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    "ocrText": "PSF\nAgriculture: Henry A. Wallace\nPSF\nagr\nHIGHLY\nAugust 23, 1937\nThe trouble anticipated developed this afternoon. It turned out to be\nn. case of Henry Wallace's aspirations for the Presidency vs. the President's\nprestige. Here's the story in detail:\nThere was a meeting attended by Paul Appleby (and two others) from the\nDepartment of Agriculture; Duggan from State, and Gruening from Interior.\n(Treasury said that they did not care about the terms of the veto message).\nAfter agreement on the terms of the message, Appleby then stated that\nAgriculture seriously contemplated filing n separate memorandum with the\nPresident, urging that there be no veto. He made the highly formal point\nthat the word received from Dan Bell was merely that the Departments should\nagree on a veto message but that there was nothing to indicate that each\nDepartment should not (as is the usual case in connection with n. bill) file\nn. separate report as to its views as to whether or not the bill should be\nvetoed. Accordingly, he said, Agriculture might file a separate memorandum\nstating that the bill was satisfactory so far as Agriculture was concerned\nand should be signed.\nDuggan and Gruening stated that it was their understanding that the\nPresident merely wanted 5. veto message jointly prepared by the Departments\nbecause he had already decided on n. veto. Appleby indicated that he had not been\nso advised and stood on the fact that Dan Bell had sent Agriculture the usual\nformal request for its views on the bill. He did not disclose the following\nwhich Gruening, later, learned from Bell:\nBell received from the President and read to Appleby on the telephone a\nmemorandum saying: \"Obviously, I cannot sign this bill\", and asking that the\nthree Departments should agree on a veto message. Appleby then (prior to the\nconference) asked Bell whether that would preclude Wallace from expressing his\nseparate views to the President, to which Bell replied that of course any\nSecretary was at liberty to advise the President about anything.\nIn discussing the desirability of not vetoing the bill, Appleby stressed\nthat Agriculture \"had to keep in mind\" the political aspects of the situation.\"\nVery cold-bloodedly he made the pointed remark that there was no use in the\nPresident trying to beat Congress on this or on anything else -- that a\nPresident in his second invariably had little power over Congress and got nothing\ndone in his second term except through acquiescence, and that it was very important\nfor the Department \"to keep in right with these Congressmen\".\nIt was obvious that he was thinking primarily to the welfare of Henry\nWallace 0.8 a potential candidate for the Presidency.\nAppleby refused to comment on the fact that the President had virtually\ntold Pat Harrison, and had otherwise let it be known, that he would veto the\nbill, if the refining discriminations were not eliminated, and that a failure\nto veto the bill would mean that Harrison had called the President's bluff and\nhad won. In other words, Appleby was plainly more interested in Wallace's\n-2-\npolitical fences than in the President's prestige, in effect saying that, since\nthis WOO the President's second term, he was on his way out and his prestige\nwas not the paramount consideration.\nSignificantly, Appleby said that the suggestion that Agriculture should\nrecommend against a veto had not come from Hutson, one of Wallace's subordinates\nclose to him politically. Since no one had mentioned Hutson, that was a case\nof the lady protesting too much. For Hutson is n. weak sister, who always wants\nto yield in any fight, and is always working for his personal and Wallace's\ngood will on the Hill and therefore always urges Wallace to give in whenever\nthere is any heat.\nIt's a cinch that, If the President signs the bill, Wallace will claim\npolitical credit with the beet Congressmen and Senators for having won over\nthe President.\nDuggan stated that Hull was almost certain to be for a veto, and that\nhe thought that, if Agriculture had n. contrary view, there should be a dis-\ncussion among the three Secretaries and a joint recommendation. Appleby fought\nthat suggestion and made it plain why; for be said that, if there was a joint\nrecommendation, Agriculture would feel obliged to abide by the majority view.\nIf n. jam is to be avoided, it would be very wise if the President were to\nadvise the three Departments, through Bell or otherwise, that be had fully\ndecided to veto the bill and merely wanted the Departments to agree on the\nterms of the statement.\nS.C. Form No. 11\nSignal Corps, United States Army\nWar Department Message Center,\nReceibed at\nRoom 3441, Munitions Building,\nWashington, D.C.\n9313 U.S. GOTERNMENT PRINTING OFFICE\nP 1 WVP CA\n33WD\nWallace\nFORTMONMOUTH NJ 11 AM JULY 29 1939\nPSF storic,\nTHE PRESIDENT\nTHE WHITE HOUSE WASHINGTON DC\nTHE SEVENTH WORLDS POULTRY CONGRESS HAS JUST BEEN FORMALLY OPENED IT\nIS APPROPRIATE THAT THIS MESSAGE BE SENT THROUGH COURTESY OF THE WAR\nDEPARTMENT BY HOMING PIGEON THE ORIGINAL METHOD OF FAST COMMUNICATION\nHENRY A WALLACE\nCLEVELAND OHIO JULY 28\n1125A\nPSF ballace\nTHE WHITE HOUSE\nWASHINGTON\nagrie\nAugust 5, 1939.\nMEMORANDUM FOR\nMRS. ROOSEVELT\n.\nFOR YOUR INFORMATION.\nIT IS HIGHLY CONFIDENTIAL. WILL\nYOU PLEASE RETURN FOR MY FILES?\nF. D. R.\nHere seen\nER_\nTHE WHITE HOUSE\nWASHINGTON\nAugust 3, 1939\nMEMORANDUM FOR F.D.R.\nI am told that the Department\nof Agriculture was considering taking\nover the whole of the Rogers place as\nan experimental station which would have\ngiven a number of projects for the State\nN.Y.A. work. Did this ever materialize\nor is there no chance of its coming about?\nE.R.\nDEPARTMENT OF AGRICULTURE\nSTATE THE DEPARTMENT OFFICE\nfile folls mal.\nWASHINGTON\nRECEIVED AUG 3 8 THE 55 WHITE AM 39 HOUSE\nAugust 2 1939.\nThe President\nThe White House\nDear Mr. President:\nYou asked in your note of July 28 whether we had ever\nfound any use for the Rogers place at Hyde Park. I believe\nM. L. Wilson spoke to you informally about his idea of es-\ntablishing five or six research centers in different regions\nfor the study of self-sufficient farming, suburban farming,\nand other subjects not covered at present. He also thinks\nthat somewhere we should be preserving in growth the varieties\nof plants and breeds of live stock which do not now seem to\nhave commercial value. For example, varieties of fruits are\npassing out of existence because they have no commercial value\nin competition with types bred for the modern market. Mr.\nWilson feels that these varieties may be needed sometime because\nof possible diseases that may attack the commercial breeds.\nOur understanding is that you gave approval to the plan,\nend clearance of efforts to get legislation introduced. We\nhave prepared the attached bill to be introduced, we hope, in\nthis session of Congress, preferably by Senator Mead of New\nYork. Of course it will not be adopted in this session but we\nfeel that it will have some educational value if it is intro-\nduced now. Later on we will urge its adoption. The bill as\nnow drafted would make the Rogers estate eligible for use as\none of these research centers.\nSincerely yours,\nHawallace\nSecretary\nEnclosure\nA BILL\nTo provide for establishing five regional agricultural research centers,\nfor investigations and demonstrations in self-sufficing farming, the\npreservation of plant and animal varieties for use in event of outbreaks\nof new diseases or development of new commercial uses, suburban land use,\nand the application of power-driven appliances on the self-sufficing farm\nand in the farm-home.\nWHEREAS,\n1. Approximately 1,500,000 farm families in the United States are\nengaged in self-sufficing farming, living on small farms on which they\nraise most of the meat, vegetables, dairy products and other food they\nconsume,\n2. These non-commercial farms are about 22 percent of the number\nof farms in the United States,\n3. This type of agricultural living has not received adequate\nscientific investigation and study, because changing economic conditions\nand a changing technology have directed most of the attention of the\nDepartment of Agriculture and of the Land-Grant Colleges to the problems\nof commercial farming, and\n4. It is sound national policy, in keeping with the fundamental\nprinciples of democracy, to protect opportunities for families to maintain\nhomes on small tracts of land on which they can produce food for family\nconsumption to supplement other income; and\nto /\nto\n02\n- 2 -\nWHEREAS,\n1. Families carrying on self-sufficing or part-time farming\nneed some source of supplementary cash income, and\n2. The possibilities of supplying such income through home\nindustries, rural arts and crafts, and rural small-scale industry have\nnot been adequately explored; and\nWHEREAS,\n1. Virulent plant and animal diseases appear unpredictably from\ntime to time, either spontaneously or through importation, as in the\ncase of Dutch Elm disease, the apple blight and the strawberry mildew,\nand\n2. New commercial uses appear from time to time which require\nvarieties of plants and animals other than the predominating commercial\ntypes, and\n3. In cases of such sudden emergency or new development, it\nbecomes necessary to discover or develop new varieties resistant to\nsuch diseases or appropriate to the new commercial uses, often at a\ngreat cost of research or world-wide exploration, and with losses\nsuffered during the delay, and\n4. It often happens that new varieties of agricultural plants\nand breeds of domestic animals are developed, but are not preserved\nbecause they lack commercial value at the time of discovery, and thus\nare not available when new diseases or new commercial uses occur, and\nASSHW\n- 3 -\n5. The land and resources of existing agricultural experiment\nstations are so urgently needed for meeting pressing current problems\nof agriculture that they cannot be used for perpetuating such apparently\nnon-commercial varieties of plants and animals; and\nWHEREAS, there are special research problems which, because of the\ndangers of spreading disease from experimental plants and animals to\nothers, or for other reasons, do not fit readily into the research pro-\ngrams of existing agricultural experiment stations or regional research\nlaboratories, such as the breeding of disease-resistant chestnut trees\nand of elm trees resistant to Dutch Elm disease, but which require\nfurther investigation; and\nWHEREAS,\n1. There are ten million city-, village- and suburban-dwelling\nfamilies in the United States who are directly interested in agriculture\nprimarily as it applies to the small tract of land within a city, village\nor a suburb, and to home-ground and road-side beautification, and\n2. Research in the possibilities of this type of land-use is now\ninadequate to meet the needs of these families; and\nWHEREAS,\n1. Recent developments in technology, and particularly in rural\nelectrification, have made possible as yet unused applications of this\nissue\n- 4 -\nnew knowledge, to lighten farm and home burdens and to improve standards\nof living, and\n2. Investigations are needed to develop power-driven machinery\nand appliances appropriate for such farm and home use, and otherwise to\nmake full use of the new technology as in new methods of home-canning,\npreserving, quick-freezing and other practices,\nBe it enacted by the Senate and House of Representatives of the United\nState of America in Congress assembled, That the Secretary of Agriculture\nis hereby authorized to establish not to exceed five regional agricultural\nresearch centers. In order to improve the demonstration value of these\ncenters, each of them shall be located not far from heavily travelled\nhighways, close to densely populated areas, on land appropriate for the\ntypes of work to be performed, and, where possible, within an area\nalready largely devoted to self-sufficing or part-time farming, but in\nplaces where adequate precautions can be taken that the prosecution of\nresearch on diseased plants and animals will not create the danger of\nthe spread of such diseases. One of the centers shall be located in the\nnortheastern, one in the southeastern, one in the middlewestern, one in\nthe southwestern, and one in the northwestern, parts of the United States.\nSec. 2. The Secretary shall appoint an advisory board for each\nregional center, to be made up of men and women representatives of\nfamilies practicing self-sufficing farming in the region, the agricultural\ncolleges, and other citizens or groups within the region interested in\nDON\n- 5 -\nthe objectives of this Act.\nSec. 3. The program of work at each center shall include such\nwork of research and demonstration as may be appropriate for the surround-\ning area in self-sufficing and part-time farming, the preservation of\nvarieties of agricultural plants and animals for use when new diseases\noccur or new commercial needs develop, the breeding of varieties of plants\nand animals resistant to new diseases under conditions appropriate to\nprevent spread of disease from the objects of experimentation, suburban\nland use (including development of vegetable and flower gardens, fruit\ntrees, shade and ornamental trees and plants, and special problems of\nparkways and road-landscaping in connection therewith), homesteading,\nrural arts and handicrafts and their value in improving rural living,\nthe application of technology and power-driven machinery and appliances\nto tasks on the self-sufficing farm and in the farm home, and such other\nspecial research tasks as the Secretary of Agriculture shall find can not\nbe readily included within the work of the existing experiment stations\nand laboratories.\nSec. 4. For the purposes of this Act, the Secretary of Agriculture -\n(a) Shall have authority to acquire the necessary lands or\ninterests therein, by purchase, lease, donation or otherwise, to repair\nor construct necessary buildings or other structures, and to acquire\nnecessary equipment, implements, furnishings, plants, and animals;\n(b) May secure the cooperation of any governmental agency;\nand\nadit\n- 6 -\n(c) May make expenditures for personal services and rent\nin the District of Columbia and elsewhere, for the purchase of books of\nreference, for printing and binding, for the purchase, exchange, opera-\ntion, and maintenance of passenger-carrying vehicles, for supplies and\nequipment, for traveling expenses, and for other administrative expenses.\nSec. 5. The Secretary of Agriculture, in administering the pro-\nvisions of this Act, shall utilize the officers, employees and facilities\nof agencies within the Department of Agriculture whose functions are\nrelated to the work provided for in this Act, and may allot to such\nagencies or transfer to such other agencies of the Federal Government as\nhe may request to assist in carrying out any of the provisions of this\nAct, any funds available for the purposes of this Act.\nSec. 6. There is hereby authorized to be appropriated not to\nexceed $1,000,000 per annum for the purposes of this Act. Appropriations\nmade pursuant to this Act shall remain available until expended.\n9-11-39\nPSF stopic\nMEMORANDUM\nThe German Food Situation\n1. Because of accumulated stocks and rationing of consumption\nGerman food supplies now appear ample to cover the more urgent require-\nments of the nation for one year at least. After the first year certain\naspects of the food supply will have become quite vulnerable, but other\nfactors are likely to prove more important in determining Germany's\nability to continue the conflict over an extended period.\n2. The most vulnerable feature of the food situation is fats, and\nmore particularly the supplies for margarine, which are largely dependent\nupon overseas imports. A reduction of approximately 25-30 percent in fat\nsupplies and in turn consumption can be reasonably expected during the\nsecond year of war and probably a somewhat higher percent thereafter, de-\npending upon (1) German boundaries, (2) livestock numbers, and (3) coun-\ntries involved in war at that time.