Ask the Scholar
Document scope · 1 page
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory.
For page-specific OCR and visual context, open one of the page chats.
Scholar Source Context
Document identity
localId
28276778
label
Volume 435, August 23 – August 26, 1941
core
doc
dtoType
document
citationUrl
pageCount
1
Source metadata
id
28276778
sourceUrl
contentType
document
title
Volume 435, August 23 – August 26, 1941
citationUrl
collections
Henry Morgenthau, Jr. Papers
Diaries of Henry Morgenthau, Jr.
imageCount
1
hasImages
yes
source
import
hasTranscription
no
Source extras
naId
28276778
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
mediaId
1158b515c9f8ab81
ocrText
DIARY
Book 435
August 23 - 26, 1941
Regraded Unclassified
- à -
Book Page
Agriculture
Wheat and Cotton Marketing Quotas Act vetoed by
FDR - 8/25/41
435
220,257
- B -
Business Conditions
Research and Statistics memorandum on situation
for week ending August 23, 1941 - 8/25/41
200
- C -
China
See War Conditions
Civilian Defense, Office of
See Office of Civilian Defense
Cotton
See Agriculture
- - - I
Defense Savings Bonds
See Financing, Government
- F -
Financing, Government
Defense Savings Bonds:
Field Organization News Letter. No. 14 -
8/23/41
34
Treasury Hour holds top place in "National
Ratings" report - 9/25/41
211
Comparative statement of sales during first
twenty business days of June, July, and
August - 8/25/41
214
Deposits in Treasurer's Account from sale of
Treasury bonde. Tax Series - 8/25/41
216
- G -
General Counsel, Office of
Report on projects during July 1941
B.
Germany
See War Conditions: Foreign Funds Control
Regraded Unclassified
- J -
Book Page
Japan
See War Conditions: Foreign Funds Control
- L -
Latin America
Mexico:
Stabilization Agreement: Central Bank of Mexico -
question of being required as signatory to
agreement discussed in Cochran memorandum -
8/23/41
435
25,175
a) Copies of proposed silver and peso
agreements sent to HMJr for review by
-
Gaston - 8/28/41: See Book 436, page 31
b) Gaston and Cochran discuss by telephone
with HMJr - 8/29/41: Book 436, page 93
- M -
Mexico
See Latin America
- 0 -
Office of Civilian Defense
"Emergency Medical Services" - Bulletin No. 1....
271
- P -
Price Control
See War Conditions
- U -
United Kingdom
See War Conditions: Military Planning
- W -
War Conditions
Airplanes:
Shipments to United Kingdom and oversess
commande - British Air Commission report -
8/25/41
225
Regraded Unclassified
- V - (Continued)
Rook
Page
Wer Conditions (Continued)
China:
Commercial banks licensing discussed in
Cochran memorandum - 8/25/41
435
26
Fox to be sent stenotype operator Hewlett: in
addition, two men from Philippines to
assist in Shanghai and Hong Kong - 8/23/41
2,29
Fox and Chen report ca arrival in Hong Kong -
8/25/41
229,279
Military mission planned - 8/26/41
266
Exchange market resume' - 9/23/41, 8/25/41
167,245
Export Control:
Exports of petroleum products, scrap iron, and
scrap steel from United States to Japan,
Russia. Spain. and Great Britain, week
anding August 23, 1941
226
Foreign Funde Control:
Germany:
American governmental offices (officiale
and employees) in Germany: Future
regulation of financial transactions
discussed in cable from American Embassy.
Berlin - 8/25/41
235
Japan:
Accounts in United States and freezing order
discussed by Financial Attache. Cochren,
and Gaston - 8/25/41
196
Lend-Lease:
Allocations and obligations in relation to
departmental limitations es of July 21, 1941 -
8/25/41
191
Military Planning:
Reports from London transmitted by Campbell -
8/25-26/41
247,293
War Department bulletin:
The German Theory of War - 8/25/41
249
Frice Control:
Report of August 19 meeting - 8/25/41
53
a) Discussion of
1) Division of Office of Price Administration
and Civilian Supply into two parts
2) Formaldehyde - civilian allocation
66
program.
3) Iron and steel scrap - fixing of ceiling
prices
E1
4) Automobile license tags - use of steel
85
5) Cotton grey goods - amendment to price
schedule
87
6) Copper - price ceiling
89
7) Sugar - price schedule
97
B) Tin - price schedule
101
9) Gasoline in Atlantic Const area -
civilian allocation program
106
Regraded Unclassified
- W - (Continued)
Book Page
War Conditions (Continued)
Price Control (Continued):
Report of August 19 meeting (Continued) -
8/26/41
435
53
a) Discussion (Continued)
10) Rayon yarn - civilian allocation
program.
114,143
11) Burlap - price schedule
116
12) Pine lumber (Southern) - price
schedule.
122
13) Aluminum (wrought) - amendment to
price schedule
134
14) Copper scrap - price schedule
136
15) Refrigerants (chlorinated hydrocarbon) -
civilian allocation program.
145
Purchasing Mission
See also War Conditions: Lend-Lease
Federal Reserve Bank of New York statement showing
dollar disbursements, week ending August 13, 1941
153
Vesting order sales - 8/25/41
222,223
Wheat
See Agriculture
Regraded Unclassified
TREASURY DEPARTMENT
Washington,
ASSISTANT SECRETARY
August 23, 1941.
Dear henry:
The week has been quiet and I have nothing of very
great moment to report, although I am enclosing two memo-
randa, one on a conversation with Eccles and the other on
the meeting on Wednesday of the Economic Defense Board. In
the latter you will note B. final paragraph on an inquiry by
Jesse Jones as to the status of Russian bank accounts.
Since he was asking for additional information on Thursday,
I assume he has not yet concluded any deal with the Russiens.
Stephens mentioned over the phone your désire that
the waiver of collateral from the banks on defense bonds
should apply only to the "E" bonds. I talked to Heffelfinger
who said that a report is being mude for you on your return,
but the intention W&S to relieve the banks of collateral li-
ability only as to the "E" bonds.
James Roosevelt came in to see me on Monday (August 18)
as contact man for Colonel Donovan. ne explained that
Donovan's work was being set up in three divisions: (1) a
general statistical organization, under Dr. James Finney Baxter,
President of Williams College; (2) 8 Division of Spot Informa-
tion, and (3) a division dealing with Axis propaganda. I
told him that Marry white's section would probably be able to
cooperate with Dr. Baxter and that the contact for the second
division for the present would be with Mr. Kleus. He said
the third division would probably occasionally ask the depart-
ment to issue independently statements answering Axis propa-
ganda and that they would see to putting out the answers on
hook-up of short wave stations. I told him Schwarz would be
the contact point for any statements they wished the Secretary
of the Treasury to issue.
Professor Cassidy is leaving by clipper today to re-
place Coe in London. Merle Cochran told me he arranged that
he should have the same status as Coe, although he had qualms
about this in view of Cassidy's short experience with the
Regraded Unclassified
2
- 2 -
Treasury Department. he also arranged to send Fox's steno-
type operator Newlett to Chungking at Fox's request, since
the latter had not been able to get competent secretarial
help. Bernstein is sending two men from the Philippines
to assist Fox's men - Taylor and Frese - at Shanghai and
Mone Kong; is sending two men from Eawaii to the Philippines
and two from here to nawaii, as replacements, in addition to
the two that are being sent to the Philippines under previous
plan. Bernstein took to the State Department for trans-
mission a cable of instructions for Fox, including questions
about trade between occupied and unoccupled China and an in-
quiry as to how much silk China could make available for ship-
ment. Merle Cochren declined to Initial this cable, but
suprested that Bernatein could take it un directly with the
State Department. Merle thinks it a mintake to ask Yox to
assume responsibility for frozen funds administration and
gathering general economic information for the Treasury while
he is acting as 8 member of the Stabilization Board. he will
probably ruise the point with you on your return.
Generel Burns and Phil Young came over yesterday after-
noon to show me a new form of report of "Allocations and ob-
ligations of Lend-Lease funds in relation to departmental
limitations, 65 of July 31, 1941. In this report Treasury
makes a relatively bad showing as compared to War, Navy,
Maritime Commission and Agriculture, but Cliff Mack, with whom
I discussed it this morning, regards the bad showing as a
matter of statistical set-up rather than fact. We get requi-
sitions from the British for such materials 85 steel, zinc and
fertilizer, which are to be streed over as much as 8. year but
OPM will only allocate for the immediate future. Mack is
writing B comment on this report for you and intends to take
up with Lend-Lease & proposed change in their methods.
I mentioned the Vimalert matter to you over the tele-
phone. The excess of the Vimalert price over what the War
Department is willing to pay, based on their "SHL" price list,
is less than ten rer cent on B million dollar order. The
British insist the price is reasonable and that they are in
desperate need of the motors. Winthrop Brown of Lend-Lease
told me the British were determined to go ahead with the pur-
chase if War Department would not make it and in these cir-
cumstances I thought it would be 8. mistske for us to intervene.
Regraded Unclassified
3
- 3 -
Cochran and Joe "Connell agreed. I told Brown that the
Treasury Department was expressing no opinion either of
approval or disapproval. Today he phoned me that the
British had cabled London for authority to make the purchase.
Senator Pepper called me up on Tuesday and later sent
in to see me 8. man named Howard Bary, who is advertising
manager of the Amusement Corporation of America. This man
was undertaking to transport National Defense exhibits around
to State Fairs on the four trains in different sections of
the country which carry the amusement concessions. He was
to do this without expense to the Treasury, but showed up at
the Capitol with a plan to anneal to the President for an
allocation of something like $100,000 out of the President's
special defense fund, which he was supporting by telegrams
from State Fair directors to Senators and letters from Senators
to the White House. Pepper thought the whole thing cockeyed,
and I agreed. I called in Gene Sloan and the scheme was dropped,
but an attempt is being made to supply exhibits to the State
Fairs direct without aid of the carnival companies.
I had hoped that you were going to get 8 full two weeks
of rest. I am sorry that you seem to be cutting it short.
Sincerely,
Writer
Honorable Menry Morgenthau, Jr.,
Secretary of the Treasury,
Montreal, Canada.
Galen)
Regraded Unclassified
TREASURY DEPARTMENT
Washington,
ASSISTANT SECRETARY
Aumist 23, 1941.
y dear 1r. Secretary:
Public Hearings on the Revenue Act of 1941 before the
Senate Finance Comdittee will end today and Executive Ses-
sions will start Monday morning, August 25th. Senator
[eorge has every expectation of completing these Executive
Sessions next week and introducing the bill on the floor
of the Senate September 2nd. lle expects that the bill will
leave the Senate floor not later than Saturday, September
6th. If we adhere to this schedule I shall attempt to
arrange for the appointment of House conferees 80 that they
can meet with the Senate conferees on September 8th. If we
wait until the 15th, when the House is supposed to reconvene,
or until the 22nd, when it will probably convene, we will be
losing valuable time at the rate of almost two and one-half
million dollare a day.
1 believe the following changes in the House Rill will
be made:
1. The base will be broadened by reducing the per-
sonal exemptions to 750 for single persons and 1500 for
married couples;
2. The tax on billboards, radio stations and on the
use of automobiles will be eliminated;
3. "e have almost an even chance of adding one-half
a cent a gallon to the tax on masoline and one-half a cent
a pack to the tax on cigarettes.
It looks now 9S though the Senate Finance Committee will
eliminate the special ten percent tax on those companies re-
porting their excess profits tax on sn invested capital basis.
However, I believe that the House conferees are likely to
insist upon this provision.
Regraded Unclassified
3
- 2 -
There will be a fight in the Committee for joint returns
but I believe that the Senate Finance Committee will reject
the plan you recommended or any other plan including the
principle of mandatory joint returns. Apropos of this, I am
attaching the ticker story I referred to in my telephone con-
versation with you yesterday afternoon,
Wednesday evening at my house, Senator LaFollette recom-
mended that no attempt be made to eliminate the exemption on
!' 'ure issues of state and municipal securities in this bill,
but that a serious drive be made in the Administrative Amend-
ments Bill to follow this one, Today Senator Prentiss Brown
told me that he was completely in accord with Senator LaFollette's
advice. Inasmuch as they are our two strongest advocates in the
Senate, I think it would be well to follow their recommendation.
Sincerely yours,
John
Honorable Henry Morgenthau, Jr.,
Vontreal, Canada.
Regraded Unclassified
6
Dow Jones
August 20, 1941
12:23 p.m.
President reported as cool to joint income tax return in any form,
Washn. - Congressional quarters report that President Roosevelt
has stepped into the tax picture again.
The Chief Executive these quarters say has told Senate leaders
that he does not think much of the mandatory joint returns for married
couples even if special treatment is provided for the earned incomes of
husbands and wives.
The President's position is said to have been stated at the
White House Monday when he conferred with Congressional leaders on the
foreign situation and his talks at sea with Winston Churchill, England's
Prime Minister.
These reports said in Congressional quarters to be well founded
came as a sharp surprise to Capitol Hill tax quarters inasmuch as Secretary
of the Breasury Morgenthau voiced unequivocal support for the mandatory
joint return provided that special treatment of earned income is granted.
Also President Roosevelt in his letter of July 31 to Chairman
Doughton of the Ways and Means Committee indicated that he had no
objection to the joint return if the relief proposed by the Treasury
Department was granted he said.
I am sure that I make it clear that the Treasury Department
does not approve of mandatory joint tax returns except on the condition
of granting substantial relief to earned income of the husband and wife.
In this I heartily concur. But the committee's ways and Means - draft
leaves out the proviso altogether.
The Treasury now is in the process of drafting a joint return
provision which would provide special treatment for earned income.
It has been notified by Finance Committee Chairman George to be ready
to submit this plan in detail.
Regraded Unclassified
August 23, 1941.
MEMORANDUM
TO:
Secretary Morgenthau
FROM:
Mr. Schwarz
a
At the request of the Treasury, all of the special
weekly letters devoted to business and finance have
distributed to their readers copies of our "Tax Savings
Plan" pamphlet. In the case of the Chamber of Commerce
of the United States of America, copies were sent to
local chambers and the latter have now been asked to
arrange for distribution to their members. The
following numbers of pamphlets were requested by each
of the organizations listed:
Kiplinger
1000
Whaley-Eaton
750
Banking (special defense
2000
letter to members of the
American Banking Association)
U. S. Chamber of Commerce
3000
American Banker
200
Congressional Intelligence
200
Standard Statistics
150
Commerce Clearing House
200
Goldsmith Letter
300
Regraded Unclassified
8
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE AUG 23 1941
TO
Secretary Morgenthau
FROM Mr. Cairns
In accordance with the request contained in Mr.
Thompson's memorandum of December 26, 1939, there is at-
tached a summary report of studies or projects carried on
in the Office of the General Counsel for the month of
July, 1941.
Huntington Caims
Attachment
Regraded Unclassified
9
SUMMARY REPORT ON STUDIES OR PROJECTS IN
THE OFFICE OF THE GENERAL COUNSEL -
JULY 1941
The following matters received attention in the
Office of the Chief Counsel for the Bureau of Internal
Revenue:
1. Request of Philippines for views of Treasury
upon proposed tax-exemption legislation. An
inquiry has been received from the Resident Commis-
sioner of the Philippines to the United States,
asking for the views of the Department on the pass-
age of legislation to grant exemptions to citizens
of the Philippines and to corporations organized in
the Philippines from taxation of income derived ex-
clusively from the operation of ships documented un-
der the laws of the Philippines, equivalent to the
exemptions provided for in Commonwealth Act No. 637,
recently enacted by the National Assembly of the
Philippines. That Act makes such income recipro-
cally exempt from the Philippines "privilege" tax on
the carrying on of business, based upon gross annual sales,
and from the Philippine "residence" tax imposed upon
Regraded Unclassified
10
- 2 -
certain Philippine residents measured by the value
of the real property in the Philippines and by gross
receipts or earnings.
2. Negotiations with Hawaiian sugar companies regard-
ing social security and unemployment taxes. None
of the Hawaiian sugar companies has paid social secur-
ity or employment taxes on perquisites, principally
housing, water, fuel, and medical services, furnished
their employees engaged in covered employment. Num-
erous conferences have been held during the past seven
or eight months by representatives of the Bureau with
representatives of the companies and the Social Secur-
ity Board concerning the taxability and valuation of
those perquisites. Certain tentative agreements pre-
viously reached between representatives of the Bureau
and the companies with respect to those matters were
rescinded on May 22, 1941. Further negotiations rela-
tive to a basis for settlement of the matters in dis-
pute have been conducted since that time. An under-
standing has now been reached with the sugar compan-
ies, subject to the approval of the Commissioner and
Regraded Unclassified
il
- 3 -
the Secretary, whereby the perquisites furnished
by such companies to their covered employees have
been valued for the purpose of taxation.
The above matters were handled under the supervision
of Mr. G. E. Adams, Head, Legislation and Regulations Di-
vision.
The following work was done under the supervision of
Assistant General Counsel Cairns:
3. Radio transmission of German war pictures to
the United States. An opinion addressed to
Assistant Secretary Gaston, prepared by Mr. Feidler,
and signed on July 8, 1941, concludes that by virtue
of section 606(c) of the Communications Act of 1934,
there is adequate authority for the President to pre-
vent such transmission.
4. State jurisdiction to escheat bribe money deposited
in Federal District Court. An opinion addressed to
Mr. Bartelt, prepared by Miss Goode and signed on July
18, 1941, concludes that where the Federal Court has
ordered bribe money to be deposited into the Treasury
of the United States, pursuant to the Act of January 7,
Regraded Unclassified
12
- 4 -
1925, 43 Stat. 726 (U.S.C. title 18, sec. 570), it no
longer has control over the money, and section 996 of
the Revised Statutes (U.S.C. title 28, sec. 851), is
inapplicable to such bribe money. Accordingly, there
is no res within the state on which to declare an
escheat.
5. Payment of assignees of awards of Turkish Claims
Commission. An opinion on this subject, addressed
to Mr. Bartelt, was prepared by Messrs. Meeker and
Johnston and signed on July 18, 1941. The opinion con-
cludes that the General Accounting Office has no juris-
diction to settle and adjust this type of claim; that
the Treasurer should pay assignees where assignment is
clear and undisputed; in other cases, the assignee's
application should be referred to the Department of
State, or the parties should be left to a judicial de-
termination of their rights.
6. Secret Service investigation of counterfeit food
stamps. This opinion, addressed to Chief Wilson,
was prepared by Mr. Collins and signed on July 21,
1941. It concludes that food OF tamps of the Surplus
Marketing Administration are obligations of the United
Regraded Unclassified
13
- 5 -
States and, hence, Secret Service has jurisdiction
to investigate.
7. Disposition of insane persons arrested for vio-
lation of Federal laws enforced by Secret Service.
An opinion addressed to Chief Wilson, which was pre-
pared by Armand DuBois and signed on July 25, 1941,
concludes that insane persons who have been arrested
by Federal officers, but who have not been convicted
of any offense, may be admitted to St. Elizabeths
Hospital if they are duly adjudged insane and are
either within or lawfully transferred to the District
of Columbia.
8. Emergent importation of livestock forage, duty
free. At the request of the Department of Agri-
culture and with the cooperation of representatives
of that Department and administrative officials of
the Bureau of Customs, Mr. Chambers, Chief Counsel,
Bureau of Customs, drafted a proposed Presidential
proclamation to be issued under the authority of seo-
tion 318 of the tariff act, declaring that an emer-
gency exists due to drought conditions which have
caused 8. serious shortage of forage for livestock in
certain areas in the United States, and authorizing
Regraded Unclassified
14
- 6 -
the Secretary of the Treasury to permit the free
importation of certain forage for use in such areas.
He also prepared 8 covering letter addressed to the
President, for the signature of the Secretary of the
Treasury, explaining the reason for the proposed ac-
tion. The proclamation was signed by the President
on July 25, 1941, and regulations to put its provi-
sions into effect will be issued as soon as necessary
data are received from the Department of Agriculture.
The following work was handled under the supervision
of Assistant General Counsel Bernard:
9. Fidelity Bond Bill (formerly identified as "Bond
Survey") (for description see original report,
item 10). As the Legislative Section has not yet
received advice from Congressman Cochran as to whether
or not he will sponsor this proposed legislation, no
further action has been taken on the matter.
10. Federal Depositary System (for description see
original report, item 6). After several minor
changes were made in this bill by the Legislative Sec-
tion, it was sent to the Bureau of the Budget on July
24, 1941, for clearance.
Regraded Unclassified
15
- 7 -
11. Law Committee of Defense Communications Board
(for description see November report, item 23).
Mr. Spingarn is continuing his work as the Treasury
Representative on the Law Committee of the Defense
Communications Board.
12. Administrative procedure bills (for description
see April report, item 8). The Legislative Sec-
tion has received comments from all branches of the
Department about our proposed letter and memorandum
statement on these three bills to Chairman Hatch of
the Senate Judiciary Subcommittee studying them. Only
the Bureau of Internal Revenue had any substantial
comments to make on this material. The Bureau suggested
about ten changes. Their suggested changes have been
carefully gone over and many of them have been accepted.
A few are believed inadvisable and 8. memorandum has been
sent to Mr. Wenchel explaining the Section's position
on each one. His reply is being awaited.
13. Proposed legislation to regulate production of
opium poppies (for description see May report,
item 9). The Legislative Section submitted a draft
Regraded Unclassified
16
- 8 -
of this bill to the Commissioner of Narcotics who
suggested several changes. The proposed bill is
now being revised to comply with some of the changes
suggested.
14. Payment of claims against the United States (for
description see original report, item 11). After
clearance with the Bureau of the Budget, this bill for
the orderly payment of claims against the United States,
and letters of transmittal therefor to Congress have
been put in final form and are now being circulated
for reinitialing before submission for signature and
forwarding to Congress. The Comptroller General and
the Attorney General have indicated they also consider
the bill meritorious and recommend its enactment. A
memorandum relative to this bill and & proposed com-
mittee report thereon have been prepared.
15. Board of Legal Examiners. The General Counsel
was appointed a member of the Board of Legal Examiners
established by Executive Order No. 8743 of April 23,
1941. Under this order, it is the duty of the Board
to promote the development of 8. merit system for the
17
- 9 -
recruitment, selection, appointment, promotion, and
transfer of attorneys in the Classified Civil Ser-
vice "in accordance with the general procedures out-
lined in Plan A of the Report" of the Reed Committee
on Civil Service Improvement. Mr. Bernard, as the
representative for the General Counsel, has attended
B. number of all-day meetings of the Board in Solici-
tor General Biddle's office, and is acting as Chair-
man of the Board's Committee on Transfers. Mr. Ber-
nard and others in his section are working on a num-
ber of legal problems arising in connection with the
work of the Board.
The following matters were worked on under the direc-
tion of Assistant General Counsel Bernstein:
16. Foreign Funds Control. Freezing control was ex-
tended to Japan and China. Incidental to the execu-
tion of the control it was necessary, in addition to
amending the Executive Order, regulations, and in-
structions, to issue 16 new general licenses dealing
with problems peculiar to the Japanese and Chinese
picture. Several other licenses required amendment.
Doaradod
18
- 10 -
Two attorneys in this office (Aarons and Anderson)
have been sent to the Philippines by way of Hawaii
to work on the problems this extension has precipi-
tated in that area. Similarly, another attorney
(Johnston), has been sent to Hawaii. The entire
staff worked on these problems.
This office assisted in the preparation and
issuance of the President's Proclamation dealing
with the proclaimed list of blocked nationals. It
also assisted in the preparation and issuance of the
black list. Instructions were sent to all the Fed-
eral Reserve Banks and all Collectors of Customs re-
garding the procedure to be employed and efforts were
made to coordinate our activity in this field with
that of Export Control. Messrs. Bernstein, Luxford,
and DuBois worked on this matter.
The field of foreign trade is becoming increas-
ingly important, particularly in view of the inclu-
sion of China and Japan in the freezing orders. With
the advent of the proclaimed list of blocked nationals
this office prepared General License No. 53 which con-
tributed to a clarification of the rights of American
19
- 11 -
exporters to deal with Latin American firms. Trade
with China was similarly licensed. On the other
hand, Japanese trade has been subjected to a rigid
control in which for the first time all trade with
a foreign country has been brought under direct Cus-
toms supervision through the facilities of freezing
control. General License No. 53 has now been amended
so that not only is trade with the American Republics
permitted but also trade with the British Commonwealth
of Nations, the Dutch East and West Indies, Russia,
and other friendly nations. The regulation of trade
with Japan and China has precipitated a difficult
problem concerning losses to American importers and
banks resulting from the failure of Japanese boats to
deliver goods. In an effort to alleviate certain of
this pressure a Public Circular was issued regarding
documentary drafts. The problem in connection with
Chinese exports is still under study, although one
Public Circular has been issued in connection there-
with. One general study has been made of the whole
trade problem from the point of view of the most
Regraded Unclassified
20
- 12 -
effective means of bringing it under freezing
control. Messrs. Bernstein, Luxford, DuBois, and
Smith worked on this.
Studies on the control of patents are still in
process. Work is being done along the line of issu-
ing a general license and public circular dealing
with certain phases of these matters. Messrs. Bern-
stein, Aarons, Murphy, DuBois, and Luxford worked on
these studies.
The work incident to the preparation of the cen-
sus report on Form TFR-300 and the instructions to
accompany such form is nearing completion. Confer-
ences have been held with 8. large number of represen-
tative groups and an educational conference for the
benefit of all Federal Reserve Banks has just con-
cluded. Messrs. Bernstein, Reeves, Arnold, and Mur-
phy are handling this matter.
The regulation of business enterprises that are
either blocked nationals or under strong ties with
blocked nationals is getting under way. A great deal
of work is being done on the Sterling Products case
21
- 13 -
and careful consideration was given to the Silesian-
American matter. Messrs. Bernstein, Lawler, and
Luxford worked on this.
17. Stabilization agreements. Conferences have
been held with the Colombian Ambassador regarding a
stabilization agreement with Colombia. Similar con-
ferences have taken place with a Mexican representa-
tive covering an agreement for Mexico. Additional
work has been done on the Chinese and Argentina Agree-
ments. Mr. Bernstein is handling this matter.
18. Russian Gold. This office participated in the
conferences relating to the purchase of Russian gold
and the preparation of the Secretary's note to the
Russian Ambassador relative thereto. Messrs. Bernstein
and Luxford worked on this matter.
19. Ecuadorian Trade Agreement. This office, in co-
operation with the Division of Monetary Research, is
working on a new Foreign Exchange stipulation for the
Ecuadorian Trade Agreement which will permit this coun-
try greater flexibility in the event of any further
extensions of freezing control. It is envisaged that
22
- 14 -
the stipulations on this subject will take the
form of exchange notes. Messrs. Bernstein and
Luxford worked on this matter.
Regraded Unclassified
23
August 23. 1941
Files
m.
AN 2:30 p.m. an ingust 14 Mr. Helpana, Financial Attache, called on m.
lie told as of a payment of $5,000,000 viside had been más to the Bank of Indo Chisa
w the Tokahama Specia Bank as July 25. is gave m his word that this payment had
been under contemplation for come time and that 10 had se military or pelitical
significance.
Nisiyama referred to three applications which be had on file for licenses to
pay $180,000 for oil for Jugan. No stated that the vithdrawals of impense funds
from this market prier to freesing had been on the part of the Japanese Havy and
that be and his ass net like to try to ⑉ these funds returned so the
United States. 10 heped, however, that the Treasury would ⑉ fit (2) to permit
the Tobakama Specia Bank so pay for the oil from blocked funds or (2) to yerait
payment at Thoughai in Chincee year for remittance to lev York in dollare 67
(3) payment free Datavia is Dateh florias to be remitted to the United States.
I told Mr. Hisiyans that this val a matter for consideration w Foreign Tests
Gentrel. When he teld - that be had all appointment with Mr. Touses, I telephened
Mr. Towner to introduce Mr. Nisiyama.
ml
HMC:lap-8/25/41
Regraded Unclassified
24
August 23. 1941
Files
Mr. dechren
At 3125 p.m. on August 19 b. day Greas telephoned - free the offices of the
Standard 011 Company in Bev York. Zo said that Vice President Harden had called
on Mr. Foloy the preceding week in regard to the application for a license to your
mit the sale by the Standard 011 Company of its preperties is Rengary to German
interests. Upon & Earden's return from Washington the Company had decided to
propare & letter for submission to Vice President Vallase as Chairman of the Sev
Defense Committee. cetting forth the Standard's position with respoct
to the proposition under reference. I brought this matter to the attention of the
Foreign Funds Centrol Committee at the meeting hold is Assistant Secretary of State
Acheson's office the following day.
1ml
HMC:dm:8/23/41
Regraded Unclassified
25
Regraded Unclassified
August 23, 1941
Files
Mr. Coolars
Reference is made to Mr. Southard's memorantum of August 20 in regard to the
discussion of the propesed Serican Stabilization Agreement. Mr. Collado nentioned
after the meeting with the Housderisms on the aftermeon of Monday, August 18, the
fact that Monteres had raised the question as to the Central Boak of Maxico not
being required as a signatory to the agreement. I told Mr. Collade that it use ay
feeling that the freasury would definitely require this. Mr. Collade wanted to
know if the Treasury would raise the question with Secretary Margentham and Under
Secretary Dell nov on their holidays. I seld Gollade that I definitely vould not
do this unless Mr. Welles himself requested 1t. I did net think Menteres wes
assuming the right position. Purthermore, I pointed ont that Secretary Morgesthan
had been ready to proceed with the consumetion of the Stabilisation Agreement with
Mexico before his departure on leave, but that the State Department had not been
prepared with its part of the related negotiations. It had been agreed, therefore,
that completion of the various arrengements with Mexico would be delayed until
after Labor Day. It did net ⑉ reasonable, therefore, to we the Treasury to
take my special stops in the interia.
After this conversation 1 checked up with our records and confirmed that the
exblegram of instructions which the Secretary sent Mr. White at Revane last year
definitely provides that there shall be separate and joint responsibility os the
part of treasuries and central banks of Latin American countries which receive
assistance free our Stabilization Fund. I told Mr. Southard of this point. I also
mentioned 11 to Mr. Berastein.
On the fellowing day, fuesday, August 19, I balked with Mr. Collade at the
Mayflower luncheon given by the Reunderian Minister of Flasses. Mr. Collado was
convinced that is view of the Treasury's position Mr. Menteros reald withdraw his
objection to the Bank of Mexico belag a signatory to the agreement, As a matter
of fact, I felt that Rr. Collade already had this assurance from Mr, Menteros.
ANY
EMC: dm: 8/23/41
injust 23. 1941
Files
Mr. dechram
On the norning of August 22 Mr. Joseph Jenes of the Far lasters Division of
the Department of State telephoned se. 14 referred to a cablegram of August 18
from Hr. Fox. Junes gate as his personal opinion that 11 would be desirable to
... Chinese banks generally licensed.
Later is the noraing I was talking with Mr. Dermatein es China and neationed
that Mr. Jenes had nate this personal recommendation. I told Mr. Berastein fur-
ther that Mr. Leabhead had the proceding w told se of the observations which he
had made to Mr. Berastein upon the desirability of licensing Chinese comercial
banks. In addition, Mr. Leahhead had pointed ent the advantage which would ascress
to the year through our permitting remittences free the United States to China.
rink
HMC:lap-8/25/41
Regraded Unclassified
27
August 83. 1941
Files
Mr. fechren
AS 18 meen on August n Mr. Anstrum of the National Bank of Belgium called
en no. Zo stated that the Bank of France had appealed from the recent decision
of the court in New Terk which hold that 10 had jurisdiction is the case of the
National Bank of Belgium verezo the Bank of France. the hearing 46 this appeal
will be on September 26. It is expected that the Bank of Trance my aggeal the
case further if the September 26 decision is unfavorable to 19. Mr. Anstans is
of the opinion that the case cannot be tried en its morite before March or April
of next year. Be is, therefore, returning to Lenden sev. Thousts
will fellow the litigation until the real trial takes place, at which time
Mr. Assisux will return to New York to give direct testinery.
p.m.s.
HMC:lap-8/25/41
Regraded Unclassified
28
Regraded Unclassified
August 83. 1941
Filse
Mr. Declaren
Mr. Randelph Durgess telephoned as from York on the afternoon of August 22.
So stated that he was spending - time with the British Purchasing Commission
is Washington, since the douth of to. Purvis, assisting Sir Clive Maillion. Is
this commertion he asked se for certain information in regard to the official
posibion of Mr. Opio.
Is referring to - 300. Mr. Durgess heped that the Treasury had not felt
that he had born critical thereof. It come that Mr. Durgees had speken to Mr. Dell
on this subject vhes recently is Washington. I told Mr. Durgess that I had heard
M suggestion that be had been critical of the Treasury or of this form. Burgese
said that the Treasury MS who had vorked with the backers is New Tork en this
form had been very serious and competent. Although execution of this form is 0002-
ing the National City Bank $40,000. that institution is villing to " along with
the Treasury's requirements.
Burgess reminded me that the Presillans have recently passed a law which would
force foreign banks out of business is Brasil by 1945. Phere was ⑉ arrengement
whereby this law could be interpreted to essept Vesters Heal sphare banks therefrom.
Mr. Bargess hoped, havever, that our deverament would not depend confidently upon
this interpretation and reald endoever to have a definite removal of this danger
to the United States banks operating is Brasil. Zo thought secusion for bega-
tistions might arise if Brasil should seek further financial assistance from this
deversment.
M.H
HMC:1ap-8/25/41
August 23. 1941
Files
Mr. Coshran
Having completed arrengements for Mr. Soulett's departure for Chise, I delivered
to his yesterday noes fear packages of documents free Mr. Berastein and two from
Mr. Timens, all relating to Foreign Funds Centrol, to w taken by Mr. Howlett to
Mr. For is China. I sent to the Department of State a cablegram to Mr. For reporting
that Newlett would sail for Mong Keng on August 29 from Ban Francisco.
It vas not until Angust 13 that Dr. Soong telephened BO that be had received
word from Dr. lung, Chinese Minister of Finance, approving the cagagement of Mr.
Hevlett. Dr. Boong had not been villing to take the responsibility for sending
Mr. Revlett to Chima and paying therefor, until he had Dr. Kung's approval. Be had
seked this by cablegram the day following Ky sending Mr. Nevlett to Dr. Boong. Dr.
Seorg told as by telephone that Dr. lust had net understood at first why Mr. Fox
had not obtained comeons lecally. I had explained to Dr. Beong that Mr. Fox had
cabled that both be and the Babaccy, as well as Dr. Ches, had agreed that @@@@@@
from the United States should be seal out. It had hous the Treasury's proference
that should be engaged lecally if this night be fensible, but efforto toward
this ond ovidently had failed.
After receiving Dr. Seong's approval, Mr. Howlett endoavored to obtain early
transportation to Long Kong, but was quite unsuccessful. When be reported this to
me I took the matter my with the State Department and Mrs. Narvey there succeeded
in arranging passage on the 5,5, President Monree sailing August 29.
Dr. Seong 414 not give Mr. Newlett a written contract. Be told Mr. Nevlett
that his contrast should be through Mr. Fox. The Chinese would, however, pay all
transportation costs to Beng Zong, and arranged for an advance on account of salary
and expenses. Is my conversations with Dr. Boong and his assistant le. Use, I told
them that Nr. Newlett vas ready 16 P to China on the understanding that be reald
be paid a salary of $3,500 per year, 06 per diem, together with travel expenses to
and from China. I had gives this information to Dr. Scong whom I originally referred
Mr. Newlett to his.
Said
HMC: dm: 8/23/41
Regraded Unclassified
30
August 83. 1941
Filse
No. Geehren
Hr. Gentier, the representative is In York of the frice National Task,
telephoned se yesterday at 2:50 p.m. Re said that be had received emblegrame
last vesk from the Svice National Dent at Born and Zurich instructing his to
apply for a license to permit the transfer of 2,000 kilegrams of gold from the
Federal Reserve Bank of Nov York to Lisbon. Mr. Centier had new filed this
application with the Federal Reserve Bank and understeed that 11 vas being 79-
forred to the Treasury Department for consideration. Mr. Gautier stated that he
had written a letter explaining the situation is full.
In summary, Mr. Gautier explained that Seitzerland had agreed be per Portugal
in gold for imports from that country. Since the fries National bank must main-
tain is Switzerland the gold cover for forty percent of its note circulation, and
since gold must be used to pay for eartain imports, such as whent, cotten, etc.,
that Svitsorland has been obtaining from Insta and other European countries.
11 valid found argently destrable to withdrew gold from the Sviss National Bank's
earnaried supply in New York, rather than endoaver to make the difficult transfer
of gold across France from Switzerland to Portugal. Mr. Gautier reminded as that
the National Bank of Svitserland NOV has is the Federal Reserve Bank of New York
$220,000,000 is gold, $270,000,000 is dollar belances and $52,000,000 is treasury
Bills, together with $120,000,000 of balances with commercial banks is New York,
making & total of $562,000,000 which the Bries National Bank has is New Terk.
the present request is to withdraw saly around $2,000,000 of this total.
Mr. Qautier added that all imports from Pertugal to Ovitsorland mast be approved
by the British authorities is Listen before they are consumered. Consequently,
vs would be releasing Svice gold to pay for only transactions that are approved
by the Brittsh authorities.
Mr. Centier asked my assistance is obtaining as expeditions and favorable
decision is the premises. No said that his people considered the application case
involving important matters of principle. They feel that they should be able to
vithdraw the gold which they had placed with our Federal Reserve Bank and they
rentad as of the which they (ATE as as a prior condition to the lessance
of our General License.
After receiving this call, I telephoned Mr. Feble. Xe said that the applica-
tion had net yet como to his attention, and that when it did be would refer the
matter to a Consittee Meeting.
I - definitely of the opinion that this application should be unconditionally
approved at the earliest possible date.
mP
HMC:1ap-8/25/41
Regraded Unclassified
31
August 23. 1941
Film
hr. federess
40 5 p.m. yesterday eventing Mr. Kashe telephoned as from New Tesk. No seld
that he had not been able to at is teach with Mr. Pehis, 00 valid to give M the
fellowing information. the Quaranty Trast had 100 his have confidentially that
a client had sought the accistance of the Beareaty inmited a resittance to Comun
territory, including Folond. Before the Quaranty had given m - the alient
- back to report that the Quaranty's novistance was not memocry since the
esstemer had been able to submit dollars to the Inhassy is Vachington with
the understanding that the latter would make reichenarks available to the pages
is termsy.
AS 5:15 I reached Mr. Fekle W telephone and (ave Me the above information.
Mr. Pskie stated that be would have Mr. Mar in Bev York get is boath with Mr. Indo
at 0360 as this case.
suil
HMC:lap-8/25/41
Regraded Unclassified
32
Amput 83. 1941
Piles
Mr. deabres
AS 11:20 this seraing Sir Proterist Phillips called M by telephone. Se
inquired whether I was familiar with the Northrep case. I teld Sir Proderisk
that Mr. Bowley had breaght this case be W attention and had provided - with a
memorandum thereon. I had submitted the nation be the Secretary at s. Staff asset-
ing and had been instructed to write 6 letter to Mr. Jenes, collaborating with
Messrs. Pavley, White and Doz. Oir Proderisk had before his a copy of this letter
of August 13. I sold Sir Proderick that on August 15 Mr. Jones had written the
Treasury a letter, which I read so Sir Proderick, and that the Treasury had Lume-
distely enovered es the - day. through a letter signed by Rr. Bell, which I
also read to Sir Frederick. This smokings of letters en August 15 had - after
the British had agreed with Mr. Jenes' office that He. Devley's had
been in 07707. is that 11 should have referred to 140 planes instead of 100 planes.
Mr. Devley and Mr. Cox agreed with - that the Treasury position as explained in
the letter of August 13 should be maintained aven though the under of sirplance
involved was 140 instead of 100. Mr. Berastein helped no on the draft of the
reply to Mr. Jenes, and vest with no to Mr. Dell to obtain his signature late ea
Triday ovening, August 15. The letter was read be Mosers. Sevley sad Cex. but
Mr. White had already left and sould not be consulted.
1 reminded Sir Proderisk Phillips that Mr. Margentham had decided that Lend-
Lease matters should be headed up with Mr. white and that the British had been se
Informed. Consequently, I had takes H direct part is the Northrep case subsequent
to the exchange of correspondence above described. Novertheless, Mr. Cabs, head of
the Northrep Company, had reported to at 68. Maturday, August 16, and again this
current veek, en his difficulties. I had, after consultation with Mr. Gastes,
Kiss Kistler and Mr. 0'Commell, placed his directly is touch with Mr. Breva is
Land-Lease. From Mr. Drown I had learned that the latter had intervated General Duras
and other of our Armaneat people is the question, and that they. in 1573, had been
is touch with Mr. Jesse' office. by Mr. Cobe I bed been teld yeaterday ever the
telephone that the R.F.C. apparently was out of the picture since they were not
villing to " iste the deal unless the Britler would yield to the B.F.C. prierity
of claims on the Northrep Company. thes Bir Frederick asked M whether be should
new got 1a touch with Rr. Jeans, I told his first to speak with Mr. Drown and find
all of the latest developments. I particularly contioned Bir Proderick that he
should have Mr. Brown's opinion as to whether the Jenes plan sight involve any
increase is the total sentract price. It had been 4) understanding that there has
been envisaged simply a stepping up of payments as the first 140 planes. to be
compensated for on payments 02 the balance. sir Froderiek said 11 vas his definite
understanding from the documents before his that 10 increase is total contract price
vas envisaged.
mn
EMC:lap-8/25/41
Regraded Unclassified
33
August 26. 1942
Files
Mr. Goshren
Mr. Quagle of the Northrop Aircraft, Inc., (National 7062) telephened - this
aftermeen. 10 stated that Measrs. Cahn and Colonan are - to Bev Terk bat that
they all vanted to 108 no know that their financial arrangements appeared on the
point of being concluded satisfactorily. the final arrangement does ast include
any participation by the 1.7.0. The British have stepped - their payments, and
will receive - persont interest an sévances, obvisting any accessity for a lean
from the R.F.O. The Bev York basics will participate in the leas as originally enti-
sipated. Mr. Beddie signed the subscrimation agreement as behalf of the British
this afternoon.
I told Mr. Quayle that I had had nothing to is with this matter the last few
days except to bring Sir Prederick Phillips to date last Saturday, and to talk
with his about the necessity of the British accupting the suberdination arrange-
ment. Quayle thought My conversation with Phillips had been of como assistance
in leading to the final arrangement, and thanked me warnly.
just
HMC:lap-8/26/41
Regraded Unclassified
34
FORDEFENSE
BUY
FIELD ORGANIZATION News Letter
UNITED
STATES
ANVINGS
DEFENSE SAVINGS STAFF
BONDS
AFD LIAMYS
TREASURY DEPARTMENT, WASHINGTON, D. c.
August 23, 1941. Number 14.
DO THE FIELD STAFF:
It is well to take stock of that phase of our progress in which we
are so interested; namely, the sales record of Defense Bonds and Stamps.
The principal goal of our efforts is the largest possible list of owners
of these securities.
The Series E Bond is, of course, the most popular. The number sold
during May, June, and July indicates an increasing acceptance of this
security as a prime investment. The methods of marketing--Payroll Allot-
ment, Bank Depositors Draft Plan, Stamp Banka, Buy-A-Bond-A-Month and
Thrift Clubs, Direct and Mail Purchases, and others-are accumulating
funds for future purchases on a systematic and regular basis, and the
particular emphasis is on the Series E Bond,
The number of honds purchased each month will be of interest and the
record is very encouraging. Following are the figures, which are approx-
imate:
1. Number of Bond Units
Series E
Series F
Series G
Total
May
883,000
20,000
91,000
994,000
June
1,030,000
21,000
96,000
1,147,000
July
1,493,000
22,000
93,000
1,608,000
Total
3,406,000
63,000
280,000
3,749,000
21 Dollar Volume (Issue Price)
Series E
Series F
Series G
Total
May
$100,581.000
$37,617,000
$211,420,000
3
349,818,000
June
102,517,000
28,876,000
183,134,000
314,527,000
July
145,274,000
27,359,000
169,498,000
342,132,000
Total
$348,373,000
$94,052,000
$564,053,000
$1,006,477,000
The number of individual stamps sold is slightly under thirty millions.
Sincerely yours,
GALE F. JOHNSTON
Field Director, Defense Savings Staff
Regraded Unclassified
35
NEW STATE CHAIRMEN
In Georgia, Virginia, and 'lost Virginia, Secretary Morgenthau has
recently appointed State Chairmen of the Defense Savings Committees being
organized there.
The Georgia Chairman is Arthur Lucas, Atlanta banker and theatre
executive. In Virginia, Frank Pendleton Gaines, President of Washington and
Lee University, has accepted the post. And in West Virginia, Albert Snedeker
of the Wheeling Steel Corporation has assumed the responsibility of chairman-
ship for his state for Defense Savings.
*
+
#
#
*
IN THIS ISSUE
ALLOTMENT DEVELOPMENTS-
Montana state employees have plan - page 3
Explaining a plan - page 7
Highlights-New York, Newark, St. Louis and Soattle - page 7
Auto Workers endorse allotment - page 8
Banks prepared to help install plans - page 15
BANK NETS-
Tennessee bankers pledge cooperation - page 4
Banker advocates bonua in bonds page 6
Detroit and Seattle banks have allotment pamphlets - page 8
Bank installs automatic bank draft plan - page 13
Atlanta bank meets a challenge - page 15
EDITORIAL COLLENT-
Chicago, Dallas, Philadelphia, Seattle, Great Falls - page 16
FIELD REPORTS-
Montana - page 3; Minnesota and Tennessee - page 4
MISCELLANEOUS-
Pictures - Defense Bonds at Elke Fair - page 5
Bonuses paid in Defense Bonds - page 6
Americans All - page 10
Tips, premiums and prizes in Stamps - page 11
Pictures - Children think country worth saving - page 12
Picture - Volunteers staff Stamp booth - page 12
State employees organize for Dufense Savings - page 13
Advertising club has 3-point program - page 13
Chain letter schemes disapproved - page 14
Pictures - Modern Art Museum's prize-winning posters - page 17
RADIO--
Programs for the coming week - page 9
and
- 2 -
Regraded Unclassified
36
MONTANA
Many Significant Developments Reported
ACTIVE COMMITTEES in each of Montana's 56 counties by September 1 is the
objective of the State Committee, reports Administrator William H. Bartley.
A GENERAL COMMITTEE is being set up to supplement the State Committee.
The presidents of all state farm, labor, patriotic, women's, civic, business
and professional groups are being asked to serve on this body.
STATE EMPLOYEES are responding enthusiastically to the recently installod
salary allotment plan developed by Governor Sam C. Ford, State Auditor John, J
Holmes, State Treasurer Thomas E. Caroy, and State Accountant William Hosking.
BUTTE MINERS, one of the largest groups of organized labor in the state,
have given assurances of their cooperation and support. Sylvester Graham,
President of the Montana Industrial Council, CIO, recently statud:
"The Montana State Industrial Union Council wholeheartedly
endorses the program of Defense Savings Bonds and Stamps
and pledges assistance in every possible way."
AMERICAN LEGIONNAIRES, meeting in state convention, adopted a resolution
calling upon all Legion posts and every individual Legionnaire "to take part
in this important program by genorous purchase of Defunne Bonds."
EAGLES, ELKS AND MOOSE are rallying to support the Program following the
adoption of resolutions of endorsement by their state governing bodies.
The Montana State Aerie of the Proternal Order of Englos has resolved
that
"wo deum it the civic duty of every member to buy Defunss
Stamps and Bonds to the limit of his ability ... You
can't lose, betting on the U. W. A."
The state Elks organization has invested the major portion of its reserve
In Defense Bonds,
MONTANA FARMIRS-mor- then 44,000 of them-are receiving Defense Savings
folders through the AAA organization. This distribution is buing well timed
in relation to the marketing of Montana's bumpur whost crop.
IN GREAT FALLS AND CASCADE COUNTY, every organized group of any kind was
invited to send representatives to the general mouting hold August 20 by
the Cascade County Committee, Loo Graybill chairman. Those representatives
will learn of their part in the Dofense Savings Program and carry back the
message to their various associations end clubs.
Regraded Unclassified
37
MINNESOTA
Spot News From The Larger Cities
LOCAL COMMITTEES are now functioning in Austin, Duluth, Minneapolis,
St. Paul, and Winona:
In Austin, the organization meeting of the Mower County Defense Savings
Committee W&S addressed by G, A. (Jay) Hormel, President of the Hormel
Packing Company and member of the State Committee for Minnesota, Sixty
people were invited to this meeting and all but one, who WGB out of the
city, attended! The success of the program in Austin and Mower County
is assured.
In Duluth, Mayor E. H. Hatch, has indicated that city employees there
will be able to buy Defense Bonds through salary allotments,
In Minneapolis, a special sub-committee composed of representatives of
business and labor - both A. F. of L. and C. I. 0.- is encour-
aging installation of allotment plans. Thos. E. Hastings is the
chairman of this group.
....
Banks in Minneapolis have announced
their readiness to provide free safekeeping for Defense Bonds and
to cooperate with employers in operating payroll allotment plans.
In St. Paul, the Industrial Sub-Committee, which is headed by John
Connolly, Secretary of the Minnesota Mining & Manufacturing Company,
and Harry F. Fairchild, Vice-Chairman of the St. Paul Committee, is
placing emphasis upon the installation of payroll allotment plans.
Its first move was to send supplies of folders, etc., to all major
St. Paul firms.
TENNESSEE
Program Gethers Momentum
EACH OF TENNESSEE'S 95 COUNTIES is to have a Defense Savings Committee.
City committees are already functioning in Nashville, Memphis, Chattanooga, and
soveral other localities.
BANKERS, through the Tennessee State Bankers Association, have pledged
their full cooperation as issuing agents, volunteer speakers, and in other
capacities,
IN CHATTANOOGA, Defense Bond Week was celebrated from August 10 to 16.
Mayor E. D. Bass issued a special proclamation.
....
Ten-minute speckers
were specially recruited to carry the message of Dofense Savings to civic
organizations and other audiences.
....
And motion picture theatres,
radio stations, and newspapers cooporated in focusing attention upon the
Program.
....
These activities were planned and carried out by a committee
headed by Cecil Woods, President of the Volunteer Life Insurance Company and
Chairman of the Defense Savings Committee for Humilton County.
- 4
Regraded Unclassified
ELKS FAIR FEATURES DEFENSE SAVINGS
Defense suvings booth nt the
Elks Charity Fair in Norwieh,
-
RETTEN
Conn. Paul W Franklin, choir-
mand the DefenseSavings Coin-
BUT
mittee for Norwieb (on right).
explains some of The finer points
to IL prospective investor.
1
Day J.Y Pierson of the Ship's
Chib of the U.S. Sub-
docume Base at New London,
Conti covives И $2,000 Defense
Now corrects purchased by the
Paul W. Franklin,
income the Defense Savings
for Norwich, Conte
T presentation coromonies
note place A1 the Elks Charity
to 00 Norwiek
SAVE FOR SECURITY
Will H Smith, Indiana State
Administrator, mepeets the rp-
cently procted sign NOW domi-
nating Monnment Circle laning
North Meridian Street in Indi-
BUY
DEFENSE
anapolis, list The sign Was
SAVINGS
nnole possible through the 2011-
*
prosity of Joseph 1. Hama,
BONDS &
Concrul Manager of the General
Outdor Advertising Co., and IS
STAMPS
lighted nt night through the
enoilesy of (leo Indianapolis
Power and Light Co
are -
Regraded Unclassified
39
SCHUSES 1% DEFENSE BONDS AND STAMPS
A few of the many companies which
have recently given their employees
bonuses in Defense Securities:
McDonald Machinery Company in St. Louis - each of its employees received
25 Defense Savings Bond and was promised a second bond as soon as he pur-
= chased two with his own money. Next year, the Company will continue this
plan, but to be entitled to two bonds "on the house" the employee will not
only have to purchase two bonds from his own funds but also hold the four
sonds acquired this year.
Richards and Conover Mardware Company of Kansas City, Mo. - gave each of
their employees a 25 bond with a personal letter, urging regular purchase.
Cownie Turs of Des Moines, Iowa - distributed bonuses totaling 03,500 in
XTense Bonds and Stamps to its 70 employees at a picnic dinner. Charles T.
Cownie, president of the firm, in making the presentations, said:
"It is the first time employees have been given a bonus
at this time of year." They were presented the bonuses
in Defense Stamps and Bonds primarily to call attention
to this part of the Defense Program.
Several large concerns in North Carolina, including Carolina Wills, Ino.,
are paying employee bonuses in Defense Savings Bonds, according to reports
from the Farmers and Lerchants Bank of Newton, N. C. and the Wachovia Bank &
Trust Company of Winston-Salem.
7. B. Connelly Company of Seattle, appliance distributors - presented
each of their 28 employees with a 525 Defense Savings Bond at a dinner at the
ashington Athletic Club.
Merck and Company of Rahway, W. J. - started its 3,000 employees on the
road toward bond ownership by giving each a $1 Defense Savings Stamp in De-
fense Savings Bond albums.
George iashington Hotel of Jacksonville, Fla. - started each of its 100
employees with a 250 Dofense Savings Stamp and album.
Kellogg Swithboard & Supply Company in Chicago - installed payroll allot-
ment plan and then announced that it would contribute A toward the cost price
of each 25 Defense Savings Bond purchased by its employees.
Frank C. Rathjo, president of the Chicago City Bank and Trust Company -
on of the !irst Chicago concerns to install = Dofense Savings Salary Allotment
Plan - has proposed that employurs bé urged to distributo bonus payments in the
form of Defense Bonds, The details of his proposal end reasons therefore were
factured by Royal F, Munger, financial oditor for the Chicago Daily News, in
his daily column on the financial page of that paper.
Regraded Unclassified
40
PAY ROLL ALLOTMENT
Explaining = Plan: Highlights
"A DELIONSTRATION OF EFFICIENCY." This is the report of one observer
on the presentation of the Defense Savings pay roll allotment plan to employ-
DES of the Metropolitan Edison Company of Reading, Pa.. At a. meeting of branch
managers and key men from various branch offices, held recently in the main
office of the Company, Mr. I. J. Ingram, New Business Manager of Netropolitan
Mison, gave a "model" talk on the Defense Savings Program, the opportunity
it affords company officials and employees, and the plan for participation
through pay roll allotments.
A SERIES OF FIFTIEN LARGE CHARTS, especially prepared by Mr. Ingram, were
used to illustrate every phase of the plan, and to explain why everyone should
enlist now in the Defense Savings Program.
THE 30NG "Any Bonds Today" opened and closed the meoting.
AN ATTRACTIVELY PRINTED PAMPHLET, describing the company's allotment plan
and presenting full information about Defense Savings Bonds, was distributed
to those present.
A STATES OF 3111LAR MEETINGS at each of the company's plants and branch
offices will be held in the near future. Koy men, who will be asked to con-
tact their fellow employees and tell thom about Defense Savings and the volun-
Lary pay roll allotment plan, will be invited to attend, Mr. Ingram will pre-
sunt the details, assisted by his charts and phonograph records. He confident-
ly expects that & large majority of the employees will voluntuer to enroll as
regular Dofonse Savore in the near future.
TORK-Bristol-Lyers Company, with factory and laboratories at Hillside,
N. J., and offices in Now York, Chicago, Dallas and San Francisco, re-
ports that its Défonse Savings allotment plan has been accopted by every
employee--from the night watchman to the president.
WARK-The Feigenspan Browing Company is the first browery in the state to
install = voluntary salary cllotment plan. William Rose, Jr., vice prosi-
dont of the company, in announcing the plan, said that employees volun-
tarily undertook the canvassing of their follow workers, and added:
"The response has been most gratifying. The men in the plant
who are over draft age are most anxious to play their part in
helping along the national defense program. The results ob-
tained are due to the very excellent work of the foreman and
other union men in the organization."
X. LOUIS-The first two industries in Missouri to report 100% participation
in an allotment plan are the 8. J. Wallace Company and the 0. 2. are Linson
Company, both of St. Louis.
SEATTLE-In a lettur to officers of affiliated local unions in Washington,
Richard Francis, Regional Director of the CIO, urges that employees ask
employers to install Defenso Savings pay roll allotment plans,
Regraded Unclassified
41
UNITED AUTO WORKERS, INTERNATIONAL UNION,
ENDORSES ALLOTMENT FOR DEFENSE SAVINGS
The Sixth Annual Convention of the International Union, United Automo-
bile, Aircraft and Agricultural Implement Workers, meeting in Buffale, N. Y.
of. August 13, enthusiastically and unanimously adopted the following resolu-
tion:
THEMAS: The UAW has by action of this Convention given renewed evi-
derice of unreserved support of National Defense, and
THEREAS: The Treasury of the United States has suggested several
plans of systematic saving through purchase of Defense securi-
ties, therefore Le it
ESSAVED: That this Convention encourage and support the purchase
of Defense securities as a patriotic duty and as a means of
protecting the future of the wage earners and their families
in any post-emergency readjustment, and be it further
301VZD: That the principle of payroll allotments for the purpose
of purchasing Defense securities is hereby endorsed and encour-
aged, with the strict reservation that such payroll allotments
shall be voluntery and as sanctioned by action of the local
unions.
