavy hog marketings: Steps were taken last week to prevent the\nrecord-breaking spring pig crop from glutting hog markets and\nfurther depressing prices. Official price supports were ex-\ntended to all hog markets, the ration value of pork was\nreduced, and the ban on farm sales of pork was lifted for\n90 days.\nFarm land boom: With the rise in farm land values averaging more\nthan 1 percent a month during the past year, the Secretary of\nAgriculture warned last week that immediate curbs are necessary\nto prevent the catastrophe which followed the land boom of the\nfirst World War. He suggested that a resale capital gains tax\nbe instituted to check the inflation in land values.\nCivilian goods: As a result of an easing in steel supplies the\nOffice of Civilian Requirements is projecting programs for the\nproduction of electric irons, washing machines and refrigerators\nfor civilian use in 1944. The WPB has lifted all restrictions\non the use of wool for clothing, draperies and upholstery\nfabrics,\nRetail trade: Department store sales in the week ended November 13\nrose to a new high for the year and were 14 percent above the\ncorresponding week in 1942. Total retail inventories (in\ndollar value) rose steadily in the third quarter, but at the\nend of September they were still 15 percent below year-earlier\nlevels.\nRegraded Unclassified\n10\n- 2 -\nStock and commodity prices strengthen\nAfter declining to a new recent low at mid-week, stock\nprices strengthened noticeably near the end of last week, and\nat the close on Saturday the Dow-Jones average of 65 stocks\nwas about 1 percent higher than a week earlier. Numerous\nfavorable year-end dividend actions, and the announcement\nthat $13 billions in Army appropriations probably would be\nsaved in the current fiscal year, were reported to be among\nthe factors causing prices to strengthen.\nIndustrial stock prices in London rallied noticeably last\nweek, thus reducing the net decline since the beginning of the\nmonth to very moderate proportions, in contrast to the rather\nsizable decline that has occurred in New York. (See Chart 1.)\nThis may be due in part to the fact that the New York market\nhas had to absorb some of the usual year-end tax selling,\nwhereas the London market has been free of this influence.\nIn connection with the weakness in stock prices at\nNew York in the first half of this month, it 1s interesting\nto note that corresponding weakness failed to develop in\ncommodity prices, although brief sell-offs did occur in some\ncommodities, such as cotton. Aided by subsidy developments,\nwheat prices have been strong, and largely as a result of\nthis factor the Dow-Jones index of commodity futures last\nweek rose to a new high since compilation of the index was\nbegun in 1933.\nBasic commodity prices slightly higher\nThe BLS index of 28 basic commodities moved slightly higher\nlast week, but it continues below the peak level reached near the\nend of September. (See Chart 2.) With hard wheat prices below\nparity, the announcement of the wheat flour subsidy, together\nwith expectations of a price ceiling on all wheat at 100 per-\ncent of parity, tended to buoy wheat prices, which rose 2% cents\nin the week. While barley prices were fractionally higher,\nfears that a price ceiling would be imposed now that the price\nof barley has reached parity tended to check the advance.\nCotton prices, after declining for 6 consecutive weeks,\nrose moderately last week. The rise wes attributed to the\ncontinued heavy entries of cotton into Government loan stocks,\nCongressional opposition to the subsidy program, and inflationary\nimplications in the prospect of a more general demand for wage\nincreases. In the week ended November 13, Government loans on\nRegraded Unclassified\n11\n- 3 -\nthis year's cotton crop amounted to 1,523,235 bales, as\ncompared with 794,830 bales at the same time last year.\nLower prices for fruits, vegetables, and hoge caused\nthe BLS all-commodity index to decline slightly in the week\nended November 13, but it continues to move in the narrow\nrange of the past four months. The rise of the index during\nthe past year has been only 2.7 percent, The index now\nstands at 102.8 percent of the 1926 average, which 1s 37.1 per-\ncent above the pre-war level of August 1939.\nSubsidy to wheat flour millers announced\nDespite severe Congressional opposition to subsidies, a\nsubsidy to wheat flour millers was announced last week by\nStabilization Director Vinson. The subsidy payments will be\nbased on the bushels of wheat ground, and will amount to the\ndifference between the level of wheat prices reflected in the\nwheat flour ceilings, and the market price of wheat but not\nmore than parity. The Defense Supplies Corporation will\nadminister the program, which is expected to cost around\n$9 millions a month, or about to cent per loaf of bread.\nThis subsidy program was necessitated by the squeeze on\nflour millers resulting from the fixed ceilings on flour and\nthe rising price of wheat. While the flour ceilings are based\non a wheat price at 89 percent of parity, wheat prices have\nbeen rising during the past several months until they are now\nonly a few cents under parity. Moreover, it was impossible to\nplace a ceiling on wheat prices until they attained parity.\nConsequently, the flour business, aside from some Government\nbuying, has approached a standstill in most markets. The\nalternative to the subsidy was to revise flour ceilings upward\nto reflect the higher wheat prices, and to permit a rise in\nbread prices.\nWith hard wheat prices approaching parity, the OPA 1s\nexpected to impose a price ceiling soon at 100 percent of\nparity. Such a ceiling was recently placed on soft wheat when\nthe price rose above parity.\nSteps taken to cope with heavy hog marketings\nWith some hog markets beginning to be glutted, and prices\nsagging under the heavy marketings of the record-breaking 74 m11-\nlion spring pig crop ( see Chart 3), steps were taken last week\nRegraded Unclassified\n12\n4\nto support prices of hogs and to facilitate their marketing.\nThe measures taken were: (1) extension of support prices,\nand plans for maintaining these prices, (2) reduction in\nthe ration cost of pork, (3) lifting of the ban on farm\nsales of pork, (4) issuing of a daily report on hog marketing\nconditions, and (5) continued deferment of farm workers\nhelping out in packing plants.\nOfficial support prices were extended to all hog markets\nother than Chicago, where a support price of $13.75 per hundred-\nweight has already been in effect. Prior to November 29 the\nsupport prices in the various markets will be the Chicago\nprice adjusted by the normal price differential. After that\ndate the support price in any market will be $1 per hundred-\nweight below the ceilings which have already been fixed by the\nOPA for the various markets.\nGovernment to purchase surplus pork\nThe WFA indicated that the Government stands ready to\nbuy All federally-inspected pork and pork products that packers\nproduce in excess of the quantity needed for civilian rationing,\nand at prices which will enable slaughterers to pay not less\nthan the support prices for the hoge they purchase for slaughter.\nThe WFA has asked the RFC to withhold meat subsidy payments\nfrom slaughterers guilty of paying lower than the support price.\nGovernment purchases have increased during the past few weeks\nbut they are still considerably below those of May, June, and\nJuly of this year. (See Chart 3, lower section.)\nThe OPA reduced the ration point cost of pork and 100 per-\nitems point free, and will reduce the average point value of all\ncent pork sausages by two points. This cut will make some pork\npork items by one-third. The reduction in the ration point value\nis for a limited time only, and will probably be rescinded when\nthe heavy marketings of hogs cease.\nAs a means of relieving the strain on commercial packers,\nthe WFA lifted for 90 days (until February 17) all restrictions\non farm sales of pork and lard. Heretofore farmers have been\nunable to sell more than 400 pounds of these products in one\nyear. Under the new arrangement it 18 expected that farmers\ncan supply many of the small towns direct, and thus take months. care\nof some of the surplus animals during peak slaughter\nAlthough persons who purchase meat from farmers are required\nto surrender ration points for it, it is feared in some quarters of\nthat form sales are likely to lead to videspread violation\nthe rationing regulations. Moreover, the WFA only reluctantly\nRegraded Unclassified\n13\n- 5 -\nlifted the farm sale ban, since farm slaughter will result\nin the waste of many valuable by-products that can be saved\nat large slaughter houses.\nFinally, Selective Service is reported to have agreed\nnot to reclassify farm help which normally moves to packing\nplants to assist in slaughtering during the slack season on\nfarms. Many farmhands have been reluctant to change employ-\nment for fear of being drafted, while packers have been\nhandicapped by manpower shortages.\nFarm land boom developing\nThe farm land boom 16 gaining such momentum that immediate\ncurbs are necessary to prevent the catastrophe which followed\nthe land boom of the first World War, Secretary of Agriculture\nWickard stated last week. Thus, the index of average value per\nacre of farm real estate rose 3 percent in the four months\nended November 1, according to confidential data of the Bureau\nof Agricultural Economics, and now stands 25 percent above the\npre-war level of March 1, 1939. Moreover, the average rate of\nincrease during the last 12 months has been over 1 percent &\nmonth, the highest of record outside of the boom year 1919-20.\nFor the entire war period to date, however, the rise has been\nsomewhat less than during the comparable period of the first\nWorld War. (See Chart 4.) Pacific Coast states have had the\nlargest increases in land value in recent months, although farm\nland values in all sections have risen.\nSecretary Wickard advocated the establishment of a \"land\nboom profits tax, or resale capital gains tax\" to check the\ninflation in land values. This special tax would be levied on\nprofits from the resale of property acquired during the national\nemergency, and would decrease according to the length of time the\nproperty was held. It 18 thought that such a curb would not\ninterfere with or penalize the bona fide farmer.\nOther controls that have been suggested to check the rise\nin farm land values are: (1) restriction of real estate credit,\n(2) a heavy transfer tax, and (3) ceiling prices on land, with\npermits required for purchasing.\nCoal distribution regulated to safeguard supplies\nAfter falling to the lowest level of the year during the\nfirst week in November, soft coal production in the week ended\nNovember 13 recovered sharply but was still about 5 percent\nRegraded Unclassified\n14\n- 6 -\nbelow the levels attained in the early part of October before\nthe work stoppages began. (See Chart 5.) Some further 1m-\nprovement in bituminous coal output probably occurred last\nweek, although actual production figures are not yet available.\nAs a result of the repeated work stoppages this year, cumulative\nsoft coal production since the beginning of 1943 has been\nslightly less than in the corresponding period last year,\nalthough the decline has been less than 1 percent.\nDuring the past week an acute shortage of coal was\nreported to exist in many communities, and in order to cope\nwith the situation more effectively the Solid Fuels Administration\ntightened up on regulations governing distribution of supplies.\nControl over the retail distribution of domestic sizes of\nanthracite coal in the northeastern states was transferred from\nthe OPA to the Solid Fuels Administration. In addition, new\nsoft coal distribution regulations were issued with the\nobjective of diverting & larger part of production to domestic\nheating purposes. This will be accomplished by cutting down on\ndeliveries to factories, railroads and utilities in cases where\ninventories have risen above stipulated levels.\nIn the face of the tight supply situation in coal, some\nencouragement can be derived from the continuing gradual\nimprovement in East Coast civilian oil supplies. The\nPetroleum Administrator last week stated that there was\ndemands, and that the \"B1g Inch\" pipeline was rapidly reaching from\nenough heating oil in the area to meet current rationed\ncapacity operation. Despite the substantial improvement the\nthe low point of last May, supplies are still much below week\n1940-41 \"normal\". Thus, light fuel oil stocks in the\nended November 13 were slightly less than 60 percent of normal. normal\nwhile gasoline supplies were less than 37 percent of\nWage drive may necessitate rise in steel prices\nDue reportedly to labor troubles, shut-downs for repairs\nand week were scheduled to decline fractionally to 97.8 per- the\nlingering effects of the coal strike, steel operations\nlast of capacity, which 1s the lowest point touched since\ncent week in August. However, some improvement in operations\nsecond likely during the current week. Moreover, the slight\nloss not prevent the industry from breaking previous the in\nseems in production which occurred near the end of last records month\n61d October, with total steel output for the month exceeding\nprevious record high by more than 100,000 tons.\nRegraded Unclassified\n15\n- I 1\nProduction problems are apparently of less concern to\nthe steel industry at present than the prospect of further\nincreases in operating costs, which may necessitate an up-\nward revision of steel prices. The new wage agreement in\nthe coal mining industry has increased production costs,\nand in this connection it 16 reported that Secretary Ickes\nhas protested to Stabilization Director Vinson over the in-\nadequacy of coal price increases proposed by OPA. Moreover,\ncoal operators have threatened to hold up further disbursements\nfor mine operations unless assurance is given that the OPA\nwill grant an adequate increase in coal prices retroactive to\nNovember 1. Along with the impending rise in coal prices, some\nof the smaller steel producers are confronted with a further\nincrease in costs as a result of a recent OPA authorization of\na moderate rise in iron ore prices.\nIn addition, steel companies soon will be faced with\ndemands for increased wages, as the United Steel Workers Union\nhas already announced that it will formally open a drive for\nhigher wages around December 1. Trade circles contend that\nhigher wage rates superimposed upon other recent increases\nin operating costs will necessitate an upward revision in\nsteel price ceilings.\nCivilian goods production outlook brightens\nAlthough steel requirements of the various claimant\nagencies for the first quarter of 1944 are still in excess of\nsupply, trade reports indicate a rather definite easing in the\ngeneral steel supply situation. Concrete evidence of this\ntrend appeared during the past week when the Office of Civilian\nRequirements revealed that programs for the production of\nelectric irons, washing machines and electric refrigerators\nfor civilian use were under way as a result of the easing in\nsteel supplies. A program for the production of 2 million\nelectric irons is expected to be the first to get under way,\nas dealer stocks of irons are non-existent and the OCR places\nirons at the head of the list of electric appliances most\nneeded by civilians. In addition to the anticipated partial\nresumption of washing machine and refrigerator production later for.\nin the year, aluminum kitchen ware is soon to be available\ncivilians while output of portable lamps 18 slated for an\nincrease.\nThe outlook for increased civilian supplies of soft goods\n1s clouded by expected needs in connection with European\nRegraded Unclassified\n16\n- 8 -\nrehabilitation. However, an encouraging development in this\nconnection occurred near the end of last week when the WPB\nlifted all restrictions on the use of wool for clothing,\ndraperies and upholstery fabrics.\nRetail inventories increased in September quarter\nDespite the heavy volume of sales and the restrictions\nimposed on civilian goods production, total retail business\ninventories (in dollar value) rose steadily in the third\nquarter of this year, and at the end of the period stood at\nthe highest level since last December. Merchants have been\nexpecting earlier than usual Christmas shopping, and this\nfactor together with the relative availability of nondurable\ngoods resulted in the expansion of inventories during the\nperiod. The value of total retail inventories at the end\nof each quarter since the war-time peak W&B reached in the\nsecond quarter of 1942 has fluctuated 8.8 follows:\nJune 30, 1942\n$7,496,000,000\nSeptember 30, 1942\n7,350,000,000\nDecember 31, 1942\n6,384,000,000\nMarch 31, 1943\n6,106,000,000\nJune 30, 1943\n5,829,000,000\nSeptember 30, 1943\n6,248,000,000\nAt recent levels retail inventories on the average represented\nabout one and one-half months' sales whereas in June 1942\ninventories were equivalent to about two and one-half months'\nsales.\nDepartment store sales at new peak\nStimulated by earlier than usual Christmas shopping,\ndepartment store sales showed a further rise to a new high\nfor the year in the week ended November 13. The gain over\nlast year's levels widened to 14 percent, from 10 percent in\nthe week ended November 6. All districts shared in the year-\nto-year gain, although the increase varied from only 1 per-\ncent in the Boston district to 44 percent in the Dallas district.\nRegraded Unclassified\nINDUSTRIAL STOCK PRICES IN U.S. AND U.K.\nAUGUST 1936 . 100\n1941\n1942\n1943\nPERCENT\nPERCENT\nWeekly (Average of Daily)\n115\n115\n110\n110\n105\n105\n100\n100\n95\n95\n90\n90\nU.K. 56 Industrial\n85\nStocks\n85\n80\n80\n75\n75\nU.S. 30 Industrial\n70\nStocks (Dow-Jones)\n70\n65\n65\n60\n60\n55\n55\nChart 1\n50\nOCT.\nDEC.\nFEB.\nAPR.\nJUNE\nAUG.\nOCT.\nDEC.\nFEB.\n50\nAPR.\nJUNE\nAUG.\nOCT.\nDEC.\n1941\n1942\n1943\nthe of the Sentary of the Insury\n- # - - -\nRegraded Unclassified\nMOVEMENT OF BASIC COMMODITY PRICES\n1942\n1943\n1944\nPERCENT\nPERCENT\nAUGUST 1939-100\n220\n220\n210\n210\n200\n200\n9 Uncontrolled Commodities*\n190\n190\n180\n28 Commodities\n180\n1'\n170\n170\n19 Controlled Commodities\n160\n1.60\nOCT.\nDEC.\nFEB\nAPR.\nJUNE\nAUG.\nOCT.\nDEC.\nFEB.\n1942\n1943\n1944\nPERCENTAGE CHANGE DEC. 6, 1941 TO NOV.12, AND NOV.19, 1943\nPERCENT\nPERCENT\n19 Controlled\n9 Uncontrolles\nCommodities\nCommodities\nBarley 72,7%\n+70\n+70\nFlaxseed 63.8 I\n+ 60\n+60\n+50\n+50\nCom 44.6%\n+40\n+40\nWheat 398 x\nRegin 3942\nHoge 358 I\n18\n+30\nLard 280X\n+30\nShe/loc 123%\nLead IIJ X\nSugar 6.9%\nCottonseed Oil 6.3 I\n+20\nPrint Cloth 4.9 I\n+20\nButter 188 N\nBurlep 26%\nStaers 184%\nZine 32\nCatton NJ I\n0% Change\n+10\nNideo, Salt,\n+10\nTin, Rubber,\nCoffee, Copper,\n4a. Screptom,\no\na\nCoose -8%\nWool Tops-1.2 %\nTollow 4.12\n-10\n-10\nDec. 6\nNov. 12\nNov. 19\nDes. 6\nNex It\n1941\n1943\n1943\n1941\n1943\n1943\n20 Controlled . Uncontrolled provious to Jane 26, 1942\nOffice of the Secretary of the Treasury\n- d - - -\nP-244-A\nRegraded Unclas\nHOG PRICES COMPARED WITH HOG SLAUGHTER\nAND U.S.D.A. PURCHASES\n1941\n1942\n1943\n1944\nDEG\nFEB.\nAPR.\nJUNE\nAUG.\nOCT.\nDEG.\nFEB.\nAPR.\nJUNE\nAUG.\nOCT.\nDEG\nFEB\nDOLLARS\nDOLLARS\nPer 100 Lbs.\nPer 100 Lbs.\n16\n16\n14\n14\nPrice of Live Hogs*\n12\n12\n10\n10\nTHOUSANDS\nMILLIONS\nOF HOGS\nOF LBS.\n(Sloughter)\n(U.S.D.A.\nPurchases)\n1400\n1200\n240\nSloughter\n27 Centers\n1000\n200\n800\n160\n600\n120\n400\nU.S.D.A. Purchases\n80\n200\n40\no\no\nDEC.\nFEB.\nAPR.\nJUNE\nAUG.\nOCT.\nDEG.\nFEB\nAPR\nJUNE\nAUG\nOCT.\nDEG.\nFEB.\n1941\n1942\n1943\n1944\n. Chicago, good to choice, 180-200 pounds\nChart 3\nSource: Department of Agriculture\nOffice of the Secretary of the Treasury\n. and Statistics\nP-248-A\nRegraded Unclassified\nFARM REAL ESTATE VALUES IN TWO WORLD WARS\nWorld War I. 1914=100; World War II. 1939=100\nPERCENT\nPERCENT\n165\n165\n1920\n160\n160\n155\n155\n1921\n150\n150\n1919\n145\n145\n140\n140\n1922\n135\n135\n1918\n130\n130\nWorld War I\n125\n125\n120\n120\n1917\n1943\n115\n115\nWorld War II\n110\n110\n1916\n1942\n105\n105\n1915\n1941\n1914\n100\n100\n1940\n1939\n95\nChart \"\n95\nJ\nS\nN\nJ\nJ\n5\nN\nJ\nJ\nS\nN\nJ\nE\nJ\n$\nN\nJ\nM\nJ\nS\nN\nJ\nM\nJ\nS\nN\nJ\nE\nM\nJ\n$\nJ\nE\nJ\n5\nN\nJ\nJ\nS\nN\nJ\nOffice of the Secretary of the Truesury\nRegraded Unclassified\nDivision and -\n21\nChart 5\nBITUMINOUS COAL PRODUCTION\nSHORT TONS\nMILLIONS\n2.4\n&\n2.0\n42\n'41\n1.6\n1.2\n39\n.8\n.4\nBit. Coal Comm.\no\nIII\nJAN.\nMAR.\nMAY\nJULY\nSEPT.\nNOV.\nOffice of the Secretary of the Treasury\nC-484\nDivision of Research and Statistics\nRegraded Unclassified\n22\n25\nNovember 22, 1943.\nDear Anna:\nIt was fine to hear that you had just had a long\nletter from John, and I hope that everything is going\nwell with him.\nI an delighted to send you, at your request, a copy\nof the letter which Colonel Hume wrote me in connection\nwith the German evacuation of Naples. The name is as\nyou remember it, and it is given in full at the end of\nhis letter.\nElinor has had & severe cold, but nothing like a\nreturn of her difficulties of last spring and summer.\nI suppose it will be quite awhile before her strength\nis built up again, but she is trying to take good care\nof herself, and 190 hope that she will soon be entirely\nwell again. She joins no in sending love and best wishes\nto you.\nSincerely,\n(Signed) Henry\nMrs. John Boettiger,\nAssociate Editor,\nSeattle Post-Intelligencer,\nSeattle, Washington.\nEnclosure. copy of lts from Cal. Hume\nair mail\nRegraded Unclassified\n23\n20 October 1943\nHon. Henry Morgenthau,\nSecretary of the Treasury,\nCare of Lieut. General Mark W. Clark, U.B.A.,\nHeadquarters, Fifth Army.\nNAPLES.\nMy dear Mr. Secretary:\nIn compliance with your request I give you herewith & brief\nreport of acts of German cruelty and wanton destruction committed in\nNaples, chiefly during the three weeks before our capture of the city.\nThis period is called \"The Reign of Terror\" by Neapolitans. I am,\nof course, not giving any instances of damage to the city or to indi-\nviduale which took place 8.9 a result of acts of war (bombings. etc.).\nThe things that I list were unnecessary from any military point of view.\nOFFENSES AGAINST THE CITY\nAS A WHOLE\n1. Water Supply: When the Fifth Army reached Naples we found\nthat there was an almost total failure of the water supply. People were\ncarrying water in pails, jugs. bottles and every type of container.\nThere was a small trickle of water from some of the hydrants but many\npersons standing in line were unable to receive enough to quench thirst.\nNaples had been famous for an abundant supply of pure water. The Germans\nhad blown up the main aqueduct in seven places and all of the reservoirs\nsave one had been drained. By chance an Italian had saved one reservoir\nby cutting the fuse after it had been lighted by departing Germans.\nAllied Military Government took charge of the remaining reservoirs and\nby rationing made the supply go as far as possible. The hardship on\nthe people of Naples, particularly those unable to 50 for water was\ngreat and there was much suffering, until the supply was rationed and\nuntil we established water distribution points for water distilled from\nthe bay. The Germans were well aware that there was ample facility for\nour bringing in water for the troops, as was done in the desert campaign,\nso that this destruction of the city supply was an act of cruelty against\ncivilians, young and old. The enemy likewise destroyed the pumping plants,\nthereby making it impossible to raise the water, had any been available,\nto the higher parts of the city, The water mains in many parts of Naples\nwere deliberately cut.\nRegraded Unclassified\n24\n- 2 -\n2. Sewage System: The pumping facilities of the Bewage disposal\nsystem of Naples were destroyed. Thus, even had there been enough water\nto enable sewers to function, they would have been unable to do so because\nmuch of the Neanolitan sewage disposal depends not on gravity but on\na series of pumps. The city is built on volcanic rock so that, even had\nthere been space available for them, it was all but impracticable to dig\nlatrines. The danger of epidemics of intestinal diseases, such as\ntyphoid fever and dysentery, was obviously very great particularly at\nthis season of the year.\n3. Electric Light and Power Systems: Naples was in darkness when\nwe took over. The Germane had destroyed both the generators of the\ncurrent and likewise the transformers. The Italian metropolis depends\nlargely on hydro-electric power not only for lighting, but for the\nwater and sewage pumps, the mille for grinding wheat, the newspaper\npresses, the heating of buildings, cooking, and indeed practically all\npower machines. This was one of the most serious conditions we had to\nmeet. By hard work by our engineers the current is now restored, in\npart, though we have had to follow B. certain priority in alloting it\nat first.\n4. Transportation System: The street car system was wholly out of\ncommission both because the electric current had been cut off (see above)\nand because the Germans carried away or destroyed the greater part of the\nrolling stock. Buses also were taken away. A large number of them were\nfound to the north of the city where the enemy, unable to carry them\nfurther, had burned them. There are of course no taxicabs other than\n& few old wrecks, and only a few horse-drawn vehicles in the city.\nPeople who are not physically strong enough to walk from one locality\nto another are practically prisoners. This has seriously affected the\nearning capacity of many. The Germans carried away every automobile,\nboth passenger and truck, that they could find. In some instances they\ntook only the tires and destroyed or abandoned the bodies of the care.\nAmbulances and fire-fighting vehicles were not spared.\n54 Communication Systems: The telegraph lines were put out of\ncommission. The main telephone exchange was blown up. Fortunately the\nGermans overlooked two emall subsidiary exchanges. By splicing the\nlines we were able to give the military authorities a limited number of\nlines within ten days. However business firms and private families are\nstill without telephones. The Post Office was looted and destroyed\n(see below).\nRegraded Unclassified\n25\n- 3 -\n6. Demolition of Yotels: The group of magnificent hotels along the\nVia Partenope, facing Vesuvius, used to be one of the outstanding groups\nof such institutions in the world. Such names as the Excelsior, Vesuvio,\nSanta Lucia, Royal, etc;, are known to travelers everywhere. These\nbuildings, without exception, were blown up and fire set to what remained.\nThey cannot be repaired. The only first-class hotel left was the Park Hotel\n(Parker's Hotel), which was mined (see below).\n7. Blocking of Tunnels: There are a number of tunnels in Naples\nbuilt to give ready access from one quarter to another at a saving of much\nhill climbing. These were blown up.\n8. Bombing of Public Buildings: Besides the bombing of various public\nbuildings for their immediate destruction, the Germans showed their usual\ncunning in setting time bombs so as to explode after our arrival, thereby\nboth destroying property and causing human death and suffering. A few\ninstances will illustrate. On October 7, at 2:30 P.M., a violent explosion,\ncaused by a time bomb hidden in the corner of the Post Office, destroyed the\nend of that building and tore an enormous hole in the street. There was\nconsiderable loss of life, chiefly civilians. In all 30 people were killed,\n84 were severely injured (hospitalized), and 25 were slightly injured.\nI was in my office across the street when the explosion occurred. I went\nto the scene at once and helped give first aid to the wounded. Many were\nwomen and children. In the Via Partenope a time bomb in the street exploded\non October 3rd, at about dusk. Fortunately nobody was hurt though a few\nminutes before a group of workmen had passed over the spot. On October 11th,\nat 8:55 A.M., a time bomb set in the Italian Artillery Barracks, occupied by\nour 307th and 36th Engineers, exploded. Some 24 of our men were killed and\n47 wounded, This cannot be justified as an act against our armed forces,\nfor it was only by chance that we were using the barracks for soldiers.\nIt had been previously used by Italian families. Every effort has been\nmade to locate unexploded bombs and with much success. A time bomb and\nabout 1500 pounds of INT were removed from the basement of the Park Hotel on\nOctober 2nd, before explosion occurred. On October 16th, an unexploded time\nbomb and 1600 pounds of TNT were removed from the building housing a part\nof the 82nd Airborne Division. Ordnance officers estimated that the bomb\nhad about 3 days and 17 hours more to run, on the timing device, before\nexplosion.\n9. Opening of Prisons: Before their departure, the Germans released\nall prisoners in the jails and prisons of Naples, of which there are about\na dozen, one of them the largest in Italy. While we have been able to re-\narrest many of the criminals, this act of the Germans has been productive\nof danger and loss of morale to the civil population.\nRegraded Unclassified\n26\n- 4\n10. Demolition of Flour Mills: Naples, like most Italian cities,\ngrinds its wheat a little at a time, rather than converting a whole crop\nto flour at once. Thus flour mills are an essential feature of the city's\noconomic and welfare system. All of the large mills were wrecked by the\nGermans.\n11. Destruction of the University of Naples and of its Famous\nLibraries: The University of Naplos is one of the oldest and most famous in\nexistence. The library of the Royal Society of Naples, one of the great\nlearned sociotics of the world, was housed therein. It was put to the\ntorch on 12 September, a little more than a fortnight before we took the\ncity. Wo are collecting affidavits of the Rector and many faculty members\nand students, They agree that at about 3:00 P.M., a party of some 600\nGermans entered the University and announced that they were about to burn\nit, in retaliation for the fighting of Neapolitans, including students,\nagainst their troops, Cans of gasoline were brought in and the walls,\nfurniture and books covered with it, and the fire was started, The fire-\nmen arrived soon thereafter but the officer in charge refused to allow them\nto enter, Two Carabinieri (military police) who tried to stop the destruction\nwere taken to the front entrance and shot. Many of the nearby houses were\nrobbed, not only those of professors but of others. Several witnesses agree\nthat the notorious Col. Scholl, Commander of German troops garrisoned in\nNaples, arrived in person when the work was finished and read a proclamation\nin German and Italian announcing that the university had been wrecked as\na punishment to Naples, When I first visited the ruined buildings the ashes\nof the Iibrary of the Royal Society were still warm and the pool of blood\non the front steps, where the shooting of the Carabinieri was reported to\nhave occurred, was still evident,\n12. Robbing of Hospitals: Directors of the several hospitals of\nNaples agree that the Germans before departure, carried off all of the\nhospital equipment and supplies that they could find. Some of these\ninstitutions had practically no medicines or dressings when we arrived.\nEven establishments of the Italian Red Cross were not spared.\nOFFENSES AGAINST INDIVIDUALS\nIn a report of this kind, prepared on a few hours notice, it is not\npossible to give a detailed account of offenses against individuals. That\nmust wait until our final report on German misdeeds in Naples is completed.\nThe following incidents are taken at random from a mass of documentary\nevidence thus far gathered.\nRegraded Unclassified\n27\n- 5 -\nThere is general agreement that Germans collectively and individually\nrobbed shops, homes and even people in the streets. This varied all the\nway from ordinary highwayman's technique to burglary. Many individuals,\nnot excepting those in high position, were carried off as hostages. Among\nsuch hostages were the Bishop of Cava dei Terreni and the Abbot of Badia\nat Corpo di Cava. Many people were beaten to make them disclose the where-\nabouts of supposed valuables. Women as well as men were subjected to such\ntreatment. There were many murders, some of a sadistic nature, with muti-\nlation of dead bodies, particularly those of women. One deposition says\nthat the eye witness saw a man buried in a grave he had been forced to dig\nhimself, being bayonetted before being thrown in. Often the populace were\ntold to help themselves after the Germans had begun looting. Many of the\nmore intelligent witnesses state that the killing of Italian civilians was\nnot merely acts of individual German soldiers, but often in response to\ndirect orders of their officers, all as a part of a campaign to terrorize\nthe people. \"Booby traps\" were placed not only in places where they might\nbe set off by our troops, but where children and other civilians would\nfind them. Many such people have been mutilated or killed. There was\nmuch wanton destruction of property, frequently associated with physical\nharm to people. Furniture not desired was smashed or burned, live-stock\nkilled, supplies of food destroyed or fouled 50 that it could not be used.\nParticularly cruel were the measures against those Italians between 18 and\n35 who failed to respond to the German proclemation of September 22nd,\nrequiring them to report for forced labor with the German Army.\nI wish that there were time to give you more details and to complete\nthe report of the first two weeks of the vork of the Allied ilitary\nGovernment of this great city. I should like to give you further partic-\nulars beyond what I could tell you in a few minutes last night. I think\nthat I may say, however, that we have achieved our dual goal. First that\nof keeping the burdens of governing this war torn city from the shoulders\nof our military Commander, whose entire attention is needed for the leading\nof a great army. Secondly, we have been able to keep the city running in\nsomething like a normal fashion, despite the handicaps imposed by war and\nby the German studied policy of destruction.\nMay I wish you a safe journey home and once more thank you for your\ninterest in what we are doing.\nRespectfully yours,\n(s) Edgar Erskine Hume\nEDGAR ERSKINE HUME,\nColonel, General Staff Corps,\nUnited States Army,\nChief of Military Government.\nRegraded Unclassified\n2 28\nSeaffle Poste Intelligencer\nESTABLISHED 1845\nANNA ROOSEVELT BOETTIGER\nNovember 16, 1943\nASSOCIATE EDITOR\n45 'I.\nDear Henry:\nI got a wonderful long letter from John\ntoday in which he asked me to ask you to send\nme a copy of the letter his commanding officer\ngave you describing conditions in Naples. I\ngather that his immediate commanding officer\nis Colonel Hume. Is this correct? I would\ncertainly appreciate it if you could let me\nread the letter.\nLove to you and Elinor.\nAffectionately,\n= Ama\nHonorable Henry Morgenthau, Jr.,\nSecretary of the Treasury,\nWashington, D. C.\nP.S.- h le Her from Ina says Elmor\nPhope she'll soon The over this trubte lung of trumble.\nJeeh miserable apain. I'm so very scipe sorry & do\nJeems to me there's in suph in other world\ntoday without hairing personal from a bleo added!\nRegraded Unclassified\n29\nTREASURY DEPARTMENT\nINTER OFFICE COMMUNICATION\nAs\nDATE\nTO\nSecretary Morgenthau\nNovember 22, 1943\nFROM\nMr. O'Connell\nThis morning's Washington Post carries an\neditorial on the census the Treasury Department\nis taking of American investments in foreign\ncountries.\nThe editorial, a copy of which is attached,\nis approving in tone. It recites some of the\nadvantages of such a census that the Department\nhas pointed out from time to time, and goes on\nto suggest that \"the wartime census of over-\nseas holdings will be continued and kept up to\ndate when the war is over.\"\ngood\nAttachment\nRegraded Unclassified\n30\nWASHINGTON POST\nNovember 22, 1943\nOverseas Investments\nSince last June the Treasury has been\nacquiring information in regard to the in-\nvestments of Americans and alien residents\nin foreign countries. The returns tabulated\nto date show holdings of approximately three\nbillion dollars, out the final total will prob-\nably amount to between 10 and 12 billions.\nOf the investments so far reported 40 per\ncent are Canadian, while assets held in Ger-\nmany rank second in value.\nObviously a large proportion of the securi-\nties and tangible possessions representing\nclaims on Axis-dominated countries will\neventually have to be written off as total\nlosses. Indeed, some of these holdings had\nlittle or no value before war was declared.\nNevertheless, the assembled data will be\nvery valuable in future negotiations looking\ntoward restitution of property and the es-\ntablishment of claims for losses suffered.\nFurthermore, there are numerous ways in\nwhich the data may prove useful to the\nGbvernment while the war is in progress.\nThe military and occupational authorities\nmay, for example, want to get in touch with\nindividuals who have knowledge of condi-\ntions in occupied territories. In carrying\non discussions with neutral countries in re-\ngard to wartime business, financial and eco-\nnomie matters, it is also highly important\nto know to what extent American investors\nwould be affected by any agreements that\nmight be made. The Army, too, might turn\nAmerican-owned property in occupied coun-\ntries to good use in producing war materials,\nbuying war supplies, or developing sources\nof raw material.\nWhen the war is over, problems of ex-\nchange control, questions as to the amount\nof private loans that can safely be made to\nforeign countries, and related matters can\nbe handled much more intelligently if we\nhave advance knowledge of the volume and\nvalue of amounts already due us on Invest-\nment account. We have always been handi-\ncapped by lack of precise knowledge of the\nextent and character of foreign investments.\nHence, it is to be hoped that the wartime\ncensus of overseas hoidings will be continued\nand kept up to date when the war is over.\n31\nNovember 22, 1943.\nDear Nr. Payeer:\nIn the absence of the Secretary, I an\nacknovledging year letter of November 18,\nwhich encloses a copy of the fourth monthly\nreport of the progress under the Third Seviet\nProtocol. I shall be glad to bring this to\nthe Secretary's attention and know that be\nwill particularly note the figures in regard\nto the progress más during October, and dur-\ning the fear proceding months.\nSincerely yours,\nSigned) H. S. Klotz\n1. s. Nots,\nPrivate Secretary.\nMr. 1. A. Peyser,\nDirector, Foreign Division,\nVar Production Beard,\nVashingtes, D, e.\nGEF/dbs\nRegraded Unclassified\n32\nWAR PRODUCTION BOARD\nWASHINGTON, D. C.\nIN REPLY REFER TO\nNovember 18, 1943\nMr. Henry Morgenthau\nRoom 280\nTreasury Department\nWashington, D. C.\nDear Mr. Morgenthau:\nI am enclosing a copy of the fourth\nmonthly report of the progress under the Third\nSoviet Protocol.\nI wish to call your attention to the\ntabulation showing the progress made during October\nand during the four months ending October 31 towards\nthe fulfillment of the Third Protocol materials and\nequipment production programs.\nSincerely yours,\nE. A. Peyser\nDirector, Foreign Division\nattachment\nOPVICTORY\nBUY\nUNITED\nSTATES\nWAR\nBONDS\nAND\nSTAMPS\nRegraded Unclassified\n33\nSECRET\nWAR PRODUCTION BOARD\nWASHINGTON, D. C.\nNovember 16, 1943\nIN REPLY REFER TO:\nMy dear Mr. President:\nAttached hereto is a tabulation showing the progress made\nduring October, and during the four months ending October 31, towards\nfulfilment of Third Protocol materials and equipment production pro-\ngrame for the Union of Soviet Socialist Republics.\nA noteworthy recent development has been increased, or ao-\ncelerated, shipments of certain critical raw materials. To meet re-\nquirements resulting from expansion of Soviet alloy steel production,\nappreciable quantities of ferrotungsten, ferrovanadium, and ferro-\nmolybdenum, which previously were not included in the Russian Aid Pro-\ngram, have been authorised. For the same purpose, arrangements have\nbeen made for advance shipment of 1120 short tons of metallic nickel.\nBecause nickel is still in short supply in the United States and\nCanada, this shipment is being made from United Kingdom stocks. In\nthe case of aluminum, information has been received that production\nof planes by the USSR can be increased in direct proportion to en\nincrease in supplies of aluminum from the United States. It has been\ndecided, therefore, to maintain through the first quarter of 1944\naluminum shipments at the rate of 6,720 short tone per month from\nthe United States and Canada jointly, despite the very large over-\nshipmente authorised for the third and fourth quarters. 1943. By\nthe end of March, more than 75,000 short tons of fabricated and in-\ngot aluminum are scheduled to have been made available under the\nThird Protocol. This compares with a United States-Canadian commit-\nment for that period of 40,320 S.T. In addition, 2,240 short tons\nof secondary aluminum have been supplied from United Kingdom stocks.\nWith reference to industrial equipment, the War Production\nBoard is currently in process of attempting to schedule orders\nauthorised, but not yet placed under the Third Protocol. As pointed\nout previously, in the case of a number of industrial equipment cate-\ngories, the USSR delayed several months before presenting necessary\nrequisitions. This has resulted in difficulties in arranging for\ncompletion of the orders in question before June 30, 1944. In some\ninstances, notably pumps and cranes, it seems that these difficulties\nwill be so great that it will not be possible to schedule production\nof the full quantities offered under the Protocol. A portion of\nPORVICTORY\nseveral Third Protocol offers will consequently have to be cancelled\nBUY\nor taken up with substitute equipment.\nUNITED\nSTATES\nWAR\nBONDS\nARB\nSTAMPS\nRegraded Unclassified\n34\nThe War Production Board is also currently engaged in sur-\nveying production possibilities in regard to equipment programs which\nthe USSR has requested for completion after June 30, 1944, 1.e. dur-\ning the Fourth Protocol period. It is felt that advance planning in\nthe case of these programs is very important in that it makes possible\nworking the programs into production lines, and thus enables their\nfulfilment without undue interference with urgent domestic programs.\nSuch advance planning also insures that there will be no interruption\nin the flow of equipment to the USSR during the first part of the next\nProtocol period.\nThe stocks situation continues to improve. On the basis of\nTreasury and Ordnance data, stocks of both materials and industrial\nequipment held in warehouses and depots on USSR account declined dur-\ning the past month. Particularly noteworthy is the fact that ware-\nhouse stocks of steel dropped from 271,000 tone at the end of Septem-\nber to 241,000 tons at the end of October. I am attaching a brief\ntable showing in greater detail the stocks situation as of October 31.\nRespectfully yours,\n15/\nDonald M. Nelson\nThe President\nThe White House\nWashington, D. 0.\nAttachments\nSECRET\nI\nExplaines\nRegraded Unclassified\n35\nSECRET\nSTOCKS HELD IN TREASURY AND ORDNANCE WAREHOUSES\nAND DEPOTS ON USSR ACCOUNT\n(Short Tons)\nItem\nAs of June 30\nAs of Sept.30\nAs of Oct.31\nI. Materials\nAluminum\n274\n377\n601\nNickel\n47\nX\nX\nMolybdenum\n0\no\n744\nCopper base alloys\n17,588\n9,490\n8,599\nMagnesium\n154\n154\no\nZinc\no\no\no\nCopper Products\n3,482\n3,089\n3,071\nFerro-Alloys\n4,362\n4,599\n2,754\nSteel\n408,325\n271,775\n241,142\nCopper Wire and Cable\n43,323\n58,241\n58,767\nPaper Products\n2,471\n3,439\n2,910\nWire Cloth\n81\n107\n71\nOther Materials\n6,522\n6,032\n4,488\nTotal Materials\n(Excluding Chemicale)\n486,629\n357,263\n323,147\nII. Industrial Equipment\nMachine Tools and Forging\n26,960\n58,581\n55,686\ne\nPresses & Hammers\nPower Equipment\n9,773\n18,804\n20,107\nIndustrial Boilers\n6,309\n12,072\n14,590\nMisc. Electrical Equip.\n4,183\n6,558\n7,331\nElectric Furnaces\n2,013\n5,388\n4,336\n011 Refinery Equipment\n12,259\n1,798\n4,348\nTire Manufacturing Plant\n2,244\n888\n1,553\nAluminum Mill\n331\n442\n950\nVarious Indust. Machinery,\n28,784\n55,445\n38,194\nn.e.s.\nBearings\n99\n333\n457\nGraphite Electrodes & Related\n861\n1,137\n1,015\nProducts\n2-32379\nRegraded Unclassified\n36\n- 2 -\nItem\nAs of June 30\nAs of Sept. 30\nAs of Oct.31\nII. Industrial Equipment (Cont'd)\nAbrasives\n972\n488\n590\nInstruments & Laboratory Equip.\n701\n1,799\n869\nMisc. (Incl. Treas. Procured\n734\n1,117\n2,146\nMachine Tools)\nTotal Indust. Equip.\n96,223\n164,850\n152,172\nTires and Tubes\n4,575\n725\n2,470\nGrand Total Excl. Chemicals\n587,427\n522,838\n477,789\nX - Less than 1 S.T.\na/ Excludes materials and equipment in transit or at seaboard.\nIn transit\ns/\nStocks as of June 20, 1943\n₫/\nStocks as of Sept. 20, 1943\ne/\nStocks as of Oct. 20, 1943\nSECRET\n2-33379\nRegraded Unclassified\nSTATUS OF MATERIALS AND EQUIPMENT PRODUCTION PROGRAMS - THE THIRD RUSSIAN PROTOCOL AS OF SOVEMBER 1, 1943\nSECRET\n(OCTORER DELIVERY DATA SUBJECT TO ANVISION)\nPro-\nItem\nDails\n3rd\nHade Available\nMade Available\nPercent of\nRatio of\nBalance to be\nComments\ntoral\nProtocol\nas Mill is U.S.A.\nat Mill to U.S.A.\n3rd Prot.\nActual\nProduced\nItem\nProduction\nDes. 1, 1943 -\nJuly 1, 1943 -\nProgrem\nDeliveries to\nas of Nov. 1, 1943\nNo.\nProgram\nOct. 31, 1943\nDet. 31, 1943\nCompleted\nProt.Sched.\nto Complete\n- of\n(Prot,Sched,=100)\n3rd Protecol\nNov. 1, 1963\nProd. Program\nNON-7ERROUS METAIS\nAlustom shipments to date consist\nof 806 S.Y. rod; Was S.T. hard nb\n3\nAlualma (Inger and Pubricated)\n5,7.\n35.760\n9.520\n29,660\n63\n252\n6,080\nIng: 8,08 S.T. hard sheet; 14,762\nS.T. primary lagot; and 5,600 S.T.\nsecondary Ingot.\nla\nNickal\nA\nPlg Fickel\nS.T.\n3,600\n300\n1,200\n33\n100\n2,400\nA total of 600 8.7. of sickal la\nmonel scrap valid offered, but -\n3\nFickel is Nonel Scrap\n1.7.\n-\no\n50\n-\n-\n(50 Brown)\nnept for 50 S.P. for experimen-\ntal purposes, the U.S.S.B. has\nart taken advantage of the offer.\nContained sickel deliveries to\ndate consist of 492 S.T. in steal:\nc\nFickal in Steel and Other\nS.T.\n2,400\n177\n803\n33\n100\n1,597\n146 8.7. in sichrose wire and\nNon-Parrous Products\nstrip: 145 8.9. is cupro-sickel\nstrip: and 20 1.7. is other sickel\nproducts,\n5\nS.T.\n4,000\n512\n1,517\n38\n115\n2,483\nElectrolytic copper figures refer\nto copper contained in various -\nterials requiring copper which are\nbeing supplied the U.S.S.B. De-\n6\nDepper, Electrolytic\nS.T.\n(121,400)\n(9,352)\n(28,907)\n(24)\n(73)\n(92,493)\nliveries to date include 17,860\nI.f. contained in copper base al-\nloys: 3,685 8.9. contained is cop-\nper goods and tabes; 95 8.7. coo-\ntained la binetal; and 7,267 5.9.\ncontained in vire mill products.\nSECRET\nI I I\n3\nRegraded Unclassified\nSECRET\n2\nI I I\nm\nTime\nUnit\n3rd\nMade Available\nMade Available\nParcent of\nBatto of\nbalance to be\nCommate\ntotal\nProtocol\nat Mill in U.S.A.\nat Mill is U.S.A.\n3rd Prot.\nActual\nProduced\nItem\nProduction\nOct. 1, 1943 -\nJuly 1, 1943 .\nProgram\nDeliveries to\nas of Nov. 1, 1943\nNo.\nProgram\nDet. 31. 1943\nDet. 31, 1943\nCompleted\nProt.Sched.\nTo Complete\nas of\n(Prot.Sched,=100)\n3rd Protecol\nNov. 1, 1943\nProd. Program\nMETALS (Continued)\nOctober production of repper hass\nalleys etteeded the monthly rate\ncalled for by the Protocol. Pro-\nduction at about the October rate\n7\nCopper Inco Alleys\nS.9.\n107,580\n9,634\n25,863\n24\n73\n41,657\nis scheduled to continue until\nthe deficit socumlated Buring\nthe July-September pariod because\nof the stocks situation is elimi-\nnated,\n6\nSuperies\nS.T.\n4,032\n336\n1,344\n33\n100\n2,688\n9\nStar\n1.7.\n13,440\n1,120\nMikeo\n33\n100\n8,960\n11\nCopper Goods and Tubes\nI.P.\n15,000\n1,1kg\n3,676\n25\n76\n11,324\nThe Third Protecol provides that\nup to 269 S.?. of special -\nferrous vires my be ordered,\nUntil the present, however, saly\n73 S.T. have been requisitioned.\nThe Third Protocol production\nschedule is therefore limited to\nR\nSpecial Alloy\n8.7.\n73\n15\n42\n56\n176\n31\nthis amount, Delivaries to date\nVires\ninclude a S.f. of impiro allay\nvirs; .9 1.1. of constantes vira;\n2 1.7. of testalse virs; 11.1\nI.?. of slund and dross] vires\n12,4 1.9. of monel, error et\nbaryllins bronse vire; 4,5 S.T.\nof enselled mangania wire;\n12.5 8.9. of anlybdama vire, and\n.2 1.9. of round mangania vire.\n30\nBichrome Wire\nS.T.\n538\n14\n183\n34\n103\n355\nThe production program above is\nfor the first half of the Third\nProtocal period: the ratio of se-\n94\nCobalt\nS.T.\n80.5\n40.5\n80.5\n100\n152\no\ntoal deliveries to the Protocol\nschedule has, therefore, been ad-\njusted to take this late account.\nThe October shipment completed the\nfull Protecol offering.\nTotal Non-Parrous Metals\n(Reluding Item 6,\n1.9.\n186,443.5\n22,810.5\n68,918.5\n37\n112\n117,525\nCopper. Electrolytic)\nSECRET\n3\n-\nI\ngraded\nUnclassified\nSECRET\n-\nI\n-\nPro-\nItem\nUnit\n3rd\nMade Available\nMade Available\nPercent of\nRatio of\nBalance to be\nComments\ntocol\nProtocol\nat Mill in U.S.A.\nat Mill in U.S.A.\n3rd Prot,\nActual\nProduced\nItem\nProduction\nOct. 1, 1943 -\nJuly 1, 1943 -\nProgram\nDeliveries to\nas of Nov, 1, 1943\nNo.\nProgram\nDet. 31. 1943\nOct. 31, 1943\nCompleted\nProt.Sched,\nTo Complete\nas of\n(Prot,Sched,=100)\n3rd Protocol\nNov. 1, 1943\nProd. Program\nFERRO-ALLOTS\nThe U.S. has offered to supply 76%\nS.P. of ferrosilism and 448 s.r.\nof ferrochrose per month, but by\nagreement this offer 1s to become\n12\nFerrosilicon\n8.9.\n-\no\no\n-\n-\n-\neffective only when stocks held on\nU.S.S.R. account are reduced to two\nmonths' requirements. At present,\nstocks total more than five months?\nrequirements and no liftings are\n13\nFerrochrose\nS.T.\n-\no\no\n-\n-\n-\ncurrently taking place. In couse-\nquance, BP allocation - made 1a\nOctober and seas is planned for\nthe imediate future. Novever, at\nthe request of the U.S.S.R., supply\nof 1,120 S.T. of ferrosolybdenna,\n224 S.T. of ferrovanation, and 540\nTotal Ferro-Alloys\nS.T.\n-\no\no\n-\n#\n.\n5.7. of ferrotungsten has been\nauthorised as substitutions for\nshipments of ferrosilicon and\nferrochrose.\n4\nALLOT STEEL\n16\nPolished Drill Roda\n3\nHigh Speed\n1.9.\n96\n9\n42\nlala\n133\n$\n0\nOther Alloy\nS.T.\n5\n5\na\n56\n170\n20\n17\nHigh Speed Tool Steel\nS.T.\n4,480\n698\n2,479\n55\n167\n2,001\n18\nTool Steel\n1\nAlloy X12\nS.T.\n672\n73\n292\n43\n130\n380\nC\nAlloy X12%\nS.T.\n672\n85\n296\nF\n133\n374\nD\nOther Alloys\nS.T.\n4,850\n511\n2,232\n2,618\nThe revision is the Third Protocol\nalloy production program nada -\n19\nCold Finished here\nS.T.\n11,200\n1,493\n4,270\n38\n115\n6,930\ncensury by changes in Seviet steel\nrequirements has been completed.\nThe DEV program 1a - 1s shown is\n20\n1.1. Alloy Bare and Billets\nS.T.\n67,267\n6,945\n21,363\n32\n97\n45,904\ncolumn one.\n23\nStainless Steel\n1-3\nSheets and Strip\nS.P.\n3,007\n523\n1,361\n45\n136\n1,6%\nc\nBare\n5.9.\n756\n95\n212\n25\n65\n5%\n25\nSteel Vire\nA\nBall Vire\n1.7.\n1,344\n145\n762\n57\n173\n582\n3\nAlloy 232\nS.?.\n1,344\n$\n346\n%\n79\n998\nc\nOther Alley\n5,7,\n0\no\n191\n-\n(191 Excess)\nSECRET\n3\n- Main -\nRegraded Unclassified\nSECRET\nI\n- 4\n1\nPro-\nItem\nUnit\n3rd\nHade Available\nMnde Available\nPercent of\nRatio of\nBalance to be\nComments\ntocol\nProtocol\nat Mill in U.S.A.\nat Mill is U.S.A.\n3rd Prot.\nActual\nProduced\nItem\nProduction\nOct. 1, 1943 -\nJuly 1, 1943 -\nProgram\nDeliveries to\nas of Nov. 1, 1943\nNo.\nProgram\nOct. 31, 1943\nOct. 31, 1943\nCompleted\nProt.Sched.\nTo Complete\nas of\n(Prot,Sched,=100)\n3rd Protocol\nNov. 1, 1943\nProd. Program\n-\nALLOT STEEL (Continued)\n27\nSteel Alley Tubee\nA\n18% Cr. - 85 31.\nS.T.\n99%\n39\n391\n39\n118\n603\n3\n-65 Chrone\nS.T.\n8,625\n996\n3,236\n38\n115\n5,389\n0-1\nCarbon .5% Moly., Pine Sixes\nS.T.\no\no\n9\n-\n-\n(9 Excess)\n,\nH.R. Ball Bearing Tubee\nS.T.\n5,376\n668\n1,381\n26\n79\n3.995\n26\nStainless Steel Wire\nS.T.\n1,747\n138\n641\n37\n112\n1,106\nSee preceding page for comments,\n29\nSpecial Alloy Vire\nS.T.\n784\n112\n465\n59\n179\n319\nTotal Alloy Steel\nS.T.\n113,259\n12,606\n39,996\n35\n106\n73,263\nCARBON STEEL\n101-8 fails, Accessories and Other\nS.T.\n-\n20,464\n83,600\n-\n-\n-\nRailway Material\n-\n10\nCoyour Clad Strip (Nimetal)\nS.T.\n-\no\no\n-\n-\n.\nThe breakdown by shapes of the\n16A\nPlain Carbon feel Steel and\nS.T.\n-\n732\n2,848\n-\n-\n-\nThird Protocol production pro-\n& 18A\nDrill Red\n(TM for carbos steel is being\nadjusted from quarter to quar-\nter in accordance with change\n190\nPlais Carbon Pullet Core\nS.T.\n-\n2,198\n8,485\n-\n-\n.\ning Seviet needs. The over-all\nprogram realize 385.397 s.f.\nless 40,000 S.T. of rails be\n24\nTimplate\nS.T.\n-\n4,048\n14,162\n-\n-\n-\ning supplied by Canada on U.S.\naccount,\nOther Carbon Steel\nS.T.\n-\n3.712\n18,607\n-\n-\n-\nTotal Carbon Steel\nS.T.\n345.397\n31,154\n127.703\n37\n112\n217,694\nCHEMICALS\nA total of 12,000 S.T. - of-\nfored, but the offer vas con-\nditional upon stocks being -\nduesd to a reasonable level.\nStocks have continued excess-\n36\nPhenol\n8.7.\n1,796\no\n1,796\n100\n303\n0\nIve and the offer la consider-\ned inoperative except insefar\nas shipments have been\nagainst requisitions carried\nover from the Second Protocol\npariod.\nSECRET\nRegraded Unclassified\nSECRET\n- 5\nI\nI\nMy\nhim\nM\nPro-\nItem\nUnit\n3rd\nMade Available\nMade Available\nPercent of\nRatio of\nBalance to be\nComments\ntocol\nProtocol\nat Mill in U.S.A.\nat Mill in U.S.A.\n3rd Prot.\nActual\nProduced\nItem\nProduction\nDet. 1, 1943 -\nJuly 1, 1943 -\nProgram\nDeliveries to\nas of Nov. 1, 1943\nNo.\nProgram\nOct. 31, 1943\nOct. 31, 1943\nCompleted\nProt.Sched.\nTo Complete\nas of\n(Prot.Sched,*100)\n3rd Protocol\nNov. 1. 1943\nProd. Program\nCHEMICALS (Continued)\nA total of 3,360 S.T. vas offered,\nbut the offer vas conditional upon\nstocks being reduced to a reason-\nable level, Stocks have continued\n38\nBibylane Glycal\nS.P.\n275\no\n275\n100\n303\no\nexcessive and the offer is com-\nsidered inoperative except tase-\nfar as shipments have been nade\nagainst requisitions carried over\nfrom the Second Protocol period.\nA. total of 6,720 S.T. vas offered,\nbet the offer vas conditional upon\nstocks being reduced to a reason-\nby\nMethanel\nS.T.\n-\n0\no\n-\n-\n-\nable level. Stocks have continu-\ned excessive and, the offer is -\nsidered incperative.\nA total of 6,720 S.T. vas offered,\nbet the offer vas conditional upon\n46\nstocks being refund to a reason-\nUrotropine\nS.P.\n-\no\no\n-\n-\nable level, Stocks have continu-\ned excessive and the offer is coo-\nsidared inoperative.\n6141 Glycerine\nS.T.\n6,720\n5,332\n7.189\n107\n32%\n}\nthe October shipment - made from\n(469 Excess)\nthe U.K. on U.S. account.\n61A3 Censtic Soda\n1.9.\n40,320\n2,879\n16,016\nNo\n121\n24,304\n38A Bibyl Alcohol\nS.T.\n107,520\n3,265\n45,859\n43\n130\n61,661\nThe production program has been\nadjusted to take into account\nthe failure of Sevies representa-\ntives to requisition acetone for\ndelivery during the first four\nmonths of the Third Protocol\nperiod, Except for the 657 1.9.\n6145 Acetose\nI.T.\n5,137\no\n657\n13\n39\n4,480\ndelivered is July against as old\nrequisition, the obligation to\nsupply 2,240 S.T. between July 1\nand October 31 is considered -\ncelled. During the reminder of\nthe Protocol period production is\nscheduled to average 560 I.T. per\n1\nSECRET\n£\negraded Unclassified\n- 6\nSECRET - - Istra\nTro-\nItem\nUnit\n3rd\nMade Avgilable\nMade Available\nPercent of\nRatio of\nBalance to be\nComments\ntocol\nProtocol\nat Mill in U.S.A.\nat Mill in U.S.A.\n3rd Prot.\nActual\nProduced\nItem\nProduction\nOct, 1, 1943 -\nJuly 1, 1943 -\nProgram\nDeliveries to\nas of Nov. 1, 1943\nNo.\nProgram\nOct. 31, 1943\nOct. 31, 1943\nCompleted\nProt.Sched.\nto Complete\nas of\n(Prot.Sched.=100)\n3rd Protocol\nNov. 1, 1943\nProd. Program\nCERVICALS (Continued)\n61A\nOther Chemicals\nS.T.\n12,096\n813\n1,690\n14\nNo\n10,406\nTotal Chestcals\nS.P.\n173,864\n12,209\n73,482\n42\n127\n100,382\nMARITE AND SUBMARINE CABLE\n1\nMarine Cable\nIX,\n1,200\n14\n167\n14\nbe\n1,033\n2\nSubserine Cable\nD.\n600\n0\n119\n20\n61\n481\nTotal Marine and Dobearine\nIX.\n1,500\n14\n286\n16\nlus\n1,514\nCable\nPOVER AND RELATED CANLE\n7%\nInvulated Cable and Vire\n8,9.\n-\n1,132\n6,728\n-\n-\n-\n(Copour Content)\nBecause of excessive stocks, the\nThird Protocol production schedule\nThe\nhere Cable and Wire\ns.r.\n-\n453\n462\n-\n-\n-\nof power and related cable has\n(Copper Content)\nbegs reduced from 41,516 S.T.\ncopper content to 21,000 S.T.\nTotal Pover and Related\nS.P.\n21,000\n1,585\n7,190\n34\n103\n13,810\nCable\nis\nWISCELLANEOUS MATERIALS ITEMS\nso\nSheet Fibor\nS.T.\n1,000\n266\n986\n99\n300\n14\nthe date no requisitions have\n83\nParchment Paper\nS.T.\n1,680\n0\no\no\no\n1,680\nbeen submitted by Seviet repre-\nsentatives.\nBecause of dalays in the nb-\nmission of requisitions by Seviet\n83A\nCondenser Paper\nS.T.\n146\no\no\no\no\n146\nrepresentative, production of\ncondensor paper cannot be sched-\naled to begin before Jamary 1,\n1544.\n638\nCigarette Paper\n1.9.\n336\nto date as requisitions have\no\no\no\no\n336\nbeen submitted by Series repry-\nsentatives,\n35\nOther Materiale and Their\n# 5,000,000\n-\n.\n-\n-\n-\nProducts\nSECRET\nIslan\ntegraded Unclassified\nSECRET\n- - - Interne Md\nPro-\nliem\nDatt\n3rd\nMade Available\nMade Available\nPercent of\nRatio of\nRelance to be\nComments\ntocal\nProtocol\nat Mill in U.S.A.\nat Mill in U.S.A.\n3rd Prot.\nActual\nProduced\nItem\nProduction\nOct. 1, 1943 -\nJuly 1, 1943 -\nProgram\nDeliveries to\nas of Nov. 1, 1943\nNo.\nProgram\nDet. n. 1943\nDet. 31, 1943\nCompleted\nProt.Sched.\nTo Complete\nas of\n(Prot.Sched.*100)\n3rd Protocol\nNov. 1, 1943\nProd. Progres\nINDUSTRIAL AND RELATED EQUIPMENT\n154\nCommited Carbide Tips and\n#\n3,000,000\n3,267\n746,744\n10\n76\n2,253,256\nor the several industrial equipment\nBlacks\nprograms included is the Third Pro-\ntocol Schedule, all production en\nrengesents have been made in the\n153\nfaall Outting Tools\n$\n15,000,000\n862,821\n3,438,838\n23\n70\n11,561,162\ncase of Machine Tools, Forging Press-\n\" and Numero, Recemators, Mining\nEquipment, Welding Equipment, Bear-\n150\nMeasuring Tools\n$\n3,000,000\n68,546\n405,223\n14\n42\n2,594,777\nings. Power Generating Equipment,\nBlock Signal Equipment, and Auxill-\nany Industrial Equipment. In the\n67B\nAbrasive Products\n$\n4,000,000\n572,370\n1,796,902\n45\n136\n2,203,098\ncase of Comented Carbide Tips and\nBlanks, Small Outting Tools, Neasur-\nIng Tools, Control Instruments and\nTesting Nachines, Electric Pursaces,\n62\nMachine Tools\n$ 120,000,000\n8,990.750\n45,127,650\n38\n115\n74,872,350\nCompressors, Pumps, and Cranse, coo-\nsiderable progress has recently been\nmás in rounding out programs, but\n63\nElectric Purnaces\n$\n12,000,000\n422.557\n1,870,209\n16\nw\n10,129,791\nsubstantial portions of the new or\ndars offered under the Third Proto-\ncel still sensin to be placed. Be-\na\nHolling Mille and Desipent\n$ 16,000,000\n129,248\n541,417\n3\n9\n15,458,583\ncause of this delay in the submise-\nSon of requisitions, 11 appeare that\nin the chose of at least two of these\n9a\nPresses, Forges, Samers and\n$ 30,000,000\n1,897,800\n8,130,300\n27\n62\n21,869,700\nItems - pumps and cranse - it will\nnot be possible to produce before\nRelated Squipment\nJune 30. 1944 the entire quantity\n7\nprocised under the Third Protocol.\n64c\nWire Draving Equipment\n$\n2,000,000\n23.757\n23.757\n1\n1,976,243\nA part of the totals offered will\n3\nconsequently probably have to be\ncancelled or taken up with substi-\ntate equipment. In the case of\n65\nTarious Industrial Agaipment\n$ 120,000,000\n15,201,793\n51,336,404\nky\n130\n68,663.536\nBelling Mill Equipment, Wire Draw-\ning Equipment, Equipment for Blast,\nHearth, and Coke Purnaces, and Valves\n66\nControl Inst. and Testing\n$\n1,700,000\n37.997\n410,103\n24\n73\n1,269,897\nand Pittlage, Soriet representatives\nMachines\nhave not as yes submitted programs\nfor inclusion is the Third Protocol\nschedule. Since less than two-thirds\n69-70\nAnti-Priction Bearings\nI\n15,000,000\n677.999\n3,251,943\n22\n67\n11,748,057\nof the Third Protocol period reasins\nfor the production of these Items,\nit can be assumed that full Third\nProtocol offers casnot be fulfilled\n111\nBlock Signal System\nI\n14,591,500\n69,068\n258,175\n2\n6\n14,333,325\nby June 30. and that a part of the\ntotals originally promised will have\nto be cancelled or used for substi-\n140\nPower Equipment\n#\n75,000,000\n6,314,783\n23,949,611\n32\n97\n51,050,349\ntate equipment, It is planned to\ninclude in the December report .\ncomprehensive statement of the for\nTotal Industrial and Related\n# 431,291,500\n35,312.756\n141,287.336\n33\n100\n290,004,164\ntailed status of the several Into-\nBruipment\ntrial equipment program.\nSECRET\n- - Mr - M\nRegraded Unclassified\nSECRET\n- - Mober Exploses M\nPro-\nItem\nUnit\n3rd\nMade Available\ntocol\nMade Available\nPercent of\n- Ratio of\nProtocol\nat Mill in U.S.A.\nBalance to be\nItem\nAS Mill is U.S.A.\nComments\n3rd Prot.\nActual\nProduction\nOct. 1, 1943 -\nProduced\nNo.\nJuly 1, 1943 -\nProgram\nDeliveries to\nProgram\nOct. 31, 1943\nas of Nov. 1, 1943\nOct, 11, 1943\nCompleted\nProt.Sched,\nTo Complete\nas of\n(Prot.Sched,4100)\n3rd Protocol\nNov. 1, 1943\nProd. Program\nMISCELLAWEOUS EQUIPMENT ITEMS\n67A\nAbrasive Grain\nS.T.\n4,000\n189\n1,663\n42\n127\n2,337\n68A\nOraphite Electrodes\nS.T.\n5.757\n442\n1,857\n32\n97\n3,900\n6m\nOther Graphite Goods\nS.T.\n1,691\n118\n439\n26\n79\n1,252\n680\nGranhite Powder\nS.T.\n1,120\n241\n697\n62\n188\n423\n76\nTires, Tubes, Other Rubber\nS.T.\n40,320\n3,500\nProducts (ltaber Content)\n12,905\n32\n97\n27,415\n82\nMetallic Cloth and Screen\n$ 1,000,000\n14,847\n164,010\n16\n&\n835,990\nThe U.S. has offered to supply -\nto $25,000,000 of leorgency Maly-\nnest provided the Seviet Govern-\nglu\nment certifies the need for parti-\nReergency Equipment\n$ 25,000,000\n-\ncular Items totaling this anount,\nand provided specifications are\nacceptable to the V.P.I. So for\nfew requisitions have been placed\nunder this category, Because of\nlead factors, no deliveries took\nplace against these is October,\nVar Production Board\nForeign Division\nReview and Analysis Branch\nNovember 15, 1943\nSECRET\n- Policiente Rober - M\nRegraded Unclassified\n45\nBRITISH air COMMISSION\n1785 MASSACHUSETTS AVENUE\nWASHINGTON, D. C.\nTELEPHONE HOBART 9000\nPLEASE QUOTE\nREFERENCE NO\nWith the compliments of british Air Commission\nwho enclose Statements Nos. 111 and 112 - Air-\ncreft Despetched -- for the weeks ended November 9th\nand November 16th respectively.\n+he Honourable Henry Morgenthau, Jr.\nSecretary of the Treasury\nWASHINGTON, D.C.\nNovember 22, 1943.\nRegraded Unclassified\n46\nMOST SECRET\nSTATEMENT N0,111\nAircraft Despatched from the United States\nWeek Ended November 9, 1943\nASSEMBLY\nBY\nBY\nFLIGHT DELIVERED\nTIPE\nDESTINATION\nPOINT\nSEA\nAIR\nFOR USE IN CANAD\nBOXING\nOctaline IV\nU.K.\nU.K.\n2\nCONSOLIDATED\nLiborator III\nM.E.\nE.B.\n4\nLiberator III\nIndia\nIndia\n3\nLiberator GR V\nU.K.\nU.K.\n2\nLiborator B VI\nIndia\nIndia\n2\nLiberator GR VI\nU.K.\nU.K.\n3\nDOUGLAS\nDakota III\nU.K.\nU.K.\n1\nkota III\nIndia\nIndia\n2\nDakota III\nU.E.\nU.E.\n1\nGLEAR MARTIN\nBeltimore V\nU.E.\nB.E.\n5\nMarauder II\nU.E.\nM.E.\n1\nEariner GR I\nU.K.\nU.K.\n2\nVESA\nVentura GR V\nS. Africa\nS. Africa\n1\nVentura GR V\nII. East\nE. East\n4\nNo American\nNitchell II\nU.X.\nU.K.\n20\nHarvard\nNew Zealand\nWellington\n1\nHorverd\nS. Africa\nCapetown\n6\nlisteng\nU.K.\nU.K.\n13\nRIRGHILD\nFairchild C 61\nU.S.\nAlexandria\n15\nFarichild C 61\nN.W. Africa\nCasablanca\n9\nGRUNDAN\nTarpon\nU.K.\nU.K.\n4\nTarpon\nS. Africa\nCapetown\n10\nSTINSON\nlient\nU.K.\nU.X.\n14\nRegraded Unclassified\n47\nCOST SECRET\nSTATEMENT NO.111\ncont'd\nASSEMBLY\nBY\nBY\nFLIGHT DELIVERED\nTYPE\nDESTINATION\nPOINT\nSEA\nAIR\nFOR USE IN CANADA\nCURTISS\nKittyhawk\nAustralia\nSydney\n20\nMohawk\nIndia\nBombay\n8\nNOORDUYN\nHarverd\nIndia\nBombay\n5\nVULTEE\nVengeance\nAustralia\nSydney\n1\nTotal:\n106\n53\no\nNOTE:\nIn Statement No. 109 of November 1st please note that 22 Baltimore V to M.E. should rest\n21 Baltimore V and 1 Mitchell II to M.E.\nMovements Division\nBritish Air Commission\nNovember 13, 1943.\nmmh\nRegraded Unclassified\n48\nMOST SECRET\nSTATEMENT NO.112\nAircraft Despatched from the United States\nWook Ended November 16th, 1943\nASSEMBLY\nBY\nBY\nFLIGHT DELIVERED\nDESTINATION\nPOINT\nSEA\nAIR\nFOR USE IN CANADA\nTIPE\nCONSOLIDATED\nLiberator III\nM.E.\nM.E.\n1\nLiberator B VI\nU.K.\nU.K.\n1\nLiberator B VI\nIndia\nIndia\n2\nDOUGLAS\nDakota III\nN.E.\nM.E.\n2\nDakota III\nIndia\nIndia\n4\nGLENN MARTIN\nBaltimore V\nM.E.\nM.E.\n16\n\"ariner GR I\nU.K.\nU.K.\n2\nNORTH AMERICAN\nMitchell II\nU.K.\nU.K.\n1\nHarvard\n8. Africa\nCapetown\n18\nHarvard\nIndia\nKarachi\n10\nMustang\nU.K.\nU.K.\n18\nVEGA\nVentura GR V\nU.E.\nU.K.\n1\nVentura GR V\nM.E.\nM.E.\n12\nVentura GR V\nS. Africa\nS. Africa\n1\nFAIRCHILD\nCornell\n8. Rhodesia\nCapetown\n22\nVULTEE\nVengeance\nAustralia\nSydney\n3\nCURTISS\n:\nKittykawk\nAustralia\nSydney\n2\nKittyhawk\nN.W. Africa\nCasablanca\n50\n\"RUMMAN\nJpon\nU.K.\nU.K.\n6\nTarpon\nIndia\nMombasa\n8\nTarpon\nCeylon\nColombo\n6\nMartlet\nCeylon\nColombo\n14\n$\nSTINSON\nReliant\nU.K.\nU.K.\n6\nMovements Division\nBritish Air Commission\nTotal\n153\n43\n0\nNovember 19, 1943.\nRegraded Unclassified\nDEPARTMENT OF STATE\nWASHINGTON\nNovember 22. 1943\nMy dear Mr. Secretary:\nI am in receipt of a communication from the\nAmerican Ambassador at Montevideo stating that your\nmessage of condolence to President Amezaga on the\noccasion of the death of the Uruguayan Finance Minister,\nRicardo Cosio, was delivered through the Uruguayan\nForeign Office.\nIn reply the Uruguayan Minister of Foreign Affairs\nhas requested Ambassador Dawson to transmit through\nthe Department an expression of President Amezaga's\nappreciation of your thoughtful attention.\nSincerely yours,\nThe Honorable\nHenry Morgenthau, Jr.,\nSecretary of the Treasury.\nU\nRegraded Unclassified\n50\nTELEGRAM SENT\nPLAIN\nNovember 2, 1943\nANEMEASSY,\nMONTEVIDEO.\n538, Second\nFROM SECRETARY MORGENTHAU FOR PRESIDENT\nJUAN JOSE AMEZAGA OF URUGUAY.\nQUOTE I have just been informed of the\nuntimely death of Finance Minister Ricardo Cosi:\nand wish to EXPRESS to you and to your official\nfamily my feeling of sympathy and condolence.\nI am sensible of the loss suffered by the United\nStates as well as by the Republic of Uruguay.\nUNQUOTE.\nSTETTINIUS\n(Acting)\n(FL)\nFD: L:\nRegraded Unclassified\n51\nNOT N BE 826-TRANSMITTED\nJ.D. SECRET\nCOPY Id\nBRITISM JOST SECRE.\nOPTEL No. 382\nTREASURY DEPARTMENT\n12\n1943 NOV 23 PM 2\nSECRETARY OF TREASURY\nOFFICE\nInformation received up to 10 A-M. 22nd llovembo\n1. JAVAN\nUne of 4.2. Frightes escortin, homevacy convoy est (3) Bay of SISCAY\nAV. \" 000-1 The attack an - T-boat 20th/21st.\nTo medium rize. incredint ship. in thi, c-nvoy nave since been hit durin_\n- ,lider bumb attach. 442 It 11/10 MAS Lost (miniser to E-pout) sunk its German\noccorn off -nd arrived to un Allied poet on 19th,\n- dialTARY\nItely To noon 21st. Continued heavy rein hindored operation. on extraise\nright vioiont encountery between pati In more of 8th\nDivision prevented crumin, river y FLORE Jth/21st.\nBurns 16th. noout IN J <ponose crossed che SAD IN into YU4RAN.\nAAR OPERATIONS\nItaly 19th. 9J 1,41 4.1 Fighter numbers intackna dommunications 120\ntermsport in and behind the nattle are,\n19th/20th. dom.nitoes subsched the religy centros at PABLIA nd.\nDamaging 5 uning.\nand rych. 2c fighter boubern netacked tran port it\nStuil, METHOVIC and FIEE (South cst of\nRegraded Unclassified\n52\nNovember 23, 1943\n9:30 a.m.\nTAXES\nPresent: Mr. Bell\nMr. Sullivan\nMr. Blough\nMr. White\nMr. Gaston\nMr. Haas\nMr. Smith\nMr. Tickton\nMr. Lindow\nMr. Surrey\nMr. Tietjens\nMrs. Klotz\nH.M.JR: You know about Paul arranging to talk about\nthe tax bill. I asked him to arrange it Friday for a\ngroup for Wednesday.\nMR. BLOUGH: He told me yesterday that you asked to\nhave a group meet, but he didn't say anything about when\nit was going to meet, and he suggested I get in touch\nwith you to find out.\nH.M.JR: I asked him definitely please to have it.\nI wasn't coming. I talked with him either Friday or\nSaturday and asked him to do the thing.\nMR. BLOUGH: I didn't check with his office this\nmorning, but yesterday I had the impression that he didn't\nhave a definite hour.\nH.M.JR: I talked to him either Friday or Saturday\nand asked him to do this thing.\nMRS. KLOTZ: Maybe his secretary knows something\nabout it.\nRegraded Unclassified\n53\n- 2 -\nH.M.JR: Ask her to step in, will you, please? (Klotz)\nI'm terribly disappointed at the staff's having done\nsomething for me on my statement on the tax bill--I mean,\nthe stuff that I got is just terrible. Now this thing,\n\"Answers to Criticisms,\" I don't know who wrote it, but\nmy God, I'd be ashamed of it! It is the darndest thing\nI ever saw. There are no answers. I don't know who\nwrote it. The result is I am going to have to burn\nmyself out this week. You fellows are going to have to\nwork every night and everything else. It just isn't an\nanswer. I mean, there are four pages of nothing.\nMR. BLOUGH: Did you talk to Mr. Smith?\nMR. SMITH: Good morning, Roy!\nH.M.JR: This isn't Smith, this is Henry Morgenthau, Jr.\nI haven't even talked to Smith, 80 don't rope him in for\nmy remarks.\nMR. BLOUGH: I beg your pardon; I didn't mean that.\nI thought Smith and I had this thing fairly well talked\nover.\nMR. SMITH: I got your memos. Louis Shere brought\nthem down, but they are still sketchy.\nMR. BLOUGH: I was under the impression you didn't\nwant to get started until today.\nH.M.JR: I asked a couple of weeks ago for answers\nto criticism, and I got the memo. (Refers to Memorandum\nof November 8, \"A Summary of Points in Rebuttal\")\nMR. WHITE: Is this to be a speech or 8. memo?\nH.M.JR: A statement before the Tax Committee,\nanswering them on this business.\nMR. WHITE: Well, I don't think this document was\nintended for that. (Reads memorandum) It begins, \"A\nSummary of Points in Rebuttal.\"\nH.M.JR: That is what I am talking about.\nRegraded Unclassified\n54\n- 3 -\nMR. WHITE: I gather from the form that it wasn't\nintended -\nH.M.JR: Just as a rebuttal. But as a rebuttal, I\nsay it is lousy--so that nobody can misunderstand me--\nbecause the result is you fellows are just going to have\nto work day and night, now, the rest of the week.\nGet me Miss Chauncey in here, will you, please?\n(Klotz)\nNow, I called up Bell yesterday and Haas last night.\nThe first thing is to have an answer to this statement\nabout the War Department saving thirteen billion dollars,\nand everybody can quit. Now, Haas got interested in it\nyesterday, as I understand. I asked Bell, and I under-\nstand that this question of inflationary gap is Haas'\nresponsibility.\nMR. HAAS: We have been doing something on it.\nH.M.JR: Now the statement has been out for 8. week\nor ten days. It is too bad you didn't get the idea ten\ndays ago, but you got it yesterday. I give you credit\nfor that, but it has been kicking around town. Nobody\nhas answered it. I don't blame anybody. What I am\nsaying this morning - -\nGood morning. (Miss Chauncey enters room) I'd like\nMr. Paul's memorandum - the rebuttal. (Miss Chauncey\nleaves room with the Secretary's briefcase)\nI don't blame anybody but me. Nobody has been\ntalking to me. Now, George, do you want me to call up\nMr. Patterson and find out who in the War Department can\ngive us this stuff?\nMR. HAAS: I think the suggestion made to me over\nthe phone last night to write Stimson a letter - -\nH.M.JR: It has taken weeks. I have got to have\nthis, George. I mean, this thing has been out for ten\ndays.\nMR. HAAS: I'm afraid they'll just give us the run-\nRegraded Unclassified\n55\n- 4 -\naround. Stacy May said that he is making contact, and\nI called up the Budget, Colm, about it. He is coming\nover Wednesday. The thing is very confused in his mind.\nI don't know--I'll try, anyway, but I'm afraid you won't\nhave something that you can use publicly.\n(Miss Chauncey re-enters room and hands document to\nthe Secretary)\nMR. BELL: It may be that my boys have something\non it, because the morning it came out in the paper, I\nstarted and asked about it. I asked Stacy May if he had\nanything on it. He said, \"No, I'll have something Monday\nfor you.' He said he got the same impression that I\ndid, that it is a bookkeeping transaction.\nI called the Budget, and they didn't have anything\ndefinite on it. I have my boys starting to see if it\nwill affect expenditures in '44 and changing the financing\nestimates accordingly. My impression is that it will\nnot change them one dollar.\nH.M.JR: You did start it?\nMR. BELL: Yes, the day it was in the paper.\nH.M.JR: Do you want to get that? (Mr. Bell leaves\nroom)\n(Over inter-phone) Get me the Under Secretary of\nWar, Mr. Patterson, please.\nDoes this come out of your shop? (Questions Mr. Blough\nconcerning undated rough draft of letter to the Secretary\nof War, copy attached.)\nMR. BLOUGH: Yes.\nMR. HAAS: It seems to me, Mr. Secretary, if you\nhad this information from somebody in authority you\nwould have the answer.\nH.M.JR: That is all right, if he insists on a\nletter, but I haven't got time. And the thing I want,\nHerbert, is this: I want the answer to the question of\nRegraded Unclassified\n56\nNovember 23, 1943\n9:39 a.m.\nHMJr:\nHello.\nOperator:\nMr. Patterson.\nRobert\nPatterson: Hello.\nHMJr:\nHello. Bob?\nP:\nHenry.\nHMJr:\nGood morning. I need a little help from you.\nP:\nYeah.\nHMJr:\nSometime in the last ten days somebody in the\nWar Department said you were going to turn back\nto the Treasury $13 billion.\nP:\nUh\nHMJr:\nNow, could I just explain what I need?\nP:\nYeah.\nHMJr:\nI've got to appear Monday on the Hill in connection\nwith the tax bill and, of course, since the -- that\nstatement has been accredited to the Army, if they\nsay, \"Well, there's no danger and the inflationary\ngap 18-- does reduce -- has been reduced\" -- and all\nthe rest of that tripe. Now\nP:\nWe never -- we never said we were returning it.\nWhat we said, I believe, was this - I was up there.\nHMJr:\nYeah.\nP:\nWe said, \"We are placing -- I think it came to\n$13 billion, in a reserve which we will release\nto the services of the War Department only on\npermission and clearance from the Bureau of the\nBudget.\"\nHMJr:\nWell, the point\nP:\nSo that it is funds appropriated to us that we\nwill not use except on approval of the Bureau\nof the Budget. Now, I think that's what we did.\nRegraded Unclassified\n57\n- 2 -\nHMJr:\nWell, that 18 -- that helps, but he -- has the\nSecretary of War or the General Staff got a\nstatistical section that could help us....\nP:\nYes.\nHMJr:\nprepare an answer that we could get out\nFriday?\nP:\nYes.\nHMJr:\nI mean -- are there two separate statistical\nsections, one for the Secretary of War and one\nfor the General Staff?\nP:\nNo. The General Staff have a Budget Office\nunder General Richards.\nHMJr:\nYes.\nP:\nNow, the Army Service Forces have most of the\nfiscal matters. That Budget Office is a small\noutfit.\nHMJr:\nYeah.\nP:\nThat's under General Carter. You know him.\nHMJr:\nYeah. Well, now\nP:\nWho do you want to get in touch with there?\nHMJr:\nI want to get in touch with whoever has the\nmost intelligent fellow, who's got the most\nauthority. That's what I want.\nP:\nI think I'll send you both of them. Then you\nare sure to have the right one. Uh -- who do\nthey get in touch with?\nHMJr:\nWell, I think -- well ,the man here who's handling\nit is -- is Dan Bell.\nP:\nBell? I'll have them get in touch with Bell\ntoday.\nHMJr:\nToday?\nP:\nYes, sir.\nRegraded Unclassified\n58\n- 3 -\nHMJr:\nThat is Carter?\nP:\nAnd Richards.\nHMJr:\nAnd Richards.\nP:\nI think Richards is the man but I'll get Richards\nto call Bell up right away.\nHMJr:\nAnd what I may need is -- I may need when I get\nthrough -- is a statement over the signature of\nthe Secretary of War.\nP:\nYep.\nHMJr:\nSee?\nP:\nYep.\nHMJr:\nBecause this thing, you see -- well, you've seen\nthe papers -- the use they've made of it.\nP:\nYep.\nHMJr:\nIt's just floored us.\nP:\nYep.\nHMJr:\nNow, the Navy isn't doing anything along these\nlines, are they?\nP:\nI understood that they were being pressed to and\nwere doing it, but -- uh -- haven't done it yet.\nHMJr:\nWell, that would be Jim over there? Jim....\nP:\nJim Forrestal, I'd say.\nHMJr:\nYeah.\nP:\nYeah.\nHMJr:\nWell, you will tell General Carter and General\nRichards to contact Bell?\nP:\nI will, right away.\nHMJr:\nAnd -- but I'm looking forward to getting a\nstatement out over the signature of the Secretary\nof War.\nRegraded Unclassified\n59\n- 4 -\nP:\nYep.\nHMJr:\nThank you 80 much.\nP:\nAll right, Henry.\nRegraded Unclassified\n60\n- 5 -\ninflationary gap no longer being & danger. I want it\nanswered in the paper by Saturday morning, so that the\ncountry can be prepared, and say, \"Why didn't somebody\ntell us this?\" And 50 that I don't have to take it\nmyself, Monday. I can't handle it all.\nBut my thought was, if we could get this stuff--have\na press conference. I'll call up Fred Vinson and ask\nhim whether he wants to do it, 80 he can't--. If he\nthinks it's his private baby, okay, he can have it. But\nif he doesn't, we can have it in the Treasury and have\nit in the paper Saturday morning.\n(The Secretary held a telephone conversation with\nthe Under Secretary of War, Mr. Patterson)\n(To Mr. Bell) He says this, that they never said\nwhat the paper said they did; that they would simply put\nin reserve thirteen billion dollars which they would\nonly use on the okay of the Bureau of the Budget.\nMR. GASTON: That is what the New York Times story\nsaid, precisely.\nH.M.JR: Now, what I asked for was who was the man.\nI asked, \"Has the Secretary of War a separate office in\nthe General Staff?\" He said, \"That is General Richards.\"\nI said, \"I want the most intelligent man with the most\ninfluence in the War Department. He said, \"I don't\nknow; I'll send both.\" He asked whom to see. I said,\n\"Bell.\" George wanted you to have it, 30 you go ahead.\n(To Mr. Blough) I wish you had come back with some\ncarnation pink cheeks, instead of looking the way you do!\nMR. BLOUGH: There's only one trouble with me--I\nhaven't had any breakfast. That is all right. The train\nwas crowded. I had just gone out when you called me.\nDon't worry about me.\nH.M.JR: What do you eat for breakfast? Just coffee\nand toast? Would that help?\nMR. BLOUGH: Please don't bother.\nH.M.JR: I do, because I want to jump on you! (Laughter)\nRegraded Unclassified\n61\n- 6 -\n(Secretary orders breakfast for Mr. Blough)\nMR. HAAS: Now I'm sure you don't want any breakfast!\nMR. GASTON: He needs ham and eggs and hot cakes, now!\nMR. SULLIVAN: The condemned ate a hearty breakfast!\nMR. BLOUGH: Go ahead and jump; I'll take anything\nyou can give me.\nH.M.JR: Well, Dan, now let me get hold of Forrestal.\n(The Secretary places call for Mr. Forrestal)\nMR. BELL: He has five million in the picture.\nMR. GASTON: I think we ought to have somebody from\nthe Budget in here when the Army man is in.\nMR. WHITE: That is a very strange step. Don't\nthey ever spend money that isn't approved by the Budget\nBureau? And what do they mean by turning over this and\nsaying they won't spend it unless approved?\nMR. BELL: The Budget Bureau has a regulation out--\nand I might say I'm responsible for it--requiring the\nDepartments to place large sums of money in reserve which\nthey can't get released without prior approval of the\nBudget. They can't obligate it. There is a lot of this\nmoney, and it has been appropriated in just such a reserve.\nMR. WHITE: Is that something that is done every year?\nHow much did they set aside last year?\nMR. BELL: I don't know, but the last year that I\nwas in the Budget we saved millions of dollars by putting\nit away in reserve and releasing it as and when emergency\ncame along.\nMR. WHITE: Do they spend most of what they put in?\nMR. BELL: This eleven billion dollars has been\ninformally approved by the Bureau of the Budget to go in\nreserve, and there is B two billion dollar additional\nitem under discussion, which makes the thirteen billion\ndollars. It affects the Air Corps and the pay of the\nRegraded Unclassified\n62\n- 7 -\nArmy, the Signal Corps, the Medical Department, and the\nOrdnance.\n(The Secretary held a telephone conversation with\nCharles F. Detmar, Jr., Office of the Secretary of the\nNavy)\nWe also discussed with the Bureau of the Budget as\nto what effect this might have on the expenditure program,\nand Mr. Colm and Mr. Loeffler said that they had under\nconsideration revising their estimate of expenditures,\nbut that the figures that we had been using in our\nfinancing program were just about what they were thinking.\nThey thought the war expenditures would run between\nninety and ninety-five billion. We have been using\nninety-two and a half.\nThis thing can't be so far off as far as the War\nDepartment is concerned, because when they came into\nthe fiscal year they had fifty-four billion dollars of\nunliquidated obligations; that is, the contract obli-\ngations on the books on June 30 which had not been paid\nfor. And they had unobligated balances of fifteen\nbillion brought over, and they had new appropriations of\nfifty-nine. So the thirteen billion comes out of the\nnew appropriation, in effect.\nH.M.JR: Look, Dan, this is down your county. All\nI can do is to be the spark plug and get everybody around\nhere excited. But if Gaston, Smith, and anybody else\nagree with me or don't agree with me--if this thing could\nbe gotten out a couple of days in advance--which I\ntestify--. Get the country pregared for the thing,\nsee, and get the arguments in the paper. It isn't to\ntake the heat off me; it is a question of education.\nMR. SULLIVAN: Preparing ground for you.\nH.M.JR: That is right, and this is the kind of\nthing. It isn't me; after all, the Bureau of the Budget\nshould take it.\nMR. GASTON: Yes, that is what I was going to say.\nIt should be a quick new summation of the Bureau of the\nBudget.\nRegraded Unclassified\n63\nNovember 23, 1943\n9:45 a.m.\nHMJr:\nHello.\nOperator:\nMr. Forrestal is out of the city until late this\nevening.\nHMJr:\nWell, give me....\nOperator:\nHis legal assistant 18 acting.\nHMJr:\nWho?\nOperator:\nHis legal assistant, Mr. Detmar - D-e-t-m-a-r.\nHMJr:\nThat's all right.\nOperator:\nI'll get him on.\nHMJr:\nHello.\nOperator:\nMr. Detmar.\nHMJr:\nHello.\nOperator:\nGo ahead.\nHMJr:\nMr. Detmar.\nCharles F.\nDetmar:\nGood morning, sir.\nHMJr:\nGood morning. Morgenthau speaking.\nD:\nYes, sir.\nHMJr:\nLook, Mr. Detmar, I want some help from the\nNavy.\nD:\nAll right, sir.\nHMJr:\nI'm getting it from the Army and if you'd be as\ngood as the Army, I'll be satisfied. (Laughs)\nA little competition.\nD:\nAll right.\nHMJr:\nAs you know, the Army was quoted in the papers\nas saying they were going to save $13 billion\nRegraded Unclassified\n64\n- 2 -\nD:\nRight.\nHMJr:\n....with the result that the Congress said, \"Well,\nwe just don't need a tax bill.\" And I've got to\ngo up on the Hill Monday and tell them why we do.\nNow, if the Navy, through whoever your fiscal\nofficer 1s, 18 planning any cuts -- uh -- I'd like\nto know who that person 1s. The Army is giving us\nGeneral Carter and General Richardson.\nD:\nUh huh.\nHMJr:\nAnd whoever the corresponding people are in the\nNavy, if they could work with Mr. Bell today, it\nwould be very helpful so that -- what I'm trying\nto get is a statement from both the Secretary of\nWar and Navy, over their signatures, just exactly\nwhat they are going to do.\nD:\nWhat the cuts are going to be?\nHMJr:\nYeah.\nD:\nAll right. I'll tell you -- I think Admiral Horn\nwould be the man.\nHMJr:\nHe would?\nD:\nLet me check with him and I'll have whoever is\nthe proper person get in touch with\nHMJr:\nDanny Bell.\nD:\nDan Bell?\nHMJr:\nYeah. Looking forward to a statement over the\nsignature of the Secretary of the Navy which I\nwant, and this thing's got to be cleaned up by\nFriday noon.\nD:\nUh huh.\nHMJr:\nSee?\nD:\nYeah.\nHMJr:\nCan I count on you?\nD:\nYou surely can.\n65\n- 3 -\nHMJr:\nThank you 80 much.\nD:\nI'll do it right away.\nHMJr:\nThank you.\nD:\nAll right, sir.\n66\n- 8 -\nMR. WHITE: I think it would be better coming from\nthe Bureau of the Budget. If it came from you it would\nappear you were trying to justify your taxes; whereas, if\nit came from them it is a matter of clearing up facts.\nI think one of the most effective ways of demonstrating\nthe absurdity of that is showing how each of the previous\nyear's sums have been set aside and spent--if they had\ndone that in previous years. I gather from Dan that they\nhave.\nMR. GASTON: There is practically never any appro-\npriation fully spent in the year for which it is appro-\npriated. There are always unexpended balances going\nover from fiscal year to fiscal year.\nMR. BELL: Where they made their mistake, I think,\nis not revising their expenditure estimates in August\nwhen they put out the summation. They thought at that\ntime they were not going to meet the program, but they\ndidn't want to revise the expenditure program, because\nthey thought it might have 8. bad psychological effect\non the country at large.\nH.M.JR: Dan, I have got to go to this funeral,\nand I want you to talk to Harold Smith before I go to\nthe funeral, because I want this in the paper Saturday\nmorning, see?\nMR. BELL: Yes.\nH.M.JR: To prepare the country. And somebody is\ngoing to have to work like hell to get this thing started.\nI want to talk on a few of the tax items. Would you\n(Beil) mind going to your room and getting it started,\nand then come back?\nMR. BELL: I think you had better eliminate me from\nthe funeral, and I'll go on with this.\nH.M.JR: The man died! All right.\nMR. BELL: He won't be listening!\nH.M.JR: Who else goes before Banking and Currency\nhere?\nRegraded Unclassified\n67\n- 9 -\nMR. WHITE: I have been, but he doesn't know me from\na hole in the wall. (Laughter)\nH.M.JR: What a pal!\nMR. WHITE: They just had him appointed Chairman of\nthat Committee on Friday.\nMR. SULLIVAN: He was made Chairman of this Liaison\nCommittee Saturday morning. He was sick the night before.\nH.M.JR: Come on, John, you keep me company.\nMR. BELL: How about Delano, if he is around? He\nwas supposed to take this week off and rest, but he might\nbe a good one to go.\nH.M.JR: (Over inter-phone) See if Mr. Preston\nDelano is in his office, one; and, two, if he is going\nto go to the funeral of Mr. Steagall, he might go with me.\nLet me know, will you?\nMR. FITZGERALD: (Over inter-phone) Yes, sir. He\nwas down at his farm yesterday when I told him. I don't\nknow whether he is back again.\nH.M.JR: All right.\nMR. BELL: He is away for the week, but I think he\nmight come in for that. (Mr. Bell leaves the room)\nH.M.JR: Now, the thing that I am griping about is\nthis. If I am correct, they have been making a lot of\ntalks, approved by Mr. Gaston, about post war inflation.\nI think the figure he is using is sixty billion dollars,\nisn't it? It is piling up; some people use a hundred\nmillion dollars.\nMR. BLOUGH: Yes, in that neighborhood.\nH.M.JR: On page 3 of this memo (Refers to a \"Summary\nof Points in Rebuttal\") it reads: \"4. Would the lowering\nof the exemptions and the repeal of the earned income\ncredit unjustly burden the low-income groups?\nMoreover, the Congress may, if it wishes, make a large\nRegraded Unclassified\n68\n- 10 -\npart of the tax on the low-income groups refundable\nafter the war.\"\nIf he is so worried about the present amount of\nmoney in the hands of the people, and then you add to it\nthe amount which is going to be refundable, he is just\npiling it on. You are just adding to that particular\nworry.\nMR. BLOUGH: Well, there are two things to be said\nabout that. In the first place, we don't need to answer\nevery point. For instance, if you feel that you would\nrather forget about the refundable tax which didn't\ncatch on, anyway, in the House, we'd just drop that out\nof the picture.\nH.M.JR: No.\nMR. BLOUGH: But in the second place it does fit\ninto this post-war problem to this extent, that you can\ndetermine when the money would be paid back after the\nwar, and see that it did not get paid back at a time\nwhen it would add fuel to the fire.\nH.M.JR: There are two things: one is that point,\nand two, I want to raise the question whether we want to\ndo the refundable tax which didn't catch on, anyway.\nI am honest on this.\nMR. BLOUGH: It is not a good memo. I agree to\nthat.\nH.M.JR: Then I'll stop picking. The other thing is\nthat number one, Reduction of Federal Expenditures,\nSubstitute for Tax Program. In the light of what I\nstated here, that is not an answer.\nMR. BLOUGH: We have done a great deal more on that\nsince that memo was written.\nH.M.JR: I'll say one thing more, and then I'll\nquit. I mean, this is the eleventh, and the whole answer\nof my thing is in paragraph one. That is the thing I am\ngriping about--the number one--that you should attempt\nto answer in that number one, which is no answer.\nRegraded Unclassified\n69\n- 11 -\nMR. BLOUGH: May I say, Mr. Secretary, that was\nbased on 8. thirty-five page memorandum. We didn't\nthink you wanted to look at a big memo, and we made a\nvery short summary. Since that time We have done a lot\nof work and we could give you by noon a better answer.\nH.M.JR: That is what I took with me to the country\nto read, and all week-end it has been boiling.\nMR. BLOUGH: I am very sorry.\nH.M.JR: You don't have to be.\nMR. BLOUGH: It is much further along than that, I\nassure you.\nH.M.JR: It is that number one that got me off on\nthe wrong foot--I mean, how you handle that. I am con-\nvinced there is a way to handle it. I am convinced\nthere is an answer, but it isn't there. All right, let's\nfinish.\nMR. BLOUGH: Yes, sir.\nH.M.JR: Now, this is a little thing--or maybe it\nisn't. Who knows what Robert Nathan is doing?\nMR. WHITE: He is in the hospital. He had very bad\nback trouble. They set him to work digging trenches,\nand he went into Walter Reed Hospital. He came out, and\nis now back again. He may be improved. I haven't heard\nfor the last couple of weeks.\nRegraded Unclassified\n70\n- 12 -\nMR. SULLIVAN: I have seen him within two weeks out -\nI think within two weeks - and I thought he looked quite\nwell.\nMR. BLOUGH: I talked to him last week. He was out\nbut he was going right back. He was on 8. ten-hour pass,\nor something like that.\nH.M.JR: Hasn't he been discharged?\nMR. BLOUGH: He may have been by this time. He is\ngoing to Hot Springs, Arkansas, to recover and write a\nbook on the post-war situation for the C.E.D.\nH.M.JR: What is that?\nMR. BLOUGH: Committee on Economic Development.\nH.M.JR: What I am getting at, if the man is well\nenough 30 that he could sit as we do on this thing for\nthe week, and give us the benefit of his brain, that is\nwhat I was thinking about, you see.\nMR. BLOUGH: I don't know whether he has been close\nenough to the situation.\nMR. WHITE: I am sure he would be glad to if he is\navailable.\nMR. BLOUGH: You know him better than I do.\nMR. WHITE: I know him personally.\nH.M.JR: Harry, you call him up. What I wanted, from\nnow until I go on the Hill - couldn't we send this stuff\nto him and have him say, \"You are missing this or that\"?\nMR. WHITE: If he is still in uniform, it is perfectly\nall right, isn't it?\nH.M.JR: Yes.\nMR. SULLIVAN: He wasn't in uniform when I saw him.\nRegraded Unclassified\n71\n- 13 -\nMR. WHITE: I am not sure whether he has had a full\ndischarge.\nH.M.JR: Before I go on, do you get the idea?\nMR. WHITE: I will get in touch with him this morning.\nH.M.JR: what happened?\nMR. TIETJENS: Walter Heller was out at Paul's Sun-\nday working on the speech. After you called Randolph,\nhe said, \"Heller, you tell Louie Shere to arrange for an\ninflation meeting through Miss Alger - via Miss Alger.'\nSo Shere--\nH.M.JR: Let Miss McCathran hear this. We will get\nit cleared up. At least let her hear it.\n(Miss McCathran entered the conference.)\nH.M.JR: Miss McCathran, just listen a minute.\nMR. TIETJENS: Walter Heller was working with Randolph\non Sunday on the speech when you (the Secretary) called,\nand he told Heller that when he came back to the office\nto have Louie Shere arrange for an inflation meeting via\nMiss Alger, and give her the names and get the names from\nher, and Shere did that with Miss Alger. Miss Alger\ndidn't know at what time the meeting was to be called.\nShe wasn't told. So she checked with Fitzgerald, gave\nthe names to him, and was waiting to hear from your office\nas to what time the meeting was to be called. So that\nis apparently where it is now. She wanted the names to be\nchecked with you first, too, because she was told it was\nyour meeting.\nH.M.JR: I told them specifically that I couldn't go.\nYou (Miss McCathran) know where it is. We will let it\nrest a minute. Thank you.\n(Miss McCathran left the conference.)\nRegraded Unclassified\n72\n- 14 -\nH.M.JR: In view of what Bell is doing, and everything\nelse, I wonder whether we want that. The thing I wanted -\neverybody is working on the inflationary gap - see what\nthey have. If Bell is going to do it, I just wonder\nwhether we want this meeting, you see?\nMk. GASTON: Well, I will make an off-side comment, and\nthat is I suggest we forget the inflationary gap. There\nisn't any such thing. Nobody can define any such thing as\ninflationary gap. I don't know just what the meeting was\nto be.\nH.M.JR: The kind of meeting Paul is always having -\nEccles, and all those people.\nMr. SULLIVAN: Nick Gilbert, and so forth.\nMR. WHITE: I think that would be called for only if\nyou haven't a :ood case against this new thing injected in\nthe stream. Judging from Dan Bell's remarks, from what\nyou got over the phone, you can dispose of that, or the\nbudget Bureau can dispose of that, which leaves the situa-\ntion as it was before the statement was made. In that\nevent I should think you would not want a meeting, because\npresumably there is nothing new in the developments, and\ntherefore you can make the very effective point should it\nbe raised orally with you, should that be disposed of, and\ncontinue with the other points in your argument and assume\nthat the situation is as it was when you first presented the\nmaterial.\nH.M.JR: Well, let's give Bell a couple of hours, see,\nand see where he is at, and then we can take this thing up\nagain. We will just hold the thing in suspense.\nMR. GASTON: It might be of some use to sort of con-\nsolidate sentiment and get everybody's views about what sort\nof a case we ought to present.\nMR. WHITE: Might it not be worth while if the Budget\nBureau was able to indicate that this doesn't change it,\nmerely to see that everybody in Washington understands\nRegraded Unclassified\n73\n- 15 -\nthere has been no change, and a meeting might help to pre-\npare the ground for the Secretary.\nMR. GASTON: Even more, if the Dudget Bureau changés\nits figures.\nMR. HAAS: No doubt be changed.\nMR. WHITE: You mean if the expenditure is diminished;\nthen the meeting is in order.\nH.M.JR: The point that Bell made to me last night is\nthat he doesn't think that the figures are going to be\nchanged materially for the calendar year '44, and that is\nwhat he thinks.\nMR. GASTON: Well, fiscal '44 is the important thing,\nI should think.\nMR. SULLIVAN: That is what he meant.\nMR. WHITE: That would include that.\nMR. GASTON: Oh, yes, that is even better.\nH.M.JR: Now, the thing I wanted to have is - somebody\ncan make notes for Blough - Stanley can - I want to go\nback to the suggestions that the President always had in\nhis mind. In the first place, I agree with Fred Vinson\nthat we ought to have a lot of plans on the ten and a half\nbillion. But one plan that the President has always men-\ntioned is what he did when he was in Albany as Governor\nand wanted to raise some money for the unemployed. You\ncan look this up, Stanley.\nWhen you figure your net income, supposing your net\nincome, after all deductions, was two thousand dollars;\nyou added, I think, one percent the first year, which went\nfor relief. I think they got it up to two or three percent.\nThey had 8. very good name for it, and it only ran for one\nyear, see? They took one percent of whatever your net\nincome was. Whenever you got through, down in the lower\nRegraded Unclassified\n74\n- 16 -\nright-hand corner, you figured that was your net income, and\nfigured one or two percent. He has been after me for a long\ntime. Why don't we, to help for the war, and all this - when\npeople have this income, write it down and figure out one,\ntwo, three, four, five - up to ten percent. How much would\nit add?\nMr. SULLIVAN: That is the same technique as the defense\ntax.\nJR: Yes, which was knocked out.\nMR. SULLIVAN: Yes. We went through this at that time,\nremember? I knew I had read the story before.\nH.M.JR: Well, I would like to have that explored. It\nwon't take very long. Give me an answer.\nNow, on my philosophy as of today, let me give it to\nyou this way: I have read the excellent survey which was\nprepared in Schwarz' office under Smith's direction - the\ncriticism of everybody, of me and the Treasury and every-\nbody else. If you haven't seen it, it ought to be circu-\nlated. When I get all through and done, this is where I\nstand as of this morning. I think where we fell down -\nand there is no use criticizing - but we tried to please\ntoo many people in the last tax, with the result we pleased\nnobody. Therefore, this time I am going to try to please\nmyself and get out a good tax bill.\n(Mr. Bell entered the conference.)\nH.M.JR: I would just like to repeat this for the\nbenefit of Mr. Bell. I think where we fell down in our last\ntax bill was we tried to please everybody, and as a result\ndidn't please anybody - labor, conservatives - we didn't\nplease anybody.\nSo I am back to where I was, unless something comes up.\nI want to ask for ten and & half billion dollars of revenue\nwith no trimmings, no refunds, or anything else. I want &\ngood stiff tax bill which will help pay for the war while we\ncan afford to pay for it, with no trimmings.\nRegraded Unclassified\n75\n- 17 -\nMR. BLOUGH: Suits me.\nH. JR: Then I do want to review the C.I.O. program,\nand 30 forth, and 50 forth. Just a good bill that will\nproduce revenue while the war is on. Then if they don't\nlike it they are going to have to attack me because it is\ntoo stiff and not because of its social aspects.\nWhat I would like to have from the committee is this -\nand you fellows are going to have to work awfully hard and\nevfuily last: I want a chart so I can say, \"Gentlemen,\nthis is the tax bill as of this year; and this is what it\ndoes for the various income groups.'\nWe will take people - I thought we would have two\ngroups; single man, and married man with two children.\nThis is what it does to the man with an income of a\nthousand dollars and under.\"\nNow, then, I don't know, say from one to twenty-five\nhundred, or from one to three thousand - and not more\nthan six groups. \"This is what the House bill did.\"\nAnd each case always having a number of people affected.\nI think I once asked for this, say, for a thousand dollars\nor under, this year - calendar year. \"In '43 we have got\nso much.\nNow, my groups - there may have been six hundred and\nsixty dollars - or whatever the right figure is - six hun-\ndred and sixty dollars under the Victory tax, isn't it?\nMR. GASTON: Six hundred and twenty-four.\nH.M.JR: Whatever it is - but I want what it is this\ncalendar year - what the House bill did, and then the\nproper groups, you see? And then state what is in the House\nbill, and then what we think it ought to be. But be sure\nand get the thing in financial groups, plus the number of\npeople, to answer this nine million people thing, you see?\nI am not sure of what I am going to say, now, and it\nmay not be right, but in order to answer these people -\nRegraded Unclassified\n76\n- 18 -\nthat these nine million people aren't going to pay it.\nMaybe we will have a head tax of five or ten dollars for\nevery person under a certain limit. It isn't a very good\nname - I am not sure about this, but I am throwing it at you.\nBut at least let's get this thing out. I want a trial run.\nCall in some friendly people like Walter Lippmann,\nwho, after he saw Gaston, said, \"All right\" - like the\neditor of the Washington Post - a few people like that;\nmaybe Ernest Lindley; maybe the columnist, Raymond Clapper -\ntry it out on them - or Robertson of PM. - and try this\nthing out. Do you see? If that is possible, I would like\nto have something like that.\nI would say, \"Now, gentlemen, here is the problem -\nhere is the way it is. We need ten and a half. I am not\ngoing to tell you how to get it.\"\nAnd then the other thing I want to do is say, \"All\nright, everybody is talking about a sales tax - ten percent\nsales tax which will yield roughly six billion dollars.\nBut I am sure there is nobody in this committee that is\ngoing to recommend it without exemptions; so let's look\nat the exemptions. And I am sure, gentlemen, that you will\nwant to exempt food and clothing, and this and that; and\nas you exempt the various things, this is what you have got,\nif you want it. After all, you are the elected representa-\ntives of the people. I am sure, gentlemen, your ear is\ncloser to the ground than mine is, because I don't have to\nrun for office; you do. If you want a sales tax, here it\nis, plus exemptions.\" When you take out all the essentials\nof life, what does it get down to?\nMR. BLOUGH: Oh, it cuts you down at least two-thirds,\nI think.\nH.M.JR: All right, I want to say that, and have &\nchart with the various items.\n\"All right, gentlemen, are you, Senator Byrd, going\nto recommend that you put ten percent on food? Are you\ngoing to put ten percent on clothing, and this and that?\"\nRegraded Unclassified\n77\n- 19 -\nMR. SULLIVAN: Rent and medicine?\nH.M.JR: \"All right, when you eliminate all those things,\nthis is what you get. And I would have a chart on that.\nBut I am not going to go up and recommend the President's\ninsurance scheme, and I am not going to recommend the refund-\nable feature. I am going to recommend ten and a half\nbillion dollars of straight revenue, and then they can say\nthey don't want it.\nAnd then I want to talk about the need. I want to\ntalk about the mistake that Mr. Mellon made, and Mr. Coolidge\nmade in 1921, and say, \"I am not going to stand here and\nmake the same mistakes they did, with the resulting collapse\nand depression which followed the thing.\nMR. SULLIVAN: Elementary arithmetic.\nH.M.JR: Yes. \"Now, gentlemen, if you want to do that,\nO.K.\" At least I am going to be Secretary of the Treasury\nand recommend ten and a half, and I will also bring in this\nstuff about the boys going to have to both fight the war\nand pay for it.\nThat is the way I feel this morning. I would like you\npeople to think about it. I will meet again with you this\nafternoon at three-thirty.\nAll right?\nMR. GASTON: I don't believe we ought to change bases\ntoo much. I think you can suggest alternatives, but I\nthink the original plan was 8. good plan.\nMR. SURREY: Randolph and I spoke to Senator George\nFriday and he did not seem disturbed about dropping the\nnine million people. He thought if it were in the interest\nof simplification, he would go along.\nH.M.JR: On that, if we drop them out, both under the\nVictory tax and kick out the Ways and Means' three percent\ntax, please, for heaven's sake, on the nine million people,\nRegraded Unclassified\n78\n- 20 -\ngive me examples of what they do pay for cigarettes, and\ngasoline, and all the other things.\nMR. SURREY: That is what we spoke to Senator George\nabout, dropping out the three percent tax.\nH.M.JR: You take the average family, and pay so much:\nHe buys so much cigarettes, so much liquor, he may go to\nthe movies once a week, and so forth, and so forth. All\nright, a man has so much. He is certainly entitled to so\nmuch. He doesn't go to cabarets, doesn't buy fur coats, but\nunder a democracy he is entitled to a couple of packages of\ncigarettes, and to do this, and that, and the other thing.\nAnd right now he is paying a Federal tax of so much. Don't\nteil me he is not paying any tax. It is just the plain bunk\nof the people who want to make that fellow pay so that the\nman who is getting a hundred thousand dollars a year shouldn't\npay.\nNow, let's de-bunk this thing and call a spade a spade.\nThe net result of the whole thing - I an going to be tough.\nThen if they want to criticize me, they have got to criticize\nme because I am too tough. But I am not going to wiggle-\nwaggle, and try to please ten people over in the White House.\nI am not going to do it.\nMR. WHITE: I agree with ninety percent of what you say.\nH.M.JR: Harry, ninety percent? May I shake your hand,\nplease? (Laughter)\nMR. WHITE: I won't wait until you hear the ten. I\nwill shake hands now. (The Secretary and Mr. White shake\nhands.)\nH.M.JR: This is one of the high moments of my life.\nI am only ten percent wrong in the eyes of Harry White.\nAnd Harry, if you are getting the best of me - I will have\nto leave in six minutes.\nMR. WHITE: I think I can say what I want to in less\nthan that.\nRegraded Unclassified\n79\n- 21 -\nH.M.JR: Mrs. Klotz thinks I can't wait that long.\nMR. WHITE: Well, you said that you didn't feel that\nthe boys who are fighting now are to pay for the war. I\nam in thorough agreement with that, and that is what I\nwant to start on. In other words, prevent them paying for\nthe war.\nNow, any additional tax you put on now, many of the\nmen who are in the services will not pay. They don't pay\nexcise taxes; they get their food and cigarettes for nothing;\nthey don't pay as much income tax; they get low incomes.\nTherefore, any tax that you recommend now, even if it is 8.\nbad tax, and you didn't care whether it is bad or good as\nlong as it was for revenue--\nH.M.JR: I didn't say that.\nMR. WHITE: But you are not going to expose yourself\nto whether it is socially good or bad.\nMR. GASTON: No, no, no. You said you didn't care\nabout making friends, trying to please different people.\nMR. BLOUGH: And social reform, I think.\nMR. W.ITE: Let's delete that. I have only got three\nminutes.\nMR. GASTON: That is out. Now you start fresh.\nMR. WHITE: Therefore, if you take the position that\nthese taxes - that your additional ten billion dollars\nof taxes shall be just the tax which shall be on during the\nwar, and that the minute the war is over the first taxes\nthat shall come off shall be those taxes, then I think you\ncan go to town. But if you include in your tax recommenda-\ntions, the tax structure, the kind of taxation which they\nare likely to do unless you fight them, then you are doing\nexactly what you don't want to do, because when the boys\ncome home you are putting--\nRegraded Unclassified\nS\n80\n- 22 -\nH.M.JR: Give me an example, Harry.\nMR. WHITE: Let me take the example of lowering the\nexemptions. Let's say, if you lower the exemptions, and if\nthat lowered exemption lasts after the war, then the boys\nthat come back from the services and begin earning money--\nLet me come back at this tomorrow or the next day.\nH.M.JR: How about three-thirty? The very thing that\nyou are talking about, see? Lowering exemptions - I am\nagainst it - I don't want to lower the exemptions.\nMR. WHITE: But I gather you weren't willing to say\nhow they get the money as long as they get the money.\nH.M.JR: No, look - we will start the three-thirty\nmeeting with White.\nMR. BLOUGH: He said all that in the House statement.\nMR. WHITE: He was going to change his mind as to what\nhe is going to say in the Senate, I thought.\nH.M.JR: The trouble is, I think you are suspicious\nof what I am going to do. If you ask me what I am going\nto do, I will tell you. I will tell you exactly the kind\nof things I mean. Paul and his group, in order to please,\nthought that it was good strategy to say, \"We will lower\nthe exemptions.\" I never was for it. That was displeasing\nto the labor unions. I am not going to do it because I\nnever did believe in it. They have had to beat me down\nevery time in order to get me to lower the exemptions. I\ndon't want to lower exemptions. I don't think you know\nquite what I have in my mind.\nMR. WHITE: I don't think I do.\nH\nJR: So therefore you question me at three-thirty.\nMR. GASTON: Lippmann was & good deal impressed by the\nfact that I showed him there would be thirty-five or more\nRegraded Unclassified\n81\n- 23 -\nmillion taxpayers left after letting the nine million go, and\nalso that fifty-three percent of the amount of additional\ntaxes would fall in the group of five thousand and below.\nThat is the majority of new taxes.\nH.M.JR: Would you mind, Beil, taking this group into\nyour room and see who does what, and hold certain people\nto certain things? I have asked for these charts. You\nought to take some of these people in. I have given them\ncertain orders, and I want to know when they get started, and\nknow that this has number-one priority. But these things\nI have described - who is going to do it - what is Haas\ngoing to do. So take them in your office and get them\nstarted. I will meet the same group at three-thirty.\nMR. BELL: The books close tomorrow night on the\nrefunding. We have one million three, as of last night -\nthirty percent of them.\nRegraded Unclassified\n82\nMy dear Mr. Secretary:\nI have been very much interested in the fact that the\nWar Department has announced the release of some $13 billion\nof its available funds. There has been considerable confusion\nas to the affect of this release on expenditures, and I should like\nto ask you to help clarify this matter for me. I should greatly\nappreciate it if you could supply me with the following information:\n1. Total appropriations and contract authorizations\navailable through the War Department before the\nrelease of the $13 billion.\n2. Estimated total expenditures by the War Department\nduring the fiscal year 1944 calculated before the\nrelease of the $13 billions.\n3. Total appropriations and contract authorization\nto\navailable through the War Department after the\nrelease of the $13 billion.\n4. Estimated total expenditures by the War Department\nduring the fiscal year 1944 calculated after the\nrelease of the $13 billion.\nThis information will be most helpful to me, and I should\nlike to have it as soon as possible.\nVery truly yours,\nSecretary of the Treasury\nRegraded Unclassified\n83\nNovember 23, 1943\n11:21 a.m.\nHMJr:\nWho has the information that I want? I mean --\nare you -- you were going to call up Harold Smith.\nDan\nBell:\nYeah. I couldn't get Harold. He's sick in bed\nand I called his house and they said he was asleep.\nThey thought he'd wake up in a little while and\nthey'd have him call me.\nHMJr:\nYeah.\nB:\nI've been in touch with Wayne Coy\nHMJr:\nYeah.\nB:\n....and they've already worked up a statement\nHMJr:\nYeah.\nB:\nexplaining the $13 billion and Jimmy Byrnes\nsaid he was going to give it out.\nHMJr:\nYeah.\nB:\nI suppose as Acting President. I think there is\na little difference of opinion on it over in the\nBudget. I think that Coy thinks the Director of\nthe Budget should give it out.\nHMJr:\nSure.\nB:\nWell, I talked to him about, Dudget summation in\nsimple statement form on Friday and he said,\nwell, they thought they could throw something\ntogether, but he'd like to get in touch with Smith.\nWe're just sitting here, a few of us, discussing\nwhether it would be advisable to put out a Budget\nsummation at this time and whether or not it couldn't\nbe handled another way. I don't know yet.\nHMJr:\nWell\nB:\nGeneral Richard is coming at 1:30.\nHMJr:\nWhen you -- the point I want is something out by\nFriday.\nB:\nYeah.\nRegraded Unclassified\n84\n- 2 -\nHMJr:\nWhat's the chances?\nB:\nI think the chances are pretty good. What it\nwill be, I don't know, but I think they were\ndrawing something for Byrnes to put out right\naway. Now, whether that will be sufficient,\nI don't know 'till I see it.\nHMJr:\nWell\nB:\nBut Coy said he wouldn't do anything on it until\nhe talked to me again.\nHMJr:\nWell, I mean it\nB:\nWe are waiting now to get in touch with Smith\nHMJr:\nI see.\nB:\n....who is 111.\nHMJr:\nI see. Well, it looks as if I started something,\nhuh?\nB:\nYep.\nHMJr:\nAnd....\nB:\nWell, they've been talking to Byrnes about it\nthe last couple of days and Byrnes decided that\nhe would give out a statement on it.\nHMJr:\nWell, do they know that I've got to go up on\nthe Hill Monday?\nB:\nYep. I told them that you were going to be put\non the spot on Monday and that something ought to\nbe done before then.\nHMJr:\nNow, will you do one other thing for me?\nB:\nYep.\nHMJr:\nCall up Fred Vinson and tell him what you're\ndoing.\nB:\nAll right.\nHMJr:\nAnd tell him we'd like to have his help.\nRegraded Unclassified\n85\n- 3 -\nB:\nAll right.\nHMJr:\nSee?\nB:\nYeah.\nHMJr:\nAnd you might -- because he may be in on this\nthing, too, you see?\nB:\nYeah. I'll tell him.\nHMJr:\nAnd we need his help to get this thing out\nbeforehand.\nB:\nOkay.\nHMJr:\nThank you.\nB:\nYes, sir.\nRegraded Unclassified\n86\nNovember 23, 1943\n11:24 a.m.\nHMJr:\nHello.\nTed\nGamble:\nHello, Mr. Secretary.\nHMJr:\nHello, Ted. Ted\nG:\nYes.\nHMJr:\nI'm counting on you, you know, to handle this\nadvertising business.\nG:\nYes, sir.\nHMJr:\nAre you making any headway?\nG:\nYes, sir.\nHMJr:\nYou are?\nG:\nYes, sir.\nHMJr:\nWell, do you know when it's going to come up\nin the House? Or anything else?\nG:\nMr. Lynch and Mr. Mager were here -- we had a\nmeeting this morning on it.\nHMJr:\nWho's Lynch?\nG:\nLynch is in the General Counsel's office. He's\nbeen one of the liaisonswith the Hill.\nHMJr:\nYeah.\nG:\nAnd he followed the bill all the way through\nthe Senate Committee\nHMJr:\nOh, yeah.\nG:\n....as an onlooker and reporter for us.\nHMJr:\nYeah.\nG:\nAnd we have prepared a report. We are documenting\nit now so that it can be presented to the House\nCommittee.\nRegraded Unclassified\n87\n- 2 -\nHMJr:\nYeah.\nG:\nWe are supporting it with all of the evidence\nof the\nHMJr:\nWell\nG:\nfacts that we have on what the weekly\nnewspapers did. I've talked to Nathan Adams\nin Texas.\nHMJr:\nYeah, that's what I'm leading to.\nG:\nHe has agreed, not only to contact Rayburn\nhimself, but to see that other influential\npeople in Texas contact Mr. Rayburn.\nHMJr:\nWell, how long ago did you speak to Adams?\nG:\nI spoke to him yesterday morning.\nHMJr:\nIs he going to let you know what reaction he\ngets?\nG:\nYes, sir. He was away last week-end\nHMJr:\nYeah.\nG:\non a ranch down in Texas and we couldn't\nreach him.\nHMJr:\nYeah.\nG:\nI talked to him yesterday morning.\nHMJr:\nWhat Committee handles this? Do you know?\nG:\nUh -- the -- it goes in to the Rules Committee\nin the House.\nHMJr:\nUh -- but then -- Rules?\nG:\nYes.\nHMJr:\nUh huh. I wonder who's on Rules, you see?\nG:\nYeah, Sabath is on there. I've started to get\nthe list of names this morning.\nRegraded Unclassified\n88\n- 3 -\nHMJr:\nAnd to go to work on them?\nG:\nYes, sir.\nHMJr:\nAttaboy.\nG:\nBut we're watching it, Mr. Secretary, and\nwe have several other people in the....\nHMJr:\nWell, watching it ain't enough.\nG:\nI -- I -- I understand. I don't mean that.\nHMJr:\nAll right.\nG:\nI understand that Thomas and those fellows\nsaid they wouldn't do anything about it.\nIs that right?\nHMJr:\nThomas?\nG:\nHarold Thomas.\nHMJr:\nOh, I don't think they'll do anything.\nG:\nNo.\nHMJr:\nThey always let somebody else do it.\nG:\nThat's right. Well, I started to check up on\nit and I found that you had already spoken to\nthem.\nHMJr:\nYeah.\nG:\nAnd that they are not going to do anything\nabout it.\nHMJr:\nYeah. And I haven't heard from Knox.\nG:\nYeah. Well, he won't do anything.\nHMJr:\nThey're all scared.\nG:\nThat's right.\nHMJr:\nYeah.\nRegraded Unclassified\n- 4 -\n89\nG:\nWell, We -- we're not afraid to stick our\nneck out on it.\nHMJr:\nWell, I'm personally not afraid.\nG:\nI understand that. And I think you're sound\non it.