\n3. The meat supply is a second vulnerable feature of the German\nfood situation. For the current year livestock numbers (also feed sup-\nplies) are practically equal to domestic needs, especially considering\nthe probable continuance of some imports from neighboring neutral coun-\ntries. After the first year a decrease in feed supplies is expected to\ncause some liquidation of livestock, & move which would be expected to\ngain impetus the longer the war is continued.\n4. Breadgrain, potato, and sugar supplies are very favorable, and\nno serious difficulties may be expected for these foods for two to three\nyears at least, unless harvests are very unfavorable. Some reduction in\nthe potato and sugarbeet acreages and yields may be expected as the war\n- 2 -\ncontinues, due largely to intensive cultivation necessary for these\ncrops. However, both are on a surplus basis at present, so unless and\nuntil a marked decline occurs (not now foreseeable) such food needs\nshould be met.\n5. Compared with 1914 and the World War period the following\nfavorable and unfavorable factors effecting German agriculture and food\nmay be noted: Favorable - (1) the Reichnehrstand organization (a most\nefficient agricultural and food organization); (2) increased mechaniza-\ntion of agriculture; (3) more extensive use of artificial fertilizers;\n(4) army plans not to conscript farm men and horses except when and\nwhere absolutely necessary; (5) considerably expanded and improved trans-\nportation system; (6) greatly increased storage and processing facili-\nties; (7) a significantly improved agricultural industry in the Danubian\nand Baltic area, also Russia, which is not subject to blockade conditions.\nUnfavorable - (1) early and complete blockade of all essential products\nfrom overseas; (2) less economic reserves, especially gold, with conse-\nquent difficulties in paying for such imports as can be obtained; (3) an\nincreased human and livestock population per square mile; (4) the unpopu-\nlarity of war; (5) somewhat reduced resistance and less stoicism on the\npart of consumers; (6) possible invasion of German territory; and (7)\nnew developments and difficulties arising out of a modern war which cannot\nbe anticipated.\nPSF starter\nWallace\nOctober 4, 1939\nLetter to the President from Senator Josiah W. Bailey\nRe-Germany placing Tobacco on the contraband list-ststement\nof President and See Wallace encouraged him but fears the\nBritish Gov won't return to our market etc et e etc.\nAttached are figures on tobacco-United Kingdom end France\nSee:Josiah W. Bailey-Senate folder-Drawer 2-1939\nOriginal of this carbon copy is\nfiled in Warm Springs folder-\nDrawer 3-1939\nPSF wallacke balla\nNovember 2 0, 1939.\nThe President\nThe White House\nDear Mr. President:\nIn response to your informal inquiry about the\npossibility of obtaining nursery stock for a bare hill-\nside at Warm Springs, for the Warm Springs Foundation,\nthere is some doubt as to whether this could be done\nunder the budget item for Cooperative Distribution of\nForest Planting Stock, but if you will indicate with\nwhom the Forest Service may get in touch personally\non this at Warm Springs, they believe it may be possible\nto work out some cooperative arrangement, under this or\nsome of the other Acts, under which the hillside might\nbe planted. As soon as we hear from you, the Forest\nService will get in touch with whomever you designate.\nSincerely yours,\nsecratary's File Room\n(Bigned)\nHawallace\nSecretary\nPSF\nwallad\nDecember 25, 1939.\nDear Henry:-\nA delicate suggestion\nnot to forget the tobacco\nraisers and the oorn-cob\npipe industry!\nMy best wishes to\nyou for a Merry Christmas.\nAs ever yours,\nPSF Aqualative\nThe resolutions which were adopted by more than 40 farmers and\ntobacco men from the flue-cured belt are:\nBe it resolved by representative farmers, business men and warehousemen\nof the flue-cured tobacco area in meeting assembled:\n1. That we go on record as being in favor of the repeal of the\npresent Embargo Act and approve in principle the neutrality\nlegislation proposed in the last session of Congress by the\nPresident and Secretary of State;\n2. That we appeal to our Government to request the British\nGovernment to encourage its Nationals to resume the purchase\nof tobacco in this country;\n3. That we request the Agricultural Adjustment Administration to\nascertain and make available every resource of the Federal\nGovernment which may be helpful in supporting the price of\ntobacco occasioned by the withdrawal of English buying interests;\n4. That we go on record as favoring a referendum on tobacco crop\ncontrol for 1940 to be held as soon as the Secretary of\nAgriculture finds it practical;\n5. That we go on record as being in favor of a favorable vote on\ntobacco crop control for 1940 and that we urge our associates\nand friends to work for a favorable vote;\n6. That we go on record as favoring the opening of the Old Belt\nflue-cured tobacco markets on the same date that markets in\nthe other flue-cured tobacco belts reopen and that such opening\nbe as soon as possible;\n7. That the Governors, Members of Congress, farm organizations,\nExtension Division, the Department of Vocational Education,\nthe Farm Security Administration, the State Departments of Agri-\nculture, the warehousemen and other businessmen be requested\nto give the Agricultural Adjustment Administration the fullest\npossible cooperation in explaining the situation and terms of\nthe referendum to the tobacco growers and businessmen of the\nflue-cured tobacco belt.\nPSF Wallace\n1\nfor\nDecember 27, 1939.\nMEMORANLUM FOR THE SECRETARY 02 AGRICULTURE:\nOn the basis of on examination of the accounts\nand statutes of the various credit agencies in the\nFarm Credit Administration, I believe that it 1a\nfeasible for then to pay into their revolving funds\nin the Treasury approximately $385 million out of\ntheir capital funda during the fiscal year 1941.\nPlease aue that plans are nade to accomplish\nthis and. If need should later arise, they can\nregain the funds,\n(FDR)\nLC:en\nPSF\nTHE WHITE HOUSE\nWASHINGTON\nagrin\nJanuary 2, 1940\nPRIVATE AND\nMEMORANDUM FOR\nTHE SECRETARY OF AGRICULTURE\nThis is for your eyes only.\nIt 1s interesting. Please send it\nback to me.\nF. D. R.\nEnclosure\nLet to Mrs. R. 12/29/39 from Gardner\nJackson, 1037 Earle Building,\nWashington, D. C. re suggestions for\nman to be appointed to succeed Silcox.\nSuggests Raphael Zon, head of Forest\nExperiment station in Minnesota; Lyle\nWatts, Portland, Oregon; Christopher\nM. Grainger, one of Silcox' assts;\nEdward N. Munns, Chief of the Division\nof Forest Influences; etc.\nTile\nDEPARTMENT OF AGRICULTURE\nSTATE THE REPARTMENTO )\nWASHINGTON\nJanuary 4, 1940.\nThe President,\nThe White House.\nDear Mr. President:\nI am returning Mr. Jackson's letter. It is\ninteresting that some of his recommendations are so\nsimilar to my own observations, as expressed to you\nin a memorandum some days ago.\nRespectfully,\nHawallace\nEnclosure\nSecretary.\nPersonal\n1037 Earle Building\nWashington, D. C.\nDecember 29, 1939\nMrs. Franklin D. Roosevelt\nThe White House\nWashington, D. C.\nDear Mrs. Roosevelt:\nIn accordance with my agreement in our conversation last\nnight I herewith set forth the judgments which have been given\nto me on a successor to Ferdinand A. Silcox as Chief of the\nU.S. Forest Service. The excuse for sticking my nose into\nthis is four-fold.\nFirst, Robert Marshall, who was Chief of the Division of\nRecreation and Lands in the Forest Service, was, as I told\nyou, the most intimate friend my wife and I had in Washington.\nHe had often discussed with us the personnel of the Forest\nService. His ideas were the most objective and public-spirited\nand intelligent of any man we knew anywhere in the Government\nService.\nSecondly, Silcox himself was a very close friend of mine\nand had talked his problems over with me many times, and had\nhimself spoken of various men in the Service.\nThirdly, Gifford Pinchot, through Bob Marshall, became\none of our close friends and had talked with me of the Ser-\nvice, and since Sil's death has been in touch with me about\na successor to S11.\nFourthly, a number of men in the Forest Service have\ndiscussed the problem with me since Sil's death and have\nurged me to help in any way I can to assure the appointment\nof a successor to S11 who will maintain and extend the prin-\nciples in the Forest Service which Sil exemplified. Pre-\neminent among these is one of Bob Marshall's closest friends\nwho has become one of our closest friends, Raphael Zon, head\nof the Forest Experiment station in Minnesota. Zon, you will\nprobably remember, collaborated with the President in putting\nacross the Shelter Belt against the ridicule and wise-cracking\nof reactionaries in the Forest Service as well as outside.\nThe President, I am sure, has lived to chortle at the expense\nof the know-it-alls of those days. The day of S1l's death\nZon wrote a confidential letter to me, excerpts from which\nfollow:\nMrs. Roosevelt\n-2-\nDecember 29, 1939\n\"Our ranks are thinning; so much more reason that\nwe stick closer together. My first impulse, upon hear-\ning of Sil's death, was to go to Washington. For fear\nthat it would be too much of a strain on me, Mrs. Zon\ninsists on delaying the trip until my presence, in your\nopinion, will be essential.\n\"S11 is dead, but it is up to us, Pat, to see that\nthe liberal ideas with which he had so much difficulty\nto permeate the Forest Service must go on. You have a\nrendezvous with the destiny of the Forest Service and\ncan do much to prevent the appointment of a successor to\nSil who is likely to wreck whatever liberalism still re-\nmains in the ranks of the organization.\n\"There is danger from three directions: Ickes may\npress for the appointment of Rutledge, who used to be\nin the Forest Service and is now in charge of Grazing\nin the Department of Interior; Professor Nelson Brown\nof Syracuse, who boasts of being a friend of the Presi-\ndent; and Tinker, who just resigned from the Forest\nService to take a $15,000 job as Secretary of the Ameri-\ncan Pulp & Paper Association, but who would not hesitate\nto jump back, with the assistance of his lumbermen\nfriends, into the Forester's shoes. I need not tell\nyou that the appointment of any of these three would be\ncalamity.\n\"There is also danger that the Secretary himself may\nwant to appoint someone who is not a forester, so 8.8\nto bring the Forest Service closer into the fold of his\nagrarian program. The Forest Service, as you know, was\nmore or less of a thorn in the flesh of some of the\nsimon-pure agriculturists in the Department.\"\n\"I shall be ready to go to Washington if you think\nthat I can be of any assistance to you.\"\nSo that 1s why I presume to make the following suggestions:\nLyle Watts, Chief of the region with headquarters at Portland,\nOregon, seems to be agreed upon by all my friends as a person\nnot only of liberal and public-spirited 1deas in forestry, but\nalso in the general social and economic situation in which our\ncountry is at present. He, moreover, is credited by all my\nfriends with being a person of very great personal charm, who\nMrs. Roosevelt\n-3-\nDecember 29, 1939\nhas a fast-moving intellect which operates quite as well when\nhe is on his feet under pressure, as when he has opportunity\nfor calm, reflective study.\nChristopher M. Grainger, one of S1l's assistants, is the\nkind of person who would most certainly want to hold everything\nthat has been gained under S1l's administration. He happens\nto be one of our family's close friends, having married my\nwife's most intimate school crony in Denver. We first came\nto know him during our years in our home state of Colorado and,\nof course, have seen much of him and his wife, Louise, since\nwe have been here in Washington. He is a man of absolute in-\ntegrity and sincere devotion to the public interest as he sees\nit. He is somewhat older than Lyle Watts, I believe, and is\nprobably more sot in his ways.\nA forester for whom I, personally, have the greatest res-\npect and affection is Edward N. Munns, who is now Chief of\nthe Division of Forest Influences here in Washington. Ed has\nbeen in the Forest Service 28 years, and is an Illinois boy,\na graduate of Bradley Institute at Peoria, with his Master of\nForestry degree from the University of Michigan. Immediately\nfollowing graduation from Michigan he entered the U. S. Forest\nService as field assistant in the Shasta National Forest in\nCalifornia, and subsequently rose through various ranks to be-\ncome principal silviculturist here in the Washington head-\nquarters. He has been in the Washington office since 1923.\nAll my other forestry and conservation friends, such as Gifford\nPinchot and Raphael Zon, think extremely highly of Ed Munns.\nHe is man of 51 or 80 years of age.\nFinally, the suggestion has been made to me by certain\nfellows in the Forest Service that Rexford G. Tugwell, be-\ncause of his long and close association with Sil, might be\na possibility. I pass that suggestion on without comment.\nThe lack of comment must not be taken by you to mean that I\ndon't have a high regard for Rex. So many factors enter into\nany serious consideration of suggesting him that I do not\nthink it 1s my place to embark upon a discussion of them.\nPlease forgive the extent of this communication. My rea-\nson for having been so long-winded is that I want you to know\nwhy I butt in, and also how deep an obligation I feel, both\nto the memories and principles of Bob and Sil, and to the\nForest Service itself, which is one of the really top-notch\nexamples of administrative efficiency in the Government. I\nhope you will be able, as you suggested last night, to transmit\nMrs. Roosevelt\n-4-\nDecember 29, 1939\nsuch portions of this communication to the President as you\nthink advisable.\nI do not need to tell you how deeply my wife and I appre-\nciated the cordial hospitality which you and the President ex-\ntended to us last evening.\nYours sincerely,\n9am GandnerJackson\nGardner Jackson\nP. S. On the chance that you did not see my letter in the\nNation about Bob Marshall, I am enclosing a copy of it.\nGJ:CD\nEnc.\n3\nAgriculture\nWallace\nDEPARTMENT OF AGRICULTURE\nSTATE MASSACHUSETTS )\nWASHINGTON\nMan\n19\nMarch 18, 1940\nRECEIVED\nTHE WHITE \\ HOUSE 48\n&\nThe President\nThe White House\nDear Mr. President:\nI am sending you herewith three clippings, dealing with\nthe farm political situation in the middlewest. One of them is\nwritten by William Allen White, one by W. W. Waymack and the other\nappeared in the \"Kansas City Journal.\" These clippings together\nwith the Gallup Poll which appeared in the March 17 \"Washington\nPost\" furnish considerable material for political and agricultural\nreflection.\nThree quarters of those midwest farmers who have & definite\nopinion believe, according to the Gallup Poll, that the adminis-\ntration farm program has been helpful. At the same time, fifty-\nfour per cent of these midwest farm voters indicate they would\nlike to see the Republicans win the Presidency in 1940. This is\nin spite of the fact that the percentage of middlewestern farmers\nwho now want a. Democratic President is enormously greater than ever\nwas the case prior to 1932. Once these farmers were almost unani-\nmously iron-clad Republicans. The trend to the Democratic party\nin recent years has been tremendous, but it will require another\neight years to carry the process to its logical point. At present\nmany of the farm voters of the middlewest tend to judge the Repub-\nlican party nationally on a basis of its actions locally. In other\nwords, if the local Republican congressmen support the farm program,\nthere is danger of these farmers voting for a Republican president.\nGeneral Wood wrote me the other day: \"I believe these facts are\nbeginning to be generally realized and that regardless of party -\nRepublican or Democratic - the farm program will go ahead with\nonly slight modification for the next few years.\" This is the\nattitude of many whose allegiance was long to the G.O.P. and who\nwish to find an excuse for returning to their Republican gods.\nSenator McNary may know and hate the machinations of Joe\nPew and Ernest Weir but the farmers of the middlewest know nothing\nabout these gentlemen. Not one in 100, probably not even one in\n1000, is familiar with the analysis made by William Allen White as\nenclosed herewith. The middlewestern Republican congressmen, gen-\nerally speaking, have played along with the New Deal in about the\nmanner described by Bill White. Waymack, who writes for a paper which\nis traditionally Republican but which has been friendly to both the\n- 2 -\nfarm and the trade agreement programs, displays the same suspicion\nas White of the current tactics of the eastern wing of the Republican\nParty.