In presenting this resolution to the 1,000 dolegates to the Convention,
Cordon Carpenter, chairman of the Resolutions Committee, made a strong plea
for itu adoption, as did President R. J. Thomas and Secretary George Addes,
spotting from the platform.
Many delegates vitao crose to spenk in behalf of the resolution stated
that their local unions had clrody endorsed Defense Davings and had purchas-
ed substantial Blocks of Series / or G bonds.
Investment of Union fundo in Defense Bonds to the legal limit was pludged
by Secretary Addes, on behalf of the Union's executive board.
Before the convention adjourned, Secretary Morgenthau wired this message
to President R. J. Thomas:
"Your resolution proves again that American labor understands the
urgent needa of national defense end can be counted on to support
the defense effort to the limit.
"Everything that American Inbor has wor: through years of struggle
is nt stake in the present world crisis. The rights of collective
burgaining and the continual betterment of our standard of living
can only be assured in C free society.
"Your resolution demonstrates that you are resolved to keep our
free institutions safe and strong. I congratulate you for the
pledge you have made and wish you would convey to all your members
my very good wishes."
B
Regraded Unclassified
42
DEFENSE SAVINGS ON THE AIR
Leading Programs for the Coming Week
Tuesday, August 26
FOR AMERICA WE SING
7:30-8:00 P.M. (EST)
NBC Blue Network
usier) rogram featuring Dr. Frank Black's 44-piece NBC symphony orchestra
conducted by Victor Arden and the MBC chorus,
GUEST STAR: John Charles Thomas,
* # * *
'ednesday, August 27
MILLIONS FOR DEFENSE
8:00-9:00 P. M. (EST)
(The Treasury Hour)
CBS Network
GUEST STARS: Eddie Cantor, David Rubinoff, James Melton, Priscilla Lane, with
Al Goodman and his band, Barry Hood and Ray Block's choir.
*
#
#
*
*
Sunday, August 31
WINGS OVER JORDAN
9:30-10:00 A.M. (EST)
CBS Network
guest SPEAKER: William Pickens, National Megro leader and member of the
Defense Savings Staff.
*
*
#
+
*
*
*
"KEEP YOUR LIGHTS ALWAYS BURNING, AMERICA!"
Theme song of Boston's own Defense Savings radio program "Defense Vari-
otios" is "Keep Your Lights Always Burning, America|" written by Ed Cronin,
Pat La Selva and A.]. Starita. Messrs. Cronin and La Selva are members of the
Internal Revenue Service in Loston and produce and direct the radio show
which is heard every Sunday evening over station i/MEX. Here are some lines
from the chorus of their song:
"Buy your Stamps and Bonds to aid defense,
Back our Prosident - It's common sense!
"And speed up! Americal
Ktep the torch of freedom burning in the world!"
Copies of the words and music of this song have been printed by the
authors and they have indicated they would be glad to make them available to
Defense Savings Committees in other parts of the country.
* # * * *
Mary officers of savings-building and loan associations are making
radio talko on Defense Sevings. Deputy Governor William F. Penniman has
sent specially prepared speech materials to members of the Federal Home Loan
Bank System.
= review OFFICE
- 9 -
Regraded Unclassified
43
AMERICANS ALL
Organizational Investments Demonstrate Patriotism
SCOTTISH CLANS-
Purchase of $40,000 worth of U. S. Defense Savings Bonda by the Royal Clan,
Order of Scottish Clans, with headquarters in Boston, and the adoption of a
resolution urging all Scottish Clans to follow this example and thus help "in
strengthening our defenses" has recently been reported in the organization's
official journal.
SONS OF POLAND--
Association of the Sons of Poland in Jersey City, N. J., has invested
$25,000 in Series G Bonds and will invest $25,000 more during the month of
August,
Polish National Alliance, Chicago, Illinois, has invested
$50,000 in Defense Savings Bonds.
Polish Women's Alliance of America,
Chicago, Illinois, has invested $50,000 and will invest a like amount early in
January, 1942.
Polish Union of the United States of North America,
Wilkes-Barre, Pa., chapter bought Defense Bonds to the limit on May 5, 1941,
FRENCH-CANADIANS-
L'Union Saint-Jean-Baptiste D'Amerique in Woonsocket, Rhode Island, pur-
chased Series C Bonds to the limit.
SONS OF ITALY-
Loggia Italia Progressive, Sons of Italy in Waterbury, Connecticut, invest-
od in a $100 Defense Bond, Venerable Louis Lerz announced at & recent meeting
of the organization in Liberty Hall.
Italo American National Union,
Chicago, Illinois, has invested $20,000 in Series G Bonds.
COLORADO YUGOSLAVS-
Members of the Western Slavonic Association have endorsed the Defense
Savings Program by authorizing the purchase of $5,000 worth of Defense Bonds.
Anthony Jersin, secretary of the Association, with headquarters in Denver, was
quoted as saying that the money was taken from the Association treasury "in
the hope that it will help the government of the United States lick Hitler,"
LITHUANIANS-
Lithuanian R. C. Alliance of America, Wilkes-Barre, Pa., has Invested
$50,000 in Series G Bonds for this calendar year.
SLOVENES-
The Grand Carniolian Slovenian Catholic Union of Joliet, Illinois, has
invested $50,000 in Series G Bonds.
SLOVAKIANS-
The First Catholic Slovak Ladies Union has purchased $50,000 worth of
Defense Bonds and have requested 50,000 pamphlets on Defense Savings for
distribution to its members.
HUNGARIANS-
The First Hungarian Luthern Church of Pittsburgh, Pa., purchased a $100
Defense Savings Bond,
- 10 - -
Regraded Unclassified
44
DEFENSE SAVINGS STAMPS
Many Ways to Encourage Regular Purchase
SPECIALLY STAFFED BOOTHS are proving their value in many parts of the
country, not only as outlets for Defense Savings Stamps but also as informa-
lion centers on all phases of the Defense Savings Program. "Treasury Houses"
(in Washington, New York, Boston, and other cities) and stamp booths manned
by volunteers in large department stores have both proved highly effective.
In Jackson, Miss., the stamp booth in the R. E. Kennington department
store, as well as selling a large volume of stamps, helps sell Bonds, as this
story illustrates:
A gentleman approached the booth one day and asked for $75 in
Defense Savings Stamps. When the young lady at the desk recovered
from her shock, the sale was completed. Then another gentleman,
attracted to the booth by the excitement, announced that he wanted
to buy $10,000 worth of Defense Savings Bonds-$5,000 for himself
and $5,000 for his son! Amid much excitement, the young ladies
ascorted the gentleman to the bank.
TIPS, PREMIUMS, AND PRIZES in Defense Savings Stamps are telling many
progle about the program and enrolling tham 08 regular Defense Savers. A few
recont reports:-
In Lynn, Mass., Angus R. Gillis has established some sort of record by
personally starting 350 people on the road towards Bond ownership.
Gillis passes out bond albums as tips. He dropped one book in the
collection box of the church to which he belongs and now on each
successive Sabbath Adds another stamp neatly sealed in a cello-
phane envelope.
In Bakersfield, Calif., Postmaster Jerry Shields reports salesman
buying Defense Savings Stamps for use as tips.
In Atlanta, Ga., Stamps are prizes on the "I Am An American" program
sponsored by Grean's and heard over radio station WGST.
In Rock Hill, S. C., the annual election and picnic of the Junior Cham-
ber of Commerce was enlivened by B. quiz contost with Dofense Stumps
for the winners.
In Florida, quiz programs conducted by Florida State Theatres, Inc.,
throughout Florida are using Defense Savings Stamps as prizes. In
addition, the Rotary, Kiwanis, Civitan, Exchange, or other service
club which provides the contestants for the quiz contest receives
$10 in Defense St.mps for its favorite wolfare project.
In Tulsa, Okla,, at D. X. filling station, Goorge Reynolds, manager, gives
3 ten cent stamp with every dollar's worth of car servicing.
In "llmington, Del., the Dr. Pepper Bottling Company gives $ ten cent.
stamp for 12 of ita bottle caps.
- 11 -
Regraded Unclassified
45
PENNIES SAVED
FIRST BIRTHDAY-FIRST STAMPS
MG
Little Beverly Paulsen of Portland, Oreg.,
They think the country is worth saving-George William
brings her pennies to the First National
and Robert Wesley Leake, of Greensboro, N. C., who got a
Bank to buy Defense Savings Stamps from
break themselves, give their country B. break by buying
À Emmons of the bank staff.
Defense Savings Stamps. The birthday celebrants are the
twin sons of Mr. and Mrs. E. W. Leake, who adopted them
6 months ago. Taken from B children's home just at the
cooing age, the twins were given A good home and have
VOLUNTEERS STAFF STAMP BOOTH
matured to be these happy, healthy youngsters.
BONDS FEATURED IN WINDOW DISPLAY
FORDEFENSE
BUY
us SAVINGS
RONOS BN2
STAMPS
A
Pistured above is the Defense Savings Stamp
benib in the R. E. Kennington department
Store in Jackson, Miss., which is staffed by
$1,500 worth of Defense Savings Bonds were used by the
the women volunteers affiliated with the
M.L. Parker Co., of Davenport, Iowa, in the window display
Women's Committee of the Defense Savings
pictured above which attracted wide attention and com-
Committee for Jackson and Hinds County:
ment. The ticker tape in the foreground repeats the mes-
Mr. John Walsh, chairman.
sage: "They will be worth more later."
,
GOVERNMENT
PRINTING
EFFACE
AM971
Regraded Unclassified
46
STATE EMPLOYEES ORGANIZE FOR DEFENSE SAVINGS
Organization of a committee of Connecticut state government employees
to map out plans for enlisting the 13,000 state employees as regular De-
fense Savers was recently announced, Robert J. Smith of the State Welfare
Commission is the chairman of this special committee, Other members are
Hubert W. Stone of the Department of Education, Tax Commissioner Charles J.
McLaughlin, and Police Commissioner Edward J. Hickey.
PERIODIC BANK DRAFTS TO PURCHASE DEFENSE SAVINGS BONDS
The 100,000 depositors of the Washington Mutual Savings Bank in Seattle
have been notified that they can invest in Defense Bonds regularly by simply
authorizing the bank to draw on their accounts and issue Defense Bonds. Cards
to be signed by depositors and returned to the bank were enclosed. (Some of
the other banks which have made it possible for their depositors to invest in
Defense Bonds in this convenient way are listed in NEWS LETTER, July 19.)
ADVERTISING CLUB DEVELOPS THREE-POINT PROGRAM
The ADVERTISING CLUB in Spokane, Washington, is doing three things to
boost Defense Savings:
1. Educating sales people in Spokane stores, in order that they can
do more to encourage the purchase of Defense Savings Stamps.
2. Sponsoring a series of five-minute radio talks over local stations.
(Three of the Club's programs are on the air each week at the
present time.)
3. Sponsoring an essay contest on Defense Savings in cooperation with
local newspapers (1st prize will be a $100 Defense Bond).
THE 15 LARGEST DOWNTOWN STORES in Spokano featured window displays pro-
moting Defense Savings during the week of July 30-August 6.
*
#
+:
"Where is the man who takes money for the government?"
asked Maliosa Dean, clderly colored widow and mothor of
eight children, when she called at a bank in Tyler,
Texas, recently.
"I want to give $100 to Vr. Roosevelt and the govern-
ment to help them win the war." Upon the suggestion of
the cashier, she agreed to accept a $100 Defense Savings
Bond, having to make it official by her mark, as ahe
neither reads nor writes. She said that $100 was all
she could afford "just now" and started back to her
children and her farm, 12 milos from Tylor.
-7rom The Houston (Texas) Post.
- 13 -
Regraded Unclassified
47
NO CHAIN LETTERS NEEDED
The Post Office Department, through the Office of the Solicitor, recently
sent the following notice to all postmesters with reference to chain letter:
schemes:
"The mails in all parts of the country are eing flooded at the present
time with letters relating to so-celled endless chain schemes soliciting de-
fense savings stamps.
"Patrons of the various post offices depositing in the meils matter re-
leting to schemes of this nature should be warned that the sending of such
matter through the mails is a violation of the postal freud and lottery stat-
utes. Notices are served upon persons participating in such schemes whose
names come to the attention of the Post Office Department requiring them to
show cause why freud orders should not be issued egainst them. Such orders
forbid the delivery of any meil to the persons named therein.
"It is suggested that this notice be called to the attention of local
nowspapers so that it may be brought to the attontion of the public."
CIGARETTE PACKAGES NOW ADVERTISE DEFENSE BONDS
Domino Cigerettes--product of Larus &
Bro. Co., Inc.--carry the message:
BUY U. S.
DEFENSE BONDS
BUYU,S.
DEFENSE BONDS
$18.75 invested now brings you $25.00 in
ten years.
Pere's your chance to do your part for
the U. S. A.
Train your children to save with Defense
Sevings Stamps.
On sale at all U. S. Post Offices --
and at banks.
ALL STATIONERY of the insurance companies which are members of the
"Loyelty Group" now carries a broad band of red, white end blue on which ap-
pear the words "Buy Defense Sevings Bonds and Stamps."
A WINDSHIELD STICKER called "Certificate of Participation in the National
Defense Program" is included in the special passbook issued by the Arl ington
Five Cente Sevings Bank of Arlington, Mass. 15 connection with its "Defense
Bond Participation Plan."
- 14 -
Regraded Unclassified
48
THE CHALLENGE TO AMERICAN EXECUTIVE LEADERSHIP
"The Bill Must Be Paid"
"Start Saving Now"
Mutual Trust and Sacrifice"
"Learning To Do Without"
"What Price Security?"
THESE ARE THE CAPTIONS of the first five advertisements in a series of
13, now appearing in newspapers throughout the Southeast. With these adver-
tisements, the Citizens & Southern National Bank of Atlanta endeavors to
meet what it calls a "challenge to American executive leadership."
"The sooner we #11 face stern realities," the first advertisement
in this serios begins, "the sooner will we begin shaping our liv-
Inc and our finances to weet the inevitable cost. Too many people
live only in the present, leaving the future to take care of
itcelf. To do so in the present situation would be a trogic error.
"Begin your saving now, Bogin the best way possible - by buying
Dofense Bonds, which will hold defray the cost of building and
maintaining our army and navy and our armanent program. Adjust
your living gradually to meet the inevitable taxes. War always
moins sacrifice."
"MININNEAPOLIS ROLLS UP ITS SLFEVES!"
This line keynotes the advertisement of the Farmers & Mechanics Savings
BANK of Minnespolis, which pictures workers in Minneapolis defense plants,
<rry evintors, and selective service nen in training, and then makes the
points:
"You, too, can pitch in on national defense by saving some of your
income for U. S. Defense Bonds"
"To help the Government p.y for gune and planes, many Minneapolis
citizens are buying U. S. Defense Bonds"
"Employees! Ask your company to got the facts about our special pay-
roll deduction plan to help you buy U. S. Defense Bonds."
BANKS IN MARTFORD COOPERATE
Thirteen leading banks of Hartford, Conn., recently advertised:
"ENLIST Д THE SERVICE OF AMERICA! Buy Defense Bonds
regularly. DO SOMETHING FOR AMERICA..
The banks stated that they had all established allotment plans for
their employees end arged adoption of such plans by all business organiza-
tions,
- 15 -
Regraded Unclassified
49
EDITORIAL COMMENT:
"Defense Savings Bonds that are on sele at every post office and bank,
Have you bought any of them yet?
"There are e lot of reasons why you ought to invest some of your weekly
earnings in these bonds. One, of course, is simply to help finance our re-
armament effort 88 B. patriotic duty. Another 16 that there's no better way
to lay up a nice little safe nest egg for whatever hard times may follow.
"One good reason which might not occur to most people is that every
citizen who buys Defense Stamps or Bonds is doing his bit to stop inflation."
Chicago Times.
"Those who P.O without luxuries to buy Defense Bonds can reflect truly
that it is cheaper to buy bonds then to bear those that foreign aggressors
night like to impose here."
Dallas News
"United States bonds ere the safest investment in the world. If those
-ith moderate incomes buy them, they will not only be making 3. wise move from
the standpoint of their own interest, but will be helping to steady the whole
sconomy of the nation. Insofer 88 the buyors of defense bonds do without some-
thing to make this investment, they contribute to stabilizing prices and help
to direct the nation's r. sources to th great task of proserving the ideels of
Prodom."
Philadelphic Bulletin
"It ie inspiring to note the response of Seattle to the United States De-
Tense Bond und Stamp Campaign. Labor unions are investing their surplus funds
in larger bonds sna BTC promoting plans under which members will save regular-
17 under the psyroll deduction mothod. Banks
stores
It is a type
of compaign from which everyone can orin
In Seattle
the bond and
stamp compaign has E- en lebor, industrial management, banks, stores and thou-
sands of individuals joining their efforts for the common good."
Sesttle Post-Intelligencer
"Defense Sevings Bond = that are being sold at your post office or bank
offer en investment program suitsble for people of 911 income groups. By
buying defense sevings stamps, or one of the three types of savings bonds,
ench citizen of the country can do his bit in the biggest effort this nation
ever made for the notional security."
Grest Falls Tribune
16
Regraded Unclassified
MUSEUM OF MODERN ART'S PRIZE-WINNING POSTERS
50
SHARE SAVINGS AMERICANDS
USDEFENSE
BUY
SHARE IN AMERICA
UNITED STATES DEFENSE
SAVINGS BONDS -STAMPS
By John C. Atherton, Ridgefield, Conn.
By Joseph Binder, New York, N.Y.
$500 first prize winner.
$250 second prize winner
AMERICA
States WA 0341.
- w
S
it
UNITED STA
BUY A SHARE IN
AMERICA
DEFENS
US
SAVINGS BONDS
SAWAR
&STAMPS
BONDS &
By Hugh Donnell, West Reading, Conn.
By Clara Fargo Thomas, New York, N.Y.
$50 prize winner.
$50 prize winner.
COUNTERY MUREUM M MODERN ARE
M OFFICE -
Regraded Unclassified
51
DEFENSE SAVINGS STAFF
ADVANCE SCHEDULE OF RADIO PROGRAMS
SATURDAY - AUGUST 23, 1941,
Time:
6:30 - 7:00 P. M.
Program:
Wayne King
Station:
WJSV and CBS Network
Time:
7:30 - 8:00 P. M.
Program:
Truth or Consequences
Station:
WRC and MCB Red Network
Time:
8:00 - 9:00 P. M.
Program:
National Barn Dence
Station:
W.LC and NBC Red Network
Time:
11:15 P. M. - 12:00 M.
Program:
Music You Want, When You Want It.
Station:
WALL - Local
THESE PROGRAMS PROMOTE THE SALE OF DEFENSE BONDS AND STAMPS.
Regraded Unclassified
52
1743-A
MEHORAN DUM
August 23, 1941
To:
PRICE ADMINISTRATION COLMITTEE
From:
R. K. Thompson, Secretary
Attached are the following:
y
1. Civilian allocation program for formaldehyde
2. Admendments to price schedule No. 4
3. Civilian allooation program for stool used in
automobile license tugs
4. Amondment to price schodule No. 11
5, Price schodule No. 15
6. Price schodule No. 16
/
7. Prico schedule No. 17
V
8. Civilian allocation program for motor fuel in
the Atlentic Coast eron
9, Civilian allocation program for rayon yam
10. Price schedulo No. 18
11. Price schedule No. 19
12. Amendment to price schedule No. 2
13. Price schedule No. 20
14. Amondment to civilian allocation program for
rayon yarn V
15. Civilian allocation program for chlorinated
hydrocarbon refrigerants
16. Price schedule No. 21
Regraded Unclassified
53
1743->>
CONFIDENTIAL
SUBMARY OF STENOGRAPHIC TRANSCRIPT OF MEETING OF
PRICE ADMINISTRATION COMMITTEE
August 19, 1941
11:15 a.m.
Present: Mr. Henderson, Chairman; Miss Ellistt, Mossrs. Wickard,
March, Ayres, Nelson, Pike, O'Connell, Whitcomb, England,
Bean, Harris, Keir, Hamm, Ginsburg, Galbraith, Hoover,
Plummer, Thompson
1. Price legislation
Mr. Henderson reported on the hearings thus far held on the
price control bill and indicated that there seemed to be a general
feeling when the Committee recessed that B. great deal of misunderstanding
and distrust had been cleared up and that the members of the Committee
are proceeding under the assumption that a bill of some kind will be
passed. Though it was felt the seriousness of the emergency would have
warranted the exerting of pressure for a continuance of the hearings while
Congress is in recess, the ranking Republican and several other members
expressed the belief that OPACS was getting along fairly well with the
current ceilings since they were receiving a high degree of acceptability
and that probably no great harm would be done in having a short interval.
Mr. Henderson said that 1f members of the Price Administration
Committee desire the unrevised Committee prints of the hearings to date,
his office would arrange to lend sets. Arrangements are being made to
abstract the testimony on various subjects and make such abstracts avail-
able to members of the Price Administration Committee.
A general discussion followed of the agricultural provision in
the bill and of the pressure from various groups for inclusion of B. labor
control provision. Secretary Wickard reported that both the Farm Burcau
and the Grange are insistent upon & labor control provision but that the
Cooporative Council and the Farmers' Union have not indicated that they
would insist upon its inclusion.
2. Priorities and civilian allocation
hir. Henderson referred to the discussions which Judge Rosenman
is having concorning the resolving of the difficulty between OPM and OPACS,
particularly on the matter of civilian allocations. Three or four pro-
posals will be made to the President but pretty generally they call for
dividing OPACS into two parts, Price Administration and Civilian Supply,
and the placing of Civilian Supply under an enlarged OPM which would in-
elitric all the groups of claiments for production: the military, the Lend-
Lease, the Economic Warfare, and the civilian.
Regraded Unclassified
54
1743-2
2
There followed a general discussion of the problems involved in
the squitable allocation of available supplies during which Mr. Nelson
pointed to the necessity of having a single body to determine how division
is to be made among military, civilian and indirect defense needs. He also
expressed his bolief that there should be a reversal of the policy which
heretofore has allocated to defense production all it needs of a given
matorial, even though thore be no residue left for civilian use. He cited
coppor as an example where the whole supply is going to defense but whero
the civilian economy cannot be run without it. For this reason Mr. Nelson
believes that a determination should be made of the minimum necessary of
various materials to keep the civilian economy going with defense and in-
direct defense sharing the balance.
Mr. Henderson pointed out that the whole shift in emphasis on
priorities and the administration of civilian allocation is duo to the
lack of far-sightcdness in expanding capacity and production soveral years
ago 80 that adoquate raw materials and supplies would now be available.
3. Recent price schedules
Mr. Galbraith reported on some of the important price schedules
recently issued. He pointed out that about six weeks ago the Price Divi-
sions's organization reached a basis of reasonably general coverage of
the whole price structure and that since then more careful research and
more complete discussions with industry groups have preceded the issuance
of price schedules.
Mr. Galbraith cited the raw sugar schedule as probably the most
important one in terms of the cost of living and as representing the
closest collaboration between the Department of Agriculture and OPACS.
He also cited the recent schedules on burlap, Southern Pine, tin and copper.
4. Contemplated price schedules
Mr. Galbraith reported that schedules are in contemplation for
Douglas fir, anthracite coal, and Pennsylvania grade crudes. The coiling
For the anthrscite coal industry will probably be set at the present
lovel of prices sinco preliminary figures indicate that prices have 1).
ready been increased sufficiently to cover advanced costs in the industry.
5. Price and allocation procedures
Gibrith asked the mombers of the committee for sug-
guations
commendations concerning price and allocation procedures.
He pointed ou: that SQ long as we are unwilling to use the ration card
the job of keoping prices in line will be very difficult since there
is S free area where there is n. shortage of supply end no practical
possibility of price control.
Regraded Unclassified
55
17W-A
3
6. Requisition bill
Secretary Wickard raised a question as to the status of the
requisition bill and Mr. Ginsburg replied that the House rejected the
conference report and the bill was returned to conference. Secretary
Mickard raised the question whether agricultural products could be
taken under the bill and noted that during the Rouse debate objection
was raised because the bill did permit the requisitioning of such
products, and then the bill was carried.
7. Priorities on cheese and other food products
Secretary Wickard raised a question concerning the possibility
of procuring cheese and other food products via the priority procedure
under the Lend-Lease program or for defense. It was the consensus that
such procedure would be feasible but it was agreed to have representatives
of OPM, OPACS and the Department of Agriculture survey the whole field.
8. Cotton-wheat bill
Mr. Henderson reported that he had sent a. note to the President
expressing a hope that he would veto the bill which would prevent the
sale of cotton and wheat stocks hold by the Government. Mr. O'Connell
added that the Treasury Department has taken the same stand.
9. Automobile curtailment
Mr. Nelson reported that several friends of his who are auto-
mobile dealers in Chicago have advised him that the automobile companies
are belling the dealers to go ahead and sell cars as fast as they can
since there will be no curtailment. Mr. Henderson replied that his
guess is there will be curtailment and that he and Messrs. Knudsen and
Hillman are meeting with the industry on August 21. Secretary Wickard
reforred to newspaper stories that there had been a 21 percent increase
in price but Mr. Henderson called attention to the fact that the announce-
ment was of an 11 percent increase and added that the negotiations of the
Price Division could undoubtedly claim credit for that.
The committee adjourned at 12:40 p.m. to meet on Tuesday,
August 26, 1941 at 11:00 a.m.
Regraded Unclassified
56
OFFICE FOR EMERGENCY MANAGEMENT
Office of Price Administration and Civilian Supply
For À. M. Release
August 5, 1941
PM 866
Sharply restricted civilian use of synthetic resins and plastice made directly
or indirectly from formaldehyde is provided for in a civilian allocation program
promulgated today by the Office of Price Administration and Civilien Supply. The
program will go into effect on August 23, 1941.
Simultaneously it was disclosed that a study of the price situation in the
formaldehyde branch of the chemical industry is under way by OPACS in view of num-
erous reports that the less scrupulous distributors are exacting excessive prices.
A shortage of plastics, synthetic resins and the components of such resins has
developed within recent weeks because of the great demands made by defense industries
and the constantly increasing requirements of civilian industries for plastics to
use in substitution for other materials no longer available.
A large percentage of plastice and synthetic resins contains formaldehyde -
also used extensively in other fields.
Present prospects are that supplies of formaldehyde will be sufficient for re-
quirements of the defense program and essential civilian needs, but that its use in
the production of plastics going into such non-essential items as advertising pre-
niums, "juke boxes", novelties, toys, amateur cameras, etc., must be curtailed.
With this objective, the allocation program segregates into three classifica-
tions the non-defense uses of molding compounds, plastics, adhesives and miscellan-
eous binders, made from synthetic resins.
Senior preference for supplies of resins made directly or indirectly from
formaldehyde for civillan use is directed for FL wide range of industries and activi-
ties essential to the public welfare in classification "A". Included in this cate-
gory are public and industrial light, heat, power and water equipment; transporta-
tion equipment, including assessories to commercial airplanes; trucks, buses, trac-
tors, fire fighting implements and farm equipment; technical instruments; material
and equipment for scientific research; chemical protective uses; applications in the
communications industry: oil well equipment; industrial equipment; hose, other than
protective costings; mining; industrial, food and medicinal containers and protec-
tive coverings for them; closures, except decorative: marine applications, and
Tinding wheels and other abrasive products.
Secondary preference 18 assigned to such less essential civilian uses as pas-
songer automobiles, cases for radio receivers, furniture, commercial cemeras, tex-
tile finishing and household appliances.
Regraded Unclassified
57
- 2 -
PM 866
No proference whatsoever is provided for supplies of synthetic resins made d1-
rectly or indirectly from formaldenyde in classification "C". Into this bracket are
placed items considered non-essential to the civilian welfare during the present em-
ergency. A provision is contained in the program to shift into classification "B"
from classification "0" certain products using only & small percentage of formalde-
hyde and in which formaldehyde resins are essential.
The preferencesaccorded in classifications "A" and "B" are refined further in
A separate section of the program. This section stipulates that preference shall be
granted only to those uses of resins which are essential to the functioning of the
classified part or material and that preference shall not be granted to such uses if
satisfectory substitutes are available.
Special limited exceptions may be sought in cases where classification in the
lowest bracket works any undue or unreasonable hardship or causes unemployment dis-
proportionate to the conservation of raw materials.
Formoldehyde, parn-formaldehyde and hexemethylinetetramine, the latter & med-
icinal derivative of formaldehyde, for all non-plastic uses will receive the same
preference ns in assigned for uses under classification "A".
The allocation program vill be administered and enforced by the Office of Pro-
duction Management.
Text of the program is attached,
Regraded Unclassified
PM 866
58
TITLE 32 - NATIONAL DEFENSE
CHAPTER XI OFFICE OF PRICE ADMINISTRATION AND
CIVILIAN SUPPLY
Part 1335 - Chemicals
For Formaldehyde, Para-Formaldshyde, Hexamethylinetetre-
mine, and Synthetic Resins Produced Therefrom Civilian
Allocation Program
The increasing requirements of the defense effort and the use of plastice
AB substitutes for other materials have combined to croate 8 shortage of plas-
ties, synthetic resins, and the components of such resins. The diminished amount
of such materials, AB well 88 the essential functions such materials serve,
makes it necessary that available supplies be utilized in such B. way as best to
promote the national well-being.
Accordingly, pursuant to and under the authority vested in me by Executive
Order No. 8734, particularly Section 2(a) thereof, the following program ie an-
nounced:
1335.21 Allocation of Materials for Plastics, Non-defense uses of mold-
ing compounds, plastics, adhesives, and miscellaneous binders, made from syn-
thetic resins shall be divided into three classifications, as get forth in
1335.23 of this program. To the extent that supplies of resins made directly or
indirectly from formaldehyde are available for allocation among competing civil-
ian demands, supplies for civilian uses enumerated under Classification A shall
be given primary preference, and supplies for civilian used enumerated under
Classification B shall be given secondary preference. Supplies of such resine
for civilian uses enumerated under Classification C shall be given no preference
whatever, and no person shall produce, sell, or use resine made directly or in-
directly from formaldehyde for the making of molding compounds, plastics, ad-
besives, and miscellaneous binders for such Classification C uses, nor shall any
person produce, sell, or use formaldehyde, para-formaldehyde, or hexamethylinet-
etramine for the making of resins from which molding compounds, plastics, ad-
besives, and miscellaneous binders for such Classification C uses are to be made.
Provided however, that products that would otherwise be classified under Classi-
fication C, which are composed to the extent of 90% or over, by value, of raw
materials other than formaldehyde, para-formaldehyde, or hezamethylinetetramino
resins, and in which the formaldehyde resins are essential, shall be classified
under Classification B.
1335.21 to 1335.23, inclusive, issued
purquant to the authority contained in
Regraded Unclassified
59
PM 866
- 2 -
Executive Order No. 8734.
1335.22 Nature of Uses Granted Preferences. In Classifications A and B,
preference shall be granted only to those uses of resins which are essential to
the functioning of the classified part or material, and preference shall not be
granted to such uses if satisfactory substitutes are available. The quantities
allocated for the production of articles in Classification B may be limited In
amount, in which event such limited amount shall be equitably distributed among
producers. In the event that classification of any article under Classification
e works any undue or unreasonable hardhsip or causes unemployment disproportion-
ate to the conservation of raw materials, special exceptions for such lengths of
time as may be deemed necessary may be made by the Director of Priorities of the
Office of Production Management, with the concurrence of the Director of Civilian
Allocation of the Office of Price Administration and Civilian Supply.*
1335.23 Classification by Uses. Subject to the provisions of 1335.22,
classification by uses shall be as follows:
4. Public and industrial heat, light, power and water equipment
Transportation equipment - including accessories to commercial
airplanes
Trucks, buses, tractors, firefighting and farm implements
Technical instruments
Naterial and equipment for scientific research
Chemical protective uses
Applications in the communications industry (telephone and telegraph)
Industrial equipment
Oil well equipment
Housing, other then protective coatings
Mining
Industrial, food, and medicinal containers, and protective
coverings therefor
Closures, except decorative
Marine applications
Grinding wheels and other abrasive products.
B. Tables and kitchenware, save as expressly classified under C
Protective coatings not otherwise specified
Radios
Household appliances
Textile finishing
Domestic wiring devices
Passenger automobiles
Buttons
Brushes
Furniture
Pipe stems
Commercial cameras and other commercial photographic equipment
Articles fashioned from standard cests by hand operations
Regraded Unclassified
60
PM 866
- 3 -
0. Amateur cameras and other photographic equipment
Hardware
Smokers' articles, except pipe stems
Decorative articles, vases, bric-a-brac, not otherwise specified
Tumblers, cups, and plates
Premium and advertising items
Novelties, not otherwise specified
Buckles and findings, not otherwise specified
Displays
Escutcheon plates
Picture frames
Toya
Games
Phonographe
Minor utilitarian items easily substitutable - bookends,
stationers' articles, mechanical pencils, and the like
Articles or uses excluded from Classification A and
Classification B by 1325.3*
1335.24 Allocation of Formeldehyde for Non-Plastic Uses. Formaldehyde,
para-formeldehyde, and hexamethylinetetramine for all non-plastic uses shall re-
ceive the same preference as such materials receive for uses classified under
Classification A of Section 1335.23.*
1335.25 Avoidance of Excessive Inventories. Preferences granted under
this program shall not be used to accumulate excessive inventories."
1335.26 Definitions. For the purpose of this order, "person" means and in-
cludes any individual, partnership, association, corporation, or other form of
enterprise.
1335.27 Enforcement. The foregoing program is to be administered and en-
forced by the Office of Production Management.*
1335.28 Effective Date. This order shall take effect on the 23rd day of
August, 1941.
Issued this 31st day of July, 1941
Leon Benderson
Administrator
Certified to be a true copy of the original.
John 3. Hamm
Deputy Administrator
Regraded Unclassified
OFFICE FOR EMERGENCY MANAGEMENT
61
Office of Price Administration and Civilian Supply
for release AM Friday
August 8, 1941
PM 887
Amendments to Price Schedule No. 4, fizing ceiling prices on iron and steel
BcΓap, were announced today by the Office of Price Administration and Civilian
Supply.
The changes establish for Gulf ports the same export ceiling price as that
previously arrived at for the Eastern seaboard; add more basing points in Appendix
A, and modify the existing shipping point price for dealers' yards located within
basing points.
Summarized, the three important amendments follow:
(1) The $16 per ton maximum export price for No. 1 heavy melting scrap and
the $16 maximum export price for No, 1 railroad grade heavy melting scrap (with
customary differentials for other grades in each classification), f.a.s. at all
ports on the Gulf of Mexico are eliminated. Instead, the maximum export price
f.a.s. at all G-Ited States ports for heavy melting scrap (other than railroad)
16 made the domestic shioping point price, plus the lowest necessary charge for
transporting scrap from the shipping point to the point of export. In the case of
railroad grade heavy melting scray, the ceiling price, f.a.c. et all United States
ports, is made the maximum price for B. consumer located on the line of the origin-
sting railroad, plus actual transportation charges from the line to the point of
export. No such transportation charges, however, are allowed to be added in com-
puting the ceiling export price for scrap originating from a railroad not operating
st EL basing point. Actual costs incident to shipment for excort and a marimum
broker's commission of 50 cents per ton may be added if shown asa separate charge
on the invoice.
(3) Conshohocken, Pa.: Minneapolis and St, Paul, Minn.; Atlanta, Ga,:
Alabama City, Ala.: and Portland, Ore., are added as basing points. Minnequa, Colo,
in climinated ao a basing point for scrap of railroad origin,
Sasing point prices at Pittsburgh, Pa.: Ashland, Ky.: Toledo, 0.; Duluth,
Minn.: Worcester, Mass,: Bridgeport, Conn.; Fhillipsdale, R.I.: Birmingham, Ala.;
Minnequa, Colo.; Los Angeles, San Francisco and Seattle are changed in the amended
schedule.
(3) Paragraph II of the schedule, establishing maximum prices at a shipping
point, has been divided into two sections: Shipping point prices (a) at shipping
pointe located within basing points and (b) at chipping points located outside
basing points,
Regraded Unclassified
62
-3-
PM 887
In the case of shipping points within basing points, the price is the basing
point price, minus actual transportation costs from the shipping point to the near-
ept consumer's plant within the basing point. For shipping points located outside
basing points, the computation of the shipping point price remains unchanged,
except that such price at all shipping points in New York City, Brooklyn, and New
Jersey which, by reason of barge rates, are nearest in terms of transportation
charges to the Buffalo, N.Y., basing point, shall hereafter be computed from the
Bethlehen, Pa., basing point.
Text of the schedule revised to incorporate the la test amendments is attached,
Regraded Unclassified
63
TITLE 32-NATIONAL DEFENSE
PM 88?
CHAPTER XI - OFFICE OF PRICE ADMINISTRATION AND
CIVILIAN SUPPLY
Part 1304 - Iron and Steel Scrap
Price Schedule No. 4 amended
WHEREAS, the Office of Price Administration and Civilian Supply 1e charged
with functions related to the maintenance of price stability and the prevention
of undue price rises and price dislocations; and
WHEREAS, the increased demand for iron and steel scrap has exerted infle-
tionary pressure upon the prices thereof, and has already caused, end threatens
still further to cause, speculative activity. and the withholding of iron and
steel scrap from the market: and
WHEREAS, prices of iron and steel scrap have risen to a degree that has
caused price instability and dislocations injurious to the national defense; and
WHEREAS, under the foregoing circumstances, the absence of any maximum price
standards has militated against and in some cases rendered it impossible for the
Government to obtain voluntary cooperation in maintaining price stability and in
preventing excessive and speculative price increases? and
WHEREAS, it appears that the establishment of maximum price standards in
necessary to facilitate cooperation with the Government and prevention of a price
policy tending to weaken the defense effort through disastrous inflation, undue
burdens upon the Government, economic dislocations, price spiraling, and prof-
iteering, and the establishment of such standards ie otherwise necessary in the
public interest and in the interest of national defense; and
WHEREAS, on the basis of information secured by independent investigation
by this Office and through cooperation of the trade, I find that the maximum price,
0.0 prescribed herein and set forth in Section 1304.16, Appendix A. Section 1304.17
Appendix B, and Section 1304.18, Appendix C, annexed hereto, constitute reasonable
limitations on prices for iron and steel scrap:
NOW, THEREFORE, IN ORDER TO FACILITATE COOPERATION VITH THE GOVERNMENT IN
MAINTAINING PRICE STABILITY AND IN PREVENTING EXCESSIVE AND SPECULATIVE PRICE IN-
CREASES INJURIOUS TO THE DEFENSE PROGRAM AND TO THE PUBLIC INTEREST AND TELFARE,
IT IS HEREBY ORDERED; that Price Schedule No. 4. be amended to read as follows:
1304.1 Maximum Prices on Sales of Iron and Steel Scrap Other than Railroad
Scrap, On and after April 3, 1941, regardless of the terms of any commitment
theretofore entered into, no person shall sell, offer to sell, deliver, ur trans-
fer at a price, iron and steel scraj other than relroad scrap to the consumer of
such scrap, at prices higher than the nices sot forth in Section
Regraded Unclassified
PM 887
64
-2-
1304.16, Appendix & annoxed hereto, and no consumer shall buy, offer to buy, or
accept delivery of, iron and ateel scrap other than railroad scrap at prices higher
than the prices set forth in Section 1304.16, Appendix 4, except AD provided in
Sections 1304.5 and 1304.6 hereof. Lower prices may, however, be charged. demanded,
paid or offered.
Sections 1304,1 to 1304.19 inclusive issued pursuant
to the authority contained in Executive Order No. 8734.
1304,2 Maximum Prices on Sales of Iron and Steel Pailroad Scrap,
On and after April 3, 1941, regardless of the terms of any commitment theretofore
entered into, no person shall sell, offer to sell, deliver, of transfer at a price,
iron and steel railroad scrap to the consumer of such ecrap, at prices higher than
the prices set forth in Section 1304.17, Appendix B annexed hereto, and no con-
sumer shall buy, offer to buy, or accept delivery of, iron and steel reilroad
scrap at prices higher than the prices established in Section 1304.17, Appendix B
annexed hereto, except as provided in Sections 1204.5 and 1304.6 heroof, Lower
prices may, however, be charged, demanded, paid or offered.*
1304,3 Maximum Prices on Sales of Iron end Steel Scrap for Export. On and
after April 3, 1941, regardless of the terms of eny commitment theretofore entered
: no person shall aell or offer to sell for export, or deliver for export, iron
AL steel scrap. to any person at prices higher than the prices set forth in Section,
1004.18, Appendix o annexed hereto and no consumer or agent or other person shall
buy or offer to buy for export, or accept delivery of for export, iron and steel
corap at higher prices than the prices set forth in Section 1304.18, Appendix 0
annexed hereto, except as provided in Sections 1304,5 and 1304.6 herenf. Lower
prices may, however, be charged, derended, paid or offered."
1304.4 Mothod of Socuring Information Governing Maximum Prices on Sales of
Iron and Steel Reilroad Scrap,
On and after April 3, 1941, a sale of any grade of iron and steel railroad
strap for which no naximum price 1a published in Section 1304.17, Appendix B shall
be made only after opportunity has been given any buyer of such scrap to learn the
=aximum price, if any, applicable to such sale by addressing AD inquiry to the
Office of Price Administration and Civilian Supply in Washington, D. C, In order
to provide such opportunity, no sale of any such grade of iron or steel railroad
strap, concerning which B maximum price is applicable hereunder, shall be made,
except 89 provided under Section 1304.5 below. until after the railroad maker there-
& or other person has filed with the Office of Price Administration and Civilian
Jupply at Washington, D. C. the information required to determino with Section
1304.17. Appendix R annoxed hereto, the maximum price thereby established for such
Regraded Unclassified
PM 887
65
grade. and until the Office of Price Administration and Civilian Supply has there-
upon released & maximum price therefor.
1304.5 Rxtension to May 10, 1941 for Uncompleted Contracts.
(a) In the event that any person has, prior to April 3, 1941, acquired
possession of, and ownership in, iron and steel scrap at A price in excess of the
maximum price established in this Price Schedule for the purpose of carrying out
e contract for the sale of such scrap entered into prior to such date, such salo
may be made and completed at the price contracted for, even though such price
is in excess of the maximum price established herein, provided that deliveries are
completed on or before May 10, 1941.
(b) Any person, who prior to April 3, 1941, entered into A. contract at prices
higher than the maximum prices established under this Price Schedule for the sale
of iron and steel scrap!
(1) originating from a. demolition operation commenced prior to April
3. 1941; or
(2) acquired prior to April 3, 1941, and accumulated at B. point of
shipment, for export or otherwise, and impossible, due to lack
of transportation facilities, to deliver to the purchaser of such
scrap,
may make and complete such sale at the prices contracted for provided that de-
liveries of such scrap are completed on or before May 10, 1941, or on B. later
date fixed by the Office of Price Administration and Civilian Supply upon appli-
cation, supported by affidavit establishing a reasonable ground for extension be-
yond May 10, 1941.
1304,6 Commissions, In the event that & consumer of iron and steol scrap
shall employ an agent or broker to purchase iron and steol scrap for its ugo,
such consumer may pay such agent or broker for such scrap a sum not exceeding
the maximum prices established under this Schedule plus a commission of not more
then 50# per groas ton. Such commission shell be payable only if (a) the agent
or broker guarantocs the quality and delivery of an agreed tonnage of the scrap:
(b) the commission is shown 8.6 & separate charge in billing: (c) the scrap is
invoiced at & price not higher than the maximum applicable herein; and (d) no
dealer or broker splits or divides the commission allowed him by 8 consumer with
the seller or sellere of the scrap, with another broker or a subbroker, or with
the consumer, A dealer who has never acted as 8 broker prior to June 18, 1941,
shall in no case be allowed & brokerage commission."
Regraded Unclassified
PM 897
66
1304.7 Shipment - Limitation on Use of Certain Kinda of Iron and Steel Scrap,
(a) The shipment of iron and steel scrap shall, insefar as practicable, be
routed through the channels customarily utilized by the maker, doaler, broker or
consumer in order to minimize the necessity for cross-hauling and to prevent dis-
location of the machinery of collection and preparation for consumption,
(b) Consumers, brokers and dealers shall, to the greatest possible extent,
refrain from the purchase, and steel mills (open hearths) from the use of the
kinds and grades of iron and steel railroad scrap not essential to their pro-
duction; i.e., rerolling rails scrap must be diverted to rerelling mills and not
cut for melting purposes.
(e) A reilroad maker of iron and steel scrap shall not sell such scrap off
the line of his railroad, irrespective of price, until he has supplied consumere
located on the line of the railroad as they have been in the past customarily
supplied with to iron and steel scrap originating on the railroad.'
1304,8 Everion. The price limitations net forth in this Schedule shall
not be evaded whether by direct or indirect methods in connection with a purchase
or sale of iron and steel scrap, or of any other materials, or by way of any
service or other charge. including transportation charges, or discount, premium
or other privilege, or by any tying agreement or trade understanding, or other-
wise.
1304,9 Record-keeping Requirements. Every dealer in, end overy maker,
smelter, processor, broker, or consumer of, and every other person purchasing or
selling iron and steel scrap shall, until such time B.S. further information 1s
doemed necessary or appropriate hereunder, keep for inspection by the Office of
Frice Administration and Civilian Supply and preserve for B. period of not loss
than one year, complete and accurate records of:
(a) All purchases and sales of iron and steel scrap, recording therein the
person from or to whom each such purchase or sale was made, the date thereof,
the price paid, or received, and the quantity in pounds and quality by grades in
irón and steel scrap, or both, involved; and
(b) As of the close of each month, the amount in pounds of iron and steel
scrap, (1) on hand and (11) on order,"
1304.10 Renorts of Consumers' Inventories and Purchases of Iron and Steel
Scrap, Every consumer of iron and steel scrap, on or before May 1, 1941, shall
file B. report with the Office of Price Administration and Civilian Supply, Wash-
ington, D. C., setting forth its total inventories of iron and steel scrap on
hand on April 1, 1941, In addition every consumer who purchases iron and steel
Regraded Unclassified
PM 867
67
scrap shall, on or before the fifteenth day of the month following the month in
which one or more purchases are made, file 8. report with the Office of its
purchases, consumption and inventory of iron and steel scrap for the month in
the manner prescribed in Section 1304.19, Appendix D hereof. Consumers of iron
and steel scrap shall submit such further reports aa the Office of Price Admini-
atration and Civilian Supply say, from time to time require.*
1304.11 Enforcement. In the event of refusal or failure to abide by the
price limitations, record requirements, and other provisions contained in this
Schedule, or in the event of any evasion or attempt to evade the price limitations
or other provisions contained in this Schedule, this Division will make every
effort to assure (a) that the Congress and the public are fully informed of any
failure to abide by the provisions of this Schedule; and (b) that the powers of
the Government are fully exerted in order to protect the public interest and the
interests of those persons who conform with this Schedule in the maintenance of
ceiling prices set forth herein. Persons who have evidence of the demand or re-
ceipt of prices above the limitations set forth, or of any ovasion or effort to
evade such requirements, or of speculation, or manipulation of prices of iron and
steel scrap, or of the hoarding or accumulating of unnecessary inventories there-
of, are urged to communicate with the Office of Price Administration and Civilian
Supply,"
1304.12 Supplemental Schedule and Reporting Requirements. In order to 1p-
sure compliance with this Schedule supplements further stating its scope and, if
necessary, requiring further reports to the Government, will be issued from time
to time when found appropriate."
1304.13 Modification of the Price Schedule, Persons complaining of hard-
chip or inequity in the operation of this Schedule may apply to the Office of
Price Administration and Civilian Supply, Washington, D. C., for approval of any
modificati on thereof or exception therefrom, and the Office of Price Administra-
tion and Civilian Supply may, upon its own initiative, and as and when it seems
appropriate, modify or enlarge this Price Schedule and the maximum prices 09-
tablished hereunder."
1304.14 Definitions, When used in this Schedule:
(a) the term "person" includes an individual, corporation, association,
partnership, or other business entity;
(b) the term "iron and steel scrap other than railroad scrap" means the
kinds and grades of imported and domestic iron and steel scrap referred to in
Section 1304.16, Appendix A;
Regraded Unclassified
68
PM 887
-6-
(e) the term "iren and steel railroad scrap" means iron and steel scrap
having a railroad origin and includes the kinds and grades of imported and
domestic iron and steel scrap referred to in, and determined under, Section
1304.17, Appendix B;
(d) the term "railroad" includes steam and electric railreads, and street,
suburban, and interurban electric railways and local trolleys;
(a) the term "iron and steel scrap" means all kinds and grades of imported
and domestic iron and steel scrap including iron and steel railroad scrap;
(f) the term "consumer" means a purchaser, for its own consumption, of
iron or steel scrap, 1.e. smelter, foundry, steel mill, etc.;*
1304.15 This Schedule shall become effective immediately, except as other-
wise specifically previded herein.*
Issued this 6th day of August, 1941.
Leon Henderson
Administrator
CERTIFIED TO BE 1 TRUE COPY OF THE ORIGINAL
John E. Hamm, Deputy Administrator
Regraded Unclassified
7
PM 687 69
1304.16 Appendix A
MAXIMUM PRICES FOR IRON AND STEEL SCRAF OTHER THAN BAILROAD SCRAP
All the prices given oelow are per gross ton.
I.
BASING POINT PRICES FROM WEICH SFLPPING POINT PRICES AND CONSUMERS' DELIVERED
PRICES RE TO JE COMPUTED.
BASING POINTS
Pittsburgh,
Pa.
Johnstown,
Pa.
Conshohocken,
Pa,
Wierton,
W. Va.
Steubenville,
Ohio
Youngstown,
Ohio
Warren,
Ohio
GRADES
No. 1 Heavy Melting Steel
20.00
20.00
18.75
20.00
20.00
20.00
20.00
No. 1 Hydraulic Compressed
Black Sheet Scrap
30.00
20.00
18,75
20.00
20.00
20.00
20.00
No. 2 Heavy Melting Steel
19.00
19,00
17.75
19.00
19.00
19,00
19,00
Dealers' No. 1 Bundles
19.00
19.00
17.75
19.00
19.00
19.00
19,00
Dealers' No. 2 Bundles
18.00
18.00
16.75
16.00
18.00
18.00
18.00
Mixed Borings and Turnings
15.25
15.25
14,00
15.25
15.25
15.25
15.25
Machine Shop Turnings
15.50
15,50
14.25
15.50
15.50
15.50
15.50
Shovelling Turnings
16.50
16.50
15.35
16.50
16.50
16.50
16.50
No. 1 Busbeling
19,50
19,50
18.25
19.50
19.50
19.50
19.50
No. 2 Busbeling
15,50
15,50
14.25
15.50
15.50
15.50
15,50
Cast Iron Borings
15.75
15.75
14.50
15.73
15.75
15.75
15.75
Uncut Structural &
Plate Scrap
19.00
19.00
17.75
19.00
19.00
19,00
19.00
No. 1 Cupola
21.00
21.00
23.00
21.00
21,00
21.00
21.00
Heavy Breakable Cast
19.50
19.50
21.50
19.50
19.50
19.50
19.50
Stove Plate
19.00
19.00
18.50
19.00
19.00
-
-
Low Phoa Billet &
Bloom Crops
25.00
25,00
23.75
25.00
25.00
25.00
25.00
Low Phos Bar Crops &
Smaller
23.00
23,00
21.75
23.00
23.00
23.00
23.00
Low Phos Punchings &
Plate Scrap'
24.75
23.00
21.75
23.00
23.00
23.00
23.00
Machinery Cast,
Cupola Size
22.00
22.00
24.00
22.00
22.00
22.00
22.00
No. 1 Mach. Cast, drop-
broken, 150 lbs. & under
22.50
22,50
24.50
22.50
22.50
22.50
22.50
Clean Auto Cast
22.50
22.50
24.50
22.50
22.50
22.50
22.50
Punchings & Plate Scrap
23.75
22,00
20.75
22.00
22.00
22.00
22.00
Punchings & Plate Scrap
22.75
21,00
19.75
21.00
21.00
21.00
21.00
Heavy Axle & Forge Turnings
21.25
19,50
18.25
19.50
19,50
19.50
19.50
Medium Heavy Electric
Furnace Turnings
19.75
18,00
16.75
18,00
18,00
18.00
18.00
Regraded Unclassified
70
e
PM 367
BASING POINTS
Sharon,
Pa
Canton,
Ohio
Chicago,
n.
Kokomo,
Ind.
Bethlehem,
Pa.
Claymont,
Del.
Coatesville,
Pa.
GRADES
No. 1 Heavy Melting Steel
20.00 20,00 18,75 18,25 18,25 18.75 18,75
No. 1 Hydraulic Compressed
Black Sheet Scrap
20.00 20.00 18,75 18,25 18,25 18,75 18,75
No. 2 Heavy Melting Steel
19,00 19,00 17.75 17.25 17.25 17,75 17.75
Dealers' No. 1 Bundles
19,00 19,00 17.75 17.25 17,25 17.75 17.75
Dealers' No. 2 Bundles
18,00 18.00 16.75 16.25 16.25 16.75 16.75
Mixed Borings and Turnings
15,25
15.25
14,00
14.25
13,50
14,00
14.00
Machine Shop Turnings
15,50 15.50 14,25 14,50 13.75 14.25 14,25
Shovelling Turnings
16,50 16.50 15.25 15.50 14.75 15.25 15.25
No. 1 Busheling
19.50 19,50 18.25 17.75 17.75 18.25 18,25
No. 2 Busheling
15.50 15.50 14,25 13.75 13.75 14,25 14.25
Cast Iron Borings
15.75 15,75 14.50 14,00 14,00 14,50 14,50
Uncut Structural &
Plate Scrap
19.00 19.00 17.75 17.25 17.25 17.75 17.75
No. 1 Cupola
21.00 21.00 20.00 0.00 22.50 23.00 23,00
Heavy Breakable Cast
19.50 19,50 18.50 18,50 21,00 21.50 21.50
Stove Plate
-
-
17.00
16.00
18.00
18,50
18,50
Low Phos Billet &
Bloom Crops
25.00
25.00
23.75
23.75
23.25
23.75
23.75
Low Phos Bar Crops &
Smaller
23.00 23.00 21.75 21.75 21.25 21,75 21.75
Low Phos Punchings &
Plate Scrap*
23.00 23.00 21.75 21.75 21.25 21.75 21.75
Machinery Cast,
Cupola Size**
22.00 22,00 21,00 21.00 23.50 24.00 24,00
No. 1 Mach, Cast, drop-
broken, 150 lbs. & under
22,50
22,50
21,50
21.50
24.00
24,50
24.50
Clean Auto Cast
22.50
22,50
21,50
21,50
24,00
24.50
24.50
Punchings & Plate Scrap***
22.00
22.00
20.75
20.75
20.25
20.75
20.75
Punchings & Plate Scrap****
21.00
21.00
19.75
19.75
19.25
19.75
19.75
Heavy Axle & Forge Turnings 19,50 19.50 18.25 18,25 17.75 18,25 18.26
Medium Heavy Electric
Furnace Turnings
18,00 18,00 16.75 16,75 16,25 16,75 16.78
71
PM 887
-9-
RASING POINTS
Phoenixville,
Pa.
Harrisburg,
Pa.
Sparrows Point,
Md.
Cleveland,
Ohio
Buffalo,
N.Y.
Portamouth,
Ohio
Middletown,
Ohio
GRADES
No. 1 Heavy Melting Steel
18.75
18,75
18.75
19.50
19,25
19,50
19,50
No. 1 Hydraulic Compressed
Black Sheet Scrap
18,75 18.75 18.75 19.50 19,25 19.50 19.50
No. a Heavy Melting Stem1
17.75
17.75
17,75
18,50
18,25
18.50
18.50
Dealers' lio, 1 Bundles
17,75
17.75
17.75
18,50
18,25
18,50
18,50
Dealers' No. 2 Bundles
16.75
16.75
16.75
17.50
17.25
17,50
17.50
Mixed Borings and Turnings
14,00
14.00
14.00
14.75
14.50
14.75
14,75
Machine Shop Turnings
14.25
14,25
14.25
15.00
14.75
15.00
15.00
Shovelling Turnings
15.25
15.25
15.25
16.00
15,75
16.00
16.00
No. 1 Busheling
18.25
18.25
18.25
19,00
18.75
19,00
19,00
No, 2 Busheling
14.25
14,25
14.25
16,00
14.75
15,00
15,00
Cast Iron Borings
14.50
14.50
14,50
16,25
15.00
15,25
15.00
Uncut Structural &
Plate Scrap
17.75
17.75
17.75
18,50
18.25
18,50
18,50
No. 1 Cupola
23.00
23.00
22.00
22.00
20.00
21.00
21.00
Heavy Breakable Cast
21,50
21.50
21.00
20.50
18,50
19.50
19,50
Stove Plate
18,50
18.50
18,00
18.00
19.00
17.50
17.50
Low Phos Billet &
Bloom Crops
23,75
23.75
23.75
24.50
24.25
23,50
23.50
Low Phos Bar Crops &
Smaller
21.75
21.75
21.75
22.50
22.25
21,50
21,50
Low Phos Punchings
& Plate Scrap*
21.75
21,75
21.75
22.50
22.25
21,50
21,50
Machinery Cast,
Cupola Size
34.00
24.00
23.50
23.00
21.00
22.00
22.00
No. 1 Mach. Cast, drop-
broken, 150 lbs. & under
24.50
24.50
24.00
23.50
21,50
22,50
22.50
Clean Auto Cest
24,60
24,50
24.00
23.50
21.50
22.50
22.50
Punchings & Plate Scrap***
20.75
20.75
20.75
21.50
21,25
20.50
20.50
Punchings & Plate Scrap
19,75
19,75
19,75
20.50
20.25
19,50
19.50
Heavy Axle & Forge Turnings
18,25
18.25
18.25
19.00
18,75
18.00
18.00
Medium Beavy Electric
Furnace Turnings
16,75
16.75
16,75
17,50
17,25
16.50
16,50
Regraded Unclassified
72
10
PM 887
BASING POINTS
Ashland,
Ky.
