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    "title": "Volume 435, August 23 – August 26, 1941",
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        "Henry Morgenthau, Jr. Papers",
        "Diaries of Henry Morgenthau, Jr."
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    "ocrText": "DIARY\nBook 435\nAugust 23 - 26, 1941\nRegraded Unclassified\n- à -\nBook Page\nAgriculture\nWheat and Cotton Marketing Quotas Act vetoed by\nFDR - 8/25/41\n435\n220,257\n- B -\nBusiness Conditions\nResearch and Statistics memorandum on situation\nfor week ending August 23, 1941 - 8/25/41\n200\n- C -\nChina\nSee War Conditions\nCivilian Defense, Office of\nSee Office of Civilian Defense\nCotton\nSee Agriculture\n- - - I\nDefense Savings Bonds\nSee Financing, Government\n- F -\nFinancing, Government\nDefense Savings Bonds:\nField Organization News Letter. No. 14 -\n8/23/41\n34\nTreasury Hour holds top place in \"National\nRatings\" report - 9/25/41\n211\nComparative statement of sales during first\ntwenty business days of June, July, and\nAugust - 8/25/41\n214\nDeposits in Treasurer's Account from sale of\nTreasury bonde. Tax Series - 8/25/41\n216\n- G -\nGeneral Counsel, Office of\nReport on projects during July 1941\nB.\nGermany\nSee War Conditions: Foreign Funds Control\nRegraded Unclassified\n- J -\nBook Page\nJapan\nSee War Conditions: Foreign Funds Control\n- L -\nLatin America\nMexico:\nStabilization Agreement: Central Bank of Mexico -\nquestion of being required as signatory to\nagreement discussed in Cochran memorandum -\n8/23/41\n435\n25,175\na) Copies of proposed silver and peso\nagreements sent to HMJr for review by\n-\nGaston - 8/28/41: See Book 436, page 31\nb) Gaston and Cochran discuss by telephone\nwith HMJr - 8/29/41: Book 436, page 93\n- M -\nMexico\nSee Latin America\n- 0 -\nOffice of Civilian Defense\n\"Emergency Medical Services\" - Bulletin No. 1....\n271\n- P -\nPrice Control\nSee War Conditions\n- U -\nUnited Kingdom\nSee War Conditions: Military Planning\n- W -\nWar Conditions\nAirplanes:\nShipments to United Kingdom and oversess\ncommande - British Air Commission report -\n8/25/41\n225\nRegraded Unclassified\n- V - (Continued)\nRook\nPage\nWer Conditions (Continued)\nChina:\nCommercial banks licensing discussed in\nCochran memorandum - 8/25/41\n435\n26\nFox to be sent stenotype operator Hewlett: in\naddition, two men from Philippines to\nassist in Shanghai and Hong Kong - 8/23/41\n2,29\nFox and Chen report ca arrival in Hong Kong -\n8/25/41\n229,279\nMilitary mission planned - 8/26/41\n266\nExchange market resume' - 9/23/41, 8/25/41\n167,245\nExport Control:\nExports of petroleum products, scrap iron, and\nscrap steel from United States to Japan,\nRussia. Spain. and Great Britain, week\nanding August 23, 1941\n226\nForeign Funde Control:\nGermany:\nAmerican governmental offices (officiale\nand employees) in Germany: Future\nregulation of financial transactions\ndiscussed in cable from American Embassy.\nBerlin - 8/25/41\n235\nJapan:\nAccounts in United States and freezing order\ndiscussed by Financial Attache. Cochren,\nand Gaston - 8/25/41\n196\nLend-Lease:\nAllocations and obligations in relation to\ndepartmental limitations es of July 21, 1941 -\n8/25/41\n191\nMilitary Planning:\nReports from London transmitted by Campbell -\n8/25-26/41\n247,293\nWar Department bulletin:\nThe German Theory of War - 8/25/41\n249\nFrice Control:\nReport of August 19 meeting - 8/25/41\n53\na) Discussion of\n1) Division of Office of Price Administration\nand Civilian Supply into two parts\n2) Formaldehyde - civilian allocation\n66\nprogram.\n3) Iron and steel scrap - fixing of ceiling\nprices\nE1\n4) Automobile license tags - use of steel\n85\n5) Cotton grey goods - amendment to price\nschedule\n87\n6) Copper - price ceiling\n89\n7) Sugar - price schedule\n97\nB) Tin - price schedule\n101\n9) Gasoline in Atlantic Const area -\ncivilian allocation program\n106\nRegraded Unclassified\n- W - (Continued)\nBook Page\nWar Conditions (Continued)\nPrice Control (Continued):\nReport of August 19 meeting (Continued) -\n8/26/41\n435\n53\na) Discussion (Continued)\n10) Rayon yarn - civilian allocation\nprogram.\n114,143\n11) Burlap - price schedule\n116\n12) Pine lumber (Southern) - price\nschedule.\n122\n13) Aluminum (wrought) - amendment to\nprice schedule\n134\n14) Copper scrap - price schedule\n136\n15) Refrigerants (chlorinated hydrocarbon) -\ncivilian allocation program.\n145\nPurchasing Mission\nSee also War Conditions: Lend-Lease\nFederal Reserve Bank of New York statement showing\ndollar disbursements, week ending August 13, 1941\n153\nVesting order sales - 8/25/41\n222,223\nWheat\nSee Agriculture\nRegraded Unclassified\nTREASURY DEPARTMENT\nWashington,\nASSISTANT SECRETARY\nAugust 23, 1941.\nDear henry:\nThe week has been quiet and I have nothing of very\ngreat moment to report, although I am enclosing two memo-\nranda, one on a conversation with Eccles and the other on\nthe meeting on Wednesday of the Economic Defense Board. In\nthe latter you will note B. final paragraph on an inquiry by\nJesse Jones as to the status of Russian bank accounts.\nSince he was asking for additional information on Thursday,\nI assume he has not yet concluded any deal with the Russiens.\nStephens mentioned over the phone your désire that\nthe waiver of collateral from the banks on defense bonds\nshould apply only to the \"E\" bonds. I talked to Heffelfinger\nwho said that a report is being mude for you on your return,\nbut the intention W&S to relieve the banks of collateral li-\nability only as to the \"E\" bonds.\nJames Roosevelt came in to see me on Monday (August 18)\nas contact man for Colonel Donovan. ne explained that\nDonovan's work was being set up in three divisions: (1) a\ngeneral statistical organization, under Dr. James Finney Baxter,\nPresident of Williams College; (2) 8 Division of Spot Informa-\ntion, and (3) a division dealing with Axis propaganda. I\ntold him that Marry white's section would probably be able to\ncooperate with Dr. Baxter and that the contact for the second\ndivision for the present would be with Mr. Kleus. He said\nthe third division would probably occasionally ask the depart-\nment to issue independently statements answering Axis propa-\nganda and that they would see to putting out the answers on\nhook-up of short wave stations. I told him Schwarz would be\nthe contact point for any statements they wished the Secretary\nof the Treasury to issue.\nProfessor Cassidy is leaving by clipper today to re-\nplace Coe in London. Merle Cochran told me he arranged that\nhe should have the same status as Coe, although he had qualms\nabout this in view of Cassidy's short experience with the\nRegraded Unclassified\n2\n- 2 -\nTreasury Department. he also arranged to send Fox's steno-\ntype operator Newlett to Chungking at Fox's request, since\nthe latter had not been able to get competent secretarial\nhelp. Bernstein is sending two men from the Philippines\nto assist Fox's men - Taylor and Frese - at Shanghai and\nMone Kong; is sending two men from Eawaii to the Philippines\nand two from here to nawaii, as replacements, in addition to\nthe two that are being sent to the Philippines under previous\nplan. Bernstein took to the State Department for trans-\nmission a cable of instructions for Fox, including questions\nabout trade between occupied and unoccupled China and an in-\nquiry as to how much silk China could make available for ship-\nment. Merle Cochren declined to Initial this cable, but\nsuprested that Bernatein could take it un directly with the\nState Department. Merle thinks it a mintake to ask Yox to\nassume responsibility for frozen funds administration and\ngathering general economic information for the Treasury while\nhe is acting as 8 member of the Stabilization Board. he will\nprobably ruise the point with you on your return.\nGenerel Burns and Phil Young came over yesterday after-\nnoon to show me a new form of report of \"Allocations and ob-\nligations of Lend-Lease funds in relation to departmental\nlimitations, 65 of July 31, 1941. In this report Treasury\nmakes a relatively bad showing as compared to War, Navy,\nMaritime Commission and Agriculture, but Cliff Mack, with whom\nI discussed it this morning, regards the bad showing as a\nmatter of statistical set-up rather than fact. We get requi-\nsitions from the British for such materials 85 steel, zinc and\nfertilizer, which are to be streed over as much as 8. year but\nOPM will only allocate for the immediate future. Mack is\nwriting B comment on this report for you and intends to take\nup with Lend-Lease & proposed change in their methods.\nI mentioned the Vimalert matter to you over the tele-\nphone. The excess of the Vimalert price over what the War\nDepartment is willing to pay, based on their \"SHL\" price list,\nis less than ten rer cent on B million dollar order. The\nBritish insist the price is reasonable and that they are in\ndesperate need of the motors. Winthrop Brown of Lend-Lease\ntold me the British were determined to go ahead with the pur-\nchase if War Department would not make it and in these cir-\ncumstances I thought it would be 8. mistske for us to intervene.\nRegraded Unclassified\n3\n- 3 -\nCochran and Joe \"Connell agreed. I told Brown that the\nTreasury Department was expressing no opinion either of\napproval or disapproval. Today he phoned me that the\nBritish had cabled London for authority to make the purchase.\nSenator Pepper called me up on Tuesday and later sent\nin to see me 8. man named Howard Bary, who is advertising\nmanager of the Amusement Corporation of America. This man\nwas undertaking to transport National Defense exhibits around\nto State Fairs on the four trains in different sections of\nthe country which carry the amusement concessions. He was\nto do this without expense to the Treasury, but showed up at\nthe Capitol with a plan to anneal to the President for an\nallocation of something like $100,000 out of the President's\nspecial defense fund, which he was supporting by telegrams\nfrom State Fair directors to Senators and letters from Senators\nto the White House. Pepper thought the whole thing cockeyed,\nand I agreed. I called in Gene Sloan and the scheme was dropped,\nbut an attempt is being made to supply exhibits to the State\nFairs direct without aid of the carnival companies.\nI had hoped that you were going to get 8 full two weeks\nof rest. I am sorry that you seem to be cutting it short.\nSincerely,\nWriter\nHonorable Menry Morgenthau, Jr.,\nSecretary of the Treasury,\nMontreal, Canada.\nGalen)\nRegraded Unclassified\nTREASURY DEPARTMENT\nWashington,\nASSISTANT SECRETARY\nAumist 23, 1941.\ny dear 1r. Secretary:\nPublic Hearings on the Revenue Act of 1941 before the\nSenate Finance Comdittee will end today and Executive Ses-\nsions will start Monday morning, August 25th. Senator\n[eorge has every expectation of completing these Executive\nSessions next week and introducing the bill on the floor\nof the Senate September 2nd. lle expects that the bill will\nleave the Senate floor not later than Saturday, September\n6th. If we adhere to this schedule I shall attempt to\narrange for the appointment of House conferees 80 that they\ncan meet with the Senate conferees on September 8th. If we\nwait until the 15th, when the House is supposed to reconvene,\nor until the 22nd, when it will probably convene, we will be\nlosing valuable time at the rate of almost two and one-half\nmillion dollare a day.\n1 believe the following changes in the House Rill will\nbe made:\n1. The base will be broadened by reducing the per-\nsonal exemptions to 750 for single persons and 1500 for\nmarried couples;\n2. The tax on billboards, radio stations and on the\nuse of automobiles will be eliminated;\n3. \"e have almost an even chance of adding one-half\na cent a gallon to the tax on masoline and one-half a cent\na pack to the tax on cigarettes.\nIt looks now 9S though the Senate Finance Committee will\neliminate the special ten percent tax on those companies re-\nporting their excess profits tax on sn invested capital basis.\nHowever, I believe that the House conferees are likely to\ninsist upon this provision.\nRegraded Unclassified\n3\n- 2 -\nThere will be a fight in the Committee for joint returns\nbut I believe that the Senate Finance Committee will reject\nthe plan you recommended or any other plan including the\nprinciple of mandatory joint returns. Apropos of this, I am\nattaching the ticker story I referred to in my telephone con-\nversation with you yesterday afternoon,\nWednesday evening at my house, Senator LaFollette recom-\nmended that no attempt be made to eliminate the exemption on\n!' 'ure issues of state and municipal securities in this bill,\nbut that a serious drive be made in the Administrative Amend-\nments Bill to follow this one, Today Senator Prentiss Brown\ntold me that he was completely in accord with Senator LaFollette's\nadvice. Inasmuch as they are our two strongest advocates in the\nSenate, I think it would be well to follow their recommendation.\nSincerely yours,\nJohn\nHonorable Henry Morgenthau, Jr.,\nVontreal, Canada.\nRegraded Unclassified\n6\nDow Jones\nAugust 20, 1941\n12:23 p.m.\nPresident reported as cool to joint income tax return in any form,\nWashn. - Congressional quarters report that President Roosevelt\nhas stepped into the tax picture again.\nThe Chief Executive these quarters say has told Senate leaders\nthat he does not think much of the mandatory joint returns for married\ncouples even if special treatment is provided for the earned incomes of\nhusbands and wives.\nThe President's position is said to have been stated at the\nWhite House Monday when he conferred with Congressional leaders on the\nforeign situation and his talks at sea with Winston Churchill, England's\nPrime Minister.\nThese reports said in Congressional quarters to be well founded\ncame as a sharp surprise to Capitol Hill tax quarters inasmuch as Secretary\nof the Breasury Morgenthau voiced unequivocal support for the mandatory\njoint return provided that special treatment of earned income is granted.\nAlso President Roosevelt in his letter of July 31 to Chairman\nDoughton of the Ways and Means Committee indicated that he had no\nobjection to the joint return if the relief proposed by the Treasury\nDepartment was granted he said.\nI am sure that I make it clear that the Treasury Department\ndoes not approve of mandatory joint tax returns except on the condition\nof granting substantial relief to earned income of the husband and wife.\nIn this I heartily concur. But the committee's ways and Means - draft\nleaves out the proviso altogether.\nThe Treasury now is in the process of drafting a joint return\nprovision which would provide special treatment for earned income.\nIt has been notified by Finance Committee Chairman George to be ready\nto submit this plan in detail.\nRegraded Unclassified\nAugust 23, 1941.\nMEMORANDUM\nTO:\nSecretary Morgenthau\nFROM:\nMr. Schwarz\na\nAt the request of the Treasury, all of the special\nweekly letters devoted to business and finance have\ndistributed to their readers copies of our \"Tax Savings\nPlan\" pamphlet. In the case of the Chamber of Commerce\nof the United States of America, copies were sent to\nlocal chambers and the latter have now been asked to\narrange for distribution to their members. The\nfollowing numbers of pamphlets were requested by each\nof the organizations listed:\nKiplinger\n1000\nWhaley-Eaton\n750\nBanking (special defense\n2000\nletter to members of the\nAmerican Banking Association)\nU. S. Chamber of Commerce\n3000\nAmerican Banker\n200\nCongressional Intelligence\n200\nStandard Statistics\n150\nCommerce Clearing House\n200\nGoldsmith Letter\n300\nRegraded Unclassified\n8\nTREASURY DEPARTMENT\nINTER OFFICE COMMUNICATION\nDATE AUG 23 1941\nTO\nSecretary Morgenthau\nFROM Mr. Cairns\nIn accordance with the request contained in Mr.\nThompson's memorandum of December 26, 1939, there is at-\ntached a summary report of studies or projects carried on\nin the Office of the General Counsel for the month of\nJuly, 1941.\nHuntington Caims\nAttachment\nRegraded Unclassified\n9\nSUMMARY REPORT ON STUDIES OR PROJECTS IN\nTHE OFFICE OF THE GENERAL COUNSEL -\nJULY 1941\nThe following matters received attention in the\nOffice of the Chief Counsel for the Bureau of Internal\nRevenue:\n1. Request of Philippines for views of Treasury\nupon proposed tax-exemption legislation. An\ninquiry has been received from the Resident Commis-\nsioner of the Philippines to the United States,\nasking for the views of the Department on the pass-\nage of legislation to grant exemptions to citizens\nof the Philippines and to corporations organized in\nthe Philippines from taxation of income derived ex-\nclusively from the operation of ships documented un-\nder the laws of the Philippines, equivalent to the\nexemptions provided for in Commonwealth Act No. 637,\nrecently enacted by the National Assembly of the\nPhilippines. That Act makes such income recipro-\ncally exempt from the Philippines \"privilege\" tax on\nthe carrying on of business, based upon gross annual sales,\nand from the Philippine \"residence\" tax imposed upon\nRegraded Unclassified\n10\n- 2 -\ncertain Philippine residents measured by the value\nof the real property in the Philippines and by gross\nreceipts or earnings.\n2. Negotiations with Hawaiian sugar companies regard-\ning social security and unemployment taxes. None\nof the Hawaiian sugar companies has paid social secur-\nity or employment taxes on perquisites, principally\nhousing, water, fuel, and medical services, furnished\ntheir employees engaged in covered employment. Num-\nerous conferences have been held during the past seven\nor eight months by representatives of the Bureau with\nrepresentatives of the companies and the Social Secur-\nity Board concerning the taxability and valuation of\nthose perquisites. Certain tentative agreements pre-\nviously reached between representatives of the Bureau\nand the companies with respect to those matters were\nrescinded on May 22, 1941. Further negotiations rela-\ntive to a basis for settlement of the matters in dis-\npute have been conducted since that time. An under-\nstanding has now been reached with the sugar compan-\nies, subject to the approval of the Commissioner and\nRegraded Unclassified\nil\n- 3 -\nthe Secretary, whereby the perquisites furnished\nby such companies to their covered employees have\nbeen valued for the purpose of taxation.\nThe above matters were handled under the supervision\nof Mr. G. E. Adams, Head, Legislation and Regulations Di-\nvision.\nThe following work was done under the supervision of\nAssistant General Counsel Cairns:\n3. Radio transmission of German war pictures to\nthe United States. An opinion addressed to\nAssistant Secretary Gaston, prepared by Mr. Feidler,\nand signed on July 8, 1941, concludes that by virtue\nof section 606(c) of the Communications Act of 1934,\nthere is adequate authority for the President to pre-\nvent such transmission.\n4. State jurisdiction to escheat bribe money deposited\nin Federal District Court. An opinion addressed to\nMr. Bartelt, prepared by Miss Goode and signed on July\n18, 1941, concludes that where the Federal Court has\nordered bribe money to be deposited into the Treasury\nof the United States, pursuant to the Act of January 7,\nRegraded Unclassified\n12\n- 4 -\n1925, 43 Stat. 726 (U.S.C. title 18, sec. 570), it no\nlonger has control over the money, and section 996 of\nthe Revised Statutes (U.S.C. title 28, sec. 851), is\ninapplicable to such bribe money. Accordingly, there\nis no res within the state on which to declare an\nescheat.\n5. Payment of assignees of awards of Turkish Claims\nCommission. An opinion on this subject, addressed\nto Mr. Bartelt, was prepared by Messrs. Meeker and\nJohnston and signed on July 18, 1941. The opinion con-\ncludes that the General Accounting Office has no juris-\ndiction to settle and adjust this type of claim; that\nthe Treasurer should pay assignees where assignment is\nclear and undisputed; in other cases, the assignee's\napplication should be referred to the Department of\nState, or the parties should be left to a judicial de-\ntermination of their rights.\n6. Secret Service investigation of counterfeit food\nstamps. This opinion, addressed to Chief Wilson,\nwas prepared by Mr. Collins and signed on July 21,\n1941. It concludes that food OF tamps of the Surplus\nMarketing Administration are obligations of the United\nRegraded Unclassified\n13\n- 5 -\nStates and, hence, Secret Service has jurisdiction\nto investigate.\n7. Disposition of insane persons arrested for vio-\nlation of Federal laws enforced by Secret Service.\nAn opinion addressed to Chief Wilson, which was pre-\npared by Armand DuBois and signed on July 25, 1941,\nconcludes that insane persons who have been arrested\nby Federal officers, but who have not been convicted\nof any offense, may be admitted to St. Elizabeths\nHospital if they are duly adjudged insane and are\neither within or lawfully transferred to the District\nof Columbia.\n8. Emergent importation of livestock forage, duty\nfree. At the request of the Department of Agri-\nculture and with the cooperation of representatives\nof that Department and administrative officials of\nthe Bureau of Customs, Mr. Chambers, Chief Counsel,\nBureau of Customs, drafted a proposed Presidential\nproclamation to be issued under the authority of seo-\ntion 318 of the tariff act, declaring that an emer-\ngency exists due to drought conditions which have\ncaused 8. serious shortage of forage for livestock in\ncertain areas in the United States, and authorizing\nRegraded Unclassified\n14\n- 6 -\nthe Secretary of the Treasury to permit the free\nimportation of certain forage for use in such areas.\nHe also prepared 8 covering letter addressed to the\nPresident, for the signature of the Secretary of the\nTreasury, explaining the reason for the proposed ac-\ntion. The proclamation was signed by the President\non July 25, 1941, and regulations to put its provi-\nsions into effect will be issued as soon as necessary\ndata are received from the Department of Agriculture.\nThe following work was handled under the supervision\nof Assistant General Counsel Bernard:\n9. Fidelity Bond Bill (formerly identified as \"Bond\nSurvey\") (for description see original report,\nitem 10). As the Legislative Section has not yet\nreceived advice from Congressman Cochran as to whether\nor not he will sponsor this proposed legislation, no\nfurther action has been taken on the matter.\n10. Federal Depositary System (for description see\noriginal report, item 6). After several minor\nchanges were made in this bill by the Legislative Sec-\ntion, it was sent to the Bureau of the Budget on July\n24, 1941, for clearance.\nRegraded Unclassified\n15\n- 7 -\n11. Law Committee of Defense Communications Board\n(for description see November report, item 23).\nMr. Spingarn is continuing his work as the Treasury\nRepresentative on the Law Committee of the Defense\nCommunications Board.\n12. Administrative procedure bills (for description\nsee April report, item 8). The Legislative Sec-\ntion has received comments from all branches of the\nDepartment about our proposed letter and memorandum\nstatement on these three bills to Chairman Hatch of\nthe Senate Judiciary Subcommittee studying them. Only\nthe Bureau of Internal Revenue had any substantial\ncomments to make on this material. The Bureau suggested\nabout ten changes. Their suggested changes have been\ncarefully gone over and many of them have been accepted.\nA few are believed inadvisable and 8. memorandum has been\nsent to Mr. Wenchel explaining the Section's position\non each one. His reply is being awaited.\n13. Proposed legislation to regulate production of\nopium poppies (for description see May report,\nitem 9). The Legislative Section submitted a draft\nRegraded Unclassified\n16\n- 8 -\nof this bill to the Commissioner of Narcotics who\nsuggested several changes. The proposed bill is\nnow being revised to comply with some of the changes\nsuggested.\n14. Payment of claims against the United States (for\ndescription see original report, item 11). After\nclearance with the Bureau of the Budget, this bill for\nthe orderly payment of claims against the United States,\nand letters of transmittal therefor to Congress have\nbeen put in final form and are now being circulated\nfor reinitialing before submission for signature and\nforwarding to Congress. The Comptroller General and\nthe Attorney General have indicated they also consider\nthe bill meritorious and recommend its enactment. A\nmemorandum relative to this bill and & proposed com-\nmittee report thereon have been prepared.\n15. Board of Legal Examiners. The General Counsel\nwas appointed a member of the Board of Legal Examiners\nestablished by Executive Order No. 8743 of April 23,\n1941. Under this order, it is the duty of the Board\nto promote the development of 8. merit system for the\n17\n- 9 -\nrecruitment, selection, appointment, promotion, and\ntransfer of attorneys in the Classified Civil Ser-\nvice \"in accordance with the general procedures out-\nlined in Plan A of the Report\" of the Reed Committee\non Civil Service Improvement. Mr. Bernard, as the\nrepresentative for the General Counsel, has attended\nB. number of all-day meetings of the Board in Solici-\ntor General Biddle's office, and is acting as Chair-\nman of the Board's Committee on Transfers. Mr. Ber-\nnard and others in his section are working on a num-\nber of legal problems arising in connection with the\nwork of the Board.\nThe following matters were worked on under the direc-\ntion of Assistant General Counsel Bernstein:\n16. Foreign Funds Control. Freezing control was ex-\ntended to Japan and China. Incidental to the execu-\ntion of the control it was necessary, in addition to\namending the Executive Order, regulations, and in-\nstructions, to issue 16 new general licenses dealing\nwith problems peculiar to the Japanese and Chinese\npicture. Several other licenses required amendment.\nDoaradod\n18\n- 10 -\nTwo attorneys in this office (Aarons and Anderson)\nhave been sent to the Philippines by way of Hawaii\nto work on the problems this extension has precipi-\ntated in that area. Similarly, another attorney\n(Johnston), has been sent to Hawaii. The entire\nstaff worked on these problems.\nThis office assisted in the preparation and\nissuance of the President's Proclamation dealing\nwith the proclaimed list of blocked nationals. It\nalso assisted in the preparation and issuance of the\nblack list. Instructions were sent to all the Fed-\neral Reserve Banks and all Collectors of Customs re-\ngarding the procedure to be employed and efforts were\nmade to coordinate our activity in this field with\nthat of Export Control. Messrs. Bernstein, Luxford,\nand DuBois worked on this matter.\nThe field of foreign trade is becoming increas-\ningly important, particularly in view of the inclu-\nsion of China and Japan in the freezing orders. With\nthe advent of the proclaimed list of blocked nationals\nthis office prepared General License No. 53 which con-\ntributed to a clarification of the rights of American\n19\n- 11 -\nexporters to deal with Latin American firms. Trade\nwith China was similarly licensed. On the other\nhand, Japanese trade has been subjected to a rigid\ncontrol in which for the first time all trade with\na foreign country has been brought under direct Cus-\ntoms supervision through the facilities of freezing\ncontrol. General License No. 53 has now been amended\nso that not only is trade with the American Republics\npermitted but also trade with the British Commonwealth\nof Nations, the Dutch East and West Indies, Russia,\nand other friendly nations. The regulation of trade\nwith Japan and China has precipitated a difficult\nproblem concerning losses to American importers and\nbanks resulting from the failure of Japanese boats to\ndeliver goods. In an effort to alleviate certain of\nthis pressure a Public Circular was issued regarding\ndocumentary drafts. The problem in connection with\nChinese exports is still under study, although one\nPublic Circular has been issued in connection there-\nwith. One general study has been made of the whole\ntrade problem from the point of view of the most\nRegraded Unclassified\n20\n- 12 -\neffective means of bringing it under freezing\ncontrol. Messrs. Bernstein, Luxford, DuBois, and\nSmith worked on this.\nStudies on the control of patents are still in\nprocess. Work is being done along the line of issu-\ning a general license and public circular dealing\nwith certain phases of these matters. Messrs. Bern-\nstein, Aarons, Murphy, DuBois, and Luxford worked on\nthese studies.\nThe work incident to the preparation of the cen-\nsus report on Form TFR-300 and the instructions to\naccompany such form is nearing completion. Confer-\nences have been held with 8. large number of represen-\ntative groups and an educational conference for the\nbenefit of all Federal Reserve Banks has just con-\ncluded. Messrs. Bernstein, Reeves, Arnold, and Mur-\nphy are handling this matter.\nThe regulation of business enterprises that are\neither blocked nationals or under strong ties with\nblocked nationals is getting under way. A great deal\nof work is being done on the Sterling Products case\n21\n- 13 -\nand careful consideration was given to the Silesian-\nAmerican matter. Messrs. Bernstein, Lawler, and\nLuxford worked on this.\n17. Stabilization agreements. Conferences have\nbeen held with the Colombian Ambassador regarding a\nstabilization agreement with Colombia. Similar con-\nferences have taken place with a Mexican representa-\ntive covering an agreement for Mexico. Additional\nwork has been done on the Chinese and Argentina Agree-\nments. Mr. Bernstein is handling this matter.\n18. Russian Gold. This office participated in the\nconferences relating to the purchase of Russian gold\nand the preparation of the Secretary's note to the\nRussian Ambassador relative thereto. Messrs. Bernstein\nand Luxford worked on this matter.\n19. Ecuadorian Trade Agreement. This office, in co-\noperation with the Division of Monetary Research, is\nworking on a new Foreign Exchange stipulation for the\nEcuadorian Trade Agreement which will permit this coun-\ntry greater flexibility in the event of any further\nextensions of freezing control. It is envisaged that\n22\n- 14 -\nthe stipulations on this subject will take the\nform of exchange notes. Messrs. Bernstein and\nLuxford worked on this matter.\nRegraded Unclassified\n23\nAugust 23. 1941\nFiles\nm.\nAN 2:30 p.m. an ingust 14 Mr. Helpana, Financial Attache, called on m.\nlie told as of a payment of $5,000,000 viside had been más to the Bank of Indo Chisa\nw the Tokahama Specia Bank as July 25. is gave m his word that this payment had\nbeen under contemplation for come time and that 10 had se military or pelitical\nsignificance.\nNisiyama referred to three applications which be had on file for licenses to\npay $180,000 for oil for Jugan. No stated that the vithdrawals of impense funds\nfrom this market prier to freesing had been on the part of the Japanese Havy and\nthat be and his ass net like to try to ⑉ these funds returned so the\nUnited States. 10 heped, however, that the Treasury would ⑉ fit (2) to permit\nthe Tobakama Specia Bank so pay for the oil from blocked funds or (2) to yerait\npayment at Thoughai in Chincee year for remittance to lev York in dollare 67\n(3) payment free Datavia is Dateh florias to be remitted to the United States.\nI told Mr. Hisiyans that this val a matter for consideration w Foreign Tests\nGentrel. When he teld - that be had all appointment with Mr. Touses, I telephened\nMr. Towner to introduce Mr. Nisiyama.\nml\nHMC:lap-8/25/41\nRegraded Unclassified\n24\nAugust 23. 1941\nFiles\nMr. dechren\nAt 3125 p.m. on August 19 b. day Greas telephoned - free the offices of the\nStandard 011 Company in Bev York. Zo said that Vice President Harden had called\non Mr. Foloy the preceding week in regard to the application for a license to your\nmit the sale by the Standard 011 Company of its preperties is Rengary to German\ninterests. Upon & Earden's return from Washington the Company had decided to\npropare & letter for submission to Vice President Vallase as Chairman of the Sev\nDefense Committee. cetting forth the Standard's position with respoct\nto the proposition under reference. I brought this matter to the attention of the\nForeign Funds Centrol Committee at the meeting hold is Assistant Secretary of State\nAcheson's office the following day.\n1ml\nHMC:dm:8/23/41\nRegraded Unclassified\n25\nRegraded Unclassified\nAugust 23, 1941\nFiles\nMr. Coolars\nReference is made to Mr. Southard's memorantum of August 20 in regard to the\ndiscussion of the propesed Serican Stabilization Agreement. Mr. Collado nentioned\nafter the meeting with the Housderisms on the aftermeon of Monday, August 18, the\nfact that Monteres had raised the question as to the Central Boak of Maxico not\nbeing required as a signatory to the agreement. I told Mr. Collade that it use ay\nfeeling that the freasury would definitely require this. Mr. Collade wanted to\nknow if the Treasury would raise the question with Secretary Margentham and Under\nSecretary Dell nov on their holidays. I seld Gollade that I definitely vould not\ndo this unless Mr. Welles himself requested 1t. I did net think Menteres wes\nassuming the right position. Purthermore, I pointed ont that Secretary Morgesthan\nhad been ready to proceed with the consumetion of the Stabilisation Agreement with\nMexico before his departure on leave, but that the State Department had not been\nprepared with its part of the related negotiations. It had been agreed, therefore,\nthat completion of the various arrengements with Mexico would be delayed until\nafter Labor Day. It did net ⑉ reasonable, therefore, to we the Treasury to\ntake my special stops in the interia.\nAfter this conversation 1 checked up with our records and confirmed that the\nexblegram of instructions which the Secretary sent Mr. White at Revane last year\ndefinitely provides that there shall be separate and joint responsibility os the\npart of treasuries and central banks of Latin American countries which receive\nassistance free our Stabilization Fund. I told Mr. Southard of this point. I also\nmentioned 11 to Mr. Berastein.\nOn the fellowing day, fuesday, August 19, I balked with Mr. Collade at the\nMayflower luncheon given by the Reunderian Minister of Flasses. Mr. Collado was\nconvinced that is view of the Treasury's position Mr. Menteros reald withdraw his\nobjection to the Bank of Mexico belag a signatory to the agreement, As a matter\nof fact, I felt that Rr. Collade already had this assurance from Mr, Menteros.\nANY\nEMC: dm: 8/23/41\ninjust 23. 1941\nFiles\nMr. dechram\nOn the norning of August 22 Mr. Joseph Jenes of the Far lasters Division of\nthe Department of State telephoned se. 14 referred to a cablegram of August 18\nfrom Hr. Fox. Junes gate as his personal opinion that 11 would be desirable to\n... Chinese banks generally licensed.\nLater is the noraing I was talking with Mr. Dermatein es China and neationed\nthat Mr. Jenes had nate this personal recommendation. I told Mr. Berastein fur-\nther that Mr. Leabhead had the proceding w told se of the observations which he\nhad made to Mr. Berastein upon the desirability of licensing Chinese comercial\nbanks. In addition, Mr. Leahhead had pointed ent the advantage which would ascress\nto the year through our permitting remittences free the United States to China.\nrink\nHMC:lap-8/25/41\nRegraded Unclassified\n27\nAugust 83. 1941\nFiles\nMr. fechren\nAS 18 meen on August n Mr. Anstrum of the National Bank of Belgium called\nen no. Zo stated that the Bank of France had appealed from the recent decision\nof the court in New Terk which hold that 10 had jurisdiction is the case of the\nNational Bank of Belgium verezo the Bank of France. the hearing 46 this appeal\nwill be on September 26. It is expected that the Bank of Trance my aggeal the\ncase further if the September 26 decision is unfavorable to 19. Mr. Anstans is\nof the opinion that the case cannot be tried en its morite before March or April\nof next year. Be is, therefore, returning to Lenden sev. Thousts\nwill fellow the litigation until the real trial takes place, at which time\nMr. Assisux will return to New York to give direct testinery.\np.m.s.\nHMC:lap-8/25/41\nRegraded Unclassified\n28\nRegraded Unclassified\nAugust 83. 1941\nFilse\nMr. Declaren\nMr. Randelph Durgess telephoned as from York on the afternoon of August 22.\nSo stated that he was spending - time with the British Purchasing Commission\nis Washington, since the douth of to. Purvis, assisting Sir Clive Maillion. Is\nthis commertion he asked se for certain information in regard to the official\nposibion of Mr. Opio.\nIs referring to - 300. Mr. Durgess heped that the Treasury had not felt\nthat he had born critical thereof. It come that Mr. Durgees had speken to Mr. Dell\non this subject vhes recently is Washington. I told Mr. Durgess that I had heard\nM suggestion that be had been critical of the Treasury or of this form. Burgese\nsaid that the Treasury MS who had vorked with the backers is New Tork en this\nform had been very serious and competent. Although execution of this form is 0002-\ning the National City Bank $40,000. that institution is villing to \" along with\nthe Treasury's requirements.\nBurgess reminded me that the Presillans have recently passed a law which would\nforce foreign banks out of business is Brasil by 1945. Phere was ⑉ arrengement\nwhereby this law could be interpreted to essept Vesters Heal sphare banks therefrom.\nMr. Bargess hoped, havever, that our deverament would not depend confidently upon\nthis interpretation and reald endoever to have a definite removal of this danger\nto the United States banks operating is Brasil. Zo thought secusion for bega-\ntistions might arise if Brasil should seek further financial assistance from this\ndeversment.\nM.H\nHMC:1ap-8/25/41\nAugust 23. 1941\nFiles\nMr. Coshran\nHaving completed arrengements for Mr. Soulett's departure for Chise, I delivered\nto his yesterday noes fear packages of documents free Mr. Berastein and two from\nMr. Timens, all relating to Foreign Funds Centrol, to w taken by Mr. Howlett to\nMr. For is China. I sent to the Department of State a cablegram to Mr. For reporting\nthat Newlett would sail for Mong Keng on August 29 from Ban Francisco.\nIt vas not until Angust 13 that Dr. Soong telephened BO that be had received\nword from Dr. lung, Chinese Minister of Finance, approving the cagagement of Mr.\nHevlett. Dr. Boong had not been villing to take the responsibility for sending\nMr. Revlett to Chima and paying therefor, until he had Dr. Kung's approval. Be had\nseked this by cablegram the day following Ky sending Mr. Nevlett to Dr. Boong. Dr.\nSeorg told as by telephone that Dr. lust had net understood at first why Mr. Fox\nhad not obtained comeons lecally. I had explained to Dr. Beong that Mr. Fox had\ncabled that both be and the Babaccy, as well as Dr. Ches, had agreed that @@@@@@\nfrom the United States should be seal out. It had hous the Treasury's proference\nthat should be engaged lecally if this night be fensible, but efforto toward\nthis ond ovidently had failed.\nAfter receiving Dr. Seong's approval, Mr. Howlett endoavored to obtain early\ntransportation to Long Kong, but was quite unsuccessful. When be reported this to\nme I took the matter my with the State Department and Mrs. Narvey there succeeded\nin arranging passage on the 5,5, President Monree sailing August 29.\nDr. Seong 414 not give Mr. Newlett a written contract. Be told Mr. Nevlett\nthat his contrast should be through Mr. Fox. The Chinese would, however, pay all\ntransportation costs to Beng Zong, and arranged for an advance on account of salary\nand expenses. Is my conversations with Dr. Boong and his assistant le. Use, I told\nthem that Nr. Newlett vas ready 16 P to China on the understanding that be reald\nbe paid a salary of $3,500 per year, 06 per diem, together with travel expenses to\nand from China. I had gives this information to Dr. Scong whom I originally referred\nMr. Newlett to his.\nSaid\nHMC: dm: 8/23/41\nRegraded Unclassified\n30\nAugust 83. 1941\nFilse\nNo. Geehren\nHr. Gentier, the representative is In York of the frice National Task,\ntelephoned se yesterday at 2:50 p.m. Re said that be had received emblegrame\nlast vesk from the Svice National Dent at Born and Zurich instructing his to\napply for a license to permit the transfer of 2,000 kilegrams of gold from the\nFederal Reserve Bank of Nov York to Lisbon. Mr. Centier had new filed this\napplication with the Federal Reserve Bank and understeed that 11 vas being 79-\nforred to the Treasury Department for consideration. Mr. Gautier stated that he\nhad written a letter explaining the situation is full.\nIn summary, Mr. Gautier explained that Seitzerland had agreed be per Portugal\nin gold for imports from that country. Since the fries National bank must main-\ntain is Switzerland the gold cover for forty percent of its note circulation, and\nsince gold must be used to pay for eartain imports, such as whent, cotten, etc.,\nthat Svitsorland has been obtaining from Insta and other European countries.\n11 valid found argently destrable to withdrew gold from the Sviss National Bank's\nearnaried supply in New York, rather than endoaver to make the difficult transfer\nof gold across France from Switzerland to Portugal. Mr. Gautier reminded as that\nthe National Bank of Svitserland NOV has is the Federal Reserve Bank of New York\n$220,000,000 is gold, $270,000,000 is dollar belances and $52,000,000 is treasury\nBills, together with $120,000,000 of balances with commercial banks is New York,\nmaking & total of $562,000,000 which the Bries National Bank has is New Terk.\nthe present request is to withdraw saly around $2,000,000 of this total.\nMr. Qautier added that all imports from Pertugal to Ovitsorland mast be approved\nby the British authorities is Listen before they are consumered. Consequently,\nvs would be releasing Svice gold to pay for only transactions that are approved\nby the Brittsh authorities.\nMr. Centier asked my assistance is obtaining as expeditions and favorable\ndecision is the premises. No said that his people considered the application case\ninvolving important matters of principle. They feel that they should be able to\nvithdraw the gold which they had placed with our Federal Reserve Bank and they\nrentad as of the which they (ATE as as a prior condition to the lessance\nof our General License.\nAfter receiving this call, I telephoned Mr. Feble. Xe said that the applica-\ntion had net yet como to his attention, and that when it did be would refer the\nmatter to a Consittee Meeting.\nI - definitely of the opinion that this application should be unconditionally\napproved at the earliest possible date.\nmP\nHMC:1ap-8/25/41\nRegraded Unclassified\n31\nAugust 23. 1941\nFilm\nhr. federess\n40 5 p.m. yesterday eventing Mr. Kashe telephoned as from New Tesk. No seld\nthat he had not been able to at is teach with Mr. Pehis, 00 valid to give M the\nfellowing information. the Quaranty Trast had 100 his have confidentially that\na client had sought the accistance of the Beareaty inmited a resittance to Comun\nterritory, including Folond. Before the Quaranty had given m - the alient\n- back to report that the Quaranty's novistance was not memocry since the\nesstemer had been able to submit dollars to the Inhassy is Vachington with\nthe understanding that the latter would make reichenarks available to the pages\nis termsy.\nAS 5:15 I reached Mr. Fekle W telephone and (ave Me the above information.\nMr. Pskie stated that be would have Mr. Mar in Bev York get is boath with Mr. Indo\nat 0360 as this case.\nsuil\nHMC:lap-8/25/41\nRegraded Unclassified\n32\nAmput 83. 1941\nPiles\nMr. deabres\nAS 11:20 this seraing Sir Proterist Phillips called M by telephone. Se\ninquired whether I was familiar with the Northrep case. I teld Sir Proderisk\nthat Mr. Bowley had breaght this case be W attention and had provided - with a\nmemorandum thereon. I had submitted the nation be the Secretary at s. Staff asset-\ning and had been instructed to write 6 letter to Mr. Jenes, collaborating with\nMessrs. Pavley, White and Doz. Oir Proderisk had before his a copy of this letter\nof August 13. I sold Sir Proderick that on August 15 Mr. Jones had written the\nTreasury a letter, which I read so Sir Proderick, and that the Treasury had Lume-\ndistely enovered es the - day. through a letter signed by Rr. Bell, which I\nalso read to Sir Frederick. This smokings of letters en August 15 had - after\nthe British had agreed with Mr. Jenes' office that He. Devley's had\nbeen in 07707. is that 11 should have referred to 140 planes instead of 100 planes.\nMr. Devley and Mr. Cox agreed with - that the Treasury position as explained in\nthe letter of August 13 should be maintained aven though the under of sirplance\ninvolved was 140 instead of 100. Mr. Berastein helped no on the draft of the\nreply to Mr. Jenes, and vest with no to Mr. Dell to obtain his signature late ea\nTriday ovening, August 15. The letter was read be Mosers. Sevley sad Cex. but\nMr. White had already left and sould not be consulted.\n1 reminded Sir Proderisk Phillips that Mr. Margentham had decided that Lend-\nLease matters should be headed up with Mr. white and that the British had been se\nInformed. Consequently, I had takes H direct part is the Northrep case subsequent\nto the exchange of correspondence above described. Novertheless, Mr. Cabs, head of\nthe Northrep Company, had reported to at 68. Maturday, August 16, and again this\ncurrent veek, en his difficulties. I had, after consultation with Mr. Gastes,\nKiss Kistler and Mr. 0'Commell, placed his directly is touch with Mr. Breva is\nLand-Lease. From Mr. Drown I had learned that the latter had intervated General Duras\nand other of our Armaneat people is the question, and that they. in 1573, had been\nis touch with Mr. Jesse' office. by Mr. Cobe I bed been teld yeaterday ever the\ntelephone that the R.F.C. apparently was out of the picture since they were not\nvilling to \" iste the deal unless the Britler would yield to the B.F.C. prierity\nof claims on the Northrep Company. thes Bir Frederick asked M whether be should\nnew got 1a touch with Rr. Jeans, I told his first to speak with Mr. Drown and find\nall of the latest developments. I particularly contioned Bir Proderick that he\nshould have Mr. Brown's opinion as to whether the Jenes plan sight involve any\nincrease is the total sentract price. It had been 4) understanding that there has\nbeen envisaged simply a stepping up of payments as the first 140 planes. to be\ncompensated for on payments 02 the balance. sir Froderiek said 11 vas his definite\nunderstanding from the documents before his that 10 increase is total contract price\nvas envisaged.\nmn\nEMC:lap-8/25/41\nRegraded Unclassified\n33\nAugust 26. 1942\nFiles\nMr. Goshren\nMr. Quagle of the Northrop Aircraft, Inc., (National 7062) telephened - this\naftermeen. 10 stated that Measrs. Cahn and Colonan are - to Bev Terk bat that\nthey all vanted to 108 no know that their financial arrangements appeared on the\npoint of being concluded satisfactorily. the final arrangement does ast include\nany participation by the 1.7.0. The British have stepped - their payments, and\nwill receive - persont interest an sévances, obvisting any accessity for a lean\nfrom the R.F.O. The Bev York basics will participate in the leas as originally enti-\nsipated. Mr. Beddie signed the subscrimation agreement as behalf of the British\nthis afternoon.\nI told Mr. Quayle that I had had nothing to is with this matter the last few\ndays except to bring Sir Prederick Phillips to date last Saturday, and to talk\nwith his about the necessity of the British accupting the suberdination arrange-\nment. Quayle thought My conversation with Phillips had been of como assistance\nin leading to the final arrangement, and thanked me warnly.\njust\nHMC:lap-8/26/41\nRegraded Unclassified\n34\nFORDEFENSE\nBUY\nFIELD ORGANIZATION News Letter\nUNITED\nSTATES\nANVINGS\nDEFENSE SAVINGS STAFF\nBONDS\nAFD LIAMYS\nTREASURY DEPARTMENT, WASHINGTON, D. c.\nAugust 23, 1941. Number 14.\nDO THE FIELD STAFF:\nIt is well to take stock of that phase of our progress in which we\nare so interested; namely, the sales record of Defense Bonds and Stamps.\nThe principal goal of our efforts is the largest possible list of owners\nof these securities.\nThe Series E Bond is, of course, the most popular. The number sold\nduring May, June, and July indicates an increasing acceptance of this\nsecurity as a prime investment. The methods of marketing--Payroll Allot-\nment, Bank Depositors Draft Plan, Stamp Banka, Buy-A-Bond-A-Month and\nThrift Clubs, Direct and Mail Purchases, and others-are accumulating\nfunds for future purchases on a systematic and regular basis, and the\nparticular emphasis is on the Series E Bond,\nThe number of honds purchased each month will be of interest and the\nrecord is very encouraging. Following are the figures, which are approx-\nimate:\n1. Number of Bond Units\nSeries E\nSeries F\nSeries G\nTotal\nMay\n883,000\n20,000\n91,000\n994,000\nJune\n1,030,000\n21,000\n96,000\n1,147,000\nJuly\n1,493,000\n22,000\n93,000\n1,608,000\nTotal\n3,406,000\n63,000\n280,000\n3,749,000\n21 Dollar Volume (Issue Price)\nSeries E\nSeries F\nSeries G\nTotal\nMay\n$100,581.000\n$37,617,000\n$211,420,000\n3\n349,818,000\nJune\n102,517,000\n28,876,000\n183,134,000\n314,527,000\nJuly\n145,274,000\n27,359,000\n169,498,000\n342,132,000\nTotal\n$348,373,000\n$94,052,000\n$564,053,000\n$1,006,477,000\nThe number of individual stamps sold is slightly under thirty millions.\nSincerely yours,\nGALE F. JOHNSTON\nField Director, Defense Savings Staff\nRegraded Unclassified\n35\nNEW STATE CHAIRMEN\nIn Georgia, Virginia, and 'lost Virginia, Secretary Morgenthau has\nrecently appointed State Chairmen of the Defense Savings Committees being\norganized there.\nThe Georgia Chairman is Arthur Lucas, Atlanta banker and theatre\nexecutive. In Virginia, Frank Pendleton Gaines, President of Washington and\nLee University, has accepted the post. And in West Virginia, Albert Snedeker\nof the Wheeling Steel Corporation has assumed the responsibility of chairman-\nship for his state for Defense Savings.\n*\n+\n#\n#\n*\nIN THIS ISSUE\nALLOTMENT DEVELOPMENTS-\nMontana state employees have plan - page 3\nExplaining a plan - page 7\nHighlights-New York, Newark, St. Louis and Soattle - page 7\nAuto Workers endorse allotment - page 8\nBanks prepared to help install plans - page 15\nBANK NETS-\nTennessee bankers pledge cooperation - page 4\nBanker advocates bonua in bonds page 6\nDetroit and Seattle banks have allotment pamphlets - page 8\nBank installs automatic bank draft plan - page 13\nAtlanta bank meets a challenge - page 15\nEDITORIAL COLLENT-\nChicago, Dallas, Philadelphia, Seattle, Great Falls - page 16\nFIELD REPORTS-\nMontana - page 3; Minnesota and Tennessee - page 4\nMISCELLANEOUS-\nPictures - Defense Bonds at Elke Fair - page 5\nBonuses paid in Defense Bonds - page 6\nAmericans All - page 10\nTips, premiums and prizes in Stamps - page 11\nPictures - Children think country worth saving - page 12\nPicture - Volunteers staff Stamp booth - page 12\nState employees organize for Dufense Savings - page 13\nAdvertising club has 3-point program - page 13\nChain letter schemes disapproved - page 14\nPictures - Modern Art Museum's prize-winning posters - page 17\nRADIO--\nPrograms for the coming week - page 9\nand\n- 2 -\nRegraded Unclassified\n36\nMONTANA\nMany Significant Developments Reported\nACTIVE COMMITTEES in each of Montana's 56 counties by September 1 is the\nobjective of the State Committee, reports Administrator William H. Bartley.\nA GENERAL COMMITTEE is being set up to supplement the State Committee.\nThe presidents of all state farm, labor, patriotic, women's, civic, business\nand professional groups are being asked to serve on this body.\nSTATE EMPLOYEES are responding enthusiastically to the recently installod\nsalary allotment plan developed by Governor Sam C. Ford, State Auditor John, J\nHolmes, State Treasurer Thomas E. Caroy, and State Accountant William Hosking.\nBUTTE MINERS, one of the largest groups of organized labor in the state,\nhave given assurances of their cooperation and support. Sylvester Graham,\nPresident of the Montana Industrial Council, CIO, recently statud:\n\"The Montana State Industrial Union Council wholeheartedly\nendorses the program of Defense Savings Bonds and Stamps\nand pledges assistance in every possible way.\"\nAMERICAN LEGIONNAIRES, meeting in state convention, adopted a resolution\ncalling upon all Legion posts and every individual Legionnaire \"to take part\nin this important program by genorous purchase of Defunne Bonds.\"\nEAGLES, ELKS AND MOOSE are rallying to support the Program following the\nadoption of resolutions of endorsement by their state governing bodies.\nThe Montana State Aerie of the Proternal Order of Englos has resolved\nthat\n\"wo deum it the civic duty of every member to buy Defunss\nStamps and Bonds to the limit of his ability ... You\ncan't lose, betting on the U. W. A.\"\nThe state Elks organization has invested the major portion of its reserve\nIn Defense Bonds,\nMONTANA FARMIRS-mor- then 44,000 of them-are receiving Defense Savings\nfolders through the AAA organization. This distribution is buing well timed\nin relation to the marketing of Montana's bumpur whost crop.\nIN GREAT FALLS AND CASCADE COUNTY, every organized group of any kind was\ninvited to send representatives to the general mouting hold August 20 by\nthe Cascade County Committee, Loo Graybill chairman. Those representatives\nwill learn of their part in the Dofense Savings Program and carry back the\nmessage to their various associations end clubs.\nRegraded Unclassified\n37\nMINNESOTA\nSpot News From The Larger Cities\nLOCAL COMMITTEES are now functioning in Austin, Duluth, Minneapolis,\nSt. Paul, and Winona:\nIn Austin, the organization meeting of the Mower County Defense Savings\nCommittee W&S addressed by G, A. (Jay) Hormel, President of the Hormel\nPacking Company and member of the State Committee for Minnesota, Sixty\npeople were invited to this meeting and all but one, who WGB out of the\ncity, attended! The success of the program in Austin and Mower County\nis assured.\nIn Duluth, Mayor E. H. Hatch, has indicated that city employees there\nwill be able to buy Defense Bonds through salary allotments,\nIn Minneapolis, a special sub-committee composed of representatives of\nbusiness and labor - both A. F. of L. and C. I. 0.- is encour-\naging installation of allotment plans. Thos. E. Hastings is the\nchairman of this group.\n....\nBanks in Minneapolis have announced\ntheir readiness to provide free safekeeping for Defense Bonds and\nto cooperate with employers in operating payroll allotment plans.\nIn St. Paul, the Industrial Sub-Committee, which is headed by John\nConnolly, Secretary of the Minnesota Mining & Manufacturing Company,\nand Harry F. Fairchild, Vice-Chairman of the St. Paul Committee, is\nplacing emphasis upon the installation of payroll allotment plans.\nIts first move was to send supplies of folders, etc., to all major\nSt. Paul firms.\nTENNESSEE\nProgram Gethers Momentum\nEACH OF TENNESSEE'S 95 COUNTIES is to have a Defense Savings Committee.\nCity committees are already functioning in Nashville, Memphis, Chattanooga, and\nsoveral other localities.\nBANKERS, through the Tennessee State Bankers Association, have pledged\ntheir full cooperation as issuing agents, volunteer speakers, and in other\ncapacities,\nIN CHATTANOOGA, Defense Bond Week was celebrated from August 10 to 16.\nMayor E. D. Bass issued a special proclamation.\n....\nTen-minute speckers\nwere specially recruited to carry the message of Dofense Savings to civic\norganizations and other audiences.\n....\nAnd motion picture theatres,\nradio stations, and newspapers cooporated in focusing attention upon the\nProgram.\n....\nThese activities were planned and carried out by a committee\nheaded by Cecil Woods, President of the Volunteer Life Insurance Company and\nChairman of the Defense Savings Committee for Humilton County.\n- 4\nRegraded Unclassified\nELKS FAIR FEATURES DEFENSE SAVINGS\nDefense suvings booth nt the\nElks Charity Fair in Norwieh,\n-\nRETTEN\nConn. Paul W Franklin, choir-\nmand the DefenseSavings Coin-\nBUT\nmittee for Norwieb (on right).\nexplains some of The finer points\nto IL prospective investor.\n1\nDay J.Y Pierson of the Ship's\nChib of the U.S. Sub-\ndocume Base at New London,\nConti covives И $2,000 Defense\nNow corrects purchased by the\nPaul W. Franklin,\nincome the Defense Savings\nfor Norwich, Conte\nT presentation coromonies\nnote place A1 the Elks Charity\nto 00 Norwiek\nSAVE FOR SECURITY\nWill H Smith, Indiana State\nAdministrator, mepeets the rp-\ncently procted sign NOW domi-\nnating Monnment Circle laning\nNorth Meridian Street in Indi-\nBUY\nDEFENSE\nanapolis, list The sign Was\nSAVINGS\nnnole possible through the 2011-\n*\nprosity of Joseph 1. Hama,\nBONDS &\nConcrul Manager of the General\nOutdor Advertising Co., and IS\nSTAMPS\nlighted nt night through the\nenoilesy of (leo Indianapolis\nPower and Light Co\nare -\nRegraded Unclassified\n39\nSCHUSES 1% DEFENSE BONDS AND STAMPS\nA few of the many companies which\nhave recently given their employees\nbonuses in Defense Securities:\nMcDonald Machinery Company in St. Louis - each of its employees received\n25 Defense Savings Bond and was promised a second bond as soon as he pur-\n= chased two with his own money. Next year, the Company will continue this\nplan, but to be entitled to two bonds \"on the house\" the employee will not\nonly have to purchase two bonds from his own funds but also hold the four\nsonds acquired this year.\nRichards and Conover Mardware Company of Kansas City, Mo. - gave each of\ntheir employees a 25 bond with a personal letter, urging regular purchase.\nCownie Turs of Des Moines, Iowa - distributed bonuses totaling 03,500 in\nXTense Bonds and Stamps to its 70 employees at a picnic dinner. Charles T.\nCownie, president of the firm, in making the presentations, said:\n\"It is the first time employees have been given a bonus\nat this time of year.\" They were presented the bonuses\nin Defense Stamps and Bonds primarily to call attention\nto this part of the Defense Program.\nSeveral large concerns in North Carolina, including Carolina Wills, Ino.,\nare paying employee bonuses in Defense Savings Bonds, according to reports\nfrom the Farmers and Lerchants Bank of Newton, N. C. and the Wachovia Bank &\nTrust Company of Winston-Salem.\n7. B. Connelly Company of Seattle, appliance distributors - presented\neach of their 28 employees with a 525 Defense Savings Bond at a dinner at the\nashington Athletic Club.\nMerck and Company of Rahway, W. J. - started its 3,000 employees on the\nroad toward bond ownership by giving each a $1 Defense Savings Stamp in De-\nfense Savings Bond albums.\nGeorge iashington Hotel of Jacksonville, Fla. - started each of its 100\nemployees with a 250 Dofense Savings Stamp and album.\nKellogg Swithboard & Supply Company in Chicago - installed payroll allot-\nment plan and then announced that it would contribute A toward the cost price\nof each 25 Defense Savings Bond purchased by its employees.\nFrank C. Rathjo, president of the Chicago City Bank and Trust Company -\non of the !irst Chicago concerns to install = Dofense Savings Salary Allotment\nPlan - has proposed that employurs bé urged to distributo bonus payments in the\nform of Defense Bonds, The details of his proposal end reasons therefore were\nfactured by Royal F, Munger, financial oditor for the Chicago Daily News, in\nhis daily column on the financial page of that paper.\nRegraded Unclassified\n40\nPAY ROLL ALLOTMENT\nExplaining = Plan: Highlights\n\"A DELIONSTRATION OF EFFICIENCY.\" This is the report of one observer\non the presentation of the Defense Savings pay roll allotment plan to employ-\nDES of the Metropolitan Edison Company of Reading, Pa.. At a. meeting of branch\nmanagers and key men from various branch offices, held recently in the main\noffice of the Company, Mr. I. J. Ingram, New Business Manager of Netropolitan\nMison, gave a \"model\" talk on the Defense Savings Program, the opportunity\nit affords company officials and employees, and the plan for participation\nthrough pay roll allotments.\nA SERIES OF FIFTIEN LARGE CHARTS, especially prepared by Mr. Ingram, were\nused to illustrate every phase of the plan, and to explain why everyone should\nenlist now in the Defense Savings Program.\nTHE 30NG \"Any Bonds Today\" opened and closed the meoting.\nAN ATTRACTIVELY PRINTED PAMPHLET, describing the company's allotment plan\nand presenting full information about Defense Savings Bonds, was distributed\nto those present.