\nIn much more hypocritical form than ever before, we shall see\nthe effort made by the Republicans in 1940 to bring about an accommoda-\ntion between the eastern wing of the Party, which honestly wants\nnothing whatever to do with the farm program, and the western wing\nwhich will fight for the continuation of the present farm program\nvirtually unchanged but under Republican control.\nI presume that whatever the nature of the Republican platform\nand the candidate, William Allen White will be out supporting both.\nBut the manner of support by him and men like him will have & lot\nto do with determining where the seven million independent voters to\nwhom he refers will eventually land. No man has such a great appeal\nto these seven million voters as yourself.\nI trust you can eventually take a little time to study these\nthree clippings because they present in quite clear form the outline\nof things to come.\nRespectfully yours,\nHQWallace\nSecretary\nSpringfied Republican\nNATIONAL NEWS\n6\n3/14/40\nTHE\nEast and West Seen Fighting\nTo Control G. O. P. Strategy\nlesues that from large in the 1910 presidential compaign\nand the problems that confront the national party conventions\nare discussed here by \"the ange of Emporia,\" and editor scho has\nbeen ox observer of the American acene for more then half a\ncentury and 4 confident of the nation's political and industrial\nchiefs.\nOn the other hand, the conserva.\nBy WILLIAM ALLEN WRITE\ntives would denounte the new deal\nEmports, Kan March I-(NANA)-\nfrom top to bottom, would Teave the\nThe tread of the next national plat-\nInference that they would abolish the\nform of the Republican party will de-\nnational labor board, repeal the wages\npend entirely upon two things: First,\nand hours law, leave Wall street us.\nwho controls the Republican conven-\nregulated and the great public uris-\ntion: and accond. who controla the\nthe to go their free war. If the\nDemocratic convention.\nconservatives control the Repulitiese\nplatform committee. they will make\nWhich is to my, there are in\ntheir fight directly upon Franklin\ncrowds, anciant enemies, struggling\nRensevelt and his beire and anelgns.\nfor control in the Repoblican con-\nThey will assume that he will the\nvention: One crowd, the group that\nwither the nomisee or will name the\ncontroled the national Republicas\nDemocratic candidate.\ncentral committee and located the\nIf Dested Third-Term Issue\n1940 national Republican convention\nin Philadelphia, the sent of black ne-\nIf Roosevelt does not rus est they\nAction: the other crowd that low\nare denied the third-term the\nour in the Republican national CED-\nRepublican platform under the ma-\ntral committee and that would have\ntril of the right wingers will be a\ntaken the convention West.\nwheep of rage At the new del and\nThe two crowds are the stealled\na promise to return to the good eld\nliberals, or programires, on Lite -\ndays. prenumably of William Mo-\nhand. and the conservatives and for\nKinley.\nBut now for the second alternative\nactionaries on the other. Brondts\nspeaking, It is the Enet sealnet the\nfactor Republican platform writers.\nWest, the Atlantic Igying in\nI mean the control of the Democratic\npersuade the valley, the\nennvention. The president may fool\nmountain states and the states of the\nthrm. The Repoblican convention\nFar West to the usetern viewpoint.\nmeets first and It to not likely that\nThe Republican conservative crowd\nPresident Roosevelt will solve the rid-\nhas the money and with the mones\ndie of the third-term aphins with\nwill gu the Houth in the Republican\nthat convention is adjourned. The\nconvention. But the western crowd\nRepoblicans will have to write their\nhas the electoral votes DECEMARY to\nplatform guesing about their rest\nelect a Republican President.\nepponent. If they should ryer and\nThe strugggle for domination of the\nrage at the new deal and the third\nRepublican platform committee In\nterm and at the last, Roosevelt should\nPhiladelphia will be finished during\nmake the great renunciation, the con-\nthe first two days of the convention.\nservatives writing the platform might\nwhen . permanent chairman le elected.\nstep off the deep end of nowhere.\nThe Bouth and the East, voting to\nAnd a smart politician like Ronsevelt\ngether, may easily dominate the or\nis likely to do everything in his power\nto confuse his Republican enemies.\nganisation of the conventies. But\nThat may Account for his allence.\nthe West, being crowded at the plat-\nHoomevell's allence may be amount\nform, may concentrate upes the can-\nDemocratic politics. But by the last\ndidate.\nProposals Please West\nof June oven amart politics carrot\nprevent the Democratic leaders from\nThe platform suggestions whitenit-\nrevealing somewhat their attitude.\nted by the Glens Frank committee\nThe Democratic primaries will have\non the whole pleased the West. The\nbero named The Republicane can\nWest could take that platform as .\nsee what may happen, but they must\nBist draft and a to Bat. The Ear:\ntake a chance. They must be willing\ndesply resented Glenn Frank's pro-\nto bet upon the Impact of Roosevelt\nposals. That controversy boils down\non the Democratic convention and Its\nto this The western Republicans.\nconclusions.\nwhose few representations in Con-\nIt is fairly therefore, that,\nEYes survived the landatidés of \"RI\nwhether Rousevelt or his epeciles con-\nand '24, had voted for most of the\ntrel the Democratic convention, the\nnew deal measures in principle. They\nmoderate course of the western\nwere careful to gift on record uphold.\nliberals would write a. platform with\nIng collective terguining, a Bone for\na wider appeal than that which the\nwages, and a root for hours of labor\nwantern conservatives would write,\nthe control of patitic utilities, the\nFor whether Roomevelt owns or 000-\nregulation of the stock exchange and\ntrols the convention, the unemploy-\nthe principle of old-age pensions and\nment Issue may easily become the\nsome kind of unemployment Insur.\nparamount domestic issue in the cam-\nance Western Republicans, on the\npaign. And with Receivelt no the\nwhole, would les that portion of the\nticker. off the ticket, controling the\nnew des! stand na A fact access-\nticket, or defented by the Democratic\nplished, without promising to repail\nconvention, It will be wine for the\nthese laws, but rather to strengthen\nRepublicabe to calse the parament\nthem. make them more workshie and\nlesue of unemployment by adepting\nequitable.\nA. definite constructive program to out\nThe Westerners would make un-\ndown unemployment. Upon that Issue\nemployment the major leege, Their\nla the hettlegred.\nthey would differ deoply with the new\nWant to Keep Out of War\ndeal The westerners would trg to\nIf the President attempts to inject\nstop lending and spending. They\nforeign relations Into the campaign, Et\nwould guit scaring bustness to death\nwill be evident that be expecte to win\nand, after returning the administra-\nby some sort of hookup with one of\nthe of putitle mist for the states, with\nthe beiligerente the Europe. Once the\nfederal and, the Westerpers would at-\nAmerican people ⑉ the notion that\ntack unemployment from a new snale,\nPresident Roomevelt, on the ticket or\nthe engle of returning providerity\ncontroling the ticket, is trying to shift\nThree - Am\nthe fight from the dumestic scene to\nWilld -\nEurope, the Democratic party is gone\nplattorm to\nFor the voters, above everything sise\nabottening penitive taxes upon\nen earth, want to keep out of war.\nDEM. They Would soccurage the re-\nAM the Republican platform-makers\nopening of industry through the -\nwill be mafe if they concentrate upon\nmoval of the clement of fear that has\ndomentic\nhovered over big business for the last\nIn the end. the campulgo of 1941\nseven years.\nWILL be was by the Independent vote.\nIn 1936 Landon pollet approximately\n17.000,000 and polled 29.-\n600,000, Haven milline Independent vot-\nare can shift alightly to the right and\nthrow the election to the Republicana\nEven a smaller number, well dis-\nin the electoral college might\nturn the 130a. But the Independent\nvote will to IL The independent voter\nla may to hold with the wastern\n43 he has held with them\nfor if years, from the first Brose-\nto fay through the LA Folletie\nregime, down to Letifon's secendancy\nPAGE FOURTEEN\nThe Moines Register\nPublished ***** workday murning by\nTHE REGISTER AND TRIBUNE CO.\n713-55 Local EL\nRistered et the Postation to Das Moines\nTo., .. - class matter\nIn the third now we\n(TM Des Maines Leader,\nare getting to something im-\n⑉ 1840.)\n(TM Town Blate Register,\nportant-it is not true that the\nRelablished is 1856.1\n\"farm policy of Secretary Wallace\nSUBSCRIPTION RATES,\nwas likewise an issue.\"\nFATABLE EM ADVANCE\nAnd we don't like the experiess\nDaily Register FEAZ, se\nDue Tribute- One FORT, 1A.\nwith which Mr. Hamilton and\nBunday Register-Com year. se\nBY MAIL OUTSIDE IOWA,\nsome other national Republican\nDate Beging year. 87.\nspokesmen leap to the conclusion\nDate Mointe Tribung One sear, ST.\nRunday Register-Ow pear, ST.\nthat this was true.\nTHURSDAY. MAR 7. 1940.\nWe don't think such demonstra-\nFEBRUARY CIRCULATION, NET PAID,\ntiona of engerness are going to\nDaily\nREGISTER\nAND\nhelp the G.O.P. this year.\n307,102\nTRIBUNE\nFor if it creates among farm-\npay Register\nDate Tribune\n129.272\nare the impression that what these\nDESMOINER\n357,613\nleaders really ache for La an ex-\nSunday\nREGISTER\nCUM to junk the whole federal\nla Des Mators,\nfarm program-If It shows that\nBunday Register\nDaily Register and Tribune $2.465 98.142\nthey are looking for even the\nNamber of the Associated Press.\nthinnest excuses to convince them-\nThe Associated Prime le entitled excis-\nselves that this la A politically\nEVERY to LN for publication of all seve\ndiapetches credited le in the pager and\nmafe thing to do-well, in that\npublished herein Blughte of registration\nof all other matter published - Into area-\ncase it is going to be, for the\npaper are sin reserved.\nG.O.P., \"too bad\nA Bureau of Accuracy and Fair\nPlay organized to assure is every\nBecause-take note of this, Mr\ncase prompt and immediate atten-\ntion to any complaint is main-\nHamilton and colleagues-thie\nfaired by The Register. It is open\nspecial congressional election in\nevery day except Sunday. The Reg.\nthe Sixth lows, district emphatical.\nlater soill gladiy correct any errors.\nly did not prove that ANY Re-\nI\npublican candidate standing on\nEASYI EASYI DON'T\nANY old kind of platform can\nearry ANY agricultural district\nCONCLUDE TOO MUCH.\nIn 1940.\nTen seconds after it was known\nWhat It really showed la that a\nthat Robert Goodwin, Republican;\nparticular kind of Republican\nhad won the race for the vacant\nnominee standing on a particular\ncongressional post of Cassius\nkind of platform can hold the\nDowell in this Bixth Iowa district,\nnormal Republican vote and can\nsome of the G.O.P. brass hats in\nmake an excellent showing in even\nthe cast began crowing that the\nthe farm counties of a district\n1940 national fight is over-that\nthat la half urban and half rural.\nthe drift to the Republicans la so\nBy \"particular kind of nominee\"\nclear and overwhelming now that\nwe mean one who has the genuine\nb\nnobody can doubt the result.\nconfidence of most farmers, in-\n0\nThe tostant pronouncement of\ncluding numerous farm leaders\nJohn D. M. Hamilton, chairman of\nwho are very strong for the fed-\nthe Republican National commit-\neral-farm program and even for\ntee, our like this:\nSecretary Wallace himself.\nBy \"particular kind of plat-\n\"Not only was the New Deal a\nform\" we mean one, consisting in\nclearent Issue In fals special\npart of what the candidate said\nlowa election, but the farm poll-\nin speeches and in part on what\ney of Secretary Wallace was\nwas actually known about him,\nElkewise an Issue. Let It be re-\nthat the farm people emphatically\nmembered that the Sixth Iowa\ndid NOT interpret as & program of\ndistrict is Mr. Wallace's OWN\njunking the Triple-A and the other\ncongressional district. The re-\nparts of the present national set-\nsults speak for themselves.\"\nup for the farm.\nWhos! Back, Mr. Hamilton!\nIn short, what the G.O.P.\nWhos! Back!\nnationally most needs in order to\nrecapture the farm vote was pres-\nBure, the \"results speak for\nent in this election.\nthemselves.\" if you will just take\nIt was present in the person of\npains to find out what they are\na nominee whom most of the\nand what lies behind them.\nIn the first place, this is one\nfarmers believed to be FOR their\nof those \"normally Republican\ncause, honestly.\ndistricts.\" Capturing it again eer-\nThere, Mr. Hamilton, in the\ntainly importe that the G.O.P.\nthing for you and your associates\nto not losing any ground. But that\nto reflect upon seriously.\nfact nione does not MARUFO .\nIn It there in encouragement for\nnational Republicar landatida,\nyou-provided you learn the les-\nIn the excend? place, the New\nson.\nDeal WAS made an Issue. And\n-\nBut merely uttering Band-wagon\nthe result does show that a Demo-\nyelps, which by their nature create\ncratic candidate in this normally\nthe suppicion that you are deter-\nRepublican district cannot in a\nmined to read into everything .\nspecial election, which to not as-\nproof that the whole farm vote\nsociated with a general national\ncan be got this year without estab-\ncampaign, aweep the district by\nlishing the firm Intention of the\njust Identifying himself strongly\nG.O.P. to play fair with the\nwith New Dealism. This may be a\nfarm-\ngood indicator that the same\nTHAT won't help any. That will\nwould hold true in a general elec-\njust hurt.\ntion. We rather think It is. But\nit lan't quite proven.\nPage 16-Editorials\nKANSAS CITY JOURNAL\nFounded 1854\nPublished Daily and Bunday by the\nKANSAS CITY JOURNAL-POST COMPANY\n22nd at Oak\nVictor 4000\nKANSAS CITT. MISSOURI\nORVILLE s. M-PHERSON, President and Publisher\n1. c. JOHNSEN, Vice Pres-Aus'L Publisher\nRUSSELL a. MILES, Vice Pres.-Oeneral Manager\nB. P. CAMPRELL, Executive Editor\n2. W. WEST. Managing Editor\nBAT BUNNION, Editor\nRepresentatives: 410 North Michigan Avenue, Chicago, m.\n513 Fina Avenue, New York, N. Y.\nRearst Building, tian Francisco\nHARVEY a. MALOTT, Advertising Director\nSUBSCRIPTION BATES\nBY CARRIER: 15 centa a week, 65 denta a month on estab-\nBaned carrier routes.\nST MAIL: 63 cente & month, $7.80 & year, in Missourt,\nKensas, Iowa, Nebraska and Okis-\nhoma; alsewhere, double above rates.\nEntered as Becond-Class Matter at Port Office\nMarch 8, 1940\nFarmer Dewey\nCandidate Dewey spoke in Lincoln the\nother night. Since Lincoln is the center\nof a farm area, he exhaled the New York\nair from his lungs and became chummy\nwith the farmers. Mr. Dewey has a\nform\nprogram There in little question\nas to where he got it.\nHe favors & fair parity between farm\nprices and industrial prices. Every poli-\ntician has been for farm parity since the\nbeginning of time. This is Mr. Dewey's\nidea of how it can be attained:\n1. A crop loan program. Such &\nprogram is already in effect.\n2. A program of soil conservation.\nThousands of farmers in his Nebraska\naudience are already participating in\nsuch 8 program.\n3. Conversion of submarginal land to\nmore economic uses. Thousands of\nacres of submarginal land are being con-\nverted to more economic uses by the\nCCC and other agencies.\n6. A program of marketing agree-\nments. Nothing new in that to Nebraska\nfarmers. Most of them are participating\nin one already.\n7. Research to provide new uses for\nfarm products. This is already being\ndone by the Department of Agriculture\nin its chemurgy program.\n8. Extension of the farm co-opera-\ntive movement. It is difficult to surmise\nwhat more Mr. Dewey could do in this\nfield than has already been done, unless\nhe compelled farmers to participate in\nco-operative marketing whether they\nwanted to or not.\nMr. Dewey promised the Roosevelt\nfarm program to Nebraska farmers as\nif they had never heard of it. Perhaps\nit is good politics, but it speaks little for\nMr. Dewey's originality in the field of\nagriculture.