\nHMJr:\nAnd you might -- another thing 18 -- this 1s\n\"period -- paragraph -- new subject.\"\nG:\nYes.\nHMJr:\nYou might begin to find out and get acquainted\nwith the man who is going to take Palmer Hoyt's\nplace.\nG:\nMr. Healey.\nHMJr:\nYeah.\nG:\nYes, sir.\nHMJr:\nAnd I'll tell you, you might ask Elmer Irey if\nour boys know him.\nG:\nYes, I will do that.\nHMJr:\nAnd we might have a good introduction to him\nthrough that channel.\nG:\nFine.\nHMJr:\nThe man that handled the Huey Long case -- whose\nname was Burford\nG:\nYes.\nHMJr:\nand he may know this fellow. I don't know\nwhether this is -- how active he was with Huey\nLong, but through Irey or Burford we might get\na good line on him.\nG:\nFine. I'll get a line on him from Irey.\nHMJr:\nRight.\nG:\nI'll call today on it.\nRegraded Unclassified\n.\n90\n- 5 -\nHMJr:\nRight.\nG:\nAll right, sir.\nRegraded Unclassified\n91\nLuncheon meeting in Secretary Morgenthau's Office\nTuesday, November 23, 1943\nPresent: Secretary Morgenthau\nMr. Crowley\nMr. Cox\nMr. Currie\nMr. White\nThe Secretary had invited the group to luncheon to pursue the\ndiscussion of questions relating to the British dollar balance\nposition.\nThe Secretary began by saying that he had informed Secretary\nHull that he and Mr. Crowley were ready to discuss with him the\nquestion of French payment for military goods now sent under lend-\nlease credit and would it be possible to take that up after the\nmeeting on the Argentine matter in Secretary Hull's office was over.\nSeveral days after the inquiry Secretary Morgenthau said he was\ninformed by Secretary Hull's office that Secretary Hull was not yet\nready to discuss the French matter. Secretary Morgenthau said as\nsoon as Secretary Hull sets a time of meeting he would be ready he\nwould get in touch with Mr. Crowley.\nThe Secretary then related the gist of conversation at the\nluncheon he had had with Lord Halifax and Waley.\nMr. Crowley asked how far we had gone in our preparation of a\nprogram. Mr. White replied that he thought that the draft of the\nletter agreed on by Currie and himself represented the views of the\ngroup. The letter, he said, placed the matter squarely up to the\nPresident and called either for approval designed to curtail the\nbalances or for a decision by the President to modify the directive\nof last January.\nMr. Cox thought that that approach would not be the wisest. He\nfelt it would be better not to raise the question of the balances. lie\nsaid that the State Department would not agree and that eventually the\nPrime Minister would raise the issue with the President and then we\nwould not have made any progress. He thought it would be much better\nnot to bring the matter to the President but rather to pursue the\ncourse of attacking each item separately. He stated that the first\nstep had been taken on fish from Iceland. The next one might be sugar\nfrom the Caribbean area, then shipping services and there were other\nitems. It was his view that if we raised each one of these projects\nseparately there would be no point on which the Prime Minister could\nappropriately complain to the President.\nRegraded Unclassified\n92\nDivision of Monetary\nResearch\n- 2 -\nWhite said that he preferred the approach of the total balances.\nHe feared that the aggregate of reductions likely through the other\nmethod was quite inadequate to carry out the directive. Currie and\nCox, however, pointed out that they hoped the amounts that they could\ntotal by taking one item up at a time might reach to several hundred\nmillion dollars. White agreed that if that magnitude could be reached\nthe approach suggested by Cox might be all right.\nMr. Crowley repeated the conversation he had had with the President\nsome time ago in which the President said that he thought the British\nshould have up to 82 billion. Mr. Crowley said he had told the President,\n\"Please don't say that. Let the Treasury people and my people work out\nwhat we could do on the matter and then if there is any disagreement the\nmatter can be brought to your attention but that I think we can work\nsomething out that will be satisfactory.\" Mr. Crowley therefore thought\nthe approach suggested by Cox was the better one. The Secretary agreed\nand it was decided to pursue that course as quickly as possible.\nThe Secretary raised again the question of sending lend-lease goods\nto the Middle East on a credit basis. Mr. Cox replied that it was a\npretty complicated matter, that they were trying to cut out some of the\nitems.\nThe Secretary repeated some of the things he had stated in former\nconferences with Mr. Crowley with respect to the desirability of\ntightening up on the whole Lend-Lease program, and the cutting out of\nall procedures that weren't fully justified and couldn't be easily\ndefended.\nH. D. White\nRegraded Unclassified\n93\nNovember 23, 1943\n2:25 p.m.\nHMJr:\nI've had a little -- I had figured on asking to\nsee the Democratic members of the Finance Committee\non Saturday. Now, they want to see me tomorrow.\nDan\nBell:\nUh huh.\nHMJr:\nNow, I'm asking you and Paul to go with me.\nB:\nUh huh.\nHMJr:\nAnd -- it's for lunch up at Halsey's office.\nB:\nUh huh.\nHMJr:\nNow, golly, I hope you can have something on\nthat $13 billion before that.\nB:\nI think I'll have it. I've got the story informally\nbut I think I'll have it in writing.\nHMJr:\nWell, if you could have that by -- for lunch\ntomorrow, it would be wonderful.\nB:\nI think I can.\nHMJr:\nWell, and can you find out who's going to give\nit out to the public?\nB:\nUh -- that we'll have to decide, I think. I can\nget a written statement either over the signature\nof the Secretary of War or the Budget Officer,\nGeneral Richards. He said that he'd do it either\nway. I told him I thought over his signature as\nBudget Officer might be just as good. And he'll\ngive us something that we can give to the Committee.\nHe'll write it in such a way that it can be put into\nthe record if you want to.\nHMJr:\nGee, I don't know\nB:\nNow, I haven't gotten the Budget yet to see what\nthey want to do.\nHMJr:\nWell, don't you think over Mr. Stimson's signature --\nwhich do you think would have more effect?\nB:\nWell, I thought probably the Budget Officer's would\nbe as effective.\nRegraded Unclassified\n94\n- 2 -\nHMJr:\nWell, I'll tell you....\nB:\nI mean, he doesn't care.\nHMJr:\nWell, I'll tell you -- no -- I did this through\nPatterson's office. Hello?\nB:\nDid it through what?\nHMJr:\nI started this through Bob Patterson.\nB:\nUh huh.\nHMJr:\nI'd put it up to Patterson, \"How do they want\nit?\"\nB:\nAll right.\nHMJr:\nI mean, let them decide.\nB:\nAll right.\nHMJr:\nYou see?\nB:\nYeah.\nHMJr:\nBut we've got to have it by noon tomorrow.\nB:\nAll right. Well, he can give it to me.\nHMJr:\nIs it a good story?\nis\nB:\nUh -- yeah, a good story.\nHMJr:\nYeah.\nB:\nAnd, as a matter of fact, the thing that --\nthey've been working on it for a long time and\nthe thing's been in the mill. If the Committee\nup there hadn't gotten ahold of it, why, there\nwould never have been any publicity to it. They\nwould have just put it in reserve and forgotten\nit.\nHMJr:\nI see.\nB:\nBut, there has been no change in the expendi ture\nfigures since the Budget summation of August 1.\nRegraded Unclassified\n95\n- 3 -\nHMJr:\nReally?\nB:\nYeah. And they see no reason for changing the\nexpenditure figures at this time.\nHMJr:\nWell, you can see the importance of getting it\ninto the hands of the public. Now, what I'd like\nto do though, is to get it out a couple of days\nbefore I go up there.\nB:\nYou mean before you go up on Monday?\nHMJr:\nBefore I go up on Monday.\nB:\nYeah.\nHMJr:\nThat's what I'd like to do.\nB:\nWell, I think they'd be willing to do that.\nHMJr:\nOkay.\nB:\nAll right.\nHMJr:\nThank you.\nRegraded Unclassified\n96\nNovember 23, 1943\n4:00 p.m.\nTAXES\nPresent: Mr. Bell\nMr. Sullivan\nMr. Blough\nMr. Gaston\nMr. Haas\nMr. Smith\nMr. Surrey\nMr. Tickton\nMr. Lindow\nMr. O'Connell\nMrs. Klotz\nH.M.JR: I have got your memorandum, John, if you\nwant to stay 8. minute behind.\nMR. SULLIVAN: Yes, sir.\nH.M.JR: You said you wanted to see me.\nMR. SULLIVAN: Yes, sir.\nH.M.JR: This is from Gaston to me: \"Walter Lippmann's\ngeneral comment was that he didn't think that the Treasury's\ncase had been well enough presented to the public.\"\n(The Secretary reads to himself Mr. Gaston's memorandum\nof November 23, attached)\nWell, Smith, I'll keep the original. (Secretary hands\ncarbon copy to Mr. Smith)\nOne thing I would like a little advice on is this: I\nhave been fussing, through Colonel Halsey's office, to\nmeet with these people. First they couldn't come tomorrow,\nand I said George and Barkley, and as many more as they\nwanted. Well, I gathered they are inviting all twelve\nmembers. I can't back out. But I had intended taking\nRegraded Unclassified\n97\n- 2 -\nBell with me, and Paul and Smith, and anybody who thinks\nhe should come, although I did want to keep it down. The\nmain thing - do you think it would be good ball or not for\nme to call up Vinson and ask him whether he would go up\nwith me? It is my luncheon; I am paying for it.\nMR. SULLIVAN: Who is the committee meeting with?\nH.M.JR: Mostly the Democratic members of the Finance\nCommittee.\nMR. GASTON: Yes.\nMR. BELL: I haven't been able to get Vinson. He\nhas been out all day. I haven't been able to get him, so\nI haven't told him about it.\nH.M.JR: What do you think?\nMR. BELL: I certainly don't think it will do any\nharm, because he will certainly be called before that\ncommittee and he ought to know what is going on.\nH.M.JR: Fred?\nMR. SMITH: I think you ought to invite him.\nMR. SULLIVAN: I am just wondering - you are going to\ntry to outline the tax plan?\nH.M.JR: Yes.\nMR. SULLIVAN: Or are you going to spend most of your\ntime talking about the necessity of the new tax?\nH.M.JR: Sort of outline it.\nMR. SULLIVAN: I would take him.\nMR. BELL: Then you are going to try to get their\nadvice?\n98\n- 3 -\nH.M.JR: Yes. Does anybody think we shouldn't?\nMR. GASTON: I just wonder what good the lunch is\ngoing to do. Isn't it just going to make it more diffi-\ncult for you to say what you want to say when you make 8.\nformal appearance before them?\nH.M.JR: I don't know, Herbert. I think, over a period\nof ten years, when you do this thing on a personal basis\nyou don't appear cold before them. You do have & little\nbit more sympathetic audience.\nMR. GASTON: Yes. You couldn't put it on the ground\nof just asking them what you are going to say or what you\nshould say?\nMR. BLOUGH: Ask them how you can go about persuading\nthem.\n(The Secretary places 8. call to Judge Vinson.)\nH.M.JR: It is too late to decide whether it was\nsmart, but to go up absolutely cold against these fellows\nis an awful shock. I have known them for ten years.\nMR. GASTON: I think it is all right. I think you can\njust tell them that you are sticking to your guns on heavy\ntaxes.\nH.M.JR: It will be in the paper, but what the heck -\nit will sort of soften them up. Anyway, it is water over\nthe dam - I mean, if I made a mistake.\nMR. SULLIVAN: I don't see any objection to its being\nin the paper, Mr. Secretary.\nMR. BLOUGH: I was a little facetious when I said\nask them how to persuade them. I really had in mind that\nyou may be able to find out what types of facts and infor-\nmation they consider important in connection with this,\nand it may help to guide you in the kind of statement you\nmake to them.\n99\n- 4 -\nH.M.JR: I think so. Paul called him up and asked\nhim about simplification of this and that thing. Look,\nanyway, I did it. I think it may soften them up a little.\nWhat the heck!\nMR. GASTON: Did you notice the Herald Tribune cartoon\nthis morning? That is worth seeing.\nH.M.JR: No, I didn't.\nMR. GASTON: It is directed against the Republicans\ngetting drunk on inflation. It is & good cartoon. It\nis right up our alley. That is one thing that Ernest\nLindley called attention to, that the important papers\nare swinging around into our corner on the general propo-\nsition of the need for heavier taxation.\nOf course, many of them are saying it should be done\nthrough the sales tax, but not all.\nH.M.JR: Well, I would like to have a report--\n(The Secretary picks up phone) Tell Schwarz' office\nI would like to see the cartoon in today's New York Tribune.\nSend it down to me.\nGive me a report, Bell, on what you have been able to\naccomplish.\nMR. BELL: Well, all of the things that you asked for\nthis morning are in Mr. Blough's shop, and he has been work-\ning on those three things you asked for. Just what he has\ndone, I don't know. We didn't have any more meetings be-\ncause he wanted to spend the entire time - oh, you mean\nthe other-\nH.M.JR: Yes.\nMR. BELL: I still haven't been able to get ahold of\nHarold Smith. Wayne Coy was to call as soon as he got out\nof Byrnes' office. That statement was left with Jimmy\nByrnes, and he was until one to get him to hold it up.\nRegraded Unclassified\n100\n- 5 -\nHe said he would talk to them as soon as their meeting was\nover and call me right afterwards to see if we could get\ntogether on some kind of program.\nI talked to General Richards of the \"ar Department,\nthe Budget officer. He gave me the background of the thir-\nteen billion. He said late in June or early in July the\nGeneral Staff went over the whole Army program and they\ndecided to reduce their personal program from eight million\nand a quarter down to seven million seven. When they did\nthat they called up all of the service bureaus to submit\nestimates of what appropriations they could get along with-\nout for the rest of this fiscal year. After they got the\nbureaus' estimates, they had hearings before his group,\nas a result of which they set aside in reserve about ten\nbillion nine.\nThey notified the Bureau of the Dudget of that early\nin September, and going over the matter again with the\nBureau of the Budget, they have since been able to increase\nthat to thirteen billion.\nIn their budget estimate of last January, they esti-\nmated they would spend sixty-two billion dollars this fiscal\nyear, and in July they notified the Bureau of the Budget\nand also the Treasury . - they have been using their esti-\nmates - that this estimate would come down to fifty-six\nbillion. That fifty-six billion dollars is in the summa-\ntion of the Budget, issued on August 1. So that has all\nbeen made public.\nBut at that time the Budget Bureau increased the Navy\nexpenditures from twenty-two billion, set out in the Presi-\ndential Budget Message of January, to twenty-eight billion,\nwhich was included in the summation. So, on the over-all\nestimate there was no change whatever - still retained the\nninety-seven billion.\nNow, whether they did that to retain the ninety-seven,\nI don't know, but the expenditure program up to date indi-\ncates clearly that the Navy is going to exceed their origi-\nnal estimate unless they have & sharp reduction from here on.\nRegraded Unclassified\n101\n- 6 -\nThey are on 8. basis, now, of about twenty-four or five billion\ndollars, and the Army is on a basis of, well, I should think\nabout fifty-five billion, if they spend from here out as\nmuch as they will this month.\nH.M.JR: Now are you talking about the calendar year?\nMR. BELL: Fiscal year. Now the thirteen billion\ndollar reserve has had very little effect on this year's\nestimate of expenditures. Whatever effect it has had was\ntaken into consideration in the July change in their esti-\nmates.\nSenator Byrd and Senator Truman have both been investi-\ngating the War Department's huge unexpended balances.\nThat has been a little embarrassing to the Chairman of\nthe Subcommittee of the Appropriation Committee, who has\ncharge of the military appropriation estimates. He talked\nto Mr. Cannon, the Chairman, and said that they thought\nthey ought to do something about it, because what Byrd and\nTruman were doing was a reflection on his committee.\nSo he called the War Department officials up to his\ncommittee and rehashed this whole program that the General\nStaff had changed, also the thirteen billion dollars in\nreserve, and finally gave the figure to the public as a\nsaving in War Department appropriations.\nH.M.JR: Who?\nMR. BELL: Chairman Schneider. That is how it got to\nthe public. If it hadn't been for that, you never would\nhave heard of the reserve; it would have been a matter\nbetween the War Department and the Bureau of the Budget.\nH.M.JR: Who is Schneider?\nMR. BELL: Chairman of the Military Affairs Appropria-\ntion Committee of the Appropriation Committee of the House -\na subcommittee.\nAnd that is about the story.\nRegraded Unclassified\n102\n- 7 -\nH.M.JR: How are we ever going to get this thing down,\nthough?\nMR. BELL: He is dictating 8. memorandum this afternoon\nwhich he will give to us and which will be in such form\nthat we can make it public. I told him also to give con-\nsideration as to whether, if we wanted them to, the Secre-\ntary or Patterson couldn't give it out Friday morning in\nthe press conference. He will do that, too.\nH.M.JR: Will we have a press conference?\nMR. BELL: I don't know. Maybe if there is one at\nthe end of the week, one might do it, if that is what you\nwanted. He will tell me about that tomorrow morning when\nhe gives me the memorandum. I will have that before\ntwelve o'clock.\nThe Navy said, Secretary Knox said, he never heard of\nthe five billion, and no one in his Department is authorized\nto give it out. The Budget Bureau said they never heard\nof it. They said there wouldn't be any change in their\nestimates unless there was & radical change in their con-\nstruction program. They said they did have under considera-\ntion the matter of throwing out some heavy battleships, but\nit would be very little paid on those in this year, 80 not\nmuch effect on this year's expenditure program. That will\nprobably have to wait until tomorrow afternoon before I\ncan get anything on it.\nH.M.JR: What is Wayne Coy trying to do?\nMR. BELL: I asked him if he didn't want to consider\nat this time revising the Budget summation given out in\nsuggestion one. We have been trying to get Smith all day\nto talk to him about it. He said as soon as he got the\nstatement from Byrnes he would call me back. We would\ntalk about whether we wanted to do it or not.\nH.M. JR: I think the more light that can be thrown\non this thing, the less questions I am going to be asked,\nand the more the public will understand. I think that is\n& matter of public education.\nRegraded Unclassified\n103\n- 8 -\nMR. BELL: I am not so sure that you can't show the\nSenate Finance Committee that the expenditures that will\nbe made in November, if continued on that basis, will pretty\nmuch reach the War Activities' estimate.\nMR. GASTON: You have got 8 net there of - what did\nyou say - twenty-four or twenty-five, plus sixty-five -\nabout ninety billions, as against ninety-six, is about the\nway it stands, isn't it?\nMR. BELL: No, it is about twenty-five and fifty-\nfive, which gives you eighty. Then you have a lot of\nother activities - anywhere from fourteen to sixteen billion\ndollars. What you had was eighty-eight billion of War\nand Navy, and then you had nine billion of Lend-Lease,\noutside of the War and Navy, Maritime Commission, Agri-\nculture Department, Treasury, and other governmental acti-\nvities under the war expenditure classification.\nMR. GASTON: But these Army-Navy changes were both\ntaken into account in the last summation?\nMR. BELL: Yes. The ninety-seven wasn't changed,\nbut the Army and Navy expenditures were changed. The Navy\nincreased to take care of the reduction in the Army.\nH.M.JR: Get this thing - why don't you see if you can\nget Wayne Coy here? (The Secretary placed a call to Mr.\nWayne Coy.)\nMR. BELL: Would you like to see them revise the\nBudget summation?\nMR. BLOUGH: Stanley made a suggestion here.\nMR. SURREY: I was just wondering - this thirteen billion\nwill probably be used in the House debate starting tomorrow.\nMR. BLOUGH: This could be killed before that debate\nstarts.\nRegraded Unclassified\n104\n- 9 -\nMR. SULLIVAN: Budget could come out with their state-\nment and let War and Navy go on and explain it Friday.\nMR. HAAS: I think Fred Smith's explanation is the\none the public can understand easiest.\nH.M.JR: What is that?\nMR. HAAS: He has prepared a statement to be given\nthe Senate. In that statement is an explanation of the\nthirteen. I think the way he has handled it is the most\neffective way to handle it.\nH.M.JR: This is good. I haven't read it. Do I\nget a copy?\nMR. SMITH: Yes.\nH.M.JR: Nobody tells me anything. Let's say that\nthis is up to the best Smithsonian style.\nMR. BLOUGH: It is pretty good, Mr. Secretary.\nMR. SMITH: I don't know - it is all right with\nResearchand Statistics.\nH.M.JR: I still think that Stanley has an idea. If\nthis thing could be put into the hands - this explanation -\nof Patman, who is carrying the fight - the thirteen billion\nexplanation--\nMR. BELL: This is the subsidy?\nMR. BLOUGH: No, tomorrow the House starts debating\nthe tax bill.\nMR. SURREY: They finished the subsidy bill today.\nMR. BELL: You don't mean Patman, do you?\nH.M.JR: I mean Doughton.\nRegraded Unclassified\n105\n- 10 -\nMR. SURREY: Doughton is not on your team.\nH.M.JR: Give it to somebody. I didn't know the\nHouse was in session today.\nMR. BELL: They adjourned yesterday, I think, out of\nrespect.\nH.M.JR: You publicity fellows, this is what I think:\nI think the quicker we can get out the answer to the thir-\nteen billion, the better. And then if they don't handle\nit right, we can always come in on the rebuttal. I mean,\nif we could lay that thing, fine. Don't you think so?\nIf it could be done in the House--\nMR. SMITH: If that would do it. The only thing that\nworries me is that if it gets out as a technical explana-\ntion, it may not get any attention. I was enthusiastic,\nbut you are having a fairly sizable meeting here; maybe\nhaving Vinson here, and having a good burial for the thing--\nH.M.JR: Yes, but supposing Mr. Stimson and General\nRichards at his side, are willing to do it over there?\nMR. SMITH: That is something else again. That will\nin\nget some attention.\nMR. GASTON: I think if we have any friends in the\nHouse majority that they ought to be told about this today\nso that they can deal with it on the Floor.\nMR. SMITH: I think that is true.\nMR. SULLIVAN: Then the newspaper fellows will go after\nStimson on this thing.\nH.M.JR: Well, the thirteen billion, it is really up\nto the Budget to supply those figures, isn't it - the\nleadership up there?\nMR. BELL: Either they or the War Department.\nRegraded Unclassified\n106\n- 11 -\nH.M.JR: If you told Wayne Coy the tax bill is coming\nup tomorrow and we have got this story - you haven't got\nit yet, though, have you?\nMR. BELL: No, except informally. But he was dictating\nit an hour ago when I called him, so he may have it pretty\nwell done.\nH.M.JR: I am thinking out loud - whether that thing\ncouldn't be gotten, well, into the hands of the Speaker.\nMR. BELL: Wayne Coy is a pretty good politician. He\nhas a lot of friends up there.\nH.M.JR: Tell Wayne Coy to get it into the hands of\nthe Speaker. He could take General Richards up with him\nand the two could explain it.\nMR. BELL: The Speaker wouldn't make any speech.\nMcCormack could.\nH.M.JR: Yes, but you have got to be awfully careful.\nThe Speaker would have to invite General Richards to his\noffice tomorrow.\nMR. SULLIVAN: That would be the end of it. Neither\nof those fellows prefer big taxes. How about Jere Cooper?\nMR. GASTON: We have got to get somebody in our corner.\nH.M.JR: I personally think it is a dead horse; it is\ngoing to get lost and snowed under. I would rather have\nthe thing fresh out of Stimson's office Friday morning,\nwith General Richards sitting at his side prompting him.\nMR. SULLIVAN: Could Budget release this for the morn-\ning paper?\nMR. SMITH: I think it will get lost if Budget does\nit. Nobody reads anything Budget does.\nRegraded Unclassified\n107\n- 12 -\nMR. LINDOW: The Budget summation doesn't have much\nto do with the thirteen, and will add confusion, I think; if\nthere is a reduction in expenditure in the Budget summation\nsomebody may want to add that to the thirteen.\nH.M.JR: I think they are two separate things. I\nthink it is up to the Army to do the explaining. I think\nif Mr. Stimson or Mr. Richards would do it it would be\nbetter. The earliest that you can do without rushing it\nso fast that it would be spoiled - if you can get around\nto it Friday morning.\nMR. BELL: They probably could do it around tomorrow\nmorning, around eleven 'clock, and get it in time for the\nsession.\nH.M.JR: You mean Mr. Stimson?\nMR. BELL: I am sure Richards will be finished tomorrow\nmorning by ten or ten-thirty.\nH.M.JR: They give it out and say, \"Notwithstanding\nthat the Congress only voted two billion dollars.\" That\ndamns it twice. Now they get it down and finished; it\ngoes down with the bill and it is drowned. Now all the\nnewspaper people are going to write, \"Well, the Congress\nwas wrong. They should have gotten more. Then we come\nup with fresh information that the thirteen billion isn't\nright, and I think the papers will back us up to the time\nI go up and ask for the ten and a half. I wouldn't do it\nfor the Ways and Means. After all, it isn't our responsi-\nbility, anyway. It isn't as though they were withholding\ninformation.\nMR BELL: They are not going to pay any attention\nto it on the Floor of the House.\nMR. SULLIVAN: They have a rule; they couldn't pay\nany attention if they wanted to, under that rule.\nH.M.JR: Gentlemen, I would not give it to the House\ntomorrow. It just goes down under an avalanche. Does\nRegraded Unclassified\n108\n- 13 -\nanybody disagree with me? Herbert, have I sold you?\nMR. GASTON: No, not completely. I think there should\nbe somebody on the Hill intelligent enough about what\nappropriations mean 80 that they could ridicule that thing\nwhen it comes up. If he isn't going to have any chance to\ntalk about it, that is another thing.\nMR. SULLIVAN: A chance to talk, but not to do any-\nthing about it.\nH.M.JR: Herbert, it is going to get snowed under. Do\nyou mind if I do it my way?\nMR. GASTON: No, that will just give me a chance to\nsay yaa, yaa!\nH.M.JR: The way you always do -- not. (Laughter)\nAll right. Then we are waiting for Wayne Coy. You\n(Bell) are going to talk to him about the summation. You\nare going to tell him what is doing on the thirteen billion?\nMR. BELL: Yes, he knows.\nK.M.JR: We are trying to do the thing now, and what\nwe want to do, instead of having him do it, or having\nMr. Byrnes do it, have Mr. Stimson do it. Is that right?\nMR. BELL: Yes. I would be inclined, I think, to leave\nthe summation alone if we are going to tackle the thirteen\nbillion on Friday morning.\nH.M.JR: I will be satisfied.\nMR. HAAS: The Budget estimates are not in bad shape\nin terms of this conversation you had today.\nMR. BELL: A lot of things can happen.\n(Mr. Bell held a telephone conversation with Mr. Wayne\nCoy, as follows:)\nRegraded Unclassified\n109\nNovember 23, 1943\n4:33 p.m.\nWayne\nCoy:\nHello.\nDan\nBell:\nWayne, have you got any more information?\nC:\nYeah, I've got the deck cleared.\nB:\nOh.\nC:\nJust like a one-armed paper hanger though.\nB:\nYou don't know what to do?\nC:\nWell, I just this minute got back and talked to\nHarold. I've just had time enough to talk with\nhim.\nB:\nUh huh.\nC:\nBut I got Jimmy to go along with me on the thing.\nB:\nYou mean for him not to release anything?\nC:\nHe's not going to release anything. He thought he\nmight have something to say about it in his Press\nConference after Harold released it here.\nB:\nUh huh.\nC:\nWhich 1s all right. He'd have this -- his approach\nto it is this: he's been working to get the Army\nand Navy to make cut-backs in their program where\nthey have an overproduction like in small-arms\nammunition or a small ship program of the Navy, and\nsubstitute for that other things which are new items\nBo that you don't get an inflated program.\nB:\nUh huh.\nC:\nAnd he'd approach it from that angle and support\nthe thing, which is all right. That falls right\ninto the pattern.\nB:\nWhat would you think of having Secretary Stimson\ngive out a statement on this $13 billion?\nRegraded Unclassified\n110\n- 2 -\nC:\nWell, uh\nB:\nI think they can give out a good one.\nC:\nThey can?\nB:\nYes.\nC:\nI saw a statement that they'd prepared for\nJimmy on the thing dated the 15th and it's\npretty bad. Here's the trouble with it, Dan, and\nI'll show you why they can't do it and they just\ncan't get it through their heads. They show\nsavings in their construction program of a billion\ndollars. They show savings in their supply program\nof about five billion dollars; total savings of\nsix. Well, now, that runs from today to the end\nof the war, you see, in terms of their supply\nprogram.\nB:\nThat's all to the good.\nC:\nWhich -- what?\nB:\nThat's all to the good.\nC:\nYeah, but they don't -- they don't spell that\nout at all and these fellows over there -- I've\ntalked with him about it this afternoon - with\nJimmy -- they they're inclined to say that's\nnext year, this fiscal year, you see? In fact,\nit isn't.\nB:\nNo, I understood that they are of the opinion that\nthe $13 billion does not materially affect 1944\nexpenditures.\nC:\nWell, it will affect it some, as you know.\nB:\nWell, not any more than what they have already\ntaken into consideration when they submitted to\nyou a $56 billion program for your Budget summation.\nC:\nNo.\nB:\nIt's all in there.\nC:\nYeah. That's right.\nRegraded Unclassified\n111\n- 3 -\nB:\nSo that there's been no change in the picture\nsince the $13 billion was made public.\nC:\nWhy -- I was just thinking out loud with you,\nbecause the Navy's involved in this picture, too,\nas well as the Army, except that they haven't\ngotten the publicity about it.\nB:\nWell, they told me over there they didn't know\nanything about the $5 billion.\nC:\nThey didn't?\nB:\nThat's right. Secretary Knox said that he didn't\nknow who gave it out and no one around there knew\nanything about it.\nC:\nYeah.\nB:\nAnd they had no intention of saving $5 billion.\nC:\nWell, what I thought that I'd do here was get our\npeople in in just a few minutes and go over the\nthing with them and lay out for our fiscal people\nthe preparation of a statement that the Director\ncould issue, which would, in effect, be a revision\nof our summation. And I talked with Weldon Jones\nat noon today and he says we can have that prepared\nwithin forty-eight hours, he was sure.\nB:\nUh-huh.\nC:\nThen it might be possible that that could be\nsupplemented by a statement from Stimson which\nwould reinforce the whole damn business.\nB:\nWell, General Richards 1s preparing such a statement,\ngiving the background of the $13 billion and what it\nmeans in terms of expenditures.\nC:\nYeah, at whose request?\nB:\nMine.\nC:\nAt yours?\nB:\nYeah. Because I thought maybe we had to use something\nbefore the Senate Finance Committee on Monday.\n112\n- 4 -\nC:\nWell, I'll tell you, Danny, any statement that\nRichards prepares that we don't have a look at\nand see what it is and what it means in terms of\nour own figures, we may be just raising hell with\nit.\nB:\nYou can see it.\nC:\nBecause, I've just seen one that he prepared for\nJimmy which is just as cock-eyed as can be.\nB:\nUh huh.\nC:\nin its implications and I would just jump\nright down his neck if he gave out a statement\nabout their expenditure program without consulting\nwith us about it.\nB:\nThis is just on the $13 billion.\nC:\nUh huh.\nB:\nNot on their total expenditure program, other than\nwhat they have already given you.\nC:\nEven then, I'd want to see it.\nB:\nThey were going to explain why the $13 billion and\nhow it came about and at the present time they see\nno reason for changing their expenditure program\nthey submitted to you in August.\nC:\nWell, that'\nB:\n....as part of your summation.\nC:\nHe may get a very good statement. You know, We\nhad $11 billion of this in there four or five weeks\nago.\nB:\nYeah. That's what he said. First of September you\ngot it.\nC:\nYeah.\nB:\nWell, could I see you tomorrow morning then, the\nfirst thing? As soon as General Richards gets\nready, and we can all sit down together.\n- 5 -\n113\nC:\nYeah.\nB:\nWould that be better?\nC:\nYeah. Yeah, I'm free except at 2:30 tomorrow.\nI've got one date.\nB:\nUh huh. I'd like to do it in the morning if I\ncould.\nC:\nAll right, whenever you get in touch with him,\nyou give me a ring and we'll all sit down together.\nB:\nAll right. I'd like to.\nC:\nAnd then I -- after I get Weldon and his fellows\nto work on a statement for Harold here, I want\nyou to see that, too.\nB:\nAll right.\nC:\nBecause we don't want any statement going out that\ndoesn't support your position here.\nB:\nWould you contemplate getting something out by\nFriday?\nC:\nI would plan to have it to release Thursday night\nfor the Friday morning papers.\nB:\nThat'd be swell.\nC:\nThat would just fit.your schedule.\nB:\nJust exactly.\nC:\nThat's what I thought and that's what I'm going to\ntell them is my schedule on it.\nB:\nAll right.\nC:\nOkay, Dan.\nB:\nI'll call you in the morning the first thing.\nC:\nAll right.\nB:\nBye.\nRegraded Unclassified\n114\n- 14 -\nH.M.JR: We have covered a lot of ground. Herbert,\nwe are not in the position, intellectually, to give it to\nthe Congress, because, after all, it is up to the Bureau\nof the Budget. That ought to ease your Oregonian\nconscience.\nMR. GASTON: That is right.\nH.M.JR: Willamette Valley.\nMR. GASTON: Yes, and Puget Sound.\nH.M.JR: Beautiful valley.\nMR. GASTON: Both.\nH.M.JR: Well, I think we have made real progress, and\nI feel this way, that once you get that, it still gives us\ntime.\nThen you fellows - I would raise the question that we\nwant to re-examine the so-called gap, see - as between\nBudget and ourself, so that we are together on that.\nMR. BELL: I think we are in excellent shape on the\ngap because the figures you have used have been around ninety-\nfour or ninety-five billions. He had been using the financing\nestimate and they are awfully close now. And in your prepara-\ntion of those estimates you consult with & lot of people,\namong others, Colm, don't you?\nMR. LINDOW: Yes, that is right.\nMR. HAAS: Colm is coming over to see me tomorrow at\nthree o' clock. We can checkwith him at that time.\nH.M.JR: I feel better tonight than I did. I think\nwe are making a little progress. This was the damnedest\nthing to go up against, this thirteen billion dollars. It\nseemed unanswerable. If I could just offer this much advice,\nthe more light they can throw on the Budget, the better I\nam pleased, see? You can see they don't like the Army.\nRegraded Unclassified\n115\n- 15 -\nNow, this is the Budget's job. If they want to do it at\npress conference, I would tell them for God's sake to\nhave & careful press 00 onference.\nMR. BELL: After all, we have to have our contacts on\nfinancing estimates. We don't go through the Budget for\nthat.\nH.M.JR: No. Well, I think now, Roy, you have got\nthree things in the works.\nMR. BLOUGH: Those three charts you asked for this\nmorning; the sales tax chart showing the break-down by\nnecessities of various kinds; the chart showing the taxes\nas a percentage of income for various classes of incomes; and\na chart on the nine million taxpayers.\n(The Secretary held a telephone conversation with\nMr. Fred Vinson, as follows:)\nRegraded Unclassified\n116\nNovember 23, 1943\n4:41 p.m.\nHMJr:\nHello.\nOperator:\nJudge Vinson.\nHMJr:\nHello.\nFred\nVinson:\nHello, Henry.\nHMJr:\nHow are you?\nV:\nAll right, sir.\nHMJr:\nFred, I, through Colonel Halsey's office, asked\nfor an opportunity to see as many of the Democratic\nmembers of the Finance Committee as possible tomorrow,\nand I told them I'd like to have them for lunch. Well,\nhe fixed it up in Halsey's office. They just let me\nknow\nV:\nYes.\nHMJr:\nfor tomorrow. And I'd be very pleased if you'd\ngo along with me.\nV:\nWell, Henry, I don't -- I don't believe I can. I've\ngot -- I've got this coal business that's going to\ntake me day and night\nHMJr:\nOh.\nV:\nputting the price on coal and some of the mines\nare shutting down.\nHMJr:\nI Bee.\nV:\nAnd I've got to get that out. Then, I don't know that\nI could add anything to what you would say or do except\njust to backstand you.\nHMJr:\nWell, that's what I want.\nV:\nI'm ready to do that any time or any place.\nHMJr:\nWell, I just want to let you know you're welcome.\nV:\nWell, that's mighty fine but I believe that -- uh --\nanother thing if I got up there, why, they might want\nto talk about some other things.\nRegraded Unclassified\n117\n- 2 -\nHMJr:\n(Laughs) I see.\nV:\n(Laughe) Sometimes when you're not around, why, they\ncan't talk about them.\nHMJr:\nWell....\nV:\nThey've been wanting me to back up on this wage -- uh --\nrailroad business, and I don't know how I could back up.\nI've already decided it\nHMJr:\nYeah.\nV:\nand it looks to me like I've lost jurisdiction\nof it.\nHMJr:\nWell, we -- I'd like to keep you posted up to the time\nI go up there.\nV:\nWell, that's fine.\nHMJr:\nWell, Bell has been working all day with Wayne Coy on\nthe question of getting out a new summation on an\nanswer to the $13 billion. You see?\nV:\nYep.\nHMJr:\nHe just got through talking to Wayne Coy and -- who's\ncome to an understanding with Jimmy Byrnes.\nV:\nWell, I was over there when Wayne was talking to\nJimmy and me. It was after the War Mobilization\nCommittee meeting.\nHMJr:\nOh, good.\nV:\nAnd Wayne told me about the conversations\nHMJr:\nGood.\nV:\nand I was particularly strong that the debt\nsituation would be stressed.\nHMJr:\nYeah.\nV:\nPresent debt and debt as estimated as of the end of\nthe fiscal year, because that seems to me to be the\nmaterial figures as to the question of tax program.\nRegraded Unclassified\n118\n- 3 -\nHMJr:\nRight. Well -- uh,\nV:\nYou agree to that, don't you?\nHMJr:\noh, yes.\nV:\nAnd our statements that we made before the Committee\nstand because it don't make any difference how much\nthey save.\nHMJr:\nYeah.\nV:\nWhat they need to do is to pay some of this debt\nwhile they've got the money and at the same time\nkeep the house from burning down.\nHMJr:\nWell, from what Bell tells me and what Wayne Coy told\nhim, I feel that they can explode that $13 billion\nthing.\nV:\nOh, yes. That's phoney as far as\nHMJr:\nYeah.\nV:\nas the tax problem is concerned -- or the inflation\nproblem, either one.\nHMJr:\nAnd Wayne Coy has promised us that he'd get it out\nnot later than Thursday night.\nV:\nWell, that's fine.\nHMJr:\nwhich would be helpful all around.\nV:\nThat's right.\nHMJr:\nAnd -- because -- but it's really the Budget's job,\nI think, to do that.\nV:\nWell, that -- the way I recall it, it was left for\nWayne and Budget to prepare it.\nHMJr:\nWell, it's in the way.\nV:\nYep.\nHMJr:\nWell, thank you.\nV:\nAll right, Henry.\nHMJr:\nBye.\nRegraded Unclassified\n119\n- 16 -\nH.M.JR: Here they were, fighting to get into the tax\nthing, and now it doesn't look so good. Well, I invited\nhim up to lunch with me, but he is too busy and he is\nafraid they might ask him a lot of questions about other\nthings. He doesn't want to go up.\n(Mrs. Klotz entered the conference.)\nH.M.JR: I asked Jimmy Byrnes to help me and come over\nto lunch with Vinson. He is too busy. He won't bother with\nthe tax bill. It is all to the good, isn't it? (General\nassent)\nI had Nathan here and he made a suggestion that I\ndon't know whether it was good or not, but I pass it along\nfor what it is worth. He says he thinks that if we would\nsimply say that these nine million people, or however many\npeople are going to be excluded from paying an income tax -\ntheir income amounts to so much; let's say it is twenty or\ntwenty-three million; deduct that from the total national\nincome and say the rest of it is taxable; and talk in\nterms of one hundred and twenty rather than in terms of\none hundred and forty-five, when twenty-three of it you\ncan't tax, anyway. Well, I am throwing it at you. I don't\nknow whether it is good or not. They are talking about\nfour-fifths of the people in terms of one hundred and forty-\nfive billion.\nMR. GASTON: He is talking about the tax base you are\neliminating rather than the number of people.\nH.M.JR: I think it is an interesting idea. I am\nthrowing it at you. I think he said four-fifths of the\nincome is among five thousand. They say four-fifths of\none hundred and forty-five billion when they should say\nfour-fifths of one hundred and twenty-odd billion.\nMR. SURREY: I think the whole thing has to be explained.\nMR. BLOUGH: Would it be all right if I called Nathan\nand had him explain it to me?\nRegraded Unclassified\n120\n- 17 -\nH.M.JR: Do you (Smith) see any reason why not?\nMR. SMITH: No, I don't.\nH.M.JR: No, I think he would be complimented.\nMR. BELL: I think the debt thing Vinson mentioned is\nimportant. You will have a two hundred million dollar debt\nat the end of this year, whatever you do. They ought to\nbe 8. little worried about that regardless of the change in\nappropriation and expenditures.\nH.M.JR: Did you say anything about the debt?\nMR. SMITH: That is what it is all about, just concen-\ntrating on the two hundred million you got backed up, and\nto hell with what you get cut off of from now on.\nH.M.JR: Did you find anything about Mr. Mellon and\nMr. Coolidge?\nMR. SMITH: I haven't yet. Shere was looking for Paul.\nI haven't heard from him.\nMr. BLOUGH: I haven't checked on that. I don't know.\nThey haven't reported anything.\nH.M.JR: Well, I think this is all right. Now, here\nis the point; we are making steady progress. I am going\nto Secretary Hull's at nine-thirty. I would like awfully\nto have another meeting at eleven with this group. So,\nif you could tell General Richards, and I think you ought\nto tie up Wayne Coy with an appointment the first thing\nin the morning, and be ready for me at eleven.\nMR. BELL: I will.\nH.M.JR: This has been a good day. I am going to get\na good statement from Roy, now, that will be really some-\nthing!\nRegraded Unclassified\n121\nNovember 23, 1943\nMEMORANDUM\nTo:\nSecretary Morgenthau\nFrom: Mr. Gaston\nI talked to Walter Lippmann yesterday and to\nErnest Lindley today. I have an appointment with\nRaymond Clapper for tomorrow.\nWalter Lippmann's general comment was that he\ndidn't think that the Treasury's case had been well\nenough presented to the public. He asked about the\nnine million taxpayers whom we propose to excuse, in-\ndicating that he thought that the weakness of the\nTreasury's case lay there. When I explained to him\nwho these nine million were and that there would still\nbe more than thirty-five million taxpayers left and\nthat 53 per cent of our additional taxes were in the\nbrackets below $5000, he seemed impressed. He asked\nme our arguments against the sales tax. After I had\nsummarized them he agreed with us in our opposition\nto the sales tax.\nErnest Lindley thinks that in your Senate\nappearance you should concentrate on the general argu-\nment for substantial increases in taxes both on the\nmoral ground that we ought topay all that we can afford\nto pay now and on the ground of preventing inflation.\nHe was strongly impressed with the strength of the\nargument that it will be unfair to saddle the returning\nsoldier with & greater debt than is absolutely necessary.\nHe thought that instead of presenting the same detailed\nrecommendations for new taxes that we presented to the\nHouse the plea for new taxes ought to be general and\nthat we should indicate 8. receptive attitude toward\nany substantial taxes the Congress sees fit to impose.\nHe thought that we ought not to take even a completely\nunyielding attitude toward the sales tax but should ac-\ncept 8. properly modified sales tax, but only if it were\na minor part of a program yielding very substantial new\nrevenue. He thought the Congressional argument against\nsubsidies could be completely turned on them as incon-\nsistent with their attitude on taxation.\nwr\nRegraded Unclassified\n122\nNovember 23. 1943\nHerbert Gaston\nThe Secretary\nEvidently you had a very successful interview with\nWalter Lippmann and I, therefore, suggest that you also\nsend for Ernest Lindley and several other of the prominent\ncolumnists and give them the same kind of talk that you\ndid to Lippmann. I would appreciate it if you would ...\nas many of them as possible between now and Friday night\nso you could give me the benefit not later than Saturday\nmorning. Then we will have to finally knock my tax state-\nment into shape. Thank you. 0 Kuy\nis\nRegraded Unclassified\n123\nNovember 23, 1943\nHerbert Gaston\nThe Secretary\nIf you agree with me that it is worth while seeing the\ndifferent columnists, I wish you would include Ray Clapper\non your list.\nRegraded Unclassified\n124\nPOLYICTORY\nINTERDEPARTMENTAL WAR SAVINGS BOND COMMITTEE\nBUY\nUNITED\nSTATES\nWAR\nWASHINGTON\nSOMOS\nSTANDS\nOFFICE OF CHAIRMAN\n11-23-43\nDEPARTMENT\nTRIFIDEN TREASURY\nTHIRD WAR LOAN DRIVE\nTHE WHITE HOUSE\nThe President\n$5,000\nMr. Casey\n10,000\nMr. Latta\n11,000\nAdmiral Leahy\n4,000\nMiss Ada S. Smith\n2,000\nMrs. Roosevelt\n800\nJudge Rosemans\n1,200\nAdmiral Brown\n1,000\nMr. Niles\n1,000\nMr. Early\n500\nMrs. Thompson\n500\nMr. McIntyre\n500\nMr. Hopkins\n225\nMr. Currie\n250\nGeneral Watson\n200\n$38,175\nAll other\n304\nBond purchases (cash\nand pay-roll allotment $38,479\nQuota\n$6,167\nPercentage of quota\n624.0\nRegraded Unclassified\nTO:\n125\nD\nThe Secretary\nThis is what\ncarperation does.\nDWB\n11/23\nOffice of the Under Secretary\nn\n126\nTREASURY BILLS\nNov. 26\nNov. 18\nNov. 12\nNov. 4\ncunt offered\n$1,000 M\n$1,000 M\n$1,000 M\n$1,000 M\nde tendered\n1,622\n1,222\n1,247\n1,143\ncepted at fixed rate\n78\n74\n76\n67\nW rate\n.360%\n.297%\n.340%\n.336%\nIgh rate\n.376\n.376\n.376\n.376\nrerage rate\n.376\n.375\n.3757\n.375\nmount in New York\n$684 W\n$627 M\n$642 M\n$535 M\ncount in Chicago\n75\n129\n129\n159\nmount in San Francisco\n81\n64\n74\n74\nlunt in balance of country\n160\n180\n155\n232\nvember 23, 1943.\nRegraded Unclassified\nSECRE\n127\nFORVICTORY\ntreasury DEPARTMENT\nBUY\nUNITED\nSTATES\nWAR\nPROCUREMENT DIVISION\nBONDS\nAND\nSTAMPS\nWASHINGTON 25\nVFICE OF THE DIRECTOR\nNovember 23, 1943\nMEMORANDUM TO THE SECRETARY:\nThere is submitted herewith the weekly\nreport of Lend-Lease purchases.\nFor the purpose of assisting in maintaining\nthe maximum production of steel, we have been re-\nquired by the War Production Board to accept, for\nthe account of Lend-Lease, some premium cost pro-\nduction of steel. This practice is being discon-\ntinued by the War Production Board as of December 1,\n1943.\nClifton.E. Mack\nDirector of Procurement\nRegraded Unclassified\n128\nLEND-LEASE\nSECRET\nTREASURY DEPARTMENT, PROCUREMENT DIVISION\nSTATEMENT OF ALLOCATIONS, OBLIGATIONS (PURCHASES) AND\nDELIVERIES TO FOREIGN GOVERNMENTS AT U. S. PORTS\nAS OF NOVEMBER 17, 1943\n(In Millions of Dollars)\nAdministrative\nMiscellaneous &\nTotal\nU.K.\nRussia\nChina\nExpenses\nUndistributed\nAllocations\n$3974.6\n$1977.1\n$1558.2\n$109.8\n$11.0\n$318.5\n(3974.1)\n(1977.1)\n(1557.9)\n(109.8)\n(11.0)\n(318.3)\nPurchase Authoriza-\n$3253.8\n$1713.7\n$1305.2\n$43.8\n-\n$191.1\ntions (Requisitions)\n(3242.4)\n(1710.1)\n(1296.2)\n(43.7)\n-\n(192.4)\nRequisitions Cleared\n$3158.2\n$1662.7\n$1280.8\n$43.4\n-\n$171.3\nfor Purchase\n(3156.9)\n(1660.9)\n(1278.8)\n(43.4)\n-\n(173.8)\nObligations\n$3040.5\n$1631.3\n$1229.6\n$43.3\n$8.4\n$127.9\n(Purchases)\n(3038.3)\n(1628.8)\n(1229.2)\n(43.3)\n(8.4)\n(128.6)\nDeliveries to Foreign\n$1464.7\n$1010.9\n$412.9\n$19.8\n-\n$21.1\nGovernments at U. S.\n(1436.7)\n(991.0)\n(405.6)\n(19.7)\n-\n(20.4)\nPorts*\n*Deliveries to foreign governments at U. S. Ports do not include the\ntonnage that is either in storage, \"in-transit\" storage, or in the\nport area for which actual receipts have not been received from the\nforeign governments.\nNote: Figures in parentheses are those shown on report of November 10, 1943.\nRegraded Unclassifie\n129\nSECRET\nEXPLANATION OF DIFFERENCES.\nThe reductions in Purchase Authorizations,\nRequisitions Cleared and Obligations in the\nMiscellaneous Column are 8. result of adjustments\nof requisitions estimates to actual contracts.\nRegraded Unclassified\nNX130\n130\nTREASURY DEPARTMENT\nINTER OFFICE COMMUNICATION\nDATE\nSecretary Morgenthau\nTO\nNOV 23 1943\nFROM\nRandolph Paul\nRe: Argentina\nOn Saturday, November 20, John Pehle attended for\nHerbert Gaston, who was out of the city, a meeting of\nthe Censorship Policy Board of which the Postmaster\nGeneral is Chairman. Vice President Wallace was present\n1\nat the meeting and made several remarks concerning\nArgentina. These remarks were made in the course of the\ndiscussion with regard to the termination of censorship\nas hostilities cease. The Vice President said that al-\nthough he recognized that censorship must stop with the\nend of the war he thought we ought to bear in mind that\nArgentina and the Fascist tendencies which the present\ngovernment has shown may be a problem to us even after\nthe war.\nIn view of the Vice President's feelings on this\nmatter you may wish to discuss with him the Treasury's\nviews with respect to the freezing of Argentina.\nArp\nRegraded Unclassified\n131\nTREASURY DEPARTMENT\nINTER OFFICE COMMUNICATION\nDATE\nTO\nSecretary Morgenthau\nFROM Randolph Paul\nNOV 23 1943 x\nSubject: Transfers of Argentine Funds.\nI am informed that during the week ending November 20,\n$1,727,000 was transferred from Argentine account to the\naccounts of other countries, including Sweden, Uruguay, and\nPanama, and that $6,220,000 was transferred from Argentine\naccount to the Central Bank account.\nI am further informed that the third shipment of\n$1,250,000 of Argentine gold, formerly held by the Federal\nReserve Bank of New York for Central Bank account, left\nNew Orleans for Argentina early in the morning of November 15\non the SS Iguazu, and that the fourth shipment of $1,250,000\nof such gold left New Orleans for Argentina early in the morning\nof November 17 on the SS San Juan.\nR.E.P.\nBy ggoen\nRegraded Unclassified\n132\nNOV 23 1943\nMy dear Mr. Hull:\nReference is made to your letter of November 19,\n1943 (Reference FD), relating to the servicing on\nDecember 1, 1943, of the French Government 7% dollar\nbonds due 1949.\nPursuant to your request, this Department is\ndenying the request of the French North African\nauthorities to transfer funds under their control for\nthe servicing of this issue and in lieu thereof is\nissuing an appropriate directive license for the trans-\nfer of the necessary funds from official accounts of\nthe former French Government in the menner requested\nby you.\nSincerely yours,\n(Signed) H. Morgenthau, JI.\nThe Honorable\nCordell Hall,\nSecretary of State.\nAUFox:rd 11/20/43\nRegraded Unclassified\n133\n11/13/43\nATTENTION: HR. KIMBALL\nYou are instructed to issue a directive license to the French\nAmerican Banking Corporation, New York, directing them, pursuant to the provi-\nsions of Section 5(b) of the Trading with the enemy Act, as amended, to charge\nthe account with them in the name of the Paierie Generale Aux Etats Unis with\nthe our of $2,400,000 and to pay this amount to J. P. Morgan & Company, In-\ncorporated, New York, for credit to an account entitled \"Government of the\nFrench Republic 7% Bonds due 1949, Account for Payment of Bonds Drawn for\nRedemption on December 1, 1943°\napproved \"H.M.Jr.\"\nAUFoxidg 11/6/43\nRegraded Unclassified\n134\nDRAFT OF CABLE TO BE SENT TO HOFFMAN FROM THE SECRETARY OF\nTHE TREASURY.\nFor your information the French North African authorities\nrequested on October 15 that $2,400,000 be transferred from the\naccount in the name of \"Tresorier General Aux Etats Unis du\nComite Francais de la Liberation Nationale - General Account\"\nto J. P. Morgan & Company, Inc., for the purpose of providing\nfunds to make payments to presentors of the French Government\n7% Loan due December 1949 which were drawn for redemption on\nDecember 1, 1943. The State Department has objected to the use\nof such funds and has requested that the transfer be denied and\ninstead has requested that funds for the purpose of servicing\nthis issue be made available by directive license from the\naccount with the French American Banking Corporation, New York,\nof the former French Government in the name of \"Paierie Generale\nAux Etats Unis.\" In accordance with the request of the State\nDepartment, Treasury is disapproving the transfer of the North\nAfrican funds and is directing the necessary transfer from the\nformer French Government account in the name of \"Paierie Generale\nAux Etats Unis.\"\n(Signed) a. Morgenthan, Jr.\nAUFox: JWPehle:rd 11/6/43\nRegraded Unclassified\n135\nTREASURY DEPARTMENT\nINTER OFFICE COMMUNICATION\nDATE NOV 23 1943\nSecretary Morgenthau\nTO\nFROM Randolph Paul\nOn October 15, 1943, the French North African authorities\nrequested permission to transfer from their funds in the United\nStates $2,400,000 to J. P. Morgan & Company, Inc., New York,\nfor the purpose of providing the balance of the funds necessary\nto service on December 1, 1943, the French Government 7% loan\ndue 1949. The French North African authorities may have de-\nsired to utilize their funds for this purpose for political\nreasons. For the same reasons the State Department has objected\nto the use of such funds for the servicing of this issue and\nhas requested Treasury to deny the request of the French North\nAfrican authorities and to issue an appropriate directive trans-\nferring funds from the account of the former French Government\nin the name of \"Paierie Generale Aux Etats Unis\" for the purpose\nof servicing the issue on December 1, 1943.\nThe necessary directive, the letter from State of November 19\nand our proposed reply, together with a wire reporting this situation\nto Hoffman, Treasury representative in North Africa, are attached\nfor your approval.\nR.E. F.\nByggeton\nRegraded Unclassified\n-\ncheck\nTHE DECRETARY OF STATE\n1\na\nJ\nDEPARTMENT OF STATE\nWASHINGTON\nNovember. 19. 1943\nIn reply refer to\nPD\nMy dear Mr. Morgenthau:\nI have your letter of November 11, 1943 regarding\nprovision for the December 1, 1943 service requirements\nof the French Government 7% dollar bonds due 1949. The\ncase involves a discussion RB to whether these bonds\nshould be serviced and, if 80, the source of funds and\nthe manner in which the requisite sum of $2,400,000 would\nbe transferred to the paying agent to permit the actual\ndisbursement of only some $200,000 to $300,000 to bond-\nholders with the balance remaining indefinitely blocked\nas security for the legal protection of the paying agent.\nYou set forth in your letter three possible choices\nin the present case: (1) To permit the French Committee\nof National Liberation to use its funds; (2) Default; and\n(3) Transfer of blocked official funds of the former French\nGovernment. I am informed that this Department carefully\ndeliberated each of these courses of action in arriving\nat the decision communicated in its letter of November 5,\n1943,\nThe Treasury Department will recall that the President\nin his statement of August 26, 1943, made in connection\nwith the establishment of the French Committee of National\nLiberation, indicated that this Government recognized the\nCommittee as functioning within specific limitations\nduring the war. Under the present circumstances, this\nDepartment would regard 86 very undesirable the issuance\nof a license to permit the French Committee of National\nLiberation to provide for the service of these bonds.\nThe compliance with the request of the Committee at this\ntime\nThe Honorable\nPOLYICTORY\nBUY\nHenry Morgenthau, Jr.,\nENTRED\nSecretary of the Treasury.\nRegraded Unclassified\n-2-\ntime would make it appear as though this Government\nrecognizes the Committee as the authority having responsi-\nbility for external obligations of France. The Treasury\nDepartment 18 therefore requested to deny the application\npending before it,\nThe Department of State would also regard the foreing\nof a default in these bonds 8.8 undesirable in view of the\nabundant record of special efforts made by representatives\nof the respective French factions to prevent default aris-\ning only from the effects of laws of the United States.\nAs you know, it has been the policy of this Depart-\nment, wherever possible, to give effect to known desires\nof the people of occupied countries to continue service\nof their dollar bonds in the United States out of such of\ntheir funds 8.8 could be made available for the purpose.\nIn the case of certain occupied countries it has been\npossible to give effect to this policy through licenses\nissued for accredited representatives of recognized govern-\nments whose authority to receive, hold and dispose of the\nfunde in question has been effective because of the issuance\nof certifications by the Secretary of State to that effect\npursuant to Section 25B of the Federal Reserve Act. This\nprocedure is not available in the special circumstances\naffecting France. It 18 believed, therefore, that the\ntransfer of the necessary provision under Treasury directive\nin the manner requested in this Department's letter of\nNovember 5, 1943, to satisfy the legal requirements from\nofficial funds of the former French Government 1s justified,\nand this Department renews that request.\nSincerely yours,\nCorduce shee\nRegraded Unclassified\n138\nGiven out by Mr. White at 8. press conf.\n139\nNovember 23, 1943\nSTATEMENT BY SECRETARY MORGENTHAU:\nWhen the Treasury made public the tentative proposal for an\nInternational Stabilization Fund, I said that we were studying means\nof encouraging and facilitating international investment for reconstruc-\ntion and development. A few weeks ago I appeared before the Congressional\nCommittees and summarized for them the principles which we believe should\nguide us in the establishment of a United Nations Bank for Reconstruction\nand Development.\nThe technical staffs of the Treasury and other interested departments\nand agencies have now prepared a tentative proposal for such a Bank.\nThis tentative proposal is being sent to the Finance !linisters of the\nUnited Nations and the countries associated with them, for consideration\nand for study by their technical staffs. The Finance Ministers have been\ninformed that this tentative proposal does not represent the official\nviews of this Government but it is an indication of the views held by our\ntechnical staffs.\nTie are releasing for publication the tentative proposal for a United\nNations Bank for Reconstruction and Development and a covering memorandum\non the problem of international investment. These two documents, sent to\nthe Finnnce Ministers, are being released to make them available for\npublic discussion. It is our intention to discuss the tentative proposal\nwith business, banking and other interested groups in this country.\nThe technical staffs of the Treasury and other departments of this\nGovernment are of the opinion that an International Stabilization Fund\nand a Bank for Reconstruction and Development could help provide a sound\nfinancial foundation on which private enterprise can build a prosperous\nworld economy.\nRegraded Unclassified\nSTRIGTLY CONFIDENTIAL\n140\nA United Nations Bank\nFor Reconstruction and Development\nOne of the important international economic and financial\nproblems which will confront the United Nations at the end of\nthe war will be the unprecedented need for foreign capital.\nIn the areas devastated by war or plundered and ravaged by\nthe enemy, factories and mines, public utilities and railroads,\npublic buildings and public works will have to be repaired or\nrestored. In all of the United Nations, industries now pro-\nducing war goods will require capital for reconversion to\npeacetime production. Finally, in many areas of the world,\nlarge investment will be needed for industrial, agricultural\nand commercial development.\nCountries whose productive capacity has been seriously\nimpaired by war will find that their industries cannot pro-\nvide the capital goods and their people cannot provide the\nsavings they require for reconstruction. Most non-industrial\ncountries will of necessity be dependent upon foreign invest-\nment to acquire the funds for the purchase of machinery,\nequipment, and other capital goods for development. And even\nRegraded Unclassified\n141\n- 2 -\nin those countries where a considerable part of the need for\ncapital can be met locally, there will be some need for foreign\ncapital to supplement the funds that can be raised at home.\nWith the return of an assured peace, private financial\nagencies may be expected to supply most of the needed short-\nterm foreign capital. When the shipping situation is improved\nand peacetime industry here and abroad has recovered, many\nbusiness firms will be eager to sell their products abroad\non reasonable and even generous credit terms. And banks\nlikewise will haston to expand their foreign business, reopen-\ning and establishing branches abroad, and assisting in the\nfinancing of international trade.\nIt is not unreasonable to hope that with the return of\npeace there will also be a gradual resumption of long-term\ninternational investment, particularly in the form of the\nestablishment of foreign branch plants and the acquisition\nof shares in established foreign enterprises. With the\ngrowth of confidence in monetary stability, foreign invest-\nments will gradually assume the form of publicly floated\nloans to governments and municipalities, and to public\nutilities and other industries.\nRegraded Unclassified\n142\n- 3 -\nThis flow of private capital to war stricken countries\nwill be encouraged by an adequate program of international\nrelief and rehabilitation which helps to quickly restore to\na working basis the economic life of those countries.\nAnother, and possibly even more important, stimulant to\nforeign investments, would be the existence of an interna-\ntional agency, such as the International Stabilization Fund,\ndesigned to promote stability of foreign exchange rates and\nfreedom from restrictions on the withdrawal of earnings.\nSuch an agency could do much to enhance the attractiveness\nof foreign investments.\nWhile there will undoubtedly be substantial amounts of\nlong-term foreign investment even in the early postwar period,\nthe flow of capital to countries greatly in need of foreign\ncapital is likely to be inadequate for many years to come.\nPrivate capital will understandingly hesitate to venture\nabroad in anything like the required volume. It has\nsuffered too many losses from war, from depreciating cur-\nrencies, from exchange restrictions, and from business\nfailures and defaults. There is little evidence to\njustify the hope that in the years immediately after the\nRegraded Unclassified\n143\n- 4 -\nwar investors will lend the large sums that can be\neconomically used in foreign countries.\nObviously, it would be desirable to encourage in\nevery way, the provision of capital for productive pur-\nposes through the usual private investment channels, and\nto the extent that private investment is inadequate, to\nprovide supplemental facilities. The problem is funda-\nmentally an international problem and only an interna-\ntional governmental agency equipped with broad powers\nand large resources can effectively encourage private\ncapital to flow abroad in adequate amounts and provide\na part of the capital not otherwise available.\nThe primary aim of such an agency should be to\nencourage private capital to go abroad for productive\ninvestment by sharing the risks of private investors and\nby participating with private investors in large ventures.\nThe provision of some of the capital needed for reconstruc-\ntion and development, where private capital is unable to\ntake the risk, is intended to remain secondary in the\noperations of such an agency. It should, of course,\nscrupulously avoid undertaking loans that private investors\nare willing to make on reasonable terms. It should perform\nonly that part of the task which private capital cannot\ndo alone.\nRegraded Unclassified\n144\n- 5 -\nThe need for foreign capital will be so great and the\nprovision of adequate capital so important that it would be\nextremely shortsighted to neglect this urgent international\nproblem. If private capital should suffice there would\nthen be little for an international agency to do, beyond\nencouraging private investment. If, however, private\ncapital were to prove unable fully to meet the needs, then\nsuch an international agency would be able to fill the breach\nuntil private capital again flowed freely and the demand\nfor foreign capital throughout the world became less urgent.\nIt is imperative that we recognize that the investment\nof productive capital in undeveloped and in capital needy\ncountries means not only that those countries will be able\nto supply at lower costs more of the goods the world needs,\nbut that they will at the same time become better markets\nfor the world's goods. By investing in countries in need.\nof capital, the lending countries, therefore, help them-\nselves as well as the borrowing countries. If the capital\nmade available to foreign countries would not otherwise\nhave been currently employed, and if it is used for produc-\ntive purposes, then the whole world is truly the gainer.\nForeign trade everywhere will be increased; the real cost\nof producing the goods the world consumes will be lowered;\nRegraded Unclassified\n145\n- 6 -\nand the economic well-being of the borrowing and lending\ncountries will be raised.\nOne great contribution that the United Nations can\nmake to sustained peace and world-wide prosperity is to\nmake certain that adequate capital is available on reason-\nable terms for productive uses in capital-poor countries.\nWith abundant capital, the devastated countries can move\nsteadily toward rehabilitation and a constantly improving\nstandard of living. Nothing could be more conducive to\npolitical stability and to international collaboration.\nWithout adequate supplies of capital, however, recovery\nin Europe and Asia will be slow and sporadic, and economic\ndiscontent and international bitterness will in time assume\ndisturbing proportions. To spend hundreds of billions to\nfight a war thrust upon us, and then to balk at investing\na few billions to help assure peace and prosperity would\nappear to be 8 singularly unwise policy.\nAccompanying this memorandum is a draft proposal for\na Bank for Reconstruction and Development of the United\nand Associated Nations. The draft was prepared by the\ntechnical staff of the United States Treasury in consulta-\ntion with the technical staffs of other departments of\nthis Government. The proposal has neither official status\nRegraded Unclassified\n146\n- 7 -\nnor the approval of any department of this Government. It\nis in outline form touching on the more important points and\nis intended only to stimulate thoughtful discussion of the\nproblem in the hope that such discussion will call forth\nconstructive criticism, suggestions, and alternative pro-\nposals for possible leter submission to the appropriate\nauthorities and to the public.\nA. United Nations Bank for Reconstruction and Develop-\nment is proposed AS snother international agency needed to\nhelp attain and maintain world-wide prosperity after the\nwor. It is designed BE A companion agency to an International\nStabilization Fund. Each agency could stand and function\neffectively without the other; but the establishment of such a\nBank would make easier the task of an International Stabili-\nzation Fund, and the successful operation of an International\nStabilization Fund would enhance the effectiveness of the Bank.\nTogether, the two institutions could help provide a sound\nfinancial foundation on which private enterprise can build A\nprosperous world economy.\nHenry Morgenthau, Jr.,\nSecretary of the Treasury.\nWashington, D. C.\nNovember, 1943.\nRegraded Unclassified\n147\nSTRICTLY CONFIDENTIAL\nU. S. Treasury\nNovember, 1943\nPreliminary Draft Outline\nof a Proposal for\nA United Nations Bank\nFor Reconstruction and Development\nPreamble\n1. The provision of foreign capital will be one of the\nimportant international economic and financial problems of\nthe postwar period. Many countries will require capital for\nreconstruction, for the conversion of their industries to\npeacetime needs, and for the development of their productive\nresources. Others will find that foreign investment provides\na growing market for their goods, Sound international invest-\nment can be of immense benefit to the lending as well as to\nthe borrowing countries.\n2. Even in the early postwar years it may be hoped\nthat a considerable part of the capital for international\ninvestment will be provided through private investment chan-\nnels. It will undoubtedly be necessary, however, to encour-\nage private investment by assuming some of the risks that will\nbe especially large immediately after the war and to supple-\nmcnt private investment with capital provided through inter-\nnational cooporation. The United Nations Bank for Recon-\nstruction and Development is proposed as & permanent institu-\ntion to encourage and facilitato international investment for\nsound and productive purposes.\n3. The Bank is intended to cooperato with private finan-\ncial agencies in making available long-term capital for recon-\nstruction and development and to supplement such invcstment\nwhere private agencies are unable to meet fully the legitimato\nneeds for capital for productivo purposes, The Bank would\nmake no loans or investments that could be secured from pri-\nvate investors on reasonable terms. The principal function of\nthe Bank would be to guarantee and participate in loans made\nby private investment agencies and to lend directly from its\nown resources whatever additional capital may be needed. The\nfacilities of the Bank would be available only for approved\ngovernmental and industrial projects which have been guaren-\nteed by national governments. Operating under these princi-\nples, the Bank should be a powerful factor in encouraging the\nprovision of private capital for international investment.\n4. By making certain that capital 18 available for pro-\nductive uses on reasonable terms, the Bank can make an 1m-\nportant contribution to enduring pence and prosperity. With\nadequate capital, countries affected by the war can move\nstendily toward reconstruction, and the newer countries can\nundertake the economic development of which they are capable.\nInternational investment for these purposes can be a signifi-\ncant factor in expanding trade and in helping to maintain a\nhigh level of business activity throughout the world.\nRegraded Unclassified\nI. The Purposes of the Bank\n148\n1. To assist in the reconstruction and development of\nmember countries by cooperating with private financial\nagencies in the provision of capital for sound and\nconstructive international investment.\n2. To provide capital for reconstruction and development,\nunder conditions which will amply safeguard the Bank's\nfunds, when private financial agencies are unable to\nsupply the needed capital for such purposes on reason-\nable terms consistent with the borrowing policies of\nmember countries.\n3. To facilitate & rapid and smooth transition from &\nwartime economy to a peacetime economy by increasing\nthe flow of international investment, and thus to help\navoid serious disruption of the economic life of mem-\nber countries.\n4. To assist in raising the productivity of member countries\nby helping to make available through international col-\nlaboration long-term capital for the sound development of\nproductive resources.\n5. To promote the long-range balanced growth of international\ntrade among member countries.\nII. Capital Structure of the Bank\n1. The authorized capital shall be equivalent to about\n$10 billion consisting of shares having a par value\nequal to $100,000.\n2. The shares of the Bank shall be non-transferable, non-\nassessable, and non-taxable. The liability on shares\nshall be limited to the unpaid portion of the subscrip-\ntion price.\n3. Each government which is B. member of the International\nStabilization Fund shall subscribe to & number of shares\nto be determined by an agreed upon formula. The formula\nshall take into account such relevant data as the\nnational income and the international trade of the mem-\nber country.\nSuch & formula would make the subscription of the United\nStates approximately one-third of the total.\n4. Payments on subscriptions to the shares of the Bank shall\nbe made as follows:\na. The initial payment of each member country shall be\n20 percent of its subscription, some portion of which\n(not to exceed 20 percent) shall be in gold and the\nremainder in local currency. The proportions to be\npaid in gold and local currency shall be graduated\naccording to an egreed upon schedule which shall take\ninto account the adcquacy of the gold and free foreign\nexchange holdings of each member country.\nRegraded Unclassified\n149\n- 3 -\nII-4 b. The member countries shall make the initial pay-\nments within 60 days after the dato set for the\nopcrations of the Bank to begin. The remainder\nof their respective subscriptions shall be paid\nin such amounts and at such times CS the Board\nof Directors may determine, but not more than 20\npercent of the subscription may bc called in any\none year.\nC. Colls for further payment on subscriptions shall\nbe uniform on all shares, and no calls shall bc\nmade unloss funds are needed for the opcrations\nof the Bank. The proportion of subsequent pay-\nments to be made in gold shall be determined by\nthe schedule in II-4-c LS it applics to each mem-\nber country at the time of sach call.\n5. A substantial part of the subscribed capital of the\nBank shall be reserved in the form of unpaid sub-\nscriptions 08 n surety fund for the sccurities guaran-\ntood by the Bank or issued by the Bank.\nb. When the cash resources of the Bank are substantially\nin CXCOSS of prospective needs, the Board may return,\nsubject to future call, uniform proportions of the sub-\nscriptions. When the local currency holdings of the\nBunk exceed 20 percent of the subscription of any mem-\nber country, the Board may arrange to repurchase with\nlocal currency some of the shares hold by such a\ncountry.\n7. Ench member country agrees to repurchase each year its\nlocal currency held by the Bank amounting to not more\nthan 2 percent of its paid subscription, paying for it\nwith gold; provided, however, that:\nC. This requirement may bc generally suspended for\nany year by a three-fourths vote of the Board.\nb. No country shall be required to repurchase local\ncurrency in any givon year in excess of one-half\nof the addition to its official holdings of\ngold during the precoding year.\nC, The obligation of C member country to repurchase\nits local currency shall be limited to the amount\nof the local currency paid on its subscription.\n8. All member countries agree that all of the local cur-\nrency holdings cnd other assets of the Bank located in\ntheir countries shall be free from any special restric-\ntions 48 to their usc, except such restrictions as are\nconsented to by the Bank, and subject to IV-13, below.\n9. The resources and the facilities of the Bank shall be\nused exclusively for the benefit of member countries.\nRegraded Unclassified\n150\n- 4 -\nIII. The International Monetary Unit\n1. The monetary unit of the Bank shall be the Unitas of\nthe International Stabilization Fund (137-1/7 grains\nof fine gold, that 1s, equivalent to $10 U.S.).\n2. The Bank shell keep its accounts in terms of unites.\nThe local currency assets of the Bank are to be\nguaranteed against any depreciation in their value in\nterms of unitas.\nIV. Powers and Operations\n1. To achieve the purposes stated in Section I, the Bank\nmay guarantee, participate in, or make lorns to any\nmember country and through the government of such\ncountry to any of its political subdivisions or to\nbusiness or industrial enterprises therein under con-\nditions provided below.\n&. The payment of interest and principal is fully\nguaranteed by the national government.\nb. The borrower is otherwise unable to secure the\nfunds from other sources, even with the national\ngovernment's guaranty of repayment, under con-\nditions which in the opinion of the Bank are\nreasonable.\nC. A competent committee has made a careful study\nof the merits of the project or the program\nand, in & written report, concludes that the loan\nwould serve directly or indirectly to rmise the\nproductivity of the borrowing country and that\nthe prospects are favorable to the servicing of\nthe loan. The majority of the committee making\nthe report shall consist of members of the tech-\nnical staff of the Bank. The committee shall in-\nclude an expert selected by the country requesting\nthe loan who may or may not be L member of the\ntechnical staff of the Bank.\nd. The Bank shall make arrangements to assure the\nuse of the proceeds of any loan which it guer-\nantees, participates in, or makes, for the pur-\nposes for which the loan was approved.\ne. The Bank shall guarantee, participate in or make\nloans only at reasonable rates of interest with\na schedule of repayment approprinte to the\ncharacter of the project and the balance of pay-\nments prospects of the country of the borrower.\n2. In accordance with the provisions in IV-1, above, the\nBank may guarantee in whole or in part loans made by\nprivate investors provided further:\nRegraded Unclassified\n151\n- 5 -\nIV-2 a. The rate of interest and other conditions of the\nloan are roasonable.\nb. The Bank is compensated for its risk in guarantee-\ning the loan.\n3. The Bank may participate in loans placed through the\nusual investment channels, provided all the conditions\nlisted under IV-1 above are met except that the rote\nof interest may be higher than if the loans were guar-\nanteed by the Bank.\n4. The Bank may encourage and facilitate international\ninvestment in equity securities by securing the guar-\nantoe of governments of conversion into foreign ex-\nchange of the current earnings of such foreign hold\ninvestments. In promoting this objective the Bank may\nLlso participate in such investments, but its aggre-\ngate perticipation in such equity sccurities shall not\nexceed 10 percent of its paid in capital.\n5. The Bank may publicly offer any securities it has\nproviously acquired. To facilitate the placing of\nsuch sccurities, the Bank mr.y, in its discretion,\nguarantee them.\n6. The Bank shall make no loans or investments that can bc\nplaced through the usual private invostment channels on\nreasonable terms. The Bank shall by regulation prescribo\nprocedure for its operations that will assure the appli-\ncation of this principle.\n7. The Bank shall impose no condition upon a loan (.S to the\nparticular member country in which the proceeds of the\nloan must be spent; provided, however, that the procceds\nof L. loan may not be spent in any country which is not =\nmember country without the approval of the Bank.\n8. The Bank in making loans shall provide that:\nB. The foreign exchange in connection with the\nproject or program shall bc provided by the\nBank in the currencies of the countries in\nwhich the proceeds of the loan will be spent\nand only with the approval of such countries.\nb. The local currency nceds in connection with\nthe project shall be largely financed locally\nwithout the assistance of the Bank.\nC. In special circumstances, where the Bank con-\nsiders that the local part of any project\ncannot be financed at home except on very un-\nreasonable torms, it can lond that portion to\nthe borrower in local currency.\nd. Where the developmental program will givc riso\nto in increased need for foreign exchange for\npurposes not directly needed for that program\nyot rosulting from the program, the Bank will\nprovide an appropriate part of the loan in gold\nor desired foreign exchange.\nRegraded Unclassified\n- 6 -\n152\nIV-9. When G losn is made by the Bank it shall credit the\nLocount of the borrower with the amount of the loan,\nPayment shall be made from this account to meet\ndrafts covering audited expenses.\n10. Loans participated in or made by the Bank shall\ncontain the following payment provisions:\nC. Payment of intcrest due on loans shall be\nmade in currencies acceptable to the Bank\nor in gold. Interest will be payable only\non amounts withdrawn.\nb. Payment on account of principal of a loan\nshall be in currencies acceptable to the Bank\nor in gold. If the Bank and the borrower\nshould 30 agree at the time a loan is made,\npayment on principal may be in gold, or at\nthe option of the borrower, in the currency\nactually borrowed.\nC. In event of an acute exchange stringency the\nBank may in its judgment accept for periods\nnot excooding 3 years at a time the payments\nof interest and principal in local currency.\nThe Bank shall arrango with the borrowing\ncountry for the repurchase of such local cur-\nroncy over a'pcriod of years on appropriate\nterms that safeguard the value of the Bank's\nholdings of such currency.\nd. Payments of interest and principal, whether\nmade in momber currencies or in gold, must\nbe equivalent to the unitas value of the loan\nand of the contractual interest thereon.\n11, The Bank may lovy a charge against the borrower for\nits expenses in investigating any loan placed,\nguaranteed, participated in, or made in whole or in\npart by the Bank.\n12, The Bank may guarantee, participate in, or make loans\nto international governmental agencies for objectives\nconsonant with the purposes of the Bank, provided\nthat one-half of the perticipants in the international\nagencios are members of the Bank.\n13. In considering any application to guarantee, partici-\npate in, or make a loan to & member country, the Bank\nshall give duc regard to the effect of such a loan on\nbusiness and financial conditions in the country in\nwhich the loan is to be spont, and sholl accordingly\nobtain the consent of the country affected.\n14. At the request of the countries in which portions\nof the loan are spont, the Bank will repurchase for\ngold or needed foreign exchange a part of the ex-\npendituros in the currencies of those countries\nmade by the borrower from the proceeds of the loan,\nRegraded Unclassified\n- 7 -\n153\nIV-15. With the approval of the representatives of the\ngovernments of the member countries involved, the\nBank may engage in the following operations:\n0. It may issue, buy or sell, pledgo, or\ndiscount any of its own sccurities and\nobligations, or securities and oblign-\ntions taken from its portfolio, or secur-\nitics which it has guarantood.\nb. It may borrow from any member governments,\nfiscal agencies, central banks, stabilization\nfunds, private financial institutions in\nmember countries, or from international finan-\ncial agencies.\nC. It may buy or soll foreign exchange, after\nconsultation with the International Stabili-\nzation Fund, where such transactions are\nnecessary in connection with its operations,\n16. The Bank may act as agent or correspondent for the\ngovernments of member countrics, their contral banks,\nstabilization funds and fiscal agencies, and for\ninternational financial institutions.\nThe Bank may act as trustoc, registrar or agent in\nconnection with loans guaranteed, participated in,\nmade, or placed through the Bank.\n17. Except es otherwise indicated the Bank shall doal\nonly with or through:\nC. The governments of member countries, their\ncentral banks, stabilization funds and fiscal\nagencica.\nb. The International Stabilization Fund and any\nother international financial agencies owned\nprodominantly by member governmonts.\nThe Bank may, nevertholoss, with the approval of\nthe member of the Board representing the government\nof the country concerned doal with the public or\ninstitutions of member countries in its (the Bank's)\nown socurities or socurities which it has guaranteed,\n18. If the Bank shall declare any country as suspended\nfrom memborship, the member governments and their\nagencies agree not to extend any financial assistance\nto that country without the approval of the Bank\nuntil the country has boon restored to mcmbership.\n19. The Bank and its officers shall scrupulously nvoid\ninterference in the political affairs of any member\ncountry. This provision shall not limit the right\nof an officer of the Bank to participate in the\npolitical life of his own country.\nRegraded Unclassified\n154\n- 8 -\nIV-19- The Bank shall not be influenced in its decisions\nwith respect to applications for loans by the\npolitical character of the government of the\ncountry requesting a loan. Only economic considern-\ntions shall be relevant to the Bank's decisions.\nV. Management\n1. The administration of the Bank shall be vested in &\nBoard of Directors composed of one director and one\nalternate appointed by each member government in &\nmanner to be determined by it.\nThe director and alternate shall serve for a period\nof three years, subject to the pleasure of their\ngovernment. Directors and alternates may be reap-\npointed.\n2. Voting by the Board shall be as follows:\nB. The director or elternate of each member country\nshall be entitled to cast 1,000 votes plus one\nvote for cach share of stock held. Thus a\ngovernment owning one share shall cast 1,001\nvotes, while a government having 1,000 shares\nshall cast 2,000 votes.\nb. No country shall cast more than 25 percent of\nthe asgregate votes.\nc. Except where otherwise provided, decisions of\nthe Borrd of Directors shall be by simple\nmajority of the votes cast, each member of the\nBoard casting the votcs allotted to his govern-\nmont. When deemed to be in the best interests\nof the Bank, decisions of the Board may be made,\nwithout a meeting, by polling the directors on\nspecific questions submitted to them in such\nmanner as the Board shall by regulation provide.\n3. The Board of Directors shall solect & Prosident of the\nBank, who shall bc the chief of the operating staff of\nthe Bank and ex-officio a member of the Board, and one\nor more vico presidents. The President and vice presi-\ndents of the Bunk shall hold office for four years,\nshall be cligible for reolection, and may be removed\nfor cause nt any time by the Board. The staff of the\nBank shall be selected in accordance with regulations\ncstablished by the Board of Directors.\n4. The Board of Directors shall appoint from Among its\nmembers, in Executive Committoe of not more than nine\nmcmbers. The President of the Bank shall bc en CX-\nofficio member of the Executive Committee.\nRegraded Unclassified\n155\n- 9 -\nV-4-The Executive Committee shall be continuously avail-\nable at the head office of the Bank and shall exer-\ncise the authority delegated to it by the Board, In\nthe r.bsence of any member of the Executive Committee,\nhis clternate on the Board shall not in his place.\nMembers of the Executive Committee shall receive ap-\npropricte remuneration.\n5. The Board of Directors shall select an Advisory\nCouncil of seven members. The Council shall advise\nwith the Board and the officers of the Bank on mat-\nters of general policy. The Council shrill meet\nannually and on such other occasions 1.8 the Board\nmay request.\nThe members of the Advisory Council shull be selected\nfrom men of outstanding ability, but not more than\none member shall be selected from the same country.\nThey shall serve for two years, and the term of any\nmember mL.y be renewed. Members of the Council shell\nbe paid their expenses and & remuneration to be fixed\nby the Board.\n6, The Board of Directors may appoint such other com-\nmittees LB it finds necessary for the work of the\nBank. It mLy also appoint advisory committees chosen\nwholly or particlly from persons not regularly cm-\nployed by the Bank.\n7. The Board of Directors may ct any meeting authorize\nany officers or committees of the Bank to exercise\nany specified powers of the Board except the power\nto make, guarantee or participate in loans. Such\npowers shill be excrcised in a manner consistent with\nthe genoral policies and practices of the Board.\nThe Board may by a three-fourths votc delegate to\nthe Executive Committee the power to make, guarantee\nor participate in loans in such amounts LB may be\nfixed by the Board. In passing upon applications for\nloans, the Executive Committee shall act under the\nrequirements specified for cach type of loan.\n8. A member country fuiling to meet its financial obli-\ngations to the Bank may be declared in default and it\nmay bc suspended from membership during the period of\nits default provided n majority of the member countries\nso decide. While under suspension, the country shall\nbe denied the privileges of membership, but shall be\nsubject to the obligations of membership. At the end\nof one year the country shill be automatically dropped\nfrom mcmbership in the Bank unless it has been restored\nto good standing by 0 majority of the member countries.\nIf C member country clects to withdraw or is dropped\nfrom the Bank its shares of stock shall, if the Bank has\n& surplus, be repurchased at the price prid. If the\nBrnk's books show Γ. loss, such country shall bear C pro-\nportionate share of the loss. The Bank shall have 5\nyears in which to liquidate its obligations to 1. momber\nwithdrawing or dropped from the Bank.\nRegraded Unclassified\n156\n- 10 -\nv-8- Any member country that withdraws or is dropped from\nthe International Stabilization Fund, shall relinquish\nits membership in the Bank unless three-fourths of the\nmember votes favor its remaining as a member.\n9. The yearly net profits shall be applied as follows:\n6. All profits shall be distributed in proportion\nto shares held, except that one-fourth of the\nprofits shall be applied to surplus until the\nsurplus equals 20 percent of the capital.\nb. Profits shall be payable in & country's local\ncurrency, or in gold at the option of the Bank.\n10. The Bank shall collect and make available to member\ncountries and to the International Stabilization Fund\nfinancial and economic information and reports rc-\nlating to the operations of the Bank.\nMumber countries shall furnish the Bank with all\ninformation and data that would facilitate the\noperations of the Bank.\nRegraded Unclassified\n157\n25\nNOV 2 1343\nExcellency:\nIn the memorandum accompanying the tentative draft proposal for\nan international stabilization fund, which I sent to the Ministers\nof Finance of the United Nations some months ago, I said: \"It ie\nanticipated that there will also be submitted for consideration a\npreliminary draft of a proposal for an international agency whose\nfunction will be to provide capital for reconstruction and develop-\nment.\"\nThe preliminary draft of a tentative proposal for a United Nations\nBank for Reconstruction and Development has now been prepared by the\ntechnical staff of the United States Treasury in consultation with the\ntechnical staffs of other departments of this Government. The draft\nis designedly in abbreviated form, intended to bring out at this stage\nonly the more significant points for consideration and discussion.\nThis tentative proposal is not an expression of the official views\nof this Government, but it is an indication of the views held by our\ntechnical experts. I am now sending for your examination this\ntentative proposal, which I hope you will submit to the technical\nstaffs of your Ministry and your Government for their study.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as you may wish\nto make, or to receive any alternative proposal for the provision of\nlong-term international credits for reconstruction and development\nthat you may care to submit. If any of your experts should be in\nWashington, the technical experts of this Government will be glad to\ndiscuss the tentative proposal with them.\nWe hope to send you soon some further material emplifying and\ndiscussing many of the provisions in the outlined draft proposal.\nSincerely yours,\n(Gignad) Beary Morgenthow, of,\nSecretary of the Treasury.\nHis Excellency, Morteza Choli Bayet,\nThe Minister of Finance,\nTehran, Iran.\nEnclosure.\n7/22/42\nRegraded Unclassified\n158\nNO. 2 1943\nExcellency:\nIn the memorandum accompanying the tentative draft proposal\nfor on international stabilization fund, which I sent to the\nMinisters of Finance of the United Nations same months ago, I\nsaid: \"It is anticipated that there will also be submitted for\nconsideration a preliminary draft of a proposal for an inter-\nnational agency whose function will be to provide capital for\nreconstruction and development.\"\nThe preliminary draft of & tentative proposal for a United\nNations Bank for Reconstruction and Development has now been\nprepared by the technical staff of the United States Treasury\nin consultation with the technical staffs of other departments\nof this Government. The draft is designedly in abbreviated form,\nintended to bring out at this stage only the more significant\npoints for consideration and discussion. This tentative proposal\nis not an expression of the official views of this Government,\nbut it is an indication of the views held by our technical experts.\nI an now sending for your examination this tentative proposal,\nwhich I hope you will submit to the technical staffs of your\nMinistry and your Government for their study.\nAfter you and your experts have studied this tentative pro-\nposal, I shall be glad to have such comments and suggestions as\nyou may wish to make, or to receive any alternative proposal\nfor the provision of long-term international credits for recon-\nstruction and development that you may care to submit. If any\nof your experts should be in Washington, the technical experts\nof this Covernment will be glad to discuss the tentative pro-\nposal with them.\nWe hope to send you soon some further material amplifying\nand discussing many of the provisions in the outlined draft pro-\nposal.\nSincerely yours,\n(Signed) Henry Morgenthau, Jr.\nSecretary of the Treasury\nliis Excellency, Ludwig Grossfeld,\n!dnister of Finance,\nRepublic of Poland,\nLondon, England.\nEnclosure. HDW:EMB/jm 11/13/43\nRegraded Unclassified\n159\nNOV 23 1943\nParcellency:\nin the memorandum accompanying the tentative draft proposal\nfor an International stabilization fund, which I sent some months\nago to the Ministers of Finance of the United Nations and the\ncountries associated with them, I saids \"It is anticipated that\nthere will also be submitted for consideration B. preliminary draft\nof a proposal for an international agency whose function will be\nto provide capital for reconstruction and development.\"\nThe preliminary draft of a tentative proposal for a United\nlations Mark for Reconstruction and Development has now been pre-\npared by the technical staff of the United States Treasury in can-\nsultation with the technical staffs of other departments of this\novernant. The draft is designedly in abbreviated form, intended\nto bring out at this stage only the more significant points for\nconsideration and discussion. This tentative proposal is not an\nexpression of the official views of this Government, but it is an\nindication of the views held by our technical exparts. I am now\nsending for your examination this tentative proposal, which I hope\nyou will submit to the technical staffs of your Vinistry and your\nCovernment for their study.\nAfter you and your experts have studied this tentative pro-\nposal, I shall be glad to have such comments and suggestions as\nyou may wish to make, or to receive any alternative proposal for\nthe provision of long-term international credits for reconstruc-\ntion and development that you may care to submit. If any of your\nexperts should bé in Washington, the technical experts of this\nGovernment will be glad to discuss the tentative proposal with\nthem.\nWe hope to send you soon some further material amplifying and\ndiscussing many of the provisions in the outlined draft proposal.\nSincerely yours,\n(Signed) Henry Morgenthau, Jr.\nSecretary of the Treasury\nRis Excellency, Rodolfo Rojas,\nThe Minister of Finance,\nThe United States of Venesuela,\nCaracas, Venesuela.\ninclosure. HDW:EMB/jm 11/16/43\nRegraded Unclassified\n160\n25\nRegraded Unclassified\n1943\nExcellency,\nIn the ussorandum accompanying the tentative draft proposal for\nan international stabilization fund, which I sent to the Ministers\nof Finance of the United Mations - months age, I said: \"It 10\nanticipated that there will also be submitted for consideration a\npreliminary draft of a proposal for an international agency whose\nfunction will be to provide capital for resonstruction and develop-\nment.\"\nThe preliminary draft of a tentative proposal for a United Nations\nBank for Reconstruction and Development has now been prepared by the\ntechnical staff of the United States Treasury in consultation with the\ntechnical staffs of other departments of this Government. The draft\nis designedly in abbreviated form, intended to bring out at this stage\nonly the more significant points for consideration and discussion.\nThis tentative proposal is not an expression of the official views\nof this Government, but it is an indication of the views held by our\ntechnical exparts. I - now sending for your examination this tenta-\ntive proposal, which I hope you will submit to the technical staffs\nof your Ministry and your Government for their study.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as you may wish\nto make, or to receive any alternative proposal for the provision of\nlong-term international credits for reconstruction and development\nthat you may care to submit. If any of your experts should be in\nWashington, the technical experts of this Government will be glad to\ndiscuss the tentative proposal with them.\nTo hope to send you 8000 BOAR further material emplifying and\ndiscussing many of the provisions in the outlined draft proposal.\nSincerely yours,\n(Signed) Enery Morgenthan, Jr.\nSecretary of the Treasury.\nHis Excellency, Amin Osman,,\nThe Minister of Finance,\nKingdom of Egypt,\nCairo, Egypt.\nEnclosure.\n11/13/43\n161\n25\nNOV 23 1943\nExcellency:\nIn the memorandum accompanying the tentative draft proposal for\nan international stabilization fund, which I sent some months ago to\nthe Ministers of Finance of the United Nations and the countries as-\nsociated with them, I said: \"It is anticipated that there will also\nbe submitted for consideration a preliminary draft of a proposal for\nan international agency whose function will be to provide capital for\nreconstruction and development.\"\nThe preliminary draft of a tentative proposal for a United Nations\nBank for Reconstruction and Development has now been prepared by the\ntechnical staff of the United States Treasury in consultation with the\ntechnical staffs of other departments of this Government. The draft\nis designedly in abbreviated form, intended to bring out at this stage\nonly the more signfficant points for consideration and discussion.\nThis tentative proposal is not an expression of the official views\nof this Government, but it is an indication of the views held by our\ntechnical experts. I am now sending for your examination this tenta-\ntive proposal, which I hope you will submit to the technical staffe\nof your Ministry and your Oovernment for their study.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as you may wish\nto make, or to receive any alternative proposal for the provision of\nlong-term international credits for reconstruction and development\nthat you may care to submit. If any of your experts should be in\nWashington, the technical experts of this Government will be glad to\ndiscuss the tentative proposal with them.\nWe hope to send you soon some further material amplifying and\ndiscussing many of the provisions in the outlined draft proposal.\nSincerely yours,\n(Signed) Henry Morgenthau. Jr.\nSecretary of the Treasury.\nHis Excellency, Abdulillah Hafidh,\nActing Minister of Finance,\nKingdom of Iraq,\nBaghdad, Iraq.\nEnclosure.\n11/16/43\nRegraded Unclassified\n162\n25\nNOV 23 1943\nMy dear Sir Jeremy:\nIn the mesorandum accompanying the tentative draft proposal for\nan international stabilisation fund, which I sent to the Ministers\nof Finance of the United Nations some months ago, I saids \"It is\nanticipated that there will also be submitted for consideration a\npreliminary draft of a proposal for an international agency whose\nfunction will be to provide capital for resonstruction and develop-\nment.\"\nThe preliminary draft of a tentative proposal for a United\nNations Bank for Reconstruction and Development has now been pre-\npared by the technical staff of the United States Treasury in\nconsultation with the technical staffs of other departments of this\nGovernment. The draft is designedly in abbreviated form, intended\nto bring out at this stage only the more significant points for\nconsideration and discussion. This tentative proposal is not an\nexpression of the official views of this Government, but it 10 an\nindication of the views hald by our technical experts. I am now\nsending for your examination this tentative proposal, which I hope\nyou will submit to the technical staffs of your Ministry and your\nGovernment for their study.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as you may wish\nto mis, or to receive any alternative proposal for the provision of\nlong-term international credite for reconstruction and development\nthat you my care to submit. If any of your experts should be in\nWashington, the technical experts of this Government will be gled to\ndiscuss the tentative proposal with them.\nWe hope to send you soon some further material amplifying and\ndiscussing many of the previsions in the outlined draft proposal.\nSincerely yours,\n(Signed) Henry Morgenthab\nSecretary of the Treasury.\nThe Honorable Sir Jersey Raisman, K.C.B.I., C.I.E.,\nFinance Member of Governor-General's\nExecutive Council,\nGovernment of India,\nNew Delhi, India.\nEnclosure.\nHDW:EMB:sh - 11/13/43\nRegraded Unclassified\n163\n25\nMy dear Mr. Minister:\nIn the memorandum accompanying the tentative draft proposal\nfor an international stabilization fund, which I sent to the\nVinisters of Finance of the United Nations some months ago, I saids\n\"It is anticipated that there will also be submitted for considers-\ntion a preliminary draft of a proposal for an international agency\nwhose function will be to provide capital for reconstruction and\ndevelopment.\"\nThe preliminary draft of a tentative proposal for a United\nNations Bank for Reconstruction and Development has not been pre-\npared by the technical staff of the United States Treasury in\nconsultation with the technical staffs of other departments of this\nGovernment. The draft is designedly in abbreviated form, intended\nto bring out at this stage only the more significant points for con-\nsideration and discussion. This tentative proposal is not an expres-\nsion of the official views of this Government, but it is an indication\nof the views held by our technical experts. I sun now sending for your\nexamination this tentative proposal, which I hope you will submit to\nthe technical staffs of your Ministry and your Government for their\nstudy.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as you may wish\nto make, or to receive any alternative proposal for the provision of\nlong-term international credits for reconstruction and development\nthat you may care to submit. If any of your experts should be in\nWashington, the technical experts of this Government will be glad to\ndiscuss the tentative proposal with them.\nWe hope to send you soon some further material amplifying and\ndiscussing mary of the provisions in the outlined draft proposal.\nSincerely yours,\n/s/ H margenthaw, go\nSecretary of the Treasury.\nThe Honorable J. B. Chifley, M. P.,\nTreasurer,\nCommonwealth of Australia,\nCanberra, Australia.\nEnclosure\n1,3:01.\n11/13/43\nRegraded Unclassified\n164\n25\nNOV\n14\nExcellency:\nIn the memorandum accompanying the tentative draft proposal for\nan international stabilisation fund, which I sent some months ago to\nthe Ministers of Finance of the United Nations and the countries as-\nsociated with them, I said: \"It is anticipated that there will also\nbe submitted for consideration & prelisinary draft of & proposal for\nan international agency whose function will be to provide capital for\nreconstruction and development.\"\nThe preliminary draft of a tentative proposal for a United Nations\nBank for Reconstruction and Development has now been prepared by the\ntechnical staff of the United States Treasury in consultation with the\ntechnical staffs of other departments of this Government. The draft\n10 designedly in abtreviated form, intended to bring out at this stage\nonly the more significant points for consideration and discussion.\nThis tentative proposal is not an expression of the official views\nof this Government, but it is an indication of the views held by our\ntechnical experts. I an now sending for your examination this tenta-\ntive proposal, which I hope you will submit to the technical staffs\nof your Ministry and your Government for their study.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as you may wish\nto make, or to receive any alternative proposal for the provision of\nlong-term international credits for reconstruction and development\nthat you may care to submit. If any of your experts should be in\nWashington, the technical experts of this Government will be glad to\ndiscuss the tentative proposal with them.\nTie hope to aend you soon come further material emplifying and\ndiscussing many of the previsions in the outlined draft proposal.\nSincerely yours,\nSecretary of the Treasury.\nHis Emellency, Inis Calve,\nThe Minister of Finance,\nThe Republic of Belivia,\nLa Pas, Bolivia.\nEnclosure\n11/10/43\nRegraded Unclassified\n165\nRegraded Unclassified\n25\nNOV 22 1943\nExcellency,\nIn the nemorandus accompanying the tentative draft proposal for\nan international stabilisation fund, which I sent to the Ministers\nof Finance of the United Nations BORD months ago, I said: wIt is\nanticipated that there will also be submitted for esnsideration e\npreliminary draft of a proposal for an international agency whose\nfunction will be to provide capital for reconstruction and develop-\nment.\"\nThe preliminary draft of a tentative proposal for 4 United Nations\nBank for Reconstruction and Development has now been prepared by the\ntechnical staff of the United States Treasury in consultation with the\ntechnical staffs of other departments of this Government. The draft\nis designedly in abbreviated form, intended to bring out at this stage\nonly the more significant points for consideration and discussion.\nThis tentative proposal is not an expression of the official views\nof this Government, but it 10 an indication of the views held by our\ntechnical experts. I in now sending for your examination this tente-\ntive proposal, which I hope you will submit to the technical staffs\nof your Ministry and your Government for their study.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such coments and suggestions as you may wish\nto make, or to receive any alternative proposal for the provision of\nlong-term international credits for resonstruction and development\nthat you may care to submit. If any of your experts should be in\nWashington, the technical experts of this Government will be glad to\ndiscuss the tentative proposal with them.\nTo hope to send you soon some further material amplifying and\ndiscussing sany of the provisions in the outlined draft proposal.\nSincerely yours,\nSecretary of the Treasury.\nHis Excellency, Abel Lasrein,\nThe Minister of Finance,\nThe Republic of Raiti,\nPort au Prince, Raiti.\nEnclosure.\nEl,B:mo\n11/13/42\n16\nRegraded Unclassified\n25\nNOV\nExcellency,\nIn the memorandra accompanying the tentative draft proposal for\nan international stabilization fund, which I sent to the Ministers\nof Finance of the United Nations some months ago, I said, \"It is\nanticipated that there will also be submitted for consideration a\npreliminary draft of a proposal for an international agency whose\nfunction will be to provide capital for reconstruction and develop-\nment.\"\nThe preliminary draft of & tentative proposal for a United Nations\nBank for Reconstruction and Development has now been prepared by the\ntechnical staff of the United States Treasury in consultation with the\ntechnical staffs of other departments of this Government. The draft\n18 designedly in abbreviated form, intended to bring out at this stage\nonly the more significant points for consideration and discussion.\nThis tentative proposal is not an expression of the official views\nof this Government, but it 1s an indication of the views held by our\ntechnical experts. I an now sending for your examination this tents-\ntive proposal, which I hope you will submit to the technical staffs\nof your Ministry and your Government for their study.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as you may wish\nto make, or to reseive any alternative proposal for the provision of\nlong-term international credits for resonstruction and development\nthat you my care to submit. If any of your experts should be in\nWashington, the technical experts of this Government will be glad to\ndiscuss the tentative proposal with them.\nTo hope to send you soon some further material emplifying and\ndiscussing many of the provisions in the outlined draft proposal.\nSincerely yours,\n15/50 Margenthaw. Jr.\nSecretary of the Treasury.\nHis Excellency, Jose Gonsales Campo,\nThe Minister of Finance,\nThe Republic of Oustemala,\nGustemala City, Custemals.\nEnclosure.\nName E B:mb\n11/13/43\n167\n25\nNOV 21 2 1943\nMy dear Mr. Ambassador:\nIn the memorandum accompanying the tentative draft proposal for\nan international stabilisation fund, which I sent to the Ministers\nof Finance of the United Nations some months age, I said: \"It is\nanticipated that there will also be submitted for consideration a\npreliminary draft of a proposal for an international agency whose\nfunction will be to provide capital for reconstruction and develop-\nment.\"\nThe preliminary draft of a tentative proposal for & United Nations\nBank for Reconstruction and Development has now been prepared by the\ntechnical staff of the United States Treasury in consultation with the\ntechnical staffs of other departments of this Government. The draft\nis designedly in abbreviated form, intended to bring out at this stage\nonly the more significant points for consideration and discussion.\nThis tentative proposal is not an expression of the official views\nof this Government, but it 18 an indication of the views held by our\ntechnical experts. I on now sending for your examination this tents-\ntive proposal, which I hope you will submit to the technical staffs\nof your Ministry and your Government for their study.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as you may wish\nto make, or to receive any alternative proposal for the provision of\nlong-term international credits for reconstruction and development\nthat you my care to submit. If any of your experts should be in\nWashington, the technical experts of this Government will be glad to\ndiscuss the tentative proposal with them.\nWe hope to send you soon some further material emplifying and\ndisoussing sany of the provisions in the outlined draft proposal.\nSincerely yours,\n15/ H. Margenthaw, go\nSecretary of the Treasury.\nThe Honorable K. Varvaresses,\nSpecial Envoy of the Kingdom of Greece,\nRoyal Greek doverment,\nLondon, England.\nEnclosure.\n11/13/40\nRegraded Unclassified\n168\n25\nNOV 2 1943\nExcellency:\nIn the memorandum accompanying the tentative draft proposal\nfor an international stabilisation fund, which I sent to the\nMinistere of Finance of the United Nations some months ago, I saids\n\"It is anticipated that there will also be submitted for consideration\na preliminary draft of a proposal for an international agency whose\nfunction will be to provide capital for reconstruction and develop-\nment.\"\nThe preliminary draft of a tentative proposal for & United Nations\nBank for Reconstruction and Development has now been prepared by the\ntechnical staff of the United States Treasury in consultation with the\ntechnical staffs of other departments of this Government. The draft\nis designedly in abbreviated form, intended to bring out at this stage\nonly the more significant points for consideration and discussion.\nThis tentative proposal is not an expression of the official views\nof this Government, but it is an indication of the views held by our\ntechnical experts. I an now sending for your examination this\ntentative proposal, which I hope you will submit to the technical\nstaffs of your Ministry and your Government for their study.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as you may wish\nto make, or to receive any alternative proposal for the provision of\nlong-term international credits for reconstruction and development\nthat you may care to submit. If any of your experts should be in\nWashington, the technical experts of this Government will be glad to\ndiscuss the tentative proposal with them.\nWe hope to send you 6000 some further material amplifying and\ndiscussing many of the previsions in the outlined draft proposal.\nSincerely yours,\nSecretary of the Treasury.\nHis Excellency, Camille Outs,\nThe Minister of Finance,\nKingdom of Belgium,\nc/o Belgian Embassy,\nLondon, England.\nEnclosure\nem\n11/13/43\nRegraded Unclassified\n169\n25\nNOV 1943\nMy dear Mr. Minister:\nIn the nenorandum accompanying the tentative draft proposal for\nan international stabilization fund, which I sent some months ago to\nthe Ministers of Finance of the United Nations and the countries 10-\nsociated with them, I said: \"It is anticipated that there will also\nbe submitted for consideration a preliminary draft of a proposal for\nan international agency whose function will be to provide capital for\nreconstruction and development.\"\nThe preliminary draft of a tentative proposal for a United Nations\nBank for Reconstruction and Development has now been prepared by the\ntechnical staff of the United States Treasury in consultation with the\ntechnical staffs of other departments of this Government. The draft\nis designedly in abbreviated form, intended to bring out at this stage\nonly the more significant points for consideration and discussion.\nThis tentative proposal is not an expression of the official views\nof this Government, but it is an indication of the views held by our\ntechnical experts. I an now sending for your examination this tents-\ntive proposal, which I hope you will submit to the technical staffs\nof your Ministry and your Oovernment for their study.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as you may wish\nto make, or to receive any alternative proposal for the provision of\nlong-term international credits for reconstruction and development\nthat you may care to submit. If any of your experts should be in\nWashington, the technical experts of this Government will be glad to\ndiscuss the tentative proposal with them.\nNo hope to send you soon some further material amplifying and\ndiscussing sany of the provisions in the outlined draft proposal.\nSincerely yours,\nSecretary of the Treasury.\nThe Honorable James T. Phillips,\nSecretary of the Treasury,\nMonrovia, Liberia.\nEnclosure\nCHE 5:en\n17/10/15\nRegraded Unclassified\n170\n25\nNOV 2 2 1943\nMy dear Mr. Minister:\nIn the memorandum accompanying the tentative draft proposal\nfor an international stabilization fund, which I sent to the Ministers\nof Finance of the United Nations some months ago, I said: \"It is\nanticipated that there will also be submitted for consideration a\npreliminary draft of a proposal for an international agency whose\nfunction will be to provide capital for reconstruction and develop-\nment.\"\nThe preliminary draft of a tentative proposal for a United Nations\nBank for Reconstruction and Development has now been prepared by the\ntechnical staff of the United States Treasury in consultation with the\ntechnical staffs of other departments of this Government. The draft\n18 designedly in abbreviated form, intended to bring out at this stage\nonly the more significant points for consideration and discussion.