\nA STATES OF 3111LAR MEETINGS at each of the company's plants and branch\noffices will be held in the near future. Koy men, who will be asked to con-\ntact their fellow employees and tell thom about Defense Savings and the volun-\nLary pay roll allotment plan, will be invited to attend, Mr. Ingram will pre-\nsunt the details, assisted by his charts and phonograph records. He confident-\nly expects that & large majority of the employees will voluntuer to enroll as\nregular Dofonse Savore in the near future.\nTORK-Bristol-Lyers Company, with factory and laboratories at Hillside,\nN. J., and offices in Now York, Chicago, Dallas and San Francisco, re-\nports that its Défonse Savings allotment plan has been accopted by every\nemployee--from the night watchman to the president.\nWARK-The Feigenspan Browing Company is the first browery in the state to\ninstall = voluntary salary cllotment plan. William Rose, Jr., vice prosi-\ndont of the company, in announcing the plan, said that employees volun-\ntarily undertook the canvassing of their follow workers, and added:\n\"The response has been most gratifying. The men in the plant\nwho are over draft age are most anxious to play their part in\nhelping along the national defense program. The results ob-\ntained are due to the very excellent work of the foreman and\nother union men in the organization.\"\nX. LOUIS-The first two industries in Missouri to report 100% participation\nin an allotment plan are the 8. J. Wallace Company and the 0. 2. are Linson\nCompany, both of St. Louis.\nSEATTLE-In a lettur to officers of affiliated local unions in Washington,\nRichard Francis, Regional Director of the CIO, urges that employees ask\nemployers to install Defenso Savings pay roll allotment plans,\nRegraded Unclassified\n41\nUNITED AUTO WORKERS, INTERNATIONAL UNION,\nENDORSES ALLOTMENT FOR DEFENSE SAVINGS\nThe Sixth Annual Convention of the International Union, United Automo-\nbile, Aircraft and Agricultural Implement Workers, meeting in Buffale, N. Y.\nof. August 13, enthusiastically and unanimously adopted the following resolu-\ntion:\nTHEMAS: The UAW has by action of this Convention given renewed evi-\nderice of unreserved support of National Defense, and\nTHEREAS: The Treasury of the United States has suggested several\nplans of systematic saving through purchase of Defense securi-\nties, therefore Le it\nESSAVED: That this Convention encourage and support the purchase\nof Defense securities as a patriotic duty and as a means of\nprotecting the future of the wage earners and their families\nin any post-emergency readjustment, and be it further\n301VZD: That the principle of payroll allotments for the purpose\nof purchasing Defense securities is hereby endorsed and encour-\naged, with the strict reservation that such payroll allotments\nshall be voluntery and as sanctioned by action of the local\nunions.\nIn presenting this resolution to the 1,000 dolegates to the Convention,\nCordon Carpenter, chairman of the Resolutions Committee, made a strong plea\nfor itu adoption, as did President R. J. Thomas and Secretary George Addes,\nspotting from the platform.\nMany delegates vitao crose to spenk in behalf of the resolution stated\nthat their local unions had clrody endorsed Defense Davings and had purchas-\ned substantial Blocks of Series / or G bonds.\nInvestment of Union fundo in Defense Bonds to the legal limit was pludged\nby Secretary Addes, on behalf of the Union's executive board.\nBefore the convention adjourned, Secretary Morgenthau wired this message\nto President R. J. Thomas:\n\"Your resolution proves again that American labor understands the\nurgent needa of national defense end can be counted on to support\nthe defense effort to the limit.\n\"Everything that American Inbor has wor: through years of struggle\nis nt stake in the present world crisis. The rights of collective\nburgaining and the continual betterment of our standard of living\ncan only be assured in C free society.\n\"Your resolution demonstrates that you are resolved to keep our\nfree institutions safe and strong. I congratulate you for the\npledge you have made and wish you would convey to all your members\nmy very good wishes.\"\nB\nRegraded Unclassified\n42\nDEFENSE SAVINGS ON THE AIR\nLeading Programs for the Coming Week\nTuesday, August 26\nFOR AMERICA WE SING\n7:30-8:00 P.M. (EST)\nNBC Blue Network\nusier) rogram featuring Dr. Frank Black's 44-piece NBC symphony orchestra\nconducted by Victor Arden and the MBC chorus,\nGUEST STAR: John Charles Thomas,\n* # * *\n'ednesday, August 27\nMILLIONS FOR DEFENSE\n8:00-9:00 P. M. (EST)\n(The Treasury Hour)\nCBS Network\nGUEST STARS: Eddie Cantor, David Rubinoff, James Melton, Priscilla Lane, with\nAl Goodman and his band, Barry Hood and Ray Block's choir.\n*\n#\n#\n*\n*\nSunday, August 31\nWINGS OVER JORDAN\n9:30-10:00 A.M. (EST)\nCBS Network\nguest SPEAKER: William Pickens, National Megro leader and member of the\nDefense Savings Staff.\n*\n*\n#\n+\n*\n*\n*\n\"KEEP YOUR LIGHTS ALWAYS BURNING, AMERICA!\"\nTheme song of Boston's own Defense Savings radio program \"Defense Vari-\notios\" is \"Keep Your Lights Always Burning, America|\" written by Ed Cronin,\nPat La Selva and A.]. Starita. Messrs. Cronin and La Selva are members of the\nInternal Revenue Service in Loston and produce and direct the radio show\nwhich is heard every Sunday evening over station i/MEX. Here are some lines\nfrom the chorus of their song:\n\"Buy your Stamps and Bonds to aid defense,\nBack our Prosident - It's common sense!\n\"And speed up! Americal\nKtep the torch of freedom burning in the world!\"\nCopies of the words and music of this song have been printed by the\nauthors and they have indicated they would be glad to make them available to\nDefense Savings Committees in other parts of the country.\n* # * * *\nMary officers of savings-building and loan associations are making\nradio talko on Defense Sevings. Deputy Governor William F. Penniman has\nsent specially prepared speech materials to members of the Federal Home Loan\nBank System.\n= review OFFICE\n- 9 -\nRegraded Unclassified\n43\nAMERICANS ALL\nOrganizational Investments Demonstrate Patriotism\nSCOTTISH CLANS-\nPurchase of $40,000 worth of U. S. Defense Savings Bonda by the Royal Clan,\nOrder of Scottish Clans, with headquarters in Boston, and the adoption of a\nresolution urging all Scottish Clans to follow this example and thus help \"in\nstrengthening our defenses\" has recently been reported in the organization's\nofficial journal.\nSONS OF POLAND--\nAssociation of the Sons of Poland in Jersey City, N. J., has invested\n$25,000 in Series G Bonds and will invest $25,000 more during the month of\nAugust,\nPolish National Alliance, Chicago, Illinois, has invested\n$50,000 in Defense Savings Bonds.\nPolish Women's Alliance of America,\nChicago, Illinois, has invested $50,000 and will invest a like amount early in\nJanuary, 1942.\nPolish Union of the United States of North America,\nWilkes-Barre, Pa., chapter bought Defense Bonds to the limit on May 5, 1941,\nFRENCH-CANADIANS-\nL'Union Saint-Jean-Baptiste D'Amerique in Woonsocket, Rhode Island, pur-\nchased Series C Bonds to the limit.\nSONS OF ITALY-\nLoggia Italia Progressive, Sons of Italy in Waterbury, Connecticut, invest-\nod in a $100 Defense Bond, Venerable Louis Lerz announced at & recent meeting\nof the organization in Liberty Hall.\nItalo American National Union,\nChicago, Illinois, has invested $20,000 in Series G Bonds.\nCOLORADO YUGOSLAVS-\nMembers of the Western Slavonic Association have endorsed the Defense\nSavings Program by authorizing the purchase of $5,000 worth of Defense Bonds.\nAnthony Jersin, secretary of the Association, with headquarters in Denver, was\nquoted as saying that the money was taken from the Association treasury \"in\nthe hope that it will help the government of the United States lick Hitler,\"\nLITHUANIANS-\nLithuanian R. C. Alliance of America, Wilkes-Barre, Pa., has Invested\n$50,000 in Series G Bonds for this calendar year.\nSLOVENES-\nThe Grand Carniolian Slovenian Catholic Union of Joliet, Illinois, has\ninvested $50,000 in Series G Bonds.\nSLOVAKIANS-\nThe First Catholic Slovak Ladies Union has purchased $50,000 worth of\nDefense Bonds and have requested 50,000 pamphlets on Defense Savings for\ndistribution to its members.\nHUNGARIANS-\nThe First Hungarian Luthern Church of Pittsburgh, Pa., purchased a $100\nDefense Savings Bond,\n- 10 - -\nRegraded Unclassified\n44\nDEFENSE SAVINGS STAMPS\nMany Ways to Encourage Regular Purchase\nSPECIALLY STAFFED BOOTHS are proving their value in many parts of the\ncountry, not only as outlets for Defense Savings Stamps but also as informa-\nlion centers on all phases of the Defense Savings Program. \"Treasury Houses\"\n(in Washington, New York, Boston, and other cities) and stamp booths manned\nby volunteers in large department stores have both proved highly effective.\nIn Jackson, Miss., the stamp booth in the R. E. Kennington department\nstore, as well as selling a large volume of stamps, helps sell Bonds, as this\nstory illustrates:\nA gentleman approached the booth one day and asked for $75 in\nDefense Savings Stamps. When the young lady at the desk recovered\nfrom her shock, the sale was completed. Then another gentleman,\nattracted to the booth by the excitement, announced that he wanted\nto buy $10,000 worth of Defense Savings Bonds-$5,000 for himself\nand $5,000 for his son! Amid much excitement, the young ladies\nascorted the gentleman to the bank.\nTIPS, PREMIUMS, AND PRIZES in Defense Savings Stamps are telling many\nprogle about the program and enrolling tham 08 regular Defense Savers. A few\nrecont reports:-\nIn Lynn, Mass., Angus R. Gillis has established some sort of record by\npersonally starting 350 people on the road towards Bond ownership.\nGillis passes out bond albums as tips. He dropped one book in the\ncollection box of the church to which he belongs and now on each\nsuccessive Sabbath Adds another stamp neatly sealed in a cello-\nphane envelope.\nIn Bakersfield, Calif., Postmaster Jerry Shields reports salesman\nbuying Defense Savings Stamps for use as tips.\nIn Atlanta, Ga., Stamps are prizes on the \"I Am An American\" program\nsponsored by Grean's and heard over radio station WGST.\nIn Rock Hill, S. C., the annual election and picnic of the Junior Cham-\nber of Commerce was enlivened by B. quiz contost with Dofense Stumps\nfor the winners.\nIn Florida, quiz programs conducted by Florida State Theatres, Inc.,\nthroughout Florida are using Defense Savings Stamps as prizes. In\naddition, the Rotary, Kiwanis, Civitan, Exchange, or other service\nclub which provides the contestants for the quiz contest receives\n$10 in Defense St.mps for its favorite wolfare project.\nIn Tulsa, Okla,, at D. X. filling station, Goorge Reynolds, manager, gives\n3 ten cent stamp with every dollar's worth of car servicing.\nIn \"llmington, Del., the Dr. Pepper Bottling Company gives $ ten cent.\nstamp for 12 of ita bottle caps.\n- 11 -\nRegraded Unclassified\n45\nPENNIES SAVED\nFIRST BIRTHDAY-FIRST STAMPS\nMG\nLittle Beverly Paulsen of Portland, Oreg.,\nThey think the country is worth saving-George William\nbrings her pennies to the First National\nand Robert Wesley Leake, of Greensboro, N. C., who got a\nBank to buy Defense Savings Stamps from\nbreak themselves, give their country B. break by buying\nÀ Emmons of the bank staff.\nDefense Savings Stamps. The birthday celebrants are the\ntwin sons of Mr. and Mrs. E. W. Leake, who adopted them\n6 months ago. Taken from B children's home just at the\ncooing age, the twins were given A good home and have\nVOLUNTEERS STAFF STAMP BOOTH\nmatured to be these happy, healthy youngsters.\nBONDS FEATURED IN WINDOW DISPLAY\nFORDEFENSE\nBUY\nus SAVINGS\nRONOS BN2\nSTAMPS\nA\nPistured above is the Defense Savings Stamp\nbenib in the R. E. Kennington department\nStore in Jackson, Miss., which is staffed by\n$1,500 worth of Defense Savings Bonds were used by the\nthe women volunteers affiliated with the\nM.L. Parker Co., of Davenport, Iowa, in the window display\nWomen's Committee of the Defense Savings\npictured above which attracted wide attention and com-\nCommittee for Jackson and Hinds County:\nment. The ticker tape in the foreground repeats the mes-\nMr. John Walsh, chairman.\nsage: \"They will be worth more later.\"\n,\nGOVERNMENT\nPRINTING\nEFFACE\nAM971\nRegraded Unclassified\n46\nSTATE EMPLOYEES ORGANIZE FOR DEFENSE SAVINGS\nOrganization of a committee of Connecticut state government employees\nto map out plans for enlisting the 13,000 state employees as regular De-\nfense Savers was recently announced, Robert J. Smith of the State Welfare\nCommission is the chairman of this special committee, Other members are\nHubert W. Stone of the Department of Education, Tax Commissioner Charles J.\nMcLaughlin, and Police Commissioner Edward J. Hickey.\nPERIODIC BANK DRAFTS TO PURCHASE DEFENSE SAVINGS BONDS\nThe 100,000 depositors of the Washington Mutual Savings Bank in Seattle\nhave been notified that they can invest in Defense Bonds regularly by simply\nauthorizing the bank to draw on their accounts and issue Defense Bonds. Cards\nto be signed by depositors and returned to the bank were enclosed. (Some of\nthe other banks which have made it possible for their depositors to invest in\nDefense Bonds in this convenient way are listed in NEWS LETTER, July 19.)\nADVERTISING CLUB DEVELOPS THREE-POINT PROGRAM\nThe ADVERTISING CLUB in Spokane, Washington, is doing three things to\nboost Defense Savings:\n1. Educating sales people in Spokane stores, in order that they can\ndo more to encourage the purchase of Defense Savings Stamps.\n2. Sponsoring a series of five-minute radio talks over local stations.\n(Three of the Club's programs are on the air each week at the\npresent time.)\n3. Sponsoring an essay contest on Defense Savings in cooperation with\nlocal newspapers (1st prize will be a $100 Defense Bond).\nTHE 15 LARGEST DOWNTOWN STORES in Spokano featured window displays pro-\nmoting Defense Savings during the week of July 30-August 6.\n*\n#\n+:\n\"Where is the man who takes money for the government?\"\nasked Maliosa Dean, clderly colored widow and mothor of\neight children, when she called at a bank in Tyler,\nTexas, recently.\n\"I want to give $100 to Vr. Roosevelt and the govern-\nment to help them win the war.\" Upon the suggestion of\nthe cashier, she agreed to accept a $100 Defense Savings\nBond, having to make it official by her mark, as ahe\nneither reads nor writes. She said that $100 was all\nshe could afford \"just now\" and started back to her\nchildren and her farm, 12 milos from Tylor.\n-7rom The Houston (Texas) Post.\n- 13 -\nRegraded Unclassified\n47\nNO CHAIN LETTERS NEEDED\nThe Post Office Department, through the Office of the Solicitor, recently\nsent the following notice to all postmesters with reference to chain letter:\nschemes:\n\"The mails in all parts of the country are eing flooded at the present\ntime with letters relating to so-celled endless chain schemes soliciting de-\nfense savings stamps.\n\"Patrons of the various post offices depositing in the meils matter re-\nleting to schemes of this nature should be warned that the sending of such\nmatter through the mails is a violation of the postal freud and lottery stat-\nutes. Notices are served upon persons participating in such schemes whose\nnames come to the attention of the Post Office Department requiring them to\nshow cause why freud orders should not be issued egainst them. Such orders\nforbid the delivery of any meil to the persons named therein.\n\"It is suggested that this notice be called to the attention of local\nnowspapers so that it may be brought to the attontion of the public.\"\nCIGARETTE PACKAGES NOW ADVERTISE DEFENSE BONDS\nDomino Cigerettes--product of Larus &\nBro. Co., Inc.--carry the message:\nBUY U. S.\nDEFENSE BONDS\nBUYU,S.\nDEFENSE BONDS\n$18.75 invested now brings you $25.00 in\nten years.\nPere's your chance to do your part for\nthe U. S. A.\nTrain your children to save with Defense\nSevings Stamps.\nOn sale at all U. S. Post Offices --\nand at banks.\nALL STATIONERY of the insurance companies which are members of the\n\"Loyelty Group\" now carries a broad band of red, white end blue on which ap-\npear the words \"Buy Defense Sevings Bonds and Stamps.\"\nA WINDSHIELD STICKER called \"Certificate of Participation in the National\nDefense Program\" is included in the special passbook issued by the Arl ington\nFive Cente Sevings Bank of Arlington, Mass. 15 connection with its \"Defense\nBond Participation Plan.\"\n- 14 -\nRegraded Unclassified\n48\nTHE CHALLENGE TO AMERICAN EXECUTIVE LEADERSHIP\n\"The Bill Must Be Paid\"\n\"Start Saving Now\"\nMutual Trust and Sacrifice\"\n\"Learning To Do Without\"\n\"What Price Security?\"\nTHESE ARE THE CAPTIONS of the first five advertisements in a series of\n13, now appearing in newspapers throughout the Southeast. With these adver-\ntisements, the Citizens & Southern National Bank of Atlanta endeavors to\nmeet what it calls a \"challenge to American executive leadership.\"\n\"The sooner we #11 face stern realities,\" the first advertisement\nin this serios begins, \"the sooner will we begin shaping our liv-\nInc and our finances to weet the inevitable cost. Too many people\nlive only in the present, leaving the future to take care of\nitcelf. To do so in the present situation would be a trogic error.\n\"Begin your saving now, Bogin the best way possible - by buying\nDofense Bonds, which will hold defray the cost of building and\nmaintaining our army and navy and our armanent program. Adjust\nyour living gradually to meet the inevitable taxes. War always\nmoins sacrifice.\"\n\"MININNEAPOLIS ROLLS UP ITS SLFEVES!\"\nThis line keynotes the advertisement of the Farmers & Mechanics Savings\nBANK of Minnespolis, which pictures workers in Minneapolis defense plants,\n<rry evintors, and selective service nen in training, and then makes the\npoints:\n\"You, too, can pitch in on national defense by saving some of your\nincome for U. S. Defense Bonds\"\n\"To help the Government p.y for gune and planes, many Minneapolis\ncitizens are buying U. S. Defense Bonds\"\n\"Employees! Ask your company to got the facts about our special pay-\nroll deduction plan to help you buy U. S. Defense Bonds.\"\nBANKS IN MARTFORD COOPERATE\nThirteen leading banks of Hartford, Conn., recently advertised:\n\"ENLIST Д THE SERVICE OF AMERICA! Buy Defense Bonds\nregularly. DO SOMETHING FOR AMERICA..\nThe banks stated that they had all established allotment plans for\ntheir employees end arged adoption of such plans by all business organiza-\ntions,\n- 15 -\nRegraded Unclassified\n49\nEDITORIAL COMMENT:\n\"Defense Savings Bonds that are on sele at every post office and bank,\nHave you bought any of them yet?\n\"There are e lot of reasons why you ought to invest some of your weekly\nearnings in these bonds. One, of course, is simply to help finance our re-\narmament effort 88 B. patriotic duty. Another 16 that there's no better way\nto lay up a nice little safe nest egg for whatever hard times may follow.\n\"One good reason which might not occur to most people is that every\ncitizen who buys Defense Stamps or Bonds is doing his bit to stop inflation.\"\nChicago Times.\n\"Those who P.O without luxuries to buy Defense Bonds can reflect truly\nthat it is cheaper to buy bonds then to bear those that foreign aggressors\nnight like to impose here.\"\nDallas News\n\"United States bonds ere the safest investment in the world. If those\n-ith moderate incomes buy them, they will not only be making 3. wise move from\nthe standpoint of their own interest, but will be helping to steady the whole\nsconomy of the nation. Insofer 88 the buyors of defense bonds do without some-\nthing to make this investment, they contribute to stabilizing prices and help\nto direct the nation's r. sources to th great task of proserving the ideels of\nProdom.\"\nPhiladelphic Bulletin\n\"It ie inspiring to note the response of Seattle to the United States De-\nTense Bond und Stamp Campaign. Labor unions are investing their surplus funds\nin larger bonds sna BTC promoting plans under which members will save regular-\n17 under the psyroll deduction mothod. Banks\nstores\nIt is a type\nof compaign from which everyone can orin\nIn Seattle\nthe bond and\nstamp compaign has E- en lebor, industrial management, banks, stores and thou-\nsands of individuals joining their efforts for the common good.\"\nSesttle Post-Intelligencer\n\"Defense Sevings Bond = that are being sold at your post office or bank\noffer en investment program suitsble for people of 911 income groups. By\nbuying defense sevings stamps, or one of the three types of savings bonds,\nench citizen of the country can do his bit in the biggest effort this nation\never made for the notional security.\"\nGrest Falls Tribune\n16\nRegraded Unclassified\nMUSEUM OF MODERN ART'S PRIZE-WINNING POSTERS\n50\nSHARE SAVINGS AMERICANDS\nUSDEFENSE\nBUY\nSHARE IN AMERICA\nUNITED STATES DEFENSE\nSAVINGS BONDS -STAMPS\nBy John C. Atherton, Ridgefield, Conn.\nBy Joseph Binder, New York, N.Y.\n$500 first prize winner.\n$250 second prize winner\nAMERICA\nStates WA 0341.\n- w\nS\nit\nUNITED STA\nBUY A SHARE IN\nAMERICA\nDEFENS\nUS\nSAVINGS BONDS\nSAWAR\n&STAMPS\nBONDS &\nBy Hugh Donnell, West Reading, Conn.\nBy Clara Fargo Thomas, New York, N.Y.\n$50 prize winner.\n$50 prize winner.\nCOUNTERY MUREUM M MODERN ARE\nM OFFICE -\nRegraded Unclassified\n51\nDEFENSE SAVINGS STAFF\nADVANCE SCHEDULE OF RADIO PROGRAMS\nSATURDAY - AUGUST 23, 1941,\nTime:\n6:30 - 7:00 P. M.\nProgram:\nWayne King\nStation:\nWJSV and CBS Network\nTime:\n7:30 - 8:00 P. M.\nProgram:\nTruth or Consequences\nStation:\nWRC and MCB Red Network\nTime:\n8:00 - 9:00 P. M.\nProgram:\nNational Barn Dence\nStation:\nW.LC and NBC Red Network\nTime:\n11:15 P. M. - 12:00 M.\nProgram:\nMusic You Want, When You Want It.\nStation:\nWALL - Local\nTHESE PROGRAMS PROMOTE THE SALE OF DEFENSE BONDS AND STAMPS.\nRegraded Unclassified\n52\n1743-A\nMEHORAN DUM\nAugust 23, 1941\nTo:\nPRICE ADMINISTRATION COLMITTEE\nFrom:\nR. K. Thompson, Secretary\nAttached are the following:\ny\n1. Civilian allocation program for formaldehyde\n2. Admendments to price schedule No. 4\n3. Civilian allooation program for stool used in\nautomobile license tugs\n4. Amondment to price schodule No. 11\n5, Price schodule No. 15\n6. Price schodule No. 16\n/\n7. Prico schedule No. 17\nV\n8. Civilian allocation program for motor fuel in\nthe Atlentic Coast eron\n9, Civilian allocation program for rayon yam\n10. Price schedulo No. 18\n11. Price schedule No. 19\n12. Amendment to price schedule No. 2\n13. Price schedule No. 20\n14. Amondment to civilian allocation program for\nrayon yarn V\n15. Civilian allocation program for chlorinated\nhydrocarbon refrigerants\n16. Price schedule No. 21\nRegraded Unclassified\n53\n1743->>\nCONFIDENTIAL\nSUBMARY OF STENOGRAPHIC TRANSCRIPT OF MEETING OF\nPRICE ADMINISTRATION COMMITTEE\nAugust 19, 1941\n11:15 a.m.\nPresent: Mr. Henderson, Chairman; Miss Ellistt, Mossrs. Wickard,\nMarch, Ayres, Nelson, Pike, O'Connell, Whitcomb, England,\nBean, Harris, Keir, Hamm, Ginsburg, Galbraith, Hoover,\nPlummer, Thompson\n1. Price legislation\nMr. Henderson reported on the hearings thus far held on the\nprice control bill and indicated that there seemed to be a general\nfeeling when the Committee recessed that B. great deal of misunderstanding\nand distrust had been cleared up and that the members of the Committee\nare proceeding under the assumption that a bill of some kind will be\npassed. Though it was felt the seriousness of the emergency would have\nwarranted the exerting of pressure for a continuance of the hearings while\nCongress is in recess, the ranking Republican and several other members\nexpressed the belief that OPACS was getting along fairly well with the\ncurrent ceilings since they were receiving a high degree of acceptability\nand that probably no great harm would be done in having a short interval.\nMr. Henderson said that 1f members of the Price Administration\nCommittee desire the unrevised Committee prints of the hearings to date,\nhis office would arrange to lend sets. Arrangements are being made to\nabstract the testimony on various subjects and make such abstracts avail-\nable to members of the Price Administration Committee.\nA general discussion followed of the agricultural provision in\nthe bill and of the pressure from various groups for inclusion of B. labor\ncontrol provision. Secretary Wickard reported that both the Farm Burcau\nand the Grange are insistent upon & labor control provision but that the\nCooporative Council and the Farmers' Union have not indicated that they\nwould insist upon its inclusion.\n2. Priorities and civilian allocation\nhir. Henderson referred to the discussions which Judge Rosenman\nis having concorning the resolving of the difficulty between OPM and OPACS,\nparticularly on the matter of civilian allocations. Three or four pro-\nposals will be made to the President but pretty generally they call for\ndividing OPACS into two parts, Price Administration and Civilian Supply,\nand the placing of Civilian Supply under an enlarged OPM which would in-\nelitric all the groups of claiments for production: the military, the Lend-\nLease, the Economic Warfare, and the civilian.\nRegraded Unclassified\n54\n1743-2\n2\nThere followed a general discussion of the problems involved in\nthe squitable allocation of available supplies during which Mr. Nelson\npointed to the necessity of having a single body to determine how division\nis to be made among military, civilian and indirect defense needs. He also\nexpressed his bolief that there should be a reversal of the policy which\nheretofore has allocated to defense production all it needs of a given\nmatorial, even though thore be no residue left for civilian use. He cited\ncoppor as an example where the whole supply is going to defense but whero\nthe civilian economy cannot be run without it. For this reason Mr. Nelson\nbelieves that a determination should be made of the minimum necessary of\nvarious materials to keep the civilian economy going with defense and in-\ndirect defense sharing the balance.\nMr. Henderson pointed out that the whole shift in emphasis on\npriorities and the administration of civilian allocation is duo to the\nlack of far-sightcdness in expanding capacity and production soveral years\nago 80 that adoquate raw materials and supplies would now be available.\n3. Recent price schedules\nMr. Galbraith reported on some of the important price schedules\nrecently issued. He pointed out that about six weeks ago the Price Divi-\nsions's organization reached a basis of reasonably general coverage of\nthe whole price structure and that since then more careful research and\nmore complete discussions with industry groups have preceded the issuance\nof price schedules.\nMr. Galbraith cited the raw sugar schedule as probably the most\nimportant one in terms of the cost of living and as representing the\nclosest collaboration between the Department of Agriculture and OPACS.\nHe also cited the recent schedules on burlap, Southern Pine, tin and copper.\n4. Contemplated price schedules\nMr. Galbraith reported that schedules are in contemplation for\nDouglas fir, anthracite coal, and Pennsylvania grade crudes. The coiling\nFor the anthrscite coal industry will probably be set at the present\nlovel of prices sinco preliminary figures indicate that prices have 1).\nready been increased sufficiently to cover advanced costs in the industry.\n5. Price and allocation procedures\nGibrith asked the mombers of the committee for sug-\nguations\ncommendations concerning price and allocation procedures.\nHe pointed ou: that SQ long as we are unwilling to use the ration card\nthe job of keoping prices in line will be very difficult since there\nis S free area where there is n. shortage of supply end no practical\npossibility of price control.\nRegraded Unclassified\n55\n17W-A\n3\n6. Requisition bill\nSecretary Wickard raised a question as to the status of the\nrequisition bill and Mr. Ginsburg replied that the House rejected the\nconference report and the bill was returned to conference. Secretary\nMickard raised the question whether agricultural products could be\ntaken under the bill and noted that during the Rouse debate objection\nwas raised because the bill did permit the requisitioning of such\nproducts, and then the bill was carried.\n7. Priorities on cheese and other food products\nSecretary Wickard raised a question concerning the possibility\nof procuring cheese and other food products via the priority procedure\nunder the Lend-Lease program or for defense. It was the consensus that\nsuch procedure would be feasible but it was agreed to have representatives\nof OPM, OPACS and the Department of Agriculture survey the whole field.\n8. Cotton-wheat bill\nMr. Henderson reported that he had sent a. note to the President\nexpressing a hope that he would veto the bill which would prevent the\nsale of cotton and wheat stocks hold by the Government. Mr. O'Connell\nadded that the Treasury Department has taken the same stand.\n9. Automobile curtailment\nMr. Nelson reported that several friends of his who are auto-\nmobile dealers in Chicago have advised him that the automobile companies\nare belling the dealers to go ahead and sell cars as fast as they can\nsince there will be no curtailment. Mr. Henderson replied that his\nguess is there will be curtailment and that he and Messrs. Knudsen and\nHillman are meeting with the industry on August 21. Secretary Wickard\nreforred to newspaper stories that there had been a 21 percent increase\nin price but Mr. Henderson called attention to the fact that the announce-\nment was of an 11 percent increase and added that the negotiations of the\nPrice Division could undoubtedly claim credit for that.\nThe committee adjourned at 12:40 p.m. to meet on Tuesday,\nAugust 26, 1941 at 11:00 a.m.\nRegraded Unclassified\n56\nOFFICE FOR EMERGENCY MANAGEMENT\nOffice of Price Administration and Civilian Supply\nFor À. M. Release\nAugust 5, 1941\nPM 866\nSharply restricted civilian use of synthetic resins and plastice made directly\nor indirectly from formaldehyde is provided for in a civilian allocation program\npromulgated today by the Office of Price Administration and Civilien Supply. The\nprogram will go into effect on August 23, 1941.\nSimultaneously it was disclosed that a study of the price situation in the\nformaldehyde branch of the chemical industry is under way by OPACS in view of num-\nerous reports that the less scrupulous distributors are exacting excessive prices.\nA shortage of plastics, synthetic resins and the components of such resins has\ndeveloped within recent weeks because of the great demands made by defense industries\nand the constantly increasing requirements of civilian industries for plastics to\nuse in substitution for other materials no longer available.\nA large percentage of plastice and synthetic resins contains formaldehyde -\nalso used extensively in other fields.\nPresent prospects are that supplies of formaldehyde will be sufficient for re-\nquirements of the defense program and essential civilian needs, but that its use in\nthe production of plastics going into such non-essential items as advertising pre-\nniums, \"juke boxes\", novelties, toys, amateur cameras, etc., must be curtailed.\nWith this objective, the allocation program segregates into three classifica-\ntions the non-defense uses of molding compounds, plastics, adhesives and miscellan-\neous binders, made from synthetic resins.\nSenior preference for supplies of resins made directly or indirectly from\nformaldehyde for civillan use is directed for FL wide range of industries and activi-\nties essential to the public welfare in classification \"A\". Included in this cate-\ngory are public and industrial light, heat, power and water equipment; transporta-\ntion equipment, including assessories to commercial airplanes; trucks, buses, trac-\ntors, fire fighting implements and farm equipment; technical instruments; material\nand equipment for scientific research; chemical protective uses; applications in the\ncommunications industry: oil well equipment; industrial equipment; hose, other than\nprotective costings; mining; industrial, food and medicinal containers and protec-\ntive coverings for them; closures, except decorative: marine applications, and\nTinding wheels and other abrasive products.\nSecondary preference 18 assigned to such less essential civilian uses as pas-\nsonger automobiles, cases for radio receivers, furniture, commercial cemeras, tex-\ntile finishing and household appliances.\nRegraded Unclassified\n57\n- 2 -\nPM 866\nNo proference whatsoever is provided for supplies of synthetic resins made d1-\nrectly or indirectly from formaldenyde in classification \"C\". Into this bracket are\nplaced items considered non-essential to the civilian welfare during the present em-\nergency. A provision is contained in the program to shift into classification \"B\"\nfrom classification \"0\" certain products using only & small percentage of formalde-\nhyde and in which formaldehyde resins are essential.\nThe preferencesaccorded in classifications \"A\" and \"B\" are refined further in\nA separate section of the program. This section stipulates that preference shall be\ngranted only to those uses of resins which are essential to the functioning of the\nclassified part or material and that preference shall not be granted to such uses if\nsatisfectory substitutes are available.\nSpecial limited exceptions may be sought in cases where classification in the\nlowest bracket works any undue or unreasonable hardship or causes unemployment dis-\nproportionate to the conservation of raw materials.\nFormoldehyde, parn-formaldehyde and hexemethylinetetramine, the latter & med-\nicinal derivative of formaldehyde, for all non-plastic uses will receive the same\npreference ns in assigned for uses under classification \"A\".\nThe allocation program vill be administered and enforced by the Office of Pro-\nduction Management.\nText of the program is attached,\nRegraded Unclassified\nPM 866\n58\nTITLE 32 - NATIONAL DEFENSE\nCHAPTER XI OFFICE OF PRICE ADMINISTRATION AND\nCIVILIAN SUPPLY\nPart 1335 - Chemicals\nFor Formaldehyde, Para-Formaldshyde, Hexamethylinetetre-\nmine, and Synthetic Resins Produced Therefrom Civilian\nAllocation Program\nThe increasing requirements of the defense effort and the use of plastice\nAB substitutes for other materials have combined to croate 8 shortage of plas-\nties, synthetic resins, and the components of such resins. The diminished amount\nof such materials, AB well 88 the essential functions such materials serve,\nmakes it necessary that available supplies be utilized in such B. way as best to\npromote the national well-being.\nAccordingly, pursuant to and under the authority vested in me by Executive\nOrder No. 8734, particularly Section 2(a) thereof, the following program ie an-\nnounced:\n1335.21 Allocation of Materials for Plastics, Non-defense uses of mold-\ning compounds, plastics, adhesives, and miscellaneous binders, made from syn-\nthetic resins shall be divided into three classifications, as get forth in\n1335.23 of this program. To the extent that supplies of resins made directly or\nindirectly from formaldehyde are available for allocation among competing civil-\nian demands, supplies for civilian uses enumerated under Classification A shall\nbe given primary preference, and supplies for civilian used enumerated under\nClassification B shall be given secondary preference. Supplies of such resine\nfor civilian uses enumerated under Classification C shall be given no preference\nwhatever, and no person shall produce, sell, or use resine made directly or in-\ndirectly from formaldehyde for the making of molding compounds, plastics, ad-\nbesives, and miscellaneous binders for such Classification C uses, nor shall any\nperson produce, sell, or use formaldehyde, para-formaldehyde, or hexamethylinet-\netramine for the making of resins from which molding compounds, plastics, ad-\nbesives, and miscellaneous binders for such Classification C uses are to be made.\nProvided however, that products that would otherwise be classified under Classi-\nfication C, which are composed to the extent of 90% or over, by value, of raw\nmaterials other than formaldehyde, para-formaldehyde, or hezamethylinetetramino\nresins, and in which the formaldehyde resins are essential, shall be classified\nunder Classification B.\n1335.21 to 1335.23, inclusive, issued\npurquant to the authority contained in\nRegraded Unclassified\n59\nPM 866\n- 2 -\nExecutive Order No. 8734.\n1335.22 Nature of Uses Granted Preferences. In Classifications A and B,\npreference shall be granted only to those uses of resins which are essential to\nthe functioning of the classified part or material, and preference shall not be\ngranted to such uses if satisfactory substitutes are available. The quantities\nallocated for the production of articles in Classification B may be limited In\namount, in which event such limited amount shall be equitably distributed among\nproducers. In the event that classification of any article under Classification\ne works any undue or unreasonable hardhsip or causes unemployment disproportion-\nate to the conservation of raw materials, special exceptions for such lengths of\ntime as may be deemed necessary may be made by the Director of Priorities of the\nOffice of Production Management, with the concurrence of the Director of Civilian\nAllocation of the Office of Price Administration and Civilian Supply.*\n1335.23 Classification by Uses. Subject to the provisions of 1335.22,\nclassification by uses shall be as follows:\n4. Public and industrial heat, light, power and water equipment\nTransportation equipment - including accessories to commercial\nairplanes\nTrucks, buses, tractors, firefighting and farm implements\nTechnical instruments\nNaterial and equipment for scientific research\nChemical protective uses\nApplications in the communications industry (telephone and telegraph)\nIndustrial equipment\nOil well equipment\nHousing, other then protective coatings\nMining\nIndustrial, food, and medicinal containers, and protective\ncoverings therefor\nClosures, except decorative\nMarine applications\nGrinding wheels and other abrasive products.\nB. Tables and kitchenware, save as expressly classified under C\nProtective coatings not otherwise specified\nRadios\nHousehold appliances\nTextile finishing\nDomestic wiring devices\nPassenger automobiles\nButtons\nBrushes\nFurniture\nPipe stems\nCommercial cameras and other commercial photographic equipment\nArticles fashioned from standard cests by hand operations\nRegraded Unclassified\n60\nPM 866\n- 3 -\n0. Amateur cameras and other photographic equipment\nHardware\nSmokers' articles, except pipe stems\nDecorative articles, vases, bric-a-brac, not otherwise specified\nTumblers, cups, and plates\nPremium and advertising items\nNovelties, not otherwise specified\nBuckles and findings, not otherwise specified\nDisplays\nEscutcheon plates\nPicture frames\nToya\nGames\nPhonographe\nMinor utilitarian items easily substitutable - bookends,\nstationers' articles, mechanical pencils, and the like\nArticles or uses excluded from Classification A and\nClassification B by 1325.3*\n1335.24 Allocation of Formeldehyde for Non-Plastic Uses. Formaldehyde,\npara-formeldehyde, and hexamethylinetetramine for all non-plastic uses shall re-\nceive the same preference as such materials receive for uses classified under\nClassification A of Section 1335.23.*\n1335.25 Avoidance of Excessive Inventories. Preferences granted under\nthis program shall not be used to accumulate excessive inventories.\"\n1335.26 Definitions. For the purpose of this order, \"person\" means and in-\ncludes any individual, partnership, association, corporation, or other form of\nenterprise.\n1335.27 Enforcement. The foregoing program is to be administered and en-\nforced by the Office of Production Management.*\n1335.28 Effective Date. This order shall take effect on the 23rd day of\nAugust, 1941.\nIssued this 31st day of July, 1941\nLeon Benderson\nAdministrator\nCertified to be a true copy of the original.\nJohn 3. Hamm\nDeputy Administrator\nRegraded Unclassified\nOFFICE FOR EMERGENCY MANAGEMENT\n61\nOffice of Price Administration and Civilian Supply\nfor release AM Friday\nAugust 8, 1941\nPM 887\nAmendments to Price Schedule No. 4, fizing ceiling prices on iron and steel\nBcΓap, were announced today by the Office of Price Administration and Civilian\nSupply.\nThe changes establish for Gulf ports the same export ceiling price as that\npreviously arrived at for the Eastern seaboard; add more basing points in Appendix\nA, and modify the existing shipping point price for dealers' yards located within\nbasing points.\nSummarized, the three important amendments follow:\n(1) The $16 per ton maximum export price for No. 1 heavy melting scrap and\nthe $16 maximum export price for No, 1 railroad grade heavy melting scrap (with\ncustomary differentials for other grades in each classification), f.a.s. at all\nports on the Gulf of Mexico are eliminated. Instead, the maximum export price\nf.a.s. at all G-Ited States ports for heavy melting scrap (other than railroad)\n16 made the domestic shioping point price, plus the lowest necessary charge for\ntransporting scrap from the shipping point to the point of export. In the case of\nrailroad grade heavy melting scray, the ceiling price, f.a.c. et all United States\nports, is made the maximum price for B. consumer located on the line of the origin-\nsting railroad, plus actual transportation charges from the line to the point of\nexport. No such transportation charges, however, are allowed to be added in com-\nputing the ceiling export price for scrap originating from a railroad not operating\nst EL basing point. Actual costs incident to shipment for excort and a marimum\nbroker's commission of 50 cents per ton may be added if shown asa separate charge\non the invoice.\n(3) Conshohocken, Pa.: Minneapolis and St, Paul, Minn.; Atlanta, Ga,:\nAlabama City, Ala.: and Portland, Ore., are added as basing points. Minnequa, Colo,\nin climinated ao a basing point for scrap of railroad origin,\nSasing point prices at Pittsburgh, Pa.: Ashland, Ky.: Toledo, 0.; Duluth,\nMinn.: Worcester, Mass,: Bridgeport, Conn.; Fhillipsdale, R.I.: Birmingham, Ala.;\nMinnequa, Colo.; Los Angeles, San Francisco and Seattle are changed in the amended\nschedule.\n(3) Paragraph II of the schedule, establishing maximum prices at a shipping\npoint, has been divided into two sections: Shipping point prices (a) at shipping\npointe located within basing points and (b) at chipping points located outside\nbasing points,\nRegraded Unclassified\n62\n-3-\nPM 887\nIn the case of shipping points within basing points, the price is the basing\npoint price, minus actual transportation costs from the shipping point to the near-\nept consumer's plant within the basing point. For shipping points located outside\nbasing points, the computation of the shipping point price remains unchanged,\nexcept that such price at all shipping points in New York City, Brooklyn, and New\nJersey which, by reason of barge rates, are nearest in terms of transportation\ncharges to the Buffalo, N.Y., basing point, shall hereafter be computed from the\nBethlehen, Pa., basing point.\nText of the schedule revised to incorporate the la test amendments is attached,\nRegraded Unclassified\n63\nTITLE 32-NATIONAL DEFENSE\nPM 88?\nCHAPTER XI - OFFICE OF PRICE ADMINISTRATION AND\nCIVILIAN SUPPLY\nPart 1304 - Iron and Steel Scrap\nPrice Schedule No. 4 amended\nWHEREAS, the Office of Price Administration and Civilian Supply 1e charged\nwith functions related to the maintenance of price stability and the prevention\nof undue price rises and price dislocations; and\nWHEREAS, the increased demand for iron and steel scrap has exerted infle-\ntionary pressure upon the prices thereof, and has already caused, end threatens\nstill further to cause, speculative activity. and the withholding of iron and\nsteel scrap from the market: and\nWHEREAS, prices of iron and steel scrap have risen to a degree that has\ncaused price instability and dislocations injurious to the national defense; and\nWHEREAS, under the foregoing circumstances, the absence of any maximum price\nstandards has militated against and in some cases rendered it impossible for the\nGovernment to obtain voluntary cooperation in maintaining price stability and in\npreventing excessive and speculative price increases? and\nWHEREAS, it appears that the establishment of maximum price standards in\nnecessary to facilitate cooperation with the Government and prevention of a price\npolicy tending to weaken the defense effort through disastrous inflation, undue\nburdens upon the Government, economic dislocations, price spiraling, and prof-\niteering, and the establishment of such standards ie otherwise necessary in the\npublic interest and in the interest of national defense; and\nWHEREAS, on the basis of information secured by independent investigation\nby this Office and through cooperation of the trade, I find that the maximum price,\n0.0 prescribed herein and set forth in Section 1304.16, Appendix A. Section 1304.17\nAppendix B, and Section 1304.18, Appendix C, annexed hereto, constitute reasonable\nlimitations on prices for iron and steel scrap:\nNOW, THEREFORE, IN ORDER TO FACILITATE COOPERATION VITH THE GOVERNMENT IN\nMAINTAINING PRICE STABILITY AND IN PREVENTING EXCESSIVE AND SPECULATIVE PRICE IN-\nCREASES INJURIOUS TO THE DEFENSE PROGRAM AND TO THE PUBLIC INTEREST AND TELFARE,\nIT IS HEREBY ORDERED; that Price Schedule No. 4. be amended to read as follows:\n1304.1 Maximum Prices on Sales of Iron and Steel Scrap Other than Railroad\nScrap, On and after April 3, 1941, regardless of the terms of any commitment\ntheretofore entered into, no person shall sell, offer to sell, deliver, ur trans-\nfer at a price, iron and steel scraj other than relroad scrap to the consumer of\nsuch scrap, at prices higher than the nices sot forth in Section\nRegraded Unclassified\nPM 887\n64\n-2-\n1304.16, Appendix & annoxed hereto, and no consumer shall buy, offer to buy, or\naccept delivery of, iron and ateel scrap other than railroad scrap at prices higher\nthan the prices set forth in Section 1304.16, Appendix 4, except AD provided in\nSections 1304.5 and 1304.6 hereof. Lower prices may, however, be charged. demanded,\npaid or offered.\nSections 1304,1 to 1304.19 inclusive issued pursuant\nto the authority contained in Executive Order No. 8734.\n1304,2 Maximum Prices on Sales of Iron and Steel Pailroad Scrap,\nOn and after April 3, 1941, regardless of the terms of any commitment theretofore\nentered into, no person shall sell, offer to sell, deliver, of transfer at a price,\niron and steel railroad scrap to the consumer of such ecrap, at prices higher than\nthe prices set forth in Section 1304.17, Appendix B annexed hereto, and no con-\nsumer shall buy, offer to buy, or accept delivery of, iron and steel reilroad\nscrap at prices higher than the prices established in Section 1304.17, Appendix B\nannexed hereto, except as provided in Sections 1204.5 and 1304.6 heroof, Lower\nprices may, however, be charged, demanded, paid or offered.*\n1304,3 Maximum Prices on Sales of Iron end Steel Scrap for Export. On and\nafter April 3, 1941, regardless of the terms of eny commitment theretofore entered\n: no person shall aell or offer to sell for export, or deliver for export, iron\nAL steel scrap. to any person at prices higher than the prices set forth in Section,\n1004.18, Appendix o annexed hereto and no consumer or agent or other person shall\nbuy or offer to buy for export, or accept delivery of for export, iron and steel\ncorap at higher prices than the prices set forth in Section 1304.18, Appendix 0\nannexed hereto, except as provided in Sections 1304,5 and 1304.6 herenf. Lower\nprices may, however, be charged, derended, paid or offered.\"\n1304.4 Mothod of Socuring Information Governing Maximum Prices on Sales of\nIron and Steel Reilroad Scrap,\nOn and after April 3, 1941, a sale of any grade of iron and steel railroad\nstrap for which no naximum price 1a published in Section 1304.17, Appendix B shall\nbe made only after opportunity has been given any buyer of such scrap to learn the\n=aximum price, if any, applicable to such sale by addressing AD inquiry to the\nOffice of Price Administration and Civilian Supply in Washington, D. C, In order\nto provide such opportunity, no sale of any such grade of iron or steel railroad\nstrap, concerning which B maximum price is applicable hereunder, shall be made,\nexcept 89 provided under Section 1304.5 below. until after the railroad maker there-\n& or other person has filed with the Office of Price Administration and Civilian\nJupply at Washington, D. C. the information required to determino with Section\n1304.17. Appendix R annoxed hereto, the maximum price thereby established for such\nRegraded Unclassified\nPM 887\n65\ngrade. and until the Office of Price Administration and Civilian Supply has there-\nupon released & maximum price therefor.\n1304.5 Rxtension to May 10, 1941 for Uncompleted Contracts.\n(a) In the event that any person has, prior to April 3, 1941, acquired\npossession of, and ownership in, iron and steel scrap at A price in excess of the\nmaximum price established in this Price Schedule for the purpose of carrying out\ne contract for the sale of such scrap entered into prior to such date, such salo\nmay be made and completed at the price contracted for, even though such price\nis in excess of the maximum price established herein, provided that deliveries are\ncompleted on or before May 10, 1941.\n(b) Any person, who prior to April 3, 1941, entered into A. contract at prices\nhigher than the maximum prices established under this Price Schedule for the sale\nof iron and steel scrap!\n(1) originating from a. demolition operation commenced prior to April\n3. 1941; or\n(2) acquired prior to April 3, 1941, and accumulated at B. point of\nshipment, for export or otherwise, and impossible, due to lack\nof transportation facilities, to deliver to the purchaser of such\nscrap,\nmay make and complete such sale at the prices contracted for provided that de-\nliveries of such scrap are completed on or before May 10, 1941, or on B. later\ndate fixed by the Office of Price Administration and Civilian Supply upon appli-\ncation, supported by affidavit establishing a reasonable ground for extension be-\nyond May 10, 1941.\n1304,6 Commissions, In the event that & consumer of iron and steol scrap\nshall employ an agent or broker to purchase iron and steol scrap for its ugo,\nsuch consumer may pay such agent or broker for such scrap a sum not exceeding\nthe maximum prices established under this Schedule plus a commission of not more\nthen 50# per groas ton. Such commission shell be payable only if (a) the agent\nor broker guarantocs the quality and delivery of an agreed tonnage of the scrap:\n(b) the commission is shown 8.6 & separate charge in billing: (c) the scrap is\ninvoiced at & price not higher than the maximum applicable herein; and (d) no\ndealer or broker splits or divides the commission allowed him by 8 consumer with\nthe seller or sellere of the scrap, with another broker or a subbroker, or with\nthe consumer, A dealer who has never acted as 8 broker prior to June 18, 1941,\nshall in no case be allowed & brokerage commission.\"\nRegraded Unclassified\nPM 897\n66\n1304.7 Shipment - Limitation on Use of Certain Kinda of Iron and Steel Scrap,\n(a) The shipment of iron and steel scrap shall, insefar as practicable, be\nrouted through the channels customarily utilized by the maker, doaler, broker or\nconsumer in order to minimize the necessity for cross-hauling and to prevent dis-\nlocation of the machinery of collection and preparation for consumption,\n(b) Consumers, brokers and dealers shall, to the greatest possible extent,\nrefrain from the purchase, and steel mills (open hearths) from the use of the\nkinds and grades of iron and steel railroad scrap not essential to their pro-\nduction; i.e., rerolling rails scrap must be diverted to rerelling mills and not\ncut for melting purposes.\n(e) A reilroad maker of iron and steel scrap shall not sell such scrap off\nthe line of his railroad, irrespective of price, until he has supplied consumere\nlocated on the line of the railroad as they have been in the past customarily\nsupplied with to iron and steel scrap originating on the railroad.'\n1304,8 Everion. The price limitations net forth in this Schedule shall\nnot be evaded whether by direct or indirect methods in connection with a purchase\nor sale of iron and steel scrap, or of any other materials, or by way of any\nservice or other charge. including transportation charges, or discount, premium\nor other privilege, or by any tying agreement or trade understanding, or other-\nwise.\n1304,9 Record-keeping Requirements. Every dealer in, end overy maker,\nsmelter, processor, broker, or consumer of, and every other person purchasing or\nselling iron and steel scrap shall, until such time B.S. further information 1s\ndoemed necessary or appropriate hereunder, keep for inspection by the Office of\nFrice Administration and Civilian Supply and preserve for B. period of not loss\nthan one year, complete and accurate records of:\n(a) All purchases and sales of iron and steel scrap, recording therein the\nperson from or to whom each such purchase or sale was made, the date thereof,\nthe price paid, or received, and the quantity in pounds and quality by grades in\nirón and steel scrap, or both, involved; and\n(b) As of the close of each month, the amount in pounds of iron and steel\nscrap, (1) on hand and (11) on order,\"\n1304.10 Renorts of Consumers' Inventories and Purchases of Iron and Steel\nScrap, Every consumer of iron and steel scrap, on or before May 1, 1941, shall\nfile B. report with the Office of Price Administration and Civilian Supply, Wash-\nington, D. C., setting forth its total inventories of iron and steel scrap on\nhand on April 1, 1941, In addition every consumer who purchases iron and steel\nRegraded Unclassified\nPM 867\n67\nscrap shall, on or before the fifteenth day of the month following the month in\nwhich one or more purchases are made, file 8. report with the Office of its\npurchases, consumption and inventory of iron and steel scrap for the month in\nthe manner prescribed in Section 1304.19, Appendix D hereof. Consumers of iron\nand steel scrap shall submit such further reports aa the Office of Price Admini-\natration and Civilian Supply say, from time to time require.*\n1304.11 Enforcement. In the event of refusal or failure to abide by the\nprice limitations, record requirements, and other provisions contained in this\nSchedule, or in the event of any evasion or attempt to evade the price limitations\nor other provisions contained in this Schedule, this Division will make every\neffort to assure (a) that the Congress and the public are fully informed of any\nfailure to abide by the provisions of this Schedule; and (b) that the powers of\nthe Government are fully exerted in order to protect the public interest and the\ninterests of those persons who conform with this Schedule in the maintenance of\nceiling prices set forth herein. Persons who have evidence of the demand or re-\nceipt of prices above the limitations set forth, or of any ovasion or effort to\nevade such requirements, or of speculation, or manipulation of prices of iron and\nsteel scrap, or of the hoarding or accumulating of unnecessary inventories there-\nof, are urged to communicate with the Office of Price Administration and Civilian\nSupply,\"\n1304.12 Supplemental Schedule and Reporting Requirements. In order to 1p-\nsure compliance with this Schedule supplements further stating its scope and, if\nnecessary, requiring further reports to the Government, will be issued from time\nto time when found appropriate.\"\n1304.13 Modification of the Price Schedule, Persons complaining of hard-\nchip or inequity in the operation of this Schedule may apply to the Office of\nPrice Administration and Civilian Supply, Washington, D. C., for approval of any\nmodificati on thereof or exception therefrom, and the Office of Price Administra-\ntion and Civilian Supply may, upon its own initiative, and as and when it seems\nappropriate, modify or enlarge this Price Schedule and the maximum prices 09-\ntablished hereunder.\"\n1304.14 Definitions, When used in this Schedule:\n(a) the term \"person\" includes an individual, corporation, association,\npartnership, or other business entity;\n(b) the term \"iron and steel scrap other than railroad scrap\" means the\nkinds and grades of imported and domestic iron and steel scrap referred to in\nSection 1304.16, Appendix A;\nRegraded Unclassified\n68\nPM 887\n-6-\n(e) the term \"iren and steel railroad scrap\" means iron and steel scrap\nhaving a railroad origin and includes the kinds and grades of imported and\ndomestic iron and steel scrap referred to in, and determined under, Section\n1304.17, Appendix B;\n(d) the term \"railroad\" includes steam and electric railreads, and street,\nsuburban, and interurban electric railways and local trolleys;\n(a) the term \"iron and steel scrap\" means all kinds and grades of imported\nand domestic iron and steel scrap including iron and steel railroad scrap;\n(f) the term \"consumer\" means a purchaser, for its own consumption, of\niron or steel scrap, 1.e. smelter, foundry, steel mill, etc.;*\n1304.15 This Schedule shall become effective immediately, except as other-\nwise specifically previded herein.*\nIssued this 6th day of August, 1941.\nLeon Henderson\nAdministrator\nCERTIFIED TO BE 1 TRUE COPY OF THE ORIGINAL\nJohn E. Hamm, Deputy Administrator\nRegraded Unclassified\n7\nPM 687 69\n1304.16 Appendix A\nMAXIMUM PRICES FOR IRON AND STEEL SCRAF OTHER THAN BAILROAD SCRAP\nAll the prices given oelow are per gross ton.\nI.\nBASING POINT PRICES FROM WEICH SFLPPING POINT PRICES AND CONSUMERS' DELIVERED\nPRICES RE TO JE COMPUTED.\nBASING POINTS\nPittsburgh,\nPa.\nJohnstown,\nPa.\nConshohocken,\nPa,\nWierton,\nW. Va.\nSteubenville,\nOhio\nYoungstown,\nOhio\nWarren,\nOhio\nGRADES\nNo. 1 Heavy Melting Steel\n20.00\n20.00\n18.75\n20.00\n20.00\n20.00\n20.00\nNo. 1 Hydraulic Compressed\nBlack Sheet Scrap\n30.00\n20.00\n18,75\n20.00\n20.00\n20.00\n20.00\nNo. 2 Heavy Melting Steel\n19.00\n19,00\n17.75\n19.00\n19.00\n19,00\n19,00\nDealers' No. 1 Bundles\n19.00\n19.00\n17.75\n19.00\n19.00\n19.00\n19,00\nDealers' No. 2 Bundles\n18.00\n18.00\n16.75\n16.00\n18.00\n18.00\n18.00\nMixed Borings and Turnings\n15.25\n15.25\n14,00\n15.25\n15.25\n15.25\n15.25\nMachine Shop Turnings\n15.50\n15,50\n14.25\n15.50\n15.50\n15.50\n15.50\nShovelling Turnings\n16.50\n16.50\n15.35\n16.50\n16.50\n16.50\n16.50\nNo. 1 Busbeling\n19,50\n19,50\n18.25\n19.50\n19.50\n19.50\n19.50\nNo. 2 Busbeling\n15,50\n15,50\n14.25\n15.50\n15.50\n15.50\n15,50\nCast Iron Borings\n15.75\n15.75\n14.50\n15.73\n15.75\n15.75\n15.75\nUncut Structural &\nPlate Scrap\n19.00\n19.00\n17.75\n19.00\n19.00\n19,00\n19.00\nNo. 1 Cupola\n21.00\n21.00\n23.00\n21.00\n21,00\n21.00\n21.00\nHeavy Breakable Cast\n19.50\n19.50\n21.50\n19.50\n19.50\n19.50\n19.50\nStove Plate\n19.00\n19.00\n18.50\n19.00\n19.00\n-\n-\nLow Phoa Billet &\nBloom Crops\n25.00\n25,00\n23.75\n25.00\n25.00\n25.00\n25.00\nLow Phos Bar Crops &\nSmaller\n23.00\n23,00\n21.75\n23.00\n23.00\n23.00\n23.00\nLow Phos Punchings &\nPlate Scrap'\n24.75\n23.00\n21.75\n23.00\n23.00\n23.00\n23.00\nMachinery Cast,\nCupola Size\n22.00\n22.00\n24.00\n22.00\n22.00\n22.00\n22.00\nNo. 1 Mach. Cast, drop-\nbroken, 150 lbs. & under\n22.50\n22,50\n24.50\n22.50\n22.50\n22.50\n22.50\nClean Auto Cast\n22.50\n22.50\n24.50\n22.50\n22.50\n22.50\n22.50\nPunchings & Plate Scrap\n23.75\n22,00\n20.75\n22.00\n22.00\n22.00\n22.00\nPunchings & Plate Scrap\n22.75\n21,00\n19.75\n21.00\n21.00\n21.00\n21.00\nHeavy Axle & Forge Turnings\n21.25\n19,50\n18.25\n19.50\n19,50\n19.50\n19.50\nMedium Heavy Electric\nFurnace Turnings\n19.75\n18,00\n16.75\n18,00\n18,00\n18.00\n18.00\nRegraded Unclassified\n70\ne\nPM 367\nBASING POINTS\nSharon,\nPa\nCanton,\nOhio\nChicago,\nn.\nKokomo,\nInd.\nBethlehem,\nPa.\nClaymont,\nDel.\nCoatesville,\nPa.\nGRADES\nNo. 1 Heavy Melting Steel\n20.00 20,00 18,75 18,25 18,25 18.75 18,75\nNo. 1 Hydraulic Compressed\nBlack Sheet Scrap\n20.00 20.00 18,75 18,25 18,25 18,75 18,75\nNo. 2 Heavy Melting Steel\n19,00 19,00 17.75 17.25 17.25 17,75 17.75\nDealers' No. 1 Bundles\n19,00 19,00 17.75 17.25 17,25 17.75 17.75\nDealers' No. 2 Bundles\n18,00 18.00 16.75 16.25 16.25 16.75 16.75\nMixed Borings and Turnings\n15,25\n15.25\n14,00\n14.25\n13,50\n14,00\n14.00\nMachine Shop Turnings\n15,50 15.50 14,25 14,50 13.75 14.25 14,25\nShovelling Turnings\n16,50 16.50 15.25 15.50 14.75 15.25 15.25\nNo. 1 Busheling\n19.50 19,50 18.25 17.75 17.75 18.25 18,25\nNo. 2 Busheling\n15.50 15.50 14,25 13.75 13.75 14,25 14.25\nCast Iron Borings\n15.75 15,75 14.50 14,00 14,00 14,50 14,50\nUncut Structural &\nPlate Scrap\n19.00 19.00 17.75 17.25 17.25 17.75 17.75\nNo. 1 Cupola\n21.00 21.00 20.00 0.00 22.50 23.00 23,00\nHeavy Breakable Cast\n19.50 19,50 18.50 18,50 21,00 21.50 21.50\nStove Plate\n-\n-\n17.00\n16.00\n18.00\n18,50\n18,50\nLow Phos Billet &\nBloom Crops\n25.00\n25.00\n23.75\n23.75\n23.25\n23.75\n23.75\nLow Phos Bar Crops &\nSmaller\n23.00 23.00 21.75 21.75 21.25 21,75 21.75\nLow Phos Punchings &\nPlate Scrap*\n23.00 23.00 21.75 21.75 21.25 21.75 21.75\nMachinery Cast,\nCupola Size**\n22.00 22,00 21,00 21.00 23.50 24.00 24,00\nNo. 1 Mach, Cast, drop-\nbroken, 150 lbs. & under\n22,50\n22,50\n21,50\n21.50\n24.00\n24,50\n24.50\nClean Auto Cast\n22.50\n22,50\n21,50\n21,50\n24,00\n24.50\n24.50\nPunchings & Plate Scrap***\n22.00\n22.00\n20.75\n20.75\n20.25\n20.75\n20.75\nPunchings & Plate Scrap****\n21.00\n21.00\n19.75\n19.75\n19.25\n19.75\n19.75\nHeavy Axle & Forge Turnings 19,50 19.50 18.25 18,25 17.75 18,25 18.26\nMedium Heavy Electric\nFurnace Turnings\n18,00 18,00 16.75 16,75 16,25 16,75 16.78\n71\nPM 887\n-9-\nRASING POINTS\nPhoenixville,\nPa.