St. Louis,
No. d/
Detroit.
Mich.
Minneapolis-
St. Paul, Minn.
Duluth,
Minn.
Birmingham,
Ala.
Chattanooga,
Tend,
GRADES
No, 1 Heavy Melting Steel
19.50
17.50
17.85
-
18.00
17.00
-
No. 1 Hydraulic Compresed
Black Sheet Scrap
19.50
17.50
17.85
-
18.00
17.00
-
No. 2 Heavy Melting Steel
18.50
16.50
16.85
-
17.00
16.00
-
Dealers' No. 1 Bundles
18.50
16.50
16.85
-
17.00
16.00
-
Dealers' No. 2 Bundles
17.50
15.50
15.85
-
16.00
15.00
-
Mixed Borings and Turnings
14.75
12.75
13.10
-
-
12.25
I
Machine Shop Turnings
15.00
13.00
13.35
-
15.50
15.00
-
Shovelling Turnings
16,00
14.00
14,35
-
16.50
16.00
I
No. 1 Busheling
19.00
17.00
17.35
-
17.50
16.50
1
No. 2 Busheling
15,00
13.00
13.35
-
13.50
12.50
-
Cast Iron Borings
15.35
13.25
13.60
-
13.75
12.75
-
Uncut Structural &
Plate Scrap
18.50
18.50
16.85
-
17.00
16.00
-
No. 1 Cupola
21.00
20.00
20.35
19.00
19.00
20.00
20.50
Heavy Breakable Cast
19.50
18.50
18.85
17.50
17.50
18.50
-
Ive Plate
17.50
17.00
14.10
16.00
16.00
17.00
17.50
Low Phos Billot &
Bloom Crope
23.50
22.50
22.85
-
23.00
22.00
I
Low Phos Bar Crops &
Smaller
21.50
20.50
20.85
-
21.00
20.00
-
Low Phos Punchings &
Plate Scrau*
21.50
20.50
20.85
-
21.00
20.00
-
Machinery Cast,
Cupola Size**
22.00
21.00
21.35
20.00
20.00
21.00
21.50
No. 1 Mach, Cast, drop-
broken, 150 lbs. & under
22.50
21.50
21.85
20,50
20.50
21.50
22.00
Clean Auto Cast
22.50
21.50
21.85
20.50
20.50
21.50
22,00
Punchings & Plate Scrap***
20.50
19.50
19.85
-
20.00
19.00
-
Punchings & Plate Scrap""*"
19.50
18.50
18.85
-
19.00
18.00
1
Heavy Axle & Forge Turnings
18.00
17.00
17.35
-
17.50
16.50
-
Medium Heavy Electric
Purnace Turnings
16.50
15.50
15,85
-
16.00
15,00
-
Regraded Unclassified
11
73
PM 887
BASING POINTS
Radford,
Va.
Worcester,
Mass.
Bridgeport,
Conn.
Phillipadale,
of -
Alloy,
W.Va.
Los Angeles,
Calif.
San Francisco,
Calif.
GRADES
No. 1 Heavy Melting Steel
-
-
-
-
-
14.50 14.50
No. 1 Hydraulic Compressed
Black Sheet Scrap
-
-
-
-
-
14.50
14.50
No. 2 Heavy Melting Steel
-
-
-
-
-
-13.50
13.50
Dealers' No. 1 Bundles
-
-
1
-
-
13.50 13.50
Dealers' No. 2 Bundles
-
I
-
-
-
12.50
12.50
Mixed Borings and Turnings
I
-
-
-
-
9.75
9.75
Machine Shop Turnings
-
-
-
-
17.60
10.00
10.00
Shovelling Turnings
-
1
-
-
-
11.00
11.00
No. 1 Busheling
-
-
1
-
-
14.00
14,00
No. 2 Busheling
:
-
-
-
-
10.00 10.00
Cast Iron Borings
1
-
:
-
-
10,25 10.25
Uncut Structural &
Plate Scrap
-
-
-
-
-
13,50
13,50
No. 1 Cupola
21.00
22.00
22,00
22.00
-
18.00
18,00
Heavy Breakable Cast
-
20.50
20,50
20.50
-
17,00 17.00
Stove Plate
18,00
17.50
17.50
17,50
-
14.00
14.00
Low Phos Billet &
Bloom Crops
,
$
-
-
I
19,50
19.50
Low Phos Bar Crops
& Smaller
t
-
-
I
-
19,50
19.50
Lov Phos Punchings
I Plate Scrap*
-
-
-
-
-
17.50
17.50
Machinery Cant,
Cupola Size*
22.00 23.00
23.00
23.00
-
19.00
19.00
No. Mach, Cast, drop-
broken, 150 lbs. & under
22.50
23.50
25.50
23.50
-
19.50
19,50
Clean Auto Cast
22.50
23.50
23,50
23.50
-
19.50
19.50
Punchings & Plate
Scrap
I
-
-
-
-
16.50
16.50
Punchings & Plate
Scrap****
-
-
-
-
-
15.50
15.50
Heavy Axle & Forge Turnings
-
-
-
-
-
14.00
14.00
Medium Heavy Electric
Furnace Turnings
-
-
-
-
-
12.50 12.50
Poaradod Inclassified
74
12
PM 887
BASING POINTS
Portland,
Ore.
Ceattle,
Wash.
Minnequa,
Colo,
Toledo,
Ohio
Alabama City,
Ala,
Atlanta,
Ga.
GRADES
No. 1 Heavy Melting Steel
14.50
14.50
16.50
17.00
17.00
No. 1 Hydraulic Compressed
Black Sheet Scrap
14.50
14.50
16.50
-
17.00
17.00
No. 2 Eeavy Melting Steel
13.50
13.50
15.50
-
16.00
16.00
Dealers' No. 1 Bundles
13.50
13.50
15.50
-
16.00
16,00
Dealers' No. 2 Bundles
12.50
12,50
14,50
-
15.00
15.00
Mixed Borings and Turnings
9,75
9.75
11.75
13.10
12.25
-
Machine Shop Turnings
10.00
10.00
12.00
13.35
15.00
-
Shovelling Turnings
11.0
11.00
13.00
14,35
16,00
-
No. 1 Busheling
14.00
14.00
16.00
-
16.50
-
No. 2 Busheling
10.00
10.00
12,00
-
12.50
-
Cest Iron Borings
10.25
10.25
12,25
13.60
12.75
-
Uncut Structural &
Plate Scrap
13.50
13.50
15.50
-
16.00
-
No. 1 Cunola
18.00
18.00
I
-
-
-
Heavy Breakable Cast
17.00
17.00
-
-
-
-
Stove Plate
14.00
14.00
-
15.60
-
-
Low Phos Billet &
Bloom Crops
19.50
19.50
-
-
-
-
Low Phos Bar Crops
& Smaller
19.50
19.50
-
-
-
Low Phos Punchings
& Plate Scrap'
17.50
17.50
-
-
1
Machinery Cast,
Cupola Size
19.00
19,00
-
-
I
No. Mach. Cast, drop-
broken, 150 lbs. & under
19.50
19.50
-
-
-
Clean Auto Cast
19.50
19.50
-
-
-
Punchings & Plate Scrap**
16.50
16.50
-
-
-
Punchings & Plate Serup
15.50
15.50
-
-
-
Heavy Axle & Forge Turnings
14.00
14.00
-
-
-
-
Medium Heavy Electric
Furnace Turnings
12,50
12,50
-
-
-
-
Regraded Unclassified
PM 887
75
This grade is 3/8-inch and heavier, out 13 inches and under,
This grede also ray include clean mariculturel cest.
This grade 1s under 3/8-inch to 1/4-inch, out 12 inches and under.
This grade is under 1/4-inch to No, 12 gage, cut 12 inches and under.
À Basing Point includes its switching district,
The grade specified are, except Dealars' No. 1 and No. 2 Bundles and Uncut
Structural and Plate Scrap, as nared and defined in the simplified practice recom-
sea atione R-58-36 of the Department of Commerce which shall be the governing
specifications for iron and steel scrap hereunder. Dealers' No. 1 Bundles shall
consist of new, clean black sheet scrap, hydraulically compressed in a dealer's
yard. Dealers' No. 2 Bundles shall consist of old fender and body scrap, and shall
in no case command a premium.
C These grades represent the major classifications of iron and steel scrap, The
maximum prices of superior or inferior grades shall continue to bear the same com-
parable relationship to those major grade classifications as heretoforo existed bri-
between the prices of anch suporior or inforior grades and the prices of the major
di grades. The St. Louis Basing Point includes the switching districts of Granite City,
East St, Louis, and Madison, Illinois.
II.
MAXIMUM PRICE AT SHIPPING POINT
A Shipping Point is the point from which the scrap 1a to be shipped to
a consumer,
The maximum price at which a grode of scrap may be sold f.o.b. its
point of shipment is the Shipping Point Price of such BcTap,
A Shipping Point Price in computed 0.5 follows:
(a) For Shipping Points located within a Basing Point.
The price established above for the Sasing Point in which the Shipping Point ie
Incated, is determined, There are then deducted from this price the actual coste
involved in transporting scrap from the Shipping Point to the consumer's plant
within the Basing Point which is nearest, in terms of transportation costs, to the
Shipping Point.
(b) For Shipping Points located outside a Basing Point.
The price established above for the Basing Point nearest, in terms of transporta-
tion charges, to the Shipping Point is determined, There is then deducted from
this price the lowest estoblished charge for transporting scrap from the Shipping
Paint to such Basing Point. The figure thus obtained is the Shipping Point Price,
with the following exceptions:
1. The Shipping Point Price at any Shipping Point in New England, of those grades
of scrap for which no prices are listed at the Basing Points established for New
England in Paragraph I, hereof, shall be the Johnstown Basing Point Price an set
forth in Paragraph I, hereof, minus the all-rail transportation costs from the
New England Shipping Point to Johnstown. However, the Shipping Point Price at any
Regraded Unclassified
- 14 -
PM 887
76
Shipping Point in New England of those grades of scrap for which prices are listed
at the Basing Points in New England established in Paragraph I, hereof, shall be
computed from those New England Basing Point Prices.
2. Shipping Point Prices for any Shipping Point in New York City, Brooklyn, New
York, and New Jersey, which, by reason of barge rates, are nearest in terms of
transportation charges to the Buffalo Basing Point, shall not be computed from the
Buffalo Basing Point, but shall be computed from the Bethlehem, Pennsylvania,
Basing Point.
III.
MAXIMUM PRICES DELIVERED TO A CONSUMER WHEREVER LOCATED
The maximum price at which any grade of scrap may be delivered to the
plant of a consumer wherever located is the Shipping Point Price as determined in
Paragraph II above, plus actual transportation charges from the Shipping Point to
the consumer's plant, Where shipment is by water, actual handling charges at the
dock of not more than 75 cents per gross ton may be included as a part of transpor-
tation charges, but must be shown B.G. separate charges on all invoices. In no case,
however, shall this meximum price excesed by more than one dollar the prices net
forth in Paragraph I above, for the Basing Point nearest, in terms of established
transportation charges, to the consumer's plant.
IV.
BILLET AND BLOOM CROPS ORIGINATING IN PITTSBURGH, PA.
Where the grade of scrap classified 8.8 billet and bloom crops originates
in the Pittsburgh Basing Point, it may be sold delivered to a consumer, located
within or without the Pittsburgh Basing Point, at the vrice astabliched in Para-
graph I, hereof, for Pittsburch, Pa, plus not more than $3.50 in transportation
charges from the point of origin to the consumer's plant. In no case shall the
consumer pay a sum in excess of the price established under Paragraph I, hereof,
for the Pittsburgh Basing Point plus the lowest established charge for transporting
the scrap from the point of origin to the consumer's plant.
V.
UNPREPARED SCRAP
The maximum prices established hereinabove are maximum prices for pre-
pared scrap.
For unprepared scrap, irrespective of source, raximum prices shall be
$2.50 less then the maximum prices for the corresponding grade or grades of pre-
pared acrap.
Regraded Unclassified
77
- 15 -
PM 88?
VI.
REMOTE SCRAP
Scrap located beyond the zone from which the railroad freight rate to
Fittsburgh is $11.20, shall be considered remote scrap. The Shipping Point Price
of such scrap shall be determined as in Paragraph II hereinabove. In order to
facilitate the flow of remote scrap, consumers who can establish & need for such
scrap but who, because of the transportation charges involved, cannot deliver such
scrap to their plants under the ceiling delivered prices established in Paragraph
III, (11), above, may apply to the Office of Price Administration and Civilian
Supply, Washington, D. C., for permission to absorb the additional transportation
charges necessary to secure such scrap. Application by consumers must be fully
detailed, including an affidavit setting forth the point of shipment of the scrap,
the grade, quantity, price and shipping point, proposed delivery prices, the
transportation charges from the shipping point to the nearest Basing Point, and
the transportation charges from the shipping point to the consumer's plant. The
application should be accompanied by an affidavit from the consumer establishing
its need for remote scrap and stating its willingness to accept such scrap at the
price quoted.
Only applications for purchases which would involve actual delivery of
500 tons of scrap per month from one Shipping Point to one consumer destination will
be considered.
The approval of the Office of Price Administration and Civilian Supply
shall be obtained before consumers may absorb the additional transportation charges
necessary to secure remote scrap.
78
-16-
1304.17
APPENDIX B
PM 887
MAXIMUM PRICES FOR IRON AND STEEL SCRAP ORIGINATING FROM RAILROADS
All the maximum prices given below are per gross ton
I.
SCRAP ORIGINATING FROM RAILROADS OPERATING IN A BASING POINT
NAMED BELOW
A. Delivered to a Consumer's Plant Located on the Line of the Railroad
From Which the Scrap Originated.
1, LISTED GRADES
GRADES
No. 1 Railroad Grade
Heavy Melting Steel
Scrap Rails
Rails for
Rerolling*
Scrap Rails Three
Feet and Under
Scrap Rails Two
Feet and Under
Scrap Fails Eighteen
Inches and Unler
BASING POINTS
Pittsburgh, Pa.
21.00
22.00
23.50
24,00
24.25
24.50
Wheeling, W. Va,
21.00
22.00
23.50
24.00
24.25
24.50
Steubenville, Ohio
21.00
22.00
23.50
24.00
24.25
24.50
Youngstown, Ohio
21.00
22.00
23.50
24.00
24.25
24.50
Sharon, Pa,
21.00
22.00
23,50
24,00
24.25
24,50
Canton, Ohio
21.00
22.00
23.50
24,00
24.35
24.50
Chicago, :11.
19.75
20.75
23.25
22,75
23.00
23,25
Kokomo, Ind,
19.25
20.25
21.75
22.25
22.50
22.75
Philadelphia, Pa.
19.75
20.75
22.25
22.75
23.00
23,25
Wilmington, Del,
19.75
20.75
22.25
22,75
23.00
23.25
Sparrows Point, Md.
15.75
20.75
22.25
22.75
23.00
23.25
Cloveland, Ohio
20.50
21.50
23.00
23.50
23.75
24.00
Buffalo, N. Y,
20.25
21.25
22.75
23.25
23.50
23.75
Portsmouth, Ohio
20.50
21,50
23.00
23.50
22.75
24.00
Kiddletown, Ohio
20.50
21.50
23.00
23.50
23.75
24.00
Ashland, Ky,
20.50
21.50
23.00
23.50
23.75
24.00
St, Louis, Mo.
18.50 19,50 21.00 21.50 21.75 22,00
Kansas City, No.
17.00
18,00
19.50
20,00
20.25
20.50
Detroit, Mich,
18,95
19.85
21.35
21.85
22,10
22.35
Duluth, Minn.
19,00
20,00
21.50
22.00
22.25
22.50
Birminghan, No.
18.00
19.00
20.50
21.00
21.25
21.50
Los Angeles, Calif.
15,50
16,50
18.00
18.50
18.75
19.00
San Francisco, Calif.
15,50
16.50
18.00
18.50
18.75
19.00
Seattle, Wash.
18,50
16.50
18.00
18.50
18.75
19.00
-
Re-laying quality $5.00 higher.
Regraded Unclassified
- 1?
PM 687
79
Where the reilroad originator of the scrap operates in two or more of the
Basing Points named above, the highest of the maximum prices watablished
above for such Basing Points shall be the maximum price of the scrap delivered
to a consumer's plant at any point on the railroed's line, except that switch-
ing charges of 84 cents per gross ton shall be subtracted from the maxterum
prices of scrap originating from railroado operating in Chicago, 111, and sold
for consumption outside Chicago, Ill. This exception is applicable to maximum
prices of grades not listed as determined below
2. ORADES NOT LISTED
(a) The price at which & consumer located on the line of the railroad from which
the scrap originated may purchase any grade of scrap not listed above shall
not exceed the average price per gross ton at which such railroad sold such
grade delivered to the plant of B. consumer, whether located on or off the line
of the railroad, during the period commencing September 1, 1940, and ending
January 31, 1941, or, in cade no sale was made during the period, the price at
which the grade was last sold by the railroad prior thereto, and, in either
event, adjusted to allow for the average trade differentials of the railroad
in a manner indicated in Sub-paragraph (b) below.
b) For purposes of Subparagraph (a) above, the maximum prices for any grade not
listed in Paragraph A, 1, above shall be adjusted to allow for the average
grade differentials of the railroad by:
First, computing the amount of the base grade differential for the rail-
road which shall be the difference between the average price per gross
ton at which the railFoad from which the scrap originated sold No. 1
Bailroad Grade Heavy Melting Steel Scrap delivered to the plant of the
consumer, whether located on or off the line of the railroad, during the
period commencing September 1, 1940, and ending January 31, 1941, and
the railroad's maximum price established for such grade under Paragraph
4. 1., above; and
Second, by applying this base grade differential to the price to be
adjusted by either (1) subtracting the amount of such differential from
such prices in case the railroad's average price of No. 1 Railroad Grade
Heavy Melting Steel Serap exceeds the railroad's maximum price estab-
lished for such grade under Paragraph A., 1., above, or (ii) adding the
same in case the railroad's average price is less than such maximum.
B. Delivered to a Consumer's Plant Located Off the Line of the Railroad from
Which the Scrap Originated.
The maximum price is either of the following. whichever 10 greater:
(1) The maximum price established in Paragraph A above, for scrap delivered
to 1. consumer on the line of the railroad from which the scrap origi-
nated, or, if the consumer can establish that be has been served by the
Name source of scrap in the past. this maximum price plus transportation
charges, (including off-the-line switching charges), from the railroad's
line to the consumer's plant. of not more than two dollars per gross
ton for Raile for Rerolling, Scrap Axles and other scrap for rerolling.
and of not more than one dollar per gross ton for all other grades of
scrap: or
(2) The prices set forth in Paragraph A, 1., above. for the Basing Point
nearest the consumer's plant.
Regraded Unclassified
80
- 18 M
PM 867
II,
SCRAP ORIGINATING FROM RAILROADS NOT OPERATING IN ANY OF THE BASING POINTS
NAMED ABOVE.
The maximum price of any grade of such scrap deliv red to consumers located
on and off the line of the railroad shall not exceed:
(1) For the grades listed above, either of the following, whichever is less:
(a) The average price per gross ton at which the railroad originator of the
scrap sold any such grade to consumers located on and off the line of
the railroad during the period commencing Sept. 1, 1940 and ending
Jan. 31, 1941; or
(b) The price at the Basing Point nearest, in terms of transportation costs,
to the consumer's plant; and
(2) For the grades not listed above, either of the following, whichever 10
less:
(a) The average price per gross ton at which the railroad originator of
the scrap sold any such grade to consumers located on and off the line
of the railroad during the period commenci - 6 Sept. 1, 1940 and ending
Jan. 31, 1941; or
(b) The average price per gross ton as determined in subparagraph (a) here-
of, minus the amount by which the average price of No. 1 Railroad Grade
Heavy Melting Steel scrap, as determined in (a), exceeds the price of
No. 1 Railroad Grade Heavy Melting Steel scrap at the Basing Point
nearest, in terms of transportation costs, to the consumer's plant.
III
SCRAP WHICH CANNOT BE IDENTIFIED AS TO CRIGIN
The maximum price per gross ton at which a. consumer may purchase, delivered at
his plant, any grade of railroad scrap which cannot be identified as to origin,
shall not exceed the maximum price established under Appendix A of this Schedule
for the grade in which such scrap may be classified.
IV
GENERAL PROVISIONS
& Unprepared Scrap,"
+
The maximum prices established hereinabove are maximum prices for prepared
scrap.
(1) Identifiable AS to Grade. The maximum prices for unprepared scrap
identifiable A8 to grade shall be $2.50 less than the maximum prices
for the corresponding grade or grades of prepared scrap.
(2) Unidentifiable as to Grade. Unprepared scrap which cannot be identi-
fied as to grade (for example, a box car, a locomotive, or the like)
is not subject to the maximu: prices established herein until such
scrap has been prepared for consumption.
Regraded Unclassified
81
PM 887
- 19 -
Scrap Prepared by a Person Other Than B Railroad
Where scrap originates from & railroad but is broken down and prepared by a
person other than the railroad and the railread origin of such scrap is known,
the maximum price at which & consumer may purchase such scrap shall be the
price established above for purchases of scrap prepared by the railroad.
82
20
PM 887
1304.18 Appendix 0
MAXIMUM PRICES FOR IRON AND STERL SCRAP FOR
EXPORT FROM THE UNITED STATES
Per Gross Ton, F.A.E. and F.O.B. Point of Export
1, Other Than Railroad Scran
The maximum export price of any grade of iron and steel
scrap other than railroad scrap shall be the marimum Shipping Point
Price dorived under Paragraph II of Appendix À, plus the notual
charge for transporting the scrap from the Shipping Point to the
place of export. For scrap erported by ship this maximum export
price shall be F.A.S. the place of export and actual costs incident
to shipment for exnort may be added if shown as B separate charge
on the invoice. For scran orported by means other than by ship,
this maximum export price shall be F.C.B. the place of export.
Commission of the donestic broker may be ndded 28 provided in
Section 1304.6 of this Schedule and must be shown S.D. a separate
charge on the invoice.
2. Scrap Originating From Railroads
The narimum export price of any grade of iron and steel
scran of railroad origin shall be the maximum price established and
determined under Angenéix B for a consuner Incated on the line of
the railroad originator of the scrap plus actual transportation
charges from the line to the place of export. For scrap originat-
ing from a railroad not operating at & Basing Point, no transports-
tion charges shall be added to the maximum prices of such scran 83
determined under Appendix B. For scrap exported by ship these
zaximum erport prices shall be F.A.S. the place of export and
actual costs incident to shipment for export may be added if
shown as a separate charge on the invoice. For scrop emported
by means other than by ship, this maximum emort price shall be
F.O.B. the place of export. Commission of the domestic broker
may be added as provided in Section 1304.6 of this Schedule and
must be shown 85 a separate charge on the invoice.
Regraded Unclassified
Form 104:6
21
PM 867
83
Revised
OFFICE FOR EMERGENCY MANAGEMENT
OFFICE OF PRICE ADMINISTRATION AND CIVILIAN SUPPLY
WASHINGTON, D. C.
1304.19, APPENDIX D - REPORT OF PURCHASES, CONSUMPTION AND
INVENTORY OF IRON AND STEFL SCRAP
For the month of
1941.
This form, which you are requested to fill in, is made up of
questions which will elicit the information required by Section 1304.10 of
the Iron and Steel Scran Price Schedule. That section requires every con-
sumer to keep the Office of Price Administration and Civilian Supply ad-
vised of its scran purchases and receipts for the month, including scrap
which is 8 by -product of its own operations, its disposition of scrap for
the month, whether by melt, sale, exchange, or otherwise, and its inventory
of scrap on hand as of the first and last day of each month. This informa-
tion is necessary to the protection of nn even flow of scrap to all consumers.
Gross Tona
1. Total Scrap on hand first day of month
(purchased, home origin, exchange, etc.)
3. Total Scrap receipts during the month from
all sources (purchased, home origin,
exchange, etc.)
3,
Sum of items 1 and a
4, Total scrap melted during the month
5. Total scrap rerolled during the month
6. Total scrap inventory last day of the month
(See note)
7. Total ingot or other production during the
month (include production from scrap
and all other sources)
B. Type of operation constituting the major part
of your business
(Check one): Foundry Smelter Steel Mill
9, Report orders placed during the month for the purchase
or exchange of scrap on the reverse eide of this form.
Note: If item 3 minus items 4 and 5 does not equal item
6, explain the discrepancy (e.g. sales of scrap
during the month, etc.)
(Name of Company)
(Officer making report)
(Street Address)
(Title)
(Post Office)
(Date)
Regraded Unclassified
84
22
PM 887
(Reverse side of Form 104:8, Revised)
9. Orders placed during
for the purchase or exchange of scrap.
(month)
Grade
Quantity
Purchase Price
Origin
Person or firm
(Report each grade
ordered
(Net per gross
(Check one)
from whom
separately)
(Gross tons)
ton)
R.R. Other
purchased
Regraded Unclassified
85
OFFICE FOR EMERGENCY MANAGEMENT
Office of Price Administration And Civilian Supply
For PM Release
August 8, 1941
PM 892
A request that State vehicular authorities throughout the country
require motorists to surrender their 1941 license plates upon receipt
of new 1942 tars was made today by the Office of Price Administration
and Civilian Supply in announcing a program providing for preferential
allocation of the minimm tonnage of sheet steel required to produce
the 1942 license plates
The program is issued, according to OPACS, only because time is
too short to enable the States to find substitutes for steel for 11-
cense tags and since many States already have procured their steel
requirements.
Conservation of steel for civilian use !s likely to become even
more essential in 1942 if the emergency continues and the States are
warned that in all probability no sheet steel will be made available
for the manufacture of 1943 license tags.
Attention was called to Connecticut's five-year type of
automobile license plate, with provision for annual change in date, as
one method of conserving steel.
By requiring the surrender of old license olates, the States will
add a sizeable tonnage of scrap to the national supplies.
The limited allocation program will be administered by the Office
of Production Management.
Text of program is attached.
Regraded Unclassified
86
TITLE 32 - NATIONAL DEFENSE
PM 892
CHAPTER XI - OFFICE 07 PRICE ADMINISTRATION
AND CIVILIAN SUPPLY
Part 1306 - Iron and Steel Products
Civilian Allocation Program for Steel Used
in Automobile License Tags
Because of the difficulty which some of the states have experienced in
securing ateel to be used in the making of automobile license tags for the
license year 1942, it is necessary that an allocation program be formulated.
Accordingly, pursuant to and under the authority vested in me by Execu-
tive Order No. 8734, particularly Section 2(a) thereof, the following program
is announced:
1306.71 Allocation of Materials. Adequate supplies of steel for the
manufacture of automobile license tage for the license year 1942 shall be
allocated to the state or other manufacturer of such tags.
1305.71 to 1306.73, inclusive, 18-
sued pursuant to the authority con-
tained in Executive Order No. 6734.
1306.72 Restriction in Amount. The allocation provided for by 1306.71
shall be effective only for the procuring of the absolute minimum quantities
of steel necessary for the manufacturing of automobile license tags for the
license year 1942.*
1306.73 Enforcement. The foregoing program is to be administered and
enforced by the Office of Production Nonagement.
Issued this 7th day of August, 1941.
Leon Henderson
Administrator
Certified to be a true copy
of the original.
John E. Harm
Deputy Administrator
Regraded Unclassified
OFFICE FOR EMERGENCY MANAGEMENT
87
Office of Price Administration and Civilian Supply
For ДМ release
PM 904
Amount 9, 1941
Wanlesclers, jobbers and retailers are given restricted exemption from the
ceiling prices heretofore established for six leading types of cotton grey goods
in nn amendment announced today by the Office of Prico Administration and Civilian
Supply.
The change enables wholesalers, jobbers and retailers to sell at higher than
ceiling prices groy goods used in an unfinished state by industry for B. variety
of purposes and by private consumers for mislin sheeting, tobacco culture, etc.
Specifically prohibited by the anondment, however, are all males of grey goods
at higher than the maximum prices, even for industrial or private use, by producers
or their agents. Salos of grey goods by wholesalers, jobbers and retailers to any
converter or finisher similarly must conform to the ceiling prices,
A statement directed to the trade in connection with toe amendment seys OPACS
has been assured by a number of wholesalers and jobbers that their selling margins
on sales of grey goods to users of such unfinished cloth, an permitted by the amend-
ment, would be limited to amounts commensurate with the service rendered by them
and that there would be no tendency to exact excessive prices.
"In the event that margins charged by middlemen become excessive," the OPACS
statement concludes, "we will be compelled to take aupropriate remedial measures."
Text of the statement and of the emendment to the price schedule follows:
OFFICE OF PRICE ADMINISTRATION AND CIVILIAN SUPPLY
Statement to Wholesalere, Jobbers and Retailers of Cotton Grey Goods
We are today issuing on amendment to Price Schedule No. 11. This emendment
exempts from the ceiling prices the normal grey goods sales transactions of whole-
malers, jobbers, and retailers. You will note, however, that sales end deliveries
by such concerns are not exempted unless made in the performance of a recognized
distributive function, and that under no circumstances may grey goods be sold or
delivered to B corverter or finisher at any price in excess of the ceiling. Also
this exemption does not apply. of course, to sales or deliveries made by the manu-
facturer of the grey goods or the manufacturer's agent.
de have been assured by a number of wholesslers and jobbers that we could ex-
pect their selling margin to be limited to an amount commensurate with the services
rendered by them and that there would be no tendency, as a result of this amendment,
to exact excessive prices. We trust that we will have your cooperation in this re-
gard, In the event that margins charged by middlemen become excessive we will be
compelled to take appropriate remedial measures to limit these margins.
Regraded Unclassified
88
PM 904
TITLE 32 - NATIONAL DEFENSE
CHAPTER XI - OFFICE OF PRICE ADMINISTRATION
AND CIVILIAN SUPPLY
Part 1316 - Cotton Textiles
Amendment to Price Schedule No. 11 --
Cotton Grey Goods
Section 1316.2 is hereby amended by inserting after
subsection (a) (2) thereof the following subsection:
(3) The prices established herein are not an-
plicable to sales or deliveries of Cotton
Grey Goode made by any wholesaler, jobber
or retailer in the performance of n. recog-
nized distributive function, provided,
however, that sales and deliveries of Cot-
ton Grey Goods (i) by the manufacturer
thereof or by any agent of such manufacturer,
or (11) to a converter or finisher, shall in
no case be made at any price in excess of
the maxima established in Section 1316.7.
Issued this 8th day of August, 1941.
/s/ Leon Henderson
Leon Henderson
Administrator
Certified to be A true
copy of the original
/n/ John 3.
John E. Hamm, Deputy Administrator
Regraded Unclassified
89
OFFICE FOR EMERGENCY MANAGEMENT
PM 912
Office of Price Administration and Civilian Supply
Release AM Tuesday
August 12, 1941
A ceiling price of 12 cents G. pound for copper 1s established by Price Sch-
edule Do. 15, ennounced today by the Office of Price Administration and Civilian
Supply.
As stated previously, the schedule has as its objective the equalization of
copper prices to all consumers. This in considered essential in view of the gon-
oral preference order of the Office of Production Management, effective es of
August 6, 1941.
Because the 12-cent coiling might act to jeopardize B. small part of current
output of dompotic copper costingmore than 12 cents to produce, Leon Henderson,
OPACS Administrator, in recommending that the Metals Reserve Company, an agency
of the Reconstruction Finance Corporation, purchase such high-cost copper at
prices in excess of 12 cents A pound. For this resson, the schedule exempts sales
to the Metals Reserve Company from conformance with the ceiling price.
The plan recommended by Mr. Henderson is designed to aintain the current
output of high-cost companies now operating. CPAOS and OFM experts, as hereto-
fore announced, aro speeding plans to increase the domestic production of copper.
The ceiling price of 12 cents a pound established in the present schedule
applica to copper of electrolytic grade in the shape of wire bars or ingot bars
delivered in cerload lots at Connecticut Valley points. A top price of 11-3/4
cents B. pound is set for casting copper made by fire refining to a standard of
99.5% pure, including silver ao copper.
A carload lot is defined in the schedule as the minimum amount required to
command railroad carload rates from the point of shipment to the destination
point. Premiums, ranging from 3/4-cent to 2 conta B pound are allowed for less-
than-carload lots sold by others than refiners or producers.
Regraded Unclassified
90
-2-
PM 912
Prevailing premiums or discounts for other kinds, shapes, grades or forms
of copper and differentials for deliveries to other than Connecticut Valley
points shall be added to or subtracted from the Connecticut Valley base price.
The schedule provides that on and after August 12, 1941, regardless of any
prior contract or commitment, no sales of copper (except to Metale Reserve Co.)
shall be completed at more than the ceiling price. However, a person who bought
copper in carload lots between July 1 and August 12, 1941, for resale in less-
than-carload lots at prices not more than cent e. pound above the ceiling price
may be permitted by OPACS, upon application, to complete such sales at prices not
more than cent a pound over the maximum 1-c-1 prices established by the schedule
Permission also may be sought from OPACS to carry 01.0 contracts entered
into prior to August 12, 1941, and calling for delivery after that date of
copper at prices higher than the maximum prices.
In such cases, however, permission will be gre ted only (a) where a firm
commitment is involved at a price not more than -ornt over the maximum prices
and where such commitment is carried out prior to December 31, 1941; or (b) if
necessary to protect a dealer against loss where the contract or commitment was
entered into prior to August 12, 1941, and where the copper, or purchase con-
tract for copper to fulfill such a contract, was acquired prior to April 25, 1941.
A price schedule for copper scrap is about to be issued.
Text of the copper price schedule is attached.
Regraded Unclassified
S!
2½ 912
TITLE 32 - NATIONAL DEFENSE
CHAPTER XI - OFFICE OF PRICE ADMINISTRATION AND CIVILIAN SUPPLY
Part 1309 - Copper ená Copper Alloys
Price Schedule No. 16 - Copper
The Office of Price Administration and Civilian Supply
is charged with the maintenence of price stability and the preven-
tion of undue price rises and price dislocation. Copper is A
basic material for the production of many defense products and as
such has been subjected to a method of complete control of its
distribution by a General Preference Order of the Office of Produc-
tion Management, No. M-9-a, effective August 6, 1941. In order to
equalize the price to all consumers under that preference order and
in the interest of national defense and of the public, the establish-
ment of maximum prices for copper in necessary. On the basis of
information secured by independent investigation by this Office and
upon information furnished by the Trade, I find that the maximum
prices set forth below constitute reasonable limitations on the
price of copper,
Therefore, under the nuthority vested in me by Execu-
tive Order 8734, it is hereby directed that:
1309,51 Maximum Prices for Copper
(a) On and after August 12, 1941, regardless of
the terms of any contract of sale or purchase or other commitment,
except as provided in section 1309.53 hereof, no person shall
sell, offer to sell, deliver or transfer copper to any person
other than the Metals Reserve Company and no purchaser other than
the Metals Reserve Company shall buy, offer to buy, or accept
delivery of copper at prices higher than the maximum prices set
Regraded Unclassified
-a.
PM 912
92
forth in Appendix A, incorporated herein as Section 1309.60
provided however that any person, who, between July 1, 1941 and
August 12, 1941, has bought copper in carload lots (for resale in less
than carload lots) at prices not more than 1/24 per pound in ex-
cess of the maximum prices established by this Schedule, may be
permitted to sell and deliver such copper at prices not more than
1/24 per pound in excess of the maximum prices for loss than
carload lots established by this Schedule upon application to
the Office of Price Administration and Civilian Supply for ox-
ception to this Schedule.
(b) Except as otherwise provided in section
1309.60, the prices established by thie schedule are delivered
prices at the buyer's place of misiness and are gross prices
before the deduction of any discounts and include all
commission.
*1309.51 to 1309.60, inclusive issued pursuant
to the authority contained in Executive
Order No. 8734
1309.52 Evasion
The price limitations set forth in this Schedule shall
not be evaded whether by direct or indirect methods in connection
with B. purchase, sale, delivery, or transfer at A price of
copper, alono or in conjunction with any other material, or by
way of any commission, service, transportation, or other charge
or discount, premium, or other priviloge, or by tying agreement
or other trade understanding or otherwiso.'
1309.53 Permission to Carry Out Contracts Entored into
Prior to August 12, 1941
Any person who has, prior to August 12, 1941, entered
into a contract of sale or other firm commitment calling for
Regraded Unclassified
-3-
PM 912
93
delivery or transfer, after that date, of copper at prices higher than the
maximum prices established by this Schedule may make application upon forms
available upon request, to the Office of Price Administration and Civilian
Supply for permission to carry out such contract or commitment at the
contract price. Such permission will be granted only: (a) where the
applicant has entered into a firm commitment with n purchaser prior to
August 12, 1941 at B. price not more than 1/24 per pound in excess of the
maximum prices established by this Schedule, and where such firm commitment
is actually carried out prior to December 31, 1941; or (b) where the appli-
cant is a dealer and the permission is necessary to protect the applicant
against loss and where the contract or firm commitment VS8 entered into
prior to August 12, 1941, and the copper, or the purchase contract for the
copper, to fulfill such contract or firm commitment was acquired prior to
April 25, 1941.*
1309.54 Records
Every person making purchases or sales of copper after August
12, 1941 shall koep for inspection by the Office of Price Administration
and Civilian Supply for a period of not less than five years complete
and accurate records of: (a) each such purchase or sale, showing the
date thereof, the name and address of the buyer or the seller, the price
paid or received, and the quantity in pounds or tone of each kind or
grade purchased or sold; and (b) the quantity, in pounds or tons, of
copper (i) on hand, and (11) on order, as of the close of each calendar
month.*
1309.55 Enforcement
In the event of refusal or failure to comply with the
price limitations, record requirements, or other provisions con-
tained in this Schedule, or in the event of any evasion or attempt to
evade the price regulations or other provisions contained in this
Schedule, this Office will make every attempt to assure: (a) That
PM 912
94
the Congress and the public are fully informed of any failure to
abide by the provisions of this Schedule, and (b) that the powers
of the Government are fully exerted in order to protect the public
interest and the interests of those persons who conform with this
Schedule in the maintenance of the maximum prices herein set forth.
Persons who have evidence of the demand or receipt of prices above
the limitation set forth or of any evasion of or attempt to evade
such requirements or of speculation or manipulation of the price
of copper or of the hoarding or accumulation of unnecessary in-
ventory thereof, are urged to communicate with the Office of Price
Administration and Civilian Supply."
1309.56 Supplements to the Schedule
In order to insure compliance with this Schedule,
supplements further defining its scope, and, if necessary, requiring
reports to the Government will be issued from time to time when
found appropriate.*
1309.57 Modification of the Price Schedule
Persons complaining of hardship or inequity in the
operation of this Schedule may apply to the Office of Price Administra-
tion and Civilian Supply for approval of any modification thereof or
exception therefrom.
1309.58 Definitions
When used in this Schedule, the term
(a) "Person" includes an individual, corporation,
association, partnership, or other business entity.
(b) "Copper" includes all copper metal refined
by any process of electrolysis or fire refining to B. grade and
in a form suitable for fabrication, and shall include all such
metal produced from domestic or imported ores, concentrates, or
Regraded Unclassified
95
-5-
PM 912
other copper bearing material, or scrap.
(c) "Carload lot" means the minimum quantity of
copper required to obtain railroad carload rates from the point
of shipment to the point of destination.
(d) "Dealer" means a person who receives physical
delivery of copper and sells or holds the same for resale
without change in form.*
1309.59 Effective Date of the Schedule
This Schedule shall become effective on August 12,
1941.'
1309.60 Appendix A - Maximum Prices
(a) Maximum Connecticut Valley Base Prices
Grade
Price Per Lb.
Electrolytic, Lake or other fire
refined copper made to meet the
American Society of Testing
Materials Standard, B5-27, for
electrolytic copper
124
Casting copper made by fire re-
fining to a standard of 99.5% pure
including silver as copper
11-3/44
The maximum prices fixed above are for copper in the
shape of wire bars or ingot bars delivered in carload lots at
Connecticut Valley points.
(b) Differentials for other kinds, grades, shapes
or forms.
For copper of any other kind, grade, shape
or form there shall be added to or subtracted from the Connecticut
Valley base price the customary premiums or discounts for such kind, grade
shape or form which the seller would have added to or subtracted
from the Connecticut Valley base price on August 11, 1941.
(c) Differentials for deliveries at points other
-6-
96
PM 912
than Connecticut Valley Points.
For deliveries at any point other than B. Connecticut
Valley point there shall be added to or subtracted from the Connecticut
Valley base price the customary differential which the seller would, on
August 11, 1941, have added to or subtracted from the Connecticut Valley
base price adjusted for the kind, grade, shape or form differential.
(d) Differentials for less than carload lot shipments.
For less than S. carload lot the maximum price
shall be f.o.b. shipping point and shall be calculated by adding to
the Connecticut Valley base price adjusted for the kind, grade, shape,
form and delivery differentials the following premiums:
Quantity
Price per 1b.
0 -
499 pounds
2#
500 -
999 pounds
1st
1,000 -
4,999 pounds
1$
5,000
- pounds to carload
3/40
The above prices for less than a carload lot shall not
apply to a sale, delivery, or transfer by the refiner or producer
of copper.
A refiner or producer of copper shall be permitted to sell
less than carload lots at B delivered price not more than 1/24 per
pound above the Connecticut Valley base price adjusted for the kind,
grade, shape, form and delivery differentials.*
Issued this 12th day of August, 1941.
Certified to be & true
copy of the original
LEON HENDERSON
ADMINISTRATOR
JOHN B. HAMM
DEPUTY ADMINISTRATOR
OFFICE FOR EMERGENCY MANAGEMENT
Office of Price Administration and Civilian Supply
97
For immediate release
PM 931
Vednesday, August 13, 1941
Attached is the text of Price Schedule No. 16 - Raw Cane Sugars - pursuant to
the announcement made by Leon Henderson, Administrator, Office of Price Administra-
tion and Civilian Supply, on August 12, 1941,
TITLE 32 - NATIONAL DEFENSE
CHAPTER XI - OFFICE 05 PRICE ADMINISTRATION AND CIVILIAN SUPPLY
Part 1334 - Sugar
Price Schedule No. 16 - Raw Cane Sugars
The Office of Price Administration and Civilian Supply is charged with the
maintenance of price stability and the prevention of undue price risea and price
dislocations. I find that the supplies of sugar are ample: in fact, they exceed
those supplies which were required to satisfy consumption last year and are suffi-
cient this year to provide consumers with the highest per capita consumption on re-
cord. The current sharp upswing of sugar prices is detrimental to the public inter-
ust and national defense, and will, if not stopped, cause serious dialocations.
Accordingly. under the authority vested in me by Executive Order No. 8734, it
is hereby directed that:
1334.1 Maximum Prices for Raw Cane Sugars. On and after August 14, 1941, re-
gardless of the terms of any contract of sale or purchase, or other commitment, ex-
cept as may be provided in a supplement or supplements to this Schedule, no person
shall sell, offer to sell, deliver or trensfer raw cane sugars to any person, and no
person shall buy, offer to buy, or accept delivery of raw cane sugars from any perso:
at prices higher than the maximum prices set forth in Appendix A, incorporated herei
RE @ 1334,9. These prices are gross prices before discounts of any nature are de-
ducted and they include all commissions."
*1334.1 to 1334.9, inclusive issued pursuant to the authority contained
in Executive Order No. 8734
1334,2 Less than Maximum Prices. Lower prices than those set forth in Appen-
iix à may be charged, demanded, paid, or offered."
Regraded Unclassified
a -
PM 931'
1334.3 Records. Every person making purchases or sales of raw cane sugars
98
after August 14, 1941, shall keep for inspection by the Office of Price Main-
istration and Civilian Supply for at period of not less than one year complete
and eccurate records of:
(a) Each such purchase or sale, showing the date thereof, the name and
address of the buyer or the seller, the price paid or received, the quantity of
each kind or grade purchased or sold; end
(b) The quantity of raw cane sugars (1) On hand, and (2) On order, aa
of the close of each calendar month.
1334.4 Enforcement. In the event of refusal or failure to comply with the
price limitations, record requirements, or other provisions contained in this
Schedule, or in the event of any evasion or attempt to evade the price regula-
tions or other provisions contained in this Schedule, this Office will make
every attempt to assure: (a) That the Congress and the public are fully in-
formed of any failure to abide by the provisions of this Schedule, and (b) that
the powers of the Government are fully exerted in order to protect the public
interest and the interests of those persons who conform with this Schedule in
the maintenance of the maximum prices herein set forth. Persons who have evi-
dence of the demand or receipt of prices above the limitation set forth or of
any evasion of or attempt to evade such requirements or of speculation or mani-
pulation of the prices of sugar or of the hoarding or accumulation of unneces-
sary inventory thereof, are urged to communicate with the Office of Price Admin-
istration and Civilian Supply,*
1334.5 Supplements to the Schedule, In order to insure compliance with
this Schedule, supplements further defining its scope, and, if necessary, re-
quiring reports to the Government will be issued from time to time when found
appropriate."
1334.6 Modification of the Schedule. Persons complaining of hardship or
inequity in the operation of this Schedule may apply to the Office of Price
Administration and Civilian Supply for approval of any modification thereof or
exception therefrom."
99
PM 931
1334.7 Definitions. Vhen used in this Schedule, the term
(a) "Person" includes an indávidual, corporation. association, partner-
ship, or other business entity:
(b) "Haw cane sugars" means any sugars which are principally of crystal-
line structure and which are to be further refined or improved in quality, and
any sugars which are principally not of crystalline structure but which are to
be further refined or otherwise improved in quality to produce any sugars princi-
pally of crystalline structure.*
1334.8 Effective Date of Schedule, This Schedule shall become effective
on August 14, 1941.*
1334.9 Appendix A - Maximum Prices for Raw Cane Sugars.
(a) Maximum price raw cane sugars of 96 degrees polarization, New York
City duty paid basis cost and freight, 3.50$ per pound.
(b) Differentials for deliveries from off-shore producing areas to porte
other than New York City:
For deliveries at any port other than New York City, there shall be added
to or subtracted from (whichever 1s required to compensate freight differences),
the New York City price, adjusted for the various degrees of polarisations as
below set forth, the difference, if any, between the cost of freight from the por'
of shipment to New York City and the cost of freight from the port of shipment
to the port of arrival,
(c) Differentials for various polarizations.
Allowances per pound on raw cane sugars shall be as follows:
For the degree from 96 degrees to 97 degrees, add 1,50% of the above price; for
the degree from 97 degrees to 98 degrees, add an additional 1,25% of the above
price. For the degree from 96 degrees to 95 degrees, deduct 1.60% of the above
poice; for the degree from 95 degrees to 94 degrees, deduct an additional 2.00%
of the above price; for the degree from 94 degrees to 93 degrees, deduct an addi-
100
PM 931
tional 2.50% of the above price. Fractions of a degree in proportion.'
Issued this 13th day of August, 1941.
Leon Henderson
Administrator
Cortified to be a true copy of the original
John E. Harm
Deputy Administrator
Regraded Unclassified
101
OFFICE FOR EMERGENCY MANAGEMENT
Office of Price Administration and Civilian Supply
For Release A.M.
August 15, 1941
PM 939
Noving to meet the inflationary situation in tin prices created by concern
over shipments from the Far East, Leon Renderson, Administrator, Office of Price
Administration and Civilian Supply, today issued B. price schedule establishing B.
ceiling price of 52 cents B. pound on "Grade A" pig tin.
Tin la widely used A8 a plating and alloying material in production of both
armaments and civilian goods. The price, therefore, has an important bearing on
cost of both the defense program to the Government and of consumer goods to the
public generally.
Ratablishment of a maximum price ie in line with the warning issued by Mr.
ienderson on July 28 to the effect that a price ceiling might be set in the near
future. At that time tin prices had moved up from around 53 cents to 55 cents a
pound after rising gradually from the buying level of 50 cents established by the
Metals Reserve Co., an RFC subsidiary.
The price schedule, which was prepared after discussions with trade repre-
sentatives, establishes differentials for various grades of pig tin, for freight
rates from various points of shipment, and for sales in lots of less than five
fross tone. The latter differentials are intended to facilitate continued
distribution of tin through jobbers to small consumers.
The schedule also provides for exemptions, under various restrictions, for
firm commitments entered into prior to August 16, 1941, for sale of pig tin at
prices higher than the maximums.
The schedule does not establish maximum prices for special shapes, such as
small tin bare and tin anodes, but makers are expected to continue to sell them
at not more than their customary end normal premiums over pig tin.
Regraded Unclassified
PM 939
TITLE 32 - NATIONAL DEFENSE
102
CHAPTER II - OFFICE OF PRICE ADMINISTRATION
AND CIVILIAN SUPPLY
Part 1333 - Tin
PRICE SCHEDULE NO. 17. PIG TIN
The Office of Price Administration and Civilian Supply, being charged with
the maintenance of price stability and the prevention of undue price rises and
economic dislocations, has determined, after full investigation and after con-
ference with representatives d' the trade, that the establishment of maximum
prices for pig tin is essential in order to accomplish these purposes and is in
interest of national defense and national welfare and that the maximum prices
set forth herein are fair and reasonable.
This action is necessary because the current situation in the Far East,
from which the United States imports almost all metallic tin used in this
country, makes uncertain the continuance of an adequate supply of this stra-
tegic metal. An increased demand, accompanied by a fear of a decrease in
supply, has already had an inflationary effect upon the price of tin and threat-
ens to exert even greater inflationary pressure in the future.
Accordingly, under the authority vested in me by Executive Order No. 8734,
it is hereby directed that:
1333.1 Maximum Prices for Piz Tin, On and after August 16, 1941, re-
gardless of the terms of any contract of sale or purchase, or other commitment,
except as provided in 1333.4 hereof, no person shall sell, offer to sell,
deliver or transfer, pig tin, and no person shall buy, offer to buy, or accept
delivery of pig tin at prices higher than the maximum prices set forth in
Appendix A. hereof, incorporated herein as Section 1333.10.*
Sections 1333,1 to 1333.10, inclusive, issued pursuant to authority
contained in Executive Order No. 8734.
1333,2, Less than Maximum Prices. Lower prices than those set forth in
Appendix A. may be charged, demanded, paid or offered.
1333.3. Evasion. The price limitations set forth in this Schedule
shall not be evaded either by direct or indirect methods
Regraded Unclassified
103
- a -
PM 939
in connection with a purchase, sale, delivery, or transfer, of pig tin alone
or in conjunction with any other material, or by vay of any commission, 002-
vice, transportation, or other charge, or discount, premium, or other privi-
lege, or by tying-agreement or other trade understanding, or otherwise,"
1333,4. Exemption from the Sechedule of Firm Commitments Entered Into
Prior to August 16, 1941, Firm commitments entered into prior to August 16,
1941, for the sale of pig tin at prices higher than the maximum prices 00-
tablished in this Schedule, may be completed at contract prices provided that
(a) full details of each such commitment, and such other pertinent in-
formation as may be requested, be reported by the seller to the Office of
Price Administration and Civilian Supply on or before August 30, 1941, on
forms which may be obtained from said Office, and
(b) all deliveries at prices higher than the maximum prices established
by this Schedule be completed on or before December 31, 1941, or such later
date as may be permitted upon application made the each such case to the Office
of Price Administration and Civilian Supply."
1333.5. Records, Every person making purchases or sales of pig tin on
or after August 16, 1941, shall keep for inspection by the Office of Price
Administration and Civilian Supply for 8. period of not less than five years,
complete and accurate records of (a) every such purchase and sale, showing
the date thereof, the name and address of the buyer or the seller, the price
paid or received, and the quantity, in pounds or tons, of each kind or grade
purchased or sold, and (b) the quantity, in pounds or tons, of pig tin (1) on
hand, and (11) on order, as of the close of each calendar month."
1333.6. Enforcement. In the event of refusal or failure to abide by
the price limitations, record requirements, or other provisions contained in
this Schedule, or in the event of any evasion or attempt to evade the price
limitations or other provisions contained in this Schedupe, this Office will
make every effort to
Regraded Unclassified
104
- 3 -
PM 939
assure (a) that the Congress and the public are fully informed thereof, and (b)
that the powers of the Government are fully exerted in order to protect the
public interest and the interests of those persons who conform with this Sche-
dule. Persons who have evidence of the offer, receipt, demand or payment of
prices above those herein set forth, or of any evasion of or effort to evade
the provisions hereof, or of speculation, or menipulation of prices of pig
tin for which maximum prices are herein established, or of the hoarding or
accumulating of unnecessary inventories thereof, are urged to communicate with
the Office of Price Administration and Civilian Supply,*
1333.7. Modification of the Schedule, Persons complaining of hardship
or inequity in the operation of this Schedule may apply to the Office of Price
Administration and Civilian Supply for approval of any modification thereof
or exception therefrom."
1333.8 Definitions. When used in this Schedule, the term (a) "persons"
includes an individual, partnership, association, corporation or other
business entity.
(b) "pig tin" means pig tin of the kinds and grades set forth in Appendix
A of this Schedule."
1333.9. Effective Date of the Schedule, This Schedule shall become
effective August 16, 1941.
1333.10. Appendix A. Maximum Prices for Pig Tin.
I. Maximum Prices for Standard Grades of P1g Tin.
MAXIMUM PRICE
GRADE
(Per Bound)
1. 99.80% or higher percentage of purity, meeting
specifications set forth in "Specifications and
Proposale for Supplies, No. S-14", Issued December
15, 1939, by the U. S. Treasury Department, Pro-
curement Division, except that pig tin of this
grade need not be free of scrap and remelted metal
$0.52
0.51625
B. 99.75% to 99.79% pure, inclusive
0.51625
C. Cornish Refined
0,51125
D. 99.00% to 99.74% pure, inclusive
0,51 for
E. Below 99% pure
tin content
Regraded Unclassified
- 4 -
PM 939
105
II. Differentials for Freight Rates.
The above naximum prices are, in the case of foreign Dig tin, ox dock
or store, Port of New York, and, in the case of domestic pig tin, ex producer's
plant. The maximum prices of foreign pig tin which is imported through porte
of entry other than the Port of New York shall be ex dock or store at the
actual port of entry and shell be as much more or as much less than the above
prices as the ocean freight from the point of shipment to the actual port of
entry exceeds or is less than the ocean freight from such point of shipment
to the Port of New York. Foreign pig tin which is physically present at or
is sold for shipment from a point other than the port at which it was entered,
and domestic pig tin which is physically present at or is sold for shipment
from FL point other than the producer's plant, may be sold at prices, 1. 0. D.
such point of physical presence or of shipment, which exceed the above maximum
prices by no more than the domestic shipping charges which have notually been
paid or trust be paid in order to transport such pig tin to such point of
physical presence or of shipment.
III. Differentials for Salos in Lote of Less than Five Gross Tone.
For sales of pig
There any be added to
tin in lots of:
the maximum price:
2,240 to 11,199 pounds, inclusive
1# per pound
1,000 to 2,239 pounds, inclusive
per pound
500 to 999 pounds, inclusivo
22$ por pound
Under 500 pounds
3+ per pound
Issued this 15th day of August, 1941.
Leon Henderson
Administrator
CERTIFIED TO BE A TRUE COPY OF THE ORIGINAL:
John E. Hamm
Deputy Administrator
Regraded Unclassified
106
OFFICE FOR EMERGENCY MANAGEMENT
Office of Price Administration and Civilian Supply
For Release AM Papro
Saturday, August 16, 1941
PM 948
Because of the shortage of transportation facilities available for moving
gasoline to the Atlantic Coast area, deliveries of gasoline from suppliers were yes-
terday limited to 90% of the July level through a Civilian Allocation Program issued
by Leon Henderson, Administrator, Office of Price Administration and Civilian Supply
The action Was taken in response to a recommendation from Harold L. Idres,
Fetroleum Coordinator for National Defense,
It means that beginning immediately the amount of gasoline available to con-
numers in the Atlantic Coast Area will be 10% amaller than during the like period of
July. The allocation program provides, however, that deliveries to certain users
whose needs are essential shall not be reduced beyond "minimum necessary require-
ments," thus increasing somewhat the severity of the curtailment for ordinary
civilian users.