\nThis tentative proposal is not an expression of the official views\nof this Government, but it is an indication of the views held by our\ntechnical experts. 1 an now sending for your examination this\ntentative proposal, which I hope you will submit to the technical\nstaffs of your Ministry and your Government for their study.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as you may wish\nto make, or to receive any alternative proposal for the provision of\nlong-term international credits for reconstruction and development\nthat you may care to submit. If any of your experts should be in\nWashington, the technical experts of this Government will be glad to\ndiscuss the tentative proposal with them.\nWe hope to send you soon some further material emplifying and\ndiscussing sany of the provisions in the outlined draft proposal.\nSincerely yours,\nSecretary of the Treasury.\nThe Honorable J. L. Ilaley,\nMinister of Finance,\nDominion of Canada,\nOttaws, Canada.\nEnclosure\nItem\n11/13/43\nRegraded Unclassified\n171\n25\nMUV 22 186\nExcellency:\nIn the memorandum accompanying the tentative draft proposal for\nan international stabilization fund, which I sent some months ago to\nthe Ministers of Finance of the United Nations and the countries 11-\nsociated with them, I saids \"It is anticipated that there will also\nbe submitted for consideration a preliminary draft of 8 proposal for\nan international agency whose function will be to provide capital for\nreconstruction and development.\"\nThe preliminary draft of a tentative proposal for & United Nations\nBank for Reconstruction and Development has now been prepared by the\ntechnical staff of the United States Treasury in consultation with the\ntechnical staffs of other departments of this Government. The draft\nis designedly in abbreviated form, intended to bring out at this stage\nonly the more significant points for consideration and discussion.\nThis tentative proposal is not an expression of the official views\nof this Government, but it is an indication of the views held by our\ntechnical experts. I an now sending for your examination this tents-\ntive proposal, which I hope you will submit to the technical staffs\nof your Ministry and your Government for their study.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as you may wish\nto make, or to receive any alternative proposal for the provision of\nlong-term international credits for reconstruction and development\nthat you may care to submit. If any of your experts should be in\nWashington, the technical experts of this Government will be glad to\ndiscuss the tentative proposal with them.\nTe hope to send you soon some further material amplifying and\ndiscussing many of the provisions in the outlined draft proposal.\nSincerely yours,\nSecretary of the Treasury.\nHie Excellency, Arturo Matte Larrain,\nThe Minister of Finance,\nThe Republic of Chile,\nSantiago, Chile.\nEnclosure\n11/16/43\nRegraded Unclassified\n172\n25\nNOV 22 1943\nExcellency:\nIn the memorandum accompanying the tentative draft proposal\nfor an international stabilisation fund, which I sent to the Ministers\nof Finance of the United Nations some months ago, I said: \"It is\nanticipated that there will also be submitted for consideration a\npreliminary draft of & proposal for an international agency whose\nfunction will be to provide capital for reconstruction and develop-\nment.\"\nThe preliminary draft of a tentative proposal for a United Nations\nBank for Reconstruction and Development has now been prepared by the\ntechnical staff of the United States Treasury in consultation with the\ntechnical staffs of other departments of this Government. The draft\nis designedly in abbreviated form, intended to bring out at this stage\nonly the more significant points for consideration and discussion.\nThis tentative proposal is not an expression of the official views\nof this Government, but it is an indication of the views held by our\ntechnical experts. I an now sending for your examination this\ntentative proposal, which I hope you will subsit to the technical\nstaffs of your Ministry and your Government for their study.\nAfter you and your experts have studied this tentative proposal,\n1 shall be glad to have such consents and suggestions as you may wish\nto make, or to receive any alternative proposal for the provision of\nlong-term international credits for reconstruction and development\nthat you may care to submit. If any of your experts should be in\nWashington, the technical experts of this Government will be glad to\ndiscuss the tentative proposal with them.\nWe hope to send you soon some further material emplifying and\ndiscussing many of the provisions in the outlined draft proposal.\nSincerely yours,\nSecretary of the Treasury.\nHis Excellency, Lij. Yilms Deresse,\nVice Minister of Finance,\nAddie Ababe, Ethiopia.\nEnclosure\n3:en\n12/10/43\nRegraded Unclassified\n173\n25\nNOV 2 1943\nExcellency:\nIn the memorandum accompanying the tentative draft proposal\nfor an international stabilization fund, which I sent to the\nMinistere of Finance of the United Nations some months ago, I said:\n\"It is anticipated that there vill also be submitted for consideration\na preliminary draft of a proposal for an international agency whose\nfunction will be to provide capital for reconstruction and develop-\nment.\"\nThe preliminary draft of a tentative proposal for a United\nNations Bank for Reconstruction and Development has now been prepared\nby the technical staff of the United States Treasury in consultation\nwith the technical staffs of other departments of this Government.\nThe draft is designedly in abbroviated form, intended to bring out\nat this stage only the more significant points for consideration and\ndiscussion. This tentative proposal is not an expression of the of-\nficial views of this Government, but 16 is an indication of the views\nheld by our technical experts. I OR nov sending for your examina-\ntion this tentative proposal, which I hope you vill submit to the\ntechnical staffs of your Ministry and your Government for their study.\nAfter you sad your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as you may wish\nto make, or to receive any alternative proposal for the provision of\nlong-term international credits for resonstruction and development\nthat you may care to submit. If any of your experts should be in\nWashington, the technical experts of this Government will be find to\ndiscuss the tentative proposal with them.\nWe hope to send you soon .... further material amplifying and\ndiscussing may of the provisiens in the outlined draft proposal.\nSincerely yours,\n15 H. margenthaw\nSecretary of the Treasury.\nHis Excellency, Pierre Dupend.\nMinister of Finance,\nGrand Duchy of Luxembourg,\n809 9am Life Building.\nMontreal, Canada.\nEnclosure\n11/15/43\nRegraded Unclassified\n174\n25\nNOV 2 1943\nExcellency:\nIn the memorandum accompanying the tentative draft proposal\nfor an international stabilization fund, which I sent to the\nMinistere of Finance of the United Nations come months ago, I said:\n\"It is anticipated that there will also be submitted for consider-\nation a preliminary draft of a proposal for an international agency\nwhose function vill be to provide capital for reconstruction and\ndevelopment.\"\nThe preliminary draft of a tentative proposal for a United\nNations Bank for Reconstruction and Development has nov been pre-\npared by the technical staff of the United States Treasury in COM-\nsultation with the technical staffs of other departments of this\nGovernment. The draft is designedly in abbreviated form, intended\nto bring out at this stage only the more significant points for con-\nsideration and discussion. This tentative proposal 10 not as 02-\npression of the official views of this Government, but it is an 1s-\ndication of the views held by our technical experts. I as now send-\ning for your examination this tentative preposal, which I hope you\nwill submit to the technical staffe of your Ministry and your Govern-\nment for their study.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as you may wish\nto make, or to receive any alternative proposal for the provision of\nlong-term international credits for reconstruction and development\nthat you may care to submit. If any of your exports should be in\nWashington, the technical experts of this Government will be glad to\ndiscuss the tentative proposal with them.\nWe hope to send you soon some further material emplifying and\ndiscussing many of the provisions in the outlined draft proposal.\nSincerely yours,\nSecretary of the Treasury.\nRis Excellency, J. van den Brook,\nMinister of Finance,\nKingdom of the Netherlands,\n1, 1. Stratton House,\nLondon, England,\nEnclosure\n11/13/43\nRegraded Unclassified\n175\n25\nNOV 22 1943\nExcellency:\nIn the memorandum accompanying the tentative draft proposal\nfor an international stabilization fund, which I sent to the\nMinisters of Finance of the United Nations some months ago, I\nsaidi \"It is anticipated that there will also be submitted for con-\nsideration a preliminary draft of a proposal for as international\nagency whose function will be to provide capital for reconstruction\nand development.\"\nThe preliminary draft of a tentative proposal for e United\nNations Bank for Reconstruction and Development has now been pre-\npared by the technical staff of the United States Treasury in 00D-\nsultation with the technical staffs of other departments of this\nGovernment. The draft is designedly in abbroviated form, intended\nto bring out at this stage only the more significant points for\nconsideration and discussion. This tentative proposal is not an\nexpression of the official views of this Government, but it is an\nindication of the views held by our technical experts. I AS nov\nsending for your examination this tentative proposal, which I hope\nyou will submit to the technical staffs of your Ministry and your\nGovernment for their study.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as you may\nwish to make, or to receive any alternative proposal for the pro-\nvision of long-term international credits for reconstruction and\ndevelopment that you say care to submit. If any of your experts\nshould be in Washington, the technical experts of this Government\nvill be glad to discuss the tentative proposal with them.\nVe hope to send you soon some further material amplifying and\ndiscussing many of the provisions in the outlined draft proposal.\nSincerely yours,\nSecretary of the Treasury.\nHis Excellency, Eduardo Suares,\nMinister of Finance,\nThe United States of Mexico,\nMexico City, Mexico.\nEnclosure\n11/23/43\nRegraded Unclassified\n176\n25\nNOV 2 2 1943\nExcellency,\nIn the memorandum accompanying the tentative draft proposal for\nan international stabilisation fund, which I sent to the Ministers\nof Finance of the United Nations - months age, I said: \"It is\nanticipated that there will also be submitted for consideration a\npreliminary draft of a proposal for an international agency whose\nfunction will be to provide capital for reconstruction and develop-\nment.\"\nThe proliminary draft of a tentative proposal for & United Nations\nBank for Reconstruction and Development has now been prepared by the\ntechnical staff of the United States Treasury in consultation with the\ntechnical staffs of other departments of this Government. The draft\nis designedly in abbreviated form, intended to bring out at this stage\nonly the more significant points for consideration and discussion.\nThis tentative proposal is not an expression of the official views\nof this Government, but it is an indication of the views hold by our\ntechnical exparts. I - now sending for your examination this tenta-\ntive proposal, which I hope you will submit to the technical staffs\nof your Ministry and your doverment for their study.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as you my wish\nto make, or to receive any alternative proposal for the provision of\nlong-term international credits for reconstruction and development\nthat you my care to subsit. If any of your experts should be in\nWashington, the technical experts of this Government will be glad to\ndiscuss the tentative proposal with them.\nWe hope to send you seen DOBO further material emplifying and\ndiscussing many of the provisions in the outlined draft proposal.\nSincerely yours,\nSecretary of the Treasury.\nHis Excellency, Urbano Quesada,\nThe Acting Minister of Finance,\nThe Republic of Honduras,\nTegucigalps, Honduras.\nEnclosure.\n11/12/43\nRegraded\nUnclassified\n177\nRegraded Unclassified\n25\nExcellency:\nIn the memorandum accompanying the tentative draft proposal for\nan international stabilisation fund, which I sent 0020 months ago to\nthe Ministers of Finance of the United Nations and the countries as-\nsociated with them, I said: \"It 18 anticipated that there will also\nbe submitted for consideration a preliminary draft of a proposal for\nan international agency whose function will be to provide espital for\nreconstruction and development.\"\nThe preliminary draft of & tentative proposal for & United Nations\nBank for Reconstruction and Development has now been prepared by the\ntechnical staff of the United States Treasury in consultation with the\ntechnical staffs of other departments of this Government. The draft\nis designedly in abbreviated form, intended to bring out at this stage\nonly the nore significant points for consideration and discussion.\nThis tentative proposal is not an expression of the official views\nof this Government, but it is an indication of the views held by our\ntechnical experts. I M now sending for your examination this tents-\ntive proposal, which I hope you will submit to the technical staffs\nof your Ministry and your Government for their study,\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as you may wish\nto make, or to receive any alternative proposal for the provision of\nlong-term international credits for reconstruction and development\nthat you may care to submit. If any of your experts should be in\nWashington, the technical experts of this Government will be glad to\ndiscuss the tentative proposal with them.\nWe hope to send you DOOR come further material emplifying and\ndiscussing many of the provisions in the outlined draft proposal.\nSincerely yours,\nSecretary of the Treasury.\nRis Emellency, Ther There,\nThe Minister of Iceland,\n3839 Massachusetts Avenue, N. Y.,\nWashington, D. C.\nEnclosure\n11/16/45\n178\nNOV 22 1943\nExcellency:\nin Die memorandum accompanying the tentative draft proposal\nfor en international stabilization fund, which 1 sent HOME months\nage to the Unisters of Finance of the United Nations and the\ncountries associated with them, I said: \"It is anticipated that\nthere will also be submitted for consideration a preliminary draft\nof 5 proposal for an international agency whose function will be\nto provide capital for reconstruction and development.\"\nThe preliminary draft of a tentative proposal for a United\nNations Bank for Reconstruction and Development has now been pre-\npared by the technical staff of the United States Treasury in\nconsultation with the technical staffs of other departments of\nthis Government. The draft is designedly in abbreviated form,\ninterned to bring out at this stage only the more significant\npoints for consideration and discussion. This tentative proposal\nis not an expression of the official views of this Government, but\nit in an indication of the views held by our technical experts.\nI am now sending for your examination this tentative proposal, which\n1 hope you will submit to the technical staffs of your dinistry and\nyour Covernment for their study.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as you may\nwish to make, or to receive any alternative proposal for the yro-\nvision of long-term international credits for reconstruction and\ndevelopment that you may care to submit. If any of your experts\nshould be in Washington, the technical experts of this Government\nwill be glad to discuss the tentative proposal with then.\nWe hope to send you soon some further material amplifying and\ndiscussing many of the provisions in the outlined draft proposal.\nSincerely yours,\nSecretary of the Treasury\nRis Excellency, Julio last,\nThe Minister of Finance,\nThe Republic of Peru,\nLima, Peru.\ninclosure.\nHDW:EMB/jm 11/16/43\nRegraded Unclassified\n179\nNOV 22 1943\nMy dear Mr. Minister:\nIn the mesorandum accompanying the tentative draft proposal\nfor an international stabilisation fund, which I sent to the\nIdnisters of Finance of the United Nations some months ago, I\nsaids \"It is anticipated that there will also be submitted for\nconsideration a preliminary draft of a proposal for an inter-\nnational agency whose function will be to provide capital for\nreconstruction and development.\"\nThe preliminary draft of a tentative proposal for a United\nNations Bank for Reconstruction and Development has now been\nprepared by the technical staff of the United States Treasury\nin consultation with the technical staffs of other departments\nof this Government. The draft is designedly in abbreviated\nform, intended to bring out at this stage only the more signifi-\ncant points for consideration and discussion. This tentative\nproposal is not an expression of the official views of this\nGovernment, but it is an indication of the views held by our\ntechnical experts. I an now sending for your examination this\ntentative proposal, which I hope you will submit to the technical\nstaffe of your Ministry and your Government for their study.\nAfter you and your experts have studied this tentative pro-\nposal, I shall be glad to have such comments and suggestions as\nyou may wish to make, or to receive any alternative proposal\nfor the provision of long-term international credits for recon-\nstruction and development that you may care to submit. If any\nof your experts should be in Washington, the technical experts\nof this Government will be glad to discuss the tentative proposal\nwith them.\nThe hope to and you som nome further material amplifying and\ndiscussing many of the provisions in the outlined draft proposal.\nSincerely yours,\nSecretary of the Treasury\nColonel Andres Soriano,\nMinister of Finance,\nCommonwealth of the Philippines,\nRits Tower, Park Avenue,\nNew York, New York.\nEnclosure. HDW,KMB/jm 11/13/43\nRegraded Unclassified\n180\n25\nNOV 22 1943\nExcellency:\nIn the memorandum accompanying the tentative draft proposal\nfor an international stabilisation fund, which I sent to the Ministers\nof Finance of the United Nations some months ago, I said: \"It is\nanticipated that there will also be submitted for consideration a\npreliminary draft of a proposal for an international agency whose\nfunction will be to provide capital for reconstruction and develop-\nment,\"\nThe preliminary draft of a tentative proposal for & United Nations\nBank for Reconstruction and Development has now been prepared by the\ntechnical staff of the United States Treasury in consultation with the\ntechnical staffs of other departments of this Government. The draft\nis designedly in abbreviated form, intended to bring out at this stage\nonly the more significant points for consideration and discussion.\nThis tentative proposal is not an expression of the official views\nof this Government, but it is an indication of the views held by our\ntechnical experts. I an now sending for your examination this\ntentative proposal, which I hope you will submit to the technical\nstaffe of your Ministry and your Government for their study.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as you may wish\nto make, or to receive any alternative proposal for the provision of\nlong-term international credits for reconstruction and development\nthat you may care to submit. If any of your experts should be in\nWashington, the technical experts of this Government will be glai to\ndiscuss the tentative proposal with them.\nWe hope to send you soon some further material amplifying and\ndiscussing many of the provisions in the outlined draft proposal.\nSincerely yours,\n15/ Jr.\nSecretary of the Treasury.\nHis Excellency, Arthur de Seuse Costa,\nThe Minister of Finance,\nThe United States of Brasil,\nRio de Janeiro, Brasil.\nEnclosure\n1/13/43\nRegraded Unclassified\n181\nNOV no\naccellency:\nIn the menorandum accompanying the tentative draft proposal\nfor an international stabilization fund, which I sent to the\nMinisters of Finance of the United Nations some months ago, I\nsaids \"It is anticipated that there will also be submitted for\nconsideration a preliminary draft of a proposal for an inter-\nnational agency whose function will be to provide capital for\nreconstruction and development.\"\nThe preliminary draft of a tentative proposal for a United\nNations Bank for Reconstruction and Development has now been pre-\npared by the technical staff of the United States Treasury in\nconsultation with the technical staffs of other departments of\nthis Government. The draft is designedly in abbreviated form,\nintended to bring out at this stage only the more significant\npoints for consideration and discussion. This tentative proposal\nis not an expression of the official views of this Government,\nbut it is an indication of the views held by our technical experts.\nI an now sending for your examination this tentative proposal,\nwhich I hope you will subsit to the technical staffs of your\nMinistry and your Government for their study.\nAfter you and your experts have studied this tentative pro-\nposal, I shall be glad to have such comments and suggestions as\nyou may wish to make, or to receive any alternative proposal for\nthe provision of long-term international credits for reconstruction\nand development that you may care to submit. If any of your or\nperts should be in Washington, the technical experts of this\nGovernment will be glad to discuss the tentative proposal with\nthem.\nThe hope to send you soon some further material amplifying\nand discussing many of the provisions in the outlined draft pro-\nposal.\nSincerely yours,\n13/71 margenthan qu.\nSecretary of the Treasury\nHis Excellency, Ivo Cicin Sain,\nMinister of Finance in the Government\nof Yugoslavia,\nLegation of Yugoslavia,\nCairo, &gypt.\nInclosure.\nHDW1EMB/jm 11/16/43\nRegraded Unclassified\n182\nExcellencys\nIn the memorandum accompanying the tentative draft proposal\nfor an international stabilization fund, which I sent some months\nago to the Ministers of Finance of the United Nations and the\ncountries associated with them, I said: \"It is anticipated that\nthere will also be submitted for consideration a preliminary draft\nof a proposal for an international agency whose function will be\nto provide capital for reconstruction and development.\"\nThe preliminary draft of a tentative proposal for a United\nNations Bank for Reconstruction and Development has now been pre-\npared by the technical staff of the United States Treasury in\nconsultation with the technical staffs of other departments of\nthis Government. The draft is designedly in abbreviated form,\nintended to bring out at this stage only the more significant\npoints for consideration and discussion. This tentative proposal\nis not an expression of the official views of this Government,\nbut it is an indication of the views held by our technical experts.\nI an now sending for your examination this tentative proposal, which\nI hope you will submit to the technical staffs of your Ministry and\nyour Government for their study.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as you may\nwish to make, or to receive any alternative proposal for the pro-\nvision of long-term international credits for reconstruction and\ndevelopment that you may care to submit. If any of your experts\nshould be in Washington, the technical experts of this Government\nwill be glad to discuss the tentative proposal with them.\nWe hope to send you soon some further material emplifying and\ndiscussing any of the provisions in the outlined draft proposal.\nSincerely yours,\n/s/ 2d. morgenthaw, ga.\nSecretary of the Treasury\nHis Excellency, Rogelie Espinoze,\nThe Minister of Finance,\nThe Republic of Paraguay,\nAsuncion, Paraguay.\nEnclosure. HDW/EMB:jm 11/16/43\nRegraded Unclassified\n183\nNOV 22 1943\nExcellency:\nIn the memorandum accompanying the tentative draft proposal\nfor an international stabilisation fund, which I sent to the\nMinisters of Finance of the United Nations some months ago, I\nsaid: \"It is anticipated that there will also be submitted for\nconsideration a preliminary draft of a proposal for an international\nagency whose function will be to provide capital for reconstruction\nand development.\"\nThe preliminary draft of a tentative proposal for a United\nNations Bank for Reconstruction and Development has now been pre-\npared by the technical staff of the United States Treasury in\nconsultation with the technical staffs of other departments of\nthis Government. The draft is designedly in abbreviated form,\nintended to bring out at this stage only the more significant\npointe for consideration and discussion. This tentative proposal\nis not an expression of the official views of this Government, but\nit is an indication of the views held by our technical experts.\nI - now sending for your examination this tentative proposal, which\nI hope you will submit to the technical staffs of your Ministry\nand your Government for their study.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as you may\nwish to make, or to receive any alternative proposal for the provision\nof long-term international credits for reconstruction and development\nthat you may care to submit. If any of your experts should be in\nWashington, the technical experts of this Government will be glad\nto discuss the tentative proposal with them.\nWe hope to send you soon some further material amplifying and\ndiscussing many of the previsions in the outlined draft proposal.\nSincerely yours,\nSecretary of the Treasury\nThe Honorable Walter Hash,\nMinister of Finance,\nWellington, New Zealand.\nEnclosure\nHDW:EMB;lr 11/13/43\nRegraded Unclassified\n184\nRegraded Unclassified\nNOV 2 2 1943\nExcellency:\nIn the memorandum accompanying the tentative draft proposal\nfor an international stabilisation fund, which I sent to the\nMinisters of Finance of the United Nations some months ago, I\nsaids \"It is anticipated that there will also be submitted for\nconsideration a preliminary draft of & proposal for an international\nagency whose function will be to provide capital for reconstruction\nand development.\"\nThe preliminary draft of a tentative proposal for & United\nNations Bank for Reconstruction and Development has now been pre-\npared by the technical staff of the United States Treasury in\nconsultation with the technical staffs of other departments of\nthis Government. The draft is designedly in abbreviated form,\nintended to bring out at this stage only the more significant\npoints for consideration and discussion. This tentative proposal\nis not an expression of the official views of this Government, but\nit is an indication of the views held by our technical exparts.\nI as now sending for your examination this tentative proposal, which\nI hope you will submit to the technical staffs of your Ministry\nand your Government for their study.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as you may\nwish to make, or to receive any alternative proposal for the provision\nof long-term international credits for reconstruction and development\nthat you may care to submit. If any of your experts should be in\nWashington, the technical exparts of this Government will be glad\nto discuss the tentative proposal with them.\nWe hope to send you soon some further material emplifying and\ndiscussing many of the provisions in the outlined draft proposal.\nSincerely yours,\nSecretary of the Treasury\nHis Excellency, Ing. J. Ramon Sevilla Sacasa,\nMinister of Finance,\nRepublic of Nicaragua,\nManagua, Nicaragus.\nEnclosure\nHDWAs NBIr 11/13/43\n185\nNOV 22 1943\nExcellency#\nIn the memorandum accompanying the tentative draft proposal\nfor an international stabilization fund, which I sent to the\nMinisters of Finance of the United Nations some months ago, I\nsaid: \"It 10 anticipated that there will also be submitted for\nconsideration & preliminary draft of & proposal for an international\nagency whose function will be to provide capital for reconstruction\nand development.\"\nThe preliminary draft of a tentative proposal for a United\nNations Bank for Reconstruction and Development has now been pre-\npared by the technical staff of the United States Treasury in\nconsultation with the technical staffs of other departments of\nthis Government. The draft is designedly in abbreviated form,\nintended to bring out at this stage only the more significant\npoints for consideration and discussion. This tentative proposal\nis not an expression of the official views of this Government, but\nit 18 an indication of the views held by our technical experts.\nI an now sending for your examination this tentative proposal, which\nI hope you will submit to the technical staffs of your Ministry\nand your Government for their study.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as- you may\nwish to make, or to receive any alternative proposal for the provision\nof long-term international credits for reconstruction and development\nthat you may care to submit. If any of your experts should be in\nWashington, the technical exparts of this Government will be glad\nto discuss the tentative proposal with them.\nWe hope to send you soon 5000 further material emplifying and\ndiscussing many of the provisions in the outlined draft proposal.\nSincerely yours,\n15/H.morgeathaw. Secretary of the Treasury\nHis Excellency, Paul Hartmann,\nMinister of Finance,\nKingdom of Norway,\nKingston House, Princes date,\nLondon, England.\nEnclosure\nHDW:EMBilr 11/13/43\nRegraded Unclassified\n186\nNOV 22 1943\nExcellency:\nIn the memorandum accompanying the tentative draft proposal\nfor an international stabilisation fund, which I sent to the\nMinisters of Finance of the United Nations some months ago, I\nsaids \"It is anticipated that there will also be submitted for\nconsideration a preliminary draft of a proposal for an international\nagency whose function will be to provide capital for reconstruction\nand development.\"\nThe preliminary draft of a tentative proposal for & United\nNations Bank for Reconstruction and Development has now been pre-\npared by the technical staff of the United States Treasury in\nconsultation with the technical staffe of other departments of\nthis Government. The draft 10 designedly in abbreviated form,\nintended to bring out at this stage only the more significant\npoints for consideration and discussion. This tentative proposal\nis not an expression of the official views of this Government, but\nit is an indication of the views held by our technical experts.\nI - now sending for your examination this tentative proposal, which\nI hope you will submit to the technical staffs of your Ministry\nand your Government for their study.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have much comments and suggestions as you may\nwish to make, OF to receive any alternative proposal for the provision\nof long-term international credits for reconstruction and development\nthat you may care to submit. If any of your experts should be in\nWashington, the technical experts of this Government will be glad\nto discuss the tentative proposal with them.\nWe hope to send you soon some further material amplifying and\ndiscussing many of the provisions in the outlined draft proposal.\nSincerely yours,\nSecretary of the Treasury\nHis Excellency, Jose A. Seas,\nMinister of Finance,\nRepublic of Panama,\nPanana City, Panama.\nEnclosure\n11/13/43\nRegraded Unclassified\n187\nNOV 22\nExcellency:\nIn the memorandum accompanying the tentative draft proposal\nfor an international stabilization fund, which I sent to the\nMinisters of Finance of the United Nations some months ago, I\nsaid: \"It is anticipated that there will also be submitted for\nconsideration a preliminary draft of a proposal for en inter-\nnational agency whose function will be to provide capital for\nreconstruction and development.\"\nThe preliminary draft of a tentative proposal for a United\nNations Bank for Reconstruction and Development has now been\nprepared by the technical staff of the United States Treasury\nin consultation with the technical staffs of other departments\nof this Government. The draft is designedly in abbreviated form,\nintended to bring out at this stage only the more significant\npoints for consideration and discussion. This tentative proposal\nis not an expression of the official views of this Government,\nbut it is an indication of the views held by our technical experts.\nI an now sending for your examination this tentative proposal,\nwhich I hope you will submit to the technical staffs of your\nMinistry and your Government for their study.\nAfter you and your experts have studied this tentative pro-\nposal, I shall be glad to have such comments and suggestions as\nyou may wish to nake, or to receive any alternative proposal for\nthe provision of long-term international credits for reconstruction\nand development that you may care to submit. If any of your ex-\nperte should be in Washington, the technical experts of this Govern-\nment will be glad to discuss the tentative proposal with them.\nWe hope to and you soon come further material emplifying and\ndiscussing any of the provisions in the outlined draft proposal.\nSincerely yours,\n/s/ H.Morgenthaw.Jr.\nSecretary of the Treasury\nThe Honorable Jan Hendrik Hofmayr,\nMinister of Finance,\nThe Union of South Africa,\nPretoria, Union of South Africa.\nEnclosure.\nHDW:EMB/jm\n11/13/43\nRegraded Unclassified\n188\nNOV 22 1943\nExcellency:\nIn the memorandum accompanying the tentative draft proposal\nfor an international stabilisation fund, which I sent to the\nMinisters of Finance of the United Nations some months ago, I\nsaid: \"It is anticipated that there will also be submitted for\nconsideration a preliminary draft of a proposal for an inter-\nnational agency whose function will be to provide capital for\nreconstruction and development.\"\nThe preliminary draft of a tentative proposal for a United\nNations Bank for Reconstruction and Development has now been\nprepared by the technical staff of the United States Treasury\nin consultation with the technical staffs of other departments\nof this Government. The draft is designedly in abbreviated\nform, intended to bring out at this stage only the more signifi-\ncant points for consideration and discussion. This tentative\nproposal is not an expression of the official views of this\nGovernment, but it is an indication of the views held by our\ntechnical experts. I - now sending for your examination this\ntentative proposal, which I hope you will submit to the technical\nstaffs of your Ministry and your Government for their study.\nAfter you and your experts have studied this tentative pro-\nposal, I shall be glad to have such comments and suggestions as\nyou may wish to make, or to receive any alternative proposal\nfor the provision of long-term international credits for recon-\nstruction and development that you may care to submit. If any\nof your experts should be in Washington, the technical experts\nof this Government will be glad to discuss the tentative pro-\nposal with them.\nWe hope to send you soon - further material amplifying\nand discussing many of the provisions in the outlined draft\nproposal.\nSincerely yours,\n/s/ H.Morgenthaw, Jr.\nSecretary of the Treasury\nHis Excellency, Arsend Origoryevich Iverev,\nPeople's Commissar of Finance,\nMoscow,\nUnion of Soviet Socialist Republics.\nEnclosure. HDW:EMB/jm 11/13/43\nRegraded Unclassified\n189\n25\nNOV\nExcellency:\nIn the memorandum accompanying the tentative draft proposal\nfor an international stabilization fund, which I sent come months\nago to the Ministers of Finance of the United Nations and the\ncountries associated with them, I said: \"It 10 anticipated that\nthere will also be submitted for consideration a proliminary\ndraft of a proposal for an international agency whose function\nwill be to provide capital for reconstruction and development.\"\nThe preliminary draft of a tentative proposal for a United\nNations Bank for Reconstruction and Development has now been pre-\npared by the technical staff of the United States Treasury in con-\nsultation with the technical staffs of other departments of this\nGovernment. The draft is designedly in abbreviated form, intended\nto bring out at this stage only the more significant points for\nconsideration and discussion. This tentative proposal is not an\nexpression of the official views of this Government, but it is an\nindication of the views held by our technical experts. I an now\nsending for your examination this tentative proposal, which I hope\nyou will submit to the technical staffs of your Ministry and your\nGovernment for their study.\nAfter you and your experts have studied this tentative pro-\nposal, I shall be glad to have such comments and suggestions as\nyou may wish to make, or to receive any alternative proposal for\nthe provision of long-term international credite for reconstruction\nand development that you may care to submit. If any of your ex-\nperts should be in Washington, the technical experts of this\nGovernment will be glad to discuss the tentative proposal with\nthem.\nWe hope to send you soon some further material amplifying and\ndiscussing many of the provisions in the outlined draft proposal.\nSincerely yours,\nJr.\nSecretary of the Treasury\nRie Excellency, Hector Alvares Cina,\nThe Minister of Finance,\nThe Oriental Republic of Uruguay,\nNontevideo, Uruguay.\nEnclosure.\nHDW:EMB/jm 11/16/43\nRegraded Unclassified\n130\n25\nNOV\nExcellency:\nIn the memorandum accompanying the tentative draft proposal\nfor an international stabilization fund, which I sent to the Ministers\nof Pinance of the United Nations some months ago, I saids \"It is\nanticipated that there will also be submitted for consideration a\npreliminary draft of a proposal for an international agency whose\nfunction will be to provide capital for reconstruction and develop-\nment.\"\nThe preliminary draft of a tentative proposal for a United Nations\nBank for Reconstruction and Development has now been prepared by the\ntechnical staff of the United States Treasury in consultation with the\ntechnical staffs of other departments of this Government. The draft\nis designedly in abbreviated form, intended to bring out at this stage\nonly the more significant points for consideration and discussion.\nThis tentative proposal is not an expression of the official views\nof this Government, but it is an indication of the views held by our\ntechnical experts. I an now sending for your examination this\ntentative proposal, which I hope you will submit to the technical\nstaffs of your Ministry and your Government for their study.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as you may wish\nto make, or to receive any alternative proposal for the provision of\nlong-term international credits for reconstruction and development\nthat you may care to submit. If any of your experts should be in\nWashington, the technical experts of this Government will be glad to\ndiscuss the tentative proposal with them.\nWe hope to send you soon some further material amplifying and\ndiscussing many of the provisions in the outlined draft proposal.\nSincerely yours,\nSecretary of the Treasury.\nHis Excellency, H. H. Kung,\nThe Minister of Finance,\nThe Republic of China,\nChungking, China.\nEnclosure\n11/13/43\nRegraded Unclassified\n191\n25\nNOV\nExcellency:\nIn the memorandum accompanying the tentative draft proposal for\nan international stabiliestion fund, which I sent some months ago to\nthe Ministers of Finance of the United Nations and the countries II-\nsociated with them, I saids \"It is anticipated that there will also\nbe submitted for consideration a preliminary draft of & proposal for\nan international agency whose function will be to provide capital for\nreconstruction and development.\"\nThe preliminary draft of a tentative proposal for & United Nations\nBank for Reconstruction and Development has now been prepared by the\ntechnical staff of the United States Treasury in consul tation with the\ntechnical staffs of other departments of this Government. The draft\nis designedly in abbreviated form, intended to bring out at this stage\nonly the more significant points for consideration and discussion.\nThis tentative proposal is not an expression of the official views\nof this Government, but it is an indication of the views held by our\ntechnical experts. I an now sending for your examination this tenta-\ntive proposal, which I hope you will submit to the technical staffs\nof your Ministry and your Government for their study.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as you may wish\nto make, or to receive any alternative proposal for the provision of\nlong-term international credits for reconstruction and development\nthat you may care to submit. If any of your siperts should be in\nWashington, the technical experts of this Government will be glad to\ndiscuss the tentative proposal with them.\nNo hope to send you MOOD some further material amplifying and\ndiscussing many of the provisions in the outlined draft proposal.\nSincerely yours,\nSecretary of the Treasury.\nHis Excellency, Carlos Lleras Restropo,\nThe Minister of Finance,\nThe Republic of Colombia,\nBogota, Colombia.\nEnclosure\nHDW:EMB:ff 11/16/43\nRegraded Unclassified\n192\n25\nNOV 2 2\nExcellency:\nIn the memorandum accompanying the tentative draft proposal\nfor an international stabilisation fund, which I sent to the Ministers\nof Finance of the United Nations 80100 months ago, I said, \"It is\nanticipated that there will also be submitted for consideration a\npreliminary draft of a proposal for an international agency whose\nfunction will be to provide capital for reconstruction and develop-\nment.\"\nThe preliminary draft of a tentative proposal for a United Nations\nBank for Reconstruction and Development has now been prepared by the\ntechnical staff of the United States Treasury in consultation with the\ntechnical staffs of other departments of this Government. The draft\nis designedly in abbreviated form, intended to bring out at this stage\nonly the more significant points for consideration and discussion.\nThis tentative proposal is not an expression of the official views\nof this Government, but it is an indication of the views held by our\ntechnical experts. I am now sending for your examination this\ntentative proposal, which I hope you will submit to the technical\nstaffs of your Ministry and your Government for their study.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as you may wish\nto make, or to receive any alternative proposal for the provision of\nlong-term international credits for reconstruction and development\nthat you may care to submit. If any of your experts should be in\nWashington, the technical experts of this Government will be glad to\ndiscuss the tentative proposal with them.\nNo hope to send you soon some further material amplifying and\ndiscussing any of the provisions in the outlined draft proposal.\nSincerely yours,\nSecretary of the Treasury.\nHis Excellency,\nFrancisco de Paula Outierres Rose,\nThe Minister of Finance,\nThe Republic of Costs Rioa,\nSan Jose, Costa Rica.\nEnclosure\nRegraded Unclassified\n193\n25\nMOV 22 1943\nExcellency:\nIn the memorandus accompanying the tentative draft proposal\nfor an international stabilisation fund, which I sent to the Ministers\nof Finance of the United Nations some months ago, I said: \"It is\nanticipated that there will also be submitted for consideration a\npreliminary draft of 8 proposal for an international agency whose\nfunction will be to provide capital for reconstruction and develop-\nment.\"\nThe preliminary draft of a tentative proposal for a United Nations\nBank for Reconstruction and Development has now been prepared by the\ntechnical staff of the United States Treasury in consul tation with the\ntechnical staffs of other departments of this Government. The draft\nis designedly in abbreviated form, intended to bring out at this stage\nonly the more significant points for consideration and discussion.\nThis tentative proposal is not an expression of the official views\nof this Government, but it is an indication of the views held by our\ntechnical experts. I an now sending for your examination this\ntentative proposal, which I hope you will submit to the technical\nstaffs of your Ministry and your Government for their study.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as you may wish\nto make, or to receive any alternative proposal for the provision of\nlong-term international credits for reconstruction and development\nthat you may care to submit. If any of your experts should be in\nWashington, the technical experts of this Government will be glad to\ndiscuss the tentative proposal with them.\nWe hope to send you soon some further material amplifying and\ndiscussing many of the provisions in the outlined draft proposal.\nSincerely yours,\nSecretary of the Treasury.\nHis Excellency, Eduardo I. Montoulieu,\nThe Minister of Finance,\nThe Republic of Cube,\nHabana, Cuba.\nEnclosure\n11,3:5h\n11/13/43\nRegraded Unclassified\n194\n25\nNOV 2 1943\nExcellency:\nIn the memorandum accompanying the tentative draft proposal\nfor an international stabilisation fund, which I sent to the Ministers\nof Finance of the United Nations some months ago, I saids \"It is\nanticipated that there will also be submitted for consideration a\npreliminary draft of . proposal for an international agency whose\nfunction will be to provide capital for reconstruction and develop-\nment.\"\nThe preliminary draft of a tentative proposal for a United Nations\nBank for Reconstruction and Development has now been prepared by the\ntechnical staff of the United States Treasury in consultation with the\ntechnical staffs of other departments of this Government. The draft\nis designedly in abbreviated form, intended to bring out at this stage\nonly the more significant points for consideration and discussion.\nThis tentative proposal is not an expression of the official views\nof this Government, but it is an indication of the views held by our\ntechnical experts. I as now sending for your examination this\ntentative proposal, which I hope you will submit to the technical\nstaffs of your Ministry and your Government for their study.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as you may wish\nto make, or to receive any alternative proposal for the provision of\nlong-term international credits for reconstruction and development\nthat you may care to submit. If any of your experte should be in\nWashington, the technical experts of this Government will be glad to\ndiscuss the tentative proposal with them.\nWe hope to send you soon BORN further material amplifying and\ndiscussing many of the provisions in the outlined draft proposal.\nSincerely yours,\nSecretary of the Treasury.\nHis Excellency, Ledislav Peierabend,\nThe Minister of Pinance,\nThe Republic of Csechoalovakia,\nPursecroft, Brown Street,\nLondon, England.\nEnclosure\n11/15/23\nRegraded Unclassified\n195\n25\nNOV 2 2 1943\nExcellency:\nIn the memorandum accompanying the tentative draft proposal\nfor an international stabilisation fund, which I sent to the Ministers\nof Finance of the United Nations some months ago, I said: \"It is\nanticipated that there will also be submitted for consideration a\npreliminary draft of a proposal for an international agency whose\nfunction will be to provide capital for reconstruction and develop-\nment.\"\nThe preliminary draft of a tentative proposal for a United Nations\nBank for Reconstruction and Development has now been prepared by the\ntechnical staff of the United States Treasury in consultation with the\ntechnical staffs of other departments of this Government. The draft\nis designedly in abbreviated form, intended to bring out at this stage\nonly the more significant points for consideration and discussion.\nThis tentative proposal is not an expression of the official views\nof this Government, but it is an indication of the views held by our\ntechnical experts. I an now sending for your examination this\ntentative proposal, which I hope you will submit to the technical\nstaffs of your Ministry and your Government for their study.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as you may wish\nto make, or to receive any alternative proposal for the provision of\nlong-term international credits for reconstruction and development\nthat you may care to submit. If any of your experts should be in\nWashington, the technical experts of this Government will be (lad to\ndiscuss the tentative proposal with them.\nWe hope to send you soon some further material amplifying and\ndiscussing many of the provisions in the outlined draft proposal.\nSincerely yours,\nSecretary of the Treasury.\nläs Excellency, J. Furey Pichardo,\nThe Minister of Finance,\nDominican Republic,\nSanto Domingo, Dominican Republic.\nEnclosure\n21/25/45\nRegraded Unclassified\n186\nNOV 2 1943\nIscellencys\nIn the menorandus accompanying the tentative draft proposal\nfor an international stabilisation fund, which I ment to the\nMindsters of Finance of the United Nations smie months ago, I\nsaids \"It 10 anticipated that there will also be submitted for\nconsideration a preliminary draft of a proposal for an inter-\nnational agency whose function will be to provide capital for\nreconstruction and development.\"\nThe preliminary draft of a tentative proposal for as United\n\"ations Bank for Reconstruction and Development has now been\npropared by the technical staff of the United States Treasury in\nconsultation with the technical state of other departments of\nthis Government. The draft is designedly in abbreviated form,\nintended to bring out at this stage only the sore inficant\npoints for consideration and discussion. This tentative proposal\n1s not an expression of the official views of this Government,\nbut :t is an indication of the views held by our technical experts.\nan now sending for your examination this tentative proposal,\nwhich : hope you will subsit to the technical staffe of your\nVinistry and your Government for their study.\nAfter you and your experts have studied this tentative proposal,\n1 shall be glad to have such comments and suggestions as you may\nwish to make, or to receive any alternative proposal for the ,500\nvision of long-term international credits for reconstruction and\ndevelopment that you may care to submit. If any of your experts\nshould be in Washington, the technical experts of this Government\nwill be glad to discuss the tentative proposal with thes.\nlie hope to send you soon some further material amplifying and\ndiscussing nany of the provisions in the outlined draft proposal.\nSincerely yours,\nsecretary of UN Treasury\nde Excellency, Modrige Sensyon,\nThe Winister of Finance,\nThe Republic of a Selvador,\nan salvador, a Salvador.\nenclasure. 11/13/43\nRegraded Unclassified\n187\n25\nNOV 2 2 1943\nExcellency:\nIn the sesarandem assompanying the tentative draft proposal for\nan international stabilisation fund, which I sent some months age to\nthe l/inisters of Pinance of the United Nations and the countries #\nsociated with them, I said: \"It is antisipated that there will also\nbe submitted for consideration a preliminary draft of a proposal for\nan international agency whose function will be to provide capital for\nreconstruction and development.\"\nThe preliminary draft of & tentative proposal for a United Nations\nBank for Reconstruction and Development has now besn prepared by the\ntechnical staff of the United States Treasury in consultation with the\ntechnical staffs of other departments of this Government. The draft\nis designedly in abbreviated form, intended to bring out at this stage\nonly the more significant points for consideration and discussion.\nThis tentative proposal is not an expression of the official views\nof this Government, but 11 is an indication of the views held by our\ntechnical experts. I an new sending for your examination this tenta-\ntive proposal, which I hope you will submit to the technical staffs\nof your Ministry and your Government for their study.\nAfter you and your exports have studied this tentative preposal,\nI shall be glad to have such comments and suggestions as you may wish\nto make, or to receive any alternative proposal for the provision of\nlong-term international credits for resonstruction and development\nthat you my care to submit. If Any at.)FU enjerts chould be in\nWashington, the technical experts of this Government will be glad to\ndisease the tentative proposal with them.\nThe hope to send you soon some further material emplifying and\ndiscussing may of the provisions in the outlined draft proposal.\nSincerely yours,\nSecretary of the Treasury.\nHis Excellency, Alberto Wright Vallarine,\nThe Minister of Finance,\nThe Republic of Bounder,\nQuite, Equador.\nEnclosure\nHDW.EMB,ff 11/16/43\nRegraded Unclassified\n197\n25\nNOV 2 2 1943\nExcellency:\nIn the assocrandem accompanying the tentative draft proposal for\nan international stabilisation fund, which I sent some months age to\nthe l'inisters of Finance of the United Nations and the countries -\nsociated with them, 1 said: \"It is anticipated that there will also\nbe submitted for consideration a preliminary draft of a proposal for\nan international agency whose function will be to provide capital for\nreconstruction and development.\"\nThe preliminary draft of a tentative proposal for a United Nations\nbank for Reconstruction and Development has now been prepared by the\ntechnical staff of the United States Treasury in consultation with the\ntechnical staffs of other departments of this Government. The draft\nis designedly in abbreviated form, intended to bring out at this stage\nonly the more significant points for consideration and discussion.\nThis tentative proposal is not an expression of the official views\nof this Government, but 10 is an indication of the views hald by our\ntechnical experts. I as DOW sending for your examination this tenta-\ntive proposal, which I hope you will submit to the technical staffs\nof your Ministry and your Government for their study.\nAfter you and your experts have studied this tentative proposal,\nI shall be glad to have such comments and suggestions as you may wish\nto make, or to receive any alternative proposal for the provision of\nlong-term international credits for reconstruction and development\nthat you my eare to submit. If any of your experts should be in\nWashington, the technical experts of this Government will be glad to\ndiscuss the tentative preposal with them.\nThe hope to send you soon some further material explifying and\ndiscussing may of the provisions in the outlined draft proposal.\nSincerely yours,\nSecretary of the Treasury.\nHis Excellency, Alberto Wright Vallarine,\nThe Minister of Finance,\nThe Republis of Beusder,\nGuito, Lounder.\nEnclosure\nHDW:EMB,ff 11/16/43\nRegraded Unclassified\n198\nNOT RU or, RE-TRANS.,ITTED\nU.S. SECRET\nCOPY NO\n12\nBRITISE MUST SECRET\nOPTED No. 384\nInformation received up to 10 A.B. 23rd November, 1943.\n1, NAVAL\nHome aters Plst. One of H.I. Destruyers slightly damaged in S.W.\nApproaches during attack of Hoinkel 177. 2 alider Sombs\nshot dom.\nMediterranean Remaining British have do been evacuate from SALUS ith\n1,000 Greeks, and 400 Italians. Most o: priseners capture?\nin and 186 garrisonson nave reached / lided Bases.\nAnti-Lubmarine 21st. / U-Boat probably sun: in S. Approaches by a\nSloop and a Frigate.\n2.\nItaly Operations still hanpere: by eather. Cur pateds report success-\nful enga ements with cnew? formed elements in upper reaches of\ntives SANGRO irom CASTE. DI (15 N. ISERVIA) for COOLE 8 miles to the\nNortheast. Further progress this been cade nione road South of ALREDENA (5 nilor\n0.7. CASTED D1 SANGRO).\n3. AIR SPeanfieds\nVestorn Front 22nd/23rd. mircraft despatched B.R.L. 766 (26 missing,\n3 crashed), LEVERKUSE. 12, Sea. -mining 14, Intruders 14,\nAnti-shipping 4, Leaflets 12, (one crashed). BERLIN obscured by clouds.\nC nonatrations of fires reported. Per enery fighters seen.\nItaly 21st. 85 Maranders (8.26) dropped 41 tono on CIVITAVECCHIA town and\nharbour, 41 tons on FANO BRIDGE (30 miles N.S. ANCONA), 27 tons on\nrailway centre at CHIBS1 (23 miles W.S.A. of PERUGIA). Fightors fiew 94 sorties\nagainst strong points in the LANCIANO acoa.\nAlbania 21st., Spitfire: attacked torgets 8.6. of DURAZZO.\nCrete 21st/22nd. 9 Halifaxes and 4 Liborators (3.24) bombod HERALDIOS.\nBurma 21st/22nd. Wellingtons and Liborators (3.4) dropped 32 tons on\nSAGAING (20 miles 1,8.7. of\nTelgram No. 383 not aent to Washington,\nRegraded TREASURY Uncla ssified\n1943 NOV\nSECRET\n199\nNOV N 25 1943\nMEMORANDUM FOR SECRETARY'S DIARY\nAt 9:30 a.m. Wednesday, November 24, 1943, there was\na. meeting in Secretary Hull's office to discuss the freezing\nof Argentina. The following were present:\nFrom the State Department\nFrom the Treasury Department\nSecretary Hull\nSecretary Morgenthau\nAssistant Secretary Berle\nMr. Paul\nMr. Collado\nMr. White\nMr. Duggan\nMr. Pehle\nMr. Bonsal\nSecretary Morgenthau handed to Mr. Hull a letter\n(Exhibit A attached) which describes recent transactions in\nArgentine accounts and the continued efflux of Argentine\ngold from the United States. The letter also refers to the\nfact that Treasury has not received a reply to its memorandum\nto the Secretary of State of November 12, transmitting a\nproposed reply to the inquiry of Congressman Schiffler, who\nhas since introduced a bill (H. R. 3696) authorizing the\nseizure of property being used to aid any nation at war with\nthe United States. Secretary Hull read Secretary Morgenthau's\nletter aloud.\nSecretary Morgenthau then inquired whether Under Secretary\nStettinius wa.s available since certain of his comments would\nbe critical of Stettinius. Stettinius was sent for but was\nfound to be at home ill and Secretary Hull asked that we\nproceed in his absence. Secretary Morgenthau then said that\nhe thought that the cable (No. 1644, October 24) which\nStettinius sent to Hull at Moscow was very unfair in stating\nthat the purpose of the Treasury in advocating the freezing\nof Argentina was the upsetting of the present Argentine\nGovernment. Secretary Morgenthau made it clear that the\nTreasury was advocating the freezing of Argentina on economic\nwarfare grounds and the question of whether any government\nshould be overthrown was for the Secretary of State to\ndetermine. Secretary Hull then said: \"I would like to see\nthe present government of Argentina overthrown\".\nRegraded Unclassified\n200\n- 2 -\nSecretary Morgenthau then summarized the case for\nfreezing Argentina and pointed out that the facts were in\nthe possession of the State Department and Ambassador\nArmour. He pointed out that Argentina had made specific\ncommitments at the Rio conference held in January 1942 and\nat the Washington conference held in July 1942, and that\nArgentina had not lived up to its commitments. When asked\nto comment on the matter, Mr. Berle said that freezing of\nArgentina would constitute but a. minor gain on the economic\nwarfare front whereas its political aspects were quite\ndisturbing. He said that several Latin American governments\nhad expressed themselves as being very worried about our\ntaking strong action against Argentina. Secretary Morgenthau\nthen pointed out that our failure to act against Argentina\nwhen the other Latin American governments in Argentina\nwere cooperating with us had a bad effect on the other\ngovernments.\nAssistant Secretary Berle then said that the situation\nhad not worsened any in Argentina but that the Argentine\nGovernment had merely continued to fail to take affirmative\nmeasures to support our war effort. Pehle pointed out that\nArmour in his recent cables had made it quite clear that\nwhile the Argentine Government for sometime has been aiding\nthe Axis by failing to cooperate with the United States in\neconomic warfare matters, more recently the Argentine\nGovernment has been actively aiding the Axis by making loans\nto German business enterprises through the banks which it\ncontrols, insisting that Argentinians deal with such business\nenterprises, giving large government contracts to notorious\nGerman concerns, etc.\nAt this point Secretary Hull said that perhaps we should\nconsult with the other principal Latin American Republics\nGovernment's freezing Argentina and to the extent possible\nto see if they would be willing to publicly approve this\ntake similar action themselves. Mr. Hull said he felt this\nwould be worth doing, even though he was afraid the Latin\nAmerican governments would \"duck out\" of taking any such\nmeasures. There was some discussion as to whether the\nproposal to be put up to some of the other Latin American\ncountries should include giving the Argentine Government\nand perhaps the Central Bank a general license. Secretary be\nMorgenthau suggested that the proposition which should\nRegraded Unclassified\n201\n- 3 -\nput up to such governments would be to treat Argentina\njust as the United States is treating the European neutrals\nwho have been frozen and then given general licenses.\nCollado then said that the State Department had\ncalled Merle Bohan, Economic Counsellor of our Embassy\nin Argentina, to the United States for consultation and\nthat Bohan, who had advocated freezing a few weeks ago,\nnow felt that the time had passed for such measures.\nBohan advocated instead that we tell the Argentine Government\nthat Treasury would consider unfreezing Banco de la Provincia\nand the Banco de la Nacion if the Argentine Government would\ngive this Government broad undertakings on the economic\nwarfare front. Bohan does not believe the Argentine\nGovernment will give us such undertakings, in which case\nthe State Department would be prepared to ask Treasury to\nintroduce a monitoring system on Argentine assets in the\nUnited States. Collado said that the monitoring system\nwould accomplish the same ends as freezing Argentina with\na general license to the Argentine Government and possibly\na general license on trade. Secretary Morgenthau said that\nTreasury would be glad to give State's suggestions on a\nmonitoring system consideration but that just as the\ndecision on the political aspects were for State, we\nassumed that State would want our views as to the type of\nfreezing control which should be applied.\nThere wa.s then some discussion of whether the British\nwould be willing to take parallel action against Argentina.\nMr. Bonsal said he had discussed the matter with British\nrepresentatives here and the British had made three points:\n1. They would feel very badly if we froze\nArgentina without consulting them, since\nthe British say they have been trying to\nfollow a parallel policy with respect to\nArgentina.\n2. In view of the exchange controls now\nArgentine assets there would be little\napplicable in the United Kingdom on\nto be gained by Britain taking similar\naction.\nRegraded Unclassified\n202\n- 4 -\n3. The British do not believe there would\nbe any substantial gains on the economic\nwarfare front by the United States freezing\nArgentina.\nSecretary Morgenthau said that it would be helpful if the\nmatter were discussed a little more frankly, at which\npoint Mr. Bonsal said he agreed with the British position.\nSecretary Morgenthau added that he would like to see the\nmatter put up to the British in writing with a request\nfor a written reply so that the record will show whether\nthe British are willing to follow a parallel policy in\nthis matter.\nAs the matter was left, Secretary Hull concurred in\napproaching the principal Latin American countries and the\nBritish on the proposal that Argentina be frozen and general\nlicenses be issued on the same basis as is the case with\nPortugal, Spain, and the other European neutrals. If we\nare not able to obtain any concurrence in such action,\nparticularly from the other Latin American countries, we\ncan then canvas what action should be taken. We will also\nexamine the monitoring system proposed by State. Collado\nhanded Pehle several memoranda describing the proposed\nmonitoring plan and also indicating in some detail the\nbasis for the State Department's position. Copies of such\nmemoranda are attached (Exhibit B).\nRegraded Unclassified\nEXHIBIT A\n203\nNovember 24, 1943\nMy dear Cordell:\nSince writing you on November 12, 1943, three further\nshipments of gold of approximately $1,250,000 each. held by\nthe Argentine Central Bank in this country have left the\nUnited States bound for the Argentine. This makes a total\nefflux from the United States since November 4, 1943, of\napproximately $6,250,000 of Argentine gold.\nSubsequent to the transfers reported in my memorandum\nof November 8, 1943, to the Acting Secretary of State, there\nhas been a. flight of $2,178,000 from Argentine accounts to the\naccounts of other countries, mostly to Uruguay but also to\nSweden, Panama, Chile, and Colombia, and sums aggregating\n$9,785,000 have been transferred to the account of the\nArgentine Central Bank from other Argentine banks.\nSince my memorandum to you of November 12 transmitting\na copy of a letter from Congressman Schiffler on Argentine\ngold together with a proposed reply, Congressman Schiffler\nhas introduced a Bill, H. R. 3696, a copy of which is attached.\nThis Bill would authorize the seizure of certain property\n\"which is being used or which is about to be used, to aid\nany nation at war with the United States\" and is obviously\naddressed to the Argentine situation. I think it would be\nadvisable to make a prompt reply to Mr. Schiffler on the\ninquiry which he has made, and I should appreciate having\nyour comments on the reply proposed by the Treasury.\nSincerely,\n(Signed) H. Morgenthau, Jr.\nThe Honorable,\nThe Secretary of State.\nRegraded Unclassified\nEXHIBIT A\n203\nNovember 24, 1943\nMy dear Cordell:\nSince writing you on November 12, 1943, three further\nshipments of gold of approximately $1,250,000 each. held by\nthe Argentine Central Bank in this country have left the\nUnited States bound for the Argentine. This makes a total\nefflux from the United States since November 4, 1943, of\napproximately $6,250,000 of Argentine gold.\nSubsequent to the transfers reported in my memorandum\nof November 8, 1943, to the Acting Secretary of State, there\nhas been a flight of $2,178,000 from Argentine accounts to the\naccounts of other countries, mostly to Uruguay but also to\nSweden, Panama, Chile, and Colombia, and sums aggregating\n$9,785,000 have been transferred to the account of the\nArgentine Central Bank from other Argentine banks.\nSince my memorandum to you of November 12 transmitting\na copy of a letter from Congressman Schiffler on Argentine\ngold together with a proposed reply, Congressman Schiffler\nhas introduced a. Bill, H. R. 3696, a copy of which is attached.\nThis Bill would authorize the seizure of certain property\n\"which is being used or which is about to be used, to aid\nany nation at war with the United States\" and is obviously\naddressed to the Argentine situation. I think it would be\nadvisable to make a prompt reply to Mr. Schiffler on the\ninquiry which he has made, and I should appreciate having\nyour comments on the reply proposed by the Treasury.\nSincerely,\n(Signed) H. Morgenthau, Jr.\nThe Honorable,\nThe Secretary of State.\nRegraded Unclassified\n204\nTREASURY DEPARTMENT\nINTER OFFICE COMMUNICATION\nDATE November 24, 1941\nTO\nSecretary Morgenthau\nFROM\nRandolph Paul\nAs we left the meeting at State this morning Collado\nhanded Pehle several memoranda on the Argentine situation\nwhich had been prepared for internal use in State. Col-\nlado handed these documents to Pehle in order to enable\nTreasury to get a better idea of the monitoring system\nproposed by the State Department. The documents are very\ninteresting on several grounds and you will want to read\nthem over. we are studying the proposed monitoring system\nvery carefully and will let you have our views with respect\nto it.\nYou will be particularly interested in the note which\nappears on one of the documents in Mr. Berle's handwriting\nreading as follows:\n\"I should agree with this* if Treasury will\nsettle on that basis. But it ought to be a\ngenuine acceptance, - not a mere step toward\nanother dive into a tangled thing.\"\nThe original documents have been returned to Collado.\nBot\n(* - Berle is referring to the proposed monitoring\nsystem.)\nRegraded Unclassified\nDEPARTMENT OF STATE\nSPECIAL ASSISTANT TO THE UNDER SECRETARY\nNovember 18, 1943\nU - Mr. Stettinius:\nS - The Secretary:\n(Copies to A-A, A-B, PA/LD, RA - Mr. Bonsal,\nFD and WT)\nArgentina - Foreign Funds Control\nReference is made to my memorandum of November 8\nand the joint memorandum of Messrs. Bonsal, Duggan and\nmyself of November 13 recommending a special monitoring\nsystem of Argentine international transactions. I have\ndiscussed these matters in detail with Mr. Bohan, Economic\nCounsellor of the Buenos Aires Embassy, who has pointed\nout that our failure to take further action regarding the\nBanco de la Nación and the Banco de la Provincia, which\nhave been ad hoc blocked, invites retaliation by Argentina\nmuch more than would more generalized action against\nArgentine transactions. He has provided the attached\nme memorandum presenting a special solution to the problem\nof the two banks.\nI should now like to recommend, with his concurrence,\nthe following modified program:\nA. Authorize Ambassador Armour to inform the\nForeign and Finance Ministers that the Treasury is\nwilling to consider removing the two banks from the\nlist of Special Blocked Nationals but requests that\nthe Argentine Government be more specific as to the\nsteps which it is willing to take in order to pre-\nvent the recurrence of types of transactions which\nhave in the past tended to aid the Axis. Speci-\nfically, would the Argentine Government be willing\nto guarantee:\n1. In General\na. That no remittances would be made\nfrom Argentina to Axis and Axis-occupied\ncountries or to third countries in cases\nwhere the beneficial interest resided in\nAxis\nRegraded Unclassified\n-2-\nAxis or Axis-occupied countries.\nb. That no credits or overdrafts\nwould be extended to firms in Argentina\nwhose activities are inimical to the\nsecurity of the hemisphere.\nC.a That information would be made\navailable concerning the beneficial\nownership of dollar balances and securi-\nties held in the name of Argentine bank-\ning and other financial institutions;\nespecially any holdings for nationals of\nAxis or Axis-occupied countries.\n2. That the two banks, in their character\nas private banks, would give, through their\nUnited States correspondents, the necessary\ncommitments to the Treasury with respect to\nremittances abroad and credits and overdrafts\nto Proclaimed List nationals.\nB. If Argentina turns down this proposal or\ndelays unduly in considering it, proceed with the\npositive program outlined in the memorandum of\nNovember 13:\n\"(2) The Treasury, after agreement with the\nDepartment as to procedure, institute a 5 pecial\nmonitoring system of Argentine international\ntransactions designed to catch and subject to\nspecial blooking action those international\nfinancial transactions which may be of benefit\nto the enemy. Under such a system banks would\nbe instructed:\n\"a, To interpose no hindrance whatever\nto commercial transactions and transactions\nincident to commerce.\n\"b. To interpose no obstacle to Argentine\ntransactions which merely involve transfers\nof funds within the United States.\n\"c. To\nRegraded Unclassified\n-3-\n\"c. To require evidence as to the pur-\nposes of all other types of transactions\nwhich means, in effect, Argentine inter-\nnational transactions of a purely finance\ncharacter. To facilitate rapid monitoring\nand speedy approval of legitimate transactions,\nthe Federal Reserve Bank of New York should\nbe generally authorized to make such examina-\ntion and grant such approval, and possibly\nlater such general authorization on at least\nlimited calsses of general transactions might\nbe extended to the banks themselves.\n\"(3) The special blocked status of the Banco\nde la Nacion and the Banco de la Provincia be\nretained but commercial banks be authorized to\npermit all commercial transactions and trans-\nactions incident to commerce.\"\nI understand that the Secretary is planning to dio-\nouss this whole matter with the Secretary of the Treasury,\nIf the above recommendations are thought to have merit,\nI should like to be authorized to discuss, at an appro-\npriate time, their mechanics with Mr. Pehle of the Treasury.\nEmilio Ege 6% Collado\nEA/C:EGC:ja\nRegraded Unclassified\nMEMORANDUM\nTO:\nMr. Collado\nFROM:\nMerwin Bohan\nWith reference to point 3 of the recommendations\nin the memorandum \"The Argentine Situation\" of November 13,\n1943, the following suggestions are submitted for your\nconsideration.\nAs you are well aware, both the Department and the\nEmbassy were always opposed to the ad hoo blocking of\nthe Nación and Provincia. The Embassy fully realized the\nsituation which brought about the Department's approval\nof the measure taken by the Treasury in this regard.\nHowever, we are in a rather weak position with respect\nto these banks and, in viow of the \"guarantees\" which\nthe Argentine Government is prepared to give us, it is\nessential that an effort be made to get out of the situa-\ntion we are in as speedily and effectively as we can.\nWe cannot merely eliminate these institutions from\nthe List of Specially Blocked Nationals. Do you not\nthink that it would be wise to authorize the Ambassador\nto inform the Foreign Minister along the following lines:\nThat the Treasury Department is willing to\nconsider the de-listing of the two banks but re-\nquests that the Argentine Government be more\nspecific as to the steps which it is willing to\ntake in order to prevent the recurrence of trans-\nactions which have tended to aid the Axis in the\npast. Specifically, would the Argentine Govern-\nment be willing to guarantee: (a) that no remit-\ntances would be made from Argentina to Axis and\nAxis-occupied countries or to third countries where\nthe beneficial interest resided in Axis or Axis-\noccupied countries; (b) that no credits or over-\ndrafts would be extended to firms in Argentina\nwhose activities are inimical to the security of\nthe hemisphere; (c) that, upon request, informa-\ntion would be furnished concerning the beneficial\nownership of accounts held in the name of Argentine\nbanking\nRegraded Unclassified\n-2-\nbanking or other financial institutions; (d) that\nthe Nación and Provincia, in their character as\nprivate banks, would give, through their American\ncorrespondents, the necessary commitments to the\nTreasury Department with respect to remittances\nabroad and credits and overdrafts to Proclaimed\nList nationals.\nIt is to be noted that the Proclaimed List is intro-\nduoed only with respect to private commitments to be given\nby the banks to the Treasury. The chances are that we\ncannot get away with it, but there would be no objection\nto our trying and then giving some ground if the need arose.\nIncidentally, I would not give two cents for any commit-\nments made by the present Argentine Government, but if\nthe commitments are made and then not carried out we would\nbe in an excellent position to again consider the question\nof general freezing. It would seem advisable, if the\nArgentine Government agrees to give these commitments, to\nfollow its specific request that the two banks be de-listed\nbefore the commitments are formally entered into.\nNovember 16, 1943\nMB:ja\nRegraded Unclassified\ncare for mr Collabo\nNovember 13, 1943.\nS:\nThe Secretary\nTHE\n11UAY1\nI. Political Background.\nIt 10 nov clear that the June revolution was\nmotivated by internal considerations rather than any\ndesire to change the Argentine Government's foreign\npolicy. The officers who engineered the revolution were\nthe leading members of e military organization known as\nG.O.U., a groun of extress Nationalists. This group\nopposed the presidential candidacy of Patron Contas, a\nModerate, who had received the blessing of President\nCestillo and who was to have been nominated on the day of\nthe revolution no the presidential candidate of the\nNational Democratic Party. The present Government code\nposed almost entirely of military men has endeavored to\nstrengthen its position by repressive measures of the\nfamiliar totalitarian nattern. The undisputed leader\nunder Hamirez 10 Colonel Juan Domingo Peron, now Under\nSecretary of War. The Government professes to be protect-\ning the country from corrupt, self-seeking exploitation\nof the professional politicians. Its attitude has been\nanti-American, nro-Nazi and chauvinistic. There has\nalso teen a strong clerical influence.\nFollowing the resignation of Admiral Storni at\nForeign Minister, three other Cabinet members who were\nconsidered friendly towards the United States were replaced\nby Argentine Nationalists. Custavo Martinez Zuviria was\neppointed Minister of Justice and Public Instruction; Cesar\nMinister of Public Works. The latter's appointment is the\nAmeghino, Minister of Finance; and Captain Ricardo Vago,\nmost favorable from our point of view, as Vago enjoye a\nGeneral Farrell has been named Vice President and General\ngood reputation and has never been involved in polities.\nGilbert has replaced Foreign Minister Storni.\nThe Government gained initial popularity anong the\npeople by lowering public utility rates and adopting other\nmeasures\nRegraded Unclassified\nmeasures designed to reduce the coste of living for the\nworking people. In recent sonths, however, the repressive\nmeasures of the Government, including closing of universi-\nties, press and radin censorahip, the ban on cert-in Jewish\nnewspapers, arresto of lator lenders and the cancelation of\nelections have alion ted lorge sections of the Argentine\npeople. The dismissal of a considerable number of university\nprofessors for having indicated their disagreement with\nthe Government's Dolloy and the Nazi-natterned taotics\nadopted against the Jowieh press have evoked criticism in\nthe other American resublics, many of which have been out-\nspoken in their condemnation of the repressive sotivities\nof the present Argentine Government. Our own interests\nappear to be affected by a recent pronosal to replace all\nforeign employees of national, provincial and private tele-\ncommunications systems in Argentina with notive Argentines\nsince the key managerial employees of these companies are\nfor the most nart Amrioan or British.\nMore recently, and especially since the triumph of\nthe extreme Nationalistic group within the Government, there\nhave been signe that the repressive measures above described\nhave tended to shake the prosperous annthy of the Argentine\npeople. Student riots have opused the closing of universities.\nLabor is unsettled with a general strike being agitated.\nThe prospects of an overturn in the near future are not\nbright.\nII, Freezing of Argentine Assets.\nIn May 1942, the Treasury in a memorandum recommended\nthat all Argentine funds in the United States be frozen\nand that a general license be issued for purely commercial\ntransactions. This recommendation was based on Argentina's\nfailure to collaborate with the other American recublics.\nThe Department opposed the proposal of the Treasury\nDepartment on grounds of foreign policy and because it be-\nlieved the result of the proposed action would be mis-\ninterpreted in the other American recublics and would\nalienate our friends in the Argentine. The President oon-\nourred in the Department's views.\nThe\nRegraded Unclassified\n- 3 -\nThe Treasury has repeatedly renewed its proposal.\nOn October 20, 1943, Ambasandor Armour suggested that\nsince Senor Prebisch, Director of the Banoo Central, who\nhad cooperated with us, was being forced out of the Banco\nCentral, together with certain friendly officials of the\nMinistry of Finance, the Treasury Dep: rtment would be\nJustified in freezing Argentine funds.\nThe Treasury, fully supporting the views expressed\nby Ambassador Armour, maintained that the freezing of\nArgentine nesets was the natural followup to Secretary\nHull's letter to Foreign Minister Storni. It felt that a\ndramatic step by us taken at this time would orystallize\nthe opposition and perhane give Argentina a genuinely pro-\nAllied Government.\nThe Department maintained the position, contrary to\nthe views of the Treasury and of Ambassador Armour, that\nfreezing would be undesirable because:\n(1) It would not further our economic warfare to any\nmarked extent.\n(2) The political effect of the measure might or\nmight not be helpful to our immediate interests; it would,\nhowever, be considered both in Argentina and, more 10-\nportantly, in the other American republics as an abandonment\nby us of the non-intervention policy upon which, the\ninter-American system, with all its positive benefits,\nrests.\n(3) Cooperation of other American recublics as well\nas parallel British action would be desirable in the event\nthe measure were taken but seem difficult of attainment.\nThe British financial situation vis-a-vis Argentina is\nvery different from ours.\n(4) Retaliatory measures open to Argentina might\nadversely affect certain phases of our vital procurement\nprograms as well AB cause harm to other legitimate United\nStates interests in Argentina.\nThe first two of the above reasons were the real\nbasis of the Department's position.\nThe\n- 4 -\nThe President, on October 24, supported the Depart-\nment's recommendation but asked that the matter be reviewed\nevery week or 80.\nThe Treasury was BO anxious to secure the freezing\nthat on October 25, it \"leaked\" a story that this action\nwas contemplated, in the hope that this would force action.\nAlthough no very large transfers of Argentine assets\nfrom the United States to other countries took place, there\nwere transfers in considerable amounts from the accounts\nof Argentine banke with verious New York banks to the\naccount of the Central Bank of Argentina with the Federal\nReserve Bank of New York. These resulted from the calling\nin by the Central Bank, in accordance with its legal\npowers, of the dollar balances of a large number of Argentine\nbanks (i.e., dollar balance of the latter with New York\nbanks Bank.) were converted into dollar balances with the Central\nTwo of the Banks involved, the Banco de la Nacion (a\nGovernment owned) and the Banoo de la Provincia (semi-\nGovernment) were involved to the extent of 19, 500,000 in\nthe latter type of transaction. Since these banks were\ngenerally though perhaps superficially regarded 88 \"bad\nmetors\", the Treasury, with the Department's consent, on\nOctober 28, placed them on the list of specially blooked\nnationals.\nOn October 29, the President again upheld the Depart-\nment's view. The Treasury, however, continues to agitate\nwill issue although there has been a virtual drying up of\nfinancial transactions of an even remotely suspicious\ncharacter.\nIt should be recorded that the Argentine Government\n1st pursuing a policy of gradually removing to Argentina\nsome $300,000,000 in gold from the United States. By the\nend of November $7,500,000 will have moved and sailings\nhave been arranged for the further shipment of $5,000,000.\nShipments are limited by risks which will be assumed by\ninsurance companies on any one vessel and by the number of\nvessels.\nAt\nRegraded Unclassified\n- 6 -\nAt R soccial meeting of the Departmental Committee\non Political lanning held on November 9, and attended\nby Messrs. Pasvoleky, Nornbeok, Murray and Duggan, the\ncourse taken and the position adopted by the Department\nto date were assroved.\nBecom senintions.\nIt in recommended that:\n(1) No general freezing of Argentine absets and\ntransactions be undertaken at this time.\n(2) The Treasury, after agreement with the Department\nBE to procedure, institute A snecial monitoring system of\nArgentine international transactions designed to catch and\nsubject to special blooking action those international\nfinancial transactions which may be of benefit to the\nenemy. Under such a system banks would be instructed:\na. To interpose no hindrance whatever to commercial\ntransactions and transactions incident to commerce.\nb. To internose no obstacle to Argentine transactions\nwhich mercly involve transfers of funds within\nthe United States.\n0. To require evidence as to the purposes of all\nother types of transactions which means, in effect,\nArgentine international transactions of a purely\nfinance character. To facilitate rapid monitor-\ning and speedy approval of legitimate transactions,\nthe Federal Reserve Bank of New York should be\ngenerally authorized to make such examination and\ngrant such approval, and possibly later such\ngeneral authorization on at least limited classes\nof general transactions might be extended to the\nbanks thomselves.\n(5) The special blooked status of the Banoo de\nla Nacion and the Banco de la Provincia be retained but\ncommercial banks be authorized to permit all commercial\ntransactions and transactions incident to commerce.\nPhilin W. Bonsal\nLaurence Duggan\nEmilio 0. Collade\nRA:JKB:PWB; jll\nRegraded Unclassified\nA.B.Drilg.u\nNovember 6, 1943\nWT - Mr. Russell:\nRA - Mr. Bonsal:\nPA/LD - Mr. Duggan:\nA-B A-A - Dr. Mr. Berle: Acheson: I should will ague with two That if backs. Treasury But\n-\nU - Mr. Stettinius:\nit rught sittle ance, to - - be not a a Service toward mere step accept. another\n-\nArgentine Financial Control Situation\ndur wts to us a\ntang tangled\nthing\nThe situation today regarding the Argentine financial\npicture my be summarised as follows:\nalp\n(1) No have specially blocked the Banco de la\nNación and the Bance de la Provincia.\n(2) All other Argentine transactions are going\nforward.\n(3) The Secretary of the Treasury has sent a\nstrong letter to the Department requesting full\nfreezing.\n(4) A reply to the Secretary mainly taking\nthe position that the matter should await the return\nof the Secretary of State is being considered in the\nDepartment.\n(5) Ambassador Armour continues to recommend\nfreezing and has had a discussion with the Argentine\nMinister of Finance and Foreign Minister specifically\nabout the two blecked banks and also touching on the\ngeneral situation.\n(6) Although some evidence exists on both sides,\nthe case for specific blocking of the two banks in\nthe absence of any other financial controls is at\nbest not very strong.\n(7) Ambassador\nRegraded Unclassified\n(7) Ambassador Armour reports that the\nMinister of Finance has indicated that banks would\nbe willing to supply United States authorities\nwith full information regarding any operation.\nIt is net entirely clear whether this refers to\nall operations of Argentina or merely these of\nthe two blocked banks.\nI en still of the opinion that much less importance\nshould be asseribed to this Argentine freesing properal\nthan either the Treasury or - quarters of the Depart-\nnews attach to it. Novertheless, it 1a obviously decivable\nthat the issue be settled in - effective say. It to\naccordingly suggested that the following program be put\ninto effect:\n1. The special bleaking of the two banks\nbe discontimed.\n1. In view of the statement of Argantine\nMinister of Finance, the Treasury institute a\nspecial menitoring system of Argentine international\ntransactions designed to eateh and subject to special\nbleeking action these international financial teams-\nactions which may be of benefit to the enery. Under\nsuch a system banks would be instructed:\na. To interpose no hintrance statever to\ncial transactions and tounsactions incident\nto commerce.\nb. To interpace no obstasle to Argenbine true-\nactions which morely involve transfers of\nfunds within the United States.\n0. To require evidence as to the purposes of all\nother types of trensactions-which mans, in\neffect, Argentime international transactions\nof a purely finance character. to facilitate\nrapid monitoring and speedy approval of legiti-\nmis transactions, the Federal Benerve Bank of\nNew York should be generally authorized be naise\nsuch ammination and grant such approval, and\npossibly later such general authori sakies -\nat least limited classes of general transpotions\nmight be extended to the banks themselves.\nThis\nRegraded Unclassified\n-3-\nThis proposal would appear to meet the legitimate\nneeds of the various parties to the discussion. It would\nprovide for the effective control of all of these finan-\nsial transactions which the Embassy and the Treasury have\nobjected to on the grounds of economic warfare. From the\npolitical point of view it would avoid the objections of\nclassing Argentina with the European neutrals and breaking\ndown the inter-American system. At the same time, it\nwould be placing Argentina in a special categery not un-\nvarranted by Argentina's position in these matters. From\nthe Embassy's and the Treasury's point of view, this measure\nwill actually accomplish everything that the general\nfreezing accompanied by a general license would. It would\nnot have the initial psychological effect of the general\nfreeze although astute financial writers might soon detect\nthat it was net remarkably different in effect.\nEmilio G. Collado\nEA/C:EGC:ja\n218\nFred Smith\nNovember 24, 1943\nThe Secretary\nI like the approach for my tax talk. I think the one I\nlike the best is where you say that the soldier would get little\nsatisfaction out of the fact that through Congress trying to\nreduce the appropriation of the War Department, they feel that\nthey will not have to increase the taxes, and in that way leave\nthe increased debt burden for the soldier to bear when he returns\nfrom the war. I think that this is so good that it should be\nrepeated at the end and emphasized.\nThe part which is not in this speech, and which I would\nlike to have in it, if possible, 18 to show the group who will\nbe free from tax if we lift the Victory Tax from them, how much\ntaxes they now pay the federal government on their cigarettes\nand other federal taxes will be fixed as a separate section.\nI think I mentioned that yesterday. Anyway, I would like to\nhave it on the group who will be free from taxes -- I think that\nrepresents nine million people -- whatever the group is -- how\nmuch taxes will they pay in excise taxes -- federal excise taxes,\ngasoline, and 80 forth. I think this is terribly important,\nand I hope that Blough has the figure, and you can get it and\ninclude it in my talk.\nRegraded Unclassified.\n219\nFred Smith\n- 2 -\nI think the end is a little involved. I like the first\ntwo-thirds. I think that is excellent, and I'll talk to you\nabout the whole thing as soon as I get back from seeing Cordell\nHull today. Finished\nRegraded Unclassified\n220\nNovember 24, 1943\n11:00 a.m.\nTAXES\nPresent: Mr. Bell\nMr. Haas\nMr. Lindow\nMr. Blough\nMr. Tickton\nMr. Surrey\nMr. Paul\nMr. Smith\nMr. White\nMrs. Klotz\nH.M.JR: Now, where were we? Mr. Beil, would you\nreport first, please?\nMR. BELL: I haven't anything from the Budget. I\nhave been in touch with them, but they worked last night\non a statement and Wayne Coy said he thought he would have\nsomething to show me right after lunch. They are revising\ntheir estimates; they are attempting to get out a very short\nBudget summation.\nH.M.JR: By Friday?\nMR. BELL: Yes, Friday morning. And George is working\non the receipt end to see whether or not we want to revise\nthose.\nH.M.JR: Are your boys brought up to date?\nMR. PAUL: Yes, I know about that.\nH.M.JR: I think that would be most helpful. Now,\nis that all? You ride that hard. You (Bell) are going\naway tonight?\nRegraded Unclassified\n221\n- 2 -\nMR. BELL: I will be back Friday morning. I am leaving\nabout five o'clock.\nMRS. KLOTZ: No significance, really. (Laughter)\nH.M.JR: What happened?\nMRS. KLOTZ: I was sort of talking to Harry, just\nwith my eyes.\nMR. WHITE: She was laughing at 8 joke I didn't tell\nher.\nMRS. KLOTZ: It has nothing to do with this. I am\nsorry.\nH.M.JR: Blough, how are you coming along?\nMR. BLOUGH: The easiest job you asked for is done.\nWe always do the easiest ones first. That is on the sales\ntax. The income tables are rapidly approaching completion\non the first time around, and I think we will have some-\nthing for you on that. This is sales tax, here. (Mr.\nBlough handed the Secretary chart entitled \"Ten Percent\nFederal Retail Sales Tax,' copy attached.)\nH.M.JR: Exemptions?\nMR. BLOUGH: Yes.\nH.M.JR: If you put a ten percent tax--\nMR. BLOUGH: Here we have a ten percent retail sales\ntax. The total yield on the estimates now available would\nbe six point three billion, two point four billion is food;\nthat would bring your total down to three point nine billion,\nshown on the left, accumulative totals. If medicine were\nbringing the total down to three point seven. If clothing\nexempt it would be another two hundred million dollars,\nwere exempt, it would bring it down another one billion one\nhundred million dollars, leaving two point six.\nRegraded Unclassified\n222\n- 3 -\nThen there is a lot of stuff, principally liquor and\ntobacco, already taxed under excise taxes, which can be\nchanged any way you may want to change them; the Congress\nway want to, and therefore not need a sales tax.\nIf those were exempt you would have one point two\nbillion dollars off, leaving one point four billion dollars.\nThat includes everything else. We could break it down still\nfurther, but it seemed more effective not to - household\nfurniture, business equipment subject to tax, certain\nservices, and so forth, are in the one point four.\nH.M.JR: Has this ever been gotten out this way?\nMR. BLOUGH: We have never charted it this way, no.\nH.M.JR: It is good.\nMR. PAUL: This raised the basic point. I think it\nis a good chart, although it is a pretty simple thing to\nget across, but there is 8. basic point: Why do you want\nto talk about the sales tax?\nH.M.JR: Oh, we have to.\nMR. PAUL: I don't know. I certainly don't think you\nhave to. The question is whether you should.\nH.M.JR: They are going to bring it up.\nMR. BELL: Senator George said if the Treasury wanted\nany more taxes they would have to figure the sales tax.\nMR. PAUL: A lot of people have said that.\nH.M.JR: I had Robertson in here yesterday. He said,\n\"The one thing, Mr. Morgenthau, you have got to be pre-\npared to answer is the question on sales taxes. You have\njust got to be prepared.\"\nRegraded Unclassified\n223\n- 4 -\nMR. PAUL: I agree that you have to be prepared. That\nisn't my point at all. My point is whether you talk about\nit in your statement.\nH.M.JR: I think so. I don't see how you can avoid\ntalking about it.\nMR. WHITE: What is the harm in talking about it if\nyou take the position that the yield will be very small\nunless you include items which are completely unjustified?\nMR. PAUL: Well, I don't think there is a very strong\nmovement for the sales tax, and you make a big issue out\nof something that may be reasonably dead.\nH.M.JR: I differ; if you read these editorials in\nthe papers--\nMR. PAUL: I am not going by them. They have had the\nsame editorials for two or three years.\nH.M.JR: Gaston has seen the success of these important\ncolumnists, and they all bring up the sales tax, every one.\nMR. PAUL: Sure they do, but--\nH.M.JR: Anyway, I don't think it has been answered;\nI don't think we have given a good answer. I will put it\nthis way, that the answer hasn't had a good play in the new\npapers. I feel that I have got to be prepared to answer\nit, and I would like to throw this into their teeth.\nMR. BELL: I think the impression has gone out that a\nten percent sales tax will finance this war, and you will\nget all kinds of money. I think that is unfortunate.\nMR. PAUL: If you are going to talk about the sales\ntax, then let's talk about it all along the line, not just\nthe question of the revenue from it. There are a lot of\nother very important arguments against it.\nRegraded Unclassified\n224\n- 5 -\nH.M.JR: I would like to have them because what's\nhis name - Robertson - was pushing me as to the advantages\nof the sales tax against other methods of revenue; I ran\nout of arguments. The thing that I want somebody to answer\nfor me is, when you exempt all these other things, what\nis left? Why is the sales tax any worse than excise taxes?\nMR. BLOUGH: That throws it over into the Administra-\ntive field. It is worse because you set up a brand new\nset of machinery with millions of new customers that you\nhave to deal with to get a little more money, when the\npresent excise tax is, well, organized - already adminis-\ntered - and with & relatively small number of persons or\ntaxpayers, could yield about the same amount of money.\nH.M.JR: What I would like to do Saturday morning is\nto have a seminar on the sales tax. Somebody in the shop\ncould have thought of being the devil's advocate for it, and\nthen see the answers that develop. I haven't read about\nthis very extensively. I would like to spend a couple of\nhours on it Saturday morning.\nMR. PAUL: That is fine. If you are going to talk\nabout it, we have got to talk about it on all fronts,\nthe inflationary front - the fact that it is definitely\ninflationary.\nMR. WHITE: I think that is full of dynamite.\nMR. PAUL: Because he didn't know what he was talking\nabout. You don't get in a mess if you know your arguments.\nH.M.JR: I don't want to spend 8 lot of time on this\nthing, but I don't see why B. sales tax on these articles\nis any more inflationary than if you--\nMR. PAUL: Decause the sales tax hits the things that\nare in the cost of living index; whereas the excises are\ncarefully selected from articles that aren't.\nH.M.JR: None of the excises?\nRegraded Unclassified\n225\n- 6 -\nMR. PAUL: Practically none of them, to any extent.\nH.M.JR: The fellow at & thousand dollars 8. year\ndoesn't know what an index is. All he knows is that he\nis out of pocket. I want somebody to explain to me why\nthe increase which is all passed on to consumers in excise\ntaxes is less inflationary than 8 sales tax?\nMR. BLOUGH: I would say that aside from, say, house-\nhold furniture, which is very widely purchased as 8. family\nnecessity - there may be one or two other things. - the\nchances are that \"All other\" would not be particularly more\ninflationary than the excise; I think it would be somewhat\nmore. But it is the food, clothing, medicine, those things,\nthat enter into the price index and enter into Mr. Common-\nman's every-day cost of living that make the trouble.\nMR. PAUL: And upon which all our wage stabilization\nis based - fifteen percent formula.\nMR. HAAS: Henderson claimed it would break the ceilings\nif you added on; you would have to revise the ceiling.\nMR. PAUL: That is because of increased wages.\nH.M.JR: I an going to be from Missouri on this thing.\nI would like to spend Saturday morning on the thing. I\nam repeating myself; why a ten percent tax on \"All others\"\nis inflationary, and an increase of fifty or twenty-five\npercent on railroad travel and telephone calls - all the\nthings which go into our pocket expenses - is not inflation-\nary?\nMR. BLOUGH: I don't think you will get an answer\nthere. But the whole point on the \"All others\" is that to\nget a billion four hundred million dollars, you have really\ntremendous addition to your administrative job, and query,\nis it worth it?\nH.M.JR: What we have got to decide - it will take 8.\nspent a couple of hours on it - we have got to decide what\ncouple of hours for me to get it, because I have never\nwe are going to do.\nRegraded Unclassified\n226\n- 7 -\nWe are going to say, \"All right, here is the bill,\"\nand argue against it because of the increase of costs to\nthe Government and to the taxpayer, or because it is in-\nflationary, but I don't know that the two things--\nMR. BLOUGH: For the \"all other,\" the inflationary is\nprobably a minimum argument; for food and clothing, I\nthink it is a very important argument.\nH.M.JR: I can see that. I read your (Smith's) talk.\nThe approach is this, and we will argue about it: \"Now,\nlook, gentlemen, everybody is talking about the ten percent\ntax - sales tax. I am confident you don't want to put it\non food or on medicine; I am sure you don't want to put it\non clothing. When it comes to collecting on excises, we can\ndo it so much cheaper that way. I am sure you people are\nas interested as I am in economy. We don't want to have\na duplication there. So it gets down to a billion four.\nNow, in the case of a billion four, what is it going to cost\nus to set up entirely new machinery and a new organization?\nIsn't it much better, rather than to start something entirely\nnew, to take the Treasury's recommendation on increase in\nexcises?\"\nLet's do it on that basis. Who would differ with me?\nMR. HAAS: I would add annoyance to the taxpayer,\nalong with increased cost to the Treasury.\nH.M.JR: Think about it. Let's have the sales tax\nstudy Saturday morning. I would like to get soaked up\nwith it. After Robertson went after me, I went flat.\nMR. BLOUGH: Is this the Congressman?\nH.M.JR: P.M. He is certainly a friend.\nI haven't had time to expose myself to all these\ncolumnists, but Gaston is doing it. He has seen one or two\na day. When he got through with walter Lipomann, Lippmann\nsaid ne was against the sales tax. ne has seen Ernest\nLindley; he is going to see may Clapper and about half 8.\ndozen of the more important.\nRegraded Unclassified\n227\n- 8 -\nMR. BLOUGH: I want to revise what I said about the\ninflationary aspects of \"all other.\" There is in the\n\"all other\" an important part of business supplies and\nequipment, and things like that, which are impossible\nto exempt, because the items are things that people buy\npersonally and also for business purposes. That will add\nto the cost of doing business. And that will have a\ndirectly inflationary influence. The other items in \"all\nother\"\nMr. PAUL: Also be inflationary on the \"all other\" by\nreason of stimulating wage demands.\nMR. WHITE: That is the important thing. Labor will\nregard a sales tax on this \"all other\" as a sales tax.\nThey will say, \"We are paying a ten percent tax on most of\nthe things we buy.\" And you can't counter by saying,\n\"Well, you are leaving some things out. You are not pay-\nmost of the things we are buying. It is increasing the cost\ning it on food. They will say, \"We are paying it on\nof living.\" They won't pay any attention to the figures.\nWhereas, if you have excise taxes you could take the\nsame amount of money away from them out of excise taxes,\nthough you are not, but even if you did, you could say,\n\"This is not a sales tax; it is a tax on fur coats and other\nthings you don't need.\" And it doesn't give them the most\npowerful weapon for increased demand for wages.\nMR. BELL: How about income taxes of the same. Would\nthey argue the same way?\nMR. WHITE: No.\nMR. PAUL: You can't argue the same way because there\nare wage formulae increases.\nMR. BELL: Yes, but they have the same amount of money\nwhen they get through.\nmuch money to buy food; she goes out and she has her fifteen\nMR. HAAS: But Lubin says that the wife is given so\ndollars, and it doesn't stretch as far.\nRegraded Unclassified\n228\n- 9 -\nMR. BELL: I don't see why the taxes have to be in the\ncost of living index. Why shouldn't the price of the\narticle be taxed?\nMR. PAUL: That would be all right if we were starting\nall over again with all our gearing of wage stabilization\nto tax.\nMR. BELL: I think it is a poor argument before a\nCongressional committee to say you can't have a sales tax\nbecause sales taxes are included in your cost of living\nindex, and your cost of living increases.\nMR. WHITE: It is not that it is included in the cost\nof living index; the important thing is that in the mind of\nlabor he is paying more for those goods and he is going to\nsay that because he is paying more, he needs higher income.\nYou are running against tradition, against the customary\nway of treating this matter, and you can get the same amount\nof money away from income tax and they would be much less\npotent arguments than there would be in the sales tax.\nThat is an additional reason.\nH.M.JR: I will work on this thing Saturday morning.\nNow, look, the one thing that I would like very much, and\nI hope to have it by Saturday, whatever the group is that\nwe are going to exempt from any taxes - whether it is the\nthousand dollars, or whatever the group is - I don't know\nwhere it starts, I have asked, now, a couple of times--\nMR. BLOUGH: It is in the works.\nH.M.JR:\nwhat these people now pay in Federal taxes\nNow, I am going down tonight to spend some time with Henry.\nI will be back late Friday night. Could you, Paul, and\nyour people, spend quite a lot of time with Smith and Gaston\ntrying to go over this?\nMR. PAUL: We have got to spend a lot of time with them\nbecause, as far as I am concerned, I disagree with some of\nthese approaches. I am not sure Fred is wholly sold on\nsome of them himself.\nRegraded Unclassified\n229\n- 10 -\nH.M.JR: We will know a little bit more later. But\nI thought if >mith, Gaston, Blough, anybody in the 10 om -\nlet me put it the other way around; I am going to ask Smith\nto see as many of you as possible and get ideas so that\nwhen he sees me Saturday morning he will have a revised\ndraft; he can say, after seeing you, \"I still think you\nshould say this, but the following people don't want you\nto say it.\" You can do it that way. But, Fred, if you\ndon't mind - I mean, we are closing the office Thursday\nat one o'clock, so we don't expect you to work Thursday\nafternoon. Has that gotten around? White, has it reached\nyour office?\nMR. WHITE: No.\nH.M.JR: How does it come?\nMR. BELL: By telephone.\nMR. HAAS: I think maybe they got some administrative\nassistants of yours, Harry.\nH.M.JR: Has it gotten to you that we are closing\nThursday at one o'clock?\nMR. GASTON: Yes, we are very alert on such matters.\n(Laughter)\nH.M.JR: Alert and allergic. (Laughter)\nMR. BELL: Always watching for them.\nH.M.JR: Herbert, I told Smith to see as many of you\nas possible between now and Saturday. I want a draft of\nmy tax talk, and if you would give as much time to Smith\nas you can--\nMR. GASTON: Yes.\nH.M.JR: Now, whomdid you see this morning?\nMr. GASTON: Ray Clapper.\nRegraded Unclassified\n230\n- 11 -\nH.M.JR: Would you give us the benefit?\nMR. GASTON: I had a very nice talk with Ray Clapper.\nIt is necessary to explain the background of what we are\nthinking and doing. His conclusion was that - just as\nWalter Lippmann's - that we got a bad press principally\nbecause we didn't explain carefully enough the omission\nof the nine million people. It was news to him that not-\nwithstanding dropping the nine million, we were still\nadding about three billion six hundred million in taxes\nto the group under five thousand dollars, and that, to\nhim, was & very striking fact.\nHe thinks that by all means we should stand by our\nguns for drastic additional taxation; that there is begin-\nning to be quite 8 swing of sentiment in our direction,\nparticularly in the newspapers; and that it would be & good\nidea to get such authoritative help as we can. He mentioned\nMarriner Eccles. He also mentioned Dan Bell as being 8\ngood man to talk about the financial picture; that the\nfellows up there had 8 lot of respect for his judgment and\nhis knowledge. Fred Vinson he was a little in doubt about\nbecause I think Fred is in a little bit wrong up there now,\nand he doesn't know how helpful Fred would be to us.\nH.M.JR: Were you here when I talked to Vinson yesterday?\nMR. GASTON: Yes.\nH.M.JR: Have you (Paul) heard about that conversation?\nMR. PAUL: No.\nH.M.JR: I invited Fred Vinson to go up to lunch.\nMR. PAUL: I didn't hear that.\nH.M.JR: I invited Vinson to go along, but he was too\nbusy. Then he said, \"If I get up there I am afraid they\nare going to talk to me about coal. I don't think I want\nto go up on the Hill.\" If Vinson and Byrnes had only\nRegraded Unclassified\n231\n- 12 -\nleft us alone! Now neither of them will have anything\nto do with it. But we will keep Vinson informed just\nthe same.\nMR. GASTON: ne thought we should have some explanation\nof the theoretical nature of these so-called savings, such\nas this War Department thirteen tillion which he says has\ncaused B. great deal of confusion.\nMK PAUL: Have you seen Lippmann yet?\nM. GASTON : Yes.\nMR. PAUL: I was supposed to see him. He broke a\ncouple of dates.\nMR. GASTON: He thinks the argument is very good, that\nsavings don't relieve us of the necessity or moral obliga-\ntion to have your taxes.\nH.M.JR: I think it is very helpful, Herbert. I hope\nI am not taking up too much of your time.\nMR. GASTON: No, I enjoy them.\nH.M.JR: Are you going to see the others?\nMR. GASTON: I am having lunch with Walker Stone today.\nH.M.JR: Fine. And I have just thrown a couple at\nyou. Could you take Dave Lawrence?\nMR. GASTON: Sure.\nH.M.JR: You have seen Lippmann, Ernest Lindley,\nWalker Stone, and you will see Dave Lawrence and--\nMR. GASTON: I have seen three; Lippmann, Lindley, and\nClapper. I will see Stone at lunch.\nH.M.JR: Who else is there around here? Do you want\nto see Pearson?\nRegraded Unclassified\n232\n- 13 -\nMR. PAUL: I don't think you have to see Pearson on\nthat.\nH.M.JR: Wouldn't do any harm. I have seen Robertson.\nYou called him up, too, didn't you?\nMR. BLOUGH: I have not done that yet, Mr. Secretary.\nI have tried to reach him but I couldn't.\nMR. GASTON: Of course, they are in our corner, anyway,\nbut I might see Pete Brandt or Charlie Ross.\nH.M.JR: When those fellows get together they do talk\nthings over.\nMR. WHITE: How about D. Thompson.\nH.M.JR: I don't think she is in Washington.\nMR. PAUL: It might be worth while to go to New York.\nH.M.JR: I am afraid we won't have time.\nMR. PAUL: There are a lot of people up there to see.\nMR. BELL: These people that you have seen, Herbert,\ndon't get hardly outside of the metropolitan papers, do\nthey?\nH.M.JR: Oh, yes. Clapper is on the air every night.\nMR. GASTON: Every one is syndicated.\nH.M.JR: Lindley is on the air. The little papers -\nyou would be surprised - carry these people. And they are\nall on the air.\nMR. BELL: I was thinking about the little papers out\nin my section of the world. I never see Ciapper, Lindley,\nor Lippmann quoted, but I see Ray Tucker and this fellow\nT.J. Meehan, from New York, and one or two others not so\nprominent. But I never see these fellows, Clapper and\nLindley. Maybe the little papers carry them, I don't know.\nRegraded Unclassified\n233\n- 14 -\nH.M.JR: Well--\nMr. GASTON: I will get ahold of Ray Tucker. Of\ncourse, his stuff is more on the gossip side.\nMR. PAUL: Fulton Lewis would be the one.\nH.M.JR: Anyway, I think, Fred, you are off to & good\nstart. I think we will know a little bit more by noon. I\nam saving all of Saturday and Sunday to work, and I am\nhoping we don't have to go up Monday.\nMR. SURREY: They are scheduling it for Monday.\nH.M.JR: I don't think the bill will get through in\nthe House.\nMR. SURRY: Only have two days for debate and vote.\nH.M.JR: They are scheduling me and Paul?\nMR. SURREY: If you are to be the first witness,\nwhich I presume you want to be, they would schedule it\nfor the 29th.\nMR. PAUL: If you wanted it Tuesday, I think you could\nget it Tuesday, but you ought to speak about it now.\nMR. BLOUGH: They are setting a time-table to try\nto get it to the President's desk on the 18th.\nMR. SURREY: That raises a question that you might\nwant to explore. Assuming any good is to come from all Senate this,\nwants to raise the money. Senator George had the idea is\nit would delay the consideration in the Senate if the of\npressing through this bill next week. Assuming there the\nto be increase in taxes, it is going to delay don't con-\nsideration any of the Senate, and I am not so sure - I\ndesk by the end of the year. They may throw that back\nsee quite, now, why the bill has to be on the President's at\nyou today.\nRegraded Unclassified\n234\n- 15 -\nH.M.JR: I am just going to say this, that if they want\nme Monday, I want to be there Monday. That is due to the\nWar Bonds - getting out the thing on time - and if I delay\nit any it just means that Smith and I will work that much\nslower. If we know that we have to get it out Sunday\nnight, we will get it out Sunday night.\nMR. SMITH: I guess it is 80.\nMR. SURREY: They have scheduled you for Monday\nmorning.\nH.M.JR: We will be there.\nMR. PAUL: I have been working on a simplification\nstatement, the corporate taxes and the various technical--\nH.M.JR: But all of you, please, who are here, keep\nyourselves free for Saturday and Sunday for me, will you?\nSo I can have all of you Saturday and Sunday. Monday night\nwe can all get drunk. I will supply the liquor. (Laughter)\nRegraded Unclassified\n235\nTEN PERCENT FEDERAL RETAIL SALES TAX\n(Dollar figures are in billions)\nCumulative\nTotals\n$6.3\nFood.\n$2.4\n3.9\nMedicine\n0.2\n3.7\nClothing\nI.I\n2.6\nTaxed under\nexcises\n1.2\n1.4\nAll other\n1.4\nTotal yield\n$6.3\n* Excludes a small amount of food and clothing now subject to excises.\nOffice of the Secretary of the Treasury\nB-472\nDivision of Tax Research\nRegraded Unclassified\n236\nNovember 24, 1943\n11:55 a.m.\nDan\nBell:\nHello.\nHMJr:\nHello.\nB:\nHello.\nHMJr:\nDan.\nB:\nYes, sir.\nHMJr:\nI'm sending you in a letter from Mr. Stimson.\nI asked the President of the United States whether\nhe would write somebody in which he would say that\nwe could send civilians overseas to stimulate War\nBonds. You know?\nB:\nUh huh.\nHMJr:\nAnd I asked the President twice. I never heard\nfrom him but evidently he did write to Stimson.\nNow, Stimson comes back and gives me the reasons\nwhy I shouldn't do it.\nB:\nUh huh.\nHMJr:\nRather he -- I also sent you a letter -- he wanted\nto have cash sales of War Bonds.\nB:\nYep.\nHMJr:\nNow, sometime next week, when we get the tax thing\nout of the way, let's you and I and Ted Gamble and\nFred Smith who followed the thing overseas for us,\nget together on it. You see?\nB:\nAll right.\nHMJr:\nBut schedule a meeting after my appearance on the\nHill.\nB:\nAll right. He -- in the other letter, you know --\nhe wanted to create agents over there.\nHMJr:\nWell\nB:\nIn the Army, to stimulate\nRegraded Unclassified\n237\n- 2 -\nHMJr:\nWell, couldn't we -- -- couldn't we put the two\nletters together and consider them?\nB:\nYeah.\nHMJr:\nThere's no great sweat is there?\nB:\nNope.\nHMJr:\nThank you.\nB:\nNot at all. Okay.\nRegraded Unclassified\n238\nOn Wednesday, November 24, 1943, the Secretary had lunch\nat the office of Ed Halsey, Secretary of the Senate. The\nDemocratic members of the Senate Banking Committee were in-\nvited, and all who were in town and available came. The\nSecretary was accompanied by D. W. Bell, Randolph Paul, and\nFred Smith.\nThe purpose of the meeting was to discuss whether in the\nestimation of the Committee, the Secretary should renew his\ndemands for 10.5 billion dollars.\nThe tenor of the meeting was very pleasant and friendly.\nThe Senators seemed to appreciate the fact that the Secretary\nhad called them together to discuss his presentation before\nmaking it.\nThe first thing that the Secretary wanted to clear up\nwas the misunderstanding about the 13 billion dollars, sup-\nposedly to be saved by the Army, and to which some reports\nhad added an extra 5 billion dollars for the Navy. This was\nexplained in full by Dan Bell, and the Senators expressed a\ngreat deal of surprise. Senator Clark said: \"They not only\ntook the people in on that one, they took us too. I was con-\nvinced that we had that 13 billion dollars in our kicks right\nnow.\"\nThere was some discussion about the value of the inflation\nappeal. It seemed to be generally agreed that people did not\nbelieve in inflation, and it seemed rather evident that the\nRegraded Unclassified\n239\n- 2 -\nSenators viewed the whole inflation prospect with 8. certain\namount of doubt and skepticism. Barkley wanted to know how\nmuch of the bill was for taxes, and how much for inflation,\nsuggesting that we would have much less trouble raising money\nfor taxation than for inflation control.