\nHarrisburg,\nPa.\nSparrows Point,\nMd.\nCleveland,\nOhio\nBuffalo,\nN.Y.\nPortamouth,\nOhio\nMiddletown,\nOhio\nGRADES\nNo. 1 Heavy Melting Steel\n18.75\n18,75\n18.75\n19.50\n19,25\n19,50\n19,50\nNo. 1 Hydraulic Compressed\nBlack Sheet Scrap\n18,75 18.75 18.75 19.50 19,25 19.50 19.50\nNo. a Heavy Melting Stem1\n17.75\n17.75\n17,75\n18,50\n18,25\n18.50\n18.50\nDealers' lio, 1 Bundles\n17,75\n17.75\n17.75\n18,50\n18,25\n18,50\n18,50\nDealers' No. 2 Bundles\n16.75\n16.75\n16.75\n17.50\n17.25\n17,50\n17.50\nMixed Borings and Turnings\n14,00\n14.00\n14.00\n14.75\n14.50\n14.75\n14,75\nMachine Shop Turnings\n14.25\n14,25\n14.25\n15.00\n14.75\n15.00\n15.00\nShovelling Turnings\n15.25\n15.25\n15.25\n16.00\n15,75\n16.00\n16.00\nNo. 1 Busheling\n18.25\n18.25\n18.25\n19,00\n18.75\n19,00\n19,00\nNo, 2 Busheling\n14.25\n14,25\n14.25\n16,00\n14.75\n15,00\n15,00\nCast Iron Borings\n14.50\n14.50\n14,50\n16,25\n15.00\n15,25\n15.00\nUncut Structural &\nPlate Scrap\n17.75\n17.75\n17.75\n18,50\n18.25\n18,50\n18,50\nNo. 1 Cupola\n23.00\n23.00\n22.00\n22.00\n20.00\n21.00\n21.00\nHeavy Breakable Cast\n21,50\n21.50\n21.00\n20.50\n18,50\n19.50\n19,50\nStove Plate\n18,50\n18.50\n18,00\n18.00\n19.00\n17.50\n17.50\nLow Phos Billet &\nBloom Crops\n23,75\n23.75\n23.75\n24.50\n24.25\n23,50\n23.50\nLow Phos Bar Crops &\nSmaller\n21.75\n21.75\n21.75\n22.50\n22.25\n21,50\n21,50\nLow Phos Punchings\n& Plate Scrap*\n21.75\n21,75\n21.75\n22.50\n22.25\n21,50\n21,50\nMachinery Cast,\nCupola Size\n34.00\n24.00\n23.50\n23.00\n21.00\n22.00\n22.00\nNo. 1 Mach. Cast, drop-\nbroken, 150 lbs. & under\n24.50\n24.50\n24.00\n23.50\n21,50\n22,50\n22.50\nClean Auto Cest\n24,60\n24,50\n24.00\n23.50\n21.50\n22.50\n22.50\nPunchings & Plate Scrap***\n20.75\n20.75\n20.75\n21.50\n21,25\n20.50\n20.50\nPunchings & Plate Scrap\n19,75\n19,75\n19,75\n20.50\n20.25\n19,50\n19.50\nHeavy Axle & Forge Turnings\n18,25\n18.25\n18.25\n19.00\n18,75\n18.00\n18.00\nMedium Beavy Electric\nFurnace Turnings\n16,75\n16.75\n16,75\n17,50\n17,25\n16.50\n16,50\nRegraded Unclassified\n72\n10\nPM 887\nBASING POINTS\nAshland,\nKy.\nSt. Louis,\nNo. d/\nDetroit.\nMich.\nMinneapolis-\nSt. Paul, Minn.\nDuluth,\nMinn.\nBirmingham,\nAla.\nChattanooga,\nTend,\nGRADES\nNo, 1 Heavy Melting Steel\n19.50\n17.50\n17.85\n-\n18.00\n17.00\n-\nNo. 1 Hydraulic Compresed\nBlack Sheet Scrap\n19.50\n17.50\n17.85\n-\n18.00\n17.00\n-\nNo. 2 Heavy Melting Steel\n18.50\n16.50\n16.85\n-\n17.00\n16.00\n-\nDealers' No. 1 Bundles\n18.50\n16.50\n16.85\n-\n17.00\n16.00\n-\nDealers' No. 2 Bundles\n17.50\n15.50\n15.85\n-\n16.00\n15.00\n-\nMixed Borings and Turnings\n14.75\n12.75\n13.10\n-\n-\n12.25\nI\nMachine Shop Turnings\n15.00\n13.00\n13.35\n-\n15.50\n15.00\n-\nShovelling Turnings\n16,00\n14.00\n14,35\n-\n16.50\n16.00\nI\nNo. 1 Busheling\n19.00\n17.00\n17.35\n-\n17.50\n16.50\n1\nNo. 2 Busheling\n15,00\n13.00\n13.35\n-\n13.50\n12.50\n-\nCast Iron Borings\n15.35\n13.25\n13.60\n-\n13.75\n12.75\n-\nUncut Structural &\nPlate Scrap\n18.50\n18.50\n16.85\n-\n17.00\n16.00\n-\nNo. 1 Cupola\n21.00\n20.00\n20.35\n19.00\n19.00\n20.00\n20.50\nHeavy Breakable Cast\n19.50\n18.50\n18.85\n17.50\n17.50\n18.50\n-\nIve Plate\n17.50\n17.00\n14.10\n16.00\n16.00\n17.00\n17.50\nLow Phos Billot &\nBloom Crope\n23.50\n22.50\n22.85\n-\n23.00\n22.00\nI\nLow Phos Bar Crops &\nSmaller\n21.50\n20.50\n20.85\n-\n21.00\n20.00\n-\nLow Phos Punchings &\nPlate Scrau*\n21.50\n20.50\n20.85\n-\n21.00\n20.00\n-\nMachinery Cast,\nCupola Size**\n22.00\n21.00\n21.35\n20.00\n20.00\n21.00\n21.50\nNo. 1 Mach, Cast, drop-\nbroken, 150 lbs. & under\n22.50\n21.50\n21.85\n20,50\n20.50\n21.50\n22.00\nClean Auto Cast\n22.50\n21.50\n21.85\n20.50\n20.50\n21.50\n22,00\nPunchings & Plate Scrap***\n20.50\n19.50\n19.85\n-\n20.00\n19.00\n-\nPunchings & Plate Scrap\"\"*\"\n19.50\n18.50\n18.85\n-\n19.00\n18.00\n1\nHeavy Axle & Forge Turnings\n18.00\n17.00\n17.35\n-\n17.50\n16.50\n-\nMedium Heavy Electric\nPurnace Turnings\n16.50\n15.50\n15,85\n-\n16.00\n15,00\n-\nRegraded Unclassified\n11\n73\nPM 887\nBASING POINTS\nRadford,\nVa.\nWorcester,\nMass.\nBridgeport,\nConn.\nPhillipadale,\nof -\nAlloy,\nW.Va.\nLos Angeles,\nCalif.\nSan Francisco,\nCalif.\nGRADES\nNo. 1 Heavy Melting Steel\n-\n-\n-\n-\n-\n14.50 14.50\nNo. 1 Hydraulic Compressed\nBlack Sheet Scrap\n-\n-\n-\n-\n-\n14.50\n14.50\nNo. 2 Heavy Melting Steel\n-\n-\n-\n-\n-\n-13.50\n13.50\nDealers' No. 1 Bundles\n-\n-\n1\n-\n-\n13.50 13.50\nDealers' No. 2 Bundles\n-\nI\n-\n-\n-\n12.50\n12.50\nMixed Borings and Turnings\nI\n-\n-\n-\n-\n9.75\n9.75\nMachine Shop Turnings\n-\n-\n-\n-\n17.60\n10.00\n10.00\nShovelling Turnings\n-\n1\n-\n-\n-\n11.00\n11.00\nNo. 1 Busheling\n-\n-\n1\n-\n-\n14.00\n14,00\nNo. 2 Busheling\n:\n-\n-\n-\n-\n10.00 10.00\nCast Iron Borings\n1\n-\n:\n-\n-\n10,25 10.25\nUncut Structural &\nPlate Scrap\n-\n-\n-\n-\n-\n13,50\n13,50\nNo. 1 Cupola\n21.00\n22.00\n22,00\n22.00\n-\n18.00\n18,00\nHeavy Breakable Cast\n-\n20.50\n20,50\n20.50\n-\n17,00 17.00\nStove Plate\n18,00\n17.50\n17.50\n17,50\n-\n14.00\n14.00\nLow Phos Billet &\nBloom Crops\n,\n$\n-\n-\nI\n19,50\n19.50\nLow Phos Bar Crops\n& Smaller\nt\n-\n-\nI\n-\n19,50\n19.50\nLov Phos Punchings\nI Plate Scrap*\n-\n-\n-\n-\n-\n17.50\n17.50\nMachinery Cant,\nCupola Size*\n22.00 23.00\n23.00\n23.00\n-\n19.00\n19.00\nNo. Mach, Cast, drop-\nbroken, 150 lbs. & under\n22.50\n23.50\n25.50\n23.50\n-\n19.50\n19,50\nClean Auto Cast\n22.50\n23.50\n23,50\n23.50\n-\n19.50\n19.50\nPunchings & Plate\nScrap\nI\n-\n-\n-\n-\n16.50\n16.50\nPunchings & Plate\nScrap****\n-\n-\n-\n-\n-\n15.50\n15.50\nHeavy Axle & Forge Turnings\n-\n-\n-\n-\n-\n14.00\n14.00\nMedium Heavy Electric\nFurnace Turnings\n-\n-\n-\n-\n-\n12.50 12.50\nPoaradod Inclassified\n74\n12\nPM 887\nBASING POINTS\nPortland,\nOre.\nCeattle,\nWash.\nMinnequa,\nColo,\nToledo,\nOhio\nAlabama City,\nAla,\nAtlanta,\nGa.\nGRADES\nNo. 1 Heavy Melting Steel\n14.50\n14.50\n16.50\n17.00\n17.00\nNo. 1 Hydraulic Compressed\nBlack Sheet Scrap\n14.50\n14.50\n16.50\n-\n17.00\n17.00\nNo. 2 Eeavy Melting Steel\n13.50\n13.50\n15.50\n-\n16.00\n16.00\nDealers' No. 1 Bundles\n13.50\n13.50\n15.50\n-\n16.00\n16,00\nDealers' No. 2 Bundles\n12.50\n12,50\n14,50\n-\n15.00\n15.00\nMixed Borings and Turnings\n9,75\n9.75\n11.75\n13.10\n12.25\n-\nMachine Shop Turnings\n10.00\n10.00\n12.00\n13.35\n15.00\n-\nShovelling Turnings\n11.0\n11.00\n13.00\n14,35\n16,00\n-\nNo. 1 Busheling\n14.00\n14.00\n16.00\n-\n16.50\n-\nNo. 2 Busheling\n10.00\n10.00\n12,00\n-\n12.50\n-\nCest Iron Borings\n10.25\n10.25\n12,25\n13.60\n12.75\n-\nUncut Structural &\nPlate Scrap\n13.50\n13.50\n15.50\n-\n16.00\n-\nNo. 1 Cunola\n18.00\n18.00\nI\n-\n-\n-\nHeavy Breakable Cast\n17.00\n17.00\n-\n-\n-\n-\nStove Plate\n14.00\n14.00\n-\n15.60\n-\n-\nLow Phos Billet &\nBloom Crops\n19.50\n19.50\n-\n-\n-\n-\nLow Phos Bar Crops\n& Smaller\n19.50\n19.50\n-\n-\n-\nLow Phos Punchings\n& Plate Scrap'\n17.50\n17.50\n-\n-\n1\nMachinery Cast,\nCupola Size\n19.00\n19,00\n-\n-\nI\nNo. Mach. Cast, drop-\nbroken, 150 lbs. & under\n19.50\n19.50\n-\n-\n-\nClean Auto Cast\n19.50\n19.50\n-\n-\n-\nPunchings & Plate Scrap**\n16.50\n16.50\n-\n-\n-\nPunchings & Plate Serup\n15.50\n15.50\n-\n-\n-\nHeavy Axle & Forge Turnings\n14.00\n14.00\n-\n-\n-\n-\nMedium Heavy Electric\nFurnace Turnings\n12,50\n12,50\n-\n-\n-\n-\nRegraded Unclassified\nPM 887\n75\nThis grade is 3/8-inch and heavier, out 13 inches and under,\nThis grede also ray include clean mariculturel cest.\nThis grade 1s under 3/8-inch to 1/4-inch, out 12 inches and under.\nThis grade is under 1/4-inch to No, 12 gage, cut 12 inches and under.\nÀ Basing Point includes its switching district,\nThe grade specified are, except Dealars' No. 1 and No. 2 Bundles and Uncut\nStructural and Plate Scrap, as nared and defined in the simplified practice recom-\nsea atione R-58-36 of the Department of Commerce which shall be the governing\nspecifications for iron and steel scrap hereunder. Dealers' No. 1 Bundles shall\nconsist of new, clean black sheet scrap, hydraulically compressed in a dealer's\nyard. Dealers' No. 2 Bundles shall consist of old fender and body scrap, and shall\nin no case command a premium.\nC These grades represent the major classifications of iron and steel scrap, The\nmaximum prices of superior or inferior grades shall continue to bear the same com-\nparable relationship to those major grade classifications as heretoforo existed bri-\nbetween the prices of anch suporior or inforior grades and the prices of the major\ndi grades. The St. Louis Basing Point includes the switching districts of Granite City,\nEast St, Louis, and Madison, Illinois.\nII.\nMAXIMUM PRICE AT SHIPPING POINT\nA Shipping Point is the point from which the scrap 1a to be shipped to\na consumer,\nThe maximum price at which a grode of scrap may be sold f.o.b. its\npoint of shipment is the Shipping Point Price of such BcTap,\nA Shipping Point Price in computed 0.5 follows:\n(a) For Shipping Points located within a Basing Point.\nThe price established above for the Sasing Point in which the Shipping Point ie\nIncated, is determined, There are then deducted from this price the actual coste\ninvolved in transporting scrap from the Shipping Point to the consumer's plant\nwithin the Basing Point which is nearest, in terms of transportation costs, to the\nShipping Point.\n(b) For Shipping Points located outside a Basing Point.\nThe price established above for the Basing Point nearest, in terms of transporta-\ntion charges, to the Shipping Point is determined, There is then deducted from\nthis price the lowest estoblished charge for transporting scrap from the Shipping\nPaint to such Basing Point. The figure thus obtained is the Shipping Point Price,\nwith the following exceptions:\n1. The Shipping Point Price at any Shipping Point in New England, of those grades\nof scrap for which no prices are listed at the Basing Points established for New\nEngland in Paragraph I, hereof, shall be the Johnstown Basing Point Price an set\nforth in Paragraph I, hereof, minus the all-rail transportation costs from the\nNew England Shipping Point to Johnstown. However, the Shipping Point Price at any\nRegraded Unclassified\n- 14 -\nPM 887\n76\nShipping Point in New England of those grades of scrap for which prices are listed\nat the Basing Points in New England established in Paragraph I, hereof, shall be\ncomputed from those New England Basing Point Prices.\n2. Shipping Point Prices for any Shipping Point in New York City, Brooklyn, New\nYork, and New Jersey, which, by reason of barge rates, are nearest in terms of\ntransportation charges to the Buffalo Basing Point, shall not be computed from the\nBuffalo Basing Point, but shall be computed from the Bethlehem, Pennsylvania,\nBasing Point.\nIII.\nMAXIMUM PRICES DELIVERED TO A CONSUMER WHEREVER LOCATED\nThe maximum price at which any grade of scrap may be delivered to the\nplant of a consumer wherever located is the Shipping Point Price as determined in\nParagraph II above, plus actual transportation charges from the Shipping Point to\nthe consumer's plant, Where shipment is by water, actual handling charges at the\ndock of not more than 75 cents per gross ton may be included as a part of transpor-\ntation charges, but must be shown B.G. separate charges on all invoices. In no case,\nhowever, shall this meximum price excesed by more than one dollar the prices net\nforth in Paragraph I above, for the Basing Point nearest, in terms of established\ntransportation charges, to the consumer's plant.\nIV.\nBILLET AND BLOOM CROPS ORIGINATING IN PITTSBURGH, PA.\nWhere the grade of scrap classified 8.8 billet and bloom crops originates\nin the Pittsburgh Basing Point, it may be sold delivered to a consumer, located\nwithin or without the Pittsburgh Basing Point, at the vrice astabliched in Para-\ngraph I, hereof, for Pittsburch, Pa, plus not more than $3.50 in transportation\ncharges from the point of origin to the consumer's plant. In no case shall the\nconsumer pay a sum in excess of the price established under Paragraph I, hereof,\nfor the Pittsburgh Basing Point plus the lowest established charge for transporting\nthe scrap from the point of origin to the consumer's plant.\nV.\nUNPREPARED SCRAP\nThe maximum prices established hereinabove are maximum prices for pre-\npared scrap.\nFor unprepared scrap, irrespective of source, raximum prices shall be\n$2.50 less then the maximum prices for the corresponding grade or grades of pre-\npared acrap.\nRegraded Unclassified\n77\n- 15 -\nPM 88?\nVI.\nREMOTE SCRAP\nScrap located beyond the zone from which the railroad freight rate to\nFittsburgh is $11.20, shall be considered remote scrap. The Shipping Point Price\nof such scrap shall be determined as in Paragraph II hereinabove. In order to\nfacilitate the flow of remote scrap, consumers who can establish & need for such\nscrap but who, because of the transportation charges involved, cannot deliver such\nscrap to their plants under the ceiling delivered prices established in Paragraph\nIII, (11), above, may apply to the Office of Price Administration and Civilian\nSupply, Washington, D. C., for permission to absorb the additional transportation\ncharges necessary to secure such scrap. Application by consumers must be fully\ndetailed, including an affidavit setting forth the point of shipment of the scrap,\nthe grade, quantity, price and shipping point, proposed delivery prices, the\ntransportation charges from the shipping point to the nearest Basing Point, and\nthe transportation charges from the shipping point to the consumer's plant. The\napplication should be accompanied by an affidavit from the consumer establishing\nits need for remote scrap and stating its willingness to accept such scrap at the\nprice quoted.\nOnly applications for purchases which would involve actual delivery of\n500 tons of scrap per month from one Shipping Point to one consumer destination will\nbe considered.\nThe approval of the Office of Price Administration and Civilian Supply\nshall be obtained before consumers may absorb the additional transportation charges\nnecessary to secure remote scrap.\n78\n-16-\n1304.17\nAPPENDIX B\nPM 887\nMAXIMUM PRICES FOR IRON AND STEEL SCRAP ORIGINATING FROM RAILROADS\nAll the maximum prices given below are per gross ton\nI.\nSCRAP ORIGINATING FROM RAILROADS OPERATING IN A BASING POINT\nNAMED BELOW\nA. Delivered to a Consumer's Plant Located on the Line of the Railroad\nFrom Which the Scrap Originated.\n1, LISTED GRADES\nGRADES\nNo. 1 Railroad Grade\nHeavy Melting Steel\nScrap Rails\nRails for\nRerolling*\nScrap Rails Three\nFeet and Under\nScrap Rails Two\nFeet and Under\nScrap Fails Eighteen\nInches and Unler\nBASING POINTS\nPittsburgh, Pa.\n21.00\n22.00\n23.50\n24,00\n24.25\n24.50\nWheeling, W. Va,\n21.00\n22.00\n23.50\n24.00\n24.25\n24.50\nSteubenville, Ohio\n21.00\n22.00\n23.50\n24.00\n24.25\n24.50\nYoungstown, Ohio\n21.00\n22.00\n23.50\n24.00\n24.25\n24.50\nSharon, Pa,\n21.00\n22.00\n23,50\n24,00\n24.25\n24,50\nCanton, Ohio\n21.00\n22.00\n23.50\n24,00\n24.35\n24.50\nChicago, :11.\n19.75\n20.75\n23.25\n22,75\n23.00\n23,25\nKokomo, Ind,\n19.25\n20.25\n21.75\n22.25\n22.50\n22.75\nPhiladelphia, Pa.\n19.75\n20.75\n22.25\n22.75\n23.00\n23,25\nWilmington, Del,\n19.75\n20.75\n22.25\n22,75\n23.00\n23.25\nSparrows Point, Md.\n15.75\n20.75\n22.25\n22.75\n23.00\n23.25\nCloveland, Ohio\n20.50\n21.50\n23.00\n23.50\n23.75\n24.00\nBuffalo, N. Y,\n20.25\n21.25\n22.75\n23.25\n23.50\n23.75\nPortsmouth, Ohio\n20.50\n21,50\n23.00\n23.50\n22.75\n24.00\nKiddletown, Ohio\n20.50\n21.50\n23.00\n23.50\n23.75\n24.00\nAshland, Ky,\n20.50\n21.50\n23.00\n23.50\n23.75\n24.00\nSt, Louis, Mo.\n18.50 19,50 21.00 21.50 21.75 22,00\nKansas City, No.\n17.00\n18,00\n19.50\n20,00\n20.25\n20.50\nDetroit, Mich,\n18,95\n19.85\n21.35\n21.85\n22,10\n22.35\nDuluth, Minn.\n19,00\n20,00\n21.50\n22.00\n22.25\n22.50\nBirminghan, No.\n18.00\n19.00\n20.50\n21.00\n21.25\n21.50\nLos Angeles, Calif.\n15,50\n16,50\n18.00\n18.50\n18.75\n19.00\nSan Francisco, Calif.\n15,50\n16.50\n18.00\n18.50\n18.75\n19.00\nSeattle, Wash.\n18,50\n16.50\n18.00\n18.50\n18.75\n19.00\n-\nRe-laying quality $5.00 higher.\nRegraded Unclassified\n- 1?\nPM 687\n79\nWhere the reilroad originator of the scrap operates in two or more of the\nBasing Points named above, the highest of the maximum prices watablished\nabove for such Basing Points shall be the maximum price of the scrap delivered\nto a consumer's plant at any point on the railroed's line, except that switch-\ning charges of 84 cents per gross ton shall be subtracted from the maxterum\nprices of scrap originating from railroado operating in Chicago, 111, and sold\nfor consumption outside Chicago, Ill. This exception is applicable to maximum\nprices of grades not listed as determined below\n2. ORADES NOT LISTED\n(a) The price at which & consumer located on the line of the railroad from which\nthe scrap originated may purchase any grade of scrap not listed above shall\nnot exceed the average price per gross ton at which such railroad sold such\ngrade delivered to the plant of B. consumer, whether located on or off the line\nof the railroad, during the period commencing September 1, 1940, and ending\nJanuary 31, 1941, or, in cade no sale was made during the period, the price at\nwhich the grade was last sold by the railroad prior thereto, and, in either\nevent, adjusted to allow for the average trade differentials of the railroad\nin a manner indicated in Sub-paragraph (b) below.\nb) For purposes of Subparagraph (a) above, the maximum prices for any grade not\nlisted in Paragraph A, 1, above shall be adjusted to allow for the average\ngrade differentials of the railroad by:\nFirst, computing the amount of the base grade differential for the rail-\nroad which shall be the difference between the average price per gross\nton at which the railFoad from which the scrap originated sold No. 1\nBailroad Grade Heavy Melting Steel Scrap delivered to the plant of the\nconsumer, whether located on or off the line of the railroad, during the\nperiod commencing September 1, 1940, and ending January 31, 1941, and\nthe railroad's maximum price established for such grade under Paragraph\n4. 1., above; and\nSecond, by applying this base grade differential to the price to be\nadjusted by either (1) subtracting the amount of such differential from\nsuch prices in case the railroad's average price of No. 1 Railroad Grade\nHeavy Melting Steel Serap exceeds the railroad's maximum price estab-\nlished for such grade under Paragraph A., 1., above, or (ii) adding the\nsame in case the railroad's average price is less than such maximum.\nB. Delivered to a Consumer's Plant Located Off the Line of the Railroad from\nWhich the Scrap Originated.\nThe maximum price is either of the following. whichever 10 greater:\n(1) The maximum price established in Paragraph A above, for scrap delivered\nto 1. consumer on the line of the railroad from which the scrap origi-\nnated, or, if the consumer can establish that be has been served by the\nName source of scrap in the past. this maximum price plus transportation\ncharges, (including off-the-line switching charges), from the railroad's\nline to the consumer's plant. of not more than two dollars per gross\nton for Raile for Rerolling, Scrap Axles and other scrap for rerolling.\nand of not more than one dollar per gross ton for all other grades of\nscrap: or\n(2) The prices set forth in Paragraph A, 1., above. for the Basing Point\nnearest the consumer's plant.\nRegraded Unclassified\n80\n- 18 M\nPM 867\nII,\nSCRAP ORIGINATING FROM RAILROADS NOT OPERATING IN ANY OF THE BASING POINTS\nNAMED ABOVE.\nThe maximum price of any grade of such scrap deliv red to consumers located\non and off the line of the railroad shall not exceed:\n(1) For the grades listed above, either of the following, whichever is less:\n(a) The average price per gross ton at which the railroad originator of the\nscrap sold any such grade to consumers located on and off the line of\nthe railroad during the period commencing Sept. 1, 1940 and ending\nJan. 31, 1941; or\n(b) The price at the Basing Point nearest, in terms of transportation costs,\nto the consumer's plant; and\n(2) For the grades not listed above, either of the following, whichever 10\nless:\n(a) The average price per gross ton at which the railroad originator of\nthe scrap sold any such grade to consumers located on and off the line\nof the railroad during the period commenci - 6 Sept. 1, 1940 and ending\nJan. 31, 1941; or\n(b) The average price per gross ton as determined in subparagraph (a) here-\nof, minus the amount by which the average price of No. 1 Railroad Grade\nHeavy Melting Steel scrap, as determined in (a), exceeds the price of\nNo. 1 Railroad Grade Heavy Melting Steel scrap at the Basing Point\nnearest, in terms of transportation costs, to the consumer's plant.\nIII\nSCRAP WHICH CANNOT BE IDENTIFIED AS TO CRIGIN\nThe maximum price per gross ton at which a. consumer may purchase, delivered at\nhis plant, any grade of railroad scrap which cannot be identified as to origin,\nshall not exceed the maximum price established under Appendix A of this Schedule\nfor the grade in which such scrap may be classified.\nIV\nGENERAL PROVISIONS\n& Unprepared Scrap,\"\n+\nThe maximum prices established hereinabove are maximum prices for prepared\nscrap.\n(1) Identifiable AS to Grade. The maximum prices for unprepared scrap\nidentifiable A8 to grade shall be $2.50 less than the maximum prices\nfor the corresponding grade or grades of prepared scrap.\n(2) Unidentifiable as to Grade. Unprepared scrap which cannot be identi-\nfied as to grade (for example, a box car, a locomotive, or the like)\nis not subject to the maximu: prices established herein until such\nscrap has been prepared for consumption.\nRegraded Unclassified\n81\nPM 887\n- 19 -\nScrap Prepared by a Person Other Than B Railroad\nWhere scrap originates from & railroad but is broken down and prepared by a\nperson other than the railroad and the railread origin of such scrap is known,\nthe maximum price at which & consumer may purchase such scrap shall be the\nprice established above for purchases of scrap prepared by the railroad.\n82\n20\nPM 887\n1304.18 Appendix 0\nMAXIMUM PRICES FOR IRON AND STERL SCRAP FOR\nEXPORT FROM THE UNITED STATES\nPer Gross Ton, F.A.E. and F.O.B. Point of Export\n1, Other Than Railroad Scran\nThe maximum export price of any grade of iron and steel\nscrap other than railroad scrap shall be the marimum Shipping Point\nPrice dorived under Paragraph II of Appendix À, plus the notual\ncharge for transporting the scrap from the Shipping Point to the\nplace of export. For scrap erported by ship this maximum export\nprice shall be F.A.S. the place of export and actual costs incident\nto shipment for exnort may be added if shown as B separate charge\non the invoice. For scran orported by means other than by ship,\nthis maximum export price shall be F.C.B. the place of export.\nCommission of the donestic broker may be ndded 28 provided in\nSection 1304.6 of this Schedule and must be shown S.D. a separate\ncharge on the invoice.\n2. Scrap Originating From Railroads\nThe narimum export price of any grade of iron and steel\nscran of railroad origin shall be the maximum price established and\ndetermined under Angenéix B for a consuner Incated on the line of\nthe railroad originator of the scrap plus actual transportation\ncharges from the line to the place of export. For scrap originat-\ning from a railroad not operating at & Basing Point, no transports-\ntion charges shall be added to the maximum prices of such scran 83\ndetermined under Appendix B. For scrap exported by ship these\nzaximum erport prices shall be F.A.S. the place of export and\nactual costs incident to shipment for export may be added if\nshown as a separate charge on the invoice. For scrop emported\nby means other than by ship, this maximum emort price shall be\nF.O.B. the place of export. Commission of the domestic broker\nmay be added as provided in Section 1304.6 of this Schedule and\nmust be shown 85 a separate charge on the invoice.\nRegraded Unclassified\nForm 104:6\n21\nPM 867\n83\nRevised\nOFFICE FOR EMERGENCY MANAGEMENT\nOFFICE OF PRICE ADMINISTRATION AND CIVILIAN SUPPLY\nWASHINGTON, D. C.\n1304.19, APPENDIX D - REPORT OF PURCHASES, CONSUMPTION AND\nINVENTORY OF IRON AND STEFL SCRAP\nFor the month of\n1941.\nThis form, which you are requested to fill in, is made up of\nquestions which will elicit the information required by Section 1304.10 of\nthe Iron and Steel Scran Price Schedule. That section requires every con-\nsumer to keep the Office of Price Administration and Civilian Supply ad-\nvised of its scran purchases and receipts for the month, including scrap\nwhich is 8 by -product of its own operations, its disposition of scrap for\nthe month, whether by melt, sale, exchange, or otherwise, and its inventory\nof scrap on hand as of the first and last day of each month. This informa-\ntion is necessary to the protection of nn even flow of scrap to all consumers.\nGross Tona\n1. Total Scrap on hand first day of month\n(purchased, home origin, exchange, etc.)\n3. Total Scrap receipts during the month from\nall sources (purchased, home origin,\nexchange, etc.)\n3,\nSum of items 1 and a\n4, Total scrap melted during the month\n5. Total scrap rerolled during the month\n6. Total scrap inventory last day of the month\n(See note)\n7. Total ingot or other production during the\nmonth (include production from scrap\nand all other sources)\nB. Type of operation constituting the major part\nof your business\n(Check one): Foundry Smelter Steel Mill\n9, Report orders placed during the month for the purchase\nor exchange of scrap on the reverse eide of this form.\nNote: If item 3 minus items 4 and 5 does not equal item\n6, explain the discrepancy (e.g. sales of scrap\nduring the month, etc.)\n(Name of Company)\n(Officer making report)\n(Street Address)\n(Title)\n(Post Office)\n(Date)\nRegraded Unclassified\n84\n22\nPM 887\n(Reverse side of Form 104:8, Revised)\n9. Orders placed during\nfor the purchase or exchange of scrap.\n(month)\nGrade\nQuantity\nPurchase Price\nOrigin\nPerson or firm\n(Report each grade\nordered\n(Net per gross\n(Check one)\nfrom whom\nseparately)\n(Gross tons)\nton)\nR.R. Other\npurchased\nRegraded Unclassified\n85\nOFFICE FOR EMERGENCY MANAGEMENT\nOffice of Price Administration And Civilian Supply\nFor PM Release\nAugust 8, 1941\nPM 892\nA request that State vehicular authorities throughout the country\nrequire motorists to surrender their 1941 license plates upon receipt\nof new 1942 tars was made today by the Office of Price Administration\nand Civilian Supply in announcing a program providing for preferential\nallocation of the minimm tonnage of sheet steel required to produce\nthe 1942 license plates\nThe program is issued, according to OPACS, only because time is\ntoo short to enable the States to find substitutes for steel for 11-\ncense tags and since many States already have procured their steel\nrequirements.\nConservation of steel for civilian use !s likely to become even\nmore essential in 1942 if the emergency continues and the States are\nwarned that in all probability no sheet steel will be made available\nfor the manufacture of 1943 license tags.\nAttention was called to Connecticut's five-year type of\nautomobile license plate, with provision for annual change in date, as\none method of conserving steel.\nBy requiring the surrender of old license olates, the States will\nadd a sizeable tonnage of scrap to the national supplies.\nThe limited allocation program will be administered by the Office\nof Production Management.\nText of program is attached.\nRegraded Unclassified\n86\nTITLE 32 - NATIONAL DEFENSE\nPM 892\nCHAPTER XI - OFFICE 07 PRICE ADMINISTRATION\nAND CIVILIAN SUPPLY\nPart 1306 - Iron and Steel Products\nCivilian Allocation Program for Steel Used\nin Automobile License Tags\nBecause of the difficulty which some of the states have experienced in\nsecuring ateel to be used in the making of automobile license tags for the\nlicense year 1942, it is necessary that an allocation program be formulated.\nAccordingly, pursuant to and under the authority vested in me by Execu-\ntive Order No. 8734, particularly Section 2(a) thereof, the following program\nis announced:\n1306.71 Allocation of Materials. Adequate supplies of steel for the\nmanufacture of automobile license tage for the license year 1942 shall be\nallocated to the state or other manufacturer of such tags.\n1305.71 to 1306.73, inclusive, 18-\nsued pursuant to the authority con-\ntained in Executive Order No. 6734.\n1306.72 Restriction in Amount. The allocation provided for by 1306.71\nshall be effective only for the procuring of the absolute minimum quantities\nof steel necessary for the manufacturing of automobile license tags for the\nlicense year 1942.*\n1306.73 Enforcement. The foregoing program is to be administered and\nenforced by the Office of Production Nonagement.\nIssued this 7th day of August, 1941.\nLeon Henderson\nAdministrator\nCertified to be a true copy\nof the original.\nJohn E. Harm\nDeputy Administrator\nRegraded Unclassified\nOFFICE FOR EMERGENCY MANAGEMENT\n87\nOffice of Price Administration and Civilian Supply\nFor ДМ release\nPM 904\nAmount 9, 1941\nWanlesclers, jobbers and retailers are given restricted exemption from the\nceiling prices heretofore established for six leading types of cotton grey goods\nin nn amendment announced today by the Office of Prico Administration and Civilian\nSupply.\nThe change enables wholesalers, jobbers and retailers to sell at higher than\nceiling prices groy goods used in an unfinished state by industry for B. variety\nof purposes and by private consumers for mislin sheeting, tobacco culture, etc.\nSpecifically prohibited by the anondment, however, are all males of grey goods\nat higher than the maximum prices, even for industrial or private use, by producers\nor their agents. Salos of grey goods by wholesalers, jobbers and retailers to any\nconverter or finisher similarly must conform to the ceiling prices,\nA statement directed to the trade in connection with toe amendment seys OPACS\nhas been assured by a number of wholesalers and jobbers that their selling margins\non sales of grey goods to users of such unfinished cloth, an permitted by the amend-\nment, would be limited to amounts commensurate with the service rendered by them\nand that there would be no tendency to exact excessive prices.\n\"In the event that margins charged by middlemen become excessive,\" the OPACS\nstatement concludes, \"we will be compelled to take aupropriate remedial measures.\"\nText of the statement and of the emendment to the price schedule follows:\nOFFICE OF PRICE ADMINISTRATION AND CIVILIAN SUPPLY\nStatement to Wholesalere, Jobbers and Retailers of Cotton Grey Goods\nWe are today issuing on amendment to Price Schedule No. 11. This emendment\nexempts from the ceiling prices the normal grey goods sales transactions of whole-\nmalers, jobbers, and retailers. You will note, however, that sales end deliveries\nby such concerns are not exempted unless made in the performance of a recognized\ndistributive function, and that under no circumstances may grey goods be sold or\ndelivered to B corverter or finisher at any price in excess of the ceiling. Also\nthis exemption does not apply. of course, to sales or deliveries made by the manu-\nfacturer of the grey goods or the manufacturer's agent.\nde have been assured by a number of wholesslers and jobbers that we could ex-\npect their selling margin to be limited to an amount commensurate with the services\nrendered by them and that there would be no tendency, as a result of this amendment,\nto exact excessive prices. We trust that we will have your cooperation in this re-\ngard, In the event that margins charged by middlemen become excessive we will be\ncompelled to take appropriate remedial measures to limit these margins.\nRegraded Unclassified\n88\nPM 904\nTITLE 32 - NATIONAL DEFENSE\nCHAPTER XI - OFFICE OF PRICE ADMINISTRATION\nAND CIVILIAN SUPPLY\nPart 1316 - Cotton Textiles\nAmendment to Price Schedule No. 11 --\nCotton Grey Goods\nSection 1316.2 is hereby amended by inserting after\nsubsection (a) (2) thereof the following subsection:\n(3) The prices established herein are not an-\nplicable to sales or deliveries of Cotton\nGrey Goode made by any wholesaler, jobber\nor retailer in the performance of n. recog-\nnized distributive function, provided,\nhowever, that sales and deliveries of Cot-\nton Grey Goods (i) by the manufacturer\nthereof or by any agent of such manufacturer,\nor (11) to a converter or finisher, shall in\nno case be made at any price in excess of\nthe maxima established in Section 1316.7.\nIssued this 8th day of August, 1941.\n/s/ Leon Henderson\nLeon Henderson\nAdministrator\nCertified to be A true\ncopy of the original\n/n/ John 3.\nJohn E. Hamm, Deputy Administrator\nRegraded Unclassified\n89\nOFFICE FOR EMERGENCY MANAGEMENT\nPM 912\nOffice of Price Administration and Civilian Supply\nRelease AM Tuesday\nAugust 12, 1941\nA ceiling price of 12 cents G. pound for copper 1s established by Price Sch-\nedule Do. 15, ennounced today by the Office of Price Administration and Civilian\nSupply.\nAs stated previously, the schedule has as its objective the equalization of\ncopper prices to all consumers. This in considered essential in view of the gon-\noral preference order of the Office of Production Management, effective es of\nAugust 6, 1941.\nBecause the 12-cent coiling might act to jeopardize B. small part of current\noutput of dompotic copper costingmore than 12 cents to produce, Leon Henderson,\nOPACS Administrator, in recommending that the Metals Reserve Company, an agency\nof the Reconstruction Finance Corporation, purchase such high-cost copper at\nprices in excess of 12 cents A pound. For this resson, the schedule exempts sales\nto the Metals Reserve Company from conformance with the ceiling price.\nThe plan recommended by Mr. Henderson is designed to aintain the current\noutput of high-cost companies now operating. CPAOS and OFM experts, as hereto-\nfore announced, aro speeding plans to increase the domestic production of copper.\nThe ceiling price of 12 cents a pound established in the present schedule\napplica to copper of electrolytic grade in the shape of wire bars or ingot bars\ndelivered in cerload lots at Connecticut Valley points. A top price of 11-3/4\ncents B. pound is set for casting copper made by fire refining to a standard of\n99.5% pure, including silver ao copper.\nA carload lot is defined in the schedule as the minimum amount required to\ncommand railroad carload rates from the point of shipment to the destination\npoint. Premiums, ranging from 3/4-cent to 2 conta B pound are allowed for less-\nthan-carload lots sold by others than refiners or producers.\nRegraded Unclassified\n90\n-2-\nPM 912\nPrevailing premiums or discounts for other kinds, shapes, grades or forms\nof copper and differentials for deliveries to other than Connecticut Valley\npoints shall be added to or subtracted from the Connecticut Valley base price.\nThe schedule provides that on and after August 12, 1941, regardless of any\nprior contract or commitment, no sales of copper (except to Metale Reserve Co.)\nshall be completed at more than the ceiling price. However, a person who bought\ncopper in carload lots between July 1 and August 12, 1941, for resale in less-\nthan-carload lots at prices not more than cent e. pound above the ceiling price\nmay be permitted by OPACS, upon application, to complete such sales at prices not\nmore than cent a pound over the maximum 1-c-1 prices established by the schedule\nPermission also may be sought from OPACS to carry 01.0 contracts entered\ninto prior to August 12, 1941, and calling for delivery after that date of\ncopper at prices higher than the maximum prices.\nIn such cases, however, permission will be gre ted only (a) where a firm\ncommitment is involved at a price not more than -ornt over the maximum prices\nand where such commitment is carried out prior to December 31, 1941; or (b) if\nnecessary to protect a dealer against loss where the contract or commitment was\nentered into prior to August 12, 1941, and where the copper, or purchase con-\ntract for copper to fulfill such a contract, was acquired prior to April 25, 1941.\nA price schedule for copper scrap is about to be issued.\nText of the copper price schedule is attached.\nRegraded Unclassified\nS!\n2½ 912\nTITLE 32 - NATIONAL DEFENSE\nCHAPTER XI - OFFICE OF PRICE ADMINISTRATION AND CIVILIAN SUPPLY\nPart 1309 - Copper ená Copper Alloys\nPrice Schedule No. 16 - Copper\nThe Office of Price Administration and Civilian Supply\nis charged with the maintenence of price stability and the preven-\ntion of undue price rises and price dislocation. Copper is A\nbasic material for the production of many defense products and as\nsuch has been subjected to a method of complete control of its\ndistribution by a General Preference Order of the Office of Produc-\ntion Management, No. M-9-a, effective August 6, 1941. In order to\nequalize the price to all consumers under that preference order and\nin the interest of national defense and of the public, the establish-\nment of maximum prices for copper in necessary. On the basis of\ninformation secured by independent investigation by this Office and\nupon information furnished by the Trade, I find that the maximum\nprices set forth below constitute reasonable limitations on the\nprice of copper,\nTherefore, under the nuthority vested in me by Execu-\ntive Order 8734, it is hereby directed that:\n1309,51 Maximum Prices for Copper\n(a) On and after August 12, 1941, regardless of\nthe terms of any contract of sale or purchase or other commitment,\nexcept as provided in section 1309.53 hereof, no person shall\nsell, offer to sell, deliver or transfer copper to any person\nother than the Metals Reserve Company and no purchaser other than\nthe Metals Reserve Company shall buy, offer to buy, or accept\ndelivery of copper at prices higher than the maximum prices set\nRegraded Unclassified\n-a.\nPM 912\n92\nforth in Appendix A, incorporated herein as Section 1309.60\nprovided however that any person, who, between July 1, 1941 and\nAugust 12, 1941, has bought copper in carload lots (for resale in less\nthan carload lots) at prices not more than 1/24 per pound in ex-\ncess of the maximum prices established by this Schedule, may be\npermitted to sell and deliver such copper at prices not more than\n1/24 per pound in excess of the maximum prices for loss than\ncarload lots established by this Schedule upon application to\nthe Office of Price Administration and Civilian Supply for ox-\nception to this Schedule.\n(b) Except as otherwise provided in section\n1309.60, the prices established by thie schedule are delivered\nprices at the buyer's place of misiness and are gross prices\nbefore the deduction of any discounts and include all\ncommission.\n*1309.51 to 1309.60, inclusive issued pursuant\nto the authority contained in Executive\nOrder No. 8734\n1309.52 Evasion\nThe price limitations set forth in this Schedule shall\nnot be evaded whether by direct or indirect methods in connection\nwith B. purchase, sale, delivery, or transfer at A price of\ncopper, alono or in conjunction with any other material, or by\nway of any commission, service, transportation, or other charge\nor discount, premium, or other priviloge, or by tying agreement\nor other trade understanding or otherwiso.'\n1309.53 Permission to Carry Out Contracts Entored into\nPrior to August 12, 1941\nAny person who has, prior to August 12, 1941, entered\ninto a contract of sale or other firm commitment calling for\nRegraded Unclassified\n-3-\nPM 912\n93\ndelivery or transfer, after that date, of copper at prices higher than the\nmaximum prices established by this Schedule may make application upon forms\navailable upon request, to the Office of Price Administration and Civilian\nSupply for permission to carry out such contract or commitment at the\ncontract price. Such permission will be granted only: (a) where the\napplicant has entered into a firm commitment with n purchaser prior to\nAugust 12, 1941 at B. price not more than 1/24 per pound in excess of the\nmaximum prices established by this Schedule, and where such firm commitment\nis actually carried out prior to December 31, 1941; or (b) where the appli-\ncant is a dealer and the permission is necessary to protect the applicant\nagainst loss and where the contract or firm commitment VS8 entered into\nprior to August 12, 1941, and the copper, or the purchase contract for the\ncopper, to fulfill such contract or firm commitment was acquired prior to\nApril 25, 1941.*\n1309.54 Records\nEvery person making purchases or sales of copper after August\n12, 1941 shall koep for inspection by the Office of Price Administration\nand Civilian Supply for a period of not less than five years complete\nand accurate records of: (a) each such purchase or sale, showing the\ndate thereof, the name and address of the buyer or the seller, the price\npaid or received, and the quantity in pounds or tone of each kind or\ngrade purchased or sold; and (b) the quantity, in pounds or tons, of\ncopper (i) on hand, and (11) on order, as of the close of each calendar\nmonth.*\n1309.55 Enforcement\nIn the event of refusal or failure to comply with the\nprice limitations, record requirements, or other provisions con-\ntained in this Schedule, or in the event of any evasion or attempt to\nevade the price regulations or other provisions contained in this\nSchedule, this Office will make every attempt to assure: (a) That\nPM 912\n94\nthe Congress and the public are fully informed of any failure to\nabide by the provisions of this Schedule, and (b) that the powers\nof the Government are fully exerted in order to protect the public\ninterest and the interests of those persons who conform with this\nSchedule in the maintenance of the maximum prices herein set forth.\nPersons who have evidence of the demand or receipt of prices above\nthe limitation set forth or of any evasion of or attempt to evade\nsuch requirements or of speculation or manipulation of the price\nof copper or of the hoarding or accumulation of unnecessary in-\nventory thereof, are urged to communicate with the Office of Price\nAdministration and Civilian Supply.\"\n1309.56 Supplements to the Schedule\nIn order to insure compliance with this Schedule,\nsupplements further defining its scope, and, if necessary, requiring\nreports to the Government will be issued from time to time when\nfound appropriate.*\n1309.57 Modification of the Price Schedule\nPersons complaining of hardship or inequity in the\noperation of this Schedule may apply to the Office of Price Administra-\ntion and Civilian Supply for approval of any modification thereof or\nexception therefrom.\n1309.58 Definitions\nWhen used in this Schedule, the term\n(a) \"Person\" includes an individual, corporation,\nassociation, partnership, or other business entity.\n(b) \"Copper\" includes all copper metal refined\nby any process of electrolysis or fire refining to B. grade and\nin a form suitable for fabrication, and shall include all such\nmetal produced from domestic or imported ores, concentrates, or\nRegraded Unclassified\n95\n-5-\nPM 912\nother copper bearing material, or scrap.\n(c) \"Carload lot\" means the minimum quantity of\ncopper required to obtain railroad carload rates from the point\nof shipment to the point of destination.\n(d) \"Dealer\" means a person who receives physical\ndelivery of copper and sells or holds the same for resale\nwithout change in form.*\n1309.59 Effective Date of the Schedule\nThis Schedule shall become effective on August 12,\n1941.'\n1309.60 Appendix A - Maximum Prices\n(a) Maximum Connecticut Valley Base Prices\nGrade\nPrice Per Lb.\nElectrolytic, Lake or other fire\nrefined copper made to meet the\nAmerican Society of Testing\nMaterials Standard, B5-27, for\nelectrolytic copper\n124\nCasting copper made by fire re-\nfining to a standard of 99.5% pure\nincluding silver as copper\n11-3/44\nThe maximum prices fixed above are for copper in the\nshape of wire bars or ingot bars delivered in carload lots at\nConnecticut Valley points.\n(b) Differentials for other kinds, grades, shapes\nor forms.\nFor copper of any other kind, grade, shape\nor form there shall be added to or subtracted from the Connecticut\nValley base price the customary premiums or discounts for such kind, grade\nshape or form which the seller would have added to or subtracted\nfrom the Connecticut Valley base price on August 11, 1941.\n(c) Differentials for deliveries at points other\n-6-\n96\nPM 912\nthan Connecticut Valley Points.\nFor deliveries at any point other than B. Connecticut\nValley point there shall be added to or subtracted from the Connecticut\nValley base price the customary differential which the seller would, on\nAugust 11, 1941, have added to or subtracted from the Connecticut Valley\nbase price adjusted for the kind, grade, shape or form differential.\n(d) Differentials for less than carload lot shipments.\nFor less than S. carload lot the maximum price\nshall be f.o.b. shipping point and shall be calculated by adding to\nthe Connecticut Valley base price adjusted for the kind, grade, shape,\nform and delivery differentials the following premiums:\nQuantity\nPrice per 1b.\n0 -\n499 pounds\n2#\n500 -\n999 pounds\n1st\n1,000 -\n4,999 pounds\n1$\n5,000\n- pounds to carload\n3/40\nThe above prices for less than a carload lot shall not\napply to a sale, delivery, or transfer by the refiner or producer\nof copper.\nA refiner or producer of copper shall be permitted to sell\nless than carload lots at B delivered price not more than 1/24 per\npound above the Connecticut Valley base price adjusted for the kind,\ngrade, shape, form and delivery differentials.*\nIssued this 12th day of August, 1941.\nCertified to be & true\ncopy of the original\nLEON HENDERSON\nADMINISTRATOR\nJOHN B. HAMM\nDEPUTY ADMINISTRATOR\nOFFICE FOR EMERGENCY MANAGEMENT\nOffice of Price Administration and Civilian Supply\n97\nFor immediate release\nPM 931\nVednesday, August 13, 1941\nAttached is the text of Price Schedule No. 16 - Raw Cane Sugars - pursuant to\nthe announcement made by Leon Henderson, Administrator, Office of Price Administra-\ntion and Civilian Supply, on August 12, 1941,\nTITLE 32 - NATIONAL DEFENSE\nCHAPTER XI - OFFICE 05 PRICE ADMINISTRATION AND CIVILIAN SUPPLY\nPart 1334 - Sugar\nPrice Schedule No. 16 - Raw Cane Sugars\nThe Office of Price Administration and Civilian Supply is charged with the\nmaintenance of price stability and the prevention of undue price risea and price\ndislocations. I find that the supplies of sugar are ample: in fact, they exceed\nthose supplies which were required to satisfy consumption last year and are suffi-\ncient this year to provide consumers with the highest per capita consumption on re-\ncord. The current sharp upswing of sugar prices is detrimental to the public inter-\nust and national defense, and will, if not stopped, cause serious dialocations.\nAccordingly. under the authority vested in me by Executive Order No. 8734, it\nis hereby directed that:\n1334.1 Maximum Prices for Raw Cane Sugars. On and after August 14, 1941, re-\ngardless of the terms of any contract of sale or purchase, or other commitment, ex-\ncept as may be provided in a supplement or supplements to this Schedule, no person\nshall sell, offer to sell, deliver or trensfer raw cane sugars to any person, and no\nperson shall buy, offer to buy, or accept delivery of raw cane sugars from any perso:\nat prices higher than the maximum prices set forth in Appendix A, incorporated herei\nRE @ 1334,9. These prices are gross prices before discounts of any nature are de-\nducted and they include all commissions.\"\n*1334.1 to 1334.9, inclusive issued pursuant to the authority contained\nin Executive Order No. 8734\n1334,2 Less than Maximum Prices. Lower prices than those set forth in Appen-\niix à may be charged, demanded, paid, or offered.\"\nRegraded Unclassified\na -\nPM 931'\n1334.3 Records. Every person making purchases or sales of raw cane sugars\n98\nafter August 14, 1941, shall keep for inspection by the Office of Price Main-\nistration and Civilian Supply for at period of not less than one year complete\nand eccurate records of:\n(a) Each such purchase or sale, showing the date thereof, the name and\naddress of the buyer or the seller, the price paid or received, the quantity of\neach kind or grade purchased or sold; end\n(b) The quantity of raw cane sugars (1) On hand, and (2) On order, aa\nof the close of each calendar month.\n1334.4 Enforcement. In the event of refusal or failure to comply with the\nprice limitations, record requirements, or other provisions contained in this\nSchedule, or in the event of any evasion or attempt to evade the price regula-\ntions or other provisions contained in this Schedule, this Office will make\nevery attempt to assure: (a) That the Congress and the public are fully in-\nformed of any failure to abide by the provisions of this Schedule, and (b) that\nthe powers of the Government are fully exerted in order to protect the public\ninterest and the interests of those persons who conform with this Schedule in\nthe maintenance of the maximum prices herein set forth. Persons who have evi-\ndence of the demand or receipt of prices above the limitation set forth or of\nany evasion of or attempt to evade such requirements or of speculation or mani-\npulation of the prices of sugar or of the hoarding or accumulation of unneces-\nsary inventory thereof, are urged to communicate with the Office of Price Admin-\nistration and Civilian Supply,*\n1334.5 Supplements to the Schedule, In order to insure compliance with\nthis Schedule, supplements further defining its scope, and, if necessary, re-\nquiring reports to the Government will be issued from time to time when found\nappropriate.\"\n1334.6 Modification of the Schedule. Persons complaining of hardship or\ninequity in the operation of this Schedule may apply to the Office of Price\nAdministration and Civilian Supply for approval of any modification thereof or\nexception therefrom.\"\n99\nPM 931\n1334.7 Definitions. Vhen used in this Schedule, the term\n(a) \"Person\" includes an indávidual, corporation. association, partner-\nship, or other business entity:\n(b) \"Haw cane sugars\" means any sugars which are principally of crystal-\nline structure and which are to be further refined or improved in quality, and\nany sugars which are principally not of crystalline structure but which are to\nbe further refined or otherwise improved in quality to produce any sugars princi-\npally of crystalline structure.*\n1334.8 Effective Date of Schedule, This Schedule shall become effective\non August 14, 1941.*\n1334.9 Appendix A - Maximum Prices for Raw Cane Sugars.\n(a) Maximum price raw cane sugars of 96 degrees polarization, New York\nCity duty paid basis cost and freight, 3.50$ per pound.\n(b) Differentials for deliveries from off-shore producing areas to porte\nother than New York City:\nFor deliveries at any port other than New York City, there shall be added\nto or subtracted from (whichever 1s required to compensate freight differences),\nthe New York City price, adjusted for the various degrees of polarisations as\nbelow set forth, the difference, if any, between the cost of freight from the por'\nof shipment to New York City and the cost of freight from the port of shipment\nto the port of arrival,\n(c) Differentials for various polarizations.\nAllowances per pound on raw cane sugars shall be as follows:\nFor the degree from 96 degrees to 97 degrees, add 1,50% of the above price; for\nthe degree from 97 degrees to 98 degrees, add an additional 1,25% of the above\nprice. For the degree from 96 degrees to 95 degrees, deduct 1.60% of the above\npoice; for the degree from 95 degrees to 94 degrees, deduct an additional 2.00%\nof the above price; for the degree from 94 degrees to 93 degrees, deduct an addi-\n100\nPM 931\ntional 2.50% of the above price. Fractions of a degree in proportion.'\nIssued this 13th day of August, 1941.\nLeon Henderson\nAdministrator\nCortified to be a true copy of the original\nJohn E. Harm\nDeputy Administrator\nRegraded Unclassified\n101\nOFFICE FOR EMERGENCY MANAGEMENT\nOffice of Price Administration and Civilian Supply\nFor Release A.M.\nAugust 15, 1941\nPM 939\nNoving to meet the inflationary situation in tin prices created by concern\nover shipments from the Far East, Leon Renderson, Administrator, Office of Price\nAdministration and Civilian Supply, today issued B. price schedule establishing B.\nceiling price of 52 cents B. pound on \"Grade A\" pig tin.\nTin la widely used A8 a plating and alloying material in production of both\narmaments and civilian goods. The price, therefore, has an important bearing on\ncost of both the defense program to the Government and of consumer goods to the\npublic generally.\nRatablishment of a maximum price ie in line with the warning issued by Mr.\nienderson on July 28 to the effect that a price ceiling might be set in the near\nfuture. At that time tin prices had moved up from around 53 cents to 55 cents a\npound after rising gradually from the buying level of 50 cents established by the\nMetals Reserve Co., an RFC subsidiary.\nThe price schedule, which was prepared after discussions with trade repre-\nsentatives, establishes differentials for various grades of pig tin, for freight\nrates from various points of shipment, and for sales in lots of less than five\nfross tone. The latter differentials are intended to facilitate continued\ndistribution of tin through jobbers to small consumers.\nThe schedule also provides for exemptions, under various restrictions, for\nfirm commitments entered into prior to August 16, 1941, for sale of pig tin at\nprices higher than the maximums.\nThe schedule does not establish maximum prices for special shapes, such as\nsmall tin bare and tin anodes, but makers are expected to continue to sell them\nat not more than their customary end normal premiums over pig tin.\nRegraded Unclassified\nPM 939\nTITLE 32 - NATIONAL DEFENSE\n102\nCHAPTER II - OFFICE OF PRICE ADMINISTRATION\nAND CIVILIAN SUPPLY\nPart 1333 - Tin\nPRICE SCHEDULE NO. 17. PIG TIN\nThe Office of Price Administration and Civilian Supply, being charged with\nthe maintenance of price stability and the prevention of undue price rises and\neconomic dislocations, has determined, after full investigation and after con-\nference with representatives d' the trade, that the establishment of maximum\nprices for pig tin is essential in order to accomplish these purposes and is in\ninterest of national defense and national welfare and that the maximum prices\nset forth herein are fair and reasonable.\nThis action is necessary because the current situation in the Far East,\nfrom which the United States imports almost all metallic tin used in this\ncountry, makes uncertain the continuance of an adequate supply of this stra-\ntegic metal. An increased demand, accompanied by a fear of a decrease in\nsupply, has already had an inflationary effect upon the price of tin and threat-\nens to exert even greater inflationary pressure in the future.\nAccordingly, under the authority vested in me by Executive Order No. 8734,\nit is hereby directed that:\n1333.1 Maximum Prices for Piz Tin, On and after August 16, 1941, re-\ngardless of the terms of any contract of sale or purchase, or other commitment,\nexcept as provided in 1333.4 hereof, no person shall sell, offer to sell,\ndeliver or transfer, pig tin, and no person shall buy, offer to buy, or accept\ndelivery of pig tin at prices higher than the maximum prices set forth in\nAppendix A. hereof, incorporated herein as Section 1333.10.*\nSections 1333,1 to 1333.10, inclusive, issued pursuant to authority\ncontained in Executive Order No. 8734.\n1333,2, Less than Maximum Prices. Lower prices than those set forth in\nAppendix A. may be charged, demanded, paid or offered.\n1333.3. Evasion. The price limitations set forth in this Schedule\nshall not be evaded either by direct or indirect methods\nRegraded Unclassified\n103\n- a -\nPM 939\nin connection with a purchase, sale, delivery, or transfer, of pig tin alone\nor in conjunction with any other material, or by vay of any commission, 002-\nvice, transportation, or other charge, or discount, premium, or other privi-\nlege, or by tying-agreement or other trade understanding, or otherwise,\"\n1333,4. Exemption from the Sechedule of Firm Commitments Entered Into\nPrior to August 16, 1941, Firm commitments entered into prior to August 16,\n1941, for the sale of pig tin at prices higher than the maximum prices 00-\ntablished in this Schedule, may be completed at contract prices provided that\n(a) full details of each such commitment, and such other pertinent in-\nformation as may be requested, be reported by the seller to the Office of\nPrice Administration and Civilian Supply on or before August 30, 1941, on\nforms which may be obtained from said Office, and\n(b) all deliveries at prices higher than the maximum prices established\nby this Schedule be completed on or before December 31, 1941, or such later\ndate as may be permitted upon application made the each such case to the Office\nof Price Administration and Civilian Supply.\"\n1333.5. Records, Every person making purchases or sales of pig tin on\nor after August 16, 1941, shall keep for inspection by the Office of Price\nAdministration and Civilian Supply for 8. period of not less than five years,\ncomplete and accurate records of (a) every such purchase and sale, showing\nthe date thereof, the name and address of the buyer or the seller, the price\npaid or received, and the quantity, in pounds or tons, of each kind or grade\npurchased or sold, and (b) the quantity, in pounds or tons, of pig tin (1) on\nhand, and (11) on order, as of the close of each calendar month.\"\n1333.6. Enforcement. In the event of refusal or failure to abide by\nthe price limitations, record requirements, or other provisions contained in\nthis Schedule, or in the event of any evasion or attempt to evade the price\nlimitations or other provisions contained in this Schedupe, this Office will\nmake every effort to\nRegraded Unclassified\n104\n- 3 -\nPM 939\nassure (a) that the Congress and the public are fully informed thereof, and (b)\nthat the powers of the Government are fully exerted in order to protect the\npublic interest and the interests of those persons who conform with this Sche-\ndule. Persons who have evidence of the offer, receipt, demand or payment of\nprices above those herein set forth, or of any evasion of or effort to evade\nthe provisions hereof, or of speculation, or menipulation of prices of pig\ntin for which maximum prices are herein established, or of the hoarding or\naccumulating of unnecessary inventories thereof, are urged to communicate with\nthe Office of Price Administration and Civilian Supply,*\n1333.7. Modification of the Schedule, Persons complaining of hardship\nor inequity in the operation of this Schedule may apply to the Office of Price\nAdministration and Civilian Supply for approval of any modification thereof\nor exception therefrom.\"\n1333.8 Definitions. When used in this Schedule, the term (a) \"persons\"\nincludes an individual, partnership, association, corporation or other\nbusiness entity.\n(b) \"pig tin\" means pig tin of the kinds and grades set forth in Appendix\nA of this Schedule.\"\n1333.9. Effective Date of the Schedule, This Schedule shall become\neffective August 16, 1941.\n1333.10. Appendix A. Maximum Prices for Pig Tin.\nI. Maximum Prices for Standard Grades of P1g Tin.\nMAXIMUM PRICE\nGRADE\n(Per Bound)\n1. 99.80% or higher percentage of purity, meeting\nspecifications set forth in \"Specifications and\nProposale for Supplies, No. S-14\", Issued December\n15, 1939, by the U. S. Treasury Department, Pro-\ncurement Division, except that pig tin of this\ngrade need not be free of scrap and remelted metal\n$0.52\n0.51625\nB. 99.75% to 99.79% pure, inclusive\n0.51625\nC. Cornish Refined\n0,51125\nD. 99.00% to 99.74% pure, inclusive\n0,51 for\nE. Below 99% pure\ntin content\nRegraded Unclassified\n- 4 -\nPM 939\n105\nII. Differentials for Freight Rates.\nThe above naximum prices are, in the case of foreign Dig tin, ox dock\nor store, Port of New York, and, in the case of domestic pig tin, ex producer's\nplant. The maximum prices of foreign pig tin which is imported through porte\nof entry other than the Port of New York shall be ex dock or store at the\nactual port of entry and shell be as much more or as much less than the above\nprices as the ocean freight from the point of shipment to the actual port of\nentry exceeds or is less than the ocean freight from such point of shipment\nto the Port of New York. Foreign pig tin which is physically present at or\nis sold for shipment from a point other than the port at which it was entered,\nand domestic pig tin which is physically present at or is sold for shipment\nfrom FL point other than the producer's plant, may be sold at prices, 1. 