The programis intended as an interim negsure to be followed pending the develop-
ment of a further plan for allocating the distribution and consumption of motor fuel
It is expected that more severe curtailments will be necessary in the future,
In asking that OPACS take this action Mr. Ickes stated:
"During the week ending August 5 deliveries of gasoline by 17 major suppliers
in the Atlantic Coast area increased by 8 percent despite the intensive efforts of
this office to obtain voluntary public cooperation in reducing gasoline consumption.
This alarming continued increase in deliveries of gasoline, in view of the shortage
of oil transportation facilities, threatens to leave the Atlantic Coast area without
sufficient petroleum products for essential transportation, power and heat. It is
imperative, therefore, that immediate steps be taken which will conserve effectively
the supplies of petroleum products in this area in order that national defense and
essential civilian requirements may be met."
Regraded Unclassified
3X 948
107
- 2 -
Because of the need to assure continuance of cesential public services and the
production of foodstuffs the program names four groups of users who are to receive
"not in excess of the minimum necessary requirements." They include:
(1) The operation of commercial vehicles so classified by law.
(2) The operation of vehicles necessary for the public heath or safety,
including ambulances and vehicles operated by physicians.
(3) The operation of farm machinery and motor trucks used for farm purposes.
(4) The operation of vehicles owned or operated by Federal, State or local
governments.
Such consumers will presumably not be cut very much in reducing consumption
from the present level to their "minimum necessary requirements". Therefore most
of the burden will be borne by ordinary civilian users of gasoline. Supplies
available for their use will necessarily be curtailed by somewhat more than 10%.
With the exception of the four groups of users receiving special treatment,
the program provides that service station operators shall not discriminate between
different consumers or classes of trade in making deliveries. Furthermore, it is
required that deliveries shall be made in a manner which will spread necessary cur-
tailment proportionately among different consumers and different classes of trade,
Deliveries to service stations must also be made proportionately throughout each
month and service station operators must distribute their deliveries proportionately
throughout each day.
In announcing the program Mr. Henderson made it clear that action was taken
only because of the acute situation which is developing due to transportation
shortages. This has been due largely to diversion of tankers ordinarily used in
moving gasoline from the Gulf Coast to the Atlantic seaboard. A number of such
tankers are now being used to transport gasoline and other oil products destined
for England.
Following 1s text of the letter from Harold L. Ickes, Petroleum Coordinator for
National Defense, to Leon Henderson, Administrator, Office of Price Administration
and Civilian Supply:
Regraded Unclassified
PM
940
108
August 14, 1941
My dear Mr. Henderson:
During the week ending August 5 deliveries of gasoline by 17
najor suppliers in the Atlantic Coast area increased by 8 percent
despite the intensive efforts of this office to obtain voluntary
public cooperation in reducing gasoline consumption. This elarming
continued increase in deliveries of gasoline, in view of the short-
age of oil transportation facilities, threatens to leave the Atlantic
Coast area without sufficient petroleum products for essential trans-
portation, power and heat. It is imperative, therefore, that in-
mediate steps be taken which will conserve effectively the supplies
of petroleum products in this area in order that national defense
and essential civilian requirements may be met.
In his letter of May 28, 1941, establishing the Office of Petro-
leur Coordinator for National Defense, the President of the United
States made it the duty of this office
to make specific recommendations to any ap-
propriate department, office, corporation or other Agency
of the Federal Government, particularly the Office of
Production Management and the Office of Price Administra-
tion and Civilian Supply,
as to action which ia
necessary or desirable, on the basis of (my) determine-
tions, to insure the maintenance of a ready and adequate
supply of petroleum and petroleum products."
Accordingly, pursuant to the direction of the President of the
United States, and based upon determination which I have made, I recon-
mend to you that immediate steps be taken to curtail total monthly de-
liveries of motor fuels by suppliers, resellers. service stations and
all other persons engaged in the sale or resale of motor fuels for цве
in motor vehicles to not more than 90 percent of the amount BO delivered
by him during the month of July 1941. For the remaining one-half of the
month of August such deliveries should be curtailed similarly to 45 per-
cent of the July 1941 deliveries. The recommended curtailment should
be affected thereby but should not be applied BO B.B. to restrict sales und
deliveries of motor fuels needed for the operation of commercial
Regraded Unclassified
109
PM 948
-2-
vehicles so classified pursuant to law, vehicles employed in services
necessary for the public health and safety, vehicles employed in
agricultural pursuits and vehicles owned or operated by Federal, State
or local governments. Because of the lack of resulting hardship, it
is suggested that all other deliveries of motor fuel be given prefer-
once to those for use in the operation of pleasure boats.
Since such & curtailment of deliveries will result in a shortage
of motor fuel at service stations and other places of business where
motor fuel is sold and delivered into the fuel tanks of motor vehicles,
I further recommend, in order to assure all drivers of private auto-
mobiles their fair share of the limited supply, that individual de-
liveries of motor fuel to private automobiles be limited to such max-
imum number of gallons as in each place of business may be necessary
to accomplish the purposes of this recommendation and that all subject
to this recommendation conduct their business so as to avoid discrimina-
tion with respect to any of their customers. It will also be necessary,
of course, that deliveries be reduced proportionately, insofar as
practicable, to assure the continued availability of motor fuels
throughout the affected periods.
It is contemplated that the steps recommended herein, although
necessary immediately, will be provisional only and will be kept in
effect only until a further and more comprehensive recommendation for
allocation of petroleum products can be perfected.
Sincerely yours,
Harold L. Ickes
Petroleum Coordinator
for National Defense.
Hon. Leon Henderson
Administrator, Office of Price
Administration and Civilian Supply.
TITLE 32 - NATIONAL DEFENSE
PM 948
CHAPTER XI - OFFICE OF PRICE ADMINISTRATION AND CIVILIAN SUPPLY
110
PART 1340 - FUEL
CIVILIAN ALLOGATION PROGRAM
FOR MOTOR FUEL IN THE ATLANTIC
COAST
Shortages in the availability of transportation facilities for
the distribution of petroleum and petroleum products have cause shortages
in the supply of motor fuel in the Atlantic Coast Area. Further shortages
of motor fuel and shortages of petroleum products for essential transpor-
tation, power and heating purposes are threatened unless immediate steps
are taken to curtail consumption of motor fuel. The Petroleum Coordinator
for National Defense, pursuant to the responsibility vested in him by the
President in & letter dated May 28, 1941, has recommended to the Office of
Price Administration and Civilian Supply in a letter dated August 14, 1941,
that curtailment of the use of motor fuel be effected.
The following program is intended as an interim measure pending
the development of a further plan for allocating the distribution and
consumption of motor fuel.
Accordingly, pursuant to the powers vested in me by Executive
Order No. 8734, particularly Section 2(a) thereof, the following program
is announced:
1340.1 Allocation of Motor Fuel. No supplier of motor fuel
shall, directly or indirectly, deliver or cause to be delivered in any
month to resellers and consumers of such motor fuel more than 90% of the
amount delivered by him to resellers and consumers during the month of
July 1941: provided that during the remainder of the month of August 1941
subsequent to the effective date of this program no such supplier shall 80
deliver or cause to be BO delivered more than 45% of the amount of motor
fuel delivered by him during the month of July 1941.'
1340.1 to 1340.8, inclusive, issued pursuant to
the authority contained in Executive Order No. 8734
1340.2 Methods of Distribution. Subject to the provisions of
Regraded Unclassified
111
- 2
PM 948
1340.3, no supplier in making deliveries of motor fuel shall discriminate be-
tween resellers (including service stations owned or controlled, directly or in-
directly, by him) or consumers supplied by him, and every supplier shall curtail
deliveries to all resellers And consumere supplied by him on & proportionate
basis. Subject to the provisions of 1340.3, no person maintaining or operating
any service station, shall, in making deliveries of motor fuel, discriminate
or permit others to discriminate between different consumers of motor fuel or
different classes of trade, and every such person shall so make deliveries no
to spread necessary curtailment of motor fuel proportionately among different
consumers and different classes of trade. All suppliers shall make deliveries
in such menner 8.6 to distribute such deliveries proportionately throughout each
month; and all persons maintaining or operating service stations shall make
deliveries in such manner as to distribute such deliveries proportionately
throughout each day.
1340.3 Preferences for Certrin Uses, In making deliveries of motor fuel
all suppliers and persons maintaining or operating service stations shall give
preference to deliveries of motor fuel to be used, not in excess of the minimum
necessary requrements, for the following purposes:
1. The operation of commercial vehicles so classified by law.
2, The operation of vehicles necessary for the public health or safety,
including ambulances and vehicles operated by physicians.
3, The operation of farm machinery and motor trucks used for form purposes.
4. The operation of vehicles owned or operated by Federal, State, or
local governments.
In making deliveries of motor fuel, all suppliers and persons maintaining
or operating service stations shall give preference to all other uses of such
fuel over deliverios to be used in the operation of pleasure boats.
Regraded Unclassified
112
- 3 -
PM 948
1340.4 Reports. Each supplier of motor fuel shall keep for inspect-
ion for a period of not less than one year complete and accurate records of all
deliveries of motor fuel, showing the date thereof, the name and address of the
consignee, the price received, the use for which such motor fuel was delivered,
and the quantity of each type of motor fuel delivered."
1340.5 Application to Atlantic Coast Area. This program shall be
applicable to deliveries of motor fuel in Maine, New Hampshire, Vermont, Mass-
achusetts, Connecticut, Rhode Island, New York, Pennsylvania, New Jersey, Dela-
ware, Maryland, Virginia, West Virginia, North Carolina, South Carolina, Georgia,
Florida east of the Apalachicola River, and in the District of Columbia.*
1340.6 Definitions. The term "person", as used in this program, in-
cludes any individual, partnership. association, corporation, or other form of
enterprise.
The term "supplier", as used in this program, means any person, in-
cluding & reseller, selling or delivering motor fuel to any reseller or con-
sumer of such motor fuel; but the term shall not include any person all of whose
deliveries are made at service stations and shall not include that part, if any,
of a supplier's business included in the definition of a "service station".
The term "reseller", as used in this program, means any person who
receives motor fuel for resale.
The term "service station", as used in this program, means any place
of business where motor fuel is sold and delivered into the fuel tanks of motor
vehicles or motor boats,
The term "motor fuel", as used in this program, means liquid fuel used
for the propulsion of motor vehicles or motor boats, and shall include any
liquid fuel as to which Federal gasolene taxes apply except liquid fuel used for
the propulsion of aircraft.
Regraded Unclassified
113
P.M.946
The terms "deliver" and "deliveries", as used in this program,
except as used in 1340.4, shall not include deliveries of motor fuel
loaned, exchanged, purchased, or sold between suppliers or persons cain-
teining or operating service stations made for the purpose and with the
effect of enabling such suppliers or persons mainteining or operating
service stations to equalize as between themselves the percentage of cur-
tailment required of different classes of trade.*
1340.7 Enforcement. This program shall be administered and
enforced by the Office of Production Management.
1340.8 Effective Date. This program shall become effective
August 15, 1941.*
Issued this 15th day of August, 1941.
Leon Henderson
Administrator
Regraded Unclassified
OFFICE FOR EMERGENCY MANAGEMENT
114
Office of Price Administration and Civilian Supply
For Release AM
PM 949
August 16, 1941
Rayon yarn producers are permitted to release immediately to former
silk users, other than hosiery manufacturers, a substantial amount of the rayon
yarn accumulated under the recent allocation order of the Office of Price
Administration and Divilian Supply.
Through this intorim arrangement, effected by an amendment announced
today, OPACS ains to make available for these former users of silk sufficient
supplies of rayon yarn to permit of reasonably adequate operations until a longer-
range plan can be developed.
The CPACS allocation program required rayon yarn producers to set asido
one-tenth of their daily output and stocks on hand. Of this, 70% was ear-marked
for hosiery nanufacturers and 30% for other users of silk and for rayon weavers
upon whom the program might impose unduo hardship. The amendment, which ie only
effective until midnight of August 31, 1941, allows rayon yarn producers to nell
at once one half of the 30% thus pooled to manufacturers, jobbers or converters
other than hosiory manufacturers whose products had bean made largely or wholly
of silk.
The anended program does not contemplate any further governmental
action B.D. B. prerequisite to the sale of such rayon yern to these purchasers. If
orders received as result of the amendment exceeds the amount of yarn so set
acide, producers of rayon yarn are to use their own judgment in deciding what
orders to fill, until such tine as further programs are announced,
Text of the amendment is attached.
Regraded Unclassified
115
PM 949
TITLE 32 - NATIONAL DEFENSE
CHAPTER XI - OFFICE OF PRICE ADMINISTRATION AND CIVILIAN SUPPLY
PART 1337 - Civilian Allocation Program for Rayon Tarn
Section 1337.1 is hereby amended by adding at the end thereof the
following:
Provided, however. that during the period from the date of this
program to midnight August 31, 1941, one-half of the above remaining
30 percent, and only said one-half, shall be made available immediately
to menufacturers, jobbers and converters, other than manufacturers of
hosiery, whose products had heretofore been made largely or wholly of
silk, and the dispositions of such amounts among said manufacturers,
jobbers. and converters shall be made by each producer of rayon yarn
according to his own judgement.
Issued this 15th day of August, 1941.
Leon Henderson
Administrator
Certified to be a true copy of the original
John E, Hamm
Deputy Administrator
Regraded Unclassified
116
OFFICE FOR EMERGENCY MANAGEMENT
Office of Price Administration and Civilian Supply
For AM Palegra
Saturday, August 16, 1041
PM 950
Prices farmers and industrial users pay for burlap bags and other types of burlap
are expected to be reduced substantic'ly from present inflated levels as result of a
price ceiling on burlep approximately 20% below recent quotations on the New York
spot market announced today by Leon Eenderson, Administrator, Office of Price Ad-
ministration end Civilian Supply.
Burlep used in this country 10 virtually all imported from India, The material
is widely used in packaging feed, fertilizer, and agricultural and industiral prod-
ucts, and in the manufacture of floor coverings, automobiles, furniture, and other
goods. During the pest 13 months the price of burlap in New York or enroute to this
ountry has more than doubled. Prices of burlap begs have likewise shown E. very
sharp increase.
The price increase in this country has been due in part to higher prices in
Calcutta, in part to higher shipping and insurance costs, and in part to & wholly
unjustified increase in the margin between what importers pay for burlap and what
they sell it for.
The schedule of ceiling prices is in two parts, the first establishing maximume
for deliveries made on or before December 31, 1941, of 17 different constructions of
burlap and the second establiching maximum prices on the same constructions delivered
on or after January 1, 1942. The maximum prices which will go into effect January 1
are % lower than those which will prevail in the earlier period.
The maximum prices for the period ending December 31, 1941, are approximately
15% above the Calcutta prices of July 29, This markup of 15% is adequate to cover
nereased shipping end insurance costa and to maintain importers' margine at their
normal level.
Regraded Unclassified
PM 950
117
- 2 -
No ceiling action 16 being taken at present in regard to the price which
importers may pay to Calcutta suppliers. This is in line with advice of & trade
advisory group, incl uding both importers and bag manufacturere, who were consulted
by OPACS officials in preparing the price schedule. It is believed, however, that
imposition of the ceiling will have & salutary effect on prices charged for burlap
in Calcutta. Should this result fail to. eventuate further steps will be taken
romptly.
Imposition of the ceiling is also expected to produce a downward movement in
the price of second hand bags to their normal price relationship of 30 to 40% under
the prices of new bags of similar kind and quality.
Regraded Unclassified
118
TITLE 32 - NATIONAL DEVENSE
PX 950
CHAPTER XI - OFFICE OF PRICE ADMINISTRATION AND CIVILIAN SUPPLY
Part 1339 - Burlap and Burlap Products
Price Schedule No. 18 - Burlap
Burlap, virtually all of which 1s imported from India, is widely used for
packaging feed, fertilizer, and agricultural and industrial products. It is also
extensively employed in the manufacture of floor covering, furniture, and other
goods.
During the past twelve months prices of spot burlap in New York have risen
more than one hundred percent. These increases, which have raised the price of
burlap considerably above the highest prices in recent years, have added unjustifia-
ble costs to American agriculture as well as to industry and the ultimate consumer.
Accordingly, under the authority vested in me by Executive Order No. 8734, it
18 hereby directed that:
I 1339.1 Maximum Prices for Purlap. On and after August 16, 1941, regardless
of the terms of any contract of sale or purchase, or other commitment, except as
provided in @ 1339.4 hereof, no person shall sell, offer to sell, deliver, or trans-
fer burlap, and no person shall buy, offer to buy, or accept delivery of burlap at
prices higher than the maximum prices set forth in Appendix A hereof, incorporated
herein as 8 1339.11.
I 1339.2 Less than Maximum Prices. Lower prices than those set forth in
Appendix À may be charged, demanded, paid, or offered.
I 1339.3 Evasion. The price limitations set forth in this Schedule shall not
be evaded whether by direct or indirect methods in connection with B. purchase, sale,
delivery, or transfer of burlap, alone or in conjunction with any other material,
or by way of any commission, service, transportation, or other charge, or discount,
premium, or other privilege, or by tying-agreement or other trade understanding, or
otherwise.
§§ 1339.1 to 1339.11, inclusive, issued pursuant to authority contained in
Executive Order No. 8734.
Regraded Unclassified
PM 950
119
I 1339.4 Permission to Cerry Out Contracts Intered into Prior to August
16, 1941. Any person who, prior to August 16, 1941, has entered into & contract
of sale or other firm commitment celling for the delivery or transfer after that
date of burlap at prices higher than the established maximus prices, may make
application to the Office of Frice Administration and Civilian Supply, on Form
118:1 provided for that purpose, for permission to carry out such contract or
commitment at the contract price. Such permission will be granted only to the
extent necessary to protect the applicant against loss in the disposition of
inventory acquired prior to August 16, 1941, at prices higher than the estab-
lished maximum prices and held by the applicant on that date, Such application
shall be filed with the Office of Price Administration and Civilian Supply on or
before October 1, 1941.
9 1339.5 Records. Every person making purchases or sales of burlap after
August 16, 1941, shall keep for inspection by the Office of Price Administration
and Civilian Supply for a period of not less than one year, complete and accurate
records of each such purchase or sale, showing the date thereof, the name and
address of the buyer or the soller, the price paid or received, the quantity of
each kind or construction, and the type of transaction (1.e., spot or afloat).
8 1339,6 Affirmations of Compliance. On or before September 10, 1941, and
on or before the 10th day of each month thereafter, every person who, during the
preceding calendar month, has sold, or delivered, or purchased, or accepted de-
livery of burlap, shall submit to the Office of Price Administration and Civiliar
Supply an affirmation of compliance on Form 118:2 containing B. sworn statement
that during the month of all such sales, purchases, or deliveries were made at
prices in conformity with this Schedule or with any exception or modification
thereof. Copies of Form 118:2 can be procured from the Office of Price Admin-
istration and Civilian Supply, or, provided that no change is made in the style
or content of the form and that it is reproduced on 8x10}" paper, they may be
pewpared by persons required to submit affirmations of compliance hereunder.
PM
DES
I
1339.7 Informagent. In the event of refusel or failure to abide by the
price limitations, record requirements, or other provisions contained to title
Schedule, or in the event of any evasion or attempt to evade the price limitations
120 Regraded
or other provisions contained in this Schedule, this Office will make every offor)
to assure (a) that the Congress and the public are fully informed thereof, and (b)
that the powers of the Government are fully exerted in order to protect the public
interest and the interests of those persons who confrom with this Schedule. Per-
sons who have evidence of the offer, receipt, demand, or payment of prices higher
than the-maximum prices, or of any evasion or effort to evade the provisions here-
of, or of speculation or manipulation of prices of burlap for which meximm prices
are herein established, or of the hearding or accumulating of unnecessary inven-
tories thereof, are urged to comminicate with the Office of Price Administration
and Civilian Supply.
I 1339.8 Modification of the Schedule. Persons complaining of hardship or
inequity in the operation of this Schedule may apply to the Office of Price Ad-
ministration and Civilian Supply for approval of any modification thereof or ex-
ception therefrom.
I 1339.9 Definitions. When used in this Schedule, the term (a) "person" in-
cludes an individual, partnership, association, corporation, or other business
entity:
(b) "burlap" means jute burlap of the constructions listed in Appendix A when
either (1) in the United States available for immediate delivery or (11) aboard
vessels on route to the United States.
6 1339.10 Effective Date of this Schedule, This Schedule shall become
effective August 16, 1941.
e 1339.11 Appendix A - Maximum Prices for Burlap. There are two maximum
prices for the enumerated constructions or burlap established by this Schedule,
depending upon the date of actual delivery of the burlap to the purchaser. For
burlap actually delivered on or before December 31, 1941, the maximum prices
which may be paid are the prices set forth in
PM 950
121
Column I. For burlap delivered after that date, the maximum prices are the
prices set forth in Column II.
I
II
Maximum Prices for
Maximum Prices for
Deliveries made on or
Deliveries made on and
before December 31, 1941 after January 1, 1942
Construction
Prices per yard. ex dock Port of Discharge.
Daty Paid
40" 7-1/2 08.
8.406
8.00#
40" 8
02.
8.904
8.50d
40" 10
02.
11.10$
10.60#
40" 10-1/2 02.
11.50#
11.00#
36" 7-1/2 02.
7.854
7.40#
36" 8
02,
8.15#
7.70$
36" 10
02.
10.15$
9.70#
40" 9
02.
10.10#
9.65
36" 9
OZ.
9.15
8.75#
40" 12
02,
13.35$
12.70$
36" 12
02.
12.15#
11.55#
45" 7-1/2 OZ.
9.554
9.10
45" 8
0%.
10.00$
9.50#
45" 10
02.
12.50$
11.95$
32" 7-1/2 OZ.
6.95$
6.60#
23" 10
02.
9,15$
8.70#
32" 8
or,
7,25#
6.904
The maximum prices set forth above are for burlap sold or delivered in
quantities of 25 bales or more. For burlap sold in quantities of less than
25 bales the customary premiums may be charged, but in no case shall the prices
f.o.b. shipping point exceed the maximum prices set forth above plus ten percent.
The maximum prices established by this Schedule do not apply to burlap sold
in quantities of less than one bale.'
Issued this 15th day of August, 1941.
/8/ Leon Henderson
Leon Henderson
Administrator.
Certified to be & true
copy of the original
John 3. Hamm, Deputy Administrator
OFFICE FOR EMERGENCY MANAGEMENT
122
Office of Price Administration and Civilian Supply
or Inmediate Release
Saturday, August 16, 1941
PM 961
Prices of Southern pine lumber, which stands with Douglas fir at the top of the
list of primary construction caterials, are reduced roughly $3.00 per thousand board
feet from recent high levale by Price Schedule No. 19 announced today by Leon Ren-
derson, administrator, Office of Price Administration and Civilian Supply.
Simultaneously, Mr. Henderson dieclosed that ceiling prices for Douglas fir
lumber, which is generally competitive with Southern pine, will be established in
the near future. & meeting to discuss such a schedule with representatives of the
Douglas fir lumber industry hee been called by OPACS for August 20 in Portland, Ore.
The Southern pine lumber schedule will go into effect es of September 5, 1941.
Preliminary to its determination of ceiling prices, OPACS consulted with repre-
sentatives of the Southern pine lumber industry at a conference on August 6 and sub-
equently met with numerous individual members of the trade. Discussions similarly
were had with Government agencies concerned, including the Procurement Services of
the War and Navy Departments: Forest Service of the Department of Agriculture; Fed-
eral Works Administration; Department of Commerce: Division of Purchases of the
Office of Production Management; Department of Justice, and the Procurement Division
of the Treasury Department.
Xr. Registran stated that lumber prices have been a matter of serious concern
to hi- for almost B. year and have occasioned several warnings against unjustified 10-
creases. Such stability as these warnings achieved was dissipated in June of the
current year, when EL new succession of price increases began. Prices of No. 2 com-
Don boards advanced from $22.00 per thousand board feet in July, 1940, to $30.00 per
thousand, f.o.b. mill, in July, 1941. Today the cost of this and other types of lus-
ber to the general public and to the defense program io excrbitant.
OPACS ceiling action, applied to the present annual scale of lumber buying.
seans a saving to civilian consumers and to the Government of more than $20,000,000
a year. At the sale time the Southern pine lumber industry is accorded a schedule
Regraded Unclassified
- 2 -
PM 961
123
of prices adequate to permit continued profitable operations,
The price schedule applies only to sales from mills or concentration yarde.
Wholesale or retail yard prices, currently inflated, are expected to fall into line
promptly.
"If this does not occur," Mr. Henderson said, "the ceiling will be extended to
cover all wholesale and retail sales."
Coats of finishing and dressing, as well as expenses of distribution, are re-
flected in the schedule. Because of this latter factor, it is expected that mills
will continue wholesalers' margine and other discounts now prevailing. Thus, pre-
sent industry practices need not be disturbed.
Southern pine, sometimes called yellow pine, includes longleaf, slash, short-
leaf, loblolly and several other species of less importance. Southern pine lumber
1a employed in all kinds of building construction and has an important use in the
defense program, particularly for cantonments and defense housing in the South and
East.
About 95% of Southern pine is cut in ten States: Alabama, Texas, North Carolina,
Mississippi, Arkansas, Louisiana, Georgia, Florida, South Carolina and Virginia,
renking in importance in that order.
The price schedule recognizes no difference between longleaf and shortleaf pine
in the grades and types covered. Long and large timbers, which are usually made of
the longleaf variety, are excluded, as are certain other sizes. It is expected that
the prices of these sizes will fall into line with the prices for the kinds and
grades of lumber included in the schedule. Should this not follow, Mr. Henderson
stated, the schedule will be extended to take them in.
Maximum prices are established for siding, ceiling, flooring, finish, boards,
shiplap, fencing, dimension, and small timbers.
Top prices that may be charged for siding range from $20.00 for 4" drop, plain
end, to $47.00 for Grade B and better bevel-siding. Ceiling and flooring lumber ver-
tical grain, has a maximum price of $60.00 for Grade B and better, plain end, with
Regraded Unclassified
124
3 -
PM 961
range downward on lower grades. End-matched ceiling and flooring, vertical
grain, is given a top price of $52.50 for Grade B or better with similar differ-
entials on lower grades. Flat grain ceiling and flooring good down from a top
price of $43.00 on Grade B or better.
"Finish", a high grade of Southern pine generally stocked by lumber yards
for clear shelving, panelling, etc., has a price range for standard lengths in the
schedule of $51.00 to $70.00 for Orade B and better and $47.00 to $58.00 for Grade
0, all in widths of 3" to 12".
Boards, shiplap and fencing come in three base grades, known as 1, 2 and 3
common. Maximum prices in 1" I 6", 14' lengths, are $31.00 for No. 1 grade and
$26.50 for No. 2 grade. The No. 3 grade, random lengths, has a price range of $16.
to $21.00 based on width.
Ceiling prices on "dimension" lumber, using 2" I 4"s as the most representa-
tive type, range from $28.50 for No. 1 grade down to $26.00 for No. a grade in
10', 12' and 14' lengths. Random lengths in No. 3 grade have top prices of from
$18.50 to $20.00.
Small and utility timbers are priced from $26.50 for 3" I 4" No. 2 grade in 12'
to 14t foot lengths up to $42.50 on No. 1 grade 8" K 8"s in 18' to 20' lengths.
All prices quoted are for 1,000 board feet and are f.o.b. mill. In the case of
direct mill shipments, delivered prices must not exceed the ceiling price f.o.b.
mill, plus actual transportation charges to the point of delivery. In estimating
such transportation charges, it is permitted to use the standard weights adopted by
the Southern Pine Inspection Bureau.
The ceiling prices established in the schedule apply on all sales and deliver-
108 on and after the effective date, September 5, 1941, notwithstanding any then
existing contracts or commitments.
Text of Price Schedule No. 19 is attached.
Regraded Unclassified
125
TITLE 32 - NATIONAL DEFENSE
3M 961
CHAPTER XI - OFFICE or PRICE ADMINISTRATION
AND GIVILIAN SUPPLY
Part 1312 - Lumber and Lumber Products
PRICE SCHEDULE NO. 19 - Southern Pine Lumber
Southern pine lumber is widely used in the construction industry for exterior
and interior finish, framing, millwork, sheathings, floorings, and sub-floorings,
and in the manufacture of motor vehicles, low grade furniture, and household and
farm appliances. In the defense program it has been extensively employed in the
construction of cantonments, defense housing projects, and factories. The increased
use of southern pine lumber steaming from the defense program and the accompanying
expended economic activity has caused demand to exceed supply. As a consequence,
inflationary pressure has caused prices to rise greatly in excess of previously
existing industry levels. Such price increases have markedly outstripped cost
advances. Warnings to industry members to reduce prices to reasonable levels have
failed to secure more than temporary price reductions. Those producers who have
manifested & willingness to cooperate with the Government have been unable effec-
tively to keep prices down because of the large number of operatore who have con-
sistently maintained high prices. Under these circumstances, voluntary cooperation
with the request of the Office of Price Administration and Civilian Supply to
maintain reasonable prices would subject those complying with the request to unjust
discrimination.
Accordingly, under the authority vested in me by Executive Order No. 8734, it
is hereby directed that:
1312.26 Maximum Prices for Southern Pine Lumber. On and after September 5,
1941, regardless of the terms of any contract of sale or purchase, or other
commitment, no person shall sell, offer to sell, deliver, or transfer, for domestic
or export use, any southern pine lumber for shipment originating at the mill (rather
than at a distribution yard), at prices higher than the maximum prices set forth in
Appendix 4, incorporated herein as 1312.34."
Regraded Unclassified
. 1312.28 so 1312.34, inclusive issued pursuant
PM
951
126
to the authority contained In Executive Order
No. 8734
1313.27 Less than Maximum Prices. Lower prices than those set forth in Apper-
dix A. may be charged, demanded, paid, or offered."
1312.28 Evasion. The price limitations not forth in this Schedule shall not be
ovaded by unusual charges for extending credit or for early delivery, by charges for
delivery which exceed the actual cost of such delivery, by unnecessarily routing lum-
ber through a distribution yard, or by other direct or indirect methods. The seller
shall in all cases give the purchaser the option of making his own transportation
arrangements,"
1312.29 Records and Reports, Every person who, during any calendar month, shall
sell 34,000 pounds or more of southern pine lumber for shipment originating at the
mill shall keep for inspection by the Office of Price Administration and Oivilian
Seculy, for & period of not less than one year, & complete and accurate record of
every such sale made during such month, showing the date thereof, the name of the
buyer, the prices, and the quantities and grades sold. Persons affected by this
Schedule shall submit such reports to this Office as it may from time to time
require."
1312.30 Enforcement. In the event of refusal or failure to abide by the price
limitations and other provisione contained in this Schedule, or in the event of any
evasion or attempt to evade the price limitations or other provisions contained in
this Schedule, the Office of Price Administration and Civilian Supply will malce every
effort to assure (a) that the Congress and the public are fully informed thereof, (b)
that the powers of the Government are fully exerted in order to protect the public
interest and the interests of those persons who conform to this Schedule, and (a) that
the procurement services of the Government are requested to refrain from purchasing
southern pine lumber from those persons who fail to conform to this Schedule. Per-
sons who have evidence of the demand of prices above the limitations set forth, of
any evasion or effort to evado the provisions hereof, or of speculation, or manipule-
tion of prices of southern pine lumber, or the hoarding or accumulation of unnecessary
inventories thereof, are urged to communicate with the Office of Price Administration
and Civilian Supply."
127
- 3 -
PM 961
1312.31 Modification of the Schedule. Persons complaining of hardship or
inequity in the operation of this Schedule may apply to the Office of Price
Administration and Civilian Supply for approval of any modification thereof or
exception therefrom,"
1312.32 Definitione. When used in this Schedule, the term
(a) "person" means an individual, partnership, association, corporation,
or other business entity. Tue term includes, without restricting the generality
of the foregoing, any mill operator, manufacturer, commission salesman, manu-
facturer's representative, concentration yard operator, wholesaler, wholesale
distributor, wholesaler's agent, or retailer.
(b) "southern pine" means the botanical species of short leaf pine (Pinus
echinate). loblolly pine (Pinus taeda), slash pine (Pinus caribaea), longleaf
pine (Pinus palustris), or any other Pinus species known commercially au
"southern pine".
(c) "mill" means a manufacturing plant, concentration yard, or other
establishment which processes southern pine logs into lumber, or which processes,
by saving, or by planing or other comparable method, at least 25 per cent of the
southern pine lumber purchased or received by it within the 30 days immediately
prior to the transaction subject to this Schedule,
(d) "distribution yard" means & wholesale or retail lumber yard which
purchases or receives southern pine lumber from a mill or from another distribu-
tion yard for purposes of unloading, sorting, and resale or redistribution, which
regularly maintains a stock of such lumber, and which processes, by sawing, or by
planing or other comparable method, less than 25 per cent of such lumber 80
purchased or received by it within the 30 days immediately prior to the trans-
action subject to this Schedule.*
1312.33 Effective Date of the Schedule. This Schedule shall become effect-
ive September 5, 1941.*
Regraded Unclassified
128
PN 961
- 4 -
1312.34
APPENDIX A
(a) Mazimum f.o.b. mill prices per 1,000 fect board measure:
Boards, Shiplap, and Fencing
Grade
Random
Standard
B'
10'
18'
14'
16'
18' and 20'
Length
Length
Length
Length
Length
Length
Length
Longth
No. 1
1 I 3)
$31.00
$33.00
$31.00
$33.00
$33.00
$33.00
$34.50
$36.00
1 x 4)
1 x 8
31.00
31.00
31.00
31.00
31.00
31,00
32.50
36.00
1 X 8
31.00
34.00
34.00
34,00
34.00
34.00
35.50
37.00
1 x 10
33.00
35.00
35.00
38.00
35,00
35.00
36.50
38,00
1 I 12
41.00
43.00
43.00
43.00
43.00
43.00
44,50
46.00
No. 2
1 X 3)
24.00
23.00
24.50
24.50
25.00
25.00
25.50
27.00
1 x 4)
1 A 6
25,00
24.00
25.50
25,50
26.00
26.50
27.00
29.00
1 x B
25.00
24.00
25.50
25.50
26.00
26.50
27.00
29.00
1 x 10
25.50
24,50
27.00
27.50
27.50
28.00
28.50
30.00
1 x 12
26.50
25,50
28.50
26.50
23.00
29.50
30.00
33.00
No. 3
1 x 5)
1 J. 4)
16,00
1 x 6
19,00
1 x 8
20,00
1 X 10
26.00
1 X 12
20.00
For Kiln Dried, add $1.50
For Novelty Siding, all patterns, add $2.00
For odd Lengths, use the price of next highest even length.
1/
Standard Lengths are 41 to 20', inclusive, and the following percent=
age of short longths may be included in all shipmento in which the
lengths are not specifically restricted:
No. 1
5% 8-foot
No. 2
5% 4-foot
1% 6-foot
5% 8-foot
Regraded Unclassified
129
- 5 -
PM 961
Random
8'
9'
10'
12'
14'
16'
18' and 20'
Grade
Length
Length
Length
Length
Length Length Leneth Length
No. 1
2 I 3)
$28.50
$27.50
$28.50
$28.50
$28.50
$28.50
$31.00
$34.00
2 2 4)
2 I 6
28.00
36.50
27.50
27,50
28,00
28.00
28.50
32.50
a x B
29.50
28.00
29.00
29,00
29,50
29.50
32.00
35,50
2 I 10
33.50
31.00
32.50
32.50
33.50
33.50
35,50
39.50
2 I 12
36.50
33.50
35.00
35.00
36.50
36,50
39.00
43.50
No. 2
2 x 3)
26.00
26,00
25.00
26.00
26.00
26,00
27.50
29,50
a K 4)
2 R 6
25,00
25,00
25,00
25.00
25.00
25.00
26.50
28.50
2 I 8.
27.00
27.00
27.00
27.00
27.00
27.00
28.50
31.50
2 I 10
28,50
28.50
28,50
28,50
28.50
28.50
30.50
33,50
2 I 12
29.50
39.50
29,50
29.50
29.50
29.50
31.50
35.00
No. 3
2 I 3)
18,50
2 X 4)
2 I 6
18.00
2 X 8
19,00
a I 10
19,50
2 I 12
20,00
For working to Shiplap, Center Match, or Dressed and
Matched, add $1.00
For Kiln Dried, add $1.50
Timbers
12' to 14¹ Length
18' to 20' Length
Small Timbera:
No. 1
No. 2
No. 1
No. 2
3 I 4
$30.50
$26.50
$34.50
$28.50
3 R 6
31.50
27.50
35,50
29.50
4 M 4
30.50
26,50
35.00
29.00
4 x 6
31.00
27.00
35.50
29,50
Utility Timbers and
Heavy Joists:
3 I 8
35,00
28,00
39.00
31.00
3 I 10
35.50
28,50
40.00
32.00
3 I 12
37.00
30.00
41.00
33,00
4 x B
36.00
29.00
40.50
32.50
4 I 10
36.50
29.50
41,00
33,00
6 I 6
37.00
30.00
41,00
33.00
6 I 8
37.00
30.00
41,00
33.00
6 I 10
38.50
31.50
42,50
34,50
8 I 8
38.50
31.50
42.60
34,50
Regraded Unclassified
130
-6-
PM 961
Ceiling and Flooring, Plain End (no heart specification)
Standard Lengths 2/
Grade
Grade
Grade
Grade
Grade
3 & Better
0
D
No. 2
No. 3
Edge Grain:
1 X 3
$60.00
$50.00
$35.00
1 R 4
58.00
48.50
34.00
Year Edge Grain:
1 x 3
51.00
44,00
34.00
1 x 4
49.00
42.50
33.00
Flat Grain:
1 x 3
43.00
40.00
31.00
$25.00
$18.00
1 x 4
42.00
39.00
30.00
24.50
17.50
Ceiling and Flooring, Ind Matched (no heart specification)
Standard Dengths 3/
Grade
Grade
Grade
B & Better
0
D
Edge Grain:
1 x 3
$52.50
$45.50
$32.00
1 x 4
48.50
43.00
30.00
Near Edge Grain:
1 x 3
45.00
40.00
31.00
1 x 4
43.00
38.50
29.50
Flat Grain:
1 x 3
25.50
33.00
25.00
l x 4
34.00
33.00
24.00
2/ Standard lengths are 4' to 20', inclusive, and the following percentages
of short lengths may be included in all shipments in which the lengths
are not specifically restricted:
A and B
5% a and/or 9-foot
C
5% 6 and/or 7-foot
5% 8 and/or 9-foot
D and No. 2
..
5% 4 and/or 5-foot
5% 6 and/or 7-foot
5% 8 and/or 9-foot
No. 3
.....
Not to exceed 20% 4 and S-foot lengths
3/ Standard lengths of End-Mntched Flooring shall be 2' to 16', inclusive,
nested in bundles 8' and longer in multiple of 1 foot. The nominal
length of End-Matched Flooring shall be averaged to the nearest foot,
except that 19" shall be the minimum length in A, B and c, and
12" shall te the minimum in D. (Examplo: The 7-foot lengths
are above 6'6" to and including 7'6".)
Regraded Unclassified
131
- 7 -
PM 961
FINISH
Grade B & Better
Under 8'
Standard Lenrthe 1/
1 x 3" & 4"
$49.00
$51.00
1 I 6"
49.50
51,50
1 X 8"
51,50
53,50
1 x 5" & 10"
57.00
59.00
1 I 12"
68.00
70.00
Grade 0
1 X 3" & 4"
$45.00
$47.00
1 X 6''
45.50
47,50
1 X 8"¹
47.50
49.50
1 X 5" & 10"
51.00
53.00
1 I 12"
56,00
58.00
For specified lengths, add $2.00
SIDING
Standard Lengths
Grade
Grade
Grade
Grade
Grade
B & Better
C
D
No. 2
No. 3
Drop Siding:*
Plain
End
4"
$45.00
$42.00
$33.00
$28.50
$20.00
11
11
6''
45,00
42.00
33,00
28.50
20.00
11
11
8"¹
46.50
43,50
34.50
30.00
23.00
End Matched:4''
37.50
35.00
27.00
11
11
6''
37.50
35.00
27.00
11
11
8"¹
40,00
37.00
29.00
*All patterns
Bevel Siding
47.00
44,00
35.00
30.50
22,00
Standard lengths are B' to 20', inclusive, and in shipments of standard
lengths, 5% of 8-foot in "0" and better grades shall be permitted.
5/ Standard lengths are 41 to 20', inclusive, and the following percentages
of short lengths may be included in all shipments in which the lengths
are not specifically restricted:
A and B
5% 8 and/or 9-foot
C
5% 6 and/or 7-foot
5% 8 and/or 9-foot
D and No. 2
5% 4 and/or 5-foot
5% 6 and/or 7-foot
5% 8 and/or 9-foot
No. 3, not to exceed 20% 4 and 6 foot.
132
-8-
PM 961
(b) For mixed car shipments, $2.00 additional per 1,000 feet board measure may
be charged. & mixed car shipment consists of three or more of the following items of
at least 4,000 feet board measure per item, or two or more of the following items of
at least 8,000 feet board measure per item: finish, timbers, ceiling, flooring, or
siding, or any width of boards, shiplap, fencing, or dimension.
(c) A delivered price in excess of the maximum f.o.b. mill prices set forth in
(a) hereof may be charged, consisting of such maximum prices plus actual transporta-
tion costs to the extent that such costs are paid by the seller, In computing such
actual transportation costs, the parties may adopt the practice of charging a sum
equivalent to the one-quarter of a dollar nearest 40 such actual transportation coets.
In addition, they may adopt the estimated average weights of southern pine per thous-
and feet board measure(worked to standard sizes unless otherwise indicated) as
follows:
Longlesf
Shortleaf
Flooring
(Ceiling and Flooring, Plain End and End Matched)
1 I 3" (For Hollow Back deduct 100 lbs.)
2000
1800
1 x 4"
H
If
"
#
If
a
2100
1900
Drop Siding
(Siding)
1 I 6" (Pat. 116)
2000
2000
2100
2100
1 x 8" and 10" (Pat. 116)
1 I 6" (Pat. 117)
1700
1700
1800
1800
1 I 8" and 10" (Pat. 117)
1 x 6" (other patterns)
1800
1800
1 I 8" and 10" (other patterns)
1900
1900
Bevel and SE Siding from 1"
1100
1000
1400
1300
Bevel and SE Siding from 1-1/4"
The average weights shown are based upon test weights made upon large quantities of
each item of southern pine lumber manufactured by the subscribers to the Southern
Pine Association, AS set forth in 1939 Standard Specifications for Southern Fine
Lumber, of the Southern Pine Association, New Orleans, Louisiana, and adopted by
the Board of Governors of the Southern Pine Inspection Bureau of the Southern Pine
Association on May 28, 1940, 8.0 the official grading rules of the Bureau.
Regraded Unclassified
- 9 -
PM 961
133
Strips and Boards (1 inob)
(Soards. Shipimp, remoined and Finish)
Loneleef
Thortleaf
1 1 2ª to 1 I 10" $18 or 828 25/32"
2700
2500
1 1 12
518 or 828 25/32
2:00
2600
1 1 2ª to 1 M 10" STS or 846 25/32"
2600
2400
1 x 12"
539 or S4S 25/32"
2700
2500
1 1 2" to 1 I 4ª D&M
2100.
1900
1 I 6"
D&M or Shiplap
2400
2000
1 I 8" to 1 H 10" D&M or Shiplap
2500
2700
1 I 12"
D&M or Shiplap
2600
2.00
1 I 2" to 1 I 10" Rough
3400
2230
1 I 12"
Rough
3500
3300
For 3/4" dressed boards deduct
100
100
for 5/8" boards, all workings, deduct
500
500
For 11/16" boards, all workings. deduct
300
300
For 13/16" boards, all workings, add
100
100
For resawing, deduct for each out
200
200
For Ripping, no deduction
For 1-1/4" and 1-1/2", add
300
300
2ª Dimension, Factory Flooring. and Roof Decking
(Disension)
2 I 2ª to 2 I 8" Rough
3400
3300
2 X 10° & 2 I 12" Rough
3500
3400
I 2" to 2 I 8" Dragged to 1-5/8"
2700
2500
2 I 10" & 2 = 12" Dressed to 1-5/8"
2800
2600
For 1-3/4" add
400
400
for IMM, SL & Gr. for Splines, deduct
200
200
2 I 4" to 2 I 12" Rough green
4500
4500
2 I 4" to 2 I 12" green, dressed 1-5/8*
3800
3800
Heavy Joista, Timbers, etc. (over 2" thick)
(Timbers)
Rough, green
4500
4500
548 1/4" scant, green
4200
4200
548 3/8" scant, green
4000
4000
548 1/2" scant, green
3800
3800
T&G, SL & Gr, for splines, deduct
300
300
Issued this 16th day of August, 1941.
loon Handerson
Administrator
CERTIFIED TO BZ & TRUE COPY OF THE ORIGINAL
John 1. Eann, Deputy Administrator
Regraded Unclassified
OFFICE FOR EMERGENCY MANAGEMENT
134
Office of Price Administration and Civilian Supply
For Immediete Release
August 16, 1941
PM 962
Manufacturers using certain forms of wrought aluminum will be able to make
more uniform arrangements for reconversion of their scrap into finished material
under B. provisional amendment to Price Schedule No. 2, Aluminum Scrap and Second-
ary Aluminum Ingot, announced today by the Office of Price Administration and
Civilian Supply.
The amendment, which broadens the exemption of toll fabrication from the
schedule, was decided upon after consultation with the Division of Priorities,
Office of Production Management. It is not expected to alter the present flow
of scrap.
Heretofore, the price schedule operated to oblige converters to charge a
higher conversion fee for some forms of wrought aluminum plant scrap, especially
sheet scrap, than for others. As result of the amendment, the same low fee can
be charged for all types of wrought scrap, other than forging scrap, thus per-
mitting the converter to reflect his lower costs of handling this type of scrap
as compared with the ordinary run of unsegregated material. Provision 18 made
to prevent toll charges from rising out of proportion to the existing prices for
scrap and ingot.
To obtain the benefit of the amendment, wrought aluminum scrap, excluding
forgings, must be segregated as to alloy and delivered by the make of the scrap
to a processor for reconversion into material similar to that from which the
scrap was derived and pursuant to A written agreement for the return of an equiv-
alent amount of refabricated material. Further, the toll agreement must be ap=
proved by the Director of Priorities.
The policy of encouraging return of high-grade segregated ecrap to the 07-
iginal source BO a.B to avoid degrading the metal and its diversion to non-essen-
tial uses in thus fostered.
Scrap from aluminum castings 16 not included in the amendment.
Regraded Unclassified
135
2X 962
Text of the amendment follows:
TITLE 32 - NATIONAL DEFENSE
CHAPTER II - OFFICE OF PRICE ADMINISTRATION
AND CIVILIAN SUPPLY
Part 1302 - Aluminum Borep and Secondary Aluminum Ingot
AMENIMENT OF PRICE SCHEDULE NO. 2
Price Schedule No. 2, establishing maximum prices for aluminum
scrap and secondary aluminum ingot, is hereby amended, effective August
13, 1941, by striking Section 1302.5 therefrom and substituting in its
place the following:
1302.5. Conversion of Scrap of Behalf of a Maker.
The Maximum prices herein established shall have no application to
the sale, delivery, or transfer of plant scrap, made from wrought aluminum
(except forgings) as distinguished from cast aluminum, which is segregated
as to alloy and is delivered, in accordance with permission or requirement
of the Director of Priorities, Office of Production Management, by the
maker of the scrap to a producer of the type of processed material from
which the scrap was made, for conversion into material of such type, and
pursuant to a written agreement that an equivalent amount of similar pro-
cessed material will be returned to the maker of the scrap; provided,
however, that the total charge for such conversion and such returned pro-
cessed material shall not exceed the sum of (a) the amount by which the
current price of primary aluminum ingot exceeds the maximum price for the
scrap as set forth in Column II of Appendix A of this Schedule plus (b) the
amount by which the current price of the returned processed material exceeds
the current price of primary aluminum ingot plus (c) the amount paid for
the scrap in any case in which the transaction takes the form of a purchase
of scrap and a sale of processed material."
Section 1302.5 issued pursuant to authority contained
in Executive Order No. 8734.
Issued this 14th day of August, 1941.
Leon Henderson
Administrator
CERTIFIED TO BE A TRUE COPY OF THE ORIGINAL:
John 1, Hamm
Deputy Administrator
Regraded Unclassified
136
OFFICE FOR EMERGENCY MANAGEMENT
OFFICE OF PRICE ADMINISTRATION AND CIVILIAN SUPPLY
For Tuesday AM Papers
PM 969
August 19, 1941
Copper scrap, which has been selling at levels completely out of line with
the price of copper, is restored to a fair relationship in Price Schedule No. 20,
announced today by Leon Henderson, Administrator, Office of Price Administration
and Civilian Supply,
The scrap ceiling establishes price differentials of from 2 centa to 4 cente
a pound below 12-cent copper for the leading kinds and grades of scrap. A uniform
dealers' margin of 3/4-cent a pound for collecting, sorting. storing and shipping
is aled allowed,
Scrap copper is & basic material in the production of electrolytic copper
and copper and copper-alloy ingot, which are essential to the defense program and
civilian industry. Scrap prices in recent months have been bid up to & point
where the usual spread between scrap and copper has been greatly altered and cust
tom smelters and brass ingot makers have been largely deprived of their usual
supplies. This situation, if allowed to continue, would have forced defense
users of copper, which is subject to priority control, to draw more heavily on
supplies of new metal, Thus, allocation problems would have multiplied to the
detriment of the defense effort and industry at large.
Top prices are fixed in the schedule at 10 cente per pound for No. 1 copper
wire and No, 1 heavy copper; 9 cents a pound for No. a copper wire and mixed
heavy copper (each containing 96% of copper). and 8 cents a pound for light copper
(containing 92% copper). These maximume apply to sales by "makers" of scrap,
delivered to the buyer's plant or warehouse.
As heretofore stated, dealers are allowed a 3/4-cent per pound margin above
the foregoing prices for collecting, sorting, storing and shipping the types of
raded Unclassified
137
-2-
PM 969
scrap covered in the schedule.
A premium of one-half cent a pound may be charged by makers only, on ship-
ments aggregating 40,000 pounds or more and made at one time. This premium
recognizes the practice of certain large makers of returning their scrap directly
to a user,
If quantity deliveries are made by truck, a shipment of 40,000 pounds will
be considered to have been made "at one time" ir such an amount is delivered to
the buyer within two days after the first part of the shipment is picked up by
truck.
A differential of 0,11775 cent per pound may be added to or subtracted from
the ceiling prices for each 1% variation above or below the copper content of
96% in the case of No. 2 copper wire and mixed heavy copper, and 92% in the case
of light copper, with proportionate adjustments for variations of less than 1%.
The schedule prices will applyon and after August 19, 1941, irrespective of
existing contracts. However, application may be made to OPACS for permission to
carry out prior arrangements in cases where losses may result in the disposition of
inventory acquired prior to August 19, 1941, at higher than the maximum prices.
A time limit of October 19, 1941, is fixed for the filing of such applications.
Text of the schedule is attached.
Regraded Unclassified
138
TITLE 32 - NATIONAL DEFENSE
PM 969
CHAPTER II - OFFICE OF PRICE ADMINISTRATION
AND CIVILIAN SUPPLY
PART 1309 - COPPER AND COPPER ALLOYS
Price Schedule No. 20 - COPPER SCRAP
The Office of Price Administration and Civilian Supply is charged with the
maintenance of price stability and the prevention of undue price rises and price
dislocation. Copper scrap is a basic material for the production of electrolytic
copper, copper ingot and copper alloy ingot, all of which are importent in the man-
ufacture of many defense products. Requirements of the defense program have in-
creased the demand for copper scrap causing its price to rise above levels which
are in proper relation to the price lovel of primary materials. Price instability
and dislocations injurious to the national defense and civilian economy have re-
sulted. As a consequence, it has become difficult and in some cases impossible for
the trado to cooperate with the Government in preventing inflationary price move-
ments, On the basis of information secured by independent investigation by this
Office, and after consultation with the trade, I find that the maximum prices set
forth below constitute reasonable limitations on the price of copper scrap.
Therefore, under the authority vested in ne by Executive Order 8734, it is
hereby directed that:
1309.61, Maximum Prices for Copper Scrap Sold by the Maker Thereof, On and
after August 19, 1941, regardless of the terms of any contract of sale or purchase
or other commitment, except as provided in Section 1309.64 below, no maiter of
copper scrap shall sell, offer to sell, deliver, or transfer copper scrap made by
him and no person shall buy, offer to buy, or accept delivery from the maker of such
copper scrap at prices higher than the prices set forth in Column I of Appendix A
hereof, incorporated herein 8.8 Section 1309.70.
Regraded Unclassified
138
TITLE 32 - NATIONAL DEFENSE
PM 969
CHAPTER XI - OFFICE OF PRICE ADMINISTRATION
AND GIVILIAN SUPPLY
PART 1309 - COPPYA AND COPPER ALLOYS
Price Schedule No. 20 - COPPER SCRAP
The Office of Price Administration and Civilian Supply is charged with the
maintenance of price stability and the prevention of undue price rises and price
dislocation. Copper scrap is a basic material for the production of electrolytic
copper, cooter ingot and copper alloy ingot, all of which are importent in the nen-
ufacture of many defense products, Requirements of the defense program have in-
creased the demand for copper scrap causing its price to rise above levels which
are in proper relation to the price lovel of primary materials. Price instability
and dislocations injurious to the national defense and civilian economy have re-
sulted. As FL consequence, it has become difficult and in some cases impossible for
the trade to cooperate with the Government in preventing inflationary price move-
ments, On the basis of information secured by independent investigation by this
Office, end after consultation with the trade, I find that the maximum prices set
forth below constitute reasonable limitations on the price of copper scrap.
Therefore, under the authority vested in ne by Executive Order 8734, it 10
hereby directed that:
1309.61, Maximum Prices for Copper Scrap Sold by the Maker Thereof, On and
after August 19, 1941, regardless of the terms of any contract of sale or purchase
or other commitment, except as provided in Section 1309.64 below, no maker of
copper scrap shall sell, offer to sell, deliver, or transfer copper scrap made by
his and no person shall buy, offer to buy, or accept delivery from the maker of such
copper scrap at prices higher than the prices set forth in Column I of Appendix A
hereof, incorporated herein as Section 1309.70.
Regraded Unclassified
139
Ell 969
2 -
r prices then those set forth in Column I of Appendix 1 may, however, be charged,
demanded, paid or offered.
1309.61 to 1309, 70, inclusive issued pursuant to the
authority contained in Executive Order No. 6734.
1309.62. Maximum Prices for Copper Scrap Sold by Persons Other Than the Maker,
Ca and after August 19, 1941, regardless of the terms of any contract of sale or
purchase or other commitment, except as provided in Section 1309.64 below, no person
other than the maker of the copper scrap sold, offered for sale, delivered, or trane-
ferred, shall sell, offer to sell, deliver or transfer copper scrap and no person
shall buy, offer to buy, or accept delivery of copper scrap from any person other
than the maker of such copper scrup, at prices higher than the prices set forth in
Column II of Appendix A. Lower prices than those set forth in Column II of Appendix
& say, however, be charged, demanded, paid or offered.*
1309.63. Evasion. The price limitetions set forth in this Schedule shall not
be evaded whether by direct or indirect means in connection with a purchase, sale,
delivery or transfer of copper scrap, alone or in conjunction with any other mater-
ial, or by way of any commission, service, transportation or other charge or discount
premium, or other privilege or by tying agreement or other trade understanding or
otherwise,'
1309.64 Permission to Carry out Contracts Entered into Prior to August 19,
1941. Any person who has, prior to August 19, 1941, entered into a contract of
sale or other firm commitment calling for the delivery or transfer, after that date,
of copper ecrap at prices higher than the maximum prices established by this Sched-
ule may make application to the Office of Price Administration and Civilian Supply
on forms which will be furnished upon request, for permission to carry out such con-
tract or commitment at the contract price. Such permission will be granted only to
extent necessary to protect the applicant against loss in the disposition
of inventory acquired prior to August 19, 1941 at prices higher than the
Regraded Unclassified
140
- 3 -
PM 969
seximum prices established by this Schedule and held on that date by (a) the
applicant. or (b) any other person for delivery to the applicant under R firm
commitment entered into with the applicant prior to August 19, 1941. Such appli-
cation shall be filed with the Office of Price Administration and Civilian
Supply on or before October 19, 1941.
1309.65. Records. Every person making purchases or sales of copper
scrap after August 19, 1941, shall keep for inspection by the Office of Price
Administration and Civilian Supply, for B period of not less than one year,
complete and accurate records of (e) each such purchase or sale showing the
date thereof, the name and address of the buyer or seller, price paid or
received, and the quantity in pounds or tons of each kind or grade purchased or
sold: and (b) the quantity in pounds or tone of copper scrup (1) on hand, and
(11) on rder as of the close of each calender month.