\nWhen the subject got around to 10.5 billion dollars, there\nwas no disagreement about whether or not the Treasury should\nagain ask for this amount. Everyone agreed that the Treasury\nshould stand on its recommendation, and Chairman George\nsuggested that the Treasury come up to the Senate with as\nstrong a case as it could possibly develop.\nThe Senators were pretty generally agreed that we would\nnot get the 10.5 billion, nor even 8. large part of it. Chairman\nGeorge explained that there were many mechanical difficulties\nin the way of the Senate's greatly changing the House Bill.\nHe pointed out that the votes in the House had been made\npublic, and that there was no likelihood of Congressmen\nchanging their minds under those circumstances. He said that\na great change in the House Bill by the Senate would put these\ntwo legislative bodies into conflict, and as 8. result no tax\nbill could be passed until next Spring. He also said that in\nthe interim, we would be losing the excise taxes.\nIt was then suggested that the excise taxes be levied in\nRegraded Unclassified\n240\n- 3 -\na separate bill, and George said he would consider discussing\nit with the House, but he didn't think there was much use.\nSenator Clark then repeated these sentiments, saying that he\nhad tried to do the same thing before and that \"Congress wants\nto see the whole bill, not pieces of it.\"\nThere was some discussion about whether or not the sales\ntax should be mentioned in the Secretary's message. Byrd and\nGeorge said that it ought to be mentioned, and a stand should\nbe taken one way or another, or Vandenburg might interrupt\nthe Secretary before he had finished reading.\nGeorge then said that he didn't believe a sales tax could\nbe enacted anyway. He said that if the Administration would\nactively help promote it, they might get it through the\nCommittee, and possibly through the Senate, although it was\ndoubtful. Then he said: \"But even with the Administration's\nhelp, I am sure we couldn't get it through the House. They\nhave voted it down and it is done for there.\"\nBefore the meeting broke up, the Secretary was asked how\nhe felt about the war after having made a trip to the Front,\nand he explained why he thought that it would be a long, hard\nwar if we had to win it by fighting, rather than by a collapse\nof the German Nation.\nRegraded Unclassified\n241\nNovember 24, 1943\nMr. Gaston\nThe Secretary\nIf you think well of it, I wish you would send for Walker\nStone who writes tax editorials for Scripps-Howard, and have a\ntalk with him between now and Saturday noon -- only if you think\nwell of it. I know that Johnny Hanes used to consult him a lot,\nand I think he might be flattered. I don't mean Johnny Hanes,\nbut Walker Stone. - 0 Kay-\nRegraded Unclassified\n242\nNovember 24, 1943\n3:45 p.m.\nHerbert\nGaston:\nYes.\nHMJr:\nWhat luck did you have at lunch today?\nG:\nOh, I had a good time.\nHMJr:\nYes?\nG:\nUh -- uh -- Walker Stone -- uh -- the substance\nof it 18 -- the main thing is he's in favor of --\nof additional heavy taxation. He thinks that you\nought to -- uh -- give the arguments for additional\ntaxation and -- without specifying and let the\nSenate write its own ticket.\nHMJr:\nWell, that's the plan.\nG:\nHe thinks that, as he said in an editorial about\nthe time you went up before Ways and Means Committee\nor just after that, that -- that we're two years\nlate, that we ought to have had a very drastic\nplan right after Pearl Harbor when the climate was\nmore favorable for it and should have stuck to it.\nHMJr:\nYeah.\nG:\nAnd I endeavored to convince him that we did the\nbest we could at that time.\nHMJr:\nYeah.\nG:\nHe's normally against the sales tax but thinks the\nsales tax is the right thing in the present situation\nand I had some argument with him on that point and he\nfinally said, \"Well, selective excise taxes, if there\nwere enough of them and they were heavy enough, would\nbe the right thing.\" And which I said was good sense.\nAnd he said that such a meal as we were eating then,\nwe ought to have to pay a heavy tax on it. And I\nagreed with that. He'd like to tax the night clubs\nheavily.\nHMJr:\nWell, I think all this you're doing is most useful.\nG:\nUh\nRegraded Unclassified\n243\n- 2 -\nHMJr:\nI want Fred Smith to tell you about my luncheon.\nG:\nYes.\nHMJr:\nI came away with the best feeling I've ever had\nwhen I've been on the Hill.\nG:\nOh, that's just swell. That's grand.\nHMJr:\nThe best -- it's been the best meeting I've had\nin ten years.\nG:\nWhy, that -- that's grand.\nHMJr:\nI never came back off the Hill with such a nice\nfeeling.\nG:\nWell, that's fine. I -- I was a little nervous\nabout it.\nHMJr:\nWell, everyone but one of the Democrats -- there\nwere eleven Democratic members - there was only\none missing.\nG:\nYeah. Uh huh.\nHMJr:\nSo, it was a -- really very good.\nG:\nThat's grand.\nHMJr:\nHave a nice Thanksgiving.\nG:\nWell, thanks very much. And I have a date to\nsee Dave Lawrence on Friday. He's also going to\ntake me to lunch. He's going to take me to the\nMetropolitan Club.\nHMJr:\nOh, wonderful.\nG:\nQuite.\nHMJr:\nDidn't you have to pay for the lunch today?\nG:\n(Laughs) Scripps-Howard insisted on paying for it.\nHMJr:\nWonderful.\nG:\nYeah.\nRegraded Unclassified\n244\n- 3 -\nHMJr:\nWell, that's all right.\nG:\nWalker said it was going to -- that Roy Howard was\ngoing to pay for it and, \"Well,\" I said, \"as long as it's\nRoy Howard and not Walker Stone, that's all right with\nme.\"\nHMJr:\n(Laughs) All right. Okay.\nG:\nAll right.\nRegraded Unclassified\n245\nAA\nNovember 24, 1943.\nMEMORANDUM\nvr\nTO: Secretary Morgenthau\nFROM: Mr. Gaston\nI talked to Ray Clapper this morning, as I previously\nreported, and had lunch with Walker Stone.\nClapper is much more in sympathy with our program\nthan Stone and not critical. He is strongly in favor of\nour sticking to our guns on the broad ground of much more\ndrastic taxation and would stress the need for additional\ntaxation both from & budgetary standpoint.and that of in-\nflation with a minimum of emphasis before the Senate on\ndetails of the program. He thought we got a bad press on\nthe original proposals to the Ways and Means Committee not\nonly on account of the bad state of our relations with the\nCommittee but also on account of the manner in which the\nexemption of nine million taxpayers was played. It was a\nsurprise to him to be told that our proposals envisaged an\nincrease of $3,600,000,000 of taxes in the brackets below\n$5,000. He thought we ought to make every effort to pre-\nsent 8. united front before the Committee, that Dan Bell's\ntestimony about the budgetary position, principally to\ncorrect misunderstandings with regard to Army and Navy\n\"surrendering\" of appropriations, would be highly valuable\nsince all the committees in Congress had great respect for\nDan. He also thought that Marriner Eccles could be helpful\nif we could keep him from going off on 8. tangent, but he\nhad some doubts of the usefulness of Fred Vinson in view of\nFred's other troubles with the Congress.\nWalker Stone, with whom I went to lunch, talked freely\nabout a great many aspects of Federal finance. He thought,\nas he wrote in an editorial published on October 5, that the\nTreasury was \"twenty-two months late\" and that we should have\npresented right after Pearl Harbor an extremely drastic pro-\ngram of taxation on which we could have stood for the re-\nmainder of the war. He is in favor of heavier taxation at\nRegraded Unclassified\n246\n- 2 -\nthe present time nevertheless and would like to see you\nargue generally the need for higher taxes and leave it to\nthe Senate Committee to write their own ticket. He is\nagainst sales taxes as a general proposition and reminded\nme that he had written editorials in the past opposing\nsales taxes, but he thinks they are better adapted now to\nchecking excess spending than income taxes. I argued\nwith him some on this point and he eventually agreed that\na stiff and broad program of luxury excise taxes of 8.\nselected character might be better than a sales tax. As\nan instance he suggested heavy taxes on such meals as we\nwere eating at the moment (at the Carlton, for which he\nsaid Scripps Howard would pay). He also said the night\nclub tax ought to be heavy. He thinks our manner of\nfiguring excess profits tax on corporations before instead\nof after normal tax is unfair, or at least creates a wrong\nimpression as to the source of the revenue. He said if\nwe really wanted to maintain the system of private enter-\nprise we ought to allow business to accumulate reserves.\nI told him that reminded me of Johnnie Hanes' thesis, but\nsince invested capital was in the ratio of $635 for every\nman employed (at the time Johnnie was here) all we needed\nto do to promote employment was to let business retain an\nadditional $635 for each unemployed man and then the whole\npopulation would be put to work. Walker agreed that that\nwas an absurdity and that demand for goods had to come\nbefore investment. He thought the Treasury had been fickle\nin its tax recommendations and had thus lost the confidence\nof Congress. I told him I thought our record was pretty\ngood and that there were much different causes for the\npresent disagreement, including politics, to which he person-\nally agreed. We discussed other matters, including work\nrelief and pump priming, and he invited me facetiously to\ncall him up any time I wanted advice.\nI have an appointment with Dave Lawrence for Friday.\nRegraded Unclassified\n247\nADD TAXES\nHE HOUSE TENTATIVELY APPROVED A $2,140,000,000 REVENUE BILL WHICH\nWOULD BOOST EXCISE TAXES ON TWO-SCORE OF ITEMS INCLUDING LIQUOR,\nJEWELRY AND TRANSPORTATION TICKETS. A FINAL VOTE WAS EXPECTED SHORLY,\nWITH PASSAGE ASSURED.\n11/24--SB519P\nADD TAXES\nTHE HOUSE APPROVED THE MEASURE WHILE SITTING IN THE TECHNICAL\nCAPACITY OF \"COMMITTEE OF THE WHOLE HOUSE ON THE STATE OF THE UNION.\"\nTHAT ACTION MUST BE RATIFIED, HOWEVER, WHEN THE CHAMBER REVERTS TO IS\nSTATUS OF THE HOUSE OF REPRESENTATIVES--A STEP EXPECTED TO FOLLOW\nALMOST IMMEDIATELY.,\nTHE ACTION CAME-AFTER LESS THAN A DAY OF LISTLESS DEBATE DURING WHICH\nDEMOCRATIC AND REPUBLICAN LEADERS OF THE TAX-MAKING NOUSE WAYS AND MEANS\nCOMMITTEE DEFENDED THEIR REJECTION OF THE $10,500,000,000 REVENUE\nPROGRAMS PROPOSED BY THE ADMINISTRATION ON GROUNDS IT WOULD HAVE BEEN\nRUINOUS TO MIDDLE-CLASS, WHITE-COLLAR WORKERS, MOST OF THAT PROGRAM\nWOULD HAVE BEEN EFFECTUATED THROUGH SHARP INDIVIDUAL INCOME TAX\nINCREASES.\nTHE BILL RECOMMENDED BY THE COMMITTEE AND PASSED BY THE HOUSE WOULD\nRAISE A RELATIVELY-INSIGNIFICANT $154,000,000 ADDITIONAL REVENUE FROM\nINDIVIDUAL INCOME LEVIES BY INTEGRATING THE PRESENT VICTORY TAX WITH\nNORMAL RATES AND SETTING THOSE RATES AT SUCH LEVELS THAT MOST TAXPAYERS\nVOLD OWE SLIGHTLY MORE THAN UNDER PRESENT LAW.\nTHE BILL ALSO WOULD RAISE AN ADDITIONAL $616,000,000 BY INCREASING\nCORPORATE EXCESS PROFITS TAX FROM 90 TO 95 PER CENT AND BY MAKING OTHER\nMINOR CHANGES IN THE CORPORATE TAX STRUCTURE.\n11/24--SB523P\nADD TAXES\nTHE BULK OF NEW REVENUE, HOWEVER, WOULD COME FROM BOOSTS IN SOME\nTWO-SCORE EXCISE TAXES AND FROM VARIOUS INCREASES IN POSTAGE RATES.\nTHE WHISKY TAX WOULD 60 FROM $6 PER 100-PROOF GALLON TO $9; THE EXCISE\nON JEWELRY FROM 10 TO 20 PER CENT, AND THE CARBARET TAX FROM-PAVE TO\n30 PER CENT OF THE CHARGES.\nEXCISES ON BEER, WINE, ELECTRIC LIGHT BULBS, LUGGAGE, FURS, TOILET\nPREPARATIONS, TELEPHONE AND TELEGRAPH SERVICES, TRANSPORTATION,\nADMISSIONS, CLUB DUES, BOWLING ALLEYS AND BILLIARD PARLORS WOULD BE\nINCREASED, WHILE MERETOFORE-EXEMPT HANDBAGS, WALLETS AND PARI-MUTUEL\nVAGERS WOULD BE SUBJECTED TO NEW EXCISE LEVIES.\nTHE RATE FOR FIRST CLASS LOCAL MAIL WOULD BE JUMPED FROM TWO TO\nTHREE CENTS AN OUNCE, WHILE FEES FOR AIR MAIL, THIRD CLASS MAIL, MONEY\nORDERS, REGISTERED MAIL, INSURED MAIL AND COD MAIL WOULD BE INCREASED.\n11/24--5B525P\nADD TAXES\nTHE NOUSE PASSED AND SENT TO THE SENATE A $2,140,000,000 REVENUE\nBILL WHICH WOULD BOOST EXCISE TAXES ON SOME TWO-SCORE ITEMS\nIN AUDING LIQUOR, JEWELRY AND TRANSPORTATION TICKETS. THE VOTE WAS\n200 TO 27.\n11/24--SB552P\nRegraded Unclassified\n248\nDigest of\nCongressional Record\nfor\nNovember 24, 1943\nThe Tax Bill. The tax bill, as reported by the House\nWays and Means Committee, was adopted without floor amend-\nments by a teller vote of 200 to 27.\nDuring the debate, Representative Fish charged that\n\"The original proposal emanating from the\nSecretary of the Treasury, Henry Morgenthau, Jr.,\n« if it had been carried out instead of be-\ning repudiated # # * would have put us on a level\nwith the Communists and might have even out-\ncommunized the Communists. 71\nRepresentative Fish, at another point, asserted that\n\"The public was never fully informed of the\nabomination of desolation recommended by Secre-\ntary Morgenthau. Previously, the attempt to\nlimit salaries to $25,000 was squelched by\nCongress and by the American press as an attempt\nto interfere with private initiative and free\nenterprise. However, the original tax proposal\nof Secretary Morgenthau at the hearings on the\npresent bill was incomparably more drastic and\nrevolutionary and actually limited net salaries\nand incomes to $10,000.\"\nAnd at another point -\n\"The recommendations of the Secretary of the\nTreasury would also have tended to liquidate the\nmiddle class, the farmers, the home owners, and\nsmall business and professional men and women,\nand also would have added greatly to the burden\nof the wage earners which would have caused\nsevere hardship in every American home.\"\nRegraded Unclassified\n249\n- 2 -\nAnswering Fish, Representative McCormack made it clear\nthat the Secretary of the Treasury never proposed a $10,000\nlimitation on net salaries. He also said that \"We hear\nSecretary Morgenthau called a Socialist and 8 Communist for\nsubmitting some proposal and a lot of other pet names\" and\nasserted that this Socialist-Communist name-calling is \"an\nindication of defeatism and inability to have an argument\navailable to discuss the merits of a proposition\".\nRepresentative Knutson asserted that the Treasury in\nrecent years has presented a detailed tax program to Congress\nand has used \"its vast propaganda machine to try to overcome\nCongressional opposition\"; that it is proper for the Secre-\ntary of the Treasury to make recommendations to Congress\n\"when requested\", but \"it is improper for the Treasury to\nwork out a tax program of its own and then insist that\nCongress enact it into law without regard to the views of\nthose who are to be taxed or the judgment of the taxpaying\npublic as to what is for the best interest of the country\".\nDairy herd of the Secretary of the Treasury. Represen-\ntative Fish, extending his remarks in the appendix and in-\ncluding the John 'Donnell article in the Times-Herold of\nNovember 23, said that \"two of my distinguished constituents\nwho have hitherto claimed to be dirt farmers * have\nlately been compelled, through OPA restrictions and regimen-\ntation, to change their classifications, one as a forester\nor producer of Christmas trees and the other B.S E. horticul-\nturist or apple grower\". He asserted further that \"It is\na sad commentary and a very bad example to the dairymen of\nthe nation who are asked to produce more milk and butter in\nthe war emergency for the Secretary of the Treasury, Henry\nMorgenthau, Jr., to sell out his dairy herd of 100 pedigreed\nmilk COWS when the country is threatened with 8. shortage of\nmilk\".\nNothing further of interest occurred in the House, and\nthe Senate was not in session.\nRegraded Unclassified,\nTax Bill: 10019-10073 pages.\n25025\nDairy Farm: pp A.5469-5470\nCongressional Record\nUnited States\nof America\nPROCEEDINGS AND DEBATES OF THE 78ᵗʰ CONGRESS, FIRST SESSION\nVol. 89\nWASHINGTON, WEDNESDAY, NOVEMBER 24, 1943\nNo. 182\nSenate\nThe Senate WEE not in session today. Its next meeting will be held on Friday, November 26, 1943, at 12 o'clock meridian,\nHouse of Representatives\nWEDNESDAY, NOVEMBER 24, 1943\nThe House met at 11 o'clock a. m.\nResolved, That the Secretary communicate\nRev. Bernard Braskamp, D. D., pastor\nthese resolutions of the House of Repre-\nThe resolution asks no appropriation of\nof the Gunton Temple Memorial Presby-\nsentatives and transmit a copy thereof to\nmoney but expresses the gratitude and\nthe family of the deceased.\nrespect of the Nation through its elected\nterian Church, Washington, D. C., offered\nResolved, That as & further mark of respect\nrepresentatives and orders that an en-\nthe following prayer:\nto the memory of the deceased the Benate\ngrossed copy of the Joint resolution be\nMost merciful and gracious God, by\ndo now take & reoms until 13 e'clock noon on\npresented to Orville Wright, the surviv-\nwhose Spirit we have guidance and un-\nPriday next.\nIng brother.\nderstanding, help us during this day to\nThe message also announced that pur-\nMr. MICHENER. In other words, the\ngive ourselves unreservedly to Thy lead-\ning. holding our own wishes in suspense\nsuant to the provisions of the above reso-\nresolution is simply one of gratitude and\nlution the Vice President had appointed\nrespect and orders only that an engrossed\nuntil Thou dost declare Thy will,\nWe pray that Thou wilt create within\nMr. HAWKES, Mr. VANDENBERG, Mr. WHITE,\ncopy of the joint resolution be traus-\nMr. AUSTON, Mr. MALONEY, Mr. TRUMAN,\nmitted to the person designated.\nthe hearts of these Thy servants those\ndesires which Thou dost delight to sat-\nMr. GREEN, Mr. MILLDIN, Mr. TUNNELL,\nMr. JEFFREY. Exactly.\nisfy. Grânt that their minds may be\nMr. EASTLAND, Mr. REVERCOME, and Mr.\nMr. MICHENER. Mr. Speaker, I\nveritable ranctuaries of those revelations\nROBERTSON members of said committee on\nwithdraw my reservation of objection.\nthe part of the Senate.\nThe SPEAKER. Is there objection to\nand visions of the wisdom of God which\nthe present consideration of the resolu-\nshall enable them to find a happy solu-\nCOMMEMORATING THE PORTIETH ANNI-\ntion?\ntion to the many difficult problems con-\nVERSARY OF THE FIRST AIRPLANE\nThere being no objection, the Clerk\nfronting our generation.\nFLIGHT BY WILBUR AND ORVILLE\nread the resolution, as follows:\nAs Thou hast opened Thy hand in\nWRIGHT\nWhereas un December 17. 1903, the first\nblessing upon our beloved country, so\nMr. JEFFREY. Mr. Speaker, I ask\nflight of . heavier-than-air machine YM\nwilt Thou enlarge our souls with a sin-\nunanimous consent for the present con-\nmade by Wilbur and Orville Wright at KILL\ncere desire to bring in that blessed time\nsideration of House Joint Resolution 175\nDevil Hills, Kitty Hawk, N. C: and\nWhereas this flight fulfilled man's dream\nwhen every need of struggling humanity\ncommemorating the fortieth anniversary\nto conquer the air; and\nshall be supplied and righteousness and\nof the first airplane flight by Wilbur and\nWhereas this achievement of the Wright\npeace shall flow as a mighty stream.\nOrville Wright,\nbrothers has been of Incalculable value to\nTo Thy name we shall give all the\nThe Clerk read the title of the joint\nmankind; and\nprate, Amen.\nresolution.\nWhereas the Offigrees of the Valied States\nThe SPEAKER. Is there objection to\nberétofare has recognized this epochal event\nTHE JOURNAL\nby authorizing the erection of a memorial\nThe Journal of the proceedings of yes-\nthe present consideration of the resolu-\nst the place of the flight; and\n(erday was read and approved.\ntion?\nWhereas the fortieth anniversary of the\nMr. MICHENER. Mr. Speaker, re-\nfirst flight of & heavier-than-air machine will\nMESSAGE FROM THE SENATE\nserving the right to object, will the gen-\nbe commemorated on December 17, 1043:\nA message from the Senste, hv Mr.\ntleman state what the resolution is and\nNow, therefore, be n\nFrazier, its legislative clerk, announced\nwhether It comes with a unanimous re-\nResolved, etc., That the Nation expresa its\nthat the Senate had adopted the follow-\nport from the committee?\ngratitude and respect for this signal and\nIng resolution (S, Res, 211):\nastounding contribution to the progresa of\nMr. JEFFREY. Mr. -Speaker, this\nthe world on the fortieth enniversary\nResolved, That the Senate had beard with\nresolution was referred to the House\nthereof.\nproferms accrow and deep regret the an-\nhountement of the death of Hon, W. WARREN\nCommittee on the Library. It received\nThat an engrossed copy of this joint TERO-\nInte a Senator from the State of New\ntheir unanimous approval and was re-\nJuilon be transmitted to Orville Wright, the\nported out.\nsurviving brother.\nResclard, That a committee of 12 Senatore\nThe resolutions simply commemorates\nThe resolution was ordered to be en-\nbe specinted by the President of the Benate\nthe fortieth eniversary of the first flight\ngrossed and read a third time, was read\nto take order for superintending the funeral\nof the Wrigt $ brothers, which anniver-\nthe third time, and passed, and a motion\nof the deceased Senator.\nsary will or nur on December 17, 1943.\nto reconsider was laid on the table.\n10017\nRegraded Unclassified\n1943\nCONGRESSIONAL RECORD-HOUSE\n10019\nMi. SCHIFFLER. Mr. Speaker, I ask\nwith DO pounds of thuke selling at $4.80, while\nunanimous consent to extend my own re-\n16,000 pounds of yellowtails abcard the Goy\nThe Clerk read BE follows:\nmarks in the RECORD and to Include sepa-\nHead accompanied about 150 pounds of Buke\nResolved, That upon the adoption of this\nat $4.55. The flah normally selle for sbout 28\nresolution It shall be in order to move that\nnicly two editorials.\ncents.\nthe House resolve Itself into the Committee\nThe SPEAKER. Is there objection to\nBuyers were reported to the the Dartmouth\nof the Whole House on the state of the Union\nthe request of the gentleman from West\nFillet Co. and L. 8. Eldridge & Goo,\nfor the consideration of the bill (R. R. 3687)\nVirginia (Mr. SCHIPFLES]:\nCertain of New Bedford's established\nto provide revenue, and for other purposes,\nThere was no objection.\ndealers reported last week that they were\nand all points of order against said but are\n\"twaching & lesson\" to dealers failing to abide\nhereby walved. That after general debate,\n[The malter referred to appears In the\nby the allocation plan. Under the noncom-\nwhich shall be to the bill. and shall\nAppendix.]\npetitive system of celling prices for yellow-\ncontinue not to exceed 2 days, to be equally\nPERMISSION TO ADDRESS THE HOUSE\ntails, hidding for non-price-controlled Bab\ndivided and controlled by the chairgian and\nDD the side appeared to be & way or de-\nranking minority member of the Committee\nMr. VURSELL, Mr. Speaker, I ask\ntermining who should get the catch.\non Weys and Means, the bill shall be con-\nunanimous consent to address the House\nFishermen who brought in the flab on both\nsidered as having been read for amendment.\noccasions were reported to be bewildered by\nNo amendment shall be in order to said bill\nfor 1 minute.\nthe turn of eventa which made dealere attach\nexcept amendments offered by direction of\nThe SPEAKER. Is there objection to\nsuch 5 price to the hitherto neglected fluire.\nthe Committee on Ways and Means, and said\nthe request of the gentleman from Ill-\namendments shall be In order, any rule of the\nnots (Mr. VURSELLI?\nEXTENSION OF REMARKS\nHouse to the contrary potwithstanding.\nThere was no objection.\nMr. PATMAN. Mr. Spraker, I ask\nAmendmenta offered by direction of the Com-\nunanimous consent to extend my own\nmittee on Ways and Means may be offered\nMr. VURSELL addressed the House,\nto any section of the bill et the constusion\nHis remarks appear in the Appendix of\nremarks in the RECORD on three subjects\nof the general debate, but such amendments\ntoday's RECORD.)\nand to include certain statements and\nshall not be subject to amendment. At the\nexcerpts.\nconclusion of the consideration of the bill\nEXTENSION OF REMARKS\nThe SPEAKER. Is there objection to\nfor amendment, the Committee shall rise and\nMr. O'BRIEN of New. York. Mr.\nthe request of the gentleman from Texas\nreport the bill to the House with such amend-\n(Mr. PATMAN19\nmenta as may have been adopted and the\nSpeaker, I ask unanimous consent to ex-\nThere was no objection.\nprevious question shall be considered - -\ntend my own remarks in the RECORD and\ndered on the bill and amendments thereto\nto include therein a letter sent to me by\n(The matter referred to appears in the\nto final passage without Intervening motion,\none of my distinguished constituents\nAppendix.]\nexcept one motion to recommit.\nwith reference to subsidies, and I also\nPERMISSION TO ADDRESS THE HOUSE\nMr. CLARK Mf. Speaker. I yield 30\nusit unanimous consent to extend my own\nremarks in the RECORD and to include a\nMr. PATMAN. Mr. Speaker, I ask\nminutes to the gentleman from New\nYork [Mr. Fism] and yield myself 5 min-\nspeech given by the national commander\nunanimous consent to proceed for 1\nutes.\nof the American Legion in Chicago on\nminute.\nMr. Speaker, this rule would of course\nNovember 10 before the American\nThe SPEAKER. Is there objection to\nmake In order the immediate consider-\nPetroleum Institute.\nthe request of the gentleman from Texas\n[Mr. PATMAN1?\nstion of the tax measure. The Com-\nThe SPEAKER. la there objection to\nmittee on Ways and Means was unant-\nthe request of the gentleman from New\nThere was no objection.\nmous in requesting the Committee on\nYork (Mr. O'BRIEN]?\nANTISUBSIDY GROUP WILL LOSE\nRules to report out this particular type\nThere was no objection.\nMr. PATMAN. Mr. Speaker, the vote\nof rule. It is of course a closed rule,\nThe matter referred to appears in the\nyesterday on the subsidy question in-\nwhich permits of no amendments except\nAppendix.]\nthose approved by the Committee on\ndicates that the antisubsidy propo-\nnents do not have a two-thirds vote.\nWays and Means. This is the usual type\nPERMISSION TO ADDRESS THE HOUSE\nMr. GIFFORD, Mr. Speaker, I ask\nOn my amendment to strike out section\nof rule under which tax measures have\nto be considered.\nwhenimous consent to proceed for one-\n3 they lacked 10 votes of having enough\nI wish to congratulate the Committee\nhalf minute,\nfor a two-thirds majority, and on the\nMonroney amendment they lacked 29\non Ways and Means, whether it has fully\nThe SPEAKER. Is there objection to\nmet the views of everyone in the country\nthe request of the gentleman from Mas-\nvotes of having two-thirds. Bo Instead\nor net, for having returned to Washing-\nsachwetts [Mr. GIFFORD]?\nof the antisubsidy group being en-\nton before the recess was over and gone\nThere was no objection.\ncouraged over yesterday's vote, in view\nto work on this tax measure. The mem-\nof the undisputed facts they should be\nFISH BRING $4.55 A POUND\nbers of this committee have worked on\ndiscouraged because the outlook for them\nIt for many, many weeks, long, hard\nMr. GIFFORD. Mr. Speaker, I made\nis gloomier than ever, and I predict they\nhours, both day and night. I feet that\na statement yesterday that fish were\nwill lose.\nthey have undertaken seriously to do\nDringing $4.55 per pound. Perhaps you\nANSWERING MR. FULTON LEWIS, JB.\nthat which in their Judgment is best for\ndisbelleve that, but I want to put in the\nAlthough I did not hear him, I under-\nthe country under the present circum-\nRECORD a full explanation of why that\nstand that the radio spokesman for the\nstances, and that we may rely with a\nsituation exists in the attempt to fix\nRepublican Party, Mr. Fulton Lewis, Jr.,\ngreat deal of confidence on what they\nprices. In order to secure the catch the\nprocessor will pay enormous prices for\nlast night on his radio broadcast left\nhave done.\nthe impression that I had changed my\nI know the House wants to get down\nfish un which there are no ceilings. It is\na Decultar situation. Read this article.\nviews on the subsidy question because I\nto the consideration of the measure and\nvoted to extend the life of the Commod-\nI see no particular reason why we should\nIt is illuminating.\nIty Credit Corporation. If such an in-\nconsume much time in debating this rule.\nFISH mine $4.55 A FOUND\nference were left, It was an erroneous\nI shall cooperate with the gentleman on\nNew Bedford's fluke market an the fish\none, since I am Just as much opposed\nthe minority side und conclude the de-\neachange repeated itaelf Bunday, when the\nto prohibiting zubsidies as ever and will\nbate on the rule as speedily as possible.\nnon-price-exatrolled fish sold for the un-\ncontinue my efforts to eliminate the pro-\nMr. FISH. Mr. Speaker, I yield my-\nprecedented prices of 84.58 and $4.50 a pound.\nvision in the bill that will prohibit them.\nself 10 minutes.\nThe hidding skyrocketed na dealera resumed\ntheir Mud over control of the yellowtail\nIf the Senate does not strike out this\nMr. Speaker, as the distinguished gen-\nmarket, Last work end similar attempts to\nprovision and the conference committee\ntleman from North Carolina [Mr. CLARB)\nwhere yellowtalls, In spite of the much-\ndoes not strike it out, the President will\nhas 60 ably stated, this rule comes to\ndisputed voluntary allocation plan which\nveto the bill and I will vote to sustain\nthe House upon the recommendation of\nrestricts chickes to five deslars, resulted in\nhis veto.\nthe Committee on Ways and Means,\nfish. Prires of $2.36 for Ruke and $1.51 for butter-\nwho were unanimous in asking for this\nTHE TAX BILL\ntype of rule The Committee on Rules\nDecords or the United States Flah and Wild-\nMr. CLARK Mr. Speaker, I call up\nreported 11. out also by & unanimous vote\ntite Service showed that 13,000 pounds of\nHouse Resolution 360 and ask for its Im-\nto the House, who, of course, in the last\nyyDowistis no the Bankety Head went along\nmediate consideration.\nanalysis, are the masters of their own\nRegraded Unclassified\n10020\nCONGRESSIONAL RECORD-HOUSE\nNOVEMBER 24\n1943\nCONGRESSIONAL RECORD-HOUSE\nrules. Hewever, fur that particular type\nMr. FIBH to other words, pay 101\ntuality all their Income by the Govern-\n10021\nand character of MILL this is the milom-\npercent. Mr. ENUTSON. On a $1,000,000 In-\nment. As my friend Inc. Microla\n- of total the burden under enting las and under Tressury sinn (no\nATT rule, in urder to sold confasion\nthey will be muleted ut all of It\npart-inr credit alloved)-Married provide, na\norder of the amount of income or salary\ncome the individual will par 45,730 to\nthat . person can receive, I do believe,\nand delar.\nand more, too. The recommendation us\nMr. Speaker, 16 is not ITS function as\naccition to the full million dollars to\nthe Gerretary of the Treasury Fudia alay\nfiles EM - Is -\nMinin - (an M -\nNet - after tau -\nIn all justice, that in time of war the\n1944 and egain in 1940, and so DIL The\nhave tanded le aquadate the mindle dass.\n-\n-\nis Entergives tax)\nMAIL 1 H MIX)\nCongress should Invy such tax rates on\nA manter of the Committee on Ruise tas\ni\nforme of ourselves as citizens as will be\ndiscuss the intricudes of this type of\nmore his Income the more be will use,\nthe fartiers, the homn Officers, and the\ni\nThe man with a $5,000,000 Income will\nsmall-business and professional Bro\nPresse live\nI\nlane w\nPrest\nTreatory\ntime\ncommensurate with the needs of that\nrevenue fegulation. That is the daty of\nDMV\nmissise\nlaw\nIf -\nPremium --\nTreasury\nthe committee members under the very\nCWE $45,750 plus the $5,000,000.\nMr. FISH Then, 44 I take it, I have\nand withen. and Also world have added\nplan\nwar. I do not think those rates should\ntime\n-\never be confiscatory, but I do believe in\ndistinguished leadership of that greatest\ngreatly to the burden of Live wage NO.\nthe higher brackete they should be suffi-\nunderestimated the strustion. I stated\nera, which would have Carding lines\nFereial\nPrival\nof all In the Bouse. the gen-\nENJ\nLMD\nthe original Margenthau proposal would\nhardship in every American time,\np.m.n\nas\n- a\n11.00 DE\nciently steep AD that in prantical effect\ntlemant from North Caruêns, Chairman\n6.134.00\n1.00\nR.IM\n0.50\nLOSS\nIN#\nthere will be some Hmit - the spount\nmovemes and salaries to $10,000 a\nThe preposal to virtually limit -\nIN\nHouse Documentos. the greatest Noman\neur\n13.00\n-\n7,406.50\nof them all. But, Mr. Speaker, 1 de\nyear. New, according to my friend from\nMII\n16.34\nof money a person can have exit keep or\nto $10,000 and to heap additional taxes\n46,748\n6,807.50\npropure to take anme unr tu refresh the\nMinnesola, some of the taxpayers In the\n5L.50\n38,042.06\n4,07.00\nspend on himself while people are\non the already overburdened middle class\n40.000\nM.I.\nCIMI\n91,127.80\nIng and dying on the of the\nhigher brackets will be owing motiey.\nLOSS\nwas an attempt by tax Ingistration to\nTOTAL\n15.04\n17,530.00\nmemories of the Members of the Name\n---\n6,105.12\nn.o4\nworld.\nThey will be called upon to pay over 100\n-\n1,266.00\nno both sides as to the original proposal\nsocialize and revolutionies America and\nSATIN\n16.005\n06,872.10\n31,146.27\nMr. PISH. I giuld 1 minote ta\nemanating from the decretary of the\npersont of thair income and will not have\nto out-communise the Comminists,\n-\n04,000\n15.70\n---\n-\n25,141.01\n11,000.20\n$10,000 left after taxes. I thought the\n71.00\n11.15.00\nM.M.\ntheman from Michigan (Mr. HOFFMAN/.\nI\n---\n10,0%.00\nTreasury, Henry Morgenthau, Jr., which\nThe existing income taxes are\n74,488.00\n74,139\n--\nin my humble opinion, if jt had boro\nman who bad a million-dollar income\n96,093.00\nasia\nMr. HOFFMAN. Mr. Speaker. I sule\n13,435.64\noppressive and further burdeno word be\n0.401\nwere\nvas to at least retain $10,000. Evidently\n4.79\nunanimous consent to revise and attend\n96,740\nem\nsee\ncarried dal OF being required\nI have made o mistake. and he will be\ndestructive of free enterprise and the\n196,745.00\n17,000.00\n-\n--\nARE\nmy remarks\n250, 344.00\nTORD\nor the Committee on Wari ann Means\nAmerican standard of living. The way\nin\nT.6%\nowing more than that to the Goverti-\n207,744.00\n-04.00\nThe SPEAKER la there objection to\n--\n-\nLew\nwould have por MA - a sevil with the\nto stop crushing and excessive taxes a\n385,244.00\nTHE\n11,004.00\n100.430\nment. But as a estaral proposition,\nin\nthe request of the gentleman from Miche\nCommunicate and might have eva nus-\nto economise and reduce governmental\n360.504\n4,000\nlgan?\nwhat 1 visted was to the effect that It\n106,000.00\n100-797\n5,300\nrecomunized the Communicate So I pro-\n-15,790.00\nexpenditures all along the line by abot-\nCHE\n-12.54.00\n206,848\n6.799\nThere was no objection.\npue so take time not to tale about the\nwas an attempt to limit all aslaries and\n-45,730.00\n-\ntshing useless\nMr. HOPPMAN We all have the\ndetails of the tax hill which IN tefore\nincome to $10,000.\nYou geotlemen of the House on both\neliminsting as least 300,000 Foderal -\nhighers respect for the from\nyou but to speale about the orginal por\nMr. CLARK Mr. Spesker, I yield 2\nedes. because this is not a political Issue,\nployees as & beginner, and supervising\nMr. FISH. IL is in the but, If the mm-\nCalifornia Mr. and for file\nporal as submitted by the Berreiory of\near expenditures, The Congram DMM\nminitos or the evolleman feden Mossa-\nClarman with study the bill\nopinions. I have had mana a protest too\nremember the furor and the uproar when\nB. good start yesterday En Hupping the\nchusetta (Mr.\ndue Treasury\ntake this accusion to congratulate the\nPresident Roosevelt and the Treasury\nThe SPEAKER. The time of the EPTI-\nDrem folks who did not with to be taxed\nvirious subsidy program, which If IL over\nMt. McCORMACK. Mr. Speaker, IL\naddicats members of the Committee\nDepartment suggested limiting not in-\n19 dways interesting to listen to the\nUrman from Massachusetts has expired.\nI would like to write a tax will that world\ncome but salaries to $25,000 annually.\ngot underway would have the tas-\nMr. CLARK. Mr. Speaker, I your 2\nnot bit anybody in my district or any of\nWays and Means Due refulling to tur-\nThat vas squelched by an ovgrabelming\npayers $2,000,000.000 annually. Eve\nfrom New York TMr. Frail\nque We are always bound to near\nminutes to the evolleman from Call-\nthe people who vote for me. Theater\nthe increase incurre taxes and place 00-\nvote of the House. Now the Secretary\nthe Democratic members of the Commit-\nfornia TMr. Voolina).\nowners are kicking about the assure-\npressive the American\nter on Ways and Means threw the\npeople called à lot nt new names We\npeople. particularly the middle class,\nher Suggiary Mergenthau called a So-\nMr. VOORHIS of California Mr.\nment tax. The C. I. O. in kicking about\nof the Treasury to bis original proposal\non this Isx bill which be and nin Treas-\nuntic-communistio Maramine pospail\nSpeaker, I want the Racose so show I -\nthe sales tax. The people who opende\nwho are atready MINNEY and staggering\n(II) subordinates advocated before the\nto confirmate large Incomes and ligaldate\ncallit and a Community for submilting\nthe middle class out of the windre. TM\nsubje proposal, and a lot of other pet\ncoposed to the closed rule on this but.\nEmenties and bustrieses are all kicking\nsigns under the tax load as best they\nTIMES Whenever I heat & man call\n1 am opposed to in for I/WO reasons: To\nabout the income tax I would Blke to be\nCap. Thom anund and wise Democrate\nCommittee on Ways and Means and\nsought to limit salaries and incomes-all\nbrazen attempt of the New Del série-\nthe Ent place, I do not think at La cus-\nshie to get up here on the floor and offer\nwho Johned with them under the\nistration, drunk with power and los\n(Unit names in argument the\nleadership of the sentisment from North\nincome-to $10,000 & year. I submit this\nthought always exaste in ma mind that\ntomary to grant a clound rele on . légin-\namendments, amendments civering eve\ntenure of office, to the the tax statem to\nery one of my consitions and exempt-\nCarolina, Dos Documento an\nSocialist plan is not known to the Amer-\nlimit all Incomes to $10,00 and to under-\na - evidenes of inability to make a fair\nlative bill-and this is not only a tax\n50 be highly comminded for np-\nlean public. The details were never\nand effective argument 00 the merits of\nbill; this bill contains a provision about\nthe every that one of them from taxation\nmine therehy the American apter of\nand then I would be able to write a nãoe\nproduce the and\nreally told to the American people. 1\nde To me, name-calling is\nrenegotiation of contracts which may or\nhave talked to literally hundreda of trust-\nfree enterprise was repudiated not any\nan indicados of defestime and imability\nmay nnt be destrable. I have mome mo-\nIntive back home and say, \"I did all I\ntie proposal of Secretary of the Treasure\nby the Republican members, bei by M-\nwould but that House or Representatives\nMorgenthau to vittually Timis nel ID-\nnessmen, large and small, and not one\nfersonian Democrata on the Consition\nle base an areument available as discuss\ntem about these provisions and ballave\neather till\nof them had heard of this radical st-\nthe therita of a proposition.\nthey should at least be open to amend-\nwould not €0 along with me, so you are\nThe purch was never fully informed\nlenspt to limit salaries and income to\non Ways and Mians, much tu the\nlinvent, that is not my purpose An\nment The HII should, in my opinion,\nstude) it is all their twit Bus a tax\nbut eacnut be written that was. It, is a\nof the abomination of desulation recum-\n$10,000. They all knew about what they\ncredit,\nTime lare My purpose u to Date 000\nhave been sonsidered under AS spen rule,\nmended by Becretary Margenthau. Pro-\ncalled the outrage to limit salaries to\nMr. Spenker, I befiexe the stole\nMa observation. President Rooseveis\nThe wrond reason I have for being\ntechnical subject. This committee la a\n$25,000, but when it came to limiting\nagainst the closed rule is because should\nscopartisan committee if there ever was\nviously the attempt to limit salades a\nHouse, Republicans and DEV\nMIC of the outjet of the war there would\n$25,000 war by and\nboth to $10,000, they had never heard of\na vote of gratitude to Dr if\nin und millionaire made out of\nlike to have been able to offer, and I want\nsuch a comeittee in the House. They\nthe Committee on Wast and Missi for\nthe people of my district to know I would\nhave knowledge that we have not. or I\nby the American press M an attempt to\nIt. That is why 1 em taking the floor\n- It misms a let to the fellow\ntoday, to refresh the memories of at least\nla wire, that Drans a los to the fd-\nhave offeret, amendments to make this\nwill say, they have knowledge that I have\ninterfere with private initiative and free\nthrowing this outragenes propal gli\nanterprise. However, the original tax\nline she is fighting atroad, whether or\ntax MII raise more revenue than IS pri-\nnot; I will not say anything about any\nthe Members of the House of Represent-\nthe New Dest ashran.\nune else. I could not write a tax bill If\nproposal of Secretary Mongenthau at the\nalives - both aldes as to this outrageous\nDM liked thillionaires are being made\nvides. I do not think there is any other\nMr. Speaker. the following (able ger\naut of No surificies end out of this var.\nanswer to inflation except a courageous\nI tried. In all frankness I say 1 do not\nhearites on the present bill was incom-\nproposal eminating in the first Instance\nparable more drastic and revolutionary\nfrom the Treasury Department,\ntrates what the total tax burden will\nAfter the var is over, brushing aside all\nprogram of taxation III we could stop the\nbelieve, with all due respect, that two-\nand actually Jumited net salaries and in-\nbe under the original Treasury plant In\ntime phrases that may\ncreation of new mober by sale of bonds\nthirds of the Members of the House could\nThe largest taxpayers. already\nindividual taxpayers:\nto commercial banks. The distingulahed\nwrite a tax bill If they had & chance. I\ncomes is $10,000. A taxpayer with\nsqueened white, would be mulcted of vir-\nimporatily midesd or deceive some of\n$70,000 pet would have only $8,300 re-\nof total tar trunden under scieting late and - -\nour people, after this var is over, I re-\nchairman of the committes has ben\nam willing to leave it to the committee.\nmaining after saves whereas another\nthere will be no blood million-\nkind enough to as that he would grant\nJust as long as we continue to spend and\npost-ver credit allowed)-Married perm, no dependente\nme a little time later on in the debste.\nspend we must tax and tax. My remedy\ntakpayer with $13.000 net would have\nAt this point : should only like to my\nwould be to spend less.\n$8,500 or $200 more left after palment of\nEdective - on un you\nNet - - as all\nMr. FISH. Mr. Speaker, will the (m-\nNet 184 par is undergiven -\nIM ghe \" -\nthat It is important that the Members\nMr. FISH. Tyleid such time - he may\ntaxes.\n9 - cas)\nDeman gield for - qualion?\nNat Invoice\nInformation\nMr. M:CORMACK. Yes.\non the Republican side of the alale make\ndestre to the gentlemino Item Minnesota\nMr. ENUTSON. Mr. Speaker will the\nup their minds whether they were right\n1Mr.\ngentleman maid?\npresent\nI\nTHEIR\nMr. FISH I should PUME like to as\nMr. FISIL I shall be deligited to\nTreasury\nor\nTreasury\nIf HOR\nEmail -\n-\nmy distinguished colleague if be via in\nyesterday or whither they are right to-\nMr. ENUTION, Mr. Speaker and\nTransi Iss\nplan\nrelation\nisto\nplan\nfrom of limiting net salaries and in-\nday; were they right proterday when they\nMembers of the House I am rather TE-\nyield to my distinguished coliengue trom\nMinnesota, who BODY day will be the\nREG to $10,000,\ntold us there is su abundance of surplus\nJuctant to take the flour again BE this\nchairman of the Committee on Wass and\n/yent\nPrest\nPerrol\nMr. McCORMACK Ind the gentle-\nbuying power in the bands of the people,\ntime, bensase 1 shall have to de 80 later\n!\na\nMeans\npa\n-11.0\n-\nLA\n-LB\n.00\n- A\nma\nthe way the Secretary of the Treasury\na it did not matter whether there are\non But I want to ay to the minority\n:\nwe\n1000\nproposed that?\nmeans or machinery for keeping down\nMembers that the minority of the Ways\nMr. KNUTSON, I thank the gentle-\nse\n38\n:\nwe\n-\nman We ascept the nomination with\n-11.5\n1.45\n-1.60\nin\n19º\nprices to consumers or are they right\nand Means Committee were a. unit In\nEN\nEN\nLTA\n1,29\n477\nLIST\nMr. FIRM That was the general pro-\nKMB\ntoday when they tell us a grest and ter-\nfavoring the issuance of the rule now un-\ndue humility,\nN.M.\nuse\nan\n130\n1,30\nLast\npaid in the bell, as anyone can - If be\nMr. FISH B LA inevitable\nKLAS)\n@.@\n670\n11.48\nstudies and analyzes It.\nritile government is, to order to try to\nder consideration. The older Members\nme\n10 M\nLIM\nCOLE\nper\nNO\nno\nce\n11.40\nSTAR\nfinance the grestest war in history,\nof the House will recall that back in 1932,\nMr. KNUTHON. I should like to call\nB.M.\n20\nHE 00\nas\n17.040\nLIM\nTHE\nthe attention of the sentleman to the\nRAB\nen\nDLN\n21.19\n63%\n343\nMr. McCORMACK. I am advised by\ntaking more money out of the pockets\nwhen the present matority had just se-\nno\nAND\nAND\nTHE\nIL'M\nand\nLIM\nBroters of the Committee en Ways and\nof the saxpayers than can be justified?\ncured control of the House, they brought\nIT.NP\nfact Chat an individual with an income of\n10.201\nLIAM\nDIE\nBLAE\n97.20\n18746\ncon\nthat the Secretary of the Treat-\nFor my part, I will any whereas I do not\nin a tax bill. as I real without is rule\n$750,000 in 1944 and wealn in 1945 will\n1,00%\n5.00\n11.87\np.o.\nLOSM\nun\n-\nse\nNM\n2019\nury never preposed it.\nagree to & fai limitative by Executive\nand by the time the House got through\nDMP the full $750,000 plus $3,250.\n1.671.00\n1,00.00\n26 %\nRegraded\n10022\nCONGRESSIONAL RECORD-HOUSE\nNOVEMBER 24\n1943\nCONGRESSIONAL RECORD-HOUSE\n10023\nwith 11. its authors cocld not IL\nopinion, was revelutionary and servialle-\nable to eliminate them through, the to\nformation we can get.\n-\nRodgers, h.\nClosed rules are necessary in the con-\ntie and would have placed 3 on . par\nBIND\nRogin, out\nMr. DOUGHTON, Mr. Chairman, the\ntures of our Government. There has\na\nsideration of tax massages on the Beut,\nwith the remunistelle program.\nIn the Interest at economy, which y\ngood\nBeits\nWII under entrideration representa en-\nbeen no indination to avoid any of the\nMr. Spenker, I we unanimeus convent\nrecited M one of the considerations et\nno\nKennely\nother effort on the part of the Committee\notherwise everyone with & pet then of\npot\nfacts and factors Utist were to be -\nEmmil\nan\nwould offer amendments and\nto Insert these tax tables la the Rannas\nthe Committee on Wan and Mana to\nnot\nen Ways and Mem to raise additional\naldered, but, 8 the matrary, MY endeav-\nElaberg\nat the end of my previous remarks show-\nthe preparation of this Bleasure, I Tate\n-\nNeish an\nrevenue to help meet the entirmous a-\nored to meet them squarely and reali-\nperhaps have them adopted and by the\ntime se got through the tull would be\nins that my contention is correct in rplle\nto urge very early consideration el the\npassit\nLANDA,\nBanko\nproditions made Decembery la the war,\ntically.\nà\nof the statement of the majority leader\nHouse Resoliction 358. The 1\nMartin, Mast.\nSpactment\nand also along with other tra title of 10-\nneither fash not towi. As . general prop-\nMasm\nBlacher No.\nThe primary purpose in any talk legis-\nasition I sm not in favor of these M-\n1Mr. McCommical.\nhave had with reference to It from\n-\npara\nMerritti\nBurner, E.\nent years to make & edistantial ex-\nfation in and strage should be las propare,\nThe SPEAKER Without objection, If\nour parts of the country confirm by by-\n-\nMuler, Ps.\nBundrirum\ntribution toward amtrolling Inflation.\nas far as reasonsible, revenue -\nrailed special or EAS rates. but I realize\n** must have one whenever à tax bill\nDef that the adoption will THE to BY.\nTotal\nla 90 ordered.\n(ntal)\nWhile considering this termistion and\nto mint the financial obtagations of the\non all\nMeries LA\nTayor\nThere var no objection.\nemmental commy that will Mis Ca\nbefore preparing the hill our committee\nis before the Honse. I vant at this une\nMet\nThomas\nGovernment, and also to see that the tax\nMr. CLARK. Mr. Speaker, I glaid 5\npeople of this country iças of\n&\nThom. Tex.\nhead vitaniser representative of simest\nburden is spread as fairty und equitable\nto express my appreciation 5 the em-\na\nminutes to the gentleman from Texas\nmoney, and will este a the emberras.\ntom\nTRMIS\nevery separat of our economic Dfe. For\nben of the Buies Committee for the very\nment of being accused of requesting\nNod - no\nas La posible\nName\nX days, beginning with the Becretary\ntime and will attended they gave\n(Mr.\nfor the acta of bureaumate www.as\nsura Va.\nBurna\nWalter\nThat revenue measures have MC-\nMr. LANHAM. Mr. Spesker, at the\nMich\nWere\nof the Driver, Hun. Henry Moren-\nondary and meldental cannot be\nus une day lest with D \" very encour-\npart\nVITY beginning of the printed report of\nwhich, If we ever authorized them Tes\n-\n17/mary\nWhelsbel, Os\nthan, It. we also beard the riese of the\ndoubted, AS the are all of the\nsiging to go before a body of Indistrious\nPhuse\nWhitles\nthe Committee on Ways and Mesta with\nauthorized in ignorance of Un smoults\n-\npublic, of governmental departments,\neconomic and social Implications of\nand intelligent men such smile up that\nof money that were DETERARY to be ET-\nare\nPluming\nreference to this tax hill, the statement\nWolfrades. PL\nour joint the Treasury staff. and of\npower\nevery iss bill, and these considerations\nbecause we know ve will\ngoun TWO\nalways end a fair deal 1 hope 10 197)\nb made that in preparing this bill the\npended and of how thom amounts ver\n-\nPricht\na\nlabor and industry. These heartngs toy-\nWITH annen full attention by nur CRID-\ncommittee has given consideration to\nexpended after they were appropriated\narma\nRespont\nWordrum, Va.\nend about 2,800 pages of printed testi-\nmine However, such considerations\nrepréite matters nos and shartly take\n- D4\nR\nthe TODO top for passess 5 that these\nthe different fastara. The fifth factor\nThe SPEAKER The time of the\nmany. No two of them appearing before\nshould niM oversbadow the revenue\nwho have niano la leave the clly for over\nto enumerated se the possibility for poun-\ngentleman from Texas Mr. LAMINI be\nThe SPEAKER. Three hundred and\na unted to agree as to the amount of\napen of a tax bill\nThanksiving may to permissed to serve\nany in governmental expenditures.\nexpired.\nMembers bays survered. a\nrevenue FE should raise or the best\nIf our purpose is to mret the fibancial\nlate this afternation. And as I - .\nInasmuch as governmental revenue\nMr. BANKIN. Mr. Speaker, I sit\nmeans of providing 11. per as to the prob-\nneeda of our Overnument let us impose\nMr. McCORMACK Mr. Speaker, I\nlem of inflation or the best melhod of\nand Increase late for this pur-\nwhile non, il WII to net discove of the\nand povernmental excessary are property\nunanimous consent to extend my ne\ntotal 1 em straid - wis have to\nclosely allied subjects, I think it very\nmarks in the and include theres\nIDSTE to dispense with further princed-\ndealing with IL Neither did the RETOR\npore. ot this policy necessarily\npertinent to call attention again to the\nthe bill 18. 1285) on absentee bellets Not\nunder the call.\non how any of the other difficun prob-\nhelpa control inflation. The place the at-\nbe in sombin temarrie, and that would\ntut that on February 24. 1942. in the\nThe metion ver served to.\ntems omfrenting as should la solved.\nour meh in the armed foros.\ntack inflation effectively, however, in -\nIm Il la up to the Howe OF to\nBeventy-seventh Contriss. I introduced\nThe SPEARER. to there\nTHE REVENUE ACT CIP seia\nAimost all the witnesses said they real-\nopinion, la EM astark it di-\nwhether or not tre will be to 10-\nlauf the defficulty of our task, the beces-\nROUTEW and : asic the of\na bill, H. n. 6887, to establish en rélice\nThere vu no objection.\nrectly and MA IM words-sitack the\nMr. CLARK Mr. Speaker, before BAS\nof fiscal investigation, as an advant of\nsite for additional Tevenue, and pro-\nwages, wid retreschment\nevery Member of this bode in expediting\nthe House of Representatives, to follow\nl'The maller referred te geno in the\nmany Members vere on the floor 1 stated\nclaimed their willingness to do their full\nin governmental expenditures\nthe and final passage ni\nAppendix.)\nthat this rule vas reported by the Dip-\npari, as the name time aging that they\nthis sun MC that - my dispose of this\n- appropriations that we make and to\nin testing to - whether our la\nmithe on Rale upon the unanimous n-\nMr. DOUGHTON. Mr. I\ncould not reasituably carry any addi-\n- how the maney la expended and be\nadoquate M - revenue-ressing missigne\nmatter to . reasonsble time 1ble after-\nguni. di the Ways and Means Committee.\ntinhal burdens, but any additional or -\nyield I minute to the from\nwe cannot confine ourselves to shin but\narea.\nable to give - the necessary information\nD to the rule customarily and lb the\nMassachusetts LMr.\ncreated taxes should be placed upon the\nalone byt must examine also the entire\nMr. FIEH Mr. Epraker, T yield -\nto eliminate vaste and duplication and\nconsideration of a tax bill I hope It will\nshoulders of other taxpayers. Por mane\nextravegation. I reintraduesd that\nMr. GIFFORD Mr. Speaker. Mila 1\ntax structure and buiden no emended by\nself 1 minute\nbe admited.\nthan 21g menths in public hearings and\nthis bill In 1915 our total Federal re-\nMr. Spenker, the majority linder as-\nmeason is this Congrest as H. FL. B7. on\nminute to with I care to take on the lat\nMr. Suraker. 1 move the previous ques-\nin executive semion, sometimes working\ncelipta amounted to approximately $5.-\nparently WER . lille annoyed that I\nJANUARY 6. 1943. In order that the mat-\nbill today.\nthe do the resomtion.\nat night, our committee engaged in an\n200.000,000. Since that time we have\nshould term the original tax properal of\nter might be considered by the House\nOn page 3 of the report I reserved vo-\nThe SPEAKER The question to on\nearnest affort to prepare the Best tax\nenecied the First and Second Revenue\nSecretary Morgrathau as socialistic and\nalune, in view of the fact that it pertains\nlightenment. I could not understand\nthe restiution.\nbill possible. We endervored to be guid-\nActs of 1940. the Bevenue All of 1941 and\npractically communistic 1 as reminded\nto & proposed REPOCT of the House of\nwhy a min receiving a buile mue ou\nThe question was taken: and on a\ned by factual conditions rather than by\nthe Revenue Art of 1942.\nof the cid Latin proverb \"magna est\nRepresentatives, I have recently intro-\n$327,900 6 year miary stecid est Ge\ntimes idemended by Mr. Vocenta of\ntheoretical opinions or philosophles.\nUnder the pay-m-you-go Jegislation\nveritas et EN mighty\nduesd at as House Resitulion 358.\njob of a Congression, Loot up that\nCalifirnia) there wire-arm 200, noes v.\nWhile - fistened to the various with\nwhich via paint the Brst part of this\nand will prevail.\nI Dellero that (De adoption of the\ntable and 300 we find that via be will\nBn the residation was agreed to\nnames appearing before our committee\nyear. the revenues were alto increased\nThere is no question and I propose to\nunliry registed in this measure will save\nretain after be pays taxes will le less\nThe SPEAKER. The Chair recognime\nand beard the comunenta of elementa\nfor the fiscal year 1244 by advancing\nprove It by anking exturent to\nthe taxpagers of this country untold mil-\nthan $5.000 next year. That seemo a be\nthe exattement Irvm North Carolina Mr.\nand factions, receiving many helpful\nthe date of payment of individual In-\nJasert in my resures lables\nDoes of dollars Through the crurtess\nthe anover.\nsuggestions. in the final analysis the bill\ncome tax B thing incomes end requir-\nshowing that THE tempayer would have\nof the Chairman of the Committee en\nMr. DOUGHTON. Mr. Speaker, I\nMr. DOUGHTON. Mr. Speaker, I\nis the result of the thought and surdidos\nthe partial parment of the uncanceled\nmore than 810,005 Delt under the original\nAssiunts. our beloved cillengue the\nyiski to the gentleman from Montabe be\nnigno that the Heave resore Stailf into\nlabors of our committee. D is not 5\npertion of the 1942 tax in 1944 and 1945:-\nTreasury plan. In vum of what the ex-\nexplleman from Missouri 1Mr.\na umanimons-comsent request.\nthe Committee of the Whole Mouse on\nTreasury bill. 6 joint staff bill a C. I. o.\nThese acta for & full year of operation\njority leader said. I sait FOO-\nbearines were held a week LEO today on\nMr. O'CONNOR. Mr. Speaker, 1\nthe tista of the Union for the considers-\nbill. a chamber of memeror MIL or a\nwill produce approximately $41,340,000.-\nsent to tasert in my previous remarks A\nthis measure before the Committee in\nunanimous consent to extend ny eath\nwe M the bill (IL R. 3687) to provide\nNational Association of Manufactures\"\n000. With the $2,140,000,000. this bill\ntable showing the effert of the propered\nAccounts 1 trust that committee will\nremarks in the Receive with a\nreverse, and for other purposes.\nwa. It la a Ways and Means Committee\nwill produce total revenuen for a full year\nTreasury tax plan un incomes of varimes\nsoon report this measure to the House for\nthe price of oll in Montana.\nmotion was agred to.\nbill, and for II we assime full and sole\nof approximately $43,000,000,000. Thus,\ncines. This table abows that under the\nsuprideration.\nThe SPEAKER Without objection a\nAccordingly the Bruse resolved tuelf\nresponsibility,\nin 4. years se is estimated that the\nTreasury plan DO one would have more\nIl would place as the disposal if the\nla so redeced.\nthe Committee of the Whale House\nI ED happy to say that during the en-\nPederal tax trurden of the American\nthan 811,000 after lares. I made a sight\nstanding committees of this House an\nThere ou no objection.\nen the state of the Union for the consid-\ntire procedings and escuideration of\npeople will have been raised by about TOO\nerror of $1,000 end I am willing to admit\nBERECY skin in its particular line of work\nThe motter referred to appears e the\nstation of the bill EL IL the Bert-\nthis legislation there was not the elight-\npercent, while the national income pay-\nthat, but I want the record 10 show that\nto that of our office of Legislative Coun-\nAppendis.]\ntrue Act of 1943, with Mr. Corr tn the\nest evidence of partisanship in our com-\nmenta have Increased from about 871.-\n$11,000 D the maximum that would be\nsei, and such an super would be able to\nshair\nmittee. The minurity members cooper-\n000,000,000 to 1939 to about $143,000,000,-\nlen any taspayer in the proposed May-\nEFS socurate end definite information\nCALL OF THE BOUSE\nThe Clerk read the title of the bill\nated wholeheartedly in the preparation\nCHOKS in 1943, or approximately 100 per-\ngenthac-Romevelt plan.\nfur each committee with reference to\nMr. RIVERS. Mr. Speaker. I\nThe first reading of the bill was dis-\nand fermilation of the hill and worked\ncent. The reverse collected by our Clor-\nMr. RANKIN Mr. Speaker, will the\nauthorizations of appropriations that\nthe point of order that a quantity a gift\nProvide with\nas faithfulls, u earnently, as conscien-\nernment since July I of this year-that\ngentleman yield?\nmight be requested of that committee,\nMr. KNUTBON. Mr. Chairman, may\npresent. Mr. McCORMACK Mr. Banket, 1\ntidusty, and N-I helpitally as the maintity\nM, for little over one-third if the current\nMr. FISH. I yield to the emilements\nand then, in emjunetion with the spe-\nNo have some understanding in regard\nmembers. The minority, therefore, has\nfiscal year-excends that of the entire\n[rom Mississippi.\nclal agency which heretefore has tiesen\nmove a call of the House\nla (line?\nequal responsibility and la entitled to\nyear of highest receipts during the period\nMr. RANKIN. You lay the Treasury\napproved for the Appropriations Com-\nA call of the House WILA ordered.\nThe CHAIRMAN, The Chair may say\nequal commendation for the legislation.\nof World War No. 1 by $9.000,000,000.\ntax NIL Is that the bill we are new\nmitive, and enterning which the gen-\nThe Clerk called the rell- and 18º fair\nthe under the rule. the time la equally\nWe vere thereoaphly cognisant of the\nMr. ENUTRON. Mr. Chairman, will\nconsidertuz?\ntieman from total IMr. Jessen] has a\njourna Members failed to allower in EDMIT\ndivided\nenormous deficita which - was n-\nibs gield?\nMr. FISH Oh no. I mean the nrigi-\npertinend hell pending before the same\nMr. DOUGHTON. Mr. Chairman, is\nnames:\npenditures are creating in our gerrn-\nMr. DOUGHTON I yirld to any dis-\nnal Em-\nCommittee en Accounts, we would be\nNo 1401\nla enderstood that the time will be equal-\nmental finances. We were also fully\ntingulahed collesgue from Minnesota.\nIlling salaries and incomes to $11,000,\nabto to know the amount of the authori-\nb Cirided between the gentleman from\nsware of the margin between the arail-\nHe la a very able member ut - nôm-\nwhich was the recommendation of the\nnations ve should make, and then we\nAllen, LA.\nImme\nCantisie\n-\nMichesota [Mr. and myself.\nable supply of consumer goods and the\nmitter.\nTreasury Department. Notanty back\nAuchingloss\nwould be able to follow up the appro-\nBaldwin. M.\nMo.\n-\nThe CHAIRMAN, The gentleman\npresent purchasing power of our people\nMr. KNUTSON. I extend any ean-\nhome apparently has ever heard of It.\npristions and know how the money was\nHand\nDENET\nIna North Carolina la recognized.\nunder increased wartime income We\ngratulations to the residents of Nurth\nThey have heard of $25,990 salary time-\nspent. I think also if there are Federal\nDeysin\nComments\nDradler Mish\nCoffee\npm\nDOUGHTON asked and was given\nwere fully aware alto of the great ned\nCarolina,\ntation but this WAI an $11,000 insome-\napencies which are performing State\nDIVEMB\nand-salary limitation and MAL in my\nPa.\nPremission to revise and extend his own\nof additional revenue to meet at far -\nAt this point D. might be pertinant to\nrather than Federal functions, - will be\nCISTIMA\n-\nBuckley\n1(marks.)\npossible the necessary heavy expendi-\ncall to the attentien at the House that\n10024\nCONGRESSIONAL RECORD-HOUSE\nNOVEMBER 24\n1943\nCONGRESSIONAL RECORD-HOUSE\n10025\nthe per capita taxes in the United States\nMr. DOUGHTON. Yes: they are In-\ngrester part of the Discreased -\n- to belp combat inflation and have\ntermal tax base, the surtax bear, and the\nthat the advantage of making adminis-\nextend those levied In any other\ncluded in the SIST per capita tax burden,\nbut in addition to the $43,500,000,000\nThis It seema perfection clear Khas the\nand MI shrough taxation to the top Hmit\nVictory tax bue, & different net of\ntration much easier and of service M-\ncountry.\nTreasury program would Dot have\n- now deem advisable,\nexemptions is required in the case of the\nditinnal revenue from this source would\nMr. DOUGHTOS. I am just coming\nINderal tax we have BLACK and local taxes\ncurtred Inflation to any -\nThe more important and direct chedks\nVictory tax from that required in the\nmore then offset. any increased burden\nto that point, if Une gentlemen will par-\nof $10,000,000,000. It makes . total tax\nload to the American people, a. Insd they\nincreased very substantially the infla.\ngree, but un the contrary willd have\nis dealine with inflation, however, prizes\ncase of the normal and ourtax. The\non the taxpayers.\nden Die\nand have not ben correspond-\nearned-thoome credit further ocmpti-\nA special deduction of 4300 ⑉ al-\nAs our sevenue have Increased,\nare carrying today. of more than $50,-\ntimary dangers Instar as they resie\nmit held in line. Vetil mater dirti\nested our tax tax by requiring a different\nloved in completing the grow Income of\nwe Date increased last burden no-\n000,000,000 per annum.\npersons in the lower income tax to\nle monthly this situation to más, the\nbase for normal tax than for\na blind person. Il vas pointed out that\ncontingle, We certainly have not lagged\nMr. CARTER. WILL the gentleman\nThere has been must discussion if\ncour diffect of levylog additional taxes\nBince prior iswo have extended our in-\nbitnd persons have additional expenses\nbehind aLm nations En this respect. On\nyield?\nthe no-called Inflationary Big. which\nwill fie to place further hardshige and\ndividual tax to 6 great many more tax-\nthat are not Incurred by per-\nthe contrary, the par rapita tax burden\nMr. DOUGHTON I yield to (he\ngenerally defined to their the discress a\nenterable burdens upon the Boxed In-\npayers. it a very important that every\nsons, such as for the employment of at-\nare exceeds that of other countries M is\ngeotleman from-California.\nMr. CARTER. The figures the gentle-\nbetween the sums of money available for\n- the so-called. white-cellar\neffort be made to make the tax simple\ntendants, and that antrie relief shrund\nshown by the tollowing figures prepared\nexpenditure for rensumer Boots and the\ngreum and others who net only have not\nand may for the taxpayer to understand\nbe granted in the form of an additional\nby the Treasury Department\nman is siving are very interesting and\namounts of consumer Boods available in\nreceived increased insure out el the was\nand be able to propare his return. We\nexemption. to take care of the added\nInstructive and 1 am sure the mambers\nNO-11\nof the committee are very glad to receive\nsupply the demand. I wish to commints\nbirt who have actually had their Income\nhave made every effort to simplify the\nburden.\nthe I was wordering whether the\nbriefly on this inflationary Dip. No they\nredund and their expenditures In-\ncomputation at the Individual Income\n(Total Industri State and\nWith request to the eurgurate tases,\nUnited Blates\nBEST\nexperts seem to agree either 4b the\nerand. Contranted with this very real\ntax. In - bill, which resently passed the\nthe MR makes reveral Important shanges.\nUnited Kingsiom\n251.\npentleman has aming the figures the per\namount of this END or the best way to\nand practical situation, wur committee\nHouse, We simplified the return furms for\nThe bill does not osotain any Increase\nCanada\n201.\ncapita national bonded indebsedbeis SA\nclose It. The Treasury has extimated\nnd net crem It wise or safe to make any\n1941, and by requiring the Victory tax\nIn the estporate normal and suries rate\ncompared with Great Britain?\nthe excess purchasing power to by not\nconstitutie Increases in individual In-\ncredita in be taken currently, DE MV-\nIt was throacht that an excessively high\nOur expenditions exe also presily in\nMr. DOUGHTON. I am entry, I can-\n000,000,000 after taking linte\neme we\ncorded in eliminating several Items from\ntax on the normal curnings of orpors-\nuses of thrug of ether nations net only\nDOI give the gentleman that figure, but\nun total BUT also pro capita.\n$21,000,000,000 in individual lictes and\nMr. ENUTSON. will the gettleman\nthe return form. In this bill we have\ntions would have e serious effect in re-\nI will include it in my remarks and Insert\n$17,000,000,000 used to purchased War\nyis\nfurther simplified the resurn through the\ntarding normal dividends and eti-\nThe estimate of British expenditures for\nat in the Record.\nImage Others claim Il is still (Tisle,\nMr. DOUGHTON. I yield.\nelimination of the Victory tax and the 11-\noway enitanger many corporations net\nthe present year totals about $23,000,-\nMr. CARTER I will be very happy\nand there are still others Who crotend\nMr. ENUTSON. At this point I think\npeal of the earned Income credit. We\nwith declining incomes caused by the\n000 000, wheresa nur year expenditures\nto receive it.\nthat there la no substantial END M all\nIt a fair to point out we are rapidly RD-\nhope to accomplish state further simpli-\nwas Over 30 piroint of the dividends\nare expected to reach ninety to ninety-\nMr. DOUGHTON The Information\n&s I said before. our considerations if\nproviding the point of diminishing n-\nfication in the administrative and loop-\nof corporations are received tor Individ-\nfive billion dollars. A. comparison of\nrequested is as follows:\nthis bill were in the licht of leing and\ntarru on the number of tax anternes,\nhole bill of next year.\nunis with incomes of Sein than $6,000 and,\nAmmiran and Bruttsh expenditures up to\nPer expira grom debit of entral groenwients,\npractical minditions confriding us and\nMr. DOUGHTON. That to the Juda-\nIn the interest of simplification, the\nin many these represent\nthe and if the current financial year in-\nMin. 36, 1543\nnot controlled by thenries or sintrage-\nget of & creat many people and a great\nestamities adopted the following jdan\nthe note Encure upon which the mdl-\ndicater that we WICE have spect $200,000,-\noro 001 for var purposes as against Bell-\nUnited States\nI\ntions. We Itted lo be réalisie rather\nmay You cancot Impose\nfor the purposes of the individual income\nvidual espenta himandf and his family,\nCorst Bertain\nall\nthan theiretical.\ntoo havy B tax burden. When you dr-\nMAX:\nIn addition, many of our religious, char-\nain's\nThis inflationary RAD uno le ne to\nBUCY she initiative and break the morale\nPink The Victory tax was reposied\nThe American geople liest the hereist\nBy Sept. 30. se the figure has third to\nliable. or educational Institutions would\nrainy titure Aguns fun Ormat\nbe A statistical absiraction end nes a\nof the texparers # is like everlending A\nThe normal tas was increased\nnot be able to survive, If their dividend\nfax MAA of 802 over 15 the world. Il\nUntain are not amiliable,\npable of are reasonable\ngood team and, being . farmer, I have\nfrom 9 to 10 percent to replace the Vic-\nincome were greatly reduced through en\nis more than a times the tax till of\nIn any case, VII have through taxaties\nNYO many good teams rulned by being\nlary\ntax.\nIncreased corporate Income tax. Thire-\nOrist Brissin. which in armind $1,000,-\nBy now is should be absendantly clear\ngone es fat as I believe feasible in the\neverloaded. You can place an comm-\nThird. The present personal exemp-\ntoo the bill provides that the excess\nand 14 United the Iss bill of Can-\nto everyone that lastion alime is not\nlight of all of the circumstable Der-\nmilde tax burden on the American peo-\nUoná and crédit for dependents were re-\nprofits tax be increased and not the not-\nnée, In aptie of the bürden\nadequate to control inflation. The place\nfainty. the lax portion of the anti-infis-\npie which would have the same effect so\ntained.\nmal and partax. The virtu profits tax\nunder which RUT peopin are already\nwhere inflation can be most effectively\ntino program la far shind of the TMI\ntar as the morale of the American people\nFearth. The surtss schedule of estat.\nfale NM increased from 90 to R$ pm-\ngforning, the Treasury so iu appear-\ndesit with is at the Amtres where It artses,\nunces before our runsmittee required\nand price portion of this program.\nIl amerned, as overleading & good team.\nthe law was adopted with certain adjust-\nemt. Information was developed before\nDip as you may into the flawing stream\nMureover, the who express the greatest\nYou Cutrourage them. How? You re-\nto bring the surtas in lime with the\nmir committee that many corporations\nadditional revenue of $11,100,000,000,\nthrough laxalion, you cannet overcome\nalarm at the inflation bugabon or danser\nmove initiative and break their morale.\nelimination of the Victory tax\nusing the invested expital credit were\nprincipally upon the assumption that\nthe flood raidied by excessive income\ndo not. in me opinion, fully take the\nNothing could be vorse, especially in\nFifth. The earned Invoice credit VM\nnot paying excess profits taxts. This is\nsuch a atain on the potentbacks of the\nflowing into the stream. Taxation can\nAmerican prople would control Inflation.\nsociunt the public psychology. while\nUnio of war than breaking their morale.\nrepealed,\ndue to the high return on their invested\nand must perform its portion of the anti-\nIn my the dure effects of such\nthere are undoubtertly many cases of\nberause the American people are willing,\nBath. Married persons filing arparate\ncapital which the present law allows and\ninflation program. bet ones the money\nreddess spending by persons with sub-\nthey are patriotin, and they are accious\nreturns are each required to take .\nto the rather liberal cafry-over and\nen additional tax load would more than\nhas been paid out in excessive WEEN or\noffset NO? good which vocild be\nstantially Increased Incomes, on the\nDAY now, rather than pass 5 to future\nsingle pince's exemption,\ncarry-back provisions of existing law.\nexcessive prires, or both, texation simply\nnisshed toward etopping Inflalion. If\nwhole our people are putting a very sub-\ngenerations and future taxpayers, every\nBeventh. A minimim tax of a percent\nQue of the main difficulties of the ex-\ncannot completely reculy the damage.\nstantial portion of their earnings Inis\ndollar they can reasonably pay on an\nof the DER income in excess of a special\ncesa profits tax has been Its burden en\nsuch - program were put Rito del It\nWhile the Treasury sitempted to\nWar bonds and sevines stampi. mto the\neconomically sound basis.\npersonal exemption of 8500 for a single\nsmall companies. In onler to remody\nwould Immediately create demands for\njustify its program as a check co info-\npayment of debts. the retirement el\nMi, O'CONNOR. Will the sentimen\nperson, $700 for married persons, and\nthis situation, the bill provides that the\nhigher wages end prester profile En pay\ntim, the program Helf was patently is-\nthe las MEL the natural otherquences of\nmortgages and the making et install-\ngivid?\n$100 as a eretit for sach dependent in\nspecific exemption of $5,000 now allowed\neffectual in this respect. In the resurd\nment payments no the purchase of\nMr. DOUGHTON. I yield to the gen-\nprovided\nwhich would be to stimulate rather this\ntimen,\nThe effect of the above changes will\nfor EXCESS profits tax purposes be in-\nof the hearings, on page 21. you will find\nhomes, Insurance. and other IF\ncreased to $10,000.\nto relard Inflation. Ti would sin lay\na table prepared by the Treasury De-\na crushing, and 1 believe unbearable hur-\npurchase program. The areat TAP of\nMr. O'CONNOR. I joant want to make\nbe to permit the average taxpayer to\npartment which indirates that of the\nour people remember all too vividir the\nthis observation in support of what the\ncompute his tax both for novamal and\nThere was an devicus looginde called\nden on the fund income or White-collar\n1157.000.000,000 of income payments a-\nETUCD Whise increas not only have tot\nlean years following the in 1999\ngentleman has said, whom wish to com-\nautax purpose un one net Income base\nto the attention of the committee which\nbeen Increased, but have artually been\ntimated for the calendar year of 1044,\nand the privation they were forced to\nand pay that tax to the Government.\n** felt should not wall until the next\nsiment for bis splendid statement. In\nreduced by the fine in the cost of living.\nendure during the depression yesit\nmy country people are getting very much\nThe troublesnme base of the Victory tax\nrevenue Em Int action. That is, the\nindividuals having bet invottes of under\nand the complitations resulting from the\ndivoldance of income and escess profits\n$3,000 annually will receive $96,000,000.-\nThese recollections, at least = to the\ndiscoursed over the high Invies on in-\nIn my nemion, such . crushing burden\nearned insume credit sie eliminated.\ntax through the purchase of defunct\n000, or 61 percent or the total. Yet of\npresent time, have brought street . cen-\nand we BITE approachine the time\net taxation would be far Worse than any\nthe 56.000.000,000 additional revenue to\nsiderable degree of caution with respect\nTaxpayers whose Income tax in less\ncorporations. The committee believed\nsoe was we had better be pretty cate-\nreal or fenaled danser of inflation now\nbe derived from the individual income\nful or we will be destroying business and\nthan the minimum tax will be required\nthat this Jomphole should be plugged in-\nfacing our country,\nto recklesa spendings.\nMr. KNUTSON In connection with\ntax under the Treasury's plan, only $1.-\nCertainly, 15 must be recognized that\nto pay the mintenum fax. The minimum\nmedialely and Chat the provisions plug-\nthe coventive to produce sa income. We\ntax was necessary to continue in the 148-\neine such should be made\nwhat the able chairman of the commit-\n700.000.000, or one-quarter of the total.\nwe cannot absorb all of them\nManila et taxes for a basts of ability to\nwould sume from them Individuals with\ndollars\" by taxation, especially under .\npay and the people who will\npaying class approximately 11,000,000\nretroactive to all taxable years begin-\ntee far stated, It may the well at this print\nto casi attention to the fact that at the\nincomes of less than $3,000 antrually. If\nprogram such NS that propred which\npay Lhese taxes, as for as we ran. We\ntaxpayers who are now subject to the\nnige after December 31. tom.\nbeginning of the next fiscal year. at the\nthe primary purpose of this revenue leg-\neither exampled completely se drain\nthruld proceed pretty raulionsly. as we\nVictory tax trut not to the regular income\nOur committee also received consider-\nrate = are now spending, the national\nwation had been to cumbat inflation, n\ntically reduced the existing que\na a precurious position.\ntax. The present 20 percent withhold-\nable complaint about many organiza-\nwould have been necessary to levy heavy\nMr. DOUGHTON, The aligible en-\nthe rate is relained.\nUnns which are nuw exempt from Income\ndebt. of the American people will be MI.\nmillions of our citizens harine\nadditional income taxes on those persons\ntially increased amounts of such\nwhich have been made are a n-\nThe bill also made two other changes\ntaxes. Il is very difficult tn secure in-\neral times the total debt of all the other\nenuntries in the world.\nhaving Incomes of $3,000 per pear or les,\neur of the effort to integrate the Victory\nto the Income-tax law. First. it denied\nformation as to these esemest organize-\ngerous dollars.\"\nbreause II la in this group that 61 Der-\nIn an effort to produce event dollar of\ntax with the individual income tax\nthe taxpayer deductions for Federal ex-\ntiens. The bill provides that exempt\nMr. OILCHRIST. Mr. Chairman, will\nthe gentleman yield?\ntent of the increased national income\nrevenue which our economic can par\nThere has been much just complaint\ncase taxis paid in computing pet income.\norganizations must Ble annual returns\nMr. DOUGHTON. 1 gleid la -be PO-\nlies. But that was not our primary par-\nand to avoid passing 4H: to folor 185\nabove the complications of une Invoice-\nIn general. this will apply to the sidmis-\nof Insome unless they are relide\npore. The Treasury program would\nBox laws, particularly the Individual 10-\ndona LAS, the transportation tax. and\ncorporations or ostain types of educa-\ntieman from lown.\nhave eliminated 9,000,000 Income tax-\ning soldiers, nur cummittes in the\npayers, many of when will DE taxi\nThe tax Under the existing law, a\nthe telephone tax. Must individual tax-\ntional or charitable corputations n is\nMr. GUCHRIST. May 1 ask the Ein-\nCeman if the figures be EATE include\npayers and world have secured & very\n4 years has raised taxes to ao care\nInsparer la required to compute his tax\npayers do not keep recurds of them taxes\nbelieved by this means we will be able to\nsmall part of the pruposed increased Ter-\ndented height. In this consection of\n- three different leases, namely, the\nand our committee was of the opinim\nsecure information to determine whether\nState and mimicipal texation.\nenue from those who have by far the\nhave been fully conscious of our -\nNL 10-1\n10026\nCONGRESSIONAL RECORD-HOUSE\nNOVEMBER 24\nCF nut such organizations are escaping\nOne of the most troublesame festures\nwith which our commiter had to dest\nthank time extitlemen,\nMr. MOCORMACK Mr. Chairman,\n1943\nCONGRESSIONAL RECORD-HOUSE\n10027\ntheir fair share of the tax burden.\nAuthorished partlemen trum Minne-\nMr. WHITE Mr. Chairman, will the\nMon of the tax bill of 1042 the question\nWith respect to exclain, the revenue\nwas that relating to of oon-\nyield? Mr. WHITE Will the gentlemie\nand and New York [Mr. KNUTSON and\ngentleman your\ncame up as to why we should not do\nwas increased by $1.202.000,000. The\ntracts A was appointed\nMr. mel. pot exactly like any of us\nMr. DOUGHTON. I girld to the -\nsomething about adjusting these postage\nrate on distilled spirita was increased\nte prepare s report on this malter and I\nfrom 00 a gallen to $9 a gallon; on berr,\ntisman from Idaho,\nMr. DOUGHTON. I giald to the in.\nworld have written IL but It is . bill we\ntleman from Idaho,\nnte to secure additional revenue The\nmay (a) that they performed an excel-\ngo sime with, it is the anly bill that\nMr. WHITE I approve the raising of\nPost Office Department stated they were\nfrom $7 to se a barrel, and there sete\nlent job, working with lirelese energy.\nMr. WHITE I vant to refer to title\nwould summand the majority of the votes\nthe third-class mail rate, hus the only\nstudying the matter, bus on report has\nalso sight Increases in the with tax.\nIf was discinsed in our bearings that\nIV, the postal rates,\net the summittre and it takes a majority\nthing I want exempled to religious pub-\nbeen rendered up to the present time,\nOther articles subject to increased taxes\nmany contractors had just grounds for\nMr. DOUGHTON, I will come to that\nof Its committee to report any bill. If\nBeations. I approve of what the com-\nMr. HARTLEY. Mr. Chairmen, will\nwere electric light builbs, jewdry, tun,\ncomplaining about the way in which the\na little later.\nI BOX writing the bill, perhaps I would\nmilter has done\nthe gentleman yield?\ntolles preparations, (elephones,\npresent renegotiation law is adminis-\nMr. WHITE I un walling patiently\npart sritten IS & little differently, but\nMr. DOUGHTON, That matier will\nMr. DOUGHTON. I will state after I\ntransperiation taxes, admission used,\ntered. We have grime $ long way in this\nfor that.\nthere La nothing In this bill Ret 1 cannot\nundoubtedly be given consideration be-\npil through with my speech. 1 am Dry-\nextrarets, club dues, bowing alleys, and\nbeit toward removing many of the\nMr. DOUGHTON, I Am going to take\naccountantly and willingly support.\nfore the bill becomes law.\nthe to complete is now and must decline\nbilliard and pool tables.\ngrounds for the complaints which were\nthat up later.\nWe e(m) new to the postage rates.\nMr. WHITE If they have an a.\nto visid.\nA tax on part-motuels betting at the\ndirected against the present procedure,\nMr. WHITE Before the entitlemento\nor we did not have time to study\nemption under resend-clam it is fair that\nI am sorry I have not been able to go\nrate of 5 percent was alan simpled as\nby placing the Government and the war\nInformation concludes, I want to with a question for\nthe velize postal schedule and 11 would\nthey should have an exemption under\nminro into detail In the explanation of\nyour committee and the tax on\nsentractor upon 6 more nearly equal\n- lieve changed and rates in the portal\nthis hill. Quite . number of the members\nthe transportation of property was T4)-\nfooting. The chairman of the subcom-\nMr. DOUGHTON, All right,\nschedule bad it not been for the need for\nMr. DOUGHTON. Taxe are not very\nof the committee est follow me, and I\ntalmed and extended to parcel post The\nmilter, the gentleman from Oklahoma\nMr. WHITE My question - to the\napproval revenue. Everybody knnes\npopular and THE always ni Into trouble\nam sure that what I lack they will gisdly\non present exclases, and the new\n[Mr. will discuss in detail the\nexemptions on the increase in possiage\nthe the rates on postage-fist-, second-,\nwhenever we increase e tax or impose .\nmake MD, and answer questions. I have\ntaxes, are temporary and will expire\nrenegotiation provisions of the bill.\non religious publications. I Title that\nand teard-class mill matter, and all\nnew as. There to always somebody\ntaken enough time.\nafter the war.\nMr. McCORMACK. Mr. Chairman,\nyou have made an increue, doubled the\n- el mail matter-hare been mit of\nAustra they cannot stand an Increase or\nMr JENSEN. Mr. Chairman, will the\nMr. REED of Now York. Mr. Chair-\nwill the gentleman sield?\nthird-class rate, but you have nel\nadvalment for 6. long time. Bark tn\ncannot pay the additional cax. You\ngentlaman you!d?\nman will the geotleman your\nMr. DOUGHTON. I yield to my de-\ntouched the second-clais rate, 1 an\n1917. m) entinguished predecessor, Hom.\ncannot win a war, you cannot Busnce\nMr. DOUGHTON. I yirld to the gen-\nMr. DOUGHTON. I yield to the pip-\ntinaulibed friend from Massachusetts.\nwondering If if would not be word policy\nCuite Enchio-no ables or greater man\nthe Government, you cannot carry on\ntheman from town\ntleman from New York,\nto eximpt religious publications under\never in this body en ever stopd in\nthe economy of the country and Mt invo\nMr. JENSEN. The gentleman said\nMr. REED of New York. Mr. Chair-\nMr. McCORMACE, Due to the fact\nthe third-class rate from the Increase\nthe will of this House-hed something to\nery taxpayer write his own tax bill.\nthat much of the third-class mail to net.\nman, 1 MI ACETS la interrupt the gentle-\nthat By dislinguisbed friend the chair-\nman of the committes has yislded now, I\nTarre ta no provision in the law the\nAND on this matier. I have also heard\nThat cannot la dons. Bus the do give\nand important.\nman because be La making an excellent\nsovering that,\nmay H7 (Dat I falked with the sentle-\nthe Innorable 200 Cannon, sho was .\nas careful consideration All we can to\nMr. DOUGHTON. The gentleman\npresentation, and I congratulate ham\nmas . Inc days año about a committee\nMr. DOUGHTON. If they are nel to\nnot debiter also. On one be\nall the witnesses that come before us with\nsays It SAP\nupon a but this question has brea wind\nby a number of Members and 1 assume\namendment I rewited the stiuation and\nexempted. I as no reason say the third-\nlaid BY for as be knew Claude Klishin\nrespect to Increased or new taxes\nMr. JENEEN. Yes. I have a munher\ndifficultr of considering too many cram-\nclass Increase should seply to registed\nhad no agual, as . debater. He called the\nMr. HARTLEY. Mr. Chairman, will\nof purerve in try district who sell ind\nit is of some importance to know the\npublications.\nmilter emendments, so I agreed not to\nof the country to the fact at\nthe centleman Field?\nand nursery guods.\nanswer in replying to the lettern of in-\nhave the matter pressed at this time but\nMr. WHITE We cannot Amend this\nthat that ever 26 years ago, these portal\nMr. DODGETON. yirld to the pro-\nMr. DOUGHTON If sould nut vield.\nquiry. The question has been anted M\nI should las to and ufy friend's reaction\nbill, trus the provisions of the au \" an\nBAN quent tall be adjusted. How much\ndeman from New Jesus,\nfor a question. 1 carmot yield for a\nto when the provisions of De tax bill will\nnow considering will double the postage\n- a he sald me were Josing at that\nMr. HARTLEY, In view of the fact\nto IC.\nspeech. We have taken actim. If the\ntake effect. The gentleman will sota\nrate on religious publications.\n-\nthat the gentieman's committee has tak-\ngentleman will en inform the Senate\nthat the different provisions take\nUnder the present law members of the\nMr. DOUGHTON. It II too late to\nMi. COOPER Il was M years ago.\nen over the writing of postal rates—\nFinance Commitiee and CONTINOP that\nat different times, 1 have here a little\narmed turues are allowed a special de-\nthink about that now. We estinos die\nMr. DOUGHTON. We have not done\nbaty that se have made & mistake, as\nduestion from erom income of DO much\nTwo 630 Le 1919.\nmemerandum which abows the effective\nconsider it thoroughly enclugh la de\nthat; I bes the gentleman's purdon.\nof their compensation for active service\nMr. DOUGHTON. Yes; 26 years sgo.\n- often do-for we are not infallite-\ndate of sach provision.\nIt as - committee amendment. but metti\nMr. HARTLEY. In view of the fact\nMr. DOUGHTON In this\nMI COOPER, Bis sperch gave com-\nthe gentleman will have hu opportunity\nin the present was as does not exceed\nan amendment may be offered in the\nthat you have gone into third-cleo ratel,\nbill if enacted into law, will Income et-\n$1,500 in any year. My suggestion IS-\nstatements u to the amount\nthere If the Benale decides we have\nSenste and if it appeals tal mur conderers\nwhich DAF 15 peromi of their freight,\nthat est lost. Il showed that some of\nmade 6. mistake, our conternes will at\nfective December 31, IHI.\nand I hope that the Senate puts is in the\ntot and that the House conferees will\nwe can adopt it then.\nwhy aid you tost go into the question et\nthe jusye magazines and periodicala of\nleast be open-minded and fair-minded.\nMr. REED of New York. Bid the dif-\nMr. WHITE The chilr-\nrevising the second-class rates, which\nferent provisions in the bill tenane of-\naccept It-that similar relief be granted\nthe were receiving subsidies\nIf WE have made - mistake, we will be\nman of the Ways and Moans Committee\npar only 25 percent?\nname from a quarter of a million to\nof naget as can be to restity it.\nfective on different dates. E Insue the\nwith rimpect to so much of the earned\nwould be in fevor of exempting religio\nMr. DOOGHTON. The committee eid\n. hair-milion dollars, some of them up\nMr. JENSEN. I thank the gentleman.\ndates here If the emileman cares to a\nincome received by them during the\npublications?\nnot consider that third-class mail matter\nM web as four ar five million dollars a\nMr. DOUGHTON. In entidualen I\nsert them in en remarks,\nperiod of I year after their discharge\nMr. DOUGHTON As for as I under-\nwas of equal importance, of equal value\nMr. DOUGHTON If there la any\nfrom the service as does not exceed 81,-\n2007,\nto the American people, and of equal dis-\nwid to state while your committee ne-\n500, Bach an amendment would aford\nstand 1% now, yes. Of ourse, there may\nquestion about is I will insert that at this\nMr DOUGHTON. Now about this\nthe desirabilità of kerping the\nsubstantial rest to the strvicemen and\nbe tech vical remons why such in ciemp-\nnity with second-class mail matter. It\npoint In the Record\nmail matter, there seems to\nis mostly advertisements. You get .\npublic debt at * eminimum and paying NE\ntion in not finable.\nMr. Chairman, the question has leen\n1 underwand there would be nu immedi-\nMr. WHITE This b Jult matter of\nbe differtance about that The\npublication that pays third-clase portage\nmuch of the of the war as to con-\nestant as to when the provodons of the\nshe for of revenue for any Inie would be\npostal rates. You have extended # to\nmail matter has tick paid its\nand nine-tenths of # la pure advertising.\nsistently possible out of current reve-\nlax bill will take effect.\noffast by the economic advantages re-\nsecond-class rates and I cansot ARE sur\nway, neither has the arcond-class, for\nI think that class of mail matter can at\nDUEI, It le also kenly sware of the fact\nthat too heavy a tas burden is as grest\nIn the provisions relating to\nsulting from such a policy of post-war\npain, out there is a difference between\nrehabilitation I wonder if my distin-\nreason for not extending It to\nthis time pay something.\nthe individual Income tax and to or-\nFiresd- and third-class mail matter.\nMr. COOPER. Mr. Chilrman, will the\na danger to the Nailon's economs as is\nrates.\npersion taxths become effective January\nThe Mond-class mail maus is mostly\ntoo large a pulitic debt. Certainly we\nendor friend would care to make an\nMr. DOUGHTON, Perhaps lhe -\ngentleman yield?\nall news and material of educational\nMr. DOUGHTOR I yield to the sun-\nshould pot pus m'to Suture taxpayers,\n1, 1044. In other words they are DA to\nobservation as this time on each an\nbe retroactive,\nGeman is correct.\namendment ate? If n is by the Ben-\nvalue, while the third-class matter la\ntiemen prom Tennessee.\nmany et whom will le DUE returning ati-\nThe EXCM tax increases will Income\nMr. WHITE The gentleman aid 15\ngo inte the stamp tax at all, the postion\nmay of an advertising nature, books and\nMr. COOPER. I think Il might be ap-\ndem, later that we ourselves should pay,\neffective - like fire day of the first\nMr. DODORTOS. To response to the\nestatops, To the last 15 years third-\npropriate for the chairman to point out\nbut neitber should we pms an to these à\nmonth which Degins mure than DE days\nof a tax on money orders for\nmatement of the distingulahed majority\na mail matter has enjoyed & subsidy\nin resis to the inquiry that has just been\nbusiness structure All wermed by heary\nafter the date of enactment of the hill\nMr. DOUGHTON. We labed and\nleader I may say that on the face of the\npresented M so who the committee S&W\ntaxas that is will be unable to carry on\n⑉ the expense of the taxpayers of the\nThus, if the be becomes las by Diem-\nproposition and what study I have had\neverything.\nVolne States of at least $250.000.000,\nfis 10 make at least some adjustment in\nto the port-war period,\nber 10. the exclare taxes would be effective\ntime to give II, It la my sudgement that It\nMr. WHITE That was done in the\nPro 1942 it 9M about $24,000,000.\nthem postage rate matien that there is\nWhen this will has besn son. and God\nJanuary 1. u. however, the bill is not\nwould be a TOTY worthy change to make\nlast war when we had much\nWe have increased the taxes 00 trans-\nnot soly deuire to invade the perugatives\ngrant n be at an early data, we want\nsigned untill December 26, the Excises\nIn our present law, I would, of course,\nture than we have now.\nDirlation of persons, on telephones and\nof the great Committee on the Post Office\nthe business and industry sil the Nation\nwould net benome effective until Peb-\nMr. DOUGHTON. Almost enverythise\nand Pest Roads, but the fact remains\nin . condition which will mable If to\nTURTT 1.\nwant to take the matter to our commit-\nTelegraph message, on freight shipments\nthe for the comsideration. I will say to\nin the tax hall that could be considered-\nof food and tarm materials, and of the\nthat for 28 years this attention has ex-\noffer the grostest measure et opportunity\nThe postal increases will tab effect\nthe distinguished majurity leader that\nthat had any relation or en iss\nDirectives of life, and why should not\nlated end neibing has been done about 15.\nand employment to those who are now\non the 30th day wher the date of mad-\nwhile the bill is in the Senate and before\nmatter-was considered and discossed\nthose enjoying the third-class mailing\nby that great and distinguisbed commit-\noffering life's fullest missure of devo-\ntuent.\nn goes to reference I will attempt to\nin our committee. DE course, time bill\ncall the commities together and take up\nla not & bill that any con person would\nprovide be called on to pay a Ittle ad-\nles. Il was thought that a. start should\ntion to our country on the far-sway\nThe changes in the rensentiation law\nAllonal for revenue purposes? They\nbe made by somebody and not let the\nhaitleBelds of the world,\nwill be effective en the main as to Direl\nthis and or IL la favorably\nhave written. II is not the the -\nshruld not, complain during this war\nthing run indefinitely in the future.\nI am Inserting at this point a table of\nyears miling after June 30, 1943, II-\nman from Tennessee (Mr. Coomal\nsthergency.\nMr. DOUGHTON. In the considerá-\nexclue taxes and postage rates:\ncept that the court-review provisions are\nconsidered by the committee we will ank\nwould have written it, or my distribute\nmade retroactive to CIVIN all past n.\nthe Finance Committee of the Senste the\nguished friend the gestleman gon\nnegotiations.\nbill. Incorporate B M an smendment to our\nArkansas (Mr. Minis), or the penDenió\nfrom Virginia [Mr. Rosemeal, of de\n10028\nCONGRESSIONAL RECORD-HOUSE\nNOVEMBER 24\n1943\nCONGRESSIONAL RECORD-HOUSE\n10029\nbron and person réint\nunder the great middle class, which\ntable shows that no matter how much a\nMr. ENUTSON. That la right. But I\nis the nulwark of the Nation. It would\nman earne to 1944 and 1945, he cannot\nwill my to the gentleman from California\nEmployer\nthe the future solvency of all bust-\nhave more than $24,000 left. after taxes,\nH burta just as much.\n-\n- imperil cavings, and jespardise the\nand in fact he may wind up owing the\nMr. VOORHIS of California. No\nmissing\nlas - end rate\nProposed tax fam sui name\nWhite -\npail-war continuation of privale enter-\nTreasury even more than his total In-\ndoubt; but I think that might to be\nI las\ngive Moreover. It would destroy the a.\ncome for these a years. The taile fnl-\nmade clear to the Committee.\n/\net\nnot\nand of the American way of life. which\nlows:\nMr. KNUTSON. Yes: I was coming\nnot armed torces are puw heroleally bat-\nto that too, as we say in committee.\nTaxa burden AND 1944\n3. District\n#: - pas of 0.75 per plus -\nto DI allo of as per talks\n[ling to maintain and presirve.\nMr. CURTIS. WE the artiemen\n- simint,\n67 -\nWe Republicans are determined to pre-\nand 1941, net Victory far and\na PM him!\none-half of un/orgines 1342 DER (conoming\nDate\nWith\nName\nent and encourage free enterprise and\nso change in MI income)-Matried person,\nMr. ENUTSON. I yield.\nall\n- - año\n\" notr are pão\nreportunity in America, not destroy\n- dependents\nMr. CURTIS. Is this tax that is In\nl'ister LE print\nDIE by excestre taxation. When the\ncarem of Income considered an Income\nthe prive\nan entre - alin\nin unter - mine\ntime R\nN ENT -\nE pm gillin,\nmillians of men in the armed forces come\nNA - for\n1\ntax? Dr what authority can your com-\nis - per MI pai\n18 - - half plat\nborn -\ninto per LAV par\n13 em per hair past\ntack from the far-flune trattle fronte\nAre permissional\nVictory, and\ncalsing\nmittee impose an income TAX beyond\nfiller\nEXP-\nrate\nNew - -\nyemil di - para\na provide of - - in are\nVI eart them to find:\nexcepte\n184\nincome?\nlargiren last\n18 permit et reali nie\n. - M mini prime\n---\n(vide)\npermit N\nnot That jobe at gnod wages are\nMr. KNUTSON. Well, as the gentie-\nFay MM -\nis need if voins price on -\n---\n-\n(pril to them\nman from California called stiention to.\nPersonal\none\nThat the door of opportanity\n$7,200\nn.a\nLTD\nin 1944 and 1945 we pay the full tax,\n19 - of - prixe\n= nut been closed to their atemos.\n$1,500\n76.39\n3.00\ncan\nplus 12% percent. which la one-half of\n12.54\nKTA\nune\nI\nI\nn prove of EME\nIS - of\n---\nThird. That wasteful spending has\n12.00\n20.43\nthe 25 percent unstruted portion of the\n-\nas permed of date\na permet will date\ntes itamped out.\nU.S.\nDLI\n12.024\nLINE\n1942 tax.\nis patient N NAME\nel charge\nIS - of care,\nFourth That the American way of life\nIMP\n- - miss\n4.00\nnan\n1249\nMr. CURTIS. Regardiesa of what you\nof (harge\npermit of -\ntur bee presented.\n991.28\ncall 11. it a all a tax Impased by this\n1\nÀ power of 1 for vile.\nperson of sharge for\n1,58 %\nGovernment\nE\n10 perventi of dure\n11 Director of de\nIf America a to remain a land of op-\n18\n- pervent of scient past, 1 A POCA start\nSexe\n$15,000\nNE\nI\n, mir tax la will who\nmust put a stop to the Joose\ntax\nT.00 M\nam\n15,000.20\nMr. KNUTHON. Regardiess of what\n!\nXX\npress pricies of the present administra-\n11,197.13\n4LTA\nyou call it, 11 comes out of the works\n0,00\nare\n1 - - n/a nur - being limit\nmb le est » and - Institution Unrel\num fine extravagent and wasteful\npooket.\nI\nIN perced et durps\npendi of claims\nMM\nMr. BOWE. will the\nis\npervot. di these\na provided of charge\nspendings have been sue-\n$200.00\nN.O.\nIf - of hap\n= - of -\ncovited by squally reckless expenditures\n$210,000\n291,191.04\n-\nAND\nyield?\n- en\n4\n-\nsins -\nPAGE\nfor war. Our Malion is today spending\n$300.000\num\n1,000\nMr. ENUTSON I gield.\nBE\nto per Mile.\n-DMP\nexam\ncare for military purposes than the\nMr. HOWE. Has the gentieman ne-\nà permits at - -\nzag\n18.01\n-1,18.00\nUnited Kingdom, Germany. and\ntermined what would be assessed against\n1 I 1\nSapan combined. Various congressional\na million or two-million-dollar Income in\nif. Preva\ninto war spendjngs have dia-\nthe absence of the 14% percent? I think\nclass\nI-mis (XT - land\n1 eno - -\nchard that money is being squapdered\nNo Venery tax magetel . - - - in\nthat, too, should be part of the record,\n-\nMt tool\n-\n1\nI\n. per -\n- - Imps.\nTrad -\nuse\nen every hand, not only for milliary cup-\nMr. ENUTSON The regular tax is\net TMI - se not\n2 sen - la - : -\nName -\nTHE\nis D miss - onler, amount\n19 to ones\nI all attention to Income of $750,000\n$000,000 en en income of $1.000,000 and\nProject\nplum ou in excess of needs. but for Items\n- IF D pm\na resta - B. IN - Mide\nUnited mil\nLAUR\nto as TVT\nbesine no direct connection with the\nand more. 1L will be noted that tn these\n$1,800,000 en an meams of $2,000,000\nis a = mis una arick\nC, DAL\n----\n14 EM Der male\n34 critis for pr article\n1.00.00\nwar effort. The action of the Wat Dt-\ninstance the tax collector lakes all and\nMr. ORCHRIST, Will the gentleman\nThis miss\npartment in turning back to the Tris-\nthen some Rre is that for distributing\nyield?\n---\nthe wealth?\nMr. KNUTSON I yield.\nOrgan tud\nsury some thirteen billines of its appro-\nMr. REED of New York. Will the gen-\nMr. GILCHRIST. Do the figures you\n---\nprintions shows that the present $357.-\n000.000.000 war program is far in PECESS\nUeman yield?\nhave set forth include State taxes and\nel - All M Twith From at et levels of Insure in pref. THE\nof needs. No doubt other service depart-\nMr. KNUTSON 1 yield to my good\nmunicipal taxes?\na - e - und de moving Registro part - the with main air IN h the Peti Office Dearmic\nMr. KNUTSON. No: they just include\nments could make similar refunds with-\nfriend.\nMr.\nENUTEON\nChairman,\nI\nIn defesting the administration's pro-\nout in any way impairing the war effort.\nMr. REED of New York, As a matter\nwhat you owe your Unde Samuel.\nMr.\nthat this was but nne of many deseptions\nMr. GILCHRIST. On tep of all you\nyield mult such time as I may require.\ngram in committee, we have lived up to\non the part et the administration, and\nThere Le no doubt in my mind but what\net fact, there are several bracketa where\nhave said, they will have to par addi-\nMr. Chairman, the pending tax - la\nthat protitise The bill which has been\nsn investigation of lend-lease allotments\nhe will cive the Government more than\nbut one at an endicas procession of major\nis this connection, Mr. Taxpayer, who if\ntional State and municipal taxes?\nreported by the committee raises but\nthe forgotten man under the present id-\nto many nonbelliserent foreign coun-\nhe earns.\nMr. ENUTSON. Yes, It would be\nrevenue Beasures since 1933.\nnow-Bith of the amount requested by\nministration, is recaliting the duest\nIries, particularly in Bouth and Central\nMr. KNUTSON. Yes: I thank the\nmuch cheaper for a. millionsire to take\nIn this period Use tax burden of the\nthe administration, and most of this sure\nwords of a certain candidate for Presi-\nAmirica, would disclose that many bill-\ngentleman, I are coming to that\nAmerican people has been increased\nwill come from Increased excise levies\nThe poor chap who has an income of\nthe bankrupter cure.\ndent in 1932, who mid:\nliens are being poured out for such non-\ntwentyfrid-ireen two billions annually\nun loxury and semiluxury items.\n$2,100,000-and I DEVER expected to live\nMr. MICHENER. Will (be gentleman\nTrave are paid in the sweet of every ná\nmilliary purposes as the construction of\nto a present total of more than farty\nyield?\nFrom now on the motto promulgated\nwho labora\nso sericultural college in Costa Rica, for\nto in the day 1 would commiserate with\nbillions.\nexample, road building, sanitation, and\na man having en Income of one or two\nMr. KNUTSON. I yield.\nThe time has come stro we have starus\nby the great spender, Harry Hopkins,\nEven Santa Claus will In time pall sa\n\"Tax and tax. spend and spend, elect and\nmillion dollars, but, of course, 1 could not\nMr. MICHENER. ww you insurt in\nniher unrelated grajects. Our people\nreached the bottom of the barrel 80 for\nelect.\" is out. The people very de-\nthe people if be has nothing but error\nent this sort of spending stopped. and\nformer the New Deal.\nthe RECORD the amount of Lorome tax an\n42 the possibility of securing additional\npuffa and marshmallows to affer.\nGetting track to the poor devil who bas\nindividual with $150,000 income for the\nrevenues is concerned. There la . lianit\nclaively name to this decision In Novem-\nchipped now.\nThe people, straining under the pres-\nTime Dax shown that we CAD tvo longer\nan inosine of $1,000,000 to 1944 or 1945.\ncoming year will be compelled to pay?\nto the people's ability to pay taxes, erea\nber 1942 and seain on November 2 of this\nyear. We of the Republican minority\nent heavy tax burden, are beginning\ncaluly delegate. without supervision, the\nhe will not only have to pay to $2,000.-\nMr. ENUTBON. He will have to DAY\nIn time of war. During the part 4 years\nwill do all in our power to trase It torn-\nmore and more to realize that there in\nconding of the taxpayer's hard-earned\nbut he will have to pay $10,730 on\n$127,155.13 If be a a married man with\nthey have had to absorb particularly\nplately from the Nation's escutcheon. We\nno such thing as something for nothfar.\nmany to Individuals in the executive\ntvo dependents. I suppose the 13 centa\ntop et that,\ndrastic increases to meet the stassering\nhave already given notice that, so far as\nSomebody must pay, and at is always the\nwho labor under the delusion\nThen we come to the hopeless bank-\nla to show that he is out of luck.\nwar costs, and they have not had Lime to\nwe are concerned, we will not give con-\nconsumer. He pays both in visible taxes\nthat the money the Government pays out\nrupt who Das an income of 85,000,000 in\nMr. MICHENER newspaper in\nadjust themselves to une intrease before\nD the product of printing presses when\nmy district stated that a man with an\nelderation to IDE imposition of additional\nand through \"hidden\" Jeries.\n1944 and 1945. He la going to pay $45.-\nanother even greater one has been piled\ntaxes upon the people until the adminis-\nIn the consideration of the products\nany schoolboy knows that every eent the\nTHE in addition to the $5,000,000. So\nof $150,000 would be compailed\non. Now the administration wants to\nbill the committee ENTR careful study nt\ntration has first eliminated all waste\nGovernment expends must at one time or\nwhat Reserveit ought to do la pay Enr\nto pay about 99 percent. and that he\nadd ten and one-half billions more,\nand extravagance in Dovernment spend-\nonly to the probable effect of threame\nsnother, in one form or another, be\nmore millionsires to rue threugh the\nwould have but $15,000 left on which to\nmostly by sharp increases in the already\ning and than only If it be absolutely MIC-\nthxes upon the Nation's present\nwrong from the people in taxes.\nlive.\neringer.\nburdensome personal income tat.\nbut upon the future at well.\nI shall not spend any time in justify-\nMr. VOORHTS of California Will the\nMr. KNUTSON. On $130,0007\nessary.\nWhen the administration's tax pro-\nChief Justice Marshall's dictam that\nthe lbe committee's action in relecting\ngentleman yield?\nMr. MICHENER Yes\ngram was proposed early In October, the\nThere la en old anying that \"chickens\n\"the power to tax is the power to e\nthe Treasury's proposal for drastic in-\nstroy\" is no less true today than -\ncreases in the personal income tax. other\nMr. KNUTSON. I yield,\nMr. KNUTSON No. That might DC-\nRepublican members of the Wass and\ncare home to roust,\" and that la surely\nMeans Committee took a strong stand in\ntrue so far as ft applies to the adminis-\nultered durina the early days of the Re-\nthan to refer to the tellowife table,\nMr. VOORHIS of California That\n19 under the Treasury plan, which the\nfration's wasteful spending. Per years\nwhich discloses that despite all the loose\neumes about. dos is not, because of the\ncommittee rejected. It is all a part of\nupportion and assured the people that,\npublic. The Republican minority un the\nthe Average man has born told that he\nfact that taxpagers are required to pay\n(be elsborate plan to distribute the\nso far as we were concerned, there would\nWays and Means Committee believe that\ntale we have heard about the need for\nbe no increase in the personal income\nneed have no worry about what amount\nto increase taxes by ten and coe-ball\nputting A limit on incomes in wartime,\n12% persent of their 1942 income at the\nwealth. They stole Huey Long's furmula.\nwas being spent by the Government to\nbillions as proposed by the administra-\nsame time as they are paying current\nThey took that over as a part of bis\ntax or in the tax an the normal earnínes\none eristing tax laws have already\nof business. Having unanimously Joined\nWashington since the other fellow would\ntion would be a destructive act. In our\nBrought about such & limitation. This\ntaxes?\nestate,\nbe taxed to pay the bill Now he knows\nopinion, this additional burden world\n10030\nCONGRESSIONAL RECORD-HOUSE\nNOVEMBER 24\n1943\nCONGRESSIONAL RECORD-HOUSE\n10031\nMr. O'CONNOR Mr. Chairman, will\nMr. KNOTHON. Yes, I can do that\nMr. o'comsion. No: that still does\nurtes, they are going In for education,\ntax windfall fur the previous year. If there a\nI want le close with 1 little philosephy,\nthe sentleman yield?\nA married man with sn Income of $2.500\nall survice my question.\nand you will destroy the taxes which you\nthan I shall yuld the floor.\nMr. KNUTEON. I yield to my friend.\nwill par $825.61 in 1984. A man with &\nthe is la taxed in full and, of kny\nthe is always B) gradous to ma when 1\n$5,000 inrome will pay 8081.20. On\nprovent any Laz avaidance.\nestate and Inheritance taxes NO costrye. also\nMr. JOUTSON. Well, that is Just\nintend to try to gst. 3: seems to me that\nIf the Republican Party maintains the\nvisit the is talking about.\nthe theater pationa who DATE lasse, if\nprocent strength in the Congress, or\nappear before his constitutes, I want to\n$10,000 the tax will be $2,728.02 Now,\nHe appears to be resentful because We\nthey are excessive, will not go and you\nkeep as credit good.\nwe are getting up into the efficient class.\ngentleman strid?\nMr. NOWE. Mr. Chairman will the\nmakes gains in the next election, the\nhave fixed it si that wigen be staps hav-\nwill destrey not only the privilege of\ncountry can confidently look forward to\nMr. O'CONNOR. I thank the gentle-\nMr. DONDERO. Are those percent-\nMr. ENUTHON I ridd.\njoy un inrome or when be did be would\ngoing to the Guater, but you/will alan\nreductions of taxes to the future. rather\nman for these remarks. It is very Inter-\nages an increase or decrease over what\nesting to me to bote that the $3,000,000\nthey were to 19427\ngo in the Record at this point. What\nMr. ROWE. I think one thing should\nin eyed with the board.\ndestrop the Chesters in the smaller\nthan continual increases. Certainly, as\nMr. O'CONNOR No: But I will try-\ntowns.\nsoon sa hostillies to the present var\nIncome samer is exing to pay more in\nMr. ENUTSON. They are sin increase,\nMr. KNUTSON. The gentleman from\never the forgivence was under for Runi\nthe to protect the Treasury when we had\ncease, immediate attention will be given\nthe future than what his Income amounts\nstane they include one-half the carry-\nfor WILL before us last year. When the\nOkishoma la absolutely right His state-\nto the revision of our whole tax strue-\nto. I am wondering bow much the man\nGNET from the unabated 2942 liability.\nplan It did net differentate Delevery\nearning. dividuals regardiese of their stating in- M\ndepression comes, when we will no longer\nment shows be to a men of discerniment.\ntrurs with & view to the realization of\nwhose income is $5,000,000 et2 pay in the\nMr. DONDERO, About how much to\nhave include, we will still need taxes.\nI expressed similar views before the com-\nmaximum revenues consistent with the\nneat year. and also how moch et that\npercentage?\nMr. KNUTSON. How is that?\nMr. ENUTSON. Somehody will step\nmitter in executive assinn.\nlesst Intecterence with Individual and\n65,000,000 be was forgiven by the\nMr. KNUTSON This is the total tax\nisw the evalleman's show and carry on,\nMr. WICKERSHAM. I think the gen-\nplan when the Rund plan was adopted.\nMr. ROWE, I my Whatever forging\nbusiness enterprise. Our tax laws are\nburden.\ntot I hope that will out be for a long,\ntieman from Minnesota was correct.\narchale, cumbermine, and complicated,\nMr. KNUTSON. Well, I thought WP\nMr. CURTIS. Doc that Include the\nnew there may have been under the tax\nbill we passed to forgive pur of the la.\nInc. time\nMr. KNUTSON. Absoliately: bus there\nBound tax principles have lung departed\nhad laid that old short any long aeo.\npercent?\nMr. ENITSON Yes: that includes\ncome tax It Applied to every Wattling =\nMr. CURTIE Will the gentleman\nare those - the oremittee who could\nfrom, and too eften the laxing power has\nnot see IL,\nbeen und for other than revenue pur-\nMr. O'CONNOR, But If will not stay\nof what it wis did it not\nthe 12% percent. Do you want a. nom-\nInto? Mr. KNUTSON: I yield to the gentle-\nMr. MAHON. will the gentieman\nposes. We have seen Issue availed of to\nhidden. D la the Banque's ghart, is con-\nstantly aprines up.\nparmon?\nMr. KNUTSON. It treats all la-\nan (rum Nabraska,\nyield?\npunish taxpayers, for social experimen-\nMr. KNUTEON. suppose It will keep\nMr. DONDERO, Yes: in percentage.\npayers fairly, The plan\ndid not forgive anything, it simply abated\nMr. CURTIN I think # should be\nMr. KNUTHON. grield to Upe gentle-\ntation, and for accomplishing ends other-\nbobbing top es long as II 195 be und se\nThe average taxpayer is Interested to\nserve in mind that if anyune gains un-\nman from Texas.\nwise prohibited by the Constitution. Any\nA. policial football.\nknow how much more he la going to pay\n75 percent of 60 assestment, which \"\nMr. O'CONNOR. No: I am hat talk-\nthis year over 1242; that la, what parcent\ntransferred from the past year to the\nor ID# Raml plan IL is the\nMr. MAHON, The report makes con-\nworth-while revision of the tax laws must\nsmall taxpayer. The large taspayer's\nsiderable reference to . comparison of\nInclude 6. restoration of the principle of\nthe prives.\nmore,\ncurrent year. Forsiving is When DOL la\nwill be taken care of by estate\nthe Income et, rather, the expenditures\ntaxation for revenue only. The Regub-\nMr. ENUTSON or course I would\nMr. KNUTSON. On an income of\nabsolved from bis ans and information\net wis\nfor the war effort by the people in Canada\nlican members of the Ways and Meana\nnot accide my good friend of playing\n$2,000 he pays $187.00 for 1943, That is\nas well as his debta. I Expe to tar in\nCongress long enough 50 that the faity\nMr. INUTSON. of course, whatever\nand the United Kingdom and the people\nCommitter are pleased to support and\npolitics.\nfor a married men. Under the com-\nMr. O'CONNOR New, would the gen-\nmiltee tall be will pay only 8184 for 1944,\nregarding the pay-ma-pou-go-plan may\nbenefits accrue will acctor proportion-\nin the United States. n M pointed out\nbring about this long-preded, mush-li-\nunit nure to the small taspayer than\nthat for war purposes the United King-\nbe-desired tax revision, In A large neu-\ntleman snawer my question?\na saving of $3.93. This does not include\npercolate Into the minds of all Visa us\nwilling to see,\na the the taxpayer and that is the res-\ndem will expend about $23,000,000.000 in\nure, the country's ability to maintain 8\nMr. KNUTSON. Yes: Il ell BORWET\nthe 1219 percent carry-over. Now we\nMr. O'CONNOR. Mr. Chairmen, will\nnn there vas MI much opportion to it.\n1944. and Canada will expend about $5.-\nhigh level of national Innoitre in the port-\nthe gentlemen's question by withing one.\nthe entirman yuld?