0. D.\nsuch point of physical presence or of shipment, which exceed the above maximum\nprices by no more than the domestic shipping charges which have notually been\npaid or trust be paid in order to transport such pig tin to such point of\nphysical presence or of shipment.\nIII. Differentials for Salos in Lote of Less than Five Gross Tone.\nFor sales of pig\nThere any be added to\ntin in lots of:\nthe maximum price:\n2,240 to 11,199 pounds, inclusive\n1# per pound\n1,000 to 2,239 pounds, inclusive\nper pound\n500 to 999 pounds, inclusivo\n22$ por pound\nUnder 500 pounds\n3+ per pound\nIssued this 15th day of August, 1941.\nLeon Henderson\nAdministrator\nCERTIFIED TO BE A TRUE COPY OF THE ORIGINAL:\nJohn E. Hamm\nDeputy Administrator\nRegraded Unclassified\n106\nOFFICE FOR EMERGENCY MANAGEMENT\nOffice of Price Administration and Civilian Supply\nFor Release AM Papro\nSaturday, August 16, 1941\nPM 948\nBecause of the shortage of transportation facilities available for moving\ngasoline to the Atlantic Coast area, deliveries of gasoline from suppliers were yes-\nterday limited to 90% of the July level through a Civilian Allocation Program issued\nby Leon Henderson, Administrator, Office of Price Administration and Civilian Supply\nThe action Was taken in response to a recommendation from Harold L. Idres,\nFetroleum Coordinator for National Defense,\nIt means that beginning immediately the amount of gasoline available to con-\nnumers in the Atlantic Coast Area will be 10% amaller than during the like period of\nJuly. The allocation program provides, however, that deliveries to certain users\nwhose needs are essential shall not be reduced beyond \"minimum necessary require-\nments,\" thus increasing somewhat the severity of the curtailment for ordinary\ncivilian users.\nThe programis intended as an interim negsure to be followed pending the develop-\nment of a further plan for allocating the distribution and consumption of motor fuel\nIt is expected that more severe curtailments will be necessary in the future,\nIn asking that OPACS take this action Mr. Ickes stated:\n\"During the week ending August 5 deliveries of gasoline by 17 major suppliers\nin the Atlantic Coast area increased by 8 percent despite the intensive efforts of\nthis office to obtain voluntary public cooperation in reducing gasoline consumption.\nThis alarming continued increase in deliveries of gasoline, in view of the shortage\nof oil transportation facilities, threatens to leave the Atlantic Coast area without\nsufficient petroleum products for essential transportation, power and heat. It is\nimperative, therefore, that immediate steps be taken which will conserve effectively\nthe supplies of petroleum products in this area in order that national defense and\nessential civilian requirements may be met.\"\nRegraded Unclassified\n3X 948\n107\n- 2 -\nBecause of the need to assure continuance of cesential public services and the\nproduction of foodstuffs the program names four groups of users who are to receive\n\"not in excess of the minimum necessary requirements.\" They include:\n(1) The operation of commercial vehicles so classified by law.\n(2) The operation of vehicles necessary for the public heath or safety,\nincluding ambulances and vehicles operated by physicians.\n(3) The operation of farm machinery and motor trucks used for farm purposes.\n(4) The operation of vehicles owned or operated by Federal, State or local\ngovernments.\nSuch consumers will presumably not be cut very much in reducing consumption\nfrom the present level to their \"minimum necessary requirements\". Therefore most\nof the burden will be borne by ordinary civilian users of gasoline. Supplies\navailable for their use will necessarily be curtailed by somewhat more than 10%.\nWith the exception of the four groups of users receiving special treatment,\nthe program provides that service station operators shall not discriminate between\ndifferent consumers or classes of trade in making deliveries. Furthermore, it is\nrequired that deliveries shall be made in a manner which will spread necessary cur-\ntailment proportionately among different consumers and different classes of trade,\nDeliveries to service stations must also be made proportionately throughout each\nmonth and service station operators must distribute their deliveries proportionately\nthroughout each day.\nIn announcing the program Mr. Henderson made it clear that action was taken\nonly because of the acute situation which is developing due to transportation\nshortages. This has been due largely to diversion of tankers ordinarily used in\nmoving gasoline from the Gulf Coast to the Atlantic seaboard. A number of such\ntankers are now being used to transport gasoline and other oil products destined\nfor England.\nFollowing 1s text of the letter from Harold L. Ickes, Petroleum Coordinator for\nNational Defense, to Leon Henderson, Administrator, Office of Price Administration\nand Civilian Supply:\nRegraded Unclassified\nPM\n940\n108\nAugust 14, 1941\nMy dear Mr. Henderson:\nDuring the week ending August 5 deliveries of gasoline by 17\nnajor suppliers in the Atlantic Coast area increased by 8 percent\ndespite the intensive efforts of this office to obtain voluntary\npublic cooperation in reducing gasoline consumption. This elarming\ncontinued increase in deliveries of gasoline, in view of the short-\nage of oil transportation facilities, threatens to leave the Atlantic\nCoast area without sufficient petroleum products for essential trans-\nportation, power and heat. It is imperative, therefore, that in-\nmediate steps be taken which will conserve effectively the supplies\nof petroleum products in this area in order that national defense\nand essential civilian requirements may be met.\nIn his letter of May 28, 1941, establishing the Office of Petro-\nleur Coordinator for National Defense, the President of the United\nStates made it the duty of this office\nto make specific recommendations to any ap-\npropriate department, office, corporation or other Agency\nof the Federal Government, particularly the Office of\nProduction Management and the Office of Price Administra-\ntion and Civilian Supply,\nas to action which ia\nnecessary or desirable, on the basis of (my) determine-\ntions, to insure the maintenance of a ready and adequate\nsupply of petroleum and petroleum products.\"\nAccordingly, pursuant to the direction of the President of the\nUnited States, and based upon determination which I have made, I recon-\nmend to you that immediate steps be taken to curtail total monthly de-\nliveries of motor fuels by suppliers, resellers. service stations and\nall other persons engaged in the sale or resale of motor fuels for цве\nin motor vehicles to not more than 90 percent of the amount BO delivered\nby him during the month of July 1941. For the remaining one-half of the\nmonth of August such deliveries should be curtailed similarly to 45 per-\ncent of the July 1941 deliveries. The recommended curtailment should\nbe affected thereby but should not be applied BO B.B. to restrict sales und\ndeliveries of motor fuels needed for the operation of commercial\nRegraded Unclassified\n109\nPM 948\n-2-\nvehicles so classified pursuant to law, vehicles employed in services\nnecessary for the public health and safety, vehicles employed in\nagricultural pursuits and vehicles owned or operated by Federal, State\nor local governments. Because of the lack of resulting hardship, it\nis suggested that all other deliveries of motor fuel be given prefer-\nonce to those for use in the operation of pleasure boats.\nSince such & curtailment of deliveries will result in a shortage\nof motor fuel at service stations and other places of business where\nmotor fuel is sold and delivered into the fuel tanks of motor vehicles,\nI further recommend, in order to assure all drivers of private auto-\nmobiles their fair share of the limited supply, that individual de-\nliveries of motor fuel to private automobiles be limited to such max-\nimum number of gallons as in each place of business may be necessary\nto accomplish the purposes of this recommendation and that all subject\nto this recommendation conduct their business so as to avoid discrimina-\ntion with respect to any of their customers. It will also be necessary,\nof course, that deliveries be reduced proportionately, insofar as\npracticable, to assure the continued availability of motor fuels\nthroughout the affected periods.\nIt is contemplated that the steps recommended herein, although\nnecessary immediately, will be provisional only and will be kept in\neffect only until a further and more comprehensive recommendation for\nallocation of petroleum products can be perfected.\nSincerely yours,\nHarold L. Ickes\nPetroleum Coordinator\nfor National Defense.\nHon. Leon Henderson\nAdministrator, Office of Price\nAdministration and Civilian Supply.\nTITLE 32 - NATIONAL DEFENSE\nPM 948\nCHAPTER XI - OFFICE OF PRICE ADMINISTRATION AND CIVILIAN SUPPLY\n110\nPART 1340 - FUEL\nCIVILIAN ALLOGATION PROGRAM\nFOR MOTOR FUEL IN THE ATLANTIC\nCOAST\nShortages in the availability of transportation facilities for\nthe distribution of petroleum and petroleum products have cause shortages\nin the supply of motor fuel in the Atlantic Coast Area. Further shortages\nof motor fuel and shortages of petroleum products for essential transpor-\ntation, power and heating purposes are threatened unless immediate steps\nare taken to curtail consumption of motor fuel. The Petroleum Coordinator\nfor National Defense, pursuant to the responsibility vested in him by the\nPresident in & letter dated May 28, 1941, has recommended to the Office of\nPrice Administration and Civilian Supply in a letter dated August 14, 1941,\nthat curtailment of the use of motor fuel be effected.\nThe following program is intended as an interim measure pending\nthe development of a further plan for allocating the distribution and\nconsumption of motor fuel.\nAccordingly, pursuant to the powers vested in me by Executive\nOrder No. 8734, particularly Section 2(a) thereof, the following program\nis announced:\n1340.1 Allocation of Motor Fuel. No supplier of motor fuel\nshall, directly or indirectly, deliver or cause to be delivered in any\nmonth to resellers and consumers of such motor fuel more than 90% of the\namount delivered by him to resellers and consumers during the month of\nJuly 1941: provided that during the remainder of the month of August 1941\nsubsequent to the effective date of this program no such supplier shall 80\ndeliver or cause to be BO delivered more than 45% of the amount of motor\nfuel delivered by him during the month of July 1941.'\n1340.1 to 1340.8, inclusive, issued pursuant to\nthe authority contained in Executive Order No. 8734\n1340.2 Methods of Distribution. Subject to the provisions of\nRegraded Unclassified\n111\n- 2\nPM 948\n1340.3, no supplier in making deliveries of motor fuel shall discriminate be-\ntween resellers (including service stations owned or controlled, directly or in-\ndirectly, by him) or consumers supplied by him, and every supplier shall curtail\ndeliveries to all resellers And consumere supplied by him on & proportionate\nbasis. Subject to the provisions of 1340.3, no person maintaining or operating\nany service station, shall, in making deliveries of motor fuel, discriminate\nor permit others to discriminate between different consumers of motor fuel or\ndifferent classes of trade, and every such person shall so make deliveries no\nto spread necessary curtailment of motor fuel proportionately among different\nconsumers and different classes of trade. All suppliers shall make deliveries\nin such menner 8.6 to distribute such deliveries proportionately throughout each\nmonth; and all persons maintaining or operating service stations shall make\ndeliveries in such manner as to distribute such deliveries proportionately\nthroughout each day.\n1340.3 Preferences for Certrin Uses, In making deliveries of motor fuel\nall suppliers and persons maintaining or operating service stations shall give\npreference to deliveries of motor fuel to be used, not in excess of the minimum\nnecessary requrements, for the following purposes:\n1. The operation of commercial vehicles so classified by law.\n2, The operation of vehicles necessary for the public health or safety,\nincluding ambulances and vehicles operated by physicians.\n3, The operation of farm machinery and motor trucks used for form purposes.\n4. The operation of vehicles owned or operated by Federal, State, or\nlocal governments.\nIn making deliveries of motor fuel, all suppliers and persons maintaining\nor operating service stations shall give preference to all other uses of such\nfuel over deliverios to be used in the operation of pleasure boats.\nRegraded Unclassified\n112\n- 3 -\nPM 948\n1340.4 Reports. Each supplier of motor fuel shall keep for inspect-\nion for a period of not less than one year complete and accurate records of all\ndeliveries of motor fuel, showing the date thereof, the name and address of the\nconsignee, the price received, the use for which such motor fuel was delivered,\nand the quantity of each type of motor fuel delivered.\"\n1340.5 Application to Atlantic Coast Area. This program shall be\napplicable to deliveries of motor fuel in Maine, New Hampshire, Vermont, Mass-\nachusetts, Connecticut, Rhode Island, New York, Pennsylvania, New Jersey, Dela-\nware, Maryland, Virginia, West Virginia, North Carolina, South Carolina, Georgia,\nFlorida east of the Apalachicola River, and in the District of Columbia.*\n1340.6 Definitions. The term \"person\", as used in this program, in-\ncludes any individual, partnership. association, corporation, or other form of\nenterprise.\nThe term \"supplier\", as used in this program, means any person, in-\ncluding & reseller, selling or delivering motor fuel to any reseller or con-\nsumer of such motor fuel; but the term shall not include any person all of whose\ndeliveries are made at service stations and shall not include that part, if any,\nof a supplier's business included in the definition of a \"service station\".\nThe term \"reseller\", as used in this program, means any person who\nreceives motor fuel for resale.\nThe term \"service station\", as used in this program, means any place\nof business where motor fuel is sold and delivered into the fuel tanks of motor\nvehicles or motor boats,\nThe term \"motor fuel\", as used in this program, means liquid fuel used\nfor the propulsion of motor vehicles or motor boats, and shall include any\nliquid fuel as to which Federal gasolene taxes apply except liquid fuel used for\nthe propulsion of aircraft.\nRegraded Unclassified\n113\nP.M.946\nThe terms \"deliver\" and \"deliveries\", as used in this program,\nexcept as used in 1340.4, shall not include deliveries of motor fuel\nloaned, exchanged, purchased, or sold between suppliers or persons cain-\nteining or operating service stations made for the purpose and with the\neffect of enabling such suppliers or persons mainteining or operating\nservice stations to equalize as between themselves the percentage of cur-\ntailment required of different classes of trade.*\n1340.7 Enforcement. This program shall be administered and\nenforced by the Office of Production Management.\n1340.8 Effective Date. This program shall become effective\nAugust 15, 1941.*\nIssued this 15th day of August, 1941.\nLeon Henderson\nAdministrator\nRegraded Unclassified\nOFFICE FOR EMERGENCY MANAGEMENT\n114\nOffice of Price Administration and Civilian Supply\nFor Release AM\nPM 949\nAugust 16, 1941\nRayon yarn producers are permitted to release immediately to former\nsilk users, other than hosiery manufacturers, a substantial amount of the rayon\nyarn accumulated under the recent allocation order of the Office of Price\nAdministration and Divilian Supply.\nThrough this intorim arrangement, effected by an amendment announced\ntoday, OPACS ains to make available for these former users of silk sufficient\nsupplies of rayon yarn to permit of reasonably adequate operations until a longer-\nrange plan can be developed.\nThe CPACS allocation program required rayon yarn producers to set asido\none-tenth of their daily output and stocks on hand. Of this, 70% was ear-marked\nfor hosiery nanufacturers and 30% for other users of silk and for rayon weavers\nupon whom the program might impose unduo hardship. The amendment, which ie only\neffective until midnight of August 31, 1941, allows rayon yarn producers to nell\nat once one half of the 30% thus pooled to manufacturers, jobbers or converters\nother than hosiory manufacturers whose products had bean made largely or wholly\nof silk.\nThe anended program does not contemplate any further governmental\naction B.D. B. prerequisite to the sale of such rayon yern to these purchasers. If\norders received as result of the amendment exceeds the amount of yarn so set\nacide, producers of rayon yarn are to use their own judgment in deciding what\norders to fill, until such tine as further programs are announced,\nText of the amendment is attached.\nRegraded Unclassified\n115\nPM 949\nTITLE 32 - NATIONAL DEFENSE\nCHAPTER XI - OFFICE OF PRICE ADMINISTRATION AND CIVILIAN SUPPLY\nPART 1337 - Civilian Allocation Program for Rayon Tarn\nSection 1337.1 is hereby amended by adding at the end thereof the\nfollowing:\nProvided, however. that during the period from the date of this\nprogram to midnight August 31, 1941, one-half of the above remaining\n30 percent, and only said one-half, shall be made available immediately\nto menufacturers, jobbers and converters, other than manufacturers of\nhosiery, whose products had heretofore been made largely or wholly of\nsilk, and the dispositions of such amounts among said manufacturers,\njobbers. and converters shall be made by each producer of rayon yarn\naccording to his own judgement.\nIssued this 15th day of August, 1941.\nLeon Henderson\nAdministrator\nCertified to be a true copy of the original\nJohn E, Hamm\nDeputy Administrator\nRegraded Unclassified\n116\nOFFICE FOR EMERGENCY MANAGEMENT\nOffice of Price Administration and Civilian Supply\nFor AM Palegra\nSaturday, August 16, 1041\nPM 950\nPrices farmers and industrial users pay for burlap bags and other types of burlap\nare expected to be reduced substantic'ly from present inflated levels as result of a\nprice ceiling on burlep approximately 20% below recent quotations on the New York\nspot market announced today by Leon Eenderson, Administrator, Office of Price Ad-\nministration end Civilian Supply.\nBurlep used in this country 10 virtually all imported from India, The material\nis widely used in packaging feed, fertilizer, and agricultural and industiral prod-\nucts, and in the manufacture of floor coverings, automobiles, furniture, and other\ngoods. During the pest 13 months the price of burlap in New York or enroute to this\nountry has more than doubled. Prices of burlap begs have likewise shown E. very\nsharp increase.\nThe price increase in this country has been due in part to higher prices in\nCalcutta, in part to higher shipping and insurance costs, and in part to & wholly\nunjustified increase in the margin between what importers pay for burlap and what\nthey sell it for.\nThe schedule of ceiling prices is in two parts, the first establishing maximume\nfor deliveries made on or before December 31, 1941, of 17 different constructions of\nburlap and the second establiching maximum prices on the same constructions delivered\non or after January 1, 1942. The maximum prices which will go into effect January 1\nare % lower than those which will prevail in the earlier period.\nThe maximum prices for the period ending December 31, 1941, are approximately\n15% above the Calcutta prices of July 29, This markup of 15% is adequate to cover\nnereased shipping end insurance costa and to maintain importers' margine at their\nnormal level.\nRegraded Unclassified\nPM 950\n117\n- 2 -\nNo ceiling action 16 being taken at present in regard to the price which\nimporters may pay to Calcutta suppliers. This is in line with advice of & trade\nadvisory group, incl uding both importers and bag manufacturere, who were consulted\nby OPACS officials in preparing the price schedule. It is believed, however, that\nimposition of the ceiling will have & salutary effect on prices charged for burlap\nin Calcutta. Should this result fail to. eventuate further steps will be taken\nromptly.\nImposition of the ceiling is also expected to produce a downward movement in\nthe price of second hand bags to their normal price relationship of 30 to 40% under\nthe prices of new bags of similar kind and quality.\nRegraded Unclassified\n118\nTITLE 32 - NATIONAL DEVENSE\nPX 950\nCHAPTER XI - OFFICE OF PRICE ADMINISTRATION AND CIVILIAN SUPPLY\nPart 1339 - Burlap and Burlap Products\nPrice Schedule No. 18 - Burlap\nBurlap, virtually all of which 1s imported from India, is widely used for\npackaging feed, fertilizer, and agricultural and industrial products. It is also\nextensively employed in the manufacture of floor covering, furniture, and other\ngoods.\nDuring the past twelve months prices of spot burlap in New York have risen\nmore than one hundred percent. These increases, which have raised the price of\nburlap considerably above the highest prices in recent years, have added unjustifia-\nble costs to American agriculture as well as to industry and the ultimate consumer.\nAccordingly, under the authority vested in me by Executive Order No. 8734, it\n18 hereby directed that:\nI 1339.1 Maximum Prices for Purlap. On and after August 16, 1941, regardless\nof the terms of any contract of sale or purchase, or other commitment, except as\nprovided in @ 1339.4 hereof, no person shall sell, offer to sell, deliver, or trans-\nfer burlap, and no person shall buy, offer to buy, or accept delivery of burlap at\nprices higher than the maximum prices set forth in Appendix A hereof, incorporated\nherein as 8 1339.11.\nI 1339.2 Less than Maximum Prices. Lower prices than those set forth in\nAppendix À may be charged, demanded, paid, or offered.\nI 1339.3 Evasion. The price limitations set forth in this Schedule shall not\nbe evaded whether by direct or indirect methods in connection with B. purchase, sale,\ndelivery, or transfer of burlap, alone or in conjunction with any other material,\nor by way of any commission, service, transportation, or other charge, or discount,\npremium, or other privilege, or by tying-agreement or other trade understanding, or\notherwise.\n§§ 1339.1 to 1339.11, inclusive, issued pursuant to authority contained in\nExecutive Order No. 8734.\nRegraded Unclassified\nPM 950\n119\nI 1339.4 Permission to Cerry Out Contracts Intered into Prior to August\n16, 1941. Any person who, prior to August 16, 1941, has entered into & contract\nof sale or other firm commitment celling for the delivery or transfer after that\ndate of burlap at prices higher than the established maximus prices, may make\napplication to the Office of Frice Administration and Civilian Supply, on Form\n118:1 provided for that purpose, for permission to carry out such contract or\ncommitment at the contract price. Such permission will be granted only to the\nextent necessary to protect the applicant against loss in the disposition of\ninventory acquired prior to August 16, 1941, at prices higher than the estab-\nlished maximum prices and held by the applicant on that date, Such application\nshall be filed with the Office of Price Administration and Civilian Supply on or\nbefore October 1, 1941.\n9 1339.5 Records. Every person making purchases or sales of burlap after\nAugust 16, 1941, shall keep for inspection by the Office of Price Administration\nand Civilian Supply for a period of not less than one year, complete and accurate\nrecords of each such purchase or sale, showing the date thereof, the name and\naddress of the buyer or the soller, the price paid or received, the quantity of\neach kind or construction, and the type of transaction (1.e., spot or afloat).\n8 1339,6 Affirmations of Compliance. On or before September 10, 1941, and\non or before the 10th day of each month thereafter, every person who, during the\npreceding calendar month, has sold, or delivered, or purchased, or accepted de-\nlivery of burlap, shall submit to the Office of Price Administration and Civiliar\nSupply an affirmation of compliance on Form 118:2 containing B. sworn statement\nthat during the month of all such sales, purchases, or deliveries were made at\nprices in conformity with this Schedule or with any exception or modification\nthereof. Copies of Form 118:2 can be procured from the Office of Price Admin-\nistration and Civilian Supply, or, provided that no change is made in the style\nor content of the form and that it is reproduced on 8x10}\" paper, they may be\npewpared by persons required to submit affirmations of compliance hereunder.\nPM\nDES\nI\n1339.7 Informagent. In the event of refusel or failure to abide by the\nprice limitations, record requirements, or other provisions contained to title\nSchedule, or in the event of any evasion or attempt to evade the price limitations\n120 Regraded\nor other provisions contained in this Schedule, this Office will make every offor)\nto assure (a) that the Congress and the public are fully informed thereof, and (b)\nthat the powers of the Government are fully exerted in order to protect the public\ninterest and the interests of those persons who confrom with this Schedule. Per-\nsons who have evidence of the offer, receipt, demand, or payment of prices higher\nthan the-maximum prices, or of any evasion or effort to evade the provisions here-\nof, or of speculation or manipulation of prices of burlap for which meximm prices\nare herein established, or of the hearding or accumulating of unnecessary inven-\ntories thereof, are urged to comminicate with the Office of Price Administration\nand Civilian Supply.\nI 1339.8 Modification of the Schedule. Persons complaining of hardship or\ninequity in the operation of this Schedule may apply to the Office of Price Ad-\nministration and Civilian Supply for approval of any modification thereof or ex-\nception therefrom.\nI 1339.9 Definitions. When used in this Schedule, the term (a) \"person\" in-\ncludes an individual, partnership, association, corporation, or other business\nentity:\n(b) \"burlap\" means jute burlap of the constructions listed in Appendix A when\neither (1) in the United States available for immediate delivery or (11) aboard\nvessels on route to the United States.\n6 1339.10 Effective Date of this Schedule, This Schedule shall become\neffective August 16, 1941.\ne 1339.11 Appendix A - Maximum Prices for Burlap. There are two maximum\nprices for the enumerated constructions or burlap established by this Schedule,\ndepending upon the date of actual delivery of the burlap to the purchaser. For\nburlap actually delivered on or before December 31, 1941, the maximum prices\nwhich may be paid are the prices set forth in\nPM 950\n121\nColumn I. For burlap delivered after that date, the maximum prices are the\nprices set forth in Column II.\nI\nII\nMaximum Prices for\nMaximum Prices for\nDeliveries made on or\nDeliveries made on and\nbefore December 31, 1941 after January 1, 1942\nConstruction\nPrices per yard. ex dock Port of Discharge.\nDaty Paid\n40\" 7-1/2 08.\n8.406\n8.00#\n40\" 8\n02.\n8.904\n8.50d\n40\" 10\n02.\n11.10$\n10.60#\n40\" 10-1/2 02.\n11.50#\n11.00#\n36\" 7-1/2 02.\n7.854\n7.40#\n36\" 8\n02,\n8.15#\n7.70$\n36\" 10\n02.\n10.15$\n9.70#\n40\" 9\n02.\n10.10#\n9.65\n36\" 9\nOZ.\n9.15\n8.75#\n40\" 12\n02,\n13.35$\n12.70$\n36\" 12\n02.\n12.15#\n11.55#\n45\" 7-1/2 OZ.\n9.554\n9.10\n45\" 8\n0%.\n10.00$\n9.50#\n45\" 10\n02.\n12.50$\n11.95$\n32\" 7-1/2 OZ.\n6.95$\n6.60#\n23\" 10\n02.\n9,15$\n8.70#\n32\" 8\nor,\n7,25#\n6.904\nThe maximum prices set forth above are for burlap sold or delivered in\nquantities of 25 bales or more. For burlap sold in quantities of less than\n25 bales the customary premiums may be charged, but in no case shall the prices\nf.o.b. shipping point exceed the maximum prices set forth above plus ten percent.\nThe maximum prices established by this Schedule do not apply to burlap sold\nin quantities of less than one bale.'\nIssued this 15th day of August, 1941.\n/8/ Leon Henderson\nLeon Henderson\nAdministrator.\nCertified to be & true\ncopy of the original\nJohn 3. Hamm, Deputy Administrator\nOFFICE FOR EMERGENCY MANAGEMENT\n122\nOffice of Price Administration and Civilian Supply\nor Inmediate Release\nSaturday, August 16, 1941\nPM 961\nPrices of Southern pine lumber, which stands with Douglas fir at the top of the\nlist of primary construction caterials, are reduced roughly $3.00 per thousand board\nfeet from recent high levale by Price Schedule No. 19 announced today by Leon Ren-\nderson, administrator, Office of Price Administration and Civilian Supply.\nSimultaneously, Mr. Henderson dieclosed that ceiling prices for Douglas fir\nlumber, which is generally competitive with Southern pine, will be established in\nthe near future. & meeting to discuss such a schedule with representatives of the\nDouglas fir lumber industry hee been called by OPACS for August 20 in Portland, Ore.\nThe Southern pine lumber schedule will go into effect es of September 5, 1941.\nPreliminary to its determination of ceiling prices, OPACS consulted with repre-\nsentatives of the Southern pine lumber industry at a conference on August 6 and sub-\nequently met with numerous individual members of the trade. Discussions similarly\nwere had with Government agencies concerned, including the Procurement Services of\nthe War and Navy Departments: Forest Service of the Department of Agriculture; Fed-\neral Works Administration; Department of Commerce: Division of Purchases of the\nOffice of Production Management; Department of Justice, and the Procurement Division\nof the Treasury Department.\nXr. Registran stated that lumber prices have been a matter of serious concern\nto hi- for almost B. year and have occasioned several warnings against unjustified 10-\ncreases. Such stability as these warnings achieved was dissipated in June of the\ncurrent year, when EL new succession of price increases began. Prices of No. 2 com-\nDon boards advanced from $22.00 per thousand board feet in July, 1940, to $30.00 per\nthousand, f.o.b. mill, in July, 1941. Today the cost of this and other types of lus-\nber to the general public and to the defense program io excrbitant.\nOPACS ceiling action, applied to the present annual scale of lumber buying.\nseans a saving to civilian consumers and to the Government of more than $20,000,000\na year. At the sale time the Southern pine lumber industry is accorded a schedule\nRegraded Unclassified\n- 2 -\nPM 961\n123\nof prices adequate to permit continued profitable operations,\nThe price schedule applies only to sales from mills or concentration yarde.\nWholesale or retail yard prices, currently inflated, are expected to fall into line\npromptly.\n\"If this does not occur,\" Mr. Henderson said, \"the ceiling will be extended to\ncover all wholesale and retail sales.\"\nCoats of finishing and dressing, as well as expenses of distribution, are re-\nflected in the schedule. Because of this latter factor, it is expected that mills\nwill continue wholesalers' margine and other discounts now prevailing. Thus, pre-\nsent industry practices need not be disturbed.\nSouthern pine, sometimes called yellow pine, includes longleaf, slash, short-\nleaf, loblolly and several other species of less importance. Southern pine lumber\n1a employed in all kinds of building construction and has an important use in the\ndefense program, particularly for cantonments and defense housing in the South and\nEast.\nAbout 95% of Southern pine is cut in ten States: Alabama, Texas, North Carolina,\nMississippi, Arkansas, Louisiana, Georgia, Florida, South Carolina and Virginia,\nrenking in importance in that order.\nThe price schedule recognizes no difference between longleaf and shortleaf pine\nin the grades and types covered. Long and large timbers, which are usually made of\nthe longleaf variety, are excluded, as are certain other sizes. It is expected that\nthe prices of these sizes will fall into line with the prices for the kinds and\ngrades of lumber included in the schedule. Should this not follow, Mr. Henderson\nstated, the schedule will be extended to take them in.\nMaximum prices are established for siding, ceiling, flooring, finish, boards,\nshiplap, fencing, dimension, and small timbers.\nTop prices that may be charged for siding range from $20.00 for 4\" drop, plain\nend, to $47.00 for Grade B and better bevel-siding. Ceiling and flooring lumber ver-\ntical grain, has a maximum price of $60.00 for Grade B and better, plain end, with\nRegraded Unclassified\n124\n3 -\nPM 961\nrange downward on lower grades. End-matched ceiling and flooring, vertical\ngrain, is given a top price of $52.50 for Grade B or better with similar differ-\nentials on lower grades. Flat grain ceiling and flooring good down from a top\nprice of $43.00 on Grade B or better.\n\"Finish\", a high grade of Southern pine generally stocked by lumber yards\nfor clear shelving, panelling, etc., has a price range for standard lengths in the\nschedule of $51.00 to $70.00 for Orade B and better and $47.00 to $58.00 for Grade\n0, all in widths of 3\" to 12\".\nBoards, shiplap and fencing come in three base grades, known as 1, 2 and 3\ncommon. Maximum prices in 1\" I 6\", 14' lengths, are $31.00 for No. 1 grade and\n$26.50 for No. 2 grade. The No. 3 grade, random lengths, has a price range of $16.\nto $21.00 based on width.\nCeiling prices on \"dimension\" lumber, using 2\" I 4\"s as the most representa-\ntive type, range from $28.50 for No. 1 grade down to $26.00 for No. a grade in\n10', 12' and 14' lengths. Random lengths in No. 3 grade have top prices of from\n$18.50 to $20.00.\nSmall and utility timbers are priced from $26.50 for 3\" I 4\" No. 2 grade in 12'\nto 14t foot lengths up to $42.50 on No. 1 grade 8\" K 8\"s in 18' to 20' lengths.\nAll prices quoted are for 1,000 board feet and are f.o.b. mill. In the case of\ndirect mill shipments, delivered prices must not exceed the ceiling price f.o.b.\nmill, plus actual transportation charges to the point of delivery. In estimating\nsuch transportation charges, it is permitted to use the standard weights adopted by\nthe Southern Pine Inspection Bureau.\nThe ceiling prices established in the schedule apply on all sales and deliver-\n108 on and after the effective date, September 5, 1941, notwithstanding any then\nexisting contracts or commitments.\nText of Price Schedule No. 19 is attached.\nRegraded Unclassified\n125\nTITLE 32 - NATIONAL DEFENSE\n3M 961\nCHAPTER XI - OFFICE or PRICE ADMINISTRATION\nAND GIVILIAN SUPPLY\nPart 1312 - Lumber and Lumber Products\nPRICE SCHEDULE NO. 19 - Southern Pine Lumber\nSouthern pine lumber is widely used in the construction industry for exterior\nand interior finish, framing, millwork, sheathings, floorings, and sub-floorings,\nand in the manufacture of motor vehicles, low grade furniture, and household and\nfarm appliances. In the defense program it has been extensively employed in the\nconstruction of cantonments, defense housing projects, and factories. The increased\nuse of southern pine lumber steaming from the defense program and the accompanying\nexpended economic activity has caused demand to exceed supply. As a consequence,\ninflationary pressure has caused prices to rise greatly in excess of previously\nexisting industry levels. Such price increases have markedly outstripped cost\nadvances. Warnings to industry members to reduce prices to reasonable levels have\nfailed to secure more than temporary price reductions. Those producers who have\nmanifested & willingness to cooperate with the Government have been unable effec-\ntively to keep prices down because of the large number of operatore who have con-\nsistently maintained high prices. Under these circumstances, voluntary cooperation\nwith the request of the Office of Price Administration and Civilian Supply to\nmaintain reasonable prices would subject those complying with the request to unjust\ndiscrimination.\nAccordingly, under the authority vested in me by Executive Order No. 8734, it\nis hereby directed that:\n1312.26 Maximum Prices for Southern Pine Lumber. On and after September 5,\n1941, regardless of the terms of any contract of sale or purchase, or other\ncommitment, no person shall sell, offer to sell, deliver, or transfer, for domestic\nor export use, any southern pine lumber for shipment originating at the mill (rather\nthan at a distribution yard), at prices higher than the maximum prices set forth in\nAppendix 4, incorporated herein as 1312.34.\"\nRegraded Unclassified\n. 1312.28 so 1312.34, inclusive issued pursuant\nPM\n951\n126\nto the authority contained In Executive Order\nNo. 8734\n1313.27 Less than Maximum Prices. Lower prices than those set forth in Apper-\ndix A. may be charged, demanded, paid, or offered.\"\n1312.28 Evasion. The price limitations not forth in this Schedule shall not be\novaded by unusual charges for extending credit or for early delivery, by charges for\ndelivery which exceed the actual cost of such delivery, by unnecessarily routing lum-\nber through a distribution yard, or by other direct or indirect methods. The seller\nshall in all cases give the purchaser the option of making his own transportation\narrangements,\"\n1312.29 Records and Reports, Every person who, during any calendar month, shall\nsell 34,000 pounds or more of southern pine lumber for shipment originating at the\nmill shall keep for inspection by the Office of Price Administration and Oivilian\nSeculy, for & period of not less than one year, & complete and accurate record of\nevery such sale made during such month, showing the date thereof, the name of the\nbuyer, the prices, and the quantities and grades sold. Persons affected by this\nSchedule shall submit such reports to this Office as it may from time to time\nrequire.\"\n1312.30 Enforcement. In the event of refusal or failure to abide by the price\nlimitations and other provisione contained in this Schedule, or in the event of any\nevasion or attempt to evade the price limitations or other provisions contained in\nthis Schedule, the Office of Price Administration and Civilian Supply will malce every\neffort to assure (a) that the Congress and the public are fully informed thereof, (b)\nthat the powers of the Government are fully exerted in order to protect the public\ninterest and the interests of those persons who conform to this Schedule, and (a) that\nthe procurement services of the Government are requested to refrain from purchasing\nsouthern pine lumber from those persons who fail to conform to this Schedule. Per-\nsons who have evidence of the demand of prices above the limitations set forth, of\nany evasion or effort to evado the provisions hereof, or of speculation, or manipule-\ntion of prices of southern pine lumber, or the hoarding or accumulation of unnecessary\ninventories thereof, are urged to communicate with the Office of Price Administration\nand Civilian Supply.\"\n127\n- 3 -\nPM 961\n1312.31 Modification of the Schedule. Persons complaining of hardship or\ninequity in the operation of this Schedule may apply to the Office of Price\nAdministration and Civilian Supply for approval of any modification thereof or\nexception therefrom,\"\n1312.32 Definitione. When used in this Schedule, the term\n(a) \"person\" means an individual, partnership, association, corporation,\nor other business entity. Tue term includes, without restricting the generality\nof the foregoing, any mill operator, manufacturer, commission salesman, manu-\nfacturer's representative, concentration yard operator, wholesaler, wholesale\ndistributor, wholesaler's agent, or retailer.\n(b) \"southern pine\" means the botanical species of short leaf pine (Pinus\nechinate). loblolly pine (Pinus taeda), slash pine (Pinus caribaea), longleaf\npine (Pinus palustris), or any other Pinus species known commercially au\n\"southern pine\".\n(c) \"mill\" means a manufacturing plant, concentration yard, or other\nestablishment which processes southern pine logs into lumber, or which processes,\nby saving, or by planing or other comparable method, at least 25 per cent of the\nsouthern pine lumber purchased or received by it within the 30 days immediately\nprior to the transaction subject to this Schedule,\n(d) \"distribution yard\" means & wholesale or retail lumber yard which\npurchases or receives southern pine lumber from a mill or from another distribu-\ntion yard for purposes of unloading, sorting, and resale or redistribution, which\nregularly maintains a stock of such lumber, and which processes, by sawing, or by\nplaning or other comparable method, less than 25 per cent of such lumber 80\npurchased or received by it within the 30 days immediately prior to the trans-\naction subject to this Schedule.*\n1312.33 Effective Date of the Schedule. This Schedule shall become effect-\nive September 5, 1941.*\nRegraded Unclassified\n128\nPN 961\n- 4 -\n1312.34\nAPPENDIX A\n(a) Mazimum f.o.b. mill prices per 1,000 fect board measure:\nBoards, Shiplap, and Fencing\nGrade\nRandom\nStandard\nB'\n10'\n18'\n14'\n16'\n18' and 20'\nLength\nLength\nLength\nLength\nLength\nLength\nLength\nLongth\nNo. 1\n1 I 3)\n$31.00\n$33.00\n$31.00\n$33.00\n$33.00\n$33.00\n$34.50\n$36.00\n1 x 4)\n1 x 8\n31.00\n31.00\n31.00\n31.00\n31.00\n31,00\n32.50\n36.00\n1 X 8\n31.00\n34.00\n34.00\n34,00\n34.00\n34.00\n35.50\n37.00\n1 x 10\n33.00\n35.00\n35.00\n38.00\n35,00\n35.00\n36.50\n38,00\n1 I 12\n41.00\n43.00\n43.00\n43.00\n43.00\n43.00\n44,50\n46.00\nNo. 2\n1 X 3)\n24.00\n23.00\n24.50\n24.50\n25.00\n25.00\n25.50\n27.00\n1 x 4)\n1 A 6\n25,00\n24.00\n25.50\n25,50\n26.00\n26.50\n27.00\n29.00\n1 x B\n25.00\n24.00\n25.50\n25.50\n26.00\n26.50\n27.00\n29.00\n1 x 10\n25.50\n24,50\n27.00\n27.50\n27.50\n28.00\n28.50\n30.00\n1 x 12\n26.50\n25,50\n28.50\n26.50\n23.00\n29.50\n30.00\n33.00\nNo. 3\n1 x 5)\n1 J. 4)\n16,00\n1 x 6\n19,00\n1 x 8\n20,00\n1 X 10\n26.00\n1 X 12\n20.00\nFor Kiln Dried, add $1.50\nFor Novelty Siding, all patterns, add $2.00\nFor odd Lengths, use the price of next highest even length.\n1/\nStandard Lengths are 41 to 20', inclusive, and the following percent=\nage of short longths may be included in all shipmento in which the\nlengths are not specifically restricted:\nNo. 1\n5% 8-foot\nNo. 2\n5% 4-foot\n1% 6-foot\n5% 8-foot\nRegraded Unclassified\n129\n- 5 -\nPM 961\nRandom\n8'\n9'\n10'\n12'\n14'\n16'\n18' and 20'\nGrade\nLength\nLength\nLength\nLength\nLength Length Leneth Length\nNo. 1\n2 I 3)\n$28.50\n$27.50\n$28.50\n$28.50\n$28.50\n$28.50\n$31.00\n$34.00\n2 2 4)\n2 I 6\n28.00\n36.50\n27.50\n27,50\n28,00\n28.00\n28.50\n32.50\na x B\n29.50\n28.00\n29.00\n29,00\n29,50\n29.50\n32.00\n35,50\n2 I 10\n33.50\n31.00\n32.50\n32.50\n33.50\n33.50\n35,50\n39.50\n2 I 12\n36.50\n33.50\n35.00\n35.00\n36.50\n36,50\n39.00\n43.50\nNo. 2\n2 x 3)\n26.00\n26,00\n25.00\n26.00\n26.00\n26,00\n27.50\n29,50\na K 4)\n2 R 6\n25,00\n25,00\n25,00\n25.00\n25.00\n25.00\n26.50\n28.50\n2 I 8.\n27.00\n27.00\n27.00\n27.00\n27.00\n27.00\n28.50\n31.50\n2 I 10\n28,50\n28.50\n28,50\n28,50\n28.50\n28.50\n30.50\n33,50\n2 I 12\n29.50\n39.50\n29,50\n29.50\n29.50\n29.50\n31.50\n35.00\nNo. 3\n2 I 3)\n18,50\n2 X 4)\n2 I 6\n18.00\n2 X 8\n19,00\na I 10\n19,50\n2 I 12\n20,00\nFor working to Shiplap, Center Match, or Dressed and\nMatched, add $1.00\nFor Kiln Dried, add $1.50\nTimbers\n12' to 14¹ Length\n18' to 20' Length\nSmall Timbera:\nNo. 1\nNo. 2\nNo. 1\nNo. 2\n3 I 4\n$30.50\n$26.50\n$34.50\n$28.50\n3 R 6\n31.50\n27.50\n35,50\n29.50\n4 M 4\n30.50\n26,50\n35.00\n29.00\n4 x 6\n31.00\n27.00\n35.50\n29,50\nUtility Timbers and\nHeavy Joists:\n3 I 8\n35,00\n28,00\n39.00\n31.00\n3 I 10\n35.50\n28,50\n40.00\n32.00\n3 I 12\n37.00\n30.00\n41.00\n33,00\n4 x B\n36.00\n29.00\n40.50\n32.50\n4 I 10\n36.50\n29.50\n41,00\n33,00\n6 I 6\n37.00\n30.00\n41,00\n33.00\n6 I 8\n37.00\n30.00\n41,00\n33.00\n6 I 10\n38.50\n31.50\n42,50\n34,50\n8 I 8\n38.50\n31.50\n42.60\n34,50\nRegraded Unclassified\n130\n-6-\nPM 961\nCeiling and Flooring, Plain End (no heart specification)\nStandard Lengths 2/\nGrade\nGrade\nGrade\nGrade\nGrade\n3 & Better\n0\nD\nNo. 2\nNo. 3\nEdge Grain:\n1 X 3\n$60.00\n$50.00\n$35.00\n1 R 4\n58.00\n48.50\n34.00\nYear Edge Grain:\n1 x 3\n51.00\n44,00\n34.00\n1 x 4\n49.00\n42.50\n33.00\nFlat Grain:\n1 x 3\n43.00\n40.00\n31.00\n$25.00\n$18.00\n1 x 4\n42.00\n39.00\n30.00\n24.50\n17.50\nCeiling and Flooring, Ind Matched (no heart specification)\nStandard Dengths 3/\nGrade\nGrade\nGrade\nB & Better\n0\nD\nEdge Grain:\n1 x 3\n$52.50\n$45.50\n$32.00\n1 x 4\n48.50\n43.00\n30.00\nNear Edge Grain:\n1 x 3\n45.00\n40.00\n31.00\n1 x 4\n43.00\n38.50\n29.50\nFlat Grain:\n1 x 3\n25.50\n33.00\n25.00\nl x 4\n34.00\n33.00\n24.00\n2/ Standard lengths are 4' to 20', inclusive, and the following percentages\nof short lengths may be included in all shipments in which the lengths\nare not specifically restricted:\nA and B\n5% a and/or 9-foot\nC\n5% 6 and/or 7-foot\n5% 8 and/or 9-foot\nD and No. 2\n..\n5% 4 and/or 5-foot\n5% 6 and/or 7-foot\n5% 8 and/or 9-foot\nNo. 3\n.....\nNot to exceed 20% 4 and S-foot lengths\n3/ Standard lengths of End-Mntched Flooring shall be 2' to 16', inclusive,\nnested in bundles 8' and longer in multiple of 1 foot. The nominal\nlength of End-Matched Flooring shall be averaged to the nearest foot,\nexcept that 19\" shall be the minimum length in A, B and c, and\n12\" shall te the minimum in D. (Examplo: The 7-foot lengths\nare above 6'6\" to and including 7'6\".)\nRegraded Unclassified\n131\n- 7 -\nPM 961\nFINISH\nGrade B & Better\nUnder 8'\nStandard Lenrthe 1/\n1 x 3\" & 4\"\n$49.00\n$51.00\n1 I 6\"\n49.50\n51,50\n1 X 8\"\n51,50\n53,50\n1 x 5\" & 10\"\n57.00\n59.00\n1 I 12\"\n68.00\n70.00\nGrade 0\n1 X 3\" & 4\"\n$45.00\n$47.00\n1 X 6''\n45.50\n47,50\n1 X 8\"¹\n47.50\n49.50\n1 X 5\" & 10\"\n51.00\n53.00\n1 I 12\"\n56,00\n58.00\nFor specified lengths, add $2.00\nSIDING\nStandard Lengths\nGrade\nGrade\nGrade\nGrade\nGrade\nB & Better\nC\nD\nNo. 2\nNo. 3\nDrop Siding:*\nPlain\nEnd\n4\"\n$45.00\n$42.00\n$33.00\n$28.50\n$20.00\n11\n11\n6''\n45,00\n42.00\n33,00\n28.50\n20.00\n11\n11\n8\"¹\n46.50\n43,50\n34.50\n30.00\n23.00\nEnd Matched:4''\n37.50\n35.00\n27.00\n11\n11\n6''\n37.50\n35.00\n27.00\n11\n11\n8\"¹\n40,00\n37.00\n29.00\n*All patterns\nBevel Siding\n47.00\n44,00\n35.00\n30.50\n22,00\nStandard lengths are B' to 20', inclusive, and in shipments of standard\nlengths, 5% of 8-foot in \"0\" and better grades shall be permitted.\n5/ Standard lengths are 41 to 20', inclusive, and the following percentages\nof short lengths may be included in all shipments in which the lengths\nare not specifically restricted:\nA and B\n5% 8 and/or 9-foot\nC\n5% 6 and/or 7-foot\n5% 8 and/or 9-foot\nD and No. 2\n5% 4 and/or 5-foot\n5% 6 and/or 7-foot\n5% 8 and/or 9-foot\nNo. 3, not to exceed 20% 4 and 6 foot.\n132\n-8-\nPM 961\n(b) For mixed car shipments, $2.00 additional per 1,000 feet board measure may\nbe charged. & mixed car shipment consists of three or more of the following items of\nat least 4,000 feet board measure per item, or two or more of the following items of\nat least 8,000 feet board measure per item: finish, timbers, ceiling, flooring, or\nsiding, or any width of boards, shiplap, fencing, or dimension.\n(c) A delivered price in excess of the maximum f.o.b. mill prices set forth in\n(a) hereof may be charged, consisting of such maximum prices plus actual transporta-\ntion costs to the extent that such costs are paid by the seller, In computing such\nactual transportation costs, the parties may adopt the practice of charging a sum\nequivalent to the one-quarter of a dollar nearest 40 such actual transportation coets.\nIn addition, they may adopt the estimated average weights of southern pine per thous-\nand feet board measure(worked to standard sizes unless otherwise indicated) as\nfollows:\nLonglesf\nShortleaf\nFlooring\n(Ceiling and Flooring, Plain End and End Matched)\n1 I 3\" (For Hollow Back deduct 100 lbs.)\n2000\n1800\n1 x 4\"\nH\nIf\n\"\n#\nIf\na\n2100\n1900\nDrop Siding\n(Siding)\n1 I 6\" (Pat. 116)\n2000\n2000\n2100\n2100\n1 x 8\" and 10\" (Pat. 116)\n1 I 6\" (Pat. 117)\n1700\n1700\n1800\n1800\n1 I 8\" and 10\" (Pat. 117)\n1 x 6\" (other patterns)\n1800\n1800\n1 I 8\" and 10\" (other patterns)\n1900\n1900\nBevel and SE Siding from 1\"\n1100\n1000\n1400\n1300\nBevel and SE Siding from 1-1/4\"\nThe average weights shown are based upon test weights made upon large quantities of\neach item of southern pine lumber manufactured by the subscribers to the Southern\nPine Association, AS set forth in 1939 Standard Specifications for Southern Fine\nLumber, of the Southern Pine Association, New Orleans, Louisiana, and adopted by\nthe Board of Governors of the Southern Pine Inspection Bureau of the Southern Pine\nAssociation on May 28, 1940, 8.0 the official grading rules of the Bureau.\nRegraded Unclassified\n- 9 -\nPM 961\n133\nStrips and Boards (1 inob)\n(Soards. Shipimp, remoined and Finish)\nLoneleef\nThortleaf\n1 1 2ª to 1 I 10\" $18 or 828 25/32\"\n2700\n2500\n1 1 12\n518 or 828 25/32\n2:00\n2600\n1 1 2ª to 1 M 10\" STS or 846 25/32\"\n2600\n2400\n1 x 12\"\n539 or S4S 25/32\"\n2700\n2500\n1 1 2\" to 1 I 4ª D&M\n2100.\n1900\n1 I 6\"\nD&M or Shiplap\n2400\n2000\n1 I 8\" to 1 H 10\" D&M or Shiplap\n2500\n2700\n1 I 12\"\nD&M or Shiplap\n2600\n2.00\n1 I 2\" to 1 I 10\" Rough\n3400\n2230\n1 I 12\"\nRough\n3500\n3300\nFor 3/4\" dressed boards deduct\n100\n100\nfor 5/8\" boards, all workings, deduct\n500\n500\nFor 11/16\" boards, all workings. deduct\n300\n300\nFor 13/16\" boards, all workings, add\n100\n100\nFor resawing, deduct for each out\n200\n200\nFor Ripping, no deduction\nFor 1-1/4\" and 1-1/2\", add\n300\n300\n2ª Dimension, Factory Flooring. and Roof Decking\n(Disension)\n2 I 2ª to 2 I 8\" Rough\n3400\n3300\n2 X 10° & 2 I 12\" Rough\n3500\n3400\nI 2\" to 2 I 8\" Dragged to 1-5/8\"\n2700\n2500\n2 I 10\" & 2 = 12\" Dressed to 1-5/8\"\n2800\n2600\nFor 1-3/4\" add\n400\n400\nfor IMM, SL & Gr. for Splines, deduct\n200\n200\n2 I 4\" to 2 I 12\" Rough green\n4500\n4500\n2 I 4\" to 2 I 12\" green, dressed 1-5/8*\n3800\n3800\nHeavy Joista, Timbers, etc. (over 2\" thick)\n(Timbers)\nRough, green\n4500\n4500\n548 1/4\" scant, green\n4200\n4200\n548 3/8\" scant, green\n4000\n4000\n548 1/2\" scant, green\n3800\n3800\nT&G, SL & Gr, for splines, deduct\n300\n300\nIssued this 16th day of August, 1941.\nloon Handerson\nAdministrator\nCERTIFIED TO BZ & TRUE COPY OF THE ORIGINAL\nJohn 1. Eann, Deputy Administrator\nRegraded Unclassified\nOFFICE FOR EMERGENCY MANAGEMENT\n134\nOffice of Price Administration and Civilian Supply\nFor Immediete Release\nAugust 16, 1941\nPM 962\nManufacturers using certain forms of wrought aluminum will be able to make\nmore uniform arrangements for reconversion of their scrap into finished material\nunder B. provisional amendment to Price Schedule No. 2, Aluminum Scrap and Second-\nary Aluminum Ingot, announced today by the Office of Price Administration and\nCivilian Supply.\nThe amendment, which broadens the exemption of toll fabrication from the\nschedule, was decided upon after consultation with the Division of Priorities,\nOffice of Production Management. It is not expected to alter the present flow\nof scrap.\nHeretofore, the price schedule operated to oblige converters to charge a\nhigher conversion fee for some forms of wrought aluminum plant scrap, especially\nsheet scrap, than for others. As result of the amendment, the same low fee can\nbe charged for all types of wrought scrap, other than forging scrap, thus per-\nmitting the converter to reflect his lower costs of handling this type of scrap\nas compared with the ordinary run of unsegregated material. Provision 18 made\nto prevent toll charges from rising out of proportion to the existing prices for\nscrap and ingot.\nTo obtain the benefit of the amendment, wrought aluminum scrap, excluding\nforgings, must be segregated as to alloy and delivered by the make of the scrap\nto a processor for reconversion into material similar to that from which the\nscrap was derived and pursuant to A written agreement for the return of an equiv-\nalent amount of refabricated material. Further, the toll agreement must be ap=\nproved by the Director of Priorities.\nThe policy of encouraging return of high-grade segregated ecrap to the 07-\niginal source BO a.B to avoid degrading the metal and its diversion to non-essen-\ntial uses in thus fostered.\nScrap from aluminum castings 16 not included in the amendment.\nRegraded Unclassified\n135\n2X 962\nText of the amendment follows:\nTITLE 32 - NATIONAL DEFENSE\nCHAPTER II - OFFICE OF PRICE ADMINISTRATION\nAND CIVILIAN SUPPLY\nPart 1302 - Aluminum Borep and Secondary Aluminum Ingot\nAMENIMENT OF PRICE SCHEDULE NO. 2\nPrice Schedule No. 2, establishing maximum prices for aluminum\nscrap and secondary aluminum ingot, is hereby amended, effective August\n13, 1941, by striking Section 1302.5 therefrom and substituting in its\nplace the following:\n1302.5. Conversion of Scrap of Behalf of a Maker.\nThe Maximum prices herein established shall have no application to\nthe sale, delivery, or transfer of plant scrap, made from wrought aluminum\n(except forgings) as distinguished from cast aluminum, which is segregated\nas to alloy and is delivered, in accordance with permission or requirement\nof the Director of Priorities, Office of Production Management, by the\nmaker of the scrap to a producer of the type of processed material from\nwhich the scrap was made, for conversion into material of such type, and\npursuant to a written agreement that an equivalent amount of similar pro-\ncessed material will be returned to the maker of the scrap; provided,\nhowever, that the total charge for such conversion and such returned pro-\ncessed material shall not exceed the sum of (a) the amount by which the\ncurrent price of primary aluminum ingot exceeds the maximum price for the\nscrap as set forth in Column II of Appendix A of this Schedule plus (b) the\namount by which the current price of the returned processed material exceeds\nthe current price of primary aluminum ingot plus (c) the amount paid for\nthe scrap in any case in which the transaction takes the form of a purchase\nof scrap and a sale of processed material.\"\nSection 1302.5 issued pursuant to authority contained\nin Executive Order No. 8734.\nIssued this 14th day of August, 1941.\nLeon Henderson\nAdministrator\nCERTIFIED TO BE A TRUE COPY OF THE ORIGINAL:\nJohn 1, Hamm\nDeputy Administrator\nRegraded Unclassified\n136\nOFFICE FOR EMERGENCY MANAGEMENT\nOFFICE OF PRICE ADMINISTRATION AND CIVILIAN SUPPLY\nFor Tuesday AM Papers\nPM 969\nAugust 19, 1941\nCopper scrap, which has been selling at levels completely out of line with\nthe price of copper, is restored to a fair relationship in Price Schedule No. 20,\nannounced today by Leon Henderson, Administrator, Office of Price Administration\nand Civilian Supply,\nThe scrap ceiling establishes price differentials of from 2 centa to 4 cente\na pound below 12-cent copper for the leading kinds and grades of scrap. A uniform\ndealers' margin of 3/4-cent a pound for collecting, sorting. storing and shipping\nis aled allowed,\nScrap copper is & basic material in the production of electrolytic copper\nand copper and copper-alloy ingot, which are essential to the defense program and\ncivilian industry. Scrap prices in recent months have been bid up to & point\nwhere the usual spread between scrap and copper has been greatly altered and cust\ntom smelters and brass ingot makers have been largely deprived of their usual\nsupplies. This situation, if allowed to continue, would have forced defense\nusers of copper, which is subject to priority control, to draw more heavily on\nsupplies of new metal, Thus, allocation problems would have multiplied to the\ndetriment of the defense effort and industry at large.\nTop prices are fixed in the schedule at 10 cente per pound for No. 1 copper\nwire and No, 1 heavy copper; 9 cents a pound for No. a copper wire and mixed\nheavy copper (each containing 96% of copper). and 8 cents a pound for light copper\n(containing 92% copper). These maximume apply to sales by \"makers\" of scrap,\ndelivered to the buyer's plant or warehouse.\nAs heretofore stated, dealers are allowed a 3/4-cent per pound margin above\nthe foregoing prices for collecting, sorting, storing and shipping the types of\nraded Unclassified\n137\n-2-\nPM 969\nscrap covered in the schedule.\nA premium of one-half cent a pound may be charged by makers only, on ship-\nments aggregating 40,000 pounds or more and made at one time. This premium\nrecognizes the practice of certain large makers of returning their scrap directly\nto a user,\nIf quantity deliveries are made by truck, a shipment of 40,000 pounds will\nbe considered to have been made \"at one time\" ir such an amount is delivered to\nthe buyer within two days after the first part of the shipment is picked up by\ntruck.\nA differential of 0,11775 cent per pound may be added to or subtracted from\nthe ceiling prices for each 1% variation above or below the copper content of\n96% in the case of No. 2 copper wire and mixed heavy copper, and 92% in the case\nof light copper, with proportionate adjustments for variations of less than 1%.\nThe schedule prices will applyon and after August 19, 1941, irrespective of\nexisting contracts. However, application may be made to OPACS for permission to\ncarry out prior arrangements in cases where losses may result in the disposition of\ninventory acquired prior to August 19, 1941, at higher than the maximum prices.\nA time limit of October 19, 1941, is fixed for the filing of such applications.\nText of the schedule is attached.\nRegraded Unclassified\n138\nTITLE 32 - NATIONAL DEFENSE\nPM 969\nCHAPTER II - OFFICE OF PRICE ADMINISTRATION\nAND CIVILIAN SUPPLY\nPART 1309 - COPPER AND COPPER ALLOYS\nPrice Schedule No. 20 - COPPER SCRAP\nThe Office of Price Administration and Civilian Supply is charged with the\nmaintenance of price stability and the prevention of undue price rises and price\ndislocation. Copper scrap is a basic material for the production of electrolytic\ncopper, copper ingot and copper alloy ingot, all of which are importent in the man-\nufacture of many defense products. Requirements of the defense program have in-\ncreased the demand for copper scrap causing its price to rise above levels which\nare in proper relation to the price lovel of primary materials. Price instability\nand dislocations injurious to the national defense and civilian economy have re-\nsulted. As a consequence, it has become difficult and in some cases impossible for\nthe trado to cooperate with the Government in preventing inflationary price move-\nments, On the basis of information secured by independent investigation by this\nOffice, and after consultation with the trade, I find that the maximum prices set\nforth below constitute reasonable limitations on the price of copper scrap.\nTherefore, under the authority vested in ne by Executive Order 8734, it is\nhereby directed that:\n1309.61, Maximum Prices for Copper Scrap Sold by the Maker Thereof, On and\nafter August 19, 1941, regardless of the terms of any contract of sale or purchase\nor other commitment, except as provided in Section 1309.64 below, no maiter of\ncopper scrap shall sell, offer to sell, deliver, or transfer copper scrap made by\nhim and no person shall buy, offer to buy, or accept delivery from the maker of such\ncopper scrap at prices higher than the prices set forth in Column I of Appendix A\nhereof, incorporated herein 8.8 Section 1309.70.\nRegraded Unclassified\n138\nTITLE 32 - NATIONAL DEFENSE\nPM 969\nCHAPTER XI - OFFICE OF PRICE ADMINISTRATION\nAND GIVILIAN SUPPLY\nPART 1309 - COPPYA AND COPPER ALLOYS\nPrice Schedule No. 20 - COPPER SCRAP\nThe Office of Price Administration and Civilian Supply is charged with the\nmaintenance of price stability and the prevention of undue price rises and price\ndislocation. Copper scrap is a basic material for the production of electrolytic\ncopper, cooter ingot and copper alloy ingot, all of which are importent in the nen-\nufacture of many defense products, Requirements of the defense program have in-\ncreased the demand for copper scrap causing its price to rise above levels which\nare in proper relation to the price lovel of primary materials. Price instability\nand dislocations injurious to the national defense and civilian economy have re-\nsulted. As FL consequence, it has become difficult and in some cases impossible for\nthe trade to cooperate with the Government in preventing inflationary price move-\nments, On the basis of information secured by independent investigation by this\nOffice, end after consultation with the trade, I find that the maximum prices set\nforth below constitute reasonable limitations on the price of copper scrap.