1309.66. Enforcement. In the event of refusal or failure to comply
with the price limitations, record requirements or other provisions contained
in this Schedule or in the event of any evasion or attempt to evado price
regulations or other provisions contained in this Schedule this Office will
malte every attempt to assure: (a) that the Congress and the public are fully
informed of any failure to abide by the provisions of this Schedule and (b) that
the powers of the Government arefully exerted in order to protect the public
interest and the interests of those persons who conform to this Schedule.
Persons who have evidence of the offer, receipt, demand or payment of prices
higher then the maximum prices established by this Schedule, or of any evasion
or effort to evade the provisions hereof or of speculation, or manipulation of
the prices of copper scrap or of the hoording or accumulation of unnecessary
inventory thereof are urged to communicate with the Office of Price
Administration and Civilian Supply.
1309,67. Modification of the Schedule. Persons complaining
Regraded Unclassified
141
PM 969
of hardship or inequity in the operation of this Schedule may apply to the Office
of Price Administration and Givilian Supply for approval of any modification
thereof or exception therefrom."
1309,68. Definitions. When used in this Schedule the term
(a) "Person" includes en individual, partnership, association,
corporation, or other business entity.
(b) "Copper scrap" means the kinds and grades of scrap set
forth in Section 1309.70 of this Schedule.
(c) "Make of copper scrap means the person who first sells,
offers for sale'or delivers copper scrap such 80 (1) any manufacturer, fabricator,
or other industrial user of copper who, as an incident to his manufacturing pro-
cees, fabricating or other industrial uses, produces copper scrap or (11) any per-
son who, in his business or as an incident to his business, demolishes or dis-
mentles structures, machinery, vehicles, equipment, or power, telegraph and tele-
phone lines, and removes copper scrap therefrom for the purpose of sale,*
1309.69. Effective Date of the Schedule. This -schedule shall be effect-
1ve August 19, 1941.
1309.70. Appendix A - Maximum Prices for Couper Scrap, For the purposes
of this Schedule, each kind or grade of scrap herein set forth shall include all
types and qualities of scrap falling within the broad category named. However,
the meximum prices herein net forth are applicable to the principal kinds or
grades of copper scrap which meet generally accepted maximum standards in the
trade as, for instance, the classifications in the Standard Classification for
Old Metals, Circular "0", of the National Association of Waste Material Dealers,
Inc., effective as of June 1, 1940. Scrap which fails to meet such standards
should be sold at normal differentials below the established maximum prices,
Regraded Unclassified
- 5 -
PM 969
142
Kind or Grade of Boran
Marimum Prices per Pound of Material
Deliyered Buyer's Plant or Verehouse
Column I
Column II
Sale by Maker
Sale by Other than Maker
No. 1 copper wire
10#
10 3/44
No. 1 heavy copper
10$
10 3/44
No. 2 copper wire
(containing 96% copper)
94
9 3/44
Mixed heavy copper
(containing 96% copper)
9d
9 3/44
Light copper
(containing 92% copper)
8#
8 3/4#
If the copper content of No. 2 copper wire or mixed heavy copper is more
or less than 96%, the maximum price per pound of material set forth above shall be
increased or decreased at the rate of 0,11775 cente for each 1% vaiation in the
copper content with proportionate adjustments for variations of less than 1%.
If the copper content of light copper is more or less than 92%
theirmximmprice per pound of material set forth above shall be increased or
decreased at the rate of 0.11775 cente for each 1% variation in the copper content
4th proportionate adjustments for variations of less than 1%.
QUANTITY DIFFERENTIAL ON SALE BY MAKER
Premium on shipment of 40,000
pounds or more at one time
1/20 per pound
The shipment necessary to obtain the quantity differential may be made
up of one or more of the kinds of copper scrap listed in this section. If delivery
is made by truck; B. shipment of 40,000 pounds will be considered to have been made
"st one time" for the purposes of this Schedule, if such amount is delivered to
the buyer within two days after the first portion of the shipment 18 picked up by
truck.
The quantity differential applies only to sales by makers and not to
bales by other than maker.*
Issued this
18 th day of August, 1941.
Leon Henderson
Administrator
CERTIFIED TO BE A TRUE COPY OF THE ORIGINAL
John B. Harm, Deputy Administrator
143
OFFICE FOR EMERGENCY MANAGEMENT
Office of Price Administration and Civilian Supply
For Wednesday AM release
PM 976
August 20, 1941
Because only a slight hosiery mill demand for acetate rayon yarn has
developed, the Office of Price Administration and Civilian Supply today amended
its rayon yarn allocation program to release virtually all of the acetate yarn
thus far accumulated by rayon yarn producers for sale to manufacturers of hosiery.
Rayon filaments fall into three general categories; viscose, cuprammonium
and acetate, depending on the process used in their production. The OPACS allo-
cation program, which was designed to provide hosiery mills and other former
users of silk with sufficient supplies of rayon yarn to enable them to continue
operations, made no distinction among the three types.
Hosiery manufacturers have found the viscose and cuprammonium yarn to be
more satisfactory for the knitting of hosiery and, hence, have not drawn upon
the stocks of acetate yarn thus far set aside for their benefits.
Rather than require the retention of this acetate yarn until the end of
the current month, when re-distribution would be permitted automatically under
terms of the original program, OPACS has decided to release for immediate sale
95% of the acetate yarn accumulated for use by hosiery manufacturers.
That part of the program which dealt with the setting aside of rayon yarn
for former users of silk, other than hosiery manufacturers, is not affected by
the new amendment, and accumulation of such yarn, whether acetate, viscoss, or
cuprammonium, is still required.
Text of the amendment is attached.
144
PM 975
TITLE 32 - NATIONAL DEFENSE
CHAPTER XI - OFFICE OF PRICE ADMINISTRATION AND CIVILIAN SUPPLY
PART 1337 - Rayon
Civilian Allocation Program for Rayon Yarn
Section 1337.1, as amended, is hereby further amended by adding
at the end thereof the following:
Provided, further, that during the period from the date of this
program to midnight August 31, 1941, 95% of that portion of the above 70%
that consists of acetate rayon yarn may be disposed of immediately and
without restriction, but nothing herein shall be deemed in any way to
alter the requirements of 1337.3 hereof.
Issued this 19th day of August, 1941.
/s/
Leon Henderson
Administrator
Certified to be a true copy of the original
/=/
John E. Hamm
Deputy Administrator
Regraded Unclassified
OFFICE FOR EMERGENCY MANAGEMENT
145
Office of Price Administration and Civilian Supply
ismediate Release
PM 977
the 19, 1941
Allocation of available supplies of Freon refrigerant gases to usere and manu-
facturers of civilian refrigeration and air-conditioning equipment in the order of
relative importance to the public welfare is directed in a program announced today by
the Office of Price Administration and Civilian Supply.
Freon is the proprietary name for several types of chlorinated hydrocarbon re-
frigerants produced only by Kinetic Chemicals, Inc., B. du Pont subsidiary. These are
used in several types of domestic refrigerators, as well as in commercial and indus-
trial equipment and in all types of air-conditioning equipment, including railroad
cars. Freon is manufactured from carbon tetrachloride, which in turn is made from
chlorine. Heavy defense needs for this basic chemical have caused a shortage in
city of its derivatives,
& senior classification is assigned in the program to maintenance of all types
of refrigerating equipment now operating and existing air-conditioning equipment in
hospitals, clinice, and sanitoria requiring Freon refrigerants.
Maintenance of industrial air-conditioning equipment already installed ranks
next in preference, followed by maintenance of other air-conditioning equipment, their
by manufacture of new refrigeration and air-conditioning equipment.
Current supplies of Freon are expected to be adoquate for the maintenance of all
installed refrigeration and air-conditioning equipment, but some doliveries for new
units my have to be deferred until the summer ice cream and air-conditioning season
In passed.
Cooperation of Fresh consumers in ossential if equitable allotment of available
applies 1a to be achieved. OPACS suggests that (1) reasonable requirements should
be enticipated, but shipment of more than c. 30 days' supply should not be requested;
(3) empty cylinders should be returned promotly, and (3) "pooline" of ordors by se-
*Ato units of one ostablishment should be undertaken where feasible to reduce the
=bar of cylinders required and to keep inventories from becoming excessivo.
The program, which will expire December 31, 1941, unless sconer terminated, will
to administered by the Division of Priorities, Office of Production Management.
Text if the program is attached,
Regraded Unclassified
PM 977
146
TITLE 32 - NATIONAL DEFENSE
CHAPTER XI - OFFICE OF PRICE ADMINISTRATION AND CIVILIAN SUPPLY
PART 1335 - CHEMICALS
Civilian Allocation Program for Chlorinated
Hydrocarbon Refrigerents
The total defense and civilian demand for certain chlorinated hydro-
carbon refrigerants is in excess of the available supply. It is necessary, there-
fore, after military defense needs are satisfied, to provided for the equitable
allocation of the residual supply among competing civilian demands.
Accordingly, pursuant to and under the authority vested in me by
Executive Order No. 8734, particularly Section 2(a) thereof, the following program
In announced:
1235.31 Allocation of Materials. Civilian uses of those chlori-
nated hydrocarbon refrigerants enumerated in 1335.32 hereof shall be divided into
(
four classifications as set forth in 1335.33 hereof, To the extent that supplies
of these refrigerants are available for allocation among competing civilian demands,
supplies for civilian uses enumerated under Classification A shall be given primary
preference. If it appears, in any month, that the available supply for that month
vill exceed the amount estimated to be required for the uses enumerated under
Classification A, supplies for civilian uses enumerated under Classification B
shall be given secondary preference. If it appears, in any month, that the avail-
able supply for that month will exceed the amount estimated to be required for the
uses enumerated under Classifications A and B, supplies for civilian uses enumerated
under Classification C shall be given tertiary preference. If it appears, in any
month, that the available supply for that month will exceed the amount estimated to
be required for the uses enumerated under Classifications A, 3, and c, the residual
sup-ly shall be divided among users enumerated under Classification D. If it
appears, in any month, that the available supply for any Classification is less
than the existing demand in that Classification, producers of such refrigerants
shell allocate the available supply ratably among the users in accordance with the
Regraded Unclassified
147
PM 977
- 3 -
1335.35 Enforcement. The foregoing program is to be administered
and enforced by the Office of Production Management.*
1335.36 Effective Date and Expiration. This program shall take
effect on August 15, 1941 and shall, unless sooner terminated by the Administrator,
expire on December 31, 1941.*
Issued this 15th day of August, 1941.
Leon Henderson
Administrator
Certified to be a true
copy of the original.
John E, Hamm
Deputy Administrator
OFFICE FOR EMERGENCY MANAGEMENT
148
Office of Price Administration and Civilian Supply
For Immediate Release
hursday, August 21, 1941
PM 981
Action to curb the exploitation of civilian users of formaldohyde by certain
dealers who have been charging as much as 47 cents B. pound, against manufacturers'
rices of 6 cents a pound for comparable quantities, was taken yesterday by Leon
lenderson, Administrator of the Office of Price Administration and Civilian Supply.
through the imposition of ceiling prices.
Maximum prices established by the schedule range from 4,25 cents to 9.5 cents a
pound, f.o.b. the five major shipping points, with freight oqualization, end are
based upon the highest list prices now being charged by the leading manufacturers.
The schedule does not apply to sales of formaldehyde in containers below 45 pounds,
A shortage in supplies of formaldehyde, previously recognized by OPACS in its
allocation program designed to reduce non-essential uses of the chemical, has result-
ed from the heavy demends of defense and civilian industry for synthetic resins.
Jespite the shortage, nanufacturers have maintained their prices at reasonable levels
as have most joboors and dealers. Unfortunately, however, there are in the trade
some concerns which have successfully profiteered in formaldehyde.
While this speculation at present involves only a small percentage of formalde-
hyde sales, it is spreading rapidly and, if unchecked, will extend over a substantial
part of the total surplies. Price stability under such circumstances would be on-
preered.
The schedule allows a premium of one cent B pound over the ceiling prices for
declars and suppliers selling fo waldehyde from local stocks. Any charges in excess
of this margin, Mr. Henderson stated, will result in prompt action by OPACS directed
at the profiteers,
Formaldehyde is essential to the manufacture of synthetic resins for plastics
and molding compounds, widely used in defense activities and civilian industry. In
addition, it is important to agriculture, and to such industrial processes as the
anuf-cture of textiles and wallnaper.
In determining the maximum prices, OPACS consulted with the leading producers
of the chemical, as well AS some of the larger wholesalers.
Text of the price schedule is attached.
Regraded Unclassified
149
AND 32 - NATIONAL 01/19
PM 981
CHAPTER II - OFFICE OF PRICE AIMINISTRATION AND CIVILIAN SUPPLY
Part 1335 Chemicals
Price Schedule No. 21 - Formaldehyde
Increasing demands for formaldehyde in the manufacture of synthetic resins for
military and civilian needs have created & shortage of supply. Speculators have
taken advantage of this situation to raise the resale price of appreciable quan-
tities of formaldehyde to se high as 474 per pound, contrasted with the manufac-
turers' price of 6# per pound for comparable quantities. These speculative prices
are threatening to rise to even higher levels. It is necessary to curb such spec-
ulation in order to protect consumers, to eliminate the danger of price rises in
other industries that use formaldshyde, and to premote stable contractual relation-
ships,
Accordingly, under the authority vested in me by Executive Order No. 8734, it
hereby directed that:
1335.51. Maximum prices for formaldehyde. On and after August 20, 1941, re-.
gardless of the terms of any contract of sale or purchase, or other commitment, no
person shall sell, offer to sell, deliver or transfer, formaldehyde in containers
of 45 lbs. or more, and no person shall buy, offer to buy, or accept delivery of,
formaldehyde in containers of 45 lbs. or more, at prices higher than the maximum
prices set forth in Appendix A, incorporated herein B.B. Section 1335,60.*
1335,52. Loss than Maximum Prices. Lower prices than those set forth in
Appendix A may be charged, demanded, paid or offered."
1335.53. Evasion. The price limitations set forth in this Schedule shall not
be evaded whether by direct or indirect methods in
Sections 1335.51 to 1335.60, inclusive, issued pursuant to authority contained
in Executive Order No. 8734.
- 2 -
150
PM 981
connection with a purchase, sale, delivery. or transfer, of formaldehyde, or
in connection with a purchase, sale, delivery or transfer of any other material,
or by way of any commission, service, transportation, or other charge, or discount,
premium, or other privilege, or by tying-agreement or other trade understanding,
or otherwise."
1335.54. Records. Every person making purchases or sales of formal-
dehyde in containers of 45 lbs. or more shall keep for inspection by the Office
of Price Administration and Civilian Supply for a period of not less than one
year complete and accurate records of each such purchase or sale, showing the
date thereof, the name and address of the buyer or the seller, the prices paid
or received, and the specifications and quantity, including the size of the con-
tainers, of the formaldehyde purchased or sold."
1335.55. Affirmations of Compliance. On or before September 10, 1941,
and on or before the 10th day of each month thereafter, every person who, dur-
ing the preceding calendar month, has sold formaldehyde in containers of 45 lbs.
or more, whether for immediate or future delivery, shall submit to the Office of
Price Administration and Civilian Supply, an affirmation of compliance on Form
121:1, containing a sworn statement that during such month all such sales were
made at prices in compliance with this Schedule or with any exception or modifi-
cation thereof. Copies of Form 121:1 can be procured from the Office of Price
Administration and Civilian Supply, or, provided that no change is made in the
style and content of the Form and that it is reporduced on 8 % 104° paper, they
may be prepared by persons required to submit affirmations of compliance hereunder."
1335.56. Enforcement. In the event of refusal or failure to abide. by
the price limitations, report requirements, or other provisions contained in this
Schedule, or in the event of any evasion or attempt to evade the price limitations
or other provisions contained in this
Regraded Unclassified.
PM 981
151
- 5 -
Schedule, the Office of Price Administration and Civilian Supply will
nake every effort to assure (a) that the Congress and the public are
fully informed thereof, and (b) that the powers of the Government are
fully exerted in order to protect the public interest and the interests
of those persons who comply with this Schedule. Persone who have
evidence of the offer, receipt, demand or payment of prices higher than
the maximum prices, or of any evasion or effort to evade the provisions
hereof, or of speculation, or manipulation of prices of formaldehyde,
or of the hoarding or accumulating of unnecessary inventories thereof,
are urged to communicate with the Office of Price Administration and
Civilian Supply."
1335.57. Modification of the Schedule. Persons complaining
of hardship or inequity in the operation of this Schedule may apply to
the Office of Price Administration and Civilian Supply for approval of
any modification thereof or exception therefrom."
1335,58. Definitions. When used in this Schedule, the term
(a) "person" means an individual, partnership, association,
corporation. or other business entity;
(b) "formaldehyde" means (1) U.S.P. solution of formaldehyde
(37% formaldehyde by weight) or (2) any other solution of formaldehyde
except lots or quantities sold for commercial use 6.6 embalming fluids;
(c) "producer's shipping point" means any of the following
points: Garfield, N. J., Perth Amboy, N. J., West Haverstraw, N. Y.,
or Tallant, Oklahoma.*
1335.59. Effective Date of the Schedule. This Schedule
shall become effective August 20, 1941.*
Regraded Unclassified
PM 981
152
1335.60, Appendix A
Maximum Prices for Formaldehyde Shipped from Producers' Shipping
Points.
Quantity in pounds and Containers
Price per lb. FOB New York, N.T.
or West Haverstraw, N. Y. or Gar-
field, N.J. or Porth Amboy, N.J.
or Tallant, Oklahoma, freight
equalized.
carload lots
less-than-
carload lots
Tanks cars (70,000-72,000 1bs.)
$.0425
---
Tank truck or wagon
-
$.0450
Drums (475 1bs.)
$,0540
$,0590
Barrels (450 100.)
$.0575
$.0625
Regs (225 lbs.)
$.0675
$.0725
Half Barrel (225 1bs.)
$.0675
$.0725
Barrels (200 lbs.)
$.0725
Keg (125 1bs.)
$.0700
$.0750
Carboys (100 1bs.)
$.0600
$,0650
Kege (90 1bs.)
$.0750
$,0800
Kege (60 lbs.)
$.0800
$.0850
Carboys (45 lbs.)
$.0700
$.0750
Drums (45 1bs.)
$.0850
Kegs (45 lbs.)
$.0900
$.0950
The maximum price which B. purchaser may pay under this Schedule for
formaldehyde shipped to him from B. producer's shipping point shall not exceed the
maximum price set forth above plus freight to destination from New York, N. Y.,
West Haverstraw, N. Y., Garfield, N. J., Perth Amboy, N. J., or Tallant, Oklahoma,
whichever is less.
In no case shall the price of any quantity of formaldehyde sold in con-
tainers holding 45 lbs. or more, but not listed above, exceed the meximum price
set forth above for a container holding the next greater quantity.
Maximum Prices for Formaldehyde Delivered from Local Stocks.
The maximum price for formaldehyde delivered from local stocks maintained
at points other than producers' shipping points shall not exceed a price ex-sella
er's warehouse greater than the maximum prices set forth above plus freight to
seller's warehouse from New York, N. T., Weet Haverstraw, N. Y., Garfield, N. J.,
Perth Amboy. N. J., or Tallant, Oklahoma, whichever 1e less, plus one cent per
pound.
Issued this 20th day of August, 1941.
Certified to be 8. true
copy of the original
Leon Henderson,
John E. Hamm,
Administrator
Deputy Administrator
Regraded Unclassified
158
N
ECONOMIST
AUGUST 23. 1941
CHINA CURPENCY BOARD IN ACTION
Following the recent appointment of Mr. 2. L. Hall-Patch A9 the
British representative, the new Chinese Currency Stabilisation Fund
to administer the sterling and dollar credits has at last started
operations. Its initial intervention WSB particularly well-timed,
having served not only to restore some reality to the Shanghai for-
orga exchange market, but also to bring about a recovery in the
Shanghai dollar. Before the Fund intervened, the market rate for
sterling had fellen ae low as 2-7/8d. The official rate are been
fixed as high 0.6 3-5/16d., though the merchant rate in the market
remains in the neighbourhood of 3d. Under present conditions, the
fixing of rates above the market level would be calculated to cause
N. severe drain on the Fund's capital resources in anything like a
free exchange market. It good without saying, therefore, that ex-
change will not be available at these rates to all comers, but only
for certain vermitted transactions, which include payment for bons
fide imports into China from the United States and the sterling area,
personal expenditure, and genuine (as distinct from speculative) con-
tractual obligations. In discriminating between applicants for ex-
change, the control will be assisted by the recent freezing orders.
since each applicant is required to make a separate application.
uite apart from the need for discrimination on political grounds
and to conserve resources. a selective policy would have been in-
posed by the conditions under which the sterling credit was originally
granted. It will be recalled that support of the Chinese currency VSS
to be nade dependent on suitable arrangements to ensure that the ster-
ling released does not find its way to the free market for conversion
into dollars. thus involving the British Treasury in a loss of gold.
For the time being, decisions as to the granting of exchange will be
made on behalf of the Stabilisation Board by the various British and
American banks in the Far East. The fact that the Hongkong and
Shanghai Banking Corporation is prominent among these banks is of-
ficient refutation in itself of the Japanese report that this bank
is closing its Par Eastern branches. which bas been emphatically de-
nied by the chief manager.
Copy wect9-13-41
Regraded Unclassified
For M168 Chauncey
153
August 23. 1941. a
CONFIDENTIAL
Dear Mr. Knoke:
Permit no to acknowledge for the Secretary the
receipt of your letter of August 21, 1941, emelosing your
compilation for the week ended August 13, 1941, showing
dollar disbursements out of the British Empire and Fremch
accounts at the Federal Recerve Bank of New York and the
means by which these expenditures were financed.
Faithfully yours,
(Signed) H. Morlo Cochran
1. Merlo Cochran,
Technical Assistant to the Secretary.
L. V. Knoke, Bequire,
Vice President,
Federal Reserve Bank of New York,
les Tork, Bev York.
EMC:dm:8/23/41
Regraded Unclassified
For Miss Chauncey
154
C
0
P
Y
FEDERAL RESERVE BANK
OF NEW YORK
August 21, 1941.
CONFIDENTIAL
Dear Mr. Secretary:
Attention: Mr. H. Merle Cochran
I am enclosing our compilation for the week ended
August 13. 1941, showing dollar disbursements out of the British
Empire and French accounts at this bank and the means by which
these expenditures were financed.
Faithfully yours.
(Signed) L. W. Knoke
L. 1. Knoke,
Vice President.
Honorable Henry Morgenthau, Jr.,
Secretary of the Treasury,
Washington, D. C.
Enclosure
Copy:1g 8/23/41
Regraded Unclassified
MALYSIS or INITIAL AND TERICH Additions
Strictly
(In Millions of bellare)
fort Baded AND 11 1941.
OF
FRANCE
Prosseds of
Net Incr.
Gov's
Sales of
(+) or
Total
Expendi-
Other
TOY
maz, lak
Total
PERIOD
Debita
tures(a)
Dabita
to
First year of var
8/29/39-8/28/40)*
1,783.2
605.6.
1,187.
200.2
+229.0
1940
306,9
6.0
72
B,6
1.1
4.2
1,3
- 7.3
Aug. 29 - Oct. a
316.8
344.5
78.5
371.5
31.4
Oct. 3 - 30
196.7
167.8
28.9
198.5
160.5
6.0
32.0
+ 1.8
0.5
0.3
0.2
0.5
-
0.5
-
Oct. 31 - Nov. 27
We
201.1
39.9
259.5
210.0
18.0
31.5
18.5
0.8
0.1
0,7
0,2
#
0.7
- 0,1
204.8
26-0
60,6
36,6
a
IT
0.5
&
0.6
- 1,5
NOT. 28 - Dec. 31
-204,0
22.0
198.0
lild
1,485.6
293.1
109.5
108,0
575.6
10,8,
87.6.3
421.4
456.9
1098.4
900.2
198.2
+220.1
Ver partal through Dec.
1941
31.7
* 68.5
1.7
1.7
0.5
-
0.8
- 1.8
Jan. 2 - 39
197,4
162.7
34.7
259,9
176.8
52.0
-
Jan. 30 - Feb. 26
164.6
137.8
26.8
101.4
$ 26.6
25.0
48.8
65.2
0,2
-
0.2
0.2
-
0,2
I
157.6
32.1
237.9
103,7
72.0
62.2
+ 8.2
0.7
-
0.7
1.6
-
1.8
- 0.9
Feb. 27 - Apr. 2
229.7
Apr- 3 - 3 Apr. 30
126.0
101.9
24.1
318.9
125.6
15.0
78.3
92.9
0,9
-
0.2
0,9
-
0,9
*
May 1 - May 28
122.6
90,6
32,0
91.0
6.3
32,0
52.7
- 31,6
0,4
0,4
0,8
-
0,8
4 0,4
.
21.5
0.9
0.9
- 20.6
May 29 - July =
140.5
113.8
26.7
105.1
1.9
11,0
92.2
- 35.4
21.5
1
-
July 3 - - July 30
101.4
75.6
28.8
61.5
-
6.0
55.5
- 39.9
0.5
-
0.5
0.3
-
9,2
- 0.2
July 31 - Aug. 27
Second your of ar
(6/29/40-8/27/41)
AUB- 28 - Dot. 1
Ogt, 2 - Date 29
Dot. 30 - Dec. 3
Doc. 4 - 31
ENTED:
3.0
15,2
- 6,8
0.4
-
0.4
0.1
E
0.1
- 0.3
July 23
25,0
20,7
4.3
18.2
-
-
11.9
-18,5
0,1
-
0.1
0,1
-
0.1
30
30.4
22,1
8.3
11.9
-
2.0
114.6
+87.6
0,7
-
0.6
0,2
-
0,2
- 0.5
Aug. 6
33.0
31.4
1,6
116.6
-
36.2
21.8
14.4(g)
15.3
,
-
15.3(f)
-20-9
0.2
-
0,2
0.2
-
0,2
.
13
Transfers from British Purchasing Commission to
(See footnotes FIRE reverse side)
Average Wookly Expenditures since Outbreak of War
France (through June 19,1940) $19.6 million
Bank of Canada for French Account
Feek ended Aug- 13, 1941
-
million
England (through June 19,1940) 27.6 million
England (since June 19,1940) 46.2million
Omulation from July 6,1940 #162.7
aillion
For monthly breakdown 300 tabulations prior to April 23, 1941.
Regraded Unclassified
Their
NA
internaling
Dahal zuell
ve
HALTLE) GARA su
(a)
Iccludes
Britt ish Air British Supply Board or
Supply Timber Control, and Ministry of Shipping.
2001 Toll
to 150000
TO noise
Pm
(b)
Estimated figures based on transfers with from the New Later York Agency of the Bank est which appurently reprosed Fither 100
proboeds of OFF ial Brn sish also of securitika, Studing am diffect To addition
OJ1978
to the official selling, substantial liquidation of securities for private British account occurred, perticularly during the
our strethe of the the receipt di proceeds at dela Bank be frie any accuracy. According
to data supplied by the Dritish Treasury and released by Sepretary Worgenthau, total official and private British liquidation
of our becurities threogh December, 1940 abounted to $834 million.
(o) Includes about $85 million required ed duri Octobery 1989 from the abdounts of British sed tanks with New York blocks,
presentingly reflecting No alsioning or crimite dollar falls medi Dibther Mays trainféria from much since October,
1939 applicant by reprosent 166 adquisities products of imports the area and ober survice ly contring deliver
receipts.
(d) Includes payments for possunt of French Air Commission and Frebah Purchasing Comissions
(g) Adjusted to eliminate the offect of @80 million pard out on Júne 25 1940 and returned the following day.
(f) Includes $5.5-million transferred from accounts of British authorised banks and $1.5 million received by the British Purchasing
Commission, pregamably representing refunds.
(g) 13.4 million transferred to Government of Canada account.
19012 STOTOT are ex
or moiscleeno outsing 0017 07/18/1977
= about % 2020
00/11/0
because Not
20/
Lie
6.7
STATE
DAYING no:) mottal. no
sellile
(0b
INC) ,es Itnah oz tares accipuludes Edeard
Regraded Unclassified
AMALTHIE OF CANADIAN AND AUSTRULIAN ADDITITY
Strictiz
(In Millious of Dollars)
Week Intel las. 13, 1341.
Outldersial
111311
Transfers
Transfers from Official
Truethers
to
Prosseds
British A/C
not Insr.
to
Provide
Total
Official
Other
Total
of
Other
(+) or
Total
Official
Other
Total
of
Other
(-) or
Debits
British
Debite
Credits
Gold
For Own
For French
Credits
Deor. (-)
Debits
British
Debite
Credits
Gold
Credita
Deor. (-)
PERIOD
A/C
Sales
A/C
A/O
to Balance
A/C
Sales
in Balance
First year of way
(8/29/39-8/28/40)*
323.0
16.6
506.4
504.7
412.7
20,9
38.7
32.4
+181.7
51.2
3.9
27.3
36.1
30,0
6.1
4 4.9
1940
Aug- 29 - Cot. a
44.3
44.3
43.9
16.4
-
27.3
0,2
- 0.4
8.7
2.5
6.2
8.0
6.7
1.3
- 0.7
-
26.7
26.7
28,6
14.0
-
14.3
0.3
+ 1.9
10.1
7.5
2.6
7.9
6,5
1.4
- 2.2
Oct. 3 - 30
-
Oct. 31 - Nov. 27
35.2
35.2
69,6
49.2
-
16,7
3.7
+ 34.4
3,1
0.6
2.5
3.6
2.1
1.5
+ 0,5
-
Nov. 26 Dec. 31
48.0
-
48.0
60.6
42.5
-
13.7
4.4
+ 12.6
4.6
-
4.8
6.8
4.8
2,0
+ 2.0
No: through Den.
477.2
16.6
460.6
707.4
534.8
80.9
110.7
41.0
+230.2
57.9
14.5
43,4
62,4
50.1
12.3
+ 4,5
1941
Jan. 2 - 29
33.7
-
33.7
33.9
16.9
-
15.0
2.0
+ 0.8
4.8
-
4.8
5.8
5.1
1.7
+ 2.0
5.0
3.2
Jan- 30 - Dobs 86
31.1
31.1
24.3
14.3
-
6.8
3.2
- 6.8
1.7
3.3
0.6
2,6
- 1.8
-
Feb. 27 - Apr. 2
50.9
-
60,9
45,0
23.1
-
19,1
3,8
- 14,9
5.8
0,8
5.0
13,7
12,5
1.2
- 7,9
Apr. 3 - Apr. 30
34.9
-
38.9
35.9
12.5
-
10.5
12.9
+ 1,0
2,8
,
2.0
5.2
4.6
2.3
+ 3.1
My 1 - May 28
39.2
39.2
25.6
15.8
-
0,5
9.3
- 13,7
5,4
-
5.4
4,9
4.1
0.8
-
- 0.5
May 29 July 2
43.2
45,2
40,2
16,3
-
-
31.9
+ 5.0
10.1
I
10.1
5.6
4.5
-
1.3
- 43
July 3 - July SO
30.6
-
30.6
21.8
15.2
-
-
-
6.6
- 8.8
6.4
6.4
6.3
4,8
1.5
- 0.1
July 31 - Ang. 27
freend your of war
(8/29/40-5/27/41)
Aug- as Oct. 1
Oct. :- Oct, 29
Opt. 30 - Deo, 5
Dec. 4 4- 31
NEW ENDED:
-
7.5
3.5
3.3
-
-
0.2
- 4.0
2.4
-
2.4
0.5
e
7.5
0.5
- 1.9
July 23
12.1
6.3
4.7
-
-
1,6
- 5.8
0,4
-
0.4
0.]
-
0,3
- 0.1
30
12,1
-
3.4
3.9
2.6
-
-
1,3
+ 0.5
2,6
-
2.6
0,2
-
0.2
- 2.4
Aug. 6
3.4
-
10.4
6.9
2.9
3,4
-
0,6
- 3.5
0.3
-
0,3
0,4
-
0,4
+ 0.1
13
10,4
-
Wookly Arerago of Total Debite Since Outbreak million of Par
For monthly breakdown nee tabulations prior to April 25, 1941.
Through Aug. 13, 1941
7.5
Regraded Unclassified
ANALYSIS OF CARADIAN AND ACCOUNTS
Divistiv
(In Millions of Dollars|
Yook Intel Aug. 13, 1941.
Confidential
Transfers
Transfers from Official
3
Prosseds
British A/C
that be.
to
â
Total
Official
Other
Total
of
Other
(+) or
Total
Official
Other
Total
of
Other
(+) or
Debits
British
Debits
Credits
Gold
For Own
For Frencis
Credits
Dear. (-)
Debits
British
Debite
Credite
Cold
Credits
Door. (-)
PERIOD
A/C
Sales
N/C
A/C
in Balance
A/C
Sales
an Balance
First year of wer
(8/29/39-8/28/40)*
323.0
16.6
306.4
504.7
412.7
20,9
38.7
32.4
+181.7
31.2
3,9
87.3
36.1
30,0
6.1
- 4.9
1940
AUG. 29 - Cot. a
44.3
44.3
43.9
16.4
-
27.3
0.2
- 0.4
8.7
2.5
5.2
8.0
6.7
1.3
- 0.7
-
26.7
26.7
28,6
14.0
-
14,3
0,3
+ 1.9
10.1
7.5
2,6
7.9
6,5
1.4
- 2.2
Opt. 3- 30
-
Oct. 31 Nov. 27
35.2
35.2
69.6
49.2
-
16,7
3.7
+ 34.4
3.1
0.6
2,5
3.6
2.1
1.5
+ 0,5
-
Nov. 28 - Dec. 31
48.0
48.0
60.6
42.5
-
13.7
4.4
+ 12.6
4.8
-
4.8
6.8
4.8
2.0
+ 2.0
-
Mr. veriod through Date
477.2
16.6
460.6
707-4
534.6
20.9
110.7
41,0
+230,2
57.9
14.5
43.4
62,4
50.1
12.3
- 4,5
1941
Jan. 2 - 29
33.7
35.7
33.9
16.9
-
15.0
2.0
+ 0.2
4.8
-
4.8
5.8
5.1
1.7
- 2.0
1
Jan. 30 - Febs 26
31.1
- 6.8
3.3
3.2
0.6
2.6
-
31.1
24.3
14.3
-
6.8
3.2
5.0
1.7
- 1,8
Feb. 27 Apr. 2
60.9
,
60,9
46,0
23.1
-
19.1
3,8
- 14.9
5.8
0,8
5.0
13.7
12,5
1,2
- 7,2
Apr. 3 - Apr. 30
34.9
1
38.9
35.9
12.5
-
10,5
12.9
+ 1,9
2.8
-
2.8
5,9
4,6
2.3
+ 3.1
May 1- May 28
39.2
-
39.3
25.6
15.8
-
0,5
9.3
- 13,7
5,4
I
5.4
4,9
4.1
0,8
- 0,5
May 29 July 2
3.21
45,2
48.2
16.3
-
-
31.9
+ 5.0
10.1
-
10.1
5.8
4,5
1.3
- 4.5
-
July 3 - July 50
30.6
30.6
21,8
15.2
-
-
6.6
- 8.8
6.4
-
6,4
6.3
4.8
1.5
- 0.1
-
July 31 - Ang. 27
Second year of war
(11/43/6-07/62/9)
AUg- 28 Cot. 1
Oct. 2 Oct, 29
Det. 30 Doc. 3
Doc. 4 31
TX ENDED:
July 23
7.5
7.5
3.5
3.3
-
-
0.2
- 4.0
2.4
I
2.4
0.5
-
0.5
- 1.9
-
12.1
6,3
4.7
-
-
1.6
- 5.8
0.4
-
0.4
0.3
,
0.3
- 0.1
30
12.1
-
3.4
3.9
2.6
-
.
1,3
. 0.5
2,6
-
2.6
0.2
-
0,2
- 2.4
Aug. 6
3.4
-
10,4
6.9
2,9
3,4
-
0,6
- 3.5
0,3
-
0,3
0,4
-
0,4
+ 0.1
13
10,4
-
Wookly Average of Total Debits Since Outbroak million of Mar
For monthly breakdown san tebulations prior to April 25, 1941.
Through Aug. 13, 1941
$ 7.5
Regraded Unclassified
SHANGHAI
c
AUGUST 23, 1941
C
P
Y
/XOM: M. R. NICHOLSON, U. B. TREASURY ATTACHE
20:
DIVISION OF INVESTIGATIONS AND PATROL (FOR ALDER)
FOLLOWING AMONYMOUS LITT. QUOTED BELOW AS IS WAS PLACED OIT COUNTER
CF MORTH CHINA DAILY LEYS LOCAL BRITISH 18VS PAPER BY UNKNOWN PERSON
justs SIR COLONEBARE LEARNED FROM is PATRICT TEC IS EMPLO D BY PUPPET
GOVERNMENT HAS REPORTED TO US THAT REBEL CHOW ZUBAL THE MINISTER OF
VIRANCE IN PUPPET COVERIMENT AT TWELFTH AUGUST CHERED AIS 3P CIAL
SERVICE AEVALUE è SHAN TULL ACTION THAT THEY VILL M. E. L.
ALL PATCH THE MINGER OF CHINESE CURREMCY STABILIZATION BOARD
a ITISH MR. HANVEL Fox AMERICAN AND HIS ASSISTANT MR. TAYLOR IN
INVEDIATELY IN REASON OF MR. L. E. HALL PATCH Ma. A. KARVEL 70X AND
HTS ASSISTANT THEIR ARE ENDRAVOR EMOCRACY STOP SO VE INFORM YOU AND
BEG YOU DECLARE SUC A FACT SIGNED TE BLUE SHIRT (3GALIZATION SEVENTEENTH
AUGUST UN UOTE CUR OPINION OF FUREUOING CONTAINED IN FOLLOWING NESSAGE
Cooy: hbr: 8-27-41.
Regraded Unclassified
160
BS
GRAY
Hong Kong via N. R.
Dated August 23; 1941
Rec'd. 1:38 p.m.,24th.
Secretary of State,
Washington.
323, August 23, 2 p.m.
FOR TREASURY FROM FRESE
"Will appreciate clarification on the follow-
ing questions (?) to application of general licenses
under Executive Order 8389.
OnE. Would r: purchase of United States dollars fre.
Stabilization Board of China made by E non-licensed
bank in China for the purpose of covering DELEO of
United States dollars for import tronsactions ruthor-
12rd by general license no. 58 be construed CS e
transaction documented general license number 58,
Two. Could United Strtes dollars thus pur-
chesed by such non-licensed bank DE credited to its
account in e United States bank and be subsequently
used for purpose of finencing dmport transactions
licensed by general license no. 58".
SENT to the Department, repented to Chungking,
Shanghai.
SOUTHARD
NPL
Regraded Unclassified
TEM
PLAIN
161
Peiping via N.R.
Dated August 23, 1941
Rec'd 3:20 s.m. 24th
Secretary of State,
Weshington.
226, August 23, 1 p.m.
Peiping's 194, July thirty-first.
Despite oral assurances given to this Embassy by
the Japanese Embassy at Peiping on July thirty-first and
August first that the restrictions in North China on the
checking of baggage by American citizens would be lifted,
Americans are still unable to check baggage at many places
outside of Peiping. Special instances of refusal to check
baggage at the station at Peitaiho Beach on August twenty-first
and August twenty-second have been reported to this Embassy.
Written representations on this subject were again made
to the Japanese Embassy here on August twenty-second.
Sent to the Department, repeated to Chungking, Tientsin.
Air mail to Tokyo.
BUTRICK
NPL
eh:copy
Regraded Unclassified
162
PARAPHRASE OF TELEGRAM RECEIVED
FROM: American Consulate, Dairen, Manchuria
DATE: August 23, 1941, 10 a.m.
NO.: an
Instructions have been received by the manager of the
Dairen branch of the National City Bank of New York to close
the branch of that bank. The process of closing, however,
will take some time. Such procedure cannot be undertaken
under the drastic freezing restrictions which are still
in force. (For description of freezing restrictions, nee
telegram No. 13, dated August 9, 4 p.m. from the Consulate.)
This message was sent to Tokyo and repleated to Peiping
for the information of the Department. It vas ant by mail
to Harbin and Hukden.
CHASE
EATPAK
811,51693 MANCHURIA/62
Regraded Unclassified
163
PARAPHRASE or TELEGRAM RECEIVED
FROM: American Consulate, Fort de France (Martinique)
French West Indies.
DATE: August 23, 1941, 1 p.m.
NO.: -
It is requested that the Department telegraph the
Consulate as to whether or not the Treasury Department
has approved the French-American Banking Corporation as
the American correspondent of the Martinique branch of the
Banque Nationale pour 10 Commerce et l'Industrie. 4300
include information as to whether the Banque Nationale
pour 20 Commerce et l'Endustrie may handle funds which
originate from the French West Indies monthly license.
MALIGE
EAIPAK
840.51 Frozen Credita/3186
Even
Regraded Unclassified
161
PARAPHRASE OF TELEGRAM SENT
TO: American Legation, San José, Costa Mies
DATE: August 23, 1941, 8 p.m.
NO.1 194
Reference is made to the Legationf&stelegrams of
August 12, 3 p.m., No. 219 and of August 18, 9 p.m.,
No. 222.
The Legation is requested to express to the Foreign
Minister the sinsere appreciation of the United States
Government for the spirit of cooperation which notivated
the Government of Costa Riea to present the plan that was
described in the Legation's despatch of August 1, 1941,
No. 3485.
The U.S. Government's view is that the plan,as outlined,
is an initial step toward the accomplishment of the purpose
which underlies the Preclaimed List's issuance. For the
time being, the Treasury Department is prepared to issue
appropriate lieenses for the importation of commodities
which are covered by the plan and for the exportation of
certain articles which are necessary for the operation
of the industries and firms which are included in the plan,
should such articles be released under the Export Control
Act, provided that no undeserved benefit is derived from
the issuance of such license by any fire or person on the
Proclaimed List and, further, provided that the representatives
of the U.S. Government, or persons satisfactory to them,
are allowed to obtain surrent information in regard to the
Regraded Unclassified
165
+
operation of the plan and make such observations an
representations in regard to its operation & may be
considered pertinent by them, The Legation is requested
to advise the Department by telegraph whether the second
proviso is acceptable to the Government of Costs Ries.
The following is for the information of the Legation.
It is noted that persons whose names appear on the
Proclaimed List may receive salaries, commissions, or
other prequisites under the plan which might net be
frozen. Should the plan work in this manner, one of
the objectives of the Proclamation of the President
-that 1a, to provent persons whose names appear on the
List from receiving financial and economic benefits,
directly or indirectly from trade with this country-
would be defeated by such.
The following is for your guidance in the future.
As the basis for the continued issuance of licenses,
this Government would like to see the Government of
Costa Rica to take up the following steps within a
reasonable time:
1. Prevent the use of the assete, for other than
living expenses, within Costa Rica of individuals and
firms on the Proolaimed List.
2. Curtail to a minimum the funds that are available
for such living expenses.
3. The replacement ty of persons who are not deemed by
the Legation to be unsatisfactory of those individuals
Regraded Unclassified
166
+
who are considered to be undesirable and who occupy
important or key positions in the firms involved.
4. The consideration of additional means and ways,
in conjunction with representatives of the U.S. Opvers-
ment, for effectuating the Proclaimed List's purposes.
The following is for your own information. The
four steps which were suggested above should all lead in
the direction of earrying out the ultimate purpose of the
Proclaimed List; 1.0., the elimination or great restriction
of all phases of activity and influence in the countries
in Latin America of the firms and individuals whose names
appear on the Preelaimed List.
HULL
(DA)
A-At DH: GMH
EA
RA
DCA
EA:PAK
11502
Regraded Unclassified
167
TREASURY DEPARTMENT
10th / /
INTER-OFFICE COMMUNICATION
DATE August 23, 1941
to
Secretary Morgenthau
FROM Mr. Cochran
confidential
Registered sterling transactions of the reporting banks were as follows:
Sold to commercial concerns
€ 8,000
Purchased from commercial concerns £35,000
Open market sterling held steady at 4.03-1/2, and there were no reported
transactions.
In New York, closing quotations for the foreign currencies listed below were
as follows:
Canadian dollar
10-7/8% discount
Argentine peso (free)
.2385
Brasilian milreis (free)
.0505
Colombian peso
.5800
Mexican peso
.2070
Uruguayan peso (free)
-4375
Venezuelan bolivar
.2755
Cuban peso
1-1/16% discount
In the unofficial exchange market in Shanghai, the yuan remained at 4-11/16#.
The sterling-dollar cross-rate worked out to 4.04-1/2.
There were no gold transactions consummated by us today.
No new gold engagements were reported.
The Federal Reserve Bank's report of August 20, 1ts ting deposite of banks in
Ásia with the New York agencies of Japanese banks, showed that such deposits totaled
$56,212,000. an increase of $115,000 since August 13. Also reported were selected
items from the statement of the Yokohama Specie Bank's New York Agency. The latter's
principal dollar liabilities to and dollar claims on Japanese banks in Asia stood as
follows on August 20:
Change from
August 20
August 13
Liabilities: Deposits for Japan and Manchuria
$41,271,000
4 $ 71,000
Deposits for China
9,785,000
4 10,000
#
I U.S. Treas. Bills, comm. paper, etc.
25,840,000
- 294,000
Claims
I Loans
$18,625.000
- $170,000
#
I Other - mainly Jap. import bills
7,583.000
-
2,000
AMR
Regraded Unclassified
168
RESTRICTED
0-2/2657-220; No. 474 M.I.D., W.D.
11:00 A.M., August 23, 1941
SITUATION REPORT
I. Eastern Theater.
Ground: Powerful German and Finnish forces continue to
attack Leningrad from the north, west and southwest. The Leningrad-
Moscow railroad has been cut at Chudovo, 75 miles S. E. of Leningrad,
Strong Russian counter attacks continue against the
German held areas of Staraya Russa, Kholm and east of Smolensk.
Pushing southeast the Germans have crossed the
Gomel-Bryansk railroad and advanced as far as Staradvb,
In the Ukraine there is no official confirmation that
German forces have crossed the Dnieper River.
Air: According to the Berlin communique Odessa harbor was
severely bombed on Wednesday resulting in the sinking of two ships.
Soviet radio announced a successful attack on German transports carry-
ing reinforcements to the Ukraine front,
II. Western Theater.
Air: British bombing operations during the night of the
twenty-second were concentrated on Mannheim, Docks and other shipping
facilities at LeHavre, Ostend and Dunkirk were also bombed.
Both communiques reported action against airports in
onemy territory.
III. Middle Eastern Theater.
Air: Two British cruisers were reported as hit by German
bomba northeast of Sidi Barrani on August 21 according to the Italian
communique.
Ground: Continued lull.
RESTRICTED
Regraded Unclassified
169
C
0
P
Y
LET
GRAY
BERLIN
NOT FOR PUBLICATION
Dated August 24, 1941
Rec'd. 3:32 p.m.
Secretary of State,
Washington.
3273. August 24, 11 a.m.
A new tax law provides for a 25 percent war time
surtax on corporation taxes; & decrease in taxes paid
by individuals and partnerships on income earned from a
trade or profession (in the form of exemption from taxes
on 50 percent of the income left in the business); abolish-
ment of the document tax; and abolishment of the one half
percent securities tax (the one percent securities tax being
continued). According to estimates the increase in rev-
enues from the wer surtex on corporation taxes will exceed
by a considerable extent the reduction in other forms of
taxes.
MORRIS
GV
Copy:bj:8-38-41
Regraded Unclassified
170
DEFENSE SAVINGS STAFF
ADVANCE SCHEDULE OF RADIO PROGRAMS
SUNDAY - AUGUST 24, 1941.
Time:
4:15 - 4:30 P.M.
Program:
Olivio Santoro
Station:
WMAL and NBC Blue Network
Time:
5:30 - 6:00 P.N.
Program:
Melody Ranch
Station:
WJSV and CBS Network
Time:
5:30 - 6:00 P.M.
Program:
Dr. I. Q. Junior
Station:
WRC and NBC Red Network
Time:
7:00 - 7:30 P.M.
Prograst
Pause That Refreshes
Station:
WJSV and CBS Network
Time:
7:30 - 7:55 P.M.
Program:
Crime Doctor
Station:
WJSV and CBS Network
Time:
8:00 - 8:30 P.M.
Program:
Manhattan Merry Go Round
Station:
WRC and NBC Red Network
Time:
9:00 - 9:30 P.M.
Program:
Take It Or Leave It
Station:
WJSV and CBS Network
Time:
11:15 P.M. - 12:00 M
Program:
Music You Want, When You Want It
Station:
WHAL - Washington, D. C.
THESE PROGRAMS PROMOTE THE SALE OF DEFENSE BONDS AND STAMPS.
Regraded Unclassified
171
August 25, 1941
9:30 a.m.
GROUP MEETING
(Conference held in Mr. Gaston's office)
Present:
Mr. Cochran
Mr. Charles Bell
Mr. Cairns
ltr. Schwarz
Mr. Odegard
Mr. Southard
Gaston:
I thought I would find out who was here today.
I haven't anything to tell anybody, but I thought
I would find out if there was anything troubling
any of us.
C. Bell:
We are going ahead this morning with the New
York space. We have accepted, subject to the
approval of the War and Navy Departments, the
253 Broadway space. That is the old Postal Telegraph
Building.
Gaston:
How much space are we getting there?
C. Bell:
We are getting sufficient. We are going up to
about seventy thousand square feet.
Gaston:
Is it adjacent?
C. Bell:
It is adjacent all together. They got the Postal
Telegraph to move out of another half of a floor.
Gaston:
It is all together?
Regraded Unclassified
172
- 2
C. Bell:
That gave us the five thousand feet we needed,
Gaston:
How much is it going to be, Charlie?
C. Bell:
We are paying a dollar sixty-nine next year.
This year the War Department will pay two
dollars and twelve cents.
Gaston:
That doesn't seem so bad, and it is a good
location.
C. Bell:
We had a buzz from Al Smith along the line that
if we are interested in the Empire State he
would come down somewhat on his price. lle was
four dollars and something. Bernie called him
up and he came down to three dollars 9. square
foot.
Gaston:
He was better than that.
C. Bell:
Two dollars and twenty-five cents on the tech-
nical staff two months ago.
Gaston:
But even that is too high for the enforcement
agencies, and th t isn't any location for the
enforcement agency.
C, Bell:
This is only about three blocks from their
present location.
laston:
This is excellent. You are within two blocks
of every subway.
E. Bell:
Alcohol Tax objects to this space because they
are going to have to take some dark space that
will be illuminated by this fluorescent lighting.
Geston:
If there isn't some squewling I would say it
isn't no good.
C. Bell:
Your friend Lewis in Customs likewise is squawk-
ing.
Regraded Unclassified
173
- 3 -
Gaston:
Because of dark corners?
C. Bell:
Generally that is his squawk. He doesn't want
to move. But the rest of them are pretty well
satisfied. But I think it is the best we can
do in New York. It have looked it over myself
and Elmer Irey spent Friday and Saturday up
there, and they have made arrangements for air
conditioning, fluorescent lighting, partitioning,
and additional footage, which gives us really
the best proposition in New York.
Cochran:
Where is it, Herbert?
Gaston:
It is on Broadway and Rector, isn't it, Charlie?
C. Bell:
Broadway and Rector. I prepared a wire to Watkins,
the a gent. "Your bid on space in 253 Broadway 25
amended by your letter of August 23 is acceptable
to the Treasury Department subject to final
approval of War and Navy Departments." Because
We haven't settled that question of who pays.
Gaston:
O.K.
C, Bell:
"Final arranzements respecting office lay-out
to be concluded by the representatives of the
Treasury Department and you." I thought I
would get that off this morning, so he can
start right in on it.
inston:
Good. I think it is all right. If they are
not unanimous against it, that is very encourag-
ing.
C. Bell:
They are three to two.
Inston:
The next best thing we found they were unanimous
against, weren't they?
3. Bell:
120 Wall, they were all against it.
Regraded Unclassified
174
a
Taston:
That was excellent space.
C. Bell:
There was only one they were unanimously for,
and that was the Empire State.
Gaston:
Yes, Three dollars a foot. They liked 40 Wall
Street on the corner of Broadway and Wall.
C. Bell:
Yes, sir, but that was inadequate.
Gaston:
What did Ted Wilson do, if anything, in Richmond?
Did he come to a decision?
C. Dell:
We sent him down Friday and he came to a decision
Friday night in favor of the Revenue Agent,
but he hadn't talked with the girl so I told
him to stay over Saturday morning and talk with
the girl, which he did, and now he is in favor
of the girl, (Laughter) It was a definite
injustice to put her out. I told him to give
IS a report on it and we will probably have to
disapprove Helvering's recommendation.
Gaston:
It is always a bad proposition where you get -
where you can't do anything, make any compromise,
you have to support an employee where the boss
claims she won't take orders and so on. He
does claim that, doesn't he?
C. Bell:
Not until recently. She has had an efficiency
rating for twenty-one years of excellent, and
this is something very new.
Caston:
Well, We will take a look at what he says.
C. Bell:
He wouldn't have to live with her any longer
than next May. She 70es out on retirement.
(Laughter)
Gaston:
Charlie, have you got anything else?
C. Bell:
That is all, sir.
Regraded Unclassified
175
- 5 -
Gaston:
Merle, do you want to enlighten us?
Cochran:
I haven't much, except we may have to take
some decision this week about publicity for the
Mexican Stabilization agreement. On Saturday
Collado called. They are ready to go ahead
with the petroleum end of it, you see, They
were trying to tie several different negotiations
in together. We have practically finished that
Stabilization arrangement except that they have
to agree to certain details. They haven't come
back with that yet.
Gaston:
What is the arrangement, Merle?
Cochran:
Well, we will let them have forty million dol-
lars which this thing - we go in and purchase
Mexican pesos to the extent of forty million
dollars.
Gaston:
Yes. Any collateral?
Cochran:
No, no collateral at all. They have 8 more
liberal re-purchase arrangement than we have
given any of these other countries 50 far.
Gaston:
It is an effort to peg the present situation.
Cochran:
They don't say they will peg it definitely.
They are going to try to avoid any undue fluc-
tuations. This is supposed to be our contribu-
tion to the general arrangement which takes in
water rights and agrarian claims, petroleum
claims, and so on. So the State Department was
behind with their negotiations. We were prac-
tically ready before the Secretary went away.
lie wanted it hurried up so he could sign them
and have the Financial Minister up, but the
State Department couldn't finish by that time.
Collado called me on Saturday and said they
were practically completed and wanted to know
if we could get the Secretary to fix a date or
Regraded Unclassified
176
- 6 -
to agree to the Mexican Minister of Finance,
Flores, coming up between the second and the
tenth of September, and also would we agree to
a press release which they wanted to get out
very shortly, and which the Mexican Government
could use before Congress on the opening of their
Parliament on the first or second of September.
I told him to send over both the contemplated
press release and the statement which the Mex-
ican Government would make, so we ought to have
that today and I will talk it over with Mr.
Southard and Mr. Bernstein if you don't mind,
and then I will get your advice on it.
Gaston:
Well, now, the Secretary arrives at Montreal
tomorrow morning, you know.
Cochran:
Is that so?
Caston:
Yes. Wasn't it mentioned to you about the
plane going up today?
Cochran:
No. Is he coming back then?
Gaston:
As I understand it, he is not coming back here
to the office until next Tuesday, but the plane
is going up there today, and the reason he
cut short his stay on the Seguinay was to
attend the funeral service in Montreal tomorrow
for Arthur Purvis, and I believe that after
the funeral service tomorrow he is coming back
to the farm.
Cochran:
I see, so we could be in touch with him there.
Caston:
So he would be in touch. He has - he knows
the details of this Stabilization Agreement,
does he?
Cochran:
He knows the general details, yes, sir.
Regraded Unclassified
177
- 7 -
Gaston:
Forty million?
Cochran:
That is right.
Gaston:
And we are going to take pesos at the present
market, are we?
Cochran:
Well, we arrive at the rate - yes, it is really
at the present market rates. It is just a ques-
tion of whether the quotations --
Southard:
Whatever the rate is on the day of purchase.
Gaston:
It is going to be a blocked purchase, is it,
Merle?
Cochran:
Not necessarily. Quite the contrary. They think
they will not need to do it all at once.
Gaston:
But they are going to use forty million to buy
pesos when, as, and if necessary to maintain a
desirable rate?
Cochran:
That is right.
Gaston:
And that rate will be probably around the present
rate?
Cochran:
That is the idea.
Gaston:
What is the present rate?
Southard:
Twenty point six or seven cents per peso.
Cochran:
Twenty point seventy, yes.
Gaston:
It is a little under five to one.
Cochran:
That is right.
Southard:
I think it might be said that the original idea
was thirty million dollars, and that our
Regraded Unclassified
178
- 8 -
understanding is that ten million will be immob-
ilized under their reserve requirements, that to
give them an effective thirty million dollar
credit we would have to call it forty million
because their Central Bank requirement is
twenty-five per cent reserve, which is the only
reason why it would be forty million.