\nD vas approached parety from a political\n500,000,000 in 1944.\nwar period will depend. as truch upon\nwill take $5,000, Under present law be\nwill the persileman please 1vD the House\nMr. KNUTSON Yes,\nthe adoption of vise tax policies as upon)\npays 8063.35. Under the committee bill\nwhat pear we escaped paying any taxes?\nhe pare 3936, plus the 12% percent\nMr. KNUTSON Igleld to the smile-\nand\nman from Montana.\nMr. MILLER of Connecticut Will the\nMr. MAHON. A much smaller expend-\nany other factor.\nMr. O'CONNOR or come we DEVEC\nMr. O'CONNOR. What I trant to mi\ngestivmen yidd?\nIture relatively speaking than our own\nIn eunclusion, let me my that there\ncarrs-over for 1044 and 1945.\nexcape payéng any taxes.\nat, following through the cirrification\nMr KNUTSON. Eyleld to the gentle-\nexpenditore. Can the gentleman tell us\nis no regal mad to financial independ-\nMr. DONDERO. What does he pay\nMr. ENUTEON Well, what is the dif-\nunder present law?\npar from Cyppeticat.\nwhether or not the national tresime and\nenre, either for the Government or for\nference whether the tax you pay this\nquestion of the distinguished\nMr. MNUTSON Eight hundred and\nvages have skyrocketed in Canada and\nindividuals. It can only be attained by\nyear la calind the 1942 tax or the 1043\nnow In the chair, I feel that lie FOR of\nMr MILLER of Congesticut This\nla the United Kingdom in the last few\nintegrity, frugality, industry. and nod-\nninety-three dollars and ninety-five\n$45,0,0 the entlemen has polated out in\nerätinn. We must adopt these virtues\ntax? Aa far as the Government la con-\nclarified the sentleman's anover to BU\ncenta on $5,060; but all these details are\nquestion which was taiher matured\nthe only forgivenem 1 have found in the\nyears as they have in the United\notreed, the Treasury will continue to\nRuml plan. They pay $45,000 more than\nMr. ENUTSON. I have no late un-\nif we are to groid national and Individ-\nlo the majority report While I had no\non your salary, also on your NO-\nWhat I want to get at is to dear 10 the\nformation, but, as I resail, when we had\nusl bankrupter and change.\npart In preparing the majority report, It\npoint and who pays the $5,040.000 in\nthe ram,\n-\ntheir salury year after year after year,\njust as form as the Republic endures.\ntaxes la still to the good under the en-\nMy ENUTION. Yes, Impose some\"\nthe 1943 revenue bill before the commit-\nMr. Chairman, I now steld to the gen-\nis a very unful document, and I ellegest\ntea it was testified that they had been\nUemen from New York (Mr. Real as\nto the membership that they provide\ntem we now have and under the Runi\nday they will consider operating (fi) our\nMr. O'CONNOR I will tell you when\nthemesive with a copp ned preserve it.\nlest docts so we will not have anything\nable Lo hold the line, as the phrase is now\nmuch time as be may desire.\nthe Ocvernment Total la when I do not\nplan is still to the good in the beighton-\nund, much better in Canada and in the\n(Mr. REED of New York siked and vas\nbecause It Is really . compendum of tax\nearn anything. Tom I am forgiven the\nbeed of $5,003,000.\nto with\nMr. MILLER of Under\nUnited Kingdom than we have because\ngiven permission to revise and extend his\ninfermation that could very whill be Used\ntax which should have been paid when\nMr. KNUTSON How does the por\nthey pot a reiling on wages as well MS on\nown remarks in the Racess.)\nas a texibook in Has Muber institutions\nlieman flaure that?\nthe Runi plan the would have paid\nall commendities.\nMr. KEED of New York Mr. Chair-\nI the earning something. and that la\nof learning.\n1900.000.\nman, I want to make just this prelimi-\nwhen the Government Town under the\nMr. OORE Mr. Chatrman, will the\nMr. O'CONHOR. He had $10,000.000\nMI. ENUT8ON. Yes That la $ very\nMr. MAHON Then per dollar ex-\nRum/ plan.\nincome for the 3 years and para only\npended in Canada and to the Outhod\nDATE statement. I canant reall whether\nyield?\n$5,045,000 in taxis,\ncomi point and I thank the gentleman.\nThronilliman's statement shows be has\nKinsdom they may have gotten more in\nit was in is colleque on the floor er else-\nMr. ENUTSON. Why, you DAY every\nMr. KNUTSON, Certainly I will be\ngind man, to yield to the distingraished gentle-\nMr. KNUTSON. What year daes be\nproduction?\nwhere, but there was same criticism al-\nyear that you tard something. That is\nder and good understanding.\nMr. ENUTSON. Possibly en.\nrected sgainst the members et the Ways\nthe brauty of the pay-us-we-earn plan,\nnot pay a tax?\nMr. MILLER of Connecticut. The\nMr. DONDERO, win the gentleman\nand Means Committee in that the nam-\nthat when you do not earn, when the\nMr. GORE, 1 did not quite set the\nMr. O'CONNOR That le not Be\nfrom Microsots should\npeople in thru whidom say, \"Vim, we\nyield?\nbera of that committee, some 25 is num-\n#intirman's to the question pro-\nquestion.\nnel WINTY about the fellow earnine\nMr. KNOTHON Briefly.\nber, utilized so much time that the\nlove pou ad much en want to keep you BE\nprovided by the gentleman from Mon-\nMr. ENUTSON. « certainly a The\n$5,000,000.\nMr. DONDERO. Does the bill set. &\nyounger Members of the House fall to\nhome.\" then you do not have to pay\ntans Mr. This taxpayer\nTreasury la only interested in\nMr. BOWE I think at this late day\nthey are not interested in academic\nI have learned about Int-\nfloor to the price of admission to theaters\nget. an opportunity to speak on import-\nany to Or If por should die, Mrs.\nO'Canner vill not have to sull the old\nwho la paying $45,000 a year more than\nbelow which there is mm tax - the tax\nast measures, and particularly such a\nDe varns had to earn how much this\nquestions.\nCireness,\nfamily bonestend in order to pay Uncia\nincrease does not apply?\none -- this tax bill. That, I know, was\nBam last year's taxes\nmore? year In order to be obliged to pay $65,000\nMr. O'CONNOR My question is\nMr. KNUTSON. De not use the word\nMr. KNUTSON. No. The tax to now\nmade in good faith. and I have DO objes-\nwhether be Lai not etail 85,000,000 to the\nUse the word \"abate-\n1 cent for each 10 centa or fraction there-\ntion to it. 1 think there la much to be\nMr. OCONSOR New, will you go\nMr. ENUTBON $5,000,000.\ngood.\nmail.\"\nback and stiver the question I Baked\nof. The bill fines the rate at 3 centa for\nsaid in that respect, at least so for se I\nyou?\nMr. CORE What part of that 65,-\nMr. KNOTSON. No: of course be is\nMr. ROWE I think IL la applicable\neach in double.\nam personally concerned. I have -\n045,000 Is taxes m the $5.000,000 be\nnot, because he will have paid just as\nhere The actroal of what we have given\nMr. DONDERO. That applies en all\ndeubtedly taken more time in debate\nMr. ENUTSON. I have answered It,\nearned last part\nbut If the gentleman dors not under-\nmuch this FEAT under the old plan or M\na what constitutes the surplus in income\nadmissions, whether is la 10 centa or 30\nthan I should have done un some of Items\nstand It. I cannot help that\nMr. KNUTSON. Last year he would\nwould under the plant\nthat is gome to the Treasury.\nbills in which 1 have tern intensely In-\ncenta?\nhave paid $4,499,000.\nconsequently the Treasury has list\nMr. ENUTSON. Yes, that is right.\nand to which I have given a\nMr. DONDERO. Mr. Chairman, will\nMr. WICKERSHAM- will the gentle-\nthe gentleman yield?\nMr. GORE. I know, but what part of\nmag yvia?\nMr. DONDERO. There has being some\ngreat deal of study, so I shall endeavur\nanything\nthis 000 la payment on his Innume\nnot to diend on this occasion.\nMr. KNUTSON, I Field.\nof last rust\nMr. O'CONNOR. When the Treasury\nMr. KNUTSON. I girld to the genale-\nopposition voiced to that provision, the\nMr. DONDERO. The gentleman has\nstarts to lose is when the depresdos\nclaim being made It punishes the poor\nMr. Chairman. more than 15 years\nMr. KNUTSON 8546,000 le the carry-\nthan from Oktahoma,\ndescribed to the House what happens to\nMr. WICKERSHAM. realize it in de-\nman's diversion and some people think IS\nhave come and gene since Franklin D.\nwithin and income crase: that is when\n& man with n salary of $150,000, will\nnver, belog one-half of the unabated\nliability,\nthe Treasury starts losting carder the\nis WIODE in principle.\nRoosevell took na charge of the execu-\nstred to et all the revenue passible, but\nRami blan.\nI Seure in one instance they are going to\nMr. or ocurse, M the\nLive branch of the Ouvernment, and M-\n300 return to what the average Ameri-\ncan reselves, about three er four no Dve\nMr. GORE Then be has earned 010-\nMr. KNUTSON The Treasury will\ngentleman from Oklahoma ao well\nsumed responsibility for the fiscal affairs.\nthousand and tall the House what his\n001,000 and la paying 85,040,000 taxes?\nInne ema af this new tax. I refer ta the\nlose nothing, but I suppose is will brind\npointed out, in the smaller communities\nWe have before the Bouse today another\nlittle thesters because If one patron out\ntax will be this soming year?\nMr. KNUTSON. No. out of the $5,000,-\nthe gentleman's heart to Cod That be a\nthat have been injured rather than\nbill to raise revenue, the seventeenth, I\nof five fails to ED you lose as puch as you\ncurrent when Die Income stops.\nmain. D seems to me that in the smaller\nhelped by war spending there has been\nbelieve, since civilization began to func-\n000 be earned last year be had to pay the\na big failing all in theater attendance,\ntion in 1933.\nVisatera they are aut going in for his-\n10032\nCONGRESSIONAL RECORD-HOUSE\nNOVEMBER 24\nCONGRESSIONAL RECORD-HOUSE\n10033\nNo advocate ED immediate and -\n1943\nAfter a careful examination of the ma-\njerity report of the Ways and Means\nof goversposetal expenditure by\nprosch Lime to . belanced budget doning les\nabout under commissions and\nnot muched unit 1 years after the war\nno Purther increase from this sourse,\nlas policy be such as to give some RD-\nCommitte, a most excellent report on\nWhen we Were compt(Ded by the\nand envid. Today the total volume of\nsaide from what may Ire realized - a Tit-\neurogement to venture capital. In my\nconsidating departments and end\nthe bill por before u.s.\neliminating entravagation, to sommplish .\nceasity to harrow - -\nwill tas is atx time as great-\nsult of the activieration of war produc-\nopinion, there are endless possibilities\nsonar the premi administration et being\nsaving of - Into than as persons In the nors\net Fromal Government\nwas financing, our Medicary credit had fac\ndid the trend la stall upwant. Up\ntion.\nfor the development of new Indostries\nthe great seministration in all\nalready been stratched le billbarge\nthrough the fliesi year 1940. Federal 20-\nMersover, is would MEM that the pres-\nafter the war If a wive tax pollip la pur-\nbutory B. is - administration that bee\nprecedented proportions and der Petern- 43-\nmine never exceeded $6,000,000,000.\nent upper rate una normal emporate\nrund. These Industries ean earlly pave\nprint borreo on emmieme an sop-\nMr. Chairman. the committes formula\nnot mly produced this modest revenue\nthat sources of islation tappy by\nBIRP (hen, they have mounted by leape\nprofile-now 40 percent-cannol go\nthe way for an en of post-war pro-\nnamion. Bureaus and\ncommission and here bero -\nbill but It had the further effect of caus-\npoint of virtual exhaustion. We bye the\nand bounds partir through drastically\nmuch higher. I have not forgoltan that\nperity instead of & pol-war depression,\nduring the last World War, when Indi-\nand is is to the Interest of the Govern-\ntalmed at the expense of 124\nIng the bureturiste to disgnage some\nhave reached the Mage where libe loss.\nincreased rates and Invered exemptions,\n$13,000,000,000 not required for the\norable law of diminishing returns\nend partis as . result of Incressed na-\nvidual rates reached a maximum of 17\nmeal to ser that these Industries are\nMr. Chairman, I am sure that If\ncludes further Crastic Immue in así- A.\nInsume From 1040 to 1941, Fed-\npercent the corporate income tax was\nnurtured and developed The war has\nFranklin D. Receivelt as a candidate\nproduction of the war, ner needed to\nthe taxes, and where our chief Ite\neral Eax collections increased moderately\nonly 12 perrent-the explivalent of the\nopened up new Imentiers in acience and\nouta with propriety make with an BC-\ncarry on the necessary functions of ciril\nIncreased revenues must be taxe that to\nfrom se $7,600,000,000. In\nmatimum normal rate on individuals.\nInvention, and If the resource and indus-\ncossition in 1932 against the Republican\ngovernment, much less to ayuander and\nthe fural year 1042 they rose to 12.-\nNor have I forgotten that in those days,\nParty, without facts to support his M-\nhigher rales but on insteased nacional\nto of our people are not unduly ham-\nwaste on useless and, to many Chatancer,\nIn the fiscal year 1943, just\nend up to the time the New Deal philos-\npered by ID-advised Government policies\ncustion, am well within my rights and\nsocialistic schemes,\nIncome, where the tax Virring the\nthey julisped to $22.000.000,000.\nopiny of tasation was given effect, receipt\nof taxation and restraint me can look\nfully justified by the facts to make the\nMr. Chairman, the task of reising\nbe Insurent by the clinipation of vane\nWhile yea are all drapty nt\nAnd ID Use current fiscal year. wo am\nnition was given to the Eact that 4 car-\nforward to the enjoyment of unparalizied\nname securation accided the Ronsevill\nrevenue is an unpleasent and thankless\nspenditift administration I would\nune, but It la nonetheless ED all important\nthe tremendous Increases to TRSM in Use\ninformed. they will te over 41 bil-\npersition was marely a collection at Indi-\nproserity and improved living stand-\nà seven-fold increase\nviduals doing business in corporate form,\nants.\nbestate to make this charge WESD It not\nme, for without refenues the Ocern-\npart few years, I dare my tint meny co-\nvace 1940.\nand that therefore, allowance should be\nDefore paiving to other phases af the\nfor the fact that the majority in this\nment could not long exiss,\nExpectally la this true at the prevent\nIncrease measured in tax dollars, Le\nrealize the actual estent of the\nThese figures express more clearly\nmade for the tax paid by the corpora-\ntax problem. I should perhaps briefly\ncommillee report does not bestate to\nthan the reason why we must Et\nLion in assessing the shareholders, which\nmention the matter of renegotiation of\nIndict the Bogsevelt administration tur\ntime, when we are fighting a global war,\nme give you is few Interesting Incts la\nUsis connection:\ndow III further lases. Yet\nwas done hy exempting dividends trom\nwar contration on which the Ways and\nits extravagano and waste sur a Justin-\nthe total monetary commitments for\neach time the administration has N-\nthe normal tax on individuals.\nMeans Committee has been conducting\nention for not viriding to MM Executive\nwhich already asserente $330,000,000,000\ntax- Pint, as regards the Individual -\nseill propred a new tax nin, IS has\nNow, ** not only will tas the corpure-\npoblic hearings preparatory to proposing\ndemand for $10,500,200,00L\nUT roughly the amount of our entire na-\ngestet the amount of to previous -\nljon up to 49 persont on normal profise\ncertain revisions in the existing law.\nIt was not until Bon. Henry Morgen-\nBohal wealth. And the war la ALID far\nIn the fiscal year roding June 30,\n1940-at which time our emergency 4-\nque Than in 1942, Congress was asked\nund up tax as persont on excess penillis\nPrior to the enaciment of the excess-\nthata Jr., Secretary of the Treasury, ND-\nfrom being won, particularly in the Pa-\npared before the Ways and Means\neifle three of operations. Moreover,\nfeture program was being Instituted-\nla nilm United and one-half billions. Last\nunder the bill. but we shall as what is\nproñas EME in 1040. the unly restriction\nfor the request was for SEVED and a\nleft, when paid out in dividends as the\nun war profils vas under the Vinson-\nCommittee on Detober 4. 1642, that our\nthe Federal Government su\nwe yel have to plan for post-war rehabil-\nless than $200,000,000 annually from party\nbillings This year, the request\nfull normal and surtaix rates in the hands\nTrammell ACC which limited the allow-\ncommittee was made fully and officiality\nItation, which undoubtedly will add un-\nemail Incomes.\nMI ralaed to tweive billions. them re-\nof the sizckholders. Someday, I hope\nable profit on naval vessels and planes.\naware ⑆ the magnitude of the revenue\nloid tillinns to-the over-all cost.\ndend to un and me-half billines. D.\nwe may get back to sound and defensible\nWhen Congress passed the excela-profita-\nmising task is would have to face. Il\nla the current fistal year, the Federal\n$1,300,000,000. The following year the receipts were\nwould seem that the order should have\nprinciples in tasing individuals doing\ntax law, a surpended the provider of\nwas then that Secretary Morgenthau\nsuggested that the committee bring eur\nGovernment will spend $104,000,000,000,\nbrea reversed, and that M we approach\nbusiness in eurporate term. Despite the\nthe Vinico-Tramell Act as being un-\nwhich is at the rate of nearly 80.000,000.-\n200,000,000. the fiscal year 1942 they IDH) to N.\nthe point of tax exhaustion the address\nexignncies of war. England bas socitinued\nnecessary. Lairr. there was addres as A\n. revenue bill that would produce addi-\n(lima) hurdens to to piled - should get\nto adhere to the sound practice of treat-\nrider to one of the appropriation bills a\ntional revenue amounting to $10,500.000,-\nDOG every ae days. Or this total, ninety-\nIn the fiscal year 1942, just timed, they\nand less. instead of more and more.\nme the corporate Income tax as . tax\nmeasure known as the was contract re-\nDOR. Purthermnre, the Societary FOL-\nseven billions will en for var activities,\njumped to $7,000,000,000.\nphasiced the fact that his would\ntwo and seven tenths billions for Inter-\nIn the current fiscal year. ending theat\nIf twelve billions had bern added to\nupon the sbareholder, retireted at the\nnegotiation law, providing for the None-\nsource. for which du allowance is made\nreliation of war contracts where exoma\nrequire an additional tax bardie on the\nthe cistimal debt, and the balance,\nJune 30, they are expected to be in the\n1bs present Federal tax lead, as eig-\nyourd by the administrativo, It would\nin assissing the individual Income tax.\nprofits ware fuund. This law, M every\nindividual taxpayers of $0,500,000,000,\nor todo and three tenths bullives for civil\nneighborhood of $18,000,000,000. This\nthen have totaled fifty billions, or slight-\nLast year. the Treasury asked far a 55-\nMember here know, has given rise to\nThe fact that the tax of Indi-\nfunctions. I wish to say, however, that\nrepresents a 2,000 percent increase in\npercent rate on normal resporate profils,\nmuch controvery and disatisfaction.\nViduals has bera increased about 2,000\nthere in some dirpute as to this break-\nIndividual Intome tax maripts in above\nIF Dear than half the comemplated our-\nay m the present fiscal year. Including\nbut Congress refused to no above 40 per-\nparticularly because of the lack of any\npercent since 1940, or from $900,000.000\ndrun of these figures la view of the un-\nyears,\ncent. There has, es you know, been con-\ndefinite standards for the administra-\nannually that year to 9 protable 318,-\nrequired $13,000,000,000,\nLet us now look at the corporate -\nthe les billints being collected by the\nture, in comparison:\nBlate and local governments, this would\nsiderable for an allowance for\ntion of the law. Most war contractors\n000,000,000 in the current fixes) year end-\nIn the face of this artronomical expen-\ntaxe brought the total annual tax bur-\nport-war receivention reserved. or the\nocem la feel that the law la unnecessary\nIns June 10, 1944. entered the committee\nditure during the next 12 months, the\nIn the fiscal year 1940 the corpunitie\non in this country to sixty billions\ndesirability of such recerve there can\nbecause DO percent of any excess profits\ngreat concern en to the effect of adding\nTreasury anticipates net fevenues from\nincome tax produced $950,000,000.\nbe de declare The Congresa has aiready\nwith DE taken under the excess-profiu-tax\n$5,500,000,000 to the pretent tax load,\nThe nest year receipts increased to\nBowerer desirable it may be to abenrb\nexisting taxis of some forty-one billions.\ngiven resognition to the principle of\nlaw in ans event, and they further feel\n$1,000,000,000.\nmove of the WAT cost currently. and\npost-ear reserves in monetiro eno the\nthat the time spent in couse through the\nMr. Chairman, x call attention to the\nThe administration has proposed a\nthe come ume combat the threat of\nfirst page of the majority report where\nprogram et additional taxes which, had\nIn Us: fiscal your 1942 they were u.-\nfullings inflation-and I would be the\nexonta-profits us. 10 percial ed the les\nren-gotiation processings bas* actually\nthis statement appears:\nInc. to quarrel with the destrability of\nbeing et aside for the use of the corpo-\nheid up the war production effort. The\nse approved 11, would increase revenues\nIn preparing this tax tid. TO enimina\nto approximately fifty billions, or to\nIn se fiscal year 1943. fust clound they\nobjective-the fact is that se\nration in Line post-war period. While\nwas agenties, on the other hand. feel\nhas tora: given to the following face\nroughly one-half the amount of the esti-\nlave shout reached the saturation polot\nthis credit is all right - ENT as it goer,\nthat the renegotiation law la sound in\nwere $4,000,000,000. which Is value-\nmated expenditures,\ntially the amount eitimated to M lb\n11 a net of such mognitude - so build\nprinciple, though they admit there is\nL The and for additional resente\nin and must therefore De exceed-\n2. The inflationary problem.\nFor many Peasons, it is desirable that\ncelved during the current fiscal you\nby careful In piling on additional but-\nup any appreciable amount for post-\nroom for Improvement in the adminis-\n8. The present RAS burden.\nWe most currently as much of the essen-\nThis represents & little CYEF 400 percent\ndeux To go too far may result net unty\nwar industrial rebabilitation purposes.\ntrature machinery. They have con-\n4. The becomity für simplifying the -\nthat was ext as CAD be done without\nIncrease in 4 years. However, when VI\nMoreover, the credit gribi applies where\ntended further that the function et\nis the destruction of the great middle\nvot lax splem.\ndertroying our economic system. How-\nthe which in the way backbone of our\nthe corporation bei tax\nkeeping war tosta at a minimum cannet\nInclude the excess-profts tax receiple.\n4. The pouthility for accountry by (ven-\never there is une rircumatance which\nliability, advices thousands ut other cor-\nbe accomplished under the excesa-\nthe percentage of increase to mult\ntowntry, but also to distroying (perative,\nmental Rependitures.\nrequires colument, and I refer to the\ngreater. Collections from the excess-\nporations not benefilled by the war will\nprofits-tax law, nor. SAP they supert, can\nwhich is so necessary to the success of\nneckless flacal policy of the pre-war pc-\nprofits tas have grown to $10,000,000.000\nhave an equal need for such reserves.\nsarh a law provide effective incentives tu\nD may cause some sperulation among\nthe was effort. Morenver, bulow must\nthe Members of the House as to the\nrive The waste and extravagance of\nannually since the tax was in\nbe his somethine to carry through the\nNo more important problem contrunts\nwar contractors to keep production at B\nformula that was lated by the committee\nthe hut decade, with the resultant annu-\n1946. This makes the total current car-\nthe Nation than the centrity of being\nmaximum and eists at a minimum. A\nperiod following the ter-\nall deficita and the pyramiding of the\nminution of bostilities.\nready to provide peaceficie jobs for the\nnumber of clarifying changes has been\nin formulating the insure time before\npersie tax burden approximately $14.\nthis body for consideration. There was\nnational debt. left the Nation Ill-pre-\n000,000,000.\nThe committee thought It tosilvisable\nmillions who will be throwd out of war\nmade 60 as to eliminate some of the pres-\nnothing in recent party publications to\nThe (ndividual income tax, along will\nis increase taxes by any such Deure as\nwork with the cestation of hostilities, not\nent uncertainties and improve the ad-\npared for the trémendous financing\nwhich the majority could turo for Is.\nproblem arising out of the war. Let DSE\nthe surporate income and\n112.000.000,000, as requested by the ad-\nto mention the millions of returning sel-\nministration of the law.\ninimistration. The committee examined\ndiem and sallora who will be locking for-\nSumming up the corporate-tax picture,\nspiration and guidance as how best to\nTepest that despite mounting taxes from\ntaxes, are by for the largest pevenue -\nthe whole situation carefully, and then\nward in resuming their normal pursuits,\nthis bill does not ralas any substantial\nfinance the war, meet the problem of in-\n1931 00, the deficite continued to Elle up\nduceo in our entire tax system. maker\nup $1 billions out of the total of 41 N/-\nThe kind of a corporate tax puller which\namount of additional revenue through\nAstion, lessen the tax burden, and above\nyear after year because of the rapid In-\nBlide provision for such as\nHome in tases which will be collected de\nthe Congress adopts I know will have 6\nbigter corporate rates. I believe that\nall simplity the present tax entern I\ntrease in expenditures. When the Japs\ntermed practicable, kreping la mind the\nam not violating the rules relating 5 dis-\nstruck their hlow at Pearl Harbor, se\nyear. In terms of percentare, PAY am\ncardinal rule of ability to pay a well as\nprofound effect upon the shility of trust-\nthe insiviability of doing so wes non-\nresponsible for as percent of the Temas\nness and industry to provide these jobs\nceded by Mr. Randolph Paul, the Treax-\nclosizes made in an executive of\nhad experienced 11 straight years of\nthe dictum of Chief Justice Marshall\nthe committee when I reveal that atheng\noperating the government \"In the nd.\"\ntry's receipts.\nthat \"the power to tax is the power to\nwhen the war beem ends.\nany tax adviser.\nanoe ancient, musty, and long-orgiected\nUnder the revenue lass of the last\ndellroy.\"\nIf No are to sunsed in materaining\nIt is obvious that if any large amount\nNew Deal campaign literature this magic\nThink of 151 Eirven yesre of Uninter-\nWorld War, the meet that the yours!\nWith the corporate DAN\n. high level of employment and national\nof additional taxes, ruch as su de-\nformatis was found:\nrupied deficit-financing. Beven years\nGovernment collected la any not you\nrate taised to 95 percent in the bill ta-\nincome in the post-war period, I firmaly\nmanded by the President, had been tm-\nof annial tax Increases, without any KD-\nPM $5,700,000,000, and the figure en\nfore us, it seems clear that there can be\nbelieve a to essential that our Pederal\npossd and realized, the burden would\nNo. 16-1\n10034\nCONGRESSIONAL RECORD-HOUSE\nCONGRESSIONAL RECORD-HOUSE\n10035\nNOVEMBER 24\n1943\nhave bad to fall largely un the Individual\nposid. Back in 1933 the Ways and Means\nwhether in the form of Encome\nfa Treasury to work mus . tax progress\nDivertment, which an Inevitably\nthere to be spent or distributed around\naction no the part et the Congress. It\nCommittee resemmended to the Hours\nthe mereins year by yest. I would tant\nto the different departments to spend as\nis possibilities, not probabillies, that\nor Imm.\nmanufacturers' sales tax, based on the\ninvo and then Insure that CUSTOMS of\nvalue E ID predint the exact sime of our\nthey - AL What the Congreto cuant\nshould be taken care of by law by\nM END MF the individual tas is\nsuccessful Canadian system, bill is was\nenact is into law without resure Lu\nthere was no lenger and num\nthe Viess of those who are to be taxed for\npudget, but I know n. will be\nto do, If that be true, Is to pass a. resolit-\nCongress.\noverwhelmingly defeated. Bloce that\nwhen compared to the pre-\ntich that the $13,000,500.500 and any\nMr. REED of New York. I concur 100\nfor In the Copital brackets,\ntime the miss tax has never been able\nDidgement of the tespayme or\nother money the departments aays ass\nprocept with the gentlemen from Midi-\nWe can bardly expect to take in\nto unreamand the support of . majority\ncountry, as to what M for the best interest et by\nyat level\nAt (IM present time OUT national in-\nfail to spend, or that is unnecessary for\nlan for this resson: I believe that every\nmore than 30 cente all of every dellar\nof the Wage and Mesins Committee, and\na man earna, which la the present mixi-\nbenre has not been included to any of\nInite resson for plantra the pare\nTounding fathers had a Vity 4d.\n- is the highest in all history, yet\nthe prosecution of the war, should be\ndollar that is spent by this Ocvernment\n- vs have been able to raise in\nturned back to the Treasury, and then\nshould In first appropriated and sp-\nPederal - um has been forty-one hil-\nproved by this Congress.\nincome This means that whatever 15-\nthe more recent tax bills, nur in this CDs.\nIf they need any of that money later,\ncrease may have to be made in the Is-\nIS has, however, been the subject of much\ninitiate revenue bills In the Home to\n- If the national Income should\nthey should socue before the Congress\nMr. MICHENER, If that money was\ntun will have to be in the middle and\ndiscrimion.\nRepresentatives whom everaben, - or\nEMP productately after the est. the\nor the proper committee of Congress and\nnot used for the purpose for which it\nlower brackets, priodpally the latter, and\nThe argaments which have been most\ngive an seretinting of their Mewardship\nmaintenance of our present high taxes\nmake their case, and another appropri-\nwas appropriated for the Congress, then\nwe SHOULD to IN repida approanting the\nevorally used sgainst the sales tax are\nevery the years. This Important Driver\nlimit EVEN there\nthe exicutive branch. The allmings of\nOVER the poras was perpossively demises to\nwild not produce anything like forty-\nstion can be made to take care of IL.\nIL la entirely wrong to have that motify\nthat Il falls fusviest on Chose with the\nof with In other words, we will\nMr. ROWE Do I understand DOW,\ntransferred to the control of the Dated\nOne with any evneral In-\nleast income, and is defiationary in char-\nyet to raise by taxation in the post-war\nthat the $13,000,500,000 of formerly enti-\nDureau or any other burrer to De used\ncrimise In in the tower and middle\nacter, NIGOS a discurages consumption\nthe laster to unurp the functions of Cm-\npetiod spough to cover not only the high\nmitted dollars now reserve dollars?\nif and when WOM individual in the\nbrockets is that a would have failen with\nWhile it is perhaps true that the nales\nSTREET lo laying down tax printy is versity\nunpaci - person who have net\ntax IN thire burdeneume to the DOUT than\na part of the general brend dortne the\nend of expendisures which W may then\nMr. REED of New York. Yes.\ndepartment might see für to - It. If\ntenaßled from the war boam as adalnit\nlast dicade, and in my Opinium if 18 tips,\nexpert bill unn amortization et the na-\nMr. ROWE. 1 note further in today's\nthe money has net been expended for\nto the well-to-do, this argument would\npocil debt as well. This is a problem\npaper that the Secretary of the Treasury\nthe purpoies for which is was appropri-\nbe more valid if the sales 16% were the\ntime if was stupped.\nDow who Dave NO I resilte,\nin put - strato on the insentity of our\nproposes a $10,000,000,000 post-war tank.\nated then is should revers to the Trail-\nal chine that there 19 . tremendous\nentr means of reising revenue for the\nI receit that In 1941, wism the We\nand Means Committee WAS mm/demy\nbell minds, B can test be solved by en-\nIs there anything in this tax bill being\nany\nof encess purchasing power in\nsupport of the Government. But as long\n5 maintain national insome\nconsidered today in the way of funds\nMr. REED of New York. The gentia-\nthe hands of burse of the periode\nM D. to employed in connection with pro-\nthe $3.000,000,000 tax b0), FL FIN\nat a bight level in the post-war period:\nto be contributed in that direction?\nman LA absolutely right\ninday, endicating that the point of tax\ngramive income tassi, the ability-to-pay\nunder the appreciments that \" with\nincreasing the tax level from\nthe burden of taxation which\nMr. REED of New York. No: Unre a\nMr. CASE. I think this la a matter\nexhavation has nat bea resches En all\nprinciple is preserved.\nwerld be required to keep the post-var\nnething that has anything to do wish\nthat does concern the Congress and that\ncases, The problem, livrever. is EN reach\nOne difficulty strol the Federal Giv-\nnon to $13,000,000,000. The DINE Prac,\nin bulance would be sheelutely\nthat We will hear all about that later\n1 trank statement nn is should be made.\nthe so-cailed inflationary purchasing\nemergt consting a sales tax at this\nhowever, WE found that If had activity\ncrathing in severity. Waste. extrata-\nin the\nI happened to ralise in the committee\nperson without cruntrying these who are\nlate dase, CFED an there had been no other\nbeen ralsed to $18,000,000,000. Apon\npara. and boondeggling must be\nMr. CASE Mr. Chairman, will the\nthe same question the gentleman from\nstreeds struegling woder the evisting tax\nlast year, when we were proputing is\nslappel. The LAE outlook for the tu-\ngentleman yield?\nNew York asked. whither AIT\" not the\nobjection. in that the State thas largely\nInd There are millioni of persons who\nprempted this firld. Moreever, they\n$T.000,000,000 beil, THE were givro to e\nderetand that it would nise the viz Imi\nlot b nnt a They pleasant one to am-\nMr. REED of New York. yield te the\ncommittee should nut take action to have\nniber have DM had en Increase in In-\ngentleman from South Dakota.\nthat muner resert to the Treasury.\nhave varying rates and exemptions, and\nname Once the war or have actually eat-\nvarying methods of collection. For the\nto $33,000,000,005. Yes early this year,\nTrevent that in under to minimize the\nMr. CASE In regard to the $13,000-\nThere vu some support for It. 1 felt\nSeve a distraied locume. They do not\nFederal Government at this time to Im-\nthe President Informed tas in frie boden\nburden 45 much as possible, it is impera-\n000,000, the War Department budget offi-\nthat way about It mywelf. However, the\nhave the especify le pay increased\npote a sales THE with different rates and\nthestage that the tax level had actually\nbeen increased to $53,000,000,002.\ntime that every effort be made to elimi-\ncer, General Richards, was prepared to\npledae to come back to the committee\ntates - war weekers and others whole\nexemptions, end a different method of\npain state dollar et wasteful and extray-\nsay to us when we had our hearing on\nTrad not made ments as a matter of\nEncomes have doubled, trebled, and per-\ncollection, probably would have caused\nThe problem of Government financing\nand (proding Herritolore, congres-\nthis matter that they would at over to\nsomehody's opinion, и is B. matter of tex-\nhage evin quadrupted. Pvr example, the\na desl of confusion.\nla one which will ontinue to plane the\ngm) efferta at ecunomy have rentered\nthe Dudget Bursau approximately B10,-\ntimons, a matter of record, that before\nman who has received $5,000 income\nIt has been estimated that = would re-\nCongress and the Executive Branch to\n800.000,000 that would be In s budget re-\nany part of that $13,000,000,005 will be\nand nonmilitary spending. The\nover 1. period of years findi today that\nsome une to come. As long M the was\nserve, to be drawn only by permission of\nspent the Committee on Appropriations\nquire . real also tax of 10 percent,\nthe but GOW come to serutinte more\nwill be consulted. The bodget officer of\nhis actual purchasine power has been\nwilbest exemptions, to produce $5.000,-\nlasts. we wiD dirubtless be spending less\nand more carefully the huge appropria-\nthe Budget Bureata\nconsiderably refund Unrough mounting\n000.000 of revenue Il food were -\nof billions more annually than ore DAD\nDATE being made for war purposed. or\nIn the nearings we conducted last week\nthe Wat Department, General Richards,\ntous and bigher pun for everything\nempled, the Field of € 10 percent retail\npolicibly raise by fazation. In EMI mean-\n(Tw more than three Hundred billions al-\nfor some 3 days we went into the total\nBerretary Patterson, and General Mr-\nbe buys. Monnver, he has Exed com-\ntime, the national delit will. continue to\nmay authorized by Congress. only one-\nfield et expenditures further, and as -\nNartay. the Assistant Chief of Staff, all\nmilments which must by met, such as\nain tax would be only $3,000,000,000,\npile up. When the national delo Hucher\nresult of that they agreed to set over to\ngate their solemn testimony that that\nThis even If e als lax were enseted,\nthird has actually been spent. If It\nInsurance premiums, pay-\nthe Treasury's first proposal of $12.000,-\n$300,000,000,000 as soupos likets. the In-\nMinuid be found that only 10 permit of\nthe budget reserve an additional $2,200.-\nmoney wodd net be expended without\nminta, and to on By contrad, his\n000,000, or FITH ta request for $10.500,-\nterest burden name will be ES much\nthe total appropriations were unnects-\n000.000. However, some of - were not\ncomine before the Committee on Appro-\nnighte, who as a redit of the war has\nnost to DRY the entire expenses of the\nNOT. a savings of thirty-three billions\nsatisfied that that should stay exactly\npristions and asking for it again.\nreserved an Increase in Income from\n$60,000 in additional revenue would have\nmid be made. Aller the last World\nin the status of & budget name without\nMr. MICHENER If that is true, the\nFIRST far from realization\nGovernment In the extrament pre-end\nperiod, without reference to and pro-\nWer is was found that a consider-\nsome control of n by Congress so we\nproper way to do it would be to have\n$2,000 to $5.000, and who does Pack, have\nIn this connection, I feel 1 cuent to\nexacted from the budget officer of the\naction by Congress rather than to accept\nthe flixid and ultim long-etanding com-\nmake some refervare to the fact that the\nVision for the retirement of the pein-\nshe portion of the funds appropriated\ntad actually been warted. and there is\nWar Department and the several heeds\nthe promise of Department representa-\nmilments, 18 milorine new-tound\ncipal,\ndespite the relatively hish 14829 be has\nleng-standing differences between the\nDI rysion in believe that the present war\nof the branches of the War Department\ntives to a subcommittee.\nto para\nadministration and the Congress on tax\nPollowing the last World War, - N°\ntired the debt at the rate of $1,000,000.000\nwith le no exception. The congresional\nwho appeared before - the explicit (late-\nMr. REED of New York. Absolutely,\nIn the case of a many of the racise\nDifity have made the task of the Ways\neconomy committee, headed by Benator\nment-and is is & part of the record usu-\nand not only in writing but make it A\nand Means Committee most difficult in\nannually for 10 years, Then the arpres-\nBYER which to largely responsible for the\nmany on the subject-that name of the\nreselution of Congross\nlasse, the products on which they are\nlevied are on longer atadable, such as\ntheme already terms times. In recent\nston put a stop to further curtiviests\nEven If are are able to Increase the am-\neconomies in Federal spending already\n$13,000,000.000 will be removed from the\nMr. CASE It to in writing M a. mat-\npassenger cara, electric refrigeratory. and\nTears the Treasury has presented à de-\nfailed tax program to Congress, and\ntitation rate to 83.000.000,000 annually\neffected, loss accomplished much m this\nbudget reserve in any amount without\nlet of record before the committee.\nafter the present war, st will take a hun-\ncoming to the War Department subcom-\nAlthough much of the testiment before\nredire, In other CASH, such or masuline,\nwhen Cologress has not seen fit to EO\nrequest without in any was Interfering\ndred years En pay eff the debt.\nwith the war stort, To the extent that\nmitter of the Cummittee on Appropria-\nas was of a military nature and (if the\nconsumption is restricted, This in a\nnumber of instances, receipts have fallen\nalong the administration has used Its\ntions and also getting the sanction of that\nrecurd. this matter is a part of the\nWhen we contemplate their per pail-\nminomies in milliary spending are pos-\noff in the face of increased rates In the\nTME preparande machine to try to over-\nrecord.\nwar Budget will have to provide a mini-\nthe task of financing the var in\ncummittee.\ncue of practically all of the Fitche livin,\nconcressional opposition Con-\nmum of perhaps ten billion for debt NPH\ncomplified.\nI may say that that was a enncession\nMr. REED of New York I do not care\nthe nin have been Increased seals and\narea the been held up to scorn and ridi-\nMr. ROWE \"Mr. Chairman, will the\nthat WM wun by the committee en the\nanything about the testimony.\ncule, and has been of shifting\nles, it. becomes apparent that se will\nexpress statement made in the commit-\nMr. CASE. Further, there are AGGIN\nsealn ilince they were first Imposed\nthe tax burden from corporations and\nnever see a reduction of the out of por-\ngentleman yield?\nernment to anything Take Uie p(V-war\nMr. REED of New York. yield to the\nles that without surve such reservation\nitems in that $13,000,000,000 which it\nThe Federal estate tax also úffers little\napportunity for Increased revenue Ence\nthe wealthy to the backs et the masses,\nemileman from Ohio.\nentre of M would Feet obligated to Intro-\nmight be important to have available\nor we in Compress get used to\nlevel, even comparable to that in the\nthe ratas are already rather high, reach-\nMr. ROWE. I notice in today's paper\nduce the very type de resolution the\nrelating to the reduction us certain proj-\nheyday of New Deal 3r-\nthe a maximum of 70 Dervent The\nunfounded criticisms of this kind, but It\nis nnt a Viry wholmome situation, and la\nsides providing for debt service. me may\nthat Under Secretary at War Pattersin\nsentleman from New York suggests. It\nects which are related to military strat-\nwill be undersited, of entroe, that appro-\nN.T. If se had instited upon getting\nTreasury turged AND Miller rates last\nhave to maintain a buge army, and\nmikes the statement that where military\nyear. but Constress refund to abserve\npristion expires June 30. 1044. and the\nthat resolution, If I and ope or two\nwholly unwarrabled. In the first place,\nair force to police the world, which will\naftairs ATE concerned they do not cotaid-\nothers who supported - in the matter\nany increase,\nthe Treasury has no business having a\nExid tax program. n is the duty of the\ncost many billions annually. We will\nE the cost in connection with the Canol\nunspent funda sutomatically yovert ta the\nhad Instited 8 getting the resolution,\nState existing sotarces of faxation\nHouse of Representatives, under the Con-\nhave to provide horpitalization and dit-\nInject for oil up in Canada. That IIT.-\noffered Tittle possibility of relaing sub-\nTreasury Mr. MICHENER, Mr. Chairman, will\nwe would net have been able to have\nability compensation for the cursive\n000.000 is & put of the $13,000,000,000 to\nstantial additional revenue, practically\nstitution, to originate Invenue bills. The\nof the war. We will have to make hast\nyouth the gentleman referred. that is to\nthe exatleman yield?\nImpounded as much DE $13,000,000,000.\nthe only poiential secure of DPW revenue\nis retarned UT that will not be used?\nMr. REED of New York. 1 yield te the\nMr. REED of New York. Congres\nBertive branch if mindy rapposed to\nadminister the laws that Congress en-\nappropriations for post-war\nas yet untapped is the sales tax. For\nUon, We will undoubtedly be calied\nMr. REED of New York. As 1 under-\ngentleman from Michigan.\ncan impound whatever portion of she\nacts, It is perfectly proper for the Bec-\nMr. MICHINER I do not believe the\n$13,000,000,000 it dorma wise\nyears Compres has loyed with the Idea\nupon to centinue financial aid for part-\nMand the $13,000,000,000 up to this time\nof etacting such a leg. true the admin-\nmay of the Treasury to make recom-\nmendations to Congress when requested,\nwar recovery in other comines. All\nperhaps cannot be constrate strictly and\nstatement made by the from\nMr. MICHENER. Would it not be\nIntration has always been bitterly up-\nthese costa will be superimental upno\nSouth Dakota justifies as additionalive\nbetter to impound US and know what 19\nIngally as a saving, Secause le Le still\nbut in my mind it is improper for the\nthe regular operating expendisures of\n10036\nCONGRESSIONAL RECORD-HOUSE\nCONGRESSIONAL RECORD-HOUSE\n10037\nNOVEMBER 24\n1943\nhave impounded rather than to transfer\nthat amount. He wanted. auf I have said,\nnot of Laxes. We feel. however, that\nConfirmation of this statement can be\nof South American Indians. Alm. a\nto - servey or burvau $13,000,000,000\nto put on $6,500,000,000 additional to the\nto not guilty, sit.\nMr. plead REED of New Purk, I VII be\ngre mased for all that we can affend\nhad if the Appropriations Committee will\nGuide to Official Publications of lath\nto be used If, when, and how the bureau\ntax Boad of individuals, which would have\nWP M pay. NoW. as a malter of fact. eun-\nforce from the proper officials a detailed\nAmerica. A Law Guide, and Central\nmiddle see 611\nhit the white-cellar people, When Mr.\nMr. CASE Il IF tmpounded. It is\nEccion, of the Pederal Reserve, appeared\npassing him when this tax Ell visa The -\nMr. 12 MONTIONEY. I would the to\nAMERICAN the demand of nne department\naroqui at what these agents of the Oct-\nAmerican Legal Bludies. We are paying\nMT $16,000,000,000 and another depart-\nemment NEW doing in those tuantries,\nfor & nover of enliections of Latin\nnot left to the Budget Bureau alone.\nbefore our committee his proposal wm\ncomes back Without proloting (If\nmem (xt $12.000.000,000 and another une\nand to what they are committing the\nAmerican muste. The read la replete\nMr. MICHENER It lanot impounded\n$20,000,000.0 increase in taxes. We are\nhave a from the Benale, Hode\nrained in freeze of the they\ntoo 1 thank that after all\ntaxpayers of this Nation.\nwith things of this aurt.\nby law, yet Congress has apparently loss\nnow showing a retrenchment of $13.-\ncontrol over IL That u what I am son-\n000.000.000, provided 1t can be returned\nfor that there, will n be formal to laz\nthe - must realize that this to -\nMr. Chairman, the Cuparess approved\nMr. Chairman, I am indebled or the\nlike in & confirmence I you\nreserver modest demand, even with your\nthe origmal Lend-Lease Act. It has since\nBenator from Nebraska,\ncarted about\nto the general fund of the Treasury.\nWAYS to are what the sentiment is In would Qu\nInsuranciation tax. I would to. if\nrepewed the act for an additional a years,\nthe Nonorable Hear BUTLER for the\nMr. CASE The Congress, through the\nHow many more billions of dollars the\ncourse, to APP many items in the tax\nThis las given to the President of the\nthings I am discussing.\nAppropriations Committee, has recep-\nspendthrifts are pouring into rat holes\nand Means Committee\nUnited States the authority to spend the\nMr. CURTIS. Mr. Chairman, will the\nfured central of $13.001.000,000 uver\nright now in 10 be assertained by future\nexpress the Motiment of the Ways\nMr. REZD of New York I care\ntill remmed.\nMr. ELLSWORTH. Possibly I should\nbillions provided under the law to any\nsentisman yisid?\nwhich It did not have control\nInvestigation.\nMr. HINSHAW. Will the contirman\nMeans Committee as have out the and\nexplain my comment. The objection\nway be sees nt in bis opmion, such\nMr. WOODRUFF of Michigan. Tyweld.\nMr. MICHENER Tar Appropor-\ndel I twice and 1 think the one that is\nexpenditure will cuntribute to our na-\nMr. CURTIE. I think it should be\ntions Commitiee less no emilority in :\nyou'd?\ner of divination far know What the finale 20v.\nheld by the people out there, 18 not an\ntimal defense. This is the only restric>\nmentioned that the Senator will file .\nextrate ADS of the money. Al med il\nMr. REED of New York. Yrs.\nFinance Committee my de. ! under.\n16 paying a tax but It is 60\ntim placed upon the Chief Executive in\nvery lengthy and detailed report in the\ncan looke only e promise.\nMr. HINSHAW. I would like to know\nstand that low of the more disk.\nto the bank en which the tax\nthis regard. Certainls when Congree\nGenate in . day or two. and the entire\nMan SUMMER of Mr. Chair-\nfrom the gentleman from Bouth Dakota\nglished Birn In the other boly en lo\nIn Take, for example, lumber:\napproved the legislation and the more\nexpense of this trip covering serve 20,000\nwill line yield?\n(Mr. Cast! whether or not the Army\nthe 3 percent tax no the tumber we ship\nthan $70.000,000,000 which have been\nmiles, did not cost the taxpayers any-\nMr. REED of New York I risté te the\ncame in voluntarily and disgorged the\nDI b, and Whether they will oftemps\nfavor, of course, of tresine the toa when\n$13,000,000,000 or whether it was\nput it in this bill I do tio( by This 6)\namount to an average of about en cents\neither directly appropriated, allerated to\nthing. and was undertaken by the Bm-\nfrom Illinois\nI sould Inform the profession. I as\nser mousand foet. The lumber freight\nthe lend-lesse fund through Executive\nstor individually.\nMe SUMNER of Illinnts I DOLVE\ndrazged que of them.\ntax the competitive areas to much less.\nunder, If expended for ships and arms\nMr. WOODRUFF of Michigan I am\nhave that the Individual mestre tas 10-\nMr CASE The true cridit for the OLT-\nspeak only for myself, MI far is that -\nThe freight us should be on 0 unit\nwhich have been contributed et made\nvery happy to have that injected Into\nemail are poice to bring in $104.000\nInco should en to the hoys in Africa and\nconcerned. but from all the mean\npercratage.\navailable ta our allies and other natires,\nmy remarks. I hope every Member of\nwe\nItaly, in Alaska and Australis who have\nhave been able tu examine as to the\nMr. need of New York. I no use\nit naturally expected that the President\nthe House and certainly every Member\nMr. REED el New York The resson\nmade these asvings possible, The credit\namount of Name that Day bren built\nyour point and I da put blame you far\nwould make expenditures from the fund\nof the Benate WID carefully seruttaise the\nfor Use increase in that the normal the\nfor the mechanica of the saving should\nup and the Decessite to accomplus that\nonly for purposes which would directly\nreport that the Sensior will file with the\nEXPIRE IR\nhad to be increased to implement what\nprotably he divided between the War De-\nfunction at this time, Mary to no\nMr. ELLSWORTH. I just wanted to\nand substantially contribute to Une win-\nBecate, 1 am sure H will all find is\nbights enlightening\n- are $ the tax Il does\npartment. the budeet officer of the Orn-\nfor building up t. larger reserve. All Il\nmake il clear that IN is out the amount\nnine of this war. 1 believe netiber the\npick - . THE payable by: it B very\nthat sur. Brindler General Richards,\ndoes is to print bonds and to DE Item\nof the 10% That is not the point 10-\nCongress nor the country would have\nThis spiredid pubbe official traveled\nand the contribution The War Depart-\nin $ bar and go out and apend the Studen\ngiven any measure of approval to this\ngenco miles in the cumirier la the south\nworld\nGURINED of Il to\nI think IS is better to leave the\nMr. HEED of New York. I under-\nact If is had luen known that the money\nof as and shile the gathered informa-\nprot came a in response to a letter\nyou ser suice & very serimus thing\nIn the banks,\nwhich we must borrow on the credit of\ntime which should be in the of\nwhich the chairmen of the committee\nstand.\nhas, Ter Iso reunge. Ani, we pasard\nvrite for the committee last summer\nMr. MONRONET. To: réntimas\nThe CHAIRMAN. The time of the\nthe taxpayers for this purpose, and\nevery citizen of the United Butes In\n6. bui yearsday with staredy mouth\ndoes not mean we shauld be eiven e -\npentieman from New York (Mr. Rasal\nwhich the taxpajers must eventually due\nan article in the December of the\ntherty after the repear The letter was\nvoin has civerride veto-and de may not\npredicied upon the reduction in the\ntime of this gie! Import no .\nRes expired.\ndren an their pocketa to pay, sogether\nReader's Digest the Benston has die-\nluve mouth Túlta to override it whre e\nrepurt to study. does not\nwith the interest thereon. until thow\nclaired libe shocking conditions existing\nnotres bank-6 that to give $1.000.000,00\narmed form All the pentleman knowa,\nMr. KNUTBON. Mr. Chairman, 1 yield\nMr. REED of New York As I as 1\ndebta are finally retired-and DD the\nla these countries and the faninatio\nat the Ume the Was Department appro-\nMich time as lue may destre to the gentir-\nformed person. whether - Member of\nfengtbe to which the administration\nworth of substition chiefly for the purpose\nDIII ⑉ prepered last May, It\ncaraned spesk for the majority of the\nman from Michigan [Mr. Wongsure).\nMr. WOODRUFF of Michigan. Mr.\nCongress or private citizen, can believe\nwould en III tasme our people and spend-\nof subsidining the Different pront) bills\nTM planned to have an army of 8,260,000\nWays and Means Committee I 01\nwant to attempt to special für tick miss-\nthe Ways and Meana Com-\nwe can retire in the DEST four generations\nthe their hard-earned maney.\nof the WILLE-collar class, which is the\nWiy class you attack. Here you RUE 12\nmen st the end of the fiscal year. Sub-\nesquintly plans sere curtailed so that we\nHigh on that question, Jun etat the\nmiller, because of its refusal to provide\nthe enorthous debt me have pliot on our\nTo those who criticize the Ways and\n- mar situatary where you ned this\nadditional revenue of ten and a half bil-\npetple-if they had had the slightest\nMeans Committee for refusing to pila\ncontaily plan en army of 7.700,000 men.\natton might be at the time, whether\nnecessary to do it et Inring a in 1 do del\nsurpleton that this Government would\nupus the already uverburdened taxpay-\nméhagerial and white-critar das You\nmerbt to keep up And you\nThat reducting of 360,000 men automati-\nHome of dollars in the bill we have before\ntallr to the committee and to\nknow. I do not like to ser: a tax BE\nna, has been editorially eastigated by cer-\nestablish W. P. A. projects and other\nen of this eximitry an additional $10.-\ntring in this detrease, It seving le me\nthe chairman of the committee the pos-\nmuddled with a big question of that\nsain entisors af the metropolitan press.\nboondoggline adhilies all over Central\n500,800,000 at this time. while things such\nof elime saving, not merely In the\ncharacter, I am not in enntred et IL\nOrdinarily, editors of such publications\nand South America, and probable all\nas I have-mentioned, together with all\nthat in entirely incressives were oliz Idea\nMr. MONRONEY. li MEDI En that\nare well informed and their opinions are\nover other sertions of the world.\nthe other things which Benstor Butler\nof dans. profit and the means st getting things\npay of those but to the equip-\nHew many Members of this House. for\nbas described. as well as the probable\nment and material that would be pro-\nwould be very bad legislative previder\nworthy of consideration by the public.\nsimilar activities the administration tal\nMr. REED of Now York, When you\nThat would not give the Howe a change\nHowever, in this instance, the one to\nInstance, know that we are now com-\nlook at the whole piciure, in arder to ENC\nvided for them Test partictlar pliase\nto express 10 true views (ii) this and ing-\nmitted to spending In the next 3 years in\nenginging in all over the world, I com-\nrid et this objectionable Victory\nw for about $2,000,000.000\nsins I refer apparently are yalding to\nin the money that is reraptured. That\nInlate no we should on a miller of lhat\nthe importunities of the Secretary of the\nCentral and South American republics\nmend . careful reading of the splentid\nImportance.\nTreasury and other members of the ad-\n$5,000,000.000 for every imaginable thing,\narticle by the distinguished gentleman\ntag it had to be worked out MR. a math-\nemailtal basis n. does time in a livie\nlesk however, to & Türther investigation of\nMr. REED et No York 21 world aci\nnot one of which will In the elightest\nfrom\nrevenue, DUE It la not wi grest total-\nthe appropriations made last June on\nministration, and doing so without\nthe beita of lbs changed military altra-\nbe the first time that another mitter If\nknowledge of many facts which this ad-\ndegree contribute to the early of\nCertainly, Mr. Chairman, something\nquence to the Extremal FUD of\ntime. the improvement of the situation\ncumistration is ouncealing from the pub-\nour arms and bring paace to this world?\nshould be done abrut mich funtastie ex-\nattached to a lat bill.\nHow many Members of the House know\npenditures\nin Tiew of the $6,500,000.000 which the\nwith the conquering of the subma-\nMr. ELLSWORTH will the\nlie, and which cannot be justified upon\nman yisid?\naty erounds whatsoever I believe is is\nthat the national budgets of 20 Central\nMr. CURTIA Will the gentleman\nTreasury might put on individuals\nMiss SUMNER of Illinots Do you\nrines DE BE least e reduction of their\nand South American countries in 1941\nyield further?\neffectiveness, with the result that when\nMr. REED of New York Yes\nalmost imanimously agreed that when\nour midiers and nations are Behting on\ntotaled only $1,047,000,0001 One Latin\nMr. WOODRUFF of Mishigan. 1\nmean to ay three Increases make no dif-\nference to jwa penenally, but was just\nthe War Department made Its resurt to\nMr. ELLSWORTH. : would tike, by\nbaille fronts all over the world, when we\nAmerican editor said. -$6,000,000,000.\nyield.\nreplace the Vietury tax?\nw a week agn they Droposed impounding\n$10,343,000,500 That was increased\nfore this bill passel, to make egain\nare also providing money, food, and all\nThere ATF 120,000,000 people in Latin\nMr. CURTIE. That article is in the\nMr. REED of New York That is true,\nresarding the 2 peroint us on true\ntypes of military aupplies to our allies,\nAmerica. That is $50 aplece. If our\nCONGRESSIONAL RECORD today.\nfost to replace the Victory tax.\n$2,200,000,000 in a total of $13,100,000,000\nthat every expenditure of the Govern-\nfriendship were actually for sale, $50\nMr. WOODRUFF of Michigan. I\ntransportation. I estne Inc the for\nMr. CARLSON of Kanda, will the\nas H result of the bearings the commit-\nWest and that taa being 95 a percentant\nwould not be enough: but if we would sell\nthank the gentleman.\ntoo conducted last week.\nmest should be closely and critically\ngentirman ricid?\nbasis rather than a unit basis acie M .\nIf, 830 would be too much.\" It is known\nCertainiz Congres should promptly\nMr. HINSHAW, Does not the gentle-\nscarned by the Congress. and that ND-\nMr. REED of New York I yirld for\ntariff barrier on certain of sur products\nthat we have set up in Latin America\namend the Lend-Lesse Adt and take\npropriations should be provided enty for\na Quantion\nMr. REED of New York. That is 20\nthe things which are directif needed\nW. P. A.%. N. Y. A.'s. and P. E. A.'s. and\nfrom the President the power be now\nman think the War Department la to be\nMr. CARLSON or We did the\nfeetly natural. I am not an\nto bring victory to our arma at the BST-\nthe spending of this six billiens de in the\nbss which be is so shamisfully abwang.\npeal the earned-income credit, which\nmones? complimented for bringing in that\nbody for It, but I have yet to tind -\n- possible moment,\nhands of a number of agencies of the\nand place that power in the bands of\nW/ ed to complify the tax RENNED, and\nMr. CASE Yes: I do,\nbody who is truly fond of ans If you\nUnited States Government. It is under-\nsome scency nnt. as profligate in spend-\nthat dons increase taxes tomewher And\nMr. MONTIONEY. Will the gentle-\nhad sat day after day Instenant to people\nI think we all have been heartos atories\nstood there are more than 12,000 proj-\nlog the taxpayers' minnes se the Presi-\nalso we removed the deductives from\nwho appeared before us-fine. spientid,\ncoming from Central and Berath Ameri-\nman vieta?\nneta of different types, For example, this\ndent has proved himself to be I com-\ntaxes and exclases from personal income,\npatriotic people, seme representing ein-\ntan republica, - well as other parta of\nmotiry la being spent to stock the stresms\nmend my remarks and Benalur BUTLER'S\nThat is where we picked It up.\nMr. REED of New York. I yield,\nporations and some partnernhips and\nthe world, to the effent that those eman-\nand takes of Venezuela with game Bah.\nsplendid artícle to the Foreign Affates\nMr. REED of New York, To answer\nMr. MONRONEY. The gentleman\nsome Individuals-I think if poi\nItter sire being averrua with agents of\nRight DOW there is a Benery enlasion in\nCommittee el this House, and appeal to\nthe lady from Illipois 5. little further, you\nInies New York la the of the mest dis-\nUnguished and scholarly members on\nexamine the testimeny ymu will not a\nthis Covernment who are ommitting\nMesica We paid for in tists surves ID the\nthat committee to report an amendment\nnearly every instance, each et those et\nlittle people to expenditures of-muney to\nseesn adjacent tal Panama. We are\nto the set which will accomplish this.\nmust recail the President wanted to In-\ncrease individual Incime taxes five times\nCommittee. the minority side of the Ways and Means\nan estent that will abock the people of\nthis country when the facta are known.\nfinancing the preparation of a banditeck\nPurther, I commend to the Appropria-\nname before as and they said \"We KUM\nyou must have manes and VP are la\n10038\nCONGRESSIONAL RECORD-HOUSE\nNOVEMBER\nCONGRESSIONAL RECORD-HOUSE\n10039\n1943\ntimes Committee that when the nest\nIncorporated in the present MILL, I will\nappropriations bill more from that com-\n047 to the gentleman from Ohio,\ntaxes will amount to Prim\nThe incréases in the various\nwithin that it would be to reptal\nthe minimum Iss plan which, a stated\ntog an income of I than 42,000 geta\nVistory CARE and to supplant it with\nbefore supplanta and takes the place of\n& smaller personal family examption?\nmitive, they resever to the Treasury the\nMr. LEWIS of Ohio. How can we Jus-\nmore still available in the lend-leaso\nuse the taxes incorporated in the present\nan from additional the amount of $100,000.00\nibr parte versable sex which would pro-\nthe Victory lat.\nMr. JENKINS. Oh, no These et-\nfund, and that bereafter when addi-\nbill in the face of 167\ntional billions are fequested far the per-\nThe estimated total mores\nIncrease in postal takes\na about the same amount of money,\nYou will see trom the report filed by\nemptions stay the same En all If they are\ntax bill from all sources will be It) Visa\nare The Treasury recommended the abolish-\nthe committee that there is . short form\nassessed under the name plan. If, as I\nMr. WOODRUFF of Michigan, I am\nof the Victure tax. If this bad been\ntable which la applicable to this mini-\nhave said, & person with $2,000 theams\npeine, that the members of the committee\nfrank to say that in view of the recent\nsecure trum the spending authority an\ndisclosures made by the Benator from\nin 300,000. the This to not Buch of an income R.M.\n(ine DE 0.000,000 laxpayers would have been\nSUB tax just as there ear . shart farm\nand is married with 3 children. lose\nury which called for en Increase in time.\nEnce of the demands of the Trass\ntable applicable to the Visiory tax, and\nwiD have a married man's exemption of\nstemized account of the things Inr which\nNebreska I am someshat in doubt myself\nnamed of MU tax responsibility. This\nthe sprading authority programs to use\nsill provider for the repeal of the Victure\nso forth, Under this short form the min-\n$1,200 and $350 for each thile under\nAd to the admissbility of it.\nthe fund, soil then held that authority\ntion of $10,500,000,000.\nMr. ROWE. Mr. Chairman, win the\nThe Ways and Means Commine\nus and as I have already suggested .\nimum tas will not be 429.40 00 I have Dg-\nthe regular Incume-tax plan. But if he\nto M-101 account for IM expenditures.\ngentleman yield?\nmedication of what we call a minimum\nuned it but it will be $29 M you will see at\ncomes under the minimum risn he will\nPurther, there should he there must be,\nin its deliberations decided that #\nthe bottom of the chart I cite this to\nhave a married man's exemption of STATE\nMr. WOODRUFF of Michigan. I yield.\nbe impossible to ratao the\nrecommended by the Treasury, acted\nus Int the briefly seplain this chart You\nshow that the Exputes in the shott form\nand $100 for each child These CRETAP-\nsome check put upon reckins, eastrful.\nMr. ROWE. is Il-not a fact that the\ncharts are net figured out exactly to the\ntions will be the same if be has A $3,000\nfabtastic spending of the public moneya\ntax bill is to pay the accrual of the debt\ncommities proceeded to write la IND the\nwill MIP that this chart ta applicable to\nIf from the very Beginning of the pro-\nthat bas been caused by the very extrar-\ntry, regardless nf the demande of the Treas. to\n. married man. with two children. who\npenny but they are usually figures that\nIncome or a $1.500\nPOT world emergency we had limited DMT\npartir $7,100 per year. In the left hand\nare rounded out and in scine - a tax-\nThe CHAIRMAN. The time of the\nBENDER to which you are referring?\nexpenditores tu only those things which\nMr. WOODRUFF of Michigan. There\nlat I campute the taxes that this awa\npayer loses & few exta and in another\neentleman has expired.\nwere absolutely Nr the eivil\nIt had been my purpose to take 4 Ue\ncase be will gain . les rents In this\nMr. KNUTSON. Mr. Chairman, I\nto not any question about IL\nwould owe under the regular income-tax\nadministration and the prosecution of\nThe CHAIRMAN The time of the\nquestion if renegotiation of expiracts\nnum. the texpayer could easily flgure out\nyield the gentleman 10 additional\nI/W de 11 will apply when this bill 18\nIsle own taxes according to the short form\nmindles.\nthe war. PVML then the public debe world\nsentirman from Michigan has espired.\nbefore 1 went into mmy of the Certr In-\nturns of the tax bill, I wanted la Tible\nwind. You are all familiar with the\nhave teen für greater then evula at the\ntast that recent tax bills have carried\nand you and that be would and 40 centa\nMr. COOPER. will the gentioman\nunr have two concelled, A+ IL is, God\n(Mr. DISNEY addressed the Commit-\nout of respect for the distinguished m.\nthereby and in addition be would sine\nyald)\ntea Tim remarks will appear hereafter\nabot we call A \"sbort form.\" Millions\nNone Imm bive many additional bil-\nin the Appendix\nUeman from Oklahoma \\Mr, Dearey\nof taxpayers in the lower brackets par\nescape the trouble of having to go to a\nMr. JENKINS, I yirld to the gentio-\nlions of érit have bmn besond upon our\nfor a discussion of the inconclusive -\nlas expirt to make DUE his tax return.\nman from Tennessee.\ntheir 14345 on the short form. For those\npeople, and how mean additional sen-\nMr. KNUTSON. Mr. Chairman, I\nwithins to pay their taxes la that way\nYou will also notice that 1 have shown\nMr. COOPER. If I caught the gentle-\ntures of this bill would be in the was No\nerntions will be tased in order to per the\n10 minutes to the gentleman from\ndiscussion, which he has just citiesi\nan assessed dedoction of 6 percent is\nby this chart what the Victory tax would\nman's question correctly, what the gen-\nincomed évill ensendered by such BC-\nOhlo Mr.\nBut the piece boys have brought -\namount In the case in point you will\nbe fir this name individual under the\ntleman wants to know is whether or not\nlivilles. Certainly, Mr. Chairman, theme\nassice that the assumed deduction of 4\npresent lew. It would be $38.00.\nthe exemption for the minimum tax and\nMr. JENKINE Mr. Chairman. I wish\nthis blackboard thart which I expected\nresponités für this police must have\nto compliment the Membership on their\npercenti will amount to 8120.\nBumming this whole mainer up there-\nEnt the (ncome tax are the name Is that\nto use In commetion. with them brw\nliven with visions of\nfeatures of the tax bill, and from the in-\nfore, you will see that in the case that\nthe point?\nattendance this afternoin, With a very\nTue married exemption runa the same\nHon else esp BY for the uster\nimportant boliday Impeoding, and the\nterest that you appear to by manifesting\nI have taken for (Dultration, the man\nMr. CURTIS Yes.\nto this bill as in the present last which\nMr. COOPER. They are and Live same.\ndispard of the wellare of our tax-\ndiscuntion of what everybody knows is .\nin Utis chari, 1 think tital 1 had better\n$1.200. The same deduction is allowed\nwould be required to pay & tax of 629,\nmore public\nvery any subject. I Unink you do well to\nchange my planned couns end discuss\nwhich to the tax under the short form,\nThe exemptions for income-tax purposes\nfor depondents in this new bill sa in the\nare $500 for a single person and $1.300,\nMr. Chairman had eur eritical editors\neive such a fine attendance, and such\none of these importan; intervations to\npresent law. In this aupposed OMB. the\nbecause under this hill we are consider-\nfor married persons, with 8330 for each\nBom Informed R$ they should have been,\nfive attention, I indulge the hope Unit\nthis present bell, 1 hope that I may be\ndeduction for two chüdren will be 1700.\ntos today the taxpayer must pay a. min-\nhad proper publicity been given tax the\nalthough I speak exiscoperaneously that\nable to have 6. copy of this chart\nThe total of these deductions or you will\nimum tax If it ezceeda stat his tax\ndependent, The minimum lax, which\ndoes nos apply to anybody who la subject\ncrack-brained policy of - world-wide\n[ may be (Avored with a explinuance of\nin my remarks in the a that :\n- amount to $2.020. Prom this you\nwould be under the regular Income-tax\nto an income tax. the exemption for the\npromus of and W. P. 4.\nyour allenting.\nyou are at all impresant with DI you nay\ncan Me that the deductions amount to\ncomputation. In other words, & taxpayer\nminimum tax is 8500 for A single person\nthey would have diricted their sbefta at\nEvery tas will is a difficult une. We\nbe able to take reference the in tn the\nmore than the income and there would\nshould fellow the short-form computa-\nand $100 for married persona instead of\nthose responsible and in that DAY have\nhave come to the place in our plans of\nRecorn. I think there la no letter NET\nbe no tax if the partne were computed\ntion made under the minimum-tax law\n$1,200. and $100 for dependenta instead\ncontributed to 6 resion to some degree\ntaxation that causes as to stop, look and\nto understand the complication of &\nuniter the regular Income tax computs-\nbut If he 15 not satisfied with that crim-\nof $350.\nof sanity to the expenditure of the Lak\nlisten. We are now daggering under the\ntax bill than by the time of Strustrations\nIn other words, this taxpayer\npotation he may compute his tains under\nMr. JENKING. His question was M\nmoney,\nmost culumal deht that every afficted any\non a blackboard. We use 1 blackbourt\nwould, if he were to follow what = call\nthe regular Income-tax formulas, But\nI understoof it. wisther or net there\nThe conditions I have divised to-\nNation and we are increasing that debt\nin the discussions in our committee que\nthe regular income-tax plan, have no\nbe will be required to pay under which-\nwas any difference between the exemp-\ngetter with the surrenant to the Treas-\nat the rate of dollars a\nfrequently, and we find them to be a\ninmove as to DAS. But he is not going\never of these two formulas will produce\ntions as the income went up. There la\nury of the thirteen billions which the War\nday. I am not brind of this tax bill but\ngreat advantage in explaining compli.\nto exape a tax under this minimum tax\nthe larget tax.\nno difference between the exemptions as\nDepartment turned tack the other day,\npaint the way to nave other and greater\nI strail vote for c because se cannot in\ncated tratisactions.\nplan any more than be would under the\nYou will notice from this chart that\nthe means go up. If be decides to pay\nthem treatul times throw up our hands\nRegular theome TAX married sit 2\nVictory-tax plan.\nthe Victory tax computed under the pres-\nhis tax under the regular tax bis\namounts by recovering to the control of\nand reture to de anything to meet these\nchildren)\nNum les - lum to the securd trux\nent law in the same kind of . case M\ncomption is sase per child and $1,300 as\nthe Appropriations Committee the unex-\nobligations although we know that there\nGross Income\n42.00\nwhich a captioned \"Minimum tax.\" We\nthat would pay a tax of $38.50.\nbis marital exemption. This in tire same\npended balance in the letid-lease fund.\nhas been Day and almost eriminal tiegli-\nAssumed deduction et e pc-\nuse the Name eartings Bluitration at the\nOsnerally speaking the minimum Lax\nregardies whether bis gruss income is\nWhen Mils has been done we will End WI.\nent\nendorasts lb connection with these\nMarr exemption\nlive find bot. which is . group income\nWID be 3 little lower than the Victory tax\nby that process will have reduced our\n$2,000 or $3,000.\ndebta This tax bill da\n1.00\nDependenta deduction child-\nof 42,000. We allow the same assumed\nbai in come cases it might not work cot\nMr. CURTIS. No CDE pays the mini-\nexpenditures to the point where no\ndifficult because se are scrätching and\nred, 8250 -\n1\ndeduction of e perrant, which 39 $120,\nthis way for the minimum tax has been\nman tax who would be nable for the\ngreater taxes upon our people will be\nnecessary, and that the proding bill pro-\nscraping in every direction to NO effort\nLIA\nThis is supposed to cever the deductions\nset. up to take the place of the Victory\ninome tax.\nto get all the taxes we tan without im-\nof the sterage person for church and\nTAX as nearly as possible trut to relieve\nMr. JENKINS. I forgot to tell you\nTides a sufficiens amount nt Billing at\nthis time.\npairing and throwing our encomic\nNo tax\ncharitable contributions. and su forth.\nthe taxpayer of many of the complica-\nabout this further feature. Whenever a\nstructure out of\nMinimum the (married mill, 2 minim)\nNov wa c/me to the marital exemption\ntions and inconveniences that have tal-\nman makes this computation, if 14 da-\nMr. Chairman, in order that the Mem-\nThis bill Civides Italf into four very\nunder the minimum tax. This is only\nlowed with the Viciory tax.\nvelops be is tazable under either plan he\nben may have all the facts presented\nCircuss\nNO.00\nmust DAT under that plan which carries\nby the distinguished Senatar from No-\ndistinctive parts,\nFTM. If it were for . single man IL\nPint. Tax PO personal Incomes,\nAutomat deduction of e per-\nMr. CURTIS Will the gentleman\nwould be $500, We must not confuse\nbrasks, I ask unanimous consent to in-\n-\n4535\nvisid?\nthe greater LAE. He cannot ges out of\nnert In the Ramo as this point bis\nSecond, Tax on corporations.\nMarried exemption\nM\nthis evemptico with the regular esemp-\nMr. JENKINE I Vield to the gentle-\npaying under the minimum plan just be-\nThird Bacise taxes\nDependenta deductions a child-\ntime in the regular income tax compule-\nman from Nebraska.\nname be may not own 5. tax under the\narticle in the current lange of the\nPourth. Renegotiation of contracts.\nren. eno each\n20\ntion, This ST00 exemption is allowed\nReader's Direct heretatore referred to.\nThe tax on personal incomes has been\nLA\nvery in the minimum-tax plan. The\nMr. CUBTIS. In If true that an mái-\nregular income-tas plan. Whichever\nMr. LEWIS of Ohio. Mr. Chairman,\ndelection for dependent châdren is also\nvidual with an Income of $2,500 would\none is the granter of the two compute-\nwill the centleman yeld?\nincreased and this bill will produce\n-\nhave less personal and family exemptimes\ntions be must scrept.\n$154,800,000 additional lass, These\nTatable\ndifferent in this minimum-tax plan. In\ntaxes will come principally from an in-\nBUSO lasable at 1 germent, #23 40\nthan an Individual In the same family\nMr. CURTIB. Be para the greater?\nMr. WOODRUPP of Michigan. 1 yisid.\nthis case the deduction allowed is $100\nMr. LEWIS of Ohio, I would like to\nfur each child or a total of $200 in this\nstatus who had ao Income of $3,1007\nMr. JENKINS. The gentleman Le\nMinimum tax under short from ell\nUnite in the nurmal tas from 6 percent\nMr. JENEINS. No. All (ASPAYERS of\nright. Be pays the greater,\nMk the gentleman how we can justify\nVictory tax under part bw.\nto 10 percent and from an increase that\nhave, You will see that the total of there\nletring additional taxes upon the people\nwer result from the cancellation In the\nThis tax bill has one very\nexemptions and deductions amount to\nlike marital status with Has dependenta\nMr. Chairmafi, DOW 1 want to talk\nof this sountry at this time la face et the\n11.029. That sum deducted from $2,000\nhave the name exemption If they are\nabout renegutiation and I cannot do It\nthings the gentleman has Just related\nfuture of what is termed as warned In-\nnew feature about It. You will great\nrome credit\nthat A year or two SED we pained a 16th\nleases the Inalance of 1900, which in mub-\nassessed under the same plan, regardlem\nadequately la a few minutes. Never be-\nproviding for the lavy of the Vision las\nsees to the minimum tax. The entatesum\nof how much their taxable income may\nfore en the floor of this House have we\nreport? and as contained in Senator BUTLER'S\nThe tax on corporations will be in-\nbe There la a difference it they are\nhad a complete discussion of renegotia-\nThis Victory tas resched all online and\nTAX in this case therefore would be $29.40.\nMr. WOODBUFF of Michigan. There\ncreased, and le la estimated that an addi-\ntional $516,000,000 will be collected.\nwase earners who earned but the\nBo a CAD be seen that from this chart\naparted under different plans, They are\nUsh. is a comparatively\nwould be DU possible justification for\nlevying greater taxes upon the people of\nThis comes principally from the increase\n815 & week. The Victory tas ml jump\nunder the regular Income-tax law this\nallowed as 200 under upe plan and $700\nnew propostion from & legislative stand-\nparents, whole Income has been consid-\nunder anrther.\npuint. D. first name up for rensideration\nthis country at this lime than the taxes\nof the excess-profite tax from 90 percent\nto be very complex and 15-\nared, would be relieved from any LARER\nMr. CORTIS, I will state IL another\n. uttle more than n. year MD. We have\nto 05 percent.\ncult to administer and a was decided BY\nthe taxing authorities and by your -\nway. 1s It true that the individual bar-\nnever even had G. true consideration of\nbut under this bill we ceme forward with\n10040\nCONGRESSIONAL RECORD-HOUSE\nNOVEMBER 21\nCONGRESSIONAL RECORD-HOUSE\n10041\nvisions should like la have seen outlited.\n1948\n16 in the Ways and Means Committee\nuntil this year. This la & legislative mat-\nAnd Lhere were some provisiona that I\nAnd would est no more nother\nquick and be else Tita money would Fire wushed\nammarise, the can go to\nought to be permitted to take advantage\nvery first there has term much duem-\nthought would have strengthened the bill\nBoard to review the Entime of lbs\nof this Ise If be wents to do so.\nsinn of to the manner in which the rent-\nter that did not ariginate in the House.\nThe Sensie added an smindment onto\ngreatly that 1 and others who agreed\ntake when he Mini to be permised\nB. House bill. The central idea in the\nwith or were not able to have included.\nbis case UD with Washington be No\nInvestigation the and the can - to the tax\nMr. GRANT of Indiana Mr. Chair-\ngotiation law VMS better administered by\n- if be in not with the\nman, will the gentlezian yield?\nthe departments. and there bas been\nrenegotiation saw was find furnished by\nIf anytody should ask you what la the\nadmonisted that be would le for\nBorrd's certifient. Let me any to you that\nMr. JENKINS. I gield 10 the sentle-\npressure for its repeal.\nà Member of the House, and the Idea Was\nmain fault with this bill I think you\nin Washington. And as a fact 1 Virg\nsimily (be Investigators and the Board\nman frum Indians.\nThe Interest which the Committee on\nthen taken up in the Simile and an\nshould say to them that the main fault\nworks than three who quilty\nthose who came to Washlogton Unink fame\nDATE stakmed to the situation and there\nMr. GRANT of Indiana. Will refer-\nNavil Affairs has always had in the 15-\nwas address to House legis-\nin that e still gives los much discretion-\ntion, It was the gentivman representing\nary power to those who are to carry exp\nlaw. to the Inctics of would-be offere of the\nbir bm a decided improvement in their\nence to the right of appeal de DOTO to\npanding prescirement program of the\nautride toward the performance of their\nthe Court of Tur Appeals, 1 commend\nHave, and the responsibility which \"\n& Midwestern State who fird proposed\nthe renegotialisms. We attempted many\nThat le about the way Dorg diming\nin . courtents and just manner.\nthe subormittee for writing that por\nhave necessarily assumed for that pro-\nthe Ides. 1 refer to lbs from\ntimes to write into the All strong and\ndo not make this statement as = partime 1\npeople. It was a national digrace,\nThere is me feature of this bill that my\nvision into the bill; but on the further\ngram, naturally esused un to be avare\nSouth Dekota (Mr) CARE). Be B the resi\nunsmhigungs language that would com-\nnot triend the gentlemen from Okla-\nmatter of which the gentleman speaks,\nof these discussione and this pressure.\nauthor be is the man who furnished the\npd fair dealing 00 the part of three car-\nfins cerms et thought out of which this\nrring on these renegotiations best we were\nall, of the members of the Ways\nRepublican. I know that many, if not\n- (Mr. Dont) touched lightly,\nto - the gravest emimion in the bill\nWe eufududed that the questions which\nthe a a WITH important matter. I think\nas prevented to the House la the faijure\nhad artice were MP grave as to require\nprogram tax given. Bince this matter\nthearted and checkmated by them who\nthat he and I NETTE on it completely.\nto my In no uncertain terms that the\nan investization by Into renegotiation,\nhas never been adequative discussed la\nhad brought down upon their heads the\nMesna Committee on both tide 4th and\nwith me. I have brard many of\nagain to the matter of the unron-\nbill shall not apply to contracts that were\nand its administration by the Navy De-\nthis How is is unfortunate that we must\nanathemas et No many sorvity aggrieved\nattentionality of the retroactive features\nmade and the goods delivered under it\npartment and the sther departments\ncrowd D. so Taxt What do we\nAmericans the had been unjustry in-\nexpress Chemselves I want to give mái\nof 154 present law, AN I have terretore\nbefore April 28, 1942, because the gentle-\nwhich were given responsibility for the\nmean by nt contracts?\nposed upon. 1 am not defending any\nto them and to others who Witz able\nstated the present law west into effect ⑉\nman, who is so able and distingulabed\noperation of the law. We made . are\nWe mean that in 1942 Curstress macted\nfull study of this, and held lengUra hast-\nthiering contractor who might have\nto come right our in their own them\nand American citizenship to ansert them.\nthe 20th of April 1942. The Bupreme\nlawyer, has just sald that is M plainly\nlegislation that provides that In CRIN\nCourt has repeatedly held that contracto\nuncomstitutional as tothise cases. Some\nInp. at which representatives of the\nbeen defrauding the Obversment. I\nwhere the Government tas made a 030-\nthink such men should be made to dia-\nneives and say, \"This Ching must 11(g)\nNow we are trying to stop R. Tn the\ntreate property rights that cannot be\nof these days somebody is going into\nNavy Department and of the dther agen-\ntruet for the preduction al insterials or\nend we provide a mart review, Mart\nvidaied by retroactive provisions of lique\ncourt and Usis whole Using la going to\nclas, as well as a cross untion of bost-\nand should be punished criminally\nwhich the Government neided a\nIf positife.- I am unly interested tn non-\npassed. The anh amend-\nbe declared unomittitational, wishout a\nness, testified. Subsequently, the com-\ncarre un the and that In name there and\ning a man who contracted epenty with\nof these who complained WERE\nant of the Constitution provides that\nseparation of that part before the effec-\nmiller filed A report with the House. in\nexcellative profiss coming to the contractor\nfor . sours review of some kind, Wins\nproperty cannot be taken except by dun\nUve date of the law, and chase and con-\nwhich all of the questions which had\nof submittracion the Government muld\nthe Government be governed or trrated\nopenly by the\nwe provide in this bill is bel. perfect tu\npromit of Saw. What is due process of\nfusion will fullew.\nbeen ruised were thorought explared.\nreneguliate meh contracts with the por-\nNow let us - what we propose to do\nIt is a great step in the right direttis\nse is not yet in this country property\nMr. JEMKINE. I agree absolutaly with\nThe commities print of this report was\npose of respuring como of these ex-\nremive profits We BEF. all ta favor at\nby way of amending this law under which\nWe provide that a central feded of In\ndetermined by buresurrate. That la\nwhat the gentleman says. Arrogance\nmade available to the excibin of the\nprovide time millicosire but we must\nan trusch Injustice has been dope. In the\nmembers be net up. These = the\nand tyranny carried - by buresurrata\nWays and Means Committee prior to the\nBrat place we establish A cut-uff date be-\nto be selected from the departments et\nstrictly a Indictal function and 11 to for\nthe cuarta to determine and 1 that\nunder the guise of patrintism is not safe\ntime that that committee's (TE)\ntake these profits lealtr and monding\nFund which this renegntiation business\nthe Government which enter Into the\nUnine nuresserate act as though they\nand net for the best interests of the\nthe same subject began.\nto the Constitution\ncontracts, I preferred that they De civil-\nHere to A provision of Lhe law livel bas\nlage from among businessive and that\nDIC the Supreme Court, but I think this\ncountry.\nThe Ways and Means Committee, in\ncannot run These fellows cannot run\nen forever, This bill under consider-\nDourt will uphold such . long line of\nThe CHAIRMAN. The time of the\nthe report which la now before the House,\nbeen the base of much circlusion and\nstinn provider that no rennectiation\nthey be appointed by the Preddier Bu\nMatrious decisions that have been\ngentleman from Ohio bas expired.\ncame to three general conductora with\nI think much unjust and Birgat actions,\n\" was throught best since the was le -\n(Mr. JENKING asked and was given\nrespect to renegotiation. n concluded,\nGive attention 45 1 mad:\nshall be had on contracts entered into\nhanded down 8 this question.\naller the end of the war.\n. temporary board that fl. be\nPersonally, I should like to and this bill\npermission to revise and estend his 20-\nfirst, that the law should be continued,\n(6) This (c) shall y applicable\nAnother provision oz this bill tends to\nmuch as the board is new set. - Theye\nmarks in the Record)\nwith amendments, until the termination\nla will end sobsonments\nent of with April 28. 1942. Dut what\nthat time of these on the present\nMr. DOUGHTON. Mr. Chairman, I\nof hostilities. With this our committee\n- and to all contrate NOÉ submittacts\ncurb the activities of these energatic em-\nfave Unise renegntiation authorités\nyield 10 minutes to the distinguished\nis to agreement. After a thorough ex-\n- werein if son WHOD con-\nIllen, I relee to the providen which\nwill be reappointed. They should to\ndene? They have taken millions and\ntracts or submitted embain .\ncleaned out, This bill provides that this\nmillions of dollars out of people Me-\ngentleman from Georgia TMr. Veneral.\nemination of the question. we came to\nthe m mosplum classe, - ni - pr-\nrains the limit Tram $100,000 to $500,000.\nboard net tip rules of procedure \"D that\n(Mr. VINSON of Occrgis niked and\nthe conclusion that remegnitiation plays\nment pursuant to mile or subjec-\nThis will permit name of the little fellows\ngally and unconstitationally. Some of\nto escape. It will let most of the little\nthe public may know what to expet\nthose whom I think are among the\nwas given permission to revise and ex-\nEXT Important a part in the obtaining of\nTM 249 prior 5 Agent 28, 1942\nThe teard should do this at noce and\ntend his remarks en the Recount\nthe articles of was at fair prints\nThese who sought to enforce the re-\ncontractors out Although the depart-\nchief perpetrators sat before us in our\nnotify every contractor of the rights\nments It fini indicated their approval\ncommittee and acknowledged that the\nMr. VINSON of Gemgis. Mr. Chair-\nto the public the repail would the unthink-\nnectiation law procended to remesotiale\nof this change I understand that they\nunder these renrgotiation proveding\nmight have done an. The have taken\nman, I want to take this opportunity to\nable fee the duration of the war.\ncontracta which sentaiged no rebertia-\nhow see that some will eseape their\nIf this la done contracters may the\nmillions and millions of dollars from\npay tribute to the dislinguisted chair-\nBecond, the Ways and Means Commit-\nknow their ORD rights and will loss\nman of the Ways and Means Committe.\nles concluded that there la just ground\nMon claums and contracta on which the\nrights of the purlies had all been estab-\ndutcher and wish this provision were\ncontractors. Butte by renegiriation\nthat they are not bound by the\nour beloves friend the gentlemen from\nfor complaint about the existine las and\nItshed tefore the law was\nomitted. Personally I was net strnng\nand name to agreement This raines\nNorth Carolina (Mr. and to\nIts administration, particularly - ap-\nwho came to are them. This board vi\nfor this change for I feel that anying\na service question. Shall we speak un\npassed, They nought to vinlate con-\nAlso be charged under this law with 5a\nend member of that great committee.\nplied to the small contractor. As one of\ntrants daly entered Inte before the law\nwho has been unjestly enriched should\nheldly and compel restitution because of\nfor their fair and Intelligent approach to\nthe amendments designed to relieve the\nduty of hearing aggraved\nunder which they were set up as a board\npay up regardies of whether the amount\nthe question of constitutionality or shall\nwho are not with the declaren\nthe important question of renegottation\ncour of such complaint. the Was and\nof his contract was $100,000 nr $500,000.\n- EIFO to the aggrieved parties the right\nand the equitable manner in which is has\nMeans Committee has resermended that\nor group to de rensgntiating. I main-\nI support this change because I feel it 18\nof the inspectora. This board is expected\nto appeal, B we would take the course\ntain that this was unovestitutional and\nthat right and Justice would Cartate we\nbeen hundled, from the standpetnt of\n- amendment the adopted comptime\nbest to play safe against thom who\nto deal justly and La supposit to back\nabsolutaly informable.\nhave shown & disposition to be unfair.\nthat Congress expects that the (LAC-\nboth the Government and the contractor.\nfrom renegotiation contractors show\nwould income all those who have born\nWhy do an bled Koother\nchamber proceedings of the past -\nThe great ethairman and his able com-\nannual renegotiable sales do not exced\nOne of the must military provistens or\nthis renegotiated to demand refunds.\nmitter are entitled to the thanks of the\n$500,000. We too, felt that some hard-\nflon law? We have this law of lad Fear.\nnet be parried on in the foure This\nthis new bill is that provision which neta\nBeg sime many of them have signal\nHouse for basing presented to us a great-\nship cases had occurred. but we felt that\nI will tell por why we need 12. Because\nboard has 6 great opportunity a releis\nup . Tair sourt review, Ben your life,\nsuppliment settlements probably the best\nItemif. A strong board imbued with 6\nly Improved statute dealing with renego-\na recurrence of them could be prevented\nB bu benn administered en shamefully,\nwhen these no-called renegotiators went\npúry would be to side-step the consition\nIt has been little abort of n. national dis-\nName of fairness could carry this unit\ntiation. Cunflicting views were recon-\nby . more extensive use by the depart-\ninto a contractor's office and said they\ntistal question and permit all these con-\narace the WAY the law has loes admin-\non to the satisfaction of the contractori\ndist. They have done a good job under\nments of their powers under the law to\ntracters to appeal their cases if they vie\nistered. To what do I allude, 200 MA?\nwith going to negotiate, about all they\nmost difficult and . care-\nexempt by administrative action onn-\nand to the financial benefit of the 00-\nto do se. That would include three who\nWhat did they do to call for such e earti-\nwould da would Der to find our what the\neriment If they clean house and on-\nhave retued and paid A: will as those\nful analysis of the bill will readily cause\ntracis which were nut susceptible of\ngatien from me? For days and days,\nbusinessmen's bankbook showed and\nwho have not settled or been pensen-\nanyone who studies # to cunclude that\nexperire contracts. rather than by statu-\nVinne the contractors and the punue that\nbefore uur committee, Ane American\nthen they proceeded to demand about\nVatent Someune might say \"That men\nis protects the Government and at the\ntory exemption. While this recommen-\nthey want to be fair most all of I\ncitizens from all over the Nation, non-\nall be had Eridence before our com-\nsame tite in fair to the contractor.\ndatim of the Ways and Misso Commit-\nreneguitation matters will be diposit by\naught to stick to his agreement\" 1 ay\ntractors and businessmen, came in and\nmittle and information that has come\nthem and no further appeal sill te máin\n\"na\" He ought not to be compelled to\nThe Committee en Naral Affairs, M\ntae was disapproved by . majority of the\npound met before us their chmplaints\nto us Individually will convince any fair-\nby the contractors.\nstick to his agreement, because he had THE\nthe Ways cod Menns Committee has gell-\nMaral Affairs Commitire, I feel that и\nerously noted in sta report, has been euro-\nshould be accepted in the interests of\nagainst the arrogance and the trranny\nBinded Bag that threats upen and COP-\nCharge to know his rights and because\nen Wire made in many Cases and that\nPer fear that the Board will ml we\nof theme individuals who sought to carry\nthe Date and conciliatory attitude as\nlifer here is his neighbor with the came\nserved for many years with the problem\nharmony. While a is not exactly what\non these renegoliations. Out of that has\nmany men paid out millions of dollars\nkind of of contract who has net get boen\nof controlling profils on ⑉ contracts.\nW favored, its purpose 15 pud and is\none this new proposal. We here pro-\nwithout knowing how the renegotiators\nthe task requires, the has -\nvided in this bill that the sectived party\nreprestiated That nelgibor la going to\nThis led to & serise of public\nshould be effective in prevention hard-\nbased their demands. Under the old law\nbearings, which disclosed buse war\nship to smaller contractors.\npore to acound the law of last year. This\nmay carry Isis case to the Court of Tall\nor the tenefit of the provisions of this\nbill before you la far from perfect; it a\nprofits aiready belor made on was con-\nThe minority report of the Ways and\nthe contractor had no relief. Be had Du\nrecourse and when he Miked for a bill\nAppeals for a review. This will\nnew law. The other man should have the\nwho chance. I say to you that that man\ntracts only a few months after Pearl\nMesso Committee goes much further\nnot Bearly sur good as 1 would like to\nof particulars as to Why be was, being\nthen bear the matter de DOVO, D the\nhave it, but as the best we can do under\nwhe was renegotisted, figuratively at the\nHarbor, and finally resulted in Cangress\nhowever, in its findings as to the hard-\nthe eircumstances. In It are some pro-\nrequired to pay a large Him of money, be\nyers would say. That means the of\npoint of 5 gun, ought to have his day\nesseting the renegulistion law in an ef-\nships imposed on contractors by resego-\nthe told that he had better pay and pay\ncourt would hear 11. all arer from IN\nfort to enntrel such profits. From the\nlistion than do the majority reports of\nbeginning.\nof freedom, his day to court. and hn\nNo. III-4\nRegraded Unclassified\n10042\nCONGRESSIONAL RECORD-HOUSE\nNOVEMBER 24.\nCONGRESSIONAL RECORD-HOUSE\n10042\n1943\nellber the Naval Affairs Committee or\nthat that review will take. Accordingig,\nI urge that the Water and Meins Com-\nfor the part of Congress to make\nestá by the shipping industry per ship,\nand allorated end unallocated, or - be\nthat the thester tax has tem rained 104\nthe Wase and Means Commitare, or, in\nfaci, than the minority report of our\nmilter's recommendation to this respect\nnet As time Member of the Roue\ntinn, post-war reconversion in\nwith one to its name, has been ruming\nstated, committed end uncomitted,\nperont. WIII Unle tax be paid by the\nfrom I to . persont.\nThat amount at the current rate of et-\nORDETS of moving-pécisure have them-\ncommittee. The minurity report of the\nbe adopted.\nmean my vote to IN\nWarn and Mesica Contruttes\nThe report of the Ways and Means\nD\nThe CHAIRMAN, The time of the\npenditure of $7,000,000,000 per month\nentres or by the people who buy the so-\nrentleman has expired.\nww to carry the Army and Havy For up-\nlicknis?\nThe institute before bolts M no-\nCommittee, in its third general conclu>\n5\npista WIER instances where time administer-\nin then 11 should be done by\nMr. DOUGHTON. I yield 5 minotes\nward of a months. In my estimation\nMr. DINGELL It will be paid hy the\ncien, recommended that certain changes\ntag the respiration law have been arrigant,\nin the law should be made to make it\ne - protirman from Michigan DMr.\nthat amount of money plant up abread of\npurchaser of the admission tickets. I\ngb-banded, and BFFD tyrannical in desling\nthe bill, and not be\nthe spenders encouraged loosenna. It\nmight any in was originally proposed at\nmore worksble and equitable. Thus It.\nwith moveries and The\nreport. Apart from this DAB\npresent Mr. DINGELL Mr. Chairman and\nencouraged the purchase of the entire\n200 perment, but the committee out is in\nprovers prior 12am have in a number of\nrecomends an amendment requiring\nInstitutions, less whome They have da-\nthe filing by all contractors of financial\nands fald down in the committee's bell\ntion, I favor the adoption of the thans.\nmembers of the committee, I em not\neximon production, so a will stated in\ntwo, However, the tax a expected to be\nto take very much time in évelling\nthe nawspapers. IL encouraged the pur-\npaid by the purchasers of the Uckets.\neximinated M between contractors,\ninformation with the Board, Our com-\nmitlee also urged such an amendment,\nalso recommended that the function to\nThe Ways and Mosta Committee\n- the bill except to my I shall vote for\nthese of the entire pack. It\nMr. MANEFIELD of Montans. Dues\nallowing DOB . protesties than go-\nother VIMI the - or similar circum-\n#: Under the the tall\nencouraged the expenditure of $12,000,-\nthe estimitive feel that this La guine to\nfinding that it was necessary to the -\nrenegotiation should be ominited - If\nconsitutes the bet effort of the commit-\n000 for the Pertaarm Building, when\nIncrease the revenue considerably?\n- Alex they have Laid dures. direct\nclent operation of the law.\nsud Impline, in vor DI - the submis-\nThe report of the Ways and Meana\ntrue new board, rather than in the de-\npartnerate themselves, Our committee,\njan. It II not my bill: 18 la not the bill\nwe in Consteins allowed but $32,000,-\nMr. DINOELL We were quite estis-\nitm of POLITACION are subcritrations tu\nin considering the problem, reconnized\nof MY individual Member. I do not\nBOD. It ensuraged the construction of\nthes that that would not injure the min-\nUse findings. No nww nt that decisions\nCommittee, as well BE our report, cnn-\nuntil II to necessarily the majority or\n27 bridges pedr the Pentagon Building:\nnues: that there would be no diminish-\nby the bas been proitted. Commission\ncluded that It was only equitable that\nof have bei bacamed\nthe desirability of having e uniformity\nOF placenty siu, I think If to the -\nthe construction of 40 miles of readit; the\nme returns. and that the industry. under\nthe contractor should be Informed as Le\nthe facta upon which the determination\nof approach on the pari at all engaged\nprite sott of the committee. and under\nobliteration of une or two lakes in me\nthe circumstances, rould well stand the\nset their war work invelved with by have\nin We felt that this all-\nthe the best that can be\napot out there and creating B pew lake\nIncrease.\nbe to go the promo\nat excessive profita is made, and of the\nready fluid been attained by the volum-\nand al une present time. I thought poo-\ntn another aprit. n also encouraged the\nMr. MANSFIELD of Montana I,was\ncody to be preo . - the end\nreasons why the Board came to the can-\nthrough et REDUCIAN su themseires\nclusies that It did. The proposed bill\ntary and informal coondination which\nthe till misht extend & little bejond\nalteration of the entire northeastern\nthinking of the people who pay this tax.\nI am net - familiar with the record\nthe departments in Penegatta.\nthe are which et is expected It. will\nsection of the State of Virginia to con-\nDos the gentleman think that unis will\nwould require the Board, upon the re-\ntitin had achieved. I: was our thought\npartion with this project, and is en-\ndiscourage attendance and bring about\nlatore the Ways and Means Committes\nquest of the contractor, to furnish euch\nA statement to him. The absence of such\nthat the creation of a formal Joins board\nproduce, but that was not possible. and\nBY time did nut prevail, As . canse-\ncoursed such local practice as to cause\nless tas receipts from that\n- perhaps I should be I - familiar.\nhowever, with the whole record of the\nR. requirement time one of the principal\nwould do no more than formalize AG del-\nrenaement which already existed. : ME\nquitic the but is S. little short of what\nin Michigan recently the sale of $1.400-\nMr. DIRGELL 1 think I animered the\nI thought was proper. I advocated. as\nnee worth of standard tools which were\ngenürman that there will be DU decrease\ninstitutions before the Navel Affairs Crim-\ndebects to the oristoal law. and 1 think\nno real objection to the creation by Mai-\nsold M junie for $40,000 and then per-\nin the vultime of revenues.\nmitter. When the minority regort of\n1% important that this defect be cured\nyou recall, saving half and mising half\nlife of much a board, difice une alreads\nmitted them same people to all back\nMr. COOPER. will the\nthe Win and Means Cinsimitiee eage\nnew by the promot adopting of this no-\nof what the Treasury requested. But\nthat the record of our relative la re-\nunimendation.\nexass by the voluntary action et the a.\nhere we have & bill of upward of $2,000.-\nthese standard toola to the Government.\nyiski?\nplair with informaty at the character B-\npartiments. And since the botrd M to 3\nThe CHAIRMAN. The time of the\nMr. DINGELL I yiziá\nUnder the old lew. there was no fixed\n$00,000 and I still Usink, even according\ngentleman has expired.\nMr. COOPER My in that\ndirated, R is entirely runtrary to the\nthe wishin which the departments were\ncompaned of persons selected by the\nto present-day calculations, $1,000,000.-\nrequired to end a renegntiation proceed-\nheads of the procurement Afficies to\nno MI an awful lot of money, especially\nMr. DINOELL I aux for 5 additional\nthe increase to revenue is estimated at\nfarte Members of our committee chade\nwhom the board's powers of refegitis.\n= when you tack it en to what the tax-\nminutes.\nabout $163,000,000,\n# point inquiring of withouses who ap-\nins once It had beve begun. It rould\ntime may be delegated, the proposed M-\nMr. DOUGHTON. I gield 0 additional\nMr. DINGELL I thank the gentle-\npoured as te line mander in which they\nou on indefinitely. This seemed be es\npayer LA expected ta contribute alreads.\nMard DIED trialed top the\nunfair and we requiremend that come\nrenarment preserves the dow relation.\nThis to an additional amount and will\ninimules to the gestleman from Mich-\nman, and I gield now to the gentlemant\nship between procurement and\nfrom Arkansas.\nWithout exception, the Wilnesses who\nmust that ultimately the taxpayers of\nloan.\nlimitation be placed in the law, The\nMr. DINGREL And 11 permitted these\nMr. NORRELL I cannot support any\ncame before instituted as to the fair and\nWas and Missi Commuttee has pro-\ntiation. which is non of the chief value\nthe United States will be called upon to\nMATTLE purchasers of the standard taris\nbill that provider exemption ter merried\nequitable marities in which the members\nprosed that the Boint be required la bring\nof rebegotiation Accordingly, that\npar $45,000,000,000 to $47,000,000,000.\nto sell them back to the United States\nmen with an income in excess of $2,000\nof the Price Addintment Boards lined\namendment should also be maciet\na renegotation proceding to . esnelu-\nMr. MICHENER. will the gentleman\ndealt with them. and praised them fur\nThe of the Wass and Man\nGovernment as per tonis. In addition\nin one amount, and children in the\nsion within ] year after Re Deginning.\nraid)\nMr. DINGELL I yield to the gentle-\nto that It encouraged the sale of a Int of\namount of $350. and then have those with\nthe competent and fair manner in which\nThis la an excellent amendment 4nd\nCommittee also rerommends the adop-\nthey performed & difficult assignment\nshould be adopted.\ntion of en amendment authorizes the\nDEF machinery and aquipment down in\nIncome less than $2,000 unly receiving\nman trom Michigan.\nArkansas M junk or material,\nexemption of $790 for & wife and 8100\nOur fluding of fact as to the fairmess and\nAnother defect in the old law was that\nheard to exempt from -\nMr. MICHENER. Mr colleague has\ntracts for standard commercial articles,\nwhen 34 was not nurplus at all. Only re-\nper child. Is that provision to this alily\ncompetence of the Boards was unani-\nexcusive profits were defined as thes-\nthat bin thought was that we\nsently se - stare Quere la $130,000,000\nMr. DINGELL I am not point le go\nmine, and our resort hears no evidence\nwhere it appears that competitive code-\nsive profits No standards were placed\nshould caise half of the amount saked\nexpended for an ou pape line in name-\ntechnical in my to BY triend. I\numa which the Unternet in the their-\nUoba affecting the price of such ande\nto the law which the érgariments were\nby the Treasury and nave half. I take\nthing or other up in Alaska that may or\nwill of this to him. that I em is entire\nIts report of the Ways and Means Cop-\nrequired to follow in the determination\nalready exfit. This amendment marry\n& then, my colleague believes there can\ntruttee can be based.\nmay not be justified. MY aim sil the\nanned with htm with regard to eump-\nof what were excessive profita, Our\nspella ous in greater detail a power of a\nla enved today la Government expendi-\nway through has been to try to save\ntims If there is to Inc and preference\nNar to there any valid buis tos the\ncommities falt that st eu esemilial that\nemplion already enjoyed by the dipart-\ntures cne-half of $10,600,000,000 a year?\nstatement in that minority report that\nMr. DINGELL I think Unit is our-\nmoney that is belog Incerty spent and\nshown. I foil exactly 33 the gettleman\nments, Since it does not require, bd\nthe Boards eld not permit review of their\nsuch clandard be written into the law,\nand on this point the Ways and Means\nmirely authorizes, the discretionary a-\nrecup stated, provided se get ourselves\nthat would have nothing to do what-\nfreis about married men with children in\nvità the war stort.\nthe lower trackets. The grestest one-\ndeclares by the mutte If Usere has\nCommittee The standards\nemption of certain contracts in circus.\ntate the right frame of mind as to what\nwhich have been priposed in the bill now\nstances where fair prices WID to cb-\nthe muress are when this maney esn\nMr. MICHENER. I want to congrat-\nsideration shmild be given there. How-\nbeen any limitation em the right to sp-\npeal to the ourts, that limitation has\nbe ared, I do not think on the onti-\nulate my collearus, the gentleman Irm\never. the committee did the very best B\nlained without the need of\nbesta found en the statute l'helf. and not\nbefore the House are in the länguage\nIL does DO violence to the principle of\nMichinen (Mr. on the state-\ncould under the circumstances.\nof the bill luelf, similar to those which\nharry running expectives of the Covern-\nI proposed in the bill which I introduced,\nrenegotiation, and should be adoptet.\nment you can safe that amount without\nment he has just made because be is an\nMr. COOPER. will the gentleman\nin the activities of the departments.\nWith the principal conclusions and\noutstandine leuder in his own party.\nyield?\nPer the very reason that the present law\nis not clear as to the existence of a right\nThey with designed to lay down definite\nwising mit all of the runsing expenses\nMr. DINGELL I thank the gentle-\nMr. DINGELL I yield.\nrecommendations of the Ways and Meas\nallowed Tur the expeduct of the various\nfur the Board to follow, and\nMr. COOPER. As not who has had\nof espeal to the murts, both the Ways\nCommittee I em in\nREMORES that you can wave the for ex-\nyes to give the administrators a certain\nthe privilege and pleasure of serving on\nand Means Committee and our commit-\namount el needed flexibility in the oper-\nMr. MICHENER. will the gentleman\nMode, with the Army, with the Nary,\nman. Mr. MICHENER If I had made that\nyield?\nand probably in the sonstruction of the\nstatement, LA might have been charged\nthe Ways and Means Committee for\nles have recommended the insertion of\na provision In the law specifically cob-\nallon si the law. While I agree with the\nMII Haelf, I am somewhat disturbed by\nMr. VINSON of Georgia. 1 yirld.\nmerchant dupe. There to an seful lot\nCost = was a partinan statement. But\nmany years with the distinguisbed gm-\nlanguage in the committee report, where-\nMr. MICHENER. The ventimento\nof latitude and maybe locieness, et I\nwe will all be glad to read the gentir-\ntieman from Michigan (Mr. Divertal\nferring the right of appeal We only dif-\nknusa much shout this subjett. E\nman's statement as to ts, because n is\njust want to testify to the fact that he\nfor 4b to the kind nt an appeal that\nin it as said that-\nthat I brought nut la the discussion\nshould be allowed. The Wass and Meins\ncommittee has ECDP into и extentively.\nwills the Budget Director before the\ntrue and If Let fearless, and 1 em glad -\nhas bern the leader throughout sill the\nCommittre bas recommended that re-\nToa comitte believes that to computing\nWhat can you tell the House as ID the\ncommittee. and unly recently we find\nare to have the corperation of the dis-\nyears to Institing upon mure genermus\nview of the Board's decisions shall lie in\ntu the problems in consection with\npritits shows pm\namount of profita being allowed unter\nthat the Army did disgorge $13,600,000.-\ntinguished gentleman trum Michigan in\nexemptions for dependenta.\nin applying beta (#).\nNavy war contracts?\nan endeavor to slap this waiteful and\nMr. DINGELL I thank the paile-\na de 0010 proceeding before The Tae\n000 previously appropriated. I hoge\nCourt. While 1 BE of the opinico that\nMr. VINSON of Genraia. I can MF\nWhatever I might have said at the time\nneedlen expenditure of public money.\nman for his observation\nso entirely DEW brazing by The Tax\nThe evidence before our committee\nto the distinguisbed protimen Inc\nM the Budget Director ultimately\nMr. DINGELL I thank the gentle-\nMr. BREHM. Mr. Chairman, will the\nCourt. after the Board has already tried\nindicated very clearly that the problems\nMichigan that we have reality made a\nmiched the Army and might tatt had\nthe the and handed drive au decision, to\net post-war reconversion, Unrush very\ncomplete unálysta and an audit et event\ncom effect in bringing about this volum-\nman. Mr. MANSFIELD of Montana. I\ngentleman yield?\nMr. DINGELL I fild.\nwasteful of both public funds and mão-\nreal and requiring penmpt action by\nLary return of unexpended money. As\nwould time to ask the distingulabed (s)-\nship, and by using the with\npewer, the important thing la to name\nCongress, were not susteptible of mis-\nthe sentieman from Michigan (Mr.\n6. question DG el particular part\nMr. BREHM. Can the gentleman sett.\nship\" I mean n. combitant ship that has\nknows, the Army and the\nof the MI before us for consideration to-\nor what la the masimum income which\nsome form of juritimal regiew of the de-\nLion through renegotiation. 2 am atraid,\nbeen delivered to the Mays. the has been\nfinished. the contract closed end # he\nNavy, I believe, have appropriated and\nday. I have received a number of chen-\n. person may have and still 1000 abder\npartmental decision, Bd long as Judicial\nunless there is cirrification of the point,\nmenications trom small independent\nthe mánimum tax payment, as explained\nreview of name non is provided for, 1 am\nthat the language tn the committee re-\nbeen delivered to the Navy. The result\nhave before them, or did have at the\nnot disposed to quarrel ever the from\npart may furnish Name basts for con-\nmotion-picture thester operators to 317\nby the gentleman from Child (Mr.\nstruction by the courts of an Intent un\nof that shows that after\ntime I examined Mr. Bmith, the Brudent\nState, calling my altention to the fact\nJenerali\nend before taxes, IDe prevailité profes\nDirector, $206,002,000.000 appropriated\nRegraded Unclassified\n10044\nCONGRESSIONAL RECORD-HOUSE\nNOVEMBER 24\nCONGRESSIONAL RECORD-HOUSE\n10045\n1943\nMr. DINGELL I do net have the No\nobliterate or cover 14 when talking to your\nport before me. but I think that la presity\npeople.\nclearly covered in the report of the 0000-\nvoluntary at the\nA $200 be The\n- recemental Institution at wut Amar-\nFifth Providing for the discretionary\net certain was contracts\n- and of unwite true,\nexemption of standard commercial arti-\nwas provisid Inr in section 403 of the\nMr. KNUTSON. Mr. Chairman, I\nmiller.\nrield 5 minutes to the gentiewomen from\nhave ance to arrvitude. On, nn, they to\n- na DISAPARE in the quartion,\nclas. as defined in the will in FASES where\nBirth Supplemental National Deferme\nlot file a Joint return, but Nine BOG\na quick frankly to you, not Duet\ncompetitive conditions have been 19.\nApprepriation Act of 1941 in Aprü of\nMr. MILLE. If the gentlemen will\nOhio (Mrs. Bottow).\nturn to pages 18 and 19 of the committee\nof three days. particilario\nOF - nº married - but in the\n- e of - duestant the wirld.\nstored,\nthat your It was intended to accomplish\nMrs. BOLTON. MI, Chairman, is is\nmy Intention to bring to you one et the\nmany, when you have children. n may temps\nTMI M - M far-reachtols - that, because\nBirth. Br establishing a new war con-\na very wholesome objective. This oblic-\nreport. that information la set. out in\ndetail.