\nStare culture\nTHE WHITE HOUSE\nDEPARTMENT OF\nAGRICULTURE PH\n'40\nSTATE STATE DEPARTMENTOR )\nWASHINGTON\nRECEIVED\nMarch 30, 1940\nThe President\nThe White House\nDear Mr. President:\nSometime ago Isador Lubin, who, as you know, is one of\nMadame Secretary's right hand men, requested me to write for\nan economic journal a review of Thorstein Veblen's \"Imperial\nGermany\", a book which was written in 1915 and which I read at\nthat time but which I re-read recently. While most of this\nbook was written before the great war broke out in 1914, Veb-\nlen's understanding of the German institutions was such that\nhe foresaw in essence almost all of that which has taken place\nbetween 1915 and 1940. Those who think that getting rid of\nHitler will clear up the situation simply don't know what they\nare talking about.\nI would not ask you on your vacation to go to the labor\nof reading all of Veblen's \"Imperial Germany\". You can perhaps\nget sufficient of the drift by reading my review. However, I\nwould suggest that at your earliest opportunity you get from\nthe Congressional Library Veblen's book \"The Nature of Peace\"\nwhich he completed in late 1916 or early 1917 just before we\nentered the war. His full appreciation of what it is that\nproduces the bandit character of Germany and Japan, and what\nis required to offset their destructiveness is most amazing.\nMind you, he foresaw in 1917 that at the next turn of the wheel\nGermany and Japan were almost certain to be working together.\nI would not recommend that you read all of this book \"The Nature\nof Peace\" but if you will dip into it on page 238, I feel con-\nfident you will find it difficult to lay it down until you have\nread many pages. This book will cause you to relive much of\nthe history of which you were A part and to project yourself\n-2-\nforward into the history of which I trust you will be an even\nmore vital part.\nIn the next peace, the mistakes of the last one must not\nbe repeated. Even if you don't agree with all that Veblen says,\nyour mind will inevitably be clarified by the profundity of his\nanalysis. Unfortunately his style is a little difficult.\nRespectfully yours\nHQWallace\nSecretary\nREVIEW OF THE BOOK \"IMPERIAL GERMANY AND THE\nINDUSTRIAL REVOLUTION\" WRITTEN BY THORSTEIN VEBLEN\nIN EARLY 1915.\nBy Henry A. Wallace.\nOf all the men who prior to the great war studied the forces\ngrowing out of heredity, oustom, anthropology, statecraft and econom-\nios in an effort to project a trend, Veblen was one of the most suo-\ncessful. He had in him the prejudices of an educated Norwegian\nfarmer who feels that he is as good as anyone but has nevertheless\nbeen preyed upon by the citizens of the nearby small towns who have\nunfairly used against him their superior knowledge of law, politics\nand American customs. This slight and perhaps justified bias on\nthe part of Veblen did not interfere in any material way with the\nbrilliance of his analysis 25 years ago of the trend in such nations\nas Germany, England, the United States and Japan.\nThe book on \"Imperial Germany and the Industrial Revolution\"\nwas projected before August of 1914 and the writing was hastily\ncompleted in late 1914 and the first month or two of 1915. Apparent-\nly Veblen added a few penoiled footnotes to the proof-sheets in\nApril of 1915. I read the book when it first came out in 1915 and\nhave reread it again in March of 1940. As a result I want to give\nit as my considered opinion that the book has fully as great sig-\nnificance in the present world situation as the devastating criticisms\nmade of Hitler by Rausohning. The man who reads both Veblen and\n- 2 -\nRauschning will have his perspectives greatly deepened and sharpened.\nOnly by having both points of view in mind can we deal sensibly with\nthe Germany of today.\nVeblen's book is probably the most acute analysis of modern\nGermany which has ever been written. And yet strangely enough the\nSolicitor of the Post Office Department of the United States denied\nto the book \"Imperial Germany\" mailing privileges while the United\nStates was in the great war. The Post Office Department in that day\napparently was unable to appreciate that Veblen's book was a harder\nblow at Germany for the very reason that it was fair, objective and\ndid not say a single word against Germany.\nThe Veblenian thesis with regard to Germany is roughly as follows:\nThe hybrid people of Germany by heredity in any given degree of\nlatitude are about the same as the people in a corresponding degree of\nlatitude in any of the adjoining countries. From England to St. Peters-\nburg the people at birth have about the same characteristics. Those of\nus who are well acquainted with the Germans of the third and fourth\ngeneration in the United States know that Veblen is substantially\nright. As a. geneticist I am convinced he is right. Most, though\nperhaps not all of the anthropologists, will agree with him. There\nis no basis whatsoever for the myth that the Germans by heredity are\na superior race.\nWhence, then, comes their reputed superiority in certain matters\nof science, technology and military capacity? In developing his thesis\nalong this line Veblen spends most of his energies contrasting Germany\nwith England. Politically and technologically, England is far more\n- 3 -\nmature than Germany. Germany was living in the spirit of the Middle\nAges up until the second quarter of the 19th Century and she didn't\nreally wake up until 1870. She then found ready to her hands a.\nsystem which England, and to a lesser extent, France had already\nworked out. But in taking over the technological system, she had\nall the advantages which are enjoyed by a manufacturer who is con-\nstructing a new plant. The Germans, therefore, promptly became\nmore efficient than the British in many fields of endeavor. But the\nmost notable advantage existed because of the high sense of duty of\nthe German people and the faot that they had become accustomed to a\nfrugal standard of living and did not expect much. The British system\nhad accumulated a lot of sand in the bearings and the most notable\nhandicap of all was the British gentleman and his expensive, irrele-\nvant habits. Veblen's irony with regard to British sport is really\npriceless. Here we see the Norwegian farm boy turned professor ab-\nhorring the waste of the upper classes and yet under the necessity\nof holding on to his job as a. professor, bitterly in earnest and\nenjoying himself in the following words:\n\"Sport, on the scale, and with the circumstance attending\nits cultivation in the United Kingdom, cannot be incorporated in\nthe work-day scheme of life except at the cost of long and per-\nsistent training of the popular taste. It is not to be done by a.\nbrusque move. It is quite beyond the reach of imagination that any\nadult male citizen would of his own motion go in for the elaborate\nfutilities of British shooting or horse-racing, e.g., or for such\n- 4 -\na tour de force of inanity as polo, or mountain-climbing, or ex-\npeditions after big game. The deadening of the sense of proportion\nimplied in addiction to this round of infantile make-believe is\nnot to be achieved in one generation; it needs to have all the\nauthenticity that tradition can give it, and then its inculcation\nin the incoming generation must be begun in infancy and followed\nup throughout the educational system. Nor would it be tolerated\nby popular sentiment if it were not that popular sentiment has\ngradually been bent to the same bias by slow habituation, Yet so\nfar has the habituation done its work that the community at large\nnot only tolerates these things, but all this superfluity of in-\nanities has in the course of time been worked into the British\nconception of what is right, good, and necessary to civilized life.\"\nVeblen goes on to say that sports have bent the British\npopulation, \"in the direction of trivial emulative exploits and\naway from that ready discrimination in matters of fact that con-\nstitutes the spiritual ground of modern technological proficiency,\nIt is not so much that this perversion of the British population\nby sportsmanlike preccoupations wastes the product and the energies\nof the industrial system, as that it perverts the sources from which\nthe efficiency of the industrial system is to come. Its high conse-\nquence as a means of destruction lies in its burning the candle at\nboth ends. Again it is to be noted that the generation and estab-\nlishment of such a pervasive and stubborn habitual bent takes time,\n- 5 -\nand that to get rid of it would also require time, stress and ex-\nperience.'\n\"Gentlemen commonly have no industrial value. Indeed, as\nbears on the net industrial efficiency of the community they have\nappreciably less than no value, being typically unproductive con-\nsumers.\"\nIn the normal course of events, the Germans in a few more\ngenerations would have taken on most of the wasteful habits of the\nBritish. Their workmen would have gradually become infected with\nthe same ideas with regard to \"freedom and insubordination\" as among\nthe British. Financiers would gradually have taken the place of\ntechnological experts at the head of German industrial enterprises.\nPolitical graftwould have siphoned off some of the efficiency.\nThe women would no longer work in the fields and the Germans, like\nthe British, would then be occupying their minds with matters that\nare worse than useless for the purposes of industry. In 1914, how-\never, Veblen felt that the English gentleman of the better sort still\ncost several times as much as the corresponding German gentleman. In\nview of the hereditary identity of the English with the Germans,\nVeblen felt, however, that it would not take the German gentleman\nlong to become as useless as his British compeer. Unless accidents\ncame into the picture, Veblen anticipated that the disposable margin\nbetween the industrial output and the current consumption in Germany\nmight be expected shortly to disappear.\nThe attention is then turned to the Hohensollerns and the\n- 6 -\nDynastic State. Remarks along this line apply just as well today\nas they did 25 years ago if the word \"Hitler\" is substituted for\n\"Hohensollerns\" and the word \"Nazi State\" is substituted for\n\"Dynastic State.\" The imperialistic Dynastic State can live only\nas long as the people are imbued with romantio philosophies of the\nprescientific period. The fundamental dootrine is, of course, that\neach individual lives only for the State and that he serves it with\nhis utmost in order to make its war-like enterprises successful.\nVeblen freely admits that German imperialism has been more successful\nfrom nearly every point of view than any other with the possible ex-\nception of the Japanese. But he does not think that this success has\nbeen due in any way to the superior heredity of the Germans. The rela-\ntive freedom from graft and inefficiency in Germany has resulted merely\nfrom the accident of German bureaucratic imperialism having been built\nup in rather recent times. Translating from Veblen's rather obscure\nlanguage, I get the following: Give the Germans time and their im-\nperialistic bureaucratic system will be 8.8 full of graft as the\nRussian, the Turkish or the Persian and 8.8 stale as the Austrian. We\nmust admit, of course, that the German bureaucracy due to certain\naccidents which Veblen foresaw might come to pass, has not today in\n1940 taken on all of the inefficiencies and graft which Veblen anti-\ncipated would come to pass. Veblen's broad analysis would make room\nfor all of this and I am sure he would be among the first to admit\n- 7 -\nthat he could easily be wrong on the time factor. The precise words\nof Veblen are interesting \"what may be the rate of growth and the\nfinal degree of such senescence to be looked for in the Prussian-\nImperial bureaucracy is, of course, only a matter for conjecture,\nat the best; but its extreme volume, comprehensiveness and elabora-\ntion would suggest that something very appreciable in that way is\nfairly within the probability, since this state of things leaves\nrelatively little of German life outside the sweep of the bureau-\ncratio system, and 80 affords little purchase for any combination\nof forces that might conceivably hinder its perfect decrepitude.\"\nAnd then Veblen put on the following footnote, \"It is true, the\npresent (April 1915) conjuncture may so turn that speculations as\nto the future of the Imperial bureaucratic system will have little\nmore than speculative interest.\" If Rauschning is correct the\nLate\nNazi Germans of the last 30's had already acquired a considerable\namount of the graft foreseen by Veblen in 1914.\nAny nation whose people have the education to do a first\nclass job of building up B. good standard of living out of science\naster a time\nand technology will inovitably/repudiate autocratic and dynastic\ninstitutions. War is the chief force which can delay that outcome.\nIt is good to read the eighth chapter of Veblen's book to\nrefresh our minds as to the extent to which war had been worshipped,\n- 8 -\nprior to 1915 as the ultimate purpose of the German Reich. The key\neconomic policies in times of peace were directed toward the ultimate\neventuality of war. The tariff was used deliberately as a weapon of\neconomic warfare, Long prior to 1915 Germany set out on the path to\nencourage her people to produce as nearly as possible everything at\nhome even though the cost might be much greater than importing from\nabroad. An especial effort was put forth to enable the German farmers\nto produce for the German market 80 that imports of agricultural products\ncould be confined as nearly as possible to nearby nations. Railroads,\nroads, and a merchant marine were constructed with war in mind. Great\neducational and propagandistic efforts were put forth long before the\ngreat war to prevent the German people from asking, \"what do we get\nout of all this?\" The press was censored and education was distorted.\nThe powers of the police and the courts were freely used. The Gestapo\nis not something new under the sun; it is merely a perfecting of\nthat with which the Germans were quite familiar prior to 1915. Both\nin 1914 and today most of the Germans look on the British, the American,\nand the French attitude toward free institutions as sheer foolishness.\nThe Prussian Imperial State and more recently the Nazi State have both\nbeen so successful in fostering a united military spirit that it is\neasy to see how the Germans might temporarily fool themselves.\n- 9 -\nVeblen is confident of the ultimate downfall of the Prussian\nwar machine, saying \"It has been the usual fortune of military\nestablishments and war-like class organizations presently to fall\ninto a certain state of moral decay, whereby rank, routine,\nperquisites and intemperate dissipation come to engage the best\nattention of the specialists in war. Like other works of use and\nwont this maturing of the war-like establishment takes time and the\ncorps of war specialists under the Imperial auspices has not yet\nhad time to work out the manifest destiny of war-like establishments\nin this respect; although it may be admitted that 'irregularities'\nof the kind alluded to have by no means been altogether wanting.\nThe corrosion of military use and wont, in the way of routine,\nsubordination, arrogance, indolence and dissipation, has perhaps\ngone so far as would unfit this picked body of men for the duties\nof citizenship under any but an autocratic government, but they\nhave probably suffered no appreciable impairment in respect of\ntheir serviceability for war and its advocacy.\"\nVeblen knew enough about the Prussian universities of the\npre-war period to realize that there would be a continuing effort\nto bend the mind of the on-coming generation in the direction of\nbelieving that war is a supreme good. The qualities which are\nbrought to the surface by a warlike power which glories in its\nstrength are - coercion, personal dominion, self-abasement, subjec-\ntion, loyalty, suspicion, duplicity, and ill-will. The attitude\n- 10 - -\nof the warlike establishment whether it be illustrated by the\nElizabethan gentleman soldier, the Spanish conquistador, or the\nPrussian imperial statesman, is, so far as weaker nations are con-\ncerned, the moral attitude of the pot-hunter toward fur-bearing\nanimals. Veblen observes in one of his footnotes that \"One does\nnot keep faith with the fur-bearing animals.