Cochran:
That is right. The original plan was for
thirty, and we raised it to forty when they
insisted on holding this ten million reserve
80 that we ought to be able to get back any
time. That wouldn't have to be brought back.
Gaston:
Is this & loan to the Government or the Bank
of Mexico?
Cochran:
It is to be signed by both. They raised the
question last week as to whether the Bank could
not be excused from signing, and we pointed out
to them that the Secretary's original plan with
respect to Latin America envisaged - required
the signature and guarantee, individually and
collectively, of the Bank and Treasury of
any country, and 80 they may have to get some
legislation through and that is the idea of our
giving something to them to announce in their
Congress when they convene the second of Sep-
tember.
Gaston:
Who has been negotiating this?
Cochran:
Monteros has been here for Mexico. He is from
a bank in Mexico and has been their representa-
tive on this international - inter-American
Economic and Financial Committee.
Southard:
General manager of the Mexican RFC.
Gaston:
Monteros?
Cochran:
Yes. And they are getting an arrangement with
the RFC and the Export-Import Bank at the
Regraded Unclassified
179
- 9 -
same time, so that will be thirty million.
Ten million a year over three years.
Gaston:
What are they doing on the oil thing?
Cochran:
Can you give the details of that?
Southard:
It hasn't been changed. Our understanding is
that Mexico is to make an immediate cash pay-
ment of nine million dollars. They were haggling
between five and nine the last time Mr. Collado
spoke to us. They. had gotten to the upper
limit. As an evidence of their recognition
of the claim, that to be held by the United
States Government, pending final agreement on
the total amount by & mixed commission of
the experts representing the United States
and Mexico. We don't know how that commission
is to be set up. Then the nine million is
in no sense to be regarded as an evidence of
what may ultimately be paid.
Gaston:
Of the amount. This is a --
Southard:
Token payment.
Gaston:
Earnest money.
Southard:
That is right. Is that your recollection?
Cochran:
Yes. That is the last thing they were trying to
get straightened up.
Gaston:
The thing contemplates that they will go on
operating with their Governmental corporations,
does it? They are not contemplating operating
contracts with any of the American oil companies?
Southard:
Not that we know of, although they keep talking
about being perfectly willing to have operating
contracts. Of course, this petroleum settlement
is in addition to the Sinclair settlement which
is finished.
180
- 10 -
Gaston:
Yes.
Southard:
And there is also, as Mr. Cochran says, an
agreement on agrarian claims and general
claims and revolutionary claims involving about
three million a year.
Gaston:
Yes.
Southard:
The first payment of which has been made.
Gaston:
Are the oil companies stringing along with this
plan for a mixed commission?
Southard:
Do we know the state of their cooperation?
Cochran:
They haven't even told us.
Southard:
I think the last time I heard, they were still -
it was hoped that they would go along.
Gaston:
Standard of New Jersey has been the most active
on their propaganda, haven't they?
Southard:
Yes.
Gaston:
Did you have anything - well, about this -
Merle, I think that the Secretary will be in
reach and I think we will want to check with the
Secretary.
Southard:
Did Mr. Monteros mention to you, Mr. Cochran,
that he had the hope of possibly the Secretary
might also invite the Financial Minister and
carry out Monteros' idea that so far as possible
we ought to emphasize the relation between the
two Treasuries?
Cochran:
Oh, yes. They wanted to know whether it would
be all right for them to go ahead and fix up
a schedule for Flores to come up.
Regraded Unclassified
181
- 11 -
Gaston:
Let's get it all in one bundle --
Cochran:
I am waiting for this from Collado. He said
he would get it over to me today.
Gaston:
It is possible that the Secretary may call
up today from Montreal. He will probably call
up tomorrow from Montreal.
Cochran:
I am sure we can get this today.
Gaston:
Right.
Cochran:
Then the Colombian Ambassador is just returning
and he has a draft arrangement that we don't have
to do anything on before the Secretary comes
back. It is another Stabilization Agreement.
Gaston:
He has 8. draft of a Stabilization Agreement.
Cochran:
That is right, and he has been down in his coun-
try now having them look it over. He is coming
back and I suppose he will want to go ahead and
consummate it after he gets here.
Schwarz:
He has been pushing that hard, because we get
queries every day.
Gaston:
Do you?
Cochran:
He talks to the press pretty freely about it.
Schwarz:
He is running for the Presidency of Colombia.
Gaston:
What is his name.
Schwarz:
Turbay.
Gaston:
Well, have you anything else in mind, Merle?
Cochran:
I was just saying we would have to keep this
182
- 12 -
absolutely quiet until we get out the announce-
ment. I think it would be 8. State Department
announcement, either State or the White House,
telling the whole thing.
Gaston:
Oh, I should suppose so, This is major league.
I would say it was White House rather than
State.
Cochran:
It is just our little part --
Schwarz:
It will include the other parts.
Gaston:
I assume we can rely on the State Department
clearing so far as our end is concerned.
Cochran:
In the one they had drafted in the State Depart-
ment they had something on silver which I didn't
like. I would like to get Southard to check that
with me.
Gaston:
What is there on silver in this thing?
Cochran:
They wanted us to purchase silver at seventy-
one cents over quite a period.
Gaston:
They just include them in the domestic purchase
arrangements.
Southard:
Yes, that is exactly what they asked for.
Gaston:
Of course what it will be, if anything, will
b e 8. minimum amount at the world market.
Cochran:
We would give them an arrangement such as we
gave Canada if they want it.
Gaston:
Yes, five million ounces or something like that
at thirty-five.
Cochran:
At the price of the day, whatever it may be.
Regraded Unclassified
183
- 13 -
We don't even guarantee the price for a month
or a week or anything. But they have some
great plans to start with. They wanted
to repay these obligations - the Stabilization
as well as the other through twenty year bonds
or payment in silver at & fixed price, you see.
So we have done quite a bit of talking before
we have gotten as far as I have told you this
morning.
Gaston:
They were only asking for two or three million
dollars B. year.
Cochran:
And we have had negotiations with the Ecuadorians
in the last two weeks also, but the Financial
Minister has gone back to Ecuador now.
Southard:
He is still Finance Minister though.
Cochran:
Yes. The Cabinet went out while he was here
and he didn't know whether he had 8. job or not.
Gaston:
That is one of these monetary Stabilization
loans, is it?
Cochran:
That is right. That is all I have.
Gaston:
Have you anything additional, Mr. Southard?
Southard:
No, I think not.
Gaston:
Mr. Southard, I wrote a report on this meeting
of last Wednesday just from memory, but I think
it is fairly accurate as to what occurred, and
I would like to give you a copy before you go
out. I am sending the Secretary a copy, and
let me know if you have - I assume there is to
be another meeting Wednesday of this week at
nine thirty and you might let me know if you
have anything --
184
- 14 -
Southard:
Is there anything you want for this next meeting?
Gaston:
Yes, anything you have to suggest. It seems
that on this vegetable oil thing from Africa
the interest was not in the thing that Ullman
wrote about, which is the olive oil from the
North African Coast, but it was in that palm
and nut oil situation around Nigeria, principally
out of Dakar. Dean Acheson made a report, the
substance of which was that he didn't think
there was anything we could do about it at the
present time. The French are using that peanut
oil from Dakar as fuel for their submarines.
They thin it out, I believe, with alcohol, and
then they have to clean the motors - it is for
diesels and they have to clean the motors
a little more frequently. It gets 8. little
gunuy, but otherwise they say it is pretty good.
fuel.
Peter, have you got anything this morning?
Odegard:
Only on the Secretary's worry about the pro-
gram. I had the script people and Vince
Callahan has - Paul Monroe and Vince in the
office on Friday and we killed a couple of songs
in this week's program, and I think it will be
all right.
Gaston:
John Sullivan is a little bit anxious for fear
we may elevate that program out of the range of
the audience.
Odegard:
I talked to John about it. I don't think there
is any danger, but we were a little afraid -
Gaston:
I don't think 80 either.
Odegard:
Eddie Cantor started to sing Suzie. I am afraid
the Secretary would come down. He wouldn't want
her.
185
- 15 -
We are going ahead with the designs for the
Grand Central mural and also the plans for
the tabloid. The first pamphlet, Total Defense,
is in proof now. I think that is going to be
a beautiful job.
Gaston:
Tabloid, you say?
Odegard:
The tabloid is still --
Gaston:
What is this pamphlet, what are we going to do
with that?
Odegard:
That is to be distributed in collaboration with
the Office of Education to all high schools and
junior high schools in the United States,
including all parochial schools. We just learned
the other day that the parochial schools had
indicated their desire and intention to use it.
They are of course going over the proof now
and making a few changes. It is to be a graphic
illustrated booklet of about eight pages, and
I think it is going to be & very good job.
It is unlike anything that has been done or any-
thing that is in the field, and I would be very
surprised if we didn't get a very wide distri-
bution for it outside the schools, even.
Schwarz:
A lot of pictures?
Odegard:
Yes. The pictures - the layout is being made
for us by Mark Adams in collaboration with Fox of
the United States News, and of course they are
using mainly the photographic files of the
historical records section of the Farm Security
Administration and Life Magazine.
Gaston:
What is the nature of the message?
Odegard:
It is simply & description of the defense effort
up to date, the need for it and what it means,
with the bonds and stamps being the way in which
it is financed.
Regraded Unclassified
186
- 16 -
Caston:
I am wondering how deeply you got into the
difficult field of our attitude toward the
war?
Odegard:
Well, we get pretty close to it. That is, I
have tried to take out a lot of loaded words,
The first draft of the manuscript that came
to me was filled with loaded words, reference
to the Nazi terror, and so on and so forth, but -
reference to the Italian nation, a jackal
nation, and so on, and we have cut that out.
We are relying pretty much upon the school
people to pass upon this.
Gaston:
We are trying to play Hamlet without Hamlet,
aren't we?
Odegard:
Not exactly. We are coming close to it.
Waston:
We have to face realities some of these days.
Odegard:
I would be glad to show you a set of the proof.
Teston:
I would like to see it just as & matter of
curiosity. I don't expect to help you any.
Odegard:
I would appreciate it very much if you would.
Do you want 8. clean set of proof?
Gaston:
I don't care.
degard:
l'ine is pretty badly marked up.
Caston:
That is all right.
Odegard:
The tabloid, as you know, was simply six issues
of a tabloid, graphic tabloid, to be distributed
through the post offices. It is a joint enter-
prise between Defense Savings Staff and the
Post Office, to distribute twenty million of
them through the carriers, mostal carriers, and
we plan now six issues of it and we are planning
the whole six issues in advance 50 that it
makes an integrated whole and a consistent message.
Regraded Unclassified
187
- 17 -
Gaston:
I talked to Waesche the other day about taking
advantage of any occasions where we may use
Coast Guard personnel or equipment in these
exhibits for recruiting work. You know they did
do some down here, but our recruiting is sticking
a little now, and we need a lot more men than
we are getting, and I suggested to him that we
get the - some of the Air Corps men of the Coast
Guard who are not doing anything particularly
useful right now and use them in the schools
when school starts in the fall for recruiting
talks, and it is possible we can combine that
with some Defense Savings work. I wanted to
have the various divisions line up some school
speaking dates for some of these flying officers
of the Coast Guard who are & pretty good type
of men, and they might even take some exhibits
with them.
Schwarz:
What is our need, for enlisted men now?
Gaston:
Well, our need is for both, but of course we want
all the enlisted men we can get. You can't get
officers out of the high schools.
Odegard:
This tabloid - I know that any copy that you
care to suggest for this tabloid would be very
much appreciated.
Gaston:
You see, the people that we are trying to re-
cruit now are very much National Defense people.
What we are trying to do is to get men to supply
this Navy's demand for boats' crews for landing
boats. Have you anything else to tell us?
Odegard:
That is all.
Schwarz:
I hope you saw Mr. Pegler's piece in the Post
yesterday.
Gaston:
I did. I thought it was rather grudging and
half-hearted.
188
- 18 -
Schwarz:
Yes. He wanted to be kind, but I had the --
Gaston:
He wanted to be kind to Elmer and his men,
but he has such B. strong grudge against the
Administration that he plays politics.
He had very great difficulty saying anything
definite.
Schwarz:
Wound up nowhere.
Gaston:
It was one of the muddiest of Pegler's columns
that I ever saw. Who asked him for it, you
or Elmer?
Schwarz:
He came down.
Cairns:
Did you see the New Yorker's article on Roy
Howard?
Pegler pulls them all to pieces. They are very
malicious.
Schwarz:
That is fine.
Odegard:
The last one was.
Cairns:
Yes, the last one was particularly good. Lowell
Mellett is in there too. It is awfully good.
Odegard:
Lowell is sort of a hero.
Cairns:
Yes, he is.
Schwarz:
That is the only thing I have.
Gaston:
I guess Lowell just got to the point where he
couldn't stick to the Roy Howard policy any
more. Have you been putting out any releases,
Chick? You haven't, have you?
Schwarz:
We haven't had any news. There was the wool
story. Has that been signed, the wool regulations?
Regraded Unclassified
189
- 19 -
Gaston:
I think not.
Schwarz:
I think you are to sign it.
Gaston:
Yes.
Schwarz:
It will be a pretty fair story. We have a story
ready.
Gaston:
Yes. Let me see it, will you?
Schwarz:
Yes.
Cochran:
Herbert, I don't know what you read this morning,
but the Russians and British are both moving
into Iran.
Schwarz:
They have started.
Gaston:
Have they? I haven't seen anything.
Cochran:
Yes, they moved in in the night and they hadn't
contacted any Iranian forces. They sent word
to the Foreign Office in Moscow and the British
Ambassador there - they gave word to the Iranian
Minister in Moscow that they ment no harm, that
they were just going in to help them from the
German agents, and so on.
Southard:
Sounds familiar.
Gaston:
The British are going in from Iraq.
Cochran:
They didn't disclose the routes. Wavell is in
charge of the whole business.
Gaston:
Coming in from India?
Cochran:
It doesn't say. That is hidden on the ticker
stories.
Gaston:
There was a story this morning that the Persians
had moved back twelve miles from the Soviet
Regraded Unclassified
190
- 20 -
border as a kind of & sign of courtesy to the
Bolsheviks, but they had not done that on the
Indian or Iraq borders.
Cairns:
MacCormack has an interesting piece in the Times
this morning, Anne MacCormack.
Gaston:
On the editorial page?
Cairns:
Yes, a signed article, anticipating it and giving
the reasons why. It is the only way England can
get aid to Russia, you see.
Gaston:
Yes.
Cairns:
We don't have to do anything about it until
the President issues a proclamation, and I
assume he won't issue a proclamation. He
didn't on Russia.
Gaston:
Well, there isn't any war going on here.
Cairns:
Russia is not at war.
Gaston:
Yes.
Cochran:
Shall we freeze Iran?
Cairns:
That is a policy matter.
Schwarz:
We will see how much progress is made.
Gaston:
Well, Huntington, have you anything?
Cairns:
Nothing, Herbert.
Gaston:
In the line of business?
Cairns:
Not a thing.
Gaston:
Well, thank you for coming in, gentlemen.
191
August 25, 1941.
MEMORANDUM
TO:
Mr. Graves
(To be held for Mr. Graves' return)
FROM:
Mr. Gaston
General Burns and Phil Young of Defense Aid Reports
(Lend-Lease) came in to see me Friday with the photostat which
I am enclosing, which secus to put the Treasury Department in
an unfavorable light as compared to other departments with re-
spect to the celerity with which we are discharging our Lend-
Lease responsibilities. This unfavorable showing seems to me,
after a conversation with Cliff Mack, to be apparent and not
real. I saw Cliff on Saturday and he has written the attached
memorandum to me. I mentioned this matter briefly in a letter
to the Secretary on Saturday, written at his request, and summar-
izing briefly various happenings. You may wish, however, to
show him Mr. Mack's detailed reply, along with the photostat of
the table furnished by Lend-Lease.
Attachments.
Bail
Regraded Unclassified
192
TREASURY DEPARTMENT
PROCUREMENT DIVISION
office OF THE DIRECTOR
WASHINGTON
August 23, 1941
eserah4um to Herbert E. Gaston, Acting Secretary:
The two primary factors bearing upon the report submitted by
we Division of Defense Aid Reports relative to allocations and ob-
Dentions of lend-lease funds as of July 31, 1941, are as follows:
(a) The report specifies allocations of $268,284,387.00
and obligations of $59, 028, 048.54. The total of
allocations, $268,284,337.00, however, includes
$98,930,860.72 of "frozen funds" representing funds
allocated on requisitions for which we are awaiting
OPM allocations or blanket requistions against which
purchases cannot be made until sub-requisitions are
received detailing specifications. Likewise, there
is included in the Division of Defense Aid Reports'
figure of $268,284,337.00, the total of a revolving
fund which as of July 31, 1941, was $9, 742, 727.96.
Further, there is included in the total, $450,00
representing allocations to the Coast Guard, pre-
sumably for vessels, against which obligations now
total $43, 316.06. Nith these adjustments, the re-
vised total of allocations against which we were in
a position to make purchases July 31, 1941, W8B
$153, 831, 370.29, as against the $268, 284, 337.00
s'hown in the re ort of the Division of Defense Aid
Reports.
Similarly, the total of obligations shown in the re-
port of the Division of Defense Aid Reports,
$59,028,048.54, did not include commitments of
$28, 802, 915.77 representing telephone, telegraphic
and letter awards for which signed formal contracts
had not been received as of July 31, 1941. The De-
fense Aid Report's total of 028, 048.54 includes
only formal contracts and the commitments of
628, 802, 915. are additional.
As stated to you, this matter has been discussed with
representatives of the Division of Defense Aid Re-
ports and we have asked authorization to muke the
Regraded Unclassified
-2-
193
"frozen funds" available for new purchases. Those
requisitions included in their total which we were
not able to go forward with are also being carefully
analyzed so that any further reports will give a com-
plete picture.
(b) Our first formal contract for iron and steel purchases
was not executed until July 11, 1941. This type of
purchase will represent in dollar value in excess of
50% of our total purchases. Therefore, the obligations
for iron and steel as of July 31, 1941, represented but
a very small part of the total allotments at that time
for such purchases.
Under the existing lend-lease procedure, funds are provided
to cover each approved requisition received, accordingly, the total
of "frozen funds" has been steadily increasing and as of yesterday
WBS $128,164,124.89, out of total pending requisitions in the amount
of $230,842,996.92. Illustrative of the items covered by requisi-
tions on which funds are "frozen" is one for zinc to cover 132,832
tons, deliveries to be made through December 31, 1942, for which
$20,000,000 was allocated. Thus far, OPM has allocated a total
of 23,400 tons, hence, actual obligated funds are but $3,599,660.60
8.8 against $20,000,000 allotted for the 18-months' purchase.
Likewise, we received blanket requisitions for carbon steel
requirements in the total amount of 1,000,000 tons and funds are
allocated to the extent of $40,000,000. Allocations by OPM could
not be made until the sub-requisitions are received giving de-
tailed specifications of current requirements.
In view of the report of the Division of Defense Aid Reports
showing total figures, it ia my intention to discuss with them the
factors indicated above in order that a report of results will
specify limitations and give a more complete picture.
Clinton E. Mack,
Director of Procurement
Statement Enclosed
Regraded Unclassified
July 31, 1941
DEFENSE AID REPORT
PROGUREMENT DIVISION ANALYSIS
TREASURY
LIMITATIONS
$512,403,035.00
$512,403,035.00
LESS
450,000.00*
$511,953,035.00
ALLOCATIONS
$268,284,337.00
$268,284,337.00
LESS
450,000.00*
If
9,742,727.99**
If
98,930,860.72***
153,831,370.29
OBLIGATIONS
$ 59,028,048.54
CONTRACTS
$ 58,984,732.48
COMMITMENTS
28,802,915.77
87,787,648.25
% LIMITATIONS ALLOCATED 52.36
30.05
%LIMITATIONS OBLIGATED 11.52
17.15
% ALLOCATIONS OBLIGATED 22.00
57.07
# Coast Guard Funds
## Revolving Fund
### Funds allocated on requisitions dependent on OPM allocations also blanket requisitions
on which action is taken as and when sub-requisitions are sent to Procurement Division
for purchase action.
194
Regraded Uncla
195
ALLECATIONS AND OILIGATIONS of LEND-LEASE (TMBA) IN
RELATION TO DEPARTMENTAL LIMITATIONS
L5 or JULY 11, 1961
Aircraft and
Apricaltural,
Newting, In-
Ordrance and
Miscellaneous
Aeronautical
Tanks and
Industrial,
Vasanis,
specialing
lecensary
Ordnante Stores
Military
Facilities and
Department
Material
and other
Other Vehicles
Printing 16-
Jervices end
administrative
Ships, 3tc.
Expiripment
Complitive
pairin, Etc.
Expenses
Total
correcture
Ileitations
**
I
..
#
..
I
"
$
allocations
..
1 3,000,000.00
$350,000,000.00
:
$
**
or
:
690,305.00
I 353,590,308.00
-
:
..
..
Bligations
"
258,310,200.00
:
..
..
690,305.00
259,006,505.00
**
:
..
:
:
145,917,496.94
FF
---
2,302.19
145,819,797.13
$ of Limitations Allocated
"
:
⑉
1 of Eleitations Obligated
"
:
"
73.80
:
11
100.00
73.21
"
"
...
$ of Allocations Obligated
"
..
"
41.66
..
11
.33
23.23
..
..
:
..
"
"
56.45
:
**
31
56.30
Mritier Commission
limitations
14,000.00
102,000.00
4,921,500.00
621,000,000.00
:
10,000,000.00
1,545,000.00
Illocations
50,000,000.00
266,000.00
294,000.00
728,140,500.00
:
--
:
$39,656,800.00
:-
50,000,000.00
1,206,000.00
Obligations
21,116,799.00
264,000.00
294,000.00
612,537,599.00
::
"
:
$13,939,711.75
..
67,955,381.13
808,494.16
13,797,351.53
254,000.00
4,501.96
578,769,440.55
1 of linitations Allocated
..
"
:
86.90
:
100.00
78,00
0.23
Let Limitatione Obligated
100.00
100.00
04.12
"
--
82.76
:
95.9L
52.33
31.59
100.00
* of Allocations Obligated
1.53
79+49
..
:-
:-
95.23
:-
95.91
57.04
76.81
100.00
1.53
96.49
any
Limitations
380,000,000.00
235,000,000.00
:
146,500,000.00
12,500,000.00
100,000,000.00
155,000,000.00
80,000,000.00
dibitima
1,300,000.00
125,000.00
1,110,625,000.00
379,388,917.00
175,614,421.00
..
146,403,490.00
12,223,086.00
97,260,000.00
146,743,750.00
76,885,360.00
(bligations
1,300,000.00
325,000.00
1,036,164,828.00
101,925,370.75
13,639,778.36
"
30,852,952.95
13,547.00
5,065,579.00
27,771,722.18
39,730,962.43
54,226.18
:
221,974,038.95
1st Allocated
99.64
74.73
..
99.93
97.79
90,28
94,67
90.11
100.00
100.00
93.50
I 4d Obligated
26,82
6.66
..
21,06
->1
5.97
17.92
20.00
4.37
I of Obligated
..
19.99
26,87
6,92
:
21.07
all
0.11
17.00
32.60
4.17
..
21.42
Bdwain
14
4,970,000.00
1,925,366.00
450,000.00
3,725,000.00
1,028,400.00
500,000,000.00
:
5,000.00
299,269.00
allocati:
512,403,035.00
"
4,970,000.00
1,805,366.00
450,000.00
3,725,000.00
258,400.00
258,772,302.00
:
1,000.00
249,269.00
268,284,337.00
August
..
2,705,275.03
81,973.11
43,316.06
1,801,271.38
77,175.00
54,774,277.47
..
:
42,859.69
59,026,048.54
: at Des
Allocated
:.
100,00
93.77
100.00
100.00
25.13
51,35
...
100,00
10.00
52.30
at
Obligated
"
54.43
4.26
9.63
48.36
7.19
19475
13
:
16.92
11.52
NO
Chligated
14
54.43
4+54
9.63
48.36
30,60
21,11
:.
:
14.32
22,00
-
to
1,110,000,000.00
1,813,928,000.00
260,000,000.00
..
293,000,000.00
436,000,000.00
31,000,000.00
25,000,000.00
11,626,306.00
3,300,000.00
Wars
4,183,054,506.00
998,759,756.00
1,520,577,987.00
348,304,232.00
..
25,025,360.00
231,952,002.00
27,411,260.00
20,603,108.00
11,626,506.90
3,300,000.00
3,269,770,211.00
418,016,691.04
1,239,703,240.45
213,266,375.53
"
44,657,328.92
132,109,081.07
2,305,794.43
..
717,372.22
2,050,400,005.00
is
let la
89.98
83.83
75.72
"
29,02
57.79
£1.21
100.00
100.00
7:14
Obligated
37.66
68.35
46.36
..
15.24
30.30
7.64
:
6.19
1,2%
A/R
of
41.85
81.53
61.23
-
52.52
52.43
7.84
:
5,17
IdA
eve
Regraded Unclassified
196
August 25, 1941.
Memorandum for the Secretary's Files
By pre-arrangement Merle Cochran brought in to see me
on Wednesday, August 20, Mr. Teutomu Nishiyama, the Japanese
Financial Attache. The sole purpose of Mr. Nishiyama's visit
was to present the attached memorandum and to ask its careful
consideration by the Treasury Department. The memorandum deals
with the matter of Japanese accounts in the United States and
the freezing order. Mr. Nishiyama's request was that this be
given careful consideration by the Treasury Department, which
I assured him would be done. He had previously given another
copy of the memorandum to Merle Cochran, who undertook to see
that it got adequate consideration. Mr. Nishiyama understood
that but his visit to me was for the record.
Attachment.
Regraded Unclassified
197
1) It 1s estimated that Japan will require funds to the ex-
tent of about $8,500,000 during this year in order to oon-
tinue coupon payments and redemption of various Japanese
Government, Municipal and Corporation Bonds (coupon pay-
ments on repatriated bonds excluded).
2) The Yokohema Specie Bank, Ltd., New York Agency has funds
at present to the extent of about $6,000,000.
3) It is estimated that the Yokohama Specie Bank, Ltd., New
York Agency will be required to remit to Yokohama Specie
Bank, Ltd., San Francisco, Los Angeles and Seattle, a total
sum of about $1,000,000, during this year to cover their
operation expenses within their respective states, and also
to maintain adequate reserve for deposits at the Yokohama
Specie Bank, Ltd., San Francisco and Los Angeles.
4) It is estimated that the Yokohama Specie Bank, Ltd., New
York Agency will require during this year about $2,000,000
to pay its obligations and to cover operation expenses
within the State of New York.
5) In view of the above, in order to continue the said coupon
payments and redemption of Japanese Bonds, the Yokohama
Specie Bank, Ltd., New York Agency, will be in need of funds
to the estimated extent of $5,500,000 during this year.
6) Furthermore, the Yokohama Specie Bank, Ltd., New York Agency
has obligations to the extent of about $6,500,000 under its
confirmed irrevocable Letters of Credit (not documentary)
payable on and after January 1st, 1942.
Regraded Unclassified
198
7) Therefore, in order to be in funds to meet the requirements
mentioned above, the Yokohama Specie Bank, Ltd., New York
Agency must collect its Import Bills Receivable collectable
within New York State which total at present about $19,500,-
000. (There are also Import Bills Receivable collectable
outside New York State--mostly payable in South and Central
America--totalling about $5,000,000 but which are not con-
sidered in this writing.)
However, under the freezing order, the Yokohama Specie Bank
Ltd., New York Agency is unable to collect these Bills Re-
ceivable at present with few emoeptional 08868. Moreover,
since the major portion of these Bills Receivable collectable
within New York State, namely about $16,000,000, are bills
covering imports of Raw Silk (all of this silk is in the U.
S.) and payable by Japanese firms, whose assets are also
frozen, there appears to be remote prospects of completing
collection of such bills. Under the circumstances, special
consideration is requested for the issuance of license allow-
ing the following:
1) to permit the Yokohama Specie Bank, Ltd., New York
Agency, to present such bills for acceptance and
payment, to deliver documents and/or Delivery
Orders on Warehouses and to effect disbursements
incidental to the collection of such bills.
-2-
Regraded Unclassified
199
2) to enable the Japanese firms who are drawees of
such Bills Receivable to perform the necessary and
incidental operations in order to effect payment to
the Yokohama Specie Bank, Ltd., New York Agency.
8) Regarding the Bills Receivable covering Raw Silk, it may be
mentioned that out of the $16,000,000 mentioned above,
about $12,000,000 worth of Raw Silk had been delivered to
the respective drawees against Trust Receipt and/or accept-
ance of the relative bills, and that the balance of Raw
Silk of about $4,000,000 is held in the name of the Yokohama
Specie Bank, Ltd., New York Agency. Since there 18 a spe-
cial freezing order affecting Raw Silk, special considera-
tion and measures are requested to eliminate difficulties
in connection with payments of these silk bills.
aug. aug.20.1941 20.1941
-3-
Regraded Unclassified
200
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
CONFIDENTIAL
DATE August 25, 1941
TO
Secretary Morgenthau
FROM
Prepared by: Mr. Chevraux and Mise Michener
Subject: The Business Situation,
Week ending August 23, 1941.
Summary
(1) Weekly indexes of business activity have receded
moderately from the recent peak reached in the fourth week
in July. Barron's index has declined for 3 consecutive
weeks, although the aggregate decline 18 less than 2 per-
cent. The New York Times index has shown about the same
decline from the recent neak, despite a fractional rise in
the week ended August 16.
(2) Production of 1942 model passenger care 18 expected
to be out 50 percent. Curtailment for the 4 months ending
November 30, however, will be limited to 26.5 percent for
the industry AB a whole. Production of trucks of 1* tone or
more will be unrestricted.
(3) Non-defense consumers of steel are worried over their
ability to get steel supplies after September 1 when the full
effect of the recent priorities order will be felt. As a re-
sult of the seriousness of the steel scrap shortage, defense
officials will meet this week with scrap brokers end industry
representatives to seek means to increase scrap supplies.
(4) Retail trade continues to boom, with department
store sales in the week ended August 16 running 40 percent
above year-earlier levels. Some additional stimulus to buy-
ing has resulted from the impending curb on installment
purchases which 18 to become effective on September 1.
(5) The BLS all-commodity index in the week ended August 16
Vas unchanged at 89.6 after advancing for 5 consecutive weeks.
Basic commodity prices rose slightly last week, due to an ad-
vance in domestic commodities led by barley, cottonseed oil
and lard.
Regraded Unclassified
201
- 2 -
Industrial production at high level
The preliminary estimate of the FRB seasonally-adjusted
index of industrial production for July was confirmed by
more complete information and the index still stands at 162,
as compared with 157 in the previous month. (Bee Chart 1.)
Publication of results for the various components of the index
reveale that, on a seasonally-adjusted basis, the durable
goods industries closely identified with the defense program
were again in the vanguard of the rise, Thus, such items as
transportation equipment, machinery and non-ferrous metals
moved up sharply to new highe. (Refer to Chart 1, lower
section.)
The rise in the adjusted index, however, was entirely
due to the operation of seasonal adjustment factors, since
the level of the unadjusted index in July was unchanged from
June. Normally, a decline in production occurs during July,
and the fact that production held steady caused the adjusted
index to rise substantially. In contrast, it should be
noted that seasonal factore from now into the fall call for
8. rise in actual production, BO that merely to maintain the
present level of the index, output will have to show a
noticeable rise.
Weekly business indexes below peak
Thus far in August, both the New York Times and Barron's
weekly indexes of business activity have shown recessions
from the peak figures reached in the fourth week in July.
Barron's index has declined gradually for 3 consecutive weeks
to 138.8 in the week ended August 16 from 141.0 in the week
ended July 26. The New York Times index in recent weeks has
moved more erratically. In the week ended August 16, it
moved up 0.3 point to 130.9. However, this figure was still
2.4 points below the July peak. (See Chart 2, top section.)
One important factor in the fluctuations in the Times
index has been the difficulty of making proper seasonal adjust-
ment for automobile production. Continued relatively large-
scale production in the fourth week in July helped to run the
index up to the peak figure then recorded. This was followed
by a sharp decline in the following week as large-scale produc-
tion ourtailment got under way. Nevertheless, production
during the change-over period has continued to stay well
above year-earlier levels. Thue, output last week was nearly
double that of the corresponding week in 1940. (Refer to Chart 2,
middle section.)
Regraded Unclassified
202
- 3 -
Near the end of the week, the production quotas for the
manufacture of 1942 model cars were announced by OPM and OPACS.
Although it 1s intended to curtail passenger car production
50 percent for the entire model year, the curtailment in the
four months ending November 1941 will be limited to an over-
all out of 26.5 percent. The out for each individual company,
however, differs rather noticeably from that fixed for the
industry as a whole. Furthermore, there will be no restric-
tions in the output of trucks of 1/ tone or more, which in
fact have been given B. high priority rating.
Lumber production heavy
A sustaining factor in the Times business index in recent
weeks has been lumber production. Stimulated by the boom in
building, lumber production recently has been reaching new
highe, and in the week ended August 16 reached the highest
level in 11 years. As a result, the adjusted index of lumber
production has risen 6 percent since the latter part of July.
(Refer to Chart 2, middle section.) Lumber prices as a whole
recently reached the highest level in 18 years, and about a
week ago OPACS imposed a price ceiling on Southern pine
roughly $3.00 per thousand board feet under prices recently
prevailing for that type of lumber.
Freight carloadings still below June peak
Although railroad freight traffic has continued to run
far above year-earlier levels, carloadings have not exceeded
the peak figure reached at the end of June. (Refer to Chart 2,
lower section.) After sagging moderately in the previous
2 weeks, freight carloadings in the week ended August 16 rose
somewhat more than seasonally and contributed to the rise in
the Times business index during that week.
While the seasonal peak in freight carloadings does
not come until the early part of October, the failure of
carloadings to move above their late June peak apparently
has caused somewhat less concern to be evidenced recently
regarding the railroads' ability to handle the fall traffic.
However, the average daily surplus of freight cars in the
early part of August was reported to be down to 59,000 oars,
as compared with 129,000 a year earlier. One factor which
has tended to alleviate somewhat the equipment situation
has been the headway made by the railroads in their repair
program. Thus, by August 1, bad-order cars had been out
to 4.8 percent, as compared with 9 percent & year earlier.
Regraded Unclassified
203
4
As a result of the heavy equipment buying program of
the railroads, freight cars on order on August 1, 1941
totaled 89,000 as compared with only 20,000 & year earlier.
However, partly due to lack of steel, equipment manufacturers
have not been able to turn out new cars as fast as
expected. As & result, new freight cars actually installed
in the first 7 months of 1941 showed a gain of less than
3,000 units over the comparable period in 1940.
Non-defense steel consumers worried by priorities order
The railroads are among the various consuming groups
who are concerned over their ability to get steel supplies
after September 1 when the full effects of the recent
steel priorities order will be felt. Under this order,
steel mills will have to complete defense orders ahead of
non-defense work. In the face of this situation, the
railroads have placed orders for thousands of tons of
rails which are needed in operations and yet carry no
priorities rating. As a result of the steel priorities order,
such non-defense steel consumers as makers of refrigerators,
washing machines, stoves, signs, bed springs, etc., are ex-
pected to have to curtail operations.
Steel operations slightly higher
Steel operations last week rose 0.7 point to 98.2 per-
cent of capacity. This rate, however, is still 1.4 pointe
below that prevailing at the end of July. (Refer to Chart 2,
lower section.) The shortage of steel scrap continues to be
a major concern of the steel industry and, in view of the
seriousness of the situation, defense officials have called
about 150 scrap brokers and representatives of steel mills
and foundries to meet with them on August 27 to seek means
of increasing supplies of scrap.
Retail trade boom continuing
The recent upsurge in retail trade has thus far shown
little sign of abating. Department store sales during the
week ended August 16 again ran far above year-earlier levels
with the nation-wide gain amounting to 40 percent. The
largest increase occurred in the Cleveland district where
sales were 54 percent above the corresponding week in 1940.
Some additional stimulus to buying 18 reported to have
resulted from the impending curtailment of installment
credit. Near the end of the week, the Federal Reserve
Regraded Unclassified
204
- 5 -
Board announced that the curb on installment credit would
go into effect on September 1 and would apply to 24 durable
consumer goode items.
New orders index elightly lower
Our index of new orders for the week ended August 16
showed 8. further decline of approximately 2 percent. Refer-
enoe to Chart 3 will reveal that the unusually heavy ordering
which occurred in July has been followed by & considerable
let-down which has now run into its third week.
The small decline in the week ended August 16 was almost
entirely due to a decline in orders for other products than
steel and textiles. New orders for steel during the week
mentioned actually rose to 125 from 123 percent of capacity,
while textile orders showed only a very slight decline.
BLS all-commodity index unchanged
After 5 consecutive increases, the BLS all-commodity
index of wholesale prices was unchanged at 89.6 for the
week ended August 16. All but 2 of the 10 major groups
comprising the index showed gains, but these were offset
by a 1.6 percent decline in farm products and a trifling
decrease in fuel and lighting materials.
Basic commodity prices a trifle higher
Although the BLS index of 11 import commodities declined
1.1 percent in the week ended August 22, this decline was
slightly more than offset by B. rise in domestic commodity
prices. (See Chart 4, top section.) As & result, the com-
bined index of 28 sensitive commodities rose fractionally
during the period mentioned.
The deoline in import commodities was due almost
entirely to a sharp drop in the price of burlap resulting
from the imposing of a price ceiling by OPACS well below
recent market levels. (Refer to Chart 4, lower section.)
The rise in domestic commodity prices last week was led
by barley, oottonseed oil and lard. (Refer to Chart 4, lower
section.) Hog prices also strengthened and reached & new high
for the year. The rise in lard, hoge and allied products was
attributed in part to the effects of Government buying. Thus,
Government purchases of lard and cured and canned pork products
last week were reported to have reached the highest levels
since last May.
Regraded Unclassified
205
- 6 -
June exports declined despite foodstuffs gain
Excort figures recently released for the month of June
reveal that the trend toward increased foodstuffs exports
received further impetus in the month mentioned. Ae a
result of substantial shipments of meats, dairy products
and egge under lend-lease arrangements, manufactured food-
stuffs exports reached B. total of $28,000,000 -- the highest
monthly figure since November 1930. Due to the increased
foodstuffs shipments, total agricultural exports in June
ran 40 percent above year-earlier levels. (See Chart 5.)
Despite the gain in meats and dairy products shipments,
aggregate exports of United States merchandise in June dropped
12 percent below the previous month and totaled $332,000,000.
Farticularly noticeable declines occurred in exports of air-
craft, machinery, and automobiles. (Refer to Chart 5.)
In making public the June export figures, the Department
of Commerce stated that part of the decline was due to B.
change in statistical procedure whereby the usual period for
including delayed documents was shortened. Thus some ship-
ments, estimated at 5 percent of the total, which were
actually made in June will be carried in the July trade
statistics.
Regraded Unclassified
FEDERAL RESERVE BOARD INDEX OF INDUSTRIAL PRODUCTION
1935-39-100
1939
1940
1941
1942
JFMAM J J A S o N D J F M A M J J A S o N D J F M A M J J A 5 o N D J F MAMJ
PERCENT
PERCENT
Seasonally Adjusted
165
165
160
160
155
155
150
150
145
145
140
140
135
135
130
130
125
125
120
120
115
115
110
110
105
105
100
100
95
95
J F M A M J J A S o N D J F M A M J J A 5 o N D J F M A M J J A $ o N D J F M A M J
1939
1940
1941
1942
Selected Components
June and July 1941. Compared with 1935-39 Average
PER
Transporation Equipment
CENT
Sexeenally Adjusted
Machinery
220
Nonferrous Metals
200
iron and Stee/
180
Textiles
COMBINED INDEX
150
Stone, Clay and Gloss
Chemicals
Lumber: etc.
140
Fivers
Annung and Publishing
Leather. etc.
Manufactured Foods
120
100
1935-39
June
July
100
1941
206
of - - of - Transary
C-383-5
- I - -
Chart 1
Regraded Unclassified
SELECTED BUSINESS INDICES
BUSINESS ACTIVITY
PER
CENT
Seasonally Adjusted
Est Normal 100
130
44
120
40
110
39
100
NO
N X Times
80
JAN
MAR.
MAY
JULY
SEPT.
NOV
LUMBER PRODUCTION
AUTOMOBILE PRODUCTION
PES
CARE
CENT
1935 39 . 100. Adjusted
THOUSANDS
U.S. and Canada
140
150
41
401
47
130
125
40
120
100
110
75
20
39
100
50
40
25
N.F. Times
Words Est.
60
0
JULY
SEPT.
NOV
JAN
MAR.
MAY
JULY
SEPT.
NOV
JAN
MAR.
MAY
FREIGHT CAR LOADINGS
STEEL INGOT PRODUCTION
CADE
PER
THOUSANDS
Total
CENT
Per Cent of Capacity
40
900
100
41
800
40
-
60
700
N
6E.
60
$00
40
500
207
Am #y Agen
Amar / and 3 Inst
400
20
MAR
MAY
JULY
SEPT
NOV
JAN
MAR
MAY
JULY
SEPT
NOV
JAN.
(ffice of the Security of the Trabary
C-404-3
- - - -
Regraded Chart Unclassified
n
INDEXES OF NEW ORDERS
Combland Indes of How Orders and Selected Components
335
1940
1941
.
&
a
-
e
of
,
,
P
.
A
3
e
-
di
PERCENTABLE
POINTS
POINTS
250
290
280
280
270
270
260
260
250
250
240
240
230
230
220
220
210
210
Total (contribut Index)
1008 . 100
200
200
(se
190
160
180
175.
170
160
160
150
150
140
146
136
130
120
120
110
110
100
100
8
90
80
Total assisting Steel and Textiles
to
70
70
8
60
50
50
B
40
Stall Orders
30
30
zu
20
10
Testile Orders
10
o
.
$
0
.
0
-
.
A
.
5
e
a
e
J
F
.
A
.
c
-
,
4
&
#
.
.
208
1939
1940
1941
- - - - - - -
- 4 - - -
1-6-0
Chart 3
Regraded Unclassified
209
MOVEMENT OF BASIC COMMODITY PRICES
Domestic and Imported
AUGUST 1939-100
PER
PER
PER
CENT
PER
Weekly Average
CENT
CENT
Daily
CENT
165
IGO
150
165
160
160
140
140
// Imported
// Imported
Commodities
Commodities
155
155
130
130
17 Domestic
150
Commodities
150
120
120
145
145
110
110
17 Domestic
140
Commodities
140
100
100
135
A M J J A S o N D , F M A M J J A S o
2
si
,
14
II
$
5
12
19
26
2
1
16
19
30
6
135
1940
1941
MAY
JUNE
JULY
AUG.
SEPT
1941
Percentage Change for Individual Commodities. August 1940 Low to August 15 and to August 22, 1941
PER
Tollow 135,7%
PER
CENT
17 Domestic Commodities
"Cottonsed Oil 1303X
CENT
II Imported Commodities
120
=120
Lord 100.0%
-100
-100
*Coffee 982%
Shellac 966%
Nogs 8443
*Coroo 055%
-80
Print Clath 6935
+80
Cotton 68.5%
"Burlop 729%
Viegin 623%
+60
Wheat 596%
*60
Hides 53,8%
Butter 321%
Wool 501%
Barley 204%
Sugar 418%
*40
Lead 232%
+40
Com 165%
Flasseed 32.9%
Steers /6.3%
Silk 21.0%
Zine 1512
+20
+20
Rubbar202%
"Capper 110%
Stee/ Scrap.dem 8.72
Tin 30%
Steal Screp exp. 2.7%
0
0
Aug. 1940
Aug 15
Aug. 22
Aug. 1940
Aug.15
Aug.22
Low
Low
-
Regraded Unclassified
U.S. TOTAL TRADE AND EXPORTS BY COMMODITIES
-
-
DOLLARS
-
-
1934
TEM
HD
HOW
-
1141
(H)
Millions
DOLLARS
Minume
(
sue
TOTAL TRADE
-
are
-
400
AND
140
Exports
- —
mm/
18A
Imports
100
see
230
200
www
190
150
150
100
190
140
159
Trade Balance
100
100
50
56
B
#
-58
-3u
1927
1980
INTI
vou
1411
-
1933
-100
ITEM
1917
IVSA
me
INS
1941
EXPORTS OF US MERCHANDISE
Total Nonagricultural
Selected Nonagricultural Commodities
DOLLARS
DOLLARS
DULLARS
DOLLARS
Millions
Millione
Machinery
Mines
Iren and Stati
Milliani
15
Impe and Ital Serve
41
(tail
is
325
45
45
10
a
E
"
"
e
300
9
so
12
#
à
-
-
*
-
a
,
A
.
0
-
-
43
in
"
275
4d
10
and Preducts
"
NO
JE
31
19
45,
250
-29
14
18
40
=
IN,
225
"
$
a
"
.
29
38
4
*
.
$
L
.
-
o
-
e
200
19
40
21
Automobiles
18
45
10
175
.
"
15
-
M
28
e
as
-
1
16
of
A.
.
a
M
e
-
150
"
E
26
1
Aircraft
-
so
15
.
L
#
#
a
125
--
18
it
46
3.
18
100
as
"
.
I
/
-
A
-
.
=
-70
%
se
35
&
75
5
WT
Channels
14
73
11
:
Cappir
16
20
to
so
-
É
14
F4
IN
39
all
24%
as
la
18
12
*
-
-
#
-
o
e
a
.
JAN MAR MAY ANY SEPT NOV
-
.
-
A
2
-
4
1.
7
N
=
-
.
-
-
M
M
,
Total Agricultural
Salected Agricultural Commadities
DOLLARS
INILLANS
DOLLARS
DOLLARS
Millions
Millions
I
Miliam
Cettin
Tobacco
Prest and Flest
AB
48
18
isa
"
is
is
se
><
I
125
++
=
a
-
.
#
+
"
100
-
Carn
"
is
is
OF
e
se
le
10
75
5
ill
If
*
-
-
so
as
e
D
8
B
E
.
.
.
#
e
.
=
it
15
16
201
MORTS and Lard
fruda Dral and
23
if
IS
19
Canned
no
É
#
-
a
1
,
o
.
JAN MAR MAY JULY MPT BUY
à
E
M
€
@
of
a
e
J
E
à
5
I
Regraded nclassified
211
TREASURY DEPARTMENT - DEFENSE SAVINGS STAFF
RADIO SECTION
August 25, 1941.
The Treasury Hour program, "Millions For
Defense", LOW holds top place on the Hooper
"National Ratings" report which is based on the
listening audience of the network shows.
This program is broadcast from 8:00 to
9:00 P. M., Wednesdays, over the Columbia
Broadcasting System.
Please note the column marked "Program
Rating" on the enclosed copy of the Hooper
Survey. "Millions For Defense" heads the list.
Regraded Unclassified
C. E. HOOPER, INC.
AVERAGE CALLS PER HOUR
2928
"NATIONAL RATINGS" REPORT
AURUST, (94)
Report for
EVENING PROGRAMS
BASED ON WEEK BEGINNING FAIDAY, AUGUST 1, 1941,
SETS-IN-USE"
PROGRAM
PER CENT OF
RATING"
LISTENERS
RANKING
SPONSOR
PROGRAM
NET-
DAYS
TIME=
WORK
THIS
THIS
THIS
REPORT
CHANGE
REPORT
REPORT
CHANGE
ORDER
CHANGE
TREASURY DEPARTMENT
MILLIONS FOR DEFONSE
CBS (30)
WEDNESDAY
9:00
21.9
-0,3
9,9
+1.3
45,3
+6,6
1
JERGEN'S LOTION
WILLIAM SHIPERFOR. WWinchell
e( 17) 13)
SUNDAY
9:00/
24,2
-5.1
9,7
-6.3
40.2
-21,2
2
KRAFT CHEESE COMPANY
DON AMEDHE for Bing Crosby
RED (30)
THURSDAY
9:00
20.5
-5,4
9,7
-2.1
47.3
+1,9
3
SEALTEST, INC.
RUDY VALLEE
A( 19) B(4)
THURSDAY
10:00
22,0
-3,1
9,6
-0,4
43,6
+3,6
4
KAY KYSER I
RED (30)
WEDNESDAY
10:00
22.7
-3,6
9,3
-0.8
40,8
+2,5
5
LUCKY STRIKE CIGARETTES
TAKE IT OR LEAVE IT
CBS (30)
SUNDAY
10:00
23.0
+0,2
9,2
-1.8
40.0
-6.3
6
EVERSHARE, INC,
HAP HAZARD
RED (30)
TUESDAY
9:30
21,4
+0,9
8.8
+1.0
40.9
+2,9
7
JOHNSON'S WAX
MR. DISTRICT ATTORNEY
RED (30)
WEDNESDAY
9:30#
24.0
+0.3
8.5
+0.1
35,6
0.0
B
VITALIS
WOKY STAIKE CIGARETTES
INFORMATION PLEASE
R(24) B(6)
FRIDAY
8:30
20.4
-2.7
8.2
40.4
40,0
+6.1
9
PURE OIL COMPANY
He M. KAL TENBORN
R(7) B(1)
TTSA
7:45
20.5
+2,0
8.2
0.0
40.0
-4,5
10
+2.4
7.9
-0,2
34.0
-5.0
"
PERSODENT
A. DATE WITH JUDY
RED (30)
TUESDAY
10:00
23.1
SUN On COMPANY
LOWELL THOMAS
B(8) R(5)
MIWIF
6,45
17,6
-4,4
7.7
-2.2
43.9
-1.2
12
MARS, INC.
DOCTOR 1.0.
RED (30)
MONDAY
9:00
24,7
-1.0
7,7
+0.9
31.1
+4.6
13
CAMEL CIGARETTES
B.ONDIE
CBS (30)
MONDAY
7:30/
19.6
-0,4
7,4
-0,6
38,0
-2.2
14
SANKA COFFEE - GENERAL FOODS
WE, THE PEOPLE
CBS (30)
TUESDAY
9:00!
22,5
-0,4
7,4
-1.1
32.8
i'm
15
ROYAL DELATIN DESSERTS
WHAT'S My NAME:
RED (30)
SUNDAY
8:00
16.6
7,3
39.0
16
LUCKY STRIKE CIGARETTES
YOUR HIT PARADE
CBS (30)
SATURDAY
9:00P
18.6
-1.3
7.2
-0.1
38.7
+2,0
17
-2.7
35.4
-6.6
TENDERLEAF TEA
ONE MAN'S FAMILY
RED (30)
SUNDAY
8:30
20.0
-2.2
7.1
is
RINSO - LEVER BROS,
DRAND CENTRAL STATION
CBS (29)
WEDNESDAY
8:00
21,0
7.1
33.9
19
CAY NINETIES REVUE
CBS (28)
PONDAY
6:30
22.0
+0.2
6.8
+0.7
31.1
+3,2
20
MODEL TOBACCO
EMERSON DRUG Co.
you POP
CBS (22)
MONDAY
e:00
17,4
5.7
38.5
21
WOODBURY SOAP
THE PARKER FAMILY
e(17)R(13)
SUNDAY
9:15
18.5
-5,8
6,5
-3,2
35,4
-4,5
22
CHESTERFIELD CIGARETTES
TAID WARING
RED (30)
KTLTE
7:00/
20.1
-1.1
6,5
40,8
32,4
+5,6
N
% Sex "Program
formal - estal calls is class
citize resiving quelic
Const Now York Time.
$
FIRST HALF-HOUR OF PROADCAST.
Figure Le parathegia indiciti
- Beard -
Includes
clocking prints and
Regraded Unclassified
213
DEFENSE SAVINGS STAFF
ADVANCE SCHEDULE OF RADIO PROGRAMS
MONDAY - AUGUST 25, 1941.
Time:
1:45 - 2:00 P.M.
Program:
Kate Hopkins
Station:
WJSV and CBS Network
Time:
2:30 - 2:45 P.M.
Program:
John's Other Wife
Station:
WMAL and NBC Blue Network
Time:
7:30 - 8:00 P.M.
Program:
Voice of Firestone
Station:
WRC and NBC Red Network
Time:
9:00 - 9:30 P.M.
Program:
Famous Jury Trials
Station:
WMAL and NBC Blue Network
Time:
11:15 P.M. - 12:00 M
Program:
Music You Want, When You Want It
Station:
WMAL - Washington, D. C.
THESE PROGRAMS PROMOTE THE SALE OF DEFENSE BONDS AND STAMPS.
Regraded Unclassified
411
CONFIDENTIAL
UNITED STATES SAVINGS BONDS
Comparative Statement of Sales During
First Twenty Business Days of June, July, and August, 1941
(June 1-24, July 1-24, August 1-23)
On Basie of Issue Price
(Amounts in thousands of dollars)
I
1
Amount of Increase
I
Sales
Percentage of Increase
:
1
or Decrease (-)
:
or Decrease (-)
Item
:
:
:
#
August
I
July
:
August
I
July
2 August
:
July
:
June
-
over
1
over
#
over
I
over
1
:
#
:
July
:
June
2
July
I
June
Series 1. - Post Offices
* 32,136
$ 40,323
$ 32,410
8,157
$ 7,913
- 20.3%
24.4%
Series 1. - Banks
61,343
73,914
49,469
- 12,571
24,445
- 17.0
49.4
Series 1. Total
93,479
114,237
81,879
- 20,758
32,358
- 18.2
39.5
Series 1- Banks
16,297
20,089
24,101
- 3.792
- 4,012
- 18.9
- 16.6
Series 0- Banks
101,430
127,430
152,681
- 26,000
- 25,251
- 20,4
- 16.5
Total
$211,206
$261,756
$258,660
-$50,550
$ 3,096
- 19.36
1,2%
Office of the Secretary of the Treasury, Division of Research and Statistics.
August 25, 1941.
Source: All figures are deposite with the Treasurer of the United States on account of proceeds of
sales of United States Savings Bonds.
Note: Figures have been rounded to nearest thousand and will not necessarily add to totals.
Regraded Unclassifie
CONF
UNITED STATES SAVINGS BONDS
Daily Sales - August 1941
On Basis of Issue Price
(In thousands of dollars)
Date
Post Office
Bank Bond Sales
All Bond Sales
Boad Sales
Series I
Series 3
Series Y
Series G
Total
Series I
Beries 7
Series G
Total
August 1941
1
$ 1,467
$ 3,296
$ 1,163
$ 7,586
$ 12,045
4 4,763
$ 1,163
$ 7,586
# 13,512
2
1,500
3,030
726
6,101
9,857
4,530
726
6,101
11,357
4
3,606
4,376
1,892
10,092
16,361
7,983
1,892
10,092
19,967
5
1,278
2,822
928
7.334
11,084
4,099
928
7,334
12,362
6
1,810
4,195
1,156
10,752
16,103
6,005
1,156
10,752
17,912
7
1,789
3,475
652
5,636
9,763
5,264
652
5,636
11,552
8
1,812
3,069
999
3,362
7.430
4,881
999
3,362
9,242
9
1,492
3,195
958
4,101
8,255
4,688
958
4,101
9.747
11
2,683
3,686
1,187
4,308
9,181
6,370
1,187
4,308
11,865
12
873
2,281
488
4,908
7,676
3,153
488
4,908
8,549
13
1,430
3,491
639
2,949
7.079
4,921
639
2,949
8,509
14
1,246
2,833
697
4,594
8,124
4,079
697
4,594
9.370
15
1,385
2,876
566
2.972
6,415
4,261
566
2,972
7.799
16
1,020
2,140
365
2,914
5.418
3,159
365
2,914
6,437
18
2,333
3.534
1,099
4,266
8,899
5,866
1,099
4,266
11,232
19
768
1,629
466
2,986
5,082
2,398
466
2,986
5,850
20
1,495
3,191
554
4,058
7,802
4,685
554
4,058
9,296
21
1,540
2,585
646
4,779
5,010
4,125
646
4,779
9,550
22
1,372
3,496
628
4,001
8,126
4,869
628
4,001
9,498
23
1,236
2,143
489
3,731
6,364
3,380
489
3.731
7,600
Total
8 32,136
$ 61,343
$ 16,297
$101,430
$179.071
$ 93,479
$ 16,297
$101,430
$211,206
Office of the Secretary of the Treasury, Division of Research and Statistics.
August 25. 1941.
Source: All figures are deposits with the Treasurer of the United States on account of prooseds of sales of
United States Savings Bonds.
Note: Figures have been rounded to nearest thousand and will not necessarily add to totals,
Regraded Unclassified
216
CONFIDENTIAL
DEPOSITS IN TREASURER'S ACCOUNT FROM
SALE OF THEASURY BONDS, TAX SERIES I/
Total
August 1
to 23
Daily Totals
inclusive
Date
Amount
Boston
29,083
August 1
1,736
2
49,984
New York
311,295
4
16,169
Philadelphia
15,304
our
5
22,502
6
21,419
7
59,186
Cleveland
51,294
B
55,003
9
31,436
Richmond
6,520
11
46,814
12
21,472
Atlanta
2,805
13
23,089
14
41,555
Chicago
86,291
15
11,087
16
14,877
St. Louis
12,761
18
16,074
19
18,716
Minneapolis
9,742
20
15,438
21
35,253
Kaneas City
6,153
22
19,908
23
22,952
Dallas
1,270
San Francisco
12,152
TOTAL
-
544,670
Based on telegraphic reports from Federal Reserve banks of credits in
Treasurer's account.