\nprovisions of this law-actim 106-\nAnd what about another answer\n- encywhere watch what American\ntracts price adjustment board of five\nthe was En privent unconscionable pruf-\nMr. DINGELL I thank the gentle-\nthe Treasury do Without these Can\nfor - ATA. and If the presentive\nmembers representing the Treasury,\nIts and profiterring on was rentrate by\nwhich deals with persunal exemptions\n$200 items? It was my Idea that many\ndi - of throught is penitted to\nWar and Navy Departments, the Mari-\nproviding for the renegotiation of these\nman.\nand credit for dependents.\n- - mandatory juint tax return prin-\ntime Commission, and the Recunstrur-\ncontracts in which escessive prufila very\nThe CHAIRMAN. The time of the\nOn page 16. line 13, of the bill M now\ncreased faxes Were bonded a\ndell' me WORTHER everywhere will test\ngentleman from Michigan has again a\nthat the cotimittee has felt the 4d\ntion Pingnoe Corporation, in the nature\nbeing realized or likely to be relived.\npresented under (b) Credite for mini-\n- beaver than they - test.\npired.\n- normal tax, subpersgraph (D)\"\nwere being pretty heavily People\nThe of enactment would be theat-\nof . board of review. This board will\nThe act provides in subsection c-\nMr. DOUGHTON Mr. Chairman, 1\nWhy should this special amount ta\nreview, on petition of the contractur,\nThe Secretary of such départment in MD-\nthere a this provision, I quote:\ngleid the gentleman 3 additional minutes.\nmilled when OTDE and over the n-\n- em esil asse that there en may vers\ndecisions of the departmental boards.\nthorland and directed. in file opin-\nMr. DINGELL Mr. Chairman, I\nMarried person living with husband or\nDID who their women untilled to\nProm these proposed amendments it\nIm equivalive profits have term =\nmitter In the of . married person living\nenamimes consent to proced unit of or-\nhave declared themselves Reside it. Do\n- property. and. to a way, rather resent\nis quita evident that the Wase and Means\nan Harly to be reslined from any\nwith husband - with, If a juine return is\nder for this 2 minutes.\nthe people know now? Is the Was knal\nmm postine of tredito under the law that\nwith euch Department or this any subse-\nCommittee realized that the present Be-\nAird e if one spouse time no - income, .\nThe CHAIRMAN, Is there objection?\nMesha Committee staelf fully aven or\nare DATE son. Them are epiratid alline for\ntracts (3) to respute the -\nnegotiation Act is not carrying mit the\npersonal exemption of $1,200 er if mái bas\nThere was no objectine.\ngrien Income and no joint return to RIAS,\nwhat has been tucked away in the -\nKEP would - the duk back, who are\ntractor - to recegature the\nof this bill?\nperforme conware of the parth of time and\nwill and intent of Congress I think It\nmotral\nMr. DINGELL Mr. Chairman, In\npersonal exemption of $500. If a Joins DE-\nTet me bring to your the\nthe - time and experience have\nmay also be seid that the committee\nIn plain words the purpose of the law\nanalyzing the action of the Home on yes-\nturn is Sed, the husband and wife shall IV-\nprécedure of the committee as I\n- start,\nwas and is eugnimant of the fact that the\nvu to afford a special remedy against\nterday which placed the stamp of ap-\nseive COM personal exemption of 81,200\nTail - therefore remind you that .\nmaladministration of the law presents à\nproval upon cevestating and unre-\nin the aggregate.\nstand is\nprogram on be meansed to . grad\nserious menace not only so our form of\nfraudulent war prafiters. Its function\nstrained inflation. deduct from the mid\nAssin, on page 17. line 15. \"Credita for\nThe committee ruled that no\nsere for the of her von. What\ngovernment. but to our esonomar. In\nWM on supplant action in tart or fraud\nwould the taken in upen hearings relative\nET to be the targett own of\nfor the recovery of unconscionable and\nminimum normal tax.\"\nfact, I have heard of the com-\nand merciless Baures a clear and unchal-\nto mandatory joint returns. This burne\nto the Dellad States, to this organ-\nfraudwent proñta, which court sellon in\nall opportents from expressing Quitr\nMID to be made a transity to the who\nmilter from both sides of the siste es-\nJengeable result waich places the stamp\nOn the face of Id it looks Insocuous\ntrand constituted the only remady for\nof inflationial upon the Republican Party\nIrnes great concern M to the ultimate\nenough, perhape, but on accond reading\nUF\nthe INDUSTRY of with trandulent profits\nof this Nation The flaures do not IN-\nthe thoughtful person Immediately sees\nviews-(I berred all witnen. The TRUE\n141 - nos Ind ourselves to an setton that\neffect of the administration of the act 11\nin World War No. 1. This claim of so-\nand this cannot now be expanged from\nthe implications Here is the whole\ngiven was that the oxmitities had teste\nwold take tres TEARS group of would the\ncarried to the logical conclusion on our\ntions bed dragged out so Indefinitely that\nthe Retore.\n- right of being persons under the\nsystem of government and sur free insti-\nmatter of mandaiory joint returns up\nall nacessary evidence in previous -\n- M - moment when - estat usk if that\ntime of them of lest dragged on for 25\nhearings. These benrmes, LE I\ntutions.\nThe no-called sound-money party has\nagain, and se ocmouflaged that most\nber correctly, were held on 1942 Sta\nTHEY - only the - come have\nyears and ⑉ disposed of about the Umr\nbersork. has before the inflationist\nthen the membership of the committee\n- gine bnk the Purther the\nThe proposed first four amendments\nprople Tall to connect the section I have\nof the payager of the War Contracts Be-\nparty, doing everything possible to bring\njust read with the determination of the\nhas very materially chanted I am ID-\nDE - children for tomorrow's\nare et minor importance, and while they\nnegotistion Act. This Benegotistion Act\ndown the value of the American dollar to\nTreasury to force upon the people this\nelined to believe that mame of the -\ndate\nmay bring relief to - certain degrae for\nin Haelf constituted . redical departure\nthe low Invel of the depresented German\n1 e-men of America are realy to meet\na very limited number of war contrac-\nsholly distastete) and unwarrantable\nfrom the fundamental principles of can\nmark of the ema which followed the lass\nMembers have read these arriver Death\nsurvice with se grest - courage at\ntots, I believe is will be inconseguential.\nlax provision,\nstitutional government. Even the HenA\nwar.\nIngl. and that they would therefore have\na - in menting the tufinity grade one\nThe fifth proposed amendment would\norable Maarice Karker. Chairman of the\nThe flaures eleaned Erom the RECORD\nTime and time sealn the Treasury\nno considered opinions to the matter.\nut evint there mes who an their party line\nprovide = remedy for & Large class of con-\nWar Department Price Adjustment\nhas attempted to bring about the pas-\nTherefure, Mr. Chairman, open beartter\nthis Anerica may save the and Have De\nshow that 175 Republicans voted for In-\ntraders manufacturing standard noth-\nBroin uf the thirg will not tall you,\nBoard, described the renegntiation law\nDation and were followed by be Demorrata\ncage of this mandatory Joins returns\nwere to order if fairness and Justice were\nmercial articles. However. the fact that\nfor husbands and wives living together,\nto prevail\ntar will they tall somorrow's world. Bill I\nM a dangerote and un-Americin stat-\nand 2 minority party niembers for a Total\ncharge you to keep faith with that MDI\nthat relief to made discrebinary with the\nuse. Instead of the war contractor who\nof 278.\nmin and women currying the responsi-\nOn July 17, 1942, after the last attempt\nup refunding to to party to retrogramative\nboards presenta the same evil inherent\nis suspected of fraud having the appor-\nAgainst the Attempt te seuttle the dal-\nbillty of kreping abve the heart of\nto introduce Unle method of doing arease\naction nu matter when is may - before\nin the present set-up-namely. that 11\ntunliy to meet the charge and lisse m\nfar and the wrecking of the Nation\nAmerican life and Invedom-the home.\nwith a part, at lesst, of private owner-\npora Int tax - name with America and #7\nImposes - government by men instead of\nthat charge in the courts, as guarantend\nDemocrals cast 100 votes, while Repubil-\nEach time the people of the country\nship of property I opose on this fiser,\nwith the world.\n. government by law.\nby our Constitution for over A century\ncana esst only 15, with minardy party\nhave expressed and each\nlet Be repeat it because st la atill april\nThe mument has sgain come. What\nThe same vice inheres in the pro-\nand a balf. the renegotiation les placed\ncasting 2, for A total of 117 roies.\ntime the Treasury effort has failed. The\npriate and pertinent even though the\nwill sua do with 142\nposed sixth amendment providing for a.\nthe entermination of that tasae in the\nEvery Republican in the House except\nsegument of the country has not\nopen method of that time has ETHIR place\nThe CHAIRMAN, The time of the\nboant el appeals, The appeal thertby\nhands of Chose with whom be had made\n15 voted for unrestrained decimating in-\nthansed. Indeed It is probable that\nin considerable\nfrom Ohio bes expired.\nprevided will be from the individual\nthe contract who were the opposite par-\nflation, for the total depreciation of the\nthere la increasing awareness un the part\nI share the emition of many that the\n(Mrs. BOLTON asked and was given\nboard which renegotisted the individual\nLine to the contract but who were. under\nAmerican dollar, for blowing the lid off,\nof both men and women of the Implies-\nTreasury time no intention of 18\navailation to revise and extend be ewn\ncontract to - combination of even\nthe law, made the final Judge, jury. and\nand for high prices. By/heir Vote la the\nUcma of a law of Joint income-tax Te-\n(the manidatory joint tax retions - . -\nboards. all and each of whom function\nexecutive on that issue and 15a result-\nHouse resterday the Mithous threw to\nturna Women are particularly aware\nu/e by which to secure additional TAB\nMr KNUTSON. Mr. Chairman:1 yield\nas uriginal boards in similar recegolia-\nant dispositions and enforerment In\nthe hungry wolves of inflation more than\nof the dangers lurking an the shadows.\nmays.\nsuch Non as be may desire to the geo-\ntion of war contracta. Instenuch as the\nother words, is constitutes phain and un-\nthree-fourths of our population\nThey know that It a a attack\nWe are washing ou against . and\nBiman from Indiana 1Mr.\nIn industrial Michigan where the ratte\nupon their individual property ORDER-\nrelentina enems. n - nos a. wer tax 4117\ngrestest criticism of them beards is and\nvarnished government by men instead of\nship rights and et their rights to Indi-\nother and for \" la . was to the CASTA ta\nMr. GRANT of Indiana addressed the\nhas been that they are supplanting gov-\ngovernment by hw.\nof urhan-Industrial Disnitation is eing\nvidual Man sincerely in-\nany ourser or the glote, - AT\nCommittee. Has remarks will appear\nernment by law with government by men\nNevertheless the exigendes of the att-\ngreater than the rural-agricultural ayer-\nstake, and, gentisman. I would - -\nin the renegotiation of contracts, It is\nuntion caused by the sudden phange of\nage of the Nation. you can well appreciate\nlervated (2) the Mourity and Independ-\nbenefun In the Appendit.]\nthat women have more to Toma TEAD on\nbut natural su assime that no such sp-\nour Nation into the greatest war in all\nthe Injustice to the consumer, What is\nsore of the women, both within and\nand, therefore, are more mady was willing\n(Mr. GRANT of Indiana asked and\npost the THE contractor will meet the\nhistory, requiring mass production in a\nthe explanation fue This deliberate and\nwithout their ewn families, should be\ntry terrifies even than men. Mut - la\nvia civen permission to retire and is.\nfate that was meted out to him by\nscale never contemplated even by eur\nmemacine move? Polities la the answer,\nequally alort to the situation\nvery different from to a -\nlend has own remarks.)\nthe board el original jurgdiction. Un-\nmass producera, perhaps justified surti\ncatering to the spokermen for the organ-\nI have add that the Treasury Depart-\npuò ut retrograsion, partientally VISAR a\nMr. ENUTSON. Mr. Chairman, I\nfuture status of the home la and\nder the very theory of the reneguitation\nen extraordinary remidy under the cir-\nined minority farm group, The Republi-\nmant has no for failed to Empose this\nthe tertha of Une mandatory paint -\nmuch Lime as be may desire to the\nof contracts, these boards must banc to-\ncumstances of the then extsting national\ncans must have forgotten their teachings\nprocedure upon the people openly, now\nare WID as to pur - birth a\narcilaman from Michigan (M). Jona-\ngether or they will bank separately. I\nemergency. In all uses where the con-\nof past years about sound miney, and\nthey resort to new methods-methoda\nmai,\nyours.\npay, therefare. that while in thenry they\ntractor to making so partitant profit\nthat the Nation and Michigan are Dre-\nthat never their grim purposes with In-\nThe word of America ere being explained\nMr. JONEMAN. Mr. Chairman, It to\namendments may appear to offer re-\nno war materials, either because fraud-\npondersetly urban-industrial, Thruw-\ncentive payments\nla go onto the production louis BAY en\nmy understanding that this bill will\nmedial legislation, in essente the same\nwent advantage is taken of the Goverti-\nthe the worker In the cities ⑉ the volves\nTu put the section of bill into simple\nbelog entialed in accountation el\nvrduce the ares of renegotiation of war\nweakness and fallacy still remains And\nment, which, of course. amounts to actual\nat this critical time DI not soine to all\nthe Republican Party-11 will traume and\nTanauêge. If 6 woman prolects her Indi-\nthe Army and of the Navy, all tive m Mr\ncurrents M follows:\nwhile the sentractor may, by the pro-\ntraust or whether 18. be through mad-\nvidual right to own property and to have\nties to their first responsibility if BA\nFirst, By Increasing the existing (I-\nverience, or negilgenco of\nhome and children. It is . ACTADEN payable\nposed amendments, gain summ retail\ndestroy 11.\nen independent Income the to penalized.\nEmotion of $100,000 to 8500,000.\n97 Dat AFDING upon the gursent ener ID-\nfrom the vices of the renegotiation law.\nadministrative officials, winre, althrogh\nThis ronnerted action was ned -\nBhe must pay an income tax of $500.\nSecond By exempting agricultural\nmaing demands are being mule de u\nla result be is still the victim of almo-\nthere might be DU action traud on the\nwas prompted by the party,\nany which to attempt time arté -\nbreducta,\nIf you believe that you can fool the VAL:\nHer horband, too, if le respects ber as\nlate declarerial domination has the\npart of the contractor. is would amount\ntake from tittim their rights village the us\nThird. By narrowing the definition of\nvery agencies with when be first entered\nto ponstruetive fraud. there abould the\nmajor(ty of the people by your artion\n. must pay more than if buth\nel them RETIND to struggie to much that\nIt M strange, elais, to pick sus di de pel -\nto include only those\ninto contractual relations.\nmachinery to current the wrong and\nbere resterday. you are mistaken. The\nmass of wann the etc are -\narticles to become a component part of\nwithin have struggled to ultain and to\nThe truth of the foregoing statements\nprevent undue Government los. And\ninflationist label will the through your\ncarry the ta DA\nthe final production.\nreturn her voluntarity, mind you, to the\nfuture. n. is - whilly DE\nFourth, By exempting all\nis easily proved by & beief analysis of the\nno I say that even though it - 9 dan-\nparty You WID not te sinie to\nextra of chartel,\nrepegotiation law and the history of Its\ngerous and un-American statute, I be-\npenalistag the who - optails\nFracts under exempt prime contracts and\napplication during the past 18 months.\nlieve that under the dreumstances as\n10046\nCONGRESSIONAL RECORD-HOUSE\nNOVEMBER 24\nCONGRESSIONAL RECORD-HOUSE\n10047\ncreated ter more viclosa mile than Chose\n1943\nbad the enteral appreval of the Amil-\niran people, providing that this remedy\nwhich were sought to be currected. for\nfised by R. 249a. betos the bill little\nduesd for repeal of the reneautiation\nKNUTSON Mr. Chairman,\nMr. HORYEN.\" Mr. Chairman. with\nrequired le DATE postage on their free\nof rennsoliation Was confined to the\nInstead at confining l'amisties to those\n1 from Wiscomin (Mr. BIRTH-\nMY such lame es be may desire to the\nthe power to tax there is the power to\npenalty mil - proposed under the\nwas contracts in which excessive profits\nThe present law, Decause or las mains, be\ndestroy. Apparently. the Ways and\nBurch MIL Will sbin additional revenue\npurpose of the legislation and applied\nonly in Ques cases in which expirative\nwere being realized, the Price Adjust-\namended to prevent the or\nministration, cannot be Printed\nMeans Cinamittee of this House to lend-\nthe service would have shown a profit of\nprefila were reallied pil n. result of ac-\nment Boards immediately proceeded to\nour tree Institutions. Il must te of\nEAUTHOFF. Mr. Chairman, we\nlos its best efforts to curtail and at lesst\nnearly $100,000,000 Then Deures. and\nMt. before us for consideration B bill\npartially destroy such a vust and m-\nexperience YORK ter themselves. Low\ntust or constructive traut. However,\nrenegoliate all war contracts. In other\nthis drastic remedy has not heren son-\nwords, they Inveded and operated to the\nout dart. entirely and we must make 1 those finds\nSAMP grands (pereased revenue for the year\npertant public service and atility as the\npostal yates encourage melling end En-\nfield reserved exclusively for the Treas-\nto N X is be regretted that because\nPostal dervice.\ndure Inzger volume, bigher revenues. and\nfined by the reneguliation boards to war\ncontracts yleking excessive profits, in\nury Department and renegolisted escess\nIn regly to those who have the learny\n1044 . cheed rule amendments to this\nThe Post Office Department is not #\nhigher proble Higher rains discountrage\nmailmes, reduce volvime, and lower reve-\nother words, unennscionable and fraud-\nprodits The bigh rate of takallon-\nbe say that this repeal bill is In\nin the nature of corporate profits will\nbenefit of three who would make willings a\n- il carries be effered en the floor of\nrevenue-raine inditation for the sun-\nthe Bowe, IS is also to be regretted that\neral purpose of defraying governmental\nnum and ereate deficita.\nulent prifits. The apportunity for this\nto will, so percent-pade 11 easy for them\nabuse by the renesoliation boards was\nto intimidale the bonest rontractor by\neffort bail been made to\nexpenses. It la the Mathin's largest busi-\nIn 1017 Constries mercused the preus\nmade possible langely by the enactment\nname that 90 percent of his profits\nthe was effort, I say that 1. as much et\ngrain DO of some of the surplus funds to\nname Institution and has been permitted\ngeneral rate from 1 10 2. omu, The\na few months later, and shout the time\nthey and more. want to Dievent the cn-\nto function an such for over 180 years\nposteard had been producting a. corrent\nwould te taken from him. anyway, under\nthat the renegotiation boards lesson to\nthe exces-profits tax, and thereby\ntion of war millionaires. hur I de not las\nthe hands at OIR consumer\nlleve in burning the house be cales ,\nThe time in get money to when there to\nunhampered by those who would under\nrevenue inf $10,000,000 e yest. With .\nfunction, of the BB-percent\nto make n. another revenue-raimess\nTelse la 1 omta. the Post Office Depart-\nmaleting him of that together with the\nrat. If the retegation Iss is\npotri, soil at no period in the Internet\nrenegotiation could be placed under the\nof [Be Dellare Blates has there been so\nagreed for the general purposes of the\nment not etily dif get the Increase\nlaw, which provided that all prodis en\nslight margin constituting the eiber\nantimpated true the reverse drugst to\nwar contracts in excess of the basic\n10\npertent.\nearpings of the contractor, as reasons\nTo give a. specific example, I know of\njurisdiction of a. board Independent of\nmuch money in the hands of the tax-\nGovernment There therefure, to\nbe no justification for the action of the\n$10.000,000. I predict that If CODE\nparti. We cannot tape to cullect any\ncone more unwisely adopta the higher\nby bis average cartings tirm the years\na firm, and # la typical, having basic\nthe departments which are parting to la\noriginal contracts; for Instance, the Bo-\nof the mon when the flush (Imms have\nWays and Meaca Committee in vetine its\nredu of Internal Revenue, Then then\nplant and we are core maré struggline\napproval of postal rate increases 11\nrates recommended by the Bese Ways\n1935 the 1939, should be subject to an\ncamines of $425,000 per year. In 1042,\nand Means Committee, mailings and\ntax of 00 percent,\nby running three shifts most of the time,\nwill the prailema of normplayment n\nsimply acted in haste and without much\ntheir earnings were $500,000 additional,\nwould be no incentive ta nut the Dela\nregalderation for the facts. Postal rate\nrevenues in each class of mail and servizo\nIs must be borne in mind that the lems\n\"excree pridits\" an the tax law has-a\nof excess profits, as the Treasury Depart-\nwith M If that It would have been a\nchanger security to have been picked out\naffected will fall - to such an\nThe renegotiation board coolly told them\nfar SHIP resilate view of our prichlem to\ndifferent than the term \"d-\nthat they would settle for $250,000. or\nment would have no object in mulcing\nfrom nowhere. On one due the commit-\nthat, only the reventies\nDATE main a serious effort to bein pay for\nDself, but would confine standit, 4a the las\nanticipated from the increase will net be\nreserve profits\" in the renegoliation law.\none half of the excess profits, The firm\nthe --- by Increased revenues. The\ntoo voted approval of a 3-percent tax -\nThe former contemplates prinfits m\nattiled, Here then the renegoliation\nintended, to those contracts in whig\ngresent bld Lie not adequate. If I had\nparel post, 2 data later it approved an\nproduced but the actual postal revenues\nboard var deliberately mulcing the\nexcessive or unconscionable protis ATY\nwill be less. And the Government will\nof a certain amount; in this case profits\nin excess et the aftrage annoal carnimas\nUnited States Treasury out or $225,000\nbeing restared.\nmy was and could par any insure I\nincrease in the first-class rate from 2 to\n4 cents and 24 hours later canceled this\nhave tem revente at the close of tos final\nne BA, I would make a a law that the\nproposed increase. Certainly no careful\nyour from the Postal Smile than It\nsiver & given perind before the war.\nwhich would have been paid M excess-\nI could mention n. dozen at more View\nname war la declared personal incomes\nwould have If present rater are retained\nThese excess pritis may soare from the\nprofits taxes, and the company out of\nflowing from the present danemous and\nshill not exceed #1 000 net por month\nconsideration (If study of the exissime\nand pertal votrame and revenues are per-\noperation of three E-hair shills Instead\n$25,000 which It would have been per-\nun-American Mature The way in which\net that no ellta could be made to B-\nrates, or of the experience and processies\nestited to expand.\nof anêy one B-beir shirt before the was,\nmittled so retain M Degitimate profits\na la administered simply does not full less\n- of $100,000 by any (annayer. In ad-\nof the part which led to thair establish-\nNo department of government is dont\nentitline the var contractor to from two\nexcept fur this esurpation of authority.\nthe American way of life, even in war-\nla the above, I would establish .\nment arrund DE A basis for the ratas now\nto the people than the Pust Office De-\nto three times lb normal larache, or there\nIl ta not difficult to understand and ap-\ntime. Let B suffice to may here that the\nmaximim percent of profits which muld\nproposed. 1 also doubt YES much\nmay be than) outer regitimate INCIPARES\npreciste the company's claim that this\nbe emed by anyour, taking the excess\nwhether the Post Office Department has\npuriment. It some in contact with\nrenegetiation law, as the aforessid faits\nthe people daily. They want efficient\nIn 12re volume DE Business, resulting In\nincreased Bat legitimate loceme the the\nslight margin of $25,005 eas necessary\nshow, has been distorted tnto an unero-\nEVET such amount for revenue for the\nbeen consulted about this matter.\nservice end as low portal rates so postible\nindustry. This increased profic, as long\nfor them to med their normal dividends\natttutional delegation of the taming power\npayment of war obligations, and last tars\nThe Committee on the Part Office and\nwith each efficient service.\nand provide reserves for past-war con-\nlas these boards and la explanting our\ncot Tenst I would creste a beard which\nPost Roads al the Home is. in reality.\nI am sure that the people of the country\nas It is nel profil. la the\ntod the power to maintain a sutisfactory\nexcess profit comismplated by the excesse\nversion: and that BA a result of FEDIED-\nAmerican system of taxation vila the\nthe board of directors of the Past Office\ndo not want to son the Postal Service used\nproñas tax Although this FACESS prodit\ntiation they fell compelled to lower their\narbitrary, diseriminatory confication of\nrelation and standard givelving\nDepartment and is 30 regarded by the\nas another taxation agency. When we\ndividends. The redepetiation boards\ntotalitarian dictatorahip. Some time\ncommunity priors, and profits, - all three\nDepartment The ned for socreased\nunce die inte the Post Office Department\nM. considered bonesi and Nationale, liber\ntax law provides lbst being business as\nthreacives admits that of the 34,001,000.-\nago the newspapers carried . story of\nare interforked and cannot be considered\npostal rates should be determined by that\nfor revenue to tarry on all the emeral\n000 they had novered by recepolistion,\nan alleged claim by the administration\nplanimed in times of war emergency.\ncommittee with the sole purpose in mind\ntenctions of government, the templation\nwell as (In profis Sewing from\nTo persent or two billine eight hundred\nthat corporation taxes were eight, his-\nPerhaps It is an indication of the pres-\nthe war it shall - be relainel, box se\nof putting the Past Office Department an\nimmediately arises Le continue Units E-\npercent of this PROCESS proñe thall be n-\nmillion would have been collected by the\ndred million less for 1942 than they -\nRDS appraisement of valors when we -\n. sound financial basis as the Givern-\nredure until finally the Postal Bervice 2\ncovered by the Gevernment through the\nTreasury Department at all events, This\nin 1941. From the foregoing facia at A\na. resiution dumbering since last Feb-\nment's biggest business venture and\nentirely destroyed and is simply\nInves but con billion two hundred mil-\nclear that they were in reality et lyst\nname in the Committee on Pursign Rela-\nshould net attempt to bland it for NO-\nanother agency et taxation. Wr should\nexcese-profts tax\nlion, And the quary DI as to how much of\n$2.000,000,000 higher, only they NOT de\ntimes providing for the feding of the\neral taxation purposes without any ne-\nnot the structure now that has\nThey to the vital distanction. Excess\nthat can they have wrongfully taken\nIncled differently. B is that\nservinu children of the occupied equa-\ngard for the future and the waldere of\nwithstood the of 180 years.\nproñts are ingitimate profits in excess of\nfrom war contractors as excessive profits\nthe Congress courageously receptione the\nthe of Europe: also there has bien\nthe Portal Service their\n(Mr. HOSVEN asked and - glives\nThe previously carord, while excessive\nwhen in reality they constituted Inglu-\ntaxing power, lest It be lost to them and\nsimilarying in the Committee on Agri-\nOut of a total estimated yield et\npermission to revise and estend his own\nprode refers to margina) profit on articles\nwhich are priced too high and amount\nmate PRICESS produc This latier sum also\nthe phople forever.\nmilare since last May B. resclusion en-\nthat committee to investigate\n$1,901,000,000 in excess revenues voted by\nto actual or constructive trand or cour-\nundoubtadly includes the huge stams vnl-\nPurthermore, unles we repral the by\nof all middlemen dealing with\nthe committee, postal rate changes are\nremarks) Mr. KNUTHON. Mr. Chairman, I\nthe of the Ovvernment\nuntarly returned by war contractors be-\nand enact Ingisiation confined to the (be\nestimated to produce $175,000,000. To\ngirld such time as be may desire to the\nTnre and without\nand DO action has been talsen -\nThe failuré to make this distinction to\nJectives and purposes exeminative\n1982. when postal volume and revenues\ngentiman from Obiv TMr. Voral.\nBe that as It may, by wrongfully In-\neither realution, but shen whinky gol.\nthe glaring vice of the renegotiation bu-\nprofits, se will distroy persone\ndropped to 6388.000,000. the Post Office\nMr. VORYS of Obio. Mr. Chairman,\nIndine and raiding the deld of the Treas-\naddress in the District of Culumbia there\nby missing is of the fisnds to\nNO & rush made to investigate the rea-\nDepartment offered a. defleit of $300.-\n1 wish to elsterate . tittle further the\nreaux. IL was the Tuartino of the reise-\ndry Department in the colliction of es-\nconversion when the war shall have with\nem for the searcity with B view to taking\nR$5,000. Agitation - that une for\nsuggestion I made earlier this afterniem\nentistion boards. to receiver accessive\nhigher postal rates so save the taxpsyers\nto the gentleman truro Oklahoma (Mr.\nprofits and the function of the Treasury\nlazes, libey have not only\nwon, thereby destruying millions a jaba\nsignauriate measures to relieve the third\nDepartment to collect in taxes 00 per-\nfor our homeooming soldiers and dum\nof the afficted and yes mothers of email\nthis express was defented by the argo-\nThe need for post-war moon-\nmulited the Treasury Department, but\nhave cash an undue onas and odium on\nment that the orficit regid only be wiped\nversion funds fer la a problem.\ncent of prufits. Had the\nwho must inave war production julé for\nchiviren can NO through the stores of the\ntistion boards confined rensentiation to\ntAx var contractor, muking EXCESS al-\ncivilian employment\nout by maintaintos low rates and build-\nwhich is of great CUBORTO to business-\nthose contracts invuiring excessive or\nthough Infilimate produs, end under the\nCIT of Washington and not find beavy\nMost of the Members of and\nmorest for the cold months. But\nInk up postal volume and reventies. Time\nmen and shuuld be of great to\nduress have mulcled him as well. They\nmost of the American perple are -\nhas proven the soundoen of that ep-\nCongress. The suggestion has been made\nunconsciumable profits, it would not miy\nlines a not of any importance Jessit\nthat the permitted to with-\nbe carrying out the will and (ptent of\nhave sligmatized bie as a wer profilleer.\nof the machinery to change the Amed-\nnot hearly No important as the lack of &\nment.\nCongress hot If would have prived a\npenalizing him accordingly, whereas he\nIn 1042. with the same low rates exist-\nhold trom war taxes a poll-war reco-\ncan way of living, to destroy the Amiti-\nquart of whicky, I think B is time that\nwholesome measure to effect those ID-\nIns in 1932, revenues haft increased to\ncersion justive, in order to pay for the\nwas a. patriotic American, willing la work\ncan expitalistic system. The renegotta-\nwe readjusted our una of values and\nhurder and contribute the proceeds et\ntion-of-contracts law, regardless of a\nand the deficit was reduced\nchanges passmary in their plants. The\ntenta and purposes. Not only that but\nBrst things find.\nto $11,825,000, a gaving to taxpayers of\nargument has bem made that the great\nit enuld continuously be functioning\nRis efforts to the war effort through the\nInrmer efficacy, la nt the present une\nopposet to this bill, and shall vote\nbenefit to furnishing prisept employment\nalongside the exces-prefits ins RACO in\nAmmiran principle of taxátion,\none of the most promising No\nREGICAL It. although I know that there\n$195,000,000 Per the fincal year 183\nlta proper field-the one to DIFFERE prot-\nIn eunclasion I sub to say that while\nthe who are seiking the rejective it\nwill be no opportunity to the recorded in\nrevenues am estimated as the all-time\nwould warrant the withholding of theme\nfleering and the other to recapture Ingiti-\nthe proposed by the Com-\nhigh of with an all-time tow\ntax funds. I doubt whether this form\ntaking ever the economy of the country\n. rull call,\nmais prefits resulting from Increased\nmiltee on Ways and Means may give\nand establishtng - socialistic or colles.\n(Mr. SAUTHOFF withod and was given\ndeficit of only $2,543,122. notwithstand-\nof tax exemption is tensible. and, if 12\nIndustry And business flowing from the\ncome relief, they do not at all reach the\nsivist scheme of government in part\nins Pustmatter General Walser's own\nwere part into practice. n would DO deubt\nto revise and extend his -\nwar. However, as is the case with much\nUnited States.\nstatement that additional revenue\nbe surrounded with ao many govern-\ncure et evil Inherent in this dangerous\nremarks.)\nother wholesome and efficient legislation,\nMr. KNUTSON Mr. Chairmen, I\namountina to $103,000,000 would bave\nmental regulations and inspections as to\nand un-American statute, I believe that\nthe war effort and the general welfare of\n(Mr. JOHKMAN asked and was given\nmaladministration of the efficials has\nthe Afteritan people can be best bene-\npermission to revise and extend - 010\nField such time as be may desire to the\naccrued to the service If all governmen-\nbe very burdensome. Most bustnessmen\ntal dipartmenta and agencies had been\nare leuking forward with longing to the\nremarks)\nexclisman from lows (Mr. Norves).\n10048\nCONGRESSIONAL RECORD-HOUSE\nNOVEMBER 24\nCONGRESSIONAL RECORD-HOUSE\n10049\n1948\nday when they can amid governmental\nMr. ENUTSON. Mr. Chairman, I\ntheme and red tage in their business.\nMr. GEARHART. I yisis to the -\nthe board you would net hear\ntrack originally agreed upro. There to a.\nto what the profit should be. Mineover,\nyield 16 minutes to the perfleman from\nUsman from Nebresks,\nof resplaining Codey.\nconflacation of & partion of the profits\nthe amendment related unly to the pau-\nI have suggested to A number of mean-\nCalifornia (Mr.\nMr. CURTIB 1s is Del true that\nAdditional reason why I AEL apposed to\nwhich the contraster earned under his\ntitular appropriation the being mado\nbin of the Was and Messa Committee\nMr. GEARHART. Mr. Chairman, last\nand have discussed with businessmento the\nDecember when on passed upon the\nwass? It is deducted from the Noth\nagricultural areas pay the fresht a\ngo all pres out of the previsions hav-\noriginal contract without any compens-\nand to contractors desline directly with\nso-called modified Burd plan I thought\nto de with repegotiation. I am\nthem therefor This is a via-\nthe Content - prime cintractors.\npunsibility of financing Doll-war recon-\nversion Unough A plan\nwe had about reached the senlth la un-\nrereives for lla products And a la Mini 1\non to the price that It must 24) lay\n- of rencentiation because I am guite\nlation of the Constitution of the United\nWhatever the faolte of the Cast emend-\nthat the proposed statute to\nStates, only coe of A hundred violations\nment. IL had the great merit of fising\nwhich would be Junt the reverse of the\nacond legislation, but I am satisfied that\nvar building ainortination plan. When\nwill follow the freight\nmanufactured goods. Likewine the tax -\nAll will I am\nthat I could name If Utile would permit,\ncertain definite limitations.\nin the present bill we have under con-\n-guite nire. that is la for\nMr. KNUTBON. Mr. Chairman, I\nWhen the appropriation bill eache lack\nthe Tear plants were built we permitted\nenderation we have a real \"runner-\nMr. GEARHART. That is I\nCoderno to delegate its ingisistive pre-\nyield such time $ he BY desire to the\nto the House in the form of . conference\nindustry to amortize the coil of the plant\nupper.\" We still have a pay-as-you-\ntrue. Because they ratch - coming\nmealite Laevise, all will agree that #\ngentleman frum Illinois (Mr.\nreport, which in not subject to assend-\nover a period of 5 years through tas\nThe American people had hoped that\ngeing the agrimiltural areas an the by Mil\nta delegate the taxing\nMr. CHURCH, Mr. Chairman I would\nment, renegotiation as we know it today\ndeductions. Nuw industry neda current\nfunds for necessary post-sar changes.\nthe committee would supply them with\nthe people of which the Date If\ngover of the Compress to any agency.\nlike to comment briefly DO the proposed\nwas born. The administration\nthere was anything resembing socing\nIN will dons all that in its so-called\namendments to the in-callet renegetia-\nupon this eppertunity to have delegated\nMany a business is making very large\nin the application of this laz, I mill\nprovisions. The Congress,\ntion law embodied in the pending IPV-\nto the departments the precer tal deler-\nprefit from a mill plant. Trul this war\nyou-uwe bill. They wanted simplicity\nbe the last to protect,\nprofit la goling larach to the Government\nbut, derpite their pleas, we etill have all\nenjyee the definition to all the people,\nenue bill. The proposed amendmenta\nmine for themselves what constituted a-\nin taxes and renemistion, as e about,\nthe complexities and all of the confusing\nMr. CURTIS To: Interior of the\nDAS duffined what Income Is: But the\nconstitute A decided improvement of the\ncersive profits* Renegotiation thus oried-\nand the (somi the future villi-\nwaterway freight either.\ncountry does tot have the advantage et\nare granted the privilese of\nexisting law, but - we not preciuded\nnated - & part of a pressing was 4D-\nuncertainties which were en integral part\nwhat income is in its applica-\nby the per rule\" under which the bill\npropriation need and the ness time Con-\nout necemary working rapital. I believe\nof the previous bill to which I have just\nin belong debated I would offer an ammá-\npress bad the matter before a was in the\nthat DE could permit industry to with-\nalluded.\nMr. GEARHART, The opposition to\nuna a a stogle individual. Congress, in\nthis tax which time been\nthe revenue laws, firm the rate\nmest to provide for the outright repeal\nform of A conference report en the reve-\nhold as each M half of the Isses due\nThe American people are going to be\nfor Mile purpose and amortize the pay-\ngreatly disappointed when they find that,\nthroughout the country ought la be od-\nof the rate which shall apply\nof the entire renegotiation statuta.\ntrue BASI of 1947. which embodled certain\n- each of these succeeding quarterly\nficient to convines these who are M-\nresults to all of the perple. The renego-\nIn the words of the former Chairman\namendments 10 the renegotiation law\nmento a persod of 5 wen\nsembled here, If not to the - of\ndaten are authorized to lay down a eif-\nof the Wat Department Price Adjust-\nwritten Into in appropriation MIL\nFor inviace, a business which owed\npersods, they will aum have to go through\n1300,000 la taxes in 1344 enuis withhold\nthe Wage and Means Commitee, the\nterent rate of taxellon-not 5 all the\nment Board when be testitled-pass in of\nBuffine is to 547. Mr. Chairman, that\nthe same mental gyrations and suffer the\nthis tax is unfair and\nupon. the ume person who\nthe heirings-before the Committee on\nthere priver was a reprectiation MM as\nnor-hall of this amount, MT 8250.000, for\nsame indescribable confusión that they\npurposes, under proper\nhad to undergo when they were pm the\nCommissioner Eastinan, known through\nbefore to be the victim Unit the have\nWays and Means. and 1 commend trum\nnich before & committee of this House or\ntax THE last Siptember 15.\nout the country as its greatest Incipe.\nmarked for renegotiation treatment.\nfor his frankness, \"It is A dangerena\nbefore the House - . whole. Il was N-\n50 be prescribed by law, This\ntation expert, has condemned n. time and\nMr. CASE WID the gentleman yield?\nand un-American statute.\" Such a law\nways a part of some other important\namount might be sufficient to finance all,\nTrere are many features of this bill\nDE § major part of the change-over. In\ntime again and en a number of -\nMr. GEARHART. My time 1s -\nshould never have been placed on our\nand I venture te MAY that a crest many\nbesides ils complications that compel me\nto withhold my assent to It. I intect\nasked the Congram to repeal it The\ndarl-\nstature books, and I am personally 200-\nMetn/ars of the Howe never realized\nlbs nest $ years un addition to the regu-\nfor lase of the business, st would pay\nInterstate Commerce Commission the\nMr. CASE. May I suic the gentimen\nvinced that If given the opportunity this\nthere that est 6. law until they began\nparticularly to the transportation tax et\nalso asked the Congress to wipe is from\n(§ be does not want to make & differentis-\nHouse would vote its complete repeal\nto are the effects of it and to heir\n$66,000 a year in amortizing the payment\n2 percent upon freight charges. Aa = is\nthe statute books. The Office of Defensi\ntion between the recapture of profits and\nI suspect that the administration leader-\ntmm the people back home.\nwhich Dad unto withheld, Interest\nthe king-haul States that suffer the most\nwould be charges approximating the In-\nTransportation also condemns the leg\n, repricing as to contracts that are en-\nship would not have brought the bill to\n1 liste many times protested mgainst\nfrom . tax of this character, as a Call-\nlimit on the Gevernment drbs MY that\nM unsound, unfair, discriminatory, =\ntured into by a contractor where a N-\nthe floor of the House under 6 closed\nbroad delegations of power to the execu-\nfornian, 1. of course, object to the unfair-\nequal, unequitable. Yet it retains a\nregoliation classe is part of the eun-\nrule were = not realized that an open.\ntime tirench of the Government. I have\nlarre would be DO altorate Inis to the\nam ni the operation of that kind of .\nGuvernment. The only danger would be\nthis fall-simply because a proteur\nbutt\nrule would undectived ment the climi-\nappoied such procedure and will -\ntax upo the consissioners and shippers of\n$175,000,000. That-an far 33 1 -\nMr. GEARHART. I agree that there\npation of renegetiation.\nserve in oppose It as lung as I as privi-\nthat Use business might fail in the post-\nay areat State. This tax is truly so un-\nwar years and the Government would\nassertain-is the only réason IL Will\nla such A distinction. Pas\nWe are representatives of she people.\nleged to have & sest in this great body.\nnel by shie to make full antlection. To\nfair and diveriminatory tax put nealnat\na tax which is so diseriminatory, unlate,\nIN. both are jumbled together and are\nWe are eustedians of conditutional\nThe sprawting. strangling bureaucracy\nall of the border States of our great coun-\nthis extent, the Comment would De\nand unequal in lb operation Impresed\ntreated the same was. Because to their\nrights, Once is to clearly understood the\nwhich is killing the American WAY of life\nsharing the harards of the basinessmen's\nin the Atlantic and Pacific Countal\nStates, the Gulf States and the Mexican\nmy enlieagues of the great Want and\ncurration upon the contractor the pro-\nextent to which the repegntistion law\nand placing impossible tax burdens on\npoil-var fortunes D. might be fesible\nMeans Committee SF worthy of recentino\noder and the effect are the same in\nsuspenda even abrogrates constitu-\nthe people is the product of theme dele-\nto make the amorissions period longer\nharder States Our specialty crops must\nin the bill will remain zer of the -\nregert to both recapture of funds and\ntional righta of American citizens 3 do\ngations of power, The unlamented\nthan & years. Buch a plan would D/V\nla taken thousands of millesi to the em-\nsolved masteries of evodern time,\nof articles no good purpose\nnot believe the membership of this\nX FL. A. was characterized as \"delepation\nmêye all of the problema of\nsuming markets, and when they are taken\nthere and sold to the ennoumers ned only\nMr. ELLAWORTH wie the\nand positibly be served by bearing that\nBouse world accept any ammentments\nrun riot,\" and the renegotiation law la\nexcept that providing for repeal. If the\nsubject to the name characterization,\nFinancing, bwt it would accomplein much\nman yield?\ndistinctions its mind.\nwithout red tape un overhead.\ndrus that production carry with is. a high\nMr. GEARHART I grinld to the 10.\nprincipio of renegostation in un-Ameri-\nWho determines in renegotiation what\nI am egainst the renegotiation classes\nare excessive profits? Ocvernment sp-\nThe entirman from Descas 1Mr.\nFreight charge, which we know we ran-\nUeman trum Oregon.\nfun 5 many reasides et would be quite im-\ncan, the TA/F providing for represetion\nhas stated this afternous that\nnot avoid, but jt carries with It a 3-per-\nMr. ELLSWORTH. D x not the that\npossible to einn DMI them within the\ndoes not become MU less un-American\npointess By what rule or standard do\nthis wante problem must be reamined\nrent tax on that high freight charge,\nthe same amount of money could la\nshart period which has been allotted me.\nby improvine the technique or providure\nthey make that determination? There\nsoon Is LE my hope that my supportive\nworking as 4 penalty and nothing less.\nFor the word \"resegettation\" u\nof represtiation.\nis none, Who decider in renegotistion\nMiss SUMNER of Illinois. Will the\ncollected on another Is vitar\nThis House never had, nar do se\nthe amount of money that my be earned\ntime can réceire study and analysis as that\ngentleman yield?\nwords, the percentage trasin used a mit\nfriel upon the American people. That\nresponsible for the inequity, whereal If\nvera a done has DO relation to the\nhave today. full opportunity tal para upon\nby a particular contractor or subccts-\nMr. GEARHART. I risid to the pro-\nAllhough 1 realize that putting to-\nof that word. What does \"re-\nthe resi buide, That right has been de-\ntractor? Government appointees How\ntiewoman from Illinois.\n& per unit basis were used. the MIDE\ngether e réserve measure is a trinno-\nDiscription\" mean? 1 think all will\nnied or by administration strategists. 15.\ndo they decide? No one knows. Not is\nMiss SUMNER of Illimine England\namount on the commodity from what-\nin dented - todar. I must sonfes that\nthere any effective appral from their de-\ncirrital task, I my disappoint-\never IL may be shipped. the Charge would\nagroo that to renegoliate means \"W entl-\nand some of the other foreign countries,\nbe no inequity, but - could still\nthe administration leaders have done .\neisim. Truly, \"is is a dangerints and un-\nment at many provinions of the present\ndoct conferences as - basis of serve-\nremarkably able job In proventing the is-\nAmerican statute.\"\ntax bill 1 fels me should attempt to\nIncluding Overmany, have taken off the\nthe same amount of money? Is that ms\nterms,\" \"te treat with a view to comine to\nraise even more money, I frei even\nimport duties and transportation tax M\n1000,\"\nsue from arising in the Hmaw.\nLet me read to you the definition of\ntrue?\nsteater talid from bureaucratio capries\nMr. GEARNART That it I/W. the\nTo there anytedy no guileless as to be-\nLast year when the sixth expelamental\nexcessive profits as net nut in the 148:\nsidies. . chouse of avoiding having to give rub-\ncound have been given in the reception-\ngentlemen frum Oregon la quit and\nlleve that any contractor who la cited in\nnational defense appropriation NO was\nThe term \"gadit protect means any\nuon amendments 1 stall feel. su I have\nMr. GEARBART, 1 am grateful for\nOther methods WITE suggented DE for\nfor renegotiation is given any opper-\nbefore the House the distingtished gen-\namount of à sentran or adventrant prior\nthat observation, In order to empliasiza\nDeman from South Dakota Mr. CASE)\nwhich is found as . result of perspitation\nalways felt, that is LE « mistake to co-\nnet me point out that those of us who live\nsome strange - etch\nfunity to decide whether or not be wants\nsixtee such a bill under a BAR rule, The\nsurpais human understandine-the -\nM respectiate, or, does anyone think\nsecured the adeption of an sevendment\nto represt profits.\"\nsmall attendance here. the lack of Inter-\nin the Well Day move per capita of auto-\nmobiles, ten chrets, radios, and things\nmitter retund upon and CHAE with a\nthe after renegotisting the contractor\nto limit predite on war centracta at €\nIn other wards, Mr. Chairman, -\nth the dirtate, is evidence that the\nof that kind. trut wo do nut they them on\nunglelding tenacity, to the univired\ntoo any right to refuse to accept the on-\npercent. There was no discussion of the\natve profita are excelaire probis to the\nmembership of this House will not exre\nmula of Urean all.\nof those renepotiations or\namendment and to this day no ane known\namount that you, the prine adjustment\nthe conclusions the Price Renegotiation\nfrom the language of the amendment\nbourds, decide they are It\nany erest amingt et time and allention\nso squality with the people who live tn\nMr. ELLSWORTH Mes Hay. R a\nto consideration of A. the bill under . EXC\nthe center of the country where those\nthings an produzed. We have to pay\nmy recollection, the principle I past -\nBond has arrived at? Not et all, The\nwhisher the E-percent limitation was 6\ncould De all the prodits realthed nr if could\nnale Of course, however, I am earns to\ntimed applies on social other -\npotractor la merely resched out for and\npromt of the contract price, el costs. or\nbe name.\nTele for this will rather than achind it.\na previer freight charge on them than\nties, notably used. They did nel LIMI the\nExam by the nage of the neck and told,\nof sales. Very dew Members were on the\nNot unly do the Price Adjustment\nI want to de my part in raising taxes te\nOthers and then in addition thereto we\nhave to pay this 3 percent un that each-\npercentage method on coal The ISS (in\n\"Sign here. This is the new contract\nfloor at the time and, ch a division. the\nHeards have the power to determine\nsupport the war elfort.\nthe transportation of coil a a must pif\nToure is DO eschange of Ideas, there is no\namendment was adopted by 6 Tote of\nshat is excessive M a profit. on war work\n(Mr. VORVS at Ohio assed and PM\nlive freight charge. The trate the\ncar, which I think is the propet way of\ncerting of minds, there is no agreement\nTO to &\nthey do DATE have to farnish the con-\nCrm permission la revise and extend\nchange. the mester the tax,\nin respect to new terms. The whole pro-\nThe profit Imitation provided by the\ntrader with any statement as 5 how\ndistributing a tsx\nhis own\nFloor Mr. CURTIS, Will the gentleman\nMr. GEARHART If the tax theref\nthe is arbilizary. In true totalitarian\nan order Oxing new terms is, by\nCase sinsedment was fixed and as nes\nDiry arrived at their conclusion. The\nwhich was applied to casi - apport\nTOM in the departments discretion as\nwhole proceeding in in complete secrety.\nlikase, substituted for the vuluntary -\nNo 10-1\n10050\nCONGRESSIONAL RECORD-HOUSE\nNOVEMBER 24\nCONGRESSIONAL RECORD-HOUSE\n10051\n1943\nThere la no public riverd of any kind,\nertul because of - system of free enter-\nAnd the contractor must accept the de-\nprise, and 14 la for as to preserve at at\nand ous Government departments,\nAgricles continue to - buresta\n- en congressional district. Work\nWhile this equipment was paid for by\nlaw. Treasury demands disreard (his\nclaim et the Board who renegettated his\nunnecessary under material through the mails and\nseen going on tm this area for sume\nthe month, oftimes machines broken\ntéra.\nall outs.\nThe renegotiation law la destroying\nM and have heard numerous -\ndrun. and remained In the repair shop\nNo sooner had the Revenue Act of 1043\ncontracte ⑉ be will not resive payment\nthis system and should be repealed. The\nthe franking privileges,\nI am definitely opposed to this us\nMainta months renerrulng wasteriness and pu- to-\nfor M long a 3 werks et = time because of\ntem ebacted, making drastic increases\nfor su products, which, in most in-\nAfter some personal\nlack of repairs as well as scardity if Dit-\nin personal Income taxes, and before the\nstances, would mean that the empany\npending amendmente MAIN the ares of\ncan DO longer centinue in business.\nthe were bill, Mr. Chairman, and I who is\njoil I Anally found an employee\nchanica. to there was many days when\nyisid of that medife and possibly -\nand set. up certain stand-\nMr. Chairman, that is not the Amert-\nards for the determination of excresive\nthe continuance of any such Jaw. If\nexteting law but its basic evils remain.\nment It. I am THE\nstrike possible to offer an a\nthe protect who bis acquainted me\n- of the equipment au mil operated\nknown, the Treasury ww\ntao system of government, and I protent\nand of mans of the chings which have been\nat all, and much was operated only part.\nfurther increases. The demand was\nprofits The amendments Improve the\nof would have\ntime.\nmade without regard le spending\nrule port this The to\nping The not. pun. . umakeper, and en em-\nI will now elle deletions for deriain\nMF she possibility of refucing expendi-\nthe administration of this law should fall\n! wish we would be given the opportu-\nturne by practicing and eilmi-\ninto the trands of the many remodders\ncity to vate lis reprai and leave to the\noffered by the Committee no Ways be\nsuch an amendment as city chase\nel the Government, when calling\nequipment for certain days as fellows:\nnow misociated WILD the Government we\ntax law the control of profits. That Is\nsuch Means. In the EFROS II does nes at\nplayers - renditions to the attention of the\nnating waste.\nwill witness the complete destruction of\nthe American way.\nthe an amendment, I hope that Mr.\nemtractors, was told tax \"give the boys &\nTAX NATES ARE -\nName vn\nDes\nbill la under consideration in Via\nwesk.\" Certain employees, after \" few\nDate\ndelared\nThe Treasury, spesking for the admin-\nthe American at (tem enterprise.\nMr. Chairman, I wish also to direct\n2c has term arguel that renegotiation\nfirst Behis numerous threats, and propo-\nIntration, has asked Congress for $10.-\nName remarks to title IV of the pending\nother body Uue TV will be 6\n500,000.000 in new taxes, This startling\nis necessary to prevent was\nrevenue bill, providing for an Increase\nand much has brea said should the\nCommittee on Ways and Means 1 The\nto spilt up the \"take\" submitted to\n4m.\ndentand, this held no hearings whatever No.- -\nthe delivitions, but came back day after\nel\nLN\nrequest nomes after a series if stiff tax\nin postal rates, This title has no place\nSAT and worked the same old tacket,\nRept.\nIl\nat\namount of maney recorered through re-\nin a revenue measure. Postage was never\nExpc.\nIV\nas\nincreases which have left the American\n(Mr. CHURCH maked and the\nsubject of increase in pollal THE\nmaking M necessary for sometime to be on\nOd.1\nsur\npeople staggering under tax burdens be-\nnegotiation. To figure that have been\nintended to be a tax, but rather a charge\nn\nIF\n- job rash day se check the men.\nOd.1\nyand their wildest dreams. Not content\npresented smm imposion has they fail\nfor the special service of the Govern-\n0s.4\n126\nlas lake into account the tases that we\nmarks in the Broom)\npermission to revise and extend the the N-\nTime employees receive time. time and\nDELE\n148\nwith tax rates which may yield approxi-\nmet and when the Committee on Ways\nand double time for their extra\n0a.4\n114\nmately $45,000,000,000 in revenues this\nwould have collected on the profite had\nand Means presames to report . bill con-\nthey remained with the companies,\ntelang provisions for increasing postal\nMr. KNUTBON. Mr. Childre\nDeLT\na\nfiscal year. the Treasury world-without\nEditime law provides for a 00-jurcent\nrates it is assuming juriofiction uver a\nyield such litne as he may destre la the I\nhours. Bo-called working hours deleted by\nDate\nOn и\nany gualms of ennscience, add another\nGroks.] sentlemen from Pennaylvania 1 Mr.\nthe diligence of this time clerk amounted\nis\n$10,501,300,000.\ntex. with an over-all liest-\nmatter which belongs to the Committee\nis a SAVIRE of $7,000.01 from the period\nThe resenue from premit taxés, In\ntation of 30 pervices on ot/porate taxes\nnn the Post Office and Post Boads,\nIn ammi, therefore, ao pertent of the\nThe proposed increase in the rates will\n(Mr. GROSS asked and was -\nJuly 38 to Occober 20, 1943, This figure\nMr. Ultairman I froi that the torego-\nthe agreemente, are steudily increasing\nmore resident threath remegatistion\nnot greatly affect the individual, but it\nmission to revise and extend - remarks\npain only 1 of 25 working EADEL\ntour statement justifies the claims of the\nwith a raing national income and the\nin the RECORD.)\nwould be provided (Drough\nviil materially affect American bisiness,\nThe hourby wage of the men involved\nminority members of the committee that\nexpansion of consumer epending. In\nMarrern the pending NO provider for a\nMr. GROSS. Mr. Chairman, mid\nDE this project range from 75 centa to\nhonesty and economy tin government\nfact. the reseipts from existing taxes\nSurely it is recognized that during this\nare rising faster than the Treasury stat-\nHIS beginning\nperiod many have been\nbas been said here lately Want the DIVE\n11.50 DIF hour,\nwould completely eliminate the nices-\nfor rélaing additional revenue to the\nFrom the records which I have before\n(stlelans have anticipated. When the\nJanuary 1. 1944.\nobliged to discontinue the use of sales-\ncity of any increased taxes.\nWhen we WIDES the a\nmen in reaching 0 market for their prod-\npurpose of financing our Var de 408\n24. M shows that on August 16, se men\nCorrect Tax Payment Act WAS adopted\nComplaints of the dickerings to con-\nucts. Companies which previously main-\nour entinary government functions\nclaimed hours M work which were de-\nseveral menths RED, the Treasury FM\nlaw se provided for a ponviver credit of\nnection with this project, made to offi-\nAlso, much has been said whout\nfried by the umokeeper. after a check-up.\nwilling to admit that a would add only\n10 priformal, in elber wird, for every\ntalsed . large sile force have last min\ncials of War Emergency Pipelines, Inc.,\nYou bour deleted for this day total 171\n$3,000,000,000 to tax revenues in 1944\ndollar paid in tax DO\nto the armed services or la war praduc-\nany in suvernment, and This M wead I\na Government agenty, answerable to De-\nwould be and wide by the Treasury De-\ntion plants. Morsover, the gasoline\nwant to discuss. So that I shall TUS take\nBACKS, and resulted in a saving of $264.\nand 1948 But at the end of last July\nfecae Plant Corporation, have gone un-\nperimini as A. name to American\nshortage and the bravy burden on pub-\nup too much Utne I shall cita only -\nThe time allotted permits me to men-\nthe Treasury conceded that the early esti-\nherded.\nto the difficult punt-war stand-\nlie carriers have made u for\nInstance where economy and assunder\nDes only some of the cases as follows:\nmale was too low, and II ralsed the esti-\nbusiness operation on the part el or\nI beürre that the Reconstruction Fi-\nmate to $5,000,000,000. Benent reporta\ntice period 13 pranture production. lie-\nhundreds of companies la find - substi-\nGovernment would have saved Ue tax-\nDance Curporation owes = to the 14%-\nindicate that this estimate is probably\nunderstation dues not provide for STEP meh\ntute for The mails have this\nHert\nMm le-\npayers countless dollars,\nDate\nBering\npayers to time a thorousk Investigation\nstill too lov.\nreserve, end inasmich M renegotiation\nintel\nestrat\nbecome increasingly Important to bast-\nof the entire projest out Into the open.\nThe early operations of the pay-sa-\nis before taxes rather than after lase\nness, and is is DGW proposed by this In-\nThe proposal to construct a. tipe las\nMr. ENUTSON. Mr. Chairman, I\nfrom Texas to Illinois at a cost of HI-\nyou-su plan disclose that there had been\nAmerican business James the post-war\n185\nna\naño\ncruse in postal rates to place another\nno\nyield 10 minutes to the gentleman from\nfor more the than the Treasury\ncredit which Coopres decided should be\n000,000 was last February in\nN°\nLM\nburden on business,\na\nJesse Jones. The Defense Plant Corpo-\nIII\nNI\nNew Jersey [Mr.\nhas been willing publicly to admit. In\navaliable for the future. Remegotiation\nAccording to the committee report\nNES\nIM\n\"\nDE\nthe estimated additional revenue from\nAd.\nto\n(Mr. McLEAN asked and was given\nfact, the Treasury has been very silent\nIn thus la direct nonthst with the seriod\nration, upon the recommendation of the\n114\n390\nAre\n-\nIl\nin\npermission to revise and extend bis re-\nabout the tax enaina. Collecting the\nbolica of\nthe proposed rates is $156,609,900. While\nPetroleum Administration for Was.\nDEL\nR\nIII\nagreed to finance the project which, are\nmarks in the Racord.\nincome TAX gt the sourre, although It\nI four for the future of American truel-\nin\nAll\n5\nven if they are not permitted to build\nI do not have the details upun which this\ncompletion, would have a capacity of\nи\n=\n-\nMr. McLEAN. Mr. Chairman, wire\nhas placed inconceirable compliance\nestimate was made, I venture the pre-\nthe pending just . revente ml\nburdens on employers, is silding TAIL\nup fearnes for converting plants to\ndiction that if these reter should ED into\nabout 235,000 barrets per day of\n1 would not End it difficult to oppose is\namnunta to Federal revenut and will add\nJoiume production for mesting DAY\nmile until the company can place Half\neffect the return will be Tar less than the\nand light petroleum products\nNow, Mr. Chairmen, having elled the\nuning in man-bour payments, I call\nand this notwithstanding that 1 am not\nstill more - evalion la stopped and (LB)\nmilmate There is a well-estabilished\nThe War Emergency Pipelines, Inf.\nwas set. up to construct the line and\nunmindful of the extranationary needa of\nthe national income increases.\n- a presetime productive basts, and for\nrehibilitating their equipment new op-\nlaw known as the las of dimin-\nthe enention of the House to money\noperate IS for the account of the Defente\nrevenue for war purposes. Their nesda\nthe I APT THE DATERIAL\nIshing return, If the return un 1,000\nwhich would have also been wasted bad\na not ben for the honesty of this em-\nwere fully constituted on the enactment\nTo in too any to what the\nersung AC maximum espacity, Unless\nPlant Corporation.\ninterness can art. up appropriate market\nplaces of mail at 2 cents La $20. Il does\nIn April, Mr. Jones announced libert\net the last revenue art.\nfinal revenues from the present uses will\nnot follow that an increase in the rate\nbloyve\nfor the post-way period we will be nin-\nDefense Plant Corporation, a subsidiary\nI - golog to support the bill. because\nbe during the present end the ensure\nPrinted with the greatest depression is\nin 3 expta will Increase the return to\nIn CASES where A worker was found to\nI am in accord wish the provisions which\nfiscal years. With the national income\nof the Reconstruction Finance Curples.\nhave stalmed to have been on the job,\ntrending upward and with prices and\nour history and all besitees will pur intal\n$30. Invertably as the rate increases the\nnumber of places maled will decline be-\ntion, upon recommendation of the PM\nbe vu not, & check was made of his\nis to hoped will sumplify the assement\nthe liends of the Government We will\ntroleum Administration for War. bei\nparticular type of work en the project.\nand pollection of the personal income\nrensumer spending on the rise, tax oil-\nthut Issue through nur own (bort-sebted-\nnot the price becomes probileitive\nBut EVEN assuming that name add)-\nagreed to finance the extension of the\nThese men who had been dishonest\ntaxis and ciarity many of the provisions\nlections are bound to increase. In view\nof existing law, including the revision of\nof the existing very birth tax rates, fur-\nness the very Thing for which se are\ntitral muney may be realized by ID-\npipe lime to the harber areas of NYY York\nwhout Unite hours were usually operators\net bay equipment, such as ditching ma-\nthe Renegotiation Art. The only In-\nthe increases should be avoided al least\nfighting and for which sext boys are dally\ncresses In postal rates, I em convinced\nCity.\nchines, bulldcarra. tractors, heavy trucks,\ncresses In the personal income taxes are\nuntil we know what revenues our present\nsiving their lives-freedors.\nThere is no substiture for the Amen-\nthat the affert of this action WILL be Tar\nThis section. again to be construited\nby War Emergency Pipelines Inc. would\nnominal,\nwill produce.\nand welders. When it WM found that\nmore damaging to American business\nAlso, I heartly apprové of the proposal\nThe Treasury has time after time re-\ncan system of Invo This is\nDOW 50 dependent on the mails than any\ncomplete the link from Elinois to the\nthey had not worked in was also fourd\neast COME.\nthat Date agaipment bad remained lidle.\nthat to the future taxes shall be assessed\nvised its estimates of the pational in-\nelidened by the developments to the\npresent war. Russia with 200,002,000\nnum that may for the moment be gained,\nThe first section of the 1100-4 16-inth\nyou . claim was made for reimbursement\non anticipated income and not made\ncome. Not long ago It was speaking of .\nprople and endines resources, Great Bru-\nparacy. At best the gain would only be tem-\nbe use of the equipment.\nretruactive Changes to our tax laws\npossible income of $100,000,000,000 This\ntobe from Baytown end Part Arthur to\nwas revised upward to $125,900,000,000.\neta with @00,000,000 people and strat\nBeaument, Ter. and a 29-inch Ene the\nIn checking the daily time sheet II\nhave born tron frequent. They have left\nnatural resources, China willing 400,500.-\nIL does pot - to the logical, 10 Just\nthe people confused and embarrassed\nthen to $130,000,000.000. and later to\ndoes not make whe to propose an In-\nthere to Narris City, III. and\nthis found that 5,123 hours could be\n000 people and endiess 08/oral recurres,\nInd-were approved as e civil of 14.-\nby not knowing nt being añle to anticl-\n$140,000,000,000. Now the Treasury de-\nall look to the United States with 130-\ntreate in postage rates when the Post\nkinclud of of equipment charges for the\npain what their taxes would amount to.\nclares that an aggregate Income of\n000,000 people. It is net the number of\nOffice mail service is now on A paying\n000.000.\nprotod from Attent 10 to Ortober 14, &\nCompletion et the Beymnur-New York\nDetind of only 2 months.\nMy approach to the preparation of the\n$152,800,000,000 will be paid mis during\nnur people that makes us powerful. It\nbeats and when the mails have Income\nmeastire has leen with the conviction\nthe fiscal year 1044. We know is will\nin important to the people as . whole.\narea section. also a 20-mch une will\nThis equipment was rented an prices\nnot be long until this figure la revised\nIs not the extent of our resoures. Other\nBy this provizion It la presented to In-\nbring the over-all cost of the entire prof-\nBard by Che o. P. A. The equipment\nthat before any new taxes were impued\ncountries have larger populations and\neet to approximately 800,000,000\nriceed from tar and asphalt kettles at\nsufficient time should be allowed to as-\nupward to $200,001,000,000.\ngreater natural resources, We are pow-\ntrease the burden of mail costs on the\ncertain with same degree of certainty the\nInevitably, as the national income\nDenple Ville nt the same Lime the vari-\nThis place line, known in my - al\nAll a menth to ditebing machines at\nthe Bile Inch, paines for 100 also\nrevenue to to realized under existing\nsears, tax receipts also MAD The must-\nESD per munth.\n10052\nCONGRESSIONAL RECORD-HOUSE\nNovember 24\n1943\nCONGRESSIONAL RECORD-HOUSE\n10053\nthe high tax rates will return more and\nthe proceeds of Insurance left at death,\nand the vast arms et white collar workers\nwith miner nocias revenues, finaliy\ntheire revenue month by month as 4 con-\nhalf of our total enveronmental EXpends. Date\ngentieman from Kansas (Mr.\nwould take care of our Pederal expendi-\nbelow reasonable. My personal epinim\nenquence Therefore a la not decembry\nwho must get sinng upon fixed informa\n(Mr. CARLSON of Kansas asked and\ntures as we make them. This welde\nfunds. tures will be torores by nonberred\nis that the restrictive programs of the\nto rain these rates to gather in insure\nare being punished terrifically by our\nwas given permission to revine and ex-\neliminate the problem of bolls borrowing\npresent administration are doing more\ntax enflections. In fact, in particular\npremit Be are the professional\nThis is a spiended accomplishment\nind MS remarks in the Reroas)\nand inflation. or course, everyone real-\nto came inflation than the consumers\nCAMEL bigher rates may produce less you-\npeople and all of those in our great mid-\nis far superior to our record during Werld la\nMr. CARLSON of Kansas Mr. Chair-\nIzna the futility of even coomdering the\nthemselves. Inclead of trying to in-\nbecause of Undr effects upon the\ndie class whose incimes are fixed of\nWar No. 1. In the final year 1018, which\nman- the voires of the people are being\nlevying of taxes de mest present Pederal\ncrease consumers goods, each as food,\nincentives and resourers of the texpares.\nalmot constant. Many millions el our\nInsught our best financial results,\nneard (II) the tas bill that la being report-\nexpenditures. Our national ecustomy\nclothing. nil, and a which would\npeople have enjoyed little, If any. of the\nwere able to raise only \" in\ned to los House today. The tax bill\ncould not stand u.\nmop up excess purchasine puper, the\nTAX RATES AND DER TOTAL -\nwere prosperity in the form of higher\nunder discussión is not only a product of\nDuring the past few years - have\nadministration, through the O, P. A. is\nNew. st may be urget that\nPederal taxes M compared with Policy\nIncomes.\nexpenditures of $18,500,600.00 Peteral\nthe Ways and Means Committee: It\nbeen levying taxes Chat would take care\nreducing the production of these -\nraise of takation can readily be norne as\nTHE TOB\ntas were only 28 persont of Petient\ncontains the composite views of the\nof 30 to 40 percent of our Federal expend-\nmodities. Wish increased spending a-\nthe national Income flow espands. But\nkrep in mind that the tax rales have\n1 have spoken here only at the income\nexpenditures. In this fiscal year 1045\nAmerican taxparers. They have em-\nMares Present indications are that se\npedita' we must have an outlet for -\nalrendy Inso raised time after ume\nand Victory taxes. Their are not the\nPederal taxes mag increase 40 Defenst if\nphysicalls warned Congress that we\nwill be able to - so percent of our\nsumer purchasing power. Consumers\nenly taxes país by the American people,\nPederal expenditures\nhave spending-not mure taxes.\nFederal expenditures la the Benal year\nwould rather spend a tew certa addi-\nNever before have the American pec-\nTHE does not that the American\n1948 by taxation. This, to ay opinion,\nper pound for food than have a\npie paid such high rates of income tax-\nThese are the an-called exclar taxes, a\nTHE PROMABLE comme DE -\ntarguyse la unwilling to pay taxes, but\nla nel only . worthy achievement for our\nrigid price-constrol program that will de-\nNon Never before have ther paid over\ndispuised form of siles tax. On every\nn. Ques mean that be DO Inname intends\npeople, tot demonstrates that they are\nstruy production to the extent that no\nto the Treasury each tremendous NUMBER\nprocess of popular-stant cigarettes,\nIf the war in Europe should end in the\nthere la . tax of 7 eints. On furs, jewel-\nnear future, war expenditures was\nla have tris money wasted. Evidence la\nwilling to assime A heavy tax load in\ngoods will be available.\nof money. Before the was we were sar-\nry. and tollet preparations, there are\nvery probably decline rapidly. We has\nanywhere of waste. extravagant npmd-\norder to insure freedom and democracy,\nMANUTER COMMUNICATE -\nlog about a billine dellars a year in par-\nthe and money squandered recklessly.\nThe difference between the ammunt we\nsocial income taxes. In this fiscal year.\nlaxes of 10 percent of the prices. On the\nabout attained the peak of our war -\nThe elimination of unneressary Other\nEtuille and investigations by\naccure throsam taxation and our Federal\naccording to the receivative Treasury\ntransportation of persons there is a tas\nduction. Milliary needs in some lines\nernment expenditures effers the most di-\ngive ample prost that\nexpenditures must be borrowed In under\nentimates, the American prople will pay\nof 10 percens On telephone services\nhave been provided for grattly in ad-\nress and effective attack upon inflation-\nof the Prderal Oprernment\nto balance the bodget. Our national\never $18.000.000.000 in income and Vic-\nthere are taxes of 10 to 20 percent. On\nvanor of present requirements, 4dd &\nany policies, Federal expenditures can\ntapering off of war expenditures in the\nwith oxere given large sums of maney to\ndebt has been growing by leaps and\nother commedities and services there are\nand must be reduced. The Byrd -\ntony taxes.\nonresponding taxes paid directly or in-\ngeld in this empressy have been mm\nbuinds. The present ostional debt a\nBut the appetise of the Treasury knows.\ncoming menths to not\nmittee has from Une to time called these\nonly collisent. trus in many cases no-\n$163,000,000.000 Present indications\nno bounds. It reeks to Increase Income-\ndirectly by consumers This bill will\nMoreover, IL should be possible to\nunnecessary expenditures to the atten-\nlatel the truit and ognfidence that Cop-\nare that it will reach hg\ntax rates stall with the caject of\nincrease many of these excise taxes on\nplish further economies in\nthan of Congress and made raggestives\ncommodities and entos consumed by\nspending and to svoid some of the valia\ngreat in them. Congress ttself is\nthe end of the theat year June 30. 1944.\nfor a reduction of them The Truman\nplime another $6,400,000,000 squa the\nin war spending, without endangering\nbear enticited the many of these waste-\nThe amount of money hormwed can Do\ncommittee Das from time to time ralied\nIndividual taxesvers, above total tax\nall of us. These are not simply the luxu-\n(M) and ministry expenditures. They\nreduted by increaring ONT Iss load and\nto the Treasury would then be\nsingle life in the armed forces and with-\nattention a the enormance waste of Fed-\nries of the wealthy. We are all being hit\njustity escape all blame butt.\nreducing Pederal expenditures. The tax\nout prolonging the war.\noral funds. Innumerable Inslances could\napproximately $25,000,000,000\nat every turn by taxes upon tobacco,\nbeilher should they be beld responsible\nbunden for the fiscal year 1944 will in-\nadministra, sporting goods, ESS-\nOn the revenue side, tax milectares\nbe mentioned, our I am not scing to tais\nMr. Paul, of (b) Tream Department,\nfur executive and administrative agen-\ncrease and there must be a reduction in\nthe time to do it. We are DIS only\nterrity susted is a public address that\nelenn, and many other items. Together\nare mounting with the growth of the\ncies which are responsible to Congress\nexpenditures.\nIt would las reasonable le decide the\nnational Income, the expansion et con-\neprodica Federal taxpayers' may rock-\nthese tears will ameunt to shout $4,000.-\nfor effective and efficient administration\nThe President in his Budget mesidento\nlentr in our own Nation-we are reach-\nTreasury reviewe protem and nak for\n000,000 this To the $25,000.-\nsumer spending, and higher tax tain.\nThe Expayer has nne test for Federal\nfor the fiscal year 1944 advised Congrem\nIDE out to every section of the globe. IL\n$21.000,000,000 in DIV uxes initead of\n000,000 which the Treasury wants to col-\nThe existing tax rates are already len\nthey nos. mary for the\nthat \" would spend $106,000,000.000,\nis my contention that there an be I (th-\n410.501.000.000. You may be sure that\nIsca from our directly, B vanta to\nheavy. We have already provided for\nvar effort? There are indications that\nMany et us believed that could not\neral revolt among our people whre the\nIf en enact the bas the Treasury now\nnollect A further $5.500.000,000 by various\nincreases of 12.5 persent in the locaps\nPeteral taxes are now M bish as to be\npossibly spend over $10,000,000,000 in\neartain which shielde of this wille\nBAKE, DI would not be long it name\ntax upon Income received in 1043 and\nundermining the tar base at NE RC-\nthe fiscal year. Recent daily Treasury\nand extravazance in Ulted. The day of\nback for another ten or firten büllinn\nI have not spaken here of the customs\n1944. The social-areurity tax rates will\nrélevating rate. This reduces tuture tax-\nstatements Indicate that we may not\nreckoning D coming and the retribution\ndollars. IL would seen be siking de\nduties. which will surpais $300,000,000\nautomatically Increase in January, un-\ning opportunities, threatens extinction of\nreach this Bearn. The War Department\nwill be drantic. Just as & sample of what\nthirty or faty billine dollars in Individ-\nthis 7647. These will also be shifted to\nless Congress provides otherwer. The\nthe einst American middle class, and\nhas already advised Congress that they\nwe are duina with the money\nusl Insume lapy.\nus as consumers and reduce our purchas-\nAmerican people are (In)\nImpres serious handiraps un business\nexpert to spend $13,000,000.000 les Usin\nI wish to call attention to the following\nWe must new seriously consider\nImp power.\namounts of bonds and are placing M.\nwhich may delay and prevent post-war\nUte estimate in the Budget. No douts\nnews story which appeared a the prem\nwhether the present tax rates are all\nNOTE CHD DEAL\nliens et dollars tnto ches forms of\nresumption of production for pescetime\nthe Navy will submit a reduction of four\nat the time we with fulding heartngs on\nthat the American propir can bear with-\nNoe have I spoken of the taxes which\ning. All in all. our tax burdent are now\nand lhe reployment so cruelal in our\nor five billion dollars is expenditores.\nthe proposed ten and a half billion del-\nout grove and permanent Injury tu the\nindividuals must par to the State and\nat an oppressive level, and further rate\neconomy, Legislative actions of today\nCongress la soing to maint on the paring\nlar tax MII:\nnational Protomy. These rates will esp-\nJocal governments. The Treasury de-\nincreases may be expected to add to thrir\nwill avida prot-war problems of tomot-\nto the Donor of other items of Federal\nDESCRIT. October D-The\nptr mure and - revenue as the na-\nClares that individuals are paying\ndestructive effects.\nrow. Tax policies duribe mer sar period\nexpenditurer. They muas be reduced.\nGovernment amounted accept-\ntima) movime fluer. II may be quantioned\n$2,000,000 no directly to our Wate und\nOn the spending side, wat OULDAYS\nother well be the determinios factor as to\nD. IN vasier to save a. dollar than to raise\nunre today of . $300,000 gift from the United\nwhither je u not and un-\nlocal gurernments la property, income,\nseem to have reached - peak and should\nour type of government to the prot-war\nit tis taxes.\nStates Office of Coordination of Inter-Ame-\nwise to Increase the rates for tear that\nand other use This does not include\nADOD start to decline, To the extent USA\nperiod.\nOnce la nation enters upon a spending\ntran Affairs to be arroted to sentration work\nthe Aigher nies might cause diminish-\nun paid by renters upon property\ngovernmental economier can Le effected,\nprogram that shifts No production of\nand tealth -\nThe polley approved by Congres may\nlog returns und dry up future revenue\nwhich they de not nwo, which would add\nand there M & strime sentiment in Cod-\nwes astomine whether we are to osn-\nBOODS and materials from consumer de-\nIt will be remembered that our own\nu frait another $1.800.000,900 Nor does\ngress and throughout the country for\ntime es a democracy, operate 65\nmand to production or instruments of\nW. P. A. carried out . sumilar profess in\nMILITY ni NY nam\nit include the general sales, the gasoline,\neconomies, spending preds may fur-\nstate, or be terred to adopt\nwar we become threatened with Inflation.\nthis country, much to the disgust and ex-\nBecause the national Income - up.\nthe febacco, the amiliement, the alco-\nther lightened.\na Infollazion government. No doubt\nThis has been true in every war and is is\nperse at aur tampayers. And now we are\nit dues not fallow that the (ea) purchas-\nhal. and other taxes which are cullected\nmany will 197 we need have - fear\ntrue AL the present ume- Inflation to-\nening to do the same thing in far-away\nins possy of all of the pepulation In-\nindirectly from individuals in their pur-\nIn view of the known tachs I\nstrut a totalitarian government in our\nday La not only dureatening-It 3a. here.\nUniquay, carrying out the good-neighter\nervales, Prices have been rising and our\nchase of taxed commedities and services,\nbelieve that the time has came to call a\nNation. Outeral spathy on the part\nIt constitutes a real problem. The Treas-\npolicy as # were. But this la only one\ndailars will buy for less now than they\nToerther this last group of State and\nhalt upon farther tax increases. Imaght\nof our Government and the people\nsury Department has consistently urged\nof many instances of extravagance\nwould A. in years ago. Em which nuw\nlocal taxes will game in $2,000,000,000.\nhave dweit at length upon the amerous\nsould and would being this about. We\nthat we greatly Increase the tax burden\nand wastefulness that this administra-\nretail et TO tents - doten were 40 centr.\nDirectir and indirectly, the State and\ntax burdens which have perso placed\nwill lare our fiscal problems practically.\nof our citizens In order to mop up this\nUna is practicing. and It is high time\nor les, a dobin 5 lew years back. Fresh\nIneal governments are taking from Indi-\nupon business enterprise, which have\nThe fiscal problema of the was period\ninflationary spending money. They and\na stop was put to IL\nfruits and vegitable and at priors before\nviduals some $5,000,000.000, Mide from\nparalieled the valt increases EN insure-\nhave herp most difficult, but a to my pin-\nother agencies have submitted estimates\nthe war which were not much mure this\nthe taxes upon property and\nthat the problems will\nof the infetionary ERD varying from A\nEXTERAL -\nusi taxes. Neither business nor the -\nincome and from the social accurity con-\ndividual can. without grave injury. ab-\nbe **§D mure so. If we do net lay . firm\nTew billien dollars up to $50,000,000.000.\nBormwing is so integral Important\nhalf of the prints prevailing Inday.\nam distrustrul of Beures which presume\nfastar in our was financing. Unfortu-\nMeats, poultry, Ash. mile, butter, and\ntributima If WE Include all of the DIT-\nIntendation for our post-war economy\nsorb higher tax rates.\nto massure this exp with any approach\nnately. we ame using deficit financing\nother Uetas in our diel lover in\nsonal and business forme and property\nUnder these ennditions. e tas housed\nthe remaining days of the WAT WE\nto balance our Federal Budget for 10\nWE) the forced to take temporary and\nto exacthess. Using 1643 figures as a\nprice. Bn also were clôthing, fust. and\nlastes, commodity, sed pay roll, and all\nis demanded. at lesst until the Dati 191°\nenue effecta of present tax are -\nto product our domestic\nbasis it in possible to develop estimates\nyears previous to our min into World\nother articles,\nother taxes, the State and local govern-\nof an inflationary EXP ranging all the\nWar No. 2. n was bard to arouse the\nMorrover, many million income sam-\nminis sure collecting a stupendous em\nInstead of increasing the tax WV\nBrunimy and preserve our type of gav-\nHumant There are three ways of\nway train filteen to twenty billinn del-\ncountry and Congress as to the danger of\nets are receiving no mm dollars in 10-\nof over $10,000,000,000.\nmust seck to make the existing tax\nlars all the way down to are depending\nthis method of financing our national ex-\ncocar than they received before the war,\nan - visa NO\nmore effective In order to produce Del\nfinancing this war and every other war.\nshile others AN reserving wells A little\nThey are, first, tainstion: second, borrow-\nupon how liberal or conservative the data\npenditures. Every imaginable demand\n- AND NO. I COMPLE\nmaximum of revenues under the\ntrue: and third, infiation,\nis estimated. In fact, I believe it is pos-\nvas made opon the Pederal Government.\nmore. Those in advanced years sto are\nliving en their and sevings the widness\nAltogether, Pederal, State, and local\ntaxes during the fiscal per 1044 will M-\ntates. Mr. ENUTSON. Mr. Charman I\nTue question is asked, \"How much\nsible to produce Dantres showing - arga-\nAa a Nation we conceived various boon-\ntive inflationary EAD while wing esti-\ndeggling programa on which to apend\nand their children who are suitained by\nwe try to raise by taxation?\" The\npregate about $35,000,000,090. Together\nyirld such time M he may desire tal 1%\n10eat way would De to levy taxes that\nmotes that have all the appearance of\nborrowed and.\nRegraded Unclassified\n10054\nCONGRESSIONAL RECORD-HOUSE\nNOVEMBER 24\n1943\nCONGRESSIONAL RECORD-HOUSE\n10055\nHarry Hopkins, elose adviser la the\nFor share of the national dehi, World\nWir Mr. I and World Mr No. 1 - of\nhalf of this total Oen-\nerally over BE of the\ngates of in the first 2 - Issue by\nmains them subject la\nWhite House, on the eve of a rest elec-\nMr. Past. nearly 61.000.000,008.\ntien, said. \"We will spend and spend,\nONL N, 1743\ndum by\nbonds anid RE the three drive were Pin\nwhere the local amount received estimale\nMt. Caston. That added so the\nla alline of (stant\ntax and us. and elect and elect.\" As\nchased by insurance companier, missing\n$25,000. The Teranage in the proposed\n550 would be $14,800,000,000 that you shotts\na Nation se had swallowed the philips.\nTotal\nbill brondena and streethans existing\nodivet this Excel year because we passage the\nnational\ndebt -\nnavious banks, State and local sheen-\nI\nThat\nlaw. The following statement analyze\nCurrent The Payment Act?\nophy of the British monistary expert,\ncapital\nminta, other eprporations and associa-\nFIRS We\nWM\nLard Keynan.\nMons, dealers and brokers, United States\nLae\nLass\nà\nthe DEW proposal and la found on page\nMr. his We are effecting this year -\nI\nBusine\nObvertment agencies, trait funds, and\n38 of the report accompanying H. R.\nthe baste of a higher limit of innama, Mr.\nTHRONT\nCarlace\n3667:\nAccording to Lord Keynel, 6. nation\nM delive\nWaid Wer No.\nbanks. The commercial\n-\nNOT\nKM\nMr. Custom. I fully that, list\nTall War No. 1 data\nbanks bought $10,145,001,000 worth la\nYour commise mational the provisions\ncan spend without junit, regardios of (se\nthis a milertions. We RTV making 614.-\nNIT)\nL'\nBY\nthe First and Becond Lean drives, They\nTotal\n12,97\nILAI\n0,79\nof existing law as to war-contrai teskers,\nincome, wealth, et delit, to long as \"\nOffer\n800.000,0001\nmerely live the dibt Internally to our-\nVerit We fir\nCAMEL = me\n26.6\n-\nwere prohibited from making subscrip.\nwho sine to renegnitation If the 4pr-\nONL 1. Brank - you in\ngate et the amounts remind by such bitter\nMr. PAIL I think that = milmates of\nrelves. The process of paying \" off In-\nLawert World War No.\ntions in the Third Loan drive. They and\nthe the final par escenda under This pro-\nindividual insume-tag the Das\n16.9\nno\n- - - bal by all - -\n(lim M.\nother financial Institutions Internet POT-\nare to individuals.\nraise use herther by disaline-\nfiscal year DM un\nvolves only siphoning of every shrough\nWorki -\ntasation from DE porket to another. If\nm World We No. a arts\ncharres over 82,000,000,000 with which to\n- -\nmg. as nonta to the prime instruction any\nMt. Customs Well, $15,006,000,000, mugidy\nthe pockets were in the pants of the name\nz, TAD.\n#:\ne\nbuy bonds. Eince September 18 the\nmadel a - million all will\ncommission, premium, brikarags, of -\nspeaking, maybe no an EVE Sugnitive MAAA that,\nindividual there might be merit in this\nWorld We 5/c\nse IM 21, ne\ngo\n-\nlanks have cashed la for Individuals er\na Add $ tesals.\n- Qttim of the instructions of EDW Transay, Die\ntisges Tax paid or payable to any person\nMr. FAVIL That may form a\nphilosophy. Unfortunstab, the pockets\nWill The No. =\ncorporations $3,000,000,000 weeth of War\n- of - as 7, DIAL\nfor, If is connection with, the withing or\nMr. Come That additional 60.000,000,-\nare quite often in the other mon's pants,\nand - (Sirpt. a not\n(a)\n1.100\nMentsing by - process or . suctract with .\n000 - DATE picked up was - anone very\nThank Malt Yes\nhands. Bonds putchased by banks a\nmeans\ndepartment, - ruch person is . has Ode\nhelpful in this detre to step inflation) to that\nVice President WALLACE and other New\n(the,\nas,\nI\nF 185-3\n1,304\nale DEF credit These purchase are\nOur committes la making further\nestablished or miling spacy\nnett\nDeal administrators, advise us we pud\nhighly infistionary. This policy dross.\naffocts to eliminate those leecises DD our\nmaintation by the - I'm the pw-\nM: Patt. Burely. mindy that : him\nhave DO that \" to our national acivency,\nDas - Indicate manated obligations of UM the\nstrates the futility of increasing Istes to\nregardies of administral\néntiment was - 44 -\nclose the inflationary gap M long as THE\ntaxpayers who render no service to our\npar of verifiag business\nbeard of to the Treasury appoind current not-\nwas effort. yet, in the aggreste draw mil-\nCOMPLETE TAX FATMENTS\nThey labor under the impromion that\n- Tie Chap of Description Nar. 4.\naell large sums of War bonda to comme-\nMY Causer. At DO uno did the Treatuga\nNAME\nliens of dollars in tal commissions as\ncial banks The insurance\nDuring the debate an the House reso-\nwe can borrow and borrew and spend\nhave to lane any bonds because of -\nwar brokers. While our boys are giv-\nand spend. Their philosupis la that\nDOET OF ces EXPENSE and - PROGRAM\nand other corporations and adencions our-\nlutten providing for the extension of the\nrecently student Current Withholding MITT\nFighting 5 ginhal war requires expend-\nchased approximately $20.000,000,000 by\nthe their very all on the battle fronts-\nCommodity Credit Corporation several\nMr. PATE I and that to la Mb:\nnational debt to not dengerois but re-\nwhile our eitlains are greaning under a\nstatements were made as to the Infla-\nCustomer's qualité.\nspertable and possibly virtuous as we\nItures of funds that are beyund the\nWar bonds tn the first three Wardeng\nDEF St la candres.\ndrives. These purchases are net infla-\nhave lax burden-we hear of calloused\ntionary effect of the Rund plan. In the\ncomprehension of finite minda\nand unscrupulous Individuals who are\nUnnary, but they fail be resch the mm.\nfins place, the Rumi plan was DETET ap-\nThe national debt per capital on Octo-\nWorld War cost the United States\ncuserrned unly about commissions and\nber SI, IIHI, amounted to nearly $1,204\nproved by Congress. and secondly, its\nThe purpose of renegotiation to to pre-\naround $32,009,000,050. By August 1943\nvidual's excess purchasing pow.\nbeubitage fees. These despirable crea-\napproval would have been deflationary.\nvent an individual or corporation from\net su average of 84,810 for - family of\nthe Congress of the United States had\nThe Secretary of the Treasury tax 15-\ntures must be removed from the backs of\nThere can De no doubt about that state-\nrelaining unconsclouside 587 proñta,\nfour. During the month of October 1H3.\nappropriated nearly $340,000,000,000 for\nnounred the month of January M the\nthe taxpayers. The House Naval Affairs\nment because estrent tax enflections en\nTheoratically, this is a commendable law\nthe per capita national dribe increased\nthe prosecution of World War No. 2.\nopening of the Fourth War Loss am\nCommittee made an investigation of the\nappresimately $45, while the increase for\n. higher Income than the prevista\nbecause no patriotic American citizen\nCommitments, which are made up large-\nThe goal will be $14,000,000,000. On the\nmissingen agents and war brokers on\nyear's base at the same rate siphons\nwants anyone to 212 rich out of war\nthe year ending October 31, 1943,\nby of cuntracts awarded and the like, to-\nbasis of previous purchases the individ-\nthe procurement of Government trust-\ntaled around $210,000,000,000. The no-\nual-citisin will take $3,000,000,000 of the\noff a larger amount of money than\nprofits. Practically, # has not prevented\namounted to about 4517. The\ntest. Legislation WM recommended by\nprak the netional debt reached during\nwould have been milected in the cur-\nwar profiteering and the making of war\ntrial cash paid out by the United States\nqueta. It 1s time We face theme facta.\nWorld War No. 1 was about 8050 pur\nthat able committee and approved by\nrent year on the part year's lower tax\nmillionaires, I: to true that IL has recap-\ncapita, or 6234 les than the present debt\nTreasury for war purposes amounted to\nThe day of depending on morrie ectors,\nCongress. No doubt great improvement\ntured the printita from individuals and\nliability. Congress passed the Current\nburden.\nover $124,000,000.000.\nentertainers, and theatrical performent\nbai resulted from this action. Despile\nTax Payment Act of 1943. It became\ncorporations who have been engaged in\nto put over our brind drives must ed\npresent Federal statutes, rumors son-\neffective M of July 1 of this year. The\nwar production. II has, however, had no\nAND or FEREAL are\nCost of the - program lo the D. #. Gootra-\nWe de nit question the motives et then\nUnite that the problem is and with us.\neffect on concerns poli vorned directly\nmest (Consistite Telala)*\nstatement loss been made that this act\nto IVUI the Federal debt of the Tinited\npatriotic people who have given 00 eno-\nEvidable indicates that various means\nin was work.\n- 75 percent et the Rumi plan. That\nStates was only $1,670,000,000 By 1996\ndillares of dollars)\nerously of time and taient. The bred\nand devices are being used to evade the\nis nos a entrers statement, but, mare-\nThe hnimis, department stores, Équor\nthe cost of the First World War had\nqueta has been oversibacribed. Despite\nprovisions of our present statutes. Eug-\nCash-\nTeas of that tax collections will be fully\ndealers, and a ou, whole bukiness has\nraised this debt to $24,298,000,000. Dur-\nTop AAIS -\nthis fact, I entend they have failed. Our\nare made that these brokers are\ncurrent by March 15, 1645,\nbeen and will rontinue to be ascelarated\nthe the 1020's. the debt was reduced\nments\ntime*\npeople need to be Informed of the can-\nbeing carried on the pay rolls and on the\nLet us analyze the results of this ac-\nby the war far beyond the increased BC-\nsteadily, failing to $16.163.000,000 by 1030.\nEVT of the concentration of later belding\nback of contingent tem in order to n-\ntion and SAME how inflationary the action\nceleration in war Industry are not eub-\nThen the depression seace of the 1030's\n-\nof hends in our financial intitutions\nodre (bese unesmed gains. A study of\nof Congress was If Congreta had not\nJect to the Benegotiation Ant. The justi-\nraised the debt to $47,500,000,000 in 1940.\nPair\n14\n4.0\n\"\nWe need an educational campairo that\nDrinmber\nnome of the Individual cases makes one\n14.1\napproved the Current Tax Payment Act\nfication fur enactment of the Renegotta-\nOn October 31, 1943, the cost of the\nin\nLI\nwill reach every cittesn. He most to\nwonder how responsible manufacturers\nof 1943 we would have collected $9,000.-\nthe Act was the national defense and\nBecond World War had already lifted the\nPara\n202\nAT\nconvinced that it is to his bast interesta\nDriver\nwould be no guilible. The members of\nTT-1\n000.000 in personal Income taxes in 1941.\nwar emergency. Necessarily & grest and\nnational debt to $165,000,000,000. At the\nIND\nDE\n14.0\nand his children's but Interesta to ONE\nour committee were unablements in mak-\nThis was the personal income-tax liabli-\nimmediate expension of our wher pro-\npresent rate of expenditures and currept\nfirm.\nme\nN1\nthis share to his own Government. Do\nby an effort to stop this reprehensible\nBy for the year 1942 payable In 1243\ngram was imperative restardless of cost\ntax collections, It in estimated that by\nIMD:\nas\nsecrificing and patriotte people can and\npractice, We realize there are legiti-\nunder the law previous to exactiont of\nof our orderly procurement.\nJune 30, 1304, our national debt will have\nPark\n211\nwill steume sale obligation.\nmate commission agents and brokers. It\nthe Current Tax Payment Act of 1942.\nOur war effort required the immediate\nreached $110,000,000,000. Estimates for\nJuly\nMI\n1945 reach $300,000,000.000.\nAugust\nDAS\nSales of in the pret 4 ser in\nwas not our Intention to disrupt these\nUnder the Current Tax Payment Aet we\nmanufacture of many Items- and\nclasses of investors\nnocemary, services. There is no doubt\nwill collect approximately $15,000,000,000\nweapons and most of this material was\nA national debt of $390,000,000,000 in\n- Cumel Ima INI, D a and\nin my mind but what the cummittee\nin 1943 Instead of $0,800,000,000 under\nproduced on - large-volume basis. Un-\n1945 will tread a per espita debt of\nOctober AVE, IL & Department of\n(In infiliere a dollars\nwinted to reach this group of Individuals\nthe old method. In other words, E not-\nder these conditions cost\napproximately $2.122 for every man,\nby to wireded\nREF: punti Include lbs bibry experied\nMJ\nsin, either through political Influence\nlect $3,000,000.000 more in taxes because\nwas most difficult to secure and the\nwoman, and child tn the tountry, In\nMIA Be Blv. Out pointities are Car - al\nBenef\nprofils were difficult to determine. The\nFirst War\nor friendship with the contractor, was\nof the passage of that act and the fani\nbrief, in the agan of 35 years, our DET\nis the D. a. Treatory.\nWe\nLoss\n-\nLess\nreceiving compensation in any form as\nthat taxes will be collected on current in-\nresult was the approval of the Benegotis-\ncapita debt will have risen from 812 to\n-\nWAB-DONO POLICIES\na. wat broker. The language in the\ncome at last year's rates. This $5,000.-\ntion Act.\n82,222 despite an Increase of 47 persont\nAre the much publiciaed War-bood\nproding MIL was drafted from the fal-\n000,000 additional Increase en TAX enlies-\nThe procuretant officials have now\nin our population in this period.\nSignature presion\ndrives a failure? A thorough analysis\nlowing crudely drawn but all-Inclusive\ntions for the year 1943 refuse every state-\nhad 3 years' experience to the purchase\nThe carrying charge on this Indebied-\npri\namendment that I offered. It la quated\nof was materials effice Pourl Harter. It\nof the -bund purchases in the Pint,\npm\nment and argument that cullecting taxes\nnew at an average interest rate of te-\nBeound, and Third War Loan drives can-\nend von 9\ntwen a and I percent places 4 havy\nnot\n1,0M\ns\n4d\nhere as as to give the intent of the com-\ncurrently la inflationary. Let no nine be\ndoes not seam to me that they can justify\nFilles:\nvinces me that they she only\ndeceived by statements that the present\nthe rentinuance of this net - a repric-\nburden on every taxparer, Production\nlaws oque\nin the dollar value of bonds sold, Eyery\n-\n1,680\n1.00\nLMP\nAny amount paid to a la a\nmethod of collecting taxis as approved\nthe statute. Procurement officials who\nthat will be proded for post-war 100-\nMuhal\nerror\nLA\nbesker de individual, partner-\nrecently to Congress la Inflationary,\ncannot purchase standard commodities\ntarge has lem oversubscribed and that\nbala\n-\n-\nburden. name remairaction must carry this\nshould be proof that the drives were suc-\nPain and feest\nE\nDE misporation, - A the for excuring the\nPollowing is - between Mr. BAD-\nin the open market and through -\n34\n-\nwhicher paid directly by a retainer\ntransful A War-bond drive la net \"wo-\n5\nTHE will und be organdered - an\ndolph Paul, General Countri for the\npetitive bid without a Prident reprictos\nThrough our present deficit financing,\nOther reporations\nterrful unless the individual citizen pur-\nand ANSUM\nTreasury, and myself M found on Dago\nstatute abrued be removed. An effort to\n1,711\nwe are unconsclously buz certainly shap-\nTraine and brokers.\nTHY\nNI\nest Item to un resegntle-\nchares & large perting of the bonda sold,\nDate Authorised agents and TIPO\nITS of the hearings on the Revenue Act\nbelow made by the officials in charge to\nlog our pott-war economy. We must,\nu. d. Comment\nAt of October 7. 1042, we sold apprexi-\nune\n-\no\nFind as which to the nain us\nfor 1943:\ndelignate the Repegolistion Act as a It-\ntherefore, eliminate waste, undersessary\nmately $56,000,000,000 of War bonds in\n=\nnew true title provuise.\nMr. CABADA, Not, Mr. Poul an you in\npricing measure instead of 5 tax mms-\nexpenditures, demand rigid ecunomy, and\nend\nThe language in the proposed bill am-\nID# how much additional permant-meme-\nure Regardine of their statements and\nthe three War-loan drives. The Indi-\n7,60\ntax revenue we are gsing se adilert to fiscal\nefforta this act be considered of &\na strict accounting for every dollar spent.\nvidual citizen bought only seven and one-\nBine fortnates at - of table.\n- existing law which Hate war-con-\npar 1044 because of the Current TM Pay-\ntax It Venis dirently with the\nthat brikers as and\nmest Act of 19497\nreturn of money to the Federal Treasury,\nRegraded Unclassified\nCONGRESSIONAL RECORD-HOUSE\nNOVEMBER 24\n1943\nCONGRESSIONAL RECORD-HOUSE\n10056\n10057\nwhich should have been returned\nthat was approved by the committee\n- The history of portal rates does\nCompution of out of\nmedical mail and pensity\nacoud class RM restared by amendment\nApr rate Our conprañs migress organize-\nthrough taxallon.\nand later removed on the Insistance of\nthat the contrary is true, Back to the\nme (Goversment departments) from\nin the 1932 Revenue Act. The exper-\nNon publishes, New Testament - and\nThere are, of course, Instances where\nofficials in the vartous agrocies dealing\nue revised the rater DD postal cards Trans\npaid year 1932 is 130, include\nlence of the Post Office in this Increase,\nund religious bruke required no subtory\nthe tax base nf . imporation was such\nwith represetion. In the new pro-\n1 to 3 cruta on the assumption that -\nwhich averaged approximately 25 per-\nand ciriling use, Armad form have been\nthat the DO persent excess profits tax law\npoist we set forth anven factors found\nwould obtain double the revenue The\nFruitst\nent increase uver the existing rates, n-\nsupplied with 2.007,000 fire Testamia, fur\nin section 405-A of the proposed bill\nfact la that we centrag les than half\nFamily 1\nSal\nIf\nsulled in the Post Office Department\nwhich we inspited original plaise without\ndid not secure (all and complete elimi-\nwhich Tastime exam be taken Into con-\nthe revenue after the This DD (m)\nactually receiving less revenue at the\nsoit to Government Printing Offer. Armed\nnation of excess profits. This inequal-\nincreased rates than It did at the lower\nProm have also been suppose with unflilizos\nsideration tn determining excessive\ncards - increased.\n$75,00\n119 in our LAE law and the need for\nof my military missis and my any mis-\nprofits, During the writing of the ME\nMr. GAVIN Mr. Chairman, will the\nNO.\nLIKE\nrates. In all these cases of decreased\nsala through the D. o. at Inco than actual\nrepricing et Dew tepes of war material\nesotleman\npara\nI affered en amendment adding the fol-\n577,142\nrevenues the Department ear unable to\nnot previously manufactured ME pro-\n-\n- Chrer 800,000 soldims moviest gift bodie\nlowing words to (vii) section 403-A:\nMr. HARTLEY. I yirld to the may.\n-\n11.24.20\nNLE\nmake any tangible reduction in erpendi-\ndetailed by our members Increased third-\ndaned is the mily banks fur the continu-\nance of the art. It Is n. dangerous law.\nPERMICIAL trundes M reconver\nman from Pennsylvania.\n-\n34,064,927\nLESS\ntures, and la deficit greatest in three\nclass pustage rates would force us to atom-\n101\nIn the report of the committee you\nMr. GAVIN. I have Mme figures here\npay\n3,000,500\nyears when its receipts from postage\n- mailing to the members, who make It\nB labe the authority was from\n48,898,300\n1,217,346\nthat may Interest the distinguisted Pm.\nunder higher rates was less than ordi-\npossible for us to continue this subsidized\nthe Federal Government and plans IS in\nwill and the following statement on page\nDIM\ntieman trom New Jensey,\ntardy,\nprotuition of the most vitalty needed -\ny\nTERMIS\n76,600\nthe hands of an Individual. The con-\nglows total the and a\nM at the conclusion of Item #:\n-------------------------\n1,000,00\nIn contrast, the Post Office Depart-\ntracts are renegation under edsting\nOut of AM total estimated yuid of 11.-\nthe armed services and for timeste truitling\nTour summittee believe that to\nment is now operating on rates that\nAmonges chillains.\nlaw, not by standards misblished be Cop-\npota consideration should be\n901,000,000 in excess revenues valid by\nencourage the use of postal facilities and\nItem Jointen ,\ngross in lia tax laws. bos by RM will and\nener to the Bowncial problems in consectant\nthe committee, postal rate changes 454\nWIED receiverence in applying factor (a)-\nThe proposal to double the tales of\nnotwithstanding the fact that the De-\nContraternity un the Precieur Alonk.\nwhim of individuals appointed by nemie\nestimated the produce To\nuf administrative tranches of our Gov-\nportage on third-class mail matter is\npartment rendered free services for the\nContractor after emitracior appeared\n1952. when postal volume and Invenues\ndesigned to raise $74,400,000. The pro-\nGovernment departments amounting En\nMo. November If. JHJ.\nemment, Truiy K can be said this il\nbefore mir committee and testified that\ndropped to $569,000,000 the Per Office\n$154,000,000. for the fiscal 1967 ending\nFue A. Numar, It.,\nun-American\nDepartment suffered a defic)] of DM,\npesal completely ignores the law el di-\nMr. Manime Karur Charman of the\nminishing returns. The estimate of ad-\nJune 30, 1943, the Department had an\nthat Part Office Committee,\nthe registration of their profits had\n$85,000. Agitation at that - for\nWar Print Adjustment Board. terufying\nremoved funds needed far post-war ess-\nhigher postal rates to lave the\nditional revenue is based upon the post-\noperating deficit, that is, cash deficit\nWashington, D, c.\ntefore the Wass and Misco Commitive\nversion. Our manufacturers must beild\nage actually received from third-class\nwithout any credita for such free MET-\nOur Durigo missing kendquarters ADDRAIN\nthis expense, was defeated for the soru-\nsubmantial reserves for port-war conver-\nmail matter in the fiscal year ended June\nless, of only $3,543,000, and for the 12\nFT mail for node for missionary\non Replember P, stated: \"The rengetia-\nment that the deficit could only to wiped\nwere Proposed increase os por-\ntiun of ⑉ maintes is . dangerents and\nMon if they are to immediately receivert\nout by maintaine low raim and building\n30. 1942, aggregating $74,378.000. As a\nmenths period ended September 20, 1942,\n4D nas vill - the Instrume to -\nto production and take care at\nmatter of Det the postage for third-\nthe Postmaster General abonunced that\nministers by $15.000 must your This may\nsistute.\" but fater (105-\nup portal volume and revenues Time\na vo the stounds that \"We are in\nour unemployment problem. The pres-\nhas proven the of that argu-\nriam mail matter for the facal year\nfor the first time in the history of the\nlurge in to ORANG mailing appeals, thus BANK-\nens policies of the renegotiating agmire\nended June 30, 1943, was $10,000,000 less\nDepartment the total cash receipts\npering religious activities and taking from\na and destructive situation.\"\nment.\nRepresentatives of the War Department,\nIn this regard are not only unfair to the\nIn 1942, with the same los N/A así-\nthan in the fiscal year 1942. This de-\naggregated over $1,000,000,000, and that\nthe Pass Office Department the great sum\nmanufacturers bus they will prove dis-\nCANADA in postage la due to A. number at\nthe Department had a cash aperating\nwhich we now spend on pottage. Pain FEET\nNavy Department, Marilime Commit-\nastrous to our future scuncinie structure,\nprofit of $12,000,000, outwithsianding tvo\nser not chjection in in postage\ning in 1032. revenues had intround to\nsion, and olber apencies authorized to\nfacture, among them the shortage of pa-\nase\nIn THE opinion It will be much better for\nand the deficit 9M redued\ncredit was taken for the enarmous\nrenegotiate regiracts appeared before\nDEF and curtailment of use of paper by\nBirt, BALPY M. Formative.\nthe manufacturers to retain a portion of\nto $11,835,000, a seving to of\nour committer. There la no drubt but\norder of the War Production Board\namnunt of free services rendered the\nexating profits fnt reconversion rather\n$195,000,000. For the fiscal year 1943,\nwhat they an honest, capable, and -\nrevenues are estimated as the all-time\nGenerally speaking, the postage rate\nuther Government departmente.\nBANTIMURE Mr. Number 10, 1M1.\ntriatic. They protected visorvusly any\nthan open up the doors of the Federal\non a large volume of third-class mail\nThe Pari Office Department has a.\nDepensentative fels A. Are\nhigh of with an\ncharges by members of the committer\nTreasury for post-war reconversion\nmake is 12 centa per pound, subject to\nminspely an first-class mail matter.\nfrom no 000 Committee,\nWashington, D, D.-\nleans,\ndeficit of only $2,543,128, notwithstand-\nthat they had shown favoritism as be-\nthe Postmaster General Walker's IND\nminume charge of 1. cent per place.\nThis a the entr class of mail matter\nMr. KNUTSON. Mr. Chairman, I\nDate the Wass and Means Committee\nwhere the law of diminishing returns\nThe proposes income la purtage nice,\ntween manufacturers ni individuals. that\nyield & minutes to the gentleman from\nstatement that additional revenue\ndines not apply to the sacie extent as in\nexpecially == mail under exp. would be =\nthey bad used dures in any form to N-\nproped this rate would be 24 centa per\npossible burden 20 Hally Trinity Fathers\nNew Jenes TMr. HARTLEY).\namounting to $103,000,000 would have ac-\ncure the signature of the contractes nn\npixed wills a minimum of 1 cents per\nthe other classes of mail for the simple\nthrough Increasing PAR amount privitage a-\nthat they had in ne in-\n(Mr. HARTLEY asked and was given\ncrued to the service If all governmental\npara and on mailings of Unterd class by\nreason that there can be no competition\npepase by $00,000. We werk financial aid to\npermission to revise and extend Na re-\ndepartments and REFORM had brea TM\nwho mad only small quantities,\nwith the Post Odter Department on the\nmissions and studeuts for\nstante destruyed ur damaged the curpo-\neste structure of any corporation, and\nmarks in the Racom.)\nquired to pay postage on their free parti-\nthe race would be increased from 14\ntransmission of letters, whereas other\nthrough mill appeals. Increased cales was\nMr. HARTLEY. Mr, Chairown, I wish\nalty mail as proposed under the\nthat they had at all times given endit\nfor each 1 ouness to a centa for\nclasses of mail matter move by compet-\nuvole to to suffer importable Com wind require\nand incoursement to manufacturers In\nto address myself to title IV of this bill.\nbut With this adentional revenue, the\nlog methods nf transportation, or du not\nto complete elimination of mir -\nFach 2 ounces, and subject to minimum\nI do so not because I expect to change\nservice would have shown a profit of\nBro, E CYPER\nneder that the manufactures reduce and\nof 1 centa per proce. It is obvious that\noriginate nt all because postage rates or\nMaly Frimily Fathers,\neliminate cost a far M pasable Despite\nany voter fare this atternoon un have\nnearly $100,000.000.\nUse mail mailer if third-clase matter\nrálas et transportation are too high.\nPerk Maights Avenue, NA\nthe protestations if their conduct of\nthis true reserved from the hill, last be-\nThese figures and experience quil for\nin small quantities, who now pays the\nThe Post Office Department must of\nthe prinentings witness ufter el/ors op-\ncage I want is call to the stiention of\nthemselves and I respectfully direct then\nlivels per piece cannot pay 3 cents per\nsecurity maintain 5 encrease organi-\nTom Invoice\npeared before our committee testifying\nthe Committes what has bend done by\nto the attention of there Member of the\nprese for unsealed circular matter.\ngative for the handling of first-cipas masi\nMilliburgh, N. 19, 1941\nto the rentrary. I am reminded of the\nthe Committee on Ways and Means with\nHouse. Low postal rates encourage nat-\nFor the large mailer of third-class mail\nmatter The lower rates on other claims\nMr. ne A. HARTERY, Jr.,\nold adager. \"Your actions reside no food\nreference to postage rates,\nIngs and produce larger volume, higher\nmailer in balk, the rale of 24 centa per\net máil matter, such as woold. third,\nNew Poit Office Committee,\nI connot braz stat you say.\"\nI have profound respect for every\nrevenues, and higher prefits. Hight\npound, or & minimum of 2 cents per\nfeurth class (parcel post) money orders,\nWashington, D. c.\nEvidence clearly indicated that patri-\nrates discourage mailings, reduct volume\nwill likewise be forced to curtail\nregistry, Insurance, c. n. d., are in the\nDue Bra: Dur home for cryben boys in\nmember of the Committee on Ways and\netic, capable Americana making an has-\nand lower revenues. and create orticits.\nmilure of fillers-in and rater generally\nsupported mainly by\nMeans, and I revenue the tremendous\ntremindously the volume of mailings\nTherefore, is is probable that the Port\nin the pmt have been Exed. for those\nby mad. We chject to Ways soa Means Cam-\nest and invaluable contribution tal the\ntask they have had in trying to find ways\nMr. HARTLEY 1 thank lbs\nmitter proposed IDENAME in pai-\nwas effort on the home front sere per-\nand means to raile revenue.\nman for bis enotribution. ever M\nOdio Department would not realize as\nclaims on a bads which will encourage\nage rate, is u would deprive - of facida\nseruted by Individuals representing these\nTitle IV is & las on postage. Frankly,\ndid take me off my fort vést effectivels.\nmuch protage on third-class mail under\nthe Use of the mazimum facilities of the\nnacessary to cara the orphans. Chiler pm-\nagencies in the renegatiation of con-\nI do not think M ournes within the pur-\nMr. KNUTSON. To: but be 2> make\nthe Nahe rates as it now receives as the\nprestal establishment. The results for\npost EME eur mailing may bate to be dise-\nView of the Committee on Ways and\nins - good aperch fur the\nlower rater, Purthermore, It is doubtrol\nthe 12 months ended September 30, 1943,\ncontinued, great to the Past\ntracts.\nwhich enabled the Department to show\nOffice each yest.\nWith this the committee\nMeans to deal with postage rates No\nfrom New Jeney.\nVhriber the Department would be able\nMr. HARTLEY. That a FIRPS il actes.\na cash operating prodit of $12,000,000 and\nBicomily\nand about En revise and rewrite the Re-\nbeartings were held 8 this particular\nto reduce expenditures to any apprecia-\nRun, RED the Kran,\nnegotiation Art. The results, 1 am sure.\nsubject, and the Post Office Department\nmie attent by virtue of the reduced mail-\nat the same time render $154,000,000\nThe gentirmen has mentioned pepalts\no, M. Cap. Director,\nmail. I call attention ne the not Unit\nless\nworth of tree services for the other Dor-\nare cell satisfactory. There RETE the\nwas not consulted, nor were any of the\nIn 1923 the Past Office Department\nernament departments, for which they\nto the committee who wanted to repeal\nthousands of small business throughout\nthe committee report stades that the Post\nParm é Co,\nthe act unmediately, then there were\nthe United States who are to be severely\nOffice Department is operating - the\nTwo same experience with higher rates\nreceived ne credit, should convinoe all\nNew Tark, N.T. Number II, 1043.