\"\nIt has always been exceedingly difficult for the people of\nthe United States since 1870 to size up Germany correctly, because\nwe have so many excellent people of German ancestry among us,\npeople who represent a fine home life, industry, decency, and in\nmany cases an unusual appreciation of the arts. The Germany of\nGoethe, Kant, Beethoven, and Heine has always commanded American\naffection. Even the experience of the World War has scarcely disabused\nour minds. The American people like the Germans who live in the\nUnited States. But if Veblen were living today he would almost cer-\ntainly look on Hitler merely as the current expression and extension\nof the pre-war Prussian Imperial spirit. The German people of the\nUnited States for the most part are descended from the men who, when\nthey left Germany, either had no knowledge of the Prussian Imperial\nspirit or who actually were fleeing from it. German-Americans who\nprior to 1917 sympathized with Germany, and who at the present time\nare sympathizing, are in most cases not familiar in the slightest\nwith what has happened to Germany in the past eighty years. In say-\ning this I do not want to imply moral censure on any nation. So far\n- 11 -\nas diplomatic prevarication and duplicity is concerned there is no\nreason for not agreeing with Veblen that under like ircumstances\nand provocation many other nations would be able to give just as\ngood an account of themselves as the Germans.\nVeblen apparently uses the word \"provocation\" so far as\nGermany is concerned with the idea in mind that Germany even in 1914\nfelt that her time of a special advantage was short. From her own\nparticular point of view she should have struck in 1912 instead of\nwaiting two years. Veblen in early 1915 apparently overrated Russia;\nat any rate he takes the Germans to task for not rating the eventual\neconomic and military organization of Russia high enough.\nI have never read anything of Veblen's in which the thought\nwas not rather deeply buried with a multiplicity of ironic, scholarly,\nwords somewhat difficult to understand. Just what the real man\nthought, I do not know, and perhaps no one knows. Probably he was\nmore anarchistic than socialistic in his thinking. He believed our\nminds and bodies were evolved under rather small farm and village\nconditions, and that Germans, Englishmen, Frenchmen, Americans, and\nwestern Russians would all be happiest in living under those condi-\ntions. With German heredity as it is, and with modern technology of\nnecessity sooner or later destroying the base for Prussian Imperialism,\nhe can see no outcome in the long run other than a breakdown of German\nautocracy. The same would apply to Japanese autocracy, because Veblen\n- 12 -\nbelieved that the modern Japanese state was essentially similar to\nthe German state and that the Japanese statesmen were perhaps \"even\nmore shrewd, more callous, and more watchful in their practice of\nunashamed statecraft.\"\nVeblen is almost as critical of the United States as he is\nof lands overseas, feeling that the American business man has proved\nhimself notably inferior to his German compeer. In his supplementary\nnote No. 4 he has taken the hide off the American business man as\ntypically a real estate promoter, politician, and financier. He be-\nlieves that less than half as much has been produced by the American\nbusiness machine as could be produced. Describing the qualities\nof a successful American business man he says, \"To survive, in the\nbusiness sense of the word, he must prove himself a serviceable\nmember of this gild of municipal diplomats who patiently wait on the\nchance of getting something for nothing; and he can enter this gild\nof waiters on the still-born increase, only through such apprentice-\nship as will prove his fitness. To be acceptable he must be reliable,\nconciliatory, conservative, secretive, patient, and prehensile. The\ncapacities that make the outcome and that characterize this gild of\nself-made business men are aupidity, prudence and chicane - the\ngreatest of these, and the one that chiefly gives its tone to this\nbusiness life is prudence. And indispensable among the qualities\nthat command that confidence of his associates without which no man\ncan make himself as a business man, is a conservative temper ****\n- 13 -\nAmerica is the land of unlimited possibility, it is believed, both\nin respect to material resources and in respect of inventive genius.\nBut it is a notorious commonplace that the mechanical inventions\nwhich have in a sense made America what it is in the industrial\nrespect have not only not been made by the business men - they are\nastute and conservative, pecuniary strategists, with neither insight\nnor aptitude in technological matters - but have also not been made\nwith their support. **** And connected with this selective bidding\nup of pecuniary astuteness and quietism is the well known inefficiency\nof business management in American industry - well known among men\ncompetent to speak on these matters, though not well credited among\nthe business men at large, who commonly lack even the degree of\ntechnological insight necessary to appreciate the pecuniary loss\ninvolved in their own astute mismanagement.\"\nComparing the United States with Germany and taking into\naccount the very great American advantages in resources, he reaches\nthe conclusion that \"The American achievement in this field within\nthe same period has been notoriously less conspicuous and less\nsubstantial for example than that of Germany since the formation of\nthe Empire.\"\nVeblen then goes on to comment on the abuses committed in the\nname of industry by financial people interested in stock jobbing,\nwhich he calls \"Large-scale strategy for the interception of the\n'rake-off'.\"\n- 14 -\nI have the feeling that one of the motives animating Veblen\nin writing of Imperial Germany was to have another chance to take a\nwell concealed but somewhat effective poke at one of his pet abhor-\nrences, the American business man. During the period between the Civil\nWar and the great war, the Scandinavian farmers of the Northwest were\nsuspicious of the practices of small town business men. They were\nnot familiar with the language or the legal customs and undoubtedly\nmany of them felt they had been cheated. Moreover during the time\nwhen Veblen was on the farm, prices were continually going down and\nmost of his neighbors doubtless felt the trouble was largely due to\nmanipulation in the cities. While Veblen himself was too wise to\nshare superficial delusions, his philosophy must have found its\norigin in some measure in this background. As a Norwegian farm boy\nattending college with the sons and daughters of the local business\nmen, he was oftentimes ill at ease because of his farmer-like\nclothes. Out of this psychological situation no doubt came his\never-recurring phrase, \"Wasteful conspicuous consumption.\" Veblen's\nanimus, even though somewhat unfair, played undoubtedly a great part\nin unleashing his genius. Unfortunately Veblen rarely tries to find\na constructive solution. He is satisfied for the most part with\nanalysis, most of which is remarkably accurate. Frankly, I think\nthere is more possibility of good in the American business man than\nVeblen would care to admit. Since 1915 many of our business men,\nnotably the Du Ponts, have shown a willingness to throw exceedingly\n- 15 -\nlarge sums of money into scientific research. Involuntarily,\nperhaps, they have cleaned up many of the abuses of stock jobbing.\nIn spite of the rather terrible inefficiencies of our economic\nsystem we have made progress in devising a great variety of machinery\nto raise the standard of living. While most of the Veblenian\ncriticisms of our business economy still remain valid, we can find\nlittle suggestion in Veblen's works as to what to do to cure the\nsituation. Some of his writings would lead us to think that he\nbelieved in returning our business and our way of life to the village.\nBut with the Germans and Japs actively pushing we cannot help\nwondering if the so-called Democratic nations can be saved merely\nby following a program of breaking up large corporations and return-\ning the economy to small business operations. It may all be true\nthat our minds and bodies were evolved under simple conditions and\nwill eventually have to return to simple conditions. In the meantime\nit would seem to me that Veblen's own analysis of Germany and Japan\nwould indicate that we in the United States must strain every nerve to\nmake our democracy efficient while at the same time we do not abandon\nit.*\n* Friends who have read Veblen's works more extensively than I tell\nme that he had a strong appreciation, as exemplified in his \"Theory\nof Business Enterprise\", of the unworkability of small-scale competi-\ntive business enterprise under modern technology. While he had no\npatience with the building up of great trusts purely on a financial\nbasis, he did realize that modern machine technology had rendered ob-\nsolete the ancient small order of things. It may be, therefore, that\nmy emphasis on Veblen's homesickness for the village and farm economy\nis not completely warranted. His researches in anthropology led him\nin that direction but his appreciation of modern technology led him\nto understand the need for bringing rapidly and continuously up-to-date\nthe customs and institutions based on a small scale economy in order\nthat modern civilization might not destroy itself.\n- 16 -\nNo one can read Veblen's \"Imperial Germany\" without realizing\nin a perfectly dispassionate way, that the German war machine at the\npresent time must be psychologically very strong. The strength is\nderived only superficially from Hitler. It has its roots in several\ngenerations of systematic Imperial Prussian military indoctrination.\nMore recently the German strength is derived from a tremendous con-\ncentration of industrial power first in huge cartels, and later under\nSchacht, and Hitler. This situation is probably temporary (perhaps\none year - perhaps thirty) and the outstanding question is as to what\nwill happen to the rest of the world when and if Germany smashes.\nAlso there is the question of how far the other nations will have to\ngo in imposing economic controls during the period while Imperialistic\nNazi Germany continues with the system now in effect.\nNothing that has occurred in the last 25 years tends to cast\nany serious doubt on the correctness of Veblen's penetrating analysis.\nIf, however, his basic thought should prove to be wrong and if Germany\nshould display an ability to maintain for several generations a high\ndegree of economic efficiency as well as a capacity for military\nenterprise in an extreme form, then the entire world, including this\nhemisphere, would be confronted with a situation fraught with diffi-\nculty, danger, and the possibility of ultimate tragedy.\nOn the other hand, there appears to be nothing peculiarly\ninherent in the German mind (as distinct from the Prussian tradition)\nthat would make it impossible for the people of Germany to exorcise\n- 17 -\nthe evil spirit of militant imperialism. Should that occur,\nGermany could become a valuable asset to the family of nations\nand a powerful factor in economic and social progress.\nPostscript to Review\nAfter I finished this review, I became possessed with a\ngreat desire to take a fresh look at Veblen's work, \"The Nature\nof Peace\" which I had read 20 years ago but had forgotten. This book\nwhich was published in early 1917 before the United States entered the\nwar is just as remarkable in its prophetic insight as the book on Ger-\nmany. Curiously enough when I opened the book, the first passage on which\nmy eye fell was one dealing with the requisites of a league of nations.\nThe passage follows:\n\"It is true, the more genial spokesmen of the project\nare given to the view that what is to come of it all is a\ncomity of neutral nations, amicably adjusting their own re-\nlations among themselves in a spirit of peace and good-will.\nBut this view is over-sanguine, in that it overlooks the point\nthat into this prospective comity of nations Imperial Germany\n(and Imperial Japan) fit like a drunken savage with a machine\ngun. It also overlooks the patent fatality that these two are\nbound to come into a coalition at the next turn, with whatever\noutside and subsidiary resources they can draw on; provided only\nthat a reasonable opening for further enterprise presents it-\nself.\"\nVeblen in \"The Nature of Peace\" gives evidence of having studied\nthe shorter catchecism when he speaks cynically of the British gentleman -\ninvestors as being men of blameless propriety whose place it is \"to glor-\nify God and enjoy him forever\" whereas the function of the German gen-\ntleman - adventurers of prowess and proud words, is \"to glorify God and\ndisturb the peace.\" In no sense is Veblen pro-British. But he is con-\nvinced that the British gentlemen are reaching the end of their rope and\nthat the ruthlessness of the Germans and Japs in utilizing modern tech-\nnology in a factual instead of a gentlemanly wasteful manner will force\nthe whole world to face certain eventualities.\n-2-\nIf Veblen were writing today, he would doubtless make a num-\nber of changes in his analysis. And yet in the nain his understand-\ning of the trend of economic and political events is so profound\nthat his two books \"Imperial Germany\" and \"The Nature of Pence\" should\nbe required reading for the statemen of all the democratic countries\nof the world. They can't afford to make at the time the next peace\ncomes, the same errors that were made in 1919 and the early 20's.\nVeblen is verily a modern Isaiah and as such is without suffi-\ncient esteen in his own land.\nDEPARTMENT OF AGRICULTURE\nSTATE STATE DEPARTMENTO OREGON\nWASHINGTON HE WHITE HOUSE\nAPR 2 8 57 AM '40\nRECEIVED\nApril 1, 1940\nThe President\nThe White House\nDear Mr. President:\nI forgot to mention to you when sending you my review\nof Veblen's book \"Imperial Germany\" that I sent a copy of\nthis review to Secretary Hull. He had it carefully read in-\ndependently by two of his best men. The suggestions which\nthey made have been incorporated.\nThe postscript, however, referring to Veblen's book,\n\"The Nature of Peace\" has not been passed on by the State\nDepartment.\nNo one can read Veblen's book \"The Nature of Peace\"\nwithout being gravely concerned with what will eventually\nhappen if England and France make a premature peace with Ger-\nmany. Veblen, writing in late 1916 and early 1917 before we\nentered the World War, feared what ultimately came to pass.\nHe feared that a premature peace would be made with Germany\nand that eventually she would again break the peace.\nRespectfully yours\nHawallace\nSecretary\nPs F: Aqualture\nfilling free tile\nWallpres 940\nTHE WHITE HOUSE\nWASHINGTON\n5/1 1940\nSec. Wallace 'phoned:\n\"I just heard from Bill\nThatcher that the New Deal had\nwon the mayorality race out in\nSt. Paul. He feels it is\nsignificant of the Minnesota\ntrend.\"\nPSF Aquareture\n3\nDEPARTMENT OF AGRICULTURE\nA\nSTATE I DEPARTMENTO ))\nWASHINGTON\nMay 6, THE 1940 WHITE HOUSE\nMAY 7 10 37 AM '40\nRECEIVED\nThe President\nThe White House\nDear Mr. President:\nGuy Gillette gave me today a copy of a telegram he has\njust received, apparently a duplicate of a message sent to the\nother Democratic Members of Congress from Iowa, copy of which I\nenclose herewith.\nThis message seems to reflect the situation about which\nI talked to you on the phone when you were in Warm Springs, when\nI told you I had word of a movement in Iowa which I did not wish\nto embarrass either you or me. The names on the telegram are\nrepresentative of the leadership of the party in Iowa and col-\nlectively are of such strength as to require the most serious\nconsideration by the Iowa Congressional Delegation. The list\nseems to cover just about all varieties of policy attitude. I\nnote, for example, the names of T. E. Diamond and C. F. Murphy,\nwho are two of the only three attorneys in Iowa that I know of\nwho went vigorously and completely to bat in support of your\ncourt program. There are names of some others who are definitely\nNew Dealers, enthusiastically your followers, there are some few\nwho are reported to be rather strongly anti-third term. There\nare others whose main interest is in the agricultural policy, and\nstill others whose interest is simply that of characteristic\ncounty chairmen and local party leaders - interested primarily\nin party harmony and party success.