\nTherefore, under the authority vested in ne by Executive Order 8734, it 10\nhereby directed that:\n1309.61, Maximum Prices for Copper Scrap Sold by the Maker Thereof, On and\nafter August 19, 1941, regardless of the terms of any contract of sale or purchase\nor other commitment, except as provided in Section 1309.64 below, no maker of\ncopper scrap shall sell, offer to sell, deliver, or transfer copper scrap made by\nhis and no person shall buy, offer to buy, or accept delivery from the maker of such\ncopper scrap at prices higher than the prices set forth in Column I of Appendix A\nhereof, incorporated herein as Section 1309.70.\nRegraded Unclassified\n139\nEll 969\n2 -\nr prices then those set forth in Column I of Appendix 1 may, however, be charged,\ndemanded, paid or offered.\n1309.61 to 1309, 70, inclusive issued pursuant to the\nauthority contained in Executive Order No. 6734.\n1309.62. Maximum Prices for Copper Scrap Sold by Persons Other Than the Maker,\nCa and after August 19, 1941, regardless of the terms of any contract of sale or\npurchase or other commitment, except as provided in Section 1309.64 below, no person\nother than the maker of the copper scrap sold, offered for sale, delivered, or trane-\nferred, shall sell, offer to sell, deliver or transfer copper scrap and no person\nshall buy, offer to buy, or accept delivery of copper scrap from any person other\nthan the maker of such copper scrup, at prices higher than the prices set forth in\nColumn II of Appendix A. Lower prices than those set forth in Column II of Appendix\n& say, however, be charged, demanded, paid or offered.*\n1309.63. Evasion. The price limitetions set forth in this Schedule shall not\nbe evaded whether by direct or indirect means in connection with a purchase, sale,\ndelivery or transfer of copper scrap, alone or in conjunction with any other mater-\nial, or by way of any commission, service, transportation or other charge or discount\npremium, or other privilege or by tying agreement or other trade understanding or\notherwise,'\n1309.64 Permission to Carry out Contracts Entered into Prior to August 19,\n1941. Any person who has, prior to August 19, 1941, entered into a contract of\nsale or other firm commitment calling for the delivery or transfer, after that date,\nof copper ecrap at prices higher than the maximum prices established by this Sched-\nule may make application to the Office of Price Administration and Civilian Supply\non forms which will be furnished upon request, for permission to carry out such con-\ntract or commitment at the contract price. Such permission will be granted only to\nextent necessary to protect the applicant against loss in the disposition\nof inventory acquired prior to August 19, 1941 at prices higher than the\nRegraded Unclassified\n140\n- 3 -\nPM 969\nseximum prices established by this Schedule and held on that date by (a) the\napplicant. or (b) any other person for delivery to the applicant under R firm\ncommitment entered into with the applicant prior to August 19, 1941. Such appli-\ncation shall be filed with the Office of Price Administration and Civilian\nSupply on or before October 19, 1941.\n1309.65. Records. Every person making purchases or sales of copper\nscrap after August 19, 1941, shall keep for inspection by the Office of Price\nAdministration and Civilian Supply, for B period of not less than one year,\ncomplete and accurate records of (e) each such purchase or sale showing the\ndate thereof, the name and address of the buyer or seller, price paid or\nreceived, and the quantity in pounds or tons of each kind or grade purchased or\nsold: and (b) the quantity in pounds or tone of copper scrup (1) on hand, and\n(11) on rder as of the close of each calender month.\n1309.66. Enforcement. In the event of refusal or failure to comply\nwith the price limitations, record requirements or other provisions contained\nin this Schedule or in the event of any evasion or attempt to evado price\nregulations or other provisions contained in this Schedule this Office will\nmalte every attempt to assure: (a) that the Congress and the public are fully\ninformed of any failure to abide by the provisions of this Schedule and (b) that\nthe powers of the Government arefully exerted in order to protect the public\ninterest and the interests of those persons who conform to this Schedule.\nPersons who have evidence of the offer, receipt, demand or payment of prices\nhigher then the maximum prices established by this Schedule, or of any evasion\nor effort to evade the provisions hereof or of speculation, or manipulation of\nthe prices of copper scrap or of the hoording or accumulation of unnecessary\ninventory thereof are urged to communicate with the Office of Price\nAdministration and Civilian Supply.\n1309,67. Modification of the Schedule. Persons complaining\nRegraded Unclassified\n141\nPM 969\nof hardship or inequity in the operation of this Schedule may apply to the Office\nof Price Administration and Givilian Supply for approval of any modification\nthereof or exception therefrom.\"\n1309,68. Definitions. When used in this Schedule the term\n(a) \"Person\" includes en individual, partnership, association,\ncorporation, or other business entity.\n(b) \"Copper scrap\" means the kinds and grades of scrap set\nforth in Section 1309.70 of this Schedule.\n(c) \"Make of copper scrap means the person who first sells,\noffers for sale'or delivers copper scrap such 80 (1) any manufacturer, fabricator,\nor other industrial user of copper who, as an incident to his manufacturing pro-\ncees, fabricating or other industrial uses, produces copper scrap or (11) any per-\nson who, in his business or as an incident to his business, demolishes or dis-\nmentles structures, machinery, vehicles, equipment, or power, telegraph and tele-\nphone lines, and removes copper scrap therefrom for the purpose of sale,*\n1309.69. Effective Date of the Schedule. This -schedule shall be effect-\n1ve August 19, 1941.\n1309.70. Appendix A - Maximum Prices for Couper Scrap, For the purposes\nof this Schedule, each kind or grade of scrap herein set forth shall include all\ntypes and qualities of scrap falling within the broad category named. However,\nthe meximum prices herein net forth are applicable to the principal kinds or\ngrades of copper scrap which meet generally accepted maximum standards in the\ntrade as, for instance, the classifications in the Standard Classification for\nOld Metals, Circular \"0\", of the National Association of Waste Material Dealers,\nInc., effective as of June 1, 1940. Scrap which fails to meet such standards\nshould be sold at normal differentials below the established maximum prices,\nRegraded Unclassified\n- 5 -\nPM 969\n142\nKind or Grade of Boran\nMarimum Prices per Pound of Material\nDeliyered Buyer's Plant or Verehouse\nColumn I\nColumn II\nSale by Maker\nSale by Other than Maker\nNo. 1 copper wire\n10#\n10 3/44\nNo. 1 heavy copper\n10$\n10 3/44\nNo. 2 copper wire\n(containing 96% copper)\n94\n9 3/44\nMixed heavy copper\n(containing 96% copper)\n9d\n9 3/44\nLight copper\n(containing 92% copper)\n8#\n8 3/4#\nIf the copper content of No. 2 copper wire or mixed heavy copper is more\nor less than 96%, the maximum price per pound of material set forth above shall be\nincreased or decreased at the rate of 0,11775 cente for each 1% vaiation in the\ncopper content with proportionate adjustments for variations of less than 1%.\nIf the copper content of light copper is more or less than 92%\ntheirmximmprice per pound of material set forth above shall be increased or\ndecreased at the rate of 0.11775 cente for each 1% variation in the copper content\n4th proportionate adjustments for variations of less than 1%.\nQUANTITY DIFFERENTIAL ON SALE BY MAKER\nPremium on shipment of 40,000\npounds or more at one time\n1/20 per pound\nThe shipment necessary to obtain the quantity differential may be made\nup of one or more of the kinds of copper scrap listed in this section. If delivery\nis made by truck; B. shipment of 40,000 pounds will be considered to have been made\n\"st one time\" for the purposes of this Schedule, if such amount is delivered to\nthe buyer within two days after the first portion of the shipment 18 picked up by\ntruck.\nThe quantity differential applies only to sales by makers and not to\nbales by other than maker.*\nIssued this\n18 th day of August, 1941.\nLeon Henderson\nAdministrator\nCERTIFIED TO BE A TRUE COPY OF THE ORIGINAL\nJohn B. Harm, Deputy Administrator\n143\nOFFICE FOR EMERGENCY MANAGEMENT\nOffice of Price Administration and Civilian Supply\nFor Wednesday AM release\nPM 976\nAugust 20, 1941\nBecause only a slight hosiery mill demand for acetate rayon yarn has\ndeveloped, the Office of Price Administration and Civilian Supply today amended\nits rayon yarn allocation program to release virtually all of the acetate yarn\nthus far accumulated by rayon yarn producers for sale to manufacturers of hosiery.\nRayon filaments fall into three general categories; viscose, cuprammonium\nand acetate, depending on the process used in their production. The OPACS allo-\ncation program, which was designed to provide hosiery mills and other former\nusers of silk with sufficient supplies of rayon yarn to enable them to continue\noperations, made no distinction among the three types.\nHosiery manufacturers have found the viscose and cuprammonium yarn to be\nmore satisfactory for the knitting of hosiery and, hence, have not drawn upon\nthe stocks of acetate yarn thus far set aside for their benefits.\nRather than require the retention of this acetate yarn until the end of\nthe current month, when re-distribution would be permitted automatically under\nterms of the original program, OPACS has decided to release for immediate sale\n95% of the acetate yarn accumulated for use by hosiery manufacturers.\nThat part of the program which dealt with the setting aside of rayon yarn\nfor former users of silk, other than hosiery manufacturers, is not affected by\nthe new amendment, and accumulation of such yarn, whether acetate, viscoss, or\ncuprammonium, is still required.\nText of the amendment is attached.\n144\nPM 975\nTITLE 32 - NATIONAL DEFENSE\nCHAPTER XI - OFFICE OF PRICE ADMINISTRATION AND CIVILIAN SUPPLY\nPART 1337 - Rayon\nCivilian Allocation Program for Rayon Yarn\nSection 1337.1, as amended, is hereby further amended by adding\nat the end thereof the following:\nProvided, further, that during the period from the date of this\nprogram to midnight August 31, 1941, 95% of that portion of the above 70%\nthat consists of acetate rayon yarn may be disposed of immediately and\nwithout restriction, but nothing herein shall be deemed in any way to\nalter the requirements of 1337.3 hereof.\nIssued this 19th day of August, 1941.\n/s/\nLeon Henderson\nAdministrator\nCertified to be a true copy of the original\n/=/\nJohn E. Hamm\nDeputy Administrator\nRegraded Unclassified\nOFFICE FOR EMERGENCY MANAGEMENT\n145\nOffice of Price Administration and Civilian Supply\nismediate Release\nPM 977\nthe 19, 1941\nAllocation of available supplies of Freon refrigerant gases to usere and manu-\nfacturers of civilian refrigeration and air-conditioning equipment in the order of\nrelative importance to the public welfare is directed in a program announced today by\nthe Office of Price Administration and Civilian Supply.\nFreon is the proprietary name for several types of chlorinated hydrocarbon re-\nfrigerants produced only by Kinetic Chemicals, Inc., B. du Pont subsidiary. These are\nused in several types of domestic refrigerators, as well as in commercial and indus-\ntrial equipment and in all types of air-conditioning equipment, including railroad\ncars. Freon is manufactured from carbon tetrachloride, which in turn is made from\nchlorine. Heavy defense needs for this basic chemical have caused a shortage in\ncity of its derivatives,\n& senior classification is assigned in the program to maintenance of all types\nof refrigerating equipment now operating and existing air-conditioning equipment in\nhospitals, clinice, and sanitoria requiring Freon refrigerants.\nMaintenance of industrial air-conditioning equipment already installed ranks\nnext in preference, followed by maintenance of other air-conditioning equipment, their\nby manufacture of new refrigeration and air-conditioning equipment.\nCurrent supplies of Freon are expected to be adoquate for the maintenance of all\ninstalled refrigeration and air-conditioning equipment, but some doliveries for new\nunits my have to be deferred until the summer ice cream and air-conditioning season\nIn passed.\nCooperation of Fresh consumers in ossential if equitable allotment of available\napplies 1a to be achieved. OPACS suggests that (1) reasonable requirements should\nbe enticipated, but shipment of more than c. 30 days' supply should not be requested;\n(3) empty cylinders should be returned promotly, and (3) \"pooline\" of ordors by se-\n*Ato units of one ostablishment should be undertaken where feasible to reduce the\n=bar of cylinders required and to keep inventories from becoming excessivo.\nThe program, which will expire December 31, 1941, unless sconer terminated, will\nto administered by the Division of Priorities, Office of Production Management.\nText if the program is attached,\nRegraded Unclassified\nPM 977\n146\nTITLE 32 - NATIONAL DEFENSE\nCHAPTER XI - OFFICE OF PRICE ADMINISTRATION AND CIVILIAN SUPPLY\nPART 1335 - CHEMICALS\nCivilian Allocation Program for Chlorinated\nHydrocarbon Refrigerents\nThe total defense and civilian demand for certain chlorinated hydro-\ncarbon refrigerants is in excess of the available supply. It is necessary, there-\nfore, after military defense needs are satisfied, to provided for the equitable\nallocation of the residual supply among competing civilian demands.\nAccordingly, pursuant to and under the authority vested in me by\nExecutive Order No. 8734, particularly Section 2(a) thereof, the following program\nIn announced:\n1235.31 Allocation of Materials. Civilian uses of those chlori-\nnated hydrocarbon refrigerants enumerated in 1335.32 hereof shall be divided into\n(\nfour classifications as set forth in 1335.33 hereof, To the extent that supplies\nof these refrigerants are available for allocation among competing civilian demands,\nsupplies for civilian uses enumerated under Classification A shall be given primary\npreference. If it appears, in any month, that the available supply for that month\nvill exceed the amount estimated to be required for the uses enumerated under\nClassification A, supplies for civilian uses enumerated under Classification B\nshall be given secondary preference. If it appears, in any month, that the avail-\nable supply for that month will exceed the amount estimated to be required for the\nuses enumerated under Classifications A and B, supplies for civilian uses enumerated\nunder Classification C shall be given tertiary preference. If it appears, in any\nmonth, that the available supply for that month will exceed the amount estimated to\nbe required for the uses enumerated under Classifications A, 3, and c, the residual\nsup-ly shall be divided among users enumerated under Classification D. If it\nappears, in any month, that the available supply for any Classification is less\nthan the existing demand in that Classification, producers of such refrigerants\nshell allocate the available supply ratably among the users in accordance with the\nRegraded Unclassified\n147\nPM 977\n- 3 -\n1335.35 Enforcement. The foregoing program is to be administered\nand enforced by the Office of Production Management.*\n1335.36 Effective Date and Expiration. This program shall take\neffect on August 15, 1941 and shall, unless sooner terminated by the Administrator,\nexpire on December 31, 1941.*\nIssued this 15th day of August, 1941.\nLeon Henderson\nAdministrator\nCertified to be a true\ncopy of the original.\nJohn E, Hamm\nDeputy Administrator\nOFFICE FOR EMERGENCY MANAGEMENT\n148\nOffice of Price Administration and Civilian Supply\nFor Immediate Release\nhursday, August 21, 1941\nPM 981\nAction to curb the exploitation of civilian users of formaldohyde by certain\ndealers who have been charging as much as 47 cents B. pound, against manufacturers'\nrices of 6 cents a pound for comparable quantities, was taken yesterday by Leon\nlenderson, Administrator of the Office of Price Administration and Civilian Supply.\nthrough the imposition of ceiling prices.\nMaximum prices established by the schedule range from 4,25 cents to 9.5 cents a\npound, f.o.b. the five major shipping points, with freight oqualization, end are\nbased upon the highest list prices now being charged by the leading manufacturers.\nThe schedule does not apply to sales of formaldehyde in containers below 45 pounds,\nA shortage in supplies of formaldehyde, previously recognized by OPACS in its\nallocation program designed to reduce non-essential uses of the chemical, has result-\ned from the heavy demends of defense and civilian industry for synthetic resins.\nJespite the shortage, nanufacturers have maintained their prices at reasonable levels\nas have most joboors and dealers. Unfortunately, however, there are in the trade\nsome concerns which have successfully profiteered in formaldehyde.\nWhile this speculation at present involves only a small percentage of formalde-\nhyde sales, it is spreading rapidly and, if unchecked, will extend over a substantial\npart of the total surplies. Price stability under such circumstances would be on-\npreered.\nThe schedule allows a premium of one cent B pound over the ceiling prices for\ndeclars and suppliers selling fo waldehyde from local stocks. Any charges in excess\nof this margin, Mr. Henderson stated, will result in prompt action by OPACS directed\nat the profiteers,\nFormaldehyde is essential to the manufacture of synthetic resins for plastics\nand molding compounds, widely used in defense activities and civilian industry. In\naddition, it is important to agriculture, and to such industrial processes as the\nanuf-cture of textiles and wallnaper.\nIn determining the maximum prices, OPACS consulted with the leading producers\nof the chemical, as well AS some of the larger wholesalers.\nText of the price schedule is attached.\nRegraded Unclassified\n149\nAND 32 - NATIONAL 01/19\nPM 981\nCHAPTER II - OFFICE OF PRICE AIMINISTRATION AND CIVILIAN SUPPLY\nPart 1335 Chemicals\nPrice Schedule No. 21 - Formaldehyde\nIncreasing demands for formaldehyde in the manufacture of synthetic resins for\nmilitary and civilian needs have created & shortage of supply. Speculators have\ntaken advantage of this situation to raise the resale price of appreciable quan-\ntities of formaldehyde to se high as 474 per pound, contrasted with the manufac-\nturers' price of 6# per pound for comparable quantities. These speculative prices\nare threatening to rise to even higher levels. It is necessary to curb such spec-\nulation in order to protect consumers, to eliminate the danger of price rises in\nother industries that use formaldshyde, and to premote stable contractual relation-\nships,\nAccordingly, under the authority vested in me by Executive Order No. 8734, it\nhereby directed that:\n1335.51. Maximum prices for formaldehyde. On and after August 20, 1941, re-.\ngardless of the terms of any contract of sale or purchase, or other commitment, no\nperson shall sell, offer to sell, deliver or transfer, formaldehyde in containers\nof 45 lbs. or more, and no person shall buy, offer to buy, or accept delivery of,\nformaldehyde in containers of 45 lbs. or more, at prices higher than the maximum\nprices set forth in Appendix A, incorporated herein B.B. Section 1335,60.*\n1335,52. Loss than Maximum Prices. Lower prices than those set forth in\nAppendix A may be charged, demanded, paid or offered.\"\n1335.53. Evasion. The price limitations set forth in this Schedule shall not\nbe evaded whether by direct or indirect methods in\nSections 1335.51 to 1335.60, inclusive, issued pursuant to authority contained\nin Executive Order No. 8734.\n- 2 -\n150\nPM 981\nconnection with a purchase, sale, delivery. or transfer, of formaldehyde, or\nin connection with a purchase, sale, delivery or transfer of any other material,\nor by way of any commission, service, transportation, or other charge, or discount,\npremium, or other privilege, or by tying-agreement or other trade understanding,\nor otherwise.\"\n1335.54. Records. Every person making purchases or sales of formal-\ndehyde in containers of 45 lbs. or more shall keep for inspection by the Office\nof Price Administration and Civilian Supply for a period of not less than one\nyear complete and accurate records of each such purchase or sale, showing the\ndate thereof, the name and address of the buyer or the seller, the prices paid\nor received, and the specifications and quantity, including the size of the con-\ntainers, of the formaldehyde purchased or sold.\"\n1335.55. Affirmations of Compliance. On or before September 10, 1941,\nand on or before the 10th day of each month thereafter, every person who, dur-\ning the preceding calendar month, has sold formaldehyde in containers of 45 lbs.\nor more, whether for immediate or future delivery, shall submit to the Office of\nPrice Administration and Civilian Supply, an affirmation of compliance on Form\n121:1, containing a sworn statement that during such month all such sales were\nmade at prices in compliance with this Schedule or with any exception or modifi-\ncation thereof. Copies of Form 121:1 can be procured from the Office of Price\nAdministration and Civilian Supply, or, provided that no change is made in the\nstyle and content of the Form and that it is reporduced on 8 % 104° paper, they\nmay be prepared by persons required to submit affirmations of compliance hereunder.\"\n1335.56. Enforcement. In the event of refusal or failure to abide. by\nthe price limitations, report requirements, or other provisions contained in this\nSchedule, or in the event of any evasion or attempt to evade the price limitations\nor other provisions contained in this\nRegraded Unclassified.\nPM 981\n151\n- 5 -\nSchedule, the Office of Price Administration and Civilian Supply will\nnake every effort to assure (a) that the Congress and the public are\nfully informed thereof, and (b) that the powers of the Government are\nfully exerted in order to protect the public interest and the interests\nof those persons who comply with this Schedule. Persone who have\nevidence of the offer, receipt, demand or payment of prices higher than\nthe maximum prices, or of any evasion or effort to evade the provisions\nhereof, or of speculation, or manipulation of prices of formaldehyde,\nor of the hoarding or accumulating of unnecessary inventories thereof,\nare urged to communicate with the Office of Price Administration and\nCivilian Supply.\"\n1335.57. Modification of the Schedule. Persons complaining\nof hardship or inequity in the operation of this Schedule may apply to\nthe Office of Price Administration and Civilian Supply for approval of\nany modification thereof or exception therefrom.\"\n1335,58. Definitions. When used in this Schedule, the term\n(a) \"person\" means an individual, partnership, association,\ncorporation. or other business entity;\n(b) \"formaldehyde\" means (1) U.S.P. solution of formaldehyde\n(37% formaldehyde by weight) or (2) any other solution of formaldehyde\nexcept lots or quantities sold for commercial use 6.6 embalming fluids;\n(c) \"producer's shipping point\" means any of the following\npoints: Garfield, N. J., Perth Amboy, N. J., West Haverstraw, N. Y.,\nor Tallant, Oklahoma.*\n1335.59. Effective Date of the Schedule. This Schedule\nshall become effective August 20, 1941.*\nRegraded Unclassified\nPM 981\n152\n1335.60, Appendix A\nMaximum Prices for Formaldehyde Shipped from Producers' Shipping\nPoints.\nQuantity in pounds and Containers\nPrice per lb. FOB New York, N.T.\nor West Haverstraw, N. Y. or Gar-\nfield, N.J. or Porth Amboy, N.J.\nor Tallant, Oklahoma, freight\nequalized.\ncarload lots\nless-than-\ncarload lots\nTanks cars (70,000-72,000 1bs.)\n$.0425\n---\nTank truck or wagon\n-\n$.0450\nDrums (475 1bs.)\n$,0540\n$,0590\nBarrels (450 100.)\n$.0575\n$.0625\nRegs (225 lbs.)\n$.0675\n$.0725\nHalf Barrel (225 1bs.)\n$.0675\n$.0725\nBarrels (200 lbs.)\n$.0725\nKeg (125 1bs.)\n$.0700\n$.0750\nCarboys (100 1bs.)\n$.0600\n$,0650\nKege (90 1bs.)\n$.0750\n$,0800\nKege (60 lbs.)\n$.0800\n$.0850\nCarboys (45 lbs.)\n$.0700\n$.0750\nDrums (45 1bs.)\n$.0850\nKegs (45 lbs.)\n$.0900\n$.0950\nThe maximum price which B. purchaser may pay under this Schedule for\nformaldehyde shipped to him from B. producer's shipping point shall not exceed the\nmaximum price set forth above plus freight to destination from New York, N. Y.,\nWest Haverstraw, N. Y., Garfield, N. J., Perth Amboy, N. J., or Tallant, Oklahoma,\nwhichever is less.\nIn no case shall the price of any quantity of formaldehyde sold in con-\ntainers holding 45 lbs. or more, but not listed above, exceed the meximum price\nset forth above for a container holding the next greater quantity.\nMaximum Prices for Formaldehyde Delivered from Local Stocks.\nThe maximum price for formaldehyde delivered from local stocks maintained\nat points other than producers' shipping points shall not exceed a price ex-sella\ner's warehouse greater than the maximum prices set forth above plus freight to\nseller's warehouse from New York, N. T., Weet Haverstraw, N. Y., Garfield, N. J.,\nPerth Amboy. N. J., or Tallant, Oklahoma, whichever 1e less, plus one cent per\npound.\nIssued this 20th day of August, 1941.\nCertified to be 8. true\ncopy of the original\nLeon Henderson,\nJohn E. Hamm,\nAdministrator\nDeputy Administrator\nRegraded Unclassified\n158\nN\nECONOMIST\nAUGUST 23. 1941\nCHINA CURPENCY BOARD IN ACTION\nFollowing the recent appointment of Mr. 2. L. Hall-Patch A9 the\nBritish representative, the new Chinese Currency Stabilisation Fund\nto administer the sterling and dollar credits has at last started\noperations. Its initial intervention WSB particularly well-timed,\nhaving served not only to restore some reality to the Shanghai for-\norga exchange market, but also to bring about a recovery in the\nShanghai dollar. Before the Fund intervened, the market rate for\nsterling had fellen ae low as 2-7/8d. The official rate are been\nfixed as high 0.6 3-5/16d., though the merchant rate in the market\nremains in the neighbourhood of 3d. Under present conditions, the\nfixing of rates above the market level would be calculated to cause\nN. severe drain on the Fund's capital resources in anything like a\nfree exchange market. It good without saying, therefore, that ex-\nchange will not be available at these rates to all comers, but only\nfor certain vermitted transactions, which include payment for bons\nfide imports into China from the United States and the sterling area,\npersonal expenditure, and genuine (as distinct from speculative) con-\ntractual obligations. In discriminating between applicants for ex-\nchange, the control will be assisted by the recent freezing orders.\nsince each applicant is required to make a separate application.\nuite apart from the need for discrimination on political grounds\nand to conserve resources. a selective policy would have been in-\nposed by the conditions under which the sterling credit was originally\ngranted. It will be recalled that support of the Chinese currency VSS\nto be nade dependent on suitable arrangements to ensure that the ster-\nling released does not find its way to the free market for conversion\ninto dollars. thus involving the British Treasury in a loss of gold.\nFor the time being, decisions as to the granting of exchange will be\nmade on behalf of the Stabilisation Board by the various British and\nAmerican banks in the Far East. The fact that the Hongkong and\nShanghai Banking Corporation is prominent among these banks is of-\nficient refutation in itself of the Japanese report that this bank\nis closing its Par Eastern branches. which bas been emphatically de-\nnied by the chief manager.\nCopy wect9-13-41\nRegraded Unclassified\nFor M168 Chauncey\n153\nAugust 23. 1941. a\nCONFIDENTIAL\nDear Mr. Knoke:\nPermit no to acknowledge for the Secretary the\nreceipt of your letter of August 21, 1941, emelosing your\ncompilation for the week ended August 13, 1941, showing\ndollar disbursements out of the British Empire and Fremch\naccounts at the Federal Recerve Bank of New York and the\nmeans by which these expenditures were financed.\nFaithfully yours,\n(Signed) H. Morlo Cochran\n1. Merlo Cochran,\nTechnical Assistant to the Secretary.\nL. V. Knoke, Bequire,\nVice President,\nFederal Reserve Bank of New York,\nles Tork, Bev York.\nEMC:dm:8/23/41\nRegraded Unclassified\nFor Miss Chauncey\n154\nC\n0\nP\nY\nFEDERAL RESERVE BANK\nOF NEW YORK\nAugust 21, 1941.\nCONFIDENTIAL\nDear Mr. Secretary:\nAttention: Mr. H. Merle Cochran\nI am enclosing our compilation for the week ended\nAugust 13. 1941, showing dollar disbursements out of the British\nEmpire and French accounts at this bank and the means by which\nthese expenditures were financed.\nFaithfully yours.\n(Signed) L. W. Knoke\nL. 1. Knoke,\nVice President.\nHonorable Henry Morgenthau, Jr.,\nSecretary of the Treasury,\nWashington, D. C.\nEnclosure\nCopy:1g 8/23/41\nRegraded Unclassified\nMALYSIS or INITIAL AND TERICH Additions\nStrictly\n(In Millions of bellare)\nfort Baded AND 11 1941.\nOF\nFRANCE\nProsseds of\nNet Incr.\nGov's\nSales of\n(+) or\nTotal\nExpendi-\nOther\nTOY\nmaz, lak\nTotal\nPERIOD\nDebita\ntures(a)\nDabita\nto\nFirst year of var\n8/29/39-8/28/40)*\n1,783.2\n605.6.\n1,187.\n200.2\n+229.0\n1940\n306,9\n6.0\n72\nB,6\n1.1\n4.2\n1,3\n- 7.3\nAug. 29 - Oct. a\n316.8\n344.5\n78.5\n371.5\n31.4\nOct. 3 - 30\n196.7\n167.8\n28.9\n198.5\n160.5\n6.0\n32.0\n+ 1.8\n0.5\n0.3\n0.2\n0.5\n-\n0.5\n-\nOct. 31 - Nov. 27\nWe\n201.1\n39.9\n259.5\n210.0\n18.0\n31.5\n18.5\n0.8\n0.1\n0,7\n0,2\n#\n0.7\n- 0,1\n204.8\n26-0\n60,6\n36,6\na\nIT\n0.5\n&\n0.6\n- 1,5\nNOT. 28 - Dec. 31\n-204,0\n22.0\n198.0\nlild\n1,485.6\n293.1\n109.5\n108,0\n575.6\n10,8,\n87.6.3\n421.4\n456.9\n1098.4\n900.2\n198.2\n+220.1\nVer partal through Dec.\n1941\n31.7\n* 68.5\n1.7\n1.7\n0.5\n-\n0.8\n- 1.8\nJan. 2 - 39\n197,4\n162.7\n34.7\n259,9\n176.8\n52.0\n-\nJan. 30 - Feb. 26\n164.6\n137.8\n26.8\n101.4\n$ 26.6\n25.0\n48.8\n65.2\n0,2\n-\n0.2\n0.2\n-\n0,2\nI\n157.6\n32.1\n237.9\n103,7\n72.0\n62.2\n+ 8.2\n0.7\n-\n0.7\n1.6\n-\n1.8\n- 0.9\nFeb. 27 - Apr. 2\n229.7\nApr- 3 - 3 Apr. 30\n126.0\n101.9\n24.1\n318.9\n125.6\n15.0\n78.3\n92.9\n0,9\n-\n0.2\n0,9\n-\n0,9\n*\nMay 1 - May 28\n122.6\n90,6\n32,0\n91.0\n6.3\n32,0\n52.7\n- 31,6\n0,4\n0,4\n0,8\n-\n0,8\n4 0,4\n.\n21.5\n0.9\n0.9\n- 20.6\nMay 29 - July =\n140.5\n113.8\n26.7\n105.1\n1.9\n11,0\n92.2\n- 35.4\n21.5\n1\n-\nJuly 3 - - July 30\n101.4\n75.6\n28.8\n61.5\n-\n6.0\n55.5\n- 39.9\n0.5\n-\n0.5\n0.3\n-\n9,2\n- 0.2\nJuly 31 - Aug. 27\nSecond your of ar\n(6/29/40-8/27/41)\nAUB- 28 - Dot. 1\nOgt, 2 - Date 29\nDot. 30 - Dec. 3\nDoc. 4 - 31\nENTED:\n3.0\n15,2\n- 6,8\n0.4\n-\n0.4\n0.1\nE\n0.1\n- 0.3\nJuly 23\n25,0\n20,7\n4.3\n18.2\n-\n-\n11.9\n-18,5\n0,1\n-\n0.1\n0,1\n-\n0.1\n30\n30.4\n22,1\n8.3\n11.9\n-\n2.0\n114.6\n+87.6\n0,7\n-\n0.6\n0,2\n-\n0,2\n- 0.5\nAug. 6\n33.0\n31.4\n1,6\n116.6\n-\n36.2\n21.8\n14.4(g)\n15.3\n,\n-\n15.3(f)\n-20-9\n0.2\n-\n0,2\n0.2\n-\n0,2\n.\n13\nTransfers from British Purchasing Commission to\n(See footnotes FIRE reverse side)\nAverage Wookly Expenditures since Outbreak of War\nFrance (through June 19,1940) $19.6 million\nBank of Canada for French Account\nFeek ended Aug- 13, 1941\n-\nmillion\nEngland (through June 19,1940) 27.6 million\nEngland (since June 19,1940) 46.2million\nOmulation from July 6,1940 #162.7\naillion\nFor monthly breakdown 300 tabulations prior to April 23, 1941.\nRegraded Unclassified\nTheir\nNA\ninternaling\nDahal zuell\nve\nHALTLE) GARA su\n(a)\nIccludes\nBritt ish Air British Supply Board or\nSupply Timber Control, and Ministry of Shipping.\n2001 Toll\nto 150000\nTO noise\nPm\n(b)\nEstimated figures based on transfers with from the New Later York Agency of the Bank est which appurently reprosed Fither 100\nproboeds of OFF ial Brn sish also of securitika, Studing am diffect To addition\nOJ1978\nto the official selling, substantial liquidation of securities for private British account occurred, perticularly during the\nour strethe of the the receipt di proceeds at dela Bank be frie any accuracy. According\nto data supplied by the Dritish Treasury and released by Sepretary Worgenthau, total official and private British liquidation\nof our becurities threogh December, 1940 abounted to $834 million.\n(o) Includes about $85 million required ed duri Octobery 1989 from the abdounts of British sed tanks with New York blocks,\npresentingly reflecting No alsioning or crimite dollar falls medi Dibther Mays trainféria from much since October,\n1939 applicant by reprosent 166 adquisities products of imports the area and ober survice ly contring deliver\nreceipts.\n(d) Includes payments for possunt of French Air Commission and Frebah Purchasing Comissions\n(g) Adjusted to eliminate the offect of @80 million pard out on Júne 25 1940 and returned the following day.\n(f) Includes $5.5-million transferred from accounts of British authorised banks and $1.5 million received by the British Purchasing\nCommission, pregamably representing refunds.\n(g) 13.4 million transferred to Government of Canada account.\n19012 STOTOT are ex\nor moiscleeno outsing 0017 07/18/1977\n= about % 2020\n00/11/0\nbecause Not\n20/\nLie\n6.7\nSTATE\nDAYING no:) mottal. no\nsellile\n(0b\nINC) ,es Itnah oz tares accipuludes Edeard\nRegraded Unclassified\nAMALTHIE OF CANADIAN AND AUSTRULIAN ADDITITY\nStrictiz\n(In Millious of Dollars)\nWeek Intel las. 13, 1341.\nOutldersial\n111311\nTransfers\nTransfers from Official\nTruethers\nto\nProsseds\nBritish A/C\nnot Insr.\nto\nProvide\nTotal\nOfficial\nOther\nTotal\nof\nOther\n(+) or\nTotal\nOfficial\nOther\nTotal\nof\nOther\n(-) or\nDebits\nBritish\nDebite\nCredits\nGold\nFor Own\nFor French\nCredits\nDeor. (-)\nDebits\nBritish\nDebite\nCredits\nGold\nCredita\nDeor. (-)\nPERIOD\nA/C\nSales\nA/C\nA/O\nto Balance\nA/C\nSales\nin Balance\nFirst year of way\n(8/29/39-8/28/40)*\n323.0\n16.6\n506.4\n504.7\n412.7\n20,9\n38.7\n32.4\n+181.7\n51.2\n3.9\n27.3\n36.1\n30,0\n6.1\n4 4.9\n1940\nAug- 29 - Cot. a\n44.3\n44.3\n43.9\n16.4\n-\n27.3\n0,2\n- 0.4\n8.7\n2.5\n6.2\n8.0\n6.7\n1.3\n- 0.7\n-\n26.7\n26.7\n28,6\n14.0\n-\n14.3\n0.3\n+ 1.9\n10.1\n7.5\n2.6\n7.9\n6,5\n1.4\n- 2.2\nOct. 3 - 30\n-\nOct. 31 - Nov. 27\n35.2\n35.2\n69,6\n49.2\n-\n16,7\n3.7\n+ 34.4\n3,1\n0.6\n2.5\n3.6\n2.1\n1.5\n+ 0,5\n-\nNov. 26 Dec. 31\n48.0\n-\n48.0\n60.6\n42.5\n-\n13.7\n4.4\n+ 12.6\n4.6\n-\n4.8\n6.8\n4.8\n2,0\n+ 2.0\nNo: through Den.\n477.2\n16.6\n460.6\n707.4\n534.8\n80.9\n110.7\n41.0\n+230.2\n57.9\n14.5\n43,4\n62,4\n50.1\n12.3\n+ 4,5\n1941\nJan. 2 - 29\n33.7\n-\n33.7\n33.9\n16.9\n-\n15.0\n2.0\n+ 0.8\n4.8\n-\n4.8\n5.8\n5.1\n1.7\n+ 2.0\n5.0\n3.2\nJan- 30 - Dobs 86\n31.1\n31.1\n24.3\n14.3\n-\n6.8\n3.2\n- 6.8\n1.7\n3.3\n0.6\n2,6\n- 1.8\n-\nFeb. 27 - Apr. 2\n50.9\n-\n60,9\n45,0\n23.1\n-\n19,1\n3,8\n- 14,9\n5.8\n0,8\n5.0\n13,7\n12,5\n1.2\n- 7,9\nApr. 3 - Apr. 30\n34.9\n-\n38.9\n35.9\n12.5\n-\n10.5\n12.9\n+ 1,0\n2,8\n,\n2.0\n5.2\n4.6\n2.3\n+ 3.1\nMy 1 - May 28\n39.2\n39.2\n25.6\n15.8\n-\n0,5\n9.3\n- 13,7\n5,4\n-\n5.4\n4,9\n4.1\n0.8\n-\n- 0.5\nMay 29 July 2\n43.2\n45,2\n40,2\n16,3\n-\n-\n31.9\n+ 5.0\n10.1\nI\n10.1\n5.6\n4.5\n-\n1.3\n- 43\nJuly 3 - July SO\n30.6\n-\n30.6\n21.8\n15.2\n-\n-\n-\n6.6\n- 8.8\n6.4\n6.4\n6.3\n4,8\n1.5\n- 0.1\nJuly 31 - Ang. 27\nfreend your of war\n(8/29/40-5/27/41)\nAug- as Oct. 1\nOct. :- Oct, 29\nOpt. 30 - Deo, 5\nDec. 4 4- 31\nNEW ENDED:\n-\n7.5\n3.5\n3.3\n-\n-\n0.2\n- 4.0\n2.4\n-\n2.4\n0.5\ne\n7.5\n0.5\n- 1.9\nJuly 23\n12.1\n6.3\n4.7\n-\n-\n1,6\n- 5.8\n0,4\n-\n0.4\n0.]\n-\n0,3\n- 0.1\n30\n12,1\n-\n3.4\n3.9\n2.6\n-\n-\n1,3\n+ 0.5\n2,6\n-\n2.6\n0,2\n-\n0.2\n- 2.4\nAug. 6\n3.4\n-\n10.4\n6.9\n2.9\n3,4\n-\n0,6\n- 3.5\n0.3\n-\n0,3\n0,4\n-\n0,4\n+ 0.1\n13\n10,4\n-\nWookly Arerago of Total Debite Since Outbreak million of Par\nFor monthly breakdown nee tabulations prior to April 25, 1941.\nThrough Aug. 13, 1941\n7.5\nRegraded Unclassified\nANALYSIS OF CARADIAN AND ACCOUNTS\nDivistiv\n(In Millions of Dollars|\nYook Intel Aug. 13, 1941.\nConfidential\nTransfers\nTransfers from Official\n3\nProsseds\nBritish A/C\nthat be.\nto\nâ\nTotal\nOfficial\nOther\nTotal\nof\nOther\n(+) or\nTotal\nOfficial\nOther\nTotal\nof\nOther\n(+) or\nDebits\nBritish\nDebits\nCredits\nGold\nFor Own\nFor Frencis\nCredits\nDear. (-)\nDebits\nBritish\nDebite\nCredite\nCold\nCredits\nDoor. (-)\nPERIOD\nA/C\nSales\nN/C\nA/C\nin Balance\nA/C\nSales\nan Balance\nFirst year of wer\n(8/29/39-8/28/40)*\n323.0\n16.6\n306.4\n504.7\n412.7\n20,9\n38.7\n32.4\n+181.7\n31.2\n3,9\n87.3\n36.1\n30,0\n6.1\n- 4.9\n1940\nAUG. 29 - Cot. a\n44.3\n44.3\n43.9\n16.4\n-\n27.3\n0.2\n- 0.4\n8.7\n2.5\n5.2\n8.0\n6.7\n1.3\n- 0.7\n-\n26.7\n26.7\n28,6\n14.0\n-\n14,3\n0,3\n+ 1.9\n10.1\n7.5\n2,6\n7.9\n6,5\n1.4\n- 2.2\nOpt. 3- 30\n-\nOct. 31 Nov. 27\n35.2\n35.2\n69.6\n49.2\n-\n16,7\n3.7\n+ 34.4\n3.1\n0.6\n2,5\n3.6\n2.1\n1.5\n+ 0,5\n-\nNov. 28 - Dec. 31\n48.0\n48.0\n60.6\n42.5\n-\n13.7\n4.4\n+ 12.6\n4.8\n-\n4.8\n6.8\n4.8\n2.0\n+ 2.0\n-\nMr. veriod through Date\n477.2\n16.6\n460.6\n707-4\n534.6\n20.9\n110.7\n41,0\n+230,2\n57.9\n14.5\n43.4\n62,4\n50.1\n12.3\n- 4,5\n1941\nJan. 2 - 29\n33.7\n35.7\n33.9\n16.9\n-\n15.0\n2.0\n+ 0.2\n4.8\n-\n4.8\n5.8\n5.1\n1.7\n- 2.0\n1\nJan. 30 - Febs 26\n31.1\n- 6.8\n3.3\n3.2\n0.6\n2.6\n-\n31.1\n24.3\n14.3\n-\n6.8\n3.2\n5.0\n1.7\n- 1,8\nFeb. 27 Apr. 2\n60.9\n,\n60,9\n46,0\n23.1\n-\n19.1\n3,8\n- 14.9\n5.8\n0,8\n5.0\n13.7\n12,5\n1,2\n- 7,2\nApr. 3 - Apr. 30\n34.9\n1\n38.9\n35.9\n12.5\n-\n10,5\n12.9\n+ 1,9\n2.8\n-\n2.8\n5,9\n4,6\n2.3\n+ 3.1\nMay 1- May 28\n39.2\n-\n39.3\n25.6\n15.8\n-\n0,5\n9.3\n- 13,7\n5,4\nI\n5.4\n4,9\n4.1\n0,8\n- 0,5\nMay 29 July 2\n3.21\n45,2\n48.2\n16.3\n-\n-\n31.9\n+ 5.0\n10.1\n-\n10.1\n5.8\n4,5\n1.3\n- 4.5\n-\nJuly 3 - July 50\n30.6\n30.6\n21,8\n15.2\n-\n-\n6.6\n- 8.8\n6.4\n-\n6,4\n6.3\n4.8\n1.5\n- 0.1\n-\nJuly 31 - Ang. 27\nSecond year of war\n(11/43/6-07/62/9)\nAUg- 28 Cot. 1\nOct. 2 Oct, 29\nDet. 30 Doc. 3\nDoc. 4 31\nTX ENDED:\nJuly 23\n7.5\n7.5\n3.5\n3.3\n-\n-\n0.2\n- 4.0\n2.4\nI\n2.4\n0.5\n-\n0.5\n- 1.9\n-\n12.1\n6,3\n4.7\n-\n-\n1.6\n- 5.8\n0.4\n-\n0.4\n0.3\n,\n0.3\n- 0.1\n30\n12.1\n-\n3.4\n3.9\n2.6\n-\n.\n1,3\n. 0.5\n2,6\n-\n2.6\n0.2\n-\n0,2\n- 2.4\nAug. 6\n3.4\n-\n10,4\n6.9\n2,9\n3,4\n-\n0,6\n- 3.5\n0,3\n-\n0,3\n0,4\n-\n0,4\n+ 0.1\n13\n10,4\n-\nWookly Average of Total Debits Since Outbroak million of Mar\nFor monthly breakdown san tebulations prior to April 25, 1941.\nThrough Aug. 13, 1941\n$ 7.5\nRegraded Unclassified\nSHANGHAI\nc\nAUGUST 23, 1941\nC\nP\nY\n/XOM: M. R. NICHOLSON, U. B. TREASURY ATTACHE\n20:\nDIVISION OF INVESTIGATIONS AND PATROL (FOR ALDER)\nFOLLOWING AMONYMOUS LITT. QUOTED BELOW AS IS WAS PLACED OIT COUNTER\nCF MORTH CHINA DAILY LEYS LOCAL BRITISH 18VS PAPER BY UNKNOWN PERSON\njusts SIR COLONEBARE LEARNED FROM is PATRICT TEC IS EMPLO D BY PUPPET\nGOVERNMENT HAS REPORTED TO US THAT REBEL CHOW ZUBAL THE MINISTER OF\nVIRANCE IN PUPPET COVERIMENT AT TWELFTH AUGUST CHERED AIS 3P CIAL\nSERVICE AEVALUE è SHAN TULL ACTION THAT THEY VILL M. E. L.\nALL PATCH THE MINGER OF CHINESE CURREMCY STABILIZATION BOARD\na ITISH MR. HANVEL Fox AMERICAN AND HIS ASSISTANT MR. TAYLOR IN\nINVEDIATELY IN REASON OF MR. L. E. HALL PATCH Ma. A. KARVEL 70X AND\nHTS ASSISTANT THEIR ARE ENDRAVOR EMOCRACY STOP SO VE INFORM YOU AND\nBEG YOU DECLARE SUC A FACT SIGNED TE BLUE SHIRT (3GALIZATION SEVENTEENTH\nAUGUST UN UOTE CUR OPINION OF FUREUOING CONTAINED IN FOLLOWING NESSAGE\nCooy: hbr: 8-27-41.\nRegraded Unclassified\n160\nBS\nGRAY\nHong Kong via N. R.\nDated August 23; 1941\nRec'd. 1:38 p.m.,24th.\nSecretary of State,\nWashington.\n323, August 23, 2 p.m.\nFOR TREASURY FROM FRESE\n\"Will appreciate clarification on the follow-\ning questions (?) to application of general licenses\nunder Executive Order 8389.\nOnE. Would r: purchase of United States dollars fre.\nStabilization Board of China made by E non-licensed\nbank in China for the purpose of covering DELEO of\nUnited States dollars for import tronsactions ruthor-\n12rd by general license no. 58 be construed CS e\ntransaction documented general license number 58,\nTwo. Could United Strtes dollars thus pur-\nchesed by such non-licensed bank DE credited to its\naccount in e United States bank and be subsequently\nused for purpose of finencing dmport transactions\nlicensed by general license no. 58\".\nSENT to the Department, repented to Chungking,\nShanghai.\nSOUTHARD\nNPL\nRegraded Unclassified\nTEM\nPLAIN\n161\nPeiping via N.R.\nDated August 23, 1941\nRec'd 3:20 s.m. 24th\nSecretary of State,\nWeshington.\n226, August 23, 1 p.m.\nPeiping's 194, July thirty-first.\nDespite oral assurances given to this Embassy by\nthe Japanese Embassy at Peiping on July thirty-first and\nAugust first that the restrictions in North China on the\nchecking of baggage by American citizens would be lifted,\nAmericans are still unable to check baggage at many places\noutside of Peiping. Special instances of refusal to check\nbaggage at the station at Peitaiho Beach on August twenty-first\nand August twenty-second have been reported to this Embassy.\nWritten representations on this subject were again made\nto the Japanese Embassy here on August twenty-second.\nSent to the Department, repeated to Chungking, Tientsin.\nAir mail to Tokyo.\nBUTRICK\nNPL\neh:copy\nRegraded Unclassified\n162\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM: American Consulate, Dairen, Manchuria\nDATE: August 23, 1941, 10 a.m.\nNO.: an\nInstructions have been received by the manager of the\nDairen branch of the National City Bank of New York to close\nthe branch of that bank. The process of closing, however,\nwill take some time. Such procedure cannot be undertaken\nunder the drastic freezing restrictions which are still\nin force. (For description of freezing restrictions, nee\ntelegram No. 13, dated August 9, 4 p.m. from the Consulate.)\nThis message was sent to Tokyo and repleated to Peiping\nfor the information of the Department. It vas ant by mail\nto Harbin and Hukden.\nCHASE\nEATPAK\n811,51693 MANCHURIA/62\nRegraded Unclassified\n163\nPARAPHRASE or TELEGRAM RECEIVED\nFROM: American Consulate, Fort de France (Martinique)\nFrench West Indies.\nDATE: August 23, 1941, 1 p.m.\nNO.: -\nIt is requested that the Department telegraph the\nConsulate as to whether or not the Treasury Department\nhas approved the French-American Banking Corporation as\nthe American correspondent of the Martinique branch of the\nBanque Nationale pour 10 Commerce et l'Industrie. 4300\ninclude information as to whether the Banque Nationale\npour 20 Commerce et l'Endustrie may handle funds which\noriginate from the French West Indies monthly license.\nMALIGE\nEAIPAK\n840.51 Frozen Credita/3186\nEven\nRegraded Unclassified\n161\nPARAPHRASE OF TELEGRAM SENT\nTO: American Legation, San José, Costa Mies\nDATE: August 23, 1941, 8 p.m.\nNO.1 194\nReference is made to the Legationf&stelegrams of\nAugust 12, 3 p.m., No. 219 and of August 18, 9 p.m.,\nNo. 222.\nThe Legation is requested to express to the Foreign\nMinister the sinsere appreciation of the United States\nGovernment for the spirit of cooperation which notivated\nthe Government of Costa Riea to present the plan that was\ndescribed in the Legation's despatch of August 1, 1941,\nNo. 3485.\nThe U.S. Government's view is that the plan,as outlined,\nis an initial step toward the accomplishment of the purpose\nwhich underlies the Preclaimed List's issuance. For the\ntime being, the Treasury Department is prepared to issue\nappropriate lieenses for the importation of commodities\nwhich are covered by the plan and for the exportation of\ncertain articles which are necessary for the operation\nof the industries and firms which are included in the plan,\nshould such articles be released under the Export Control\nAct, provided that no undeserved benefit is derived from\nthe issuance of such license by any fire or person on the\nProclaimed List and, further, provided that the representatives\nof the U.S. Government, or persons satisfactory to them,\nare allowed to obtain surrent information in regard to the\nRegraded Unclassified\n165\n+\noperation of the plan and make such observations an\nrepresentations in regard to its operation & may be\nconsidered pertinent by them, The Legation is requested\nto advise the Department by telegraph whether the second\nproviso is acceptable to the Government of Costs Ries.\nThe following is for the information of the Legation.\nIt is noted that persons whose names appear on the\nProclaimed List may receive salaries, commissions, or\nother prequisites under the plan which might net be\nfrozen. Should the plan work in this manner, one of\nthe objectives of the Proclamation of the President\n-that 1a, to provent persons whose names appear on the\nList from receiving financial and economic benefits,\ndirectly or indirectly from trade with this country-\nwould be defeated by such.\nThe following is for your guidance in the future.\nAs the basis for the continued issuance of licenses,\nthis Government would like to see the Government of\nCosta Rica to take up the following steps within a\nreasonable time:\n1. Prevent the use of the assete, for other than\nliving expenses, within Costa Rica of individuals and\nfirms on the Proolaimed List.\n2. Curtail to a minimum the funds that are available\nfor such living expenses.\n3. The replacement ty of persons who are not deemed by\nthe Legation to be unsatisfactory of those individuals\nRegraded Unclassified\n166\n+\nwho are considered to be undesirable and who occupy\nimportant or key positions in the firms involved.\n4. The consideration of additional means and ways,\nin conjunction with representatives of the U.S. Opvers-\nment, for effectuating the Proclaimed List's purposes.\nThe following is for your own information. The\nfour steps which were suggested above should all lead in\nthe direction of earrying out the ultimate purpose of the\nProclaimed List; 1.0., the elimination or great restriction\nof all phases of activity and influence in the countries\nin Latin America of the firms and individuals whose names\nappear on the Preelaimed List.\nHULL\n(DA)\nA-At DH: GMH\nEA\nRA\nDCA\nEA:PAK\n11502\nRegraded Unclassified\n167\nTREASURY DEPARTMENT\n10th / /\nINTER-OFFICE COMMUNICATION\nDATE August 23, 1941\nto\nSecretary Morgenthau\nFROM Mr. Cochran\nconfidential\nRegistered sterling transactions of the reporting banks were as follows:\nSold to commercial concerns\n€ 8,000\nPurchased from commercial concerns £35,000\nOpen market sterling held steady at 4.03-1/2, and there were no reported\ntransactions.\nIn New York, closing quotations for the foreign currencies listed below were\nas follows:\nCanadian dollar\n10-7/8% discount\nArgentine peso (free)\n.2385\nBrasilian milreis (free)\n.0505\nColombian peso\n.5800\nMexican peso\n.2070\nUruguayan peso (free)\n-4375\nVenezuelan bolivar\n.2755\nCuban peso\n1-1/16% discount\nIn the unofficial exchange market in Shanghai, the yuan remained at 4-11/16#.\nThe sterling-dollar cross-rate worked out to 4.04-1/2.\nThere were no gold transactions consummated by us today.\nNo new gold engagements were reported.\nThe Federal Reserve Bank's report of August 20, 1ts ting deposite of banks in\nÁsia with the New York agencies of Japanese banks, showed that such deposits totaled\n$56,212,000. an increase of $115,000 since August 13. Also reported were selected\nitems from the statement of the Yokohama Specie Bank's New York Agency. The latter's\nprincipal dollar liabilities to and dollar claims on Japanese banks in Asia stood as\nfollows on August 20:\nChange from\nAugust 20\nAugust 13\nLiabilities: Deposits for Japan and Manchuria\n$41,271,000\n4 $ 71,000\nDeposits for China\n9,785,000\n4 10,000\n#\nI U.S. Treas. Bills, comm. paper, etc.\n25,840,000\n- 294,000\nClaims\nI Loans\n$18,625.000\n- $170,000\n#\nI Other - mainly Jap. import bills\n7,583.000\n-\n2,000\nAMR\nRegraded Unclassified\n168\nRESTRICTED\n0-2/2657-220; No. 474 M.I.D., W.D.\n11:00 A.M., August 23, 1941\nSITUATION REPORT\nI. Eastern Theater.\nGround: Powerful German and Finnish forces continue to\nattack Leningrad from the north, west and southwest. The Leningrad-\nMoscow railroad has been cut at Chudovo, 75 miles S. E. of Leningrad,\nStrong Russian counter attacks continue against the\nGerman held areas of Staraya Russa, Kholm and east of Smolensk.\nPushing southeast the Germans have crossed the\nGomel-Bryansk railroad and advanced as far as Staradvb,\nIn the Ukraine there is no official confirmation that\nGerman forces have crossed the Dnieper River.\nAir: According to the Berlin communique Odessa harbor was\nseverely bombed on Wednesday resulting in the sinking of two ships.\nSoviet radio announced a successful attack on German transports carry-\ning reinforcements to the Ukraine front,\nII. Western Theater.\nAir: British bombing operations during the night of the\ntwenty-second were concentrated on Mannheim, Docks and other shipping\nfacilities at LeHavre, Ostend and Dunkirk were also bombed.\nBoth communiques reported action against airports in\nonemy territory.\nIII. Middle Eastern Theater.\nAir: Two British cruisers were reported as hit by German\nbomba northeast of Sidi Barrani on August 21 according to the Italian\ncommunique.\nGround: Continued lull.\nRESTRICTED\nRegraded Unclassified\n169\nC\n0\nP\nY\nLET\nGRAY\nBERLIN\nNOT FOR PUBLICATION\nDated August 24, 1941\nRec'd. 3:32 p.m.\nSecretary of State,\nWashington.\n3273. August 24, 11 a.m.\nA new tax law provides for a 25 percent war time\nsurtax on corporation taxes; & decrease in taxes paid\nby individuals and partnerships on income earned from a\ntrade or profession (in the form of exemption from taxes\non 50 percent of the income left in the business); abolish-\nment of the document tax; and abolishment of the one half\npercent securities tax (the one percent securities tax being\ncontinued). According to estimates the increase in rev-\nenues from the wer surtex on corporation taxes will exceed\nby a considerable extent the reduction in other forms of\ntaxes.\nMORRIS\nGV\nCopy:bj:8-38-41\nRegraded Unclassified\n170\nDEFENSE SAVINGS STAFF\nADVANCE SCHEDULE OF RADIO PROGRAMS\nSUNDAY - AUGUST 24, 1941.\nTime:\n4:15 - 4:30 P.M.\nProgram:\nOlivio Santoro\nStation:\nWMAL and NBC Blue Network\nTime:\n5:30 - 6:00 P.N.\nProgram:\nMelody Ranch\nStation:\nWJSV and CBS Network\nTime:\n5:30 - 6:00 P.M.\nProgram:\nDr. I. Q. Junior\nStation:\nWRC and NBC Red Network\nTime:\n7:00 - 7:30 P.M.\nPrograst\nPause That Refreshes\nStation:\nWJSV and CBS Network\nTime:\n7:30 - 7:55 P.M.\nProgram:\nCrime Doctor\nStation:\nWJSV and CBS Network\nTime:\n8:00 - 8:30 P.M.\nProgram:\nManhattan Merry Go Round\nStation:\nWRC and NBC Red Network\nTime:\n9:00 - 9:30 P.M.\nProgram:\nTake It Or Leave It\nStation:\nWJSV and CBS Network\nTime:\n11:15 P.M. - 12:00 M\nProgram:\nMusic You Want, When You Want It\nStation:\nWHAL - Washington, D. C.\nTHESE PROGRAMS PROMOTE THE SALE OF DEFENSE BONDS AND STAMPS.\nRegraded Unclassified\n171\nAugust 25, 1941\n9:30 a.m.\nGROUP MEETING\n(Conference held in Mr. Gaston's office)\nPresent:\nMr. Cochran\nMr. Charles Bell\nMr. Cairns\nltr. Schwarz\nMr. Odegard\nMr. Southard\nGaston:\nI thought I would find out who was here today.\nI haven't anything to tell anybody, but I thought\nI would find out if there was anything troubling\nany of us.\nC. Bell:\nWe are going ahead this morning with the New\nYork space. We have accepted, subject to the\napproval of the War and Navy Departments, the\n253 Broadway space. That is the old Postal Telegraph\nBuilding.\nGaston:\nHow much space are we getting there?\nC. Bell:\nWe are getting sufficient. We are going up to\nabout seventy thousand square feet.\nGaston:\nIs it adjacent?\nC. Bell:\nIt is adjacent all together. They got the Postal\nTelegraph to move out of another half of a floor.\nGaston:\nIt is all together?\nRegraded Unclassified\n172\n- 2\nC. Bell:\nThat gave us the five thousand feet we needed,\nGaston:\nHow much is it going to be, Charlie?\nC. Bell:\nWe are paying a dollar sixty-nine next year.\nThis year the War Department will pay two\ndollars and twelve cents.\nGaston:\nThat doesn't seem so bad, and it is a good\nlocation.\nC. Bell:\nWe had a buzz from Al Smith along the line that\nif we are interested in the Empire State he\nwould come down somewhat on his price. lle was\nfour dollars and something. Bernie called him\nup and he came down to three dollars 9. square\nfoot.\nGaston:\nHe was better than that.\nC. Bell:\nTwo dollars and twenty-five cents on the tech-\nnical staff two months ago.\nGaston:\nBut even that is too high for the enforcement\nagencies, and th t isn't any location for the\nenforcement agency.\nC, Bell:\nThis is only about three blocks from their\npresent location.\nlaston:\nThis is excellent. You are within two blocks\nof every subway.\nE. Bell:\nAlcohol Tax objects to this space because they\nare going to have to take some dark space that\nwill be illuminated by this fluorescent lighting.\nGeston:\nIf there isn't some squewling I would say it\nisn't no good.\nC. Bell:\nYour friend Lewis in Customs likewise is squawk-\ning.\nRegraded Unclassified\n173\n- 3 -\nGaston:\nBecause of dark corners?\nC. Bell:\nGenerally that is his squawk. He doesn't want\nto move. But the rest of them are pretty well\nsatisfied. But I think it is the best we can\ndo in New York. It have looked it over myself\nand Elmer Irey spent Friday and Saturday up\nthere, and they have made arrangements for air\nconditioning, fluorescent lighting, partitioning,\nand additional footage, which gives us really\nthe best proposition in New York.\nCochran:\nWhere is it, Herbert?\nGaston:\nIt is on Broadway and Rector, isn't it, Charlie?\nC. Bell:\nBroadway and Rector. I prepared a wire to Watkins,\nthe a gent. \"Your bid on space in 253 Broadway 25\namended by your letter of August 23 is acceptable\nto the Treasury Department subject to final\napproval of War and Navy Departments.\" Because\nWe haven't settled that question of who pays.\nGaston:\nO.K.\nC, Bell:\n\"Final arranzements respecting office lay-out\nto be concluded by the representatives of the\nTreasury Department and you.\" I thought I\nwould get that off this morning, so he can\nstart right in on it.\ninston:\nGood. I think it is all right. If they are\nnot unanimous against it, that is very encourag-\ning.\nC. Bell:\nThey are three to two.\nInston:\nThe next best thing we found they were unanimous\nagainst, weren't they?\n3. Bell:\n120 Wall, they were all against it.\nRegraded Unclassified\n174\na\nTaston:\nThat was excellent space.\nC. Bell:\nThere was only one they were unanimously for,\nand that was the Empire State.\nGaston:\nYes, Three dollars a foot. They liked 40 Wall\nStreet on the corner of Broadway and Wall.\nC. Bell:\nYes, sir, but that was inadequate.\nGaston:\nWhat did Ted Wilson do, if anything, in Richmond?\nDid he come to a decision?\nC. Dell:\nWe sent him down Friday and he came to a decision\nFriday night in favor of the Revenue Agent,\nbut he hadn't talked with the girl so I told\nhim to stay over Saturday morning and talk with\nthe girl, which he did, and now he is in favor\nof the girl, (Laughter) It was a definite\ninjustice to put her out. I told him to give\nIS a report on it and we will probably have to\ndisapprove Helvering's recommendation.\nGaston:\nIt is always a bad proposition where you get -\nwhere you can't do anything, make any compromise,\nyou have to support an employee where the boss\nclaims she won't take orders and so on. He\ndoes claim that, doesn't he?\nC. Bell:\nNot until recently. She has had an efficiency\nrating for twenty-one years of excellent, and\nthis is something very new.\nCaston:\nWell, We will take a look at what he says.\nC. Bell:\nHe wouldn't have to live with her any longer\nthan next May. She 70es out on retirement.\n(Laughter)\nGaston:\nCharlie, have you got anything else?\nC. Bell:\nThat is all, sir.\nRegraded Unclassified\n175\n- 5 -\nGaston:\nMerle, do you want to enlighten us?\nCochran:\nI haven't much, except we may have to take\nsome decision this week about publicity for the\nMexican Stabilization agreement. On Saturday\nCollado called. They are ready to go ahead\nwith the petroleum end of it, you see, They\nwere trying to tie several different negotiations\nin together. We have practically finished that\nStabilization arrangement except that they have\nto agree to certain details. They haven't come\nback with that yet.\nGaston:\nWhat is the arrangement, Merle?\nCochran:\nWell, we will let them have forty million dol-\nlars which this thing - we go in and purchase\nMexican pesos to the extent of forty million\ndollars.\nGaston:\nYes. Any collateral?\nCochran:\nNo, no collateral at all. They have 8 more\nliberal re-purchase arrangement than we have\ngiven any of these other countries 50 far.\nGaston:\nIt is an effort to peg the present situation.\nCochran:\nThey don't say they will peg it definitely.\nThey are going to try to avoid any undue fluc-\ntuations. This is supposed to be our contribu-\ntion to the general arrangement which takes in\nwater rights and agrarian claims, petroleum\nclaims, and so on. So the State Department was\nbehind with their negotiations. We were prac-\ntically ready before the Secretary went away.\nlie wanted it hurried up so he could sign them\nand have the Financial Minister up, but the\nState Department couldn't finish by that time.\nCollado called me on Saturday and said they\nwere practically completed and wanted to know\nif we could get the Secretary to fix a date or\nRegraded Unclassified\n176\n- 6 -\nto agree to the Mexican Minister of Finance,\nFlores, coming up between the second and the\ntenth of September, and also would we agree to\na press release which they wanted to get out\nvery shortly, and which the Mexican Government\ncould use before Congress on the opening of their\nParliament on the first or second of September.\nI told him to send over both the contemplated\npress release and the statement which the Mex-\nican Government would make, so we ought to have\nthat today and I will talk it over with Mr.\nSouthard and Mr. Bernstein if you don't mind,\nand then I will get your advice on it.\nGaston:\nWell, now, the Secretary arrives at Montreal\ntomorrow morning, you know.\nCochran:\nIs that so?\nCaston:\nYes. Wasn't it mentioned to you about the\nplane going up today?\nCochran:\nNo. Is he coming back then?\nGaston:\nAs I understand it, he is not coming back here\nto the office until next Tuesday, but the plane\nis going up there today, and the reason he\ncut short his stay on the Seguinay was to\nattend the funeral service in Montreal tomorrow\nfor Arthur Purvis, and I believe that after\nthe funeral service tomorrow he is coming back\nto the farm.\nCochran:\nI see, so we could be in touch with him there.\nCaston:\nSo he would be in touch. He has - he knows\nthe details of this Stabilization Agreement,\ndoes he?\nCochran:\nHe knows the general details, yes, sir.\nRegraded Unclassified\n177\n- 7 -\nGaston:\nForty million?\nCochran:\nThat is right.\nGaston:\nAnd we are going to take pesos at the present\nmarket, are we?\nCochran:\nWell, we arrive at the rate - yes, it is really\nat the present market rates. It is just a ques-\ntion of whether the quotations --\nSouthard:\nWhatever the rate is on the day of purchase.\nGaston:\nIt is going to be a blocked purchase, is it,\nMerle?\nCochran:\nNot necessarily. Quite the contrary. They think\nthey will not need to do it all at once.\nGaston:\nBut they are going to use forty million to buy\npesos when, as, and if necessary to maintain a\ndesirable rate?\nCochran:\nThat is right.\nGaston:\nAnd that rate will be probably around the present\nrate?\nCochran:\nThat is the idea.\nGaston:\nWhat is the present rate?\nSouthard:\nTwenty point six or seven cents per peso.\nCochran:\nTwenty point seventy, yes.\nGaston:\nIt is a little under five to one.\nCochran:\nThat is right.\nSouthard:\nI think it might be said that the original idea\nwas thirty million dollars, and that our\nRegraded Unclassified\n178\n- 8 -\nunderstanding is that ten million will be immob-\nilized under their reserve requirements, that to\ngive them an effective thirty million dollar\ncredit we would have to call it forty million\nbecause their Central Bank requirement is\ntwenty-five per cent reserve, which is the only\nreason why it would be forty million.\nCochran:\nThat is right. The original plan was for\nthirty, and we raised it to forty when they\ninsisted on holding this ten million reserve\n80 that we ought to be able to get back any\ntime. That wouldn't have to be brought back.\nGaston:\nIs this & loan to the Government or the Bank\nof Mexico?\nCochran:\nIt is to be signed by both. They raised the\nquestion last week as to whether the Bank could\nnot be excused from signing, and we pointed out\nto them that the Secretary's original plan with\nrespect to Latin America envisaged - required\nthe signature and guarantee, individually and\ncollectively, of the Bank and Treasury of\nany country, and 80 they may have to get some\nlegislation through and that is the idea of our\ngiving something to them to announce in their\nCongress when they convene the second of Sep-\ntember.