Office of the Under Secretary
August 25, 1941.
Regraded Unclassified
217
August 25, 1941.
Dear Mr. MaDougall:
Your letter of August 21st, enclosing
a short digest of the food policy plan for
post-war reconstruction, reached this office
during the Secretary's absence en a brief
vacation. I shall be very glad to bring year
communication to Mr. Morgenthan's attention
imediately upon his return to the effice.
Sincerely yours,
(Signed) H. S. Klotz
1. s. Klets,
Private Secretary.
Mr. P. A. ReDougall,
Australian Legation,
Vashington, D. c.
GEF/dbs
Regraded Unclassified
218
AUSTRALIAN LEGATION,
WASHINGTON,D.C.
August 21st, 1941.
Dear Mr. Morgenthaus
When you asked me to send you a
paper on the food policy plan for post-war reconstruction
I only had & ten page document available.
Under a challenge from Lord Halifax
I reduced this to a single page which I now enclose.
I expect to leave by air for England
next week.
Yours sincerely,
th hi Dougall.
The Honourable
Henry Morgenthau, Jr.,
Secretary of the Treasury,
Washington, D.C.
Regraded Unclassified
219
Ireaten from Rest
Regraded Unclassified
Im order to implement in part that aspect of the
Declaration which is concerned with freedom from west it is proposed that the
nations of the British Commonwealth and the U.S.A. should enter into - agreement-
(1) To accept national policies to ensure that all
sections of the populations of our respective
countries shell be able to secure diets "adequate for
health.
(11) To direct our relief and reconstruction policies
toward enabling Europe and other countries to be
in a position to adhere to the proposed agreement.
The most elementary measure of social justice is that all children
born in a modern democracy shall have, DO far na public action can influence
the issue, equal opportunities for the enjoyment of a healthy life.
Actually . child born of poor parents in 0 poor district has a
for lower expectation of life and of freedom from disease than the child of
well to do parents.
Inadequate food Le one of the major factors causing this grove
social insquality.
The adventages of solecting food as the first objective in the
campaign for"freedom from want" are:-
(a) that a diet "adequate for health" is a known factory
(b) that its provision 1a wall within our productive
capacities)
(c) that in no other way can public heelth be BO asskedly
and rapidly improved]
(d) that along such lines the agricultural problems of our
respective countries en be solved;
(o) that the adoption of this policy would have a most
stimulating effect upon international trade.
The methods to be adopted will vary from country to country.
In the U.S.A. 8. nationwide enlargement of the 'Blue Stamp plan might prove
suitable, in the U.E. the memo might well be to adopt wartine food policy for
consumers to the BOTO generous seales possible in pence.
The costs involved will be substantial but will be for lower
than wartine costs provided full use is unde of the natural advantages of
domentic agricultures and of the potential abundance of imports of certain
Coods,
Agreement between our countries along the lines envisaged
coulds-
(1) provide 4b intelligent banis for further commodity agreements
(the draft whent agreement is 4 case in point).
(11) facilitate the planning of ralief and reconstruction.
(111) constitute an important stop towards the elimination of the
grosser forms of social injustice.
FLMAKER
220
HOLD FOR RELEASE
HOLD FOR RELLASE
HOLD FOR ARLEASE
August 25, 1941
CONFIDENTIAL: To he held in STRICT
2011
CONFIDENCE and no portion, synopsis,
or intimation to be published or given
out until the READING of the President's
Massage has begun in the Rouse of
Representatives. Extreme care must
therefore be exercised to avoid premature
publication.
STEPHEN EARLY
Secretary to the President
TO THE HOUSE 02 REFRESENTATIVES:
I am returning herewith, without my approval, a bill
(R. R. 5300) entitled "An Act relating to wheat mirketing quotas
under the Agricultural Adjustment not of 1938, as amended, to
provide for withholding from the normal channels of trade and
commerce Government-owned cotton and whoat or the 1940 and
provious crops, and to provide es pur centum of parity with
respect to peanuts of the 1941 crop."
It la my conviction that approval of the measure would
seriously and adversely affoct the Agricultural Adjustment Program
and the attendant policies which have been so beneficial to our
farmers during the part l'ew years.
One provision of this act would permit the farmers to
dispose of, as feed, without penalty, nn indefinite amount of whest
produced in excess of their farm acreage allotments for 1941. This
provision would place a premium on noncompliance with the whost
program, constitute a breach of faith with the large majority of
farmers who complied with the program, and 50 relax the control
features of the farm program as to adversely affect future partici-
pation therein.
Ivon more objectionable is the provision which would
direct the Commodity Credit Corporation to acquire title to all
cotton and wheat of the 1940 and previous crope in which it has
an interest, and to hold these commodities for an indefinite period.
The goal of the Administration's agricultural policy has been
parity prices for the farmers and this has been accepted by the
producers, the consumers, and the Congress as fair and reasonable.
I do not foel that farmers would wish this acceptance destroyed by
action designed to force priocs above parity through the arbitrary
withholding of Government-owned stocks from the normal channels of
trade and commerco.
Recently, I spproved legislation enacted by the Congress
authorizing the Commodity Credit Corporation to make loann at a
rate of 85 percent of the parity prices of the Mve basic agricul-
tural commodities, which, in addition to agricultural conservation
payments and authorized parity payments, will enable the growers
of these crops to realize parity for their 1941 production.
Perity, however, is only one of two elements of income. The other
is volume sold. The ultimated effect of this bill would be to
restrict the volume of the products sold and thus shrink the use
of and the market for those commodities. Moreover, in times such
08 those no one can foresee how soon these Government-owned stocks
my be needed.
The Commodity Credit Corporation should be frec to dispose
of the commodities sequired under the loan programs in an orderly
ranner, Otherwise, it will be impossible to maintain an "Ever-Normal
Oranary" to protect farmura against surpluses und consumers against
Regraded Unclassified
221
- 2 -
scarcity. Restriction of this authority of the Corporation
would greatly increase its losses, nullify the effectiveness
of existing programs, end, by breaking faith with consumers,
be inconsistent with our present price control efforts.
In my judgment, this bill is contrary to sound
Covernmental policy and the long-time best interests of both
farmers and consumers,
FRANKLIN D. ROOSEVELT
THE WHITE HOUSE,
August 25, 1941.
Regraded Unclassified
222
TREASURY DEPARTMENT
INTER-OFFICE COMMUNICATION
DATE
August 25, 1941
TO
Secretary Morgenthau
FROM
Mr. Cochran
STRICTLY CONFIDENTIAL
Official sales of British-owned dollar securities under the vesting order
effective February 19, 1940:
S proceeds of
$ Proceeds of
Shares Sold
Bonds Sold
Total
Aug. 18
213,981
4,407
218,388
19
193,319
44,178
237.497
20
236,910
14,196
251,106
21
119,686
27,644
147.330
22
130,617
33,700
164,317
23
35,799
14,054
49,853
930,312
138,179
1,068,491
Sales from
Feb.22,1940 to
(
Aug. 16,1941
278,413,829
36,810,062
315,223,891
Total
Feb.22,1940 to
Aug. 23. 1941
279,344,141
36,948,241
316,292,382
316,292,382
S proceeds of non-vested securities sold
Aug. 11, 1941 to Aug. 16, 1941
800,000
proceeds of non-vested securities sold
Sept. 1, 1939 to Aug. 9. 1941
231,200,000
proceeds of non-vested securities sold
Sept. 1, 1939 to Aug. 16, 1941
232,000,000
232,000,000
GRAND TOTAL
548,292,382
Aug. 18
2 units sold
$26
a shares
$101
Stock Dividend
243 rights sold
$ 333
Aug. 21
22
41
II
il
53
284
#
#
$ 386
55,007
#
II
101,817
7/24 to 3/16
Total
7/24 to 8/23
55,291
Il
"
$102,203
Nol
Regraded Unclassified
223
Miss Chauncoy
TREASURY DEPARTMENT
INTER-OFFICE COMMUNICATION
DATE
August 25, 1941
TO
Secretary Morgenthau
FROM
Mr. Cochran
STRICTLY CONFIDENTIAL
Official sales of British-owned dollar securities under the vesting order
effective February 19, 1940:
No. of Shares
$ Proceeds of
Nominal Value
$ Proceeds of
Sold
Shares Sold
of Bonds Sold
Bonds Sold
Aug. 18
8,298
213,981
5,000
4,407
19
5,723
193,319
45,000
44,178
20
7.897
236,910
17,000
14,196
21
3,899
119,686
38,000
27,644
22
5,077
130,617
49,500
33,700
23
840
35,799
16,000
14,054
31,734
930,312
170,500
138,179
Sales from
Feb.22, 1940 to
Aug.16, 1041
9,743,139-1/2
278,413,829
44,784,216
36,810,062
Total
Feb.22,1940 to
Aug.23,1941
9,774,873-1/2
279,344,141
44,954,716
36,948,241
Aug. 18
2 units sold
$ 26
Stock dividend
9 shares
$ 101
Aug. 21
243 rights sold
$ 333
22
41
"
If
53
284
e
.
$ 386
7/24 to 8/16 55,007
"
=
101,817
Total
7/24 to 5/23 55,291
H
a
$102,203
J110
Regraded Unclassified
% A23
224
MEMORANDUM
FROM
British Supply Council in North America
Mrs. Henrietta Klotz
TO
Compliments of E.N. Gray
Regraded Unclassified
225-
STATEMENT NO. 29
AIRCRAFT SHIPPED TO U. K. AND OVERSEAS COMMANDS
By Sea
By Air
During
During
YPE
DESTINATION
ASSEMBLY POINT
Week ended
Week ended
August 2, 1941
August 24, 1941
L
Airacobra
U. K.
U.K.
3
-
TISS
Tomahawk
M. E.
Port Sudan
8
-
ITED
Chesapeake U.K.
U. K.
2
-
UGLAS
Boston III
U. K.
U. K.
11
-
Boston III
M.E.
Port Sudan
7
-
ESOLIDATED
Liberator
U.K.
U.K.
(via Gander)
.
1
CKHEED
Hudson V
U.K.
U. K.
(via Gander)
,
1
Hudson III U.K.
U. K.
(via Gander)
-
15
TALS
31
17
tish Air Commission
just 25, 1941
Regraded Unclassified
STRICTLY CONFIDENTIAL
EXPORTS OF PETROLEUM PRODUCTS, SCRAP IRON AND SCRAP STEEL
FROM THE UNITED STATES TO JAPAN, RUSSIA, SPAIN, AND GREAT BRITAIN
sleary
AS SHOWN BY DEPARTURE PERMITS GRANTED
226
Week ended August 23. 1941
:
:
:
:
:
JAPAN
:
RUSSIA
SPAIN
:
GREAT BRITAIN
:
PETROLEUM PRODUCTS
Fuel and Gas 011 (including
Diesel 011)
-
-
60,500 Bble. 1,206,910 Bbls.
Crude -
Blended or California
High Octane Crude*
-
-
--
-
All Other Crude
-
-
--
--
Gasoline -
Gasoline ДОВ
--
237.065 Bbls.
--
597.880 Bble.
Gasoline 3°
-
--
--
598,000 Bble.
All Other Gasoline
--
--
--
--
Lubricating 011 -
Aviation Lubricating 011***
-
-
-
113,353 Bbls.
Transformer Oil
-
--
750 Bbls.
--
All Other Lubricating 011
-
-
13,500 Bbls.
36,942 Bble.
Tetraethyl Lead***
-
-
--
--
"Boosters", such as Iso-
Octane, Iso-Hexane, or
Iso-Pentane
--
-
-
--
SCRAP IRON AND SCHAP STEEL
Number 1 Heavy Melting Scrap
-
--
--
--
All Other Scrap
-
-
-
-
Office of the Secretary of the Treasury, Division of Research and Statistics.
August 25, 1941.
Source: Office of Merchant Ship Control, Treasury Department.
-
Any material from which by commercial distillation there can be separated
more than 3 percent of aviation motor fuel, hydrocarbon or hydrocarbon
mixture - President's regulations of July 26, 1940.
:
Aviation Gasoline.
4a defined in the President's regulations of July 26, 1940.
Regraded Unclassified
227
Regraded Unclassified
PARAPHRASE OF TELEGRAM RECEIVED
FROM: American Embasey, Lendon
DATE: August 25, 1941, 2 p.m.
NO.: 3849
THE FOLLOWING IS STRICTLY CONFIDENTIAL,
With reference to the Embassy's telegram of August 20,
midnight, No. 3775, at the suggestion of the Inderdepartmental
Committee which deals with the freesing of the assets of the
Chinese and the Japanese, on Saturday Waley wrote to the
Embassy to express the intention of the British Treasury;
that is, information in regard to everything that passes
in connection with this matter will be given to the Embassy
for its information.
According to Waley, the only transaction which the
United Kingdom might desire to carry out is that of a
barter of some three hundred tone of magnesium (valued
at 00,000 Streets) against three hundred tons of asbostos
(valued at something more than 18,000 pounds) together
with other goods provided agreement our be reached on
what Japan is prepared to take and what the United Kingdom
is ready to send,
The statement was also made by Valey that the Govern-
ment of Great Britain was considering the restriction of
exports to occupied China with certain exceptions in regard
to the needs of Shanghai which furnishes free Chinaj how-
ever, no desision in regard to this had been reached.
It is
228
It is the impression of the Interdepartmental Committee
that there is something appreaching shaos due to the fact
that no efficient exchange control arrangements have been
set up by the Chinese. However, the British and American
members of the Stabilization Board are cooporating to 000
what can be done in regard to this matter. to far, the
no news from Niemoyer has been received by the British
Treasury. (7) is & paraphrase of a letter of Waley's.
This morning, & produce order announced that effective
as of today a license will be required for all exports
to China, Macas and the Japanese Pacific Islands. However,
this order does not cover shipments over the Burna Road
which have come through Rangeon, The announcement in the
newspapers states that it is the purpose of the order
to complement that prohibiting all exports to Japan except
by license. It states that it is designed to put all
end to the channel of trade with the Japanese through
the occupied parts of Chinas August 18 was the date of
the order concerning experts to Japan,
VINANT,
KAIPAK
Regraded Unclassified
C
0
229
P
Y
PARAPHRASE OF TELEGRAM RECEIVED
FROM: American Consulate General, Hong Kong, China,
via N.R.
DATE: August 25, 1941, 3 p.m.
NO.: 327
STRICTLY CONFIDENTIAL:
FOR THE SECRETARY OF THE TREASURY FROM FOX.
After a strenuous trip, K. P. Chen and I reached
Hong Kong on Sunday night. We found many difficult Board
problems awaiting us there.
Some of the problems which we found are as follows:
1. The first activity of the Board in the market seems
to be reasonably satisfactory. Since it involves exchange
control, the question of relationship between the Board
and the Foreign Exchange Control Agency is raised. The
Chinese Government is giving the latter Agency, which is
of a political complexion and of doubtful technical
competence, B. more prominent position then is being given
to the Board. The Board plane to turn over its Hong Kong
exchange operations to the Agency unless word is received
from the Treasury Department to the contrary. Two million
tribute WPB the cost of the first week's operation of the
Board.
2. Unless all doubts are (?), American banks hesitate
to function in foreign exchange matters. It is their claim
that they are acting on instructions from their home offices.
The
Regraded Unclassified
230
- 2 -
The Board is willing to cooperate on E 50-50 basis. However,
it is not willing to take all of the risk. Would it be
possible for Washington to arrange for (7) banks to cooperate
better in the future? The banks are adding to the uncertainty
which exists in Hong Kong.
3. Can B. reply be expected in the near future in regard
to the following:
-A- The Chinese banks in Hong Kong are caught in &
dilemma between the inclusion of Hong Kong in the sterling
area and by the U.S. freezing order. Would Washington prefer
to have this problem left entirely to negotiation between
the United Kingdom and the Chinese Government?
-B- Is the interpretation of the Treasury of the agree-
ment of April 1 and the letters which were exchanged on April
25 that of having the Board relegated to EL minor role with
the major position placed in the Agency?
-C- Is there any possibility that private commercial
banks might be issued a license? Is it possible for them
to operate under license No. 58 at the present time?
-D- Is it essential to have an American observer in
Shanghai? Is there a possibility of someone being assigned
from Washington 80 that I may be able to recall to Chunging
Frese and Taylor!
This is the end of the message.
SOUTHARD
EA:PAK
Copy:wec:8-27-41
Regraded Unclassified
C
0
231
P
Y
DEPARTMENT OF STATE
WASHINGTON
August 25, 1941.
In reply refer to
EA 840.51 Frozen Credits/3048
The Secretary of State presents his compliments
to the Honorable the Secretary of the Treasury and en-
closes a copy of telegram No. 18, dated August 14, 1941,
from the American Consulate General, Mukden, China, in
regard to the requirement of specific licenses of
American nationals in Mukden for bank withdrawals that
exceed yuan 500 in any month.
Enclosure:
From Consulate General,
Mukden, No. 18, August 14,
1941.
Regraded Unclassified
232
CORRECTED COPY
TEM
PLAIN
Mukden via Peiping
and N.R.
Dated August 14, 1941
Rec'd 9:15 p.m. 16th
Secretary of State,
Weshington.
18, August 14.
Reference Department's 139 to Peiving and Peiping's
circular August 13, 1 p.m.
American nationals here including consulate officers
require specific licenses for bank withdrawals exceeding
yuan 500 in any month (equivalent to American $118 at nominal
official rate about American $50 at ascertained real rate for
foreign and domestic transactions), specific licenses have
been granted to Americans for amounts needed for exchanges
but an application by this office to withdraw yuan 4900
equivalent to American $1150 at official rate (which is held
in this office's accounts as B. special deposit and which it
was contemplated asking Department's authority to apply to
disbursing) has been reissued and B. new application requested
which would give an analysis of the Consulate's receipts and
expenditures. New application is not (repeat not) being made.
Under the trade control law shipments of personal effects from
Manchuria require permite. Effective since August 1 American
nationals and other foreigners must obtain permits to leave
Regraded Unclassified
-2-
Menchuria. For those desiring to travel outside of Manchuris
and return here permits may be denied to those who have not
obtained volice aroroval of their itineraries outside Manchuria.
Delay and difficulty has been experienced by applicants for per-
mits. Although B. request to Hainking authorities July 2 for
information as to what routes of exit were available to
Americans has not (repeat not) been answered, it has ascertained
that Americans have been successful in leaving Manchuria only
by North China rail route: the Dairen-Jonan route, Seishin-Wanen
and Rechin-Jaren routes being closed to them by inability to
obtain tickets of tassage. Effective today regulations have
been published requiring foreigners (including Americans and
American consular officers) to obtain permits for all travel
outside the cities or towns of their residence. Americans in
outlying towns have for past several weeke been subject to
nolice orders in local travel, for example, an American designed
to visit his office was given police permission to do so only
upon his guarantee that he would return to town of residence on
same day. Americans and others are subject to search of barrare
including nocketbooks, et cetera; either while traveling within
or leaving Manchuris, sometimes several times on a short journey.
Under existing foreign exchange control laws Americans and
others (including American consulate officers) may not take or
send out of Manchuria without vermit, any local or other currencies,
monies, drafts, checks, et cetera; except that 10 yuan equivalent
to American $2.50 may be exchanged at frontier. Licenses are
Regraded Unclassified
234
- 3 -
seldom granted for foreign exchange and this office has been
unsuccessful in repeated attempts since 1939 to obtain license
to permit to the United States funds belonging to deceased
Americans of less than 5,000 yuan or approximately $1100.
KRENTZ
ALC
copy:bj:8-36-41
235
DEPARTMENT OF STATE
WASHINGTON
In reply refer to
EA 840.51 Frozen Credits/3185
August 25, 1941.
The Secretary of State presents his compliments to
the Honorable the Secretary of the Treasury and encloses
a copy of telegram No. 3268, dated August 23, 1941, 2 p.m.,
from the American Embassy, Berlin, Germany, transmitting
a translation of a memorandum which was handed to an
officer of the Embassy by an official of the Foreign Office
on August 20.
Enclosure:
From Embassy, Berlin,
No. 3268, August 23,
1941.
Regraded Unclassified
236
LET
GRAY
BERLIN
0
0
Dated August 23, 1941
P
Y
Rec'd. 4:20 pollo
Secretary of State,
Washington.
3268. August 23, 2 p.m. (SECTION ONE)
The following 1s a translation of a memorandum
handed on August 20 to an officer of the Embassy by
an official of the Foreign Office:
"In the memorandum which was presented to the
American Charge D' Affaires on July 4. 1941 the fue
ture regulation of financial transactions of the
American Governmental offices in Germany and their
officials and employees was discussed. The disposi-
tion of private accounts by officials and employees
of the American Embassy vas left. for later regulation.
The German Embassy in Washington has now trens-
mitted telegraphically the terms under which the
diplomatic officials and employees of the German En-
bassy may exercise disposition of their private ec-
counts.
According to the German Embassy's telegram the
license issued to the bank in which the account is
carried has the following text:
"Treasury Department: License to Riggs National
Bank,
Regraded Unclassified
- 2 -
237
Bank, Washington,
One. You are hereby licensed to nake payments,
transfers of credit, and withdrawals from the accounts
in the names of the following:
(There follow the names of those officials and
employees who wish to exercise free disposition of
their accounts above the amount of $500 monthly cov-
ered by general licenses number 11 and the sums ap-
plied for. The license then continues):
Two. This license is granted upon the statements
and representations filed with the Treasury Department
and is subject to the condition among others, that
you will comply in all respects with the Executive
Order No. 8389 of April 10, 1940 B9 amended, and
the regulations issued thereunder and the terms of
this license.
Three. The license shall furnish a report at
the end of each calendar month showing the balance
to the credit of the account at the beginning and the
end of each report period, all credite to the account
indicating the source of the funds, and all payments,
transfers, and withdrawals made pursuant to the 11-
cense indicating the payes, and the nature, and the
purpose of the payment, and shall make available for
inspection any relevant information or records TO-
quested by the Secretary of the Treasury.
Four.
Regraded Unclassified
238
-3-
Four. This license, which shall expire July 31st,
1941, is not transferable, is subject to the provisions
of the Executive Order No. 8389 of April 10, 1940 and
the regulations issued thereunder and may be revoked
or modified at any time in the discretion of the Sec-
retary of the Treasury. If this license was issued as
a. result of wilful misrepresentation it may in the
discretion of the Secretary of the Treasury be declared
void from the date of the issuance or from any other
date."
The above license is also contingent on the
granting of reciprocity.
In order to carry out reciprocity it will be
necessary that those diplomatic officials and employees
of the American Embassy who wish to exercise disposi-
tion of an amount greater, than the sum of reichamerks
1,000 which is exempt from permits and who have hither-
to not had an account with a German bank must estab-
lish such an account into which they would pay the
reichemark sums which they normally obtain against
dollar checks or eight drafts.
The Charge d' Affaires is requested to submit to
the Foreign Office 8 list of the officials and employees
in question and of the sums of which they degire to
exercise disposition as well as the bank and the name
Regraded Unclassified
239
of each account. An assurance should also be given that
these accounts only contain the personal funds of the owners,
that the accounts will be used only for the personal expenses
of the owners and their families in Germany and that the German
Government will be immediately notified if the owners leave
the territory of the Reich or cease to be connected with the
American Embassy.
For reasons of expedience it is requested that the officials
and employees carry all their accounts in the same German bank
in Berlin.
The Embassy in Washington has further reported that the
monthly balances required from the Ri gs National Bank under No.
3 of the license be submitted on the basis of the data resulting
from the deposits and withdrawals and the checks. If necessary
the bank makes inquiries of the payee, particularly with regard
to the nature and purpose of the payments. For this additional
work the bank charges each account-holder $2 monthly in fees.
For safe deposit boxes & fee of $5 is charged for every ovening
which must be exactly documented. The license is renewed
automatically without further application by the member of the
Embassy concerned.
As soon as the information requested above is submitted the
Foreign Office will cause the necessary permit to be issued to
the bank carrying the accounts and the conditions to be made to
the bank which are necessary under the decrees issued in order to
guarantee reciprocity in every respect".
MORRIS
GW
Regraded Unclassified
C
0
240
P
Y
PARAPHRASE OF TELEGRAM RECEIVED
FROM: American Embassy, Berlin, Germany
DATE: August 23, 1941, 2 p.m.
NO.: 3268 - SECTION TWO
It was made cleer by the official in question that
the action (described in the memorandum) was being taken
solely as e perallel to the action of the U.S. He emphasized
that the license was granted, contingent on reciprocity, to
the Riggs National Bank. It is my opinion that there would
be a cancellation of the Germen measure immediately should
the United States Government withdrew its similar measure
in regard to the bank accounts of German employees and
diplomatic officers.
It is assumed that the license issued to the Riggs
National Bank by the Treasury Department with respect to
the accounts of German officers is quoted correctly in
the German memorandum, Therefore, it would be appreciated
if the Department would call the Treasury Department's
attention to the fact that in view of conditions existing
in Germany reciprocity in such a matter is scarcely feasible.
No bank accounts in Germany are held by the officers or
personnel of this mission. In general, the use of checking
accounts is not customery. The maintenance of bank accounts
in a Germen institution would not be & facility to American
official personnel in Berlin but rather en annoyance.
Moreover,
Regraded Unclassified
-2-
Moreover, the subjection of such accounts to the type of
scrutiny BE that described in the license to the Riggs
National Bank would place the members of the American
mission in Berlin in a most unhappy situation; they are
already the objects of a burdensome degree of surveillance.
Should the Treasury Department be unable to cancel
the restrictions which are contained in Section 3 of the
license that require reports in detail in regard to the
origin of the deposits and concerning the reason for
every payment made from the accounts in question - above
five hundred dollars -, the Embassy suggests that the
amount which is free of formal scrutiny be raised to at
least 81,000 each month. Less hardship on this mission
would then be entailed by the reciprocal German action.
I would indeed warmly recommend that the amount which is
free of scrutiny be not less than 31,500 each month for
officers of the German Embassy, carried on the diplomatic
list of the State Department.
The Embasay also would like to propose that the
Department urge the Treasury to abandon this type of
ópen control entirely with respect to the German mission
chief in Washington, D. C. The standards of diplomatic
courtesy are being GO sorely strained in these times by
other Governments that it would seem that we should herdly
need to edd to the inroads which have already been made.
Confidently,
Regraded Unclassified
212
-3-
Confidently. it is my feeling that the Department
will understand the burden which a continuance of this
measure would place unon the daily life of the Embasy
at Berlin. It is hoped that the Department will use its
best efforts to effect the prompt remedial action without,
of course, opening the door B0 wide as to permit abuses
which it is intended to prevent by the U.S. regulations.
The unhappy consequences which would result to every
member of the U.S. Embassy's staff at Berlin, if compelled
to live in the atmosphere which the maintenance of these
regulations would bring about, cannot be over-emphasized.
This matter would be just about the last strew in view
of the fact that at the present time there is a prospect
of a long and dreary winter before the Embassy. If a
measure of this kind is not promptly dealt with, I have
every reason to fear that a deterioration of morale and
efficiency of performance will result. It would make it
all the more difficult to bear if the U.S. Government
would be responsible for the enactment of the German
counter-measures.
It is thoroughly realized that in the enactment of
general national legislation all the repercussions of the
measure adopted cannot be foreseen by the authorities
who are responsible primarily for the legislation.
The accomplishment of the object in hand, as I see it.
can be
Regraded Unclassified
243
4
can be effected by rules that are less direct and much less
obnoxious.
It is my belief that the Department will understend
all that has been said. I am looking forward confidently
to a prompt end suitable amelioration of this deeply
veratious and worrisome measure through the efforte of the
Department.
This is the end of the message.
MORRIS
EA:PAK
840.51 Frozen Credits/3185
Cogy:bj:hbrtwec:8-26-41
Regraded Unclassified
244
PARAPHRASE OF TELEGRAM RECEIVED
FROM: American Legation, Managua, Niearague
DATE: August 25, 1941, 2 p.m.
NO.: 145
It 18 requested that reference be made to the Legation's
despatch No. 19, dated August 13, recomending the deletion
from the blacklist of the name of Leopoldino Viuda de Caligaris.
According to information which I have received from
the President of the Jabali mines (impeptant gold producers)
shipments of supplies which are vital to that mine are being
held up because the name of Caligaris appears on the blacklist.
Therefore, because of this, the account of the Jabali mines
in the U.S. has been frozen. The Jabali mines has as one
of its important stockholders Mr. Caligaris.
The Legation will appreciate it if appropriate action
can be taken to expedite the consideration of the recommendation
made by th it for the deletion of the name of Caligaria from
the blacklist and also for the unfreesing of the funds of
the Jabali mines.
BOAL
- - - -
ONICE of a
AMERICA
EAIPAX
2E633 1811
BECEIAED
Regraded Unclassified
TREASURY DEPARTMENT
245
got /
INTER-OFFICE COMMUNICATION
DATE August 25, 1941
TO
Secretary Morgentheu
CONFIDENTIAL
FROM Mr. Cochren
Registered sterling transactions of the reporting banks were as follows:
Sold to commercial concerns
$20,000
Purchased from commercial concerns L20,000
Open market sterling remained at 4.03-1/2. The only reported transactions
consisted of 16,000 purchased from commercial concerns.
The Central Bank of China in Chungking cabled instructions to the New York
Wederal Reserve Bank today to purchase L100,000 for its account. Since registered
sterling may not be purchased here for credit to a Chinese account, and in view
of the fact that the existing supply of open market sterling in New York is very
limited, the Federal communicated with the Bank of England, The latter agreed to
supply the required sterling at 4.03-1/2.
In New York, closing quotations for the foreign currencies listed below were
es follows:
Canadian dollar
10-7/8% discount
Argentine peso (free)
.2383
Brazilien milreis (free)
.0505
Colombian peso
.5800
Mexican peso
.2070
Urugusyan peso (free)
.4375
Veneruelan beliver
.2755
Cuban peso
1-1/16% discount
In the unofficial exchange market in Shonghai, the yuan was quoted nominelly
it 47/84. up 3/16/.
Te purchased 503,000 in gold from the earmerked account of the Central
Zenk of Peru.
Te sold $750,000 in gold to the Central Bank of Haiti, which was added to
its earmerked account.
The Federal Reserve Bank of New York reported that the Bank of Mexico
chipped $474,000 in gold from Mexico to the Federal for its account, disposition
unknown.
Regraded Unclassified
confidential
- 2 -
The State Department forwarded B. cable to us reporting the following ship-
ments of gold from England, both of which are for sale to the New York Assay Office:
136,000 shipped by the Westminster Bank, London, to the Guaranty Trust Company,
New York.
58,000 shipped by Mocatta and Goldmmid, London, to the Banque Belge pour 1 'Etranger,
New York.
194,000 Total
In London, spot and forward silver were both fixed 1/16d higher at 23-1/2d,
equivalent to 42.67%.
The Treesury's purchase price for foreign silver was unchanged at 35¢. Handy
and Herman's settlement price for foreign silver was also unchanged at 34-3/4.
We made two purchases of new production silver emounting to 125,000 ounces
under the Silver Purchase Act. This silver, which was bought for forward delivery,
came from various foreign countries.
We also purchased 200,000 ounces of silver from the Bank of Cenada under our
regular monthly agreement.
BMS
PH:wac:8-25-41
Regraded Unclassified
247
BRITISH EMBASSY,
WASHINGTON, D.C.
25th August, 1941
PERSONAL AND
SECRET
Dear Mr. Secretary,
I enclose herein for your personal
and secret information a copy of the latest
report received from London on the military
situation.
Believe me,
Dear Mr. Secretary,
Very sincerely yours,
R.I. Ca-pbi'l
The Honourable
Henry Morgenthau, Jr.,
United States Treasury,
Washington, D.C.
248
TELEGRAM RECEIVED FROM LONDON AUGUST 22ND, 1941
1.
Afternoon August 20th north of Port Said enemy
aircraft torpedoed British tanker of 4,782 tons. She
proceeded under her own steam.
2.
Free French submarine reports having torpedoed
one merchant vessel off Norwegian coast. No details
available.
3.
Three Beauforts attacked with cannon and machine
gunned seven trawlers off Calsis; two seen to be on
fire.
4.
Daylight August 21st. Royal Air Force carried
out three bomb attacks on enemy objects. Severe
damage done to Ijeniden Iron and Steel Works. During
air combats we lost fourteen fighters, one pilot safe.
One enemy fighter destroyed. Ten probably, six damaged.
5.
Night of August 21st/22nd our bombing operations
cancelled owing to weather, enemy air activity over
the United Kingdom negligible.
6.
Benghasi bombed as usual, eighteen Marylands
with fighter escort bombed enemy tanker northwest of
Bardia.
Regraded Unclassified
249
CONFIDENTIAL
MILITARY INTELLIGENCE DIVISION
TENTATIVE LESSONS BUMETIN
WAR DEPARTMENT
No. 149
Washington, August 25, 1941
0-2/2657-235
NOTICE
The information contained in this series of bulletins
will be restricted to items from official sources which are
reasonably confirmed. The lessons necessarily are tentative
and in no sense mature studies.
This document 18 being given an approved distribution,
and no additional copies are available in the Military Intel-
ligence Division. For provisions governing its reproduction,
sea Letter TAG 350.05 (9-19-40) M-B-H.
THE GERMAN THEORY OF WAR
SOURCE
This is the second of a series of bulletine based on a report
submitted November 18, 1940, by en American official observer in Berlin.
These bulletins will illustrate some of the principles of German
military leadership, both practical and theoretical.
Although it also contains comments by the observer, this bulletin
consists largely of extracts from Vom Kriege, by Clausewits.
CONTENTS
1. GENERAL
2. COMMENTS
CONFIDENTIAL
- 1 -
Regraded Unclassified
250
CONFINENTIAL
THE GERMAN THEORY OF WAR
1. GENERAL
"War is a large scale duel; its individual duels are comparable
to the struggle between two wrestlers. By physical force each tries to
compel the other to carry out his own will and then to throw him thus
rendering him unable to offer further resistance.
"From that point of view war 18, therefore, an act of force.
Its purpose is to impress our will upon the enemy. Force utilizes the
inventions of art and science to combat force. Insignificant limitations
like international law affect this utilization but do not materially
weaken its power. Since there is no moral force beyond the conception
of state and law, physical force is therefore the means to the end,
Imposing our will upon the enemy is the objective; in order to reach this
objective safely we must make the enemy defenseless - and that 10 the
real aim of warfare.
"Humanitarians may easily believe that the true art of war
should envisage an almost bloodless artificial disarmament or subjuga-
tion of the enemy. No matter how well this theory may sound, it is
clearly in error. In such dangerous matters as war, the worst mistakes
are those which are made for humanitarian reasons.
"As the use of physical force to its fullest extent in no way
excludes the use of intelligence, the side which employe force relent-
lessly, without consideration of blood, will gain the upper hand - if
the enemy does not follow the same procedure. It will thus set the
pace for its opponent, and both will speed each other on to the utmost,
their inner counterweights their only limitations.
"That is how we should consider the question; it is & useloss
end mistaken effort if we forget nature itself in our dislike for the
raw elements.
"Essentially, strife between men consists of two different
elements - the hostile feeling and the hostile intention. We have
chosen the latter of these two elements as the basis for our defini-
tion because it is the more common. The most primitive passion of
hatred, which may almost be termed instinctive, always includes the
hostile intention. On the other hand, there are many hostile intentions
which are not accompanied by any hostility of feeling, or at least not
by any overpowering hostility of feeling. Among unenlightened peoples,
intentions born by instinct are most prominent; among educated peoples,
intentions born by the brain. This difference, however, does not l'e
alone in the nature of the education or lack of it, but in the circum-
CONFINENTIAL
- 2 -
251
CONFIDENTIAL
stances and conditions surrounding it as well, and for that reason the
difference does not necessarily exist in every case, but only in the
majority of cases, In B word, even the most educated people can break
out in passionate hostilities against each other,
"We see, therefore, how false we would be if we were to state
that the war of educated peoples is merely B. rational act by governments
and if we were to consider var more and more devoid of passion, a
struggle that would eventually require not physical masses of fighting
forces but only the relations of those masses - & sort of algebra of
actions,
"If enlightened nations do not kill their prisoners, or destroy
land and country, it is because intelligence mingles more with their
conduct of var and has taught them more effective means of employing
force than such 8 primitive utterance of instinct.
"Wer is not created suddenly: its preparation is not the work
of 8. moment, Each of the two opponents can, therefore, usually judge
the other from what he 1s and from what he does or does not do, or
more strictly speaking. from what he should be and what he should do.
"If we adhere primarily to the term war in its purest sense we
must admit that a political purpose is not actually within its scope;
for if war is an act of force to compel the enemy to fulfill our
wishes, then the sole object must always be to overthrow the enemy:
that is, to render him defenseloss,
"Later, ae we study the war plan, we will investigate more
closely what is meant by meking a state defenseloss, At present we
mist differentiate between three general aims which encompass all else,
the enemy's fighting force, his country, and his will.
"The fighting force must be destroyed: it must be put in such
a condition that it cannot continue combat.
"The country mist be conquered; else B. new fighting force night
form within it.
"Even after those two goals have been accomplished, however,
the war - the hostile tension and the effect of enemy forces - may not
be considered closed so long as the enemy's will has not also been
destroyed. We may be in full possession of the enemy's country, but
until his government and his allies have been forced to sign 8 peace
treaty, or the citizens have been subjugated, the fight may be renewed
from within the land itself, or through the assistance of allies. Of
course this can also happen after B. peace is signed; but that only
proves that not every war is in itself a complete decision and settlement.
CONFIDENTIAL
- 3 -
252
CONFIDENTIAL
Even if this is the case, however, a number of sparks, which would
otherwise have continued to glow in silence, will be snuffed out when
the agreement to end hostilities is signed, and tensions will be loosened,
because all minds will be turned toward peace - and there are always
many people in every country and under all conditions who will steer far
from the path of resistance, But whatever the situation may be, with the
signing of peace we must consider the objective achieved and the business
of war ended,"
2. COMMENTS
In interpreting Clausewitz, principally through the studies of
von Schlieffen, the Germane have arrived at the following basic
principles:
a. The principle of total war, in which the force of every
agency and every individual of the nation is enlisted to
crush the enemy nation;
b. The principle of the offensive, which demands that the war be
carried into the enemy's country and that he be destroyed on
his own soil - the German mind does not conceive of B. var
on German soil;
c, The principle of surprise, which demands that the enemy be
struck before he is ready to receive the blow - this calls
for repid mobilization and great speed of movement in order
to direct the decisive blow at the weekest point;
d, The principle of annibilation, which demands not only the
decisive defeat of the enemy, but the destruction of his
armed forces B.B well - the old Cannae doctrine on a grand
scale. The modern version is the march of huge armies
against the entire front of the enemy border, Where the
enemy holds, he is contained; where he is weak, the attack-
ing units filter through to strike him from the rear, The
enemy force is then separated into islands which are
successively destroyed by the overwhelming power of all
arms;
0. The principle of the balanced force, by which the prime
mission of all supporting arms is to keep the infantry
marching unmolested, and at maximum speed, deep into the
enemy country where the final decision is to be won,
This type of warfare requires leaders who are physically and
mentally young: who are confident in their own ability and are highly
aggressive in spirit. It requires in addition that the leadere have
CONFIDENTIAL
4
253
CONFIDENTIAL
a full comprehension of the basic fact that the team is stronger than
the individual, and that every military unit from the squad to B.
group of armies 1s a member of the greater team - the nation. This
type of leadership leaves little room for eccentrics or temperamentals,
and no place for grendstand players.
CONFIDENTIAL
- 5 -
254
RESTRICTED
G-3/2657-220; No. 476
M.I.D., W.D.
11:00 A.M., August 25, 1941
SITUATION REPORT
I. Eastern Theater.
Ground: Violent fighting is reported from the Leningrad area
as the German and Finnish forces press the attack on that city.
German pressure 1s increasing against the Russian
forces out off in the Tallinn area of northwestern Estonia.
Powerful Russian counterattacks are being launched
toward Staraya Ruesa and Smolensk.
The progress of operations in both the Gomel area
and in the Ukraine remains obscure. Reports indicate that the Germans
are attempting to force crossinge of the Dnepr at Dnepropetrovsk and
Zaporozhe.
Air: Railway lines east of Leningrad were the chief target
of Gorman dive bombers on the 22nd,
II, Western Theater.
Air: British. British bombers attacked communications and
other objectives at Dusseldorf during the night with some losses.
German. Night operations carried out again against
airfields in England and harbore on the west coast.
III. Middle East Theater.
Air: Italian communiques reported heavy losses in British
planes operating from Tobruk during the last week, British planes
attacked Tripoli on the 22nd.
Ground: Continued lack of any significant activity.
RESTRICTED
Regraded Unclassified
255
TREASURY DEPARTMENT
WASHINGTON
DEFENSE SAVINGS STAFF
8/07/41-
Honerable Henry Morgenthau, Jr.,
Secretary of the Treasury,
Washington, D. C.
Dear Mr. Morgenthaut
In case you have not seen it, I am sending you
a copy of the issue of, "Banking", for the month of
August and call to your attention the fact that your,
"Tax Savings Plan", seems to be carried in full in
this issue.
I am glad also to report that information coming
in seems to indicate that a large number of banks who
had not qualified as issuing agents for the Series E,
Defense Savings Bonds, have qualified during the month
of August and I believe that by the end of September,
you will be very much pleased with the showing.
I hope you have a nice vacation and with highest
regards and best wishes, I beg to remain,
Sincerely yours,
B. M. Edwards,
Assistant
Regraded Unclassified
256
DEFENSE SAVINGS STAFF
ADVANCE SCHEDULE OF RADIO PROGRAMS
TUESDAY - AUGUST 26, 1941.
Time:
5:30 - 5:45 P.M.
Program:
Pnul Sullivan
Station:
WJSV and CBS Network
Time:
6:30 - 7:00 P.M.
Program:
Second Husband
Station:
WJSV and CBS Network
Time:
7:00 - 9:30 P.M.
Programt
Johnny Presents
Stati.n:
WRC and NBC Hed Network
Time:
7:30 - 8:00 P.M.
Program:
"For America We Sing"
Sterring John Charles Thousa,
Dr. Frank Black's Orchestra
with Dr. Black conducting.
and the NBC Chorus.
Station:
WMAL and NBC Blue Network
Time:
9:30 - 10:00 P.M.
Program:
College Hunor
Station:
WRC and NBC Red Network
Time:
11:15 P.M. - 12:00 M
Program:
"Music You want, When Y.u Want It".
Station:
WHAL - Washington, D. C.
THESE PROGRAMS PROMOTE THE SALE OF DEFENSE BONDS AND STAMPS.
Regraded Unclassified
257
August 26, 1941.
Memorandum for the Secretary's Files
When the Secretary called from Montreal this morning I told him
that the President yesterday vetoed the wheat and cotton freesing bill.
The Secretary was much pleased since he believed the bill to be out-
rageous and over the telephone had asked Dan Bell to reply to the request
of the Bureau of the Budget for Treasury comments by an outright recom-
mendation for a veto. This had been done in a letter to the Budget
Director and a draft of a veto message sent over on August 18. Copies
are attached.
Under the supposition that I would attend the Cabinet Meeting on
Friday of last week the Secretary had also sent word to me, through
Stephens, asking me to renew at the Cabinet Meeting our recommendation
for a veto of the bill.
A clipping telling of the President's veto of the bill is also
attached.
Herbert Jus E. Gaston
Attachments.
Assistant Secretary of the Treasury.
Regraded Unclassified
258
COPY
Aug. 18, 1941.
The Director,
Bureau of the Budget.
Sir:
The Department is in receipt of your letter of August 14, 1941,
subsi tting BL faceimile of an enrolled anactment (H. R. 5300, 77th
Cong., lat Sess.), "An Act to amend Public Law Numbered 74 of the
Seventy-seventh Congress, relating to wheat-marketing quotas under the
Agricultural Adjustment Act of 1938, as amended," for comment.
The Department 18 strongly of the opinion that this bill should
not receive the approval of the President. Without passing on the other
features contained in the bill, the particular provisions to which we
take exception are those relating to the authority of the Commodity
Credit Corporation to dispose of Government-owned stocks of cotton or
wheat. Under such provisions, with a few inconsequential exceptions,
no Government stocks of either cotton or wheat could be sold during the
continuation of the present European war and thereafter until the
Congress otherwise provides. It is the view of the Treasury that this
restriction is indefensible from any standpoint and its presence in the
bill affords sufficient grounds for a veto.
The Government now owne six million bales of cotton. Cotton prices
have risen from 9-1/2 cents a pound on August 1, 1939 to about 16 cents a
pound at the present time. The present estimate of the new cotton crop is
that it will be shorter than in any year since 1935. The Government-hald
stocks, if available for sale, can be used to avert any hardship through
shortage. The Government also owns about one hundred seventy million
bushels of wheat. The current crop will be large, but demand conditions
and existing controls have resulted in a substantial price advance.
The obvious purpose of this provision in the legislation is to
create an ertificial scarcity in cotton, as well as in wheat, and thereby
to enhance their price. Surpluses of farm products, or of any other com
modity for that matter, should not be withheld from the market when their
prices have reached reasonable levals and when the demand for them is on
the increase.
Regraded Unclassified
259
- 2 -
For these reasons the Department recommends that the bill be
not approved. There is enclosed a suggested draft of veto message.
By direction of the Secretary:
Very truly yours,
(Signed) C. R. Schoeneman
Administrative Assistant
to the Secretary.
Enclosure.
Regraded Unclassified
C
260
o
P
Y
To the House of Representatives:
I return herewith, without my approval, H. R. 5300,
entitled "An Act to amend Public Law Numbered 74 of the
Seventy-eeventh Congress, relating to wheat-markoting
quotas under the Agricultural Adjustment Act of 1938,
as amended."
This bill provides, among other things, that the
Commodity Credit Corporation with minor exceptions may
not sell or otherwise dispose of any cotton or wheat
owned by it during the continuance of the present war
and thereafter until the Congress shall otherwise pro-
vide. The practical effect of this provision would be
that the Commodity Credit Corporation would not be able
to dispose of any of this cotton or wheat until and un-
less the Congress changed the law. This provision alone
affords sufficient justification for a. disapproval of the
bill in toto and therefore I will confine my criticism
to that provision.
The Commodity Credit Corporation now owns six mil-
lion bales of cotton and one hundred seventy million
bushels of wheat, The price of cotton has advanced from
9½ cents in August, 1939, to about 16 cents at the present
time. The advance in the price of wheat has not been
relatively so great, but it has been substantial. In the
light of the existing situation, and the unpredictable
future, the freezing of the present stocks of cotton and
whest for an indefinite period is not in the interest of
the farmer, the consumer, or the general welfare.
Surpluses of farm products, or of any other commodity
for that ma tter, should not be withheld from the market
when their prices have reached reasonable levels and when
the demand for than is on the increase.
It is highly desirable under conditions which exist
today that we have flexibility to maet all emergencies.
Discretion as to the disposition of commodities in the
control of the Government should be retained as now pro-
vided under existing law.
The White House
August
1941.
Regraded Unclassified
DUEF AY, AUGUST 26, 1941.
261
VETOES SALE CURB
and to hold these commodities for
an Indefinite period. The goal of
FOR COTTON, WHEAT
the administration's agricultural
polley has been parity prices for
the farmers and that has been ac-
cepted by the producers, the erm-
President Says Freezing of
sumars and the Congress M fair
and reasonable.
Federal Stocks for Emergency
I do not feel that farmers would
wish this acceptance destroyed by
Would Harm AAA
action designed to force prices
above parity through the arbitrary
withholding of government-owned
RELEASE 'MAY BE NEEDED'
stocks from the normal channeis
of trade and commerce.
Congress Is Told That Long-
Can Land M% of Parity
Time Best Interests of Farm
"Recently I approved leginia-
Lion enatced by the Congress auth-
and Buyer Would Suffer
orizing the Commodity Credit
Corporation to make loans at A
rate of 85 per cent of the parity
Rpecial is Tax Bew Tome Truse.
prices of the five basic agricul-
WASHINGTON, Aug. 25-Pres-
tural commodities. which In addi-
tion to agricultural-conservation
ident Roosevelt vetoed today the
payments and authorized parity
bill requiring the government Lo
payments, will enable the growers
withhold from the market during
of these crops to realize parity for
the national emergency its large
their 1941 production."
stocks of wheat and cotton &C+
quired over the last few years as
& means of stabilizing prices for
these 1pa.
The resident said that the
measure, which was passed over
Administration opposition, would
be "contrary to sound govern-
mental polley and the long-time
best interests of both farmers and
consumers."
Asserting that "In times such as
these no one can foresee how soon
these government-owned stocks
may be needed," Mr. Roosevelt
added that the Commodity Credit
Corporation should be free to die-
pose in an orderly manner of the
6,500,000 bales of cotton and about
200,000,000 buahels of whest which
it owns, so as to maintain an over-
normal granary to protect farmers
against surpluses and consumers
against scarcity.
Fears for AAA Program
"It is my conviction." he stated
"that approval of the measure
would seriously and adversely af-
fect the agricultural adjustment
program and the attendant policies
which have been so beneficial to
our farmers during the past few
years,
"One provision of this act would
permit the farmers to dispose of,
as feed, without penalty, an Indef-
Inite amount of wheat produced in
excess of their farm-acreage allot-
ments for 1941. This provision
would lace a premium on non-
comp. be with the wheat pro-
gram, constituting a. breach of
faith with the large majority of
farmers who complied with the
program, and 80 relax the control
features of the farm program se
to adversely affect future partici-
pation therein.
"Even more objectional in the
provision which would direct the
Commodity Credit Corporation In
acquire title to all cotton and
wheat of the 1940 and previous
crops In which it has an interest
Regraded Unclassified
262
Memorial Service
for
The Right Donourable
Arthur Blaikie Purbis
President
Canadian Industries Limited
anb
Chairman
The British Supply Council in North America
Norn: 31st March, 1890
Died: 14th August, 1941
STATE DEPARTMENT NONE TENNISTATE WITH VERA OF SIGIL CHRIST:
Christ Church Cathedral
Montreal
Tuesday, 26th August, 1941
at 2:30 p.m.
Regraded Unclassified
Order of Service
Then shall follow the LESSON, taken out of the eighth Chapter of Romans,
beginning with the fourteenth PTM.
ORGAN PRELUDE
(Then shall be sung the following hymn:
Solemn Melody
Walford Davies
HYMN 611
Charles Wesley
The Minister shall begin the Service saying,
LET saints on earth in concert sing
With those whose work is done;
For all the servants of our King
I
AM the resurrection and the life, saith the Lord: he that believeth
In heaven and earth are one,
in me, though he were dead, yet shall he live: and whosoever liveth
and believeth in me, shall never die.
2 One family, we dwell in him,
One Church, above beneath;
Though now divided by the stream,
I
KNOW that my redeemer liveth, and that he shall stand at the latter
The narrow stream of death.
day upon the earth: and though this body be destroyed, yet shall I
Hee God: whom I shall see for myself, and mine eyes shall behold, and
3 One army of the living God,
To his command we bow
not as a stranger.
Part of the host have crossed the flood,
And part are crossing now.
W
E brought nothing into this world, and it is certain we can carry
nothing out. The Lord gave, and the Lord bath taken away: blessed
4 E'en now to their eternal home
be the name of the Lord.
There pass some spirite blest;
While others to the margin come,
T.After which the Choir and Congregation shall sing
Waiting their call to rest.
Pealm 121. Levavi oculos
5 Jesus, be thou our constant Guide;
Then, when the word in given,
Bid Jordan's narrow stream divide,
I
WILL lift up mine eyes unto the hills; from whence cometh my
And bring us safe to heaven. Amen.
help?
My help cometh even from the Lord, who hath made heaven and
Then shall be said the APOSTLES' CREED, by the Minister and the People, standing:
earth.
He will not suffer thy foot to be moved; and he that keepeth thee
will not sleep.
I
BELIEVE in God the Father Almighty, Maker of heaven and earth:
And in Jesus Christ his only Son our Lord: Who was conceived
Behold, he that keepeth Israel shall neither slumber nor sleep.
by the Holy Ghost, Born of the Virgin Mary: Suffered under Pontius
The Lord himself is thy keeper; the Lord is thy defence upon thy
Pilate, Was crucified, dead and buried: He descended into hell; The
right hand;
third day he rose again from the dead: He ascended into heaven, And
So that the sun shall not burn thee by day, neither the moon by
sitteth on the right hand of God the Father Almighty: From thence he
night.
shall come to judge the quick and the dead.
The Lord shall preserve thee from all evil; yea, it is even he that
I believe in the Holy Ghost: The holy Catholic Church; The
shall keep thy soul.
Communion of Saints: The Forgiveness of sins: The Resurrection of the
The Lord shall preserve thy going out, and thy coming in, from this
body: And the Life everlasting. Amen.
time forth for evermore.
Then the Minister shall say,
Also Psalm 130. De Profundis
The Lord be with you.
Answer And with thy spirit.
o
UT of the deep have I called unto thee, 0 Lord; Lord, hear my
voice.
Illere all shall kneel, and the Minister shall say,
O let thine care consider well the voice of my complaint.
If thou, Lord, wilt be extreme to mark what is done amiss, 0 Lord,
Let us pray.
who may abide it ?
Lord, have mercy upon us.
For there is mercy with thee; therefore shalt thou be feared.
Christ, have mercy upon us.
I look for the Lord: my soul doth wait for him; in his word is my
Lord, have mercy upon us.
trust.
My soul fleeth unto the Lord before the morning watch; I say, before
o
UR Father, who art in heaven, Hallowed be thy Name. Thy king-
the morning watch.
dom come. Thy will be done, On earth as it is in heaven. Give
0 Israel, trust in the Lord, for with the Lord there is meroy, and
us this day our daily bread. And forgive us our trespasses, As we for-
with him is plenteous redemption.
give those who trespass against us. And lead us not into temptation,
And be shall redeem Israel from all his sins.
But deliver us from evil. Amen.
Regraded Unclassified
1Thm the Minister shall add these other Prayers.
A
LMIGHTY God, with whom do live the spirits of those who depart
hence in the Lord, and with whom the souls of the faithful, after
they are delivered from the burden of the flesh, are in joy and felicity;
We give thee hearty thanks for the good examples of all those thy
servants, who, having finished their course in faith, do now rest from
their labours, and especially at this time thy servant, Arthur. And we
beseech thee, that we, with all those who are departed in the true faith
of thy Holy Name, may have our perfect consummation and blise, both
in body and soul, in thy eternal and everlasting glory; through Jeans
Christ our Lord. Amen.
R
EMEMBER thy servant departed this life, 0 Lord, according to
the favour which thou bearest unto thy people, and grant that,
increasing in knowledge and love of thee, be may go from strength to
strength, in the life of perfect service, in thy heavenly kingdom; through
Jesua Christ our Lord, who liveth and reigneth with thee and the Holy
Ghost ever, one God, world without end. Amen,
ALMIGHTY Art Arthur, we remember this day before thee thy faithful
and we pray thee that, having opened to him the
gates of larger life, thou wilt receive him more and more into thy joyful
service; that be may win, with thee and thy servants everywhere, the
eternal victory; through Jesus Christ our Lord. Amen.
BENEDICTION ANTREM
Goss
o Saviour of the world, who by thy Cross and Precious Blood bath redeemed
as, save us and help WA, we humbly beseech thee, 0 Lord.
THE BENEDICTION
U
NTO God's gracious mercy and protection we commit you. The
Lord bless you and keep you. The Lord make his face to shine
upon you, and be gracious unto you. The Lord lift up his countenance
upon you, and give you peace, both now and evermore. Amen.
CLOSING HYMN 379
Isnac Watts
0
GOD, our help in ages past,
4 A thousand ages in thy sight,
Our hope for years to come,
Are like an evening gone;
Our shelter from the stormy blast
Short as the watch that ends the night
And our eternal home:
Before the rising sun.
2 Under the shadow of thy throne
5 Time, like an ever-rolling stream,
Thy eaints have dwelt secure;
Bears all its sons away;
Sufficient in thine arm alone,
They By, forgotten, ss a dream
And our defence is sure,
Dies at the opening day.
3 Before the bille in order stood,
6 0 God, our help in ages past,
Or earth received her frame,
From overlasting thou art God,
Our hope for years to come,
Be thou our guide while life shall last,
To endless years the same.
And our eternal home.
POSTLUDE
FUNERAL MARCH
Mendelssohn
Regraded Unclassifie
26, 1941
Files
Mr. Occurse
Mr. Lindholm of the Department of Diate (Branch 634) telephoned no at 3:30
this afternaon to let as know that & sablegram had been received free invosander
Vinant in London expressing his thanks for the Message regarding Gasaday. The
Ambossador was arranging for Dos to arrive is the United States by September 15.