\nIt seems to me that a telegram of this sort bearing these\nsignatures offers the possibility of rather serious embarrassment\nfor me, possibly embarrassment for you.\nI am writing simply to let you know that if and when the\nIowa Delegation makes an effort to see you, this will be what is\nin mind, and to say to you most emphatically that I am ready to\ndo anything possible in this connection that you may wish me to do.\nSincerely yours,\nHaWallace\nSecretary\n1940 MAY 5 PM 11 40\nDUBUQUE IOWA\nSENATOR GUY M GILLETTE\nTRY SOB WASHINGTON D C\nWE ARE TODAY ASKING YOU AND THE OTHER THREE IOWA MEMBERS OF THE CONGRESS\nTO SUBMIT THE FOLLOWING MESSAGE TO PRESIDENT ROOSEVELT:\n\"WE BELIEVE ARRANGEMENT SUCH AS IOWA PAPERS REPORTED YOU APPROVED FOR\nTEXAS WOULD GREATLY HELP TICKET IN IOWA AND THROUGHOUT FARM STATES AND\nWOULD BE MUCH MORE LOGICALLY AND EFFECTIVELY IN SUPPORT OF YOUR\nADMINISTRATION: - A STRONG ENDORSEMENT OF YOUR ADMINISTRATION IN PLATFORM\nAND INSTRUCTIONS FOR WALLACE FOR PRESIDENT. IT WOULD MAKE FARM PROGRAM\nAND DEMOCRATIC PARTY IDENTICAL AND WOULD ENTHUSE FARM VOTE. FAILURE TO\nDO THIS WOULD BE CONSTRUED AS A REPUDIATION OF FARM PROGRAM BY THE IOWA\nDEMOCRACY AND WOULD ENORMOUSLY WEAKEN APPEAL OF PARTY TO FARM VOTE,\nNO MATTER WHO THE NOMINEES MAY EVENTUALLY BE. MAY WE HAVE YOUR PERMISSION\nTO ANNOUNCE YOUR APPROVAL OF SUCH A PROGRAM FOR OUR CONVENTION\nMAY ELEVENTH,\"\nWE EARNESTLY ASK YOU, IN THE INTERESTS OF PARTY HARMONY AND SUCCESS IN\nIOWA, AND FOR THE BEST INTEREST OF THE NATION AT LARGE, TO GO TO THE\nPRESIDENT AT THE VERY EARLIEST POSSIBLE MOMENT, PERSONALLY SUBMIT THIS\nMESSAGE, AND earnestly REQUEST HIM TO AUTHORIZE YOU TO ANNOUNCE HIS\nAPPROVAL OF AN INSTRUCTED IOWA DELEGATION FOR WALLACE. WILL YOU PLEASE\nATTEND TO THIS AT ONCE SO THAT IF APPROVAL IS OBTAINED, SUCH ANNOUNCEMENT\nMAY BE MADE AT THE EARLIEST MOMENT AND THAT WE MAY ACT ACCORDINGLY\nSENATOR EARL DEAN CERROGORDO COUNTY CHAIRMAN G H\nGALVIN FLOYD COUNTY CHAIRMAN T E DIAMOND OBRIEN COUNTY\nCHAIRMAN, C B MURTOGH MEMBER STATE COMMITTEE, ERWIN\nLARSON FORMER MEMBER STATE COMMITTEE, IVER\nCHRISTOFFERSEN FORMER MEMBER LEGISLATURE, FRANK M MATAS\nSAC COUNTY CHAIRMAN, MRS MARY E FERGUSON SAC COUNTY\nCHAIRMAN, DR L B AMICK, DR J R dewey, RAY REED MEMBER\nSTATE COMMITTEE, DR J K STEPP member STATE COMMITTEE,\nFRED BIERMANN FORMER CONGRESSMAN, LAMAR FOSTER FORMER\nSPEAKER IOWA HOUSE OF representatives CEDAR COUNTY\nCHAIRMAN, DR D J GOEN DELAWARE COUNTY CHAIRMAN, MRS\nFRANCES KAUPEL HOWARD COUNTY CHAIRWOMAN, CHARLES P\nVOGEL POWESHIEK COUNTY CHAIRMAN, FRED HAGEMANN FORMER\nNOMINEE FOR GOVERNOR AND MEMBER STATE HIGHWAY\nCOMMISSION, MEL GRAHAM AUDUBON COUNTY CHAIRMAN,\nMRS ETHEL PETERSON AUDUBON COUNTY CHAIRWOMAN,\nFRANK O'CONNOR FORMER UNITED STATES ATTORNEY,\nRAY DOUGLASS ALLAMAKEE COUNTY CHAIRMAN,\nCHARLES REILLY CHICKASAW COUNTY CHAIRMAN,\nJAKE TAYEK CLAYTON COUNTY CHAIRMAN,\nMRS HELEN FITZPATRICK CLAYTON COUNTY CHAIRWOMAN,\nW B PILKINGTON FORMER CLAYTON COUNTY CHAIRMAN,\nL J EHRHARDT FOURTH DISTRICT CHAIRMAN YOUNG DEMOCRATS,\nJ T HYDE CLAYTON COUNTY CHAIRMAN YOUNG DEMOCRATS,\nATTORNEY C F MURPHY, CLARENCE MCDONALD BUCHANAN COUNTY\nCHAIRMAN, WM KENNEDY CHICKASAW COUNTY ATTORNEY (BETTER\nTHAN COUNTY ATTORNEY TOM DEWEY) JOHN F KENNEDY\nDEMOCRATIC BANKER, FRANK OWEN IOWA COUNTY CHAIRMAN,\nMRS RAY BAXTER MEMBER STATE COMMITTEE,\nFRANK GILLOON DUBUQUE COUNTY CHAIRMAN,\nMRS LAWRENCE SMITH MEMBER STATE COMMITTEE,\nW E CONNORS WORTH COUNTY CHAIRMAN, DR W E WALSH FAYETTE\nCOUNTY CHAIRMAN, MRS LEO COLEMAN FAYETTE COUNTY CHAIRHOMAN,\nMRS FRANCES BICKERT MONROE COUNTY CHAIRWOMAN,\nRAY SCHAEFER LEE COUNTY CHAIRMAN, MRS PAUL HUSTON\nLINN COUNTY CHAIRWOMAN, FRED X HAWLEY MEMBER NATIONAL\nFARM TENANCY COMMISSION, EDWARD F. MCCARTONCANDIDATE\nPOCOHANTAS COUNTY ATTORNEY, CHAS A HOUSH CANDIDATE FOR\nSECRETARY OF AGRICULTURE, D J GALLERY MADISON COUNTY\nCHAIRMAN, SAM J NELSON STORY COUNTY FARMERS INSURANCE\nCOMPANY, CHARLES benesh TAMA COUNTY CHAIRMAN,\nWILL J JACKSON JOHNSON COUNTY CHAIRMAN, F J KENNEDY\nEMMETT COUNTY CHAIRMAN, DR W A LEE HANCOCK COUNTY\nCHAIRMAN, WM ? HOUSEL HUMBOLIT COUNTY CHAIRMAN\nM H MCENROE KOSSUTH COUNTY CHAIRMAN, FRANK MURRAY\nWINNEBAGO COUNTY CHAIRMAN MRS MARY GILLEAS CHEROKEE\nCOUNTY CHAIRWOMAN, J W DICKINSON LYON COUNTY CHAIRMAN,\nW J JOHANNES OSCEOLA COUNTY CHAIRMAN, DR R J JOYNT\nPLYMOUTH COUNTY CHAIRMAN, o J REIMERS FORMER STATE\nrepresentative, MRS FLORENCE LYNCH MEMBER STATE COMMITTEE,\nLEROY RADER, FRANK MCGILL, L M MCGIVERN, HOMER HUSH,\nCHRIS REESE, BARNEY ALLEN, J A SCHNEIDER, HOWARD COUNTY\nCHAIRMAN, JOE MEKOTA LINN COUNTY CHAIRMAN\nPSF: Agriculty area\nju\nDEPARTMENT OF AGRICULTURE\nSTATE THE DEPARTMENTOR )\nfull\nWASHINGTON\nJune 26, 1940\nCome\nThe President\nThe White House\nDear Mr. President:\nIn response to your request, a copy of the memorandum\nwhich we discussed yesterday is enclosed. Revisions based upon\nyour suggestions have been made.\nRespectfully,\ndd a Wallace\nEnclosure\nSecretary\nPolitically speaking we\nmust be prepared, of course in\ncase of need, to buy up at equivalent\npri clo pric products in the u.s.\nusing probably \"reciprocal dollars\"\nrather than & U.S. dollars\nBasic Considerations for a Permanent Inter-American\nCartel Corporation\n1. The surpluses of this hemisphere must be kept moving\ninto consumption:\nA. As much as possible, taking military considerations\ninto account, should be exported from both continents\nto the rest of the world.\nB. Judicious amounts should be stored on an ever-normal\ngranary basis within the hemisphere.\nC. Whatever is left over should be distributed as promptly\nas possible to the impoverished families of both North\nand South America. Without such & \"safety valve\" out-\nlet for surpluses within the two continents, huge in-\nventories might wreck the whole cartel scheme.\n2. The Cartel Corporation ultimately must act as a clearing\nhouse for all export and all import transactions between the New World\nand the Old if Germany controls Europe. To achieve this purpose it\nshould use two kinds of dollars:\nA. \"Reciprocal\" dollars would be used exclusively in foreign\ntrade between this hemisphere and the rest of the world.\nThese \"reciprocal\" dollars could be used to buy goods from\ncountries outside this hemisphere and such countries\nin turn could use them to buy hemispheric surpluses\n- 2 -\nthrough the Cartel Corporation. As soon as possible\nwe should get on a basis where total imports would\nequal the total exports; \"reciprocal\" dollars therefore\ncould not be hoarded. Gold might be used to back this\nworld trade currency. Part of it actually might be\nsent to those Republics where purchases were being made.\nPsychologically, that would bring about a new confidence\nin the value and usefulness of gold here at home. It\nwould give our neighbors to the south of us the feeling\nthat the New World was using the traditional economic\npower of gold aggressively.\nThe Cartel Corporation would break even in all\nworld trade with \"reciprocal\" dollars. After buying\nsurpluses for export outside the hemisphere with them,\nit could offer to exchange them at established rates\nfor the internal currencies of each American Republic.\nTo get the program started, the Cartel Corporation could\nset up a revolving fund of \"reciprocal\" dollars.\nB. Since \"reciprocal\" dollars would be the only money which\ncould be used in trade between the New World and the Old,\n\"regular\" American dollars, as we have known them, would\nautomatically become a hemispheric currency limited to\ncirculation in North and South America. The Cartel\n- 3 -\nCorporation would use these dollars to buy surpluses\nover and above what could be exported from the New World.\nMost of these goods ultimately would be distributed to\nneedy families on both continents under programs of sur-\nplus removal similar to those now in operation in this\ncountry, but adjusted to the national needs of each\nRepublic. This is the only place where a subsidy from\nour Federal Government would be necessary. The cost\nto the American tax-payer would be partially offset by\nthe fact that \"regular\" dollars used to buy surpluses\nfor distribution within the hemisphere ultimately and\nautomatically would have to be spent in our own country\nlargely for our industrial goods.\n3. Anyone within this hemisphere desiring to make purchases\noutside it, would exchange \"regular\" dollars, or the currency of his\nown Republic, for \"reciprocal\" dollars in order to do SO. Those\n\"reciprocal\" dollars would then be available in other countries for\npurchases of goods available within this hemisphere. Similarly, anyone\noutside this hemisphere obtaining \"reciprocal\" dollars which were not\nimmediately needed for purchases from the New World, could exchange them\nfor the currency of his own country if he desired to do so. That country\ncould then make them available to anyone who did want to buy from this\nhemisphere.\n4. Appropriate agreements should be entered into between the\nCartel Corporation and each American Republic covering such matters as:\n- 4 -\nA. Production control figured on some fair \"base period\".\nB. Contributions to the stock of the Cartel Corporation.\nC. Lessening of trade barriers within the hemisphere so\nfar as practical.\nD. Programs for distribution of surpluses to the needy.\nE. Use of normal business channels, working through the\nCartel Corporation to take advantage of their practical\nknowledge of the complicated problems of world trade,\ncommodity by commodity.\nThe new era beyond this conflict will no more permit the hoard-\ning of commodities in the face of want than it will the hoarding of\nmoney in the face of poverty. A western hemisphere which is commodity-\nrich and consumption-poor can not survive. A western hemisphere which\nhas the genius to make its real wealth available to all its peoples\nwill be impregnable. For the first time in history, because we have\nlearned how to produce abundantly, men no longer have to grab from each\nother to have enough for themselves.\nsF:\nJilynamel\nwallace\nUNITED STATES\nDEPARTMENT OF AGRICULTURE\nOFFICE OF THE UNDER SECRETARY\nWASHINGTON, D.C.\nJuly 10, 1940\nMemorandum to the Secretary\nDear Mr. Secretary:\nHerewith is submitted a few suggestions for the conduct of\nthe Democratic campaign this year.\n1. Immediately make known the Republican candidate's\nentire record with public utilities, pointing out\nat the same time that the Republican candidate is\nwithout experience in either public office or in-\nternational affairs.\n2. The President should confine his campaign efforts\nentirely to keeping the people informed on the in-\nternational situation, and our progress in national\ndefense. The President should avoid making poli-\ntical speeches because:\n8. He is not seeking the office but is accept-\ning a mandate from the people in a critical\nhour. This can be pointed out in due time.\nb. The seriousness of our present situation\ndemands his undivided attention and he is\nsticking strictly to the job during this\ntime.\nC. The vice presidential candidate and others\ncan constantly, and even more effectively\nthan the President, point out the President's\nrecord and experience. It is particularly\nimportant to call attention to his grasp of\nthe international situation, his experience\nin the previous war, and to the fact that he\nhas consistently foreseen and has been pre-\npared, insofar as possible, for the events\nwhich have occurred.\n-2-\n3. Get to the people tangible evidence of the extent\nto which we are prepared to defend ourselves. This\nmight be accomplished in numerous ways. It would be\npossible, for instance, to stage air shows in strategic\npoints throughout the country, in which army and navy\nplanes would take a prominent part. It might also be\npossible to have a \"preparedness day\" at state fairs.\nMovies could be used to show actual production of\ndefense materials, and all activities of the Defense\nCouncil should be highly publicised.\n4. Build the theme of the campaign around the slogan\n\"Peace Through Preparedness.\" The people want peace\nand they are willing to pay for preparedness to\ninsure peace. The \"big stick,\" 80 big no country\nwill dare attack us, has great appeal.\nSincerely yours,\nUnder Secretary.\n(m.f. wilson)\nPSF stgnature\nivallace\nAugust 20, 1940\nRespectfully referred for the\nfiles ofthe Department of State.\nEDWIN M. WATSON\nSecretary to the President\nhm\nTransmitting for the files of the Department, copy of letter\nfrom Hon. Henry A. Wallace, 8/15/40, to the President,\ntendering his resignation 6.8 Secretary of Agriculture,\neffective at the close of business on September 5, 1940,\ntogether with a copy of the President's letter of August 17,\n1940, accepting the resignation as tendered. Mr. Hess has\n& memorandum regarding the matter.\nAboard the President's Train,\nAugust 17th, 1940.\nDear Henry:\nIn different circumstances I should have deep\nregret in consenting to your withdrawal as Secretary of\nAgriculture. But, giving due weight to the consideration\nthat the step you are impelled to take represents rather a\nchange in relations than a severance of close ties, I have\nno alternative. Therefore, in accordance with the terms\nof your letter of August fifteenth, I accept your resigna-\ntion effective at the close of business on September 5,\n1940.\nYou and I are content to leave determination of\nthe issues in the campaign this year to the calm judgment\nof the voters. Under our form of government there is no\nhigher arbitrament than the bar of public opinion.\nI cum delighted that you are to be freed of all\nofficial duties so that you can devote your time and talents\nexclusively to an interpretation of your agricultural pro-\ngram to the American people. You found agriculture pros-\ntrate in March, 1933. The vicious wheel had turned full\ncircle when you came to the rescue. Markets had been ruined;\npurchasing value was gonet the farmer was penniless. Fore-\nclosures and tax sales had done the rest.\nThe farmers of the country are not likely to for-\nget this. Their minds are seared with bitter memories of\nofficial neglect and official incompetence which brought\nthem and the Nation to disaster.\nI know, and the farmers of the Nation likewise\nhave knowledge, of the deliberation, true wisdom and states-\nmanship which have gone into the formulation of your agricul-\ntural program. I know and they know that bankruptcy, ruin,\ndespair and disaster, which had been their previous portion\nthrough long years of neglect and incompetence at Washington,\ngave way under your guiding hand to & greater prosperity,\nsecurity and, above all else, to a return to self-respect\nand sane thinking.\n-2-\nAlthough you have devoted years to the study of\nour agricultural problems and brought rich experience to\ntheir solution, yours has not been a nardow specialization.\nYou have been able to view the problem of the farmer in its\nrelation to other problems -- economic, industrial and\ninternational. You have adhered without deviation to the\nsettled processes of democracy. You and I remain unshaken\nin our faith in those processes and in the efficacy of the\npolicy of the good neighbor in the field of foreign affairs.\nYour habit of thought has enabled you always to see with\nsingular clarity the needs of the country as 4a. whole.\nI think it particularly fortunate that throughout\nthe weeks of the autuan you are to be free and unhampered to\ngo about at will. This will give you an excellent oppor-\ntunity in public addresses, and through conferences with\ngroups and individuals, to discuss the work you have been\ndoing in behalf of agriculture.\nSuch a presentation will be of benefit alike to\nthe farmers, and to the rank and file of the citizens. With\nthem rests judgment as to the work you have been doing during\nthe past seven years and more in behalf of agriculture and\nin behalf of the Nation.\nVery sincerely yours,\nHonorable Henry A. Wallace,\nSecretary of Agriculture,\nWashington, D. C.