\nothers who wanted to greatly expand\nUse the present rates on third-class\nfair-minded persons who wish to lonk the\n1nd If they did what they are supposed\nThe Nationable Fune & HARTLAY M.,\nburt. particularly by the revision of\nthe work and operations of the act,\nthird-class rates, nor were any of the\ntax de and took credit the penalty mail\nthat matter, and the higher rates THE\nEacta equarily in the fare that postal\nThe House of Representations,\nrates on classes other than first-clare\nWashington, a c.\nAa nne metaher of that committee I am\ncharitable and educational organis-\nthey would show & prufit of ont\n4n a decrease in total postage\nPROVIDED The Post Office Department\nmail should not be tampered with or\nDeas a - know that you will give DUP-\nennvinced we have made givel improve-\ntions that depend upon third-class mail\n000,000 We Members of and\nwithout a most careful study.\nDid consideration to the recommandation of\nment la existing law. 1 do not expect\nfor the solicitation of funda for their\naccused many times et being very nit I\naum had similar disastrais experience\nThe following letters and vires foretell\nthe Home Ways and Medical Committee to\nto mention specifically the many\nwork.\nin our - et the tranking privilies\nwith the doubling of the penny postal\nthe inevitable result of this tax on the\nIncrease portage Tates, Due por\nchanges that are proposed as they have\nTitle IV in beed on the DAIVE wrang-\nwish to make N computitivo to show yest\nnis Fate in 1820, when It was increased\nhave status all the DEM. NEWSTER, we am\nhere frankly discussed in the compli-\nfrom that by the postage na\nwhere the real CORP of mailine - n\nfrom 1 la The postage formerly\nPostal Bervice:\n\" Y.\nthat you will decide against the\ntee. I de want to mention one lien\nWe are ening to receive additional CITY-\nto apparent trum the following table:\nreceived from prony postal cards almost\n-\nIlem Fro A. Jr.,\nentirely disappeared from the postal BD\nPart Office Committee\nPlat. Cherr is the Implutable that that an\nollat hanks, In,the fiscal years 1933\nRespectfully urgs immediate revisions-\nincome in postage CARRO a Informet by A\nand 1934 the masimum wartime rate on\nUse of proposed in past-\nmarp registion = TOTAL Time there in .\nNo 10-0\n10058\nCONGRESSIONAL RECORD-HOUSE\nNOVEMBER\n1943\nCONGRESSIONAL RECORD-HOUSE\n10059\ndecresse revenue of en break. 70\n- AMOCIATION, Imm,\nTHE participarty in The\nential carefil has\nI've appreciate the magniture or Lbs Test-\nFee Tark, Norember 1043,\nwould, if por tato effect to no di pm,\nID this letse, which Informas the\nthe or - Pratal Few\nin Use papir - general bustness,\nvita CDP example. when in 1817 the TATA en\nat the Cosmittee on Ways and\nwhat 4d Innome - State\nand th the national essessary during the\nperiods part einta - Increased to $ canta.\nRepresentative Tup & It.\nOffice puliting,\ntimilly way. put - and of - to -\nthe and the rejort of the committee\nWarline and in the the di pur in -\nrevente from this class of mail immediately\n- 400 excluse 18 has come\nWashington,\nE have boxes growing NOIS\nDepartmental sours have tes\ndropped Imm to\nde the of the motion be\nto to It is a business represted through\nofficials and the tropection farce Trans\nBecond, the Portal Service is as semetial\nMy Days May BY saic you\ngenten and to the planers of the\n- ust nears M to the Desability of the\nform than HAS part offices. -employe\ntherein represent, and DALE aum\ntraded their were hours to the stand But\nservice and should cot be engloyed - - -\nto please egis spainst the increasing of post-\nitregt the medium, for -\nmm then $28,000 persons, in bindles MED\nIng medium. It plays . part in the\n- cetes from the present nated A Dew of\nthe at . tentury, Our\nincommendations - may sealn appropriate\nwill tare nnd been able thereby M obtain\nyour emamistable mate priperty, AND étreet of\ndaily life of the Name, and # should all -\nmy are as Entlows:\ncirculation is to - to ope\nof the Committee on Ways\nthe retue of more than\nthe compost mangower naturary 4a per-\nfirm even our daily taxis in the manser\nFirst, this will be dimpolntment = the\nWe Mt the outbers of the Mation son\ned The Postmaster Orners. la havely\nи\nM\nfellows:\n2 an intricate Involved and sumpliested\nclassified - hummy,\nand with the throught end deliberate -\nproder to planters bith M phone\ninterprise of - and treatmênts\nThird, the present postal - dring\nrelating of revenue - pay Generament -\nand directed 5 procribe after\ninderation that all of UN B the Pressal Birror\ngood job in producing genente, Postible\n- because people will just endure the\nvariaties to plant is their - quantity\nday-to-day operation. Da wrt la must a\nrespire - stadulary -\n- of the mails. remember rightly, -\nof and regulred for given achage, example\nnation us4 but tot Inter than no\narting and the best is\nGeneral Wallaw be said that if all -\nWith the appruragement we Bate retained\nmental capariments and agencies - -\n1817. when the - rate on portal cards -\nM well to cancing note\nmg the date of enactment of this NOT,\nThis trugs interprise to operated with . main\nfrom Congreer In revent and result-\ndentiled, the extension was instructions about 50\nparant. think this tutida trae in all classes\nthatructions próducts. for preserving the surgivas\npreviding Enr mit Intreases in\n(If besdquariers citime Interned ut LATT per-\nquired to pay postage DD Sheir Due\nthe the desire of Congress to - than the\nthe partage applicable to mail matter\n- impected, sudited. and Matrieled\nmail, the Department world have shows\nof mail WITD our exemption and that la air\n- well-known last that the\nPostal Berrice la implementad subsidently B\nstar with CMP (except free county nar-\nin iss exchings by an time if\nprodit of $100,000,000 in THE\nmodort its state = businessibe Mistic\nmail, Benefition believe Date people will pay\nentarged the pass 2 your by Vistory Birth\nan mill mill matter of the time class as\nil\n8\nhave in the maintime stimpled. within the\nFourth, the proposed peroma tax 6 party\nmota to end en atr-call latter, where \"\nmovement, - & to the\n- - in order that the revenues\n1: M that the important sed is-\nlimits of available personal, to make . start\nend post would the tax egainst\nD/W only eurta e senta. believe all the\nwilling of the Parten. There la no when\nthe - - class and in the case\nsetting work - every and 01/04/2020 can-\nIMV [ of portal which\nthe mail-cinder house, and made particularly\nsiber proposed classes of dall #: the new\nof reching and rerving this Fail -\nreserrable classifications within each mush\nnet be clarried toward a/tequality with the\nare directly related to cata, and\nthe and industry which dima the\nrailes will simply reduce treminaly the\nber of - except through the mad-\nVIMA will fairly approximate the sorts and\nlimited departmental and importion -\nnine\nMILK di the business with Vistory gentrate\nwornt of produgo and 7ur example, the\norder division, made possible by\n- attributable thereto, and to\namaliable, to even sure the out to\nStatement find this managed upon\nthrough the mail. n world - that this\nDETAILS in money orders will make # to-\nservice and respectible retains,\nuned - regulations, from time to time,\nwith the tremendoms TIME at dity-No-\nrevenue with expenditive figures. It has\n- la almo Allested against the telles to\nprodiable to and money orders, and people\nWe remaine the Streetly of higher use\nto carry ous the pur-\nor sperations\nmemed to me that the - pode the nac-\nruni - 13 le drives that\n- - tank checks in plans of them.\n(R) - in critten to property finance the\npar of the art. The of pastage pro-\nThese TIMES have HIG. eme prosected\napparent la n) be terms IS the valume and\nthe people living to the larger uma have\nSecied, such so increase will cause 20-\n- a complete victory - & person,\nridel - = with regulations shall tecume\nto the Briss et the Budget and to the no-\ncosts. have tate for - use, - Indi-\n- Issn occusion so purchase by mail.\nshetten in all claims of that are sent\nbut M the same time, if you in De them\n1 In liera of the rathe - genelded\nsommittee of the Appripriations Committe\neased in the hearthgs tefore the Aggrepria-\nLower poidal rates mailings and\nto our buys in the armet the and tn our\nof extting below the is\n- with ressonable - after Be\nLess per in with the 1943\ntions Committee last year and Again to my\nthey produce inrger volume and bigher me-\njotgrast that would be a calimal caluming.\nalcured, - - world - to M\nprevisigation of each regulatives as the Past-\ncates for the Postal and\nMEDICAL report for the their yesr 1941. that\n- Higher postal retes will have . dissi-\nThird such an Increase will drive many\npostal rate en third-class matter, - -\n- Goesi may provide them. The\nagain in the past IAW treathe in consection\nthe past of portal sevences would KIGS -\non business mail and tiring\nmissing of - and thus\nslogs end and the Commission\nprescribes pursuant e the prem-\nwith the deficiency appropriation tax 1942\nresibed and that postal were volume and\nLaste reserve to the prosect\nsubmatically the -sill be refund.\nwould wake up with disinisting returns the\nune et 12/a ect GRAIL M published in the\nThe Congres sympsthetimally resultered our\nmata would Insurance to disconsing grent\nVery truly yours,\nOur firm discuss not fall la that class.\n- as developed back to about 1917 within\nnationality problems, and - were allowed,\nparal trustries with the Appropriations eur-\nPero Dr.,\nVery contially yours,\nthey Increased the penny postal out PAIN\nMay de the SAF that hourily ap-\neffective his 1942, for the Denal year 1643,\ncommities be par terture the et\nHame Com, provident\nTrur.\nfrom\n1\nto\na\ncands.\npour proposal that the Primane One-\nDer budget Mail Administrative plan-\nthe staind this TM my #gitime M\nWe sollois your support and -\nPU be and directad to and\nning, 4. tuber executive plans, and IT mine\nthe point partam of the patal\nTotal Sine On\nTHE Ce.,\noperation in & apirit di pasition to all that the\n- the the perpose of\nsincient plans Jur the departmental ante,\nINTERNATIONS M The extimated for the Be-\nDate Mast,\nChicago, Nonember 1341,\npresent postal nie be and remain - story\nad visitying portal fates and noting THE-\nand un additional inspectors.\nest your 1983, besise nate more staudily\nExe A. HARTLEY Jr.\nHon From A.\nare for the time being.\nNo with planse\nour milimaties für Chme requirements WERE\nmumting. 1 the M the - this -\nMount Fort Office end Port Brinde\nfinase Office Building,\nTours\nItemio The proposal is the now important\nsubstantially twair, and Date bund agon .\naboutd Drive signation and -\nCommittee, Washington, c.\nParkington,\nCompany Baco,\nwas VIII endere portal bistory. The zined\npeacetime portal REVIEW, Bubsequently, the\ndata In crée that signature canges in the\nMrs: We distre nur = provide sesure\n50. The sured and quicket\nby R. Common.\ntoo this study NN - surger. I text R is\nCrupen allowed the di the all-\ntrund of pratar effects might in Enrought\nthe proposed Increase in the prinal vatas THE\nwas for Cropies to make the United States\nServicery and\nbeau destrable that the hearings to Bill-\ndiffirmad post-ofice to begin April\npromptly M the Allentino of the statutive\nbeing considered by the Blower Ways and\nPostal Department an instruct begar to\npublicity This la to the test\n1 and united with NED these\nand Impalative brunber of the\nthe family of Government signature la to per-\nMail Postal and the host a\ncompleted their preliminary missing, wader\nfor treasury artion\nMassa Committee.\nTax Co.\nmit the Ways and Mrina Committee to nas\nEMIT GMVS M well n should BRIVE sine to\nstarts then on that com tal -\nis ventre su keep informed vermitty et the\nHills that the Postal Bertice should\nAnderson, Ind., Resember 12, 1343\n- used AS a means of The pro-\nportal\nnies.\nmay la the proble . better\nsume qualifier post-office inspectors.\ninsurations, to February of this year Insu-\nThe Pun A. HARTLET, 2t.,\nThat statement - straight from the\ndan et the Postal Service and desit\npast Intreases un 20 prest that their par-\nBouse Office Building, Washington,\nThese recommendations to the\nsured system of monthly exporta LTD\nmen who Day Use butters\nto à mes classis defined public polity\nuther purposes, and not tue the expense uf\nlarge mailers of ans- and third-\nInco Ba: Being very boary mall Lawer, --\nint the Appropriations Committee -\nof the largine pat office to refert promptly\npar can only be the raising of maney the\nDATE to esta the follow-\nare naturally any much the\nunde - care for . existing - the\ntrends to paral business While the reports\nthe Prat Office.\nclass mailers who Che nine and\ncommunications to your committe\npossibility of increased postal rates\nDepartment a. your stock. Defore must me\nare out DESCRIPTION and M yet do not rontato\nThe rate increase would be am Untair CA-\nwho have been keeping the Post Office in the\n1. That the proposed legislation most that\ngranted the was - upon u. and to visits\nthe distall which believe the Department\nblack.\nWe would Das to register our\nthe unity, Desrings, and alabority embrace\nbrought INV and greater prehima to the\nabouto have continualy before It that\ncrimination against certain of box-\nEvery large national taslier % have tailked\nsgainst each action for following name:\nour provide rates and Tales for all\nestabilshment. Wartime postal any and\nLimis orporta ATE assumarely\n- The example, for 19 yours - have\nto (and the THE of 0 of was ac-\nIncreased postal retai - . missing of -\nprécimed - the Postal\nshipped simple show to the\nposten had DE to planned\nof the trendo On The Train of this Infor-\ncust for some places of mail mat-\nBen a sconomically trearund, - IS 12 a.\nThat = time Unit be prescribed for\nwill glound ID operate. Not in\n1 facil year (94) as 6 while will\nby partal post, The detailing of the\nthe Drive it retra but that the propress\nshare in Inresse to Revenues Ute fiscal\nMS sub your) la uniterably oppoing to this\nmust a currellment et Whe Mit ut and when\ne. and the increase of the money-order\nprovider) a instrust and trus Mia entire\nblighting legislation.\nNVER postible. and this will at least\nIssue direct dirt she spudies and best-\nyear UNL and the school postal defint will\nTHE would não time est of our sizume stout\npustal performed in the application of EDH#\nan types 1977 par. The relaing uf Chem tales\nsould possibly gata from IL not even\ndefeat the purpose.\n- BY reguir promptly:\npromitions - - have the gratinumi TAXE\nbe Lire mailert state 1826 The Depart-\nWHINE - afters the mall-order times who\nthe individual who mails single letter a.\nThe time THAT give va grestest -\nThat De implage of the proposed leg\nat weing NO IS that the procedures are Tell-\nand Than passed the park nd TENM-\n- you the wirk-land volume if\ndo - - c. as the nin\nday to . substier. autor, ur marina. And\nin the proposed Increase or 5.\nLe emended to enquire that\nbread and - more effective\nIncreasing und will table do sin In\nse - to be\nemployee who máils, If who receives mail, or\nDoutling this programa www.ll\nBills to) fates tor postal to\nthe extire Postal Birtabilishment.\n- splain, there will be - substantial de-\nwho handling mail and delivers It to the No-\nour postal mat emething move the MAY\ncare, and destications within cleans,\nin the rubbe shortage issued to\nThe mate Increase step the Out-\ncliza in postal revenues for the Best par\ntime/s pod after would lose. And this in\nmeth 16. que strage - 40,000 =\nMinis tim Government has the monopely,\nthe so Das Bronght - the allogither GSM\npolicy en Solding the Doe - prion,\n1942 and a substantial Increase in\nBy . Targe Increase In postal rutes. them\nWky: Instead of detibling present partal\nshipments per mouth This income a\nla live 20 OF to fairly apprintmate the vista\npolim ut finding ways and and tax-\nvolumn. This will miss MI\nwould Date to be = extrapending locesar\nresipts IM sme area to dream)\npense cannot be passed alring a a per\nfor expenditures respectively attribuladas\nvantating glana for DIVIM the mails over\ngreatly extreed and is a sub-\nit. will individually - the amount of mail\nchaser to the tue of present prior -\ntimelo,\nper year. notwith-\nin pries. Many time would have to request\nstential postal drügt.\nmailer\nin\nmalt,\nSt\n-\nbigher prim callings for their pots, far these\nZust\nas\nthat\nBus NO. Increase - apour and -\nThat the priçoind legislation be\nstanding of rublur supplies\nTo what extent and to What - -\nexcessive proposed muld tell be\nnuw of the (-empt poid-card fate TAX\nously Impartion - business.\nla require that mais and expendi-\nUnited adaquate supply of rubber is made\nmoney this will be refected I - n/d yes in\nstarted with premit estitrigs.\nmain thank in 1817 cut the yearly\nWe register the difficulty of the poties\nlaw la respectively attributable\navailable. this will be . problem of readjust-\nposition to approximate the 14 an\nrevenue of $20,000,000 down to\nFurthermers, the time traives eight will\nas band and realize That you are doing -\nwhe cass, class, sud classifications\nnot = the first magnitude nocemently IS+\nentirely bm pinar to postal Ren-\nTo eum VP the arcosed Antiment: The\n1 m AS actual lue ML IFFICIAL To 12.\nNation's matters do not want If The recipt-\nthing puacible to make en equitable num-\ndise, wherein the Ouversment dom\nmot changes = relites, achedules,\nschore when there lisa been decline in postal\n140 love the menopoly. and that the INDIA\nand operations, not mily dur-\namplies WW would pomitry Mandon - tra-\ninto if mail do === PAST it. (They are all\nbetten d De DER Secies. We - - D\nINFORMAL there hM also ben - decline By\ncontinued or shipment to favor\nww be possible for you to Dad . pur -\n- lis fixed in the light of the general\nIng the war period. tran requires restjut-\npaid por activedy curre-\nmailers themselves) And Wt. who - the\nof prepaid paral port, the listing Tut the\n- et mail naturally en net met TL\nable and producted and that\nMin sed Las public Direct: and\nmenta of comparable completity after the\nspooding - nevertheims retirer persibil.\nn wode Mill the \"potee that bays the\nrater will be mestinued without 1\nThat the legislation be smilet 80 that\nwar.\nThe Department, therefure, mide than NEWS\nPost Office the provide revenue they get\nfrom Many firma would\nBeparthilly yours.\nof the Partmater General -\nIn addition to all this there have come\nbefore. amida to equip name with openting.\ngolden not for the Post Office\nTHE\nwilling . file at postage or & Date for\ntremendiras for additional postal\nvolume. and me data.\ntime any from the mails to other forms of\ndistribution.\nTherefore, - represtally appeal to you\nto vote against this periode fall\nK.\n- not diatre used €) days after the\nwork and services me other departmente\nTo (Stain and analyze them data\nTherefore - to the proposed -\nNives Exing the rate = reported to both\nand agencies of the Outernment to - in\nend to begin promptly the DIRECTORACY budget\nRespectfully,\nof\ncrease Burno of latalin, - discrimins-\nCongrast,\nthe - efort.\nand planning sux un the et-\nTime Desure\nOmice or\ntime againe) extrain - BE la\nWashington, THE\nAA my and before the Bumani\nFor liese name Use Department cannot\nfertive date of the 1943 appropriation, had\nfavor of M . - of increase in\nA. Jour President.\n1bs Budget and the of Lbe\ninudy and plan adequately to improvement\nto resididate certain plana shink - per tu\nHow. ROBERT L. Doucarros,\nonling prices - many end M en We\nComes Bota, Emergen,\nChairman, Committee os This end\nCommittee last you. I Indi-\nand simplification of speration and manage-\neffet 1. 1942. I have established the\nadvised plan which DAS result In - my\n- that ta my opinion there wes A real\nment procedures, por own it - the enstin-\nOffice of Budget end Administrative Planning\nHighs Increase in review due to a transfer\nRockford, DI, November 15, THE\nMeans, House of\nDirectly trie a ententido study of mata and\nvous and mentially and and taxe-\nand Jaid duwn . program of work Ter #:\nor present Post Caffie visitime to other\nHm Compression Pue A. Human 2t,\nWeshington,\nend Att modigos application of\nnue studies del ISSUE be made, DE cão If\nhave brought tugether under the at\nHouse Office Building,\nB.\ndistribution,\nJune Date 25, Mr. 1942, CHARAMAN: which have certail action\nyour\nRespectfully yours.\nWashington,\nThe - of the the purial busi-\nplan sufficiently the the 9\nAcemuits all the wirk of the Department to\nDetemary to mes the pressos daily changes\ninspection with reparts and comunts Matt-\nMr Dues prom 78-\n- the part et the Post Office Departments\nGeneral Manager,\nInsues indicating redical (arress the postal\nrespect of postage rates - second ant -\n10060\nCONGRESSIONAL\nNOVEMBER\n1943\nCONGRESSIONAL\n10061\nopportunity for working out is\nAurther\nand\nand the\nvisas\nENTION\nla\nthe\nI to the remaining centa of the\nabove\nDM\nrelations,\nprevent dynamics of the national have seun-\nser baste each conce or traction\nhas\nthe\nCases\nbird\nand\nwill\nemithsw\nto\na\nmail\n$128,200 - time Duresd et Accirate and\n-\nearring\nin\nener\n-\nthank (first-class numbert mails @ 2 esta\nLost your started the WORK of surveying\ndellar\nexpended.\nnational\nrepundt - bearing from upon the the various relation claims of the of\nfor personal services - the Dutries\n-\nto\nla\nto\n4a\nper casos, or fraction thereof). Fir the 1%\nen mail heading and Custital apecations\nThere remains but ans altergative in the\nvar\nafter\nor Odumbia for FOAS a\nmodern\npostal\nfor data in united shirt there might be and-\nbeen\nPrivacy\nDO\nsuch\ntime\nderived\nof - and la to matrier this\n- mail and the special certify and the costa\nthe Pratal Service will dalliver E-outson\nof $180,001. est 80.50012 of mich dellar of\ngreat\nthing\nif\nand\n-\nBAG at printed matter to any portal patimn\npistal expenditions, The factual statement\nthe first time cumplete and Instrually\ntogal and - or service that - in the tary\n-\ngreat\nat\nand rependitant attributable thirrie.\nanywhere in the Called States. Is the main,\nsomple - for the terpora-\ntradition of this United State Postal Berries.\nplans\nDar\nReld\nil\nthat the average yearly estary of the MI offiv\nmeet, and transportation buildings, поща, N -\nTM Lingest Date: in this relationship be-\nthere is little diffirence in the expecie in-\nclaim and employees engaged - this work EN\nparol and of postal repersitions,\nA step - Lhis direction world. -\n- quital revenues and aspenditures, as\nvolved in the transmission end delivery or\n81,975 a à sufficient - CD the\nand for - in the assiptes of of soft.\nhave Qte effect the ist artive-\ngrowth upon the is repectation of father\nde pripanal of your cimmitties Indicates,\n2-mails for which the Postal\nof importance that XIAM the attached to this\nThe prolimitory gettering of the data DAS\nles and dispatables, world redue the failli-\npregulation\nI\npatal to service \" will M for\nHervice orata, and the\nbirn unmpleted and graphic charte\nLine of the Postal available file intre\nbusiness cycles had that ethin - This the\nmill NY have brought -\npiece of third-clate maller for which the\nvital, and professional\nwork.\nthem Sold operations in details Date\nby the public, and would timin substantially\nmini) possal United business, to declining this elen TM -\ne 134 - that Inno title attention\nPostal Service minimum 1% centa, camps that\ndepartments) officiate and the\nthe - of the postal organization by the\ntal volume and puelai manpu. number Provide a R.\nor\npaid to the relationship that exista\nthe third-class matter times tud resure the\nby the sympathetic interest\ntrapection trave for attaty.\n⑉ tarrying\nMINIS paral rates DD the DDS hand, and\nsame priority = handling. It dom réquire\ndisplayed by the Congress in our management\nAs - of information childred discrime\nextivition é redical strp would be -\nproblems, have contribued will the over-all\nremove, proditures. Md tx Il MOM Bag effect, love\nrepaiderations and the public wel-\ncomparable of clarical work in -\n- proliminary survey 184 Department bas\ntrues to Now tradition of the Department and\nPortal that deflicing in - the\nMinute\nnention with the collection, distribution,\namonting, reports, and soit - in cos\nin - the eiser, Notwithstanding that\nbeen able to eliminate and collections\ndeparture from the patiental policy\n- ritas and ATP involved and -\ntransportation, and delivery.\ntravel affective July 1, - have laid dren\npersunt By are Guyernment sizes the crea-\ndeclining mura volume.\npm it M in the public therest that they be\nThus, n may uppear by the\nplan of sperations. By them - Date\nreports and tream than In MY the persod to\nmadern posted bistory. This has posst-\nMm of the Busted Entablishment\nTo period of business Registration the Ad-\nSMIR widniy and more often -\nthat the portal to or rates charged du not\ntime of improving this with But It -\nDIE WITHOUT En any way from the\nAnrther and area larger factor in this rela-\nto public services.\nmest the experie eleminable w the\nsincerely without anything that time primintary\njustapent of placed expenditures - fincal\naddress of aperations and without dispans-\nturnship between revenue and expenditions\nDM naver been easily managed. Bighting\nto grinté Business epate have always been\nMany my that the ARTICLES are in the\nsteps with ndt adve the problem of\nthe WILE namedacy describe and\nthe work and service performed by the\nin the early thinks\nprincipal orgaideration to fixing the rates\npublic The public stat have an in-\nnanpower M do the job as is\nshould\nbe\ndute.\ndata, By the of GAMP report\nPostal Estabilahment for other governmental\nhad the experients and Delt the either a &\nif clargie for the product, In portal trusi-\nexpensive method of qua cmmumication\nform. the Forted Service - sees wrett\nagreem. Other transiber and specion the\ncreared postal Innome and vistas\n- putitie welfare has received serious con-\nthis apecial delivery, tithers nated that\nThe destrability of sime method of 0045\nyear OF of préparting sod\nDovernment motivo to rely more and more\ndirigged sharply with Be darline la print\nin the firms of rates, It is proper\nbulone and private equire an -\nAccounting has been recignized The many\nthe By do-\nupen the postal organization to subsit and\nactivity. The public fax\n1855 - policy should be continued in some\nnomical means nf security fir the United-\njean. In the fiscal your IW7-4 statistics\npriming with our prior of - reports, the\nimplement their work The free mail prin-\nuse di postal services und that\ntimest, in fixing the postal fate\nnon of small - of many\nwill and use to above compartacor\nwork of properting sixt verifying move shan\nlego governmental and Libe pro-\nmeant Sega partal and eni\ninformation without be given to\norders; will others my that industry in unreadable\nof revenue and rependitions by claims\nextra in time and sob\nobmounly insu supenditions the and\nde include of actual nost as well as to the\nto develop and increase imployment mut\nmad und special and and the remits\nwashing for eustodial and maintenance aquip-\nthem sn visa Department with your bse bmo\nentias for quatima located in\ntransportation VOT required tu - -\npatrie withing It MRIMA to the that these\nhave mests of bringing products directly\nthat may TOI politived in the Anoual\nbuildings and used by other Oct-\nto the stiention of prospective purchase et\nReport of the Gevmi for 1909,\nBy the x SOM aroup\nmails and provide the serstion. Director\nand factors have DATED been\nThis - analyzed and number format with\nof reports the Print DAIS\nemail apenicier, are Important and well-\nd,legislative active, though -\nsignature Integradad = postal raini\nnominal be tühd-class paugh\nnon entry ested the getted mail or\n- impentive. This adjustment Invoice\nIN has here sale that from for\nTates.\ncertains motifications if the Bughes Commis-\nknown entriss finalished by the\nBMN what LA 1979 Important, IL\nment.\nreventes and expenditure took maus the\nof mad or postal services approximate\nSurmanting them . the\nsing in 1911-18, tut the -\nInvoice, at - time tn the modern-day his-\nand via discussed by the payment\n- milla and expesititures attributable\nActual intangible motribution\nthreen into cany almos\ntas atiminesed the vet of propering the\ntary have as many certices E such tream-\nadjecting every employee an the Formal\nthat the Printal by The service\nthereafter with the manguration of\nrepuires inmilied and the mat un account,\nspecial delivery A\nhandling, end distributing Lives each year.\ndays volume town experted of and required\nAt this Name the Postal SAM\napacial delivery for of to emita the A luture la\nhas crede to the unity If the Nation Umugh\npartel post entre as January\nIn muster that for the guide\nb be furnished by the Puntal Distribut\naccountand TM more change in the\nfind for vistate Another statute fixes a the\nthe diseminating of information and\nThe matter then means in\nthe NAME - - and the\nRegistration of without resignstration of =\ncycle, It is confranted by pm, whe at this\nof resits to - paid the apecial delivery\neige, and the more obvices and \" su being\nuned nel. when the Joint Commission\nprocessional be emplined. conde settime, ent\nany ellem, rebanding of mall for\ntime ungredictable, changes in Ue tellmit\nAmeriger, The cost of the MATER work m-\nin the pripres and growth of business and\nGogna en Postal Bentite upred that the\nmontent, and en that Instructions might\nwith = pollal facturities for\nlew - and plant\ngreat shifts in great\n- this transaction la-tant at all som-\nindustry through Ita fatilities\nDepartment the work of obtaining\nmobilization of millitary form. and\nwith the which\nfor um information 424 enteguarding at con-\nnote adegosts information with respect to\nmore than 700 intillery units, tree mail pent-\nan attent by personal made DIF:\nlago for mar armed form, selling and as-\nemilible to meet postal operating -\nand infusties at medical -\nthe cont di carrying and handling the no\nRAID claims In the Postal Dulletin effective\nvonversion of business to - unmairs, ALL\nto its patruna.\neral class of dell matter et performing\ncounting the motor use the stamps\nprevious page, principles, and terters which\nIf special delivery massage is to treate Our\nMinh 15, teur Il bas bmo found positiva\nlane been undut in charting and\ndervices performed in - public\nthe special services, A comprehens pain,\nmied at willing and accounting\n- will viganditures altributable 5 is is\nnot enty to surtail the di the\nfor Defenst-War Bintap bonds\nnot be mileret with milks\nentracag and firma, the\nthe future of the at the\n- bear the cost of (1) printing Ue spe-\nday to the MADE we\nat milling and -\nnot delivery clamp: (2) sending Que stamp\ndimigied of public collt.\ngathering the data WIA then prepand while\ntrue Alao to redote the average creater of\nhave become value-\nthe of expert -\nenvelog = 1.517.000,000 Bir-\nIm and meaningless\nin the pais office for male; (3) charging the\nIt sema that portal craits have not - pel\npips publicabed eich month trem = in 2.\nplayed by the Jains Comminion and portal\nIngs valued et ut dos-\nHarry to the windue clark for (4)\nbrea measured attentifically, In the Test 3)\nThe sont of printing Bulletin dar-\nTo this, If see address timel -\nexperts trom the departmental and field -\nens of other services substantially to\nevented Name in selling the stemp and -\nyests grest strustes Date been case in the\ntres, but que to Tack of funda the with TM\nmg Be manths of April und May TOID and\nthe postal during the part year.\nthe May 1945, at the 172 largest\nmusting for - purchase (3) clarges time\nof time and nost Mod lin\nTMI averaged $4,500, whenes during April\nFor the past yest declina effort bas been\nwhich have accounted for 71 persons\nof tertal portal revenues Total -\nto the handling of the stamp in\nthe methods of come accounting, BUS lhe\nand May 1042 mata have bein record la\nPostal Berrice has not been equipped to krep\nThe MAIL finally plignt during\nmade to obtails reiminsement this start\nat - 5.83 percent. = personal THE\nthe - Une technicary forging rec-\nThis saving bas brea tuide not-\nagracies of the Determent for this were\nenda, and reports conserning Che disposition\n128 cost studies property in the light of\nthe peint true Deptarmer n to 20,\nwithoushing the la per PP prote\nWhile the Department tas lad mure -\nzum and a. decrease of or was -\nimprovementa and to This\n1010, at - delignated pos offices of M\ntng nost et CERE de product. By this curtail-\nemt in the number of secks of permit post\nThe stemp and its proceeds. and the attach-\nclasse and in representative lines and M.\nin childring than berefoties,\ntreasure - of the cost of the yearly\ntedions, exacting and paintaling WORK M DIA\nevent and refisction of lão Printal Bulletts,\ndisputched, compared with 1941.\nthe post office seiling the stamp: (0) prof»\nto be without the expenditure\nminsis ta et the Ballway Mxil\nMA only doe the field emitione to te as will\nget ristutes restrictions and directings pre-\nIn the same period the number of\nBevia. The the obtained wes\nsufermed, BACK the will be a saving at EYES\nrece reimburament tre many of these ENTY-\nbueding of the epecial delivery Jes-\nof Insufficient funds to\nlies On the etuis, the Pratal Brablishment\nmoney was issued et\nour word work may to for worm than not\napplied la the cublet revenues and expenti-\nbe - the place of collection through the\n1,160.000 each year.\nla being only & mine fractim of\npercent; the number of -\nturn fry the fund par 1923, and\npar -Gon of disputch, shrough the post\ndoing the work st all, because tragnuotary\nthe Im complex mentip for the\nweld increased 1.004.600, or 194 permint the\nthe submitted to the\nthe expense incurred far time services, The\n- or resipt or the place of Delivery: (7)\nand indeffacia figures which may result this\npurpose of demonstrating the postition\nperformation et their entries like has a\nnumber of paid domentic registered articles\nanalysis and study may to -\nCongress - December 2, 1824, as fair\ner benefits and shat may be bid if\ntime attributions to the boodling of\ndistinct buring upon the relationship of\nIncreand 1.450,434, ur persont -\nand reasonably securata appreximation of\n- and recording 11. on surma, records.\nqualifie The the driving of factually Insur-\nand when is evaliable to\nthe relative revenues and expenditures ap-\nand expedition of the Postal Es-\nnumber of from registered articles\nserutinize emaily and\nreprocte at Lbe post office of delivery, and\nFRES While the emple drawn\nforms trom the deseport et effictancy and\ntablishment and upra the revenues defind\nIncreased or 61.50 persont The -\nattributable share of the cost of the\nfor DORT study may te appropriate, the Taste\nplicable, so the anveral class of mail and\ntrue the various times of mail and special\nber of special delivery articles assisted P\nof setentific and professional tal\nspecial services.\"\nemong of sperations The Postal But-\ninspection of the post office and tamil-\nlistiment must emitantly or to simplify\nservices and the esta and expenditions at-\ncreased 577.633, persont soa MBP\nhanding the signature delivery and\nsee to #: that the sample to adequately son-\nAs a prosequence, the Omper pound the\nand Improve Lta and e\ntributable thereto\nber of pruches of must exter the parent\ntrelled. tested. analysist, end checked may\nans of Personary 20, 1923, authorizing the -\n- above of the poet of\npost received and - -\nthat pain efficiency and intelligent\nThe of the special delivery system. Last\nessuils in wholly unjustified and\ntitulaire of the cont under\n009, et 14 pertent. This,\nFear CUICE Usab special deliveries\ndeterminativos being drawn from the data.\nwhich authority the statistical remita have\nany may result. Serings our to these efforta\nDuring the last mar the Fraval\nthe sharp deciine t= pursi stiewt\nbe important end is dollar\nnot this also utilized to sell Dovernment\n- milder and the volume is increasing,\nNotwithstanding the inatequery et hunds for\nbwn regorted each final you beginning with\nin these see offices. them - an -\nAs comination of the apation\nanalytical work, the Department has cuada\n1925,\namount\nof kinds, 25-cent Thrift stamps\nor - than 4,800,000 the 124\nBirthwer three MYDEL in terms at per-\nand as The stamps. Wille the volume and\n- - anye to reserved the mms consituaton,\nevery effort to be as as possible en\nIt to impossible for the Post Office Depart+\ntransactions in the -\nminissas fee of a mmis dixed by stande\nthe work of assertaining CORTA. believe,\nmest and the Owneral Accounting odu 40\nemitage of total postal expenditures, 5 tax-\namount if Date later time they\nThe expenditions at these 173 -\nbewerer, that the Postal has\nmaintain records of neb Individual item of\nto be commentate with the cost\nenterity in the Formal\nwin, in - most comparable period of this\nfor the month of Mar 1345 resided\nEstablishment - sendined to a DATION\n- grally manded,\nNIC the extra. work Involved in incney-order\nsuffered and will now suffer EFFED more De-\nrevenue and expenditure econting to every\nand for the - ne MAF\ncause of its contrated tack of familities to\nattagle cleas of mail and each apecial service\nor total answeat postal stipending of mine\nHandling of 3 money order to-\n1942 the expenditures of the - -\nestablish, maintate. and improve its time\nby eun partinder tata. Threefore, the\nthan approximately TO of\natte Government\nsubstantially more postal work than\nen\nincrease\nof\nand post studies end analyses\nbreak-up of the Inventions from the\n- expended in paid our to the atti-\nmanage. In the ot\nform at personnel - the neht IS 20 cents of\n- under, - than 15 separate entries\nExpenditions for management personal.\"\ngeneral socros and the andised expenditions\nperme.\neach dollar in paid out for transportation e\nsubstantially. Busines at During May 1943 - - -\nthe\nanaller\n-\n-\n- be made by Une imming clerk. Mark\nwith departmental officiate and em-\nDon the various appropriations must depend\nPvr-\nthe basilla. By transm of statutory Units-\n- office equipment ESTABLE - utilized.\nplayees and the ingentive service, amount to\nto the main upon apportionments based\n-\nLast Rate your ture than money adm\nbut of each dollar et postal expendi-\nupon - representative and as relistrie data\nHons, requirements, end directions made\n-\n!\nno\n6.18 to the peresos 28,000 are May 1941. soil case\nand\ntaxes, Instaded is that amount are the\nas This, cost Lise\nIssued\nAPPRT the years. permissions carge have ben\npaid.\nI\nattive\nREportate soustming and anniting transar-\nfunds made available the all the departmental\nwought to accomplish by meass ut the pro-\nplaced upon the Postal in\n- the classes of expenditures These\nperson a the 10.000 During third-date Mar MINE manth Ge with\ntime. volume - increwing,\ngeneral administrative eramination of ac-\nreduce approved in 1024, 00 the touts of\nnounta and repirts of operations\nstatution and testa to = limited number of\ncharges make it Importable to fatiy\nthe\na\nany\norders\npaid\nat\nto may be NAIS that\nMP\nor additionally on the hall\nport\noffice\n- Proficures diss - approximate the CONTR and ex-\nBA well - the aminita BLADE atsilable Inf\npost at selected. polors during for\n784,280,000\nand\n7-day persode = the year, on the\nattributable\nto to be mining with the\nthereto,\nThe\nbut\ndepartmental street and analysis et cont\npermit\nFale of postige CE -\nexectainment data. These cusion amount to\ntherey that the sample thus process world\nof the Portal Service an tu remain available\nTotal\nThe\nunit\nrelationships\nand\nN-\nto the and If the paral registration\net\nparal\nrevenue.\nvolume.\nend\n24 To by the Government to carry our\n4M.70\nand\nan\nbetween\nclaim\nof\nprograms. Thus the fixid of\nlunght\nexist.\n10062\nCONGRESSIONAL RECORD-HOUSE\nNOVEMBER\n1943\nCONGRESSIONAL RECORD-HOUSE\n10063\nBe e - of the posited Investions for\nTo: On - all the pm any our\nbe and emics expertise compertments whing\nM Mad mush tented provide for the suggest\nwheress In February I received M centa\nMr. MILLS Mr. Chairman, in up-\nthe fiscal year.\nest and pleasing matio - be -\nsubmittedy allminated = failly DAC\nof will Guarmant in Unit presidente pass,\nper pound for bullerfat, that that was\nThe original 1034 cost signaturent plan\npound, improved, end made non smitte\nThe of prur bescrable committee\nby the of expensives whis\n- jel this La DDB place etuire E very large\nprosching the subject of the individual\nthe highest price received during the\nhas been realined but € for - possibie a\nloss of mati = envire\nincome tax, expectally in the light of the\n- soculd live\nnot,mly requires adequate dependable, and\nextegricy R The\nWe - particularly placed to unter that\npast 1 munths and that for October, 34\nprésent turden. two factors stout out in\ntalls have - from year to your\nto ben streat of changes to classification.\ncomprehensible not tipires. but If demands\nmight the model d Mrs. employees\nthe principle of - proposal,\ncents per pound was paid. I believe any\nthe minds of your committee members -\nportal and SETION The BKpe of\nnão . proper finant of the effers of pm\nbut is to very doubine that DI missing\nbut - you - make - recommendations,\nemaile person will agree that this rell-\nhaving bern imperfertly understood in\ncost - to Immediated to\nnim upm the - et portal a\nany put artig to The for\nvoid are NOT mainly clair to tax. many of\nback as applied to butter and put inte\nmon tax discumions. One factor was\nemhase Liber compartion for - -\nwell - an appropriate of the large\nand et de Para THE IS. -\neuror - beynnd the jurisdiction of our\neffect last June has resulted in a virtual\nthe weight of the unforgiven tax payable\nClass and divisions of classes and sites first\nof public policy and public\npmt upen the extitional of\n- Purthermore WW recognize that\ncelling on this product of the farmer-\nin 1944 and 1945, and the other, the\nstore the - of weight, vehicle.\nwillare,\noperations, high degree of 12 all - ADE\n- all postal millers not invoice\nyes, to such an extent that production\nweight of direct taxation BD these with\nand avenge bank n° mail by claims, - well\nThere has lang been at Matrine policy of\nwe - LIMI a the Committee on the\nAsi - and Post Roads. We certainly time\ndecrease became NO siarming that our\nfixed or decreasing incomes.\nLa the number of in the appeal\nenclounging by low partal relas the classi-\nn - in the light of als the\nservices. The purpose of the - samitain-\nnatten of DFWF and information end the M+\nand factors, which I brie\n- - to violate this There-\nsame Government bas decided that the\nIn connection with the unfargiven\nment la se exats - - punsibie\nune 10 which this polity has provid -\nto status as truety as postible, - the\nles 11 dedited a eliminate the proposed\ndatrymen new need a subsidy in order\nburden, there can be DD purpose in revie-\nto each - of mm and each apental service\nthis must nat be minumbed, Must cantal\nthe fire reformendations of ANY fing\n- sum the tax - and sequire that you\nthat they can May in business,\ning the recent Miter controvery, Der-\nthe TOTALLOR earned by 1/5, and - statge -\nshould be gived to any change\nin the early part of this The\nand où permit this matter to the dormant.\nJust yesterday it was called to my 41-\ntain conclusions from that controversy\nclass se all and earb epecial service with the\nto rates which would sectorily tampe the\nfact Chart the problems matroeting\nCam of our original Jetter to you dated\ntention that the production of butter in\nare, homever, underiable. Whether or\nproper state of the\neffection of useful information 62 which\n- of great diffinity 4d -\nJuli 18. of pain reply of 2017 7. sud of\nthe State of Minnesota for the next 12\nnot taxpayers should net aside reserves\nNo stimpt in made = eith letan-\nworks tent in and india-\nplanty should - - OF a to a\ndela une APR bene entil to the Bondrable\nmonths is all probability will X 25 per-\nfor taxes, - recognized that they did\ngible ticken as (he relative provity of -\ntry. The putille has Inco affinded lev postal\nMosts. propost of the Committee BY Win and\nMA cisteman of the -\nrent under the production in the same\nnot. Our choice was not simple whether\niss, lie plative and somemic no-\nrules for the grainal bendit of the\nthe - office and Post Bonds, terring to bire\nRate for the part 12 months. Bg here\nor not taxpayers would pay as they went\nMM et the mails of the entered and\nNation and the extent to which the nie\nIrrespective of the sitimate of The\nverb - un tils nommitive dama\nI have this morning this new wrinkle, A\nor pay a year behind, but me were forned\nMail évens of in hardling. fur\nfor the classes of mMD and the special postal\nCongree - the motion program In PAY\nBratiminas mails are wain-\nservices sea special facilities and - regia-\ncommittee, = on the reformation I\npaile. By at the Committee on Was end\n4-cent-per-pound tutality for the pro-\nto Institute par se you ED or face large-\nis handling 1549 are DM amordid\ntry. money order, and the the have consrib-\nhave made, 10 will be my polity, partical\nMIIM\nduction of the put menth of butterfat\nscale default in the year of denlining (n-\nmis of the security and third classes.\nused to the growth and nomfort, the culture\nthat the Congres authorizes to Chémary\nIL 1 Chairmen.\nfrom the herd of come back to that great\nonce. We telt that, while current pu-\n- true pourtas in transportation their-\nson influence of the Nation and the -\nexpenditure to trephement and a\nSUBSIDY TO DAIRY FARMERS\nBrate.\nment was desirable, individuals should\nlag if resipt and of with pouches.\ntratte processes, must not be overlocked,\nwork of port ascertainment end - insign\nFirst. Id us like Into account the fact\nmake unme payment on too of their 1944\nThey an - affinded the cod expeditions\nIf rates for mail and postal services wire\nto the end that them should in\nM: KNUTSON I rield 5 minutes to\nthat 2,000,mn farmers in the United\nand 1945 tax to offset. at least partially,\nhandling to both of mailing and de-\nfixed Immediately on a comments\nstudies et portal case for vau -\nlie conteman from Minnesota (Mr. 11.\nservices in order that the nos deprodable\nStates will probably receive similer\nthis (orgivement Reventing that in\ntray and to transportation. Perishable and\nwith the existing elimate of cast, not only\nCos\nchecks and furms and will probably\nvirially all 26ML Main payment would\nfragile mile an afforded\nwould such rator la on . furtu-\ndata cirtainable be available fun - by the\nMr. II. CARL ANDERSEN. Mr.\nto handling and transportation, Openial -\nhave to sign these the une Enrose that\nhave EM be una of current income, N/A set\nNET fauity bords, Init they would dialaste\nPort Other Department and by Criptes\nIS will be my paint a\nChuirmat. in our consideration today of\nis BE name of en thought could be\nThery pareria and are any a\nthe service and provide such entirely pew\n1 am assed to sign in connection with\npatition in transit www. ADD above\ntigether in me place in the Postal Erisle\nanother tax bill B seems to me citally\nanaditions that new out computations would\nreceivies this particular subsidy. Imas-\nen addition to current taxes. Thus the\nthat accorded regular cable of the end\nbe required to whether the DEF\ntiskent all work tavident to the proparty\nImportant that while and u we were\nline, If you can. 2,000,950 of these sets of\nCungress adopted 0.0 much forgiveness as\nand The com of these\nrales, under the new conditions, ves up-\nand fixing of rates fur mail matter and power\nfurther LAWAS upon the penple of this\ndocuments which I bold in my hand and\n15 percent in were instances, tecalse\nand prévemia and the value of them 10\nprotesting have the costs end apenditure\nservices, and to 10 organise this work lbst\nThat the question of elmost por-\nto the service rendred.\nevaluations based upon the tale -\npur II months et the year, 24,000,000\nExit: shows many textayers did not have\nmallers end all in was\ndide in the various branches\nthe espacity fur payme more carry-over\ncontinually In cost Rdd -\nsels in at year's time.\nment figure.\nPer example, she cost mortainment 16-\nof the Government should receive the\nor desibling up. and that larger deubling\na be derical that the present creat\neruits will receive adequate\nIs would be Interesting if sime person\nport for the times) your 1941 Indicates there\nend adentific in the FIC\ntest study.\nup would invulve defaulta\nIslomect belhode and techniques and predi-\nworld cumpute the tennage of paper TO-\n-- an extra of apportimed expreditions\ncatad upon the extations of reservable -\nexing of rates and clamidication of mail main\nThere emes to my mind In this con-\nThe secund problem comés in connec-\none revenues on matter et about\nquired to par out these particular forms,\nformity in portal activity throughest the\nen example of emat I mean when\ntime with fixed inromes. There are\nter and services\n$24,300,000, haved - of 824,000,500\n31 would also to highly interesting If\nyour, But - know that the unal date po-\nBy the setten et your la per\nstate that economy in government and\nmany individuals who are actually mak-\nand apportiseed expenditures of $108,000,000.\nseb (mathematicsty inclined)\nsities In postal this is now B thing nf the\nJe dom net commanity follow that by lacreas-\npostng 6 somitific study of tates N bi di-\ntransion en hand in hand. In Loday's\nlos . substantial contribution to the WAT\nveloped publicity. I am in as\nperson sould compute the amount of\nmail I have received a sight draft for\nwhole incime is fised fer any of a\npart. The and changes tn was natireal\nIng rates four und A half time\nexcurity, shifts in population, of\nwork I have started to the Departments -\nclerical work DECEMBER to give to spill\nthat the total expenditure Agure will be met,\ndays feed payment, constituting e por\nvariaty of reasona. In the face of rising\n1 will entime - that propos . that 2)\nand 2,000,000 other farmen 4 centi per\nbusiness AR NY have knows is 50\nduon jumidy of 4 renta per pound en\nprices their people are put at A serious\nbacause LE world be puse consecture to 10-\nmar are protucing and ww con-\nM jotan and cooperativo ente el -\npound or en equivalent subsidy on but-\nulive and tegtalative transfer of os -\nbulierfac from my small herd et Hol-\ndisadventage. There are many expendi-\nautor that the volume of mature\n10 produce dating the earlier and\ntertat no dairy products. It would be\nthat was in the mails to 1941 would the the\ntures that they must make no matter\nafter 1E4 wurline such . dislomation of postal\nway Ento the mails lb 1948 ad these invoiced\nemt the public may De servi nai or\ndeln D/WS in Minnesota,\nvery interesting to receive from the Post\nstat the sevel of prices or of incomes;\noperations that determations of were ed\nPostal Service will in - - tow\n1 case in the letter accompanying the\nmin. The probable after would be to drive\nOffice Department ED estimate of the\nthese are expenses associated with the\nthe missing haves will lead to Institually the\nservice et its kind in the world\nchark that il is stated by a very good\nmulter out of the mais. 11 by\nent to that Department tu transport\nexcred\nRespectfully submitted.\nfriend ni mine. Mr. Prank Brands a.\nplace in which this zive; expenses MID-\nno follows That the elimination of\nPLANK e WASH\nthese documents through the mails, post-\nclated with the living standards to which\nThe Posted coke furment\nmail world work . envine if\nprint\nHubs in our A. A. A. work in Linorin\nSEP line as they are\nthey have hroume accustomed: expenses\nto proformed manages in the transpertation of\n$108,000.00 5 expenditures The Bees\nsa follows: \"Enclosed to your\nHow much simpler, Mr. Chairman.\nassociated with fixed obligations which\nthe malle as A direct result of the - Evico\nmight be ellmicated in . statistical table,\ndairy subsidy check for the butterist\nbettere Der was DAW cime In -\nmus the Portal Retationshment's financial\nCommo cal Will END MAIN\na would have been, and how much easier\nthey have contracted. such as mortgages\nadd thring the month al Ociobet.\"\nThe great growth in transportation el the\nstatements might Uses very well indicate that\nBune or -\non the Treasury of the United States 15\nof insurance policies,\nWashington, INC\n1 fixed up here to your ries the chick\nmails by air. the accuratul experiments WILD\nthe Dad - apportuned to the\nworld have been If our Clovernment,\nin the particular Instance and you will\nWe pm sume attention to the problem\nalr-mail pick-up service (wherea mall is\nother classics remaining in the mails, leading\nHm. PRANS c. WALKE.\nin its great wisdom, had permitted but-\nof distinguishing between chose with\nyvicked tip and discharged by places traveling\nso large amounts - the statistical state-\nPortmastic for one\ntale lost this requires the use of 014\"\nlerfat and dairy products to go to the\nfixed and Unite with rising incomes.\n4d bigh 5 operative meany adapted\n- of the of apportioned expends-\nDepartment,\nHV\" paper, wheress il would am\npoint where the pais of production de-\nThere estaud to be too great complica-\nto military - and the advanoment in Da\nNums GREE - well - retuding the\nDeta Mx. WALSIA: In activities re\n(A) en ordinary stack black would do\ncrees that thef should En and that point,\nthoms in attempting to place a. tax directly\ntechnique of transportation by Screed glid-\nsetual postal by #24,000,000\nexipt of your of July 7 with\nlhe norpose and tare two-thirds of the\nin my upinion, should be approximately\nen have the shape of things to -\non the Increases in individual Incomes.\nThe postal established by the Cas-\nto partsi rates, which - a mill tu - a\namount of paper UMA\nAfter the war, the Nation will have vest\nstitution - under the tires of Coupres\ntar of June 23. the Cumpitte an we of\n10 centa per pound higher for butterfat\nThere would be difficulties in fixing . taxe\n1 also present for yast inspection two\nmumbers of highly trained and experienced\nMextu destres to inform you that - yring\nthan o is at present.\nfarm) which this good friend of mine,\nperiod income: there would be numerous\nprints. and M well -\nmust of memority operate - & going concern.\nIf no matter were in the mails,\nVM presented to the desider by the with\nIn that manner. Mr. Chairman, is\nhardships where the base period was un-\n- supply or large and powernd\nis world not thereby eliminate # proportion-\nmail this morning. Its cord -\nteling is file caparity as head of the\nwould alive the farmer to receive full\nusually low; hardships where Ltre m-\ntransport planes. The Pretaj\nA. C. o, in my home county, has sent on\nmust he to a postion, un behalf of the -\nAte of the departmental the\naughty discissed.\npayment in the open market from the\ncrease was associated with a move to a\ninspection form. the the cerriers, the\nThe committee the supilate\nDi los signature. I from this\nactual ennsumer of bis product and is\nhigh-cont-of-living community- Above\nUt, to lake of the\nInterers the Railway Mail elerica, the rund\nand importante of the may - \" MO\nthe similar blanks will a to every\nwould net be nermary for the Treasury\nall there might be serious\nportualting far betwer and more\npostal affice which will to arallable almost\nsuriers rent. Hight, and net besow is is\nappreciates the tast that the quality of of\nformer making application for this pro-\nof the United States to eventually pay $3\nwhere the tax on increases would inter-\nnot possible to eliminate That persim of the\nbringing rates of protage in the - line\nRevis subsidy and these forms, as you\nad the war's KING. Mail handling\nUnled-class mail eston BIRTH down in\nat the 1017 least in interest and principle\nfere with incentive,\nequipment and facilities for the distribution\npersonnel, the equipment the buildings, the\nwas the mas of handling such BAIL - -\nsui nole, messure 8% \"XISS\".\nANO dispiration of mail. the location of termi-\nthat care, and the tracks of the Postal b-\nMr. Chairman, in the Brit place our\nfor every dillar I receive so & dairy\nMany of the same difficulties arge in\ntablishment that are handing the work load\nthe acquires of maderation and -\nfarmer in this line of producer's subsidy,\nwith a deduction for frand to-\nDAIA. and máil-bandling operating mithods\nfor the pust 50 ut as your pull\nGovernment, in the prefound has\nmust to planned ao that these provides\nof matter. We have and post\nThe CHAIRMAN, The time uf the\ncomes against 6 general increase to taxes.\nofficer en parts of post offers designed,\nrealine that LI is not . good grade\nclamped. virtual ceiling no butterfal\naccipped, and maintained le handle second-\n- permit the deficite to executive - -\nthrough its rell-back subsidy to con-\ngentiverso bas expired.\nIt would run Into curfillet with withhold-\navailable to the Nation may be Intelligently\nEntagrated in the National Postal Service,\nMr. DODORTON I staid to the\nline and would add an insuperable prob-\nThere will be produced changes as revolu-\nclass mail exclusively. We have be rativery\n- remadial actions. is agina el part\ntimera, placed inte effect last June. To\ndispute the statements of these who\ntieman from ATRAILMS [Mr. Missi such\ntem of verifying returns.\nlicense to the transportation and handling\nmad care or maire validies exclusively de-\ncontinue, nothing - EVIT Sem -\nvial to entond-claie mail. We have nn post-\nWe find that is 1983. the Production of OF \"\ntime as N may require.\nshould Exe to talk to you A little stille\ntisimed that particular ml)-back sided\nnt the mais es tame with the This\nUnited States WM pre the suchents - fat\n(By unanimous consent. Mr. MILLS\nabout the individual income us pro-\nla not . proplecy, hus If is lbs\noffice clerks or carriers, village delivery ONT-\nthe farmer I have here my price state-\nrim, stat-ricate carriers, or mail -\nthe PATT thing that 202 - -\nments for butterfat from my local\nwas granted permission to revise and\npossis sontained in the committen MII.\nconsidered judgement of insury thoughthi\nsera recruited, trained, and employed to\n5 have door, - - tar - mure - CT\nextend bis remarks.)\nAs you know, 00m of the main features il\nm/o of - décimical tratting and trad-\nbuida nothing but matter.\nla the THE uncomfortable pattint of -\nmiade in that effection New. with -\ncreamery at Tyler which show that\n- experience.\nThe Postal Bystem is not composed of mail\nRegraded Unclassified\nCONGRESSIONAL RECORD-HOUSE\nNOVEMBER\n1943\nCONGRESSIONAL RECORD-HOUSE\n10065\n10064\nhow many children bad to be supported.\ntions are multiplied by 68, the I\nstatus tall changed during the year. to\nthat . provision should be Interted to\n000.000 la fer was purjures. The IN, of\nthe elimination of the Victory tax and its\nNow that we have under the Current\ncome very close to the correct antrol\ngrorale exemptions and credits over the\nthe committee bill so sllow a special de-\ncourse, the largest war cigene if all\nintegration with the regular income tax\nby providing for a so-called minimum\nTax Payment Act. a withholding system\nfigures. Exemptions for withholdise\nyear. Hereafter July 1 will be tised to\nduction of 8800 to every Mind taxpayer\ntimes. A compartaries with the we 15-\nwhich collecte currently the full basic\nhigher than those for the Sale return in\ndetermine the family status of all tax-\nfor purposes of computing his taxable\npenditures of other emuntries give a\ntax. To explain this integration prop-\ntax from all wage and salary earnets,\norder to allow for deductions. Two mis.\npayers for the entire taxable year. even\nnet Income. In many CASHI, this allow-\nbetter idea et it. It a entimated that the\nany, perhaps \" would be well to trare\nbriefly the history of the Victory tas and\nand the method of quarterip payments\nof exemptions and credita for dependents\nles perposes of the declaration of eit)-\nante would relieve bilind persons of any\nwar expenditures of Great Britain to\nsur présent withholding system.\nfor others, IS is understary to retain the\nmaind TAR, and there will be no prota-\ntax whatsoever, and is other IL\nare established-coe for minimum las\n1944 will be $23,000,000,000, and that of\nThe Virtory tax when it was eriginally\neumplicated Victory las, and it semel\nand una for income use, out the May vas\nalli for provition.\nwould materially reduce the tax. The\nCanada $5.500.000,000. However, the\nhighly destrable tn divise a simpler\nare Integrated so the withholding Name\nIn order TO achieve the simplification\ncommittes adopied for the definition of\nAmerican taxpaquera will DAT une year\nadopied in the Revenue Act of 1042, had\nmethod of reaching those taxpayers be-\na billnd person the language and by the\ntwo definite advantages: In the first\nin such 6. manner that they are Indistin-\nel the short-torm return, su was peces-\nmore than the total WAT expenditures\nplace # afforded an opportunity to Intro-\nlow the Income-tax exemptions. In ed-\nguishable, Employers who wish to -\naway to require married persons filing\nSocial Security Bord for the purpose of\nof bolb Britain and Canada; in NO, the\nfeel, the minimum tax replaces the Vic-\nseparate returns, each to take a. single\nnarrying out title x of the Bocial Se-\nduce min the income tax sextem et Start\nthe optional method of computing the\nmost conservative estimate is that they\n. small manure of current tax payment\ntory tax in the lowest income brackets,\ngerson's exemption. The effect et this\ncurity Art. M ammári, relating to\ntax for withholding purposes may be m.\nwill pay over $40,000,000,000 in lans, or\nand provision has been made for family\nformed by Ute Treatury Department of\nprovintest is to reduce the total married\narants to Etates fur aid to the blied.\nonr-half of mur total var DOM. for the\nthe all taxparing At the time the with-\nstatute by modifying the previously und\nexemption for the regular Income tax\nThe Committee entabilibed July I of the\n2017.\nbetting of the Victory tax was provided\nthe points where the Incume tax first,\n6024 exemption for all. to: $100 for mar-\nfrom 11.200 to $1,000, If the option of\ntamable year as the date for determining\nstarts to apply. an that they will not need\nNow as to live second proposition, the\nfor st was hoged that as n. result of ex-\nrepuirate returns is elsesen; on the other\nthe status et the teansfer for the enlire\nperience under this tax, withholding\nried persens, 8500 for single persons, and\nto compute both taxes.\nInflationary problem. A mudy of\ncould DO extraded to the requisr Income\n. credit for dependenta equal to $190\nAs there Is virtually DD change in in-\nBand the minimum tax exemption for\nyear for purposes of this apecial de-\nthe many proposals brought here under\ntax ni Antne achiequent date. Another\neach. The committee bill provides that\ncome-tax barden under the\n§ jotel return would be $700, and for\nduction.\nthe euise and in the name of préventing\naparate returns $1,000, en Intrease of\nUnder the circumstances which (sont\nfor adoption of the Victory tax\nthe total (perima tax shall not be less\nbill, It vas not Decessary to depart tree\nInflation will show that many of or\nthe present law withholding rates of =\npara in the total exemption under the\nthe Committee, some of which hare been\nthan 3 parent of the net income to ex-\neconomists are \"straining at a mat and\npar to resch the thermes of . large nam-\ncese of their exemptions and credits.\narparate returns option. The effect of\noutlined, the Committee proposals to TO-\nwww.iltwing a esmel\". I would not mini-\nber of clines who were below the in-\npersent for the regular income the and\nUnder the improved Victory tax, the\nthis provision will be. in general, to n-\ngard to individual invottes should be ac-\nmilse the danger of Inflation or resurse\ntax exemptions. but who neverthe-\n2 percent for those unly ta Vic-\nIma had - ability to DAY income taxes,\nrates applied to the gross income in ex-\nduch but not eliminate. the advantage\nrepted by the Rouse although all the\nwe do everything we to close\ntory tax Under the commities bill the\nplant by persona in the higher bracketa\nproposals may not meet with the ap-\ncom of 3634 were: 3 percent in the case\nthe informary DD. but the answer cer-\nsance to the our of & married person\n26-percent rate will be applied when\nof a married person. and 1.75 percent in\nthrough filing separate returns M ais-\nproval of any Member.\ntalely does not lie in planting on our\nwith from dependents. the insome sould\nthe Individual is subject ta the income\ntimmished from Joins returns. In the\nMr. DOCOMTON. I givid to the seo-\nthe case of a single person, reduced by\npeople an edditional tax toad of $10,500,-\nreach nearly $3.000 before It was subject\ntax, while the 3-pereint rate will be 10-\nlawer INFORMA us gruups this provision\ntleman me Georgia (Mr. Code) DE\n0,1 percent for each dependent.\n00/000, a load that will be burdensome\nto regular Mederal Locome tax The Vic-\npilid In the case of the individuals -\nwill not always operate-to the disadvan-\nminutes.\nand esuse suffering when all the time\ntory tax was levied od income be-\nFor those who under present law were\nfact only to the minimum tax The with\ntage of Lbe taxpayer when filing separate\n(Mr. CAMP. by constimous possient,\nthat FORM la only a fraction of the erand\ntore any deductione, except\nsubject to the regular Income tax as well\nhelding table brackets have bein made\nBA the Victory tax. an increase of four\nreturns, because, M was pointed out\nwas granted perminion to revite and\ntotal of over $100 000,000,000 of escumu-\npenses. and applied aller the allowance\nconsiderably name than they were e\nabove. the total exemption for the mini-\nextend his remarks.)\nlated in the hands of individuals\net en examptino of 8024. regardiess of\npoints in the normal tax rate-bringing\nthe Current Tax Payment Act of 1945.\nnum tax would be greater with separate\nMr. CAMP. Mr. Chairman. I foit sure\nin the form of War Savings formula, cash\nfamily status Family status was given\nthat rate to 5 total of 10 pervent. la sub-\ntherety reducing in large treature the\nreturns than with 5 Joint return.\nthat the all the Committee on Wani and\nsurrender value of life insurance policies,\nrecognition nei for the 3 percent ETCM\nstilided for the Victory tax. In addi-\namount of under-withholding \"\nTm further modifications were made\nMeans has brought here representa en\nassiner demand depants, and\nVictory tax, but unly for the net Victury\ntien, the allowance of earned income\nwithholding arising out of the fart that\nwith respect to individual income taxes.\nmuch careful thought and hard work or\nkile currence. This representa $00.000,-\ntax after post-war credit\ncredit in repested, in order to avoid hav-\nwas the a given employee mij not tell\nHeretolore certain excise tames, their\nany revetue bill this House has consid-\n000,000 excess buying power. IT we can\nThe first withholding system was\ning to raise the permal tas rate still\nprocisely et the midpoint of the trades\nlevied directly on the consumer. have\nared in many years. Beginning na de-\nmaintain in this country the psychology\ntherety made extremely simple fur ean-\nfurther to prevent a net loss in revenue;\nwhere the tax figure contained in the\ntem allowed M deductions to computing\nliberations September 4 the committee\nthat will render our people free of the\nplayers. MA everyone eu given the more\nmoreiner, n was recognized that bust-\ntable was actually computed.\npet income. Bome of the more impor-\nhas quint 11 enria of tireless work. with\nfear of inflation therewill be no harmful\nexemptino for withholding and the base\nneo taxes result in placing a double bar-\nSeveral improvements have been made\ntant ones were the admissions tax, the\ndaily and many night sessions, explorins\ninflation, and I believe this paythology\nof the tax ww the wage received by the\nden upon unearned Income. constituting\nin the short-form (norme-tax return,\ntax en communications and the tax on\nall Delda of revenue While the bus\nean be best maintained by atetet\nemployee. At the name time few adjuse-\nsufficient discrimination in favur of\nthe optional return to be used by proses\ntransportation. Ax, under existing law.\ndoes not provide for any great Increase\neconomy to anvernmental expenditures,\nments were required at the and of the\nearned income.\nhaving green incomes of $3.000 and les,\nthe fartor determining whether a Pod-\nof patienal revenue, 10 does, to my opin-\nby effective price control and ratiuming.\nyear for over-withholding or under-with-\nVery slight adjustments were made in\ncomposed of wages, salaries, compania-\nend excise tax la deductible is the nan-\nton. provide all the increases necessary\nand by control of not to\nholding.\nsurtax rates in order to bring the total\nUson for personal services, in-\nmer in which n la levied. rather than the\nat this time, and all that our people can,\nburdenatene taches beyond the ability of\nWithholding of the Victory las worked\ntax at various income levels na close -\nterest. OF annuities. In the first piace, the\njustification of the deduction, is results\nunder present eircumatences, pay.\nmany HE our people to DAS. and not by\nto well that we were encouraged, last\npossible to the burden under present law.\nseparate computations of Victory tax\nla time discrimination seainst those\nWhen the grest expenditures for na-\nsubmidles which must be paid by LAX-\nmorios. to attempt to provide for the\nReductions of con point esch wore made\nsee eredit taken currently have been\npersons whose Federal excise taxes paid\ntional defense began # was by\npayers.\nwüchnicing of the full liability of the\nin the surtaz brackets from $6,000 10\neliminated. Becond. provision has bien\nare heavily weighted by pondeductible\nmany authorities that if our people could\nThis bill Mr. Chairman. I believe,\ntime surtain brackst for all taxpaym. A\n$12,000. while Increases of one, two. or\nmade for the number of dependents in\ntaxe, such as those on tobacco. liguor,\nDET as much se one-third of the com of\nrabes as much revenue or DO resenably\nmethod aning this was established to\nthree points NOT made la each bracket\nthe meme-tas table. Chereby eliminal-\nmorning goods, and ao furth. In addl-\nthis war as we went along, we would\nbe borne by our people at this time with-\nthe Current Tax Payment Act of 1943.\nabove $38,001. The Increases above\nthe the derfaction of the cream for de-\nNon, under existing law the same dollar\nreach n. gral that would be Ideal from\nDUE unduly disturbing nur monthy,\nwhich also provided for en atstement\n$38,000 were required because of the Itemi-\npendents en the Isce of the return: third\namount of deductible Pederal excise\nevery economic standpoint, bus the\nM far en individual income tax is\nof & pertion of 1342 or 1941 tum in or-\ntation on the post-war credit under the\nthe number of alternative lusdings for\ntas paid remilta in & tax savings which\nAmerican people are doing that and\nconcerned We are approaching, if in-\nder to make fully current\nVictory tax. as a result et which some\nTrumily esatus has been reduced in the\nWilles proportionately with the surtax\nmore. We are today paying searly one-\ndesd 98 has net already approxched,\nthrough withholding and quarterly pay-\ntaxpayers were made to pay a net Victory\nshort-form talde from three to two In\nbrocket to which the (axpayers' highest\nhalf of the Government's war expendi-\nthe point of diministed returns Pew of\nments.\ntax nearly as high as 5 percent, . rate\nremputing the figures shown in the tax\nelement of theome fails; for example, 810\ntures as we go, and the American ux-\nWhen the reflaements of the income\nthe repeat of which would not have been\nof dedociible Federal exclse taxis would\npayer is besring the bearies tax load\nour people insue of resitze that in Amer-\ntable contained to the bill. deductions of\nles today. under setting tax laws for\nlat sere this Introduced into the with-\ncompletely offset by an Increase of 4\nEperoent have been allowed hist as under\nmull in a tax savings of 19 percent, or\nof any in the world.\nIt vas euggested that taxes be to-\nthe years 1944 and 1945, no person, no\nsystem, the Vintery tax, simple\npoints LB the normal tax rate.\npresent law.\nBL.SO, to as individual in the first suries\nmatter how large his of her will\necough in liself, bocame an extra one in\nHaving done away, in the committee\nPer those usine the long-furm of ne-\nInclude, but would amount to 85 percent,\ntreated at lesse ten and one-half billion\nhave tab during there years. after the\nthe tax machinecy. It required a differ-\nbitt with the Victory taa and its flat\nturn. also, the separate computative of\nor $2.50, la an individual in the brankst\ndollars for the next fiscal year, and this\nent tax base from that und for the nor-\nexemption, le was emergency la retain\nVictors tax and credit taken currently\nfrom $100,000 to $150,000 of suriex DES\nsuggestion we said to be hand en two\npayment of Federal laxes as much as\nfor withholding purposes the exemptions\nhave bends eliminated. The income tas\npropositions: Pirst, the great need of the\n$24,000 net Income per year. A IDAD\nmai tax and surtax, and its special treat-\nIncome\nwith $100,000 of net income will have so\nment of family status in connection with\nof 81,243 for married persons, 9424 for\nbue subject \" normal tax and curtaxita\nThese considerations, plus the fact\nOnvernment for the additional money,\npay 676,001 Pederal taxes, leaving ham\nthe part-war credit made is impossible\nsingle person, and $312 rest for de-\nben made the name for practically all\nthat there was $140,000,000 et revenue\nand record, the inflationary problem.\n425,605.14. and this lax Increases from\nto include the Victory tax in the las\nprodents, which are all divisible by IS,\npersume-all those not receiving partially\nto he sained, influmed the commities\nLet 3 consider the first proposition a\n2t, 20, and 52, so that they may early be\ntax-exempt interest. The computation\nmoment. p. was estimated on August I\nthat figure of net income, vinsil when -\ntable shown en the shart-form income-\nIn Coding to tocludo the providen\ntax return Recently, B. separate MD vu\nwhich, in the future will disallow the\nby the executive branch that 1044 The\nreach the man with a net Incurre of\nadapted to various pay-roll periods.\nof earned income credit Hu bin alida\ndefuntion of Federal encise taxes puid,\neral expenditures, encluding debt reture-\n$700,000 we find that bis taxes constame\neriginated in the Ways and Menns Cam-\nThese no-called magic numbers were\ntested. We believe these to to -\nmiltee to eliminate those implications\nto offect at least in part, any dif-\ntant steps toward simplification of the\nthose which are business a\nment and trust-fund disbursements,\nall of his Incume, This burden of ass-\nwould total $104,000,000,000, BUT.000,-\ntion un individuals has Inwo Incressing\nraused by the Victory tax port-war\nencountered by employers in in-\nindividual income tax.\ncredit, which would in virtually all cues\nstituting the withholding system. The\nIt var trought to the attention of your\n000,000 of assime being was expenditures.\n40 rapidly that 002 people have hardly\nBy setting July 1 of the latable year\nexemptions have therefore been slightly\nas the determination date for the (amily\nSince that Name the War and Navy\nbeen able to adjust thair budgeta to It.\nbe taken currently, However, there still\nthat blind persona are, in\nremained complications even under this\nrevised in the committee bill to omform\nDepartments estimate that they will se-\nand I think that it is sua for Congress\nstatus of the taxpayer for the entire\nthest Instations, required to make certain\nfungiroved Victory tax, and there was die-\nthose clossly to the exemptions actually\nyear the committee will achieves o (a)-\nsollitional living expenditures as a result\nturn unused to the Treasury from 613,-\nto (4) them remain level for . while\nextisfaction with the sale of & Dat exemp-\nalowed for income tax and minimum\nther simplification: under present tall\nel their Infirmity, Pur examplo, many\n000.000.000 to $15,000,000,000 of this,\nCorporate taxie are in a stentlar oth-\ntime for all persons, regardies of family\nthis date has been used only for purposes\nof them must employ guides or readers\nleaving Government expenditures at\ndillin It is recognised that the taxes\ntax whin filing the return. The annual\natatute, time some very pour families\nor attendanta, It was, therefore, agreed\nabout $90,000,000,000, of which $32.000.-\nwhich are gow being Impost directly\nexemptions used far withholding are still\nof the short-form return. making in -\nwould have to pay Libe Lax, no matter\ndivisible by 12, and If the weekly exemp-\nquart for of the form, where\nNo. -\nRegraded Unclassifier\n10066\nCONGRESSIONAL RECORD-HOUSE\nNOVEMBER 24\n1943\nCONGRESSIONAL RECORD-HOUSE\n10067\nupon curporations, and indirectly upon\nproper channel for laxalion, 1 know\nshe dividend Income Howing to share-\nthat d has bren es missued in some in-\nI submit that II. wood be a -\nviewpoint of this mature Mill\ncrewse in use on theater ticketa and\nnum must be secured: however, there\ncompletely sur et bostpies Last year me\npostage In my opinion this\ncan be no justification for the Committee\nthird-date postage est as don-\nbolders, are as high or bigher than those\nstaties in the past, but that ta an reason\nwiner procedure to allow that and Mon- .\nfalment unit to function and 50 devision\nphane (If the proposed bill will bring less,\nto vote its approval of postal-rate tn-\nfiling this - under MV proposed not\nimposed or the other Allind Nations,\nwhy we should continue and confirm a\ntrad practice. It is understandable that\nits findings before We undertage In for\n- mare money into the tax tills. Why\ncreases without esteful consideration,\nwould to accitivestary tasation for - box-\nIl la of vital impartance that our or-\nthe Ways and Meuns Committee in its\npostage rates Mindly un a tax to no.\ndi as (bat? I have been bombarded\nand give those vitally affected an op-\n- Tour support of metion to resmits\ntax MI with a view to having portal entired\npossivos - kept In arund financial can-\n- HIND from my district from the\nportunity to present their views to pro-\ntransferred to the Part Odtor and Past\ndilien an that the may be able in can-\nproper and diligent search fnr every tex\nout having any dependable 10ys of lb\ndollar should explare all prospects, but\neffect of what by are doing. T brije That\njust pumple serms higher admission\ntect their interests and Investments they\nBunds Committee urgently requested.\nvert to presentime production and pro-\nvide employment for en leaving the\nthere are some fields it should not enter.\nthe able chairman and members of Va\nprice will decrease attendance Al thes-\nhave made.\nWatson A. hav.\nfill the point where It will not mean\nI would like to knnw If the postal su-\nPresident, Cusinity Ind Co.\nThis is une of them Postage rates\narmed furnes after the war.\nWays and Metro Committee will consider\nshould be dealt with separately from\nthe facts I have presented ahma the MML\nMY more Federal revenue than to now\nthorities have been or if A\nThe withhulding as enmille out of the\nand (tda source. I think =\ncareful study of extiting rates OT of the\nTime INTERNATIONAL Association\nweeking and monthly will of MAY\ntexation en the basis of the creds of the\nthat Is already functioning in the Pass\nInd an for to their views in this\nexpiriences of the past served as a basta\nUP PRINTING Human inc,\nwege carner and inlariet person in\nPostal Bervice and what a best for the\nOffice Department in respirt to . n-\ngaster. Throier men have certainly\nfor rates now proposed. I em of the\nNotember N. 1H).\nAmerica las hrought hurn to thrm the\npatrons ut that Service, and I think there\nvision of postal rates and that before the\nene invie part In the war effort from\nopinion we should proceed more cau-\nHon Lands If. Giver,\nmountine cust of Government vasendi-\nLe much argument to support the post-\ntax bill gets through Congress the pre-\nUon that the subject should be handled\na wandpoint of morale, public edosa-\nIfouse Office Building Washington, D c.\ntiously.\ntures Every American - watches\nvisiona Increasing postage Tates will le\nDass BB:\n(ve. and War bond drives. And school\nNew Process De.,\nGovernment upending as novel before\nIngislatively by the regular legislative\nstricken out, so that later when no ban\nelvidren are another angle to ennsider.\nNames, N. November 4. 190.\n1. Higher third-date rulas with production\nThese people will ne and demand sosa-\ncommittee that la constituted to handle\nbefore tar all of the factors of profit not\nThe einke MD a langer part of the theater\nHon Lacal II. Dirth,\nmail and metium -\nome and they low that mity in\nsuch questions, the House Commilies on\nloss, and the probable effects of charge\nand their limited funds\nMosting of Congras,\nare the larguit unrea et third-class mad. The\nGovernment expenditure will lighten\nthe Post Office and Post Roads, of which\nma rates on volume, we may be able to\nmil not Mand an increase in admission.\nName Offer Building,\ninsured nies will medicaly impair, or 1982\nthe ship gendleman from Virginia [Mr.\ntheir - burden.\nrevise the postage rates in a more logi-\n1 must your Committee will agree to an\nWashington, D. c.\nDEB of tão not ennumis malbude\nBEACH) is chairman\neat and satisfactory war.\nDass Commission Owner No deubt you\nunredment to place the tax on show\nof getting business, expecially now visa\n\"A sensy sered is a petiny earned.\"\nThere \" en und in raise more Inkm if\nThe insdvisibility of undertaking to\nMr. COLE of Musours. WID the yen-\nare aware their in . direct mall-under -\nthe la . shortage of mangower,\nback to its present rais and give\ntieman yield?\net which there an a great many in the\nand\ntime.\nmake - revision of postage rates on a\npublic are\nDe sture-poing foik and the show people\nUnited States, the Item of postage used to\n2. With targer business 134 added og-\nMr. DOUGHTON I yidd 39 punutes\nus bill at this time becomes apparent\nMr. LUDLOW, I yield.\na distre te contimue with their good\ncirculamation I a dont the Isrgest\nerating expenses within will In insurred\nle the from Indiana Mr.\nwhre # are reminded that the Post\nMr. COLE of Missouri, 1 world bas\nwork.\n(tem et expetim. The volume of bilaine\nGrouph movement portal rates will come -\nOdice Department now has that very\nto compliment the gentirman em in\nNow, about an increase in postage. I\ndevalos depetde m the number it todi-\nnt in affect moter\nMI LUDLOW. stall address my TE-\nmillet under through consideration\nspeech. I em e member or the Pun\ndi nié believe shile should be saddled on\nnew een: mil, and the number of\ntrom cor Covernment podiest and parting =\nand investigation levil has not had time\nOffice and Post Roads Committee I too\ncirrulate that van be multed with\nInto another,\nmarks solety to the postal providers\nthe secks of the businessmen and pi-\ntill to any eunclusion thervon.\nrevalta depends on the of n.\n3. igenting unter price mill-\nwhich BED found on pasts BI-91 of the\nam upposed to any increase in partal\ntroth I secured when the Rumi plan was\nmgs have = my of the addi-\nThe Appropriations Subenmitter of\nrates.\nriva the et name community, was time\nprint BIPW infure the Committee\nbelow - waruer in the session that such\nMr. LUDLOW. I thank the\nent of third-class postage gums up the oum-\nMingal expiration timed opin them.\n1 am studintsly opposed to the in-\nwhich 1 happen to be chairmati, desling\n. Las bus as H. R. 3587 would be in the\nber of camas that - be eirzo-\n4. The berw ja - amentas) and\ncriam m protase rates which ne pro-\nwith the Post Offire Department ap-\nfor his contribution,\noffine and MI here If is. I consider this\n- drep, and if the nation are dob-\nsuit a. willing and abroid not te\nviewd Enn in the the bill I the the\npropriations, Iselt segnizure of this\nMr. BREHM. ww the sentimie\n- . sere plus to rate a portion of your\nEled the this due et portage, as Dire po-\nse & insury sling with reimation,\nprovider relation to company should br\nrituation and in the port effice appro-\nfield?\nfirmal of $10,000,000,000 to\npoid, the amount of of this\ninquire, and Also the Postal Burvice\nstrinkm a 10/0 from the tall. If it were\npristion the for the current fiscal year\nMr. LUDLOW. Il I have time I girl\nthe who have made their big: profits\nfund will promotrily below but . fractime\nla nil é propir channel to\nnet im the fact that sive closed rule\nthere wer set up a crist assertainment\nMr. BREHM. I would like to compli-\nemails ant of war contracts-to shift\nof WOM \" \" gow, strice = will the possible DI\n1 Bigher calles will postal\nunder which the bill oltant before the\nment the gentleman upon his resurio,\nwithout be only the must 11-\nterms et Increasing them Expective BAA\nunil which will meble the Postmatter\nthe burden from the superrich to the\nspocere juis This will mult in tream-\nstora that whenever portal ENTRE un the\nIf provider the offering nf aminé-\nGeneral to find out what It coda to\nand I regret that the rule under vitie\nanoux and underprivileged taxpayer. I\ndous tom of postime für la and other direct\ncreamt, volume falls tub such so extrant that\nments I vould program an amendment\nhandle exch class of mail and to de-\nthe bill was bruught before a prevento\nDO this vote for the Ruml tax plan and\nmail-onter accura belit e tu\nrevenue um Ima under the bigher PASAA this\neliminations time providens entirely. I\ntermine socurately and setentifically the\nhim from offering an amendment as he\nI estart vote for this bill.\npapale s. Sirge - at sota -\nthey Defe under the lower. I élle the\nhope Unit in the other legislative buty,\nproñ: en some classes of mad and the\nsuggested. I would consider di di pleas-\nTime don not pertait me to discuss the\nclinity will be Surgely title thrugh\nme\nwhich oberator slightly more democrati-\nmany objections I have to this measure,\ncharge will et enployment of\n1. In 1617 the passy palat nda est\nlustes on other classet. the amount of\ntire to vote for such en advedent.\nsally and where freedom of amendments\nMr. LUDLOW. 1 thank (De gentle-\npeople who an for the - part\nIncreased to # rents. Prior su as unrease\nIncrease of portage rectain classe can be\nbut upon the subject of the increase in\nas permitted an amendment will be\nexpected to stand without injustice to\nman,\npicture-show Uckets and postage rates\nnot elypible for employment III NAT table-\nthe Port Office Department bad tem neary-\ntite will Cecline precipitately here to We-\nThe an average anount revenue of\nstriking all ni these postal lists.\npatruns and anthout Incurring the risk\nMr. COLE of Misseuri. was the sid-\nhave tried to make myself clear.\nm. for esample, wiere the part the NII-\nfrom Date some Ane the became\nIf that is done I will support the amend-\nof diminishing volume which might de-\ntieman sield?\nMr. KNUTSON. I yield to the gen-\npropers play in the property of the tonal\neffective the pevenue drippet No $10,000.000\nment wien the bill returns to the House\nNat the purpose of any Instease. All\nMr. LUDLOW. Yes.\nesonom) amá not be printed out to you.\n. pear. not only tailing - produce the -\nfrom Permsylvania (Mr.\nWith all of the respect I have for the\nof this information, accurately and\nMr. COLE et Missourt. I devire 4a\nAnd what will the Customer gate\npected INFORMA increase, bat even medting\nMr. GAVIN. 1 sek unanimous con-\nemi Ways and Means Cummittee and\nacientifically assertained and determined\nobserve that the Priot Office Department\nlbs proprad conditing of pates-\nto belog out in half,\nest to revise and extend my remarks\n5. When in the Department thursed\nthe able and eminent distrition and\nis essential as . trusis for any postage\nis at the presents time la the black for the\nla the Recorp and to Include une wire\nspecifically, bulk return. under section 662.\nIncrease that will be surthing more than\nfirst time in many years, in sume of all\nPortal in and Degulations with which en\nthe firet-clais letter este from a to a\nminism win enropose It. 1 think it gives\nand Uine lettera.\nentirely nutside er the field of institute\nThe CHAIRMAN. The gentleman has\nprinarily comment)? to\nvolume dropped from 6,000,000,000 to 2,000.-\n5- haphamird per in the dark inspired\nthis pensity mail and Government part-\nphieta that they have is BUTT No BE\nthe best of our belief, in bething.\"\n000,000 plaims senually. the révenue de-\nand priper lazation und erlablisher a\nby . desire to reach out and grasp some-\nprofession to revise and extend his own\nvarious parts of the United Blates and in\nsipes = is quie chricter that reduction is\nIt required in years in restore\nbad predent when it undertakes to\nthing la his The cost ascertainment I\nbut to include extraneous mat-\nthe volume of elemiarizing forest on us end\nlossi Ent-dam number to - - figure.\nresulate protage rates. The Post Office\nsport of la something the Fostmaster\npassessions.\nMr. LUDLOW, The gentinmen la de\nTe: In must get permission from the\nutters by the books to raties\nVery\nDepartment la a. great service institution\nDeneral has long yearned for. Me has\nBruss.\nworld dratically cuital postal revenues\nDocume c.\nand les should be careful to se that in\nrepesiedly laminted that alshough be to\nsolutely carrect. The Pust Office De\nMr. GAVIN, Mr. Chairman, 1 want\ntrum this source. The esty world to\nits represtions is is not tampired and\nat last of the largest business estab-\npartment made $1,300,000 in the Busil\nin take this opportunity to state to Mem-\nterm to the us. our employer,\nCest. Through PUBLICATION.\nhatting by laws that impair in service\nUniment in the world be has na idea\nyear 1043, over und above all\nters ME the House that postal rates\nprinters, ether suppliers of all kmle our 10-\nMiltiburgh, Ps., #, 1H1.\nput together. It is in the black to the\nrail mandianta, who depend upon net Inin-\nNon. Less IL Gares,\ncharacter. Postage rates struid be\nwhat the actual cost to of handling the\nthis na be used for purposes of tax-\ndraits of employee for patronape. together\nOffice Puilding,\nlevied - o basis of justine to patrops\nVACOUS class et mail which either pro-\nextent of $1,300,000.\nelles We all recognize the very difficult\nof the port office and sbould not be tied\nMr. COLE of Minsouri. For lbs. Brit\nwith no edvantage to the Government.\nWashington, D. c.\ndue net income et drag down the net\nmbles and the grave responsibilities\nWe have rechad the fatte above in the\nMY Due Through the -\nin with the florivation requirements of\nof that establishment Pur-\ntime in many years.\nDistructing Members of Congren in\nboys and that they will ald you in do-\nhave Inspet that the Bruse Ways and Missing\nthe Octernment in ruped to revenue.\nmast 16 the authorization which -\nMr. LUDLOW. Yes\ngive him to our bill he has created his\nMr. COLE of Missouri. 1. too, wall\nproducing a tax postam that will pro-\nmg an in your power to compat the proposed\nCommittee's proposal in pratal name\nThat is the only sound procidure, If\ntide the trimendogs revenues Decemary\nof rather doubing of this del\ntretudes the deubing of third class pates.\nwe leck at a produce rate minir with an\ncont unit and has called\nlike to be able to vote to surde SUM .\n10 truet needa of the Government- We\nparal nie invet important from\nAs publishers of so-called\neye on the retenue se think le will\nfrom this bill.\nto the Congress are charged with the\n- trulk галяв under settion\nfather magazine to the dental\nto this service in directing the investign-\nequecar out of takpayers, the posibilities\nMr. LUDLOW. I thank - gratter\nM2, Paral Laws and Begulations.\nand the motal trade, - are large tara et\ntion two of the evont eminest mat EE-\nPromibility of delermining how these\nthis portage classification. We par the ac-\nof crippline and dratroying business and\nperts in the oventry, Charles A. Help.\nman. The CHAIRMAN. The una of the\nare to be raised and where the\nNew Process Do.,\nned? high rate of a centa per point.\nInflicting hankhigs on portal patrons\ncomptrailer and Allan B. Crunden, M-\ninter are to be applied.\ntruor L sua\nFor the first a mensha of this year with\nare great Indeed. 1 have no bestancy\nsetant of the American\ngentirman has exploid,\nto trashing such decisions I believe\npresident.\nthird das postage Bill for the mailing of um\nin sayme that the pessare Increases\nTringraph & Telephone Co. Mr. Being\nMr. DOUGHTON I yield such\nMar Congrese must and will take Inter\nc. POTRIM.\nmapidate alone-dot including we other\ncarried in this by will either drive many\nM he may require to the gentismed true\nConsideration the maintenance and wel-\nPresenter.\nand Mr. Crunden came to Washington\nexpeditions for postage-totals 419.225. AS\nbusinener to the wall or cripple them\nearly in this fiscal year and organized a\nOklahoma [Mr. STEWARTI.\nTare of the various parts of our economic\nthis rate. our expiriture for the your will be\nenpaiderably, brilden inflicting undus\nhardships - individual - of the\nstaff of high efficiency which la now la\n(By encisent, Mr. STEW-\n2. Vist will be vitally affected by three\nLANDLOTTE 3a. November II, 1943.\nin NOM of $25,500.\nthe middle et Investigating and develop-\nART was granied permission LA reque\nare Legislation, unless carefully ean-\nIf the rate is is - - in -\nBon Laoir 18. ONER\nportal system.\nthe the fects on which It will be possible\nund can destroy overnight businesses\nof Compress of Sepri-\nBasstion of our 33-year-old tratoms, since\nand extend his remarks)\nthe make a sound revision of the postal\nMr. STEWART. Mr. Chairmia I\nThat in many Instances have taken a life-\nD. C.:\nthe additional 825,000 representa smily 10\nI with to subtott -- a primary propost-\nLittle to build\nNew tax MD (HL B. SMITH with its programit\npremit of our grown sclume-s a higher\ntion that the Pontai Berrice la bet a\nrates.\n\"wish to volce my appoiltion to All D*\ndoubiling of shird-cises word pat as\nprovide than any and grade - eas urs.\nWe all realize that additional reve-\nRegraded Unclassifier\n10066\nCONGRESSIONAL RECORD-HOUSE\nNOVEMBER 24\n1945\nCONGRESSIONAL RECORD-HOUSE\n10067\ntipon corporationa, and indiredly upon\nproper channel for taxation. I know\nthe dividend Income flowing to shate-\nthat it has been so misused in some in-\nARCAR viewpoins of this maller and\nI submit that BL would be & 1\n- in taxes exes theater tickets and\nmum must be returns: however, there\ncompletely nur et East year sur\npurtage. In my expiration this\ncan be no justification for the Committee\npostage mait us Are-\nhulders. are as high of higher Unit those\nstanom in the part, but that is ne reason\nwiser procedure to allow that cost a\nphase of the proposed bill will bring less,\nto vote its approval of postal-rate to-\nthe this amount toder DIE propost bill\nImposed by the other Allied Nations,\nwhy we abould enntinos and oreftrm a\nIt LE of vital importance that our our-\nbed practice Il is understandable that\ntainment unit to function and to develop\nthe Endings before - undersake to to\n- gott. money into the tax Ulls. Why\nwithout careful massideration,\nwould be entimatory texation for DMC Dal-\nthe Ways and Means Committee in its\npastage rates blindly - . tax bill with-\nde I HAT that? I have been bombarded\nand give the vitally affected en ep-\nCMB Tour support of motivo M remaine\nthe but with . view to taring pressas wellen\npersions be kept in sound financial 200-\nwith letters from my district trom the\nportunity to present Uneir views to pro-\ndition, a that (bey may be ship in 100-\npreper and different search for EVERY tax\nout having any dependable idea of the\nIncoleme to the PORT Office and that\npeople saying higher admission\ntent their interests and investments they\nTeste Descritte requested\nvert to puacentime production and pro-\ndollar should esplore all prospecta, but\neffect of what we are doing. I hope that\nvide employment for men having the\nthere are some fields is should not enter.\nthe able chairman and members < the\nprint vill decrease attendance as thes-\nhave made.\nWilliam A. Prov.\nThis is one of them. Postage raten\nWays and Means Committee will consider\nNTF to the point where 11 will not mean\nI would like to lange If the postal NO-\nPresent, Causes Sivd Du\narmed form after the wat\nshould be desit with separately from\nthe facts I have presented about lie end\nunr more Federal revenue than to new\ntherities have been comulted or if a\nThe withholding LAS regine nul of the\ngivined teum this among. I think we\ncareful study of existing rates or of the\nTHE Association\ntaxation on the basin of the neede of the\nwelking- and monthly Rades of every\nthat IN already functioning la the Post\nPostal Brevice and what la beat for the\ndeld lend an ear to their views to this\nexperience of the past served as B taxis\nof PRINTING Home Currents, Inc.\nwage earnet and silaried provio in\nOffice Department in respect to a DE-\nTheater men have organinly\nfor rates now proposed. I em of the\nNamber 20, 1142.\nAmerica ass breatht NAME to them the\npatrona of that Service, and I think there\nvision of postal rates and that\n- their part in the war effort from\nopinion WE should proceed more cas-\nHão Lew H. GARDY,\nmuumime of Generament\nis mumb argament to support the post-\ntax bill enta through Congress the In:-\nuno that the subject should be liandied\nthe standpoint of morale, public edoca-\nBesar Office Wathington,\nHously,\nturns. Every American now watches\nvisions increasing postage rates with Se\nDate time\nand War bond drives. And entrod\nRev home Due\nGovernment atending H give before.\nlegulatively by the regular legislative\nstricken out, so Unit Batare when - have\nchildren are anuther angle to rensider.\nVartes, Ps. Noumber 4, 1941.\nL Bigher third-class relas will pensibles\nThese permle will THE and demand non-\ncommittee that La constituted to handle\nbefore us all of the factors of prode and\nmay and Livey that every eving in\neach questions, the House Committee on\nJoss, and the probable effects of change\nThey make up a larger part of the theater\nthe Lew H. Over,\nemail and while\nGevernment sependitures will lighten\nthe Pod Office and Post Roads, of when\nthe rates on volume, we may be able MI\ngatronase and their limited funds\nMoster of Compress,\nMS the largest - if third-clase mail. The\nencial not stand en increase in admission.\nHowe Office Building,\nincreased rate will includy smgir, we -\nthe able entleman from Virginia TMr.\ntheir us horden.\nrevise the postage rates so . trinne\nI true your Cummittee will agree to en\nWashington, D. c.\nuseday, our of the mas economic mathrds\nBoxcal M chairman,\ncal and satisfactory way,\nDue Communication Birth: No soubt you\nammidiant to place the tax on show\nof goiling busine, especally - when\n\"A peona sived a A penny earned\nThere - DO perd las mise more taxes if\nThe modivimiality of undersaking to\nMr. COLE of Missouri Will Ubs ENG.\nare un that in - dirent enter -\nto - sturrtage of marpher, punlize,\ntark to the present rate and give\nUsman you\nDEM, of valid there are . pmt many la IDA\n-\ntime.\npublic are practired.\nmake . revision of postage rates DR. a\nMr. DOUGHTOR, I yield 10 minutes\nMr. LUDLOW I yield,\nthe folls and the show people\nUnised Biates, the the of pour und in\n# With larger trainam. the Added -\n182 bill st this time becomes apparent\n. to sontinue with their good\n- sa MOST the largest\neraing reportes which VII the innered\nla Use geotleman from Indisna (M:,\nwhen we are reminded that the Prot\nMr. COLE of Missourt 1 would licks\nweb\nof expense. The vottime of\nturnessed portal raim will cume eut\nLmcow\nOffice Department now has that very\nto compliment the gentleman 00 2\nNow, about an increase tn postage. I\nulitalned depends en the scoller of\nor taxes If effect taking under\nM: LUDLOW. 1 aus andrew my IT-\nmatter under thomagh consideration\nspeech. I am a member of the Post\nto not believe this sisculd be maddled on\nvitual circulare emtil out, und the ausber of\ntrom ane Government pociet and purting as\nsed interfication but has not trad time\nOffice and Post Roads Commities. via,\ncirculars that as to polled with providable\ninto another.\nmarks easy to the postal provisions\nthe backs of the businessamen and pe-\nto name to and ounclusion thereon.\nam appeared to any Increase in\npenita depends on the responsible of -\n1. spending under paire we\nwhich are frund un pass M-01 of the\nthe sensed when the Bumi plan was\nThe Appropriations Buhenmmmittee of\nretains.\nnous Hate of - stue the\nmp have no 949 of the addi-\nprint now before the Commissive\nbefore - enrller in the session that such\nI AIT) ebsolutely oppoied to the In-\nLUDLOW. 1 thank the proleman\nnost of third-clame portage - to the -\nTennal Tread upon them\nwhich I tappen to be chairman, dealms\n. tax till as H. R. 3487 would be in the\n- - names that - profitable be elev-\n4. The Govial is an RETION\nenter as postage tates which am pri-\nwith the Post. Office Department ap-\nfor his contribution.\noffine und so here 10 is. I consider this\nbarred gove down, and if the tates atv -\nand a. public alimy, and about not be\nnded THE in the tax bill I think the\npropristions. took cognimince of this\nMr. BREIM. Will the\nMM 1 mere plant to raise a portinn of your\nblest for - claim of portage, M now pre-\nclaims - . looning ship with commeties,\nprovidens relative to postage shmúd be\nallostion and in the post office appro-\nyield?\npart. the amint of etreularization of 18M\nand cigare. Alm, - Pratal Device\nliberal Burgiveness of $10,000,000,000 to\nin from the hill. II Il RUTE\nprintion but for the carrent fiscal year\nMr. LUDLOW. If I have time. I vield.\nthose who have made their the profits\nkind will security become but . fraction\nis 001 - proper channel for\nnot Jur the fact that the closed rule\nthere wes NBC up a point assertainment\nMr. BREHM. I would use to\nprimarily out of was emtracis-to abift\nof what is to new, strice B. will be pasitie 10\na. Higher rules WYO INSURE postal revenues\nunder which Unle MII remes betrire the\nunit which will enable the Postmadler\nment the esotieman upon his researce\ncirculadase without loss only the - -\nInstead of increasing them. Experience has\nthe under trom the superrich to the\nHouse provents the offerms of amend-\nand I regret that the rule under which\nsponsive Lieta. This will result in tremiti-\nCharge pristal nim em -\nGeneral to find out etrat IS costa to\neventure and underprivileged taxpayer. I\nform et trustness for tal and elber direct\ncressed. volume falls to with 55 extent that\nmansa 1 weuld pregone an amendment\nbandle each class of mail and to de-\nthe BART was brought before TAB privents\ndid the rute for the Ruml tax plan and\nmail-order concerns, Facilities bulls to to\n- are Inna tinder the higher rates than\neliminatime these pervisions entirely. I\nservique accurately and actentifically the\nhim from offering nn amendment as DE\nvannot rote for this bill\nName . large vulume of hyprima with 15-\nLing were under the Extre the follow-\ntime that in the other legislative body,\nprufil on ema classes uf nail und the\nsuggested. I would emaider M. . plan-\nTime does not permit me to discuss the\nclassey will for largely the though cerrying\nthe proof:\nwhich uperatas slightly more democrati-\nJonies on other claims, the amount of\nure to vote for such an amendmenti.\nmay abjections I bave to this meanire,\ncharges will consinue, and employment et\n. In 1917 the penny postmant rules vas\ncalls and where freedom of amendments\n10crease of postage certain classes can be\nMr. LUDLOW, I thank the -\nbut upon the subject of the Increase in\nwhite-culler people who 579 for the BENT pin\nIncreased to = centa Prior to the beness\nis permitted. an ameriment will be\nexpected to stand without injustice to\nman.\npicture-show ticketa and postage rates\nnot eligible tim employment in wir Info-\nthe Port Office Department had been reade-\ntriss will decline preciptiately here - Wur-\nIng as snoual - et 1,000.00\nadopted striking all of these portal items.\npatrens and without incurring the risk\nMr. COLE of Missouri. WIII the p.\nThave tried to make myself clear.\nthis After the Increase terms\nIf that MI done I will support the attend-\ntheman yield?\nTED, be example, wom the part these -\nof diminishing volume which might de-\nMr. KNUTSON I yield to the grn-\nplayers play to the proterity of the local\ndirclive the INFORM dropped to $10,000,000\nment when the MID resurns to the House.\nfest the purpose of may increase. All\nMr. LUDIOW. Yes,\nAman from Pennsylvania Mr. GATTAL\nMonory need not be pointed out to 1\n. year. not only failing - produce the -\nWith nil of the respect I have for the\nif Uris information accurately and\nMr. COLE of Missouri. I duin to\nA04 what will the Government game tas\npetted promote increase, that even resulting\nMr. GAVIN, I ask unshimous con-\ngreat Wast and Mosna Committee and\nscientifically aspeciained and determined\ncharve that the Post Office Department\nthe proposed doubling of third-clam na-\nin telag out in half.\nand to revise and extend my remarks\nthe able and emineot chairman and\nla suential as & basis fur any postage\nis as the present time in the black far the\nIn the Racors and to Include one wire\nspecifically, - under settion RI,\nB. Winn to 1992 the Department increased\nfirst time in many years, in aptle of all\nPostal term sed Registions (with etilis -\nthe Bred-dass becter rue free IN to 3 sents.\nmembers wise sompose it I think is poes\nincrease that will be sorthing more than\nand Urre letters.\nentirele uf the field of legitimate\nThe CHAIRMAN. The gentleman has\nare primary - The unit. to\nvilume trapped from 00.000,004 to 3,000,-\nA. haphazard to the dark inspired\nthis penalty mail and Government pub-\nthe bed of ar is \"Ustle te nothers.\"\n($),000 plan annowly. or INFORMATION de-\nand proper takation and establishes a\nby A distre la reach out and erasp some-\nphine that they have to CATTE to the\nDirective to revise and extend his own\nvarious parta of the United States end la\nstore 15 la quite obview that reduction in\nmust, It required 19 years to resure\nhad president when if undertakes to\nMilna to tax. The cost ascertainment I\ntemarks but to include extraneous mai-\nthe volume of - - and\nlossi voicins to (Le 1982 Extre-\nregulate contage rates The Post Office\nspeak of is something the Postmaster\nponentoni.\nfor be must get permission from the\nothers by the understanable booth in rates\nVary\nDepartment in a grest service institution\nGroenal has long yearned for. He has\nMr. LUDLOW. The gentleman 0 -\nwould drastically curtail postal revenum\nDonosis c.\nand we should De careful to - that in\nrepratedly lamented that although be is\nanticly correct, The Past Office &\nMr. GAVIN, Mr. Chairman, I want\ntrue this AUTOR The only results word be\nas operations it \" not hampered and\nat the head of the business estab-\npartment made 81,300,000 in the fund\nto take this opportunity to state to Mem-\nharm to generna the us, our employees,\nOur Envoice Protective\nhamstrung laws that impair Its service\nyear 1545, over and above all expires\nprinters, other suppliers et all mode. our 10-\nNo. Namber #, INS.\nin the world be has ne Idea\nben < the House that postal\ncharacter, Postage nites should be\nDUE together. D is in the black to the\ncal mimbers. who depend upon eur -\nNov. Lane IL Claim\nwhat the actual cost is of handling the\nthous not be used for purposes of lax-\nCredit of employee for patronier. together\nHour Offer Building,\nlevied em B. tinsis of justice to patrose\nvarious classes of mail which either pro-\nextent of $1,300,000.\nMin. We all recognize the very difficult\nof the stal - and shmild not be tied\nMr. COLE of Mismir For the to\nwith = a the Government.\nWashington, D. c.\ndue net Income or drag down the net\nwhire and the grace responsibilities\nWe have recited the fails above in the\nMr Dese file: Through the newspapers, We\nin with the Buclasting resolrements of\nrevenues of that establishment. Pur-\ntime in many years.\nAddressing Members of Cingress in\nhope and belief that they will side you is &\nluive learned that the Roum WAS not\nthe Government to requet to revenue\nto the authorization which we\nMr. LUDLOW. Yes,\npive him to our bell he has created his\nMr. COLE of Mineuf I too, must\nproducing a tax program that will pro-\nthe all in your pera to commat the propried\nCommittee's proposal to increase paid\nThat in the only anund procedure, If\nYide the tremendota revenues Decessary\nIntreas, or rather dushing of\nIndiate the duubling of think clus raths.\nme look at a postage rate solety with an\nseus ascertainment unit and has estied\nlike to be able to vote to strike 1\nto must tireda of the Government We\npostal rates, instading (unit important -\nAs publishers of an-called\neye on the revenue - think It will\nfrom this bill.\nle the are charged with the\nour truik ruthe under auton\nletton magames for the dimital perfession\nto this service in directing the investige-\naquirese est of taxpayers. the possibilities\nMr. LUDLOW. I thank the gentle\nMI, Postal Lawa and\nand the dental trade, - are large - of\ntion swo of the must eminent est EX-\nresponsibility of determining how these\nUnite portage classification. We pay the al-\nof erippling and destraying business and\nparts in the oventry, Charles A. Heim,\nman, The CHAIRMAN The time et the\nare to be mised and where the\nSre Nome Co.,\nmudy bights mate of 1. centa yes prund.\nInflicition on portal patrons\ncomptriller, and Allan B. Cranden, ss-\nun are to be applied.\nJoan L main\nPor the first - executive of this year our\nare great undeed. 1 have no hestancy\nsixtent sumptroller, of the American\ngentisman has expired.\nIn reaching such decisions 1 behave\nPresident.\nthird class postages - for the mailing of our\nin Myby that the postage increases\nTelegraph & Telephone Co. Mr. Helse\nMr. DOUGHTON. I yield such use\nthat Congress must and will take the\nBanke c. Person.\nmagadisms signa-not Industing our ether\ntarried in this bill will elsber drive many\nas be may require to the gentirment DE\ncollideration the maintenance and wel-\nTreasurer.\nexpenditures for At\nbusiness to the wall ur eripple them\nand Mr. Crunden came to Washington\nearly In Utila firest year and organized a\nOklahoma Mr. STEWANT).\nfare of the various parts of our ecchonise\nthis rate, our expeditive for the year will be\nconsiderably, besides Inflicung undoe\nhardsbips on individual LEFTER of the\nstaff of high efficiency which is now in\n(By unanimies consent, Mr. STEW.\nWe that will be vitally affected by them\n2s, Nevember 22. 190.\nta EXCHAP of $15,500\nthe midst of investigating and develop-\nART was granted permission 10\nwe Legislation, unless carefully ECD*\nIf the rate in drublet. it one - in -\nthe TARM II. our,\nportal system.\nIns the facts on which It will los possible\nNamed, can destrny overnight businesses\nNember of Congress. Healt of Repre-\nfacation of our 13-year-old store\nand estend his remarks)\nI wish to submit as B. primary propert-\nto make a sound revision of the postal\nMr. STEWART. Mr. Chaires I\nlbss in many Instances have taken a life-\nWashington, D. C.:\nthe additional $25,000 regrementa serif 10\ntime to build.\nNew tax bill (H. B. 3587) with the propard\npervent of USE - volume-s and tight\ntion that the Postal Berrure is DOL a\nrates,\n'wish to voice city opposition to an a\ndesting of third-class would put us\npersontage than any net prode 14 - N/S.\nWe all realize that additional gove-\nRegraded Unclassified\n10068\nCONGRESSIONAL RECORD-HOUSE\nNOVEMBER\n1943\nCONGRESSIONAL RECORD-HOUSE\n10069\nmany other magazine publishers\nThe proposed increases in taxes en\nness enterprise, as IS Impliedy committee\n- with determing and the\nThe Budd Wheel Co. for the fiscal year\nstad. Perhage be just said, \"Let - look\nare taxed with a. station disaster = the third\ntelephone to confistatory. It will neche-\nlinelf to de In the appointment of boxy\n- via your knowledge of Chase\nending December 31, 1241, did a war\nthis over. I cames - you amin at this\nclass rate la Licressed submentially, let sime\nsitate the discantinuance of telephone\nservice to numeross farm and rural-\nBenste and House committees or may\n1 - you know .\nbusiness of Its profis, before\nextries PO adverted, and the mindatures\nbustness. These committes have as.\nist e -\nrate. Let us reprice this A Ittile.\" And-\nbeing devisid the readers of mag-\nAnything you - do to block this tax: -\ntaxes, was 89,990,000. or 24.2 percent -\nway he represtiated. Repricing la noth-\nwho use them as advertising media, would to\ntown humes.\nThe tax to discriminatory. It la more\ndently been very active, I am informed\n- will be greatly approciated.\nits total volume of busines. Its profit\nthe DEW to and nothing new in\nthat their annual expenditures Inc 40\n204 M.\nafter lates, if there had been ne rene-\nIndustry.\ndepoint. of publications upon whild they\nIn the nature of . selective sales tax\ntheir operations, Including travel, lives.\nprovident /ster-County Telephone City,\ngotistion, would have been $3,633,000, or\nThe smepäments which this bin will\ndepend.\nIn my optnion. the project increase of\nthan an exclée.\nLigation. clerical belp. etc. have -\nMr. KNUTSON. I field 5 ministes to\n55.0 percent of the ML worth of the com-\nproprise are good amendmento to the MIL\nthank class rains world fall to potre any\nThe tax La an increased and undeces-\nfor Senate and House committees, FEEDIC-\nIM emileman from South Datota LMr.\npany. After renegotiation its prodit was\nAs & matter of fact, I went before the\nInstrume - the Gerernment's If\nsur burden upon already overburdened\nlively, 857,445.22 and $47,500 are\nstill 12 percent of to net sales, and Its\ncommittee and 2. suggested to them that\npublisher's surrent profits are surved into\nlocal, independent telephone\ntotal of approximately $100.00 for .\n(tist). Mr. CASE Mr. Chairman, I shall ed-\nnet profit after payment of taxes was M\nI thought the same as I did over a your\nend If with pittures APT civil will\nWhile the tax is paid by the subscriber,\nun business time présent fugh - are\nyear of Investigation of - butters -\nthe telephone company is responsible for\nproblema and conditions Hire we Batre\nè myself to two phases of the bill,\nparcent of the net worth of the company.\nwen, when WY adopted the statcin origi-\nan opportunity to make so the\nIf at least. two phase of the discussion\nWhen the War Department Appropri-\nnaily, that the statute vas Imperied.\npayment tva to\nits collection. The Joh of serving as tax\nation Committee ran into situations like\nthis afternom which have to do with\nThat If was marrly a start. That seve-\nYour university.\nProduct\ncollector, computing. collecting, record-\nsume return far all this money of Unity\nla It any wooder that some of us\ning. and remitting ETOMS more\n(h) appropriations in which the War De-\nbody should work DD 11 further and pro-\nwhich has been $4) spent.\npartment Appropriations Bubcommittes\nthrught that you. and you, and ymL\nfact the details, ur even try something\nMr. KNOTSON. I sinid to the gentle-\nall the time.\nMr. Chairman, the resulta of Ube par\nwould be hald sociuntable by the nen-\nas If n would do . better Job.\nman from New any (Mr. Towe).