A fev minutes after this conversation I received from Mr. Livesey's office the
attached Triple Priority message 30. 3882, which had been seat enbrequent to
that mentioned w Mr. Lindholm. Upon the receipt of this message, my office
sent a tolegram to the Federal Recerve Bank at New Tork instructing that the
advance of $400 to Mr. Goo be cabled. I telephoned Mr. Lindhelm and read his
callegram No. 3882. which be had not yet coon. Re said be would immediately
learn what the Department of State wes doing to arrange for a Clipper recerve-
tion from Lisbon on September 20. It was agreed between as that since the London
Embasey had already arranged for transportation free Lendon to Lisbon on
September 19, we should net attempt to obtain a Clipper reservation earlier than
that of September 20. This would involve Ose arriving in Washington a week later
than originally anticipated, but the at Lendon has through its cablegram
confirmed our impression that air transportation service is nov heavily congested.
Kr. Lindhelm promised to telephone se as to what be learns on the point of the
recorvation, and vs will then draft a cablegram to Londes.
m
RMC:lap-5/26/41
Regraded Unclassified
264
KD
PLAIN
London
Dated August 26, 1941
Rec'd. 12:55 P. m.
SECRETARY of: State,
Washington.
TRIPLE PRIORITY
3882, Twenty-sixth.
FOR TREASURY FROM COE.
Air transport Lisbon arranged for September 19.
Understand State Department attempting arrange clipper
September 20. Transport SERVICES heavily congested.
Embassy wants to know whether this date is satisfactory.
If not please contact State Department. Please send
additional advance of $400.
WINANT.
HPD
Regraded Unclassified
THE BRITISH SUPPLY COUNCIL IN NORTH AMERICA
265
Box 680
Telephone: Republic 7860
Benjamin Franklin Station
Washington, D.C.
26th August, 1941.
Dear Cochran,
I am told that the OPM (I believe
Mr. Gordon Williams) are declining to give
any priority for gold mining machinery for the
Belgian Congo on the ground that gold production
is not essential. The gold production in the
Belgian Congo is about 37,000 ounces & month,
over $15 millions a year. The order for nach-
inery vas to the value of about $70,000. It 18
difficult to see how an industry which produces
$15 millions a. year buying power for the sterling
block can be regarded as non-essential. Apart
from this, a.e you are aware, if the same kind of
ruling were applied to gold mining machinery for
South Africa, the whole financial basis on which
the lend-lease scheme rests would be wrecked,
and we should be under the unfortunate necessity
of applying to you for a large cash loan, in
addition to lend-lease assistance.
Yours sincerely,
/8/ P. Phillips
Mr. H. Merle Cochren,
United States Treasury,
Washington,
D. C.
Copy: hbr: 8-26-41+
Regraded Unclassified
266
FOR THE PRESS
IMEDIATE RELEASE
FCR THE PRESS
August 26, 1941
This Government is preparing to send a military
nission to China. The mission will be sent for the purpose
of assisting in carrying out the purposes of the Lend-Lease
Act. It is being organized and it will operate under the direc-
tion of the Secretary of Tar. Its crief will be Brigndier Gen-
eral Join Magruder.
The function of the mission will be to study, in col-
laboration with Chinese and other authorities, the military situ-
ation in China, the need of the Chinese Government for materiel
and materials; to formulate recommendations regarding types and
quantities of items needed; to astist in procurement in this
country and in delivery in China of such materiel and esterials;
to instruct in the use and maintanance of erticles thus pro-
vided; und to give advice and zu ggestions of appropriate char-
acter toward making Lend-Lease assistance to China as effective
as possible in the interest of the United States, of China, and
of the world fort in resistance to movements of conquest by
force,
The sending of this mission is in keeping with and is
on parallel lines to the sending of 21. similar missim to the
Soviet Union. The purposes of the two missions are identical.
General Magruder has had long experience in China where
he twice served as Military Attache. HC, therefore, will be work-
inc on familiar ground, areng people he knows well and to whom
he is well known. An anoquate staff of thoroughly qualified of-
fieers will accompany General Magnider,
Regraded Unclassified
Regraded Unclassified
OF THE ECONOMIC DIFFERENT BOARD AUGUST 77, 1941
Present at the meeting verer
The Vice President, Assistant Secretary of State
Breakinridge Long, Assistant Secretary of the
Treasury Berbert I. Gaston, Under Secretary of
MAP Robert P. Patterson, the Attorney General,
Assistant Secretary of the Navy Adlai Stevenson,
Secretary of Agriculture, and Secretary of Connerce.
Also present at the meeting were: Mr. Laurence
Duggan, State Department, Mr. N. L. Clayton, Federal
Loan Agency Messrs. 1. A. Locke, Jr. and John L.
Pratt, Office of Production Management; Mr. Welson
Rockefeller, Coordinator of Inter-Ameriosn Affairs;
and Mr. Finfield Riefler.
The Vice President asked Assistant Secretary of State Long and
Veners. Looks and Pratt if they had any report to make 00 the require-
ments for mierials for Latin America. Assistant Secretary of State
Long reported that the State Department, the Office of Production
Management and the Rocksfeller Committee have net and discussed this
situation fully. Assistant Secretary of State Long presented a list
of materials and available supplies on band. Be said that the Presi-
dent stated in April that the policy of the United States 1a to furnish
all possible materials to Latin America over and above our actual
defense needs. Be stated that many minerals are exported from Letin
America to the United States, and Latin America should receive FORM of
the materials after they have been fabrionted. For instance, hs said
that Latin America produces much copper, but 50 copper wire is -
factured in Latin America. He stated that Latin America needs copper
vire to operate hydro electric plants, and that their requirements
are infinitestimal as compared to our supplies. He stated that Latio
America needa 3.6% of the copper we have on hand, 11.45 of our evail-
able aluminum, 7.75 of our available brass, and Less than 15 of our
:Failable supplies of other materials. Assistant Secretary of State
Long stated that the State Department wishes these surplus materials
sent to Latin America. Assistant Secretary of the Treasury Gaston
stated that 16 do not possess any supplus strategic materials and that
the figures represent the excess over our military needs. Under
Secretary of War Patterson stated that the United States Army requires
all aluminum and copper on hand and that there will be no excess until
March 1942. Be stated that DO aluminum is being furnished civilians
at this time.
The Secretary of Commiss said that conditions have changed
radisally since the President announced his policy in regard to Latia
20d
Regraded Unclassified
America receiving mierials. Mr. Prest, of the Office of Production
Management, stated that to should divide with Latin America only that
material which is available for civilian needs. The Secretary of
Commerce saked whether Latin America is asking for 4 silitary material.
Assistant Secretary of War replied that $400,000,000 under the Lend-
Lease Bill has been allotted to South America. xr me Mr. Bookefeller's
opinion that we should - that strategic material is furnished Letin
inerios as & protection assure, because a military problem would be
created for us if Axis groups overthrew any South American country.
Under Secretary of War Patterson stated that the War Department
his been asked by civilian groups to release solle a luminue in this
country. Two different companies have told the Wor Department that
more than 200,000 people will be thrown out of employment unless .
little alusime is released. Under Secretary Patterson said that it
would probably be well to release BOWS aluminum even though the defense
effort were slowed up to some extent. Secretary of Agrioulture said
zino should be sent immediately to wouth America in order that news-
papers friendly to the United States can continue to be published.
There was no disagreement.
Mr. Hockefeller stated that the Office of Production Management
has received only twenty export requests from South America purchasers.
He said that there are insumerable firms in South America which are
badly in need of materials, but that they do not know the procedure to
follow. The Brasilians, said Mr. Rockefeller, cannot understand why
priority for steel was given to Argentina and refused to Brazil, Itr.
Clayton, of the Federal Loan Agency, said that that Agency has men in
each Latin American country who are cooperating with local firms. It
THE his opinion that vo should have & man in each country to whom
requests onn be presented, who can investigate the needs, etc. The
Vice President stated that in accordance with the President's policy,
- should share our strategic materials with Latin America after our
ailitary needs are taken care of; this policy to be followed except in
special casse.
Assistant Secretary Caston stated that the Economic Defense Hoard
should not report to any other Boards or Agencies, but that they should
report to the Economic Defense Board. The Vice President presented the
chart of the Economic Defense Board. The Attorney General stated that
be did not believe the Economic Defense Board should employ anyone to
draft statutes. Assistent Secretary Oaston stated that care should be
taken that there 10 no duplication of effort, and that other Agencies
an working on post-war problems. The Vice President said that the
Leonomic Defense Board's work on post-war problems would be international
in its aspects and that most of the work being done on post-mar problems
by other Agencies is domestic in its nature. Under Secretary of Har
Patterson stated that the Economic Defense Board will need & legal staff.
The Attorney General agreed. All members of the Board present approved
the chart outlining the Divisions and duties of the Boonomic Defense Board.
269
- , -
Regraded Unclassified
Assistant Secretary of the Treasury Caston stated that erade
oil is being shipped from Part Arther, Texas to Special. He stated that
the Treasury Department has received stories from mailors on the taskers
to the effect that this oil is being transferred to Italy and Cornany.
The Vice President anked the Assistant Secretary of State to furnish
the Board further information 00 this matter.
The Secretary of Agriculture asked what steps had been taken on
the African oils situation. Assistant Secretary of State Long said that
the State Department is not yet ready to report on African oils, but
will be ready to report within the next month. Be said that the State
Department hopes that the British will take care of this situation. The
Vice President asked the State Department, the Treasury Department and
the Federal Loan Agency to give the Board reports on what work their
Departments are doing regarding economic defense. Each Department
promised to furnish this information. The Vice President asked that
the Maritime Commission also prepare such a report,
The Board adjourned to meet on Wednesday September 3, 1941 or
9:30 a.m.
270
OFFICE OF CIVILIAN DEFENSE
Irsh
WASHINGTON, D.C.
August 27, 1941
The Honorable
Henry Morgenthau, Jr.
Secretary of the Treasury
Washington, D. C.
Dear Sir:
There is enclosed for your information a copy
of Bulletin No. 1, "Emergency Medical Services,"
which has just been published and which will be
distributed generally within a few days.
Very truly yours,
F. H. LaGuardia
U. S. Director Civilian Defense
Regraded Unclassified
27!
Medical Division
Bulletin No. I
EMERGENCY
MEDICAL
SERVICE
FOR
CIVILIAN DEFENSE
United States Office of Civilian Defense
Washington, D.C.
Regraded Unclassified
OFFICE OF CIVILIAN DEFENSE
WASHINGTON, D. C.
Medical Provisions for Civilian Defense
The netivities of the U.S. Office of Civilian Defense are concerned primarily with the
protection of lives and property in the event of enemy action. To its Medical Division is
entrusted the responsibility for the preparation of plans for Civilian Defense designed to pre-
vent or alleviate the medical and public health hazards to which the civilian population may
be exposed.
This bulletin is the first of a series of recommendations to State and Local Directors of
Civilian Defense concerning the augmentation of medical facilities in their area. It presents
a simple basic plan for the organization of Emergency Medical Field Units related to hospitals,
which can be adapted to the needs of any community. It directs attention to the possible
future requirements for expansion of hospital facilities both within a community and outside
its boundaries. To this end, it recommende the immediate preparation of a local inventory,
a report of which should be filed in duplicate with the Area Office of Civilian Defense. It
also recommends that steps be initiated in each local area for the rapid expansion of nure
ing facilities through intensive training of adequate numbers of pursing auxiliaries.
To those who do not as yet appreciate the need for action, I should like to quote from a
similar official bulletin issued in England in 1938 just prior to the beginning of hostilities,
which describes measures for safeguarding the civilian population:
"The need for (these measures] is not related to any belief that war is
imminent. It arises from the fact that the risk of attack from the air, how-
ever remote it may be, is a risk that cannot be ignored, and because preparations
to minimize the consequences of attack from the air cannot be improvised on
the spur of the moment but must be made, if they are to be effective, in time of
peace."
Whether or not we regard danger to the lives and the property of our people as imminent.
I would urge that immediate steps be taken to carry out these recommendations of the Office
of Civilian Defense in every State along our scaboards and in industrial areas in the interior.
F.H. LAGUARDIA.
U.S. Director Civilian Defense,
WASHINGTON, D. C.
July 30, 1941
Regraded Unclassified
EMERUENCY M D I c A L SERVICE
FOR
CIVILIAN
DEFENOS
Civilian Defense Areas are colerminous
/
with Wer Department Corns Areas
Emergency Medical Service
-
how
/
MIN.
6
2
for
& FAIL
7
and.
"Busion,
a
MOK
E
Not
you
9
IDWA
-
MY,
Chicago
Omaha
OH2
Non
F
VMI-
CIVILIAN DEFENSE
/
Francisco
vitay
Columbur
FOLO,
MARIAS.
MO
5
n.
H.C.
TENM.
402
CALLA
n. MEA,
ARE
4
Atlanta
CURRENT developments in techniques of warfare leading to the possibility of
8
MA
BA-
USA
unheralded hombing of civilian populations as well as potential liararde from sibotage make
YEXAS
LA
imperative the preparation of facilities for providing medical service in cassulties that may
Civilian Defense Area
San Antonio
result from such incidents. The need for them facilities may not arime, but their
1
FLA
Adminishative Centers
organization inust be a fundamental part of our Civilian Defense program. It is the purpose
Office of Civillar Defene
of this bulletia to outline the estentiale of an Emergency Medical Service and to describe a
type of organization by which the cosentials may be achieved.
UNITED STATES OFFICE or CIVILIAN DEFENGE
The Medical Division of the Office of Civilian Defense " charged with the preparation
of plans for emergency medical service and equipment. II alm maintains lialion with other
2000 Mossnchusette Avenue
Washington, D. e:
Federal agencies concerned with public health and medical rate lo addition, un officer of
the United States Public Health Service is designated to are as medical liaion to Ovillan
Defense Area Office (see map).
REGIONAL OFFICES
FIFTH CIVILIAN DEFENSE AREA
427 Clevelasd Avenue. Columbus Ohio
Berwase of geographical and administrative diversity in various parto of the country.
FIRST CIVILIAN DIFENSE AREA
general plans are presented as recommendations to State and local defense conneils for
EXTR CIVILIAN DEFENSE AHEA
9 Back Sheet, Boston,
120 South LaSelle Street, Charge Illinos
adaptation to meet the useds of the different areas. The general adoption of a common
pattern in organization and equipment for eivílian defense in highly destrable an Unit
SECOND CIVILIAN DEPENSE AREA
SEVENTH CIVILIAN DEFENSE AREA
adjarent communities may pool or exchange emergency resources in Lime of need.
ill Eiglish Avenue, New York City
€20 Warld Horald Building, Omaha
Local administrative areas for civilian defense will frequently estend beyond municipal
THIRD CIVILIAN DEFENSE AREA
BIGHTH CIVILIAN DEFENSE AREA
400 Cuthedical Street, Boltimes Maryland
Boom 1014 Mujestic Building. San Taxas
or other political boundaries. Such administrative civilian defense areas may be delined by
State Defense Conneils. In is important that the Emergency Medical Service be integrated
FOURTH CIVILIAN DEFENSE AREA
NINTH CIVILIAN DEFENSE AREA
at all administrative levels with welfare. police, and other energency services,
Boot 205-206 City Hell Atlass,
233 Source Street Sex Caldersin
Regraded Unclassified
EMERGENCY MEDICAL SERVICE
FOR CIVILIAN
LOCAL DIRECTOR OF CIVILIAN DEFENSE.
The immediate command of all local civilian defense forces,
including the medical, and the orders for emergency mobiliza-
LOCAL DIRECTOR or
tion of these forces should be the responsibility of the person
CIVILIAN DEFENSE
officially designated as Director of Civilian Defense for the area.
He must possess full information concerning emergency medical
facilities available in the area.
MEDICAL ADVISORY COUNCIL
Health, Hospitals, Medical Society,
Nurse, Red Cross, Other Agency
OTHER EMERGENCY
CHIEF OF
SERVICES
EMERGENCY
Police, Fire, etc.
MEDICAL SERVICES
*BASE
HOSPITALS
VOLUNTARY AGENCIES
HEALTH
(Governmental and Voluntary)
(Red Cross, etc.)
DEPARTMENT
*EVACUATION OR
VOLUNTEER
EMERGENCY
NURSES'
PUBLIC HEALTH
CLEARANCE HOSPITALS
AIDE CORPS
NURSING
ANSPORT OFFICER
EMERGENCY
AMBULANCE SERVICE
TRANSPORT SERVICE
WATER AND FOOD
TRANSPORT SERVICE
PROTECTION
CASUALTY STATIONS
DECONTAMINATION
**CANTEEN AND
SHELTER
INFORMATION
STATIONS
SANITATION
AIR RAID WARDENS
SERVICES
RESCUE SQUADS AND
STRETCHER TEAMS
FIRST AID POSTS
* Functions projected for fature organisation.
FIELD or EMERGENCY
.. In acros communities Canteen, Information, Evacuation, and Rehousing Services will be
the responsibility of the Welfare Department.
Regraded Unclassified
D
CIVILIAN
DEPENSE
I. LOCAL CHIEF OF EMERGENCY MEDICAL SERVICE
Unite of two large equada each, are advisable for #
mitable compartment. À list suggesting minimum
An Emergency Medical Service should be organ-
an experienced hospital administrator. It should
poyulation of 100,000. la large cities, the devin
equipment will be available in - separate memo-
ized as M enction of the loval defense organization
be his first daty to make an inventory of the -
able ministum would be large equada (16 phy-
randum (Pulletin No. 2).
motoity's medical resources and facilities, and -
ciclane and assistants) per 100,000.
in each area under a director responsible to the
The provision of working supplies in -
prepare local plans, develop an organisation, and
container for each physician will permit the equal
local Director of Civilian Defense Il in recom-
4. It will be advisable to organize physicians and
provide for the training of personal to marry Mill
of a Camality Station la split off teams of me physic
mended that the local Chief of Emergency Mult-
DISENCE engaged in private practive in the uses into
clais and aminions who cast he disparched in and up
cal Service be à physician of hroad experience and
the functions of the Emergency Medical Service
(eserve Emergency Field Doits related for haspitals.
administrative capacity, such as a health OF
outlined below.
le areas with small hospitals whose resident staffs
misidiary First Aid Poste at other sites
cannot be depleted. the primary Emergency Unit
II. LOCAL MEDICAL ADVISORY COUNCIL ON CIVILIAN DEFENSE.
of a hospital may be made up in whole or in part of
D. Casualty Stations and First Aid
practitioners from the community.
Posts.
The local Chief of Emergency Medical Service
any because of his technical experience and -
Upon arrival at the site of A disaster, the equale
abould be Chairman of - Medical Advistry Commit
live ability. . registered nure, and e repromitive
B. Transportation.
of the Emergency Medical Units which have IN
This Council might well include the local health
of the American National Red Cross and miney
A Inspital ambulance, station wagen. small
sponded 10 the appropriate alarm will mil up Care
after, an experienced hospital administrator, al
vuluniary agencies.
trusk. or passenger vehicle will her adequate to
unliy Stations at the alter designated by the lossi
physician recommended by the local medical soci-
management the personnel of a equid and their equip-
Director of Civilian Defense, The location of -
minit is the with designated by the local Director of
Camality Station should provide sifety, abotter, and
III. EMERGENCY MEDICAL FIELD UNITS.
Civilian Defense for the establishment of a Car
accomility. Streteliers, mile, and Mankets will
In State ⑉ both wishourds and in vuluerable in
command the entire unit Squad le me
malry Station. On return trips to the hospital with
have arrived in * truck carrying the Beacue Squail
duestial above in the interior. general hospitals,
should her designated. The size of the Emergency
casualties soch vehicle will be available for ITAMS
of the police, fire, of other municipal department.
portation of additional equale and if
Until released by unitersity of the loval Disector of
both vuluntary and governmental, including Veter
Field Unit should be in proportion ⑉ the bed ⑉
and Administration Facilitive and the Marine Now
party of The parent Inspital. All involved of
required. Hospitals which do not maintain an
Civilian Deforme, the physicians and nurse of the
Field Units should be instructed in first and," -
unberlance service will find it personary to provide
Emergency Medical Unit should remain at Heit
paids of the United States Public Health Service,
cluding care of prevention xd aloock. a
for transportation, utilizing private or municipal
amin, in which the injured will be directed or
organize Emergency Medical Field Units
and assemble basic equipment. An Emergency
of hemorrhage. emergency (reatment of Transferm
restalance services, small vehicles of the poller,
rearoported on erretchere by the Signada and
and worrds, and in the technique of decentant
Are. or other municipal departments, station
volunteers endiated by them for this purpose The
Medical Field Unit starable consist of the or more
work of the Camality Mation is to be limited to
equals. and a physician should be appointed in
nation.
signing (If passenger care. Special racks less -
arate memorandum of the Medical Division of the
emergency first aid procedures-1] relist of grain,
prevention of strick, control of honording rate of
A. Personnel.
Office of Civilian Defense) can be installed in
application of simple splints and of aurgival
private ambulances and in station wagness and small
1. SMALL SQUARE In hospitals of less than 200
12/mine period of the day The personal and
dreams and not least, the of nurside
tranks an that they may be offilized in an emergency
equipment of a espasi should he divisible larto lear
by the miablishment of confidence, The ecrionaly
beds, it is recommended that the Emergency Field
Ene the transportation of four or mure stretcher
injured will lan examined as rapidly us possible by
Unit consist of Two equale, one for each 12-hour
teams, empable of If al impart
at a time.
shift of the day. Fach equal should be composed
de alter of disinier. At loast nue Emil of side alive
amlinlance or other valide in - hospital. There
or two Units with small signado art adviside fan
Private vehicles recruited for ambulance par
with minus injuries will go to their Turnes NE to
of two physicians, two or mum names, and two of
puans by the American National Red Cross un milier
mure orderlies or minis aldre, and be capable of
tomporary shelters.
paymentions up to 50,000.
fanctioning, if accessary. de two enparate
administ In assigned to a hospital (if to a
If nationaly, the equal leader in charge of . Date
ALL lowit one Unit of this size is advisable for a pop-
3. In hospitals of more than 350 hells the Exemit
designated parking center under the control of a
malty Station may split off one of nom teams of
olation up for 25,000.
geney Field Unit should consist of four of mayors
transport officer.
one physician and amidants, disputching tion to
2. LAME SQUARS to hospitals of more than 200
lorge equada, each beaded by - arguad loader and
art up solendisty First Aid Punis al other siles.
C. Medical and Surgical Equipment.
It will be advisable for the local Chief of Kmer
heds the Emergency Field Unit should consist of
espable of functioning. if number ly, as multiple
teams. to them large Impitale at Innal two equals
The medical and surgical equipment for a equal
pody Medical Service to propare a spot map of
two equals of four doctors, four or more mires,
should ennaist of a working supply for each physi-
the area to indicate all outpations clinics, beattle
and four or more orderline OF nurme andes, me of
should be on call during each 12-hour provided of the
Han's team and a reserve supply of aterile devesings
centers and their embitations, and all police and fire
the physicians in with equal in ant as aqual leader.
day, alternating on firm rall on alternate days. As
Each of the separds should he an first call during A
Emergency Field Unit of four large aguada of per
and -quipment in drums or packs from which the
stations of other alles which could serve in an
working supplies of the teams may be replenished.
emergency as Complety Maxines IIT Fini Aid Posts:
*Advened First AND mire prepared by the Ollin if Civilian Defense in millaboration wish the American National Brd
The working supply of each team la best carried in
The should also maintain an inventory of available
Cross
a portable bag, box, or haversark provided with
transportation.
Regraded Unclassified
EMERGENCY
E. Decontamination Stations.
Post, A duplicate record should be kept in a book
A subsequent bulletin will deal with the struc-
which should be standard equipment of each med.
tural requirements of Decontamination Stations
leal emergency team. The record should include
and with detaile concerning the care of casualties
the name or other identification, address, person
from chemical agents.
to be notified, diagnosis, first aid administered, man
phine if given, and disposition. A form approved
F. Rescue Squads and Stretcher
by the Medical Division of the Office of Civilian De
Teams.
fense will be found in a supplementary memoran.
dum on equipment. One nurse or ourses' side
Casualties will be conducted on foot or trans-
should be assigned the responsibility for these Enc-
ported on stretchers to the nearest Casualty Sta-
ords. The forehead of tourniquet cases and of par
tion or First Aid Post by Rescue Squade of the
tients urgently requiring priority attention should
police, fire, or other municipal department. These
be marked TK or U, respectively, with a red crayon
Rescue Squads may he assisted by Air Raid War-
skin pencil, or lipstick.
dens and by volunteers enlisted at the time. Police
and fire reserves should be well trained in first aid
H. Drills.
and stretcher bearing, and organized into Reseue
It is recommended that drills be called at each
Squads of four or eight, headed by a equad leader.
hospital once a month by the Chief of the protes
By the addition of volunteers, a Rescue Squad is
sional staff. A record of each drill should be kept
capable of being multiplied into as many stretcher
by him, which will show the time required for
teams as there are members, each trained member
complete mobilization of a squad at the designated
becoming the leader of il team.
point of departure and the condition of equipment
Provision should be made for the storage of
and transportation.
standard stretchers, collapsible cots, and blankets
It is also recommended that field drills be called
in designated locations, such as police and fire
unexpectedly by the local Director of Civilian
stations, hospitals, health centers, or other suitable
Defense at least every 3 months for each hospital.
place. The number of standard stretchers stored
Each field drill might appropriately include one er
in each police and fire station should be equal to
more Rescue Squads of the police, fire, or other
the number of members of the station's Rescue
municipal department, who will assist the Emer-
Squads.
gency Medical Squade in setting up Casualty Ste
It will be advisable to have three times as many
tions at designated sites. The official in command
collapsible cole as stretchers and two blankets for
at the drille should inspect the clothing, equip-
every stretcher and cot. This equipment should be
ment, and transportation of all participating units
transported by the truck carrying the Rescue Squad
and render a report to the Chief of Emergency
to the site of the Casualty Station or First Aid Post.
Medical Service and to the local Director of Civilian
G. Records.
Defense upon the promptness and efficiency of each
unit. The larger field drills might include the
Identification tags should be affixed to the in-
Canteen and other Emergency Relief Services of
Jured by the Rescue Squad or else immediately
the Welfare Department or of the local chapter of
upon arrival at the Casualty Station or First Aid
the American Red Cross or other local agencf.
IV. BASE AND EVACUATION OR CLEARANCE HOSPITALS.
In order to prepare for the release of hospital
unlties, the Chief of Emergency Medical Service
beds within the area for large numbers of case
should make an inventory of hospitals, convaleseent
Resene Squade consist of auxiliaries of the police or fire department, who are trained and equipped for clearance stretcher el
bearing so that each member can serve as the leader of a Stretcher Team. Their first aid services at the time of the disaster
demolition work. Although their function is to extricate the injured, they have also had training in first and and in should
object should be to remove the injured as 6008 as possible from the scene of danger with the aid of Volunteer Stretcher
be restricted solely to most urgent needs such as the arrest of profuse bleeding or the application of - log splint. Their primary Towards
and get them to # First Aid Post or Casualty Station.
Unclassifie
CIVILIAN
homes, and other institutions within a radius of 50
pitals, it may become necessary to consider evacu-
or more miles, to which maternity services, chil-
ating casualties to Base Hospitals and transforming
dren's wards, certain categories of the hospitalized
hospitals near the acene into Evacuation or Caso-
sick, and convalescents could be transported. Pro-
alty Clearance Hospitals.
vision should also be made for the assembly and
Upon receiving the first emergency call, the hos-
storage of an adequate supply of hospital cota, mat-
pital should order all members of its visiting staff
tresses, blankets, and other equipment which may
by telephone or police radio call to report to the
be required to provide for emergency increase in
hospital and stand by for the care of the injured
bed capacity of voluntary and governmental hos-
received from the Casualty Stations and First Aid
pitala. In the event of actual destruction of hos-
Posts.
V. AUGMENTATION OF NURSING SERVICES.
In the face of the need for rapid expansion of
completion of this practical training, Volunteer
oursing services for civilian defense, the number
Nurses' Aides will become eligible to namist nurses
of available nurses is being depleted because of
in wards and out-patient clinica of hospitals, or in
the requirements of the military forces and the
visiting nurse, public health, industrial hygiene,
public health and industrial hygiene services. An
and school health services. Volunteer Nurses'
attempt is being made to compensate for this de-
Aides are intended to supplement the work of the
ficiency by the training of subsidiary hospital
nurse, so that she may be able to scrve a greater
workers through the NYA, WPA, and other pro-
number of patients. It is recommended that the
grams. The Office of Civilian Defense in collabo-
local Chief of Emergency Medical Service in col-
ration with the American National Red Cross has
laboration with hospital executives and principals
revised the instruction curriculum for Volunteer
of schools of nursing reorganize and intensify the
Nurses' Aides, so as to provide for a period of inten-
training and the use of Volunteer Nurses' Aides in
give practical instruction in hospitals under the di-
appropriate hospitals in accordance with the new
rection of a special instructor in charge of the
schedule of the Office of Civilian Defense and the
training and use of Volunteer Nurses' Aides. Upon
American National Red Cross.
VI. FIRST AID.
First aid instruction should be provided for as
laboration with the Office of Civilian Defense is rec-
large a part of the general population as possible.
ommended for first aid training. Instructors qual-
The local Chief of Emergency Medical Service
ified by the Red Cross may give this training under
should, in collaboration with the local chapter of
the direction of the local chapter of the American
the American National Red Cross, provide training
Red Cross, the local health department, or any
in first aid for at least 5 percent of the personnel of
all municipal departments and large business and
other voluntary or governmental agency,
industrial establishments. Upon completion of
An intensive course of practical training (five
training, this 5 percent should constitute the first
2-hour lessons) has been prepared by the Medical
aid corpe of their municipal department, business,
Division of the Office of Civilian Defense and the
or factory group. The leaders of these corps
American National Red Cross as supplementary in-
should be encouraged to take the Instructor's
struction for members of Emergency Medical Field
Course of the American National Red Cross so that,
Units and for nursing auxiliaries and members of
when qualified, their services might be utilized for
other Civilian Defense Units (police officers, fire-
the extension of first aid instruction to all em-
men, and volunteer auxiliaries) who have had pre-
ployees and to the general population of the
vious instruction in first aid. It is designed as B
community.
refresher course for the purpose of reviewing and
The First Aid Course for Civilian Defense pre-
practicing those first aid procedures which are most
pared by the American National Red Cross in col-
important in Civilian Defense.
Regraded Unclassified
272
- n. 1941
Files
Mr. Gostram
STRICTLY CONFIDENTIAL
Information has readhed the Freenury that under date of August 13 the
Minister of Pinance of the Vishy deverament sent werd to the French Financial
Attache is New York, with refervace to the latter's inquiry, to the effect that
Visay considered 11 impossible for the Allasha not to provide the American
treasury with the information which the latter had requested. the Rinistry of
Pleases agreed with Lasour-Guyer's proposal that he request all of the French
diplomatis missions in Bouth and Central America to provide his with figures
M of July 31 and that the Paymentor General request these figures month W
neath thereafter. Be Ninistry said that 11 poes without saying that the docla-
ration of holdings, both la demosite arrown and dollars, should be limited to
holdings belonging to the diplemativ missions themselves be the oralusion of
holdings which the Bask of Brance mi the treasury my possess, as will M the
economic services of certain embassies. These latter heldings are already
allocated, is fact, to specified or englisht to be conserved as researces
for varied needs,
the moreage vest on to my that the Ministry for Foreign Affaire was re-
questing the Fresch diplematic missions is Central America to give
the information which he requests, keeping is aind the preseding indications
insefar as they apply.
pm
E
HMC:1ap:imc.8.27.41
Regraded Unclassified
273
August as, 1942
Files
mr. Cookram
Mr. Livesey tolephoned as free the Department of State yesterday at 3 p.m.
20 said that be van a number of a Shipping Prierities Committee which had recently
been interested is the shipment ef Chinese les free Beag Zong. & - named Ini
is leoking after the interests of the Chinese 988 as this market. Insidentally,
the statement was made that the Brittsh were spending $400,000 is the United States
for advertising Seylea and Indian tea. It vas the understanding that this adver-
lising had saly started recently, bas sight load to serious competition on the part
of Osylem and Indian too with the Chinces product. He. Livesey asked - whether
the treasury had any Inculadge of the British having a is of many má as that
above indicated free to spend for advertising yuryees is this coming. I teld
Kr. Livesey that I ass net recall seeing any amount listed for advertising yes
years is the verious statements which the Britten have submitted to @9.After this
conversation 1 asked Rice Kistler of Mr. White's office If she had any informe-
tiem on this point. Rice Kistler said she had - through what breakleen they
have and she finds M montion of advertising. They usually give all "ots." or
'sainly'. fhere is & leavey. There to no nonties for advertising as mak.
not
EMC:1ap-8/26/41
Regraded Unclassified
0
o
274
?
THE BRITISH SUPPLY COUNCIL IN NORTH AMERICA
Box 680
Benjamin Franklin Station
Weahington, D. C.
27th August 1941.
Dear Cochran,
At the end of July Stopford or I gave you or
White (I can't trace the letter) some information about dollar
balances in Hong Kong. The gist of it was that the dollar deposite
declared to the Hong Kong authorities were roughly as follows :-
$
-
In connection with Chinese Government,
mostly going through Hong Kong
9 million
Commercial holdings of non-British and Chinese
3
If
Personal holdings of non-British and Chinese
3
-
British commercial firms
2
American commercial and personal holdinge
1 a
15 million
The bulk of the dollar holdings amounting to three or four times the
above were said to be apparently accounts of Head Offices of Chinese
Government banks which as such had not been declared to the Hong Kong
Government.
London has now asked Eall-Patch whether he can add
to the above information. particularly as regards the large amount
apparently held on behalf of the Chinese Government banks or the
Government of China; they would like to know in particular whether
the different categories of holders could not be distinguished.
I should be very grateful if you would lot me know
whether you are able to throw any additional light on the matter. or
have any additional information which you could pass on to M.
Yours sincerely,
10/ T. X. Bewley
Mr. H. Marle Cochran,
United States Treasury.
Don't know exactly what this means. The cypher may
Copy:wec:8-29-41
possibly have gone wrong.
Regraded Unclassified
275
August 27. 1941
Mr. Livesey
No. Cockrea
will you kindly osed the following coblegram:
'imerican Geneal.
Beng Essa.
From treasury for For and repotition to Gengling.
In accertance with Cable 206 August 26. 9 D.B., Lahman issue,
Treasury atterney. will Leave Manila via Clipper to Besg Zong on
August as. levens can then take next available transportation to
thanghai. Vasa Aurone leaves long Keng, Richard Aikin, Foreign
Funds administrative - at Manila, will leave Munila for Zong Isag.
treasury assume you or your alder will arrange to consult vith
these - # arrival at well as the appropriate Foreign Service
Officers and work ont plane for dealing with foreign funds control
problems. You any wish to communicate with either Aarens or Aikin
directly at Manile, care of Segre, Bigh Commissioner."
nn
HMO:lap-8/27/41
Regraded Unclassified
276
C
o
P
Y
PARAPHRASE OF TELEGRAM SENT
TO:
American Embassy, Chungking. China
DATE: August 26, 1941, 9 r.m.
NO. : 206
THE FOLLOWING IS FROM TREASURY FOR FOX.
The Department would like to have your reaction as to
the questions listed below. (These questions were asked of
Dr. T. V. Soong by the Department.)
1. To what extent can the United States be supplied
with raw silk from Free China?
2. What is the Chinese Government's attitude on trade
between Occupied and Unoccunied China?
3. Should the Chinese Government be desirous that the
U.S. limit trade with China, the Embassy is requested to
indicate the views of the Chinese Government 2.6 well as
your own views as to methods: by type of transaction, by
commodity, or by territory.
A report from you or from Taylor es to te economic
and financial conditions in Shanghai, 88 affected by the
foreign funds control, would be most helpful. It ie hoped
that this report will be forthcoming in the very near future.
The Department is endeavoring to make arrangements
for one of the Treasury men in Manila to go to Hong Kong
and one to go to SHANGRAI. Such individuals as may be
assigned will serve as financial advisers to the Consulates
Regraded Unclassified
277
-2-
General of the two places just named to work with you on
problems dealing with freezing. In the next day or two,
you will be advised further about these. This Department
assumes that you, Frese, and Taylor are keeping in close
contact and are cooperating in so far as possible with
the American consular officers at Hong Kong and Shanghai
in connection with economic and financial problems and
problems dealing with freezing control.
With regard to your telegram of August 12, No. 342,
the Treasury Department, es yet, does not have the list
of Chinese nationals who have dollar balances, securities,
Some
:.nd other holdings in the U.S. compiled. /such compilation,
it is expected, can be prepared after the filing of the TFR-
300 census reports. The time element involved in the filing of
these reports by the public 19 until September 30.
HULL
(DA)
A-A:DH:GMH
FE
PA/H
EA:PAX
Copy:bj:8-27-41
Regraded Unclassified
278
C
0
P
Y
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
AMERICAN CONSUL, Shanghai
TO :
Secretary of State, Washington.
DATED:
August 26, 1941, 1:00 p.m.
NUMBER: 1169
The following special financial telegram is in
connection with my telegrams Nos. 1104 and 1111 both
dated August 16. Customs collections at Shanghai
beginning September 1 will be only in the currency of
Nanking's Central Reserve Bank, it now appears certain.
LOCKHART
Copy bj:9-2-41
Regraded Unclassified
279
PARAPHRASE OF TELEGRAM RECEIVED
FROM: American Consulate General, Hong Kong, China,
via N.R.
DATE: August m, 1941, mean
NO.: 330
STRICTLY GONFIDENTIAL.
FOR THE SECRETARY OF THE TREASURY FMX FOX,
(a) It is my understanding that the Parmers Bank had
only $UEL,900,000 available (7) 3,000,000 was soncigned
for $20,000,000 lean to it. The balance was advanced w
the Central Bank. The demand of the Farmers Bank nov
is that its notes, which are at discount, be given a
status of legal tender.
(b) Dr. H. H. Kung 10 being advised by the Beard
that 18 finds no practical basis for the Chinese (7)
regulations which ware issued through " spokesmen' (1)
Ministry of Finance on exchange control. There is every
ovidence that the regulations were not well thought out
and hurriedly prepared. The (7) (?) urging upon Dr. Dung
the importance of having the operations of his foreign
exchange control agency begin in the near future in order
that the agency's (7), plans, and regulations may be
available in the very near future.
K. P. Chen and (7) are doubtful of the support from
Dr. mang. They are in favor of turning the operations
of the board, with respect to exchange (y). ever to the
agency (7)- (7) on the other hand, although mindful of
the dangers and difficulties (1) (v) are becoming (1)
Regraded Unclassified
280
convinced that (7) to Ohina's best interest to take (1)
step in the matter. (1) that agency's activities should
be limited to (?) matters of this kind. () (7) parallel
Chinese organizations will function in foreign exchange.
The Board will have a difficult time (7)
minor role is assigned to the agency (v) and it will be
an impossible task if the agency is given a " major)
status that could be assigned to (1 the Board) under the
letters of April 26. I as exerting every effort to keep
(1) from (* saking) a definite decision until word in
regard to this matter is received from Washington. (r)
however long delay (7).
(e) In its efforts to stabilize the Chinese (1) (7) (7)
market, the (7) board is (7) experiencing considerable
difficulty by reason of operations of (7) market.
The two major fastors APO as follows:
(2) Oversea remittences from the Philippine Islands and
(1) (1) in connection with which the Doard is urging the
Chinese Government to establish (7) an authorised collectin
agency (7) as the center for remitting. It is my under-
standing that the Bank of Ghine will be such an agency for
(7). I all advising Sayre, in response to the eable offering
to help accumulate funds for the Chinese Government if a
single agency will be authorised to hand the remittances
at current market rates, that the communication from the
Philippine (1) will probably be (7) so to not (1)s
(2)
Regraded Unclassified
281
(2) (7) Would it be possible to have all of the experts
into Shanghai from the Philippine Islande and from the
U.S. limited by placing them under an export license?
(7) imports on the prohibited list of the Chinese Govern-
ment continue to enter Shanghai.
The report of Reuter that the (7) Board of Trade has
issued all order, effective August 26, (9) (9) any goods
to Japanese (7), China, (9) Masao (9) under an export
license. (7) This does not apply to goods which go through
Rangoon for overland transit via the Burma Head to Chima.
Could the U.S. not take similar action at once?
This matter concerns the present operations of the Beard
and is of the utmost urgency. Therefore, it will be
appreciated if a reply can be received promptly.
SOUTHARD
EAIPAK
(This telegram is being serviced and as BOOR as a
correction is received thersom, the proper persons
will be notified.)
Regraded Unclassified
282
CORRECTED COPY
PARAPHRASE OF TELEGRAM RECEIVED
FROM: American Consulate General, Hong Kong, Galma,
via N.R.
DATE: August 26, 1941, noon
NO.: 330
STRICTLY CONFIDENTIAL.
FOR THE SECRETARY OF THE TREASURY FROM FOX,
(A) It is By understanding that the Farmers Dank had
only $U81,900,000 available out of 3,000,000 which was
consigned for a loan of $20,000,000 to it. The balance Vas
advanced by the Central Bank, The demand of the Farmers
Bank now is that its notes, which are at discount, be given
& status of legal tender.
(3) Dr. M. M. Rung is being advised by the Board that
it finds no practical basis for putting into effect the
first regulations which were issued through is spokesman'
by the Ministry of Finance on exchange control. There is
every evidence that the regulations were not well thought
were
out aut/hurriedly prepared. The Board is also urging upon
Dr. Kung the importance of having the operations of his
foreign exchange control agency begin in the near future
in order that its policy, plane, and regulations may be
available in the very near future.
I. P. Chen and Pei are doubtful of the supoort from
Dr. Kung. They are in favor of turning the operations
of the Board, with respect to exchange control, over to the
Agency
Regraded Unclassified
283
Agency at once. On the other hand, although sindful of
the dangers and difficulties, I all becoming increasingly
servinced that it would not be to China's best interest
to take this step is regard to the matter. I believe that
the agency's sotivities should be limited to policy matters.
Otherwise, two parallel Chinese organizations will function
in foreign exchange, The Board will have a difficult time
even if & minor role is assigned to the agency but it will
all
be/impossible task if the agency is given a major status
that could be assigned to it under the letters of April 26.
I am exerting every effort to keep the Board from making &
definite desision until word in regard to this matter 18
received from Washington. However, I cannot delay action
for very long,
(0) In its efforts to stabilize the Chinese dollar in
the Shanghai market, the Board is experiencing sonsiderable
difficulty by reason of operations of the black market.
The two major factors are as follows:
(1) Oversea remittances from the Philippine Islands, the
United States, and Great Britain in commection with which
the Board is urging the Chinese Government to establish
sole authorized collection agency in each remitting center.
It is ay understanding that the Bank of China will be such
an agency for the United States, I all advising Sayre, in
response to the cable offering to help accumulate funds for
the Chinese
Regraded Unclassified
284
-3-
the Chinese Government if a single agency will be authorized
to handle the remittaness at current market rates, that the
Philippine Bank of Com uniontions will probably be designed
so to not.
(2) Would it be possible to have all of the exports
into Shanghai from the Philippine Islanda and from the
0.5. limited by plooing them under en export license?
Certain imports which are on the prohibited list of the
Government of Ohina continue to enter Shanghai.
AesReuter's report says that the British Board of Trade
be 8 issued an order, effective August 26, which prohibite
the export of any goods to Japanese Pncific Islands, China,
and Haeao except under on export license, This does not
apply to goods which 20 through Rangoon for overland transit
via the Burna Road to China. Could the United States not
take similar action at t once?
This matter concerns the present operations of the
Doard and 18 of the utmost urgency. Therefore, it will be
appreciated if a reply oen be received promptly.
SOUTHARD
AIPAK
893.51/7276
Regraded Unclassified
285
C
0
P
Y
COMP IDENTIAL
CONF IDENTIAL
PARAPHRASE
A strictly confidential telegram of August 27. 1941 from the
American Consul at Rangoon reads substantially as follows:
The Burma Government has authorized a transit tax amounting to
10 rupees a ton on materials destined for China, Continuation of
the one per cent ad valorem duty on airplanes and motor trucks we.s
voted by the Ministers but they were persuaded by the Governor to
withdraw these exceptions and to make the tonnage tax general. The
Governor is of the opinion that this 10 the limit to which the
Ministers will go and is fearful lest there be a ministerial crisis
if the British Government instructs him to override the Ministers
by abolishing or reducing the charges. & statement of the actual
expenses which the customs incurred in handling transit trade with
China is understood to have been requested by the British Govern-
ment. These expenses represent only a small part of the revenue
from transit duty which has been enough to cover all of the cost of
the customs. In the August 27 issue of the Burwese Daily, a local
paper in which the Premier is interested, there are comments concern-
ing press reports of unfavorable reaction in the United States to
trangit charges on cargo bought under the Lend-Lease arrangement.
The newspaper remarks that American assistance to China is nothing
in comparison to what the United States has gained during many years
in trade with China. The newspaper article adds that although Burma
Regraded Unclassified
286
- 2 -
has never gained anything through trade with China, Japan now regards
Burma with disfavor for permitting the transit of materials to China
and that China's thanks would be all that Burma would have if duty
was abolished.
Copy:1g 8/30/41
Regraded UInclassified
287
EJ
PLAIN
London
Dated August 27, 1941
Roc'd 2:29 p.n.
Socretary of Stato,
Washington.
3914, Twenty-sovonth,
FOR TREASURY.
Tho TIMES LE.DER today August 27 ontitled "Far
Eastorn talks " doals with the discussions in Washington
with tho Japanoso and tho warning of tho English Pri no
Ministor to Japan. The TIMES says thoro is "little pros-
any
poct of/substantial change in Japanoso policy or ovon in
Japanoso mothods" but it recognizos that Japan may bo"
anxious to smootho ovor hor rolations with the United
States" until thoro is tirio to consolidato now gains and
until Gorrany defocts Russin.
Concorning froczing control tho TIMES says that "Japan
could afford to mark tirio" in roturn for somo rolaxation
of tho oconomic blockade. Tho TIMES statos that Japan has
boon sproading reports "that tho joint froozing was boing
mitigated by various concossions" and says that "it is
unfortunate that color has boon givon to those rumors by
solio rocont transactions. Thoso havo boon explained more
or loss
Regraded Unclassified
288
⑉2⑉ #3914, August 27, from London
or loss convincingly."
The articlo points out that Japan is trying to "utilizo
the intontion of tho United Statos to sond supplios to
Russia by way of Vladivostok ns an opportunity for diplo-
matic blackmail. The uso of this porfoctly normal and
natural route batwoon the two countries constitutos no o on-
coivable monaco to Japanoso Interosts; and the official
Japanoso spokosman has admitted that it is open to no ob-
joction based on international law." Tho TIMES furthor
says that "it would cortainly bo an a chiovonent for
Japanoso diplomacy to oxact a price--for oxamplo, a niti-
gation of tho froozing orders--for pormitting the United
States to uso 2 routo which sho has every right to uso al-
roady."
The articlo concludos by saying that this blnckncil is
not likoly to succood and that probably the ronl object of
the Japanoso in the t alks is to find out "what dogroo of
dotormination lios chind American policy in the For Ecst."
WINANT
ALC
Regraded Unclassified
[COPY:EA:MUE]
TELEGRAM SENT
289
LET
GRAY
August 87, 1941
5 p.m.
AMERICAN EMBASSY,
VICHY.
663.
Your No. 1014, August 12, 1 p.m.
Treasury records show no application for release
of Saudi Arabian Minister's funds. Application stating
Minister's specific requirements for living, traveling,
or other expenses would receive prompt Treasury cone
sideration.
HULL
(FL)
840.51 Frozen Credits/2971
10 THE
LECHNICYT
OFFICE OE THE
Bd' 8Eb 18 ЫI ?
10E 10EV208A DELIVINENT
BECEINED
KA:HGW:ED
XE
Regraded Unclassified
290
DES
GRAY
ROME
Dated August 27, 1941
Rec'd 2:22 p.m.
Secretary of State,
Washington,
1278, August 27, 1 p.m.
Embassy's 1020, July 15.
The Rome agencies of the Associated Press, United
Press, NEW YORK HERALD TRIBUNE, and NEW YORK TIMES report
that they are unable to obtain through remittences from the
United States (or in the case of United Press from accounts
due from Italian newspapers) funds for payment of operating
expenses because the Italian foreign exchange has not
acted favorably on the agencies' application for the DECES-
ary special licenses. Similarly affected 18 the American
Church in Rome.
The Embessy is orally informed by the Associate Direc-
tor of the Exchange Institute that ection on these appli-
cations is being deferred pending final action by American
authorities on applications for special licenses in enalo-
gous CASES in the United States. HE cited 85 the out=
standing OBSE an application made by a NEW York agency
of Credito Italiano for ruthorization to utilize its
funds for payment of its operating EXPENSES. To supplament
the agency's
Regraded Unclassified
291
-2-1278, August 27, 1941 from ROME
the agency's funds for this purpose, the Exchange
Institute on August 5 ordered paid to it $15,000 by
the NEW York Agency of Banco Commerciale Itelieno but
the operation is in suspense pending the granting of
the required licmst.
As the American press agencies concerned report
that unless their financial problem is soon relieved,
they face the necessity of closing down, I would
appreciate receiving any pertinent information or
comment which the Department may wish to communicate.
PHILLIPS
IMS
Regraded Unclassified
292
TREASURY DEPARTMENT
for Miss Community
INTER OFFICE COMMUNICATION
DATE August 26, 1941
TO
Secretary Norgenthau
FROM
Mr. Cochran
CONFIDENTIAL
Registered storling transactions d the reporting banks were as follows:
Sold to commercial concerns
£27,000
Purchased from commercial concerns
£28,000
Open market sterling held steady at 4.03-1/2, and there were no reported
transactions.
In New York, cloeing cuotations for the foreign currencier listed below were
no follows:
Canadian dollar
10-13/16% discount
Argentine pero (free)
.2382
Brazilian milreis (free)
.0505
Colombian peso
.5800
Mexican peso
.2070
Uruguayan peso (free)
-4375
Venezuelan bolivar
.2770
Cuban peso
1% discount
In the unofficial exchange market in Sheribei, the yust meite et L-7/86.
The sterling-dollar cross rate worked out at 4.04-3/4.
We sold $10,000,000 in gold to the Bank of INTE, which VAB edded to its earwerked.
account,
No new gold engagements were reported.
We were informed that the Bombay gold price for August 23 vas equivalent to
434.02. or 24 bigher than the quotation for August 16. Silver in Bombay was priced
at the equivalent of 44-56#. up 1/16#.
In London, spot and forward silver were both unchanged at 23-1/24, equivalent
to 42.67#.
The Treasury's purchase price for foreign silver was unchanged et 350. Randy
and Hermen's settlement price for foreign silver was also unchanged at 34-3/44.
We made no purchases of silver today.
71ml
Regraded Unclassified
293
BRITISH EMBASSY,
WASHINGTON.
August 26th,1941.
Personal and Secret.
Dear Mr. Secretary,
I enclose herein for your personal
and secret information copies of the two
latest reports received from London on the
military situation.
Believe me,
Dear Mr. Secretary,
Very sincerely yours,
R. I. Campbell
The Honourable
Henry Morgenthau, Jr.,
United States Treasury,
Washington, D. C.
Regraded Unclassified
294
Tolegram from London dated August 23rd.
N.M. Netlayer Tonbrid
bombed and
sunk off Yarmouth afternoon August 22nd. Also one moter
gun beet bombed and damaged.
2.
Alexandria and Tobruk sttacked by enemy aircraft -
eausing only slight damage st former. One enemy aireraft
destroyed and two others probably at Tobruk.
3.
H.M. Corvette :ionia torpedoed end sunk while
escorting outward bound Gibreltar convey on August 22nd,
some survivors.
4.
Enemy air actock on 7th Cruiser Squadron and des-
troyers, stopped H.M.S. Niseu by near miss between Tobruk
and Alexandria. However able to proceed and all ships
reached port.
5.
71 ships 243,422 tone of British, Allied and
neutral countries still detained by Vichy /rench.
6.
Royal Air Force claim Cannon and machine gun hits on
one R (sio) boat while attacking shipping on August 22nd. Three
enemy sireraft destroyed August 22nd. Night August 22n4/23rd
more than 120 aircraft despatched. Targets included Mannhoim
and Havre. One bomber missing. Weather conditions difficult.
Hoyal Air Force attacked Behgasi night of August 20th/21st
and Tripoli (L) Bight of August 21st/22nd. Considerable
damage believed caused to shipping in latter herbour.
7.
Russia. Finns claim that Ruesians have withdrawn
in Earoliem inthous to line R. Vuckei probably correct.
withdrawal shortens line and affords strong position.
Gernano appear to be trying to eliminete Russian selient
between Comel and south from Gemal sad
northwest from Korosten. No evidence that Germans have
established bridge-heads over Daieper river southern Ukraine.
Regraded Unclassified
295
Telegram from London dated August 24th.
Large convey of 72 ships of which 50 British arrived
safely and inteet in British ports from ecross the Atlentic
during the lest few days. 23 were tankers. One of His Majosty's
Travlers shot down an onemy airoraft off Holy Island.
2.
H.M. Submarine "Unbeates" terpedoed 8 ship in a convey
of four fast south bound liners p.m. 19th southwest of Sicily
with unknown result.
3.
7 shipe totalling 12,741 tons plus one tug 482 tone
in outward bound convey for Gibraltar have been sunk by sub-
marine.
Some of those have previously been mentioned.
4.
Russia. Very stubborn fighting continues whole fromt
near Leningred sector where DONO indication that Germans have
mde progress.
5.
Night August 22n4/23rd nearly 80 tone high explosive
bombs and 5,200 incondiaries dropped on Mannheim and a 4,000
pound bomb buret in centre of the town. 32 tons high explosive
bombs were dropped on Havre docks same night.
Malta. August 23rd. Royal Air Force sttacked small
convoy off Kerkensh Island. A 1,000 ton merchant reasel vas
hit by bomb and a schooner machine-gunned and left listing,
6.
Libya. Tobruk attacked by enemy airoraft on August
22nd sausing slight damage to shipping and a few casualties.
One enemy aircraft destroyed, one disabled. August 21st. Our
fighters attacked about
German aircreft operating in email
formations over Sidi Barreni area. One enemy fighter was
destroyed besides four probably destroyed and eight damaged.
90 lost three fighters, one pilot eafe.
Regraded Unclassified
CONFIDENTIAL 296
Perspherse of Code Cablegram
Received at the to Department
at 21:46 ask, August 26, 1941
London, fileds 5.00 p.m., August 26, 1941.
1. Brittich Mr Activity over the Continues,
a. Wisht of Assemer's 24. , team of III and 300 incomidaries
vere dropped en Weesel and 49 tear of - and 4600 insentiaries
⑉ Desseldorf.
b. Day of August 25. The fighter effort omulated of a
total of 166, divided as follows: 41 on interception nisstors,
121 protecting shipping and 4 on special nissions. There were
- en effensive nissions.
6. Bight of August 25. 42 and 7 Manshasters
were dispatched to the industrial center of Mannheim and 12
Stirlings and 37 Wellingtons to the industrial center of
Marlershe. The results were fair.
2. German Mr Activity over Britain.
a. Day of August 24. 15 recommissance planes.
be Right of August 24. 25 long range bonbers and to
fighters.
6. Day of August 25. There wes some shipping new
naissance and alight activity over the east const with w
femaive petrols over Calais.
d. Right of August 25. Sena activity against shipping
off the court of South Vales.
3. Aircraft Losses Reserted.
a. British lesses. the night of August 25, there -
CONFIRMNTIAL
Regraded Unclassified
29?
CONFIDENTIAL
2 Wellingtons and 1 Starling unreperted from the raid -
Barlando and , Temptoms unreported for the raid en Mambala,
4. Brittsh My Activity, Other Theaters.
a. Theater. Right of Amount 24. 15 tene
of high emplosives - drapped w 9 Wellingtons that attached
Tripoli, and as a result may fires were started.
b. Irenden Theater. Amount 15. 3 - Intore -
attacked on the Almon airdress, 75 wilso northeast of Basra,
w Burriease that - covering the British Forees. Photo-
grophic recommissence - earried out over the Karind area.
Leaflets were dropped ever Tohren and
6. Gibralier. Amount 22. A datalina Flying best from
Cibralter attacked 2 Form Wulfs over & convey. There were no
definite results, but 6 member of hits were claimed.
LMB
I.B. / 6, 3.40P, August 16, 1942
Distribution:
State Department (2)
Yes Plans Division
Office of Maval Intelligence (2)
i s s
Record Section
Intelligence Branch
Chief of the Any Mr Forces
A.S.W.A.
Secretary of Treasury
Soction 713a
Collection securies
B.S.
0-9
A.C.
on, B 4 -
CONFIDENTIAL
Regraded Unclassified