\nDEPARTMENT OF AGRICULTURE\nDEPARTMENTO ))\nWASHINGTON\nAugust 15, 1940\nThe President\nThe White House\nDear Mr. President:\nI am tendering you herewith my resignation to take effect\non September 5, 1940, the day on which I shall probably begin\nactive campaigning. I look forward gladly to the rare opportun-\nity I shall have to discuss with the American people the matters\nin which you and I are 80 profoundly interested and which are of\nsuch grave importance to the country.\nI believe thoroughly in your unique capacities to lead the\nAmerican people in these troublous times when experience and wis-\ndom are so essential. Therefore, I approach the work of the\ncampaign with eagerness.\nAlthough this represents only a change in our relationship,\nI can't write this letter without expressing to you By deep grati-\ntude for the extraordinary experience of the past eight years. The\nopportunity to work on so broad a front under your leadership in\ntimes of extraordinary national need has been immensely satisfying.\nTo have had in the Department of Agriculture the material of fine\npersonnel, excellent traditions and technical preparation, and to\nbe able to use all this equipment, all the services of this able\npersonnel, because of your support, in the development of the\nreally enormous action programs for the benefit of agriculture,\nhas been an opportunity and an experience that could come only\nonce in a millennium. Now I am looking forward to another period,\nanother opportunity of even greater significance.\nSincerely yours,\nHawallace\nSecretary.\n0\nTHE WHITE HOUSE\nI\nWASHINGTON\nAboard the President's Train,\nAugust 17th, 1940.\nDear Henry:\nIn different circumstances I should have deep\nregret in consenting to your withdrawal as Secretary of\nAgriculture. But, giving due weight to the consideration\nthat the step you are impelled to take represents rather a\nchange in relations than a severance of close ties, I have\nno alternative. Therefore, in accordance with the terms\nof your letter of August fifteenth, I accept your resigna-\ntion effective at the close of business on September 5,\n1940.\nYou and I are content to leave determination of\nthe issues in the campaign this year to the calm judgment\nof the voters. Under our form of government there is no\nhigher arbitrament than the bar of public opinion.\nI an delighted that you are to be freed of all\nofficial duties so that you can devote your time and talents\nexclusively to an interpretation of your agricultural pro-\ngram to the American people. You found agriculture pros-\ntrate in March, 1933. The victous wheel had turned full\ncircle when you camo to the resoue. Markets had been ruined;\npurchasing value was gone; the farmer was penniless. Fore-\nclosures and tax sales had done the rest.\nThe farmers of the country are not likely to for-\nget this. Their minds are seared with bitter memories of\nofficial neglect and official incompetence which brought\nthem and the Nation to disaster.\nI know, and the farmers of the Nation likewise\nhave knowledge, of the deliberation, true wisdom and states-\nmanship which have gone into the formulation of your agricul-\ntural program. I know and they know that bankruptcy, ruin,\ndespair and disaster, which had been their previous portion\nthrough long years of neglect and incompetence at Washington,\ngave way under your guiding hand to a greater prosperity,\nsecurity and, above all else, to a return of self-respect\nand sane thinking.\n- 2 -\nAlthough you have devoted years to the study of\nour agricultural problems and brought rich experience to\ntheir solution, yours has not been & narrow specialization.\nYou have been able to view the problem of the farmer in its\nrelation to other problems - economic, industrial and\ninternational. You have adhered without deviation to the\nsettled processes of democracy. You and I remain unshaken\nin our faith in those processes and in the efficacy of the\npolicy of the good neighbor in the field of foreign affairs.\nYour habit of thought has enabled you always to see with\nsingular clarity the needs of the country as a whole.\nI think it particularly fortunate that throughout\nthe weeks of the autumn you are to be free and unhanpered to\ngo about at will. This will give you an excellent oppor-\ntunity in public addresses, and through conferences with\ngroups and individuals, to discuss the work you have been\ndoing in behalf of agriculture.\nSuch & presentation will be of benefit alike to\nthe farmers, and to the rank and file of the citizens. with\nthem rests judgment as to the work you have been doing during\nthe past seven years and more in behalf of agriculture and\nin behalf of the Nation.\nVery sincerely yours,\n(Signed) FRANKLIN D. ROOSEVELT\nHonorable Henry A. Wallace,\nSecretary of Agriculture,\nWashington, D. C.\n1.71,\nTHE WHITE HOUSE\nWASHINGTON\n0176,1940\nDear Henry:\nIn different circumstances I should have deep regret in consenting to\nyour withdrawal as Secretary of Agriculture. But, giving due weight to the\nconsideration that the step you are impelled to take represents rather a change\nin relations than a severance of close ties, I have no alternative. Therefore,\nin accordance with the terms of your letter of August fifteenth, I accept your\nresignation effective at the close of business on September 5, 1940.\nYou and I are content to leave determination of the issues in the campaign\nthis year to the calm judgment of the voters. Under our form of government\nthere is no higher arbitrament than the bar of public opinion.\nI an delighted that you are to be freed of all official duties so that you\ncan devote your time and talents exclusively to an interpretation of your agri-\ncultural program to the American people. You found agriculture prostrate in\nMarch, 1933. The vicious wheel had turned full circle when you came to the\nrescue. Markets had been ruined; purchasing value was gone; the farmer was\npenniless. Foreclosures and tax sales had done the rest.\nThe farmers of the country are not likely to forget this. Their minds\nare seared with bitter memories of official neglect and official incompetence\nwhich brought them and the Nation to disaster.\nI know, and the farmers of the Nation likewise have knowledge, of the\ndeliberation, true wisdom and statesmanship which have gone into the formulation\nof your agricultural program. I know and they know that bankruptcy, ruin,\ndespair and disaster, which had been their previous portion through long years\nof neglect and incompetence at Washington, gave way under your guiding hand to & quater\nprosperity, security and, above all else, to a return to self-respect and sane\nthinking.\nI think it particularly fortunate that throughout the weeks of the autumn\nyou are to be free and unhampered to go about at will. This will give you an\nexcellent opportunity in public addresses, and through conferences with groups\nand individuals, to discuss the work you have been doing in behalf of agriculture.\nSuch a presentation will be of benefit alike to the farmers, and to the\nrank and file of the citizens. with them rests judgment as to the work you have\nbeen doing during the past seven years and more in behalf of agriculture and\nin behalf of the Nation.\nHonorable Add Henry A. Wallace,\nVery sincerely yours,\nSecretary of Agriculture,\nWashington, D. C.\nAugust 18th, 1940.\nFOR THE PRESS --\nHOLD FOR RELEASE --\nReleased for papers appearing on the streets not earlier than\n9 o'clock A.M., Eastern Standard Time, Monday, August 19th, 1940.\nThe same limitation applies to use by radio broadcasters or radio\nnews commentators.\nPLEASE SAFEGUARD AGAINST PREMATURE RELEASE.\nWilliam D. Hassett.\n-\nThe following correspondence was made public in connection\nwith the resignation from the Cabinet of Henry A. Wallace, Secre-\ntary of Agriculture.\nSecretary Wallace submitted his resignation in a letter of\nwhich the following is the text:\n\"August 15, 1940.\nThe President,\nThe White House.\nDear Mr. President:\nI am tendering you herewith my resignation to take\neffect on September 5, 1940, the day on which I shall\nprobably begin active campaigning. I look forward gladly\nto the rare opportunity I shall have to discuss with the\nAmerican people the matters in which you and I are so pro-\nfoundly interested and which are of such grave importance\nto the country.\nI believe thoroughly in your unique capacities to\nlead the American people in these troublous times when\nexperience and wisdom are so essential. Therefore, I ap-\nproach the work of the campaign with eagerness.\nAlthough this represents only a change in our relation-\nship, I can't write this letter without expressing to you\nmy deep gratitude for the extraordinary experience of the\npast eight years. The opportunity to work on so broad a\nfront under your leadership in times of extraordinary\nnational need has been immensely satisfying. To have had\nin the Department of Agriculture the material oi fine per-\nsonnel, excellent traditions and technical preparation, and\nto be able to use all this equipment, all the services of\nthis able personnel, because of your support, in the develop-\nment of the really enormous action programs for the benefit\nof agriculture, has been an opportunity and an experience\nthat could come only once in a millennium. Now I am look-\ning forward to another period, another opportunity of even\ngreater significance.\nSincerely yours,\nH. A. WALLACE,\nSecretary.\"\nThe President, in accepting the resignation, wrote\nMr. Wallace as follows:\n\"Aboard the President's Train,\nAugust 17th, 1940.\nDear Henry:\nIn different circumstances I should have deep\nregret in consenting to your withdrawal as Secretary of\nAgriculture. But, giving due weight to the consideration\nthat the step you are impelled to take represents rather a\nchange in relations than a severance of close ties, I have\nno alternative. Therefore, in accordance with the terms\nof your letter of August fifteenth, I accept your resigna-\ntion effective at the close of business on September 5, 1940.\n-2-\nYou and I are content to leave determination of\nthe issues in the cumpaign this year to the calm judgment\nof the voters. Under our form of government there is no\nhigher arbitrament than the bar of public opinion.\nI am delighted that you are to be freed of all\nofficial duties so that you can devote your time and talents\nexclusively to an interpretation or your agricultural pro-\ngram to the American people. You found agriculture pros-\ntrate in March, 1933. The vicious wheel had turned full\ncircle when you came to the rescue. Markets nad been ruined;\npurchasing value was gone; the farmer was penniless. Fore-\nclosures and tax sales had done the rest.\nThe farmers of the country are not likely to for-\nget this. Their minus are seared with bitter memories of\nofficial neglect and official incompetence which brought\nthem and the Nation to disaster.\nI know, and the farmers of the Nation likewise\nhave knowledge, of the deliberation, true wisdom and states-\nmanship which have gone into the formulation of your agricul-\ntural program. I know and they know that bankruptcy, ruin,\ndespair and disaster, which hud been their previous portion\nthrough long years of neglect and incompetence at Washington,\ngave way under your guiding hand to a greater prosperity,\nsecurity and, above all else, to a return to self-respect\nand sune thinking.\nAlthough you have devoted years to the study of\nour agricultural problems and brought rich experience to\ntheir solution, yours nas not been a narrow specialization.\nYou have been able to view the problem of the farmer in its\nrelation to other problems -- economic, industrial and\ninternational. You have adhered without deviation to the\nsettled processes of democracy. You and I remain unshaken\nin our faith in those processes and in the efficacy of the\npolicy of the good neighbor in the field of foreign affairs.\nYour habit of thought nas enabled you always to see with\nsingular clarity the needs of the country as a whole.\nI think it particularly fortunate that throughout\nthe weeks of the autuan you are to be free and unhampered to\ngo about at will. Tnis will give you an excellent oppor-\ntunity in public addresses, and through conferences with\ngroups and individuals, to discuss the work you have been\ndoing in behalf of agriculture.\nSuch 4 presentation will be of benefit alike to\nthe farmers, and to the rank and file of the citizens. With\nthem rests judgment as to the work you have been doing during\nthe past seven years and more in behalf of agriculture and\nin behalf of the Nation.\nVery sincerely yours,\nFRANKLIN D. ROOSEVELT.\nHonorable Henry A. Wallace,\nSecretary of Agriculture,\nWashington, D. C.\"\nPSF\nWalline\nTHE WHITE HOUSE\nWASHINGTON\nagrie\nSeptember 13, 1940\nCONFIDENTIAL\nMEMORANDUM FOR\nHON. MYRON TAYLOR\nI think this will interest\nyou -- extremely confidential.\nWill you let me have your thought?\nF. D. R.\nEnclosures\nfdr/tmb\nLet. to the President from Acting Sec.\nPaul H. Appleby, 9/11/40 enclosing\nadditional material concerning the\nrelation of the present regime in\nFrance to various religious groups\nin other countries about which Mr. Wallace\ndiscussed with the President before\nleaving.\nfile Person Intial\nKILLINGWORTH\nLocust VALLEY\nLONG ISLAND\nSeptember 15 1940\nDear Mr. President:\nI found the memoranda which you sent very\ninteresting indeed, and am returning them\nherewith.\nAs you have asked me for my thoughts, I\nam attaching a memorandum which at least\npresents a conclusion as to policy to be fol-\nlowed, at any rate for the present.\nAlso I enclose a newspaper clipping which\nyou have probably already seen, and which in-\ndicates the relationship between Bonnet and\nAbetz.\nVery sincerely yours,\nThe Honorable,\nFranklin D. Roosevelt,\nThe White House,\nWashington, D.C.\nSeptember 15 1940\nL\nMEMORANDUM\nFOR THE PRESIDENT:\nAs to the person described in the report, I\nhave met him in Paris at Ambassador Bullitt's\nand at Versailles-- I think, in the home of\nJames Hazen Hyde. I have no personal impres-\nsion about him, but I believe Ambassador Bullitt\ncould give you full information.\nWhen I left Rome, three weeks ago, there\nwas no indication of a radical change of Vati-\ncan policy although, as I intimated to you in\nour conversation, there was evident despair over\nBritain's ability to withstand her enemies, in\nview of the more recent German conquests, which\nembraced the loss of her principal ally, of the\nuse of a large accumulation of war materials,\nof fully developed munitions plants and other\nuseful works, and, not the least, of control of\nthe Channel ports.\nWith all of these factors, and with Italy\nawaiting its opportunity to become aggressive\nin many places, the outlook, as envisioned by\n--2--\nthose in question, was not encouraging for British\ninterests.\nAt that time I had no reason to believe that\nthe Vatican would support the principles of Nazism\nor of Fascism, although I have always kept before\nmy own mind the fact that the leading influences\nin the Vatican were Italian. This fact never ap-\npeared to influence action.\nI heard on the radio today (Sunday), in the\nNational Broadcasting Company's Berlin review,\nthat next Sunday a Catholic Bishop in Germany\nwould announce the collaboration of the Catholic\nChurch with the Nazi Government. This, if true,\nwould of course be a shock to many in Germany,\nAustria and elsewhere. The attitude of the Vati-\ncan would probably be that they are more con-\ncerned with the conduct of a government toward\nits people, both in their religious life and in\nthe practice of the humanities, than in devising\nparticular forms of government. The large Catho-\nlic populations of Holland, Belgium, Poland and\nFrance are in such a predicament, and with SO\nuncertain a future, that I should think if the\n--3--\nVatican puts in any sense the stamp of its ap-\nproval on the Nazi regime in Germany or the\nFascist regime in Italy, it will have very un-\ncomfortable repercussions in those countries. In\nany event, the present situation of the Church in\nEurope is most uncertain.\nAs I indicated to you, my information was that\nthe Petain Government was being undermined by\nboth the French and the Germans. No one in position\nof authority whom I contacted felt that it would\nlast very long. That fact I should think would be\nof considerable influence in determining the course\nof action which you will take by way of formal rec-\nognition of that Government, and which as a neces-\nsary consequence solves, at least for the time be-\ning, the problem of the proposed Ambassador. As you\nhave asked for my thought on the subject, I would\nsay that for the moment I would do nothing.