\nGaston:\nWho has been negotiating this?\nCochran:\nMonteros has been here for Mexico. He is from\na bank in Mexico and has been their representa-\ntive on this international - inter-American\nEconomic and Financial Committee.\nSouthard:\nGeneral manager of the Mexican RFC.\nGaston:\nMonteros?\nCochran:\nYes. And they are getting an arrangement with\nthe RFC and the Export-Import Bank at the\nRegraded Unclassified\n179\n- 9 -\nsame time, so that will be thirty million.\nTen million a year over three years.\nGaston:\nWhat are they doing on the oil thing?\nCochran:\nCan you give the details of that?\nSouthard:\nIt hasn't been changed. Our understanding is\nthat Mexico is to make an immediate cash pay-\nment of nine million dollars. They were haggling\nbetween five and nine the last time Mr. Collado\nspoke to us. They. had gotten to the upper\nlimit. As an evidence of their recognition\nof the claim, that to be held by the United\nStates Government, pending final agreement on\nthe total amount by & mixed commission of\nthe experts representing the United States\nand Mexico. We don't know how that commission\nis to be set up. Then the nine million is\nin no sense to be regarded as an evidence of\nwhat may ultimately be paid.\nGaston:\nOf the amount. This is a --\nSouthard:\nToken payment.\nGaston:\nEarnest money.\nSouthard:\nThat is right. Is that your recollection?\nCochran:\nYes. That is the last thing they were trying to\nget straightened up.\nGaston:\nThe thing contemplates that they will go on\noperating with their Governmental corporations,\ndoes it? They are not contemplating operating\ncontracts with any of the American oil companies?\nSouthard:\nNot that we know of, although they keep talking\nabout being perfectly willing to have operating\ncontracts. Of course, this petroleum settlement\nis in addition to the Sinclair settlement which\nis finished.\n180\n- 10 -\nGaston:\nYes.\nSouthard:\nAnd there is also, as Mr. Cochran says, an\nagreement on agrarian claims and general\nclaims and revolutionary claims involving about\nthree million a year.\nGaston:\nYes.\nSouthard:\nThe first payment of which has been made.\nGaston:\nAre the oil companies stringing along with this\nplan for a mixed commission?\nSouthard:\nDo we know the state of their cooperation?\nCochran:\nThey haven't even told us.\nSouthard:\nI think the last time I heard, they were still -\nit was hoped that they would go along.\nGaston:\nStandard of New Jersey has been the most active\non their propaganda, haven't they?\nSouthard:\nYes.\nGaston:\nDid you have anything - well, about this -\nMerle, I think that the Secretary will be in\nreach and I think we will want to check with the\nSecretary.\nSouthard:\nDid Mr. Monteros mention to you, Mr. Cochran,\nthat he had the hope of possibly the Secretary\nmight also invite the Financial Minister and\ncarry out Monteros' idea that so far as possible\nwe ought to emphasize the relation between the\ntwo Treasuries?\nCochran:\nOh, yes. They wanted to know whether it would\nbe all right for them to go ahead and fix up\na schedule for Flores to come up.\nRegraded Unclassified\n181\n- 11 -\nGaston:\nLet's get it all in one bundle --\nCochran:\nI am waiting for this from Collado. He said\nhe would get it over to me today.\nGaston:\nIt is possible that the Secretary may call\nup today from Montreal. He will probably call\nup tomorrow from Montreal.\nCochran:\nI am sure we can get this today.\nGaston:\nRight.\nCochran:\nThen the Colombian Ambassador is just returning\nand he has a draft arrangement that we don't have\nto do anything on before the Secretary comes\nback. It is another Stabilization Agreement.\nGaston:\nHe has 8. draft of a Stabilization Agreement.\nCochran:\nThat is right, and he has been down in his coun-\ntry now having them look it over. He is coming\nback and I suppose he will want to go ahead and\nconsummate it after he gets here.\nSchwarz:\nHe has been pushing that hard, because we get\nqueries every day.\nGaston:\nDo you?\nCochran:\nHe talks to the press pretty freely about it.\nSchwarz:\nHe is running for the Presidency of Colombia.\nGaston:\nWhat is his name.\nSchwarz:\nTurbay.\nGaston:\nWell, have you anything else in mind, Merle?\nCochran:\nI was just saying we would have to keep this\n182\n- 12 -\nabsolutely quiet until we get out the announce-\nment. I think it would be 8. State Department\nannouncement, either State or the White House,\ntelling the whole thing.\nGaston:\nOh, I should suppose so, This is major league.\nI would say it was White House rather than\nState.\nCochran:\nIt is just our little part --\nSchwarz:\nIt will include the other parts.\nGaston:\nI assume we can rely on the State Department\nclearing so far as our end is concerned.\nCochran:\nIn the one they had drafted in the State Depart-\nment they had something on silver which I didn't\nlike. I would like to get Southard to check that\nwith me.\nGaston:\nWhat is there on silver in this thing?\nCochran:\nThey wanted us to purchase silver at seventy-\none cents over quite a period.\nGaston:\nThey just include them in the domestic purchase\narrangements.\nSouthard:\nYes, that is exactly what they asked for.\nGaston:\nOf course what it will be, if anything, will\nb e 8. minimum amount at the world market.\nCochran:\nWe would give them an arrangement such as we\ngave Canada if they want it.\nGaston:\nYes, five million ounces or something like that\nat thirty-five.\nCochran:\nAt the price of the day, whatever it may be.\nRegraded Unclassified\n183\n- 13 -\nWe don't even guarantee the price for a month\nor a week or anything. But they have some\ngreat plans to start with. They wanted\nto repay these obligations - the Stabilization\nas well as the other through twenty year bonds\nor payment in silver at & fixed price, you see.\nSo we have done quite a bit of talking before\nwe have gotten as far as I have told you this\nmorning.\nGaston:\nThey were only asking for two or three million\ndollars B. year.\nCochran:\nAnd we have had negotiations with the Ecuadorians\nin the last two weeks also, but the Financial\nMinister has gone back to Ecuador now.\nSouthard:\nHe is still Finance Minister though.\nCochran:\nYes. The Cabinet went out while he was here\nand he didn't know whether he had 8. job or not.\nGaston:\nThat is one of these monetary Stabilization\nloans, is it?\nCochran:\nThat is right. That is all I have.\nGaston:\nHave you anything additional, Mr. Southard?\nSouthard:\nNo, I think not.\nGaston:\nMr. Southard, I wrote a report on this meeting\nof last Wednesday just from memory, but I think\nit is fairly accurate as to what occurred, and\nI would like to give you a copy before you go\nout. I am sending the Secretary a copy, and\nlet me know if you have - I assume there is to\nbe another meeting Wednesday of this week at\nnine thirty and you might let me know if you\nhave anything --\n184\n- 14 -\nSouthard:\nIs there anything you want for this next meeting?\nGaston:\nYes, anything you have to suggest. It seems\nthat on this vegetable oil thing from Africa\nthe interest was not in the thing that Ullman\nwrote about, which is the olive oil from the\nNorth African Coast, but it was in that palm\nand nut oil situation around Nigeria, principally\nout of Dakar. Dean Acheson made a report, the\nsubstance of which was that he didn't think\nthere was anything we could do about it at the\npresent time. The French are using that peanut\noil from Dakar as fuel for their submarines.\nThey thin it out, I believe, with alcohol, and\nthen they have to clean the motors - it is for\ndiesels and they have to clean the motors\na little more frequently. It gets 8. little\ngunuy, but otherwise they say it is pretty good.\nfuel.\nPeter, have you got anything this morning?\nOdegard:\nOnly on the Secretary's worry about the pro-\ngram. I had the script people and Vince\nCallahan has - Paul Monroe and Vince in the\noffice on Friday and we killed a couple of songs\nin this week's program, and I think it will be\nall right.\nGaston:\nJohn Sullivan is a little bit anxious for fear\nwe may elevate that program out of the range of\nthe audience.\nOdegard:\nI talked to John about it. I don't think there\nis any danger, but we were a little afraid -\nGaston:\nI don't think 80 either.\nOdegard:\nEddie Cantor started to sing Suzie. I am afraid\nthe Secretary would come down. He wouldn't want\nher.\n185\n- 15 -\nWe are going ahead with the designs for the\nGrand Central mural and also the plans for\nthe tabloid. The first pamphlet, Total Defense,\nis in proof now. I think that is going to be\na beautiful job.\nGaston:\nTabloid, you say?\nOdegard:\nThe tabloid is still --\nGaston:\nWhat is this pamphlet, what are we going to do\nwith that?\nOdegard:\nThat is to be distributed in collaboration with\nthe Office of Education to all high schools and\njunior high schools in the United States,\nincluding all parochial schools. We just learned\nthe other day that the parochial schools had\nindicated their desire and intention to use it.\nThey are of course going over the proof now\nand making a few changes. It is to be a graphic\nillustrated booklet of about eight pages, and\nI think it is going to be & very good job.\nIt is unlike anything that has been done or any-\nthing that is in the field, and I would be very\nsurprised if we didn't get a very wide distri-\nbution for it outside the schools, even.\nSchwarz:\nA lot of pictures?\nOdegard:\nYes. The pictures - the layout is being made\nfor us by Mark Adams in collaboration with Fox of\nthe United States News, and of course they are\nusing mainly the photographic files of the\nhistorical records section of the Farm Security\nAdministration and Life Magazine.\nGaston:\nWhat is the nature of the message?\nOdegard:\nIt is simply & description of the defense effort\nup to date, the need for it and what it means,\nwith the bonds and stamps being the way in which\nit is financed.\nRegraded Unclassified\n186\n- 16 -\nCaston:\nI am wondering how deeply you got into the\ndifficult field of our attitude toward the\nwar?\nOdegard:\nWell, we get pretty close to it. That is, I\nhave tried to take out a lot of loaded words,\nThe first draft of the manuscript that came\nto me was filled with loaded words, reference\nto the Nazi terror, and so on and so forth, but -\nreference to the Italian nation, a jackal\nnation, and so on, and we have cut that out.\nWe are relying pretty much upon the school\npeople to pass upon this.\nGaston:\nWe are trying to play Hamlet without Hamlet,\naren't we?\nOdegard:\nNot exactly. We are coming close to it.\nWaston:\nWe have to face realities some of these days.\nOdegard:\nI would be glad to show you a set of the proof.\nTeston:\nI would like to see it just as & matter of\ncuriosity. I don't expect to help you any.\nOdegard:\nI would appreciate it very much if you would.\nDo you want 8. clean set of proof?\nGaston:\nI don't care.\ndegard:\nl'ine is pretty badly marked up.\nCaston:\nThat is all right.\nOdegard:\nThe tabloid, as you know, was simply six issues\nof a tabloid, graphic tabloid, to be distributed\nthrough the post offices. It is a joint enter-\nprise between Defense Savings Staff and the\nPost Office, to distribute twenty million of\nthem through the carriers, mostal carriers, and\nwe plan now six issues of it and we are planning\nthe whole six issues in advance 50 that it\nmakes an integrated whole and a consistent message.\nRegraded Unclassified\n187\n- 17 -\nGaston:\nI talked to Waesche the other day about taking\nadvantage of any occasions where we may use\nCoast Guard personnel or equipment in these\nexhibits for recruiting work. You know they did\ndo some down here, but our recruiting is sticking\na little now, and we need a lot more men than\nwe are getting, and I suggested to him that we\nget the - some of the Air Corps men of the Coast\nGuard who are not doing anything particularly\nuseful right now and use them in the schools\nwhen school starts in the fall for recruiting\ntalks, and it is possible we can combine that\nwith some Defense Savings work. I wanted to\nhave the various divisions line up some school\nspeaking dates for some of these flying officers\nof the Coast Guard who are & pretty good type\nof men, and they might even take some exhibits\nwith them.\nSchwarz:\nWhat is our need, for enlisted men now?\nGaston:\nWell, our need is for both, but of course we want\nall the enlisted men we can get. You can't get\nofficers out of the high schools.\nOdegard:\nThis tabloid - I know that any copy that you\ncare to suggest for this tabloid would be very\nmuch appreciated.\nGaston:\nYou see, the people that we are trying to re-\ncruit now are very much National Defense people.\nWhat we are trying to do is to get men to supply\nthis Navy's demand for boats' crews for landing\nboats. Have you anything else to tell us?\nOdegard:\nThat is all.\nSchwarz:\nI hope you saw Mr. Pegler's piece in the Post\nyesterday.\nGaston:\nI did. I thought it was rather grudging and\nhalf-hearted.\n188\n- 18 -\nSchwarz:\nYes. He wanted to be kind, but I had the --\nGaston:\nHe wanted to be kind to Elmer and his men,\nbut he has such B. strong grudge against the\nAdministration that he plays politics.\nHe had very great difficulty saying anything\ndefinite.\nSchwarz:\nWound up nowhere.\nGaston:\nIt was one of the muddiest of Pegler's columns\nthat I ever saw. Who asked him for it, you\nor Elmer?\nSchwarz:\nHe came down.\nCairns:\nDid you see the New Yorker's article on Roy\nHoward?\nPegler pulls them all to pieces. They are very\nmalicious.\nSchwarz:\nThat is fine.\nOdegard:\nThe last one was.\nCairns:\nYes, the last one was particularly good. Lowell\nMellett is in there too. It is awfully good.\nOdegard:\nLowell is sort of a hero.\nCairns:\nYes, he is.\nSchwarz:\nThat is the only thing I have.\nGaston:\nI guess Lowell just got to the point where he\ncouldn't stick to the Roy Howard policy any\nmore. Have you been putting out any releases,\nChick? You haven't, have you?\nSchwarz:\nWe haven't had any news. There was the wool\nstory. Has that been signed, the wool regulations?\nRegraded Unclassified\n189\n- 19 -\nGaston:\nI think not.\nSchwarz:\nI think you are to sign it.\nGaston:\nYes.\nSchwarz:\nIt will be a pretty fair story. We have a story\nready.\nGaston:\nYes. Let me see it, will you?\nSchwarz:\nYes.\nCochran:\nHerbert, I don't know what you read this morning,\nbut the Russians and British are both moving\ninto Iran.\nSchwarz:\nThey have started.\nGaston:\nHave they? I haven't seen anything.\nCochran:\nYes, they moved in in the night and they hadn't\ncontacted any Iranian forces. They sent word\nto the Foreign Office in Moscow and the British\nAmbassador there - they gave word to the Iranian\nMinister in Moscow that they ment no harm, that\nthey were just going in to help them from the\nGerman agents, and so on.\nSouthard:\nSounds familiar.\nGaston:\nThe British are going in from Iraq.\nCochran:\nThey didn't disclose the routes. Wavell is in\ncharge of the whole business.\nGaston:\nComing in from India?\nCochran:\nIt doesn't say. That is hidden on the ticker\nstories.\nGaston:\nThere was a story this morning that the Persians\nhad moved back twelve miles from the Soviet\nRegraded Unclassified\n190\n- 20 -\nborder as a kind of & sign of courtesy to the\nBolsheviks, but they had not done that on the\nIndian or Iraq borders.\nCairns:\nMacCormack has an interesting piece in the Times\nthis morning, Anne MacCormack.\nGaston:\nOn the editorial page?\nCairns:\nYes, a signed article, anticipating it and giving\nthe reasons why. It is the only way England can\nget aid to Russia, you see.\nGaston:\nYes.\nCairns:\nWe don't have to do anything about it until\nthe President issues a proclamation, and I\nassume he won't issue a proclamation. He\ndidn't on Russia.\nGaston:\nWell, there isn't any war going on here.\nCairns:\nRussia is not at war.\nGaston:\nYes.\nCochran:\nShall we freeze Iran?\nCairns:\nThat is a policy matter.\nSchwarz:\nWe will see how much progress is made.\nGaston:\nWell, Huntington, have you anything?\nCairns:\nNothing, Herbert.\nGaston:\nIn the line of business?\nCairns:\nNot a thing.\nGaston:\nWell, thank you for coming in, gentlemen.\n191\nAugust 25, 1941.\nMEMORANDUM\nTO:\nMr. Graves\n(To be held for Mr. Graves' return)\nFROM:\nMr. Gaston\nGeneral Burns and Phil Young of Defense Aid Reports\n(Lend-Lease) came in to see me Friday with the photostat which\nI am enclosing, which secus to put the Treasury Department in\nan unfavorable light as compared to other departments with re-\nspect to the celerity with which we are discharging our Lend-\nLease responsibilities. This unfavorable showing seems to me,\nafter a conversation with Cliff Mack, to be apparent and not\nreal. I saw Cliff on Saturday and he has written the attached\nmemorandum to me. I mentioned this matter briefly in a letter\nto the Secretary on Saturday, written at his request, and summar-\nizing briefly various happenings. You may wish, however, to\nshow him Mr. Mack's detailed reply, along with the photostat of\nthe table furnished by Lend-Lease.\nAttachments.\nBail\nRegraded Unclassified\n192\nTREASURY DEPARTMENT\nPROCUREMENT DIVISION\noffice OF THE DIRECTOR\nWASHINGTON\nAugust 23, 1941\neserah4um to Herbert E. Gaston, Acting Secretary:\nThe two primary factors bearing upon the report submitted by\nwe Division of Defense Aid Reports relative to allocations and ob-\nDentions of lend-lease funds as of July 31, 1941, are as follows:\n(a) The report specifies allocations of $268,284,387.00\nand obligations of $59, 028, 048.54. The total of\nallocations, $268,284,337.00, however, includes\n$98,930,860.72 of \"frozen funds\" representing funds\nallocated on requisitions for which we are awaiting\nOPM allocations or blanket requistions against which\npurchases cannot be made until sub-requisitions are\nreceived detailing specifications. Likewise, there\nis included in the Division of Defense Aid Reports'\nfigure of $268,284,337.00, the total of a revolving\nfund which as of July 31, 1941, was $9, 742, 727.96.\nFurther, there is included in the total, $450,00\nrepresenting allocations to the Coast Guard, pre-\nsumably for vessels, against which obligations now\ntotal $43, 316.06. Nith these adjustments, the re-\nvised total of allocations against which we were in\na position to make purchases July 31, 1941, W8B\n$153, 831, 370.29, as against the $268, 284, 337.00\ns'hown in the re ort of the Division of Defense Aid\nReports.\nSimilarly, the total of obligations shown in the re-\nport of the Division of Defense Aid Reports,\n$59,028,048.54, did not include commitments of\n$28, 802, 915.77 representing telephone, telegraphic\nand letter awards for which signed formal contracts\nhad not been received as of July 31, 1941. The De-\nfense Aid Report's total of 028, 048.54 includes\nonly formal contracts and the commitments of\n628, 802, 915. are additional.\nAs stated to you, this matter has been discussed with\nrepresentatives of the Division of Defense Aid Re-\nports and we have asked authorization to muke the\nRegraded Unclassified\n-2-\n193\n\"frozen funds\" available for new purchases. Those\nrequisitions included in their total which we were\nnot able to go forward with are also being carefully\nanalyzed so that any further reports will give a com-\nplete picture.\n(b) Our first formal contract for iron and steel purchases\nwas not executed until July 11, 1941. This type of\npurchase will represent in dollar value in excess of\n50% of our total purchases. Therefore, the obligations\nfor iron and steel as of July 31, 1941, represented but\na very small part of the total allotments at that time\nfor such purchases.\nUnder the existing lend-lease procedure, funds are provided\nto cover each approved requisition received, accordingly, the total\nof \"frozen funds\" has been steadily increasing and as of yesterday\nWBS $128,164,124.89, out of total pending requisitions in the amount\nof $230,842,996.92. Illustrative of the items covered by requisi-\ntions on which funds are \"frozen\" is one for zinc to cover 132,832\ntons, deliveries to be made through December 31, 1942, for which\n$20,000,000 was allocated. Thus far, OPM has allocated a total\nof 23,400 tons, hence, actual obligated funds are but $3,599,660.60\n8.8 against $20,000,000 allotted for the 18-months' purchase.\nLikewise, we received blanket requisitions for carbon steel\nrequirements in the total amount of 1,000,000 tons and funds are\nallocated to the extent of $40,000,000. Allocations by OPM could\nnot be made until the sub-requisitions are received giving de-\ntailed specifications of current requirements.\nIn view of the report of the Division of Defense Aid Reports\nshowing total figures, it ia my intention to discuss with them the\nfactors indicated above in order that a report of results will\nspecify limitations and give a more complete picture.\nClinton E. Mack,\nDirector of Procurement\nStatement Enclosed\nRegraded Unclassified\nJuly 31, 1941\nDEFENSE AID REPORT\nPROGUREMENT DIVISION ANALYSIS\nTREASURY\nLIMITATIONS\n$512,403,035.00\n$512,403,035.00\nLESS\n450,000.00*\n$511,953,035.00\nALLOCATIONS\n$268,284,337.00\n$268,284,337.00\nLESS\n450,000.00*\nIf\n9,742,727.99**\nIf\n98,930,860.72***\n153,831,370.29\nOBLIGATIONS\n$ 59,028,048.54\nCONTRACTS\n$ 58,984,732.48\nCOMMITMENTS\n28,802,915.77\n87,787,648.25\n% LIMITATIONS ALLOCATED 52.36\n30.05\n%LIMITATIONS OBLIGATED 11.52\n17.15\n% ALLOCATIONS OBLIGATED 22.00\n57.07\n# Coast Guard Funds\n## Revolving Fund\n### Funds allocated on requisitions dependent on OPM allocations also blanket requisitions\non which action is taken as and when sub-requisitions are sent to Procurement Division\nfor purchase action.\n194\nRegraded Uncla\n195\nALLECATIONS AND OILIGATIONS of LEND-LEASE (TMBA) IN\nRELATION TO DEPARTMENTAL LIMITATIONS\nL5 or JULY 11, 1961\nAircraft and\nApricaltural,\nNewting, In-\nOrdrance and\nMiscellaneous\nAeronautical\nTanks and\nIndustrial,\nVasanis,\nspecialing\nlecensary\nOrdnante Stores\nMilitary\nFacilities and\nDepartment\nMaterial\nand other\nOther Vehicles\nPrinting 16-\nJervices end\nadministrative\nShips, 3tc.\nExpiripment\nComplitive\npairin, Etc.\nExpenses\nTotal\ncorrecture\nIleitations\n**\nI\n..\n#\n..\nI\n\"\n$\nallocations\n..\n1 3,000,000.00\n$350,000,000.00\n:\n$\n**\nor\n:\n690,305.00\nI 353,590,308.00\n-\n:\n..\n..\nBligations\n\"\n258,310,200.00\n:\n..\n..\n690,305.00\n259,006,505.00\n**\n:\n..\n:\n:\n145,917,496.94\nFF\n---\n2,302.19\n145,819,797.13\n$ of Limitations Allocated\n\"\n:\n⑉\n1 of Eleitations Obligated\n\"\n:\n\"\n73.80\n:\n11\n100.00\n73.21\n\"\n\"\n...\n$ of Allocations Obligated\n\"\n..\n\"\n41.66\n..\n11\n.33\n23.23\n..\n..\n:\n..\n\"\n\"\n56.45\n:\n**\n31\n56.30\nMritier Commission\nlimitations\n14,000.00\n102,000.00\n4,921,500.00\n621,000,000.00\n:\n10,000,000.00\n1,545,000.00\nIllocations\n50,000,000.00\n266,000.00\n294,000.00\n728,140,500.00\n:\n--\n:\n$39,656,800.00\n:-\n50,000,000.00\n1,206,000.00\nObligations\n21,116,799.00\n264,000.00\n294,000.00\n612,537,599.00\n::\n\"\n:\n$13,939,711.75\n..\n67,955,381.13\n808,494.16\n13,797,351.53\n254,000.00\n4,501.96\n578,769,440.55\n1 of linitations Allocated\n..\n\"\n:\n86.90\n:\n100.00\n78,00\n0.23\nLet Limitatione Obligated\n100.00\n100.00\n04.12\n\"\n--\n82.76\n:\n95.9L\n52.33\n31.59\n100.00\n* of Allocations Obligated\n1.53\n79+49\n..\n:-\n:-\n95.23\n:-\n95.91\n57.04\n76.81\n100.00\n1.53\n96.49\nany\nLimitations\n380,000,000.00\n235,000,000.00\n:\n146,500,000.00\n12,500,000.00\n100,000,000.00\n155,000,000.00\n80,000,000.00\ndibitima\n1,300,000.00\n125,000.00\n1,110,625,000.00\n379,388,917.00\n175,614,421.00\n..\n146,403,490.00\n12,223,086.00\n97,260,000.00\n146,743,750.00\n76,885,360.00\n(bligations\n1,300,000.00\n325,000.00\n1,036,164,828.00\n101,925,370.75\n13,639,778.36\n\"\n30,852,952.95\n13,547.00\n5,065,579.00\n27,771,722.18\n39,730,962.43\n54,226.18\n:\n221,974,038.95\n1st Allocated\n99.64\n74.73\n..\n99.93\n97.79\n90,28\n94,67\n90.11\n100.00\n100.00\n93.50\nI 4d Obligated\n26,82\n6.66\n..\n21,06\n->1\n5.97\n17.92\n20.00\n4.37\nI of Obligated\n..\n19.99\n26,87\n6,92\n:\n21.07\nall\n0.11\n17.00\n32.60\n4.17\n..\n21.42\nBdwain\n14\n4,970,000.00\n1,925,366.00\n450,000.00\n3,725,000.00\n1,028,400.00\n500,000,000.00\n:\n5,000.00\n299,269.00\nallocati:\n512,403,035.00\n\"\n4,970,000.00\n1,805,366.00\n450,000.00\n3,725,000.00\n258,400.00\n258,772,302.00\n:\n1,000.00\n249,269.00\n268,284,337.00\nAugust\n..\n2,705,275.03\n81,973.11\n43,316.06\n1,801,271.38\n77,175.00\n54,774,277.47\n..\n:\n42,859.69\n59,026,048.54\n: at Des\nAllocated\n:.\n100,00\n93.77\n100.00\n100.00\n25.13\n51,35\n...\n100,00\n10.00\n52.30\nat\nObligated\n\"\n54.43\n4.26\n9.63\n48.36\n7.19\n19475\n13\n:\n16.92\n11.52\nNO\nChligated\n14\n54.43\n4+54\n9.63\n48.36\n30,60\n21,11\n:.\n:\n14.32\n22,00\n-\nto\n1,110,000,000.00\n1,813,928,000.00\n260,000,000.00\n..\n293,000,000.00\n436,000,000.00\n31,000,000.00\n25,000,000.00\n11,626,306.00\n3,300,000.00\nWars\n4,183,054,506.00\n998,759,756.00\n1,520,577,987.00\n348,304,232.00\n..\n25,025,360.00\n231,952,002.00\n27,411,260.00\n20,603,108.00\n11,626,506.90\n3,300,000.00\n3,269,770,211.00\n418,016,691.04\n1,239,703,240.45\n213,266,375.53\n\"\n44,657,328.92\n132,109,081.07\n2,305,794.43\n..\n717,372.22\n2,050,400,005.00\nis\nlet la\n89.98\n83.83\n75.72\n\"\n29,02\n57.79\n£1.21\n100.00\n100.00\n7:14\nObligated\n37.66\n68.35\n46.36\n..\n15.24\n30.30\n7.64\n:\n6.19\n1,2%\nA/R\nof\n41.85\n81.53\n61.23\n-\n52.52\n52.43\n7.84\n:\n5,17\nIdA\neve\nRegraded Unclassified\n196\nAugust 25, 1941.\nMemorandum for the Secretary's Files\nBy pre-arrangement Merle Cochran brought in to see me\non Wednesday, August 20, Mr. Teutomu Nishiyama, the Japanese\nFinancial Attache. The sole purpose of Mr. Nishiyama's visit\nwas to present the attached memorandum and to ask its careful\nconsideration by the Treasury Department. The memorandum deals\nwith the matter of Japanese accounts in the United States and\nthe freezing order. Mr. Nishiyama's request was that this be\ngiven careful consideration by the Treasury Department, which\nI assured him would be done. He had previously given another\ncopy of the memorandum to Merle Cochran, who undertook to see\nthat it got adequate consideration. Mr. Nishiyama understood\nthat but his visit to me was for the record.\nAttachment.\nRegraded Unclassified\n197\n1) It 1s estimated that Japan will require funds to the ex-\ntent of about $8,500,000 during this year in order to oon-\ntinue coupon payments and redemption of various Japanese\nGovernment, Municipal and Corporation Bonds (coupon pay-\nments on repatriated bonds excluded).\n2) The Yokohema Specie Bank, Ltd., New York Agency has funds\nat present to the extent of about $6,000,000.\n3) It is estimated that the Yokohama Specie Bank, Ltd., New\nYork Agency will be required to remit to Yokohama Specie\nBank, Ltd., San Francisco, Los Angeles and Seattle, a total\nsum of about $1,000,000, during this year to cover their\noperation expenses within their respective states, and also\nto maintain adequate reserve for deposits at the Yokohama\nSpecie Bank, Ltd., San Francisco and Los Angeles.\n4) It is estimated that the Yokohama Specie Bank, Ltd., New\nYork Agency will require during this year about $2,000,000\nto pay its obligations and to cover operation expenses\nwithin the State of New York.\n5) In view of the above, in order to continue the said coupon\npayments and redemption of Japanese Bonds, the Yokohama\nSpecie Bank, Ltd., New York Agency, will be in need of funds\nto the estimated extent of $5,500,000 during this year.\n6) Furthermore, the Yokohama Specie Bank, Ltd., New York Agency\nhas obligations to the extent of about $6,500,000 under its\nconfirmed irrevocable Letters of Credit (not documentary)\npayable on and after January 1st, 1942.\nRegraded Unclassified\n198\n7) Therefore, in order to be in funds to meet the requirements\nmentioned above, the Yokohama Specie Bank, Ltd., New York\nAgency must collect its Import Bills Receivable collectable\nwithin New York State which total at present about $19,500,-\n000. (There are also Import Bills Receivable collectable\noutside New York State--mostly payable in South and Central\nAmerica--totalling about $5,000,000 but which are not con-\nsidered in this writing.)\nHowever, under the freezing order, the Yokohama Specie Bank\nLtd., New York Agency is unable to collect these Bills Re-\nceivable at present with few emoeptional 08868. Moreover,\nsince the major portion of these Bills Receivable collectable\nwithin New York State, namely about $16,000,000, are bills\ncovering imports of Raw Silk (all of this silk is in the U.\nS.) and payable by Japanese firms, whose assets are also\nfrozen, there appears to be remote prospects of completing\ncollection of such bills. Under the circumstances, special\nconsideration is requested for the issuance of license allow-\ning the following:\n1) to permit the Yokohama Specie Bank, Ltd., New York\nAgency, to present such bills for acceptance and\npayment, to deliver documents and/or Delivery\nOrders on Warehouses and to effect disbursements\nincidental to the collection of such bills.\n-2-\nRegraded Unclassified\n199\n2) to enable the Japanese firms who are drawees of\nsuch Bills Receivable to perform the necessary and\nincidental operations in order to effect payment to\nthe Yokohama Specie Bank, Ltd., New York Agency.\n8) Regarding the Bills Receivable covering Raw Silk, it may be\nmentioned that out of the $16,000,000 mentioned above,\nabout $12,000,000 worth of Raw Silk had been delivered to\nthe respective drawees against Trust Receipt and/or accept-\nance of the relative bills, and that the balance of Raw\nSilk of about $4,000,000 is held in the name of the Yokohama\nSpecie Bank, Ltd., New York Agency. Since there 18 a spe-\ncial freezing order affecting Raw Silk, special considera-\ntion and measures are requested to eliminate difficulties\nin connection with payments of these silk bills.\naug. aug.20.1941 20.1941\n-3-\nRegraded Unclassified\n200\nTREASURY DEPARTMENT\nINTER OFFICE COMMUNICATION\nCONFIDENTIAL\nDATE August 25, 1941\nTO\nSecretary Morgenthau\nFROM\nPrepared by: Mr. Chevraux and Mise Michener\nSubject: The Business Situation,\nWeek ending August 23, 1941.\nSummary\n(1) Weekly indexes of business activity have receded\nmoderately from the recent peak reached in the fourth week\nin July. Barron's index has declined for 3 consecutive\nweeks, although the aggregate decline 18 less than 2 per-\ncent. The New York Times index has shown about the same\ndecline from the recent neak, despite a fractional rise in\nthe week ended August 16.\n(2) Production of 1942 model passenger care 18 expected\nto be out 50 percent. Curtailment for the 4 months ending\nNovember 30, however, will be limited to 26.5 percent for\nthe industry AB a whole. Production of trucks of 1* tone or\nmore will be unrestricted.\n(3) Non-defense consumers of steel are worried over their\nability to get steel supplies after September 1 when the full\neffect of the recent priorities order will be felt. As a re-\nsult of the seriousness of the steel scrap shortage, defense\nofficials will meet this week with scrap brokers end industry\nrepresentatives to seek means to increase scrap supplies.\n(4) Retail trade continues to boom, with department\nstore sales in the week ended August 16 running 40 percent\nabove year-earlier levels. Some additional stimulus to buy-\ning has resulted from the impending curb on installment\npurchases which 18 to become effective on September 1.\n(5) The BLS all-commodity index in the week ended August 16\nVas unchanged at 89.6 after advancing for 5 consecutive weeks.\nBasic commodity prices rose slightly last week, due to an ad-\nvance in domestic commodities led by barley, cottonseed oil\nand lard.\nRegraded Unclassified\n201\n- 2 -\nIndustrial production at high level\nThe preliminary estimate of the FRB seasonally-adjusted\nindex of industrial production for July was confirmed by\nmore complete information and the index still stands at 162,\nas compared with 157 in the previous month. (Bee Chart 1.)\nPublication of results for the various components of the index\nreveale that, on a seasonally-adjusted basis, the durable\ngoods industries closely identified with the defense program\nwere again in the vanguard of the rise, Thus, such items as\ntransportation equipment, machinery and non-ferrous metals\nmoved up sharply to new highe. (Refer to Chart 1, lower\nsection.)\nThe rise in the adjusted index, however, was entirely\ndue to the operation of seasonal adjustment factors, since\nthe level of the unadjusted index in July was unchanged from\nJune. Normally, a decline in production occurs during July,\nand the fact that production held steady caused the adjusted\nindex to rise substantially. In contrast, it should be\nnoted that seasonal factore from now into the fall call for\n8. rise in actual production, BO that merely to maintain the\npresent level of the index, output will have to show a\nnoticeable rise.\nWeekly business indexes below peak\nThus far in August, both the New York Times and Barron's\nweekly indexes of business activity have shown recessions\nfrom the peak figures reached in the fourth week in July.\nBarron's index has declined gradually for 3 consecutive weeks\nto 138.8 in the week ended August 16 from 141.0 in the week\nended July 26. The New York Times index in recent weeks has\nmoved more erratically. In the week ended August 16, it\nmoved up 0.3 point to 130.9. However, this figure was still\n2.4 points below the July peak. (See Chart 2, top section.)\nOne important factor in the fluctuations in the Times\nindex has been the difficulty of making proper seasonal adjust-\nment for automobile production. Continued relatively large-\nscale production in the fourth week in July helped to run the\nindex up to the peak figure then recorded. This was followed\nby a sharp decline in the following week as large-scale produc-\ntion ourtailment got under way. Nevertheless, production\nduring the change-over period has continued to stay well\nabove year-earlier levels. Thue, output last week was nearly\ndouble that of the corresponding week in 1940. (Refer to Chart 2,\nmiddle section.)\nRegraded Unclassified\n202\n- 3 -\nNear the end of the week, the production quotas for the\nmanufacture of 1942 model cars were announced by OPM and OPACS.\nAlthough it 1s intended to curtail passenger car production\n50 percent for the entire model year, the curtailment in the\nfour months ending November 1941 will be limited to an over-\nall out of 26.5 percent. The out for each individual company,\nhowever, differs rather noticeably from that fixed for the\nindustry as a whole. Furthermore, there will be no restric-\ntions in the output of trucks of 1/ tone or more, which in\nfact have been given B. high priority rating.\nLumber production heavy\nA sustaining factor in the Times business index in recent\nweeks has been lumber production. Stimulated by the boom in\nbuilding, lumber production recently has been reaching new\nhighe, and in the week ended August 16 reached the highest\nlevel in 11 years. As a result, the adjusted index of lumber\nproduction has risen 6 percent since the latter part of July.\n(Refer to Chart 2, middle section.) Lumber prices as a whole\nrecently reached the highest level in 18 years, and about a\nweek ago OPACS imposed a price ceiling on Southern pine\nroughly $3.00 per thousand board feet under prices recently\nprevailing for that type of lumber.\nFreight carloadings still below June peak\nAlthough railroad freight traffic has continued to run\nfar above year-earlier levels, carloadings have not exceeded\nthe peak figure reached at the end of June. (Refer to Chart 2,\nlower section.) After sagging moderately in the previous\n2 weeks, freight carloadings in the week ended August 16 rose\nsomewhat more than seasonally and contributed to the rise in\nthe Times business index during that week.\nWhile the seasonal peak in freight carloadings does\nnot come until the early part of October, the failure of\ncarloadings to move above their late June peak apparently\nhas caused somewhat less concern to be evidenced recently\nregarding the railroads' ability to handle the fall traffic.\nHowever, the average daily surplus of freight cars in the\nearly part of August was reported to be down to 59,000 oars,\nas compared with 129,000 a year earlier. One factor which\nhas tended to alleviate somewhat the equipment situation\nhas been the headway made by the railroads in their repair\nprogram. Thus, by August 1, bad-order cars had been out\nto 4.8 percent, as compared with 9 percent & year earlier.\nRegraded Unclassified\n203\n4\nAs a result of the heavy equipment buying program of\nthe railroads, freight cars on order on August 1, 1941\ntotaled 89,000 as compared with only 20,000 & year earlier.\nHowever, partly due to lack of steel, equipment manufacturers\nhave not been able to turn out new cars as fast as\nexpected. As & result, new freight cars actually installed\nin the first 7 months of 1941 showed a gain of less than\n3,000 units over the comparable period in 1940.\nNon-defense steel consumers worried by priorities order\nThe railroads are among the various consuming groups\nwho are concerned over their ability to get steel supplies\nafter September 1 when the full effects of the recent\nsteel priorities order will be felt. Under this order,\nsteel mills will have to complete defense orders ahead of\nnon-defense work. In the face of this situation, the\nrailroads have placed orders for thousands of tons of\nrails which are needed in operations and yet carry no\npriorities rating. As a result of the steel priorities order,\nsuch non-defense steel consumers as makers of refrigerators,\nwashing machines, stoves, signs, bed springs, etc., are ex-\npected to have to curtail operations.\nSteel operations slightly higher\nSteel operations last week rose 0.7 point to 98.2 per-\ncent of capacity. This rate, however, is still 1.4 pointe\nbelow that prevailing at the end of July. (Refer to Chart 2,\nlower section.) The shortage of steel scrap continues to be\na major concern of the steel industry and, in view of the\nseriousness of the situation, defense officials have called\nabout 150 scrap brokers and representatives of steel mills\nand foundries to meet with them on August 27 to seek means\nof increasing supplies of scrap.\nRetail trade boom continuing\nThe recent upsurge in retail trade has thus far shown\nlittle sign of abating. Department store sales during the\nweek ended August 16 again ran far above year-earlier levels\nwith the nation-wide gain amounting to 40 percent. The\nlargest increase occurred in the Cleveland district where\nsales were 54 percent above the corresponding week in 1940.\nSome additional stimulus to buying 18 reported to have\nresulted from the impending curtailment of installment\ncredit. Near the end of the week, the Federal Reserve\nRegraded Unclassified\n204\n- 5 -\nBoard announced that the curb on installment credit would\ngo into effect on September 1 and would apply to 24 durable\nconsumer goode items.\nNew orders index elightly lower\nOur index of new orders for the week ended August 16\nshowed 8. further decline of approximately 2 percent. Refer-\nenoe to Chart 3 will reveal that the unusually heavy ordering\nwhich occurred in July has been followed by & considerable\nlet-down which has now run into its third week.\nThe small decline in the week ended August 16 was almost\nentirely due to a decline in orders for other products than\nsteel and textiles. New orders for steel during the week\nmentioned actually rose to 125 from 123 percent of capacity,\nwhile textile orders showed only a very slight decline.\nBLS all-commodity index unchanged\nAfter 5 consecutive increases, the BLS all-commodity\nindex of wholesale prices was unchanged at 89.6 for the\nweek ended August 16. All but 2 of the 10 major groups\ncomprising the index showed gains, but these were offset\nby a 1.6 percent decline in farm products and a trifling\ndecrease in fuel and lighting materials.\nBasic commodity prices a trifle higher\nAlthough the BLS index of 11 import commodities declined\n1.1 percent in the week ended August 22, this decline was\nslightly more than offset by B. rise in domestic commodity\nprices. (See Chart 4, top section.) As & result, the com-\nbined index of 28 sensitive commodities rose fractionally\nduring the period mentioned.\nThe deoline in import commodities was due almost\nentirely to a sharp drop in the price of burlap resulting\nfrom the imposing of a price ceiling by OPACS well below\nrecent market levels. (Refer to Chart 4, lower section.)\nThe rise in domestic commodity prices last week was led\nby barley, oottonseed oil and lard. (Refer to Chart 4, lower\nsection.) Hog prices also strengthened and reached & new high\nfor the year. The rise in lard, hoge and allied products was\nattributed in part to the effects of Government buying. Thus,\nGovernment purchases of lard and cured and canned pork products\nlast week were reported to have reached the highest levels\nsince last May.\nRegraded Unclassified\n205\n- 6 -\nJune exports declined despite foodstuffs gain\nExcort figures recently released for the month of June\nreveal that the trend toward increased foodstuffs exports\nreceived further impetus in the month mentioned. Ae a\nresult of substantial shipments of meats, dairy products\nand egge under lend-lease arrangements, manufactured food-\nstuffs exports reached B. total of $28,000,000 -- the highest\nmonthly figure since November 1930. Due to the increased\nfoodstuffs shipments, total agricultural exports in June\nran 40 percent above year-earlier levels. (See Chart 5.)\nDespite the gain in meats and dairy products shipments,\naggregate exports of United States merchandise in June dropped\n12 percent below the previous month and totaled $332,000,000.\nFarticularly noticeable declines occurred in exports of air-\ncraft, machinery, and automobiles. (Refer to Chart 5.)\nIn making public the June export figures, the Department\nof Commerce stated that part of the decline was due to B.\nchange in statistical procedure whereby the usual period for\nincluding delayed documents was shortened. Thus some ship-\nments, estimated at 5 percent of the total, which were\nactually made in June will be carried in the July trade\nstatistics.\nRegraded Unclassified\nFEDERAL RESERVE BOARD INDEX OF INDUSTRIAL PRODUCTION\n1935-39-100\n1939\n1940\n1941\n1942\nJFMAM 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\nPERCENT\nPERCENT\nSeasonally Adjusted\n165\n165\n160\n160\n155\n155\n150\n150\n145\n145\n140\n140\n135\n135\n130\n130\n125\n125\n120\n120\n115\n115\n110\n110\n105\n105\n100\n100\n95\n95\nJ 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\n1939\n1940\n1941\n1942\nSelected Components\nJune and July 1941. Compared with 1935-39 Average\nPER\nTransporation Equipment\nCENT\nSexeenally Adjusted\nMachinery\n220\nNonferrous Metals\n200\niron and Stee/\n180\nTextiles\nCOMBINED INDEX\n150\nStone, Clay and Gloss\nChemicals\nLumber: etc.\n140\nFivers\nAnnung and Publishing\nLeather. etc.\nManufactured Foods\n120\n100\n1935-39\nJune\nJuly\n100\n1941\n206\nof - - of - Transary\nC-383-5\n- I - -\nChart 1\nRegraded Unclassified\nSELECTED BUSINESS INDICES\nBUSINESS ACTIVITY\nPER\nCENT\nSeasonally Adjusted\nEst Normal 100\n130\n44\n120\n40\n110\n39\n100\nNO\nN X Times\n80\nJAN\nMAR.\nMAY\nJULY\nSEPT.\nNOV\nLUMBER PRODUCTION\nAUTOMOBILE PRODUCTION\nPES\nCARE\nCENT\n1935 39 . 100. Adjusted\nTHOUSANDS\nU.S. and Canada\n140\n150\n41\n401\n47\n130\n125\n40\n120\n100\n110\n75\n20\n39\n100\n50\n40\n25\nN.F. Times\nWords Est.\n60\n0\nJULY\nSEPT.\nNOV\nJAN\nMAR.\nMAY\nJULY\nSEPT.\nNOV\nJAN\nMAR.\nMAY\nFREIGHT CAR LOADINGS\nSTEEL INGOT PRODUCTION\nCADE\nPER\nTHOUSANDS\nTotal\nCENT\nPer Cent of Capacity\n40\n900\n100\n41\n800\n40\n-\n60\n700\nN\n6E.\n60\n$00\n40\n500\n207\nAm #y Agen\nAmar / and 3 Inst\n400\n20\nMAR\nMAY\nJULY\nSEPT\nNOV\nJAN\nMAR\nMAY\nJULY\nSEPT\nNOV\nJAN.\n(ffice of the Security of the Trabary\nC-404-3\n- - - -\nRegraded Chart Unclassified\nn\nINDEXES OF NEW ORDERS\nCombland Indes of How Orders and Selected Components\n335\n1940\n1941\n.\n&\na\n-\ne\nof\n,\n,\nP\n.\nA\n3\ne\n-\ndi\nPERCENTABLE\nPOINTS\nPOINTS\n250\n290\n280\n280\n270\n270\n260\n260\n250\n250\n240\n240\n230\n230\n220\n220\n210\n210\nTotal (contribut Index)\n1008 . 100\n200\n200\n(se\n190\n160\n180\n175.\n170\n160\n160\n150\n150\n140\n146\n136\n130\n120\n120\n110\n110\n100\n100\n8\n90\n80\nTotal assisting Steel and Textiles\nto\n70\n70\n8\n60\n50\n50\nB\n40\nStall Orders\n30\n30\nzu\n20\n10\nTestile Orders\n10\no\n.\n$\n0\n.\n0\n-\n.\nA\n.\n5\ne\na\ne\nJ\nF\n.\nA\n.\nc\n-\n,\n4\n&\n#\n.\n.\n208\n1939\n1940\n1941\n- - - - - - -\n- 4 - - -\n1-6-0\nChart 3\nRegraded Unclassified\n209\nMOVEMENT OF BASIC COMMODITY PRICES\nDomestic and Imported\nAUGUST 1939-100\nPER\nPER\nPER\nCENT\nPER\nWeekly Average\nCENT\nCENT\nDaily\nCENT\n165\nIGO\n150\n165\n160\n160\n140\n140\n// Imported\n// Imported\nCommodities\nCommodities\n155\n155\n130\n130\n17 Domestic\n150\nCommodities\n150\n120\n120\n145\n145\n110\n110\n17 Domestic\n140\nCommodities\n140\n100\n100\n135\nA M J J A S o N D , F M A M J J A S o\n2\nsi\n,\n14\nII\n$\n5\n12\n19\n26\n2\n1\n16\n19\n30\n6\n135\n1940\n1941\nMAY\nJUNE\nJULY\nAUG.\nSEPT\n1941\nPercentage Change for Individual Commodities. August 1940 Low to August 15 and to August 22, 1941\nPER\nTollow 135,7%\nPER\nCENT\n17 Domestic Commodities\n\"Cottonsed Oil 1303X\nCENT\nII Imported Commodities\n120\n=120\nLord 100.0%\n-100\n-100\n*Coffee 982%\nShellac 966%\nNogs 8443\n*Coroo 055%\n-80\nPrint Clath 6935\n+80\nCotton 68.5%\n\"Burlop 729%\nViegin 623%\n+60\nWheat 596%\n*60\nHides 53,8%\nButter 321%\nWool 501%\nBarley 204%\nSugar 418%\n*40\nLead 232%\n+40\nCom 165%\nFlasseed 32.9%\nSteers /6.3%\nSilk 21.0%\nZine 1512\n+20\n+20\nRubbar202%\n\"Capper 110%\nStee/ Scrap.dem 8.72\nTin 30%\nSteal Screp exp. 2.7%\n0\n0\nAug. 1940\nAug 15\nAug. 22\nAug. 1940\nAug.15\nAug.22\nLow\nLow\n-\nRegraded Unclassified\nU.S. TOTAL TRADE AND EXPORTS BY COMMODITIES\n-\n-\nDOLLARS\n-\n-\n1934\nTEM\nHD\nHOW\n-\n1141\n(H)\nMillions\nDOLLARS\nMinume\n(\nsue\nTOTAL TRADE\n-\nare\n-\n400\nAND\n140\nExports\n- —\nmm/\n18A\nImports\n100\nsee\n230\n200\nwww\n190\n150\n150\n100\n190\n140\n159\nTrade Balance\n100\n100\n50\n56\nB\n#\n-58\n-3u\n1927\n1980\nINTI\nvou\n1411\n-\n1933\n-100\nITEM\n1917\nIVSA\nme\nINS\n1941\nEXPORTS OF US MERCHANDISE\nTotal Nonagricultural\nSelected Nonagricultural Commodities\nDOLLARS\nDOLLARS\nDULLARS\nDOLLARS\nMillions\nMillione\nMachinery\nMines\nIren and Stati\nMilliani\n15\nImpe and Ital Serve\n41\n(tail\nis\n325\n45\n45\n10\na\nE\n\"\n\"\ne\n300\n9\nso\n12\n#\nà\n-\n-\n*\n-\na\n,\nA\n.\n0\n-\n-\n43\nin\n\"\n275\n4d\n10\nand Preducts\n\"\nNO\nJE\n31\n19\n45,\n250\n-29\n14\n18\n40\n=\nIN,\n225\n\"\n$\na\n\"\n.\n29\n38\n4\n*\n.\n$\nL\n.\n-\no\n-\ne\n200\n19\n40\n21\nAutomobiles\n18\n45\n10\n175\n.\n\"\n15\n-\nM\n28\ne\nas\n-\n1\n16\nof\nA.\n.\na\nM\ne\n-\n150\n\"\nE\n26\n1\nAircraft\n-\nso\n15\n.\nL\n#\n#\na\n125\n--\n18\nit\n46\n3.\n18\n100\nas\n\"\n.\nI\n/\n-\nA\n-\n.\n=\n-70\n%\nse\n35\n&\n75\n5\nWT\nChannels\n14\n73\n11\n:\nCappir\n16\n20\nto\nso\n-\nÉ\n14\nF4\nIN\n39\nall\n24%\nas\nla\n18\n12\n*\n-\n-\n#\n-\no\ne\na\n.\nJAN MAR MAY ANY SEPT NOV\n-\n.\n-\nA\n2\n-\n4\n1.\n7\nN\n=\n-\n.\n-\n-\nM\nM\n,\nTotal Agricultural\nSalected Agricultural Commadities\nDOLLARS\nINILLANS\nDOLLARS\nDOLLARS\nMillions\nMillions\nI\nMiliam\nCettin\nTobacco\nPrest and Flest\nAB\n48\n18\nisa\n\"\nis\nis\nse\n><\nI\n125\n++\n=\na\n-\n.\n#\n+\n\"\n100\n-\nCarn\n\"\nis\nis\nOF\ne\nse\nle\n10\n75\n5\nill\nIf\n*\n-\n-\nso\nas\ne\nD\n8\nB\nE\n.\n.\n.\n#\ne\n.\n=\nit\n15\n16\n201\nMORTS and Lard\nfruda Dral and\n23\nif\nIS\n19\nCanned\nno\nÉ\n#\n-\na\n1\n,\no\n.\nJAN MAR MAY JULY MPT BUY\nà\nE\nM\n€\n@\nof\na\ne\nJ\nE\nà\n5\nI\nRegraded nclassified\n211\nTREASURY DEPARTMENT - DEFENSE SAVINGS STAFF\nRADIO SECTION\nAugust 25, 1941.\nThe Treasury Hour program, \"Millions For\nDefense\", LOW holds top place on the Hooper\n\"National Ratings\" report which is based on the\nlistening audience of the network shows.\nThis program is broadcast from 8:00 to\n9:00 P. M., Wednesdays, over the Columbia\nBroadcasting System.\nPlease note the column marked \"Program\nRating\" on the enclosed copy of the Hooper\nSurvey. \"Millions For Defense\" heads the list.\nRegraded Unclassified\nC. E. HOOPER, INC.\nAVERAGE CALLS PER HOUR\n2928\n\"NATIONAL RATINGS\" REPORT\nAURUST, (94)\nReport for\nEVENING PROGRAMS\nBASED ON WEEK BEGINNING FAIDAY, AUGUST 1, 1941,\nSETS-IN-USE\"\nPROGRAM\nPER CENT OF\nRATING\"\nLISTENERS\nRANKING\nSPONSOR\nPROGRAM\nNET-\nDAYS\nTIME=\nWORK\nTHIS\nTHIS\nTHIS\nREPORT\nCHANGE\nREPORT\nREPORT\nCHANGE\nORDER\nCHANGE\nTREASURY DEPARTMENT\nMILLIONS FOR DEFONSE\nCBS (30)\nWEDNESDAY\n9:00\n21.9\n-0,3\n9,9\n+1.3\n45,3\n+6,6\n1\nJERGEN'S LOTION\nWILLIAM SHIPERFOR. WWinchell\ne( 17) 13)\nSUNDAY\n9:00/\n24,2\n-5.1\n9,7\n-6.3\n40.2\n-21,2\n2\nKRAFT CHEESE COMPANY\nDON AMEDHE for Bing Crosby\nRED (30)\nTHURSDAY\n9:00\n20.5\n-5,4\n9,7\n-2.1\n47.3\n+1,9\n3\nSEALTEST, INC.\nRUDY VALLEE\nA( 19) B(4)\nTHURSDAY\n10:00\n22,0\n-3,1\n9,6\n-0,4\n43,6\n+3,6\n4\nKAY KYSER I\nRED (30)\nWEDNESDAY\n10:00\n22.7\n-3,6\n9,3\n-0.8\n40,8\n+2,5\n5\nLUCKY STRIKE CIGARETTES\nTAKE IT OR LEAVE IT\nCBS (30)\nSUNDAY\n10:00\n23.0\n+0,2\n9,2\n-1.8\n40.0\n-6.3\n6\nEVERSHARE, INC,\nHAP HAZARD\nRED (30)\nTUESDAY\n9:30\n21,4\n+0,9\n8.8\n+1.0\n40.9\n+2,9\n7\nJOHNSON'S WAX\nMR. DISTRICT ATTORNEY\nRED (30)\nWEDNESDAY\n9:30#\n24.0\n+0.3\n8.5\n+0.1\n35,6\n0.0\nB\nVITALIS\nWOKY STAIKE CIGARETTES\nINFORMATION PLEASE\nR(24) B(6)\nFRIDAY\n8:30\n20.4\n-2.7\n8.2\n40.4\n40,0\n+6.1\n9\nPURE OIL COMPANY\nHe M. KAL TENBORN\nR(7) B(1)\nTTSA\n7:45\n20.5\n+2,0\n8.2\n0.0\n40.0\n-4,5\n10\n+2.4\n7.9\n-0,2\n34.0\n-5.0\n\"\nPERSODENT\nA. DATE WITH JUDY\nRED (30)\nTUESDAY\n10:00\n23.1\nSUN On COMPANY\nLOWELL THOMAS\nB(8) R(5)\nMIWIF\n6,45\n17,6\n-4,4\n7.7\n-2.2\n43.9\n-1.2\n12\nMARS, INC.\nDOCTOR 1.0.\nRED (30)\nMONDAY\n9:00\n24,7\n-1.0\n7,7\n+0.9\n31.1\n+4.6\n13\nCAMEL CIGARETTES\nB.ONDIE\nCBS (30)\nMONDAY\n7:30/\n19.6\n-0,4\n7,4\n-0,6\n38,0\n-2.2\n14\nSANKA COFFEE - GENERAL FOODS\nWE, THE PEOPLE\nCBS (30)\nTUESDAY\n9:00!\n22,5\n-0,4\n7,4\n-1.1\n32.8\ni'm\n15\nROYAL DELATIN DESSERTS\nWHAT'S My NAME:\nRED (30)\nSUNDAY\n8:00\n16.6\n7,3\n39.0\n16\nLUCKY STRIKE CIGARETTES\nYOUR HIT PARADE\nCBS (30)\nSATURDAY\n9:00P\n18.6\n-1.3\n7.2\n-0.1\n38.7\n+2,0\n17\n-2.7\n35.4\n-6.6\nTENDERLEAF TEA\nONE MAN'S FAMILY\nRED (30)\nSUNDAY\n8:30\n20.0\n-2.2\n7.1\nis\nRINSO - LEVER BROS,\nDRAND CENTRAL STATION\nCBS (29)\nWEDNESDAY\n8:00\n21,0\n7.1\n33.9\n19\nCAY NINETIES REVUE\nCBS (28)\nPONDAY\n6:30\n22.0\n+0.2\n6.8\n+0.7\n31.1\n+3,2\n20\nMODEL TOBACCO\nEMERSON DRUG Co.\nyou POP\nCBS (22)\nMONDAY\ne:00\n17,4\n5.7\n38.5\n21\nWOODBURY SOAP\nTHE PARKER FAMILY\ne(17)R(13)\nSUNDAY\n9:15\n18.5\n-5,8\n6,5\n-3,2\n35,4\n-4,5\n22\nCHESTERFIELD CIGARETTES\nTAID WARING\nRED (30)\nKTLTE\n7:00/\n20.1\n-1.1\n6,5\n40,8\n32,4\n+5,6\nN\n% Sex \"Program\nformal - estal calls is class\ncitize resiving quelic\nConst Now York Time.\n$\nFIRST HALF-HOUR OF PROADCAST.\nFigure Le parathegia indiciti\n- Beard -\nIncludes\nclocking prints and\nRegraded Unclassified\n213\nDEFENSE SAVINGS STAFF\nADVANCE SCHEDULE OF RADIO PROGRAMS\nMONDAY - AUGUST 25, 1941.\nTime:\n1:45 - 2:00 P.M.\nProgram:\nKate Hopkins\nStation:\nWJSV and CBS Network\nTime:\n2:30 - 2:45 P.M.\nProgram:\nJohn's Other Wife\nStation:\nWMAL and NBC Blue Network\nTime:\n7:30 - 8:00 P.M.\nProgram:\nVoice of Firestone\nStation:\nWRC and NBC Red Network\nTime:\n9:00 - 9:30 P.M.\nProgram:\nFamous Jury Trials\nStation:\nWMAL and NBC Blue Network\nTime:\n11:15 P.M. - 12:00 M\nProgram:\nMusic You Want, When You Want It\nStation:\nWMAL - Washington, D. C.\nTHESE PROGRAMS PROMOTE THE SALE OF DEFENSE BONDS AND STAMPS.\nRegraded Unclassified\n411\nCONFIDENTIAL\nUNITED STATES SAVINGS BONDS\nComparative Statement of Sales During\nFirst Twenty Business Days of June, July, and August, 1941\n(June 1-24, July 1-24, August 1-23)\nOn Basie of Issue Price\n(Amounts in thousands of dollars)\nI\n1\nAmount of Increase\nI\nSales\nPercentage of Increase\n:\n1\nor Decrease (-)\n:\nor Decrease (-)\nItem\n:\n:\n:\n#\nAugust\nI\nJuly\n:\nAugust\nI\nJuly\n2 August\n:\nJuly\n:\nJune\n-\nover\n1\nover\n#\nover\nI\nover\n1\n:\n#\n:\nJuly\n:\nJune\n2\nJuly\nI\nJune\nSeries 1. - Post Offices\n* 32,136\n$ 40,323\n$ 32,410\n8,157\n$ 7,913\n- 20.3%\n24.4%\nSeries 1. - Banks\n61,343\n73,914\n49,469\n- 12,571\n24,445\n- 17.0\n49.4\nSeries 1. Total\n93,479\n114,237\n81,879\n- 20,758\n32,358\n- 18.2\n39.5\nSeries 1- Banks\n16,297\n20,089\n24,101\n- 3.792\n- 4,012\n- 18.9\n- 16.6\nSeries 0- Banks\n101,430\n127,430\n152,681\n- 26,000\n- 25,251\n- 20,4\n- 16.5\nTotal\n$211,206\n$261,756\n$258,660\n-$50,550\n$ 3,096\n- 19.36\n1,2%\nOffice of the Secretary of the Treasury, Division of Research and Statistics.\nAugust 25, 1941.\nSource: All figures are deposite with the Treasurer of the United States on account of proceeds of\nsales of United States Savings Bonds.\nNote: Figures have been rounded to nearest thousand and will not necessarily add to totals.\nRegraded Unclassifie\nCONF\nUNITED STATES SAVINGS BONDS\nDaily Sales - August 1941\nOn Basis of Issue Price\n(In thousands of dollars)\nDate\nPost Office\nBank Bond Sales\nAll Bond Sales\nBoad Sales\nSeries I\nSeries 3\nSeries Y\nSeries G\nTotal\nSeries I\nBeries 7\nSeries G\nTotal\nAugust 1941\n1\n$ 1,467\n$ 3,296\n$ 1,163\n$ 7,586\n$ 12,045\n4 4,763\n$ 1,163\n$ 7,586\n# 13,512\n2\n1,500\n3,030\n726\n6,101\n9,857\n4,530\n726\n6,101\n11,357\n4\n3,606\n4,376\n1,892\n10,092\n16,361\n7,983\n1,892\n10,092\n19,967\n5\n1,278\n2,822\n928\n7.334\n11,084\n4,099\n928\n7,334\n12,362\n6\n1,810\n4,195\n1,156\n10,752\n16,103\n6,005\n1,156\n10,752\n17,912\n7\n1,789\n3,475\n652\n5,636\n9,763\n5,264\n652\n5,636\n11,552\n8\n1,812\n3,069\n999\n3,362\n7.430\n4,881\n999\n3,362\n9,242\n9\n1,492\n3,195\n958\n4,101\n8,255\n4,688\n958\n4,101\n9.747\n11\n2,683\n3,686\n1,187\n4,308\n9,181\n6,370\n1,187\n4,308\n11,865\n12\n873\n2,281\n488\n4,908\n7,676\n3,153\n488\n4,908\n8,549\n13\n1,430\n3,491\n639\n2,949\n7.079\n4,921\n639\n2,949\n8,509\n14\n1,246\n2,833\n697\n4,594\n8,124\n4,079\n697\n4,594\n9.370\n15\n1,385\n2,876\n566\n2.972\n6,415\n4,261\n566\n2,972\n7.799\n16\n1,020\n2,140\n365\n2,914\n5.418\n3,159\n365\n2,914\n6,437\n18\n2,333\n3.534\n1,099\n4,266\n8,899\n5,866\n1,099\n4,266\n11,232\n19\n768\n1,629\n466\n2,986\n5,082\n2,398\n466\n2,986\n5,850\n20\n1,495\n3,191\n554\n4,058\n7,802\n4,685\n554\n4,058\n9,296\n21\n1,540\n2,585\n646\n4,779\n5,010\n4,125\n646\n4,779\n9,550\n22\n1,372\n3,496\n628\n4,001\n8,126\n4,869\n628\n4,001\n9,498\n23\n1,236\n2,143\n489\n3,731\n6,364\n3,380\n489\n3.731\n7,600\nTotal\n8 32,136\n$ 61,343\n$ 16,297\n$101,430\n$179.071\n$ 93,479\n$ 16,297\n$101,430\n$211,206\nOffice of the Secretary of the Treasury, Division of Research and Statistics.\nAugust 25. 1941.\nSource: All figures are deposits with the Treasurer of the United States on account of prooseds of sales of\nUnited States Savings Bonds.\nNote: Figures have been rounded to nearest thousand and will not necessarily add to totals,\nRegraded Unclassified\n216\nCONFIDENTIAL\nDEPOSITS IN TREASURER'S ACCOUNT FROM\nSALE OF THEASURY BONDS, TAX SERIES I/\nTotal\nAugust 1\nto 23\nDaily Totals\ninclusive\nDate\nAmount\nBoston\n29,083\nAugust 1\n1,736\n2\n49,984\nNew York\n311,295\n4\n16,169\nPhiladelphia\n15,304\nour\n5\n22,502\n6\n21,419\n7\n59,186\nCleveland\n51,294\nB\n55,003\n9\n31,436\nRichmond\n6,520\n11\n46,814\n12\n21,472\nAtlanta\n2,805\n13\n23,089\n14\n41,555\nChicago\n86,291\n15\n11,087\n16\n14,877\nSt. Louis\n12,761\n18\n16,074\n19\n18,716\nMinneapolis\n9,742\n20\n15,438\n21\n35,253\nKaneas City\n6,153\n22\n19,908\n23\n22,952\nDallas\n1,270\nSan Francisco\n12,152\nTOTAL\n-\n544,670\nBased on telegraphic reports from Federal Reserve banks of credits in\nTreasurer's account.\nOffice of the Under Secretary\nAugust 25, 1941.\nRegraded Unclassified\n217\nAugust 25, 1941.\nDear Mr. MaDougall:\nYour letter of August 21st, enclosing\na short digest of the food policy plan for\npost-war reconstruction, reached this office\nduring the Secretary's absence en a brief\nvacation. I shall be very glad to bring year\ncommunication to Mr. Morgenthan's attention\nimediately upon his return to the effice.\nSincerely yours,\n(Signed) H. S. Klotz\n1. s. Klets,\nPrivate Secretary.\nMr. P. A. ReDougall,\nAustralian Legation,\nVashington, D. c.\nGEF/dbs\nRegraded Unclassified\n218\nAUSTRALIAN LEGATION,\nWASHINGTON,D.C.\nAugust 21st, 1941.\nDear Mr. Morgenthaus\nWhen you asked me to send you a\npaper on the food policy plan for post-war reconstruction\nI only had & ten page document available.\nUnder a challenge from Lord Halifax\nI reduced this to a single page which I now enclose.\nI expect to leave by air for England\nnext week.\nYours sincerely,\nth hi Dougall.\nThe Honourable\nHenry Morgenthau, Jr.,\nSecretary of the Treasury,\nWashington, D.C.\nRegraded Unclassified\n219\nIreaten from Rest\nRegraded Unclassified\nIm order to implement in part that aspect of the\nDeclaration which is concerned with freedom from west it is proposed that the\nnations of the British Commonwealth and the U.S.A. should enter into - agreement-\n(1) To accept national policies to ensure that all\nsections of the populations of our respective\ncountries shell be able to secure diets \"adequate for\nhealth.\n(11) To direct our relief and reconstruction policies\ntoward enabling Europe and other countries to be\nin a position to adhere to the proposed agreement.\nThe most elementary measure of social justice is that all children\nborn in a modern democracy shall have, DO far na public action can influence\nthe issue, equal opportunities for the enjoyment of a healthy life.\nActually . child born of poor parents in 0 poor district has a\nfor lower expectation of life and of freedom from disease than the child of\nwell to do parents.\nInadequate food Le one of the major factors causing this grove\nsocial insquality.\nThe adventages of solecting food as the first objective in the\ncampaign for\"freedom from want\" are:-\n(a) that a diet \"adequate for health\" is a known factory\n(b) that its provision 1a wall within our productive\ncapacities)\n(c) that in no other way can public heelth be BO asskedly\nand rapidly improved]\n(d) that along such lines the agricultural problems of our\nrespective countries en be solved;\n(o) that the adoption of this policy would have a most\nstimulating effect upon international trade.\nThe methods to be adopted will vary from country to country.\nIn the U.S.A. 8. nationwide enlargement of the 'Blue Stamp plan might prove\nsuitable, in the U.E. the memo might well be to adopt wartine food policy for\nconsumers to the BOTO generous seales possible in pence.\nThe costs involved will be substantial but will be for lower\nthan wartine costs provided full use is unde of the natural advantages of\ndomentic agricultures and of the potential abundance of imports of certain\nCoods,\nAgreement between our countries along the lines envisaged\ncoulds-\n(1) provide 4b intelligent banis for further commodity agreements\n(the draft whent agreement is 4 case in point).\n(11) facilitate the planning of ralief and reconstruction.\n(111) constitute an important stop towards the elimination of the\ngrosser forms of social injustice.\nFLMAKER\n220\nHOLD FOR RELEASE\nHOLD FOR RELLASE\nHOLD FOR ARLEASE\nAugust 25, 1941\nCONFIDENTIAL: To he held in STRICT\n2011\nCONFIDENCE and no portion, synopsis,\nor intimation to be published or given\nout until the READING of the President's\nMassage has begun in the Rouse of\nRepresentatives. Extreme care must\ntherefore be exercised to avoid premature\npublication.\nSTEPHEN EARLY\nSecretary to the President\nTO THE HOUSE 02 REFRESENTATIVES:\nI am returning herewith, without my approval, a bill\n(R. R. 5300) entitled \"An Act relating to wheat mirketing quotas\nunder the Agricultural Adjustment not of 1938, as amended, to\nprovide for withholding from the normal channels of trade and\ncommerce Government-owned cotton and whoat or the 1940 and\nprovious crops, and to provide es pur centum of parity with\nrespect to peanuts of the 1941 crop.\"\nIt la my conviction that approval of the measure would\nseriously and adversely affoct the Agricultural Adjustment Program\nand the attendant policies which have been so beneficial to our\nfarmers during the part l'ew years.\nOne provision of this act would permit the farmers to\ndispose of, as feed, without penalty, nn indefinite amount of whest\nproduced in excess of their farm acreage allotments for 1941. This\nprovision would place a premium on noncompliance with the whost\nprogram, constitute a breach of faith with the large majority of\nfarmers who complied with the program, and 50 relax the control\nfeatures of the farm program as to adversely affect future partici-\npation therein.\nIvon more objectionable is the provision which would\ndirect the Commodity Credit Corporation to acquire title to all\ncotton and wheat of the 1940 and previous crope in which it has\nan interest, and to hold these commodities for an indefinite period.