\nTelephone companies are experiencing\nIN interested. That to as to the sevings\nposed increases in taxes DD Adeptions\nbers of your district if you permitted\nThis comfisittee has done a aplendid\n(B) unseamous consiot, Mr. TOWE\nan acute shortage of manpower. It was\nmore this $13,000,000,000 that was N-\nla well net forth in a letter and - Note-\nthe vast numa of meney to lie paid ous\nhö in the amendments Il has\nwe wranted permission to revian and\nverified tefuse the committee that\neram which I recently received Ine the\nported the other day and el to the It*\nof the Pederal Treasury without any st-\ngiven expellent study to the whole\nusland bis respons.)\nthe curn-over of female help is almost\nnagulation testures of the bill.\npresidents of two of these - cig.\ntempt at recovery?\nproblem. Naturally I em pleased to\nMr. TOWE, Mr. Charman. I am up-\n400 percent to some offices, and that If 13\nAlready this afternoon during the n.\npanies located in the Pirst Company\nOne further reference to the facts nn\nfind that five of the changes that 1 ma-\npossd to this bill include of the provided\nguris were bired on Friday, only 5 would\nmarks made by others, there has been\nEn \" which arbittrarity increases the\nDistrict of Mismori, which I\nthe Budd Ca. The salary of Mr. Budd in\ngested to the committee are incorporated\nshow up un Monday.\nuna discussion of this $13.000,000,000\nherein as follows:\nloss was 843,200, from the Budd Mani-\nin the amendments now affered in the\nthird-class mail rates,\nWhile the expense of ontlecting the the\nand Se relation to the fiscal burdens of\nfacturine Co. In 1942 that was jumped\nstatute.\nMany publications which are of great\nCe,\nla me available for the more than 6,400\nfor Government. Because of limited\nMilen, Mt., it IND\nto 868.410. But in addition to the Budd\nFor Instance, there a the expirat right\neducational valor - this class of mast\nthan Wat Assiss,\ntime I am only going to refer to that\nindependent telephone companies to the\nManufacturing Co. they now had the\nof appeal by setting up . tas surt A\nfor distribution These publications are\nNouse of\nat this uma to say that the true credit,\ncountry. If Beurer were available they\nRudd Wheel Co. and from the Butd\ncourt of appeal Ludy. and before that 9.\nnot chiefly advertising mediums. They\nsould show n sizable amount which\nWallington, D.\nthe real credit for the moving of that\nWheel Co. Mr. Budd received an addi-\nreview body. Ba that now the right of\ntender a distinct service and It is quite\nthem companies have to spend to do the\nDate We are . small corporative pm-\n$13.000.000,00 should go to the boys in\ntinnal salary of $140,910, misking an m-\nappeal will be expressly provided in the\nprovide that their distribution will be\ncollecting and remitting of taxes. Surb\nlesting equirat higher taxes on the Islegible\nAutralla, to Alaska, in Africa, in Italy.\ncrease In his annual ealary from $63,000\nstatute\nrequired in the future. If this\nIndustry,\nIn and no the high SPM. who are\ncosts. of cuurse. become & part of the\nin 1918 tu $205.000 In 1042.\nIn addition to that the use of the cx-\nprovisions remains in the MILL and finally\nCongria his picked commonistions -\nrepensible for the change to the mill-\noperating expenses which are ultimately\nbecomes law, No. of publishers in\nof the net of the utility family für à Na la.\nSimilar examples of greatly Increased\nemption is to be reised from contractors\nlaty situation which made possible that\nSED en the revenue late abaited to 1941. This\nprofits and salaries von coming before\nwith was business to to $100,000, the\npaid by the telephone users, and that\nthis country will be singled out to pay a\nBranchal cut-back trnm the military pic-\nconstitule A further tax increase.\nmusted is a 6-permint monthly tax - hesi\na in the aprise of 1942-pet the full\ntreaind to extrad NP to $500,001 total\ndisproportionate thare of the tax sought\nexchange Mine, which NM Increase a @\ntime et is una presented to a last May.\nThere are something over 6,400 In-\nfacts on any rate FOR hear about. You\nGovernment war business.\nto De naised under this hill\npersons Seal year.\nWilk respect to the remegotiation fea-\ndependent telephone companies in the\nwill understand what I mean when I say\nIn addition to that there la . definition\nMr. ENUTSON. I sield to the gentle-\nWe screpted this tax chrectull) and\nturns of this bill, as I said early during\nthat the origin of renepotiation NM the\nof standard commercial articles. which\nUnited States. These have been\nman from Missouri (Mr ARNOLD].\ncheetfully acted - - txp-estering -\nthe alternoon, the gentleman trum Okis-\naltuation that R comfronted.\nmakes it presible for the Secretary or\n(By enanamous rousent. Mr. ARMOLD\nBed into four groups, M follows:\nfor the Government. New . proped\nbema DISNEY) and the gentleman\nthe Blagie Price Adjustment Board to ex.\nA. These having an anoual operating\nThe Government, the emantry, will in\neranted permission to revise and\nTAIN in this ISE\nfrom Minnerota (Mr. ENVIRON and the\n& situation parallel to the perved who\nempt the articles where substantial com-\nrevenue in excess of $100,000.\nextend tile remarks)\nAa you probably know-doming Inc as\ntermina of the subcommittee that ban-\nfound his child about to die. 25e sald.\npetition exists.\nMr. ARNOLD. Mr. Chairman. the\nB. Three moging from $50,000 to\npart of the country-chat . largh\nof rent and small-town telephone DAIN keep\ndied this provision are entitled to a great\n\"Send for & doctor.\" Bomehody said.\nFor they have also adopted the Idea of\n$100.000.\nproposed increase in tases DE telephones\ntheir phones mainly because they have -\ndeal at credit, as 579 other members of\n\"Which doctor shall 1 get? Shall I pet\nque central prior adjustment board, a\nwill necessitate the discuntimante of\nC. Truse ranging from $25,000 to\n$50,000.\nof Estier relatives in the smet firms -\nthe committee who worked on this most\nthe expensive doctor?\" \"Well, there to\nauf to crests uniform policies through-\ntelephone service En nutacrous farm and\nTest that they must have the wishom\ndifficult problem we have in connection\nonly one in town. You run and get him\nout the program for all agencies 000-\nrural homes\nD. Those having less than $25,000 an-\nBane, many have told - that of DATE\nwith war financing.\nand do not usit what is la going to cost.\"\ncerned and provision la made for termi-\nMr. Chairman, the telephone la a ne-\npast opirating revenue,\non telephone enke are intressed yain DMF\nBenegotiation vas developed to the\nThe father asid, \"We have to have &\nnatine repegetiation when the war ends,\ndesoly, it not a tolower. The telephone\nIn groups A and B together there are\nwas the forced to the\nWar Department Appropriation Bub-\ndoctor right away. This \" a case of life\nnot $ years sfterward.\nindustry has been classified by the War\nsomething over 200 companies. Groupe\nADd that If this 13- to 20-mat increase -\nto med a special and extraor-\nand death.\"\nI know my time is about la expire\nand D. therefore, represent about 6,200\ntoto effort time is nothing - til the\nMangower Complesion as case of the 33\nfinary problem. D vas . problem that\nA tot of the war emiracts were made\nsgain, but let me my sealn that there to\ncompanies and these are typical of small\nto\ndo.\nmort mental to the prosecution of the\nWe fail that this proposed lume a\nlas searnity been truched upon here to-\nin that fashion. 1 de not justify them.\nno perfect to the problem of a\nwar.\nbusiness enterprise about which there\nmisstive tax and & discrimination and \" è\nfay, the problem of vast and extrair-\nI supported the effort of the genürman\nwar profits. You may have ideas\nLocal telephone service is essential to\nhas been 00 much said and NO Uttle done,\nfair to the insustry and to addition # 10\ndisary profits being made en war -\nfrom Michigan (Mr. Essal to eliminate\nthat will fursher improve the stature, and\nthe dumestic and business life of every\nThese 6,200 companies have a total of\nWRASHO the motale nf the Fund and -\ntracts It is - problem IMS which the\ncust plus and toot plus-Bard-fee COD-\nTHE you know . better hole, go to 16.\nommunity. D 1a visal to the national\ntelephones, or wn aterage of\ntown people, who eximpt affert a\npublic has ben getting but one ande,\ntracts before we got into the war. But\nThere is not a Member of this House\nwelfare.\n204 telephonis per company, In other\nIn large cities and large this\nlabily. Here is & circular put out by Mr.\nthat Inst. and later 19 got tuto the var\nwho has not repostedly, publicly and pri-\nThe independent telephone\nwords, une typical independent small\nmight work not but small e\nalready sex burdened almost beyind of +\nthat G. Budd, president of the Budd\nand restracts were let right and left.\nvaluly. said that he would do all in bis\net the country operate in about 12.000\nrural telephone company has an annual\npacity to pay and still know sur - 19 M\nManufacturing Co., and the Budd When\nMany times neither the contractor not\npower to prevent excessive war profits If\nof the 16,300 communities Must Bild)\noperating retenue of less than $50,000\nthe statement - wish to boxe.\nDL colled \"The Dangerum Injustice\nthe Government had any Iden of what\nwe ever end insu war again. The law was\ntelephone arrvice.\nand an average subscriber list of 384\nWe maintain that a. telephone in nal\nof Renegotiation,\" which was on your\nthe cost world be to change & washing\nnew: It was not perfect and these amend-\nThe arrvice in-\ntelephones.\ncommunition is . premity and - = -\ndelo this morning, I presums. Now,\nmachine factory to a munition factory.\nmenta, while they improve It, will not\ncludes more than 4,000,000 telephone or\nMr. Chairman, it would neem that in\nlurury. 1 MI writing to your when 1 tell -\nthe direction in the Bodd companies la\nBo we sent for the doctor-any doctor we\nmake st. perfect. But 16. works. n has\nabout one-Bith of the total telephone in\nall fairness, and in proportion to ability\nthe kind of rituation that produced . de-\ncould get. After the doctor came, per-\nsaved over $5,000,000,000 of the be\nthe United States\nto mret the costa of the tax burden and\nstand bere, as am your call a go\nbehalf protest to too if the -\ntasi for something to esmb excessive\nhape he was an expensive doctor. Per-\npayers' mobey and is getting better prices\nMark than so persent of these 4,000,000\ncontinue in business, the small indepen-\nNo ordenditures and since this circular\nhaps he found his costs were not M much\non DAW contracts\ntelephone are in residences,\ndent rural telephone company with\nand Motor Cummittar\nWe hape para will be able la help MA\nspound resterday and tistay, 1 use и\nas expected and that his prices were\nYou take any one of the celebrated\nOne millen are in rural\nsubscriber lat of Denn 850 telephones\nM § movement illustration of the prob-\nhigh.\ncases and get the facts from the War De-\nhome service farmen.\nshould be exempted from further tax In-\nVersits n. product Link\nIm, After reading the eircular I called\nThe CHAIRMAN. The time of the\npartment or the Navy Department and\nDevidling paroline and lire supplies\ne live War Department for their figures\ngentleman from South Dakota (Mr.\nyou will NETES with me that were R ml\ncreases above three as present in force.\nmake the telephone att the more ESTED-\nThe failure of small bustness concerns\nto the Budd case and I have here .\nCAST) bei expired.\nfor resepetiation there is not . Member\nthat to farmers.\nis A. calamity which mar country cannot\nGALLATIF, MD., a (14)\nStruk-down of the profit street of the\nMr. ENUTSON, Mr. Chairman. I\nof this Hyme who could eu tack to the\nWillhart the Delephone the farmer\nafford to les come tax pars To give small\nthe Wer\nBudd Manufacturing Co. Contrary to\ngield the gentleman 3 additional min-\ndistrict and defend the excessive profits\nCongresman, First District\nthe Depression coe might receive from\nthat would have been made from War\nWould not only be handicapped in farm\nindependent telephone companies a puit\nuse.\noperations, necesditing frequent 000-\ntoward fediure by congresional act le\nHouse of Washington,\nthe In this dreular that they\nMr. CASE 60 what did VE propose?\nand Navy and ship centracts, without no-\ntants with neighbors and Business people\nunthinkable. And yet that la what we\nPlease pentact us the MI - - is -\nhad cade a. profit of only 1 percent or\nOu back to the father who amt for the\nnegotiation.\nin town, the health and safes) of bis\nwill be doing or WE approve these tax in-\nwerething like that, listen to these fig-\ndoctor to treat Isla child, After ha get\nThe CHAIRMAN. The time of the\nselective sales tax at the sub\nfamily would be Despardiard for vent of\ncreates.\nof our Davide and De Exis country permit\nfrom the recurds in possession of\nthe dreser's bill. It is postible that be\ngentleman from Smith Dakita bas seain\nready communication with the family\nIn this matter, the Compress has a\nenibme, of which at el\nthe War Department:\nfound the WII pretty wiff. Re renegott-\nexpired.\nphysician.\ngreat opportunity to protect small bus-\nare farmets. This service la nei . IDENT\nRegraded Unclassified\n10070\nCONGRESSIONAL RECORD-HOUSE\nNOVEMBER 24\n1943\nCONGRESSIONAL RECORD-HOUSE\n10071\nMr. DOUGHTOK. Mr. Chairman, 1\nMr. GBANT of Indiana. This letter\ndenomination, Protestant and\nvas dated August 4. n sald the Ind-\nIn the very few introtes at by dispose\n- de 6 jeb of n tabor.\nis all probability, work the MB. A las\nhave einoere appreciation for the fact\nState euch time as he may desire to the\n& lawyer And * Stranghal\nMII, beling highly ledbsical, needs care-\ngenteman from Oklahoma (Mr. Juins-\ndent happened the day before,\nI de not have time to go lata this the\nthat the members of that committee,\nThe CHAIRMAN. The time of the\ncoghly. I could rand restrutina Ina\naccount to make out one of the\nAG and phinotaking emelderation, and IT\nyear after year. have been patient and\nand (B) unanimosi ement. Mr. 20HH-\ngentlemen from Indiana has expired.\nthe Protestants, the Lithers the\nyears and event then them is NO EMO\nwould Keyn impomiste to write with 5 bill\nkind mouth te Haten to me come before\nMr. ENUTSON. Mr. Chalrman, I\nChristian the Catholics, the\ndell everyinly the return Is surrect.\nupon the thor. No. I em net objecting\nthem and tertify.\n806 of Oklahoma was granted person-\npepir do not mine paying taxes bet they\nto the eas rule. - far M It applies to that\nBCD to revise and extend his remarks.)\nyirld à minutes to the gentleman from\nAmerican Association of Collinges, and\nThe must clear chiligation of the Crie-\nNetrosika [Mr.\nvarious hospital masuriation Yet the\ne into DU of profound despondency\npart of the time relaing taxes. What I\nDes has net bem fulfilled in this NO.\n(Mr. JOHNSON of Calaboros ad-\nMr. CURTIE. Mr. Chairman, a little\ncommittee turned . does and to Unit m.\n- beg contemplate maleing the\n50 objecting to le lacking tatle VII ento\nThe tob that Congress should Dave done\nthe für and attempting to ENE me into\ndround the Committer By newb ap-\npual. Eventually 11 with cheme, We\nresurns, Mr. DOUGHTON. Mr. Chairman, I\nin taxation bas tisk been dene in this\nwhile IMPO when members of the Commit-\nvoting Enr or against the will as a whole.\npear in the Appendix of indiag's Record)\ncannos 80 un taxing exempt income and\nNIL I name with the chairman of the\nLes on Ways and Means wire asking\nfield with time as be may desire to the\nIX. has bas charged, and I understand\nunshamous email to extend their re-\nthen expect people to file a claim for 1.\nWays and Means Committee white be\nun MARON addressed the Commil-\nmarks I was earnestly in the hope that\n- from Pentiry/vania (Mr.\nupon good suiberity, that while the ME\nsaid that there Das lesses ten much talk\nLes. His remarks will appear hereitter\nrefund at the and of the year. We no-\nEMIGY\nunder consideration will raise ensured\nabout inflation. These has ben Los\nin (5r Appendix\nsurre member of the committee would\nnot - on destroying the - Das\nmake fur a strong eltimenty and have any\nMr. RELLEY. Mr. Chairman, 1 am\n$3,000,000,000. the opening up or bun-\nmum of the wrong kind of talk about\nnek unantmones consent to expange\neverything the cummittee had drive up\nnational income or property left If 12th\nappoint to (ble to bill. There are RV-\ndrede of cases, CRED that\nMr. KNUTSON M/ Chairman. I\nThere has tren to much talk\nand The principal reason is\nhave been finally settind, and repapiti-\nrield 1 minute to the gentlemen from\ntax thre. I realtar, however, they had a\nenuntry.\nabout box . change m . farm price of\nshe inchision of the tax provi-\nmine settlements of these CMM under the\nIndiana (Mr. Guirti,\ntough JOB and I am very much pleased\nThe CHAIRMAN. The the of the\n& change in a wage level is eving in name\nMr. GRANT of Indians. Mr. Chair-\ngentleman has expired.\nMAR whereby the families of lowest to-\nper rules set furth in title VII, will in all\ninflation. I de net believe It does.\nover the [act that we are emätng this\nman. I nik documents ement to pro-\nMr. EDUTION Mr. Chairman, 1\n- are (ubject to taration. The as-\nprobability cost the Government same\nThese the are the resilt of an infia-\nhill DIRE tu the Senste today, I feel\n$3,000,000.000. Are - about too caise\nceed out of order for 1 minute,\nyield such time as be may desiry in\nseption for 5. married man Is true 8500\nDenary situation\nthat the taxpayers are entitled\nand but $100 les each child. Does no\n$2,080,000.000 too laxes, give 1992 30.-\nPurihermore inflation - net marly or\nThe CRAIRMAN The gentiaman\nto a tax un that is not retroactive and\nthe entleman from Michigan Mr.\nIrom Indiana NO - consents\nI hope the bill names back and becomes\nMicrism),\n- ever give s-thought to the struggles\n000,550,000 un opening up and recepts-\nruinous to a nation as deflation Is. 1\nor the poor to win meet, bread, and bit-\nwar contracts. and wind up\nhave warned before of this, and I worn\nto proced error of erder.\na law before the calendar year 1043 -\nWhibout abjection. II e 8 ordered.\n(Mr. MICHENER addressed the Con-\nMr. and their consequent institity te per\nsome $3,000,000,000 was of than when\nthat our grestest danger to the\npire.\nThere nas no objection.\nThe chairman or the sommittee told\nmilter. His remarks will appear -\nwill This imades of rank Injuities.\nse I worder.\nranit und file of the prople in this mun-\nMr. GRANT al Indians. Mr. Chair-\nafter in the Appendix.)\n(Mr. EXILEY asked sad - pro\nIf it is rigbt for these closed cases to\ntry-and especially to agriculture-in\nus that in the last 5 yes re the tax hand\nrevise and extend his own\nbe opened up, why did not the committee\ngroting to be from ab attempt to trime\npan, as August a from the din-\nof Unde tan base reached down into time\n(Mr. MICHENER asked and we the\npermission to revise and extrat be th\nremarks in Line\ntering in a separate bill on the subject,\nabout & deflation after this was is over.\ntrue whirts I have the hear to represent,\ninformes, pay envelopes. and other prop-\nPvt. Cirarlei 11. Run. ni Misbawake,\nmarks to the Racoxa.)\nMr. DODORTON, Mr. Chatrman, I\nand give the membership of the House an\nBut that stlempt will not certainly be\nerties of the American people to the a\nreportanity be look thoroughly into the\nelemger to the extrat that - permit\nInd, via with the American Reventh\nMr. ENUTSON. Mr. WM\nyou 5 minutes - the gettinmen from\ntent of changing our tax revenues from\nVegula (Mr.\nmatter? Way Segistate on the la\nas Inflation to take place DANF. Purther-\nArmy in Brdig. He en then confined\n80,000,000,000 a year 50 $43,500,000,000.\na minutes to the gentirman Imp Dilla\nMr. FLANNAGAR. Mr. Chairman, I\n. tax N. Are - about to put through\nmore, the Government Das taken the No\nla a hospital effective term malaria and\nwinder who was hurt let taking that\nfornia (Mr.\nun discurted over this tal in more ways\ningisiation by tacking ft. ento a tax but\nspensfulity for determinime by and large\nshell On August 4 be write his\nadditional $18.000.000.0007 I believe for\nMr. HINSHAW. Mr. Chairman, 1 de\nRan state\nthat # would be trapossible 5 put\nthe leni of income of almost entry single\nfamily: anying\nthe mont continue to consume\nnot intend to take the full 5 minutas by\nin De Cril place, I - straid that \"\nthrough If considered independently\nperson in this Nation As Img - that\nDevice PROCE Augoni way the\nfood: où doubt they continue la buy\nany means. I hope an one will terrodar\nus dodging mir tax responsibility.\nafter fine and open debate and with the\nis true, W have , corresponding obliga-\nand known - in the passe, and cument DA.\nclothing-st least what la available to Le\nme . fee minutes to express my gratitude\nUnier the tax ыт passed semetime 94%\nright to sevent?\nties to - to it that the they\nThe: family tel the better and that\nbought-but I believe, Mr. Chairman,\nfor this moment of vindiestion.\nin formate tuillione of dollars and DOV to\nMr. Chairman, because this MD con-\nrepeire to ant defiated or directed in value,\nunfortumate incident, that buri. to Itself.\nthat more than any other one group in\nA. use over a year BED when VE ven\nrisponse La the demande of the President\ntaure title VII. I cannot note for it.\nwhich 3% what will happen to the extent\nFollowing the publicity\nthat has been hurt by this ex-\nconsidering the conference report un the\nand the Treasury far a will that would\nMr. SAUTHOFF. Mr. Chairman, will\nwe permitt inflation to happen.\ngiven the incidente relating to Lt. Ora\nreleave tax program, our religious and\ntax bill for which I had previstally FOUR\nproduce ten or eleven billings of dollars,\nthe gentleman yisid?\nThe mased I think the tax bill sheuld\nGeorge 11. Patton, 21, to the last several\ncharitable institutions have been hurt.\nthe conference report came into the\nMr. PLANNAGAN. I yield to the -\nhave - written from the standpoint\nw come in wus a hill estimated to bring\nhours. this funily bas made known the\nIL her bein the endowed colleges, the\nHouse from the Benste etat\ntn - $2,000,000,200. Do not furget\ntheman from Wisennair.\nof Um real need of wartime revenue of\ncontacts of that lister, Of roune, they\nhospitals of America, the orphanages, if\nla now known and what sas then knows\nMr. SAUTHOFF. The geutleman\nthe Nution on the une bard and the d-\nthat #: are spending billions of dollars,\ncruld not help but fell as any American\nyou please, and the churches of America\nas the Victory tax. 1 believed that us\nthe ester part of which - are borrow-\ntrom California (Mr. and the\nversion beteren the potential supply of\nfather and mother would feel ever such\nthat have taken the brunt of this cui in\nwas the most unworkable, the most acts-\nlag. and that some day we have en un pay\ngentleman trom (Mr.\ncommer goods and the trums of the\nan Indident, but like every other Ameri-\nthe national Income by reason of cur tax\nthing you want to call It, phone of\ntack every cent we terme. The time, in\nobjected to any I wasted\npeople - the other is tariefy at fiellows:\ncan, their parament thoughs LA the\nprogram.\ntion I had ever seen and I had the Light-\nby opinion, to Increase taxe la when our\nto ask the if they tells that the valdier\nThe coly real ACCIPT to inflation, since\nearly and successful end to the war.\nIn 1942 the contributions to réligious\nBy, with only une ether Member of the\nshe ⑉ drafted into the active had\ninflation - & mountary problem, is to\nperple are making maney, as they are to-\nIt is with considerable pride that I\nInstitution were the lowest on # percent-\nHouse, to vuse sgainst it. Two of the\nthe right to represtiste?\nremove the promize upon prices. The\nder. and can stand the additional bur-\nread to you, Mr. Chairman, 4 statement\nage basis in the history of America. In\nmost affable gentlemen of the toursa\nAre we meding our responsibility\nMr. PLANNAGAN. The charge was\nway to remove the pressure on prices to\nwhich terms issued today in Mishawaka,\nthe is will be still lower. An unfor-\nestate who preside over the destinies of\nas representatives of the penple, when\nmade have yestertar that in paying a\nnut fundamentally by setting up so\nInd., by the father of this young soldire:\ntunate thing happened when are passed\nnur words approached me following that\nthe Treasury neude maney like 16 DEFER\nwe vm suicing the address bnys\no. P. A., pot fundamentally by partng\n1 but na personal fellicas agust Date\nthe withholding tax-something that\nvote and asked: \"DA you vide grains.\net before, br fungiving billions of dellars\nnot only do the Aghting trus to DAY a\nsubsidies-Use an mond-best arth-\nend Patien. If for la a god man, $ they\nthat Victory tax?\" I mid. I did.\"\npart of our tard an. I am worderlag\nude that you have to use if you not use\nviolated L principle song established in\nto we or in the tirst tax bill, and then in\nmy, les's keep him. We need ged nan\nAmerira. We have always held that IS\nThose words went far and wide me\nProvide tax 6 request from our Benetary\nshall the anldier boys are going to MY\nthe fundamental funds-\nI - willing ta let the FRAM Peri M M and\nthe country and this gentismen was set\nof the Treasury for a we providing for\nwhen they come back and find that to\nmental method - to write your tas law\nservice of an Individual's Income If an-\ndrip the while thing. and get - with 104\nbitterly condenined at home That -\nthe drst tax bill we forgave BIVID or\na it does the job, That 130 the burden\ntributed to religious and charitable Instl-\ntre se cleven billions of dollars, bringing\nwar. I want to make 4, deu that - ale\nnot make public the letter true Choise to\njust before election and una of #\neight billine drilars, then came sims\nof my testimony to the committee seme\ntutasa was eximpt from taxation; but\nto a bill for only $2,000,000,000.\nfriends and political appoints stated\nwith 5 sur providing for recegnitiation\nveti MP. I advocate then a program\napine. the promá: ciberaise, - sould have\nconsider the individual-and there are\nOn resterday, when the autoridy will\n\"Hrearaw has voted against victori by\nof contracte that will probably on the\ndifferent from the Treasury grupaial, but.\nmade it polu trag age All is MM, \" sept\nmillions of them-whom acte Income is &\nYOU before the House, the argument was\nvoting against the Victory tax Not,\ntaxpayers $5,000,000,500. Are are ask-\none which would have gleided about the\natlent steut the while affair until a man\nsalary to the withholding tax\nInto that, in paying we were\nor the Incident TM marie in the new\nI find that the noble Commiller a Wath\nMoy or addre boys to ert enly do the\nline them - du the Rabling and the a-\nname emount et INTERNE to belo par -\nIn order for them to carry on paying to\nThen \" falt that - abouts interes the\nand Means, the Treasury Department\nBehing but to DAY a part of our tood bill\nins alou? I wonder.\nfor this sar.\nBouth Bend Tribuse of the Inter - had\nthese aplendid Institutions they must pay\nand everybnity in the Unital Staries\n(Mr. FLARRAGAN sucked and was\nBriefly, the figures are as InDiews:\na tax on exempt Income and then at the\nas will While I thought the argament\nreceived trum our en We doo't want to\nend of the year file a. claim for refund or\nsereer that is EM a minerable tax a\nand demagogie, to forgtving in\ngiven permission to revian and estemé his\n$136,000,000,000 of income paid out, KII.-\nstand in the way et & if Clessing\nthe fint tax hill and in this tax bill esir\nown reserto to the Recreas.)\n000,000,000 of personal taxes, leaving .\nPatien.\ncredit spainst the United States Govern-\nstart with.\nI therefore appreciate these les unl\nMr. DOUGHTON Mr. Chairman, I\ntotal of $115,500,000,008 of spendable m-\nment. The result is that it is making a\nname the Treasury two of the ten or\nThat Mr. Chairman, a the kind of\ntime billions asked for, I - not - (er-\nyield 19 minutes to the gentleman from\nname in the hands of the people. turt\nInmindous inread upm the Income of\nmontents of visidication. The vided\ntax is repealed by this Bill. D and\ntain that the segment cannet be ad-\nCaltfornia (Mr. Vocami).\neventy distributed, of It distributed\nstuff of which Americans are made Let\nthese spiended institutions\nthe Army handle its own problems and\nnot have been enacted in the first plan\nMr. VOORIUS of Caltfornia. Mr.\nto the people getung fairir good incomes.\nI offered & bül to the committes which\nvericed that in purming mach a are ve\nlet us get on with the winning of the\nMr. Chairman, this bill we are - Mr.\nChairman, the remarks of the\nM the name Ume, the en-\nwould provide that an employee may no-\nare fording our bese to both the Eght-\nwar.\nsity NA imployer of his anticipated non-\nsidering today will please no -\n- and the parting.\nfrom Virginia, via just addressed the\nsumer goods we can produce will be 500.-\nMiss SUMMER of Elinois. Mr. Chair-\nand Mrs. John Public are entation to a\nCommittive. culline une of the reserve\nif we continue to produce for\nat the beginning of a taxable\nIn the around place, I do net Valok\nman, will the gentleman sield?\nyear and have that amount subtracted\nsimplification of us returns. Il y -\nside VII, which provides Aur the remago-\nwhy I appaied . closed ruis en this MI.\nthe wat, M. of ocurse, - - and will.\nMr. GRANT of Indians. I rield.\ngested that the Ways and Means Cop -\nUnlian of war has any gúace\nFirst of all, may I say that my regard\nWe could raise more muney by taxes,\nfrom his vase at each pay-roll period\nMiss SUMNER of Illinuis. Would the\nbefore the withholding tax was applied.\nmiltée take a long vacation - -\nin a. tax au Why? Wall, les - will\nfor the embers of the Ways and Means\nI believe, and 1 thank - mught to It\nThat prioriple has the support of the\nsidering new forms of NO shall\nJua why, A tax NEI has te be bronght in\nCommittee to & very sincere non and mtal\nwould be hard. I know II world be tard.\nLeil - the date of that Ind-\nmay be able to return user\nWeder a clound Tule. This is accuracy La\nam going to say to criticiam el this NO\nI agree with everything anybody and\ndent?\ncolleges of America of practically every\nI are sure they will all understand. I\nabout its being hard But this is . hard\nOrder to prevent amendments that would,\nRegraded Unclassified\n10072\nCONGRESSIONAL RECORD-HOUSE\nNOVEMBER 24\n1943\nCONGRESSIONAL RECORD-HOUSE\n10073\ntime, the hardess time America has ever\nequidable all the was along the\nvided be de the la single and has\nknown. If we had that kind of 6. tax\nthat, bot I would make It to accordance\nwith the ability to pay. After all, It la\ndependente and makes $1,200 zu 7th as\nI so straid of the siability of this\npointima are Sire - to npiration of\nBoddey\nMilers\nprogram, than 6 bill such as was enacted\nor less.\ncountry uhro we were spending $4,000,-\nspartment how office brildings, and other\nEyme\nReferse\nFraning\nmore per year than we were get-\nbusiness which disnetily occupate with mêi-\nhoustricks\nStreets\nby the House yesterday would not neod-\nnot true that people with large Incomes\nIf the individual la single and has as\nuna in tram teration, Now when we are\nVituale and orporstions required to pay\nMis.\nHeide\nProduct\nsarily result to Docting prices MA because\nde not spend is, 15 to not true that people\ndependent be would be if be\ngending $40,000,000,000 more per year\ntaxes - - derived from the ques-\nCarine\nRamped\nOder\nthe preseure topo prizes would have been\nwith large Incounts do not contribute to\nmade $1,500 at Ins: If married and -\nHolders 7ML\nName, This\nan inflationary demand for goods. Ther\nother dependenta, be would le charge\n(batt R are gettins in from lazation, I\nThere reserms are alward if so attrogt\nCharges\nJackson\nBant. DL\nremoved to & great estent With & 200-\nChampion\nJarman\ntas program supply and demand\nif he made 61.500 or U be was may-\nII to Umr for Congress to Ughten\nshould to made to apply them to Inbor -\nD.\ndo. Everybody does, except that group\ndocument thet.\nHortern. Ps.\nam beit and bring to . real vartime tax\nand unless - ultering mothi\nCullen\nJohnson,\nBngin. call.\nwould generally balance and much more\nof low and fixed income people who were\nded and had nos or mure\n@\nDas behind the reserved the interpresting\nDrave\nJune\n-\nfreedom could be allowed in the whole\nforgetten by the House on yesterday.\nhe would be exempt If be made 12,400\nMr. DOCGHTON. Mr. Chairman, I\nrush language In the - - under-\nDisartery\nSm\nMr. DISNEY. Mr. Chairman, will the\nor lest.\neconomy.\nsland. why later registrations with net -\nDo\nEn\nPr.\nPeople cannot really save the Income\ngleid such time M he may delire to\nDissen\ngentleman yield?\nLet us MM exactly what this Thease,\nstuded in the in SMITH III.\nEnds\nOur\nMr. VOORHIS of California. I yield\nA single person making $1,260 ce less\nthe sentleman from Louisiana Liver.\nDUUDA\nKennedy\nBelth Fill\nthey are receivise now except if they\nWe fully that - & - rishe table In\nBaton\nExit\nStyder\nsave it for expenditure over long perioda\nto the génilaman from Oklahoma.\nwho but had net as much as - 20-per-\nBaneral.\ngranted for the consideration of this bill\nElbren\nMr. DIENEY. How would the gentle-\ncent increase in tala earnings little Jan.\nMr. BROOKS asked and FM given\nthat Party little as the diss stout in when the\nPer\nBlue\nfitarpas. A/A\nof time. I think en expansion of the\nancial-security program doold be pro-\nman make an equitable tax 00 abality to\nperminium to revise and extend his re-\nNome modical the vol. trus nevertheise -\nFirst\nElgin\nUnited\nunry 1. 1941, would actually noin &\nwus to impostically register - print\nRistu\nvided for with long-term savings of a\npay where the variation between Incomes\nyearly ruise of $147.10 in bis miney, or\nmarks in the\nspárai - us\nPopirty\nTaber\nMr. BROOKS. Mr. Chairman, I veted\nPum\nemployery nature 80 that they would\nla so grant under 45,000? A world of\napproximately 81325 per month,\nLamberiem\nThemas M. di\nthe murning for an open rule to the\nBluevely yours,\nPuller\nThomas Tec.\ncume back to the people gradually over\npeople are not making any more now\nIf a person with one dependent TM\nYes\nParent\nbectime of this bill I am opposed to\n-\nTitlets\n- period of time M they faced the zon-\nthan they did prior to-the war.\nearning $1,500 and had received less this\nPronidest, American Admin of Labor,\nFurling\nE\nTodas\nMr. VOORHIS of California. That ta\na 20-percent Increase in his Income since\nem/ of the provisions of H. R. 3687 and\ndate\nMartin, Milem,\nTrucaid\nof old NET, 18 health, and\nThe CHAIRMAN. Under the rale\nCallegther\nMains\nJanuary 1, 1941. the would actually -\nin ardiv to obtain a. separate vote on\nViram, Ga\nas\non,\nright.\nI do not believe . proposal such as the\nMr. DISNEY. A grant many are mak-\ncelve $131.50 for the or - Increase\nthe sections, an open rule was twoes-\nunder which the bill is being considered.\nMay\nOwn\nMarritt\nWalser\nof approximately $10.55 per month.\nIn the vote this morning, the over-\nst the conclusion of general debate the\nOllintie\nMiller, One\nWeise\nTreasury made would have worked, for\nIng musts more.\nmajority of the House Indi-\nbill is considered 5.3 road, and anted-\nGirlsis\nMiller, X\nWype\nyou would have had great refunds right\nMr. VOORHIS of California. That is\nA person married with not other des\nmanta may be offered only at the dire-\nis\nWhetchel, On\nnated its dedre for a clased rule which\nafter the war. Ithis that would have\nright.\npendents, making $1,300 per pear under\nGrant, Alm.\nWhitten\nbem o dangerints WAY to do 11, because a\nMr. DISNEY. What formula would\nTO adopted As à result of this action,\ntoo of the Committee on Wage and\nMursity\nOrwn\nMom\nWingtowerth\nthe same circumstances, would receive\n11 MEYES THI curdul purpose la continue\nMeans.\n-\nNome\nWilliams Pm.\nlarge part of the value ni these refunds\nthe gentleman suggent by which tax reach\n$115.95 for the or $0.65 per month,\nMr. DOUGHTON, Mr. Chairman, I\nName\nthose who can pay, and not burt those\nappailtion to certain rections of this but\nExcess the\nwould almist surely have been\nA perma married and with time de-\nO'Brim, T.\nWhether VA.\nwho have not had any bigher Income?\nand in voteng the membership of the\noffer a committee amendment,\nBATTA, 7a.\nO'Latry\naway in a brief but violent post-war in-\npendent, making $2.400, would receive\nHouse must accept or reject the hill in\nThe Clerk read as follows:\nMari\nfistion\nMr. VOORHIB of California. The\n$165.10, or $13.75 per month\nwill I liave smaht this time menty to\nCommittee sissedment deved by Mr.\nThe SPEAKER. Do this mil call. 205\nIn this whole problem Congress has\ngentlemen asks me that question when I\nNaturally, the more dependents the\nmake plain any position m reference to\nDocument: On DAEP IF, to the third -\nhave maybe & half minute remaining\nMembers have anreend to their tames,\ngollen itself fairly badly confused in the\nless they weeld receive by the exemp-\nadoption of the rule under which the\nof the table, states got and learn\nchanking. On pesterday the debate ren-\nand when I have promised the Chalf-\ne quorum is present.\nman that I would not ask him for any\ntion. The highest flaure of $13.75 per\n\"28181\"\nsil ill being bandled.\nOn page 16, Use a before \"Berlian\". bant\nPurther privatings under the call\ntered around the question of infistion.\nfurther time. ao I shall do a thing I ordi-\nmonth for & man, wife, and one de\nMr. McCORMACK. Mr. Clairman, I\n*(a) la and - - ST, aber\nsere dispensed with\nThe majority voung for the bill perfer-\nparily would not like to do. refer the EVD-\nwould be less than a 10-percent 280M,\nare in receipt of & letter from William\nline 1, teans the\nThe EPEARER The question to -\nday contend the people all bad ample\nwhich you ean plainly - world -\n(leman to my testimony before his own\nGrent: president of the American Prints-\n\"(b) Textile pars to which applicable:\nto the amendment.\nbuying DOWER to stand sharp increases in\nwithin the Little Steel formula.\ntion of Labor, protesting against the pro-\nThe conditions nais by subsection (A) tn-\nThe emendment was agree! to\nprices. On today debate bM centered\ncommittee, where I attempted le outline\nhow I would solve that problem. He will\nThis would help the\nVia/ca of section 112 of the pending bill\nactor MI = relative to that graphile shall TMI\nThe SPEAKER. The question M on\naround the question of the tax burden\nworkers se bear no much about We\nAny views or opintons of Mr. Orden\napplication with perpet to years De-\nthe engrusement and third reading at\nwith Members contending the country\nfind Unere my soswer to this question,\nare always worthy of deep sunsideration.\nglosing after Deminiour n. NO\"\nheard many to the well of this House\nPage 121. line F. striks our \"(4)\" sont (part\nthe bill\nIs bled while. Yet in this but triday we\nMr. DOUGHTON. Mr. Chairman, I\nyield such time as be may destre to the\nany they could not vote for subsidies ter\nThis letter states the position of the\nThe um was ordered Le be engrowed\nrenfranz the one (vodamental measure\n\"In/\"\ngentleman from Florida (Mr. Panal.\ncause they would be really paying the\nA. F. of L. to opposition to sertice 111\nand tead a third time, and was read the\nthat could be taken. the me effective\nMr. PRICE Mr. Chairman, I have\ngrootry bill for the rich M well as the\nIn lbe event the Beante aments section\nMr. DOUGHTON. Mr. Chairman,\nunited time.\nmeasure that rould be takio in combat-\npoor. Now we have & proposition bn\n112 , manner satisfactory to the A. F.\nthese are clarifying that\nThe SPEAKER. The question is a\nIng inflation As I suid - moment IMPO,\nocotinually tried to help the white-collar\nthat will help mly these who are\nel L. I know the contenta of this Intite\nsarry et the Intent of the committae.\nthe pumps of the Mn.\nunless that measure, courageous taxa-\nworker, and If Unite had ben so upen\nrule I would have offered the following\nally suffering, and I believe We will all\nwill receive the regulderation of\nThe CHAIRMAN. The question la co\nMr. GRARHART. Mr. Speaker, I offer\ntime, In taken se are forced back on Inter\nagree they need help.\nIM Bise conferees when the bill la tm\nthe committee amendment.\na mollsn to recontamit.\ndestrable methods, methode that are not\namindment:\nThe committer amendment vias agreed\nThe SPEAKER la the gentlemin op-\nas effective, methods that da employ a\n& part 2, line II, of H. IL 2017, Introduced\nI hope we will find nome way to being\nFenure or\nto\nposed\nto\nthe\nbill\ngreater digree of governmental control\nby Mr. Domanes, chairman of the Commit-\nthose who are really bearing the houriest\nof the economy. But we have to use\nburdens on the home front. To exempt\nWashington, D. Nownbo 22, THE\nThe CHAIRMAN. Under the rule, the\nMr. GEARHART. I um appoied to\nuse on Ways and 19, 1949.\nthem from paying en treome tax would\nBin June W.\nCommittee rises,\nthe bill. Mr. Breaker.\nthem methods if we do not effectively\nREVIEW out the erilion and add the following:\nof Representative,\nAccordinaly the Committee ram: and\nThe SPEAKER The Clerk will 20-\nuse the Fundamental one. Generally\n\"De 4 primidal farther, That on individuals\ngive them a raise that their employers\nvisa por name for the tasable your to\nParkington, II. c.\nthe Speaker having resumed the chair,\npart the tankies to recommit.\n(pesiting We have to have the O. P. A.,\nhave been unable to grant. There would\nMY Data Commission: I was to direct\nMr. Gout. Chairman of the Committee\nThe Clerk read all follows:\nbot para than 135 percent of bis grom\neubaides, and all the read, for the simple\nbe no color of B dale stiached to this\nyour to amision 111. as pup\n- for the taumble year beginning in\nof the Whole Bouse on the state of the\nM: GRABILITY moves to exemmit the\nremon that we have not passed a scien-\nrelief and there would be DO expense et\n43, 5 IL a lhe tax bill new pending\n1941: And provided further, That be has no\nUnion, reported that that Committee.\nNO R. n. sear to the Committee on Ways\nHão and effective Las program.\ndependents and that tita - Income for the\nfar as administering 18 connerned.\nthe United States of Impro-\nhaving had under consideration the Mil\nand\nAs a matter of actual fact, from the\ntablité par la and - #1,200: Provided fur-\n(Mr. PRICE asked and ess given per-\n(H. R. 3637) to previde revenue, and for\nMr. DOUGHTON. Mr. Spruker, I\nmission to revise and extend his remarks\nThis section requires any organization,\nfigures I qualed a. moment ago I can\nPlanty That an individual who has one or more\n10 . first enteptions, who are esempe from\nother purposes. persuant to House Jun-\nmove the previous question on the\npoint out that the amount of Income\ndependents and that bis given Innume for\nin the Recome.)\nmader exction BI. to the so antrial -\ndution seo. reported the same bank\nmotion to recommail,\nreceived on the afters by Amer-\nthe texable your la not liver 81.500: Provided\nMr. DOUGHTON. Mr. Chairmail, I\nfirst, stating specifically De - of goe\nto the House with an amminiment\nThe previous question was undered.\nloan families today is about $4,005,\npartner, That en Individual who hM a bus-\nyield 2 minutes to the geotleman (mm\n- holps, and\nband or wide. and no other dependenta and\nadopted for the Committee of the Whole\nThe SPEAKER. The question is on\nBut it is by means eventy dis-\nthat bis pm Innome for the taxable year la\nOklahoma (Mr,\nOil, CREW 24 of Be committee report = the\nThe SPEAKER Under the rule, the\n- your allimiting to directed to the questi-\nthe motton to recommit\ntributed of course. Pillson million\n- one 81,800; And provided, That 4D tab-\n(Mr. MONRONEY stated and will\nthis revices for requiring these\nprevious question = ordered.\nThe motion to recommit var rejected.\nfamilies receive lesa than $1,000.\nvideal who has & bushand or wife and une or\ngiven permission to revise and estend\nMr. PRIEST Mr. Speaker. 1 make the\nThe SPEAKER. The question is DD\nSome receive, of course, high in-\nThere dependente and that this por income\nhis resparks to the Berms.)\nOnter exining tax e large of age-\npoint of under that a quarum is not\nthe passage of the bill.\ncommis Total Income to persons who re-\nfar Use tadable your la not are 82,400, and the\nMr. MONRONEY. Mr. Chairman, 1\nMiller enjor 100 exemption end daty of\npresent,\nThe question was taken: and on a\ncative in excess of 45,000 of indocre in this\nprovation shall prevail (that is each cast\nIntend to vote for this bill but I carriot\nthis - pot required to the information\nThe SPEAKER Evidently . querum\ndivisim (demanded by Mr. Hers) there\nsountry amounts to one-fifth sa much\nmember Individual's Income shall be 120 pro-\nest of 5/8 por Instime for the tatable year\nvute for It without first sayure that T\nminima\nis net present\nwere-ares 200, boes 37.\nas Lhe income received by people who get\nTo Total come la the attention of your\nMr. McCORMACK. Mr. Speaker, I\nBo the bill was passed.\nless than $5,000. A good deal has been\nbeginning in shall not be eubject to\nthink 12 to a wesk and faint-bearied ap-\n1 that the of these exempt any\nthe tax Imposed by Utis shapter for the TRE-\n- and organizations are disnelly our\nmove a call of the House.\nA avotion to reconsider was laid on\nmade of that point, It has been said\nable year, if the tatable year begins price\nwartime tax bill 1 think It M work to\nprosch to 5. real.\nPibe with companies required to par In-\nA. call of the Regre was ordered.\nthe table\nthat mer tax burden on the people below\nto the firmization of bustilities in par-\nextire of the amount of\n- taxes, and that 153 ginanties is become\nThe Clerk called the roll, and the fal-\nGENERAL LEAVE TO EXTEND SEMARKS\n00,000 is not commensurate even under\nNELS var, M pronlaimed by Line Preddent.\"\nthe Treasury proposal. 1 do and quite\nrevenue = provides la relationship to\nby - widnepread and afforting . -\negree. because after all there are 38 times\nour expenditures in this year of the TAB\nAde - tax mains and avoidance,\nlowing Members failed to answer to their\nMr. DOUGHTON. Mr. Speaker, I ask\nThis amendment simply provides that\nThese organizations - originally give\nnames:\ncomment that all Members\na person who has not received m much\nI think 11. la faint-hearted beaut think\nthe tas exemption on Ue therry that by\n(Rell Mr. 185]\nmay have 0- Ingistriative days in which to\nas many people getting incomes Tesa that\n60,000 M there are those getting more\nM a 20-percent Increase to Inter Income\nIt marks another congressional petrol\n- But operated for profit, int that\nAlien LA.\ntuen\nBelien\nextend their own remarks an the Tex-\nthan $6,000. I would make the tas pro-\nsince January 1, 1941, shall be exempt\nin action \" shmuld be to or\nen Date procesda toured to the twnefit of\nMass\nBeyata\nendo at\nfrom paying a tax on häs income pro-\nto hold the line against Inflasion.\n- Bower, many ut these en\nM.\nI\nNo. 102-0\nRegraded Unclassified\nA5468\nCONGRESSIONAL RECORD-APPENDIX\nNOVEMBER 21\n1943\nCONGRESSIONAL RECORD-APPENDIX\nA5469\nsur extradad by htm - mail MI that Non\nvide similar definite responsibilities of\nAmericans This la the great Brown\n- extel = the any had not Invoices\nmilitary expert. 1 have policed\nUnited (laimi tenn to 54 M\nto surging the\nWe have tried promises to doare. We\nund the radio. The collining perspação of\nin you - . milliary - - . nate\nsanda spres through al - Borga\n- . negister - any original un the whole\nhave premises net to up war. We\nIn both justice and aquity 4a this\n- is the with entently classed.\nof the Noon Appropriations Committee taxe\nin Palmitine who base base pleading The .\nchange to Chete - be have bern\n-\nof people, 1 have Interested II. R. KITNS\nArmy\nhave time TRAF vosid strugs hugard them\nrelate for every dillar the Anay in request-\n+d. resitsing any desire in be et the -\npreventad time - edge - of political\nCommi Format med the not to with was\nM scrept of paper.\nwhich will permit them to receive in is.\n\"De bolders be vied -\nconsiderations. au - - this - -\n- TM ENT them WILD the materi fortest\nbelied - of Its - bettle leaders -\nmanda of and withe military\n20 was you get una m/w AME you ENE\nThree respect strength. If - temp Amit-\nImi and materials - high limite of\nthe salary they were drowing as of has of\ncrease of not mom than is Dervest\ncrée of Menicada ut training Italian -\nparret early a August vitue the Ricities vaci-\nI frei that - have a great Any, kind I want\ndiem wanting cery tu expeciation and\nthere Ent. If you base all\nestd 10 any so (to belly-\nfoir nor follow mrs. there will be an\nary 1, 1941.\npaint - at e etital period. Patien, -\nIL to continue to be great and wells discriptiond.\nmest IL makes to BAR of alles of\nN - the withing\nI do not have a personal with\nClines - milline of Tentaes who might\nHe - partially right. Totay's service -\nsur\nThis is in keeptog with the Little Mist\n- the writed pating - - the\nGeneral Pattern, trus I have - reposited-\nbe PROTEMC. 21 make - una of the tax\nIn . - age streugth drjesti -\nen a of sill.\nformula as applied to\n- and with Vona, this be\nIty to our - - - in uniform, - -\nthat Canada and - - of the Drive\nMiler la to Security na\nMAC We world be pain simple If we used (III)\nthe MD without prevision to 15a\nmediately, It a Urgent that this till be New in\n- upon . withing en . at with has\nas to the Dathers wid mothers of our country\nDate no drati the arrica\nhas into nie being aus - be use\n- - will this est end willted any from\nind in LM liands, verging.\ndefenders.\nAND that CARADA, within the pairt 4D days, -\nBothing is en into them\n\"In rigity to Patter's qualico - to visa\nI wordd not cast any IVA the po-\n- past of be Aray with the fall\nThe Anna are beginning la march to -\nreplectment.\nTM the via line, the audier the\nerails passions remit Reporta from the\nof our It nain us\ntury because tois EATE marshaled the as\nWe - our to swithful to that boy on\nquiet - replying It's my I plan\nfighting Increas 100% paior No this Is-\nthat of the fact that the Arma overyti-\n- of the sold.\nthe mini Use who wints his father that be\non stand delling\neduct, General Pesition tad demotatrated\n- were et par by -\npiscued the perfer: evinve against\nhand Aunrima etaleimen would Insk out\nA Buck Private's View of the Good\nwording w the premit the general\nretainding shilling - . but is\nthen\nthe world Like any munder from Caley\nTHE the acvil butter of future Americans\nPatton Incident\npart into & rap. ass, employer\nsticuld be circus that Visa unprovised at-\nis main de thing of all - Childes -\nto Livergin 154 cream -\nIf - jel. tum comp home to 8. Nation without\nprivity, calida Que midier a. and and\ntask que . primate anlidier - distroyed the\nin begin to worder. We wonder LE the Ind-\nBOX data) name mission\nEAR Tur be store and pr for bis or. We\npaire billy and other epithela and ordered\ngeneral's as . of the\nes of a Amy may have our\nwho to suga & mechanized was withints -\ntermitted have divuble-crumed that boy if we\nSPEECH\nin the to The same attracted\nSevent Any or any other division.\npents - they did. our Besocial\ntime el time world's ml.\nbill Intim FOR - in a Nation that via -\nOF\nerror persies, indiving the commending\nIn stew of the wide and goblic-\ncards, We if very other postitity\nThe Aller greatest stroke as - - to\nsmont poor because II did not non of\ndire of the baspital. the doctor who had\nIts the brident the received I de and -\nof hilling sur mandoem member - -\nspoit the AATI Addition bird and in\nThe leaghed at President Wilson in-\nHON. JED JOHNSON\nthe sed . -\n- st to suggest that Ost-\nbaurted fathers were called: We wus-\nMother Beture = cur side, Our bundred\nESTIMP the Unied Blaim was unit.\n\"20 a 51 of Pary Patton struck the middler\nPatter - mind of his libe\nder If the Anny. - # la - -\nOF\nvictane, all ISM at 40 before or\npm Prouklin D. the \"he\nin the HAT of the hand en the back of his\nmediatriy.\nadder copy milliary sepects, standar - los\n120 above INT. and потала prodeum\n24\" Deceitive the United States was work.\nin THE HOUSE OF REPRESENTATIVE\nThe (a) ever signtly, and .\npours,\nsubjected to same sivtlian superviso. And\nestant B protecting the patient, made\nder\nlastly - worder and - without vary MY\nprotura MI besting Enter to Tue know.\nExt us nime que risk the los et liberty\nI the hundrede of of\nWednesday, November 26, INI\nOF toward aux - pullet tarit by\neasty, whether - view of Mos premas mill-\nand the - of American lives bene Acter-\nlegal Americana surbing in the ell industry\n, destitt. The commander of the hospital\ntaily situation, # Whaty were et the nom of\nlice M with Let - male forever on the\nThe House in Committee at the No\nIn See in in These ⑉\num Intervement.\net et fatherines chil-\nwith of America's President pleating the\nHouse on the state ot the Utile bad lide\nCelternir, to the high MIA - - them\nThe cuil in bigh temper, Ind ether\npeáce will - respected because America is\nThe Drafting of Fathers\ncom at the cost of economic chow, will\nemalderation the - (If R. (MM) e -\nsictime est sinesting state and distry tag-\nand for uther purpose.\npatients - views, then whine to beste\nIndimed las & victory. It to to think\nprepared. Bezue Aderica has an sibiguate\nexná trum Long binin. the Home\nthe again. the addies\nabout\nenglish of natures\nand with all and min all Day\nAll I en these and American Mord is\nMr. JOHNSON of Oklahoma, Mr.\nsuperved berk offered to return to the\nEXTENSION OF REMARKS\nattes day. month wher momb. person after\nChairman, I have missd the indúpso\nand trud. to galm. his feel a Pailim\nor\nnowage in Asia. in Bunge and e the enen\nyour they tam fought nn. As and\nof members of the Committee at to\nleft the haspital without noking Date to-\nThis very primest man with exping\nof the case.\nHON. ANDREW C. SCHIFFLER\nDirt Farmers Reosevelt and Margenthan\nsustoms they same risitted that that\nworld are lying in hom und - Date\ntime to read 6. letter I have written a\n\"In - Inter americated that the midier\nand the seys true their - in\nor way -\nUnder New Farm Labela\ntent Since I tepus to spenk many\nour popular and able Chief at Staff of\nlast been disgnosed - a medical car à\nen MICK, to tanks. and fn plazas\nbee widows and arghana have been created.\nthe United States Army, to which 1 to\nintere the hospital but be refused\nIN THE DOUSE OF REPREMENTATIVES\nChat might fall le lack of - and off. They\nAll this places a heavy debt on our two\nis my painful duty to discuss the General\nto - the - - be finally - ordered\nEXTENSION OF REMARKS\nhave that fallure smild mean delhi to them.\nOurs the text that DIE one of them ever\nherd by his valt doctor ARE Pattro info\nTuesday, November 23, 1943\nbechage the las of the perhaipe\nPatton Incident and request that in visa\nfalls us the future the inst et the bod or\nof the wide publicity given same, the 415-\nthe trapital the mildler demanded to return\neven the loss of - comparen. Without fac-\nMr. SHIPFLER. Mr. Speaker, under\nthe or the bullet or the wespon\neral in question be removed tma to\nto the finat immediately, but no food to\nleave to extend my remarks in the Rec-\nHON. HAMILTON FISH\nles, without etráin, the min ent while\nDos -- might have given them. Ours the\n2005 - another with.\"\net vil. the at nevers. pour Corrdinator, Mr.\nEME te - that these who return Bod &\nThe further address that doctors\ncan, 1 include the following edilarial from\nof NEW YORK\ncommand immediately.\nIcken. prior Deputy Coordicator. Mr. Balgh\ndémantacy where the peoples' will is dans\nThe letter follows:\nat the berrital disgnosed the pinis the\nthe Wheeling News-Register, Wheeling.\nIN THE BODGE OF REPRESENTATIVES\nK. Davis and his staff have played the gema.\nDurs the lest to rate for the mangled and\n24, 1948.\n- emte malaria and mid be was partially\nW. Vs.:\nBlocking, interfering carrying the will NOTE-\nWednesday, November 14, 1942\nKirein Ours the task tu make\nIng esta sorms formation AR in sight\nDes Deract c.\nw: the time of the givent's in-\nTHE of FATHERS\nficer, prement classier, and\nof the gial at richary, the team pay of an -\nChief of Staf.\nnaw report revested.\nNow that roung nen - all know-young\nMr. FISH. Mr. Spenker, under leave\nuning better\n- mignifictor\nWar Department General not\nNew, Orneral, them facia apesit for them-\n- whole attle children - all - are\ngranted me to extend my remarks to the\nFlatine with et It had. all has called -\nLet on perform our tasta with the ferror\nWashington, a c\nAssuming Una funt-line reporta are\narticlly being abd, IS miss LAP think 11\nRacoro, 1 tectude an article from the\nsea the legalty and the Imagination or our\nData Cereit I NOV saking the\ntrue. I am amend and chagriend st the\ncake think man more durply than when\nWashington Times-Herald of November\nmy That has CIRD a. newry drain\n- who an Buss and way Jaga to knep us\nliberty of writing you with regard to -\nAbdement that General Patten is still in\n-- - the proposed drafting of\nen our Vireigth für the activitie\n24, 1343, toy John O'Demnell, based am\ntrum eppresation.\ndispirable indident involving 11. Des One\nof the Seventh Any. and the\nfathers the - punsty objective manipoint.\nIn making that America - -\nfurther statement that the to closed.\nseme remarks I made in the House of\nCio behalf of a millico end a quarter serv-\nB. Patton, It., who avidencily in . as of -\nIt M beartreading to . father toro\nneed the some e the all resures et Usa\nwene We Date - für Asia - the -\nframen end of the last war I name\nsussed and struck . - a\nPermit me to any that I and se B. Instructions\ntrom his time and children, but when the\nRepresentative yesterday concerning\na hospital sens in Bicily taxi August\nprimite = Progre for more than & year with\nLarger mend and remimit argerta in -\ntwo of my distinguished restitements who\net of Whre Une treate of penne is\nour pindes to BRIVE Out and outry uness\n- it must key she hall in Discing the\nBluer and Birthille an burded in the ruins\nI have med - number of accounts of -\nthe Thirty-ends Division during World War\nattend, the etation excede the party per-\nhave bitherio claimed to be dirt farmers\nal at a the because of the nations\nInsident since the story - firm will the\nm. 1, and NEW active service tn the friend\nof Bertin and Tokyo.\nemail and Income ut BINTH comminal -\nbut have Intely been empelled, through\nwell-known radio LAMIT suide\nI know first-hand of the haurum and\nO. P. A. restrictions and regimentation,\nthat NSDT piso.\n2 have in THE la . Inch Time a have\neventing. The billowing dan.\npata of stielle all about\nWhat with be the et the per\nte change their classifications, cas as a\nof Die cumplay publishint what - suit\n- If the offorts and man to the Brenth\nemilim of children too betwen the - of\nAtention error the www.as % This\nAnny mally know the flurta in commetion\nformater or producer of Christmas trees\nan official Army stairment. M\n1 end 14 am to por to maturally VISDOM\nfather A Charge fait as be -- the war\nwith unfertunate meddent and of the\nand the other as a. horticulturist or apple\nThe Plight of the White-Collar Worker\nthe beath of . bürn guidant What are\nthe tought la (1) . better liting the nis\nfollows: \"General Patter u lbs -\nsed despicable setz of the -\nthe monomic of young una up\ngrumer,\npeople No times mis: \"Wime - whip mis-\nEXTENSION OF REMARKS\nsmith Army, has a until H - e\nNM = qualim, : lesse term parsonal -\nto и years of Ap: bring tom 1937 trum the\nIt is a sad commentary and & VERY bad\nler. I - west Excel to\nexample tu the dalrymen of the Nation,\nactivated and in performing to customer\nthat thry world not went DEL to\nbusiness which they have IMP DUE NUM-\nprotes the EYES of our\nor\n- et their but whether they\nNO ang the by General or \"\nOrgeral Patton - DETET been\ncredit to getting upon their fees? What of\nwho are asked to produce more milk and\nThe Animal legine advicior\nare cause of the trtal farts or not the muthers\nthe no-extied Industries will\nbutter in the was remember. for the Sec-\nbetween Ins and nations to\nHON. JOHN P, NEWSOME\nand fashers et the palment Dada NOTE entitled\n- in which the pung men hild\nretary ef the Treasury, Henry Morgen-\namaintain poste, and la regise agreemina by\nanyone also in this\n- know that their communding officiers eno\nsgrement\ne ALABAMA\nTrusty the country w cold list -\nTot dirperated eyes under auy and all a\nlong podlinns? West of the Grands of\nthat Jr. to sell out his datry herd et 100\nwhich Cate young fathers ace just\nThat poes has already begue mail-\nIN THE HOUSE OF REPRESENTATIVES\nthe general had. not bird -\nHanne to protect them and when humanity\npedigred eilt when the country\nnew paying too. the payments upan visa\n(ary and and attivities et the United\nminded. that Cheneral open de\n- to An NO- Buch insidents might be\nla threatened with a sbortinge of milk.\nRitates and Oral the have agreed that\nWednesday, Nostmber 24, 1943\nme of the ensident with -\nthe young wins MG the # inposible to\nand class with ETT:\n3 intell\nHarrer, the country le skill safe, be-\nthe western Atlantic ent the Pacific shall\nMr. NEWSOME. Mr. Speaker, every\ngenerali dennancios - representative - at\nFORMATIVE Le Misler's anay, tark - In United\nWhen - of thousands\ncause \" will still have Christmas trees\nles by ms and MP wire Anarican\ndars and ordered him to mass de\nRoss\nMember of this House la fully aware and\nE have . boy-a tax wrytan\nof firmides being up. tera of the\nand apples, unless the o. P. A. interferes\nand that the mitero Atlantic,\nbe removed trom no - - - -\nsende of being tena of USED-\nand regionals all producers of Christ-\nand Indian Organ shall the\ndeeply ennermed about the plight of\nthat ereat group of American citizens\ncountry la assured the good Md -\nby trand from Inform who a now MIDIA-\nown willtion.\" The Leave - -\nwhere to the Bungan tigenter. the also m.\nsenda of be being tens of\nmas trues and places further restrictive\npatrolled by Brick Desmand of Mas and are\nThey when any ship or plane enters the\nknown as white-collar workers.\ncording to truns-line - M\nlimits - & buck private. No devist with\nof - being wiged DOE\nregistires - apple gruwers along\nme other Invid - - end else-\nto main - thank a mikm the think of the\nwith all the other farmers. It would be\nwoes B. is anformatically under the bah\nThis concern base been expressed in\nfortherming until the general - The -\nrumment Indientes.\nName M well - the lived com of exitions\nof UNIVERSITA of 1\nunfair and & shame if Forester Rosevelt\nThe representative at Chine Busta, One\nthe remarks 60 this floor made by many\ndo NO NY - of\nfront-line disputations of -\nof «Che trave young offers and - wrs\nare bokting direm and jubs. who\nBriwin, and the United State have at No.-\nMembers.\nevent to have that ne casts meldand will\nprobably be regismo - IV-P1\nand Barticulturist Morgenthau sere\nare agreed that this attangment shall mo-\nThese are the people who are being\nfacts of the incident - - or\nFire - to the future\nIt males us this of thousande upon that\nsgain formal to change their farm class-\nsmoke entire division, the -M -\nofficers and - - -\ntimes stlar the surrender of our ton until\nLet the MIX General Montal that I -\nestada of Gevernments employees was have\nfinations due to further New Deal regi-\nsquented ky the from salaries and the\nthe execution of a toal agreement to\nclosed tor as months IL - VP\nnot now, nre have I ETAI wt myself up, as a\nbeen deferred. It makes un of the\nmentation.\nThat Basi agreement for years must prov.\nIncreasing state et living and higher\ntaxes.\nThere = listle doubt that if gover\nUnclassified\nA5470\nCONGRESSIONAL RECORD-APPENDIX\nNOVEMBER 24\nThe article follows:\nAA We understand is. old Parmer Benry\nMismi la only the falles Gatant A Cass Name\n1943\nCONGRESSIONAL RECORD-APPENDIX\nA6471\nemisld livelip 159 hand # has only bad - -\nCAPITIS -\ncan do at in Ima than - hour, Ang Utile\nand Palm Back have - I city\n- Injulidian by to beep the\nThis - all entrad pora ent other\nmailing and family,\npremint productime que when\ndistimation which barr les estantial la\nBill joi est I have, - that them\n(R) John O'Densill)\n\"Dairying La . namily affair in the DAL\"\ngrounds the the International\na - - is needed por 201 M Che\nyou by the Do sei print elic-\nindia kind if planting pilta un, a and\nIn Done days when Capital BOAR palpitates\nchecked the BARRY - of the Fishkill and\nwhom our teland within dost 9482 your\n- an - required in 1918.\nnutury to delay The monthly\nthat nisim to the Internal excess of Acte-\nwish the true Chrile of giobal thinking and\nThe his with, end absidren have 50 ges\nyears ago the Immigration Runny -\npost-tear planning. It la teartaning to - MG\nwill was all know, - the COML\nles the noble laty, Countes by la\n- name = su AND a 1442\nnturs of RE intrumes la the propez\nla after the WE There ATS the whe for\ndepartment, time - by\na a wither no compaised -\nearnest Congrestion rise in the socient well\nOn that with 12 or 18 area that can\nthis country for them of no -\nA We - and to\npu. If - 10 Xpm in\n= the mise of RM, e by plans to the\nof the - plant the - or two up-\nmain . dairy\nted curing tax trial\nthem Utate which De -\nan emid have continued their ut-\n- - die to - production and to\nwithin must to made esigo\nbilling de of the American people. In fart,\npresent constiturate, - of - and hath,\nWe restitued that If smild be . ME difficult\nthe was to an representation a\ntrue all of the II quan that the\nmeatining the by name and demanding\nfor Merry to jump up from bis Treasury disk\n- de we prigram. KFCS If they tad\nspend the transary time et the\nplan M a Willing car. Rup by sup 6 a\nreilef the the WORK\n5 ========================= and out to the barnyard\nWe believe that this community no the\nAmerican perple will 4PM WILD - Intrie in\n- the repratog direlopmente\nOrnament N and to train there\nbeing jad Into des The port-ear period\nRepresentative Past. Repations,\nM great the Jenery's and Sald\nMia Vuice of the People 00 this - TM\nand - immediately following the\nthe - supme filly\nwith comity tring the frishing finales. The\nof fire York, representa the Twenty-sisth\nHenry andity:\n\"My exighbon have 12. 13. or 30 cow. and\npower that be mest certainly da & Fabe\ndella Was and adversire-\ntime seud be de-\nregistration under the vertine company\nDistrict if the Enger State, in which reside\nthing in amping Card of Pat. e\ntiares Dirgit\nwith in the places, mate the\nto MAY will a the MDS.\nHyde Parks es-tarmer. == activitation,\nThe whole family pitches la and works. I\n- EMMIRIATE DEVELOPMENTS\nRve & imerbing der mide it\npin of Deir plan BAI my\nthese United States, Rev bet a - is the\nour\nFrankile D. Received (sibose distory -\ncan't espete wish that kind of labor. They\n- powers will keep mit the e\nuner et MI darge entititions de\n11 - this internal plan to Am-\nwill \" the While Bowe), and that apple-\nen make - good living that way. I MOT\nName: We don't want him has\n8. Re followed in quick sup-\netc. which have (2) your\nknowled and dairy herdeman of Fishkill,\nThen munagestaly:\n- at the armistion a November 11,\ninformation and min Man sure\nena das 1 WASL ta - will 64 en a\nHeary Jr., greatment Serviary ut\n\"But I en unite . good living raising sp-\nthat - directive in provis required a\nhirty and Expiriciality as I an,\natt. Der surpried was sustrative en\nil tna the pdit of new of the\nthe Treasury use the Into William Wootla\nplas. I've est to make & living I'm going\n- of their their estant, and\nwritten evidentation trail the inputy\nLast alection day Squire of\nGovernment department.\nthat the ICOP to has\nto spend the not of my Its 00 the plan in\nLeasens From World War No. 1\nde works\nDuschess wrote himanit dewn M A. \"Oree-\nand I no make . very good living\nIN and of termination and can-\nFiftz Du not slice Immuel\nThe bage is Bet stilf or priorrupe-\nat the village election broth. andity\nreleing apples.\"\n- a was custrada.\nto\nding.\nles if error with our eyes bount\npassing 9 bis sontent que of dut TAXISAT\nTeam. with o touch of sentiment in bise\nsend The poblem of keping later -\nMath Settle - for the\n» the international ene it an ping to\nEXTENSION OF REMARKS\naverlais is bung data to on -\nbys cheerfully and countries feeing . to-\nhonet farmer's brushteg aside\npayed the reposatibility of the pusi-\nnah of contrair innin at tar\ncentry - the If An-\nture dedicated to the of growns of\nA tear sith to hand. Parmet\nto\n- problem tu more\nand st this each claims WILL la lest in\ntrim is to pay per proper part in wild\nChristma trem.\nHenry game the confident\nHON. WALTER C. PLOESER\nabs security et hand on a large state\nthe billions ni dritive z entiment date-\nafter or sur to kryi strong 400 and\nSquire Recement didn't about 11, but\n\"Every - of those COWE is going to find &\nthat whin in the M\nminstines.\n- Them quities that tam her\nneighboring familiers product waste and\ngood boest. Im enufident of IL And they\na MISSION\nabish via hippen in the future.\nBeventh. Registro mind M premit\nthey per must be present, not any for\ngummed IDAI the sign old AQUITE load picked\nwill be milked, too to you can - there\nup a Int. of Conde knowledge on\nwill to no to the Nation AD for na milk\nIN THE HOUSE OF REPRESENTATIVES\nthe The resigned of burneta procedure\n\"hold-ups en and \"Belage to tar-\nise but de to that if the wirld at\nend relivit the receival of\nmination artisments M up the restrá\nbrg.\ntime not their - from bis study of lend-\nproduction la -\nWednesday, November 24, INI\nreplace id respinsibility and\ngroup for edinauring thre nutters missing of\nh to the persiber and any if un-\nItems and the U. n. A. But anyway. the\nBy as to Gevernment personal, and\nthe Present landency The varima Empa to\nport rubmit, to En need to the VISAL mil-\naquive quit dut farming and that name\nMr. FLOESER. Mr. Speaker, as sible\nlie emiling of all wirld\n- eu creas payment\nim If en instrutional princes la en-\npubed neighbor Pan of\nBt. Legis Industrialist, Mr. n. J. Rund,\ntal born advant e order to make the por\nif the rigina of the people ate Mig\nThis come the titlings from Fub-\nKeep De Marigary Oct of the United States\nvice president and secretary of the Co-\nado of und material the find and 100\nintroduct a the fountrica of the Republic\nes. M the very time when the Engire Brate\ntury Electric Co., in 8t. Louis, Mir, tax\n-\nare being underminad, then # la the lawyers\nFrenth A dew-down - paymente se Des-\nThe Lawyer's Place in as Upset World\nof Amerin who nat n/w the bus and of.\nand Nation Der . ella familine, abread and\nEXTENSION OF REMARKS\nwent me & prepared memmandum e-\nentrecta which with many war can-\nAs 1 FOOL - LT Use only professional\nuld on farmer Heruy has\ntitled \"Lessons From World War No. L\"\n-\ntrisin proited in the stopping of paymenta\nvie fair an caib to support,\npus his dairy herd = far evention and -\nwhich I think la worthy of the attention\nto 4 to e\nEXTENSION OF REMARKS\nand the Countrution, % are the\nnotified be will attick to apples. Menry has\nHON. JOHN M. COFFEE\net the Members of the Congress:\nNE . ta the internation pro-\nsuly class of VITIZEN on = The public a\nbe casting = en et time apple\nput or New Dal tritae Receive\nLessem From World Was No. 1-8am -\nemas with regird to the antiment of the\nmills who table that - IIVE, Purther-\nCF WARNETOS\nBEFORMENTATION\nportima of contrata and Agree-\nHON. JOHN JENNINGS, JR.\nDIE If is 130 anyer who a beil. qualified\nIN TRE HOUSE OF REPRESENTATIVES\n- required This required The EXIASA or\nfor this trit. Be ta a true - Schouled\nDras of Virginia and to has - personal\nOF\nwresing with mother wirth time . la\nin . knowledge et the or eur\nWHAT WILL BATTER WHEN TICO will -\n- to ID mueths for the amatier ver pour\nwill bereafter on ⑉\nWedneiday, November 24, 1343\nExclare wid delaga of e to LB munths to en\nIN THE move or RETRESENTATIVES\n- crim. be de prime what\nplan and to belt with that hundred brad of\n1. If the war =\nMr. COFFEE Mr. Speaker, recently,\nwill study Lhe SHIP\nlego - contractors.\nis gring = breath the startice and stat\nMonthd and\nTuratay, Apumber 24. less\nwhen tvo to wife 21 a the payer who\nthe dirmande for Pastice rataed To-\nto a Miami, Fla, newspaper, there AD-\nImmediately after Armistice Day,\n- CONSTITUES NON SUBAT\nMr. JENNINGE Mr. Speaker, under\nEsidly and visa all\nterritay by Representative Para in behalf of\npeared a striking editorial regarding the\nIL 1916, be will be fortified in has expens-\n: All of the signature which brought shout\neihers mayor bitten citizam If para\nso-called Count Alfred de Mariany, who\ntitimal regarding bis probiema when this war\nleave to extend my remarks in the\nMa Above signature et eventa Are product\nfrom bigh\nHonserst end Is\nwas all very - aux. - far es -\nhas indicated A desire to emigrate from\nenda. Al DATE them developments.\nmay Tom etage is set for = repret performe-\nRecosp I include a creat and timely nd-\nn has - % or Chrich that D 124\nthe Bahamas to the United States.\nInumediately after World Wir No. L were an\n- en ding the Item. The only sufated-\ndress by The Honstrable Maleolm McDer-\nInwyer primary the duty No use\nknow, there RATE here very few time When\nwither Expure Insurent or nid Mine Benry\nunexpected to war contractors as they was\nlat titure today to that this volume ist\nmost, dean of the achool of law of Duke\ncut Info the open the 1 abili persent,\nI am convinced that the American\nof helped not HAM to his political\ndifficult for them tu\n- Mill - reminated will la not Ima\nUniversity. This address was delivered\nto enlighten the purple of laen la\n- We resil - when both Date\npeople, by a large majority, are bitterly\nREPUBLICE or STATUTUAT\nname 1. Utres Larger the servat than they\nbefore the North Carrdina Dar Associa-\nmind stending the what to believes la -\nopposed to providing an asylum for such\n- in Normiber This cancelation\nthe right for is the lawgers place in Bils.\nthat rould be taken as qualino-\ntion In Rajoigh on Ortaber IL 1541.\nthe the prilitied windom et Representative\n2. At the end of World War No. I. the -\n- -- miller - to I or 30 times\nupset wirld - 1 NA 12. Prin - other\ntridestrables as this man, De Mariany.\nDean MeDermott was Ama of the law\nFun But HASE BIT true 10 trair a grudge\nand his pain We have enough problems\nmediate change in attitude 20 Covernment\nthe Stans für women War No. 1.\nacuroe não De prople gel. - -\nin this oventry without taking on the\ncontract and payment procedure MM \"\ndepartment et the University of Tennes-\nor a I milke - shall\nwhen - prople of farmar evertituents get Into\nsharp as the difference between day and taght.\n- is ARD SETTLEMENTS CAR\n- before soins to Due University Re\nme et agree Lawyers - - but Us\ntransitie HAM spoke HERE mit in everting\nburden of suplying food and the necessi-\nM acon M the Dovernment's nest to we\n34\nis a learned lawyer and a great Anim-\nsm than any other were\nand placed the blame where it belongse.\nUse of life to much as these. His recent\nmaterials ended, the presentive changed from\n4. Mest of the hardehips which war -\nby and dedrestand di Gat BMT - said\ncan.\n\"Due to the eractions of New Dest and\nconviction of using \"bot\" all, stolen from\nCL 2º. A regimentation, Pracking D. Roomment\nnow fer production so empirate m statust\n7 and informatración suffired to tata\nthe was enraced No many years in the\nagain NX men viras. That la the sappy\nthe Regal Air Force, is alone sufficient to\nto my has hast to standon the claim\nand procedural sincine\n- the Tworth con ano developmento OUT>\nSTRUIT of - profession, I em tax\n- in 5. as be situinated.\nactive practice of the law in Knownelle,\nprierved by the tast that : may im be de\nof being e cus farmer and * are Title\njustify bile being excluded from the\nBULINON or THE COMPTROLLER OF FILE mumt\nTenn. where be was high rank ID the\nmailing \"mmiroversial - We are -\nof formeter or distributor of them.\"\nUnited States, The testimony taken in\n3. When World War No. ented the -\nprofession.\nto both end a What se\nsaid Para madiy. The announcement will\nhis recent murder trial Indicates that be\nsoller of the Treasury jeriod the\nThe Price all verbal andime,\nMr. McDermoll's address fullown:\nmant M. - in. What - the rull and\nbut Pana recovered bis com-\ndoes not possivas the character to warrant\npoure and continued:\nhis being welcome here. But the edi-\naccounting reins with . tarte which -\nMiglions win, memorantum orders, the\nMr. Rice. Mr. President tother. spó pulle-\nMIP the DESIT\nmailted Government payments to war -\nweal - and all production -\ntan et the Berth Cirillas a Association,\nI pou that 1 Barre an\nTillers miles sway, sucther or my con-\ntarial speaks for staelf. Here 11 As:\nAn - of Congrem - required\nIng. the Army. MARIER\nBUTT WANTED ISEXS\nCapa, Name Commission -Lesse, est\n\" is with a delling of that -\n- have to quit to way spun of partien\nHeary Margrathou of -\n- e - limes like these Our\nYou 12 give me credit. : we sure\nwhile to ciga with New Deal price regulations\nso open the gates and use the -\n. months after the by the -\n1 departments. Make sure\nour minds. and all - company are\nfor recognizing the proprietira of the\n- the a P. A. willing price on cors, has\nThe verdin in the BAY Marry Online murder\n- livels all kants informal commissione\nin Priparty mainted in withing,\nupon - great set property so.\nein. Brancer, let ne my AT the that\nrelloquabes his this - . dirt twomer, -\n- em told . singular place = Interne-\nof the Dent Art.\nthe quinty and termination et as\nI propise No agesa with user tranknew and\nmilling this dairy bent. and becomes . harti-\nTional not for the acquirital of\nPOR DELATE ES of\nthe « . Devertment crde -\nthe assued Alfred de Mariguy but for the\n- is - cale,\nWAT eut to a and envolved\nvie so für the visa advanced,\nsim. withing se be allowed w direct -\nWhen gestlemen - Washington main DO\nTERMINATION\nminumendation the Name: permit attached\nbines of retting about to plan. our are for\nWe tried to case Parmer up\n3\nINT\n4. A. part of the delay = payments whis\nHas Onvernment purchase -\ntrue that estar.\nus, then the next to speak EMT belongs to\nty wring him to Tuda onto bis - for -\n\"Not guilly, by . vote of a to 9. with NO\nwar contractors suffered et the ml of guil\n(Mrs . Timed only modial by\n% NEV townt. I part-wat plan-\nintile while because 9a had . sip that Our-\nWax No. 1 - about through that - all\nde forms submitted\nning a Miss natures BI. it is ail. end\nthe \"placcial\" quità - much 4d fai the\nerror Dawey - trying to get the New Deal\nEnd deportation.\"\nThe people of the Dated States are Inder-\nso mantat the - affort without required\n\" 4a Consements Milittary -\nrightly as, the - ego tu more\nested in the renumendation of the verdice.\n& being part Citrat (sternational pnò-\nplantet. The truth is that what - are here to enti-\nto (if) the com price milita and NO\ntransactions to be fully coverni by -\nDepartify NEA un in properting this paper vot\nthe Miegenthay hard from starration.\nDe Marigny balla - the Prencis Island of\nenders end contracts.\nin Chase notraes firms No the\nImm sus be sind = M for as\nride party politica. If stat I\nWe por tack from the Treasury's public no\nMaintaine in the Indian Omail These .\nA targer part of the payment\nfor AU - - WATER deland\npossible. = que end that the kind of passe\nham to et time an attach upeu Our\nling, long way from Names where . murder\na was couled by telemal and\n\"Impl\" be friewing the Artistion on\nthis be mind as this up of\npresent administration. les - remind you\nlations department , first-person disclasion\npay asked that be te - ME the Ba-\nit, THE Investigate with understed\nplanning does net ou ser din.\nBAS nan = the high commette of the party\nby Parmer Marry a tax status of Zie dairy\nprocedural requirements. over which the a\natt will NETT that a y some na time $1\nmm = prem are special un spenly of the\nbird.\nbacine. The United Blance is com habey by.\ncontractors had = control\nthe la tide crews and make certain that\nformal contract papera have\nman airthe to the atterment tn win the pm.\nperio sur medical guren-\n- Deferred to them.\nment If you have not streety doba so, reside\ntii belatf of cont\nRegraded Unclassified\n254\nNew24,1943\nHOTEL WADE HAMPTON\nOperated By South Carolina National Hotel Co.\nCOLUMBIA, SOUTH CAROLINA\nLee wisness :\nsays we have made mistals\nAffiliated\nNATIONAL\nHOTELS\nthat we have not called\n-\nHOTEL\nTHOMAS\nthem \"War\" taxes instiad\nHOTEL ADMIRAL -\n*\n-\nValiage\nNOTEL AMERICTON\n*\nof excess brofit taxes\n-\n]\nNOTEL PAUNT\n*\n-\nintergato\nHOTEL CLATROL\nno man should make\n*\n-\nNow\nHOTEL INC\nNOTEL - NOTO\n*\n-\nMaridas\nNOTEL LAMAR\n.\nwas. Find out what\nany mmey ant of this\nInhale\nChecke\nHOTEL PASTOM\n*\n- -\nClass\nI have said about this\nNOTEL GOTH\n-\nOklahoma\nOther (as\nOLLANOMA\nTrade\nHOTEL ALDRIDO\n*\n- Code\nHOTEL\nVALE HAMPTON\n*\nType\nAlso\nHOTEL ALKE\nam\nmines AUTOS\n-\n7+ g. made available Bank\nNOTEL IDION\n- -\nartus\n-\nto time deposit\nHOTEL MOTOR\nHOTEL NUTIERN\n&\nnom LACENA\n\" he\nHOTEL CORTES\nfor\n10% of thin a 100, ovo\nNOTEL TESM\nCáme\nNOTEL RECAMER\nNOTEL RAN If\nCORONADO\nwhich even is larger\nJACK TAX COURT\nMILANAR COURT\nNom CATALES\nLosis\nNom PLACA\nletter\n- una\nMede\nNOTEL PALLA\n- Augula\nnom\n- -\nANGELES cours\n*\nTrain\nE I\nHOTEL\nMOUNTAIN LABE\nRegraded Unclassified\n255\n1\nASSOCIATION OF NATIONAL ADVERTISERS INC.\n285 MADISON AVENUE, NEW YORK CITY, N.Y.\nOFFICE OF THE PRESIDENT\nNovember 24, 1943\nHon. Henry Morgenthau, Jr.,\nSecretary of the Treasury\n15th Street & Pennslyvania Avenue\nWashington, D. C.\nDear Mr. Morgenthau:\nThat was a great talk you gave us at the con-\ncluding dinner of our Wartime Conference last week and\nnow that I am back at my desk I want to express the\nthanks of all of us along with my personal appreciation.\nI heard nothing but the most favorable comments\non all sides and I am sure it will do a lot of good. We\nare sending out your talk to all of our members and all\nof the advertisers of the country and I know it will re-\nsult in better understanding of the continued need for\nsupporting the War Loan Drives as well as other Govern-\nment campaigns.\nSincerely yours,\nBaul B. West\nRegraded Unclassified\n256\nNovember 24, 1943\nDear George:\nI got a good laugh out of your letter of\nNovember 22nd. I often wondered why you were\n80 helpful to me in preparing War Bonds speeches.\nNow I know that you have inherited that gift\nfrom your Uncle Rob.\nYou may be pleased to know that I met\nyour boss, Bill Hart, in New York, and whether\nit was the influence of my speech or the \"spirits\"\nof New York - be that as it may, he thinks you\nare a great guy, and volunteered your services for\nthe Fourth War Loan Drive. So in the language\nof Uncle Rob, he has swallowed the Treasury\npropaganda, hook, line and sinker, and you will\nbe my bait for the month of January.\nWith kindest regards,\nSincerely yours,\n(Signed) Henry Morgenthau, Jr.\nMr. George Albee,\nRoute #1,\nAccord, New York.\nP.S.: Have you accepted the advice of the\nSecretary of the Treasury and disposed of your\nchickens?\nRegraded Unclassified\n257\nRoute #1\nAccord N.Y.\n22 Nov 1943\nHon. Henry Morgenthau Jr.,\nSecretary of the Treasury,\nMain Treasury Building,\nWashington, D. C.\nDear Mr. Secretary:\nI have read - twice - the draft of the speech\nyou delivered before the advertising men.\n1 think you were wise, first of all, to make\na speech before them and, second, to give them a\nstraight narrative. I assume that Fred prepared the\ndraft. (1 recognize a few cliches.) Whoever did It\ngave you an excellent Job - straightforward, direct\nand marching along in easily assimilable sequence 11ke\na short story.\nMy congratulations, for what they are worth.\nIt was kind of you to call Governor Lehman.\nI am afraid he has already found a public relations\nman, to Judge from the excellent releases that XXX\nfind their way into the newspapers, but If he has\nnot I am sure that 1 shall hear from him. Actually\nMrs. Albee's health demands that we stay in the\ncountry. But I am so strongly impelled to find a\nplace for myself In some such group as Governor Leh-\nman's that - If he agreed to take me on trial for\nsix months or so - we would try Washington for that\nlength of time . The Federal services are the only\nplace for a man like me. I inherit it, I guess. 1\nhad an uncle who took care of fish in the Bureau of\nPlants and Fisheries. He was very happy there, was\nUncle Rob.\nI hope that Mrs. Morgenthau is herself once\nmore, and that all news of your boys remains good.\nwith kindest ? Tskes to all --\nAll.\nRegraded Unclassified\n258\nNovember 24, 1943\nDear Frank:\nSeveral months ago in discussing a cooperative\narrangement between the Navy Department and the Treasury\nDepartment for promoting the sale of War Bonds through the\nfinancing of actual equipment, we agreed that War Bond\ncampaigns having as an objective the raising of sufficient\nmoney to pay for various types of naval vessels should be\nconfined to campaigns conducted by states, cities, counties\nor other political divisions of the population. We had in\nmind such campaigns as were conducted in the cities of\nChicago and Atlanta to finance the replacement of lost\ncruisers bearing the names of those cities, end also\nsmaller campaigns conducted by county and local organize-\ntions to finance and just commemorative plaques in smaller\nwar vessels, such as submarine chasers, P.T. boats, ete.\nThe question now comes before me in a somewhat dif-\nforent form through the desire of the National Maritime\nUnion, CIO, to finance and put a commemorative plaque in\na submarine chaser. I an very sympathetically inclined\nto this campaign, because I believe that it is natural and\nRegraded Unclassified\n259\n- 2 -\nlogical for members of an organization of American seamen\nto wish to finance a war vessel. The Maritime Commission\nis entirely willing to have them finance and name Liberty\nShips, but this is too much like 8. \"buswan's holiday\" to\ncarry a particularly strong appeal to members of the\nNational Maritime Union.\nWheress I can see the logic of limiting the finane-\ning of naval vessels so as to eliminate many types of\ncitizen organizations from feeling that they have e special\ninterest in any given vessel, I will be much pleased if you\nwill make an exception in the case of the maritime unions\nand shipbuilding unions of both the CIO and the AT of L.\nMembers of those unions certainly have a special interest\nin ships of war.\nI make this recommendation particularly because we\nhave encountered real problems in developing Payroll\nSavings Plans for American seamen. These seamen are apt\nto work for B. different employer on each voyage and it\n18, therefore, not possible to sign a payroll deduction\nauthorization which will be continuous, as in an industrial\nplant. Sales of War Bonds to merchant seemen cen usually\nonly be negotiated at the time their ships return to port\nand they are paid off. We are very dependent for the\nsuccess of this program on the cooperation of their labor\nRegraded Unclassified\n260\n- 3 -\norganizations. Therefore, when the National Maritime\nUnion undertakes to organize a campaign to sell enough\nWar Bonds to finance a submarine chaser or other war\nvessel, the Treasury Department finds this a good answer\nto a difficult problem and wishes to back the union up in\nevery possible way.\nFor this reason I hope that you will feel justified\nin relaxing the rule heretofore agreed to, to the extent\nof allowing the National Maritime Union to sponsor and\nput a plaque on a submarine chaser in case its members\nbuy the required amount of War Bonds in their present\ncampaign.\nSincerely yours,\n(Migned) H. Morgenthau, Jr.\nHonorable Frank Knox,\nSecretary of the Navy,\nWashington, D. C.\nJLH:myrifgt\nRegraded Unclassified\n261\nTREASURY DEPARTMENT\nINTER OFFICE COMMUNICATION\nDATE\nNovember 24, 1943\nTO\nSecretary Morgenthau\nFROM Randolph Paul\nWe have completed the Lazard case along the lines\nindicated in my previous memoranda, to you.\nWe are now informed that Lazard intends to offer\nilliam H. Schubart of the Bank of Manhattan a partnership\non terms that he is likely to accept. Unless you direct\notherwise, we will advise Lazard that we have no objection\nto Mr. Schubart becoming a partner.\nno objection affromes Byk\n3\nRegraded Unclassified\nTreasury Department\n262\nDivision of Monetary Research\n0\nDate November 22, 1943 19\nTo: Secretary Morgenthau\nFrom: Mr. White\nHow\nOur stabilization agreement with\nBrazil, which runs to 1947, provides\nfor the sale of gold to Frazil, at\nits request, to the amount of $200 million\nat the price in effect under the Pro-\nvisional Regulations of the Gold Reserve\nAct. Under this agreement we have already\nsold Brazil more than 8170 million in\ngold.\nThe Minister of Finance of Prazil\nhas asked that the agreement ue smended\nto increase the amount of gold to be\nsold to a maximum of $300 million.\nThere is no credit aspect to these ¿old\nsales, as payment is made in dollars st\nthe price prescribed by the Regulations.\nRegraded Unclassified\n263\nNOV 24 1943\nSir:\nPursuant to a request from the Minister of\nFinance of the United States of Brazil and current\ndiscussions which have been held with the Brazilian\nEmbassy in Washington, it is agreed as follows:\nThe letter of July 15, 1937 of the Secretary\nof the Treasury of the United States of America to the\nMinister of Finance of the United States of Brasil, as\nsaid letter has been previously supplemented and modi-\nfied, is further modified by changing the figure in\nitem (1) from \"$200,000,000\" to \"$300,000,000\".\nIt is understood that the authority of Banco\ndo Brasil to act as fiscal agent of the Brasilian\nGovernment in connection with all transactions under-\ntaken under the arrangement provided for by said letter\ndated July 15, 1937, as supplemented and modified, shall\ncontinue in full force and effect.\nVery truly yours,\n(Signed) H. Morgenthaw, Jr.\nSecretary of the Treasury.\nHonorable Fernando Lobo,\nCharge d'Affaires of the\nUnited States of Brasil,\nWashington, D. c.\nThe foregoing is agreed to on behalf of the\nUnited States of Brazil and the Minister of Finance of\nthe United States of Brazil.\nour TO 03.1943\nStates of Brazil.\nRB:ec 11/15/43\nRegraded Unclassified\n264\nPROPOSED LETTER TO BE SENT FROM THE CHARGE D'AFFAIRES\nOF THE UNITED STATES OF BRAZIL TO SECRETARY HULL\nBRAZILIAN EMBASSY\nWashington\nYour Excellency:\nI have the honor to refer to the letter dated\nJuly 15, 1937 from the Secretary of the Treasury of the\nUnited States of America to the Minister of Finance of\nthe United States of Brazil, as supplemented and modified,\nrelative to the sale of gold and the purchase of cruzeiros\nwith dollars.\n2.\nI an directed by my Government to certify to your\nGovernment that I was authorized to modify the aforementioned\nAgreement by means of the Agreement of\n1943, executed by me and the Secretary of the Treasury of\nthe United States of America, the duplicate originals of\nwhich Agreement have been delivered to the respective\nparties. I an also authorized to declare that the now\nAgreement represents the valid and binding obligations\nof the Brazilian Government and the Minister of Finance\nof the United States of Brazil, in accordance with its\nterms.\n3.\nI shall be grateful to Your Excellency if a\ncopy of this letter be sent to the Secretary of the\nTreasury.\nI take the opportunity to renew to Your Excellency\nthe assurances of my highest consideration.\nHis Excellency Cordell Hull,\nSecretary of State of the United States of America.\nRB:ee 11/15/43\nRegraded Unclassified\nTHE SECRETARY OF THE TREASURY\nWASHINGTON\nNovember 24, 1943\nSir:\nPursuant to a request from the Minister of\nFinance of the United States of Brazil and current\ndiscussions which have been held with the Brazilian\nEmbassy in Washington, it is agreed as follows:\nThe letter of July 15, 1937 of the Secretary\nof the Treasury of the United States of America to the\nMinister of Finance of the United States of Brazil, as\nsaid letter has been previously supplemented and modi-\nfied, is further modified by changing the figure in\nitem (1) from \"$200,000,000\" to \"$300,000,000\".\nIt is understood that the authority of Banco\ndo Brasil to act as fiscal agent of the Brazilian\nGovernment in connection with all transactions under-\ntaken under the arrangement provided for by said letter\ndated July 15, 1937, as supplemented and modified, shall\ncontinue in full force and effect.\nVery truly yours,\nSecretary of the Treasury.\nHonorable Fernando Lobo,\nCharge d'Affaires of the\nUnited States of Brazil,\nWashington, D. C.\nThe foregoing is agreed to on behalf of the\nUnited States of Brazil and the Minister of Finance of\nTORY\nthe United States of Brazil.\nBUY\nDATE:\nInance nes\nFAR\nONDS\nAND\nCharge d'Affaires of the United\nHANDS\nStates of Brazil.\nRegraded Unclassified\n266\n- 25 -\nNOV 24 1943\nMy dear Mr. Ambassador:\nReference is made to the letter dated\nSeptember 22, 1943 from the Secretary to the\nPresidency, Mr. Amadeo Lopez Castro, to the Assistant\nto the Secretary of the Treasury, Mr. Harry D. White,\nand to conversations which Mr. Baron and Mr. Pasos\nhave had with representatives of the United States\nTreasury Department, relative to the sale of gold\nby the Government of the United States to the Govern-\nment of the Republic of Cuba.\nIt has been indicated that the Government\nof the Republic of Cuba will wish to purchase from\nthe Government of the United States approximately\n$100,000,000 of gold during 1944 at the price provided\nby section 44 of the Provisional Regulations issued\nunder the Gold Reserve Act of 1934, as the same may\nbe in effect at the time of each sale. I interpret\nour Agreement of July 6, 1942, as amended, to cover\nthe sale of that quantity of gold, provided that the\naggregate amount of gold for which payment has not\nbeen made shall not exceed $5,000,000 at any one time.\nIf payment for the gold is made at the time of the sale\nand delivery thereof, the $5,000,000 limitation does\nnot apply. Accordingly, I do not believe that any\nfurther agreement between our Governments is necessary\nat this time.\nVery truly yours,\n(Signed) Henry Morgenthau, Jr.\nSecretary of the Treasury.\nHis Excellency,\nThe Ambassador of Cuba,\nWashington, D. C.\nRB:ee 11/22/43\nRegraded Unclassified\n267\nEMBAJADA DE CUBA\nWashington, D. C.\nSeptember 22, 1943.\nDear Mr. White:\nThis is to confirm our conversation of this morning. As I stated then,\nthe Cuban Minister of the Treasury, Ing. Eduardo I. Montoulieu, has re-\nquested me to consult your Department on the possibility of increasing our\ngold purchases under our agreement of July 6, 1942, as extended on July 1,\n1943, in order to meet the abnormal situation that is expected to develop\nnext year.\nThe Cuban Government is concerned about the effects of the strongly\nfavorable balance of payments expected next year, which if not adequately\ndealt with will increase the accumulation of foreign balances in the banks,\nthe dollar circulation, and consequent disturbances in our monetary market.\nWe wish to prevent these disturbances and at the same time to continue to\nbuild up at a faster rate a reserve in gold and foreign exchange under\nthe scheme recommended by your technical mission in November 1941 and put\ninto effect by our law of May 2, 1942. In this connection, we are con-\nsidering the advisability that the Sugar Institute might sell to the\nCuban Treasury part of the New York funds to be paid to it for the next\ncrop by Commodity Credit Corporation, receiving pesos at Havana with\nwhich to make part of its payments to the producers. In this way, we might\navoid unnecessary transfers of funds and obviate the possible ill effects\nof paying all these sums in dollars to the producers.\nThough we have not yet determined to what extent it would be advisable\nto carry ahead the plan during the next year, we are contemplating operations\nof from $100,000,000 to $150,000,000, and thus we need the agreement of the\nUnited States Government to sell us gold to this amount, and the facilities\nof the United States Bureau of Engraving and Printing to print peso notes to\nan amount of $100,000,000. As you know, the Bureau is at present filling\nan lorder from us for $30,000,000. The denominations of the notes would be\nfurther determined in accordance with the needs of the market.\nAs I know the difficulties involved in this plan, mainly because of\nthe great stress under which the Bureau is working, I wish to thank you\nfor the kind cooperation which you offered us this morning, in line with\nyour already long record of service to our country.\nwith warm personal regards from Mr. Montoulieu, in whose behalf I am\nwriting you this letter, I remain\nSincerely yours,\n(Signed) Amadeo Lopez Castro,\nSecretary to the Presidency.\nMr. Harry D. White,\nAssistant to the Secretary,\nTreasury Department,\nWashington.\nRegraded Unclassified\n268\n11/24/43\nSRORET\nDear Mr. Stattinduse\nThe following type of frans currency has been proposed\nfor use by the Allied military forces in connection with the\nFrench operations:\n(1) the currency would be issued by the French\nCoulte but this fast would not appear on the\nface of such currency)\n(2) the currency would bear the following legends\n\"Republic Française\nTresor Central\"\nIn the view of the Treasury and Har Departments such\ncurrency will meet the monetary requirements of the opera-\ntions in France, and we feel that of the alternatives avail-\nable, currency with the above inscription will prove the\nmeet satisfactory. The British Treasury has indicated that\nsuch currency will be entirely acceptable to their Covernment.\nis you Income, this natter is most urgent and it is hoped\nthat we may have your immediate deaision as to whether this\ncurrency is acceptable from the political point of view.\nVery truly yours,\n(Signed) Henry Morgenthau, Jr.\nSecretary of the Treasury\nSecretary of Her.\nHonorable & He Stattinium, Jrop\nUnder Decretary of State,\nWashington, Do 0.\n/24/43\nRegraded Unclassified\n269\n25\nNovember 24, 1943.\nDear Mr. Cox:\nThe Secretary is away from Vashington\nand I an therefore acknowledging your note\nof November 19, which encloses a copy of\nmaterial contained in a cable in regard to\noccupied Europe.\nSincerely yours,\n(Signed) H. S. Klotz\n1. s. nots,\nPrivate Secretary.\nNonorable Occar Cas,\nOffice of the Administrator,\nForeign Administration,\nVashington, 25, D. a.\nGEF/dbs\nRegraded Unclassified\n270\nFOREIGN ECONOMIC ADMINISTRATION\nOFFICE OF THE ADMINISTRATOR\nWASHINGTON 25. D. C.\nNovember 19, 1943\nDear Mr. Secretary:\nYou may possibly want to consider the release of\nsome information of the kind that appears in the attached\ncable at one of your press conferences.\nI should think that security reasons would not block\nthe issuance of most of this material.\nSincerely yours,\nOson lot\nThe Honorable\nThe Secretary of the Treasury\nEnclosure\nRegraded Unclassified\n271\nBUTTISH CONE IDENTITY\nCO.DI.LD CO, JITTEL POL FREICH NORTH A.I. .LST APRICAL CIVIL AFFAIRS\nThe following communication vine received 17 November, 1943\nDC 142, 11 November, 1943\nAtt. OBCHARD\n\"rom:\nMAEB\nNR. SINGIONS\nMITCHELL (8)\n101\nDecretary of Treasury and CONA\nNo. - ENTERSON (a)\nI\nSubject:\nConditions 211 sccupied Europe,\n/\nNof:\nBX Airgram 103; BC Migram 1141 300 singram 119\nThe follo. bin information has been glended from intercepted\nmil relating to conditions in Prence and the other occupled ocuntries\nof Incope, The mill ocn intercopted during the months of and\nOctober and covers the meried from early Any to the middle of . ctober ,\nIt in subject to the date coveate with respect to accuracy and relishil-\nity as DAS the necessal tionsmitted in previous airgramo\nICOND D. CONDITIONS IN\nIt was reporte! in Tune that, as a general setter, French industry\ncas suffering preatly from ack of rate caterials and & short 1:00m sup-\nply. in exception noted appe ru to have been in the cheqical (rtilizer\nindustry, which seo descrited in some detail by B. Sales witer. & fac-\nAgille While the output of another was stated to have been reduced about\ntory fa the production of fertilizer v.n.s sale to be in Full operation near\n30,, 11, was regarded 11 functioning effectively. In still another area\nchemical funtilizer alounts vere reported to be in full operation, albeit\nsuffering from a shortage of packing gaper.\nChortoges of fets nore the principal causes for civilian complaint to\nin the lotters excirited. In early July it was said to be imporsible\nobtain into unloss one tas prepared to pay 507 to 600 france a kilogram.\nOne reported that he had been able to obtein pergarine but once\nsince third that he had DONE for Aix months. Farmero, 50 before, suffered 1.0 the\nvi January, 1943, another, that he had no oil since October, 2942, und\n$ leas? from these shortinges 7 nly for the reason that they жето able\nobtain hutter.\nt ment was could be obtained but once a week; and, for when residents, sell- that\nIt variously reported that, in some areas, there zero no wines;\nat of butter WOTD ovailable each month. Egi: new reported no In\ning ) grain: at 40 franco B dosen and chickens at from 100.000 Tranca pisco.\n11-17-354\nPage One\n(over)\nRegraded Unclassified\nBRITISH CONFIDENTIAL\na town in the region of the Pyrenses, it vas said that, for each child,\none half to two pinto of milk could be obtained daily.\nSeveral letters noted that, in many areas of France, the summer\nneason had been unusually dry, thus curtailing the output of fresh\nvegetables and fruits. In place of these products people were drawing\nupon stooks of dried vegetables and canned fruits.\n1.3 was the case in previous correspondence monitored, there were\nmany complaints based upon the shortage of clothing and shoes. Illus-\ntrative of this 123 a letter from one writer stating that his father had\none gair of choes, while he and his sister had nothing but slippers.\nTany writere attributed the extreme shortage arising in various areas\nto acts of pillage, of varying degrees of refinement, by the occupation\nauthorities. One town received reports that, despite the dry season, the\nlocal fruit crop would be quite good. Then the time for harvest had passed\nwithout the expected fruit reaching local markets, it WE3 reported that it\nhad all been shipped to Germany. The tactics of the Nazi authorities were\nmaking themselves more severely felt in many other mays, According to one\nwriter who had escaped to Turkey, the Germans were peremptorily expelling\nmany people from their apartments and homes to make the space ovailable for\nbilloting purposes. An Alsatian reported that his brother had been drafted\ninto the German army and sent to the Russian front and his family deported\nbecause another member was in the French navy. Surthermore, the bombing\noperations were the cause of wholesale evacuations reported in areas around\nPuris and in places such as Lorient, in Bretagno, the latter said to have\nbeen completely destroyed.\nA letter dated L October, 1943, reported that epidemics of infantile\njaralysis had broken out in the sections of le Fuy de Licme, near Clermont-\nFerrand, and in L'Allier, in the Vichy region.\nMANPOTER\nReports from France itself indicated that during the months of the in\nsummer and early fall, the recruitment of civilians for forced labor\nGermany or in German factories continued unabated. in July it was re-\nported that the 21, 22 and 23 year old males had virtually all been called\nto Germany. The condition of men sent to Cermany DGO siated to be do-\nplorable, and the conditions of civilion laborers in Cormany was caid to be\nrisk involved. Toward the end of August the drafting of women of 21 years\nsufficiently bad to induce thousands to escare to Spain, despite the great\nof for forced labor in Germany was stated to be imminent. It was\nsaid age that in the forced labor campo people from all of the occupied nations\nwere mixed together, - and that men and women more housed in the same rooms\nPage Two\nRegraded Unclassified\n272\nBRITISH CORP IDENTIAL\nThe trend toward prisoners of var in Germany becoming civilian\nworkers appeared to increase during the summer and early fall, A\ncivilian worker was said to be paid 70 pfennigs an hour instead of 70\n[femigs n day, which nas stated to be the pay of prisonern of war.\nThile general conditions of discipline, etc. remain about the come ns\nunder the military, guards were removed. Civilian orkers are permitted\nto nove about freely, are ((iven two neeks' leave upon their agreement to\nbecome civilina workers, and, contrary to previous report, they reported\nreceiving better food and more food and clothing packages. Civilian\nworkers vere also granted more privileges such as the \"MSE of\npostal system, admission to coffee houses, etc.\nhether or not the notmal food conditions had improved upon 8\nprisoner of var becoming B. civilian porker is somewhat evertionable,\nalthough on the be is of the correspondence recently examined fl uppeare\nthat some improvement can Is noticed. In this connotion, it right be\nnoted that the so-called \"Putain parcels\", & schete deviced by hrshall\nPetain to send parcels to each French prisoner of ear, never paterialized.\nPrisoners of tar receive / few parcels through the Frenci ited Cross and\nthe British Led Croan, on complain because nothing VES received through\nthe American Red Cross. in the other hand, civilier workers ST factories\nwere served lunch at the factory, occasionally had resh vegetables, and\nreported generally that they received botter food win but had as crison+\ners of mar. In Inte optember, 1943, it was reported the civi inn work-\nors received nore trend. However, shortages of cloims NG shoos con-\ntinued to be subject of coment.\nis significant conclusion might be drawn \"ron the devespendence was\nthat 1t appears ensier for civilien workers to obtain 10 packages from\nFrance than for prisences of tar, Civilian wicker ere varmitted to.\nreceive a package each time they had a ticket ruthorists the receipt.\nThese ticketo tere obtained from the Director of - camp and\neach worker and allotied three tickets a month; the of the tickety ::ere\ngood for focd percols not one for clothing. 4 sample for powerl con-\nsisted of 2 packages ni sardines, 2 pounds of sugar, 1 of cocon,\n1 package of tobacco, / cigarettes, 4 packages of VISERIA tableto 1\npiece of scap, 1 juestige of coffee, 2 canj of lest extra 1 Inckage of\nbeans and 1 peckage of nate. Thile this gane food sickers eyst-am was N/50\navailable to prisoners of mr, the letters indicated the it nomewhat\neasier for civilien markers to obtain packages. In the liberty\naccorded civilian vorkers meant that they could obtain gone 1001 olsenhere,\na privilego not available to priconers of VET\nIt was octimated that approximately 250, :00 o: sur Lave\nbecome civilian workers in the period from June to latober, 1943,\nORCHARD\nACTION: Treasury and State\nBUTCHELL (8)\nn. ENTRISON a\n\"A\"\nB. KURTH\nThroe\nNO. WASHINGTON\nRegraded Unclassified\n273\nparaphrase OF TELEGRAM SENT\nTo:\nAmerican Embassy, Chungking, China.\nDate:\nNovember 26, 1943, 10 p.m.\nNumber: 1690\nFROM THE SECRETARY OF THE TREASURY FOR ADLER\n1. The Treasury has been informed by Mr. T. L.\nSoong and Mr. Esi Te-mou that Dr. Kung concurs with\nTreasury that the 1941 Agreement should not be renewed\nunder present circumstances.\n2. You are requested herewith by Treasury to\nsubmit your resignation to Dr. Kung as of December 31.\nYou say, however, at your discretion postpone date of\nresignation until the last day of January 1944, if it\nis your opinion that another month may be necessary to\nconclude the Board's affairs.\nHULL\n(w)\nRegraded Unclassified\n274\nHEL\nChungking\nThis telegram must bE\nparaphrased before being\nDated November 24, 1943\ncommunicated to anyone\nother than a Governmental\nRec'd 10:06 a.m., 25th,\nagency. (SCOO)\nSecretary of State,\nCONFIDENTIAL\nWashington.\ntext For security reasons\nbe of this message must the\nclosely guarded.\nU.S. URGENT\n2228, November 24, Midnight, (SECTION ONE)\nFROM ADLER TO SECRETARY OF TREASURY.\nOnE. Saw Dr. Kung yesterday and asked him for\nquotation on price at which Chinese Government would bE\nwilling to make CN dollars 400,000,000 monthly available\nto United States Government. WE had long and amicable\nconversations though Kung tended to bE Evasive EXCEPT\ntoward close. HE reviewed Chinese financial situation\nat some length, claiming that change in official rate\nwould undermine confidence in fapi and accelerate rise\nin prices, to which I replied Treasury Was not raising\nquestion of official rate and that it made no difference\nto internal prices whether United States Government\nExpenditures wererfinanced at price of twenty to one or\nof hundred to one. Kung, after commenting that Experts\ncould understand that but not laymen and that it was\nimpossible to keep secret price at which Chinese Government\nsells fapi to us, stated that China has advanced CN\ndollars\nRegraded Unclassified\n275\n-2-, #2228, November 24, Midnight, (SECTION ONE) from\nChungking.\ndollars 3,000,000,000 since outbreok of Pacific war\nfor constructing airports and providing transportation\nfacilities, Et cetera, for USAAF, that China was\npreparing to ask us for another loan, and that any\nincrease in the Expenditures for USAAF would merely\nmean an increase in amounts he would ask for.\nTwo, at this stage I mentioned the three\nalternative methods of payment indicated in your\npoint three (re your 1672 of November 20th.). Kung\nfirst rejected all three and offered as alternatives:\n(A) His going over USAAF Expenditures with\nGeneralissimo and General Stilwell--which hE is to do\nin near future--finding out where it was possible to out\nthem: and agreeing to bear a proportion, which hE did\nnot specify, under reverse Lend-Lease. I pointed out\nthat reverse Lend-Lease negotiations had bEEn protracted\nand that it might take some time to conclude them, to\nwhich he claimed that his government had already decided\nto agree in principle and that agreement might bE\nconsumated in near futurs.\n(B) His not objecting to Treasury shipping U. S.\ncurrency to China to bE sold in black market, adding\nthat sales in quantity would push down price. But he\ndid not recur to this suggestion in his final offer.\nGAUSS\nNPL\nRegraded Unclassified\n276\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM:\nAMERICAN enbassy, CHUNGKING, CHINA\nTO:\nSecretary of State, Washington\nDATED:\nNovember 24, 1943.\nNUMBER: 2228 (SECTION TWO)\n3. I went on to point out that USAAF expenditures are\nbeing financed at the official rate, that expenditures of the\nGovernment of the United States in China are out of all proportion\nto return on them and that the United States 18 selling gold now\nin the Middle East to finance its expenditures, These remarks\nemphasised your point two. In reply Dr. Kung indicated that he\nhad no objection in principle to the selling of gold on our\naccount in China, but sales in any quantity would push the price\ndown and also compete with the gold selling policy of China\nwithout yielding enough to cover our needs. I pointed out that\nsale of gold for account of the United States need not compete\nwith China's sales if they were conducted through one selling\nagency. In agreeing with this point he indicated that the\nCentral Bank is at the present time selling gold for the Govern-\nment of China. He commented in passing that the cost of shipping\ngold is so high he is considering selling certificates representing\nclaims on gold rather than selling the gold, which would be kept\non earmark with the Federal Reserve Bank.\n4. DF. Kung finally said he was willing that the choice of\none of the following alternatives be offered to the Treasury\nDepartment:\nA. 2A above.\nB. Your SC (Department's 1672 November 20) subject to the\nconsent of the Generalissimo and paying 40 to 1 in exchange for\nUnited States dollars for needs of the United States Government\nover and above what is obtained by selling gold on our account.\n5. My comments on the offer are as follows: For 4A refer\nto my comment on SA above) for the reason stated above - apart\nfrom the fact that Dr. Zung would not specify the proportion of\nUnited States expenditures China would be willing to finance by\nLend-Lease in reverse--12 is not worth serious consideration us\nan alternative, though as a supplementary measure it may be worth\nconsideration. For comments on 4B:\n(A) From the above conversation and from other a urces It is\nclear that China does not propose to sell much gold and that\nDr. Rung does not expect us to succeed by this neans In relaing\nRegraded Unclassified\n277\n+\nnearly enough currency to cover the expenditures of this Govern-\nment. It might be possible, however, with the exertion of\nsufficient pressure to push the sale of gold to the point where\nan appreciable part of our needs would be yielded.\n(B) 40 to 1 is & miserably low price. My suggestion on this\nis that the Treasury Department request at least 100 to 120 to 1\nin which case it might be possible that not less than 80 could\nbe finally settled upon.\n6. with Dr. Kung's remark that this was a preliminary\ndiscussion the conversation was concluded.\nGAUSS\nRegraded Unclassified\n278\nDVM\nChungking\nThis telegram must bE\nparaphrased before being\nDated November 24, 1943\ncommunicated to anyone\nother than a Governmental\nRec'd 2:37 p.m., 26th\nagency.\n(BR)\nSecretary of State\nWashington\n2231, November 24, 5 p.m.\nTO SECRETARY OF THE TREASURY FROM ADLER\nRaised question with Dr. Kung in accordance with\nyour instructions in conversation yesterday. HE replied\nthat missionaries had been receiving thirty to one for\nmissionary Expenditures since May l'and that all\nfamine (repent famine) relief expenditures had been\nreceiving forty to one from some date. HE was in\ncourse of negotiating with Foreign Missionary philan-\nthropic and cultural organizations about further adjust-\nment in rate they receive (re your 1474, October 13).\nAbove confirmed by reliable source according to\nwhich missionarits had been receiving forty for famine\nrelief Expenditures. According to SAME source Dr. Kung\nwill probably give above organizations forty for all\ntheir Expenditures in China.\nGAUSS\nBB\nRegraded Unclassified\n279\nNOI 10 be\nU.S. SECRET\nCUPY No\n12\nBRITISH MOST DECRET\nOPTEL NO. 385\nInformation received up to 10 A.M. 24th November, 1943.\n1. NAVAL\nMediterranean 21st/22nd. Allied Constal Craft sank n. Potrol Light\nSouth of LEGHORN.\n22nd. One of H.M. Minesweepers, mined and sun't off BARI.\nLevant 20/21st. A further 3,000 Greeks and Italiand vor. evacuated to\nTURKEY from SAMOS.\n2. MILITARY\nItaly 8th Army. In Constal Sector 78th Division has strengthenen\nBridgehead over SANGRO and completed three bridges. Indian\ntroops have established Bridgebead Jest of ATESSA. Further South Canadian troups\nhave captured S. AllGeLO (16 mlles S.L. of ATESSA). Our vatrols have also advanced\nin miles est of ALFEDONA (15 miles M.B. of ISERTIA).\n5th. Army In patrol action near Nouth of R. GARIGLIANO heavy\ncasualties were inflicted on unemy at coast of one nounded.\nRussia 23rd. Russians extended their Dridgebed North oi GOLL.\nSituation in ZHITOMI9 is obseure at Ruscians have procebly\ngiven some ground.\nBurma - CHT HILLS 19th. Jamenese occupied nouitions 42 b. our\nLegy troops 1/ miler a.l. KAS.A. Tuth. In FORT Area\ncompany of Intian Proops carried out successful rat' reclast Jaymiese.\n3. AIR OPERATIONS\nWestern Front 22nd/23rd. 2,366 tons dropped on BERLIN. 23 d. 96\nMarauders (0.26) (2 nissing), boubed tro Airfields to\nN. FRANCE. Mitchells (R.25), Bostons (A20) and Typhoms dropped (1) tone on\nmilitary objectives near GRIS NEZ. 23 Beauflyhters (4 missing) attacked Convoy\noff TEXAL seriously damaging five Escort Vissels m leaving an 8,000 ton\nTanker sinking.\n23/2/th. Aircraft duspstched:- WERLIN 38.2 (20 missing) (4 crashed)\nCOLOONE 6 (1 missing), Intruders U/7. Prolininary reports on clou'\nover target, Markers concentrated and firas still burnin from previous night.\nItaly 22nd. 155 Medium, Light and Fighter Rombers attacked\ncommunications in Central IfAM an 222 attacker. Targeta in\nRattie Area.\nTREASURY\nPEP Regraded Unclassified"
}