\nNEW YORK TIMES\nSeptember 6 1940\nRETURN OF BONNET\nThe Matin, after asserting that\n\"There is much discontent In\nthe French Constitution of 1875 was\nGerman circles that nothing has\nviolated when the then Premier\nbeen done ao far on the Polish side\nTO POST INDICATED\nEdouard Daladier declared war on\nfor conciliation. It is feared the\nGermany without convening Parila-\nReich may order her troops to\nment, said that, besides three\nlaunch an attack if there is still no\n\"clear-sighted statesmen,\" Pierre\nreply at noon. It is necessary that\nLaval, Gaston Bergery and Pierre-\nPolish Ambassador Lipski (Josef\nVisit in Paris, Article There\nEtienne Flandin, who \"attempted\nLipski, then envoy to the Reich,\non His 1939 Peace Effort\nto avert the catastrophe,\" there was\nwho had gone to Warsaw at the\na fourth, Georges Bonnet, who\ntime) be sent (back) to Berlin urg-\nSeen as Political Steps\nwould have succeeded in preventing\nently to start the negotiations M\nwar if It had not been for \"the war-\nplenipotentiary.\"\nlike spirit of the British and the\n\"There was not a minute to\nstubbornness of the Polish Govern-\nspare,\" according to the Matin,\nMIGHT REPLACE BAUDOIN\nment.\"\n\"and M. Bonnet immediately In-\nM. Bonnet, through five difficult\nformed London, while instructing\ndays before the outbreak of war,\nM. Noël in Warsaw to make an-\ndid his utmost to quell the war\nother démarche upon Colonel Beck,\nEx-Foreign Minister, Hinted for\nspirit, the Matin said.\nwho promised to reply at noon.\nPlace at Vichy, Did Best to\n\"On Aug. 28 (1939) the crisis \"At noon M. Bonnet was still alt-\nreached & climax,\" the article stat- ting In his office overlooking the\nAvert War, Says Le Matin\ned. \"In Britain, France, Germany, gardens of the Qual d'Orany await-\nPoland, millions of men, face to ing developments, after more fram-\nface, were mobilized in tragio ex- the calls to London and Berlin and\npectation.\nafter telephoning Rome. It was not\nBy GEORGE AXELSSON\n\"It seemed then that war was until 6 o'clock in the evening that\nWireless to THE NEW YORK Times,\nunavoidable, but It could have been M. Lipski called on the Wilhelm-\nPARIS, Sept. 2 (Delayed: via\naverted If two essential truths had strasse, and then without full pow-\nBeriin)-Assertions that former\nbeen understood in Paris, London ers to negotiate, which led [Reich\nForeign Minister Georges Bonnet\nand Warsaw: First, that Chancel- Foreign Minister Joachim] von\ndid his best to preserve peace In\nlor Hitler was not bluffing and that Ribbentrop to refuse the conversa-\nthe tragle last days of August,\nhe wanted & complete settlement of tions.\"\n1939, were made for the first time\nGerman-Polish problems; second,\nin a Paris newspaper today by the\nthat suppression of \"the foolish\nMatin. It printed what It claims\nterms of the Versailles treaty\nis a true account of diplomatic\ncould no longer be postponed.\"\nThe Matin said Adolf Hitler left\nevents that precipitated the war &\nthe door open for further discus-\nyear ago.\nM. Bonnet returned to Vichy to-\nsions of the \"Polish problems,\" and\nthat M. Bonnet at 1 A. M. on Aug.\nnight after spending a few days in\n30 wired the then French Ambassa-\nParis, during which he met an In-\ntimate friend. Count Fernand de\ndor in Warsaw, Leon Noel, that\nBrinon, and Heinrich Abets. Ger-\nHerr Hitler was agreeable to direct\nman Ambassador to France and\nconversations, and also wired Berlin\nHigh Commissioner for the occu-\nand Warsaw urging the German\npied territory, and other prominent\nand Polish troops to withdraw sev-\neral miles from the border to avoid\nGerman officials.\nAlthough no statement of M. Bon-\nan incident,\nnet's activities could be obtained,\nHowever, M. Bonnet's personal\nthe writer understands from au-\nInitiative, it was asserted, was met\nthoritative sources that the coinci-\nwith #kepticism by the French Am-\ndence of his presence in Paris with\nbassadors in Berlin and Warsaw-\nthat of Vice Premier Pierre Laval\nespecially Robert Coulondre, the\nof the Pétain regime and talks of\nenvoy at Berlin, who was said to\nhave wired back:\nreshuffling the Viehy Cabinet, as\n\"Chancellor Hitler's reply too\nwell as the Matin's article, might\nmean M. Bonnet's comeback to play\nbrutal; more like the dictate Im-\na prominent role in French politics\nposed on vanquished State than\n-perhaps as Foreign Minister again\nagreement to negotiate with NOV-\nto replace Paul Baudoin.\nereign State.\"\n\"How under such conditions could\nM. Bonnet, whose family remained\nthe recommendations of the head\nat Perigueux in the Bordeaux dis-\nof French diplomacy be transmitted\ntrict, after the German forces\nmarched on Paris, is regarded by\nwith sufficient energy to the Polish\nGovernment?\" the Matin article\nsome political observers here as &\nwent on.\n\"coming man\" in the new French\nHowever, M. Bonnet reportedly\npolitics. Anyway, they say a. Bonnet\nInsisted on urging at London the\noffensive started with the Matin\nsame day joint Franco-British rep-\narticle.\nresentations to Poland. This move\nWhile he headed French diplo-\nwas agreed to by the British Gov-\nmacy at the Qual d'Orsay, Count de\nernment and Ambassador Noel was\nBrinon often took unofficial trips to\ninstructed to see Colonel Josef\nBerlin in M. Bonnet's behalf in\nBeck, then Polish Foreign Minis-\nefforts to concillate Franco-German\nter, and urge him to make an Im-\nviewpoints, agaist the bellicose\nmediate and favorable reply to the\nspirit of preparation that was brew-\nGerman suggestion of direct con-\ning in Western Europe.\nversations.\nThus It is believed his eventual\n\"Berlin awaited all day the ap-\nappointment to the Vichy Cabinet\nproach by the Polish plenipoten-\nwould not be frowned upon in Ger-\ntiary,\" said the Matin.\nman circles, and Marshal Henri\nOn the morning of Aug. 31. the\nPhilippe Petain, the Chief of States,\narticle continued, there was still no\nalways appreciated the skill he dis-\nPolish reply in Berlin, and Ambas-\nplayed as a diplomat while Ambas-\nsador Coulondre reportedly tele-\nsador to Washington and as econo-\nmist in the Laval-Flandin Cabinet\nphoned M. Bonnet from Berlin:\nin 1935 as Minister of Commerce.\nDEPARTMENT OF AGRICULTURE\nSEAL If DEPARTMENTOR ))\nWASHINGTON\nSeptember 11, 1940\nThe President,\nThe White House.\nDear Mr. President:\nI understand that before Mr. Wallace le ft Washington,\nhe discussed with you in person certain information that had\nreached him, concerning the relation of the present regime in\nFrance to various religious groups in other countries.\nTie have now received additional material from the same\nresponsible source as this earlier information. Since this\nlatest information bears particularly on the character and pre-\nvious activities of the new representative from France to this\ncountry, and on possible policies that we might follow with re-\nspect to the recognition of the government which he represents,\nI an forwarding this material to you for your own personal\ninformation.\nI understood from Mr. Wallace that you were greatly\ninterested in what he had to say to you on the subject before,\nand believe for that reason you will wish to see this additional\nmaterial yourself.\nSincerely yours,\nActing Secretary\nEnclosures\nGrace:\nWill you hand this confidentially\nto the President? It is from Secretary\nWallace.\nJim Rowe\nSeptember 8, 1940\nM. Henri Haye was known to be in close relations to the notorious\nNazi agent, Abetz, who was expelled by the French government before the war,\nand who is now Hitler's representative to the Petain government. Abetz,\nwith the help of the most active \"intellectual\" Nazi agent, Sieburg, was\nmainly responsible for the organization of the Fifth Column in France, and\nMr. Haye is said to have been one of his chief advisors and most enthusiastic\nsupporters. His position became very difficult after the beginning of the\nwar, but he managed, with the help of friends, to keep out of danger. His\nappointment as ambassador to the U.S.A. is directly connected with his\nformer activities which he is expected to continue in this country in\ncooperation with his friend Abetz. One of his first tasks will, however,\nconsist in enlisting sympathies for the new government by refuting the\nallegation that they have gone Fascist. This policy is in accord with the\nnew tactics of the Nazi propaganda to advise even the German Bundists to\ndrop their Nazi connections, and even to deny any allegiance to the Nazi\nideology, with the purpose to better serve their cause for the Nazis in\nthis country. But the main mission of M. Haye will be, as I told Mr. Wallace,\nto make the greatest efforts to get as much as possible of the French gold\nand other assets deposited in this country.\nI must say that my Spanish and Portuguese friends, and even many\nFrenchmen, are amazed that the U.S.A. could give their agreement to the\nappointment of such a man; and they are sure that unless M. Haye's position\nbe made, from the outright, untenable, he will cause much trouble. I\ntherefore repeat that the only way to counteract such designs is to delay\n&\nofficial recognition of the Petain government. Against any claim of\nlegality and constitutionality of the Petain government, the fact must be\nadvanced that the resolution of the French Senate not to allow the newly\nproposed constitution to be introduced without a referendum, is a great\nobstacle to normal relations between the U.S.A. and the Petain govern-\nment; and that therefor the result of the referendum is to be awaited\nfirst. On the other hand, every endeavor must be made to delay the carry-\ning through of the referendum. One of the most promising means to that\nend, is to induce the French colonies in the U.S.A. and Latin America\nto claim the right of participation in the referendum. This can be best\nsupported by the precedent set up by Hitler himself, when he claimed\nsuch right for all the Saarlanders outside Germany. As you will remember,\nspecial German ships were employed to take the Saarlanders to exterritorial\nwaters in order to enable them to cast their votes. If similar arrange-\nments could be enforced on the Petain government, much time would be gained.\nI had a long conversation about this matter with the French head\nof the newly instituted committee in defense of a liberated France under\nthe chairmanship of Dr. Sholto Watt, 610 Fifth Avenue, Room 220, New York\nCity, and he promised to consider this matter very carefully with the\ncommittee as he thought that my suggestions were very interesting.\nI am waiting to hear from him and I think that something may be\nundertaken by the committee in connection with the referendum.\nOf course, the U.S.A. government can reserve their rights to\nconsider the value of the results of a referendum held under the pressure\n-3-\nof the enemy, even in the non-occupied parts of France.\nThe refusal, or, at least, the delaying, of the official recog-\nnition of the Petain government is most essential, chiefly to provide a\nlegal foundation for refusing, by the Treasury, to yield any of the\nFrench assets, especially if these assets exceed the amount which the\nU.S.A. may claim as war debts. Because in such an event I do not see\nany justification for refusing the handing over of such an excess, if the\nPetain government would be regarded as the actual representative govern-\nment of the whole of France.\nBut the refusal of such recognition will also be of far-reaching\nconsequences for the idea of a Fascist-Catholic-Bloc which is constantly\ngaining ground in France, Belgium, Spain, and, to a certain extent, also\nin Portugal. As I told you, the Portuguese Prime Minister Salazar,\nthough far from having any sympathies with Fascism, would favor in\nprinciple such a bloc as a staunch Catholic who made all possible efforts\nto strengthen Catholic influence in Portugal. That the Portuguese\nCatholics had, together with the Spanish Catholics, a hand in reconciling\nFascist Italy with the Vatican, is a clear indication that also Portugal\nis supposed to cooperate to make such a bloc successful.\nIn this connection, the latest manifestati on of the Pope urging\nall Catholics to fulfill their patriotic duties towards their fatherland,\nreveals the new spirit of the Vatican; and is, indeed, couched in quite\na different language as his previous proclamations. This means not only\na concession to the Petain government, who are reinstituting in France\nthe power of the Catholic church, in a measure which would not be\n-4-\npossible even before the separation of church and state in 1904, but it\nlends enormous strength to Mussolini and the whole Fascist regime.\nOf what effect a successful formation of such a bloc would be in\nCatholic circles in this country, and most especially in Latin America,\nneeds hardly a special emphasis. According to my observation there is\nalready now a change in the attitude of some Catholics I had occasion to\nmeet. The same people who some time ago were spitting fire and flame\nagainst Hitler and Mussolini, have become very much more moderate in their\ncondemnation of Fascism. This is a very significant symptom for the new\nwinds which are blowing in certain Catholic circles.\nAs I am told, Spanish emissaries are working very hard under differ-\nent disguise in the propagation of the new idea of a Fascist-Catholic-Bloc\nin some of the Latin countries, especially in Colombia, and Argentina,\nwhere Catholic influence is still powerful. The danger of such activities\nbeing spread to this country is obvious, and though at present the election\ncampaign makes it difficult to take any action, means and ways ought to\nbe prepared to prevent the infiltration of such ideas in this country with\na Catholic population of French and Italian origin, and many millions of\nIrish Catholics who in their anti-British attitudewould side with the\nFascists rather than see England victorious against her enemies.\nIn this connection, I should like to draw attention to a further\nimportant issue which would make the idea of a Fascist-Catholic-Bloc plausible\neven to such Catholic elements who, in principle, would not favor Fascism.\n-5-\nIt is thought that a bloc composed by the main Catholic countries of\nEurope, and supported by other Catholic countries in Latin America,\nwould increase the power of the Catholic Church to such an extent that,\nwithin time, she would be able to weaken the influence of the Protestant\nnations throughout the world. That the Vatican would prefer a defeated\nCatholic France and Belgium to a triumphant Anglican England and Protestant\nAmerica, is a consideration which should not berejected offhand. It is\ncharacteristic of Catholic policy of adjustment to surrounding conditions,\nthat while Cardinal Hinsley of London is thundering against the godless\nenemies of Great Britain, in Italy prayers were recently ordered by two\nBishops for the victory of Italy in the near East, so that she may restore\nthe Holy Places to the Catholic Church and put Jerusalem under the protec-\ntion of the Pope. All these facts and some others which could be quoted,\nare a clear indication of the new tendencies and hopes of the Catholic\nChurch which must be very closely watched and efficiently curbed before\nit is too late.\nP.S. I see from the papers that M. Haye assured the pressmen at the\nWorld'sFair that the \"main efforts of Marshal Petain are to keep the\nideals of French democracy.\" It is a rather peculiar role to organize\nFifth Column and Fascism in France and to allege representing democracy\nin America.\nPS F\nsignature felepenonal\nPSF: agriculture\nDEMOCRATIC NATIONAL COMMITTEE\nNATIONAL PRESS BUILDING\nWASHINGTON\nOFFICE OF\nHENRY A. WALLACE\nTHE SEP 23 23 WHITE RECEIVED 9 HOUSE 53 AM \"40\nSeptember 23, 1940\nThe President\nThe White House\nDear Mr. President:\nI am hoping that between now and the election, in the\nadministration of the draft law, there will be no need for\ntaking action to investigate the resources of married men.\nThis kind of action could be magnified out of all proportion\nto cause an extreme reaction among hundreds of thousands of\nyoung married men.\nRespectfully yours\nHa E Wallace\nWallace\nby mt\nDictated by Mr. Wallace but\nsigned in his absence"
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