\nThe goal of the Administration's agricultural policy has been\nparity prices for the farmers and this has been accepted by the\nproducers, the consumers, and the Congress as fair and reasonable.\nI do not foel that farmers would wish this acceptance destroyed by\naction designed to force priocs above parity through the arbitrary\nwithholding of Government-owned stocks from the normal channels of\ntrade and commerco.\nRecently, I spproved legislation enacted by the Congress\nauthorizing the Commodity Credit Corporation to make loann at a\nrate of 85 percent of the parity prices of the Mve basic agricul-\ntural commodities, which, in addition to agricultural conservation\npayments and authorized parity payments, will enable the growers\nof these crops to realize parity for their 1941 production.\nPerity, however, is only one of two elements of income. The other\nis volume sold. The ultimated effect of this bill would be to\nrestrict the volume of the products sold and thus shrink the use\nof and the market for those commodities. Moreover, in times such\n08 those no one can foresee how soon these Government-owned stocks\nmy be needed.\nThe Commodity Credit Corporation should be frec to dispose\nof the commodities sequired under the loan programs in an orderly\nranner, Otherwise, it will be impossible to maintain an \"Ever-Normal\nOranary\" to protect farmura against surpluses und consumers against\nRegraded Unclassified\n221\n- 2 -\nscarcity. Restriction of this authority of the Corporation\nwould greatly increase its losses, nullify the effectiveness\nof existing programs, end, by breaking faith with consumers,\nbe inconsistent with our present price control efforts.\nIn my judgment, this bill is contrary to sound\nCovernmental policy and the long-time best interests of both\nfarmers and consumers,\nFRANKLIN D. ROOSEVELT\nTHE WHITE HOUSE,\nAugust 25, 1941.\nRegraded Unclassified\n222\nTREASURY DEPARTMENT\nINTER-OFFICE COMMUNICATION\nDATE\nAugust 25, 1941\nTO\nSecretary Morgenthau\nFROM\nMr. Cochran\nSTRICTLY CONFIDENTIAL\nOfficial sales of British-owned dollar securities under the vesting order\neffective February 19, 1940:\nS proceeds of\n$ Proceeds of\nShares Sold\nBonds Sold\nTotal\nAug. 18\n213,981\n4,407\n218,388\n19\n193,319\n44,178\n237.497\n20\n236,910\n14,196\n251,106\n21\n119,686\n27,644\n147.330\n22\n130,617\n33,700\n164,317\n23\n35,799\n14,054\n49,853\n930,312\n138,179\n1,068,491\nSales from\nFeb.22,1940 to\n(\nAug. 16,1941\n278,413,829\n36,810,062\n315,223,891\nTotal\nFeb.22,1940 to\nAug. 23. 1941\n279,344,141\n36,948,241\n316,292,382\n316,292,382\nS proceeds of non-vested securities sold\nAug. 11, 1941 to Aug. 16, 1941\n800,000\nproceeds of non-vested securities sold\nSept. 1, 1939 to Aug. 9. 1941\n231,200,000\nproceeds of non-vested securities sold\nSept. 1, 1939 to Aug. 16, 1941\n232,000,000\n232,000,000\nGRAND TOTAL\n548,292,382\nAug. 18\n2 units sold\n$26\na shares\n$101\nStock Dividend\n243 rights sold\n$ 333\nAug. 21\n22\n41\nII\nil\n53\n284\n#\n#\n$ 386\n55,007\n#\nII\n101,817\n7/24 to 3/16\nTotal\n7/24 to 8/23\n55,291\nIl\n\"\n$102,203\nNol\nRegraded Unclassified\n223\nMiss Chauncoy\nTREASURY DEPARTMENT\nINTER-OFFICE COMMUNICATION\nDATE\nAugust 25, 1941\nTO\nSecretary Morgenthau\nFROM\nMr. Cochran\nSTRICTLY CONFIDENTIAL\nOfficial sales of British-owned dollar securities under the vesting order\neffective February 19, 1940:\nNo. of Shares\n$ Proceeds of\nNominal Value\n$ Proceeds of\nSold\nShares Sold\nof Bonds Sold\nBonds Sold\nAug. 18\n8,298\n213,981\n5,000\n4,407\n19\n5,723\n193,319\n45,000\n44,178\n20\n7.897\n236,910\n17,000\n14,196\n21\n3,899\n119,686\n38,000\n27,644\n22\n5,077\n130,617\n49,500\n33,700\n23\n840\n35,799\n16,000\n14,054\n31,734\n930,312\n170,500\n138,179\nSales from\nFeb.22, 1940 to\nAug.16, 1041\n9,743,139-1/2\n278,413,829\n44,784,216\n36,810,062\nTotal\nFeb.22,1940 to\nAug.23,1941\n9,774,873-1/2\n279,344,141\n44,954,716\n36,948,241\nAug. 18\n2 units sold\n$ 26\nStock dividend\n9 shares\n$ 101\nAug. 21\n243 rights sold\n$ 333\n22\n41\n\"\nIf\n53\n284\ne\n.\n$ 386\n7/24 to 8/16 55,007\n\"\n=\n101,817\nTotal\n7/24 to 5/23 55,291\nH\na\n$102,203\nJ110\nRegraded Unclassified\n% A23\n224\nMEMORANDUM\nFROM\nBritish Supply Council in North America\nMrs. Henrietta Klotz\nTO\nCompliments of E.N. Gray\nRegraded Unclassified\n225-\nSTATEMENT NO. 29\nAIRCRAFT SHIPPED TO U. K. AND OVERSEAS COMMANDS\nBy Sea\nBy Air\nDuring\nDuring\nYPE\nDESTINATION\nASSEMBLY POINT\nWeek ended\nWeek ended\nAugust 2, 1941\nAugust 24, 1941\nL\nAiracobra\nU. K.\nU.K.\n3\n-\nTISS\nTomahawk\nM. E.\nPort Sudan\n8\n-\nITED\nChesapeake U.K.\nU. K.\n2\n-\nUGLAS\nBoston III\nU. K.\nU. K.\n11\n-\nBoston III\nM.E.\nPort Sudan\n7\n-\nESOLIDATED\nLiberator\nU.K.\nU.K.\n(via Gander)\n.\n1\nCKHEED\nHudson V\nU.K.\nU. K.\n(via Gander)\n,\n1\nHudson III U.K.\nU. K.\n(via Gander)\n-\n15\nTALS\n31\n17\ntish Air Commission\njust 25, 1941\nRegraded Unclassified\nSTRICTLY CONFIDENTIAL\nEXPORTS OF PETROLEUM PRODUCTS, SCRAP IRON AND SCRAP STEEL\nFROM THE UNITED STATES TO JAPAN, RUSSIA, SPAIN, AND GREAT BRITAIN\nsleary\nAS SHOWN BY DEPARTURE PERMITS GRANTED\n226\nWeek ended August 23. 1941\n:\n:\n:\n:\n:\nJAPAN\n:\nRUSSIA\nSPAIN\n:\nGREAT BRITAIN\n:\nPETROLEUM PRODUCTS\nFuel and Gas 011 (including\nDiesel 011)\n-\n-\n60,500 Bble. 1,206,910 Bbls.\nCrude -\nBlended or California\nHigh Octane Crude*\n-\n-\n--\n-\nAll Other Crude\n-\n-\n--\n--\nGasoline -\nGasoline ДОВ\n--\n237.065 Bbls.\n--\n597.880 Bble.\nGasoline 3°\n-\n--\n--\n598,000 Bble.\nAll Other Gasoline\n--\n--\n--\n--\nLubricating 011 -\nAviation Lubricating 011***\n-\n-\n-\n113,353 Bbls.\nTransformer Oil\n-\n--\n750 Bbls.\n--\nAll Other Lubricating 011\n-\n-\n13,500 Bbls.\n36,942 Bble.\nTetraethyl Lead***\n-\n-\n--\n--\n\"Boosters\", such as Iso-\nOctane, Iso-Hexane, or\nIso-Pentane\n--\n-\n-\n--\nSCRAP IRON AND SCHAP STEEL\nNumber 1 Heavy Melting Scrap\n-\n--\n--\n--\nAll Other Scrap\n-\n-\n-\n-\nOffice of the Secretary of the Treasury, Division of Research and Statistics.\nAugust 25, 1941.\nSource: Office of Merchant Ship Control, Treasury Department.\n-\nAny material from which by commercial distillation there can be separated\nmore than 3 percent of aviation motor fuel, hydrocarbon or hydrocarbon\nmixture - President's regulations of July 26, 1940.\n:\nAviation Gasoline.\n4a defined in the President's regulations of July 26, 1940.\nRegraded Unclassified\n227\nRegraded Unclassified\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM: American Embasey, Lendon\nDATE: August 25, 1941, 2 p.m.\nNO.: 3849\nTHE FOLLOWING IS STRICTLY CONFIDENTIAL,\nWith reference to the Embassy's telegram of August 20,\nmidnight, No. 3775, at the suggestion of the Inderdepartmental\nCommittee which deals with the freesing of the assets of the\nChinese and the Japanese, on Saturday Waley wrote to the\nEmbassy to express the intention of the British Treasury;\nthat is, information in regard to everything that passes\nin connection with this matter will be given to the Embassy\nfor its information.\nAccording to Waley, the only transaction which the\nUnited Kingdom might desire to carry out is that of a\nbarter of some three hundred tone of magnesium (valued\nat 00,000 Streets) against three hundred tons of asbostos\n(valued at something more than 18,000 pounds) together\nwith other goods provided agreement our be reached on\nwhat Japan is prepared to take and what the United Kingdom\nis ready to send,\nThe statement was also made by Valey that the Govern-\nment of Great Britain was considering the restriction of\nexports to occupied China with certain exceptions in regard\nto the needs of Shanghai which furnishes free Chinaj how-\never, no desision in regard to this had been reached.\nIt is\n228\nIt is the impression of the Interdepartmental Committee\nthat there is something appreaching shaos due to the fact\nthat no efficient exchange control arrangements have been\nset up by the Chinese. However, the British and American\nmembers of the Stabilization Board are cooporating to 000\nwhat can be done in regard to this matter. to far, the\nno news from Niemoyer has been received by the British\nTreasury. (7) is & paraphrase of a letter of Waley's.\nThis morning, & produce order announced that effective\nas of today a license will be required for all exports\nto China, Macas and the Japanese Pacific Islands. However,\nthis order does not cover shipments over the Burna Road\nwhich have come through Rangeon, The announcement in the\nnewspapers states that it is the purpose of the order\nto complement that prohibiting all exports to Japan except\nby license. It states that it is designed to put all\nend to the channel of trade with the Japanese through\nthe occupied parts of Chinas August 18 was the date of\nthe order concerning experts to Japan,\nVINANT,\nKAIPAK\nRegraded Unclassified\nC\n0\n229\nP\nY\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM: American Consulate General, Hong Kong, China,\nvia N.R.\nDATE: August 25, 1941, 3 p.m.\nNO.: 327\nSTRICTLY CONFIDENTIAL:\nFOR THE SECRETARY OF THE TREASURY FROM FOX.\nAfter a strenuous trip, K. P. Chen and I reached\nHong Kong on Sunday night. We found many difficult Board\nproblems awaiting us there.\nSome of the problems which we found are as follows:\n1. The first activity of the Board in the market seems\nto be reasonably satisfactory. Since it involves exchange\ncontrol, the question of relationship between the Board\nand the Foreign Exchange Control Agency is raised. The\nChinese Government is giving the latter Agency, which is\nof a political complexion and of doubtful technical\ncompetence, B. more prominent position then is being given\nto the Board. The Board plane to turn over its Hong Kong\nexchange operations to the Agency unless word is received\nfrom the Treasury Department to the contrary. Two million\ntribute WPB the cost of the first week's operation of the\nBoard.\n2. Unless all doubts are (?), American banks hesitate\nto function in foreign exchange matters. It is their claim\nthat they are acting on instructions from their home offices.\nThe\nRegraded Unclassified\n230\n- 2 -\nThe Board is willing to cooperate on E 50-50 basis. However,\nit is not willing to take all of the risk. Would it be\npossible for Washington to arrange for (7) banks to cooperate\nbetter in the future? The banks are adding to the uncertainty\nwhich exists in Hong Kong.\n3. Can B. reply be expected in the near future in regard\nto the following:\n-A- The Chinese banks in Hong Kong are caught in &\ndilemma between the inclusion of Hong Kong in the sterling\narea and by the U.S. freezing order. Would Washington prefer\nto have this problem left entirely to negotiation between\nthe United Kingdom and the Chinese Government?\n-B- Is the interpretation of the Treasury of the agree-\nment of April 1 and the letters which were exchanged on April\n25 that of having the Board relegated to EL minor role with\nthe major position placed in the Agency?\n-C- Is there any possibility that private commercial\nbanks might be issued a license? Is it possible for them\nto operate under license No. 58 at the present time?\n-D- Is it essential to have an American observer in\nShanghai? Is there a possibility of someone being assigned\nfrom Washington 80 that I may be able to recall to Chunging\nFrese and Taylor!\nThis is the end of the message.\nSOUTHARD\nEA:PAK\nCopy:wec:8-27-41\nRegraded Unclassified\nC\n0\n231\nP\nY\nDEPARTMENT OF STATE\nWASHINGTON\nAugust 25, 1941.\nIn reply refer to\nEA 840.51 Frozen Credits/3048\nThe Secretary of State presents his compliments\nto the Honorable the Secretary of the Treasury and en-\ncloses a copy of telegram No. 18, dated August 14, 1941,\nfrom the American Consulate General, Mukden, China, in\nregard to the requirement of specific licenses of\nAmerican nationals in Mukden for bank withdrawals that\nexceed yuan 500 in any month.\nEnclosure:\nFrom Consulate General,\nMukden, No. 18, August 14,\n1941.\nRegraded Unclassified\n232\nCORRECTED COPY\nTEM\nPLAIN\nMukden via Peiping\nand N.R.\nDated August 14, 1941\nRec'd 9:15 p.m. 16th\nSecretary of State,\nWeshington.\n18, August 14.\nReference Department's 139 to Peiving and Peiping's\ncircular August 13, 1 p.m.\nAmerican nationals here including consulate officers\nrequire specific licenses for bank withdrawals exceeding\nyuan 500 in any month (equivalent to American $118 at nominal\nofficial rate about American $50 at ascertained real rate for\nforeign and domestic transactions), specific licenses have\nbeen granted to Americans for amounts needed for exchanges\nbut an application by this office to withdraw yuan 4900\nequivalent to American $1150 at official rate (which is held\nin this office's accounts as B. special deposit and which it\nwas contemplated asking Department's authority to apply to\ndisbursing) has been reissued and B. new application requested\nwhich would give an analysis of the Consulate's receipts and\nexpenditures. New application is not (repeat not) being made.\nUnder the trade control law shipments of personal effects from\nManchuria require permite. Effective since August 1 American\nnationals and other foreigners must obtain permits to leave\nRegraded Unclassified\n-2-\nMenchuria. For those desiring to travel outside of Manchuris\nand return here permits may be denied to those who have not\nobtained volice aroroval of their itineraries outside Manchuria.\nDelay and difficulty has been experienced by applicants for per-\nmits. Although B. request to Hainking authorities July 2 for\ninformation as to what routes of exit were available to\nAmericans has not (repeat not) been answered, it has ascertained\nthat Americans have been successful in leaving Manchuria only\nby North China rail route: the Dairen-Jonan route, Seishin-Wanen\nand Rechin-Jaren routes being closed to them by inability to\nobtain tickets of tassage. Effective today regulations have\nbeen published requiring foreigners (including Americans and\nAmerican consular officers) to obtain permits for all travel\noutside the cities or towns of their residence. Americans in\noutlying towns have for past several weeke been subject to\nnolice orders in local travel, for example, an American designed\nto visit his office was given police permission to do so only\nupon his guarantee that he would return to town of residence on\nsame day. Americans and others are subject to search of barrare\nincluding nocketbooks, et cetera; either while traveling within\nor leaving Manchuris, sometimes several times on a short journey.\nUnder existing foreign exchange control laws Americans and\nothers (including American consulate officers) may not take or\nsend out of Manchuria without vermit, any local or other currencies,\nmonies, drafts, checks, et cetera; except that 10 yuan equivalent\nto American $2.50 may be exchanged at frontier. Licenses are\nRegraded Unclassified\n234\n- 3 -\nseldom granted for foreign exchange and this office has been\nunsuccessful in repeated attempts since 1939 to obtain license\nto permit to the United States funds belonging to deceased\nAmericans of less than 5,000 yuan or approximately $1100.\nKRENTZ\nALC\ncopy:bj:8-36-41\n235\nDEPARTMENT OF STATE\nWASHINGTON\nIn reply refer to\nEA 840.51 Frozen Credits/3185\nAugust 25, 1941.\nThe Secretary of State presents his compliments to\nthe Honorable the Secretary of the Treasury and encloses\na copy of telegram No. 3268, dated August 23, 1941, 2 p.m.,\nfrom the American Embassy, Berlin, Germany, transmitting\na translation of a memorandum which was handed to an\nofficer of the Embassy by an official of the Foreign Office\non August 20.\nEnclosure:\nFrom Embassy, Berlin,\nNo. 3268, August 23,\n1941.\nRegraded Unclassified\n236\nLET\nGRAY\nBERLIN\n0\n0\nDated August 23, 1941\nP\nY\nRec'd. 4:20 pollo\nSecretary of State,\nWashington.\n3268. August 23, 2 p.m. (SECTION ONE)\nThe following 1s a translation of a memorandum\nhanded on August 20 to an officer of the Embassy by\nan official of the Foreign Office:\n\"In the memorandum which was presented to the\nAmerican Charge D' Affaires on July 4. 1941 the fue\nture regulation of financial transactions of the\nAmerican Governmental offices in Germany and their\nofficials and employees was discussed. The disposi-\ntion of private accounts by officials and employees\nof the American Embassy vas left. for later regulation.\nThe German Embassy in Washington has now trens-\nmitted telegraphically the terms under which the\ndiplomatic officials and employees of the German En-\nbassy may exercise disposition of their private ec-\ncounts.\nAccording to the German Embassy's telegram the\nlicense issued to the bank in which the account is\ncarried has the following text:\n\"Treasury Department: License to Riggs National\nBank,\nRegraded Unclassified\n- 2 -\n237\nBank, Washington,\nOne. You are hereby licensed to nake payments,\ntransfers of credit, and withdrawals from the accounts\nin the names of the following:\n(There follow the names of those officials and\nemployees who wish to exercise free disposition of\ntheir accounts above the amount of $500 monthly cov-\nered by general licenses number 11 and the sums ap-\nplied for. The license then continues):\nTwo. This license is granted upon the statements\nand representations filed with the Treasury Department\nand is subject to the condition among others, that\nyou will comply in all respects with the Executive\nOrder No. 8389 of April 10, 1940 B9 amended, and\nthe regulations issued thereunder and the terms of\nthis license.\nThree. The license shall furnish a report at\nthe end of each calendar month showing the balance\nto the credit of the account at the beginning and the\nend of each report period, all credite to the account\nindicating the source of the funds, and all payments,\ntransfers, and withdrawals made pursuant to the 11-\ncense indicating the payes, and the nature, and the\npurpose of the payment, and shall make available for\ninspection any relevant information or records TO-\nquested by the Secretary of the Treasury.\nFour.\nRegraded Unclassified\n238\n-3-\nFour. This license, which shall expire July 31st,\n1941, is not transferable, is subject to the provisions\nof the Executive Order No. 8389 of April 10, 1940 and\nthe regulations issued thereunder and may be revoked\nor modified at any time in the discretion of the Sec-\nretary of the Treasury. If this license was issued as\na. result of wilful misrepresentation it may in the\ndiscretion of the Secretary of the Treasury be declared\nvoid from the date of the issuance or from any other\ndate.\"\nThe above license is also contingent on the\ngranting of reciprocity.\nIn order to carry out reciprocity it will be\nnecessary that those diplomatic officials and employees\nof the American Embassy who wish to exercise disposi-\ntion of an amount greater, than the sum of reichamerks\n1,000 which is exempt from permits and who have hither-\nto not had an account with a German bank must estab-\nlish such an account into which they would pay the\nreichemark sums which they normally obtain against\ndollar checks or eight drafts.\nThe Charge d' Affaires is requested to submit to\nthe Foreign Office 8 list of the officials and employees\nin question and of the sums of which they degire to\nexercise disposition as well as the bank and the name\nRegraded Unclassified\n239\nof each account. An assurance should also be given that\nthese accounts only contain the personal funds of the owners,\nthat the accounts will be used only for the personal expenses\nof the owners and their families in Germany and that the German\nGovernment will be immediately notified if the owners leave\nthe territory of the Reich or cease to be connected with the\nAmerican Embassy.\nFor reasons of expedience it is requested that the officials\nand employees carry all their accounts in the same German bank\nin Berlin.\nThe Embassy in Washington has further reported that the\nmonthly balances required from the Ri gs National Bank under No.\n3 of the license be submitted on the basis of the data resulting\nfrom the deposits and withdrawals and the checks. If necessary\nthe bank makes inquiries of the payee, particularly with regard\nto the nature and purpose of the payments. For this additional\nwork the bank charges each account-holder $2 monthly in fees.\nFor safe deposit boxes & fee of $5 is charged for every ovening\nwhich must be exactly documented. The license is renewed\nautomatically without further application by the member of the\nEmbassy concerned.\nAs soon as the information requested above is submitted the\nForeign Office will cause the necessary permit to be issued to\nthe bank carrying the accounts and the conditions to be made to\nthe bank which are necessary under the decrees issued in order to\nguarantee reciprocity in every respect\".\nMORRIS\nGW\nRegraded Unclassified\nC\n0\n240\nP\nY\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM: American Embassy, Berlin, Germany\nDATE: August 23, 1941, 2 p.m.\nNO.: 3268 - SECTION TWO\nIt was made cleer by the official in question that\nthe action (described in the memorandum) was being taken\nsolely as e perallel to the action of the U.S. He emphasized\nthat the license was granted, contingent on reciprocity, to\nthe Riggs National Bank. It is my opinion that there would\nbe a cancellation of the Germen measure immediately should\nthe United States Government withdrew its similar measure\nin regard to the bank accounts of German employees and\ndiplomatic officers.\nIt is assumed that the license issued to the Riggs\nNational Bank by the Treasury Department with respect to\nthe accounts of German officers is quoted correctly in\nthe German memorandum, Therefore, it would be appreciated\nif the Department would call the Treasury Department's\nattention to the fact that in view of conditions existing\nin Germany reciprocity in such a matter is scarcely feasible.\nNo bank accounts in Germany are held by the officers or\npersonnel of this mission. In general, the use of checking\naccounts is not customery. The maintenance of bank accounts\nin a Germen institution would not be & facility to American\nofficial personnel in Berlin but rather en annoyance.\nMoreover,\nRegraded Unclassified\n-2-\nMoreover, the subjection of such accounts to the type of\nscrutiny BE that described in the license to the Riggs\nNational Bank would place the members of the American\nmission in Berlin in a most unhappy situation; they are\nalready the objects of a burdensome degree of surveillance.\nShould the Treasury Department be unable to cancel\nthe restrictions which are contained in Section 3 of the\nlicense that require reports in detail in regard to the\norigin of the deposits and concerning the reason for\nevery payment made from the accounts in question - above\nfive hundred dollars -, the Embassy suggests that the\namount which is free of formal scrutiny be raised to at\nleast 81,000 each month. Less hardship on this mission\nwould then be entailed by the reciprocal German action.\nI would indeed warmly recommend that the amount which is\nfree of scrutiny be not less than 31,500 each month for\nofficers of the German Embassy, carried on the diplomatic\nlist of the State Department.\nThe Embasay also would like to propose that the\nDepartment urge the Treasury to abandon this type of\nópen control entirely with respect to the German mission\nchief in Washington, D. C. The standards of diplomatic\ncourtesy are being GO sorely strained in these times by\nother Governments that it would seem that we should herdly\nneed to edd to the inroads which have already been made.\nConfidently,\nRegraded Unclassified\n212\n-3-\nConfidently. it is my feeling that the Department\nwill understand the burden which a continuance of this\nmeasure would place unon the daily life of the Embasy\nat Berlin. It is hoped that the Department will use its\nbest efforts to effect the prompt remedial action without,\nof course, opening the door B0 wide as to permit abuses\nwhich it is intended to prevent by the U.S. regulations.\nThe unhappy consequences which would result to every\nmember of the U.S. Embassy's staff at Berlin, if compelled\nto live in the atmosphere which the maintenance of these\nregulations would bring about, cannot be over-emphasized.\nThis matter would be just about the last strew in view\nof the fact that at the present time there is a prospect\nof a long and dreary winter before the Embassy. If a\nmeasure of this kind is not promptly dealt with, I have\nevery reason to fear that a deterioration of morale and\nefficiency of performance will result. It would make it\nall the more difficult to bear if the U.S. Government\nwould be responsible for the enactment of the German\ncounter-measures.\nIt is thoroughly realized that in the enactment of\ngeneral national legislation all the repercussions of the\nmeasure adopted cannot be foreseen by the authorities\nwho are responsible primarily for the legislation.\nThe accomplishment of the object in hand, as I see it.\ncan be\nRegraded Unclassified\n243\n4\ncan be effected by rules that are less direct and much less\nobnoxious.\nIt is my belief that the Department will understend\nall that has been said. I am looking forward confidently\nto a prompt end suitable amelioration of this deeply\nveratious and worrisome measure through the efforte of the\nDepartment.\nThis is the end of the message.\nMORRIS\nEA:PAK\n840.51 Frozen Credits/3185\nCogy:bj:hbrtwec:8-26-41\nRegraded Unclassified\n244\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM: American Legation, Managua, Niearague\nDATE: August 25, 1941, 2 p.m.\nNO.: 145\nIt 18 requested that reference be made to the Legation's\ndespatch No. 19, dated August 13, recomending the deletion\nfrom the blacklist of the name of Leopoldino Viuda de Caligaris.\nAccording to information which I have received from\nthe President of the Jabali mines (impeptant gold producers)\nshipments of supplies which are vital to that mine are being\nheld up because the name of Caligaris appears on the blacklist.\nTherefore, because of this, the account of the Jabali mines\nin the U.S. has been frozen. The Jabali mines has as one\nof its important stockholders Mr. Caligaris.\nThe Legation will appreciate it if appropriate action\ncan be taken to expedite the consideration of the recommendation\nmade by th it for the deletion of the name of Caligaria from\nthe blacklist and also for the unfreesing of the funds of\nthe Jabali mines.\nBOAL\n- - - -\nONICE of a\nAMERICA\nEAIPAX\n2E633 1811\nBECEIAED\nRegraded Unclassified\nTREASURY DEPARTMENT\n245\ngot /\nINTER-OFFICE COMMUNICATION\nDATE August 25, 1941\nTO\nSecretary Morgentheu\nCONFIDENTIAL\nFROM Mr. Cochren\nRegistered sterling transactions of the reporting banks were as follows:\nSold to commercial concerns\n$20,000\nPurchased from commercial concerns L20,000\nOpen market sterling remained at 4.03-1/2. The only reported transactions\nconsisted of 16,000 purchased from commercial concerns.\nThe Central Bank of China in Chungking cabled instructions to the New York\nWederal Reserve Bank today to purchase L100,000 for its account. Since registered\nsterling may not be purchased here for credit to a Chinese account, and in view\nof the fact that the existing supply of open market sterling in New York is very\nlimited, the Federal communicated with the Bank of England, The latter agreed to\nsupply the required sterling at 4.03-1/2.\nIn New York, closing quotations for the foreign currencies listed below were\nes follows:\nCanadian dollar\n10-7/8% discount\nArgentine peso (free)\n.2383\nBrazilien milreis (free)\n.0505\nColombian peso\n.5800\nMexican peso\n.2070\nUrugusyan peso (free)\n.4375\nVeneruelan beliver\n.2755\nCuban peso\n1-1/16% discount\nIn the unofficial exchange market in Shonghai, the yuan was quoted nominelly\nit 47/84. up 3/16/.\nTe purchased 503,000 in gold from the earmerked account of the Central\nZenk of Peru.\nTe sold $750,000 in gold to the Central Bank of Haiti, which was added to\nits earmerked account.\nThe Federal Reserve Bank of New York reported that the Bank of Mexico\nchipped $474,000 in gold from Mexico to the Federal for its account, disposition\nunknown.\nRegraded Unclassified\nconfidential\n- 2 -\nThe State Department forwarded B. cable to us reporting the following ship-\nments of gold from England, both of which are for sale to the New York Assay Office:\n136,000 shipped by the Westminster Bank, London, to the Guaranty Trust Company,\nNew York.\n58,000 shipped by Mocatta and Goldmmid, London, to the Banque Belge pour 1 'Etranger,\nNew York.\n194,000 Total\nIn London, spot and forward silver were both fixed 1/16d higher at 23-1/2d,\nequivalent to 42.67%.\nThe Treesury's purchase price for foreign silver was unchanged at 35¢. Handy\nand Herman's settlement price for foreign silver was also unchanged at 34-3/4.\nWe made two purchases of new production silver emounting to 125,000 ounces\nunder the Silver Purchase Act. This silver, which was bought for forward delivery,\ncame from various foreign countries.\nWe also purchased 200,000 ounces of silver from the Bank of Cenada under our\nregular monthly agreement.\nBMS\nPH:wac:8-25-41\nRegraded Unclassified\n247\nBRITISH EMBASSY,\nWASHINGTON, D.C.\n25th August, 1941\nPERSONAL AND\nSECRET\nDear Mr. Secretary,\nI enclose herein for your personal\nand secret information a copy of the latest\nreport received from London on the military\nsituation.\nBelieve me,\nDear Mr. Secretary,\nVery sincerely yours,\nR.I. Ca-pbi'l\nThe Honourable\nHenry Morgenthau, Jr.,\nUnited States Treasury,\nWashington, D.C.\n248\nTELEGRAM RECEIVED FROM LONDON AUGUST 22ND, 1941\n1.\nAfternoon August 20th north of Port Said enemy\naircraft torpedoed British tanker of 4,782 tons. She\nproceeded under her own steam.\n2.\nFree French submarine reports having torpedoed\none merchant vessel off Norwegian coast. No details\navailable.\n3.\nThree Beauforts attacked with cannon and machine\ngunned seven trawlers off Calsis; two seen to be on\nfire.\n4.\nDaylight August 21st. Royal Air Force carried\nout three bomb attacks on enemy objects. Severe\ndamage done to Ijeniden Iron and Steel Works. During\nair combats we lost fourteen fighters, one pilot safe.\nOne enemy fighter destroyed. Ten probably, six damaged.\n5.\nNight of August 21st/22nd our bombing operations\ncancelled owing to weather, enemy air activity over\nthe United Kingdom negligible.\n6.\nBenghasi bombed as usual, eighteen Marylands\nwith fighter escort bombed enemy tanker northwest of\nBardia.\nRegraded Unclassified\n249\nCONFIDENTIAL\nMILITARY INTELLIGENCE DIVISION\nTENTATIVE LESSONS BUMETIN\nWAR DEPARTMENT\nNo. 149\nWashington, August 25, 1941\n0-2/2657-235\nNOTICE\nThe information contained in this series of bulletins\nwill be restricted to items from official sources which are\nreasonably confirmed. The lessons necessarily are tentative\nand in no sense mature studies.\nThis document 18 being given an approved distribution,\nand no additional copies are available in the Military Intel-\nligence Division. For provisions governing its reproduction,\nsea Letter TAG 350.05 (9-19-40) M-B-H.\nTHE GERMAN THEORY OF WAR\nSOURCE\nThis is the second of a series of bulletine based on a report\nsubmitted November 18, 1940, by en American official observer in Berlin.\nThese bulletins will illustrate some of the principles of German\nmilitary leadership, both practical and theoretical.\nAlthough it also contains comments by the observer, this bulletin\nconsists largely of extracts from Vom Kriege, by Clausewits.\nCONTENTS\n1. GENERAL\n2. COMMENTS\nCONFIDENTIAL\n- 1 -\nRegraded Unclassified\n250\nCONFINENTIAL\nTHE GERMAN THEORY OF WAR\n1. GENERAL\n\"War is a large scale duel; its individual duels are comparable\nto the struggle between two wrestlers. By physical force each tries to\ncompel the other to carry out his own will and then to throw him thus\nrendering him unable to offer further resistance.\n\"From that point of view war 18, therefore, an act of force.\nIts purpose is to impress our will upon the enemy. Force utilizes the\ninventions of art and science to combat force. Insignificant limitations\nlike international law affect this utilization but do not materially\nweaken its power. Since there is no moral force beyond the conception\nof state and law, physical force is therefore the means to the end,\nImposing our will upon the enemy is the objective; in order to reach this\nobjective safely we must make the enemy defenseless - and that 10 the\nreal aim of warfare.\n\"Humanitarians may easily believe that the true art of war\nshould envisage an almost bloodless artificial disarmament or subjuga-\ntion of the enemy. No matter how well this theory may sound, it is\nclearly in error. In such dangerous matters as war, the worst mistakes\nare those which are made for humanitarian reasons.\n\"As the use of physical force to its fullest extent in no way\nexcludes the use of intelligence, the side which employe force relent-\nlessly, without consideration of blood, will gain the upper hand - if\nthe enemy does not follow the same procedure. It will thus set the\npace for its opponent, and both will speed each other on to the utmost,\ntheir inner counterweights their only limitations.\n\"That is how we should consider the question; it is & useloss\nend mistaken effort if we forget nature itself in our dislike for the\nraw elements.\n\"Essentially, strife between men consists of two different\nelements - the hostile feeling and the hostile intention. We have\nchosen the latter of these two elements as the basis for our defini-\ntion because it is the more common. The most primitive passion of\nhatred, which may almost be termed instinctive, always includes the\nhostile intention. On the other hand, there are many hostile intentions\nwhich are not accompanied by any hostility of feeling, or at least not\nby any overpowering hostility of feeling. Among unenlightened peoples,\nintentions born by instinct are most prominent; among educated peoples,\nintentions born by the brain. This difference, however, does not l'e\nalone in the nature of the education or lack of it, but in the circum-\nCONFINENTIAL\n- 2 -\n251\nCONFIDENTIAL\nstances and conditions surrounding it as well, and for that reason the\ndifference does not necessarily exist in every case, but only in the\nmajority of cases, In B word, even the most educated people can break\nout in passionate hostilities against each other,\n\"We see, therefore, how false we would be if we were to state\nthat the war of educated peoples is merely B. rational act by governments\nand if we were to consider var more and more devoid of passion, a\nstruggle that would eventually require not physical masses of fighting\nforces but only the relations of those masses - & sort of algebra of\nactions,\n\"If enlightened nations do not kill their prisoners, or destroy\nland and country, it is because intelligence mingles more with their\nconduct of var and has taught them more effective means of employing\nforce than such 8 primitive utterance of instinct.\n\"Wer is not created suddenly: its preparation is not the work\nof 8. moment, Each of the two opponents can, therefore, usually judge\nthe other from what he 1s and from what he does or does not do, or\nmore strictly speaking. from what he should be and what he should do.\n\"If we adhere primarily to the term war in its purest sense we\nmust admit that a political purpose is not actually within its scope;\nfor if war is an act of force to compel the enemy to fulfill our\nwishes, then the sole object must always be to overthrow the enemy:\nthat is, to render him defenseloss,\n\"Later, ae we study the war plan, we will investigate more\nclosely what is meant by meking a state defenseloss, At present we\nmist differentiate between three general aims which encompass all else,\nthe enemy's fighting force, his country, and his will.\n\"The fighting force must be destroyed: it must be put in such\na condition that it cannot continue combat.\n\"The country mist be conquered; else B. new fighting force night\nform within it.\n\"Even after those two goals have been accomplished, however,\nthe war - the hostile tension and the effect of enemy forces - may not\nbe considered closed so long as the enemy's will has not also been\ndestroyed. We may be in full possession of the enemy's country, but\nuntil his government and his allies have been forced to sign 8 peace\ntreaty, or the citizens have been subjugated, the fight may be renewed\nfrom within the land itself, or through the assistance of allies. Of\ncourse this can also happen after B. peace is signed; but that only\nproves that not every war is in itself a complete decision and settlement.\nCONFIDENTIAL\n- 3 -\n252\nCONFIDENTIAL\nEven if this is the case, however, a number of sparks, which would\notherwise have continued to glow in silence, will be snuffed out when\nthe agreement to end hostilities is signed, and tensions will be loosened,\nbecause all minds will be turned toward peace - and there are always\nmany people in every country and under all conditions who will steer far\nfrom the path of resistance, But whatever the situation may be, with the\nsigning of peace we must consider the objective achieved and the business\nof war ended,\"\n2. COMMENTS\nIn interpreting Clausewitz, principally through the studies of\nvon Schlieffen, the Germane have arrived at the following basic\nprinciples:\na. The principle of total war, in which the force of every\nagency and every individual of the nation is enlisted to\ncrush the enemy nation;\nb. The principle of the offensive, which demands that the war be\ncarried into the enemy's country and that he be destroyed on\nhis own soil - the German mind does not conceive of B. var\non German soil;\nc, The principle of surprise, which demands that the enemy be\nstruck before he is ready to receive the blow - this calls\nfor repid mobilization and great speed of movement in order\nto direct the decisive blow at the weekest point;\nd, The principle of annibilation, which demands not only the\ndecisive defeat of the enemy, but the destruction of his\narmed forces B.B well - the old Cannae doctrine on a grand\nscale. The modern version is the march of huge armies\nagainst the entire front of the enemy border, Where the\nenemy holds, he is contained; where he is weak, the attack-\ning units filter through to strike him from the rear, The\nenemy force is then separated into islands which are\nsuccessively destroyed by the overwhelming power of all\narms;\n0. The principle of the balanced force, by which the prime\nmission of all supporting arms is to keep the infantry\nmarching unmolested, and at maximum speed, deep into the\nenemy country where the final decision is to be won,\nThis type of warfare requires leaders who are physically and\nmentally young: who are confident in their own ability and are highly\naggressive in spirit. It requires in addition that the leadere have\nCONFIDENTIAL\n4\n253\nCONFIDENTIAL\na full comprehension of the basic fact that the team is stronger than\nthe individual, and that every military unit from the squad to B.\ngroup of armies 1s a member of the greater team - the nation. This\ntype of leadership leaves little room for eccentrics or temperamentals,\nand no place for grendstand players.\nCONFIDENTIAL\n- 5 -\n254\nRESTRICTED\nG-3/2657-220; No. 476\nM.I.D., W.D.\n11:00 A.M., August 25, 1941\nSITUATION REPORT\nI. Eastern Theater.\nGround: Violent fighting is reported from the Leningrad area\nas the German and Finnish forces press the attack on that city.\nGerman pressure 1s increasing against the Russian\nforces out off in the Tallinn area of northwestern Estonia.\nPowerful Russian counterattacks are being launched\ntoward Staraya Ruesa and Smolensk.\nThe progress of operations in both the Gomel area\nand in the Ukraine remains obscure. Reports indicate that the Germans\nare attempting to force crossinge of the Dnepr at Dnepropetrovsk and\nZaporozhe.\nAir: Railway lines east of Leningrad were the chief target\nof Gorman dive bombers on the 22nd,\nII, Western Theater.\nAir: British. British bombers attacked communications and\nother objectives at Dusseldorf during the night with some losses.\nGerman. Night operations carried out again against\nairfields in England and harbore on the west coast.\nIII. Middle East Theater.\nAir: Italian communiques reported heavy losses in British\nplanes operating from Tobruk during the last week, British planes\nattacked Tripoli on the 22nd.\nGround: Continued lack of any significant activity.\nRESTRICTED\nRegraded Unclassified\n255\nTREASURY DEPARTMENT\nWASHINGTON\nDEFENSE SAVINGS STAFF\n8/07/41-\nHonerable Henry Morgenthau, Jr.,\nSecretary of the Treasury,\nWashington, D. C.\nDear Mr. Morgenthaut\nIn case you have not seen it, I am sending you\na copy of the issue of, \"Banking\", for the month of\nAugust and call to your attention the fact that your,\n\"Tax Savings Plan\", seems to be carried in full in\nthis issue.\nI am glad also to report that information coming\nin seems to indicate that a large number of banks who\nhad not qualified as issuing agents for the Series E,\nDefense Savings Bonds, have qualified during the month\nof August and I believe that by the end of September,\nyou will be very much pleased with the showing.\nI hope you have a nice vacation and with highest\nregards and best wishes, I beg to remain,\nSincerely yours,\nB. M. Edwards,\nAssistant\nRegraded Unclassified\n256\nDEFENSE SAVINGS STAFF\nADVANCE SCHEDULE OF RADIO PROGRAMS\nTUESDAY - AUGUST 26, 1941.\nTime:\n5:30 - 5:45 P.M.\nProgram:\nPnul Sullivan\nStation:\nWJSV and CBS Network\nTime:\n6:30 - 7:00 P.M.\nProgram:\nSecond Husband\nStation:\nWJSV and CBS Network\nTime:\n7:00 - 9:30 P.M.\nProgramt\nJohnny Presents\nStati.n:\nWRC and NBC Hed Network\nTime:\n7:30 - 8:00 P.M.\nProgram:\n\"For America We Sing\"\nSterring John Charles Thousa,\nDr. Frank Black's Orchestra\nwith Dr. Black conducting.\nand the NBC Chorus.\nStation:\nWMAL and NBC Blue Network\nTime:\n9:30 - 10:00 P.M.\nProgram:\nCollege Hunor\nStation:\nWRC and NBC Red Network\nTime:\n11:15 P.M. - 12:00 M\nProgram:\n\"Music You want, When Y.u Want It\".\nStation:\nWHAL - Washington, D. C.\nTHESE PROGRAMS PROMOTE THE SALE OF DEFENSE BONDS AND STAMPS.\nRegraded Unclassified\n257\nAugust 26, 1941.\nMemorandum for the Secretary's Files\nWhen the Secretary called from Montreal this morning I told him\nthat the President yesterday vetoed the wheat and cotton freesing bill.\nThe Secretary was much pleased since he believed the bill to be out-\nrageous and over the telephone had asked Dan Bell to reply to the request\nof the Bureau of the Budget for Treasury comments by an outright recom-\nmendation for a veto. This had been done in a letter to the Budget\nDirector and a draft of a veto message sent over on August 18. Copies\nare attached.\nUnder the supposition that I would attend the Cabinet Meeting on\nFriday of last week the Secretary had also sent word to me, through\nStephens, asking me to renew at the Cabinet Meeting our recommendation\nfor a veto of the bill.\nA clipping telling of the President's veto of the bill is also\nattached.\nHerbert Jus E. Gaston\nAttachments.\nAssistant Secretary of the Treasury.\nRegraded Unclassified\n258\nCOPY\nAug. 18, 1941.\nThe Director,\nBureau of the Budget.\nSir:\nThe Department is in receipt of your letter of August 14, 1941,\nsubsi tting BL faceimile of an enrolled anactment (H. R. 5300, 77th\nCong., lat Sess.), \"An Act to amend Public Law Numbered 74 of the\nSeventy-seventh Congress, relating to wheat-marketing quotas under the\nAgricultural Adjustment Act of 1938, as amended,\" for comment.\nThe Department 18 strongly of the opinion that this bill should\nnot receive the approval of the President. Without passing on the other\nfeatures contained in the bill, the particular provisions to which we\ntake exception are those relating to the authority of the Commodity\nCredit Corporation to dispose of Government-owned stocks of cotton or\nwheat. Under such provisions, with a few inconsequential exceptions,\nno Government stocks of either cotton or wheat could be sold during the\ncontinuation of the present European war and thereafter until the\nCongress otherwise provides. It is the view of the Treasury that this\nrestriction is indefensible from any standpoint and its presence in the\nbill affords sufficient grounds for a veto.\nThe Government now owne six million bales of cotton. Cotton prices\nhave risen from 9-1/2 cents a pound on August 1, 1939 to about 16 cents a\npound at the present time. The present estimate of the new cotton crop is\nthat it will be shorter than in any year since 1935. The Government-hald\nstocks, if available for sale, can be used to avert any hardship through\nshortage. The Government also owns about one hundred seventy million\nbushels of wheat. The current crop will be large, but demand conditions\nand existing controls have resulted in a substantial price advance.\nThe obvious purpose of this provision in the legislation is to\ncreate an ertificial scarcity in cotton, as well as in wheat, and thereby\nto enhance their price. Surpluses of farm products, or of any other com\nmodity for that matter, should not be withheld from the market when their\nprices have reached reasonable levals and when the demand for them is on\nthe increase.\nRegraded Unclassified\n259\n- 2 -\nFor these reasons the Department recommends that the bill be\nnot approved. There is enclosed a suggested draft of veto message.\nBy direction of the Secretary:\nVery truly yours,\n(Signed) C. R. Schoeneman\nAdministrative Assistant\nto the Secretary.\nEnclosure.\nRegraded Unclassified\nC\n260\no\nP\nY\nTo the House of Representatives:\nI return herewith, without my approval, H. R. 5300,\nentitled \"An Act to amend Public Law Numbered 74 of the\nSeventy-eeventh Congress, relating to wheat-markoting\nquotas under the Agricultural Adjustment Act of 1938,\nas amended.\"\nThis bill provides, among other things, that the\nCommodity Credit Corporation with minor exceptions may\nnot sell or otherwise dispose of any cotton or wheat\nowned by it during the continuance of the present war\nand thereafter until the Congress shall otherwise pro-\nvide. The practical effect of this provision would be\nthat the Commodity Credit Corporation would not be able\nto dispose of any of this cotton or wheat until and un-\nless the Congress changed the law. This provision alone\naffords sufficient justification for a. disapproval of the\nbill in toto and therefore I will confine my criticism\nto that provision.\nThe Commodity Credit Corporation now owns six mil-\nlion bales of cotton and one hundred seventy million\nbushels of wheat, The price of cotton has advanced from\n9½ cents in August, 1939, to about 16 cents at the present\ntime. The advance in the price of wheat has not been\nrelatively so great, but it has been substantial. In the\nlight of the existing situation, and the unpredictable\nfuture, the freezing of the present stocks of cotton and\nwhest for an indefinite period is not in the interest of\nthe farmer, the consumer, or the general welfare.\nSurpluses of farm products, or of any other commodity\nfor that ma tter, should not be withheld from the market\nwhen their prices have reached reasonable levels and when\nthe demand for than is on the increase.\nIt is highly desirable under conditions which exist\ntoday that we have flexibility to maet all emergencies.\nDiscretion as to the disposition of commodities in the\ncontrol of the Government should be retained as now pro-\nvided under existing law.\nThe White House\nAugust\n1941.\nRegraded Unclassified\nDUEF AY, AUGUST 26, 1941.\n261\nVETOES SALE CURB\nand to hold these commodities for\nan Indefinite period. The goal of\nFOR COTTON, WHEAT\nthe administration's agricultural\npolley has been parity prices for\nthe farmers and that has been ac-\ncepted by the producers, the erm-\nPresident Says Freezing of\nsumars and the Congress M fair\nand reasonable.\nFederal Stocks for Emergency\nI do not feel that farmers would\nwish this acceptance destroyed by\nWould Harm AAA\naction designed to force prices\nabove parity through the arbitrary\nwithholding of government-owned\nRELEASE 'MAY BE NEEDED'\nstocks from the normal channeis\nof trade and commerce.\nCongress Is Told That Long-\nCan Land M% of Parity\nTime Best Interests of Farm\n\"Recently I approved leginia-\nLion enatced by the Congress auth-\nand Buyer Would Suffer\norizing the Commodity Credit\nCorporation to make loans at A\nrate of 85 per cent of the parity\nRpecial is Tax Bew Tome Truse.\nprices of the five basic agricul-\nWASHINGTON, Aug. 25-Pres-\ntural commodities. which In addi-\ntion to agricultural-conservation\nident Roosevelt vetoed today the\npayments and authorized parity\nbill requiring the government Lo\npayments, will enable the growers\nwithhold from the market during\nof these crops to realize parity for\nthe national emergency its large\ntheir 1941 production.\"\nstocks of wheat and cotton &C+\nquired over the last few years as\n& means of stabilizing prices for\nthese 1pa.\nThe resident said that the\nmeasure, which was passed over\nAdministration opposition, would\nbe \"contrary to sound govern-\nmental polley and the long-time\nbest interests of both farmers and\nconsumers.\"\nAsserting that \"In times such as\nthese no one can foresee how soon\nthese government-owned stocks\nmay be needed,\" Mr. Roosevelt\nadded that the Commodity Credit\nCorporation should be free to die-\npose in an orderly manner of the\n6,500,000 bales of cotton and about\n200,000,000 buahels of whest which\nit owns, so as to maintain an over-\nnormal granary to protect farmers\nagainst surpluses and consumers\nagainst scarcity.\nFears for AAA Program\n\"It is my conviction.\" he stated\n\"that approval of the measure\nwould seriously and adversely af-\nfect the agricultural adjustment\nprogram and the attendant policies\nwhich have been so beneficial to\nour farmers during the past few\nyears,\n\"One provision of this act would\npermit the farmers to dispose of,\nas feed, without penalty, an Indef-\nInite amount of wheat produced in\nexcess of their farm-acreage allot-\nments for 1941. This provision\nwould lace a premium on non-\ncomp. be with the wheat pro-\ngram, constituting a. breach of\nfaith with the large majority of\nfarmers who complied with the\nprogram, and 80 relax the control\nfeatures of the farm program se\nto adversely affect future partici-\npation therein.\n\"Even more objectional in the\nprovision which would direct the\nCommodity Credit Corporation In\nacquire title to all cotton and\nwheat of the 1940 and previous\ncrops In which it has an interest\nRegraded Unclassified\n262\nMemorial Service\nfor\nThe Right Donourable\nArthur Blaikie Purbis\nPresident\nCanadian Industries Limited\nanb\nChairman\nThe British Supply Council in North America\nNorn: 31st March, 1890\nDied: 14th August, 1941\nSTATE DEPARTMENT NONE TENNISTATE WITH VERA OF SIGIL CHRIST:\nChrist Church Cathedral\nMontreal\nTuesday, 26th August, 1941\nat 2:30 p.m.\nRegraded Unclassified\nOrder of Service\nThen shall follow the LESSON, taken out of the eighth Chapter of Romans,\nbeginning with the fourteenth PTM.\nORGAN PRELUDE\n(Then shall be sung the following hymn:\nSolemn Melody\nWalford Davies\nHYMN 611\nCharles Wesley\nThe Minister shall begin the Service saying,\nLET saints on earth in concert sing\nWith those whose work is done;\nFor all the servants of our King\nI\nAM the resurrection and the life, saith the Lord: he that believeth\nIn heaven and earth are one,\nin me, though he were dead, yet shall he live: and whosoever liveth\nand believeth in me, shall never die.\n2 One family, we dwell in him,\nOne Church, above beneath;\nThough now divided by the stream,\nI\nKNOW that my redeemer liveth, and that he shall stand at the latter\nThe narrow stream of death.\nday upon the earth: and though this body be destroyed, yet shall I\nHee God: whom I shall see for myself, and mine eyes shall behold, and\n3 One army of the living God,\nTo his command we bow\nnot as a stranger.\nPart of the host have crossed the flood,\nAnd part are crossing now.\nW\nE brought nothing into this world, and it is certain we can carry\nnothing out. The Lord gave, and the Lord bath taken away: blessed\n4 E'en now to their eternal home\nbe the name of the Lord.\nThere pass some spirite blest;\nWhile others to the margin come,\nT.After which the Choir and Congregation shall sing\nWaiting their call to rest.\nPealm 121. Levavi oculos\n5 Jesus, be thou our constant Guide;\nThen, when the word in given,\nBid Jordan's narrow stream divide,\nI\nWILL lift up mine eyes unto the hills; from whence cometh my\nAnd bring us safe to heaven. Amen.\nhelp?\nMy help cometh even from the Lord, who hath made heaven and\nThen shall be said the APOSTLES' CREED, by the Minister and the People, standing:\nearth.\nHe will not suffer thy foot to be moved; and he that keepeth thee\nwill not sleep.\nI\nBELIEVE in God the Father Almighty, Maker of heaven and earth:\nAnd in Jesus Christ his only Son our Lord: Who was conceived\nBehold, he that keepeth Israel shall neither slumber nor sleep.\nby the Holy Ghost, Born of the Virgin Mary: Suffered under Pontius\nThe Lord himself is thy keeper; the Lord is thy defence upon thy\nPilate, Was crucified, dead and buried: He descended into hell; The\nright hand;\nthird day he rose again from the dead: He ascended into heaven, And\nSo that the sun shall not burn thee by day, neither the moon by\nsitteth on the right hand of God the Father Almighty: From thence he\nnight.\nshall come to judge the quick and the dead.\nThe Lord shall preserve thee from all evil; yea, it is even he that\nI believe in the Holy Ghost: The holy Catholic Church; The\nshall keep thy soul.\nCommunion of Saints: The Forgiveness of sins: The Resurrection of the\nThe Lord shall preserve thy going out, and thy coming in, from this\nbody: And the Life everlasting. Amen.\ntime forth for evermore.\nThen the Minister shall say,\nAlso Psalm 130. De Profundis\nThe Lord be with you.\nAnswer And with thy spirit.\no\nUT of the deep have I called unto thee, 0 Lord; Lord, hear my\nvoice.\nIllere all shall kneel, and the Minister shall say,\nO let thine care consider well the voice of my complaint.\nIf thou, Lord, wilt be extreme to mark what is done amiss, 0 Lord,\nLet us pray.\nwho may abide it ?\nLord, have mercy upon us.\nFor there is mercy with thee; therefore shalt thou be feared.\nChrist, have mercy upon us.\nI look for the Lord: my soul doth wait for him; in his word is my\nLord, have mercy upon us.\ntrust.\nMy soul fleeth unto the Lord before the morning watch; I say, before\no\nUR Father, who art in heaven, Hallowed be thy Name. Thy king-\nthe morning watch.\ndom come. Thy will be done, On earth as it is in heaven. Give\n0 Israel, trust in the Lord, for with the Lord there is meroy, and\nus this day our daily bread. And forgive us our trespasses, As we for-\nwith him is plenteous redemption.\ngive those who trespass against us. And lead us not into temptation,\nAnd be shall redeem Israel from all his sins.\nBut deliver us from evil. Amen.\nRegraded Unclassified\n1Thm the Minister shall add these other Prayers.\nA\nLMIGHTY God, with whom do live the spirits of those who depart\nhence in the Lord, and with whom the souls of the faithful, after\nthey are delivered from the burden of the flesh, are in joy and felicity;\nWe give thee hearty thanks for the good examples of all those thy\nservants, who, having finished their course in faith, do now rest from\ntheir labours, and especially at this time thy servant, Arthur. And we\nbeseech thee, that we, with all those who are departed in the true faith\nof thy Holy Name, may have our perfect consummation and blise, both\nin body and soul, in thy eternal and everlasting glory; through Jeans\nChrist our Lord. Amen.\nR\nEMEMBER thy servant departed this life, 0 Lord, according to\nthe favour which thou bearest unto thy people, and grant that,\nincreasing in knowledge and love of thee, be may go from strength to\nstrength, in the life of perfect service, in thy heavenly kingdom; through\nJesua Christ our Lord, who liveth and reigneth with thee and the Holy\nGhost ever, one God, world without end. Amen,\nALMIGHTY Art Arthur, we remember this day before thee thy faithful\nand we pray thee that, having opened to him the\ngates of larger life, thou wilt receive him more and more into thy joyful\nservice; that be may win, with thee and thy servants everywhere, the\neternal victory; through Jesus Christ our Lord. Amen.\nBENEDICTION ANTREM\nGoss\no Saviour of the world, who by thy Cross and Precious Blood bath redeemed\nas, save us and help WA, we humbly beseech thee, 0 Lord.\nTHE BENEDICTION\nU\nNTO God's gracious mercy and protection we commit you. The\nLord bless you and keep you. The Lord make his face to shine\nupon you, and be gracious unto you. The Lord lift up his countenance\nupon you, and give you peace, both now and evermore. Amen.\nCLOSING HYMN 379\nIsnac Watts\n0\nGOD, our help in ages past,\n4 A thousand ages in thy sight,\nOur hope for years to come,\nAre like an evening gone;\nOur shelter from the stormy blast\nShort as the watch that ends the night\nAnd our eternal home:\nBefore the rising sun.\n2 Under the shadow of thy throne\n5 Time, like an ever-rolling stream,\nThy eaints have dwelt secure;\nBears all its sons away;\nSufficient in thine arm alone,\nThey By, forgotten, ss a dream\nAnd our defence is sure,\nDies at the opening day.\n3 Before the bille in order stood,\n6 0 God, our help in ages past,\nOr earth received her frame,\nFrom overlasting thou art God,\nOur hope for years to come,\nBe thou our guide while life shall last,\nTo endless years the same.\nAnd our eternal home.\nPOSTLUDE\nFUNERAL MARCH\nMendelssohn\nRegraded Unclassifie\n26, 1941\nFiles\nMr. Occurse\nMr. Lindholm of the Department of Diate (Branch 634) telephoned no at 3:30\nthis afternaon to let as know that & sablegram had been received free invosander\nVinant in London expressing his thanks for the Message regarding Gasaday. The\nAmbossador was arranging for Dos to arrive is the United States by September 15.\nA fev minutes after this conversation I received from Mr. Livesey's office the\nattached Triple Priority message 30. 3882, which had been seat enbrequent to\nthat mentioned w Mr. Lindholm. Upon the receipt of this message, my office\nsent a tolegram to the Federal Recerve Bank at New Tork instructing that the\nadvance of $400 to Mr. Goo be cabled. I telephoned Mr. Lindhelm and read his\ncallegram No. 3882. which be had not yet coon. Re said be would immediately\nlearn what the Department of State wes doing to arrange for a Clipper recerve-\ntion from Lisbon on September 20. It was agreed between as that since the London\nEmbasey had already arranged for transportation free Lendon to Lisbon on\nSeptember 19, we should net attempt to obtain a Clipper reservation earlier than\nthat of September 20. This would involve Ose arriving in Washington a week later\nthan originally anticipated, but the at Lendon has through its cablegram\nconfirmed our impression that air transportation service is nov heavily congested.\nKr. Lindhelm promised to telephone se as to what be learns on the point of the\nrecorvation, and vs will then draft a cablegram to Londes.\nm\nRMC:lap-5/26/41\nRegraded Unclassified\n264\nKD\nPLAIN\nLondon\nDated August 26, 1941\nRec'd. 12:55 P. m.\nSECRETARY of: State,\nWashington.\nTRIPLE PRIORITY\n3882, Twenty-sixth.\nFOR TREASURY FROM COE.\nAir transport Lisbon arranged for September 19.\nUnderstand State Department attempting arrange clipper\nSeptember 20. Transport SERVICES heavily congested.\nEmbassy wants to know whether this date is satisfactory.\nIf not please contact State Department. Please send\nadditional advance of $400.\nWINANT.\nHPD\nRegraded Unclassified\nTHE BRITISH SUPPLY COUNCIL IN NORTH AMERICA\n265\nBox 680\nTelephone: Republic 7860\nBenjamin Franklin Station\nWashington, D.C.\n26th August, 1941.\nDear Cochran,\nI am told that the OPM (I believe\nMr. Gordon Williams) are declining to give\nany priority for gold mining machinery for the\nBelgian Congo on the ground that gold production\nis not essential. The gold production in the\nBelgian Congo is about 37,000 ounces & month,\nover $15 millions a year. The order for nach-\ninery vas to the value of about $70,000. It 18\ndifficult to see how an industry which produces\n$15 millions a. year buying power for the sterling\nblock can be regarded as non-essential. Apart\nfrom this, a.e you are aware, if the same kind of\nruling were applied to gold mining machinery for\nSouth Africa, the whole financial basis on which\nthe lend-lease scheme rests would be wrecked,\nand we should be under the unfortunate necessity\nof applying to you for a large cash loan, in\naddition to lend-lease assistance.\nYours sincerely,\n/8/ P. Phillips\nMr. H. Merle Cochren,\nUnited States Treasury,\nWashington,\nD. C.\nCopy: hbr: 8-26-41+\nRegraded Unclassified\n266\nFOR THE PRESS\nIMEDIATE RELEASE\nFCR THE PRESS\nAugust 26, 1941\nThis Government is preparing to send a military\nnission to China. The mission will be sent for the purpose\nof assisting in carrying out the purposes of the Lend-Lease\nAct. It is being organized and it will operate under the direc-\ntion of the Secretary of Tar. Its crief will be Brigndier Gen-\neral Join Magruder.\nThe function of the mission will be to study, in col-\nlaboration with Chinese and other authorities, the military situ-\nation in China, the need of the Chinese Government for materiel\nand materials; to formulate recommendations regarding types and\nquantities of items needed; to astist in procurement in this\ncountry and in delivery in China of such materiel and esterials;\nto instruct in the use and maintanance of erticles thus pro-\nvided; und to give advice and zu ggestions of appropriate char-\nacter toward making Lend-Lease assistance to China as effective\nas possible in the interest of the United States, of China, and\nof the world fort in resistance to movements of conquest by\nforce,\nThe sending of this mission is in keeping with and is\non parallel lines to the sending of 21. similar missim to the\nSoviet Union. The purposes of the two missions are identical.\nGeneral Magruder has had long experience in China where\nhe twice served as Military Attache. HC, therefore, will be work-\ninc on familiar ground, areng people he knows well and to whom\nhe is well known. An anoquate staff of thoroughly qualified of-\nfieers will accompany General Magnider,\nRegraded Unclassified\nRegraded Unclassified\nOF THE ECONOMIC DIFFERENT BOARD AUGUST 77, 1941\nPresent at the meeting verer\nThe Vice President, Assistant Secretary of State\nBreakinridge Long, Assistant Secretary of the\nTreasury Berbert I. Gaston, Under Secretary of\nMAP Robert P. Patterson, the Attorney General,\nAssistant Secretary of the Navy Adlai Stevenson,\nSecretary of Agriculture, and Secretary of Connerce.\nAlso present at the meeting were: Mr. Laurence\nDuggan, State Department, Mr. N. L. Clayton, Federal\nLoan Agency Messrs. 1. A. Locke, Jr. and John L.\nPratt, Office of Production Management; Mr. Welson\nRockefeller, Coordinator of Inter-Ameriosn Affairs;\nand Mr. Finfield Riefler.\nThe Vice President asked Assistant Secretary of State Long and\nVeners. Looks and Pratt if they had any report to make 00 the require-\nments for mierials for Latin America. Assistant Secretary of State\nLong reported that the State Department, the Office of Production\nManagement and the Rocksfeller Committee have net and discussed this\nsituation fully. Assistant Secretary of State Long presented a list\nof materials and available supplies on band. Be said that the Presi-\ndent stated in April that the policy of the United States 1a to furnish\nall possible materials to Latin America over and above our actual\ndefense needs. Be stated that many minerals are exported from Letin\nAmerica to the United States, and Latin America should receive FORM of\nthe materials after they have been fabrionted. For instance, hs said\nthat Latin America produces much copper, but 50 copper wire is -\nfactured in Latin America. He stated that Latin America needs copper\nvire to operate hydro electric plants, and that their requirements\nare infinitestimal as compared to our supplies. He stated that Latio\nAmerica needa 3.6% of the copper we have on hand, 11.45 of our evail-\nable aluminum, 7.75 of our available brass, and Less than 15 of our\n:Failable supplies of other materials. Assistant Secretary of State\nLong stated that the State Department wishes these surplus materials\nsent to Latin America. Assistant Secretary of the Treasury Gaston\nstated that 16 do not possess any supplus strategic materials and that\nthe figures represent the excess over our military needs. Under\nSecretary of War Patterson stated that the United States Army requires\nall aluminum and copper on hand and that there will be no excess until\nMarch 1942. Be stated that DO aluminum is being furnished civilians\nat this time.\nThe Secretary of Commiss said that conditions have changed\nradisally since the President announced his policy in regard to Latia\n20d\nRegraded Unclassified\nAmerica receiving mierials. Mr. Prest, of the Office of Production\nManagement, stated that to should divide with Latin America only that\nmaterial which is available for civilian needs. The Secretary of\nCommerce saked whether Latin America is asking for 4 silitary material.\nAssistant Secretary of War replied that $400,000,000 under the Lend-\nLease Bill has been allotted to South America. xr me Mr. Bookefeller's\nopinion that we should - that strategic material is furnished Letin\ninerios as & protection assure, because a military problem would be\ncreated for us if Axis groups overthrew any South American country.\nUnder Secretary of War Patterson stated that the War Department\nhis been asked by civilian groups to release solle a luminue in this\ncountry. Two different companies have told the Wor Department that\nmore than 200,000 people will be thrown out of employment unless .\nlittle alusime is released. Under Secretary Patterson said that it\nwould probably be well to release BOWS aluminum even though the defense\neffort were slowed up to some extent. Secretary of Agrioulture said\nzino should be sent immediately to wouth America in order that news-\npapers friendly to the United States can continue to be published.\nThere was no disagreement.\nMr. Hockefeller stated that the Office of Production Management\nhas received only twenty export requests from South America purchasers.\nHe said that there are insumerable firms in South America which are\nbadly in need of materials, but that they do not know the procedure to\nfollow. The Brasilians, said Mr. Rockefeller, cannot understand why\npriority for steel was given to Argentina and refused to Brazil, Itr.\nClayton, of the Federal Loan Agency, said that that Agency has men in\neach Latin American country who are cooperating with local firms. It\nTHE his opinion that vo should have & man in each country to whom\nrequests onn be presented, who can investigate the needs, etc. The\nVice President stated that in accordance with the President's policy,\n- should share our strategic materials with Latin America after our\nailitary needs are taken care of; this policy to be followed except in\nspecial casse.\nAssistant Secretary Caston stated that the Economic Defense Hoard\nshould not report to any other Boards or Agencies, but that they should\nreport to the Economic Defense Board. The Vice President presented the\nchart of the Economic Defense Board. The Attorney General stated that\nbe did not believe the Economic Defense Board should employ anyone to\ndraft statutes. Assistent Secretary Oaston stated that care should be\ntaken that there 10 no duplication of effort, and that other Agencies\nan working on post-war problems. The Vice President said that the\nLeonomic Defense Board's work on post-war problems would be international\nin its aspects and that most of the work being done on post-mar problems\nby other Agencies is domestic in its nature. Under Secretary of Har\nPatterson stated that the Economic Defense Board will need & legal staff.\nThe Attorney General agreed. All members of the Board present approved\nthe chart outlining the Divisions and duties of the Boonomic Defense Board.\n269\n- , -\nRegraded Unclassified\nAssistant Secretary of the Treasury Caston stated that erade\noil is being shipped from Part Arther, Texas to Special. He stated that\nthe Treasury Department has received stories from mailors on the taskers\nto the effect that this oil is being transferred to Italy and Cornany.\nThe Vice President anked the Assistant Secretary of State to furnish\nthe Board further information 00 this matter.\nThe Secretary of Agriculture asked what steps had been taken on\nthe African oils situation. Assistant Secretary of State Long said that\nthe State Department is not yet ready to report on African oils, but\nwill be ready to report within the next month. Be said that the State\nDepartment hopes that the British will take care of this situation. The\nVice President asked the State Department, the Treasury Department and\nthe Federal Loan Agency to give the Board reports on what work their\nDepartments are doing regarding economic defense. Each Department\npromised to furnish this information. The Vice President asked that\nthe Maritime Commission also prepare such a report,\nThe Board adjourned to meet on Wednesday September 3, 1941 or\n9:30 a.m.\n270\nOFFICE OF CIVILIAN DEFENSE\nIrsh\nWASHINGTON, D.C.\nAugust 27, 1941\nThe Honorable\nHenry Morgenthau, Jr.\nSecretary of the Treasury\nWashington, D. C.\nDear Sir:\nThere is enclosed for your information a copy\nof Bulletin No. 1, \"Emergency Medical Services,\"\nwhich has just been published and which will be\ndistributed generally within a few days.\nVery truly yours,\nF. H. LaGuardia\nU. S. Director Civilian Defense\nRegraded Unclassified\n27!\nMedical Division\nBulletin No. I\nEMERGENCY\nMEDICAL\nSERVICE\nFOR\nCIVILIAN DEFENSE\nUnited States Office of Civilian Defense\nWashington, D.C.\nRegraded Unclassified\nOFFICE OF CIVILIAN DEFENSE\nWASHINGTON, D. C.\nMedical Provisions for Civilian Defense\nThe netivities of the U.S. Office of Civilian Defense are concerned primarily with the\nprotection of lives and property in the event of enemy action. To its Medical Division is\nentrusted the responsibility for the preparation of plans for Civilian Defense designed to pre-\nvent or alleviate the medical and public health hazards to which the civilian population may\nbe exposed.\nThis bulletin is the first of a series of recommendations to State and Local Directors of\nCivilian Defense concerning the augmentation of medical facilities in their area. It presents\na simple basic plan for the organization of Emergency Medical Field Units related to hospitals,\nwhich can be adapted to the needs of any community. It directs attention to the possible\nfuture requirements for expansion of hospital facilities both within a community and outside\nits boundaries. To this end, it recommende the immediate preparation of a local inventory,\na report of which should be filed in duplicate with the Area Office of Civilian Defense. It\nalso recommends that steps be initiated in each local area for the rapid expansion of nure\ning facilities through intensive training of adequate numbers of pursing auxiliaries.\nTo those who do not as yet appreciate the need for action, I should like to quote from a\nsimilar official bulletin issued in England in 1938 just prior to the beginning of hostilities,\nwhich describes measures for safeguarding the civilian population:\n\"The need for (these measures] is not related to any belief that war is\nimminent. It arises from the fact that the risk of attack from the air, how-\never remote it may be, is a risk that cannot be ignored, and because preparations\nto minimize the consequences of attack from the air cannot be improvised on\nthe spur of the moment but must be made, if they are to be effective, in time of\npeace.\"\nWhether or not we regard danger to the lives and the property of our people as imminent.\nI would urge that immediate steps be taken to carry out these recommendations of the Office\nof Civilian Defense in every State along our scaboards and in industrial areas in the interior.\nF.H. LAGUARDIA.\nU.S. Director Civilian Defense,\nWASHINGTON, D. C.\nJuly 30, 1941\nRegraded Unclassified\nEMERUENCY M D I c A L SERVICE\nFOR\nCIVILIAN\nDEFENOS\nCivilian Defense Areas are colerminous\n/\nwith Wer Department Corns Areas\nEmergency Medical Service\n-\nhow\n/\nMIN.\n6\n2\nfor\n& FAIL\n7\nand.\n\"Busion,\na\nMOK\nE\nNot\nyou\n9\nIDWA\n-\nMY,\nChicago\nOmaha\nOH2\nNon\nF\nVMI-\nCIVILIAN DEFENSE\n/\nFrancisco\nvitay\nColumbur\nFOLO,\nMARIAS.\nMO\n5\nn.\nH.C.\nTENM.\n402\nCALLA\nn. MEA,\nARE\n4\nAtlanta\nCURRENT developments in techniques of warfare leading to the possibility of\n8\nMA\nBA-\nUSA\nunheralded hombing of civilian populations as well as potential liararde from sibotage make\nYEXAS\nLA\nimperative the preparation of facilities for providing medical service in cassulties that may\nCivilian Defense Area\nSan Antonio\nresult from such incidents. The need for them facilities may not arime, but their\n1\nFLA\nAdminishative Centers\norganization inust be a fundamental part of our Civilian Defense program. It is the purpose\nOffice of Civillar Defene\nof this bulletia to outline the estentiale of an Emergency Medical Service and to describe a\ntype of organization by which the cosentials may be achieved.\nUNITED STATES OFFICE or CIVILIAN DEFENGE\nThe Medical Division of the Office of Civilian Defense \" charged with the preparation\nof plans for emergency medical service and equipment. II alm maintains lialion with other\n2000 Mossnchusette Avenue\nWashington, D. e:\nFederal agencies concerned with public health and medical rate lo addition, un officer of\nthe United States Public Health Service is designated to are as medical liaion to Ovillan\nDefense Area Office (see map).\nREGIONAL OFFICES\nFIFTH CIVILIAN DEFENSE AREA\n427 Clevelasd Avenue. Columbus Ohio\nBerwase of geographical and administrative diversity in various parto of the country.\nFIRST CIVILIAN DIFENSE AREA\ngeneral plans are presented as recommendations to State and local defense conneils for\nEXTR CIVILIAN DEFENSE AHEA\n9 Back Sheet, Boston,\n120 South LaSelle Street, Charge Illinos\nadaptation to meet the useds of the different areas. The general adoption of a common\npattern in organization and equipment for eivílian defense in highly destrable an Unit\nSECOND CIVILIAN DEPENSE AREA\nSEVENTH CIVILIAN DEFENSE AREA\nadjarent communities may pool or exchange emergency resources in Lime of need.\nill Eiglish Avenue, New York City\n€20 Warld Horald Building, Omaha\nLocal administrative areas for civilian defense will frequently estend beyond municipal\nTHIRD CIVILIAN DEFENSE AREA\nBIGHTH CIVILIAN DEFENSE AREA\n400 Cuthedical Street, Boltimes Maryland\nBoom 1014 Mujestic Building. San Taxas\nor other political boundaries. Such administrative civilian defense areas may be delined by\nState Defense Conneils. In is important that the Emergency Medical Service be integrated\nFOURTH CIVILIAN DEFENSE AREA\nNINTH CIVILIAN DEFENSE AREA\nat all administrative levels with welfare. police, and other energency services,\nBoot 205-206 City Hell Atlass,\n233 Source Street Sex Caldersin\nRegraded Unclassified\nEMERGENCY MEDICAL SERVICE\nFOR CIVILIAN\nLOCAL DIRECTOR OF CIVILIAN DEFENSE.\nThe immediate command of all local civilian defense forces,\nincluding the medical, and the orders for emergency mobiliza-\nLOCAL DIRECTOR or\ntion of these forces should be the responsibility of the person\nCIVILIAN DEFENSE\nofficially designated as Director of Civilian Defense for the area.\nHe must possess full information concerning emergency medical\nfacilities available in the area.\nMEDICAL ADVISORY COUNCIL\nHealth, Hospitals, Medical Society,\nNurse, Red Cross, Other Agency\nOTHER EMERGENCY\nCHIEF OF\nSERVICES\nEMERGENCY\nPolice, Fire, etc.\nMEDICAL SERVICES\n*BASE\nHOSPITALS\nVOLUNTARY AGENCIES\nHEALTH\n(Governmental and Voluntary)\n(Red Cross, etc.)\nDEPARTMENT\n*EVACUATION OR\nVOLUNTEER\nEMERGENCY\nNURSES'\nPUBLIC HEALTH\nCLEARANCE HOSPITALS\nAIDE CORPS\nNURSING\nANSPORT OFFICER\nEMERGENCY\nAMBULANCE SERVICE\nTRANSPORT SERVICE\nWATER AND FOOD\nTRANSPORT SERVICE\nPROTECTION\nCASUALTY STATIONS\nDECONTAMINATION\n**CANTEEN AND\nSHELTER\nINFORMATION\nSTATIONS\nSANITATION\nAIR RAID WARDENS\nSERVICES\nRESCUE SQUADS AND\nSTRETCHER TEAMS\nFIRST AID POSTS\n* Functions projected for fature organisation.\nFIELD or EMERGENCY\n.. In acros communities Canteen, Information, Evacuation, and Rehousing Services will be\nthe responsibility of the Welfare Department.\nRegraded Unclassified\nD\nCIVILIAN\nDEPENSE\nI. LOCAL CHIEF OF EMERGENCY MEDICAL SERVICE\nUnite of two large equada each, are advisable for #\nmitable compartment. À list suggesting minimum\nAn Emergency Medical Service should be organ-\nan experienced hospital administrator. It should\npoyulation of 100,000. la large cities, the devin\nequipment will be available in - separate memo-\nized as M enction of the loval defense organization\nbe his first daty to make an inventory of the -\nable ministum would be large equada (16 phy-\nrandum (Pulletin No. 2).\nmotoity's medical resources and facilities, and -\nciclane and assistants) per 100,000.\nin each area under a director responsible to the\nThe provision of working supplies in -\nprepare local plans, develop an organisation, and\ncontainer for each physician will permit the equal\nlocal Director of Civilian Defense Il in recom-\n4. It will be advisable to organize physicians and\nprovide for the training of personal to marry Mill\nof a Camality Station la split off teams of me physic\nmended that the local Chief of Emergency Mult-\nDISENCE engaged in private practive in the uses into\nclais and aminions who cast he disparched in and up\ncal Service be à physician of hroad experience and\nthe functions of the Emergency Medical Service\n(eserve Emergency Field Doits related for haspitals.\nadministrative capacity, such as a health OF\noutlined below.\nle areas with small hospitals whose resident staffs\nmisidiary First Aid Poste at other sites\ncannot be depleted. the primary Emergency Unit\nII. LOCAL MEDICAL ADVISORY COUNCIL ON CIVILIAN DEFENSE.\nof a hospital may be made up in whole or in part of\nD. Casualty Stations and First Aid\npractitioners from the community.\nPosts.\nThe local Chief of Emergency Medical Service\nany because of his technical experience and -\nUpon arrival at the site of A disaster, the equale\nabould be Chairman of - Medical Advistry Commit\nlive ability. . registered nure, and e repromitive\nB. Transportation.\nof the Emergency Medical Units which have IN\nThis Council might well include the local health\nof the American National Red Cross and miney\nA Inspital ambulance, station wagen. small\nsponded 10 the appropriate alarm will mil up Care\nafter, an experienced hospital administrator, al\nvuluniary agencies.\ntrusk. or passenger vehicle will her adequate to\nunliy Stations at the alter designated by the lossi\nphysician recommended by the local medical soci-\nmanagement the personnel of a equid and their equip-\nDirector of Civilian Defense, The location of -\nminit is the with designated by the local Director of\nCamality Station should provide sifety, abotter, and\nIII. EMERGENCY MEDICAL FIELD UNITS.\nCivilian Defense for the establishment of a Car\naccomility. Streteliers, mile, and Mankets will\nIn State ⑉ both wishourds and in vuluerable in\ncommand the entire unit Squad le me\nmalry Station. On return trips to the hospital with\nhave arrived in * truck carrying the Beacue Squail\nduestial above in the interior. general hospitals,\nshould her designated. The size of the Emergency\ncasualties soch vehicle will be available for ITAMS\nof the police, fire, of other municipal department.\nportation of additional equale and if\nUntil released by unitersity of the loval Disector of\nboth vuluntary and governmental, including Veter\nField Unit should be in proportion ⑉ the bed ⑉\nand Administration Facilitive and the Marine Now\nparty of The parent Inspital. All involved of\nrequired. Hospitals which do not maintain an\nCivilian Deforme, the physicians and nurse of the\nField Units should be instructed in first and,\" -\nunberlance service will find it personary to provide\nEmergency Medical Unit should remain at Heit\npaids of the United States Public Health Service,\ncluding care of prevention xd aloock. a\nfor transportation, utilizing private or municipal\namin, in which the injured will be directed or\norganize Emergency Medical Field Units\nand assemble basic equipment. An Emergency\nof hemorrhage. emergency (reatment of Transferm\nrestalance services, small vehicles of the poller,\nrearoported on erretchere by the Signada and\nand worrds, and in the technique of decentant\nAre. or other municipal departments, station\nvolunteers endiated by them for this purpose The\nMedical Field Unit starable consist of the or more\nwork of the Camality Mation is to be limited to\nequals. and a physician should be appointed in\nnation.\nsigning (If passenger care. Special racks less -\narate memorandum of the Medical Division of the\nemergency first aid procedures-1] relist of grain,\nprevention of strick, control of honording rate of\nA. Personnel.\nOffice of Civilian Defense) can be installed in\napplication of simple splints and of aurgival\nprivate ambulances and in station wagness and small\n1. SMALL SQUARE In hospitals of less than 200\n12/mine period of the day The personal and\ndreams and not least, the of nurside\ntranks an that they may be offilized in an emergency\nequipment of a espasi should he divisible larto lear\nby the miablishment of confidence, The ecrionaly\nbeds, it is recommended that the Emergency Field\nEne the transportation of four or mure stretcher\ninjured will lan examined as rapidly us possible by\nUnit consist of Two equale, one for each 12-hour\nteams, empable of If al impart\nat a time.\nshift of the day. Fach equal should be composed\nde alter of disinier. At loast nue Emil of side alive\namlinlance or other valide in - hospital. There\nor two Units with small signado art adviside fan\nPrivate vehicles recruited for ambulance par\nwith minus injuries will go to their Turnes NE to\nof two physicians, two or mum names, and two of\npuans by the American National Red Cross un milier\nmure orderlies or minis aldre, and be capable of\ntomporary shelters.\npaymentions up to 50,000.\nfanctioning, if accessary. de two enparate\nadminist In assigned to a hospital (if to a\nIf nationaly, the equal leader in charge of . Date\nALL lowit one Unit of this size is advisable for a pop-\n3. In hospitals of more than 350 hells the Exemit\ndesignated parking center under the control of a\nmalty Station may split off one of nom teams of\nolation up for 25,000.\ngeney Field Unit should consist of four of mayors\ntransport officer.\none physician and amidants, disputching tion to\n2. LAME SQUARS to hospitals of more than 200\nlorge equada, each beaded by - arguad loader and\nart up solendisty First Aid Punis al other siles.\nC. Medical and Surgical Equipment.\nIt will be advisable for the local Chief of Kmer\nheds the Emergency Field Unit should consist of\nespable of functioning. if number ly, as multiple\nteams. to them large Impitale at Innal two equals\nThe medical and surgical equipment for a equal\npody Medical Service to propare a spot map of\ntwo equals of four doctors, four or more mires,\nshould ennaist of a working supply for each physi-\nthe area to indicate all outpations clinics, beattle\nand four or more orderline OF nurme andes, me of\nshould be on call during each 12-hour provided of the\nHan's team and a reserve supply of aterile devesings\ncenters and their embitations, and all police and fire\nthe physicians in with equal in ant as aqual leader.\nday, alternating on firm rall on alternate days. As\nEach of the separds should he an first call during A\nEmergency Field Unit of four large aguada of per\nand -quipment in drums or packs from which the\nstations of other alles which could serve in an\nworking supplies of the teams may be replenished.\nemergency as Complety Maxines IIT Fini Aid Posts:\n*Advened First AND mire prepared by the Ollin if Civilian Defense in millaboration wish the American National Brd\nThe working supply of each team la best carried in\nThe should also maintain an inventory of available\nCross\na portable bag, box, or haversark provided with\ntransportation.\nRegraded Unclassified\nEMERGENCY\nE. Decontamination Stations.\nPost, A duplicate record should be kept in a book\nA subsequent bulletin will deal with the struc-\nwhich should be standard equipment of each med.\ntural requirements of Decontamination Stations\nleal emergency team. The record should include\nand with detaile concerning the care of casualties\nthe name or other identification, address, person\nfrom chemical agents.\nto be notified, diagnosis, first aid administered, man\nphine if given, and disposition. A form approved\nF. Rescue Squads and Stretcher\nby the Medical Division of the Office of Civilian De\nTeams.\nfense will be found in a supplementary memoran.\ndum on equipment. One nurse or ourses' side\nCasualties will be conducted on foot or trans-\nshould be assigned the responsibility for these Enc-\nported on stretchers to the nearest Casualty Sta-\nords. The forehead of tourniquet cases and of par\ntion or First Aid Post by Rescue Squade of the\ntients urgently requiring priority attention should\npolice, fire, or other municipal department. These\nbe marked TK or U, respectively, with a red crayon\nRescue Squads may he assisted by Air Raid War-\nskin pencil, or lipstick.\ndens and by volunteers enlisted at the time. Police\nand fire reserves should be well trained in first aid\nH. Drills.\nand stretcher bearing, and organized into Reseue\nIt is recommended that drills be called at each\nSquads of four or eight, headed by a equad leader.\nhospital once a month by the Chief of the protes\nBy the addition of volunteers, a Rescue Squad is\nsional staff. A record of each drill should be kept\ncapable of being multiplied into as many stretcher\nby him, which will show the time required for\nteams as there are members, each trained member\ncomplete mobilization of a squad at the designated\nbecoming the leader of il team.\npoint of departure and the condition of equipment\nProvision should be made for the storage of\nand transportation.\nstandard stretchers, collapsible cots, and blankets\nIt is also recommended that field drills be called\nin designated locations, such as police and fire\nunexpectedly by the local Director of Civilian\nstations, hospitals, health centers, or other suitable\nDefense at least every 3 months for each hospital.\nplace. The number of standard stretchers stored\nEach field drill might appropriately include one er\nin each police and fire station should be equal to\nmore Rescue Squads of the police, fire, or other\nthe number of members of the station's Rescue\nmunicipal department, who will assist the Emer-\nSquads.\ngency Medical Squade in setting up Casualty Ste\nIt will be advisable to have three times as many\ntions at designated sites. The official in command\ncollapsible cole as stretchers and two blankets for\nat the drille should inspect the clothing, equip-\nevery stretcher and cot. This equipment should be\nment, and transportation of all participating units\ntransported by the truck carrying the Rescue Squad\nand render a report to the Chief of Emergency\nto the site of the Casualty Station or First Aid Post.\nMedical Service and to the local Director of Civilian\nG. Records.\nDefense upon the promptness and efficiency of each\nunit. The larger field drills might include the\nIdentification tags should be affixed to the in-\nCanteen and other Emergency Relief Services of\nJured by the Rescue Squad or else immediately\nthe Welfare Department or of the local chapter of\nupon arrival at the Casualty Station or First Aid\nthe American Red Cross or other local agencf.\nIV. BASE AND EVACUATION OR CLEARANCE HOSPITALS.\nIn order to prepare for the release of hospital\nunlties, the Chief of Emergency Medical Service\nbeds within the area for large numbers of case\nshould make an inventory of hospitals, convaleseent\nResene Squade consist of auxiliaries of the police or fire department, who are trained and equipped for clearance stretcher el\nbearing so that each member can serve as the leader of a Stretcher Team. Their first aid services at the time of the disaster\ndemolition work. Although their function is to extricate the injured, they have also had training in first and and in should\nobject should be to remove the injured as 6008 as possible from the scene of danger with the aid of Volunteer Stretcher\nbe restricted solely to most urgent needs such as the arrest of profuse bleeding or the application of - log splint. Their primary Towards\nand get them to # First Aid Post or Casualty Station.\nUnclassifie\nCIVILIAN\nhomes, and other institutions within a radius of 50\npitals, it may become necessary to consider evacu-\nor more miles, to which maternity services, chil-\nating casualties to Base Hospitals and transforming\ndren's wards, certain categories of the hospitalized\nhospitals near the acene into Evacuation or Caso-\nsick, and convalescents could be transported. Pro-\nalty Clearance Hospitals.\nvision should also be made for the assembly and\nUpon receiving the first emergency call, the hos-\nstorage of an adequate supply of hospital cota, mat-\npital should order all members of its visiting staff\ntresses, blankets, and other equipment which may\nby telephone or police radio call to report to the\nbe required to provide for emergency increase in\nhospital and stand by for the care of the injured\nbed capacity of voluntary and governmental hos-\nreceived from the Casualty Stations and First Aid\npitala. In the event of actual destruction of hos-\nPosts.\nV. AUGMENTATION OF NURSING SERVICES.\nIn the face of the need for rapid expansion of\ncompletion of this practical training, Volunteer\noursing services for civilian defense, the number\nNurses' Aides will become eligible to namist nurses\nof available nurses is being depleted because of\nin wards and out-patient clinica of hospitals, or in\nthe requirements of the military forces and the\nvisiting nurse, public health, industrial hygiene,\npublic health and industrial hygiene services. An\nand school health services. Volunteer Nurses'\nattempt is being made to compensate for this de-\nAides are intended to supplement the work of the\nficiency by the training of subsidiary hospital\nnurse, so that she may be able to scrve a greater\nworkers through the NYA, WPA, and other pro-\nnumber of patients. It is recommended that the\ngrams. The Office of Civilian Defense in collabo-\nlocal Chief of Emergency Medical Service in col-\nration with the American National Red Cross has\nlaboration with hospital executives and principals\nrevised the instruction curriculum for Volunteer\nof schools of nursing reorganize and intensify the\nNurses' Aides, so as to provide for a period of inten-\ntraining and the use of Volunteer Nurses' Aides in\ngive practical instruction in hospitals under the di-\nappropriate hospitals in accordance with the new\nrection of a special instructor in charge of the\nschedule of the Office of Civilian Defense and the\ntraining and use of Volunteer Nurses' Aides. Upon\nAmerican National Red Cross.\nVI. FIRST AID.\nFirst aid instruction should be provided for as\nlaboration with the Office of Civilian Defense is rec-\nlarge a part of the general population as possible.\nommended for first aid training. Instructors qual-\nThe local Chief of Emergency Medical Service\nified by the Red Cross may give this training under\nshould, in collaboration with the local chapter of\nthe direction of the local chapter of the American\nthe American National Red Cross, provide training\nRed Cross, the local health department, or any\nin first aid for at least 5 percent of the personnel of\nall municipal departments and large business and\nother voluntary or governmental agency,\nindustrial establishments. Upon completion of\nAn intensive course of practical training (five\ntraining, this 5 percent should constitute the first\n2-hour lessons) has been prepared by the Medical\naid corpe of their municipal department, business,\nDivision of the Office of Civilian Defense and the\nor factory group. The leaders of these corps\nAmerican National Red Cross as supplementary in-\nshould be encouraged to take the Instructor's\nstruction for members of Emergency Medical Field\nCourse of the American National Red Cross so that,\nUnits and for nursing auxiliaries and members of\nwhen qualified, their services might be utilized for\nother Civilian Defense Units (police officers, fire-\nthe extension of first aid instruction to all em-\nmen, and volunteer auxiliaries) who have had pre-\nployees and to the general population of the\nvious instruction in first aid. It is designed as B\ncommunity.\nrefresher course for the purpose of reviewing and\nThe First Aid Course for Civilian Defense pre-\npracticing those first aid procedures which are most\npared by the American National Red Cross in col-\nimportant in Civilian Defense.\nRegraded Unclassified\n272\n- n. 1941\nFiles\nMr. Gostram\nSTRICTLY CONFIDENTIAL\nInformation has readhed the Freenury that under date of August 13 the\nMinister of Pinance of the Vishy deverament sent werd to the French Financial\nAttache is New York, with refervace to the latter's inquiry, to the effect that\nVisay considered 11 impossible for the Allasha not to provide the American\ntreasury with the information which the latter had requested. the Rinistry of\nPleases agreed with Lasour-Guyer's proposal that he request all of the French\ndiplomatis missions in Bouth and Central America to provide his with figures\nM of July 31 and that the Paymentor General request these figures month W\nneath thereafter. Be Ninistry said that 11 poes without saying that the docla-\nration of holdings, both la demosite arrown and dollars, should be limited to\nholdings belonging to the diplemativ missions themselves be the oralusion of\nholdings which the Bask of Brance mi the treasury my possess, as will M the\neconomic services of certain embassies. These latter heldings are already\nallocated, is fact, to specified or englisht to be conserved as researces\nfor varied needs,\nthe moreage vest on to my that the Ministry for Foreign Affaire was re-\nquesting the Fresch diplematic missions is Central America to give\nthe information which he requests, keeping is aind the preseding indications\ninsefar as they apply.\npm\nE\nHMC:1ap:imc.8.27.41\nRegraded Unclassified\n273\nAugust as, 1942\nFiles\nmr. Cookram\nMr. Livesey tolephoned as free the Department of State yesterday at 3 p.m.\n20 said that be van a number of a Shipping Prierities Committee which had recently\nbeen interested is the shipment ef Chinese les free Beag Zong. & - named Ini\nis leoking after the interests of the Chinese 988 as this market. Insidentally,\nthe statement was made that the Brittsh were spending $400,000 is the United States\nfor advertising Seylea and Indian tea. It vas the understanding that this adver-\nlising had saly started recently, bas sight load to serious competition on the part\nof Osylem and Indian too with the Chinces product. He. Livesey asked - whether\nthe treasury had any Inculadge of the British having a is of many má as that\nabove indicated free to spend for advertising yuryees is this coming. I teld\nKr. Livesey that I ass net recall seeing any amount listed for advertising yes\nyears is the verious statements which the Britten have submitted to @9.After this\nconversation 1 asked Rice Kistler of Mr. White's office If she had any informe-\ntiem on this point. Rice Kistler said she had - through what breakleen they\nhave and she finds M montion of advertising. They usually give all \"ots.\" or\n'sainly'. fhere is & leavey. There to no nonties for advertising as mak.\nnot\nEMC:1ap-8/26/41\nRegraded Unclassified\n0\no\n274\n?\nTHE BRITISH SUPPLY COUNCIL IN NORTH AMERICA\nBox 680\nBenjamin Franklin Station\nWeahington, D. C.\n27th August 1941.\nDear Cochran,\nAt the end of July Stopford or I gave you or\nWhite (I can't trace the letter) some information about dollar\nbalances in Hong Kong. The gist of it was that the dollar deposite\ndeclared to the Hong Kong authorities were roughly as follows :-\n$\n-\nIn connection with Chinese Government,\nmostly going through Hong Kong\n9 million\nCommercial holdings of non-British and Chinese\n3\nIf\nPersonal holdings of non-British and Chinese\n3\n-\nBritish commercial firms\n2\nAmerican commercial and personal holdinge\n1 a\n15 million\nThe bulk of the dollar holdings amounting to three or four times the\nabove were said to be apparently accounts of Head Offices of Chinese\nGovernment banks which as such had not been declared to the Hong Kong\nGovernment.\nLondon has now asked Eall-Patch whether he can add\nto the above information. particularly as regards the large amount\napparently held on behalf of the Chinese Government banks or the\nGovernment of China; they would like to know in particular whether\nthe different categories of holders could not be distinguished.\nI should be very grateful if you would lot me know\nwhether you are able to throw any additional light on the matter. or\nhave any additional information which you could pass on to M.\nYours sincerely,\n10/ T. X. Bewley\nMr. H. Marle Cochran,\nUnited States Treasury.\nDon't know exactly what this means. The cypher may\nCopy:wec:8-29-41\npossibly have gone wrong.\nRegraded Unclassified\n275\nAugust 27. 1941\nMr. Livesey\nNo. Cockrea\nwill you kindly osed the following coblegram:\n'imerican Geneal.\nBeng Essa.\nFrom treasury for For and repotition to Gengling.\nIn accertance with Cable 206 August 26. 9 D.B., Lahman issue,\nTreasury atterney. will Leave Manila via Clipper to Besg Zong on\nAugust as. levens can then take next available transportation to\nthanghai. Vasa Aurone leaves long Keng, Richard Aikin, Foreign\nFunds administrative - at Manila, will leave Munila for Zong Isag.\ntreasury assume you or your alder will arrange to consult vith\nthese - # arrival at well as the appropriate Foreign Service\nOfficers and work ont plane for dealing with foreign funds control\nproblems. You any wish to communicate with either Aarens or Aikin\ndirectly at Manile, care of Segre, Bigh Commissioner.\"\nnn\nHMO:lap-8/27/41\nRegraded Unclassified\n276\nC\no\nP\nY\nPARAPHRASE OF TELEGRAM SENT\nTO:\nAmerican Embassy, Chungking. China\nDATE: August 26, 1941, 9 r.m.\nNO. : 206\nTHE FOLLOWING IS FROM TREASURY FOR FOX.\nThe Department would like to have your reaction as to\nthe questions listed below. (These questions were asked of\nDr. T. V. Soong by the Department.)\n1. To what extent can the United States be supplied\nwith raw silk from Free China?\n2. What is the Chinese Government's attitude on trade\nbetween Occupied and Unoccunied China?\n3. Should the Chinese Government be desirous that the\nU.S. limit trade with China, the Embassy is requested to\nindicate the views of the Chinese Government 2.6 well as\nyour own views as to methods: by type of transaction, by\ncommodity, or by territory.\nA report from you or from Taylor es to te economic\nand financial conditions in Shanghai, 88 affected by the\nforeign funds control, would be most helpful. It ie hoped\nthat this report will be forthcoming in the very near future.\nThe Department is endeavoring to make arrangements\nfor one of the Treasury men in Manila to go to Hong Kong\nand one to go to SHANGRAI. Such individuals as may be\nassigned will serve as financial advisers to the Consulates\nRegraded Unclassified\n277\n-2-\nGeneral of the two places just named to work with you on\nproblems dealing with freezing. In the next day or two,\nyou will be advised further about these. This Department\nassumes that you, Frese, and Taylor are keeping in close\ncontact and are cooperating in so far as possible with\nthe American consular officers at Hong Kong and Shanghai\nin connection with economic and financial problems and\nproblems dealing with freezing control.\nWith regard to your telegram of August 12, No. 342,\nthe Treasury Department, es yet, does not have the list\nof Chinese nationals who have dollar balances, securities,\nSome\n:.nd other holdings in the U.S. compiled. /such compilation,\nit is expected, can be prepared after the filing of the TFR-\n300 census reports. The time element involved in the filing of\nthese reports by the public 19 until September 30.\nHULL\n(DA)\nA-A:DH:GMH\nFE\nPA/H\nEA:PAX\nCopy:bj:8-27-41\nRegraded Unclassified\n278\nC\n0\nP\nY\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM:\nAMERICAN CONSUL, Shanghai\nTO :\nSecretary of State, Washington.\nDATED:\nAugust 26, 1941, 1:00 p.m.\nNUMBER: 1169\nThe following special financial telegram is in\nconnection with my telegrams Nos. 1104 and 1111 both\ndated August 16. Customs collections at Shanghai\nbeginning September 1 will be only in the currency of\nNanking's Central Reserve Bank, it now appears certain.\nLOCKHART\nCopy bj:9-2-41\nRegraded Unclassified\n279\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM: American Consulate General, Hong Kong, China,\nvia N.R.\nDATE: August m, 1941, mean\nNO.: 330\nSTRICTLY GONFIDENTIAL.\nFOR THE SECRETARY OF THE TREASURY FMX FOX,\n(a) It is my understanding that the Parmers Bank had\nonly $UEL,900,000 available (7) 3,000,000 was soncigned\nfor $20,000,000 lean to it. The balance was advanced w\nthe Central Bank. The demand of the Farmers Bank nov\nis that its notes, which are at discount, be given a\nstatus of legal tender.\n(b) Dr. H. H. Kung 10 being advised by the Beard\nthat 18 finds no practical basis for the Chinese (7)\nregulations which ware issued through \" spokesmen' (1)\nMinistry of Finance on exchange control. There is every\novidence that the regulations were not well thought out\nand hurriedly prepared. The (7) (?) urging upon Dr. Dung\nthe importance of having the operations of his foreign\nexchange control agency begin in the near future in order\nthat the agency's (7), plans, and regulations may be\navailable in the very near future.\nK. P. Chen and (7) are doubtful of the support from\nDr. mang. They are in favor of turning the operations\nof the board, with respect to exchange (y). ever to the\nagency (7)- (7) on the other hand, although mindful of\nthe dangers and difficulties (1) (v) are becoming (1)\nRegraded Unclassified\n280\nconvinced that (7) to Ohina's best interest to take (1)\nstep in the matter. (1) that agency's activities should\nbe limited to (?) matters of this kind. () (7) parallel\nChinese organizations will function in foreign exchange.\nThe Board will have a difficult time (7)\nminor role is assigned to the agency (v) and it will be\nan impossible task if the agency is given a \" major)\nstatus that could be assigned to (1 the Board) under the\nletters of April 26. I as exerting every effort to keep\n(1) from (* saking) a definite decision until word in\nregard to this matter is received from Washington. (r)\nhowever long delay (7).\n(e) In its efforts to stabilize the Chinese (1) (7) (7)\nmarket, the (7) board is (7) experiencing considerable\ndifficulty by reason of operations of (7) market.\nThe two major fastors APO as follows:\n(2) Oversea remittences from the Philippine Islands and\n(1) (1) in connection with which the Doard is urging the\nChinese Government to establish (7) an authorised collectin\nagency (7) as the center for remitting. It is my under-\nstanding that the Bank of Ghine will be such an agency for\n(7). I all advising Sayre, in response to the eable offering\nto help accumulate funds for the Chinese Government if a\nsingle agency will be authorised to hand the remittances\nat current market rates, that the communication from the\nPhilippine (1) will probably be (7) so to not (1)s\n(2)\nRegraded Unclassified\n281\n(2) (7) Would it be possible to have all of the experts\ninto Shanghai from the Philippine Islande and from the\nU.S. limited by placing them under an export license?\n(7) imports on the prohibited list of the Chinese Govern-\nment continue to enter Shanghai.\nThe report of Reuter that the (7) Board of Trade has\nissued all order, effective August 26, (9) (9) any goods\nto Japanese (7), China, (9) Masao (9) under an export\nlicense. (7) This does not apply to goods which go through\nRangoon for overland transit via the Burma Head to Chima.\nCould the U.S. not take similar action at once?\nThis matter concerns the present operations of the Beard\nand is of the utmost urgency. Therefore, it will be\nappreciated if a reply can be received promptly.\nSOUTHARD\nEAIPAK\n(This telegram is being serviced and as BOOR as a\ncorrection is received thersom, the proper persons\nwill be notified.)\nRegraded Unclassified\n282\nCORRECTED COPY\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM: American Consulate General, Hong Kong, Galma,\nvia N.R.\nDATE: August 26, 1941, noon\nNO.: 330\nSTRICTLY CONFIDENTIAL.\nFOR THE SECRETARY OF THE TREASURY FROM FOX,\n(A) It is By understanding that the Farmers Dank had\nonly $U81,900,000 available out of 3,000,000 which was\nconsigned for a loan of $20,000,000 to it. The balance Vas\nadvanced by the Central Bank, The demand of the Farmers\nBank now is that its notes, which are at discount, be given\n& status of legal tender.\n(3) Dr. M. M. Rung is being advised by the Board that\nit finds no practical basis for putting into effect the\nfirst regulations which were issued through is spokesman'\nby the Ministry of Finance on exchange control. There is\nevery evidence that the regulations were not well thought\nwere\nout aut/hurriedly prepared. The Board is also urging upon\nDr. Kung the importance of having the operations of his\nforeign exchange control agency begin in the near future\nin order that its policy, plane, and regulations may be\navailable in the very near future.\nI. P. Chen and Pei are doubtful of the supoort from\nDr. Kung. They are in favor of turning the operations\nof the Board, with respect to exchange control, over to the\nAgency\nRegraded Unclassified\n283\nAgency at once. On the other hand, although sindful of\nthe dangers and difficulties, I all becoming increasingly\nservinced that it would not be to China's best interest\nto take this step is regard to the matter. I believe that\nthe agency's sotivities should be limited to policy matters.\nOtherwise, two parallel Chinese organizations will function\nin foreign exchange, The Board will have a difficult time\neven if & minor role is assigned to the agency but it will\nall\nbe/impossible task if the agency is given a major status\nthat could be assigned to it under the letters of April 26.\nI am exerting every effort to keep the Board from making &\ndefinite desision until word in regard to this matter 18\nreceived from Washington. However, I cannot delay action\nfor very long,\n(0) In its efforts to stabilize the Chinese dollar in\nthe Shanghai market, the Board is experiencing sonsiderable\ndifficulty by reason of operations of the black market.\nThe two major factors are as follows:\n(1) Oversea remittances from the Philippine Islands, the\nUnited States, and Great Britain in commection with which\nthe Board is urging the Chinese Government to establish\nsole authorized collection agency in each remitting center.\nIt is ay understanding that the Bank of China will be such\nan agency for the United States, I all advising Sayre, in\nresponse to the cable offering to help accumulate funds for\nthe Chinese\nRegraded Unclassified\n284\n-3-\nthe Chinese Government if a single agency will be authorized\nto handle the remittaness at current market rates, that the\nPhilippine Bank of Com uniontions will probably be designed\nso to not.\n(2) Would it be possible to have all of the exports\ninto Shanghai from the Philippine Islanda and from the\n0.5. limited by plooing them under en export license?\nCertain imports which are on the prohibited list of the\nGovernment of Ohina continue to enter Shanghai.\nAesReuter's report says that the British Board of Trade\nbe 8 issued an order, effective August 26, which prohibite\nthe export of any goods to Japanese Pncific Islands, China,\nand Haeao except under on export license, This does not\napply to goods which 20 through Rangoon for overland transit\nvia the Burna Road to China. Could the United States not\ntake similar action at t once?\nThis matter concerns the present operations of the\nDoard and 18 of the utmost urgency. Therefore, it will be\nappreciated if a reply oen be received promptly.\nSOUTHARD\nAIPAK\n893.51/7276\nRegraded Unclassified\n285\nC\n0\nP\nY\nCOMP IDENTIAL\nCONF IDENTIAL\nPARAPHRASE\nA strictly confidential telegram of August 27. 1941 from the\nAmerican Consul at Rangoon reads substantially as follows:\nThe Burma Government has authorized a transit tax amounting to\n10 rupees a ton on materials destined for China, Continuation of\nthe one per cent ad valorem duty on airplanes and motor trucks we.s\nvoted by the Ministers but they were persuaded by the Governor to\nwithdraw these exceptions and to make the tonnage tax general. The\nGovernor is of the opinion that this 10 the limit to which the\nMinisters will go and is fearful lest there be a ministerial crisis\nif the British Government instructs him to override the Ministers\nby abolishing or reducing the charges. & statement of the actual\nexpenses which the customs incurred in handling transit trade with\nChina is understood to have been requested by the British Govern-\nment. These expenses represent only a small part of the revenue\nfrom transit duty which has been enough to cover all of the cost of\nthe customs. In the August 27 issue of the Burwese Daily, a local\npaper in which the Premier is interested, there are comments concern-\ning press reports of unfavorable reaction in the United States to\ntrangit charges on cargo bought under the Lend-Lease arrangement.\nThe newspaper remarks that American assistance to China is nothing\nin comparison to what the United States has gained during many years\nin trade with China. The newspaper article adds that although Burma\nRegraded Unclassified\n286\n- 2 -\nhas never gained anything through trade with China, Japan now regards\nBurma with disfavor for permitting the transit of materials to China\nand that China's thanks would be all that Burma would have if duty\nwas abolished.\nCopy:1g 8/30/41\nRegraded UInclassified\n287\nEJ\nPLAIN\nLondon\nDated August 27, 1941\nRoc'd 2:29 p.n.\nSocretary of Stato,\nWashington.\n3914, Twenty-sovonth,\nFOR TREASURY.\nTho TIMES LE.DER today August 27 ontitled \"Far\nEastorn talks \" doals with the discussions in Washington\nwith tho Japanoso and tho warning of tho English Pri no\nMinistor to Japan. The TIMES says thoro is \"little pros-\nany\npoct of/substantial change in Japanoso policy or ovon in\nJapanoso mothods\" but it recognizos that Japan may bo\"\nanxious to smootho ovor hor rolations with the United\nStates\" until thoro is tirio to consolidato now gains and\nuntil Gorrany defocts Russin.\nConcorning froczing control tho TIMES says that \"Japan\ncould afford to mark tirio\" in roturn for somo rolaxation\nof tho oconomic blockade. Tho TIMES statos that Japan has\nboon sproading reports \"that tho joint froozing was boing\nmitigated by various concossions\" and says that \"it is\nunfortunate that color has boon givon to those rumors by\nsolio rocont transactions. Thoso havo boon explained more\nor loss\nRegraded Unclassified\n288\n⑉2⑉ #3914, August 27, from London\nor loss convincingly.\"\nThe articlo points out that Japan is trying to \"utilizo\nthe intontion of tho United Statos to sond supplios to\nRussia by way of Vladivostok ns an opportunity for diplo-\nmatic blackmail. The uso of this porfoctly normal and\nnatural route batwoon the two countries constitutos no o on-\ncoivable monaco to Japanoso Interosts; and the official\nJapanoso spokosman has admitted that it is open to no ob-\njoction based on international law.\" Tho TIMES furthor\nsays that \"it would cortainly bo an a chiovonent for\nJapanoso diplomacy to oxact a price--for oxamplo, a niti-\ngation of tho froozing orders--for pormitting the United\nStates to uso 2 routo which sho has every right to uso al-\nroady.\"\nThe articlo concludos by saying that this blnckncil is\nnot likoly to succood and that probably the ronl object of\nthe Japanoso in the t alks is to find out \"what dogroo of\ndotormination lios chind American policy in the For Ecst.\"\nWINANT\nALC\nRegraded Unclassified\n[COPY:EA:MUE]\nTELEGRAM SENT\n289\nLET\nGRAY\nAugust 87, 1941\n5 p.m.\nAMERICAN EMBASSY,\nVICHY.\n663.\nYour No. 1014, August 12, 1 p.m.\nTreasury records show no application for release\nof Saudi Arabian Minister's funds. Application stating\nMinister's specific requirements for living, traveling,\nor other expenses would receive prompt Treasury cone\nsideration.\nHULL\n(FL)\n840.51 Frozen Credits/2971\n10 THE\nLECHNICYT\nOFFICE OE THE\nBd' 8Eb 18 ЫI ?\n10E 10EV208A DELIVINENT\nBECEINED\nKA:HGW:ED\nXE\nRegraded Unclassified\n290\nDES\nGRAY\nROME\nDated August 27, 1941\nRec'd 2:22 p.m.\nSecretary of State,\nWashington,\n1278, August 27, 1 p.m.\nEmbassy's 1020, July 15.\nThe Rome agencies of the Associated Press, United\nPress, NEW YORK HERALD TRIBUNE, and NEW YORK TIMES report\nthat they are unable to obtain through remittences from the\nUnited States (or in the case of United Press from accounts\ndue from Italian newspapers) funds for payment of operating\nexpenses because the Italian foreign exchange has not\nacted favorably on the agencies' application for the DECES-\nary special licenses. Similarly affected 18 the American\nChurch in Rome.\nThe Embessy is orally informed by the Associate Direc-\ntor of the Exchange Institute that ection on these appli-\ncations is being deferred pending final action by American\nauthorities on applications for special licenses in enalo-\ngous CASES in the United States. HE cited 85 the out=\nstanding OBSE an application made by a NEW York agency\nof Credito Italiano for ruthorization to utilize its\nfunds for payment of its operating EXPENSES. To supplament\nthe agency's\nRegraded Unclassified\n291\n-2-1278, August 27, 1941 from ROME\nthe agency's funds for this purpose, the Exchange\nInstitute on August 5 ordered paid to it $15,000 by\nthe NEW York Agency of Banco Commerciale Itelieno but\nthe operation is in suspense pending the granting of\nthe required licmst.\nAs the American press agencies concerned report\nthat unless their financial problem is soon relieved,\nthey face the necessity of closing down, I would\nappreciate receiving any pertinent information or\ncomment which the Department may wish to communicate.\nPHILLIPS\nIMS\nRegraded Unclassified\n292\nTREASURY DEPARTMENT\nfor Miss Community\nINTER OFFICE COMMUNICATION\nDATE August 26, 1941\nTO\nSecretary Norgenthau\nFROM\nMr. Cochran\nCONFIDENTIAL\nRegistered storling transactions d the reporting banks were as follows:\nSold to commercial concerns\n£27,000\nPurchased from commercial concerns\n£28,000\nOpen market sterling held steady at 4.03-1/2, and there were no reported\ntransactions.\nIn New York, cloeing cuotations for the foreign currencier listed below were\nno follows:\nCanadian dollar\n10-13/16% discount\nArgentine pero (free)\n.2382\nBrazilian milreis (free)\n.0505\nColombian peso\n.5800\nMexican peso\n.2070\nUruguayan peso (free)\n-4375\nVenezuelan bolivar\n.2770\nCuban peso\n1% discount\nIn the unofficial exchange market in Sheribei, the yust meite et L-7/86.\nThe sterling-dollar cross rate worked out at 4.04-3/4.\nWe sold $10,000,000 in gold to the Bank of INTE, which VAB edded to its earwerked.\naccount,\nNo new gold engagements were reported.\nWe were informed that the Bombay gold price for August 23 vas equivalent to\n434.02. or 24 bigher than the quotation for August 16. Silver in Bombay was priced\nat the equivalent of 44-56#. up 1/16#.\nIn London, spot and forward silver were both unchanged at 23-1/24, equivalent\nto 42.67#.\nThe Treasury's purchase price for foreign silver was unchanged et 350. Randy\nand Hermen's settlement price for foreign silver was also unchanged at 34-3/44.\nWe made no purchases of silver today.\n71ml\nRegraded Unclassified\n293\nBRITISH EMBASSY,\nWASHINGTON.\nAugust 26th,1941.\nPersonal and Secret.\nDear Mr. Secretary,\nI enclose herein for your personal\nand secret information copies of the two\nlatest reports received from London on the\nmilitary situation.\nBelieve me,\nDear Mr. Secretary,\nVery sincerely yours,\nR. I. Campbell\nThe Honourable\nHenry Morgenthau, Jr.,\nUnited States Treasury,\nWashington, D. C.\nRegraded Unclassified\n294\nTolegram from London dated August 23rd.\nN.M. Netlayer Tonbrid\nbombed and\nsunk off Yarmouth afternoon August 22nd. Also one moter\ngun beet bombed and damaged.\n2.\nAlexandria and Tobruk sttacked by enemy aircraft -\neausing only slight damage st former. One enemy aireraft\ndestroyed and two others probably at Tobruk.\n3.\nH.M. Corvette :ionia torpedoed end sunk while\nescorting outward bound Gibreltar convey on August 22nd,\nsome survivors.\n4.\nEnemy air actock on 7th Cruiser Squadron and des-\ntroyers, stopped H.M.S. Niseu by near miss between Tobruk\nand Alexandria. However able to proceed and all ships\nreached port.\n5.\n71 ships 243,422 tone of British, Allied and\nneutral countries still detained by Vichy /rench.\n6.\nRoyal Air Force claim Cannon and machine gun hits on\none R (sio) boat while attacking shipping on August 22nd. Three\nenemy sireraft destroyed August 22nd. Night August 22n4/23rd\nmore than 120 aircraft despatched. Targets included Mannhoim\nand Havre. One bomber missing. Weather conditions difficult.\nHoyal Air Force attacked Behgasi night of August 20th/21st\nand Tripoli (L) Bight of August 21st/22nd. Considerable\ndamage believed caused to shipping in latter herbour.\n7.\nRussia. Finns claim that Ruesians have withdrawn\nin Earoliem inthous to line R. Vuckei probably correct.\nwithdrawal shortens line and affords strong position.\nGernano appear to be trying to eliminete Russian selient\nbetween Comel and south from Gemal sad\nnorthwest from Korosten. No evidence that Germans have\nestablished bridge-heads over Daieper river southern Ukraine.\nRegraded Unclassified\n295\nTelegram from London dated August 24th.\nLarge convey of 72 ships of which 50 British arrived\nsafely and inteet in British ports from ecross the Atlentic\nduring the lest few days. 23 were tankers. One of His Majosty's\nTravlers shot down an onemy airoraft off Holy Island.\n2.\nH.M. Submarine \"Unbeates\" terpedoed 8 ship in a convey\nof four fast south bound liners p.m. 19th southwest of Sicily\nwith unknown result.\n3.\n7 shipe totalling 12,741 tons plus one tug 482 tone\nin outward bound convey for Gibraltar have been sunk by sub-\nmarine.\nSome of those have previously been mentioned.\n4.\nRussia. Very stubborn fighting continues whole fromt\nnear Leningred sector where DONO indication that Germans have\nmde progress.\n5.\nNight August 22n4/23rd nearly 80 tone high explosive\nbombs and 5,200 incondiaries dropped on Mannheim and a 4,000\npound bomb buret in centre of the town. 32 tons high explosive\nbombs were dropped on Havre docks same night.\nMalta. August 23rd. Royal Air Force sttacked small\nconvoy off Kerkensh Island. A 1,000 ton merchant reasel vas\nhit by bomb and a schooner machine-gunned and left listing,\n6.\nLibya. Tobruk attacked by enemy airoraft on August\n22nd sausing slight damage to shipping and a few casualties.\nOne enemy aircraft destroyed, one disabled. August 21st. Our\nfighters attacked about\nGerman aircreft operating in email\nformations over Sidi Barreni area. One enemy fighter was\ndestroyed besides four probably destroyed and eight damaged.\n90 lost three fighters, one pilot eafe.\nRegraded Unclassified\nCONFIDENTIAL 296\nPerspherse of Code Cablegram\nReceived at the to Department\nat 21:46 ask, August 26, 1941\nLondon, fileds 5.00 p.m., August 26, 1941.\n1. Brittich Mr Activity over the Continues,\na. Wisht of Assemer's 24. , team of III and 300 incomidaries\nvere dropped en Weesel and 49 tear of - and 4600 insentiaries\n⑉ Desseldorf.\nb. Day of August 25. The fighter effort omulated of a\ntotal of 166, divided as follows: 41 on interception nisstors,\n121 protecting shipping and 4 on special nissions. There were\n- en effensive nissions.\n6. Bight of August 25. 42 and 7 Manshasters\nwere dispatched to the industrial center of Mannheim and 12\nStirlings and 37 Wellingtons to the industrial center of\nMarlershe. The results were fair.\n2. German Mr Activity over Britain.\na. Day of August 24. 15 recommissance planes.\nbe Right of August 24. 25 long range bonbers and to\nfighters.\n6. Day of August 25. There wes some shipping new\nnaissance and alight activity over the east const with w\nfemaive petrols over Calais.\nd. Right of August 25. Sena activity against shipping\noff the court of South Vales.\n3. Aircraft Losses Reserted.\na. British lesses. the night of August 25, there -\nCONFIRMNTIAL\nRegraded Unclassified\n29?\nCONFIDENTIAL\n2 Wellingtons and 1 Starling unreperted from the raid -\nBarlando and , Temptoms unreported for the raid en Mambala,\n4. Brittsh My Activity, Other Theaters.\na. Theater. Right of Amount 24. 15 tene\nof high emplosives - drapped w 9 Wellingtons that attached\nTripoli, and as a result may fires were started.\nb. Irenden Theater. Amount 15. 3 - Intore -\nattacked on the Almon airdress, 75 wilso northeast of Basra,\nw Burriease that - covering the British Forees. Photo-\ngrophic recommissence - earried out over the Karind area.\nLeaflets were dropped ever Tohren and\n6. Gibralier. Amount 22. A datalina Flying best from\nCibralter attacked 2 Form Wulfs over & convey. There were no\ndefinite results, but 6 member of hits were claimed.\nLMB\nI.B. / 6, 3.40P, August 16, 1942\nDistribution:\nState Department (2)\nYes Plans Division\nOffice of Maval Intelligence (2)\ni s s\nRecord Section\nIntelligence Branch\nChief of the Any Mr Forces\nA.S.W.A.\nSecretary of Treasury\nSoction 713a\nCollection securies\nB.S.\n0-9\nA.C.\non, B 4 -\nCONFIDENTIAL\nRegraded Unclassified"
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